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RESPONSIBILITY WORK FOCUSES ON MATERIALITY

Identified material aspects of corporate responsibility.

The frame of reference for Kesko’s vision for corporate responsibility and materiality assessment is Kesko’s responsibility programme, megatrends in responsibility, aspects of significance for stakeholders and Kesko’s strategic objectives.

Corporate responsibility vision

Kesko’s vision for corporate responsibility is: in all areas of responsibility, we are the trading sector pioneer on a global scale. The corporate responsibility vision is also described by key stakeholder groups.

Responsibility programme

The responsibility programme applies to all of Kesko’s divisions and contains short-term and long-term objectives. Each division has prepared its own, division-specific objectives for the sections. The commitments of the programme form its framework, and the individual objectives can be specified annually.

Materiality assessment

The purpose of the materiality assessment of Kesko’s responsibility is to identify the key responsibility aspects for Kesko and its stakeholders. The materiality assessment guides Kesko’s corporate responsibility and stakeholder work and defines activities for meeting stakeholder expectations.

Kesko’s material corporate responsibility aspects are presented in the matrix below, where the vertical axis shows the level of concern for stakeholders and the horizontal axis the current or potential impact on Kesko. The level of concern for stakeholders has been assessed as a whole, which is why the weightings of the various areas by individual stakeholders are not reflected in the matrix.

The materiality assessment was last updated in 2012. In 2013, the material aspects for reporting were defined according to the requirements of the new GRI G4 reporting guidelines. The aspects identified were already included in Kesko’s current materiality assessment, and no need was seen to update the materiality matrix.

 

 

Materiality matrix

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Identified material aspects of corporate responsibility

The Group's boundaries

The Group’s boundaries include the parent company, Kesko Corporation, its subsidiaries and the subsidiaries owned by other Group companies, which are defined in the notes to the financial statements

The reporting covers all of Kesko's operations:

  • Most economic responsibility indicators are derived from the consolidated financial statements, the preparation and representation of which are governed by IFRS standards.
  • The key environmental indicators, such as energy consumption, water consumption, waste and direct greenhouse gas emission from operations, cover the most significant environmental impacts of the parent company, Kesko Corporation, and its subsidiaries in all countries in which they operate, excluding Intersport stores in Russia.
  • The HR indicators cover the personnel of the parent company, Kesko Corporation, and its subsidiaries in all operating countries.

Around three quarters of Kesko’s employees work in retail stores. The report does not cover the personnel employed by retailer entrepreneurs, unless separately stated in the text. Indicator reporting does not cover contractors or suppliers of goods and services, unless stated otherwise.

Kesko’s division parent companies and chains act in close cooperation with retailer entrepreneurs and other partners. The report presents information on K-stores (e.g. energy monitoring) when it is materially related to Kesko’s reporting and complements the overall picture of the relations of Kesko and K-retailers with society and other stakeholders.

Any deviations and limitations in the boundary are reported in connection with the indicators in question. If changes have taken place in the indicators, their scope, boundary or measurement methods reported previously, related information is given in connection with the respective indicators.

Defining report content

In 2013, the material aspects for reporting were defined according to the new requirements in the GRI G4 reporting guidelines. Responsibility aspects that had been identified earlier, were discovered in Kesko’s operations during the reporting year or were brought up by stakeholders were assessed critically in terms of impact in the value chain and interest by the central stakeholders. In order to identify material aspects, a set of decision criteria was drawn up for use in assessing the materiality of aspects with respect to the entire value chain. A boundary was also defined for each aspect to reflect the material impact of the aspect on Kesko’s value chain.

As a result of the analysis, 33 aspects were identified that are material with respect to impact. They are discussed in this report. The related impacts by aspect are described in the management approach. The aspects and related boundaries are listed in the table below. The material aspects were discussed by Kesko’s Corporate Responsibility Advisory Board, Group Management Board and Board of Directors.

Material aspects and boundary

GRI aspect (G4–19)Aspect boundary (G4–20–21)
ECONOMIC IMPACTS   
Economic performance Kesko Group
Indirect economic impacts Kesko Group and K-stores
Procurement practices Kesko Group and K-stores
ENVIRONMENTAL IMPACTS   
Energy Kesko Group and K-stores
Water Kesko Group and K-stores
Biodiversity Kesko Group and suppliers
Emissions Kesko Group (Scopes 1 and 2), K-stores (Scope 2) and supply chain (Scope 3)
Effluents and waste Kesko Group
Products and services Suppliers
Environmental assessment of suppliers Suppliers. This aspect has been identified as material and reporting is under development.
SOCIAL IMPACTS   
Personnel and working conditions      
Employment Kesko Group
Labour/management relations Kesko Group
Occupational health and safety Kesko Group
Training Kesko Group
Diversity and equal opportunity Kesko Group
Equal remuneration Kesko Group
Supplier assessment for labour practices Suppliers in high-risk countries
Labour practices grievance mechanisms Kesko Group, suppliers in high-risk countries. This aspect has been indentified as material and reporting is under development.

Human rights

Non-discrimination Kesko Group
Freedom of association and rights of collective bargaining Kesko Group
Human rights assessments Kesko Group
Human rights assessments of suppliers Kesko Group
Grievance mechanisms for issues in human rights Kesko Group, suppliers in high-risk countries. This aspect has been identified as material and reporting is under development.
Society     
Anti-corruption Kesko Group
Public policy Kesko Group
Anti-competitive behaviour Kesko Group
Compliance Kesko Group
Grievance mechanisms for impacts on society Kesko Group. This aspect has been identified as material and reporting is under development.
Product responsibility   
Customer health and safety Kesko Group – Own brand products and own imports
Product and service labelling  Kesko Group – Own brand products and own imports 
Marketing communications  Kesko Group 
Customer privacy  Kesko Group, K-Plus Oy 
Compliance  Kesko Group