emas sustainablity

Environment and logistics committee Environment and logistics committee

SURVEY ON EMAS CERTIFIED SURVEY ON EMAS CERTIFIED COMMERCIAL SITES AND SUSTAINABILITY COMMERCIAL SITES AND SUSTAINABILITY

TRENDS IN THE RETAIL SECTORTRENDS IN THE RETAIL SECTOR


Commerce in the EUCommerce in the EU

•Interface between industry and the EU 370 million consumers / citizens •13% of EU GDP; 4.7 million entreprises•22.5 million workers from all parts of society


EuroCommerceEuroCommerce

• Representation of the Retail, Wholesale and International Trade sectors to the EU institutions

• Members in 24 Countries from:– National federations (7 from the Accession

countries)– Individual companies– European sectorial trade associations

• A recognised social partner in European Social Dialogue for Commerce


EuroCommerce (cont)EuroCommerce (cont)

• Our mission:• Promote and defend the interests of

Commerce towards the European Institutions

• - Explain as much as Lobby• Raise the visibility of Commerce to reflect

the importance of the sector in the European economy

• Inform members of EU developments


Scope of the surveY Scope of the surveY

• The questionnaire has been sent to 60 registered EMAS wholesalers/retailers companies

• We received 23 answers back.• Main countries represented: Germany but

also Sweden, Denmark, Austria and Spain • 14 Large retailers: none are EMAS certified,

5 are ISO 14001 certified (Auchan, Marks & Spencer, SOK corporation, Sainsbury PLC, C&A and Kesko)


What fields of activity are represented?What fields of activity are represented?sector ofactivity

number ofcompanies

Wholesale 23Wholesale trade and commission trade, except of motorvehicles and motorcycles

1

Wholesale of wood, construction materials and sanitaryequipment

1

Wholesale of non-agricultural intermediate products, waste andscrap

3

Wholesale of agricultural raw materials and live animals 3Wholesale of food, beverages and tobacco 2Wholesale of other machinery for use in industry, trade andnavigation

1

Wholesale of other intermediate products 1Other wholesale 4Wholesale of other household goods 1Wholesale of household goods 3Wholesale on a fee or contract basis 2Agents involved in the sale of fuels, ores, metals and industrialchemicals

1

Retail 4Other retail sale of new goods in specialized stores 2Retail sale of books, newspapers and stationery 1Other retail sale in specialized stores 1


R e a s o n s f o r im p le m e n t in g E M A S

cu s tom

e r o ri e

n ted

b u s ine ss o

ri en te

d

ma n a g em

e n t sys te

m

e n v ir onm

e n t ori e

n ted

su bs id

i es

d o n 't k n ow


Why did you not choose ISO 14001?Why did you not choose ISO 14001?

77%

14%

9%they have both

It was tooexpensive to haveboth

Emas wasconsidered better


What is the cost to receive EMAS What is the cost to receive EMAS certification?certification?

Size of the enterprise average price (in €)Small enterprises (1 to 49) 7829Medium Enterprises (50 to 249) 9833Large Enterprises (250 andmore)

43000


Main benefits of the EMAS certification

cost/benefit

competitivity

benefits

financial benefits

number of customers

corporate image

yes

no


1 to 9

10 to 49

50 to 249

250 and more

Does EMAS require full-time staff

yes

no


CONCLUSION CONCLUSION

•Environmental issues are a widespread concern among customers and entrepreneurs

•Many SMEs implemented the EMAS management system, and not only large companies

•EMAS registration is mostly considered as a beneficial policy to implement

•Large distributors are really expecting their suppliers to implement the EMAS management system, despite they don’t necessarily implement it themselves


Sustainability and the retail sectorSustainability and the retail sector

• Since the early nineties, large retailers have been reporting on their environmental issues. Then, they included the social dimension to the environmental report.

• Now, the trend is that large retailers publish sustainability reports with indicators generally elaborated by themselves. (comparability between two retailers reports)

• In 2002 two retailers issued a sustainability report based on some of the GRI Guidelines (Carrefour, Kesko) . We will study those two as being representative of the sector. This does not discard the other reports which are also relevant.


Carrefour Reporting SystemCarrefour Reporting System

• Improving the reporting system by identifying relevant performance indicators:

• The group reviewed:Ethical rating agency questionnaireThe new French Economic Regulation making environmental and societal reporting compulsory for listed companiesThe GRI guidelinesThe goals set out in the first Sustainability ReportThe indicators used by other companies in the retail sector to facilitate comparison of the Carrefour performance with that of their competitors


Carrefour Reporting System (cont.)Carrefour Reporting System (cont.)• in 2002, 21 countries participated in the Group

reporting• Identification of Key performance indicators (KPIs)

1. Consolidated sales excluding VAT and net income from recurring operations after goodwill2. Number of countries completing the Group sustainable development reporting3. Number of purchase offices that use the Group’s Quality Scoreboard4. Number of stores audited on the Group’s hygiene and quality standards.5. Energy consumption/sales area6. Water consumption/sale area7. Water treatment (% recycled)


Carrefour Reporting System (contCarrefour Reporting System (cont))

• 8. Share of women in management positions9. Number of supplier facilities audited on social issues10. Number of days of training per employee, per year11. Number of Carrefour Quality Line products12. Number of organic or ecological products

• The Carrefour report is based on some of the performance indicators of the GRI (see copy)


Carrefour awards for its 2002 Sustainable Carrefour awards for its 2002 Sustainable ReportReport

• Carrefour was listed on the Dow Jones Sustainability Index for the first time

• Carrefour has qualified for the first time to “Storebrand Principle Funds” portfolio of ethical companies by Storebrand, Scandinavia’s leading ethical funds manager


Carrefour policy with suppliersCarrefour policy with suppliers• 15 countries includes a code of ethics in the

employment contract of purchasers• Carrefour promote partnership with SMEs entering,

among other things, into long terms commitments: In France “the commitment contract” strengthens the business co-operation with 255 SMEs through mutual commitments

• Carrefour works in close partnership with their supplier for their own brand products. They set up a product safety programme for its controlled products

• Carrefour encourages their suppliers to put in place an Environmental Management System (EMS) even providing some financial aid for that.


Carrefour packaging design policyCarrefour packaging design policy• The Group compiled a guide to packaging

conception, to disseminate best practices throughout the Group. It defines the essential features of packaging including environmental criteria.

• In 2002, Carrefour France saved 484 tonnes of raw material (a total of 4 500 tonnes since 1996)

• It launched two projects to existing material reduction initiatives: a GMO free vegetal ink for use in paper and cardboard packaging and a new ecological limestone-based material to wrap own brand butter


Carrefour labellingCarrefour labelling

• Carrefour buys FSC certified roble• Silver Sea private label for the purchase of

fish• Filière qualité de carrefour


Carrefour Social CommitmentsCarrefour Social Commitments• Carrefour developed a Social Commitment Charter

whereby it enforces basic workers’ right as laid down by the ILO, I.e., eradication of slave labour, a ban on employing children under the age of 14, etc

• Carrefour created the INFANS association in partnership with the International Federation of Human Rights whose role is to monitor social risks, carry out spot checks and identify local NGOs able to oversee the roll-out of Carrefour’s initiative out in the field


ConclusionsConclusions• Economic pillar goals:

1. Make quality products available to the greatest number of people2. Guarantee balanced trade3. Pay grower a fair price4. Develop long-term relations with local partners5. Promote international trade

• Societal pillar goals:1. Uphold human rights, especially those of children2. Help maintain local jobs3. Ensure consumer health and safety4. Promote the sharing of know-how


Conclusions (cont)Conclusions (cont)• Environmental pillar:• 1.Preserve the environment by limiting the

negative impact of Carrefour’s Quality Lines• 2. Preserve bio-diversity• 3. Conserve natural resources• 4. Manage waste


KeskoKesko• Kesko is Finland’s leading trading sector

marketing and logistics company• Kesko fully owns its subsidiaries: Kesko

Agro, Kesko Food (55% of Kesko net sales), Rautakesko and Keswell are responsible for store sites, purchasing, logistics, marketing and chain co-operation with the respective K-retailers.


Kesko Reporting SystemKesko Reporting System• The Kesko report follows closely the GRI guidelines

but not 100%• GRI Environmental indicators not used in the Kesko

report:1.Specifications of supplier practices2. Information on land-ownership and its impacts3. Fuel consumption statistics4. Indicator typical of industrial activities5. Detailed environmental analysis of water use

• GRI economic indicators not used in the Kesko report:1. The value of research and development2. Wages and benefits have not been given by country3. An economic supplier analysis is missing


Kesko Reporting System( cont)Kesko Reporting System( cont)• GRI social indicator not used by the Kesko report

The social kesko reporting differs most from the guidelines1. No information on special programmes for minorities, nor on the ratio of lowest wage to national legal minimum or cost of living2. The questions relating to child and forced labour, freedom of association are discussed under the standard SA 8000 with the suppliers and not in relation with Kesko personnel


Kesko awards in 2001Kesko awards in 2001• In 2001, Kesko was awarded as being the best

overall reporter of responsibility by the Finnish Forum of environmental experts who compared environmental and corporate responsibility reports.

• The Helsinki Metropolitan Area Council Waste Management awarded the “2001 Natural Resource Saver prize to Kesko Food”.

• Kesko Eco-efficient construction model was given an honorary mention in the “Environmental Deed of the year” category, because they combine ecologically and financially business operations.


Kesko labelling and EMSKesko labelling and EMS• The logistics of Kesko Food LTD and Kesped Ltd,

became the first companies in the Finnish trading sector to obtain ISO 14001 certification in January 2001

• In 2002, Kesko food had 445 organic products and 215 products with environmental labelling (Nordic Swan and EU flower for example)

• FSC label for garden furniture


Kesko Environmental Store DiplomaKesko Environmental Store Diploma• In spring 2003, the diploma was granted to 33K-food

stores.• Conditions to get the diploma:

the hypermarket director, the employees responsible for environmental affairs and the whole personnel are trained, and that a comprehensive environmental audit is passed.In the audit, made by a third party, assessment is made as to whether the store fulfils the detailed requirements set for awarding the diploma.

• The K-environmental store diploma gained international recognition as the UNEP and ICC selected it among the 10 best sustainable developments partnership out of over 120 candidates.

Environment and logistics committee Environment and logistics committee Kesko Social Commitment Kesko Social Commitment

• training and questionnaire on staff satisfaction• Social quality control of suppliers:

Application of the social accountability SA 8000 (about 100 kesko suppliers participated on the SA 8000 training in 1999-2001)

• Internal handbook on social quality control of suppliers.

• To promote certification, Kesko has made an international co-operation agreement with bureau Veritas Quality International.

emas sustainablity

Documents

carrefour performance

carrefour policy

carrefour france

time carrefour

carrefour awards

sustainable report carrefour

controlled products

gri guidelines carrefour