WOOLWORTHS LAUNCHES FIRST LOCALLY-MADE BEAUTY PRODUCTS WITH RSPO-CERTIFIED SUSTAINABLE PALM OIL. 14 February 2018

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1 MEDIA RELEASE WOOLWORTHS LAUNCHES FIRST LOCALLY-MADE BEAUTY PRODUCTS WITH RSPO-CERTIFIED SUSTAINABLE PALM OIL 14 February 2018 Woolworths has achieved a significant milestone on the road to its 2020 Good Business Journey target to only offer products made with certified sustainable palm oil. The retailer has launched South Africa s first locally-made, WBeauty soap range bearing the certification logo of the Roundtable on Sustainable Palm Oil (RSPO) Woolworths was the first South African company to become a member of the RSPO in 2011, and now is one of only seven* retailers worldwide permitted to use the RSPO certification logo on their products. RSPO, a non-profit organisation, maintains the global standards for companies throughout the palm oil supply chain so that the legal, economic, social and environmental impacts of palm oil manufacture are responsibly addressed. Palm oil is used widely in food, beauty, cosmetic and cleaning products resulting in global consumption that catapulted from around 14.6 million tons in 1995 to over 61 million tons in 2015**. The ramifications of this demand have included tropical deforestation, the loss of habitat of critically endangered species such as the iconic Sumatran orangutan, tiger and rhino; the displacement of indigenous communities and the overpowering of small-scale family farmers; as well as a release of carbon dioxide that intensifies climate change. Over the past years, social media and organisations like WWF & Greenpeace have played an important role in raising consumer awareness and urging consumer action when it comes to the palm oil used in their favourite shampoos, soaps and toothpastes, chocolates and snacks. Despite the evidence of damage caused by the surge of palm oil production, there are actually good reasons not to boycott palm oil but to rather champion the certified sustainably-

2 produced option. Per hectare, oil palms are the most abundant and effective producers of quality vegetable oil. Where RSPO standards are upheld, palm oil production can reduce additional deforestation, lift vulnerable rural families out of poverty and significantly change the course of their future generations. Our range of WBeauty soap bars bearing the RSPO certified logo represents a fantastic milestone. Sourcing sustainable key commodities like palm oil is a key component of our Good Business Journey. It ensures that our customers enjoy all the benefits of palm oil while having the peace of mind that their purchases are contributing to sustainable solutions, says Feroz Koor, Woolworths Holdings Group Head of Sustainability. When it comes to foods, Woolworths has also made significant strides. Sustainable palm oil has been sourced for the making of Woolworths pies and pastries. All Woolworths pies have been audited and certified by the RSPO and the certification logo will be incorporated onto the new pie packaging that is scheduled to roll out later this year. WWF spokesperson, Tatjana von Bormann congratulated Woolworths on taking a local leadership role in the global domain of sustainable palm oil production. While giving South African consumers the opportunity to use products with RSPO sustainable palm oil certification is significant in its own right, palm oil is also an international commodity and the concerns about production are global. We commend Woolworths for leading the way and highlighting South Africa s role in promoting more responsible purchasing. * Source: RSPO Impact Update report 2017 **Source: ENDS EDITOR S NOTES: Frequently Asked Questions on palm oil & Woolworths sustainable palm oil journey 1. Why is palm oil a good choice of oil? Palm oil palms are the highest-yielding vegetable oil crop. It is a very efficient crop because it needs less than half the land required by other crops to produce the same amount of oil.

3 Palm oil is also a good quality oil in that it has great cooking properties*, smooth and creamy taste*, no smell* and has a natural preservative effect* which can extend the shelf life of food products and ideal for soaps because it has good foaming, structure and performance. 2. How is palm oil derived & where is it sourced from? Palm oil is mostly derived from the West African oil palm tree which has been cultivated in tropical biomes across Africa, Asia and the tropical Americas. Currently the majority of the palm oil used in South Africa is from Indonesia and Malaysia. 3. Which products typically contain palm oil? Because of its versatility palm oil is used widely in food, beauty, cosmetic and cleaning products. It can be found in most shampoos, soaps and toothpastes, pies, chocolates and snacks. 4. What is the global demand for palm oil? Global consumption of palm oil has catapulted from more than 14.6 million tons in 1995 to over 61 million tons in 2015.** ** Source 5. What are the concerns around palm oil production? The increased demand on palm oil has resulted in tropical deforestation, the loss of habitat of critically endangered species such as the Sumatran orangutan, tiger and rhino; the displacement of indigenous communities and the overpowering of small-scale family farmers; as well as a release of carbon dioxide that intensifies climate change. 6. What is WWF s position on Palm Oil? WWF is very concerned about the negative impacts of irresponsible palm oil production on forests, species and communities. However, WWF is not anti-palm oil, as it acknowledges that humans need vegetable oil for food, and the palm oil industry, when it is operating responsibly, can have positive impacts on national development and poverty reduction. Meanwhile, it is widely acknowledged that yield increases in existing oil palm plantations and the use of low carbon and low value degraded land could supply future projected demand without having to require further forest conversion.

4 It is important to recognize that palm oil is by far the most productive vegetable oil presently produced at a large scale. A shift to other vegetable oils would inevitably mean demand for more agricultural land and water to produce the same volume of oil. At the level of individual operators, meanwhile, and because the global market for vegetable oil is so interlinked, a decision by one company to shift from palm oil to an alternative will simply displace the demand for that alternative to other oils. That means that overall the demand for palm oil will not have decreased, but its supply will simply have been shifted to another part of the market. For all these reasons WWF considers it is more productive to work with the palm oil sector, as well as other vegetable oil sectors, to move them to sustainability rather than to boycott their products. 7. Wouldn t it be better for the planet to rather replace palm oil with an alternative oil? Although using other vegetable oils seems like a practical solution, it could actually create similar - if not even larger - environmental and social problems. Replacing palm oil with other types of vegetable oil (such as coconut, sunflower, soybean or rapeseed oil) would mean that much larger amounts of land would need to be used, since palm trees produce 4-10 times* more oil than other crops per unit of cultivated land. This would result in serious environmental damage, with the risk that more forests would need to be converted into agricultural land. In producing countries, millions of farmers and their families work in the palm oil sector. Palm oil plays an important role in the reduction of poverty in these areas. In Indonesia and Malaysia, a total of 4.5 million people* earn their living from palm oil production. Replacing palm oil with other types of oil is not always feasible due to palm oil s unique properties. Using other oils would not give the products the same texture and taste that palm oil offers. Consequently, Woolworths decided that the best solution is to ensure that the palm oil used is certified sustainable. 8. What is certified sustainable Palm Oil, and why is it a better option? Certified sustainable palm oil is palm oil that was certified by the Roundtable on Sustainable Palm Oil (RSPO) according to specific criteria. These criteria help to reduce the negative impacts of palm oil cultivation on the environment and communities.

5 9. What is the Roundtable on Sustainable Palm Oil? The Roundtable on Sustainable Palm Oil (RSPO) is a not-for-profit that unites stakeholders from the 7 sectors of the palm oil industry: oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental and social non-governmental organisations (NGOs), to develop and implement global standards for sustainable palm oil. The RSPO has developed a set of environmental and social criteria which companies must comply with in order to produce Certified Sustainable Palm Oil (CSPO). When they are properly applied, these criteria can help to minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions. The RSPO has more than 3,000 members worldwide who represent all links along the palm oil supply chain. They have committed to produce, source and/or use sustainable palm oil certified by the RSPO. 10. What is the RSPO s vision? The RSPO s vision is to transform markets to make sustainable palm oil the norm. 11. Why is choosing RSPO certified products a good choice? RSPO certification is an assurance to buyers of palm oil products that the standard of production is sustainable. RSPO certified products means that the palm oil production process has been certified sustainable which reduces additional deforestation, lifts vulnerable rural families out of poverty and significantly changes the course of their future generations. One of the most important RSPO criteria states no primary forests or areas which contain significant concentrations of biodiversity (e.g. endangered species) or fragile ecosystems, or areas which are fundamental to meeting basic or traditional cultural needs of local communities (high conservation value areas), can be cleared. Other RSPO principles stipulate a significantly reduced use of pesticides and fires; fair treatment of workers according to local and international labour rights standards, and the need to inform and consult with local communities before the development of new plantations on their land.* 12. What is the current percentage of global palm oil that is RSPO certified? According to the RSPO s latest impact report dated 11 January 2018, 19% of global palm oil is certified sustainable.

6 13. When did Woolworths become a member of the RSPO? As part of its Good Business Journey, Woolworths become the first South African company to become a member of the Roundtable on Sustainable Palm Oil (RSPO) in Woolworths joined the RSPO to promote and raise awareness of the need for sustainable palm oil production. 14. Why did Woolworths choose to join the RSPO & utilise its supply chain certification system? The Woolworths Good Business Journey shares the same vision as the RSPO in that it wants sustainable palm oil to become the norm. The RSPO is a democratic, multi stakeholder organisation with principles & a code of conduct from source to end product that is aligned to Woolworths values. The palm oil supply chain is complex with several layers of intermediary suppliers plantations, small holders, crushing mills, shippers distributors, traders, refiners, ingredient manufacturers and product suppliers (food/beauty). RSPO s certification system is very thorough and includes this entire complex supply chain with full traceability from source to end product. 15. What is Woolworths 2020 Good Business Journey goal for the sourcing of sustainable palm oil? As part of it s 2020 Good Business Journey goals, Woolworths has set a goal to source only RSPO certified sustainable palm oil for its private label products. 16. Why is palm oil, the oil of choice in soap bars? Due to its quality, good foaming, structure and performance, palm oil is the oil of choice when it comes to making soap bars. 17. How will customers know that Woolworths soap bars are now made with RSPO certified palm oil? Woolworths Customers will now notice the RSPO logo on the packaging of the new WBeauty soap range launching in stores across the country. This is their guarantee that the palm oil used is certified as sustainable.

7 18. How many retailers world-wide are using the RSPO logo on their products? According to the RSPO s 2017 Impact Report Update, Woolworths if one of seven retailers that are permitted to use the RSPO certification logo on their products. 19. What about all the other Woolworths products that contain palm oil as an ingredient? When it comes to foods, Woolworths has also made significant strides. Sustainable palm oil has been sourced for the making of Woolworths pies and pastries. All Woolworths pies have been audited and certified by the RSPO and the certification logo will be incorporated onto the new pie packaging that is scheduled to roll out later this year. * Source For more information on: Roundtable of Sustainable Palm Oil: Woolworths position statement on Palm Oil: m_oil_position_statement_2018.pdf WBeauty soaps now made with certified sustainable palm oil: Longmarket Watermelon and guava tin soap 225g R Longmarket Peony and honey tin soap 225g R Longmarket White tea tin soap 225g R Longmarket Sweet citrus and green leaf tin 225g R Longmarket Pomegranate fragranced soap 175g R Longmarket Orange blossom soap 175g R Longmarket Rose and sandalwood wrapped soap 125g R Longmarket Carnation and jasmine wrapped soap 125g R Longmarket Sweet tangerine and pear tin soap 225g R Longmarket Cranberry and white nectarine tin soap 225g R Baroque rose and vanilla tin soap 225g R Orange blossom and vanilla tin soap 225g R Rose petals and peony tin soap 225g R Rosewood and golden amber tin soap 225g R Soft cedar and pink pepper wrapped soap 175g R Freesia and rose bouquet wrapped soap 175g R White pear and jasmine sambac wrapped soap 175g R 49.95

8 Mandarin orange and raspberry wrapped soap 175g R ISSUED ON BEHALF OF WOOLWORTHS CONTACT: DIANE PETERSON CELL: dianepeterson@woolworths.co.za