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
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 | ||||||||
