Indicators: EN3, EN5–EN6
|Energy consumption, properties managed by Kesko|
|District heat (MWh)||254,739||292,453||304,1581|
|Total electricity and district heat (MWh)||950,587||1,046,754||1,068,545|
|Total electricity and heat2 (TJ)||3,436||3,783||3,866|
|Other operating countries||2015||2014||2013|
|Total electricity and heat (MWh)||147,234||142,954||131,343|
|Total electricity and heat (TJ)||530||515||473|
|All operating countries||2015||2014||2013|
|Total electricity and heat (TJ)||3,966||4,298||4,339|
|1 Figure has been adjusted for improved accuracy since the previous report|
|2 Includes energy of fuel used for self-produced heat|
|3 Includes energy of fuel used for self-produced electricity|
Properties managed by Kesko in Finland include offices, warehouses and approximately 850 K-Group stores.
In 2015, the overall electricity consumption decreased by 7.7%. Significant reasons for the decline include changes in the stock of real estate (mainly the divestment of Anttila) and the decrease in specific consumption of 4.2% of the K-citymarket stores.
According to the Finnish Meteorological Institute, the average temperature of 2015 was again higher than the previous year, and the overall consumption of district heating by Kesko's properties fell by 12.9% from the previous year. The changes in specific consumption of the most significant property categories were between -5% and -18%.
In 2015, the heating energy produced with natural gas and oil at properties in Finland totalled 12.3 TJ (3.4 GWh).
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.
The electricity consumption of the K-food stores in Russia has nearly doubled since the previous year due to the growing number of stores in recent years. During 2014–2015, five new K-food stores were opened in Russia to reach a total of nine stores. Excluding the Russian K-food stores, the electricity consumption of Kesko's properties in the other operating countries decreased by around 10%.
The heating energy was partly self-produced with natural gas and oil. In Belarus, a small amount of timber (655 MWh) and peat (90 MWh) were also used for heating. In 2015, the self-produced heat totalled 93 TJ (26 GWh). Oil was used at the new K-food stores in Russia for 26 TJ (7 GWh) of electricity production.
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 (8%) because it is included in the lease or is not available.
The primary energy consumption for purchased energy in all operating countries in 2015:
The fuel consumed in the grocery trade's (Keslog) own transportation or that under its direct control was 487.2 TJ in 2015. The fuel used was diesel.
Fuel consumption was calculated using data on kilometres driven, volumetric efficiencies and the transportation fleet. In 2015, the total distance driven by Keslog was 31.1 million km (33.4 million km in 2014).
The calculation was made according to the Lipasto calculation system of VTT Technical Research Centre of Finland.
Most of Kesko’s subsidiaries have outsourced logistics operations. In 2015, the logistics in Belarus and Estonia consumed 13.5 TJ of fuel (diesel and gasoline).
|Specific consumptions of energy, properties managed by Kesko|
|Specific consumption of electricity||207||205||209|
|Specific consumption of district heat||76||79||83|
|Other operating countries|
|Specific consumption of electricity||99||94||90|
|Specific consumption of heat||42||46||39|
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 specific consumption of electricity of the other operating countries grows as the number of K-food stores in Russia increases.
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 (1,043,000 m2 in 2015).
The K-Group has signed the trading sector energy efficiency agreement and committed to improving its annual energy consumption by 65 GWh by the end of 2016. The agreement is based on the 9% savings target set in the EU Directive on Energy End-Use Efficiency and Energy Services for the period 2008–2016. The agreement covers all of the K-Group’s store chains.
By implementing various energy efficiency measures, Kesko has improved its electricity and heating energy consumption by 64 GWh by the end of 2015 and achieved 97% of the savings commitment of the energy-efficiency agreement. A following trading sector agreement for 2017–2025 is under negotiation. Kesko plans to sign the new agreement during 2016 at the invitation of the Federation of Finnish Commerce.
The energy consumption at store sites consists mainly of:
By February 2016, LED lights are used in the lighting solutions of property development of grocery and home improvement stores. Adjustable, correctly directed LED-lighting can help save up to 50% electricity compared to traditional fluorescent tube and metal halide lighting solutions.
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.
Kesko's 37 Real Estate Managers 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 10 years.
In February 2016, the building automation of 205 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 5.5 GWh of energy in 2015. Remote monitoring enables refrigeration equipment to be adjusted for optimum temperatures and defrosting cycles. In addition, deviations can be responded to immediately.
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.
Information about energy saving efforts by Keslog logistics can be found in the section EN19 Reduction of greenhouse gas (GHG) emissions.
|Water consumption by country|
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 Oil K-markets in Finland are big individual consumers of water.
The consumption of water at properties in Finland decreased around 5% in 2015 mainly due to the decreases in the specific water consumptions of the K-citymarket and K-supermarket chains (-3.3% and -6.4%) and the divestment of the Anttila chain. The increase of water consumption in Russia continued with the opening of five more K-food stores during 2014–2015.
Water consumption statistics by property type and changes in properties in Finland are available in the Energy consumption tracking report.
The water consumption data from other countries is compiled from reporting based on water billing or consumption data by each subsidiary. At some stores located in leased properties, water use is included in the lease and not available for reporting (6% of locations in other operating countries). Additionally, data was not available for 2% of properties.
All properties managed by Kesko use water from municipal water supplies and water sources are not significantly affected by withdrawal of water.
Kesko does not recycle or reuse water. All waste water from operations goes to municipal sewer systems.
Kesko’s greatest impacts on biodiversity occur throughout the lifecycle of the products on sale. Kesko influences these indirect impacts through its supply chain sourcing policies, which include the fish and shellfish statement, the timber policy, the palm oil policy and the soy policy published in February 2016.
Global food production for a growing population is one of the main threats to biodiversity in the world. Food security can be improved through sustainable and efficient agricultural practices and minimising food waste.
Around 80% of the purchases for K-food stores in Finland are from domestic suppliers, which means maintaining a sustainable and viable Finnish agricultural sector and food production industry is of key importance for Kesko. The K-maatalous chain of agricultural stores has its own Experimental Farm in Hauho, Finland, which researches, tests and develops crop species and sustainable farming methods suitable for conditions in Finland, even as the climate changes. Read more about the Experimental Farm.
Minimising food waste along the entire food production chain from agriculture all the way to the end-consumer reduces stress on biodiversity along with the greenhouse gases related to food waste. Climate change in turn reduces biodiversity especially in areas of increasing desertification. Read more about Kesko’s various efforts to reduce greenhouse gas emissions and food waste in the following sections on Effluents and waste and Emissions.
Kesko participates in the Business & Biodiversity Finland programme organised jointly by the Corporate Responsibility Network FIBS and the Ministry of Environment of Finland. In 2015, Kesko participated in the programme's Master Class training course in order to deepen understanding of Kesko’s biodiversity impacts and opportunities.
Kesko builds store sites only in areas planned by municipalities for business properties.
Kesko does not cause any significant direct impacts on biodiversity. Kesko does not own property or operate in areas adjacent to protected areas or areas of high biodiversity value.
Kesko and K-retailers from the Hämeenlinna area are participating in the restoration of the area’s major watershed area Lake Vanajavesi as a main partner of the Vanajavesi Centre during 2014–2017. In the summer of 2015, monitors were installed at four K-food stores in the Hämeenlinna area, which show real time water quality data from five measurement sites in the Lake Vanajavesi watershed area.
Surveys of contaminated land are made annually in connection with construction work and real estate transactions. In 2015, a total of 6,400 tons of contaminated soil was removed from four Kesko sites, which were restored.
The restoration of soil contaminated with oil at a site in Kokkola was executed by permit of the South Ostrobothnia Centre for Economic Development, Transport and the Environment (ELY Centre). The contractor was Ab Tallqvist Infra Oy and Golder Associates acted as the environmental supervisor. Around 54.5 tonnes of contaminated masses were removed from the site. The residual content samples were verified by the Novalab Oy and ALS Laboratory Group laboratories and oil concentrations exceeding the regulatory threshold levels were not found.
The engineering contractor Insinööritoimisto Pohjantekniikka Oy executed a restoration on a property (50,572 m2) in Sastamala. By permit of the Pirkanmaa ELY Centre, a total of 1,923.4 tonnes of contaminated land and 302 tonnes of oily cement were removed from the restoration site. The site was successfully restored excluding soil located under a building on the property, where heavy hydrocarbon fractions exceeding the higher threshold level remain. According to preliminary plans, the building will be demolished in 2017 and the restoration will then be completed.
By permit of the Central Finland ELY Centre and supervision of Ramboll Finland Oy, a restoration was carried out on a property (17,943 m2) in Keuruu. The contractors were Louhinta ja porauspalvelu Korhonen Oy and Maansiirto Hämeenniemi Ky. A total of 3,700 tonnes of land classified as contaminated with gasoline and oil was removed. The residual content samples were verified by the Ramboll Analytics Oy laboratory and they fulfilled the restoration target level.
The restoration of a property (2,507 m2) in Savonlinna was executed by Savonlinnan PR-Urakointi Oy. The job was carried out under the supervision of Ramboll Finland Oy and by permit of the South Savo ELY Centre. A total of 420 tonnes of soil classified as contaminated with oil hydrocarbons was removed. The residual content samples were verified by the SGS Inspection Services Oy laboratories as compliant with threshold levels.
Kesko does not have any protected habitats of its own.
No endangered species are directly affected by Kesko's operations.
Indicators: EN15–EN19, EN21
|Scope 1 and 2 GHG emissions|
|Direct (Scope 1)||43,302||44,005||43,088|
|self-produced heat (natural gas and oil)||860||1,102||943|
|Other operating countries||8,325||5,988||6,563|
|logistics (Belarus and Estonia)||1,115||-||-|
|self-produced heat and electricity (natural gas, oil, peat and timber1)||7,210||5,988||6,563|
|Indirect (Scope 2)||144,436||157,691||147,873|
|purchased electricity (market-based)||73,734||81 4953||73,836|
|purchased electricity (location-based)2||153,087||165,946||168,168|
|purchased district heat (location-based)||47,381||54,3963||56,8783|
|Other operating countries||23,321||21,800||17,160|
|purchased electricity (location-based)||18,475||17,362||14,442|
|purchased district heat (location-based)||4,846||4,438||2,718|
|Finland, Scope 1 and 2 total||156,092||173,908||167,238|
|Other operating countries, Scope 1 and 2 total||31,646||27,788||23,723|
|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|
In 2015, Kesko's Scope 1 emissions in Finland decreased due to reductions in the emissions from logistics and the need for heating. Scope 1 emissions in the other operating countries increased primarily because of the self-produced heat and electricity of the new K-food stores in Russia.
Emissions from logistics in the other operating countries were reported from Belarus and Estonia in 2015. 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 Keslog and includes its own transportation and that under its direct control. Keslog's 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 Belarus and Estonia were calculated based on fuel consumption.
Kesko's emissions from purchased energy in Finland decreased by 11% in 2015 primarily because of changes in the stock of real estate (the divestment of Anttila) and due to the warm winter, which reduced the need for district heating.
The electricity supplied by Kesko, 438 GWh (469 GWh in 2014), covers around 62% of the total consumption by the properties in Finland. In 2015, the electricity supplied by Kesko was largely carbon-free electricity from Helsingin Energia produced by nuclear power. However, a portion of the electricity was produced with biogas by KSS Energia.
Kesko's emissions from purchased energy in the other operating countries increased by 7%, which was mostly affected by the growing number of K-food stores in Russia.
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.
|Scope 3 GHG emissions|
|Purchased goods and services||5,936,000||5,922,000||-|
|Capital goods (buildings)||18,200||9,900||20,200|
|Indirect emissions of purchased energy (other than Scope 1 and Scope 2)||69,300||76,100||54,900|
|Transport and distribution of goods||18,300||18,600||26,300|
|Customer visits (shopping trips)||154,400||166,100||174,000|
|Use of sold products||852,900||1,093,900||-|
|End-of-life treatment of sold products||16,300||28,000||-|
|Franchises (retailer entrepreneurs)||22,800||27,800||-|
|Scope 1 and 2 GHG emissions intensity|
|Based on net sales (tonnes CO2e / € million)||21.6||22.2||20.5|
|Based on average number of employees (tonnes CO2e / person)||9.9||10.1||9.8|
|Figures for 2013 and 2014 have been adjusted since the previous report|
In Finland, the grocery trade logistics operations (Keslog) works ambitiously to reduce emissions:
|Packaging collected by Keslog reverse logistics for recovery and reuse|
|Recyclable glass bottles1||9,462||9,667||12,508|
|¹ Part of the recycling of glass bottles was separated from Keslog reverse logistics in 2014|
|Impregnated timber and lead-acid accumulators recycled by K-Rauta and Rautia, Finland|
|Batteries and accumulators collected at K-Group stores (Recser), Finland|
|Batteries and accumulators||210||193||174|
|Clothing collected through UFF recycling points located at K-store sites|
|Waste in all operating countries|
|Hazardous waste treatment||1,090||-||-|
The waste management statistics in Finland cover mostly warehousing operations, while in the other countries statistics cover mostly store operations. The recovery rate of waste management in Finland increased to 99% in 2015 due to the burning of mixed waste for energy. The recovery rate in the other operating countries was 46% in 2015. The recovery rate includes all waste except waste to landfill.
Kesko offers the southern Finland area the opportunity to participate in a centralised waste management agreement. In 2015, 97 K-food stores, 11 building and home improvement stores and 14 other stores participated in the agreement. The recovery rate of the waste generated in these stores was about 98% (96% in 2014) and the recycling rate was about 67% (67% in 2014).
|Grocery trade||Home improvement and speciality goods trade1||Car trade|
|Hazardous waste treatment||8||-||-||935||-||-||22||-||-|
|1 A small part of the data is based on estimation (2% of the home improvement and speciality goods trade's total waste)|
|Waste, Sweden and Norway|
|Hazardous waste treatment||57||-||-||15||-||-|
|Waste, the Baltics, Russia and Belarus|
|Hazardous waste treatment||20||-||-||3||-||-||28||-||-||0.8||-||-||0.9||-||-|
|1 Data for one location was not available|
In 2015, no significant oil, fuel, waste, chemical, or other spills occurred. Read more about habitats protected or restored.