In addition to emissions from our own operations, K Group’s biggest climate impact comes from emissions from the value chain of products. Indirect Scope 3 emissions come from the lifecycle emissions of products and services sold, including the primary production of raw materials, manufacture of products, packaging, transport, and product use.
Kesko participates in the CDP Supply Chain programme. CDP is a global environmental non-profit organisation that annually collects detailed data from companies on their efforts to combat and adapt to climate change.
In 2022, we called on our 364 suppliers and service providers to cut emissions and report on their climate targets and actions through the CDP Climate Change Questionnaire. Out of the invited suppliers by spend 55.3% disclosed their reply to Kesko.
One of Kesko’s Science Based Targets (SBTs) is that 67% of our suppliers and service providers by spend, will have science-based reductions targets set for their emissions by the end of 2026. We monitor the achievement of the target through the CDP Climate Change Questionnaire. In 2022, 27.7% of suppliers and service providers had approved, science-based emissions reductions targets.
In 2022, KOPO (Kesko Onninen Purchasing Office), the purchasing office of the building and technical trade division in Shanghai, carried out an audit on 30 suppliers with a focus on environmental management and the ISO 14001 environmental system. At the end of 2022, 66 suppliers had a valid ISO 14001 certification.
We participate in the amfori BEPI programme, which aims to develop environmental management of suppliers in risk countries. In 2022, amfori BEPI risk assessment was carried out on 11 of our suppliers in risk countries.
As part of the IGS (ICA Global Sourcing) purchasing cooperation, we have introduced the IGS Environmental Assessment in which we ask suppliers for information on their energy consumption and sources and their measures taken to reduce energy consumption. No IGS Environmental Assessments were carried out in 2022 because of the Covid-19 pandemic.