Key targets and achievements

On this page, we present key targets and achievements of economic responsibility, social responsibility and environmental responsibility. Further results of our responsibility work are available in Kesko’s Annual Report.

Economic responsibility - targets and achievements

Impact on society 

Kesko's operations generate economic benefits for shareholders, personnel, retailers, suppliers and service providers and their employees, customers, as well as municipalities and states.

Kesko is a significant taxpayer: in addition to paying income and real estate taxes, Kesko collects, reports and remits indirect taxes, such as value added taxes and excise duties.

K Code of Conduct

The K Code of Conduct was published in the languages of all our operating countries in October 2016. Our aim is that all of our personnel act in compliance with the K Code of Conduct.We have prepared an eLearning package for the entire personnel to facilitate the adoption of the K Code of Conduct. By the end of 2016, a total of 3,159 people had already completed the eLearning programme. We named 20 K Code of Conduct ambassadors as the messengers and contact persons. We will update all new and renewed employment contracts to include a clause about the requirement for personnel to familiarise themselves and comply with the K Code of Conduct. We will add a K Code of Conduct contract clause to all agreements signed by Kesko Group companies. As of 2017, we oblige the entire personnel to annually acknowledge their compliance with the K Code of Conduct guidelines. 

More disclosures for economic responsibility are available in Kesko’s Annual Report.

You can upload the GRI report section of the Annual Report as pdf here.

 

Social targets and achievements 

Working community

Our aim is to be the best employer in the trading sector in terms of job satisfaction. We offer interesting and diverse work as well as development opportunities. In 2016, we continued to employ young people by offering summer jobs to approximately 5,500 young people. 

The transformation of the trading sector and the increase in electronic transactions have created needs for new competencies. In 2016, further investments were made in digital thinking as the K Digital Academy training programme was executed for the third time and the K Digital Trainee programme offered trainee placements for recent graduates with a digital orientation. 

Responsible purchasing 

Our aim is that the social responsibility of the production of own direct imports from high-risk countries has been assured. In 2016, 210 BSCI full audits and 60 BSCI re-audits were conducted in the factories and farms of Kesko’s suppliers in high-risk countries. At the beginning of 2017, Kesko’s suppliers in high-risk countries had a total of 386 valid social responsibility audits.

 

Suppliers’ social responsibility audits in Kesko’s 10 largest high-risk countries of import

Direct purchases from suppliers in high-risk countries account for 1% of Kesko’s total purchases

Product safety and sustainable selections

The product safety of the K Group’s selections has been verified. The Product Research Unit's laboratory monitors the product safety and quality of the private labels and own imports in the grocery trade. In 2016, the Product Research laboratory analysed 7,770 product samples and conducted 17,176 analyses. The product safety of 539 suppliers was verified by means of a certified auditing procedure. The number of own audits was 13.

We offer an extensive selection of own-brand products with responsibility labelling. In 2016, the Pirkka range included 36 Pirkka Fairtrade products, 118 Pirkka Organic products, 37 Pirkka MSC-certified fish products, 32 Pirkka UTZ-certified products and 65 Nordic Swan label products. All Pirkka and K-Menu coffees are Fairtrade or UTZ-certified. The Pirkka range includes 15 Fairtrade or UTZ-certified chocolate and baking chocolate products. In 2017, all Pirkka range chocolates will be Fairtrade or UTZ-certified.

All interior and exterior paints in the K-Rauta's Cello range carry the Nordic Swan ecolabel. 62 Cello products carried the M1 label and 105 Cello products had the Allergy Label. 15 products in the PROF range carried the M1 label.

More disclosures for social responsibility are available in Kesko’s Annual Report.

You can upload the GRI report section of the Annual Report as pdf here.

   

Environmental targets and achievements

Renewable energy

All electricity purchased by Kesko in Finland is renewable since the beginning of 2017. We purchase renewable electricity that has the Renewable Energy Guarantee of Origin (REGO) from the Nordic countries. In 2017, electricity purchases will especially focus on Finnish bioenergy.

Solar power

Our aim is to increase the production of solar power for our own use. In June 2016, Finland’s largest property-specific solar power plant was completed on the roof of K-Citymarket Tammisto. By the end of 2016, solar power plants were built in two other K-Citymarket stores and nine K-Supermarket stores. By the summer of 2017, a total of 16 solar power plants will be in operation on the rooftops of K Group stores. The new investments will make the K Group the largest producer and user of solar power in Finland.

Energy efficiency

The K Group is participating in the action plan of the commerce sector Energy Efficiency Agreement for the years 2017–2025. In accordance with the agreement, the K Group commits itself to reducing its energy consumption by 7.5% through various energy saving measures. All K Group store chains are included in the agreement.  

Emissions

Our aim is to reduce the emissions of Kesko Logistics relative to the net sales index by 10% by 2020 from the 2011 level. We will reduce emissions by the efficient route planning of transport, efficient reverse logistics, two-tier trailers and training in economical driving styles. 

Food waste

Our aim is to reduce identfied food waste by 10% by 2020 from the 2013 level. We reduce food waste in K-food stores with the help of electronic forecasting and order systems, efficient logistics, employee training, reducing the prices of products approaching their best before dates and optimising packaging properties.

More disclosures for environmental responsibility are available in Kesko’s Annual Report.

You can upload the GRI report section of the Annual Report as pdf here.

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