Environment

We mitigate climate change together and promote the sustainable use of natural resources
  • We reduce the environmental impact by working together with the entire supply chain.
  • We promote development towards a low-carbon circular economy.
  • We help our customers reduce their environmental impact.
Topic Objective Progress of objective 2014 Progress of objective 2015 Progress of objective 2016


Renewable energy


We will purchase 100% renewable electricity in Finland.


The objective was set in 2016.


The objective was set in 2016.


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.


We will increase the production of solar power for our own use.


The objective was set in 2016.


The objective was set in 2016.


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 of stores


During the agreement period 2008–2016: We will improve our annual energy efficiency by 65 GWh by 2016.


Kesko improved its energy consumption by 59 GWh and achieved 90% of its objective.


Kesko improved its energy consumption by 64 GWh and achieved 97% of its objective.


K Group participated in the 2008-2016 Energy Efficiency Agreement for the commerce sector and committed to improving its annual energy efficiency by 65 GWh by the end of 2016. In fact, K Group improved its annual energy efficiency by 67 GWh, which is equivalent to the annual energy consumption of 3,400 detached houses or 200 K-Supermarkets. K-Supermarkets consume an average of 340 MWh of energy per year.


During the agreement period 2017–2025: We will reduce our energy consumption by 7.5% by 2025.


The objective was set in 2016.


The objective was set in 2016.


Kesko signed a retail sector energy efficiency agreement for 2017–2025. In the action plan, we commit to reducing our energy consumption by 7.5%.


Logistics emissions


We will 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.


We used nine two-tier trailers in long-distance transportation between our main warehouses. They can transport 30 roll containers, more than the regular trailer combination. All of Keslog’s more than 500 contracted drivers have been trained in economical driving.


Relative emissions have decreased by 5.5% from the starting level due to new solutions in transportation management and fleet organisation. A pilot study on using an extra long Ecotruck on the main logistics route between Vantaa and Oulu. The Ecotruck carries twice as many roll containers as an ordinary trailer combination.


The relative emissions had decreased by 1.9% from the base level. In 2016, emissions increased by 3.8% compared to 2015. The increase in emissions can be attributed to the increased number of stores caused by the acquisition of Suomen Lähikauppa. At first, only Kesko’s own brand Pirkka products were delivered to the new stores and as the conversion of the stores to K-Markets advanced,  refill loads were delivered to the stores as separate deliveries.


Science Based Targets


We will set Science Based Targets


We are committed to setting emission targets approved by the Science Based Targets initiative. The calculation began in December 2016.

2017:
Kesko is the first Finnish company to set science-based targets to reduce emissions from facilities, transportation and the supply chain. To achieve these ambitious emission reduction targets, Kesko will increase its use of renewable energy while also improving its energy efficiency.

Kesko commits to reduce its scope 1 and 2 emissions 18% by 2025, using a 2015 base year. As for scope 3 emissions, Kesko commits that 90% of its key suppliers will set greenhouse gas (GHG) emissions reduction targets by 2025.


Food waste


By 2020 we will reduce identified food waste by 10% 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.


Many K-food stores also donated food to charity. K-food stores participated in the Food Waste Week organised by the Consumers' Union of Finland in 2014.


We started a cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores as energy in the manufacture of new Pirkka products. Many K-food stores donate food to charity.


By the end of 2016, K-food stores had reduced identified food waste by 3.5% from the base level.

Approximately 90% of K-food stores work together with local charities. The amount of food products donated increased by 1.8 million kg from the previous year.

We continued cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores as energy in the manufacture of new Pirkka products. In 2016, approximately 3,700 tonnes of organic waste was transformed into 2,800 MWh of biogas. CO2 emissions were reduced by 550 tonnes compared to natural gas and by 740 tonnes compared to fuel oil.


Waste recovery


The goal is to minimise the generation of waste in all operations and to recover all waste.


The waste recovery rate of Keslog’s main warehouses and terminals was 98% and that of VV-Auto Group nearly 100%. The recovery rate of the waste generated in stores was 96% and the recycling rate was 67%.


The waste recovery rate in the grocery trade was 99%, in the home improvement and speciality goods trade 99.4%, and in the car trade 99.9%. In other operating countries, the waste recovery rate was 46%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was around 98%.


In Finland, the recovery rate was 99% and in other operating countries, it was 48%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was 100%.

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