• Sustainability:
  A definition
• Message from the CEO
• Message from our sustainability leadership
• Stakeholder engagement
• Our challenges
• About Sobeys Inc.
• Glossary

Message from the CEO

Message from the CEO

When we launched Sobeys Inc.'s first sustainability report, I outlined two key aspects of our sustainability journey. Firstly, that sustainability is not a separate initiative - it must be integrated as a fundamental element of our core business. Secondly, that I looked forward to demonstrating continuous improvements and to regularly communicating those to all of our stakeholders.

I am pleased with the progress we are making to embed sustainability into our core business. We have created broad awareness across our business functions and operating units by illuminating the opportunities for improvement overall, and the financial benefits associated with determined action.

• Our national sustainability goals have been articulated and quantified against a baseline;
• Business unit targets have been established;
• A web reporting tool is in place; and
• Best practice sharing has begun.

Our sustainability commitment has been visible and tangible. Building on our progress thus far, we will now move forward to further secure important business collaboration processes with a keen focus on our store development and logistics teams. We believe this is a very important step along our sustainability journey.

But we all know...we only manage well, what we measure well and consistently. I am pleased to report measured progress in 2011 toward our 2013 direct operations goals to reduce our carbon footprint by 15% and reduce our waste to landfill by 30%.

• We reduced our retail stores' carbon footprint by 8.5% – which is in-line with the annual improvement needed to meet our five-year goal.
• We reduced waste to landfill by 5.3% for our retail stores and 27.8% for our distribution centres.
• We have achieved a 54% reduction in plastic bags usage by our customers—exceeding our goal of a 50% reduction.

Our supply chain sustainability focus will continue to take shape this coming year. Our sustainable seafood policy has been shared publicly, communicated at our Sobeys Inc. National Seafood Suppliers Summit and is being rolled out throughout our organization. Our packaging initiative is focused on private label products and in-store supplies. We have reduced packaging weight by as much as 30% for some private label products. We recognize, however; that many of the "wins" in packaging sustainability will come from energy and water reduction in processing and in use of alternative materials, rather than weight reduction alone.

Sobeys' sustainability strategy is rooted in our commitment to improving environmental performance through reasonable, practical and environmentally responsible business practices that are in the best interest of our customers, employees and the communities in which we operate -- in a commercially responsible manner. I'm proud of what we have accomplished thus far and I look forward to sharing our continued progress with you on a regular basis.

Until our next update,

Bill McEwan
President and Chief Executive Officer