Kesko’s operations have an impact on the whole of society. Our responsible working principles guide all our operations.
Customers must be able to rely on the fact that the products offered by stores are well-researched, safe and sustainably produced.
Kesko and K-stores want to make customers' lives easier, providing them with services that promote health and wellbeing and guide them on the proper use of products.
Kesko's operations contribute to mitigating climate change and promote the sustainable use of natural resources.
We are committed to responsible working principles. Together, we generate economic value added.
All of our personnel act in compliance with our responsible working principles.
The guidelines are a material part of the induction of new employees and they will be updated in 2016. From the beginning of 2015, all of Kesko's Russian business companies have had their own anti-corruption policies.
We organise regular training on our responsible working principles.
The online training on responsibility, which was published in 2015 and directed to all Kesko employees, describes Our Responsible Working Principles. By the end of 2015, a total of 6,088 employees had completed the training. As part of the ongoing responsibility training, a training event on responsible working principles was organised for the key employees of Kesko’s company in Belarus in 2015. On Keskonet, Kesko's intranet, there is a permanent banner on the front page to remind Kesko employees of the guidelines.
Kesko's target for return on capital employed is 14% and the target for return on equity is 12%.
In 2015, the return on capital employed excl. non-recurring items was 11.7% and the return on equity excl. non-recurring items was 8.2%.
We offer e-commerce services in all divisions. Comprehensive store-specific product information, prices and availability will be provided online by the end of 2016.
All K-rauta and Rautia stores in Finland and all K-rauta stores in Sweden, Estonia and Latvia have click and collect online stores. Food stores’ click and collect services were expanded across Finland. The K-ruoka mobile application, which provides personal benefits, store-specific offers and a smart shopping list, was published in October. The Sotka online store opened in January 2015 and the Asko online store will open in 2016.
We build a better society together
We are an attractive partner and a responsible neighbour.
K-food stores, K-citymarket Oy (home and speciality goods), K-rauta stores and Rautia stores participated in the Blue and White Footprint campaign. Local Food Dates, which bring local producers and K-retailers together, were organised in six locations. In 2015, Kesko launched the ‘Thank the Producer’ operating model to highlight the position of producers and increase the appreciation of Finnish production.
Kesko participated in the Red Nose Day campaign, the Good Christmas Spirit collection and the Salvation Army's Christmas Kettle collection. K-food stores participated in an international vaccine campaign run by UNICEF and Pampers. Customers returning bottles to K-food stores can enter a raffle. The proceeds are donated to the Eväitä Elämälle aid programme by Save the Children. The Finnish Basketball Association and K-food stores cooperated to organise basketball events for over 10,000 children across Finland.
We include our customers and our personnel in our corporate responsibility work.
In 2015, an online course on corporate responsibility intended for all Kesko employees was published in Finnish and English. By the end of 2015, a total of 6,088 employees had completed the training. The Russian-language version will be published in spring 2016. Online courses on responsible purchasing and the responsibility concept have been prepared for Kesko employees and store staff in the grocery, building and home improvement and agricultural trades in Finnish and English. An audit related to the K-responsibility concept was carried out at 44 building and home improvement stores in 2015. Other operating countries prepared their own responsibility objectives to support Kesko’s responsibility programme in 2015. Customer expectations are regularly reviewed by conducting various surveys and studies. In autumn 2015, as part of Kesko’s human rights assessment, we listened to our stakeholders’ views on matters such as how they feel about human rights in customer situations. Kesko and its chains engage in an active dialogue with customers on social media.
We help customers in efficient shopping; online stores, SmartPost, in-store collection.
Digital services are developed in all of the divisions. All K-rauta and Rautia stores in Finland and all K-rauta stores in Sweden, Estonia and Latvia run a click and collect online store. Click and collect services by food stores were expanded across Finland. In October, we launched the K-food mobile application, which provides personal benefits, store-specific offers, and a smart shopping list. The Sotka online store opened in January 2015 and the Asko online store will open in 2016. Starbucks, Posti and DHL expanded their services to K-food stores in 2015. DHL Express and the K-Group started cooperation with the purpose of setting up 250−300 DHL service points at the K-Group’s food stores and building and home improvement stores across Finland. A total of 137 K-stores have automated SmartPost terminals.
We expand the contract seed production programme trainings; the objective is to train 100% of contract farmers within three years.
By the end of 2015, 90% of the seed contract farmers had been trained.
We develop the organic farming programme into a concept.
The K-maatalous Experimental Farm cooperates with Nylands Svenska Lantbrukssällskapet in the area of organic varieties. Guidance material has been produced for organic farming, containing information about the chain’s offer and varieties available.
We perform and offer high-quality work
We are the best employer in the trading sector in terms of job satisfaction.
In 2015, the K-Group launched the K-job programme, the purpose of which was to provide those aged under 30 with channels to get a job and grow to become a trading sector professional in Kesko and K-stores. In 2015, we focused on guiding young people in ‘Learn and Earn’ summer jobs, in short-term work orientation, and summer employees. We invited young people in their first summer jobs across the K-Group to share their experiences and, based on their wishes and feedback, revised our guidelines for both supervisors and summer employees. In the personnel survey carried out at the beginning of 2016, the employee engagement index was 61%. In the Universum Young Professionals 2015 survey, Kesko's ranking was 31.
We conduct a performance and development review annually with every employee.
In the personnel survey carried out at the beginning of 2016, 80% of respondents said that they have had a performance and development review during the past 12 months. The response rate of the survey was 85%.
We train our supervisors on a regular basis.
In 2015, a wide range of measures were taken to develop supervisors’ competence. The emphasis was on the implementation of the K-Group’s operating principles, challenging situations faced by supervisors and how to use the personnel survey results to develop the team. The first training programme promoting the K-Group’s new management culture, entitled ‘K-Way new supervisors’, was piloted towards the end of the year. Supervisory training for Kesko people was taken a total of nearly 700 times. Online training modules for supervisors were completed about 3,700 times.
We reduce sickness absences and premature retirement due to disability.
Kesko has focused on reducing the number of sickness absences and premature retirements due to disability by means of occupational health service activities, the Let's Talk About Work training for supervisors (more than 1,000 supervisors have been trained during the past five years), work revision, occupational rehabilitation, and the work done by the Work Ability Manager working in the OHS team. The Work Ability Manager’s activities support the employee’s return to work, while considering various options of how to continue at work. Sickness absences have continued to decrease.
We purchase and sell responsibly and support customers in making sustainable choices
We identify the whole of our supply chain and actively promote the social responsibility audits of our suppliers in high-risk countries.
In 2015, 107 full audits and 80 re-audits were conducted in suppliers' factories and farms. In 2015, Kesko's suppliers in high-risk countries had 200 factories or farms within the scope of the BSCI process. An assessment of the origin of the ingredients in own brand groceries was carried out over the course of 2015. In the future, an ingredient survey will be carried out whenever a new product is introduced into the selections. Kesko and Plan International Finland, an organisation promoting children’s rights, continue their cooperation to improve the responsibility of the Thai fish industry and the position of migrant workers. An agreement on cooperation has been made for 2015─2018. Kesko continued the assessment of human rights impacts in 2015. Kesko published the list of the factories in high-risk countries manufacturing the clothing, accessories, shoes and bags for its own brands or for its own imports on its website in spring 2015.
We add indication of origin to our own brand products.
Origins are indicated on our own brand products. In 2014─2015, a major project to change the package labelling of own brand products was carried out in Kesko’s grocery trade based on the EU food information regulation.
We offer a wide selection of Pirkka responsible products; 500 Pirkka products meeting a responsibility criterion and 200 Pirkka organic products by 2015.
In 2015, the Pirkka range included 40 Fairtrade products, 134 Organic products, 41 MSC certified fishes, 17 UTZ certified products.
By 2020, all palm oil in Pirkka products will be responsibly produced (CSPO).
At the end of 2015, about 20% of the palm oil in Kesko's grocery trade’s and Kespro's products was certified sustainable palm oil.
Social responsibility of the production of Kesko’s grocery trade's own direct imports from high-risk countries is 100% assured by 2015.
At the end of 2015, 100% of such imports were assured. The assessment of the origin of the ingredients in own brand groceries was carried out in 2015. In the future, an ingredient survey will be carried out whenever a new product is introduced into the selections.
We offer services which promote customers' wellbeing
Every building and home improvement store has at least one trained Energy Expert or Energy Master and a service cooperation network.
Energy Expert service products are part of the chain selection of K-rauta and Rautia stores. Expertise available at retail stores was reinforced by product training in 2015.
All K-food stores will have adopted the K-responsibility concept by 2014.
All K-food stores have adopted the K-responsibility concept. The K-responsibility concept has also been adopted by K-rauta and Rautia stores, and they are audited according to the K-responsibility store criteria. The concept was adopted by K-maatalous stores in autumn 2015 and the audits will start in autumn 2016.
The theme 'Let's do good. Together.' is visible in stores and marketing.
We train and advise our machinery trade customers in the correct, safe and economical use of machines and devices and in prolonging the service lives of machinery.
Customers in the agricultural machinery trade are trained in the use of the machinery they have bought, such as combine harvesters, precision choppers and large tractors.
We jointly mitigate climate change and promote the sustainable use of natural resources
We increase cooperation with the supply chain in order to promote the sustainable use of natural resources and the development towards a low carbon society.
Kesko participates in the Foreign Trade Association's (FTA) Business Environmental Performance Initiative (BEPI). BEPI helps member companies to manage the environmental issues of global supply chains.
New services provided for customers include charging points for electric and hybrid cars which were built which we started to build on major retail sites in 2015.
We recover the waste generated in our operations to achieve zero landfill waste.
In 2015, the waste recovery rate in the grocery trade was 99%, in the home and speciality goods trade 99.4% and in the car trade 99.9%. The waste recovery rate of retail stores in the sphere of the waste management agreement in Southern Finland was around 98%.
We reduce food wastage by 10% by 2020.
K-food stores reduce food wastage with the help of electronic forecasting and order systems, efficient logistics, employee training, reducing prices of products approaching their best before dates and optimising packaging properties. Many K-food stores also donate food to charity.
In the autumn of 2015, Kesko’s grocery trade, Gasum, Myllyn Paras and Wursti started cooperating to enable biogas produced from inedible organic waste to be collected from retail stores and used as energy in the manufacture of new Pirkka products.
We improve our annual energy efficiency by 65 GWh by 2016.
By the end of 2015, Kesko had improved its energy consumption by 64 GWh and achieved 97% of its objective.
We reduce the relative carbon dioxide emissions from Keslog's transportation by 10% by 2020.
Emissions are reduced by route planning, reverse logistics, two-tier trailers and training in economical driving styles. In March 2015, Keslog started to pilot an extra long Ecotruck on the main logistics route between Vantaa and Oulu.