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Environment

 

We mitigate climate change together and promote the sustainable use of natural resources
  • We reduce the environmental impact by working together with the entire supply chain.
  • We promote development towards a low-carbon circular economy.
  • We help our customers reduce their environmental impact.
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Topic Objective Progress of objectives 2014 Progress of objectives 2015 Progress of objectives 2016

Renewable energy

We will purchase 100% renewable electricity in Finland.

The objective was set in 2016

The objective was set in 2016

All electricity purchased by Kesko in Finland is renewable since the beginning of 2017. We purchase renewable electricity that has the Renewable Energy Guarantee of Origin (REGO) from the Nordic countries. In 2017, electricity purchases will especially focus on Finnish bioenergy.

We will increase the production of solar power for our own use.

The objective was set in 2016

The objective was set in 2016

In June 2016, Finland’s largest property-specific solar power plant was completed on the roof of K-Citymarket Tammisto. By the end of 2016, solar power plants were built in two other K-Citymarket stores and nine K-Supermarket stores. By the summer of 2017, a total of 16 solar power plants will be in operation on the rooftops of K Group stores. The new investments will make the K Group the largest producer and user of solar power in Finland.

Energy efficiency of stores

During the agreement period 2008–2016: We will improve our annual energy efficiency by 65 GWh by 2016.

Kesko improved its energy consumption by 59 GWh and achieved 90% of its objective.

Kesko improved its energy consumption by 64 GWh and achieved 97% of its objective.

The final results of the agreement will be published by Motiva in summer 2017.

During the agreement period 2017–2025: We will reduce our energy consumption by 7.5% by 2025.

The objective was set in 2016

The objective was set in 2016

Kesko signed a retail sector energy efficiency agreement for 2017–2025. In the action plan, we commit to reducing our energy consumption by 7.5%.

Logistics emissions

We will reduce the emissions of Kesko Logistics relative to the net sales index by 10% by 2020 from the 2011 level.

  • We will reduce emissions by the efficient route planning of transport, efficient reverse logistics, two-tier trailers and training in economical driving styles.

We used nine two-tier trailers in long-distance transportation between our main warehouses. They can transport 30 roll containers, more than the regular trailer combination. All of Keslog’s more than 500 contracted drivers have been trained in economical driving.

Relative emissions have decreased by 5.5% from the starting level due to new solutions in transportation management and fleet organisation. A pilot study on using an extra long Ecotruck on the main logistics route between Vantaa and Oulu. The Ecotruck carries twice as many roll containers as an ordinary trailer combination.

The relative emissions had decreased by 1.9% from the base level. In 2016, emissions increased by 3.8% compared to 2015. The increase in emissions can be attributed to the increased number of stores caused by the acquisition of Suomen Lähikauppa. At first, only Kesko’s own brand Pirkka products were delivered to the new stores and as the conversion of the stores to K-Markets advanced,  refill loads were delivered to the stores as separate deliveries.

Science Based Targets

We will set Science Based Targets

We are committed to setting emission targets approved by the Science Based Targets initiative. The calculation began in December 2016.

Food waste

By 2020 we will reduce identified food waste by 10% from the 2013 level.

  • We reduce food waste in K-food stores with the help of electronic forecasting and order systems, efficient logistics, employee training, reducing the prices of products approaching their best before dates and optimising packaging properties.

Many K-food stores also donated food to charity. K-food stores participated in the Food Waste Week organised by the Consumers' Union of Finland in 2014.

We started a cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores as energy in the manufacture of new Pirkka products. Many K-food stores donate food to charity.

By the end of 2016, K-food stores had reduced identified food waste by 3.5% from the base level.

Approximately 90% of K-food stores work together with local charities. The amount of food products donated increased by 1.8 million kg from the previous year.

We continued cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores 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 and by 740 tonnes compared to fuel oil.

Waste recovery

The goal is to minimise the generation of waste in all operations and to recover all waste.

The waste recovery rate of Keslog’s main warehouses and terminals was 98% and that of VV-Auto Group nearly 100%. The recovery rate of the waste generated in stores was 96% and the recycling rate was 67%.

The waste recovery rate in the grocery trade was 99%, in the home improvement and speciality goods trade 99.4%, and in the car trade 99.9%. In other operating countries, the waste recovery rate was 46%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was around 98%.

In Finland, the recovery rate was 99% and in other operating countries, it was 48%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was 100%.

             

Management approach

Material aspects

  • Energy
  • Water
  • Emissions
  • Wastewater and waste
  • Biodiversity
  • Suppliers’ environmental assessments

Policies, principles and commitments

The K Group's environmental and energy policy covers the operations of the Group and the stores both in Finland and the other operating countries. The K Group's key business partners are also expected to observe corresponding environmental management principles.

Environmental management is part of the K Group's management system and is based on the ICC Business Charter for Sustainable Development, environmental management standards, as well as requirements set by legislation and the authorities.

Monitoring and control systems

Kesko Group's Corporate Responsibility Advisory Board defines the main policies for environmental work and the target levels for the Group companies, taking into account the environmental impacts of operations and their significance throughout their whole lifecycle and supply chain. The division parent companies and subsidiaries specify the main policies of their environmental work into environmental action programmes which support their business operations. The action programmes are monitored and updated annually as part of the strategy work.

Environmental systems at Kesko

Kesko's maintenance partners monitor the energy consumption of properties with the help of the EnerKey.com system supplied by Enegia Oy. Enegia remotely reads energy consumption measurement terminals located in properties and records the data in the database by the hour. The consumption figures for properties where the data are collected manually are also saved in the EnerKey system. The EnerKey programme responds to even minor location-specific changes in consumption and sends an alarm to the person in charge. Water consumption monitoring is part of consumption monitoring in the properties.

Kesko's goal is to maintain a high level of water consumption efficiency in all operations.

Division of responsibilities and resources

  • Group's Corporate Responsibility Advisory Board
  • Group's Environmental Steering Group
  • Store Sites and Real Estate Unit
  • Logistics Units

Programmes, projects and initiatives

Kesko participates in the retail sector energy efficiency agreement for 2017–2025.

In accordance with the agreement, Kesko is committed to reducing its energy consumption by 7.5% by means of various savings measures. The agreement covers all of the K Group’s store chains. Kesko has joined the Foreign Trade Association's (FTA) Business Environmental Performance Initiative (BEPI). BEPI aims to help member companies in the management of global supply chains and, consequently, in increasing the transparency and risk management of their product supply chains.

In line with Kesko's building and home improvement sourcing statement, products made of tropical wood must be either FSC or PEFC certified.

The K Group’s fish and shellfish statement directs its sourcing of Kesko's grocery trade and Kespro, as well as K-food retailers' sourcing to safeguard the responsible fishing and management of fish.

Kesko’s grocery trade is a member of the RSPO (Roundtable on Sustainable Palm Oil). The objective is that by 2020, all palm oil in own brand grocery products will be responsibly produced (CSPO).

Kesko is a founding member of the Finnish soy commitment group. Kesko has become a member in the RTRS (Roundtable on Responsible Soy) and made a commitment that by 2020, all of the soy in the production chains of its private label products will be responsibly produced, either RTRS or ProTerra certified soy. The commitment covers both the Finnish production chain and sourcing from other countries.

Grievance mechanisms

Boundaries

Energy and water Kesko
Biodiversity Kesko
Emissions Scope 1 and 2: Kesko; Scope 3: K-stores and supply chain
Waste Finland: Kesko’s warehousing operations; other operating countries: stores
Suppliers’ environmental assessments  Suppliers. This aspect has been identified as essential and reporting is under development.