Welcome to Metcash’s Sustainability Report for 2024, which marks the second year we have reported with reference to the Global Reporting Initiative (GRI) standards. I am pleased to share with you the latest highlights and progress in our journey towards creating a sustainable future.

We have always valued independent third-party measures to verify
our progress, and I am happy to report that Metcash has achieved
its highest-ever result under the Dow Jones Sustainability Index.
This year, Metcash ranked in the 89th percentile, up from the
87th percentile in the previous year, demonstrating our ongoing
commitment and progress to responsible business practices
and transparency.

Our dedication to climate action remains. We met our interim
2030 emissions target for FY24, reducing our emissions by 5.2% from
the previous year, bringing our total emissions down to 69,829 tCO2e.
This achievement underscores our efforts to reduce our carbon
footprint and progress towards our 2040 net-zero emissions target for
Scope 1 and Scope 2. In Scope 3, we have expanded our data capture
and methodologies across greenhouse gas protocol categories,
including the end-of-life treatment of sold products.

Our commitment to reducing waste at our controlled sites is stronger
than ever. We continue to work towards our waste-to-landfill
diversion target of 80% by 2028, achieving an interim rate of 65.9%
in FY24. Metcash, in partnership with our independent network, was
awarded a $500,000 Bin Trim grant from the NSW Government
to assist our retailers to divert 35,000 tonnes of waste from landfill
each year.

Our People are our greatest asset. We remain dedicated to creating
an inclusive and equitable workplace, maintaining a neutral gender pay
gap of ~1% amongst our employees. We were recognised by Equileap
for our inclusive practices and policies and were ranked in their Top
100 global companies for gender equity. We also achieved our gender
diversity target of 40:40:20, with notable representation across
various leadership levels, including 50% female representation on the
Metcash Board and ~50% on the Group Leadership Team.

Our focus on safety has yielded significant results. Our Total Recordable
Injury Frequency Rate (TRIFR) showed a 21% year-on-year decrease,
reflecting our continuous efforts to ensure a safe working environment
and our revised Safety, Health and Environment strategy. We also saw
improvements in our employee engagement survey results, with a score
of 58% up from 57% in FY23.

Sustainable sourcing remains high on our ESG agenda. We are on
track for achieving our 2025 responsible sourcing goals for palm
oil, seafood, cocoa, paper-based products, animal welfare, eggs
and coffee. Our focus on sustainable supply chain innovation also
extends to our packaging. This year we updated our ready meal trays
to be fully recyclable, added 55% recycled content, and phased out
oxo-degradable plastic and expanded polystyrene.

We were also the first supermarket business to join the National
Plastics Recycling Scheme (NPRS), supporting a community-wide
effort to recycle soft plastics. This initiative aligns with our broader
sustainability goals and supports national targets for increased material
recovery and an improved circular economy.

Championing Successful Independents in support of thriving local
communities is at the heart of what we do. Through partnerships
with Foodbank, OzHarvest, and Food4Change, we provided
over 2.6 million meals to those in need in FY24. Our IGA stores
contributed over $2.7 million to approximately 1,600 organisations
this year as part of the IGA Community Chest program.

Our fight against modern slavery continues to be a priority. We are
committed to ensuring our supply chains are ethical and are actively
working to address modern slavery risks through continuous
improvement in governance, policy and monitoring. Our efforts were
recognised by the independent Modern Slavery Statement Disclosure
Quality assessment by Monash University, where we received an
improved ‘B’ rating.

In preparation for the anticipated introduction of the Australian
Sustainability Reporting Standards (Australian Accounting Standards
Board S2 Climate Disclosures), we completed a review of the standards
and established a cross-functional working group to address any gaps.
This will ensure compliance by FY26 and provides an opportunity to
synchronise environmental performance data with Metcash’s financial
year data.

Our sustainability efforts in FY24 have led to continued progress
across the board, creating a positive impact on our people, the
planet and the community. I am optimistic about the path ahead
and appreciative of the collective efforts of our team members and
partners in driving this change.

I trust you find this report informative, and I am grateful for your
ongoing support for our vision of creating a sustainable future.