Chairman's Letter

This is my second letter as Chair of the Corporate Social Responsibility ("CSR") Committee and since last year we have continued to make great progress on our CSR initiatives.

In seeking to ensure that CSR initiatives are increasingly integrated into our business we have developed the programme significantly from when I gave my first report last year. We have added a greater focus on Environmental Management to the Committee's remit and we are constantly seeking to ensure that our Corporate Social Responsibility Strategy remains fit for purpose. During the year, the Committee ensured that:

• short and long term objectives for the Company's CSR activities are in place;
• key metrics are reported on; and
• all related policies are regularly reviewed and updated.

Committee Composition and Meetings

The Committee consisted of:

Helen Jones (Chairman)

Jill McDonald

Jonathan Crookall

Emma Fox (resigned 20 January 2017)

Richard Street (appointed 27 March 2017)

Andy Randall (appointed 27 March 2017)

There were three Committee meetings held during the year and after each one, I reported to the Board on the key issues that we had discussed. Informal discussions were also held between Committee members, business leaders and me throughout the year as the need arose.

Activities undertaken

During the year the Committee:

• agreed internal priorities and metrics to track and deliver CSR progress;
• reviewed and agreed the Company's approach to charitable support;
• approved an additional charity partner, voted for by colleagues;
• approved internal and external policies on Environment;
• carried out an annual review of the CSR Policy;
• carried out an annual review of the Committee's Terms of Reference; and
• reviewed proposed changes in forthcoming CSR related regulations and governance.

Further information on corporate social responsibility in the Group, including environmental details on emissions, can be found in the Strategic Report.

Looking Ahead

We have prioritised our work on Environmental Management as a key area of focus in the year ahead. Having allocated resource to support this, we will concentrate on agreeing detailed benchmarks for measuring our performance and the development of our strategy.

The Committee's Terms of Reference are available on the Company's corporate website
www.halfordscompany.com/investors/governance/our-committees