Mitigation of climate change
|Management approach||We take part in mitigating climate change and promote the sustainable use of natural resources|
|Energy consumption||The energy consumption of properties accounts for the major share of the greenhouse gas emissions caused by the K-Group. Constant improvement of the energy efficiency of properties is a main focus area in Kesko's environmental work.|
|Water||Properties managed by Kesko use municipal water mainly for various cleaning purposes.
The most significant impacts on water are related to the supply chains of products to be sold. In 2015, Kesko started a water risk assessment of the supply chains of its private label products.
|Biodiversity||Kesko only builds retail stores in areas zoned for business properties, so building does not have significant direct biodiversity impacts.
Kesko's largest impacts are indirect and occur in the supply chain of the products sold and in the production of raw materials. Kesko manages these impacts with sourcing policies, materials efficiency and by promoting the circular economy.
Kesko's operations generate greenhouse gas emissions mainly from the energy consumption of properties and from logistics. Energy-efficient solutions in properties and the acquisition of low-carbon electricity reduce retail stores' emissions.
|Waste management||Materials efficiency, recycling of materials and minimising food waste are the key means by which Kesko reduces the amount of waste, promotes the circular economy and achieves the zero landfill waste level.|
|Environmental assessments of suppliers||The assessment procedures of Kesko's suppliers include environmental criteria.|
|Objectives||The objectives have been recorded in the responsibility programme.|
Policies, working principles and commitments
|Environmental and energy policy||The K-Group's environmental and energy policy covers the operations of Kesko Group and the K-Group 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, programmes, projects and initiatives
|Environmental work steering||Kesko Group's Corporate Responsibility Advisory Board defines the main policies for environmental work and the target levels for the Group companies, taking account of the environmental impacts of operations and their significance throughout the whole life cycle 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 strategy work.|
At the end of 2015, environmental systems covered 67% of the Kesko companies' net sales in Finland and 55% of the whole Group's net sales. The coverage has been calculated in proportion to retail sales.
No certified environmental systems were yet in use in operations in other countries.
|Energy consumption monitoring||Kesko's maintenance partners monitor the energy consumption of properties with the help of the EnerKey.com system supplied by Enegia Oy. Enegia reads remotely energy consumption measurement terminals located in properties and records the data in the database by the hour. Also the consumption figures for properties where the data are collected manually are 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.|
|Energy efficiency agreement||Kesko has signed the trading sector energy efficiency agreement.
In terms of specific energy consumption, the types of properties with the highest energy consumption are K-citymarkets and K-supermarkets, and large wholesale and warehouse buildings.
Kesko conducts energy reviews in the properties managed by it on a regular basis.
|Water consumption monitoring||Water consumption monitoring is part of real estate consumption monitoring. Kesko's goal is to maintain a high level of water consumption efficiency in all operations.|
In line with Kesko's building and home improvement trade's sourcing statement, the products made of tropical wood must be either FSC or PEFC certified.
Kesko is a founding member in 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 is responsibly produced, either RTRS or ProTerra certified soy. The commitment covers both the Finnish production chain and sourcing from other countries.
Kesko develops recycling systems in cooperation with other operators and promotes waste recycling by developing packaging methods and the use of materials. The generation of waste is prevented by using reusable transport units and by minimising the wastage of products on sale.
Kesko's target is to recover all waste from operations and to achieve the zero waste to landfill level.
|Building contracting and maintenance||Kesko's building contracting is based on target conditions and key technical quality factors determined for each business concept and the planning and execution instructions in respect of building services and construction engineering based on them. Kesko measures the efficiency and quality of planning and execution by providing its individual properties with international environmental certificates, such as BREEAM and LEED. In 2015, Kesko's partners in the maintenance and service of properties were Caverion Oy, Ovenia Oy and L&T plc. The environmental systems of Caverion Oy and L&T plc are ISO 14001 certified.|
|Business Environmental Performance Initiative BEPI||Kesko has joined the Foreign Trade Association's (FTA) Business Environmental Performance Initiative (BEPI). BEPI is aimed at helping member companies in the management of global supply chains and, consequently, increasing the transparency and risk management of their product supply chains.|
|Responsibilities and resources||
|Management approach assessment||The management approach is assessed continuously as part of the operations. Changes in the operating environment and in Kesko are responded to by adjusting objectives, operating principles, monitoring systems and resources. Audits and reviews of the environmental systems.|
Environmental systems at Kesko
|Function||Environmental management system||Comment|
|Keslog's warehousing, terminal and transportation operations||ISO 14001||Certificate revised in 2015.|
|Rautakesko Ltd's logistics centre||ISO 14001||Certificate revised in 2015.|
|Real estate service and maintenance operations||ISO 14001, ISO 9001||ISO 14001, ISO 9001: Caverion, L&T
ISO 9001: Ovenia
|VV-Auto Group Oy||ISO 9001 and AKL's environmental programme||
ISO 9001 certificate: VV-Auto Group Oy.
|K-food stores: 776 K-responsibility stores||K-responsibility concept||Chain requirement for K-citymarket, K-supermarket and K-market stores|
|K-rauta stores: 41 K-responsibility stores||K-responsibility concept||Total number of stores: 45|
|Rautia stores: 88 K-responsibility stores (including 4 K-maatalous combination stores)||K-responsibility concept||Total number of stores: 93|
|K-maatalous stores: 24 K-responsibility stores||K-responsibility concept||Total number of stores: 35|