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Environmental impacts

Energy

Kesko participates in mitigating climate change by purchasing and producing more of its own renewable energy.

Renewable electricity

Kesko has decided to purchase electricity produced with 100% renewable energy from the beginning of 2017. Kesko will purchase approximately 540 GWh of electricity in Finland in 2017. The electricity is used in K-stores and other Kesko properties.

Kesko purchases renewable electricity with the Renewable Energy Guarantee of Origin (REGO) from the Nordic countries. In 2017, electricity purchases will especially focus on Finnish bioenergy. Bioenergy is based on, for example, by-products from the forest industry and wood based fuels.

Solar power plants at K-stores

In 2016, Kesko made significant investments in the construction of solar power plants. In June 2016, Finland’s biggest property specific solar power plant was completed on the rooftop of K-Citymarket Tammisto, Vantaa. Additionally, a total of 11 K-Supermarkets and K-Citymarkets had a solar power plant installed on their rooftops by the end of 2016. A total of 210 MWh of electricity was produced with solar power in 2016.   

By summer 2017, Kesko will have two more solar power plants installed. After this, Kesko will have 15 solar power plants producing approximately 3,559 MWh annually. The new investments will make the Kesko Finland’s biggest producer and consumer of solar power.

Watch the video on solar power use at K Group

 

302-1 Energy consumption within the organisation

Energy consumption of properties
Finland 2016 2015 2014
Electricity1 (MWh) 458,690 694,5442 754,301
District heat (MWh) 308,924 254,2142 292,453
Fuel for self-produced heat (MWh) 5,169 3,406 4,233
Total energy consumption (MWh) 772,783 952,164 1,050,987
Total energy consumption (TJ) 2,782 3,428 3,784
Other operating countries 2016 2015 2014
Electricity (MWh) 100,808 103,038 96,231
District heat (MWh) 18,893 17,8402 17,607
Fuel for self-produced heat (MWh) 29,874 26,8902 29,116
Total energy consumption (MWh) 149,575 147,768 142,954
Total energy consumption (TJ) 538 532 515
All operating countries 2016 2015 2014
Total energy consumption (MWh) 922,358 1,099,932 1,193,941
Total energy consumption (TJ) 3,320 3,960 4,299
1 The reporting boundary has changed in 2016, includes only electricity purchased by Kesko
2 Figure has been adjusted for improved accuracy since the previous report
Energy consumption in properties in Finland

At the end of 2016, properties managed by Kesko in Finland (owned and leased) included offices, warehouses and approximately 1,450 store sites. The total area of the property portfolio increased by 16.5% due to the acquisition of Suomen Lähikauppa and Onninen.

The total consumption of heat increased by 22% due to the increased stock of real estate. The majority of properties used district heat, but in addition 1.6% of the heat energy was self-produced. In 2016, the heat energy produced with natural gas and oil at properties in Finland totalled 18.6 TJ (5.2 GWh).

Beginning in 2016, the electricity consumption of Kesko in Finland includes only electricity purchased by Kesko. In previous years, the electricity purchased by retailer entrepreneurs at properties managed by Kesko has been estimated and reported. Heat consumption is reported for properties managed by Kesko.

Calculation methods and electricity and heating consumption statistics by property type and changes in properties in Finland are available in the Energy consumption tracking and Environmental profile reports.

Energy consumption in properties in other operating countries

During 2016, Kesko’s stock of real estate outside of Finland changed significantly due to the acquisition of Onninen and the divestment of the K-food stores in Russia. Onninen operates in Kesko’s previous operating countries and additionally in Poland.

The heating energy was partly self-produced with natural gas and oil. In Belarus, a small amount of timber (950 MWh) and peat (130 MWh) were also used for heating. In 2016, the fuels used for self-produced heat totalled 107.5 TJ (29.9 GWh).

Subsidiaries outside of Finland report their fuel and purchased energy consumptions to Kesko and statistics per country are compiled from this data. The heating energy data is not reported for some properties (5% excluding Onninen’s properties) because it is included in the lease or is not available.

Primary energy consumption

The primary energy consumption for purchased energy in all operating countries in 2016:

  • Renewable: 407 TJ (6%)
  • Nuclear power: 5 348 TJ (77%)
  • Non-renewable: 1 143 TJ (17%)
Fuel consumption of logistics in Finland

The energy consumed by Kesko Logistics' own transportation or that under its direct control was 503.9 TJ in 2016. The fuel used was diesel. In 2016, the total distance driven by Kesko Logistics was 32.3 million km (31.1 million km in 2015).

Energy consumption was calculated using data on kilometres driven, volumetric efficiencies and the transportation fleet. The calculation was made according to the Lipasto calculation system of the VTT Technical Research Centre of Finland.

Fuel consumption of logistics in other operating countries

Most of Kesko’s subsidiaries have outsourced logistics operations. In 2016, the logistics in Estonia consumed 4.1 TJ of fuel (diesel and gasoline).

Total energy consumption

In 2016, Kesko’s energy consumption in all operating countries totalled 3,828 TJ.

A total of 634.1 TJ of fuels from non-renewable sources were used for transportation as well as self-produced heat of properties. In addition, 3.4 TJ of renewable fuels were used.

302-3 Energy intensity

Specific consumptions of energy, properties managed by Kesko
kWh/br-m2 2016 2015 2014
Finland
Specific consumption of electricity 204 207 205
Specific consumption of district heat 79 76 79
Other operating countries
Specific consumption of electricity 88 99 94
Specific consumption of heat 42 431 46
1 Figure has been adjusted for improved accuracy since the previous report

The cold chain and the need for heated premises in food stores and warehouses require greater amounts of energy in comparison with other retail sectors.

The calculation methods for the properties in Finland are available in the Energy consumption tracking report. The specific consumptions of properties in the other operating countries are calculated based on the total area of properties (1,152,000 min 2016).

302-4 Reduction of energy consumption

The K Group participated in the trading sector energy efficiency agreement for 2008-2016. The K Group was committed to improving its annual energy consumption by 65 GWh by the end of 2016. The final results of the agreement will be published by Motiva in summer 2017.

The K Group is participating in the next action plan of the commerce sector Energy Efficiency Agreement for the years 2017–2025. In accordance with the agreement, the K Group commits itself to reducing its energy consumption by 7.5% through various energy saving measures. All K Group store chains are included in the agreement. 

Energy solutions in K-stores


1. Lighting

By February 2016, LED lights are used in all lighting solutions of property development projects. Adjustable, correctly directed LED-lighting can help save up to 50% of electricity consumed compared to traditional fluorescent tube and metal halide lighting solutions.

2. Lids and doors on refrigeration units

In food stores, the consumption of refrigeration systems can account for more than half of the total electricity consumption at small store sites. Lids on freezer chests save 40% of the electricity consumed by uncovered equipment. Doors on dairy and juice cabinets also help save electricity.

3. Real estate managers

Kesko has around 40 Real Estate Managers to help K-stores find ways in which to make their energy consumption more efficient. Regular monitoring, technical supervision and comparison of reports from separate properties are used to maintain an optimal level of energy consumption. Real Estate Managers also help stores with long-term planning. Renovation programmes contain estimates of the refurbishment that should be made within five to six years.

4. Remote monitoring

In February 2017, the building automation of 204 Kesko facilities was monitored by a remote energy management centre. The set points of properties and equipment running hours can be changed from the management centre as necessary, which also enables rapid response to disturbances. Setting the correct running times and set points is the easiest and most effective way to improve energy efficiency.

The remote monitoring of refrigeration systems in stores helped save approximately 3.63 GWh of energy in 2016. Remote monitoring enables refrigeration equipment to be adjusted for optimum temperatures and defrosting cycles. In addition, deviations can be responded to immediately.

5. Condensation heat recovery

Condensation heat from refrigeration equipment is recovered at nearly all K-food stores, which means additional heat energy is needed only during very low sub-zero temperatures.

Increasingly many K-food stores also save energy by using carbon dioxide recovered from industrial processes as the refrigerant in their refrigeration equipment. Carbon dioxide is an environmentally friendly refrigerant.

CO₂ refrigeration plants enable the efficient use of condensation energy together with low temperature heating systems. This combination achieves a considerably higher heat energy recovery efficiency compared to the traditional solutions using condensation heat from HFC-refrigeration units.

6. Solar power

Solar power plants are becoming more widely used on the rooftops of K-stores. The electricity consumption of food stores is greatest during the summer, when the stores and their refrigeration equipment require a lot of electricity for cooling. On a sunny summer day, solar power can cover as much as 60% of the food store's current consumption. The solar panels to be installed on the K-food store roofs will cover around 10-15% of the store’s annual electricity consumption.

Information about energy saving efforts by Kesko Logistics can be found in the section 305-5.

Water

Finland has abundant water resources. However, due to the large consumption of imported processed goods and the virtual water footprint associated with them, almost half (47%) of the water footprint of Finnish consumption falls outside of Finland. Kesko’s most significant impacts from water consumption are thus caused by imported products for sale, which originate from areas suffering from water scarcity or contamination.

Kesko has initiated a water risk assessment for its own-brand products in order to identify the water basins most affected by water scarcity and contamination issues in its supply chain. The water risk assessment is in progress and results will be used to plan actions.

303-1 Water withdrawal by source

Properties managed by Kesko use water from municipal water supplies in all operating countries. In addition, a few wells are in use on properties in Estonia, Lithuania and Belarus. The water consumption from these wells accounts for a minor part (3%) of total water consumption and is thus reported with the municipal water consumption. Waste water from Kesko's operations goes to municipal sewer systems.

Water consumption by country
m3 2016 2015 2014
Finland 933,812 884,0811 935,472
Sweden 7,247 6,3541 5,504
Norway 1,424 1,445 1,407
Estonia 5,922 4,954 4,876
Latvia 9,480 10,128 11,297
Lithuania 40,268 38,472 38,903
Poland 3,100 - -
Russia 84,431 79,755 75,056
Belarus 48,797 43,342 39,741
Total 1,134,481 1,068,531 1,112,256
1 Figure has been adjusted for improved accuracy since the previous report

Water is mainly used for cleaning purposes in the K Group's own operations. Maintaining a high level of hygiene is particularly important in food stores and legal requirements for hygiene must be fulfilled.

Car wash facilities at Neste K service stations in Finland are big individual consumers of water.

The consumption of water at properties in Finland increased significantly in 2016, which was due to the growth in the number of properties resulting from the acquisition of Suomen Lähikauppa and Onninen. Water consumption statistics by property type and changes in the property portfolio in Finland are available in the Energy consumption tracking report.

The growth in the property portfolio due to the acquisition of Onninen caused changes in water consumption also in the operating countries outside of Finland as well as in the new operating country, Poland. The water consumption data from other countries is compiled from figures reported by the companies, which are based on water billing or consumption data. At some stores located in leased properties, water consumption is included in the lease and not available for reporting (6% of locations in other operating countries, excluding Onninen’s properties). Additionally, data was not available for 1% of properties.

 

Biodiversity

Kesko participates in the Business & Biodiversity Finland programme, organised jointly by the Corporate Responsibility Network FIBS and the Ministry of the Environment. Kesko has identified biodiversity impacts and opportunities in its operations. The objective is to take part in projects that promote biodiversity in cooperation with other operators.

304-2 Significant impacts of activities, products, and services on biodiversity

Supply chain

Kesko’s greatest impacts on biodiversity occur throughout the lifecycle of the products on sale. Raw materials critical to biodiversity in Kesko’s supply chain include fish and shellfish, timber, palm oil and soy. Their sustainable sourcing is guided by sourcing policies.

In October 2016, the K Group committed itself to measures aimed at reducing the consumption of plastic bags, and published a plastics policy. The objective is to reduce plastics ending up in water bodies and elsewhere in the environment.

Read more about the plastics policy

Global food production for a growing population is one of the biggest threats to biodiversity in the world. Food security can be improved through sustainable and efficient agricultural practices and minimising food waste.

Food waste and climate change

Minimising food waste along the entire food supply chain from agriculture all the way to the end-consumer reduces the need for primary production and thereby impacts on biodiversity. When food ends up in waste, all emissions from its production, transportation, selling and preparation have been useless. Minimising food waste also reduces related emissions.

Climate change also impacts biodiversity, especially as areas of drought expand. Read more about Kesko’s diverse efforts to reduce food waste and greenhouse gas emissions in the responsibility programme.

K-maatalous Experimental Farm

The K-maatalous Experimental Farm in Hauho focuses on the development of crop varieties and research for the benefit of sustainable cultivation methods and better domestic food production. The research conducted on the Experimental Farm aims to provide K-maatalous retailers and farmers with solutions tested in Finnish conditions for making productive product choices and optimising their harvests. In Finland, around 80% of K-food stores’ purchases are from domestic suppliers, which is why sustainable and vital Finnish agriculture is important to the K Group.

In June 2016, the K-maatalous Experimental farm made a Baltic Sea Commitment to the Baltic Sea Action Group (BSAG). The Experimental Farm tested measuring devices and methods aimed at providing practical ways to measure and monitor the use of nutrients and to assess the soil condition in rapid succession.

Measuring methods promote sustainable agriculture as investments can be optimised according to crop targets and use, soil potential and the requirements of plant varieties. Good soil condition and appropriate fertilisation, as well as transforming nutrients to good crops are important profitability factors for farmers, but also reduce the nutrient leakages to the Baltic Sea. Properly treated soil also sequesters carbon to soil and thus combats climate change.

304-3 Habitats protected or restored

Kesko builds store sites only in areas planned by municipalities for business properties. Surveys of contaminated land are made annually in connection with construction work and real estate transactions.

In 2016, one Kesko property was restored in Porvoo, from which a total of around 93 tons of contaminated soil material was removed from a site of 3,385 m2. No concentrations of hydrocarbons exceeding the guideline level were left in the restored area. The Uusimaa Centre for Economic Development, Transport and the Environment has checked the restoration report and stated that no further soil restoration is needed in the area.

Kesko does not have protected habitats of its own.

Emissions

Kesko reports direct and indirect (Scope 1 and 2) greenhouse gas (GHG) emissions from its operations according to the GHG Protocol standard.

  • Scope 1: GHG emissions caused by fuel consumption for producing heat at properties managed by Kesko and for transportation of goods directly controlled by Kesko
  • Scope 2: GHG emissions caused by generation of electricity purchased by Kesko and district heating consumed in properties managed by Kesko

 

305-1 and 305-2 Direct and energy indirect GHG emissions (Scope 1 and 2)

Scope 1 and 2 emissions, Finland

* The reporting boundary changed in 2016.

Scope 1 and 2 emissions, all operating countries

* The reporting boundary changed in 2016.
** Scope 2 figure adjusted for improved accuracy since the previous report.

Scope 1 and 2 GHG emissions
Tonnes CO2e 2016 2015 2014
Direct (Scope 1) 43,002 43,302 44,005
Finland 36,478 34,977 38,017
logistics (Kesko Logistics) 35,079 34,117 36,915
self-produced heat (natural gas and oil) 1,399 860 1,102
Other operating countries 6,524 8,325 5,988
logistics (Belarus and Estonia) 344 1,115 -
self-produced heat (natural gas, oil, peat and timber1) 6,180 7,210 5,988
Indirect (Scope 2) 81,963 144,266 157,691
Finland 56,533 121,115 135,891
purchased electricity (market-based) 0 73,734 81,495
purchased electricity (location-based)2 95,866 153,087 165,946
purchased district heat (location-based) 56,533 47,381 54,396
Other operating countries 25,430 23,151 21,800
purchased electricity (location-based) 20,218 18,475 17,362
purchased district heat (location-based) 5,212 4,6763 4,438
Total 124,965 187,568 201,696
Finland, Scope 1 and 2 total 93,011 156,092 173,908
Other operating countries, Scope 1 and 2 total 31,954 31,476 27,788
1 The biogenous CO2 emission figure of the timber used for heating one facility in Belarus is reported in Scope 1, because its proportion of the total fuel quantity is insignificant (about 2%).
2 Following the GHG Protocol standard, the location-based emission figure for electricity consumption in Finland has been reported. The market-based figure is used for the emissions totals. Location-based emissions are calculated with national emission factors and market-based emissions with energy supplier emission factors.
3 Figure has been adjusted for improved accuracy since the previous report
Scope 1

In 2016 the Scope 1 emissions of Kesko in Finland increased due to the acquisition of Suomen Lähikauppa. The new stores caused an increase in logistics and own production of heat.

Emissions from logistics in the other operating countries were reported for Estonia in 2016. The data for Belarus’ logistics was not available. Most of the logistics in the other operating countries are outsourced and are partially reported in the Scope 3 emissions.

The transportation of goods for Kesko's grocery trade in Finland is managed by Kesko Logistics and includes its own transportation and that under its direct control. Kesko Logistics’ emissions were calculated based on data including kilometres driven, volumetric efficiencies, and the transportation fleet using the Lipasto calculation system developed by the VTT Technical Research Centre of Finland. The emissions for logistics operations in Estonia were calculated based on fuel consumption.

Scope 2

In 2016, the emissions from purchased energy in Finland decreased by 53% because of a change in the reporting boundary. Starting from 2016, the emissions caused by electricity purchased by Kesko are reported in Scope 2. The emissions caused by electricity purchased by retailer entrepreneurs are reported in Scope 3 category 14, franchising (retailer entrepreneurs).

Kesko’s electricity was supplied by Helsingin Energia from the beginning of 2016 and by Fortum starting from 1 September 2016. The supplied electricity was carbon-free.

The emissions from purchased energy for the other operating countries increased by 10%, which was affected by the acquisition of Onninen.

The calculation principles and more detailed calculations for Scope 1 and 2 emissions attributed to properties managed by Kesko can be found in the Environmental profile reports for Finland and the other operating countries.

 

305-3 Other indirect (Scope 3) GHG emissions

Scope 3 GHG emissions
Tonnes CO2e 2016 2015 2014
Upstream
Purchased goods and services 6,910,000 5,936,000 5,922,000
Capital goods (buildings) 35,200 18,200 9,900
Indirect emissions of purchased energy (other than Scope 1 and Scope 2) 49,400 69,300 76,100
Transport and distribution of goods 18,400 18,300 18,600
Waste 11,400 9,000 10,100
Business travel 3,000 2,700 2,800
Employee commuting 21,000 6,700 7,800
Downstream
Customer commuting (shopping trips) 157,400 154,400 166,100
Use of sold products 1,685,800 852,900 1,093,900
End-of-life treatment of sold products 36,500 16,300 28,000
Franchises (retailer entrepreneurs) 114,700 22,800 27,800

The greatest other indirect emissions of Kesko are caused in the supply chain of the products for sale (76%), in the use phase of the products (19%) and by the shopping commutes of customers (2%).

The Scope 3 calculation principles can be found in the Kesko Scope 3 Report.

305-4 GHG emissions intensity

The Scope 1 and 2 greenhouse gas emissions intensity is calculated based on net sales (€10,180 million in 2016), the average number of employees (22,476 in 2016) and the area of properties managed by Kesko (4,381,000 m2 in 2016).

Scope 1 and 2 GHG emissions intensity
2016 2015 2014
Based on net sales (tonnes CO2e / € million) 12.3 21.6 22.2
Based on average number of employees (tonnes CO2e / person) 5.6 9.9 10.1
Based on area of properties managed by Kesko (tonnes CO2e / 1,000 m2) 28.5 - -
The Scope 2 reporting boundary for 2016 has changed

305-5 Reduction of GHG emissions

Science Based Targets

Kesko has committed to set emission targets in line with two degree climate warming and approved by the Science Based Targets initiative. The work to calculate the targets began in December 2016.

Energy efficiency of properties

Kesko has signed the trading sector energy efficiency agreement and committed to actions to improve its annual energy consumption by 65 GWh during the period 2008-2016. Motiva will publish the results of the agreement period in June 2017.

By increasing solar power Kesko decreases the emissions caused by property. Read more in the Energy section.

Logistics

The target of Kesko Logistics is to reduce CO2 emissions relative to the net sales index by 10% during 2012–2020 from the base year of 2011. By the end of 2016, the relative emissions had decreased by 1.9% from the base level. In 2016, the emissions increased by 3.8% in comparison to 2015. The increase in the number of stores resulting from the acquisition of Suomen Lähikauppa affected the increase in emissions. Kesko’s own-brand Pirkka products were delivered to the new stores and conversion of the stores to K-Markets required the delivery of refill loads as separate deliveries.

Kesko Logistics works ambitiously to reduce emissions:

  • Efficiency of logistics: centralised distribution, optimisation of delivery routes and high volumetric efficiency
  • Efficient reverse logistics: collection of purchase loads, carrier trays, pallets, roll containers and recycled bottles and cans on the return route
  • Economical driving courses: all of Keslog’s more than 500 contract drivers have been trained
  • New replacements in the vehicle fleet: nine two-tier trailers and one extra-long Ecotruck in use in long-distance transportation between main warehouses
Efficient logistics fleet
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Scope 3 emissions reductions
Products for sale

By far, the greatest indirect emissions of Kesko are caused in the supply chain and during the use phase of the products for sale. These emissions can be influenced by offering selections of products and services causing less emissions and by customer communications.

Grocery trade

Customers are becoming increasingly aware of the environmental impacts of their consumption choices. By reducing the amount of animal-based products and household food waste consumers can reduce the environmental impact of their food consumption. The rising popularity of vegetables and plant-based products in Finland was one of the biggest food trends in 2016. Vegetarian display cabinets were introduced in K-food stores in 2016. The 'Vege' cabinets gather plant-based products in one place in order to make choosing environmentally friendly products easier for the customer. By the end of 2016, already 100 K-food stores included a 'Vege' cabinet. Additionally, the K-Ruoka media offers diverse recipes and tips for cooking vegetarian meals.

Read more about the 'Vege' cabinets

Kesko encourages customers to reduce food waste accumulated at home. Kesko and the K-food stores participated in the Food Waste Week organised by the Consumers' Union of Finland in September 2016 by offering information, tips and recipes in customer communications for reducing food waste.

Kesko continued the cooperation started in 2015 with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from K-food stores and the Kesko Logistics central warehouse as energy in the manufacture of new Pirkka products. In 2016, approximately 3,700 tonnes of organic waste was transformed into 2,800 MWh of biogas. CO2 emissions were reduced by 550 tonnes compared to natural gas (calculated with emission factor 198 g CO2/kWh) and by 740 tonnes compared to fuel oil (calculated with emission factor 267 g CO2/kWh).

In 2016, K Group participated in the Kinkkutemppu Campaign, in which customers could donate fat from roasting their Christmas hams to collection points at K-food stores. The fat was used to make renewable diesel. Customers donated 12,000 kg of ham fat, which was used to produce 10,000 liters of renewable diesel.

Read more about 'Kinkkutemppu'

Read more about our work to reduce food waste and advance the circular economy in Effluents and waste.

Building and technical trade

The building and technical trade offers consumers and business customers diverse product selections and expertise for improving the energy efficiency of building and renovation projects. The K-Rauta stores and Onninen offer environmentally friendly solutions for homes and properties from practical energy saving tips to intelligent energy management systems solutions. These include heating, cooling, solar and wind energy solutions.

The sharing economy enables reduction of emissions because less products need to be manufactured when many consumers can use the same product. In 2016, K-Rauta participated in a tool rental service pilot project called Liiteri in the Teurastamo area of Helsinki.

Read more about the Liiteri pilot project

Car trade

In February 2017, the selection of VV-Auto included four plug-in hybrid car models (PHEV) and two electric cars. In addition, the selection included five car models using natural gas or biogas as fuel. In 2016, the registrations of Volkswagen and Audi plug-in hybrids in Finland increased 204% compared to the previous year.

Customer shopping commutes

The emissions caused by customer shopping commutes are a significant source of indirect emissions for Kesko. The majority of shopping commutes are made by car.

Kesko is building an extensive network of electric vehicle charging points adjacent to K Group stores in order to progress the electrification of cars. In March 2017, already 13 K Group stores and 3 Neste K service stations offered electric and hybrid charging points for customer use. Dozens of new charging stations will be built at Neste K service stations along main highways during 2017. The aim is to build charging stations at all Neste K stations and 10-15 charging stations at K-Citymarket parking lots annually during the next few years.

K Group offers Finland’s most comprehensive network of neighbourhood stores with the best services. The stores are tailored to each store’s own customer demand. When the nearby neighbourhood store offers a selection suited for its customers, shopping commutes are shortened and they can be travelled more often by foot, bicycle or public transportation, especially in cities. The extra services available at K-stores reduce emissions caused by customer commuting, because many errands can be run during the same shopping trip. Increasingly, online shopping also reduces customer commuting.

Employee commuting and business travel

In December 2016, a survey on commuting to work was conducted for the Helsinki area office workers by using the Helsinki Region Transport (HSL) commuting calculator. According to the survey, the average emissions per employee were 8.8 kg CO2/working day. The results of the survey will be used as a basis for developing the employee commuting for Kesko's new K-kampus main office building. An employee commuting plan will be made in order to encourage commuting to the K-kampus which is sustainable and improves the wellbeing of employees.

At the end of 2016, Kesko had 690 company cars in use in Finland (607 in 2015). The number of company cars increased due to the acquisition of Suomen Lähikauppa and Onninen, which resulted in an increase in the number of employees.

  • 6 ethanol-fueled cars (12 in 2015)
  • 312 petrol-fueled cars (263 in 2015)
  • 370 diesel-fueled cars (330 in 2015)
  • 2 natural gas cars (2 in 2015)

Kesko's company car policy recommends low-emission car models with an emission level below 150 g CO2/km. In 2016, the average emission level was 122 g CO2/km (127 g CO2/km in 2015) and the emissions from company cars totalled 2,648 CO2 tonnes (2,367 CO2 tonnes in 2015). This calculation also includes private use of company cars.

In 2016, the air miles of Kesko employees travelling for business totalled 8.2 million (8.0 million in 2015). Encouraging the use of virtual meetings is one of the ways Kesko endeavours to decrease the amount of air travel. The amount of virtual meetings held via the Skype for Business application has increased by 43% since the previous year. In 2016, a total of 67,842 hours of Skype meetings were held (47,453 hours in 2015). At the end of 2016, the Kesko Group had 30 Videra video conferencing facilities in use and the total duration of all video meetings between two or more facilities was 1,793 hours (3,812 hours in 2015).

305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

The electricity and heating energy consumed in properties managed by Kesko in Finland in 2016 caused:

  • 133 tonnes of NOx emissions (212 t in 2015)
  • 117 tonnes of SO2 emissions (179 t in 2015)
  • 1.2 tonnes of radioactive waste (1.4 t in 2015)

The changes in comparison to the 2015 figures are due to a change in the reporting boundary. For 2016 the electricity purchased by retailers is not included in Kesko’s electricity consumption. The figures for 2015 have been adjusted for improved accuracy since the last report. The calculation principles and more detailed calculations are available in the Environmental profile report.

Only CO2 emissions data is collected for transportation of goods.

Effluents and waste

Kesko’s objective is to minimise and recover all waste from its operations.

Food waste

The goal of Kesko’s grocery trade is to minimise the food waste resulting from its operations and utilize inevitably accumulated organic waste. Read more about the objective in Kesko’s responsibility programme.

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Circular economy

Kesko promotes the circular economy by taking part in innovative circular economy projects and by providing customers with diversified recycling services.

Energy from biowaste

The cooperation with Gasum, Myllyn Paras and Wursti, started in 2015, continued. Biogas made from food waste unfit for human consumption from K-food stores and Kesko Logistics’ central warehouse is used as energy in the manufacture of new Pirkka products. In 2016, around 3,700 tonnes of biowaste was turned into 2,800 MWh of biogas.

In 2016, the K Group took part in the ’Kinkkutemppu’ campaign in which customers returned fat arising from roasting their Christmas hams to K-stores’ recycling points for conversion into renewable diesel. As much as 10,000 litres of renewable diesel was manufactured from the total of 12,000 kg of fat returned by customers.

Read more about ’Kinkkutemppu’

Recycling services for customers

The recycling services on K-store premises make customers’ daily lives easier and provide an efficient way for households to recycle discarded goods and consumer packages.

In December 2016, there were 396 Rinki eco take-back points intended for recycling consumer packages (fibre, glass, metal) in connection with K-food stores. Plastic was collected at 160 eco take-back points (2015: 38).


In connection with K Group stores, deposit beverage containers returned by customers, batteries and accumulators, WEEE, lead accumulators, impregnated timber and discarded clothing were also accepted.

Packages and items returned by customers to recycling points at K Group stores
   2016 2015 2014
Deposit aluminium cans (million pcs) 378 311 320
  Deposit recyclable plastic bottles (million pcs)  116  94  96
  Deposit recyclable glass bottles (million pcs)  29  26  27
  Batteries and accumulators (tonnes)  289  210  193
  WEEE (tonnes)  92  95¹  170
  Lead-acid accumulators, K-Rauta and Rautia (tonnes)  3,5  1,6  4,3
  Impregnated timber, K-Rauta ja Rautia (tonnes)  814  914  1,003
  Used clothing, UFF recycling points (tonnes)  3,123  2,915  2,507

¹ Figure has been adjusted for improved accuracy since the previous report.

In October 2016, the K Group committed itself to take actions in order to reduce the consumption of plastic bags and published a plastics policy. Since January 2017, Pirkka ESSI circular economy bags have been made from plastic recycled by customers.

Read more about ESSI circular economy bag and Kesko’s plastics policy

Kesko Logistics’ centralised collection services

Cardboard and plastic bales from 236 K-food stores were centrally directed by Kesko's grocery trade for industry reuse in 2016. Around 2,806 tonnes of cardboard and 70 tonnes of plastic were collected.

Kesko Logistics’ reverse logistics transport beverage containers and boxes from stores for reuse and recovery.

Packaging collected by Kesko Logistics reverse logistics for reuse and recovery
   2016 2015 2014
Aluminium cans (1,000 pcs) 82,169 96,479 93,107
  Recyclable plastic bottles (1,000 pcs) 54,648 61,403 54,296
  Recyclable glass bottles(1,000 pcs) 11,292 9,462 9,667
  Reusable crates (1,000 pcs) 17,893 17,294 16,501

 


306-2 Waste by type and disposal method

Waste in all operating countries
Tonnes 2016 2015 2014
Non-hazardous waste 38,051 27,832 30,699
Recycling/recovery 27,444 18,474 19,675
Landfill 10,607 9,358 11,024
Hazardous waste 774 1,261 164
Recycling/recovery 524 171 -
Hazardous waste treatment 250 1,090 -
Total 38,825 29,093 30,863
The figures for 2015 have been adjusted for improved accuracy
Waste recovery rates

Kesko’s waste statistics in Finland mainly cover warehousing operations, while in the other countries, the majority of waste statistics cover store operations. According to statistics, the recovery rate in Kesko’s waste management in Finland was 99% in 2016 and in the other operating countries it was 48%. The recovery rate includes all waste except waste to landfill.

Kesko offers K-retailers in the southern Finland area the opportunity to participate in a centralised waste management agreement. In 2016, 114 K-food stores, 11 building and home improvement stores and 14 other stores participated in the framework agreement. The recovery rate of the waste generated in these stores was 100% (98% in 2015) and the recycling rate was around 66% (67% in 2015).

Based on good experiences and convincing results, it was decided to expand the centralised waste management agreement nationwide. In November 2016, an agreement enabling all K Group stores to make recycling more efficient and to adopt the modern circular economy was signed.

 

Waste: Finland, Sweden and Norway
Finland Sweden Norway
Tonnes 20161 2015 2014 2016 20152 2014 2016 2015 2014
Non-hazardous waste 18,366 10,737 11,890 3,479 2,692 2,788 410 633 1,022
Recycling/recovery 18,204 10,621 11,525 3,220 2,470 2,206 410 593 1,019
Landfill 162 116 365 259 222 582 0 40 3
Hazardous waste 273 1,125 43 81 60 29 215 15 55
Recycling/recovery 183 160 - 3 3 - 200 - -
Hazardous waste treatment 90 965 - 78 57 - 15 15 -
Total 18,639 11,862 11,933 3,560 2,752 2,817 625 648 1,077
Recovery rate % 99 99 97 93 92 79 100 94 99
1 A small part of the data is based on estimation (0.3% of total waste in Finland)
2 The 2015 figures for Sweden have been adjusted for improved accuracy since the previous report
Waste: Estonia, Latvia and Lithuania
Estonia Latvia Lithuania
Tonnes 2016 2015 2014 2016 2015 2014 2016 2015 2014
Non-hazardous waste 733 680 631 640 612 545 3,946 2,605 3,545
Recycling/recovery 689 608 392 163 156 127 2,271 1,699 2,430
Landfill 44 72 239 477 456 418 1,675 906 1,115
Hazardous waste 27 20 14 5 3 3 152 36 18
Recycling/recovery 1 - - - - - 119 8 -
Hazardous waste treatment 26 20 - 5 3 - 33 28 -
Total 760 700 645 645 615 548 4,098 2,641 3,563
Recovery rate % 94 90 63 26 26 24 59 66 69
Waste: Poland, Russia and Belarus
Poland Russia Belarus
Tonnes 2016 2015 2014 2016 2015 2014 2016 2015 2014
Non-hazardous waste 218 - - 8,594 8,303 8,537 1,665 1,570 1,741
Recycling/recovery 51 - - 2,382 2,279 1,918 55 48 58
Landfill 167 - - 6,212 6,024 6,619 1,610 1,522 1,683
Hazardous waste 15 - - 1 1 1 3 1 1
Recycling/recovery 15 - - - - - 2 0.1 -
Hazardous waste treatment - - - 1 0.8 - 0.6 0.9 -
Total 233 - - 8,595 8,304 8,538 1,668 1,571 1,742
Recovery rate % 28 - - 28 27 22 3 3 3