European Commission, Brussels

Monitoring of REAP commitments & technical support for Forum issue papers

Final Report

20. December 2013

Consortium ETREAP

Expert Team REAP

No. ENV/C.1/SER/2011/0019 2

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Content

1 Executive Summary ...... 5 2 Major achievements in different areas of activity ...... 11 2.1 Energy Efficiency ...... 11 2.2 Greening the Distribution System ...... 13 2.3 Marketing & Communication ...... 14 2.4 Sustainable Products ...... 15 2.5 Carbon Footprint of Stores ...... 17 2.6 Packaging Optimisation ...... 19 2.7 Waste Management ...... 20 2.8 Water Management ...... 21 2.9 Sustainable Management ...... 22 2.10 Environmental LIFE CYCLE Information for products used every day in households ...... 22 3 Achievements made by retailer and retail association ...... 24 3.1 Achievements made by REAP Member Companies ...... 25 3.1.1 ASDA (UK) ...... 25 3.1.2 ...... 26 3.1.3 C&A (Retail Services Company) ...... 27 3.1.4 Colruyt (BE) ...... 28 3.1.5 (FR) ...... 29 3.1.6 ...... 30 3.1.7 El Corte Inglés ...... 31 3.1.8 EROSKI ...... 32 3.1.9 IKEA ...... 33 3.1.10 ...... 34 3.1.11 (DE) ...... 35 3.1.12 ...... 36 3.1.13 Marks & Spencer (UK) ...... 37 3.1.14 (ES) ...... 38 3.1.15 Metro Group ...... 39 3.1.16 REWE ...... 40 3.1.17 Royal ...... 41 3.1.18 Sonae ...... 42

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3.1.19 ...... 43 3.2 Achievements made by Retail Associations ...... 44 3.2.1 APED (PT) ...... 44 3.2.2 Confederación Española de Comercio CEC (ES) ...... 45 3.2.3 ...... 46 4 Verification of achievements by store visits ...... 53 5 Evaluation of the up-take of issue paper recommendations ...... 54 5.1 Energy Efficiency of Stores (September 2009) ...... 54 5.2 Optimisation of Distribution Systems (December 2009) ...... 54 5.3 Marketing and Effective Communication (April 2010) ...... 54 5.4 Timber (June 2010) ...... 55 5.5 Environmental LIFE CYCLE Information for Products Used Every Day in Households (November 2010) ...... 55 5.6 Measurement and reduction of carbon footprint of stores (January 2011) ...... 55 5.7 Labelling (June 2011) ...... 56 5.8 Packaging optimisation (November 2011) ...... 56 5.9 Sustainable seafood (June 2012) ...... 56 5.10 Waste Minimisation (October 2012) ...... 57 5.11 of Textiles (August 2013)...... 57 5.12 Water Footprint (envisaged December 2013) ...... 57 6 Conclusions and Recommendations ...... 59 6.1 General conclusions ...... 59 6.2 Examples of good practice in 2012 ...... 59 6.3 Conclusions on uptake of issue paper recommendations ...... 62 6.4 Recommendations for future REAP progress monitoring ...... 64

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1 Executive Summary

The Retail Forum1 is a multi-stakeholder platform set up in order to exchange best practices on sustainability in the European retail sector and to identify opportunities and barriers that may foster or hinder the achievement of sustainable consumption and production. Membership in the Retail Forum is voluntary and open to all retailers who join the Retailers' Environmental Plan (REAP). Environmental initiatives of REAP Members are reported in the Matrix of Environmental Action Points (MAP) which records progress made in the environmental sector over time.

This report contains the external monitoring of the achievements made by members of the Retail Forum by the end of 2012. In addition the report provides a long-term progress overview over the past four progress monitoring reporting years.

The REAP database - by October 2013 - contains about 596 reported environmental commitments from major European retail companies and associations. Compared with last year’s database, 61 commitments have been removed, and 141 new commitments have been added. The total figure comprises 194 commitments in the category “What we sell”, 268 commitments in the category “How we sell” and 132 commitments in the category “Communication”.

Taking into account the number of targets scheduled for 2011 and before of 196 there remain 400 future oriented commitments. This corresponds to an increase in future oriented commitments compared to the previous reporting period in 2012 of about 80.

Almost 60 % of the commitments relevant for this year (221)2 have timelines for 2012 or are classified as ongoing and have been included in the summary assessment for achievements made. In this context it is important to note that the majority of commitments this time are ongoing (153) whilst only 68 have a fixed timeline. 15 % (61) have short-term timelines for 2013 and 2014, and 22% (100) have long-term targets up to 2020/2050 (89) or are not specified.

Further refinements of topic areas caused a shift of commitments throughout the topic areas (116 commitments). The reallocation has impacted most the achieved targets in Sustainable Products (decrease of 25%, instead of 6% decrease), in Greening the Distribution System (increase of 22%, instead of 6% decrease), and in Marketing and Communication (increase of 62%, instead of 48% increase.

The major part of the commitments in the REAP database for 2012 and beyond focuses on Marketing and Communication (101) and Sustainable Products (76). Second priorities are commitments related to Energy Efficiency, Greening the Distribution System and Carbon Footprint (40 to 50 each). Waste Minimisation and Packaging Optimisation follow with around 30 commitments each. As in previous years, Water Management (8) has been reported by the retailers with the least priority, together with a new topic Sustainable (Building) Management (9).

1 http://ec.europa.eu/environment/industry/retail/index_en.htm 2 2012 onwards and ongoing

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 Within Sustainable Products the focus is on organic food and certification and labelling.

 In Marketing and Communication reported commitments are mostly related to awareness raising campaigns, CSR reporting and specific information on sustainable food. The category Greening of the Distribution System comprises (local) procurement and energy efficiency/GHG emissions from transports.

 Commitments classified under Carbon Footprint relate to reduction measures in store via use or production of renewable energy, reduction on refrigerant leakage or shift in refrigerant or via general efficiency measures.

 The same applies to Energy Efficiency where general reduction measures are the focus of targets this year.

 In Waste Management the activities focus on food waste and waste minimisation or prevention measures. And in Packaging Optimisation REAP members clearly target minimisation and sustainability.

A similar focus can be observed in the targets achieved this year.

 Marketing and Communication (50 achievements this year), cover generally sustainable campaigns and promotion activities, followed by CSR reporting.

 In Sustainable Products, a remaining popular topic (22 in total), achievements target mostly certification and labelling of products, complying with green policies and increasing share of organic (sea)food.

 Overall focus of the Energy Efficiency achieved commitments (14 in total) was on energy saving measures, further elaborated on topics as lighting saving, heating/cooling and closing doors of refrigerators.

 Greening the Distribution System (21 in total) focused mainly on procurement and thereby implying again the supply-chain/holistic life-cycle view: quality management systems, code of conducts and environmental standards were discussed.

 Targets related to Carbon Footprint (total of 10), consider mostly general emission reduction of CO2 and GHG emissions and implementing renewable energy measures.

 Packaging achievements (12 in total) target sustainable packaging (bio-cotton, reusable/biodegradable bags, and sustainable packaging strategies),

 while achievements in Waste Management (1 in total) mainly focus on waste minimization through initiatives and conventionally improving overall waste recovery rates from stores.

 Around 5 achieved targets each have been mentioned for Water Management, Sustainable

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(Building) Management and Environmental LIFE CYCLE of daily-used household products for which no distinction of subtopics is yet to be made.

Due to the development of issue papers two new topics, “Sustainable (Building) Management” and “Environmental LIFE CYCLE Information for products used every day in households”, have been introduced this year.

The project supported the work on new Issue Papers on Sustainable Seafood (June 2012), Waste Minimisation (October 2012), Sustainable Textiles (August 2013), and on water footprint (draft). in addition this year´s report includes information on the uptake of Issue Papers recommendations.

1. For energy efficiency (2009) ambition and number of commitments is generally high. It peaked in 2011, and decrease towards 2012. For distribution systems (2009) the overall commitment of REAP members is around or below 50%. The number of reporting retailers and of commitments was highest in 2011 (21), equal in 2010 and 2012 (16), and is lowest so far this year.

2. In marketing and communication (2010) a strong engagement of retailers (76%) compared to other IP topics can be observed. Compared to 2010 the number of reported activities has more than doubled until this year. The number of advanced commitments rose slightly.

3. Concerning the IP on timber (2010) the reported involvement of REAP members dropped to 5% by 2013 after a peak level of 33% in 2011. The number of commitments declined by almost 50% (16 to 9) from 2011 to 2012/2013.

4. The reflection of life-cycle aspects (IP 2010) in reporting to REAP is limited, but increasing. The number of retailers actively reporting increased from 20% in 2010 to 30% in the reporting period 2013. In the same period the number of reported commitments rose from 10 (2010) to 24 (2013). Current targets relate predominantly to certification processes and audit schemes.

5. The number of retailers reporting on Carbon emission reduction initiatives (IP 2011) remained almost stable from 2010 to 2013 (58-62%) at a relatively high level with a small peak (73%) in 2011. In number of commitments we observe a remarkable decrease in reported initiatives after 2011 towards 2013.

6. About 50% of the retailers or retailer associations reported commitments regarding `labelling´ (IP 2011) during the period 2010-2013. The number of commitments increased from 25 in 2010 to 42 in the year 2012 and slightly decreased again in 2013.

7. Approximately half of the REAP members reported commitments related to packaging (IP 2011) throughout all years, and the number of commitments remained stable (24-20) with a slight decline in 2013.

8. The involvement of retailers in sustainable seafood (IP 2012) is 50% of food retailers with a

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slight increase towards 2013. There were 9 commitments in 2012, whilst numbers range between 5-7 before and after.

9. Waste minimisation (IP 2012) has been an issue for retailers since 2010 with a moderate but constant increase in number of reporting retailers from 50%-56% of REAP members. The number of commitments increased remarkably from 21 in 2010 to 33 in 2013.

10. The share of retailers reporting on sustainable textiles (IP 2013) and the number of commitments is low. A small peak in commitment and reported activities (7) was only observed for 2012.

11. Water management (IP 2013)has remained a minor issue in reporting since the start of REAP but an increase can be observed in 2013. The number of commitments is as low as for textiles, but it increased towards 2013 after a drop in 2011 and 2012.

Store visits to ten retailers for a snap-shot verification of the targets set showed the development in energy efficiency, packaging standards or waste management, but also revealed the challenges retailers are facing in economic difficult times, when customers before all look to the price.

The report provides a summary evaluation of achievements by topic and retailers, a discussion of issue paper up-take, short information on retailers selected for store visits, and a presentation of highlights in a condensed form.

Detailed compilation of information, graphs, tables and illustrated store visit reports, and a detailed compilation of up-take of issue paper recommendation by recommendation and by policy and retail sector can be found in the annexes of this report.

This year again a number of commitments have been identified that merit special recognition for their particularities compared to other targets being scheduled for assessment in this reporting period. Grouped by area of activity these are:

Energy Efficiency:

 Metro Group: worldwide 95% of locations have digital energy measuring systems;  Marks & Spencers: Reduction of store, office and warehouse energy usage by 28%/sq ft within 5 years Greening Distribution System:

 Sonae: increased number of audited suppliers (249)  CEC : 80% of member companies in Barcelona region use special loading zones

 TESCO: transport emissions halved within 5 years in UK  Royal Ahold : GFSI certification of 80% of own brand supplier

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Marketing & Communication:

 The Co-operative Group: prestigious GHG emission reporting obligation, by mobilizing 190 , civil society, and Members of Parliament.

 Metro Group: GRI standard in CSR reporting  Auchan: 120 000 to 200 000 magazines with eco-citizen topic sold every two weeks

 EuroCoop: Various information activities related to carbon footprint to workers and members

 APED: Raising consumer awareness on food waste via general advice on how they can reduce the amount of food waste they generate. Sustainable timber:

 The Group: 94 % of wood and paper sold or 99% of own-brand and paper products certified (FSC) Sustainable textiles:

 Sonae: 80% Social, Ethical and Environmental Certification for textiles suppliers) Eco-labels:

 S-Group: Increase in sales of organic grocery products by 26and > 500 new organic products added within one year Sustainable Seafood:

 Mercadona: removal of 5 vulnerable species from the stocks Carbon Footprint:

 Colruyt: Pioneering with green hydrogen, CNG (natural gas) and bi-fuel engine (diesel and CNG)

 Marks & Spencers: Achieved of stores, offices, warehouses, travel and logistics in UK and

 Sonae: 42 new photovoltaic panels installed in the course of this year Packaging optimisation:

 Royal Ahold:“4R” packaging guidelines: reduce, re-use, recycle and renew  FCD: Ban of free check out bags

 Delhaize Bulgaria (Picadilly): Rent-a-Bag program, which by the end of 2012 reduced single- use usage by 70%.

 Sonae: six new Continente reusable bag formats

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Waste Management:

 Royal Ahold: Group metric to measure food waste

 Mercadona: 33.000 tonnes of food waste from bread, cookies, snacks, etc transferred into pet flower Water Management/Footprint:

 Sonae : 9.9% reduction in drinking water consumption instead of 2% envisaged

 TESCO: Reporting of companies water footprint  The cooperative Group: 80% water consumption reporting Sustainable (Building) Management:

 Co-operative Group: banning 2 more pesticides over the year 2012, enhancing further the Pesticides Policy

 Sonae: Sensory analysis Life cycle:

 Colruyt: sustainability screening method

 Eroski Group: Software tool for life-cycle assessment of products (>100)

 Inditex: Documentation of hazardous discharge from suppliers, ban of PFOS/PFOA and assurance of APEO-free chemicals

 ANCC/Coop Italia: Environmental Product Declaration on own-brand waters

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2 Major achievements in different areas of activity

Of the 594 environmental commitments, 396 commitments target the year 2012 and beyond. This number has increased, compared with the previous reporting period, with about 100 new commitments. Thereof 230 commitments (timelines 2012 (67) and “ongoing” (163)) is included in the assessment for achievements made. In addition, longer-term targets for years (e.g. 2015, 2020) are included in the assessment if achieved in advance.

The assessment has been performed in the first place on the basis of the status reported in the REAP database (achieved and/or partly-achieved). Additional information supplied by the retailers themselves (e.g. from EuroCoop members), additional CSR-analysis, and textual description in the REAP database for future commitments not achieved, are taken as a guideline for the decision to discuss them in this chapter or not.

"Achieved" commitments already reported in previous years due to an achievement of the target in advance are not included in the assessment in order to prevent duplication, whilst documented in advance achievement of longer-term commitments (e.g. for 2015) is already been discussed. This shows that also the REAP database is continuously subject to modifications and updates.

The allocation of achieved targets largely follows the order of retailer´s environmental priorities, which are in Sustainable Products and Marketing and Communication this year. The areas where achieved targets are second priority are Greening the Distribution System and Carbon Footprint. The third priority in achievements for 2012 and ongoing are Waste Management, Energy Efficiency and Packaging Optimisation.

The interpretation of the assessment of progress made however, needs to take into account, that reporting to REAP does not reflect the full range of retail activities. Comparable types of activities might also be taken or been accomplished by other retailers without reporting.

In order to avoid inconsistencies and double counting, commitments are classified and presented according to clear allocation rules and in a way that they are counted only once. (For further information see Annex 1.1). This refinement of commitment allocation entailed some shifts in allocation of commitments compared to last year, which however is reflected in the determination of trends, and which is impacting noticeably only on communication and sustainable products.

2.1 Energy Efficiency

For 2012 and onwards, 41 commitments have been reported by 18 individual retail companies3, by FCD, CEC and by four EuroCoop members4. A small part of the 41 commitments has a timeline for 2012 (4), whereas 15 commitments are classified as ongoing. The rest of the commitments (22) have

3 Auchan- (1), Auchan-Groupe (1), C&A (3), Carrefour (1), Colruyt (3), Delhaize Group (2), El Corte Inglés (4), Grupo Eroski (1), Ikea (1), Inditex (1), Kaufland (3), Lidl (2), Marks & Spencers (2), Metro Group (3), REWE Group (1), Royal Ahold (2), Royal Ahold – (1), Sonae (1) 4 Coop Norway (2), Kooperativa Förbundet (1), (1), The Co-operative Group (2), FCD (1) and CEC (1)

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timelines from 2013 up to 2020.

The emphasis in 2012´s overall commitments has been on energy saving, of which 13 targets are for 2012 and ongoing and 14 targets are for 2013 and beyond. The commitments contain mostly ongoing and future set targets for reduction of energy use or consumption. Where there is a single commitment on heating this year, cooling targets counts for 6 commitments mostly focusing on increasing the number of freezers and refrigerators with doors but all contain future timelines. In addition, 4 targets, timelines ongoing (2) and in the future (2), deal with lighting. Three ongoing targets deal with monitoring of energy consumptions.

Timelines 2012, ongoing & achieved

The overall focus of the 14 achieved environmental commitments with timelines for 2012 and ongoing was on energy saving measures. Innovative and efficient technologies e.g. combined heating/cooling systems were installed, or eco-efficient stores were built. A majority of the commitments in `energy saving´ targets on individual energy saving measures such as lighting, heating/cooling systems and closing doors of refrigerators.

A few commitments target improved `cooling´ by installing doors on fridges. Some ongoing measures are taken upon `lighting´, in terms of replacing inefficient lighting equipment with low-energy lighting equipment in stores, or LED lighting.

Finally a single commitment for 2012 focussed on the `monitoring of energy consumption´ through the installation of equipment to further improve collection and monitoring of energy consumption.

The majority of the commitments has been achieved.

One highlight is the achievement of the Metro Group, which worldwide has foreseen 95% of all its sales locations with installed digital energy measurement systems over three years. Another achievement highlight is from Marks & Spencers, reducing its energy use by 28% within five years, exceeding the 25% target in 2012. Worth to be mentioned in addition are the efforts of Inditex to refurbish their old stores according to eco-efficient building measure (345 eco-reformed so far).

Where in 2009 only five targets were set on Energy Efficiency, the targets have significantly grown over the last reporting years although even a small decrease in Energy Efficiency targets is observed over the last two years. The strong grow of commitments in the beginning was mentioned to have been a reflection of the EU legislation pressure and related national targets. Also it was mentioned to be a consequence of the released issue paper from September 20095 on energy efficiency in stores, including examples of good practices. The focus of the retailer´s environmental commitments has however not rigorously changed: reduced energy consumption of stores/energy saving measures remain the core focus topics.

5 Retail Forum for sustainability, Issue paper on the energy efficiency of stores. Issue Paper No1, September 2009

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2.2 Greening the Distribution System

From 2012 and onwards, 52 commitments have been reported by 16 individual retail companies6, by CEC and by three EuroCoop members7. 12 commitments have a timeline for 2012, while 17 are classified as ongoing. The rest of the commitments has timelines from 2013 up to 2020.

The emphasis of the commitments in the database for 2012 and beyond is on procurement (16), transport emissions (14) and energy efficiency in transportation (12), with about half of them with timelines 2012 and ongoing. Improving distribution platforms counts for 7 environmental commitments, while intermodal transport is left behind with 3 commitments this year (both timelines ongoing).

Timelines 2012, ongoing & achieved

The priorities of the achieved commitments with a timeline for 2012 and ongoing (21 in total) follow the overall database´ priorities: sustainable procurement within distribution systems (8) and reduction of GHG transport emissions (4) together with energy efficiency (4).

Green procurement comprises initiatives as increased auditing and certification of suppliers. Conformity with quality management systems, Code of Conducts and other Standards are increasingly subject to suppliers´ audits.

Transport emissions are reduced by implementation of effective packaging of goods, better fuel standards and change of transport mode. Three commitments count for the promotion of alternative transport use and 1 commitment is accounted for innovations in distribution platforms.

From the reported commitments we would like to highlight in particular the following: The increase in number of audited suppliers of Sonae by 44 within one year and certification of 249 producers according to Continente Producers club standards are remarkable commitments towards improvement of the supply chain sustainability. Royal Ahold managed to reach 84% of its business in to be part of The Global Food Safety Initiative (GFSI).

The retail association CEC in Barcelona is to be highlighted, for the progress made (80%) on companies using loading/unloading zones for the supply of goods to facilitate mobility efficiency. In addition, Tesco halved its emission per case of good delivered in five years in the UK, with an effective ´F plan´ concept as basis for energy efficient implementation of goods delivery.

Green Procurement of goods is a developing trend. From 2009 (5 commitments) the number grew to 29 in 2010, and after towards 50 in reporting year 2011. Although a small decrease last reporting year to 42 has been noticed, this year the database of Greening the Distribution System counts again about 50 commitments. A light shift in focus over the last years is noticed from transport emissions

6 Asda Walmart (2), Carrefour (1), Colruyt (4), Delhaize group (1), El Corte Inglés (6), Grupo Eroski (2), Ikea (3), Inditex (3), Kaufland (3), Marks & Spencers (3), Metro Group (1), REWE Group (3), Royal Ahold (3), Royal Ahold – ICA (2), Sonae (5), Tesco (3) 7 Coop Norway (1), Kooperativa Förbundet (1), The Co-operative Group (2) and CEC (3)

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towards green procurement, although the firstly mentioned is still one of the major topics. A decent shift in timeline is visible: whereas in 2011 predominantly short timelines have been reported, the majority of timelines now is ongoing, 2013 or beyond.

2.3 Marketing & Communication

In the category Marketing & Communication, 101 commitments have been reported for 2012 and onwards, by 19 individual retail companies8, by CEC, APED, FCD and EuroCoop and its five members9. 10 commitments have a timeline for 2012, while 55 commitments are classified as ongoing. The rest of the commitments contains timelines from 2013 up to 2020.

A large majority of commitments in the database for 2012 and beyond is targeted on campaigns and promotion (34), followed by awareness raising and trainings (14) and CSR reporting (10). More than the half of these commitments contains timelines for 2012 and ongoing. Other Marketing & Communication topics target food (9), printed customer information (7), research & collaboration initiatives (6), and implementing policies & guidelines (5). The rest of the awareness raising topics contain 4 commitments: information on carbon footprinting, energy, online customer information and in-store information.

Timelines 2012, ongoing & achieved

The priorities of the achieved commitments (50 in total) with a timeline for 2012 and ongoing, cover mostly commitments related to campaigns and promotion activities (around 15), followed by CSR reporting (around 8), information on food (food waste, GMO, labelling and sustainable fishery) and trainings for store managers, personnel, suppliers including a brand-new learning store (6). About 5 commitments on research and collaboration have been achieved, varying from cooperation with universities and customers (surveys). Remaining commitments are awareness activities on carbon footprinting (3), spreading in-store and printed information for customers (both 3), and information on energy (2), online customer information (2). 1 commitment has been achieved on implementation of policies & guidelines.

There is a large quantity of initiatives, which however, are relatively vague in many cases. The large majority of commitments is ´ongoing´. This follows from the fact that a large part of the retailer´s commitments contain awareness campaigns, trainings and annual CSR reporting actions. Some retailers (Carrefour, Royal Ahold) involve their customers in surveys so that the effects can be better measured and analysed. Special achievements have been made over the past year.

Metro Group committed for the first time its Sustainability Reporting to the standard of the Global Reporting Initiative GRI G3. Besides, Metro Group undertook a special action abroad, by expanding its supplier training programme in Kazakhstan.

8 Asda Walmart (4), Auchan-France (2), C&A (6), Carrefour (6), Colruyt (5), Delhaize group (2), El Corte Inglés (12), Grupo Eroski (2), Ikea (1), Inditex (6), Kaufland (5), Lidl (1), Marks & Spencers (3), Mercadona (3), Metro Group (5), REWE Group (1), Royal Ahold (7), Sonae (4), Tesco (3) 9 EuroCoop (2), ANNC/Coop Italia (4), Coop Norway (1), Kooperativa Förbundet (1), S Group (2), The Co- operative Group (5), APED (4), CEC (2) and FCD (2)

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The Co-operative Group (EuroCoop) promoted a prestigious GHG emission reporting obligation for large companies, by mobilizing 190 businesses and civil society organization. The Group launched also a comprehensive sustainability education programme, involving 5300 schools throughout the .

EuroCoop shall be mentioned for its commitments on CO2, and Auchan for the regular information of customers in up to 200,000 magazines every two weeks.

Sonae undertook a range of special community projects. Besides its employees were dedicated to volunteer work in hundreds of initiatives. It also published a guide for environmental support operations abroad. Sonae impacts its customers on their lifestyles, by giving personal advice in-store.

And APED is focussing on consumer awareness on food waste and recommendations for prevention measures.

The issue paper on Marketing and Effective Communication has been released in April 201010. Dissemination of the environmental profile of products and retailers is also raised by the European Commission in its Communication of April 201311, working towards and aiming for more transparency, accessible data, reliability and completeness of information on products towards customers.

Marketing and Communication grew from about 42 commitments reported in 2010 (7 in 2009), to 50 reported in 2011, 60 in 2012 and around 100 commitments this year. Whereas in 2011, one fifth of the reported commitments were classified as ongoing, this year more than the half of the commitments is classified as such.

Focus priorities have been since 2009 on communication campaigns for various products and sustainability awareness. Renewed priority has been given to training (14) and to guidelines and policies (5). Food has become a slighter higher priority, with commitments on communication and promotion of food labelling, sustainable seafood and organic, eco- and Fairtrade products. Besides the conventional marketing and communication actions (e.g. CSR report, campaigns, trainings) retailers start involvement in society through e.g. cooperation with universities and schools and voluntary work activities.

2.4 Sustainable Products

The category Sustainable Products contains this year 74 commitments for 2012 and onwards have been reported by 15 retail companies12, by FCD and five EuroCoop members13. 12 environmental

10 Retail Forum for sustainability, Issue paper on Marketing and Effective Communication. Issue Paper No3, April 2010 11 European Commission, Communication from the Commission to the and the Council – Building the Single for Green Products. COM(2013) 196 final, Brussels, 9.4.2013. http://eur- lex.europa.eu/Result.do?T1=V5&T2=2013&T3=0196&RechType=RECH_naturel&Submit=Search 12 Asda Walmart (3), C&A (2), Carrefour (5), Colruyt (5), Delhaize group (8), El Corte Inglés (2), Ikea (5), Inditex (5), Kaufland (2), Lidl (4), Marks & Spencers (1), Mercadona (3), REWE Group (4), Royal Ahold (2), Sonae (2)

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commitments have a timeline for 2012, and 36 commitments are classified as ongoing. 10 commitments have short-term timelines for 2013 and 2014, and the rest (16) is of the commitments is for the long-term future.

The most retailer’s commitments, described above and present in the database of this year, is targeted organic food (20) and certification and labelling (19). These topics are followed by wood/paper/tissue and local food commitments (both 8). Other Sustainable Product topics cover seafood (6), electronic/white goods and sustainable textiles (both 5). Single commitments have retailers considered on recycled/renewable material (2) and Fair-trade food (1).

Timelines 2012, ongoing & achieved

Commitments with a timeline for 2012 and ongoing (22 in total) are mostly related to certification and labelling of products (6), to organic food (4) and to sustainable seafood (3). Retailers´ environmental commitments on wood and paper (3) commonly address FSC certification. A few commitments target on procurement of local food (2) or on phase out of incandescent light bulbs (1). Sustainable textiles and Fair-trade food had lowest priority last year (both 1).

The majority of the commitments on Sustainable Products are ongoing (about 14), while 6 commitments have been specifically set for the year 2012.

High priority has been given to certification and labelling of sustainable products and the increased emphasis on organic food and to a lesser extent to sustainable seafood and wood.

Target achievement in sustainable products shows, that a considerable number of targets could not be achieved as envisaged. This may at least in part be explained by the economic crisis, driving customers to the cheapest products available. The EuroCoop - Kooperativa Förbundet target on sustainable fish originally scheduled for 2012 was already achieved in advance. The in advance (2015) achieved Asda commitment on sustainable palm oil was refined to relate to certified oil in 2020.

We would like to highlight the S-Group of EuroCoop, which increased its sales of organic grocery products by 26% over the year 2012. More than 500 new organic products were added to the assortment, containing currently a total number of 2,200 products, and Mercadona managed to remove 5 vulnerable species throughout 2012 in the context of a program on the sustainability of fish products started in that year. Furthermore we would like to emphasize the initiative of Sonae on sustainable textiles (80% supplier certification), and the 99% level of FSC labelled wood and paper reported by the Cooperative group.

Due to the regrouping of commitments which has taken place over reporting year 2011-2012, it was difficult to assess the exact developments within Sustainable Products, but in the longer perspective 2010-2012 the numbers remain more or less stable. A major shift however, is noticed in terms of timing. Whilst in 2010 only 5-10% of the commitments were reported as ongoing, this year about

13 ANNC/Coop Italia (3), Coop Norway (2), Kooperativa Förbundet (3), S Group (2), The Co-operative Group (7), and FCD (6)

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50% of the total commitments are ongoing.

The evolution of the retailer´s environmental commitments in the theme Sustainable Products has been accompanied by four annual issue papers since 2010.

1. The issue paper on Timber and Timber Management14 (June 2010) has been reported in 2011 as having “increased the number and ambition of targets related to certification schemes for wood and paper”, with 12 new commitments. This year 8 commitments were mentioned in the database, of which 3 with targets for 2012.

2. The issue paper on Labelling15 (June 2011) is reflected this year in the majority of the overall commitments and the targets for 2012. It contains amongst others measures like systematic screening of assortment, increase share of certified palm oil, setting up ecological product lines of retailers.

3. The issue paper on Sustainable Seafood (June 2012)16 is reflected by a considerable number of commitments and targets in that same year. Both aspects seem to respond to the high political priority for this topic (Rio +20) and the entry into force of amended Regulation on frozen food of animal origin17.

4. The impacts of the issue paper on Sustainability of textiles (August 2013)18 will not become visible before 2014´s reporting. The European Commission this year released a report on the need and options for the harmonisation of the labelling of textile and products19, so as to support Member State in the development of Product Category Rules on textiles.

Besides the issue papers, organic food (and fair-trade food) has been constantly a theme consisting of a high number of commitments. This year 20 commitments were reported and 8 of them have been achieved.

2.5 Carbon Footprint of Stores

In the category Carbon Footprint of stores, 48 commitments have been reported for 2012 and onwards, by 16 individual retail companies20, by CEC, FCD and EuroCoop and its five members21. 9 commitments have timeline for 2012, while 11 commitments are classified as ongoing. The rest of

14 Retail Forum for sustainability, Issue paper on Timber and Timber Management. Issue Paper No4, June 2010 15 Retail Forum for sustainability, Issue paper on Labelling. Issue Paper No7, June 2011 16 Retail Forum for sustainability, Issue paper on Sustainable Seafood. Issue Paper No9, June 2012 17 Commission Regulation (EU) No 16/2012; http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:008:0029:0030:EN:PDF 18 Retail Forum for sustainability, Issue paper on Sustainability of textiles. Issue Paper No11, August 2013 19 Matrix Insight, Study of the need and options for the harmonisation of the labelling of textile and clothing products. European Commission, DG Enterprise and Industry. 24 January 2013 20 Asda Walmart (2), C&A (1), Carrefour (2), Colruyt (3), Delhaize group (3), El Corte Inglés (1), Grupo Eroski (2), Ikea (4), Inditex (5), Marks & Spencers (3), Metro Group (1), Royal Ahold (2), Royal Ahold – Albert Heijn (1), Royal Ahold – ICA (2), Sonae (2), Tesco (2) 21 EuroCoop (1), ANNC/Coop Italia (1), Coop Norway (1), Kooperativa Förbundet (2), S Group (2), The Co- operative Group (3), CEC (1) and FCD (1)

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the commitment contains approximately an equal amount of short-term timelines up to 2015 and long-term timelines up to 2030.

About the half of the commitments (20) in the database for 2012 and beyond is targeted on emission reduction of stores, followed by renewable energy measures (13) and commitments which have carbon footprint as the main objective (9). Other Carbon Footprint topics are the replacement of refrigerants for environmental friendly ones (5) and labelling through the availability of a sustainability self-assessment tool (1).

Timelines 2012, ongoing & achieved

The 10 commitments with a timeline for 2012 and ongoing, concern GHG emission reduction (2), and explicit renewable energy measures (4) (e.g. photovoltaic power stations, solar panels, green hydrogen) as key activities. Also commitments are dedicated to reduction of refrigerants leakage (3), and labelling through availability of a self-assessment tool (1). No achievement has been made in the subcategory carbon footprint.

Timelines are ongoing in many cases. This is in line with the fact that reduction of CO2 or GHG emissions is globally practiced by setting long-term goals for 2020 and 2050.

It shall be mentioned that the EuroCoop - The Co-operative Group target on carbon footprint of packaging and the Inditex commitment related to 50 % from renewable sources and co-generation plants originally scheduled for 2012 were achieved in advance (see previous reports). For this year we would like to highlight,

Marks & Spencer with the reported carbon neutrality of its operations in UK and IE. In addition we wish to mention Coop Norway (EuroCoop) that has established CO2-based refrigeration appliances as standard in new and refurbished stores. Concerning renewable energy, the pilot on use of green hydrogen for forklifts trucks and trans-pallets by Colruyt is worth mentioning. Besides green hydrogen, pioneering is also continued on trucks with CNG (natural gas) and with a bi-fuel engine (diesel and CNG). We would like to stress the 42 new photovoltaic power stations installed by Sonae in the course of this year. And lastly, Carrefour further increased the access to its sustainability self- assessment tool (highlighted last year to about 7,000 suppliers.

Over the last years the focus on the `emission reduction´ has remained the topic to which the most of retailers´ commitments have been appointed to. The EU unilateral commitment in these developments can possibly be linked to this, since it targeted for 2020 to reduce the overall GHG emissions from its 28 Member States by 20% compared to 1990 levels22. The amount of achieved targets of the retailers has remained stable over the last two reporting years and key activities have been remained similar.

22 http://ec.europa.eu/clima/policies/g-gas/index_en.htm

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The commitments reflect the issue paper on carbon footprint of stores released in January 201123 that focused on the scope of a retailer´s own emission or indirect GHG emissions from consumption of purchased electricity.

2.6 Packaging Optimisation

The category Packaging Optimization reports on 26 commitments for the year 2012 and onwards, by 12 individual retail companies24, by APED, FCD and 3 EuroCoop member25. 7 commitments have a timeline for 2012, while 13 commitments are specified as ongoing. The rest of the commitments (6) are for 2013, 2015 or not set/specified. Both packaging minimization (13) and sustainable packaging (11) contain the majority of the commitments in the database for 2012 and beyond. One more Packaging optimization topic is packaging labelling which contains only 2 commitments.

Timelines 2012, ongoing & achieved

The commitments with a timeline for 2012 and ongoing, consist of 8 achievements on sustainable packaging, on commitments related to packaging minimization (4), and 1 commitments on packaging labelling with information how to dispose or recycle the packaging. Sustainable packaging relates to introduction of bio-cotton, reusable and biodegradable bags to private brand sustainable packaging strategies. Waste minimisation mostly addresses elimination of plastic bags and general packaging elimination. The major part of the commitments are ongoing. It shall be mentioned that the FCD/Carrefour phase out of free disposable plastic bags originally scheduled for 2012 was achieved in advance and is not mentioned anymore.

This year we hence would like to highlight Royal Ahold with the guidelines for sustainable own-brand packaging for each operating company, Inditex with designed paper bags (Zara), and Sonae with six new Continente reusable bag formats in 2012. Furthermore the cut down of 108 tonnes of packaging waste in in 2012 and the Greener Packaging Award for packaging improvements for Delhaize Belgium shall be noted at this place. Finally we would like to emphasize Delhaize Bulgaria's (Picadilly) Rent-a-Bag program, which by the end of 2012 reduced single-use plastic bag usage by 70%. This initiative can be considered an innovative response to the recently approved Bulgarian high eco-tax on plastic bags that became effective end of 2011. With taxes this high, Bulgaria is, in essence, banning plastic bags.

Since the reporting year 2010/2011 the amount of commitments related to Packaging optimization have remained stable, around 30 commitments have been reported each year. Eliminating and/or diminishing shopping bags is still one of the most mentioned commitment of retailers, not in the last place because the European legislative pressure is ongoing.

23 Retail Forum for sustainability, Issue paper on Measurement and reduction of carbon footprint of stores. Issue Paper No6, January 2011 24 Asda Walmart (1), Auchan-France (1), C&A (1), Carrefour (1), Colruyt (3), Delhaize group (3), El Corte Inglés (1), Grupo Eroski (1), Inditex (1), Royal Ahold (4), Royal Ahold – Albert Heijn (1), Sonae (1) 25 ANNC/Coop Italia (2), Coop Norway (2), The Co-operative Group (1), APED (1) and FCD (1)

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The issue paper on packaging optimization26 addresses plastic bags, and emphasizes the life-cycle approach addressing the entire packaging product system and illustrates a balance between resource loss and reducing packaging. The Commission is currently exploring improvement of the design and operation of Extended Producer Responsibility within the scope of packaging. A stakeholder consultation is currently ongoing, seeking for views, feedback and comments on selected guidelines for EPR27. Moreover, a recent public consultation launched on the Green Paper on Plastic Waste28 will give more insights in the measures to be taken on plastic waste by improving product design, internalizing costs and sustainability of products when the conclusions will be published. Lastly, a recent Commission proposal29 has been adopted (on 4 November 2013) that requires Member States to reduce their use of lightweight plastic carrier bags.

2.7 Waste Management

In the Waste Management category 34 commitments are present in the current database for 2012 and onwards, reported by 13 individual retail companies30, by CEC and by all EuroCoop members31. Six environmental commitments reported by the retailers last year had a timeline for 2012, whereas 13 commitments have been classified as ongoing. The rest of the commitments have timelines from 2013 up to 2020 (14), or are mentioned as `in place´ (1).

The major part of 2012´s database commitments this year is on waste minimisation (22), of which 11 targets are for 2012 and ongoing and 11 are for 2013 and beyond. Waste recycling and reuse commitments are also classified as waste minimisation. The priority of these 22 commitments is on waste recycling, a few retailers commit to waste minimisation per definition. Two following waste management categories this year are on organic waste (5) and waste prevention (5). In addition, 1 environmental commitment is on implementation of deposit scheme for intake of bottles/packaging, and only 1 commitment (for 2015) is devoted to waste sorting for recycling/energy recovery.

Timelines 2012, ongoing & achieved

The achieved targets for 2012, ongoing and beyond (15 in total) follow largely the retailer´s priorities of environmental commitments in the overall database. The key focus in waste management is on recycling initiatives and improving overall waste recovery rates from stores (7). Food waste is addressed by means of metric development, cooperation with food banks, or increased recycling of organic wastes. One commitments deals with waste textiles, and another with deposit scheme for beverage packaging.

26 Retail Forum for sustainability, Issue paper on packaging optimization. Issue Paper No8, November 2011 27 European Commission Project “Development of Guidance on Extended Producer Responsibility” - http://epr.eu-smr.eu/ 28 European Commmission COM(2013) 123 final, Green Paper – On a European Strategy on Plastic Waste in the Environment. Brussels, 7 March 2013. 29 Environment: Commission proposes to reduce the use of plastic bags. Brussels, 4 November 2013. http://europa.eu/rapid/press-release_IP-13-1017_en.htm 30 Asda Walmart (2), Auchan-France (3), Colruyt (3), Delhaize Group (2), El Corte Inglés (3), Grupo Eroski (2), Ikea (1), Inditex (1), Kaufland (1), Mercadona (1), Royal Ahold (3), Sonae (1), Tesco (4) 31 ANCC/Coop Italia (1), Coop Norway (1), Kooperativa Förbundet (1), S Group (2), The Co-operative Group (1), CEC (1)

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The 90% target on waste recycling of Auchan-France scheduled for 2012 was achieved in advance and is not mentioned anymore here. Tesco commitments on food waste scheduled for 2012 in last year's reporting have not been reported this year. As highlights we would like to mention

Royal Ahold that achieved to develop a group metric to measure food waste over the past reporting year. For Mercadona´s we would like to mention the conversion of foods (33,000 tons per year) into petfood-grade flour to prevent landfilling. Another example to be acknowledged is Kooperativa Förbundet, who distributed 140,000 meals through food banks over the past year. A similar example is from Coop Italia who carries out a ‘Buon fine’ project since 2009.

Where in 2009-2010 16 targets were set on Waste Management, the targets have grown towards about 35 in 2011, and have remained at this level over the last year. On the other hand, a shift in timeline is visible: whereas in 2011 the targets were mostly short-term, most targets now are ongoing or to be achieved in the future.

In 2011 the European Parliament already presented a report32 on avoiding food waste. In addition a public consultation33 has recently be held on a more resource efficient and sustainable food system, of which the results will be published end of 2013/early 2014. The issue paper on Waste Minimisation released in October 201234, puts a focus on food waste prevention, as does the Landfill Directive. The European Commission will present a strategy with clear definitions for food waste, setting out the waste hierarchy for food, improvement on the collection of food waste data and targets on separate collection of food waste.

2.8 Water Management

In the Water Management category, 9 commitments have been reported by the retailers for the year 2012 and onwards. In total, 6 individual retailers35, the CEC and one EuroCoop member36 are part of the commitments. 3 commitments are reported by the retailers with a timeline 2012, 2 with timeline 2013 and ongoing, 1 for 2014, 2020.

Timelines 2012, ongoing & achieved

Five commitments are targeted for 2012, ongoing and beyond.

As highlights we would like to mention Sonae with a 10% reduction in drinking water consumption, TESCO with a company water footprint report, and the Co-operative Group with 80% water consumption reporting. ANCC/Coop Italia is to be mentioned for its commitment for sustainable mineral water (see chapter 2.3).

32 European Parliament, Report on how to avoid food wastage: strategies for a more efficient food chain in the EU. Committee on Agriculture and Rural Development. Rapporteur: Salvatore Caronna. 30 November 2011 33 http://ec.europa.eu/environment/eussd/food.htm 34 Retail Forum for sustainability, Issue paper on Waste Minimisation. Issue Paper No10, October 2012 35 Auchan-Groupe (1), C&A (1), El Corte Inglés (1), Ikea (2), Sonae (1), Tesco (1) 36 The Co-operative Group (1) and CEC (1)

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Other interesting water management commitments not yet achieved, but newly reported in the database, are on supply chain water footprinting (C&A), developing a standard for measurement of water footprint of textiles (El Corte Inglés), water footprint in supply chain and contribution to availability of clean water in surrounding communities (both IKEA). The retailer´s commitments to water management remain limited in all reporting years.

2.9 Sustainable Management

In the Sustainable Management category, 9 commitments are present in the database for 2012 and beyond. These commitments are reported by 4 individual retail companies37 and by two EuroCoop members38. 4 commitments have timelines for 2012, whereas other 4 are ongoing. One commitment has no specified timeline. Commitments are almost equally shared between implementing certificates and standards for facilities and suppliers (4) and taking environmental friendly measures (5).

Many of the commitments have been re-allocated from other topic areas. About 4 commitments come from Energy Efficiency, 4 from Marketing and Communication, 3 from Sustainable Products and one from Carbon Footprint and Water Management. 4 commitments have been newly introduced.

Timelines 2012, ongoing & achieved

Three of the 6 targets for 2012 and ongoing address certification, implementing labels and standards for suppliers and outlets. The 3 other targets, are on environmental friendly measures for pesticides, life-cycle software development and sensory analyses.

The Co-operative Group has not reached its target for 2012 to ban Paraquat and Endosulfan as pesticides completely, but has banned other 2 pesticides, attaining a number of 34 removed pesticides.

We would like to highlight Sonae that commits with 3 environmental goals. It achieved an extended and ambitious sensory analysis program in order to guarantee its Continente products´ quality and continuation and improvement of its store. It complied with ISO standards for numerous facilities and developed its own certification process for suppliers which are remarkable achievements.

2.10 Environmental LIFE CYCLE Information for products used every day in households

Life-Cycle information for products is not yet considered as an own category in the REAP database. But it is increasing in importance and increasingly this information is applied to product´s labels. The issue paper39 on this topic has been released in November 2010. Since the paper´s introduction, the

37 Grupo Eroski (1), Inditex (2), Royal Ahold (1), Sonae (3) 38 Coop Norway (1), The Co-operative Group (1) 39 Retail Forum for sustainability, Issue paper on Environmental LIFE-CYCLE Information for Products Used Every Day in Households. Issue Paper No5, November 2010

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amount of commitments have increased.

We would like to emphasise Inditex that published the discharges of hazardous chemicals from its suppliers and achieved zero discharges of these chemicals throughout the entire life-cycle (e.g. production procedures).

Carrefour includes life-cycle information on certain products on its websites, so that consumers can reduce their footprint. Colruyt works on a generic sustainability screening method for product groups, which can be used to assess life-cycle aspects in product development and selection.

Grupo Eroski is also developing a software to perform life-cycle assessment of products. Albert Heijn (Royal Ahold) has conducted Life-Cycle Assessments on a number of products to identify areas for improvement, and has shared these findings with the suppliers to involve them in reducing their footprint.

Sonae´s Sensory Analysis (see previous chapter), also is a tool to guarantee a sound reflection on its products´ life-cycle. Sonae included over more than 9,000 customers.

Coop Italia (EuroCoop) doubled the supply sources of its own-brand waters which were EPD® (Environmental Product Declaration) certified offering the maximum amount of information on a product’s life-cycle environmental impact.

The retailers are being supported by policy makers through distinct initiatives at EU level. There is a European Platform on Life-Cycle Assessment40providing data sets from its Life-Cycle Inventories (LCI). Online guides and handbooks explain the principles of LCA and where to find life-cycle data related to retail products41. A LCA Resources directory provides product environmental information42.

40 http://lct.jrc.ec.europa.eu/ 41 - ILCD (International Reference Life Cycle Database) Handbook based on the existing international standards on LCA, ISO 14040/44, provides governments and businesses with a basis for assuring quality and consistency of life cycle data, methods and assessments – http://lct.jrc.ec.europa.eu/pdf-directory/ILCD-Handbook- General-guide-for-LCA-DETAIL-online-12March2010.pdf - European Environment Agency (EEA) Guide to LCA - a guide to approaches, experiences and information sources - http://www.eea.europa.eu/publications/GH-07-97-595-EN-C 42 http://lca.jrc.ec.europa.eu/lcainfohub/directory.vm

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3 Achievements made by retailer and retail association

This chapter summarises progress made over time related to commitments reported to MAP and the REAP database with a focus on target timeline 2012, targets achieved in advance and (new) interesting initiatives ongoing but not especially achieved yet.

Comparable types of activities might also be taken or been accomplished by other retailers without reporting. For complete information about retailers´ social responsibility activities we refer to the corresponding Corporate Social Responsibility reports (CSRs).

The structure of each chapter is as follows: 1. Name and background information for Retail Company, describing briefly the history and type of organisation as well as headquarters, number of employees, stores, customers, countries covered, brands, turnovers and products. 2. Major achievements made by the end of 2012 3. Other initiatives, including further commitments with timelines from 2013 and later, newly started initiatives, as well as targets reported in CSRs or received from retailers themselves.

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3.1 Achievements made by REAP Member Companies

3.1.1 ASDA Walmart (UK)

ASDA is a British chain and subsidiary of Walmart. Asda is the UK's second largest Headquarters: , Yorkshire, supermarket chain by market share. Lutterworth Leicestershire Employees: 180,000 Reported initiatives Stores: 544 Countries: UK For ASDA Walmart the MAP 2013 lists 13 Customers:  18 million per week commitments for 2013 and ongoing. The focus is on Brands: Extra Special; Chosen By You; waste and packaging minimisation, raising customer Smart Price; George Total Turnover: € 24 billion awareness, sustainable products and further Products: food retail, George clothing, emission reduction. home ware, electrics, music & video, toys and baby products, financial services Major achievements made by end of 2012

ASDA Walmart did not report any targets with timelines for particularly 2012 (the corporate strategy runs 2010-2015), but achieved all of their ongoing commitments. Namely, they achieved an absolute carbon footprint reduction of 15.8% in the past five years, despite the acquisition of 150 stores. The website and the Aisle Spy Environment blog are still used and Asda’s free magazine continue to increase awareness for sustainable lifestyle. The website was visited over 132,000 times in 2012 and the magazine has a circulation of 3 million copies. 5000 tonnes of clothes (both operational and customer donations), were recycled in 2012, supporting charities to the tune of over £1million. Other interesting initiatives By the end of 2012 ASDA could further reduce transport emissions by 5% (47% since 2005). The share of products sourced from local suppliers increased to over 6000 by end of last year. The 2015 target to exclusively use sustainable palm oil in own brand products is already partly achieved. 3200 tonnes of the palm oil used is segregated sustainable and the remainder is covered by Green Palm certificates. In 2011 ASDA Walmart published a sustainability study “Green is normal” 43. The “Big Green Journey” report was published in 2013. The studies provides important information in customers views and busts some long-standing myths about sustainability. The survey with 7500 interviewed customers showed that they have clear thinking on which issues they care about, and who should be taking action. In summary, five customer priorities on sustainability were identified: „100% sustainable products“, „Save me money“, „Cut my waste“, „Support my community“ and „Use Everyday Experts“. Commitments for 2014 and 2015 comprise a 10% waste reduction from farm to fork by applying sustainable methods, the reduction of carbon emission from existing stores, depots and offices and to expand existing initiatives including Farm Link.

43 http://your.asda.com/system/dragonfly/production/2011/12/15/16_13_37_444_Green_is_Normal_ASDA_Sus tainabilityStudy.pdf

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3.1.2 Auchan Auchan is an international retail company with five core businesses including , Headquarters: Croix , estate, banking and e- Employees: 287,000 Stores: 1,464 (fully consolidated commerce. Hypermarkets + Supermarkets) Reported initiatives Countries: , Taiwan, France, Hungary, India, Italy, Luxembourg, In 2013 Auchan reported 7 relevant commitments Poland, , Romania, Russia, , to the MAP (2 commitments with timeline 2012, 4 Ukraine Brands: Auchan hypermarchés (other for 2013 and 1 ongoing commitments). Auchan is brands in other countries), Simply Market focussing on the improvement of waste (other brands in other countries), Banque management by reaching a high share of recovered Accord, Immochan, E-commerce Total Turnover: € 60.2 billion (including waste and by fermentation and composting of taxes) organic waste as well as by improving ecodesign Products: Food retail + non-food: and the reduction of packaging waste. However, Childcare, Clothing, Electro - High Tech, Games – Hobbies, Garden - Cars – DIY, Auchan planned to reduce the water and energy Home - Deco consumption and increase their production of photovoltaic in the meantime. They continued with their communication strategy by being every two weeks on an eco-citizen topic in its TV magazine in France.

Major achievements of Groupe Auchan made by end of 2012

For the whole Groupe, the water and energy consumption decreased by 2% in 2012 and 12,040 tons of packaging on Auchan branded products were eliminated since 2004 (2011: 10,590t). For France, three targets from last year with timeline 2012 were already achieved in 2011. So the recycling rate of the waste produced by stores in France increased to 89% and the mass of methanized waste increased up to 13,500 t in 2012. With 3,500 marked products Auchan France informed their customers about which products allow to save water, save energy, preserve preservation as well as products with reduced packaging or fair trade products.

Other interesting initiatives In France, Auchan opened its first “Coeur de Nature” store in May 2012 in Brétigny sur- Orge ( region). This 1,000 m2 store specialises in fairly-priced organic products and sustainable development, with a comprehensive offering of organic agricultural produce and organic-labelled food and non-food products. In addition, a new website was launched “Mieux Vivre Par Auchan” which offers advice and recipes from nutritionists and experts, as well as an online store selling 2,000 organic and wholefood products, including products adapted for specific health problems. To encourage the consumption of fresh or seasonal products, Auchan created mobile phone apps providing ideas for recipes. In Spain, Alcampo sorted 66.1% of its waste and recycled 37,255 tonnes. Simply Market ran a test scheme recycling organic waste at 14 French stores, and followed the hypermarkets which launched the production of plastic bags made from plastic waste in partnership with TT PLAST in Lens (northern France).

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3.1.3 C&A (Retail Services Company) CC&A is one of the leading fashion retailers in Headquarters: Brussels Belgium, Europe and , a subsidiary of the COFRA Düsseldorf Germany Employees: over 37,500 Holding Group AG. Stores: over 1,500 Reported initiatives Countries: 20; EU: Germany, , Austria, Belgium, Spain, France, Italy, The 11 reported C&A commitments focus on Romania, Croatia, Serbia, etc. improvement of the product eco-design (increased Customers:  18 million Brands: C&A, C&A Kids, C&A women, C&A sales of organic cotton), energy efficiency (motivate kids women, C&A Lingerie, C&A customer’s behaviour by washing instructions saving Clockhouse energy, reduce energy consumption in stores) as Subbrands: Yessica, Yessica pure, Your well as water and carbon footprinting within Sixth Sense, Angelo Litrico, Westbury, Canda, Clockhouse, Baby Club, Palomino, timeframes of three years. Here & There, Rodeo Sport Major achievements made by end of 2012 Total Turnover: € 6,8 billion Products: fashion C&A did not report commitments with timelines for 2012. The sales of cotton bags decreased in 2012. C&A continued to promoted the reduction of energy consumption through changing labels of products, promoting less tumble drying and washing with 30°C instead of 40°C. Other interesting initiatives

C&A was honoured by “Textile Exchange” as “Future Shaper” due to its numerous commitments and broad use of organic cotton. Thereby it is one out of ten companies worldwide that received this award.

C&A admits to Zero Discharge 2020 and developed a plan to reach the target. Already in 2012, C&A respectively sold 80 million textiles which surpass the target of 60 million items. In regard of energy

efficient stores: After the pilot project of the innovative, energy efficient and CO2 neutral store in Mainz was implemented in 2008, additional stores within Germany were equipped and renovated accordingly by 2012.

C&A builds a baseline of its supply chain water footprint to develop water reduction targets and increases the used communication avenues with key stakeholders concerning ongoing dialogues.

Further, they plan to create a model of energy best practice, to design potential routes for customers promoting a more sustainable life and to establish a strategic partnership to build a programme to empower colleagues to sustainable action. All of these targets shall be achieved by 2014, while maintaining cooperation with key industry working groups.

Last but not least, current sustainable communications shall be reviewed and plans to improve these communications shall be developed.

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3.1.4 Colruyt (BE) Colruyt is one of the major players in the country's Headquarters: Halle, Belgium retail network. Founded in 1925, the group today Employees: 25,205 operates a number of retail brands, most significantly Stores:  418 its discount supermarket chain. Countries: Belgium, France, Luxembourg Brands: Bio-Planet, Coccimarket, Codi- Reported initiatives Cash, ColliShop, Collivery, Colryut, DATS 24, DreamBaby, DreamLand, Foodinvest, 17 of the 22 commitments reported by Colruyt to MAP Okay, Panier Sympa, Pro à Pro, Retail 2013 have timelines for 2012 (1), 2013 (3) or are etc. ongoing (13). The focus is set on sustainable products, Total Turnover: €8,311.6 million increased eco-efficiency, improved logistics, carbon Products: Retail footprinting and communication to customers. Major achievements made by end of 2012 Colruyt currently works on a generic sustainability screening method for product groups, sustainable feed projects for the mat sold as well as the sustainable fish programme “Our engagement, your choice” launched in September 2012. By September 2013 Colryut offers 100% NON endangered wild fish (both fresh and frozen). The red score for the criteria of “ecological impact” and “fishery management”was elimiated. In June 2012, the first Colruyt low-energy store opened its doors in Wépion near Namen. Distribution: The number of well-insulated, covered unload zones increased further to 29 (2011: 18). Colruyt has now 45 extra silent trailers 4) (2011: 23). Off-peak deliveries increased. Trucks are loaded 95% on average. The share of EURO VI and CNG trucks was further increased to 10 of 40 in 2012. Colruyt further increased the amount of goods delivered via train and water to 68,240,300 tonnes/km/year in 2012. 5,500 employees use alternative transport modes such as bikes, train, busses and car sharing compared to 5,000 in 2011. DATS 24 has opened 4 CNG gas stations for customers and/or company fleet in 2012. In 2012 energy use was reduced by 4.9% compared to 2009. The energy use is systematically

monitored in buildings. CO2 emissions are monitored annually according to GHG protocol. The pilot of green hydrogen out of renewable energy at Halle´s distribution centre for forklift is continued. Colruyt informed their customers about energy efficiency, renewable energy and mobility initiatives via information brochures and in-store TV screens. Since 2012 sustainability issues are integrated in consumer workshops of the Colruyt Group Academy. The waste recycling rate reached 77% in 2012 (2011: 76%) and especially focuses on cardboard and plastics. In 2012, 19,965 tonnes of the organic waste was used for bio-fermentation and about 579 tons (354 tonnes by Colruyt (2011: 240 tons), 225 tonnes by customers) of food was donated to food banks, which corresponds with a 10% increase. (more info: annual report 2012-2013) Other interesting initiatives Our aim is to reduce our relative CO2 emissions with 17% by 2020. For 2013 a food waste campaign is planned to be developed. Furthermore two new Bio-Planet stores and seven CNG gas stations at DATS 24 will be opened in 2013.

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3.1.5 Carrefour (FR) Carrefour is the world’s second-largest retailer and the Headquarters: largest in Europe, the group currently operates four main Boulogne-Billancourt, France formats: hypermarkets, supermarkets, cash Employees: 364,969 Stores: 9,994 & carry and convenience stores. Countries: 33; Europe, Latin Reported initiatives America and Asia Brands: Carrefour (planet, market, Carrefour reported 12 relevant commitments for contact, city, express, montagne), progress monitoring to the MAP 2013. Initiatives focus on Marché plus, Shopi, 8 a huit, Proxi, organic and FSC certified products, reducing CO Promocash, Atacadao, docks 2 market, Gross emissions, paper consumption and packaging, promoting Total Turnover: €81 billion sustainability in the whole supply chain, communication about sustainable activities as well as packaging minimisation. 3 commitments have targets for 2012. Others are open or long-term. Major achievements made by end of 2012 Carrefour was able to achieve their target of 100% fibres from certified sustainable forest management and/or recycled sources worldwide by 2012 in its commercial publications. In regard to their ongoing commitments, a decrease of the energy consumption in integrated stores by 8.7% compared with 2009 to 573 kWh/m2 was reported. This correspond to a decrease of 24.6% compared to 2004. Regarding CO2 emissions, greenhouse gas emissions fell by 10.3% in 2012 compared to 2009 worldwide and by 24.9% (2011: 25%) in Belgium, Spain Italy and France, keeping the level of last year. Core measures were introduction of a new refrigeration system that reduces energy consumption by 10-20 % and reduces leakage by 75%. Carrefour managed to make its sustainability self-assessment tool44 that is now backed by the ISO 260000 standard, available to 6,940 suppliers in 15 languages and 12 countries by 2012. In 2012 Carrefour published for the first time annual key performance indicators45. In 2012 several new GMO free products were introduced. The offer in organic food increased to 2004 (1201 in 2010). Awareness raising on sustainability matters (organic food, energy efficiency, GMO) is continued. There is ongoing cooperation with the French national experimentation for environmental information on products. A global plan and a communication campaign on waste reduction was recently launched . An interactive website on (food)waste and energy is established in France. Other interesting initiatives Carrefour signed up to the “Green Construction” charter and opened a new low energy store near Troyes (34% energy reduction compared to a similar store). The new 2020 energy efficiency target

for sales areas is set at 30% compared to 2004. CO2 emissions shall be reduced by 40% compared to 2009 by 2020 in FR, BE, IT, and ES. Towards the 2015 target concerning RSPO certified palm oil, Carrefour managed to introduce the first certified oil in . An overall FCS certification for wood is targeted.

44 on issues such as energy efficiency, climate change, palm oil and , marine resource preservation and sustainable forestry 45 http://www.carrefour.com/sites/default/files/Carrefour_RA_GB_accessible.pdf

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3.1.6 Delhaize Group Delhaize Group is a Belgian international food retailer Headquarters: Brussels with activities in eleven countries on three continents. Employees: 158,000 The Group has leading positions in food retailing in key Stores: 3,451 markets. Countries: Albania, Belgium, Bosnia and Herzegovina, Bulgaria, Greece, Reported initiatives Indonesia, Luxembourg, Montenegro, Romania, Serbia, The commitments reported to the MAP 2013 by Delhaize Banners: Alfa Beta, Bottom Dollar are mid- and long-term targets with timelines 2015, 2020 Food, Delhaize, Euromax, Food Lion, and ongoing. The commitments focus on sustainable Hannaford, Harveys, Maxi, Mega products, greenhouse gas emission reduction, waste Image, Piccadilly, Red Market, Reeds, Super Indo, Sweetbay, Tempo, Tom & reduction and strong communication. Nevertheless Co etc. progress data are provided for 2012. Total Revenues: € 22,7 billion Products: food retail, pet products Major achievements made by end of 2012 20% of the palm oil used in private brand food products for Delhaize Belgium was certified sustainable in 2012. Delhaize Belgium, in partnership with WWF and Stichting de Noordzee, achieved 100% of fresh and 80% of frozen seafood products coming from sustainable sources. Mega Image (Romania) partnered with the Sustainable Fisheries Partnership to evaluate the sustainability of their private brand seafood products.

Delhaize Belgium increased the amount of sustainably-certified packaging materials and reduced packaging by 108 tonnes. The private brand “Eco” in Belgium now comprises 28 products and is also sold in Mega Image stores. The “AB Terra Leaf” label in Greece now consists of 23 products46.

The sales of organic products increased by 5% in Belgium and by 79% in Romania in 2012. Mega Image expanded its “Gusturi Romanesti” local products to include fresh fruit and vegetables. In Belgium average sales of local products“Product Van Bij Ons/ Produit de Chez Nous” increased by 10% between September and December 2012.

GHG emissions were reduced by 7% (baseline 2008) by installing LED and high efficiency fluorescent lighting, and closing refrigerators and freezers. 98.5% of refrigerants used in stores in Belgium, Greece and Romania were ozone-friendly in 2012, and the use of natural refrigerants is continued. Delhaize Belgium developed an expanded partnerships with food banks and informs customers on how to reduce their food waste. Mega Image and Piccadilly (Bulgaria) created new juice and salads lines to eliminate waste from unsold (damaged) fruit and vegetables. Mega Image expanded the PET bottle recycling stations to 10 additional since the last year. Piccadilly introduced Bulgaria´s first “Rent-a-bag” programme, and by the end of 2012 single-use plastic bags were reduced by 70%. The 2012 CSR report47 won the second prize (first prize in 2008 and 2011). A sustainability blog48 is maintained.

46 including detergents, tissue paper, cosmetics and eco-friendly or FSC compliant garbage bags 47 http://www.delhaizegroup.com/SustainabilityReport/2012/index.html 48 http://blog.delhaizegroup.com/

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3.1.7 El Corte Inglés El Corte Inglés is the biggest department store group in Europe and ranks fourth worldwide. El Headquarters: Madrid Employees: 99,323 Corte Inglés is Spain's only remaining department Stores: 1,525 store chain, as well as being the owner of several Countries: Spain, Portugal associated businesses. Customers: 630 million in 2012 Brands: Bricor DIY, Centro de Seguros y Reported initiatives Servicios, El Corte Inglés, Financiera El Corte Inglés, Hipercor, Opencor, Óptica El Corte Inglés reported 21 relevant commitments 2000, Sfera, Seguros El Corte Inglés, to the MAP 2013 with timelines for 2013/2014 or Supercor, Telcor, Viajes El Corte Inglés ongoing, and sets the focus on sustainable products, Total Turnover: € 15,577.75 million awareness raising, energy efficiency as well as water Products: food retail, George clothing, home ware, electrics, music & video, toys and waste management. and baby products, financial services, Major achievements made by end of 2012 Insurance brokerage and insurance For the progress monitoring 2013 only one ongoing commitment has been reported. All other commitments have timelines for 2013 and 2014. The ongoing commitment relates to energy efficiency in the distribution system, has led to a reduction of 23% in 2012, achieving the target set for 2020. In 2012 we have also begun to implement freezers with doors, specifically a 25% of the equipment have already doors. During 2012 we have achieved a significant increase in ecological products references (1.581) and fish certificated references (17).

Other interesting initiatives El Corte Inglés reports a considerable amount of commitments with timelines for 2013. Many are related to improved energy efficiency in lighting, cooling and heating, e.g. by replacing conventional light bulbs and transformers and installing LED lighting. Furthermore freezers and refrigerators shall be closed with doors and heat recovery from freezers shall be implemented. In regard to optimised logistics El Corte Inglés intends to increase the number of products (non- refrigerated and refrigerated) distributed via a centralised platform. In 2012, 80% of the goods is delivered this way (2008: 0%). To further reduce emissions from transport, El Corte Inglés continuously increases the number of phone/videoconferences to avoid unnecessary business. 20% of the employees shall be trained on environmental practices by 2013. In addition brochures about ecological products shall be available for customers in 2013 as well as learning material for students during school visits.

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3.1.8 EROSKI Eroski is a Spanish supermarket chain and co- Headquarters:Elorrio Employees: 38,420 operative within the Mondragón Corporation group. Stores: 2,110 The company was founded in 1969 in the regions of Countries: Spain and Andorra Biscay and Gipuzkoa. Brands: Hypermarkets, Supermarkets City and Center; perfume stores IF, Caprabo, Reported initiatives Eroskiseguros, Eroskigasolinera, Eroskimóvil, Eroski online, Eroskióptica, The 9 commitments reported to MAP 2013 have Eroskiviajes, Forum Sport, timelines for 2012 and ongoing. They cover optimised FundaciónEroski resource use, emission reduction, sustainable Total Turnover: € ## million Products: food retail, sports, perfume products, packaging optimisation, energy efficiency, stores, optical, insurance, holiday optimised transport, improved waste management packages and awareness raising. EROSKI established a Strategic Environmental Plan 2013 – 2016 focusing on process efficiency.

Major achievements made by 2012 Due to the predominance of ongoing targets, achievements are mostly reported as improvements compared with earlier years. By improvements in packaging of more than 100 products EROSKI reduced CO2 emissions by 2100 tons. recycled paper, wooden garden and some own brand tissue is FSC labelled. The MSC certificate has been granted for fresh hake and skrei cod. Products from local suppliers are intensively promoted and increasingly bought. 20 stores are equipped with electric loading stations and by 2012 EROSKI disposes of 7 Electro-Vans for home delivery. In 2012 Oῇati was opened as the first zero emission and carbon neutral store. Due to exclusive LED illumination, natural light and closed refrigeration units, insulation, and on-demand energy management energy consumption is reduced by 65%. On company level EROSKI managed to reduce CO2 emissions by 12% as targeted. Other interesting initiatives Grupo EROSKI has an Environmental Plan of 2013-2016 which core objective is to optimize resource use through process efficiency. In this regard, a 5% decrease of CO2 emissions arising from energy consumption and transport is targeted for 2016. This shall be accomplished by implementing numerous measures like floating condensation, the use of demisting elements in negative cooling cabinets, enabling energy savings due to a shorter accumulated element activation time, High-Efficiency Fans (HEF), subcooling and temperature sensors for optimized air conditioning. In addition, cooling chambers and freezer islands are closed by doors and lids and skylights, green lighting and LED lighting is used to save energy. Further, this target shall be reached by using sustainable transport. Hence, EROSKI focuses on reverse logistic flows, the use of additives in fuel as well as bio fuels.

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3.1.9 IKEA

IKEA Group is a major global home furnishing Headquarters: Leiden, Netherlands retailer that works in four basic areas: range Employees: 139,000 strategy & product development, production, Stores: 298 Countries: 44; , Asia, Canada, supply and retail. USA, Europe (Germany, , Austria, Reported initiatives , Spain, etc.) Customers: 690 million store visits There are 6 relevant targets reported to the MAP Brands: 1 2013 by IKEA covering multiple topics with target Total Turnover: €27,628 billion Products: home furnishing products years 2012, 2013, 2014 and ongoing. The commitments relate to certified wood products, water footprinting, renewable energy, energy and waste management as well as awareness raising initiatives. Major achievements made by end of 2012 By the end of 2012 IKEA managed to increase the share of FSC certified solid wood to 22.6%, but did not manage to reach the target of 35% due to the little share of total FSC certified forests in the world. Therefore, they set a new target of 50% wood coming from preferred sources by 2017. As regards the share of renewable energy for electricity and heating further increased from 51% in 2011 to 55% in 2012 and shall reach 100% in the long-term. By having purchased 2 additional wind farms IKEA now operates 83 wind turbines and 75 photovoltaic installations worldwide that contribute a total of 319 Gigawatt hours (GWh) to the electricity grid (152 GWh in 2011). Over 250,000 solar panel were operational worldwide in 2012. The ongoing commitment of waste sorting for recycling and/or energy recovery at stores and warehouses was 86% (85% in 2011). Other interesting initiatives By the end of June 2014 it is planned to carry out at least two awareness-raising campaigns on waste reduction. In terms of renewable energy IKEA reports about new programme “Suppliers Go Renewable” which will be launched in 2013. In 2011, 23 of IKEA´s direct home furnishing suppliers powered their operations with more than 90% renewable energy. Strive towards a balanced water footprint in all parts of their supply chain. Furthermore it is planned to have a clear strategy for water in place by 2013. This includes water footprinting for all parts of their supply chain. Regarding energy efficiency, IKEA saved 3% of total energy consumption in stores compared to 2011. They also committed to convert all lighting they sell to LED by FY16 and they will invest up to € 1.5 billion in renewable energy up to 2015. Energy consuming products are already 32% more efficient than comparable products from 2008. The investment shall lead to a production of renewable energy by 2015 that is equivalent to 70% of IKEAs energy consumption and by 2020 it shall cover the entire energy consumption.

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3.1.10 Inditex The Inditex Group is one of the world's largest fashion Headquarters: A Coruña - España retailers, welcoming shoppers at currently eight brands. Employees: 120,314 Reported initiatives Stores: 6,009 Countries: 86; Europe, America, The 17 commitments submitted to MAP 2013 cover the use Asia and ROW of sustainable, non-hazardous raw materials, reduction of Brands: Zara, Pull & Bear, the carbon footprint, energy- and eco-efficient stores and Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, waste minimisation. Further focus is placed on awareness Uterqüe raising, namely the promotion of sustainable consumption Total Turnover: € 15,946 million as well as environmental training. Products: fashion Major achievements made by end of 2012 The sole Inditex commitment reported for 2012 to source at least 50% of electricity consumed in factories and headquarters from renewable and cogeneration plants was surpassed and achieved in advance. In terms of ongoing targets the following achievements were made: Furthermore, Zara sold 4.2 million units of 100% organic cotton (OE100 certified), which equals a 10% increase in sustainable fibres as targeted. Three pilot projects assessed the environmental impacts of garments and footwear via the Inditex environmental assessment tool. The results of the pilot projects were used to assess and advise Inditex’s suppliers with regard to use of chemicals, energy, water, etc. By modernising stores it was possible to reduce the store average power consumption by 30% in 345 stores in Spain, France and Portugal. All new opened stores have 100% PEFC/FSC certified wood store fixtures, paper bags and product bags. All plastic bags contain d2w49 for faster biodegradation. 10% of the total environmental budget was allocated to textile reuse and recycling. Inditex exceeded its 40% target for allocating of environmental budget in initiatives that protect the environment and improve the by 12%. Iniditex continues its environmental education programme with environmental contents and information for customers and employees in the corporate magazine, the corporate annual report, on the corporate web page50 and in the press51. Some of the Inditex chains publish environmental advices in blogs. Other interesting initiatives The 2013 targets to publish discharges of hazardous chemicals from 100 suppliers and to ensure that only APEO-free chemical formulations are utilized was achieved. Moreover, Inditex has imposed to suppliers a ban on PFOS, PFOA, their salts and derivatives, and thelomeric alcohols. .

49 http://www.degradable.net/d2w-controlledlife-plastic/what-is-d2w/ 50 http://www.inditex.com/en/corporate_responsibility/environmental/policy 51 http://www.inditex.com/en/press/press_releases#

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3.1.11 Kaufland (DE) Reported initiatives Kaufland reports 11 commitments to the MAP 2013 with a focus on sustainable, eco-labelled Headquarters: Neckarsulm (Germany) products, environmental issues and animal Employees: over 136.000 (int.) Stores: approx. 1.110 (int.) welfare (“Nature & Respect” and “FairMast” Countries: Bulgaria, Croatia, Czech poultry) and awareness raising for employees Republic, Germany, Poland, Romania, and customers. Furthermore, Kaufland reports Slovakia Brands: K-Classic, K-Bio, K-Purland commitments related to optimised logistics, Products: food retail minimised paper consumption, the implementation of energy-efficient technologies as well as free servings of fruits in support of the EU school fruit scheme. Most of the measures mentioned below refer to Germany. However, it is intended to intensify the activities in the other countries as well. Major achievements made by end of 2012 All of Kaufland’s targets that are relevant for the progress monitoring in 2012 are ongoing, hence achievements are only relatively. It is reported that Kaufland is extending its range of products by offering animal welfare products and by increasing eco-labelled products (FSC-, MSC-, Blue Angel- [Blauer Engel] and Sustainable Cleaning-labelled products and products with the EU organic farming logo). The promotion of such products is supported by a special shelf label - the “Kaufland globe”. In addition to FSC, MSC, Blue Angel and Fairtrade, further acknowledged labels such as UTZ Certified or GOTS were newly introduced to be marked with the “Kaufland globe”. Sustainable fish products are continuously promoted via the customer magazine as well as on the website. The training units provided to employees were continued. Innovative and efficient technologies were installed, e.g. a combined heating/cooling system in 27 new and reorganised stores. In support of sustainable consumption within the EU School Fruit Scheme, more than 3500 children have been provided with regional fruits or vegetables once per week in 2012. Other interesting initiatives In 2012, Kaufland promoted MSC via another special campaign raising money for a fishery in Gambia in order to support its certification by MSC. On its website, Kaufland provides comprehensive information on sustainable fishing and guidance on sustainable customer behaviour. Kaufland is also informing about the numerous campaigns related to e.g. Fairtrade or “Blauer Engel”. Furthermore, customers have the possibility to calculate their yearly carbon footprint via a website tool. Kaufland is also aiming to further reduce its environmental impacts, e.g. by ozone friendly refrigerants.

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3.1.12 Lidl Headquarters: Neckarsulm Lidl is a German discount supermarket chain that Employees: more than 170,000 belongs to the Schwarz Group, one of the big Stores: more than around 10,000 retail companies in Europe. Countries: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Cyprus, , Reported initiatives Finland, France, Germany, Greece, Hungary, Ireland, Italy, Malta, Netherlands, Poland, Lidl reported 7 relevant commitments to the MAP Portugal, Romania, Slovakia, Slovenia, 2013. Spain, Sweden, , United Kingdom Commitments focus on increased energy Brands: Freeway, Saskia und Mixxed UP, efficiency (energy efficient store concepts and Fairglobe, Biotrend, FinCarre, Ein gutes freezing cabinets), sustainable products (eco- Stück Heimat etc. Total Net-Turnover: € 48,9 Billion labelled and locally sourced products) and their Products: retail promotion. Major achievements made by end of 2012 For the progress monitoring no targets with timeline 2012 were submitted. The 4 ongoing commitments basically focus on sustainable products. LIDL managed to extend the range and absolute number of sustainable products in Germany (certified according to ecological standards and European Flower labelled products) by another 25% in 2012. As regards products certified to ecological standards (FSC-, MSC-, Blauer Engel and European Flower labelled products) LIDL further increased its product range from approximately 83 products in 2011 to 111 in 2012. LIDL also continuously promotes local sourced and manufactured products “Ein gutes Stück Heimat” via several channels (posters, product placement, TV-Spots, etc.). Other interesting initiatives Lidl lounged a new company policy “Auf dem Weg nach Morgen” (“ On the way to tomorrow”). Regarding their product range many measures are initiated, implemented and explained on the website, e.g. several product labels, organic products and food waste reduction via discounts. In 2012 Lidl managed to have own-brand bottles (Saskia, Mixxed UP, and Freeway) made from 50% from recycled PET. Compared to 2010, it is an increase of about 20% of recycled material. Also the weight (raw material) of those products was reduced by 30%. Since 2009 Lidl is a Member of IPR („Iniative pro Recyclingpapier), which is working on the promotion of recycled paper. Besides supporting the initiative Lidl continuously increases the uses of recycled paper in their own premises. Lidl also started to implement a new, more sustainable technology concept for stores in 2009. Since then 150 stores were equipped with the new store concept, which saved 2,400 MWh energy and

8,250 tonnes CO2.

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3.1.13 Marks & Spencer (UK) Headquarters: Marks & Spencer (M&S) is one of the UK’s leading Employees: over 81,000 retailers whose core values are “Quality, Value, Stores: 1,118 Countries: 44 all over the world Service, Innovation and Trust”. Customers:  21 million per week Brands: 1 Reported initiatives Total Turnover: £ 9.9 billion Products: clothes, food and home M&S reported 4 commitments to the MAP 2013. products, & financial services three of which are targeted for 2012 and one is ongoing. The focus lies on energy efficiency, both in stores and deliveries, on carbon emission reduction and on awareness raising.

Major achievements made 2012

M&S major achievement by 2012 is the carbon neutrality of the company's operations. By 2011/2012, all M&S operated stores, offices, warehouses and delivery fleets became carbon neutral.

This target was reached due to a reduction of 22% carbon emission since 2007 to 572,000 t CO2/ year in 2012 and the purchase of 131,000 t of high quality carbon credits.

M&S changed the timeline for its target of a 100% share of wood based materials used for products, marketing, stationery and construction to be FSC certified, recycled or otherwise protecting forests and communities to 2015. In 2012 the share of 84% achieved in 2011 was maintained.

Further, Marks & Spencer managed to reduce their energy use by 28%, which results in 41.5 kWh/square feet and is exceeding the 25% target of 2012. In the long-term, M&S heads for an improvement of 35% by 2015. Also, the target to improve energy efficiency in the distribution system by 20% was reached by reducing the annual fuel consumption to 7 litres per 1,000 sgls for General Merchandise and 1,838 litres per store per month for food.

In regard of the ongoing commitment to open two new sustainable learning stores per year, it has to be reported, that in 2012 another store was opened (Cheshire Oaks), currently being the biggest green store, accumulating 50% less waste and no waste for landfill.

M&S and its efforts for sustainability were decorated with “the Queen’s awards for Enterprise: Sustainable Development 2012”.

Other interesting initiatives

All initiatives concerning environmental and sustainability policies arise from M&S’s “Plan A”. This

Plan reported 180 commitments, 41 of them are to be delivered in the future. CO2 systems shall be implemented refrigeration devices between 2014 and 2030.

A 35% reduction of energy usage in stores, offices and warehouses, and a 35% improvement in fuel efficiency in the distribution system is scheduled for 2015.

Water monitoring and efficiency at M&S food factories shall be improved, and all M&S farmed fish and fish feed shall be sourced from the most sustainable sources available by 2015.

Yet, M&S re-designs its “Plan A” and will publish a revised version by the end of 2013.

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3.1.14 Mercadona (ES) Headquarters: Mercadona is a family-owned supermarket Employees: 74,000 Stores: 1.411 company representing a market share of Countries: Spain approximately 13% of the total food store retail Customers:4.7 million households space in Spain. Brands: Hacendado, Bosque Verde, Deliplus, Compy Reported initiatives Total Turnover: € 19,077 million Products: food, beverage, cleaning and Six relevant commitments with ongoing timelines personal hygiene and pet food (5) and timeline 2012 (1) were reported to the MAP 2013 by Mercadona, focussing on sustainable products and awareness raising. Major achievements made by end of 2012 In 2012 Mercadona implemented a pilot project that started in 200 stores. As of june 2013 is already in all stores selling oxobiodegradable coffee capsules from their dedicated supplier Prosol, which

degrade into water and CO2 when thrown in the waste. Concerning their ongoing targets, Mercadona achieved to recover and reuse 33.000 tonnes of food waste from bread, cookies, snacks, etc. by converting it into pet feed-grade flour. Further, Mercadona started a large and ambitious program in 2012 to improve the sustainability of fish products by identifying vulnerable species and removing them from stores. In 2012 Mercadona managed to remove 5 vulnerable species. The sustainable fishing policy has been published in the bi-annual Environmental Report and distributed to all fish suppliers. The annual report covered a special section dedicated to environmental policy and actions in 2012. Other interesting initiatives In the Annual report 2012, Mercadona additionally reports about 135 million kWh saved by energy

efficiency measures which at the same time reduced the indirect emission of CO2 by 45,2000 tons. In regard to sustainable transport 466 stores are connected to silent delivery.

By increasing the rate of intermodal transport Mercadona managed to emit 11,000 tons less CO2.

Compared to 2011 11% tonnages more were transported by ship replacing CO2 intensive truck trips, and 17% tonnages less were transported in total. This is equivalent to 33.000 fewer truck trips. Furthermore, Mercadona reports of 145.500 tons of paper and cardboard and 8.870 tons of plastic recycled in 2012.

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3.1.15 Metro Group Headquarters: Düsseldorf METRO GROUP is one of the most important Employees: 278,811 international retailing companies offering a wide Locations: 2,243 range of services for private and commercial Countries: Austria, Belgium, Bulgaria, China, Croatia, Czech Republic, Denmark, customers in Wholesale Stores, Hypermarkets, Egypt, France, Germany, Greece, Hungary, Consumer Electronic Stores, Online Stores, India, Italy, , Kazakhstan, Department Stores and Real Estate Management. Luxembourg, Moldova, Netherlands, Pakistan, Poland, Portugal, Romania, Reported initiatives Russia, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey, Ukraine, Vietnam In MAP 2013 9 relevant commitments are Customers: private and commercial reported by METRO GROUP with timelines 2012 Brands: Metro/Makro Cash&Carry, Real, (2), 2013 (2), 2014 (2), 2015 (1), 2020 (1) and Media Markt, Saturn, Redcoon, Galeria Kaufhof, METRO PROPERTIES ongoing (1). Those focus on awareness raising at Total Turnover: € 66.7 billion (sales net) supplier and customer level, energy efficiency and Products: retail, wholesale own- reducing greenhouse gas emissions as well as on brands/brands for food/non-food articles development of relevant policies. (Base year: 2012) Major achievements made by the end of 2012 In 2012 METRO GROUP developed its Sustainability Vision – “METRO GROUP we offer quality of life” – showing how METRO GROUP defines responsible business. To contribute to this vision a bundle of measures were implemented. Hence, METRO GROUP installed digital energy measuring systems (Smart-Metering-System) in 95 % of all its sales locations worldwide to further improve collection and monitoring of energy consumption. The target to achieve 100% of the truck fleet meeting Euro 5 norm was not fully met. The share remained stable at 95% like in last year. The Energy Saving Programme was continued in 2012 with replacement of refrigerator fans by eco- fans, closing doors for chilling refrigerant devices, LED lighting. This helped to reduce the energy consumption by more than 3 % in 2012 over the previous year. In regard to communication, METRO GROUP published its Sustainability Report for the first time according to the standard of the Global Reporting Initiative GRI G3.

METRO GROUP reduced GHG emissions from 323 kg CO2 (in CO2 equivalent) per m² selling space in

2011 to 315 kg CO2/m² selling space in 2012. Waste was reduced from 50.7 kg/m² selling space in 2011 to 49.6 kg/m² selling space in 2012 and water consumption was reduced from 699 l/m² in 2011 to 665 l/m² selling space in 2012. Finally METRO GROUP in 2012 expanded an IFC partnership pilot project with suppliers of Metro Cash & Carry in Kazakhstan to conduct supplier trainings. Other interesting initiatives An Energy Awareness Programme was implemented in 2013 to further reduce energy consumption. In order to reduce waste at consumer level each sales line will conduct a campaign with respect to its specific product portfolio in line with the Retail Forum Agreement on Waste. Moreover, it is planned to develop a General Purchasing Policy by end of 2013. Since 2010 METRO GROUP is a member of the UN Global Compact.

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3.1.16 REWE Headquarters: Cologne REWE Group is one of the leading trade and tourism Employees: 327,600 Stores: 15,538 companies in Europe. Countries: Austria, Bulgaria, Croatia, Reported initiatives Czech Republic, Germany, Hungary, Italy, Latvia, , Romania, Russia, For progress monitoring 2013, REWE Group reported Slovakia, Ukraine three relevant commitments, which mainly focus on Brands: REWE, toom, nahkauf, PENNY, toom Baumarkt, ProMarkt, , an increase of sustainable animal products and MERKUR, BIPA, DER Touristik etc. sustainably sourced raw material, especially soy. Due Total Turnover: € 49,68 billion to the various animal species and their complex Products: trade, tourism structure of purchasing, two out of three are ongoing processes and have no specified timelines to the MAP 2013. Commitments from previous years were removed from the MAP. Major achievements made by end of 2012 REWE Group has increased the amount of sustainably sourced palm oil for private label products by 30% between 2012 and mid 2013. A further goal was to increase the quantity of segregated palm oil. However, this has proven difficult, firstly because of the numerous suppliers for the private label products and, secondly, because the manufacturers are using only small amounts of palm oil for their products. REWE Group also increased the share of sustainable cocoa in its over 500 private label products containing cocoa as an ingredient by 30% by mid 2013. The sustainable cocoa comes from sources labelled ‘UTZ Certified’, ‘Fairtrade’ and ‘Rainforest Alliance’. In order to reach these targets, REWE Group cooperates with NGOs, German ministries and industry partners on the joint establishment of the “Forum for Sustainable Cocoa” and the “Forum for Sustainable Palm Oil”. Other initiatives With their PRO PLANET label, REWE Group continues to source and promote more sustainable private label products which have a considerably lower impact on the environment and society during their production, processing or use. Overall 406 products were available in 2012; e.g. the fish range has currently 59 labelled products. In addition to that, REWE Group publishes its fish purchasing policies and its sustainable sourcing strategies on REWE Group’s website. By following these, REWE and PENNY markets manage to receive 90% of their own brand wild fish from sustainable sources. Furthermore, REWE Group started to phase out eggs from cage system housed hens in processed, own-brand food products in 2012. Since 2009, eggs from cage system housed hens are not being sold in REWE Group supermarkets anymore. The overall aim behind these initiatives is always to support sustainable mass consumption and to offer products with sustainable added value. With the additional aim to strengthen the sourcing of regional products, several so called regional managers have been commissioned to promote the local purchase and sales in all markets.

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3.1.17 Royal Ahold Royal Ahold is an international retailing group Headquarters: Amsterdam based in the Netherlands. The core business is food Employees: 225,000 retailing and online grocery delivery. Stores: 3,074 Countries: Belgium, Czech Republic, Reported initiatives Germany, Slovakia, Netherlands, United States Royal Ahold reported 17 ongoing and 2012/2013 Brands: Albert , Albert Heijin, albert.nl, targeted commitments mainly focusing on safe and Etos, Gall & Gall, Giant Food, Giant sustainable products (Global Food Safety Food Stores, Hypernova, Martins Food Markets, Peapod, Stop & Shop Initiative), reduction of the companies´ and supply Total Turnover: € 32.8 billion (net sales) chain environmental impact, reduced energy usage Products: food retail and GHG emission, improved waste management and waste prevention, sustainable packaging as well as communication to customers and stakeholders via CSR reporting, forums, surveys and meetings. Major achievements made by end of 2012 Royal Ahold managed to have 84% of own-brand food suppliers to be certified against Global Food Safety Initiative (GFSI) standards in Europe. 48% of production sites in high-risk countries that supply our European banners had been audited against Business Social Compliance Initiative (BSCI) or an equivalent program at the end of 2012.(Target 100%). The targets to develop a group metric to measure food waste, a global approach with guidelines for sustainable own-brand packaging, and to eliminate free disposable checkout shopping bags in Europe, were achieved. The group metric for food waste, resulted levels of 1-2% of total food sales. Royal Ahold reduced its energy consumption by 15% CO2/m² (2011: 10.5%) compared to 2008 by means of more efficient heating and cooling systems, reduced refrigerant leakage, skylight windows, or LED lighting. The Retail Declaration on Energy Efficiency and Renewable Energy of ERRT is

continuously implemented. 7 Albert Heijn stores were using CO2 by 2012, and refrigerant leakage was further reduced from 12.6% in 2011 to 11.2% in 2012. The load factor of Albert Heijn’s trucks increase by 3% compared to 2011 to 79% in 2012. The fuel usage per kilometre in 2012 was down 3% on 2011. In addition, Royal Ahold re-used, recycled or recovered 57% of its total waste in 2012. 95% of Albert Heijn’s tea sales and 83% of the own-brand sales of coffee, were certified by 2012. Ahold continued awareness raising campaigns related to customers’ and suppliers’ environmental footprint. Other awareness raising projects were surveys (customers and employees) and meetings with investors, including socially responsible investment (SRI) analysts. Other interesting initiatives For 2013 operating companies shall implement a communication policy to encourage customers to reduce, re-use and recycle. As part of Albert Heijn’s 125th anniversary, the AH Foundation set several growth targets for 2015: to work with over 25 suppliers, be active in over 10 countries, and cover 100% of products sourced from Africa. For more information on the AH Foundation please visit http://www.ah.nl/meerdoen/mensen/ahfoundation (only in Dutch)

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3.1.18 Sonae SONAE is the biggest retail company in Portugal with major partnerships in the areas of Telecom, Headquarters: Maia Employees: Around 40,000 IT/IS & Media (Sonaecom) and Shopping Centres Stores: 1,016 (Sonae Sierra). Countries: Portugal, Spain, Angola, China, Egypt, Turkey, , United Arab Reported initiatives Emirates, Lebanon, Bahrain, Kuwait, Sonae reported 20 relevant commitments to the Kazakhstan, Qatar, Jordan (includes operations, third party services, MAP 2011 with timelines set for 2012. Clearly, the representative offices, franchise focus is set on sustainable building and products, agreements and partnerships) water and waste management as well as packaging, Brands: Bom Bocado, Book.It, Continente, Continente Bom , Continente Horeca, improved logistics, energy efficiency and carbon Continente Ice, Continente Modelo, Meu emission reduction. Super, Pet&Plants, Well’s, Loop, Modalfa, Sport Zone, Worten, Worten Mobile, Zippy Major achievements made by end of 2012 Total Turnover: € 5,400 million Sonae managed to increase the number of audited Total Sales Area: 987,000 m2 Products: food, sportswear, consumer suppliers from 1,400 in 2011 to 1444 in 2012, and electronics, etc. maintained the certification of the Continente Producers club. 249 producers were certified according to those standards. The certification for international suppliers was implemented in 2012, but slowed down due to the negative economic conditions in Portugal. The International Guide of Environmental Management was finished in 2012, and is waiting for approval. To ensure product quality a sensory analysis has been implemented in 2012 in order to foster, monitor and guarantee the quality of Continente products during their life-cycle. Sonae managed to reduce its water usage by 9% and energy consumption by 12%, and kept its retail waste recovery rate at 77%. Energy generation from renewable resources was increased from 194.6 MWh in 2011 to 2,044 MWh and 1% of appliances using R22 refrigerant have been replaced (1% of appliances remaining). The share of Euro IV and V trucks was increased by 2% to 89% in 2012. Sonae continued projects/campaigns projects providing positive societal impacts on health and sports, education, environmental awareness, culture, science and innovation and social solidarity, representing a total investment of € 10.2 million. In addition 2,791 employees were engaged in about 300 volunteer work initiatives, helping 180 non profit social organizations. Sonae published again its Sustainability report (GRI52) with information on waste reduction, energy

consumption, water consumption and emissions (GHG/CO2). Other interesting initiatives To improve communication Sonae established the “Portal do Fornecedor”53 (supplier portal), improving speed and access to information, preventing loss of information and reducing costs (operations and administration).

52 http://www.sonae.pt/fotos/editor2/20130621_rs2012_indicadoresgri_vf.pdf

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3.1.19 TESCO Headquarters: Cheshunt, Great Britain Employees: over 530,000 Tesco is the third largest retailer in the world. Stores: over 6,700 Countries: China, Czech Republic, Reported initiatives Hungary, India, Ireland, , , Poland, Slovakia, South Korea, , Tesco reported 11 commitments to the MAP 2013, Turkey, United Kingdom, United States focusing on waste minimisation, energy efficiency, Customers: Tesco regularly delivers over carbon reduction and raising customer awareness on 75 million shopping trips a week sustainability related issues. 4 of these commitments Brands include: Dobbies, Home plus, Life Space, one stop, Tesco Bank, we7, were scheduled for 2012. The others are longer-term Blinkbox targets. Total Turnover: £ 72.4 billion Products include: Baby & Toddler, Bank, Major achievements made by end of 2012 Books, DVD & CDs, Clothing, DIY & Car, Tesco achieved both their target to reduce CO2 Fresh food & Groceries, Garden, Gifts & Jewelry, Health & Beauty, Home & emissions from new stores built after 2006 by 32% Furniture, Home Electrical, Sports & and their target to reduce emissions from existing Leisure, Technology & Gaming, Toys stores by 3.5%. This was achieved by reducing refrigerant gas leakage and continued investment in energy efficiency. Tesco also reported its water footprint for the first time: 28.7 million m3 of water in stores distribution centres was used, giving an intensity of 0.22m3/ft2. In the UK they have halved their emissions per case of good delivered in five years by following the “F plan54”. Tesco also support their supplier network to reduce their carbon footprint and improve resource efficiency through the Tesco Knowledge Hub; an online platform comprising of user-generated information, allowing suppliers to share knowledge and best practice. Tesco incentivises greener customer behaviour through rewarding customers with Green Clubcard points for bag re-use and recycling, offers tips for greener living (e.g. recipe ideas for leftovers on their website), provides recycling facilities and uses low carbon packaging where possible. As part of their broader sustainability agenda, Tesco continues to invest in the Sustainable Consumption Institute in – a global centre of excellence focusing on sustainability. Other interesting initiatives Tesco have launched a new business value ‘we use our scale for good’. This new value is about a greater contribution on issues that really matter to people and communities around the world, building on Tesco pioneering work on carbon reduction. It complements two long-held values: No one tries harder for customers and we treat everyone how we like to be treated.

Tesco have outlined three big ambitions and four essentials that show how they will use their scale for good. The three big ambitions are to create opportunities for millions of young people; to help and encourage colleagues and customers to live healthier lives and through that to help tackle the global obesity crisis; and to lead in reducing food waste globally. The four essentials, are trading responsibly, reducing their impact on the environment, being a great employer and supporting local communities.

53 http://www.sonae.pt/gca/index.php?id=28 54 fuller cages and pallets; fuller trucks and containers; fewer miles and fuel economy

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3.2 Achievements made by Retail Associations

3.2.1 APED (PT) APED - Portuguese Association of Retail Companies was founded 32 years ago. APED is an employers association of national scope, which includes companies from the food and non-food retail sector and from wholesale. APED is composed of 117 Member Companies, including all major international players. In 2012 APED members achieved an overall turnover of 15,200 million, employed a staff of 86,350 employees and operated 2,876 stores. Fields of activity include the textile and food sector (26% of APED member companies), sports, consumer electronics, furniture, DIY, etc. APED activities are guided by protection of free competition and free market access for all economic agents, presentation of legal solutions to the problems of to the trade and of high turnover products in the system of free service. A final task of APED is the representation of the of its associates, towards national and foreign public and private entities. Reported initiatives and major achievements made APED aims to promote continuous improvement in the retail sector´s environmental performance, through the implementation of environmental management programmes, taking into account the technical and scientific progress, consumer’s needs and expectations and compliance with current legislation. APED reported 5 relevant commitments to the MAP 2013 with timelines 2012 (2), 2013 (1), ongoing (1) and not specified (1). The commitments relate to reducing environmental impact of plastic carrier bags, awareness raising on food waste, energy efficiency applied to lighting, and also reinforcing cooperation with stakeholders. APED postponed its target to assess the potential of waste oils for the GHG emissions resulting from the production of biodiesel to 2013. The project managed by APED in previous years, regarding energy efficiency applied to lighting, was successfully concluded in 2012 with an execution rate of 99%. The voluntary agreement to reduce potential environmental impact of plastic bags was signed by 13 member companies, from food and non-food retail sector. The signatories undertake to adopt measures, according to the nature of their activities, in order to promote a change in behaviour.

In this context, APED’s reusable bag and members own brand bags are promoted as alternatives for traditional carrier bags, and as a way to improve their environmental footprint. Further, APED has been taking action in the “food waste” issue and is carrying out an awareness raising campaign, in collaboration with its member companies. Other interesting initiatives

Regarding future activities, energy efficiency is one of the areas which APED intends to focus on, together with other relevant issues such as awareness raising campaigns.

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3.2.2 Confederación Española de Comercio CEC (ES) The Confederation of Commerce of Catalonia, CCC, is affiliated to the Spanish Confederation of Commerce, CEC. CCC is a business entity, representing and promoting the general interests of commerce for SMEs and freelance services in Catalonia. Founded in 1985, CCC currently brings together all the organizations at sectoral and territorial level (350 guilds and commerce associations) representing 90,000 retailers. The organization constantly promotes initiatives aimed at the Catalan merchants in order to be more competitive on the global scene in the developing industry. For this reason, the CCC is also present in political and social settings to strengthen trade.

Reported initiatives CCC-CEC reported six commitments with timeline 2012 to the MAP 2013. Commitments target issues awareness raising, the energy efficiency and to promote the sales of plants requiring low levels of water hence applying sustainability criteria. Multiple other targets are designed to be achieved by 2014 and described in “Other interesting initiatives”. They mainly relate to energy efficiency, carbon and transport emission reduction as well as the reduction of paper consumption.

Major achievements made in 2012

The carbon footprint has been calculated in relation to the energy consumption, transport, travels and paper consumption for CCC. Moreover, CC partners were informed and educated relating to their calculation of CO2 footprint via circulars, newsletters, meetings of our committee on energy, environment and sustainability. The reduction of private transport of employees reached 85%, minimising the use of private transport to 15%.

80% of companies used loading/unloading zones for the supply of goods. Also, the commitment to inform companies about the environmental impacts of construction material has been implemented by 50% of the companies being part of the confederation. The 2010 target of 80% of plant sellers promoting plants with low water consumption was successfully further increased to 85%.

Other interesting initiatives

CCC-CEC further committed to reduce the overall energy consumption by 6% until 2014 and transport emissions by 8%. Paper consumption shall be reduced by 8%. Concerning carbon emission

half of the partners shall reduce CO2 emissions by 2014.

The 2012 guide “Open to sustainable transport. The contribution of trade and services sector” addressed to traders and consumers, includes good practices to do more sustainable the transport of goods and waste55.

55 http://www.confecom.cat/wp-content/uploads/2013/01/Guia-Transport.pdf

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3.2.3 Euro Coop Euro Coop is the European Community of Consumer Co-operatives, whose members are the national organisations of consumer co-operatives in 18 European countries and 1 non-European country. Created in 1957, Euro Coop today represents over 4,500 local and regional co-operatives, whose members account for more than 30 million consumers across Europe. Consumer co-operatives are enterprises owned by consumers, acting mainly in food retail. Their overall turnover amounts to more than €74 billion, with 36,000 points of sale and 450,000 employees. Its Secretariat is based in Brussels. ANCC Coop Italia, the S-Group Finland, Kooperativa Förbundet in Sweden, Coop Norway and The Co-operative Group in the UK are members of Euro Coop.

Reported initiatives and major achievements made by 2012

Since 2009, Euro Coop publishes a yearly report as a follow-up to the project “Climate Change and Consumer Co-operatives: Taking the Challenge forward”. The report56 showcases a broad range of initiatives carried out by Euro Coop members to curb Climate Change effects and therefore contribute to a more sustainable production and consumption. Furthermore, Euro Coop’s members and workers are informed and motivated to reduce their own carbon footprint as an ongoing commitment.

Other interesting initiatives

Euro Coop carries out a whole series of lobbying activities. These include, among others, the publication of position papers, press releases, reports as well as the organisation of conferences and workshops on ad hoc sustainability issues. The annual Activity Report57 describes the following sustainability actions for 2012:

 Participation in the EU Retail Forum for sustainability, where it worked with other retailers and the EU Commission on issues regarding the environmental sustainability of products and operations;  Participation in the EU Food Sustainable Production and Consumption Round Table working with other stakeholder associations representing the whole supply chain and the European Commission on the issue of the environmental impact of food products and environmental communication;

 Sustainable Fishing. Euro Coop was a member of the Alliance for a Common Fisheries Policy Reform along with WWF, the fish processing industry, and the European chefs association working towards a more sustainable fisheries policy;

 Sustainability Policy Working Group (SPWG): The SPWG met several times during the year and members had the opportunity to discuss the main issues regarding sustainability. Other areas of work in the sustainability policy area included: Fair Trade, waste, including food waste, organic farming and GMOs.

56 http://eurocoop.coop/dmdocuments/publication_report/2012.08.22_CC_project__FINAL.pdf 57 http://eurocoop.coop/dmdocuments/publication_annualreport/ActivityReport2012_EN.pdf

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3.2.3.1 ANCC/Coop Italia Coop Italia is a leading company in the world of Italian retailers (market share 18.5% and 2012 preliminary sales of about €13.5 billion). Coop is a holding company but also a system of enterprises, , acting on a regional or national level. The members are stand-alone companies, owners of shops and facilities, but associated with policies and strategies. By December 2012, the member cooperatives had a base of over 7.9 million members. Coop can count on a network of 1,474 stores (1,123 COOP supermarkets, 102 IPERCOOP hypermarkets, 249 DICO discounters) distributed in 17 regions. Reported initiatives and major achievements made ANCC/Coop Italia commitments are focussing on waste prevention, recycling, sustainable products and green energy. Communication is focussing on CSR reporting, leaflets, teaching material for schools, special training for members of some co-operatives, a consumer magazine, free phone service, and a website. In 2012 packaging of two further products (201 in 2011) was optimized with "3R" interventions saving approximately 5,800 tons of packaging material. 65% (2011: 60%) of all product packaging was labelled with disposal information. The organic and ecological “Vivi Verde” product line was further expanded to 475 products (449 in 2011), including 14 skin care products since May 2012. In 2012 the ‘Buon fine’ (‘Good end’) donation project involved 471 shops, 10 superstores and 20 supermarkets and allowed the donation of 276 tonnes of food products (1,556,864 ). The number of FSC labelled paper products remained almost stable with 15 in 2012 (16 in 2011); different foil-lined packages, containing cellulosic FSC certified elements, have been added to the FSC labelled paper products. Coop Italy launched the “maximum transparency on water” campaign to raise awareness on water sustainable consumption. Specific tables on chemical and physical features of tab water were shown in 500 Coop stores, and 1 million brochures were distributed to consumers. A new supply source from the Cottian Alps was added to Coop own brand range, and visibility to local mineral water was increased. Consumers were informed about distance between sales points and water sources and the mineral water’s content. The quantity of plastic for own-brand mineral water bottles was reduced. The supply sources of its own-brand waters which were EPD® (Environmental Product Declaration) certified have been doubled. In spite of the availability problems existing on some purchasing markets, fish and tuna products, labelled with “Dolphin Safe” or “Friends of the sea” have been maintained. Coop ranked fourth position in a Greenpeace award on sustainable fishing for tuna fish, maintaining the first place among the retailer’s private labels. The sales of disposable bags were further reduced to 224.5 million (2011: 233m) produced in compostable material in line with the specific law EN 13432, whereas 7.2 million (2011: 6.5m) reusable bags were used. As regards energy efficiency, Coop has currently 136 photovoltaic power plants, 38 more than 2011. For consumers, Coop continued the PROMISE (Product Main Impacts Sustainability through Eco- communication) campaign/project by monitoring the outcomes of the initiatives carried out since 2010.

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3.2.3.2 S-Group (FI): S-Group is a Finnish retailing cooperative organisation, founded in 1904. It consists of 21 regional cooperatives active all around Finland in the markets for groceries, consumer durables, service stations, hotel and restaurant services, agricultural supplies, and car sales. The group has businesses in Finland, , Latvia, Lithuania and Russia. The S-Group currently owns about 1,697 stores with an active staff of more than 43,417 employees and 2,055,227 consumer-members. The annual total turnover in 2012 amounted to €12,037 million.

Reported initiatives and major achievements made

The S-Group (SOK) focus is on environmentally friendly product packaging, organic products, minimisation of food waste, a reduced carbon footprint, renewable energy and energy efficiency. Furthermore, S-Group continues with communication activities such as campaigns, website information, CSR reporting and review as well as with information and education activities for employees and consumer-members.

540 million aluminium cans and 153 million plastic bottles were recycled via deposit schemes. Sales of organic grocery products increased by 26% compared to the previous year, and >500 new organic products were added to the assortment, which now comprises 2,200 products.

The stores in Finland carried 881 products with the Nordic Ecolabel (Swan). New Swan-labelled products (mostly textiles) are frequently added to the private label range. In addition, 915 textile products carried the Öko-Tex product safety label.

For years now, the S Group has focused on replacing palm oil; S Group’s private label cosmetics line, contains no palm oil. In products in which palm oil cannot be replaced 12% of palm oil used in private label products in S Group’s grocery trade is certified.

Waste recycling rate increased from 82% to 85%. SOK also participated in MTT’s Climate Communication II project, aiming at the generation and communication of comparable carbon footprint data for food products.

For 2012, the energy consumption in stores improved by 3.9% in comparison to last year.

In 2013, the share of wind power in their electricity consumption will be 10%, and by the end of 2014, the share will have reached 25%.

Inex Partner’s new consumer goods logistics centre in Bastukärr, Sipoo, completed in spring 2012, uses ground heat(50% of demand) and bioenergy (50%) for heating and cooling.

All tropical wood furniture sold by the S-Group bears the FSC certification. In addition, the Group’s Kodin Terra, and S-Rautamarket chains no longer sell parquet made of tropical tree species.

SOK continues to issue a monthly magazine and to inform via its website in terms of environmental issues.

S-Group updated their purchase policy regulations restricting the sales of threatened species of fish and has published an Annual Report with environmental information in 2012 as well as a review of its Responsibility Review of 2012.

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3.2.3.3 Kooperativa Förbundet (SE): Kooperativa Förbundet (KF) is a cooperative based business with Coop as its core retail activity. 3,3 million people are members of one of the 39 nationwide consumer societies. Reported initiatives and major achievements made

KF has set a clear focus on sustainable products and consumption, environmental and social responsibility in the supply chain58. Highlights include the goals to become carbon-neutral by 2020 by offsetting existing direct emissions and become leader in the sales of Fairtrade products in the Swedish market.

More specifically, in 2012 emissions fell by 9 percent compared with 2011, and the number of Fairtrade products increased by 24.5% compared to 2011. In addition to that, Coop has the industry's largest share sale of ecolabeled and organic products in Sweden and has also set the target to reduce energy consumption/m²of sales area by 30% by 2020.

In 2012 Coop Sweden also began cooperating with the Food bank “Allwin” supplying the needy with food that has not been sold. 140,000 meals have been distributed in 2012 through this partnership.

Other interesting Initiatives with respect to sustainably sourced fish Coop is promoting sustainable fishing and has decided only to sell fish and seafood from sustainable fishing. It continued to do so in the course of 2012, following its innovative fishing strategies. This means that only fish from sustainable fish stocks that were caught with certain fishing methods and complying with strict environmental criteria are sold in the stores. This sustainably sourced fished is on a specific list, which is updated twice a year by the Coop's internal team of experts in consultation with outside experts. A broad range of KRAV and MSC-certified fish and shellfish is offered. In addition, Coop is promoting traceability of seafood sourced in the Baltic and on the Swedish western coast through the Närfiskat certification. Also Coop requires its providers to report where and how fish are caught. Farmed fish producers are required to explain production and feeding methods. All of Coop Sweden’s stores are KRAV-certified, meaning that they are required to feature a broad range of organic products. Obtaining this certification implies that the staff has received basic training about KRAV and organic production

58 Central suppliers have to work in line with the internal KF code

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3.2.3.4 Coop Norway Coop Norway Trade (Coop Norge Handel) is a subsidiary of the Norwegian Coop Norge Group, and Coop Norway is owned by 117 independent local cooperatives. These 117 independent local cooperatives own and run over 1,100 stores in Norway, and the cooperatives themselves are owned by 1.3 million citizens of Norway. Coop in Norway currently has over 20,000 employees with a total turnover for local cooperatives and the Coop Norge Group of €5.1 billion.

Reported initiatives and major achievements made

Coop Norway has set a clear focus on environmentally friendly product packaging, sustainable products and eco-efficiency as well as reduced GHG emissions, waste management and recycling, and information for customers. The topic of awareness raising, concerning environmental issues, is also given particular attention.

In Coop Norway's distribution centres, more than 95 % of the waste was recycled or recovered in 2012 whereas, as concerns food waste, Coop Norway is engaged in a business-led project that aims to reduce the amount of edible food waste by 25 % before 2015. Also, Coop Norway established CO2 as standard refrigerants when refurbishing or building new stores. Widespread implementation of doors on fridges and cabinets are also contributing to increased energy efficiency.

Coop Norway continued to label any new packaging with disposal instructions. Bags for life and degradable bags are promoted via exclusive presentation at the cashier desk. Single-use plastic-bags are only provided on request and charged for with a fee. In 2012, the number of eco-labelled products (Nordic Swan) increased to 65 in 2012 (2011:64) and, just to mention a specific item, 40% of the paint sold was eco-labelled. Also the number of Swan-labelled outlets has again increased over the year 2012. Coop Norway’s approach to tropical timber has been to phase it out from all timber goods and replace it with either other timber products or other materials. Coop Norway also adopts a 100 % FSC strategy. Throughout the years, it has maintained a close dialogue with the NGO Rainforest Alliance, which specializes in tropical forestry issues.

As to products from organic farming, Coop Norway launched a "same price campaign" on organic fruits and vegetables that began in February 2012. Customers pay the same price for organic fruits and vegetables as for conventional products.

Coop Norway implemented double layers of pallets on truck transportation in order to increase volumes on each truck.

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3.2.3.5 The Co-operative Group (UK) The Co-operative Group is the UK’s largest mutual business, owned not by private shareholders but by over 7.6 million consumers and some 80 independent co-operative societies. It is the UK’s fifth biggest food retailer, the leading operator and a major financial services provider, operating both The Co-operative Bank and The Co-operative Insurance. Among its other businesses are Britain’s number-one funeral services provider and its largest farming operation. Reported initiatives and major achievements made by end of 2012 Gross greenhouse gas emissions (GHG) have reduced by 6% (43% since 2006), with net emissions having reduced by 9% (72% since 2006. The Group and carried out 375 projects (£7.3m ) to improve energy efficiency in stores. TCG replaced fluorescent lighting with energy efficient LEDs in 811 stores and increased the total number of stores with doors on fridges to 107 (2011: 18). On-site renewable energy installations mee already 5% of the energy requirements. 55% of own-brand wild fish and seafood was sourced from MSC- certified fisheries (2011: 51%). The Co-operative Group banned 2 more pesticides over the year 2012, from 32 to 34, but targets banning of endosulfan and paraquat now for 2013-2014. TCG-UK reduced transport-related CO2e emissions by 2 % (28 % since 2006) and reported mileage by 4 % (26 % since 2006). Home delivery mileage decreased by 1 million miles (630 tonnes of CO2e), while business travel mileage decreased by 6 million miles and 2,653 tonnes of CO2e (a 20% decrease from 2011). A new “cycle to work scheme” has been initiated, and 344 interest-free public transport tickets loans have been issued worth £ 379,000 for the Group’s employees, compared to 406 worth £ 361,000 in 2011. The annual reduction in energy consumption was achieved through a 5% reduction in electricity usage, despite a small increase in gas consumption (8%) and equates to a £62,900,000 cost saving compared to 2006 consumption. TCG used of its own-brand products, compared to 4,729 tonnes in 616 products in 2011. Palm oil used in TCG products (4,862 tonnes in 616 products) was certified as sustainable under one of the certification schemes developed by the RSPO via GreenPalm credits. 49 % of the Group’s palm oil was obtained through segregated, traceable or identity-preserved CSPO sources.

The Group rolled-out an online environmental training programme (energy, waste, initiatives) to over 13,000 store managers and supervisors. Water consumption is reported across about 80% of the estate (up from 63% in 2010).

The Co-operative Group mobilised 190 businesses and civil society organisations in 2011 to sign an open letter to government ministers, asking that mandatory greenhouse gas reporting be introduced for large companies. In June 2012 the government announced all companies listed on the London Stock Exchange will be required to report their GHG emissions beginning in April 2013. In collaboration with the Forum for the Future, TCG brought together civil society organisations to form the Community Energy Coalition. February 2012, it published a joint ‘vision for community energy’, and the report ‘Co-operative renewable energy in the UK – A guide to this growing sector in partnership with Co-operatives UK’. In October 2012, the Coalition launched the ‘manifesto for a community energy revolution,’ In November 2012, TCG arranged for Early Day Motion to be tabled in Parliament. By February 2013, 97 MPs had signed. TCG in the UK launched the Green Schools Revolution in 2011, and has registered over 5,300 schools to take part by the end of 2012. The programme drew together a range of existing community projects, including From Farm to Fork, Energy Works and Walking Buses, as well as offering a range of new teaching materials on themes of biodiversity, fair enterprise and sustainable buildings, as well as opportunities for school visits and participation.

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3.2.3.6 FCD (FR) The French Retail Association (FCD) is composed of trading companies and suppliers. It represents the interests of its members in their relations with policy makers, economic and social organisations, at national or European level. FCD represents a broad range of retail companies including e- commerce, small local shops for daily needs, cash and carry restaurants, super- and hypermarkets and hard discount stores. FCD members account for 30,000 stores with 750,000 employees and a total turnover of €170 billion in 2012.

Reported initiatives and major achievements made

FCD reported 8 environmental commitments to the MAP 2013 with timelines 2012 (2), 2013 (1) and ongoing (5). The commitments focus on energy efficiency and consumption, carbon emission, sustainable products, waste reduction and waste management. By 2012, FCD members completely phased out incandescent light bulbs, achieving the EU regulation prematurely. In regard to sustainable products, FCD members managed to increase the share of organic products over the total sale of food products by 1.51% in comparison to 2011 despite a lower demand due to the economic crisis and after an average growth of 18% over the last four years. To reduce energy use in stores refrigerated display cabinets are progressively closed. The objective is to close 75% of them by 2020. In 2012, more than 6 000 (2011: 3800) combined and well-designed collection containers for WEEE, batteries, cartridges and cell phones were installed nationwide to promote recycling and intensify the in-store take back of WEEE. Retailers now collect 120 000 tonnes on a yearly basis and account for 27% of total WEEE collection.

Other initiatives

In order to better know and control carbon emissions from stores, an implementation guide was established including a specific method of self-evaluation for stores above 1500 m². This implementation guide has been updated and will be presented in October 2013, at a conference organized by ADEME.

4 retailers (Auchan, Boulanger, Casino, Carrefour) signed a convention with the French Ministry of Environment in 2011 to improve collection of printer cartridges (for recycling). The volume collected in stores increased by 35% (weight) in 2012. The retailers are committed to annually report data on quantities collected, to increase collected quantities by 5% each year (achieved in 2012) and by 10% each year from 2013 and onwards. Furthermore the objective to achieve a reuse and recycling rate of 70% and an energy recovery rate of 95% by the end of 2015 was already achieved in 2012.

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4 Verification of achievements by store visits

As in the previous year, the emphasis of the store visits was on exemplary snap-shot verification of targets set for this reporting year. In addition retailers had the opportunity to highlight particular achievements made in the visited store. The following selection criteria were applied:

 Target 2012 or ongoing

 Direct visibility in each store

 Innovative and model character in comparison to the overall range of activities

 Innovative in terms of the EU region (initiatives in countries not yet covered)

 Cooperation of retailer (agreement to suggested store visit/support in preparation of visit) From all retailers with relevant commitments, finally ten Retail forum members accepted store visits based on the suggestions made by the project team.

Table 4-1: Selected retailers for store visits and their related focus topic of the visits Retailer Location WM TL SP EE PM P Tesco Cheshunt, United Kingdom x Headoffic e IKEA , Ireland & , Northern Ireland, x CCC Barcelona, Spain x x Lidl Munich, Germany x x x Eroski Bilbao, Spain x x Auchan Madrid, Spain & Paris, France x x FCD Paris, France x x x C&A Vienna, Austria x x x Colruyt Halle, Belgium x x Royal Antwerp, Belgium x x x x Ahold Total 5 2 7 5 1 3 Key to focus topics WM: Waste Management EE: Energy efficiency TL: Improved transport and logistics PM: Promotion measures SP: Sustainable products P: Packaging

Further information and store visit reports can be found in the Annex II to this report.

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5 Evaluation of the up-take of issue paper recommendations

In order to assess the effectiveness of the Retail Forum activities and its impacts and implications on daily practice in the retail sector, it is important to know how the recommendations included in the Retail Forum issue papers have changed the sustainability performance in daily business and how the recommendations are reflected in reported commitments.

The allocation of commitments to the relevant Issue Paper topic was done by means of keywords contained in the database. In order to ensure a reliable comparison of commitments account for in the Issue Papers, the first monitoring years´ commitments have been allocated to the Issue Papers according to the same classification system (topic areas) as has been used this year.

Evaluation matrices are provided in Annex III.3 to this report.

5.1 Energy Efficiency of Stores (September 2009)

The issue paper is focusing on the energy efficiency in the operation of modern retail outlets. The number of retailers reporting on energy efficiency measures is high overall (20-23 retailers). It was equally high in 2010 and 2011 (shortly after the paper was published) and dropped slightly towards 2013.

In terms of ambition and number of commitments one can observe a peak in commitments in 2011, and a decrease towards 2012. Reported targets include several key-topics such as energy saving, energy reduction, heating, cooling, lighting and monitoring. On the other hand a some movement towards more ambitious commitments can be identified for 2012/2013 compared to 2010 and 2011.

Basic commitments aim to general measures like a reduction of energy consumption or implement energy efficiency measures in stores. Advanced commitments include more comprehensive initiatives like e.g. an expansion of collection and monitoring of energy consumption data with the help of digital energy measuring systems (Smart-Metering-Systems). Please visit Annex III.3 for further information.

5.2 Optimisation of Distribution Systems (December 2009)

The reflection of transport and distribution issues in REAP reporting is less pronounced than the energy aspect. Overall it is around or below 50%. The number of reporting retailers and number of commitments was highest in 2011 (21), was equal in 2010 and 2012 (16), and is lowest so far this year. Targets relate to transport, distribution platforms and procurement. The number of advanced commitments is low. Overview figures and calculation tables are presented in Annex III.3.

5.3 Marketing and Effective Communication (April 2010)

This issue paper focuses on the influence that communication and marketing on the environmental aspects of sustainability can exert on the final “average consumer”. Participation of involved retailers

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and the total number of commitments reported increased from 20 in 2010 to 26 in the reporting period 2012 and 2013. In summary a strong engagement (76%) compared to other IP topics can be observed. Compared to 2010, when approximately 42 initiatives were registered, the number of reported activities in this area has more than doubled until this year. The number of advanced commitments rose slightly. Nearly half of them are counted among the advanced commitments, such as expansion of existing initiatives including Farm Links & education schemes or join the French national experimentation for environmental information on products. Basic commitments comprise measures regarding awareness raising and training. For overview figures and calculation tables please see Annex III.3.

5.4 Timber (June 2010)

The paper focuses on the sourcing, processing & transport phases of wood. The number of retailers reporting about sustainable wood initiatives is low. After a peak level in reporting of 33% in 2011, the reported involvement dropped to 5% by 2013. Also in terms of number of commitments a decline by almost 50% (16 to 9) was observed from 2011 to 2012/2013. This year for the first time an advanced commitments was observed. Overview figures and calculation tables are presented in Annex III.3.

5.5 Environmental LIFE CYCLE Information for Products Used Every Day in Households (November 2010)

This paper addresses environmental life-cycle information and approaches from the perspective of business to business interactions. This includes the assessment of product life-cycles and the identification of criteria related to hotspots. Life-cycle information also provides a key input for labelling. This paper focuses on products used every day in households, both consumables such as cleaning products as well as durable items such as washing machines or televisions etc. and their packaging.

Please note: Life-cycle information in a business to consumer context is discussed on the issue paper on labelling

The reflection of life-cycle aspects in reporting to REAP is limited, but increasing. The number of retailers actively reporting increased from 20% in 2010 to 30% in the reporting period 2013. The number of reported commitments however, rose from 10 (2010) to 24 (2013). Current targets relate predominantly to certification processes and audit schemes. Due to the high number of different formulated targets no distinction between basic and advanced commitments was made. Further details are presented in Annex III.3.

5.6 Measurement and reduction of carbon footprint of stores (January 2011)

This issue paper refers mostly to direct emissions such as heating and refrigerant leakage (scope 1) and indirect GHG emissions from consumption of purchased electricity, district heating/cooling or steam (scope 2) of the GHG protocol referred to as “obligatory” in the GHG protocol guidelines. As these activities commonly relate to energy usage there may be some crossover with the ‘Energy

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efficiency of stores’ issue paper.

The number of retailers reporting on Carbon emission reduction initiatives has remained almost stable from 2010 (before elaboration of issue paper) to 2013 (58-62%) at a relatively high level with a small increase (73%) in 2011. In terms of number of commitments we observe a peak in reporting for 2011 (55), and a remarkable decrease in reported initiatives down to 32 in 2013, which is below the level in 2010 (39). The share of advanced commitments was highest in 2011 and 2012 (30%). In 2013 only 12% of the commitments were classified as advanced. Basic commitments comprise general reduction commitments such as reduce carbon equivalent emissions (CO2) or maintain reduction in carbon footprint. Commitments related to “generation of renewable energy” was highest in 2010 and 2011 (15 resp. 21 initiatives) and decreased strongly until this year (4 commitments). Further details are presented in Annex III.3.

5.7 Labelling (June 2011)

This issue paper addresses environmental labelling of consumer products (and packaging). It looks into all on-pack, voluntary environmental labels (type I, II, III) addressed to the “average consumer". About 50% of the retailers or retailer associations reported commitments regarding `labelling´ during the period 2010-2013. The number of commitments increased from 25 in 2010 to 42 in the year 2012 and slightly decreased again in 2013. The share of advanced commitments (e.g. reducing pesticide derogations or developing pilot projects of specific labelling) remains low compared to the basic commitments such as expanding the sales of some ecological brand. Further details are presented in Annex III.3.

5.8 Packaging optimisation (November 2011)

This issue paper focuses on optimisation in terms of trade-off between reduction, requirements and benefits (i.e. recyclability, safety, resistance, transportability etc.) for primary (packaging for individual units to be sold), secondary (i.e. boxes, family packs), transport packaging (i.e. foil, pallets…), and service packaging (i.e. shopping bags, wrapping paper). Approximately half of the REAP members reported commitments related to packaging throughout all years, and also the overall number of commitments remained stable (24-20) with a slight decline in 2013. Basic commitments such as the promotion of alternatives to non-reusable bags or the reduction of the number of single carrier bags dominate, but the number of advanced commitments (e.g. global approach with guidelines for sustainable own-brand packaging) somewhat increased in 2012/2013 (4). For figures and calculation tables see Annex III.3.

5.9 Sustainable seafood (June 2012)

This issue paper deals with the environmental impacts of fishing and aquaculture, the safeguard of existing stocks and measurements to balance the growing demand for seafood products and the overfishing threat. The involvement of retailers seems to be at a relatively low level with a slight increase in rates of reporting REAP members from 12% in 2010 and 2011 to 15% in 2012 and 2013. However, this figures changes when investigating food retail only. Almost half of the retailers from

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the food sector have reported at least once a corresponding commitment during the four years. Within the REAP reporting the total number of commitments was highest (9) in 2012, whilst numbers range between 5-7 before and after. Since start of the Retail Forum only one commitments (developing and publishing company-specific sustainable seafood policies, implementation plans, and respective guidelines) have been classified as advanced. For figures and calculation tables see Annex III.3.

5.10 Waste Minimisation (October 2012)

The main focus of this issue paper is quantitative and qualitative waste prevention and specifically, waste streams in shops on which retailers have a direct impact. Food waste prevention and the recycling of electrical and electronic products (waste of EEE) are the main topics discussed. For figures and calculation tables see Annex III.3.

Note: The optimisation of packaging and the recycling of packaging waste are covered by the issue paper on packaging (No 8).

Waste minimisation has been an issue for retailers since 2010 with a moderate but constant increase in number of reporting retailers from 50%-56% of all REAP members reporting to MAP. The total number of commitments is generally quite high and increased remarkably from 21 in 2010 to 33 in 2013. Although the majority of commitments is of basic nature (e.g. increase recycling rates), the share of advanced engagements increased clearly (2-10) from 2010 to 2013. Advanced achievements target topics like support of national or international projects, set specific objects regarding new methods, or address co-operating with food banks. For figures and calculation tables see Annex III.3.

5.11 Sustainability of Textiles (August 2013)

This paper defines “environmentally friendlier” textiles as textiles minimising negative life-cycle environmental impacts along the supply chain, including production and consumer behaviour (care and disposal of clothing). The share of retailers reporting on sustainable textiles (8%) and the total number of commitments is low (4%. A small peak in commitment (12% of retailers reporting) and reported activities (7) was only observed for the year 2012. For figures and calculation tables see Annex III.3.

5.12 Water Footprint (envisaged December 2013)

Based on the 2nd draft the issue paper shall focus on "product water consumption" (e.g. by means of water footprinting) as well as its impact on a given region (e.g. through water stress indicators) with a view to identifying water ‘hotspots’ (in terms of products, processes and regions), ranking threats and, where necessary, taking mitigating measures, adjust their offer or to encourage water-saving behaviour of their suppliers and customers. Since the start of REAP water management has remained a minor issue in reporting, with only 4-7 retailers involved, and an increase in 2013. The total number of commitments related to water management is very low compared to other topics. It was 6 in 2010, dropped to 3 in 2011 and 2012 and rose to 8 commitments in 2013. Monitoring of water consumption or general reduction measures in store are considered basic commitments. General

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water management approaches or testing of a UV water treatment system was classified as advanced. So far no REAP member reported about the water footprint of its products as discussed by the issue paper. For figures and calculation tables see Annex III.3.

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6 Conclusions and Recommendations

6.1 General conclusions

The fourth progress monitoring round revealed renewed environmental commitments amongst Europe´s retailers and retail associations.

Overall further progress and developments are made and REAP members proof continuous efforts towards sustainability. Like in previous years new ideas and developments have been set up, and further efforts towards a European level playing field are made. There are some retailers who do eagerly take up new priorities.

The focus on particular environmental commitments in Sustainable Products is on organic food and certification and labelling. In Marketing and Communication reported commitments are mostly related to awareness raising campaigns, CSR reporting and specific information on sustainable food. Greening the Distribution System efforts are focusing on (local) procurement and on energy efficiency/GHG emissions from transports. In the field of Carbon Footprint commitments this year cover especially reduction measures in store via use or production of renewable energy, reduction on refrigerant leakage or shift in refrigerant or via general efficiency measures. The same applies to Energy Efficiency where general reduction measures are the focus of targets this year. In Waste Management, targets focus on food waste and minimisation or prevention measures, whilst in Packaging Optimisation REAP members clearly target minimisation and sustainability.

On the individual retailer/association level, reporting for 2012 and beyond was particularly done by Carrefour, Colruyt, ANNC/Coop Italia, The Co-operative Group, FCD, Inditex and Sonae, for whom 10 to 19 commitments have been reported in the REAP database as `achieved´. All other retailers have also each contributed and their commitments are well elaborated throughout the report and are mentioned throughout the good practices.

On the other hand the process has somewhat slowed down. Overall, a small increase in commitments but a decrease in short-term timelines is noticed in the REAP database. In addition some reduction in the overall number and ambition of commitments could be observed in comparison to previous years.

Also the quality of reporting to MAP in terms of preciseness and clarity did considerably weaken in many cases. The focus in reported activities largely remained the same, but partly commitments have been taken back.

The effects on retailers of the lasting economic crisis in many member states was clearly visible this year.

6.2 Examples of good practice in 2012

Based on the reported achievements, the project team identified a number of particularly interesting or ambitious commitments in the different topic areas of chapter 2. These highlights were selected,

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as they were more ambitious than comparable commitments from the same year, or they represent a unique or innovative approach not yet covered by many competing companies. This selection does not compare with commitments made in previous years. It is exemplary and not exhaustive and aims at covering a broad range of retail companies. An more extended list of good practices is provided in Annex IV. Energy Efficiency:

 Metro Group: worldwide 95% of locations have digital energy measuring systems;  Marks & Spencers: Reduction of store, office and warehouse energy usage by 28%/sq ft within 5 years Greening Distribution System:

 Sonae: increased number of audited suppliers (249)  CEC : 80% of member companies in Barcelona region use special loading zones

 TESCO: transport emissions halved within 5 years in UK  Royal Ahold : GFSI certification of 80% of own brand supplier Marketing & Communication:

 The Co-operative Group: prestigious GHG emission reporting obligation, by mobilizing 190 businesses, civil society, and Members of Parliament.

 Metro Group: GRI standard in CSR reporting  Auchan: 120 000 to 200 000 magazines with eco-citizen topic sold every two weeks

 EuroCoop: Various information activities related to carbon footprint to workers and members

 APED: Raising consumer awareness on food waste via general advice on how they can reduce the amount of food waste they generate. Sustainable timber:

 The Cooperative Group: 94 % of wood and paper sold or 99% of own-brand and paper products certified (FSC) Sustainable textiles:

 Sonae: 80% Social, Ethical and Environmental Certification for textiles suppliers) Eco-labels:

 S-Group: Increase in sales of organic grocery products by 26and > 500 new organic products added within one year Sustainable Seafood:

 Mercadona: removal of 5 vulnerable species from the stocks

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Carbon Footprint:

 Colruyt: Pioneering with green hydrogen, CNG (natural gas) and bi-fuel engine (diesel and CNG)

 Marks & Spencers: Achieved carbon neutrality of stores, offices, warehouses, business travel and logistics in UK and Republic of Ireland

 Sonae: 42 new photovoltaic panels installed in the course of this year Packaging optimisation:

 Royal Ahold:“4R” packaging guidelines: reduce, re-use, recycle and renew  FCD: Ban of free check out bags

 Delhaize Bulgaria (Picadilly): Rent-a-Bag program, which by the end of 2012 reduced single- use plastic bag usage by 70%.

 Sonae: six new Continente reusable bag formats

Waste Management:

 Royal Ahold: Group metric to measure food waste

 Mercadona: 33.000 tonnes of food waste from bread, cookies, snacks, etc transferred into pet flower Water Management/Footprint:

 Sonae : 9.9% reduction in drinking water consumption instead of 2% envisaged

 TESCO: Reporting of companies water footprint  The cooperative Group: 80% water consumption reporting Sustainable (Building) Management:

 Co-operative Group: banning 2 more pesticides over the year 2012, enhancing further the Pesticides Policy  Sonae: Sensory analysis Life cycle:

 Colruyt: sustainability screening method

 Eroski Group: Software tool for life-cycle assessment of products (>100)  Inditex: Documentation of hazardous discharge from suppliers, ban of PFOS/PFOA and assurance of APEO-free chemicals  ANCC/Coop Italia: Environmental Product Declaration on own-brand waters

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The good practices reflect a trend from individual practices towards retail-wide and shared practices: valued are initiatives like developing metrics/methodologies and self-assessment tools which can be shared and which contribute to the wider retailer community and affect positively supply-chain management.

6.3 Conclusions on uptake of issue paper recommendations

From the perspective of the monitoring exercises performed by ETREAP throughout the last years and from the results of the first evaluation accomplished this year, recommendations of all 12 issue papers are reflected in reported commitments in the REAP-MAP with different quantity and quality.

Figure 6-1: Evaluation of the up-take of Issue Papers 1 - 12 recommendations_Summary

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As shown by Figure 6-1 recommendations in the field of energy efficiency of stores, optimization of distribution systems and, marketing and communication, and reduction of carbon footprint of stores are mirrored by a high number of activities and ambitious targets during the whole reporting period even if a slight downward trend regarding the number of reported commitments could be observed since 2012. Such decreasing trends can reflect a saturation in terms of activity in areas were overall contribution is high (energy, supply chain, carbon footprint, timber). One reason is certainly that the number of different measures which could be implemented by retailers is eventually limited and a good qualitative improvement level in these fields seems to be already reached.

Increased activities and improved implementation can be observed in the areas of marketing and effective communication, environmental life-cycle information for products, labelling, and waste minimisation. Such an increasing trend can signal raising importance or commitments (e.g. marketing and communication, `labelling´, sustainable seafood, Waste minimisation, water footprint). The evident increase regarding the number of reported commitments concerning waste minimization, and to a lesser extent optimization of packaging, seems to be a consequence of changes in national legislation due to the entering into force of the EU Waste Framework Directive 2008/98/EC and has had therefore also a high priority for retailers.

Stable level of activity rates before and after the publication of an issue paper may not be misunderstood as lack of effect, but my be considered the reflection of an unlimited and ongoing long-term priority (e.g. packaging (IP 2011))

The contribution to the areas of timber, and sustainable seafood, and even more to sustainability of textiles and water footprint appears to be lower compared to the other issue paper topics. Besides that it takes time for retailers to uptake these aspect into their business operations, and these topics are specific, and do only concern a limited number of retailers.

It is obvious that developments on the EU policy and legislation level affect retailers commitments, when an obligation is set. Annex III.1 that shows an overview of active legislation and legislative initiatives affecting the retailer´s businesses, demonstrates a link between the retailer´s recommendations and the actions performed on that policy level.

Clearly the EU is facilitating retailer´s need by releasing reports (e.g. on sustainable textiles, food wastages), issuing public consultations (e.g. Green Paper on Plastic Waste) and developing platforms (e.g. on Life-Cycle Thinking) and thereby continuously improving the framework for sustainability a retailer can practically perform within. Also national pressures, legislative or indicative, are affecting the retailer´s commitments (e.g. Bulgarian law for out phasing free plastic bags, Spanish law on solar panels, French obligation for setting up collection , UK law on food waste).

Besides these aspects economic pressures and customers demand remain the key drivers for retailer actions, and can explain to a large extent the activities.

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6.4 Recommendations for future REAP progress monitoring

Based on the observed developments and on the challenges in progress reporting we would recommend the following:

1. Reconsider the function of MAP reporting and the potential of CSRs as information source, were such documents are available (intensifying the monitoring of CSR-reporting)

2. Re-improve reporting clarity and quality of targets for an more effective evaluation

3. Discuss options to decrease reporting delay

4. Reconsider report structure and key contents

5. Investigate the options for a refined monitoring of uptake of the issue paper recommendations with active participation of retailers

6. Consider inclusion of an assessment of recommendation up-take by policy

7. Discuss options for an improved presentation of store visit results and target achievement tables in the report

8. Discuss options to upscale the store visits by using them discussion of (new) issue paper recommendations and by widening the scope of the visit.

9. Consider an expansion of the data base functions from passive monitoring and assessment to a more active knowledge exchange platform.

10. Consider a shift in monitoring methodology towards a longer term and more general follow up of commitments focussing on practical implementation, obstacles, and solutions identified.

11. Follow up/evaluate relations between the achievements made and environmental successes/implications (from report 2011);

12. In order to further enhance retailer´s commitments in areas where they have taken a range of measures, Consider a stronger inclusion of BEP/BAT in issue paper development by additional literature studies on new (pilot) developments and best practice set up

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Contact details:

ETREAP c/o BiPRO GmbH Grauertstr. 12 81545 Munich, Germany Phone: +49-89-18979050 Fax: +49-89-18979052 Mail: [email protected]

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