Sustainability strategy

18.03.2025

The sustainability strategy, updated in October 2024, sets clear sustainability targets for the operations of Kesko and its three divisions. The focus areas of the sustainability strategy are climate and nature, value chain, our people, and good governance.

We create competitive advantage through sustainability. The effects of what we do spread far and wide through society.

Minimising impact on climate and nature. We respect planetary boundaries by minimising negative and maximising positive impacts on climate and nature.
Challenging suppliers and encouraging customers. We drive sustainability throughout the value chain and help our customers make sustainable choices.
Promoting the wellbeing and success of our employees. We create safety and wellbeing for our people. We foster diversity, equity and inclusion in our workplace.
Ensuring good governance. We embed sustainability and ethical business practices in everything we do.

Vision

We enable sustainable choices for our customers and drive change throughout the value chain.

Focus areas and key actions

Climate and nature	Value chain

Reduce emissions in the value chain Near-term scope 1 and 2 reductions by 2034 Net zero emissions by 2050 Challenge suppliers to set science-based climate targets	Ensure sustainability in the value chain Require all our suppliers from risk countries to be audited for social responsibility Broaden the scope of supplier social responsibility audits by moving from a risk-country approach to a risk-based approach Ensure suppliers' adherence to the K Code of Conduct, sustainability policies, and other relevant standards
Promote biodiversity Prevent biodiversity losses throughout the value chain by following the biodiversity roadmap Set goals for our biodiversity impacts	Enable sustainable choices for our customers Increase the share of sustainable products of net sales Make sustainable choices attractive through selections, data-based tools and communications
Take care of the water sufficiency Mitigate water scarcity risks in the value chain through responsible water management and by encouraging suppliers to adopt water efficiency targets
Enhance circular economy Create new circularity business models Enhance waste management and recycling
Our people	Good governance

Increase the safety and wellbeing of our people Support our people’s health, wellbeing and capabilities	Commit to the K Code of Conduct Strengthen employee commitment to the K Code of Conduct and to increase awareness of it
Foster diversity, equity and inclusion for our employees Diverse and inclusive workplace Equal pay Gender balance on all levels of the organisation	Strengthen sustainability competencies Automate ESG data processes

Key targets and performance indicators

Topic	Strategic target	Target	2024	Baseline 2023	KPI
Climate	Reach 50% scope 1 and 2 emission reductions by 2034	50% by the end of 2034	84,586 tCO2eq	77,947 tCO2eq	tCO2eq
Climate	Challenge suppliers to establish science-based climate targets driving reduction in scope 3 emissions	67% by the end of 2026	48.0%	32.0%	% of suppliers by spend have set science-based emission reduction targets
Sustainable sourcing	Ensure social responsibility in the directly imported goods from high-risk countries by achieving 100% appropriate audit level	100%	90.7%	97%	% of factories of direct high-risk country suppliers audited
Sustainable products	Increase the proportion of sustainable products of net sales	-		Grocery trade: 40% Building and technical trade: 18% Car trade: 31%	% of sustainable products in net sales
Diversity, equity and inclusion	Promote gender equality in top and middle management	Top management: 40% by 2030 Middle management: 45% by 2030	27.7% women (top management) 32.8% women (middle management)	28.4% women (top management) 36.1% women (middle management)	% of underrepresented gender in top management % of underrepresented gender in middle management

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Sustainability strategy

Vision

Focus areas and key actions

Climate and nature

Value chain

Our people

Good governance

Key targets and performance indicators

Topic

Strategic target

Target

2024

Baseline 2023

KPI

Climate

Sustainable sourcing

Sustainable products

Diversity, equity and inclusion