Report Scope
This report covers fiscal 2025, from May 5, 2024 to May 3, 2025, unless otherwise stated.
Report Boundaries
This report represents the sustainability commitments, targets, approach and progress of Empire Company Limited and Sobeys Inc. Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. It reflects the most current available data, methodologies, reporting frameworks and information provided to us, and should be interpreted in the context of the information presented in this report. Any prior reports or related disclosures that may be inconsistent with the information in this report should be considered, where applicable, amended, restated or superseded. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. This report covers Empire’s food retailing business, as defined in Empire’s 2025 Annual Information Form. This includes corporate and franchisee-owned retail food stores, including convenience and fuel stores, retail pharmacy stores and in-store pharmacies, and excludes investments and other operations. This report focuses on material environmental, social and governance (ESG) factors for Sobeys Inc. operations. This encompasses:
- Full-service, community and discount grocery banners
- Related businesses, including convenience, fuel, liquor, pharmacy, wholesale, Pete’s Frootique and Big 8
- E-commerce grocery business
This report covers our more than 1,600 stores, 24 retail support centres, three customer fulfillment centres and related business locations in all 10 Canadian provinces, as well as 129,000 teammates.
Unless otherwise stated, data included in this report reflects all Sobeys Inc. operations, excluding Farm Boy, Kim Phat, Longo’s and Ricardo.
Report Methodology
This report includes disclosures aligned with and informed by the International Financial Reporting Standards (IFRS) S1 and S2, the Sustainability Accounting Standards Boards (SASB) Food Retailers & Distributors Standard and Drug Retailers Standard (available here), and the Task Force on Climate-Related Disclosures (TCFD). The regulatory landscape related to ESG disclosures continues to evolve, and we monitor these changes to ensure alignment with the standards issued by the International Sustainability Standards Board (ISSB). Empire intends to align with the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (S1) and IFRS S2 Climate-related Disclosures (S2) once they are endorsed by the Canadian Sustainability Standards Board (CSSB) and required by the Canadian Securities Administrators (CSA).
Materiality
The information included in this report is based on the topics that are deemed material to the sustainability performance of Empire Company Limited and Sobeys Inc. For more information see the Materiality section.
Feedback
For related inquiries and the latest updates on our programs and commitments, please contact investor.relations@empireco.ca.
Learn More
This report is part of a suite of disclosures and resources through which we share updates on performance and progress, including:
Forward-Looking Information
This Sustainable Business Report (“SBR”) contains information that may constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information is presented to provide insights related to the Company’s current plans and expectations regarding future events impacting Environmental, Social, and Governance (ESG) topics, including its targets. With the exception of confirmed facts and statements, other information may be based on the Company’s assumptions, predictions and estimations and may be considered as forward-looking information.
Forward-looking statements in this report include but are not limited to future goals and targets for the Company such as its targets towards its net-zero plans, Greenhouse Gas (GHG) emission reduction, fuel emission reduction, food waste reduction and supplier goals for science-based targets. Also included are plans to pursue limited assurance on select ESG metrics, diversity, equity and inclusion, sustainability initiatives planned for fiscal 2026, among other goals and targets outlined in different sections of this report. Further, our expectations relating to certifications for cyber security and data protection as well as our ability to detect, respond and protect our organization from cyber threats may be impacted by cyber threat developments and effectiveness of third-party vendors and advisors. The forward-looking statements included in this SBR may not be appropriate for other purposes outside of this report and may be identified by words or phrases such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “forecasts”, “foresees”, “intends”, “may”, “plans”, “predicts”, “projects”, “will”, “would” and other similar expressions or the negative of these terms.
Although the Company believes the predictions, forecasts, expectations and conclusions reflected in the forward-looking information are reasonable and truthfully represent its activities and expectations based on current circumstances and standards, it can provide no assurance that such matters will prove correct or remain applicable and attainable in the future and that actual forthcoming disclosures may differ from initially anticipated outcomes. This is because the information is also subject to change due to the continually evolving ESG landscape, reporting requirements, uncertainty in sustainability-related disclosure regulations, changes in methodology for assessing metrics and targets, future economic forecasts and policies among other considerations, all of which of may impact the accuracy of the information. Updates and improvements to existing practices to enhance the accuracy and consistency of ESG information such as advancements in technology for emissions accounting may also impact net-zero plans, emission reduction targets and other metrics and targets alike.
By its nature, forward-looking information requires the Company to make assumptions and is subject to inherent risks, uncertainties and other factors that may cause actual results to differ materially from forward-looking statements made. These risks include supplier relationships and negotiations, supply chain disruptions, customer behaviour and resource capacity. For more information on risks, uncertainties and assumptions that may impact the Company’s forward-looking statements, please refer to the Company’s Risk Management section of the fiscal 2025 annual Management’s Discussion & Analysis (“MD&A”).
Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The forward-looking information in this document reflects the Company’s current expectations and is subject to change. The Company does not undertake to update any forward-looking statements that may be made by or on behalf of the Company other than as required by applicable securities laws.
Non-GAAP Financial Measures & Financial Metrics
There are measures and metrics included in this report that do not have a standardized meaning under generally accepted accounting principles (“GAAP”), and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The intent of non-GAAP measures is to provide additional useful information to investors and analysts. Non-GAAP financial measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with GAAP. The Company’s definitions of the non-GAAP terms are as follows:
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is calculated as net earnings before finance costs (net of finance income), income tax expense, depreciation and amortization of intangibles.
Adjusted EBITDA is EBITDA excluding certain items to better analyze trends in performance. These items are excluded to allow for better period-over-period comparison of ongoing operating results. Adjusted EBITDA is reconciled to EBITDA in its respective subsection of the “Operating Results – Full Year” section of the MD&A for applicable years.
Adjusted net earnings is net earnings, net of non-controlling interest, excluding certain items to better analyze trends in performance. These items are excluded to allow for better period-over-period comparison of ongoing operating results. Adjusted net earnings is reconciled in its respective subsection of the “Operating Results – Full Year” section of the MD&A for applicable years.
For a more complete description of Empire’s non-GAAP measures and metrics, please see Empire’s MD&A for the fiscal year ending May 3, 2025.
