Endeavour Group Ltd (ASX: EDV) shares are heading downwards for a second consecutive session today. This comes after the drinks and hospitality company unveiled its own sustainability strategy in it’s maiden sustainabilty voyage.
Around midday, the Endeavour share price is sliding lower to $6.80, down 0.87%. Despite this, the drinks company has outperformed its old acquaintance, Woolworths Group Ltd (ASX: WOW), over the last month. Presently, Endeavour is up 3.95% for the 30-day period, while Woolies is up a lesser 2.91%.
Notably, this is the first peek into Endeavour’s sustainability plans since demerging from Woolworths.
What tackling sustainability means for Endeavour shares
According to the release, the company has a plethora of goals and commitments rooted in ‘creating a more sociable future together’. Firstly, the goals listed are separated into three categories: responsibility and community, people, and planet. Furthermore, there are a total of 11 goals spread across these 3 categories. Examples include:
- Partnering with experts to identify potential strategies to address alcohol and gambling-related harm in the community;
- Respect and promote human rights and ethics in operations and supply chain; and
- Adopt and maintain sustainable practices in the use of natural resources.
For each of the 11 goals listed, Endeavour Group also provides an accompanying commitment. Importantly, these commitments make progress quantifiable for the company — as such, here are some examples from the report:
- By 2025, reach 5 million people with campaigns on responsible consumption and harm minimisation;
- Achieve board and senior leadership diversity balance of 40:40:20;
- By 2030, source 100% renewable electricity to power the business;
Interestingly, the company plans to use facial recognition and predictive algorithms to help address problem gamblers and drinkers. This approach is already being trialled via its Jimmy Brings alcohol delivery business.
Prior to the recent fall in Endeavour shares, CEO Steve Donohue commented on the strategy, stating:
While sustainability has always been central to how we operate, the launch of our first sustainability strategy as an independently listed business is a significant milestone in setting the course for the next phase of our journey.
Additionally, regarding the implementation of technology and research to reduce alcohol and gambling harm, Donohue stated:
An example of a research-led industry partnership is our recent collaboration with DrinkWise whose research found low and non-alcoholic drinks options can help customers moderate their drinking. On the back of this research, we are no trailing dedicated zero, low and mid-strength sections in selected Dan Murphy’s and BWS stores to see how we can best help customers who wish to reduce their alcohol consumption.
While this looks positive at face value, the company is still trying to shake its past Darwin woes. This involved the controversial proposal to construct a Dan Murphy’s outlet near dry communities in the Northern Territory city. However, this plan has since been scrapped after heavy scrutiny by an independent review.
Finally, Endeavour shares will be on watch tomorrow, with the company expected to release a first-quarter trading update.