Regulatory developments

This year has seen a continued increase in regulation and Government interest in corporate responsibility issues, both in the UK and at a European level. We track proposed legislation and look for opportunities to engage in constructive discussion over its implementation. Much of this work is done in conjunction with other retailers through the British Retail Consortium, supplemented by our own direct contacts with Government.

Examples of such legislative developments are:

• The Carbon Reduction Commitment - a mandatory emissions-trading scheme for large, non-energy intensive commercial and public sector organisations, which will be effective from April 2010
• Ofgem’s ‘Developing Guidelines for Green Supply’ consultation, which proposes changes to how companies report their CO₂ emissions
• EuP (Energy Using Products) Directive: New energy efficiency standards and product labelling for energy-using products.

We carefully consider these developments, the potential effect on our business and how we should respond. During this year, Group chief executive, Terry Duddy, wrote to Government Ministers to urge reductions in VAT on energy-efficient appliances and also to confirm the Group’s support for the retail sector’s voluntary initiative to reduce carrier bag consumption.

The Group has responded to Government consultations on waste battery legislation, due to be implemented at the beginning of 2010, and to the review of legislation regarding waste electrical and electronic equipment.