Materiality and governance

We have aligned our focus to the UN Sustainable Development Goals and identified the issues which matter most to our stakeholders, and where we believe we can have the biggest impact through a materiality assessment.

Our sustainability governance

^{1. Remit of Committee in relation to the sustainability strategy. For full details on the Committees please see our 2025 Annual Report or our Corporate Governance webpage.}

^{2. Attendees include the Chief Commercial Officer, Sainsbury’s, Chief Property and Procurement Officer, MD Smart Charge, Director of Sustainability, Director of Corporate Affairs, Director of Finance and subject matter experts from different areas of the business.}

Key activities in 2025/26

Approved the year-end results and reporting for 2024/25
Reviewed the Plan for Better metrics and targets, including priorities for 2025/26 and the approval of potential
metrics for the 2025 Long-Term Incentive Plan (LTIP)
Discussed the Group’s performance in the Advantage survey and identified opportunities for the future
Received updates on the government relations strategy for 2025/26
Reviewed the investor Plan for Better communication and engagement strategy
Reviewed customers’ perceptions across our Plan for Better pillars
Approved updates to the Committee’s Terms of Reference
Received updates on our community and partnership work, including an update on the future ambition of our Comic Relief partnership
Discussed the approach, progress and priorities of the Group’s human rights work
Received updates on our approach to achieving net zero, including challenges, climate transition planning and emissions reduction plans and roadmaps for Scope 1, 2 and 3 emissions. The approach for Scope 3 emissions reporting was also discussed
Reviewed the Group’s revised packaging strategy and targets
Received upskill on trends and external factors in the health and nutrition space, discussing the implications of these on our future health strategy
Received updates on changes to UK sustainability reporting requirements, including on readiness and future approach

Plan for Better, helping to build a resilient and sustainable food system

We are deeply mindful of the impact of the Plan for Better strategy on those we serve and work with, including our customers, the community, suppliers, shareholders and the government.

Our materiality assessments

In February 2022, we conducted a refreshed materiality assessment. Previously we undertook a materiality assessment in 2019 to inform the development of our sustainability strategy and the pillars and targets under the plan. The output of this materiality assessment was shared using a materiality matrix at our ESG investor event in June 2021, with a commitment to continue to review our material issues with our key stakeholders.

Informing our Plan for Better

The insights from the below materiality assessment were used to evolve our strategy and ensure that our Plan for Better is focussed on the important issues to our stakeholders and areas that will have the greatest impact on our business. We have since reviewed this to ensure our strategy is continuously aligned with expectations of our stakeholders, and as noted above, are currently undergoing a Double Materiality Assessment.

We report on progress against our ambitions and targets as part of Plan for Better, including across human rights, community and partnerships, plastic packaging, recycling and animal health and welfare.

Our approach to materiality

Outlined below are the steps taken to conduct our 2022 materiality assessment below. In order to ensure a rigorous process, we are consistently refining our approach.

Identify issues: With the support of internal experts across the business, we developed a list of 16 key issues to form the basis of the assessment The issues were identified through horizon and trend scanning, competitor and benchmark review taking into consideration our Plan for Better objectives and the broader Environmental, Social and Corporate Governance (ESG) agenda.

Stakeholder engagement: We engaged key stakeholder groups to understand how important the 16 key issues were for Sainsbury’s Group to address. Working with an independent third-party organisation to conduct anonymous surveys, we surveyed customers, non-governmental organisations and members of parliament. We also engaged directly with colleagues, suppliers and investors ensuring we gained insight from all perspectives that impact our business. Overall we sought feedback from:

Over 1,500 colleagues, representative of all areas of the business including our senior leaders
Over 2,000 customers, a nationally representative sample including customers of all Sainsbury’s Group brands
Over 100 non-governmental organisations
Over 300 suppliers, representative across all business areas and brands
97 members of parliament, representative across all parties and regions
26 investor representatives

Issue prioritisation and mapping: Following consultation, we undertook an analysis of the findings, drawing on expertise from our Sustainability, Insights and Finance teams. The results of the analysis have been plotted onto a materiality matrix to visualise the importance of topics and the impact to our business over a 3 – 5 year horizon.

Governance: The materiality review and the outputs were validated via our Plan for Better governance forums to ensure input at all levels and consultation with subject matter experts. We are committed to continually engaging with our stakeholders to ensure that we understand the most material issues that impact our business and our stakeholders.

Results: the results of the assessment can be seen plotted onto the above materiality matrix.