We’ll create 50,000 new jobs by 2020, pledges Sainsbury’s

The firm, which has 21 million customers and almost 1,000 stores – including about 47 in Scotland – said it was the most ambitious and far-reaching programme ever announced in the industry, setting out 20 targets covering its products, community work and employees.

Initiatives will include driving down energy use in supermarkets using carbon-saving technologies, doubling the amount of British food sold from the current £4bn a year, increasing sales of fairly traded products to £1bn and making sure suppliers of meat, poultry, eggs and dairy goods follow higher welfare standards.

But business leaders have warned that the supermarket could scale back its investment north of the Border, when the Scottish Government’s retail levy is introduced.

Sainsbury’s also announced today that 20,000 workers will have reached 20 years of service by 2020, while the number of employees with shares in the business will increase by 25 per cent – and 30,000 people from disadvantaged groups will have been given work opportunities.

Chief executive Justin King said: “Given the scale of our business, we believe these 20 commitments represent the most ambitious sustainability targets in our industry.

“If we are to meet the sustainability challenges that lie ahead, it is important that companies such as Sainsbury’s invest in the future right now. We do not see this plan as a luxury, it is rather an essential investment that will ensure we can continue to provide customers with quality food at fair prices, sustainably.

“This represents another step in helping our customers live well for less.”

Mr King said the company had achieved most of its commitments covering corporate responsibility issues and now wanted to take a long-term view of how it conducted its business. “This will change the agenda in our industry,” he added.

Iain McMillan, director of CBI Scotland, said he hoped the Scottish Government’s “supermarket tax” would not deter Sainsbury’s from expanding north of the border.

“This investment by Sainsbury’s is very welcome, as are the jobs which will be created as a result,” he said. “However, I do hope that the Scottish Government’s plans to increase the rates bills of our largest retailing members does not hold back Sainsbury’s investment in Scotland.”

Mr King earlier this year warned that an earlier incarnation of the levy – which will see supermarkets and other large vendors of alcohol and tobacco pay a supplement through their business rates – could force the firm to cut back its existing expansion plans north of the border. The company yesterday refused to say where the latest investment would be focused, geographically.

Prime Minister David Cameron praised the chain – which yesterday bought up digital download firm Global Media Vault – saying it was helping to create jobs and growth while tackling social and environmental challenges.

Peter Kendall, president of the National Farmers Union, also welcomed the planned increase in sourcing British food.