Basis of reporting

Category	Metric	Definition
Health & Safety	Safety & Wellbeing Material Issue	Wesfarmers maintains a relentless focus on providing safe workplaces. Safety is the highest priority. The overriding principle is that every single team member is entitled to work in a safe environment and return home without injury every day. Commitment to wellbeing increases team availability to customers and improves productivity in the form of increased team retention, engagement and decreased absenteeism.
Health & Safety	Total Recordable Inj. Frequency Rate	The sum of Lost Time Injuries, Restricted Work Injuries and Medical Treatment Injuries per million hours worked.
Health & Safety	Workers Compensation Claim	Claims made equals claim registered within the year regardless of claim status (e.g. regardless off rejected, pending, accepted) and includes self-insured and non-self-insured claims, irrespective of when the incident occurred.
People	People – development, diversity and Inclusion Material Issue	Wesfarmers believes its greatest competitive advantage is its people and is committed to providing team members with opportunities to improve their performance and advance their careers. Wesfarmers believes in an inclusive work environment, with particular focus on gender balance and the inclusion of Indigenous people.
People	Employees by Gender, Region & Emp. Type	Number of Team Members
People	Employees by Gender & Age	Number and percentage of Team Members
People	Female Rep. by Banding	Number and percentage of Team Members
People	New Employees by Gender & Emp.	Number and percentage of Team Members
Indigenous	ATSI Procurement Spend	Australian dollars paid to Aboriginal or Torres Strait Islander businesses. Aboriginal or Torres Strait Islander businesses are at least 50 per cent owned by an Aboriginal person.
Indigenous	ATSI Team Member	Number of Self-identified Aboriginal or TSI employees who are casual and have worked in the last 30 days up to 30 June or are permanent, part-time and full time team members.
Sourcing	Circular economy strategy Material Issue	A circular economy strategy is a systemic approach to economic development designed to benefit businesses, society, and the environment. In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources.
Sourcing	Ethical Sourcing and Human Rights Material Issue	Wesfarmers is committed to source products in a responsible manner while working with suppliers to improve their social and environmental practices. Wesfarmers expects its partners and stakeholders to adhere to ethical business practices consistent with its own and is committed to working with them to fulfil this common goal.
Sourcing	Total number of suppliers registered on your books	This includes suppliers supplying national brand and own brand products, goods for resale (GFR), goods not for resale (GNFR) and services.
Sourcing	Suppliers not covered by the audit program	As a general principle, suppliers of national or international branded products are not required to provide factory locations on the assumption that for these suppliers, they are of similar brand value to Wesfarmers businesses' who conduct their own assessments and manage social compliance within their own remit. Given this, these direct relationship suppliers will not be required to be third party audited if a division does not consider them high risk.
Sourcing	Suppliers covered by the audit program	All suppliers producing own-brand or customer branded products, regardless of location, are required to be registered (i.e. to Sedex or other, etc) and be a part of the ethical sourcing audit program.
Sourcing	Total Number of Critical Breaches	The total number of critical breaches identified during the reporting period. Critical breaches will be reported when they are identified in the reporting period and not reported based on the date of the audit report.
Sourcing	Business critical breaches	The SMETA ‘business critical’ classification has been adopted for reporting purposes by all divisions.
Sourcing	Bunnings critical breaches	Broad alignment to the SMETA Guidance for the classification of critical breaches except for certain issues in the following categories, which are considered to be major breaches: Presence of worker committees Health and safety training and risk assessment Machinery safety functions Business ethics - systems to manage compliance Additionally, certain issues in the below categories are classified by the SMETA Guidance as major but are treated by Bunnings as critical breaches: Payment of wages
Sourcing	Kmart Group critical breaches	Kmart Group’s own critical breach program includes incidents falling under the following critical breach areas: Bribery Child labour (worker under age of 14, or excessive number of “underage worker” with no mitigating reasons) Forced/ bonded/ prison labour Physical abuse Un-authorised subcontracting Underage worker (worker under local legal minimum work age -but 14 or above) Wage deficiency Excessive work hours (e.g. 84 hours and above) Record inconsistency Life-threatening health and safety issues The critical breach classification reflects the scope of the Kmart Group audit program which mutually recognises several different third party audit standards including: BSCI, ICTI, SA8000, SMETA and WRAP. Better Work is also mutually recognised in participating countries. Under the Kmart Group classification, a SMETA critical finding is categorised as either a ‘critical’ or ‘major’ finding . All critical findings result in either immediate factory deregistration or trigger a three month remediation audit. If the finding is not remediated, the factory is deregistered. 'Major' findings trigger a Correction Action Plan and follow-up audit within six months. If the finding is not remediated after two follow-up audits, the factory is deregistered.
Sourcing	Officeworks critical breaches	Full alignment to the SMETA Guidance for the classification of critical breaches except for the following category that is considered to be a business critical breach: Business ethics – systems to manage compliance
Sourcing	Industrial and Safety critical breaches	Broad alignment to the SMETA Guidance for the classification of critical breaches except for certain issues in the following categories, which are considered to be major breaches: System management of worker rest days Health and safety training
Community	Product Quality & Safety Material Issue	Wesfarmers is committed to providing consumers with safe products. All of its consumer products offered must be safe and meet consumer guarantees under the consumer laws of the countries they are sold. Wesfarmers ensures that all products sold comply with relevant mandatory standards before they are offered for sale.
Community	Data and IT security	Wesfarmers is committed to complying with the laws and regulations of the countries in which its businesses operate and act in an ethical manner, consistent with the principles of honesty, integrity, fairness and respect. This includes complying with the Australian Privacy Act and all relevant legislation. Wesfarmers has systems and procedures in place to protect customer and employee information and acknowledge that privacy protection requires ongoing significant resources.
Community	Economic and community contribution Material Issue	Wesfarmers makes a positive contribution to the communities in which it operates. As a successful company, it generates economic value for all its stakeholders in the form of payments to suppliers, taxes paid, salaries and wages. Wesfarmers is committed to also making community contributions in the form of community sponsorships and donations.
Community	Community Contributions - Direct	Contributions to the community in the form of: Cash - These include donations made directly by the business divisions where funds are provided to an organisation and there is no obligation on the part of the recipient. Donations must be made with primary aim of improving the quality of life to sections of the community or to provide targeted welfare or other support. Donations may also include sponsorship of community initiatives primarily for the benefit of community. Contributions that are committed to and cannot be retracted can be recognised if they are accrued for within the reporting period. Time - This includes time volunteered by employees to various community initiatives, events and fundraisers. This time is to be valued on the basis of benefit to the community organisation of the skills provided. Where the labour is not skills based (for example walking dogs for the RSPCA) this time is to be valued at the average hourly rate in Australia. This will not include volunteering undertaken in personal time unless it is specifically acknowledged by the business unit. In-Kind - This includes physical product donations valued at cost to the business.
Community	Community Contributions - Indirect	This includes contributions by third parties made possible through Wesfarmers’ initiatives (for example, customer donations collected in store, or workplace giving from staff).
Environment	Waste, Packaging & Plastic Material Issue	Wesfarmers is committed to reducing its waste to landfill and water use where possible. Managing waste is a significant issue for Wesfarmers and reducing operational and packaging waste will continue to be a major focus.
Environment	Water Use	All water withdrawn from any water source, either directly or purchased through an intermediary and used by the division, during the reporting period, reported in megalitres (ML).
Environment	Waste Disposed to Landfill	All solid and liquid waste that is disposed to a landfill site during the reporting period.
Environment	Waste Recovered	All waste material that is not disposed to landfill and is reused for future products, sent to heat/energy recovery or recycled during the reporting period.
Environment	Climate Change & Energy Material Issue	Wesfarmers acknowledges the scientific consensus on climate change and supports the 2015 Intergovernmental Panel on Climate Change Paris Climate Agreement. Wesfarmers businesses have adopted absolute and intensity emissions targets, climate change strategies, governance systems and disclosures which support the global goal of reducing greenhouse gas emissions.
Environment	GHG Emissions Scope 1 & 2	Scope 1 and Scope 2 data includes emissions from continuing operations for Australian businesses where businesses in the Wesfarmers group have operational control under the NGER Act, other known non-reportable Australian-based emissions over which the Wesfarmers group has control, and emissions in New Zealand and Asia.
Environment	GHG Emissions Scope 3	Scope 3 data includes emissions upstream in the Wesfarmers group supply chain and downstream in how products are used by customers. Across the Wesfarmers group, Scope 3 emissions derive largely from the production of goods for sale by its suppliers, transportation and waste generated across its operations.
Environment	Energy Use	Energy reported under the NGER Scheme so that data on energy consumed and produced and the resulting flows and transformations occurring throughout the economy can be captured. This includes the initial extraction and own-use of energy, and the transformation of energy occurring within and between facilities.
Governance	Governance, Corporate Conduct and Ethics Material Issue	Wesfarmers believes in maintaining robust corporate governance policies in all its businesses. This starts with a steadfast commitment to complying with the laws and regulations of the countries in which its businesses operate and act in an ethical manner, consistent with the principles of honesty, integrity, fairness and respect.