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Woolworths Group manages its capital structure with the objective of enhancing long‑term shareholder value through funding its business at an optimised weighted average cost of capital. 

Capital markets debt

Issue amountOutstanding amountCouponMaturityTenor (years)Documentation

AUD400m*

 AUD400m

2.85%

Apr-24

5

Offering Circular

AUD400m*

   AUD400m

1.85%

      May-25

5

Offering Circular

AUD600m*

   AUD600m

2.80%

      May-30

10

Offering Circular

EUR550m

   EUR550m

0.375%

      Nov-28

7

Offering Circular

Supplemental

Offering Circular

AUD350m

   AUD350m

1.85%

       Nov-27

6

Offering Circular

Supplemental

Offering Circular

AUD350m

   AUD350m

2.75%

      Nov-31

10

Offering Circular

Supplemental

Offering Circular

* The Green Bond A$400m 2024 AMTN and the recent A$400m 2025 AMTN & A$600m 2030 AMTN are now Eligible Securities as granted by the Reserve Bank of Australia.

Woolworths Group was the first retailer in Australia, and first supermarket globally, to issue Green Bonds certified by the Climate Bonds Initiative.

Green Bonds are bonds issued to finance projects, assets or expenditure that deliver positive environmental outcomes or refinance corporate debt that supports such projects, assets or expenditure. We have developed our Green Bond Framework in line with the Green Bond Principles 2018 developed by the International Capital Markets Association.

The documents relevant to our Green Bond issuance(s) are set out below:

 

Woolworths Group has chosen to create a Sustainability Linked Bond Framework in order to align its sustainability plan with its long term financing strategy.

Woolworths Group cares deeply about its impact on people and the planet, and we want to go further than just minimising harm – we want to create good. This will be done through ongoing improvement of how Woolworths Group conducts its own business, including how it engages its people and the communities in which it operates.

The documents relevant to our Sustainability Linked Bond Framework are set out as below:

Basis of preparation

As per the terms of the Sustainability Linked Bonds and the Sustainability Linked Bond Framework, Woolworths Group is required to report progress on an annual basis, expressed as a percentage, in reducing scope 1 and 2 emissions, in line with a 1.5 degrees Paris Agreement pathway, as verified by the SBTi.

Our approach

Woolworths Group uses an operational control approach to measuring emissions, where we have the primary authority to introduce and implement operating policies. Woolworths Group reports in compliance with the NGER Measurement Determination, NZ Ministry for the Environment - 2022 Emissions Measurement Guide, and NGA emission factors.

Material scope 1 emissions sources include fugitive synthetic refrigerants, transport fuel for company-owned or company-controlled fleet cars and home delivery trucks, and natural gas.

Scope 2 emissions are those associated with purchased electricity use across all stores, distribution centres and offices and make up the largest part of our operational footprint. Woolworths Group’s scope 2 emissions reporting is location-based.

Baseline and restatements

The baseline year used to create the SBTi approved decarbonisation trajectory was F15 and this is the relevant baseline year for the purposes of calculating the percentage reduction in emissions for the Sustainability Linked Bonds.

The current F15 baseline as verified by the SBTi:

  • Includes emissions relating to Endeavour Group, which was separated from Woolworths Group at the start of F22

  • Excludes emissions relating to Quantium and PFD Food Services, which were acquired in F21 and F22, respectively.

Thus, to provide a more meaningful representation of the reduction in emissions, an adjusted scope 1 and 2 emissions baseline has been provided that reflects the organisational structure as at end F22. This is the reporting approach we have used for all F22 reporting, accessible here:

https://www.woolworthsgroup.com.au/au/en/investors/our-performance/reports.html

SBTi requires organisations to regularly review their progress and baselines. Woolworths Groups’ baseline changed materially following the demerger of Endeavour Group and the acquisitions of PFD Foods and Quantium.  Therefore, Woolworths Group is in the process of submitting emission targets for re-validation. The revised baseline and proposed targets are currently with SBTi. Once the new targets are validated these will be shared publicly and will be used for the purposes of reporting the progress on Woolworths Group’s reduction in scope 1 and 2 emissions.

Reporting against both approaches is shown in the following table.

Performance against SBTi

Year

Scope 1 and 2 emissions – as verified by SBTi (tCO2e)1

Scope 1 and 2 emissions – adjusted (tCO2e)2

F15 - baseline

3,288,012
(Includes Endeavour Group and excludes Quantium and PFD)

2,934,937
(Excludes Endeavour Group and includes Quantium and PFD)

F22

2,010,037

2,010,037

%  reduction

38.9%

31.5%

  1. Woolworths Group’s scope 1 and 2 emissions as verified by the SBTi. For 2015 (baseline) year, includes emissions relating to Endeavour Group. For 2022 year, excludes emissions relating to Endeavour Group and includes emissions relating to Quantium and PFD Food Services

  2. Woolworths Group’s scope 1 and 2 emissions adjusted for Woolworths Group’s material demergers and acquisitions since SBTi verification. Emissions relating to Endeavour Group have been excluded and emissions relating to Quantium and PFD Food Services have been included in 2015 (baseline) year

Woolworths Groups’ target reduction in scope 1 and 2 emissions were validated by the Science Based Targets initiative (SBTi) in 2020. SBTi is an independent global body formed by the United Nations Global Compact, CDP, the World Resources Institute, and the World Wildlife Fund for Nature. The SBTi assesses and approves companies’ targets through a scientific lens, ensuring alignment with the Paris Agreement goal of limiting climate change to an increase of 1.5 degrees above pre‑industrial levels.

To align to the goal to keep warming to 1.5 degrees, Woolworths Groups current target is to reduce scope 1 and 2 emissions by 63% from a 2015 baseline, by 2030.

As of June 2022, Woolworths has reduced its scope 1 and 2 emissions by 31% since 2015.

Assurance report

Sustainability Linked Bond Report independent assurance report (2022)

 

Woolworths Group returns capital to shareholders when consistent with its long-term capital structure objectives and where it will enhance shareholder value.

Buy-Back 2021

As part of our capital management strategy, Woolworths Group successfully completed its $2bn off-market buy-back on Monday, 18 October 2021. 58 million shares were bought back and subsequently cancelled. 

The key documents below should not be distributed or released in or into the United States or Canada. 

Buy-Back 2019

As part of our capital management strategy, Woolworths Group successfully completed its A$1.7bn off-market buy-back on 27 May 2019. 58.7 million shares were brought back and subsequently cancelled.

The key documents below should not be distributed or released in or into the United States or Canada.

Woolworths Group is committed to solid investment grade credit ratings. 

  • Credit metrics have significant headroom above thresholds for current ratings

Standard & Poor's

Moody's
BBB (stable outlook)*                Baa2 (stable outlook)*

* These credit ratings have been issued by a credit rating agency which holds an Australian Financial Services Licence with an authorisation to issue credit ratings to wholesale clients only and are published for the benefit of Woolworths Group’s debt providers.