KESKO CORPORATION PRESS RELEASE 29.04.2008 AT 09.00 1(1)
Kesko's eighth Corporate Responsibility Report 2007, published today, is a widely informative report of Kesko Group's achievements in economic, social and environmental responsibility. For the first time, the report has been prepared on the basis of the G3 framework of the 'Sustainablility Guidelines on Economic, Environmental and Social Performance' drawn up by the Global Reporting Initiative (GRI) and, on the basis of Kesko's self-declaration and the statement by an independent assurance provider, is of level B+. In addition to the GRI requirements, a significant number of case stories illustrating Kesko's practical activities in the area of sustainability have also been included.
As in the past few years, Kesko's strong performance and the record result improved the well-being of its stakeholders. Kesko's purchases from suppliers operating in Finland accounted for €5.2 billion, of which the proportion of products manufactured in Finland accounted for some €4.4 billion. K-retailers' direct purchases from Finnish regions increased by 14% and, for the first time, exceeded the milestone of €0.5 billion (€534 million). Purchases from countries in which Kesko has operations increased by 9.5% and totalled €6.4 billion. Salaries paid by Kesko in Finland totalled €352 million and in other countries €149 million, and taxes paid in Finland totalled €72.6 million and in other countries €17.6 million. Salaries paid by K-retailers totalled €275 million and taxes €33 million. Salaries paid by Kesko and K-retailers increased by a total of 7.9%.
During the year, the number of personnel was, on average, 11% smaller than in the previous year. The change was mainly due to the transaction of the Rimi Baltic joint venture in December 2006. The number of personnel decreased by 244 people in Finland and by 2,343 people in other countries. About 3% of employment contracts in Finland and about 11% elsewhere were terminated by Kesko. Employees' satisfaction improved in all surveyed aspects in Finland, Sweden and Norway and decreased in Estonia, Latvia and Russia. Sick days per working hours increased in Finland, as well as the number of incidents, but the average severity of incidents dropped. Outside Finland, the number of sick days decreased. The number of training days per employee decreased, but the money spent on training increased.
The energy efficiency of stores at an excellent level
The relative energy consumption of the Kesko Group decreased in 2007. The consumption of energy in the whole Kesko Group increased by 1.5%, whereas the net sales increased by 9%. In Finland, the energy consumption increased by 1.7%, the heated gross floor area by 3.6% and the net sales by 6%. The heat consumption in Finland remained at the level of the previous year and the specific heat consumption decreased by 3.5%. Specific electricity consumption decreased in all significant Kesko Food's premises despite the fact that the number of technical equipment increased.
The carbon dioxide emissions caused by the energy consumption of the Kesko Group totalled 217,000 tonnes. During 2007, the use of peat in energy production increased, which caused an increase of 14% in Kesko's CO2 emissions in Finland. In 2001-2007, however, the emissions from the electricity Kesko supplies to the K-Group in Finland have decreased by some 40%. The CO2 emissions caused by transport totalled 42,000 tonnes. Air miles from business travel totalled a little under 10 million and the air travel emissions respresented roughly 1% of all CO2 emissions of the Group. In waste management, Kesko succeeded in maintaining the recovery rate in Finland at the level of 89%, and Anttila at almost 98%. In foreign operations, the recycling rates were not at the level of Finland in any of the operating countries.
Sustainable alternatives to consumers
Kesko Food offered a selection of about 500 organic products and 550 products with environmental labelling. The selection of Fairtrade products (64 products) was the widest in Finland, and the sales of Fairtrade products increased by 300% in a year. Over 90% of the sales of Kesko Food's private label coffee came through independently monitored certification programmes. 91% of imported fruit and vegetables had a quality and environment certificate representing good agricultural practices. Anttila launched a Switcher fashion range, the whole production chain of which can be traced. Certified timber accounted for over 90% of sawn good sold by Kesko. Biodegradable shopping bags were also introduced.
Kesko continues to be a world leader in sustainability in trade
For the fifth time running, Kesko was chosen for the list of the Dow Jones sustainable development indexes for 2007/2008, and was included in the World Economic Forum list of the Global 100 Most Sustainable Corporations. Kesko participated for the first time in the Carbon Disclosure Project and was ranked fifth in the Carbon Disclosure Leader Index of low carbon intensive Nordic listed companies.
Kesko's Corporate Responsibility Report 2007 is available in the printed version and in PDF and digipaper versions at www.kesko.fi. The digipaper version of the report includes information complementary to the printed version.
Further information is available from Assistant Vice President Ulla Rehell, Kesko Corporation / Corporate Communications and Responsibility, phone: +358 1053 22464 or +358 50 383 9426, ulla.rehell@kesko.fi , or from Corporate Responsibility Advisor Marjut Lovio, phone: +358 1053 23302 or +358 50 4115 263, marjut.lovio@kesko.fi
Kesko (www.kesko.fi) is a Finnish retail specialist whose stores offer quality to the daily lives of consumers through valued products and services at competitive prices. Kesko has about 2,000 stores engaged in chain operations in the Nordic and Baltic countries, and Russia.