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OPERATIOT NS IN 2017, WE CONDUCTED OUR FIRST CARBON FOOTPRINT ANALYSIS OF OUR OPERATIONS IN CONJUNCTION WITH THE CARBON TRUST, WHICH ENTAILED AN ANALYSIS OF OUR SCOPE 1 AND 2 EMISSIONS. IN 2018, WE PROGRESSED BY COMPLETING A SCOPE 3 ANALYSIS, WHICH INCLUDES ALL THE INDIRECT EMISSIONS THAT OCCUR IN OUR VALUE CHAIN. AS A FOOD RETAILER THE MAJORITY OF OUR IMPACT IS IN THE VALUE CHAIN. THIS PROVIDED US WITH A FULL INSIGHT INTO ‘HOTSPOTS’ OR KEY AREAS AND PRODUCT CATEGORIES EARMARKED FOR IMPROVEMENT. BY ACCURATELY ASSESSING AND ANALYSING WHERE WE WERE MOST IMPACTFUL, WE COULD MORE EFFECTIVELY TARGET AREAS AIMED AT REDUCING OUR CARBON FOOTPRINT. Carbon Footprint: Our Approach Following on from our carbon footprint analysis, we developed our Our distribution centre in Newbridge, which will be completed in 2019, reduction strategy which first and foremost addresses efficiency will also have an extensive array of solar panels. In 2018 we decided to measures including the certification of all operations to the ISO switch to sourcing 100% renewable electricity, which has significantly 50001 energy efficiency standard and measures such as the reduced the carbon footprint (market-based*) of our operations. As installation of more efficient technologies. We were also delighted to an expanding business we felt this measure was necessary while we announce significant investment in on-site renewables by installing implement the efficiency and on-site renewable measures. We expect solar PV on a number of our stores and integrating solar PV into the to see the benefit in carbon reductions from on-site renewables in the specification of all new stores and major refurbishments. coming years, as they will take some time to install. Lidl Ireland/Northern Ireland | Sustainability Progress Report 2018/19 CA RB Ireland Emissions (tCO2e) Northern Ireland Emissions (tCO2e) % CHANGE 2017-18 SCOPE 2017 2018 SCOPE 2017 Scope 1 Scope 2 (location-based) Scope 2 (market-based) Total Emissions (location-based) Total Emissions (market-based) 2018 % CHANGE 2017-18 3% * -15% -100% -10% -70% ON FO 9,605 37,716 34,442 47,321 44,047 8,866 34,574 0 43,440 8,866 -8% Scope 1 -8% Scope 2 (location-based) -100% Scope 2 (market-based) 1,949 2,002 5,573 4,734 4,755 0 7,522 6,736 6,704 2,002 We are reporting our location-based and market-based carbon footprint. The market-based approach reflects emissions from electricity that companies have purchased. The location-based approach reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data). Lidl has chosen to invest its spending in low-carbon electricity. Scope 1: Direct GHGs released in assets owned and controlled. Scope 2: Indirect GHGs resulting from purchased electricity consumed in owned assets. More information on our Scope 3 emissions will be provided in our next report. Our methodology follows the GHG protocol. More information at https://ghgprotocol.org/ Customer and Society Total Emissions (market-based) tCO2e /m2 130 to 114 (Carbon intensity decrease from 2017 to 2018 2 OT -8% -80% Total Emissions (location-based) PR (location-based)) tCO2e/m 88to76(Carbonintensitydecreasefrom2017to2018 (location-based)) tCO2e /m2 121 to 23 (Carbon intensity decrease from 2017 to 2018 tCO2e /m2 79 to 23 (Carbon intensity decrease from 2017 to 2018 (market-based)) Resources and Agriculture (market-based)) Supply Chain and Processing Operations and Processes Agricultural Inputs Cultivation & Harvesting Animal Keeping Production Processing Transportation Logistics Centre Transportation Stores and Services Purchase Usage Disposal IN page -80% Ireland 37 Northern -70% Ireland tCO2e 2017 vs. 2018 market-based.