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Environment and logistics committee SURVEY ON EMAS CERTIFIED COMMERCIAL SITES AND SUSTAINABILITY TRENDS IN THE RETAIL SECTOR.

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Presentation on theme: "Environment and logistics committee SURVEY ON EMAS CERTIFIED COMMERCIAL SITES AND SUSTAINABILITY TRENDS IN THE RETAIL SECTOR."— Presentation transcript:

1 Environment and logistics committee SURVEY ON EMAS CERTIFIED COMMERCIAL SITES AND SUSTAINABILITY TRENDS IN THE RETAIL SECTOR

2 Environment and logistics committee Commerce in the EU Interface between industry and the EU 370 million consumers / citizens 13% of EU GDP; 4.7 million entreprises 22.5 million workers from all parts of society

3 Environment and logistics committee EuroCommerce Representation of the Retail, Wholesale and International Trade sectors to the EU institutions Members in 24 Countries from: –National federations (7 from the Accession countries) –Individual companies –European sectorial trade associations A recognised social partner in European Social Dialogue for Commerce

4 Environment and logistics committee EuroCommerce (cont) Our mission: Promote and defend the interests of Commerce towards the European Institutions - Explain as much as Lobby Raise the visibility of Commerce to reflect the importance of the sector in the European economy Inform members of EU developments

5 Environment and logistics committee Scope of the surveY The questionnaire has been sent to 60 registered EMAS wholesalers/retailers companies We received 23 answers back. Main countries represented: Germany but also Sweden, Denmark, Austria and Spain 14 Large retailers: none are EMAS certified, 5 are ISO 14001 certified (Auchan, Marks & Spencer, SOK corporation, Sainsbury PLC, C&A and Kesko)

6 Environment and logistics committee What fields of activity are represented?

7 Environment and logistics committee

8 Why did you not choose ISO 14001?

9 Environment and logistics committee What is the cost to receive EMAS certification?

10 Environment and logistics committee

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12 CONCLUSION Environmental issues are a widespread concern among customers and entrepreneurs Many SMEs implemented the EMAS management system, and not only large companies EMAS registration is mostly considered as a beneficial policy to implement Large distributors are really expecting their suppliers to implement the EMAS management system, despite they dont necessarily implement it themselves

13 Environment and logistics committee Sustainability and the retail sector Since the early nineties, large retailers have been reporting on their environmental issues. Then, they included the social dimension to the environmental report. Now, the trend is that large retailers publish sustainability reports with indicators generally elaborated by themselves. (comparability between two retailers reports) In 2002 two retailers issued a sustainability report based on some of the GRI Guidelines (Carrefour, Kesko). We will study those two as being representative of the sector. This does not discard the other reports which are also relevant.

14 Environment and logistics committee Carrefour Reporting System Improving the reporting system by identifying relevant performance indicators: The group reviewed: Ethical rating agency questionnaire The new French Economic Regulation making environmental and societal reporting compulsory for listed companies The GRI guidelines The goals set out in the first Sustainability Report The indicators used by other companies in the retail sector to facilitate comparison of the Carrefour performance with that of their competitors

15 Environment and logistics committee Carrefour Reporting System (cont.) in 2002, 21 countries participated in the Group reporting Identification of Key performance indicators (KPIs) 1. Consolidated sales excluding VAT and net income from recurring operations after goodwill 2. Number of countries completing the Group sustainable development reporting 3. Number of purchase offices that use the Groups Quality Scoreboard 4. Number of stores audited on the Groups hygiene and quality standards. 5. Energy consumption/sales area 6. Water consumption/sale area 7. Water treatment (% recycled)

16 Environment and logistics committee Carrefour Reporting System (cont ) 8. Share of women in management positions 9. Number of supplier facilities audited on social issues 10. Number of days of training per employee, per year 11. Number of Carrefour Quality Line products 12. Number of organic or ecological products The Carrefour report is based on some of the performance indicators of the GRI (see copy)

17 Environment and logistics committee Carrefour awards for its 2002 Sustainable Report Carrefour was listed on the Dow Jones Sustainability Index for the first time Carrefour has qualified for the first time to Storebrand Principle Funds portfolio of ethical companies by Storebrand, Scandinavias leading ethical funds manager

18 Environment and logistics committee Carrefour policy with suppliers 15 countries includes a code of ethics in the employment contract of purchasers Carrefour promote partnership with SMEs entering, among other things, into long terms commitments: In France the commitment contract strengthens the business co-operation with 255 SMEs through mutual commitments Carrefour works in close partnership with their supplier for their own brand products. They set up a product safety programme for its controlled products Carrefour encourages their suppliers to put in place an Environmental Management System (EMS) even providing some financial aid for that.

19 Environment and logistics committee Carrefour packaging design policy The Group compiled a guide to packaging conception, to disseminate best practices throughout the Group. It defines the essential features of packaging including environmental criteria. In 2002, Carrefour France saved 484 tonnes of raw material (a total of 4 500 tonnes since 1996) It launched two projects to existing material reduction initiatives: a GMO free vegetal ink for use in paper and cardboard packaging and a new ecological limestone-based material to wrap own brand butter

20 Environment and logistics committee Carrefour labelling Carrefour buys FSC certified roble Silver Sea private label for the purchase of fish Filière qualité de carrefour

21 Environment and logistics committee Carrefour Social Commitments Carrefour developed a Social Commitment Charter whereby it enforces basic workers right as laid down by the ILO, I.e., eradication of slave labour, a ban on employing children under the age of 14, etc Carrefour created the INFANS association in partnership with the International Federation of Human Rights whose role is to monitor social risks, carry out spot checks and identify local NGOs able to oversee the roll-out of Carrefours initiative out in the field

22 Environment and logistics committee Conclusions Economic pillar goals: 1. Make quality products available to the greatest number of people 2. Guarantee balanced trade 3. Pay grower a fair price 4. Develop long-term relations with local partners 5. Promote international trade Societal pillar goals: 1. Uphold human rights, especially those of children 2. Help maintain local jobs 3. Ensure consumer health and safety 4. Promote the sharing of know-how

23 Environment and logistics committee Conclusions (cont) Environmental pillar: 1.Preserve the environment by limiting the negative impact of Carrefours Quality Lines 2. Preserve bio-diversity 3. Conserve natural resources 4. Manage waste

24 Environment and logistics committee Kesko Kesko is Finlands leading trading sector marketing and logistics company Kesko fully owns its subsidiaries: Kesko Agro, Kesko Food (55% of Kesko net sales), Rautakesko and Keswell are responsible for store sites, purchasing, logistics, marketing and chain co-operation with the respective K-retailers.

25 Environment and logistics committee Kesko Reporting System The Kesko report follows closely the GRI guidelines but not 100% GRI Environmental indicators not used in the Kesko report: 1.Specifications of supplier practices 2. Information on land-ownership and its impacts 3. Fuel consumption statistics 4. Indicator typical of industrial activities 5. Detailed environmental analysis of water use GRI economic indicators not used in the Kesko report: 1. The value of research and development 2. Wages and benefits have not been given by country 3. An economic supplier analysis is missing

26 Environment and logistics committee Kesko Reporting System( cont) GRI social indicator not used by the Kesko report The social kesko reporting differs most from the guidelines 1. No information on special programmes for minorities, nor on the ratio of lowest wage to national legal minimum or cost of living 2. The questions relating to child and forced labour, freedom of association are discussed under the standard SA 8000 with the suppliers and not in relation with Kesko personnel

27 Environment and logistics committee Kesko awards in 2001 In 2001, Kesko was awarded as being the best overall reporter of responsibility by the Finnish Forum of environmental experts who compared environmental and corporate responsibility reports. The Helsinki Metropolitan Area Council Waste Management awarded the 2001 Natural Resource Saver prize to Kesko Food. Kesko Eco-efficient construction model was given an honorary mention in the Environmental Deed of the year category, because they combine ecologically and financially business operations.

28 Environment and logistics committee Kesko labelling and EMS The logistics of Kesko Food LTD and Kesped Ltd, became the first companies in the Finnish trading sector to obtain ISO 14001 certification in January 2001 In 2002, Kesko food had 445 organic products and 215 products with environmental labelling (Nordic Swan and EU flower for example) FSC label for garden furniture

29 Environment and logistics committee Kesko Environmental Store Diploma In spring 2003, the diploma was granted to 33K-food stores. Conditions to get the diploma: the hypermarket director, the employees responsible for environmental affairs and the whole personnel are trained, and that a comprehensive environmental audit is passed. In the audit, made by a third party, assessment is made as to whether the store fulfils the detailed requirements set for awarding the diploma. The K-environmental store diploma gained international recognition as the UNEP and ICC selected it among the 10 best sustainable developments partnership out of over 120 candidates.

30 Environment and logistics committee Kesko Social Commitment Kesko Social Commitment training and questionnaire on staff satisfaction Social quality control of suppliers: Application of the social accountability SA 8000 (about 100 kesko suppliers participated on the SA 8000 training in 1999-2001) Internal handbook on social quality control of suppliers. To promote certification, Kesko has made an international co-operation agreement with bureau Veritas Quality International.


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