Kingfisher : Responsible Business report 2022/23

At Kingfisher, we are committed to doing everything we can to make a positive impact for society so that all our homes - including our communities, our forests and our planet - can flourish.

This Report summarises the actions we've taken during financial year 1 February 2022 - 31 January 2023 to make progress towards our Responsible Business targets.

We also publish a Performance Data Appendix which includes details

of how our reporting aligns with external frameworks including the United Nations Global Compact, the United Nations Sustainable Development Goals and the Sustainability Accounting Standards Board (SASB). This year we also published a Responsible Business Databook.

Our disclosure against the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and a report by our Responsible Business Committee are included in our Annual Report and Accounts.

Contents

1. About Kingfisher
2. From our Chief Executive Officer
3. Responsible Business Highlights 2022/23
4. Our Responsible Business strategy
5. Our four priorities
6. Colleagues
7. Our action plan for inclusion and diversity

1. Delivered: Five million hours of skills for life learning
2. An inclusive workplace for young people

1. Planet
2. On our way to net zero

26 Our ambition to become Forest Positive

1. Customers
2. What's a Sustainable Home Product?

1. Sales of Sustainable Home Products reach 46.8%

1. Targeting peat-free gardening for our customers
2. Our progress on plastics
3. Circular proves smart
4. Packaging reduction and optimisation

1. Chemicals

1. Communities
2. Our community impact for 2022/23

1. Where and how we're creating community value

1. Supporting global relief efforts

1. Our Responsible Business Fundamentals

1. Assurance statement

Who we are

Kingfisher is an international home improvement company with over 1,9001 stores in eight countries across Europe.

We offer home improvement products and services to consumers and trade professionals through our stores and e-commerce channels.

Our purpose

82,0001, 2

colleagues

Over 1,9001

stores

Over 2,700

suppliers across 63 countries

Where we operate

Kingfisher operates in eight countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint

and Koçtaş.

1,188

UK &

3

97

We believe a better world starts with better homes. We help make better homes accessible for everyone.

Ireland

223

France4

28

Spain

Poland

33

Romania

355

Turkey5

At Kingfisher, we are committed to leading our industry in Responsible Business. This is one of the key pillars in our Powered by Kingfisher strategy. Our purpose is to 'make better homes accessible for everyone' and we aim to do this in a way that serves the current and future needs of our communities, customers, colleagues and planet.

Over the last year, we have made good progress across many of our targets.

Empowering our colleagues

We continue to work to become a more inclusive company, breaking down barriers to employment and progression and helping every colleague realise their potential. In 2022, this included the roll-out of immersive diversity and inclusion training for senior teams, the creation of new development programmes for store-based colleagues and support for apprenticeship programmes. Feedback from colleagues suggests we are on the right track - our engagement score remains above average for our industry and our employee Net Promoter Score is in the top 5% of global retailers. We have also made progress on gender balance in leadership, but there is still more work to be done. We are on

track to meet our target for gender diversity in management positions. We have delivered an additional 2.6 million hours of skills for life, reaching our target of 2025 ahead of time.

Energy efficiency and sustainable homes

Climate change and rising energy prices made energy efficiency a priority for both households and governments in 2022. We have been focused on this issue for many years, and were able to further expand our range of energy saving products and services to meet growing demand. This included launching new energy saving services in the UK and France, enabling more customers to save money

by improving home energy efficiency and introducing new renewable energy products. We're committed to further developing our offer in this space to help customers.

Our sustainable products

Energy is just one part of our wider commitment to making sustainable living more affordable and accessible. 47% of total Group sales were from products helping to create greener, healthier homes this year. Our teams continued to make great progress in improving the sustainability of our ranges in key areas such as peat-free compost, and increased use of recycled and more sustainable materials.

Our Sustainable Home Products are everyday products with sustainability built in, sold at prices that are affordable to most people. Underlining our commitment, we have made sustainability one of three core pillars for our Own Exclusive Brands (OEB) strategy, alongside innovation and affordability. Moving forward, all new OEB product launches and range reviews will align to these pillars.

Taking action to protect the planet

We have continued to make progress on our own environmental commitments, meeting our 1.5°C aligned science-based scope 1 and

2 carbon reduction targets. We have reduced emissions by 52.6% since 2016/17 and have made a strong start towards our new ambition to reach net zero operational emissions by 2040. Scope 3 emissions are particularly challenging to address, and we are pleased to have achieved a reduction in emissions intensity from our supply chain and customer use of products of 34% since 2017/18, and we are on track to reach our target of 40% by 2025. Our efforts were recognised with an A score in CDP Climate Change, which puts us among 297 leading companies globally.

We also reached 94% responsibly sourced wood and paper in our products this year. We continued to support community managed forests through our membership of the Rainforest Alliance's Forest Allies, while four

banners now support local forest projects and are getting our people involved in our efforts to become Forest Positive.

Improving housing in our communities

We are part of local communities through our stores, our colleagues, our customers and our suppliers. We want to have a positive impact on the neighbourhoods in which we operate and use our expertise and resources to help improve homes for those in need. This year, our network of local charitable foundations supported a range of innovative projects and donated and fundraised over £8 million. Since 2016/17, collectively we have reached over 2 million people.

We have a great opportunity to help create more sustainable homes through our products and services, and to contribute to a more sustainable future through our business. We are looking forward to making further progress on our goals in 2023/24.

Thierry Garnier

Chief Executive Officer

Responsible Business Highlights 2022/23

Committed to a 1.5°C trajectory

We're working towards net zero by 2040 for our scope 1 and 2 emissions, and have our science-based targets in place to 2025

Helping local housing

We have a network of seven charitable foundations across our banners

52.6%*reduction in carbon emissions across our operations

We purchase electricity from zero carbon and renewable sources

Inclusion and diversity strategy