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SMUATSERTIALITNY PARBOCIELSISTY Lidl Ireland/Northern Ireland | Sustainability Progress Report 2018/19 Naturally our stakeholders influence our sustainability strategy. We completed an in-depth After an extensive internal review of materiality topics, an external assessment and then materiality review to understand what social and environmental concerns were most important a further internal check with the support of our international counterparts, we identified to our stakeholders and where we can have a particular impact.3 Our materiality results consisted and agreed the topics material to Lidl Ireland and Lidl Northern Ireland in this report. of feedback from a wide range of stakeholders including customers, partners, suppliers, The materiality analysis consisted of four phases of work: employees, charities, media and third-party area experts. The initial topic areas were agreed on and reviewed by the CSR teams in Ireland, internationally and verified by third-party experts. We worked with Business in the Community, an independent company specialising in corporate responsibility, to support this process and complete qualitative interviews for data verification. 5 Review and validation •Human Rights •Customer Awareness Issue identification Assess business impact Assess stakeholder opinion •Food Waste • •Health & Wellbeing Product Packaging The issues are placed on a matrix that displays their position relative to the degree of stakeholder interest and potential business impact. Together, the results represent the material issues. As depicted in the matrix, corporate citizenship, local development and high-quality products were identified as most material and will be discussed in accordance with GRI. Our stakeholders also rated human rights in the supply chain, food waste and packaging as particularly important to them. Qualitative feedback clarified and confirmed our stakeholders wanted to learn more about our processes for protecting human rights and commitments to reducing food waste and packaging. These areas have also been discussed in detail to support this feedback. The responses also highlighted that stakeholders were particularly interested in ethical brands and local fresh produce. Whilst all selected issues are important and will be discussed,6 the areas identified as most material will guide the focus of this report as well as helping to prioritise and shape our sustainability strategy in the future. All of the above topics are discussed in this report with particular emphasis and detail provided to the topics identified as most material. Material topics are discussed in relation to the Lidl Responsibility Model and A Better Tomorrow goals. If you have any questions regarding this report or the materiality process, please contact us at csr@lidl.ie. •Certifications Corporate Citizenship Local Development •Local Sourcing • • page 15 Stakeholder Interest4 Agricultural Inputs Cultivation & Harvesting Animal Keeping Production Processing Transportation Logistics Centre Transportation Stores and Services Purchase Usage Disposal • •Diversity & Inclusion Fair Business Relations • • • • • High Quality Products & Product Safety Occupational Safety & Health Promotion in Operations Animal Welfare Life Balance •Training & Development •Ingredients & Nutrition Information Business Impact Resources and Agriculture • Resources and Agriculture • Operations and Processes • Supply Chain and Processing • Consumer and Society Supply Chain and Processing 3 GRI 102-43, 4 GRI 102-44, 5 GRI 102-46, 6 GRI 102-47 Operations and Processes • Stakeholder Dialogue •Climate Protection in Supply Chain Employee Labour Rights •Climate Protection in Operations •Conservation of Resources Customer and Society