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Talking Plainly. Acting Sustainably

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Talking Plainly. Acting Sustainably Talking plainly. Acting sustainably. Sustainability Report Fiscal Years 2018 – 2019 Talking plainly. Acting sustainably. About This Report with the exception of the key personnel figures from the annual financial statement (indicated accordingly). Countries which were undergoing For the first time, this Sustainability Report a startup phase during the reporting period in- provides an overview of the strategic basis of clude Lidl Serbia (in FY 2018; first store opening and management approach to sustainability in fall of 2018), Kaufland Republic of Moldova in the Schwarz Group. To this end, we are (in FY 2018 and 2019; first store opening in providing information on how we organize fall of 2019), Kaufland Australia, Lidl Estonia, and implement our financial, ecological, and and Lidl Latvia (all in FY 2018 and 2019). social responsibility within our day-to-day activities. The Schwarz Group is made up of This report was produced in accordance with the GRI 102-1 | 102-10 the Kaufland and Lidl retail divisions, the GRI standards: “core” option. Our report also GreenCycle environmental division including its shows which of our activities are contributing PreZero sales brand, Schwarz Produktion, and to the Ten Principles of the UN Global Compact Schwarz Dienstleistungen as well as other (UNGC) initiative; corresponding contents are affiliated companies and national organizations indicated with “ UNGC ”. Moreover, a corre- (see p. 8). The information contained in this sponding overview appears on p. 23 and in report refers primarily to the overall Schwarz Group the GRI Content Index. This report relates to and overall management approaches. In order the period from March 1, 2018 to February 29, to provide a comprehensive overview of our 2020 and thus comprises two complete fiscal activities, the report has also been supplemented GRI 102-12 | 102-50 102-52 102-54 years. Unless otherwise specified, the closing with information from specific corporate divisions dates for data collection were February 28, 2019 and countries. Since GreenCycle, including its for the FY 2018 and February 29, 2020 for the subsidiaries PreZero and PreZero Polymers1, FY 2019; the editorial deadline was August 20, was still in the process of being built up into an 2020. Any information which was included and independent corporate division over the course does not lie within the reporting period is clearly of the reporting period, the report describes its indicated. Going forward, we will release a com- specific organizational structures and management prehensive Sustainability Report every two years approaches only in cases where they already as well as an interannual progress report on our existed. In report sections where GreenCycle participation in the UNGC initiative. is not mentioned explicitly, it is subsumed under the regulations, activities, and key figures of In the summer of 2020, the auditing firm Schwarz Dienstleistungen, the central services KPMG AG subjected selected information and administration division to which it previously in this report to a limited assurance engage- belonged from a corporate organization per- GRI 102-56 ment of sustainability information during spective. an independent business audit in accordance with the International Standard for Assurance Engagements (ISAE 3000 revised). This focused In addition, the key figures presented in this report on the materiality analysis, selected management also generally refer to the overall Schwarz Group approaches, and a portion of the key figures or to the business units specified. Individual presented. Audited contents and key figures divisions contribute to the key figures by which are indicated in the text and the Index of GRI they are affected owing to their business Content Index with “ ”. The statement of the GRI 102-10 activities or business model; for example, pur- independent auditor appears on pages 109 – 111. chasing figures refer exclusively to retail divisions. In the case of Kaufland and Lidl, all national entities which were in operation for at least one complete fiscal year (FY) after their initial store opening contribute to results. Countries within the startup phase are not taken into consideration in results, 1 During the reporting period, PreZero Polymers operated under the name Sky Plastic Group. 2 Contents of this Report 01 02 CORPORATE SUSTAINABILITY PROFILE 6 AT SCHWARZ 11 About the Schwarz Group 6 Our CSR Strategy 12 Growing Responsibly 8 Sustainability Management 14 Compliance 10 Corporate Responsibility 16 Stakeholder Management 20 Accession to UN Global Compact 22 Materiality Analysis and Report Contents 24 03 04 LIFE PRODUCT QUALITY 30 QUALITY 56 Diversity & Equal Opportunities 32 Sustainable Assortment Policy 58 Health & Occupational Safety 37 Product Safety & Quality 64 Empowerment & Further Training 42 Customer Health & Social Engagement 47 Conscious Nutrition 69 Key Figures 52 Key Figures 73 Employer Awards 55 05 06 CIRCULATORY ECO- SYSTEMS 74 SYSTEMS 90 Recyclable Materials & Recycling 76 Energy & Emissions 92 Materials & Packaging 82 Water & Oceans 98 Key Figures 88 Land Use & Biodiversity 103 Key Figures 107 Foreword 4 For reasons of improved readability, the masculine form is used in Independent Auditor Report 109 this report, but refers to all genders equally. GRI Content Index 112 Imprint 115 3 Foreword Global challenges are also our challenges. We are ready to take on that responsibility and will use the special strength of our corporate group to meet these Klaus Gehrig, challenges. We do not General Partner, Schwarz Group intend to be part of the problem – instead, we will use our influence to be part of the solution. For us this means: Talking plainly. Acting sustainably. 4 Foreword Dear Readers, ecological, and social concerns has always been a guiding principle of our group, and we have already had many notable achievements towards this end. The complex ecological and social challenges We are especially proud of our unique commit- of our time – be they ongoing climate change, ment to the path towards a circular economy – human rights violations within supply chains and where we try to close material loops wherever value chains or the increasing loss of biodiver- possible. Consequently, in 2018 we signed the sity – confront us every day. We need to, now Ellen MacArthur Foundation’s Global Commitment more than ever, own up to the fact that these for a New Plastics Economy. As a result, the GRI 102-14 developments have partially come about as Schwarz Group was the first corporation to bring a result of economic growth, which has received together under one roof all steps involved in re- too little examination for quite some time. In order cycling disposable bottles. Several million bottles to make the future worth living, not only for us but are returned each day to Kaufland and Lidl’s bottle for future generations as well, it is up to all of us recycling machines and are then sorted, recycled to make rigorous changes in the way we think and and processed into new bottles in the corpora- to take decisive action. We at the Schwarz Group tion’s own three recycling and plastic plants. This are also directly affected by these developments, is just one example of how we act sustainably in many ways. From production by the Group’s each and every day – and you will find countless internal Schwarz Produktion division, to worldwide other projects and initiatives in this report. These distribution by our Kaufland and Lidl retail divisions, are exciting times, not just for our corporation but up to recyclables management by GreenCycle – for the entire industry as well. More than ever, we with our around 450,000 employees, we cover virtu- at the Schwarz Group are inspired and driven by ally the entire value-added chain in the retail sector. the need for sustainable development and the role we can play in this process of transformation. Our activities are diverse – as a result, our day- to-day work touches on the most pressing issues It is therefore my great pleasure to share with of our time in a number of ways. To put it another you the Schwarz Group’s very first Sustainability way – global challenges are our challenges as well. Report. It presents an overview of the ecological And we are ready to take on that responsibility and social topics which concern us and which and will use the special strength of our corporate are being addressed by the Schwarz Group’s group to meet those challenges – this is an oppor- corporate divisions and national entities working tunity for us to demonstrate our unity in diversity as one. In this report we share details on how and to make a significant contribution to sustain- we are realizing innovation and quality throughout able development. Because we do not intend the corporation and how we are taking respon- to be part of the problem, but instead to use sibility for what, in our view, are sustainability’s our influence as the largest retailer in Europe to four central themes: life quality, product quality, be part of the solution. For us this means: circulatory systems and ecosystems. For each Talking plainly. Acting sustainably. of these themes we present our basic management approach, the goals we set, milestones up to this To underpin our declared commitment to sustain- point and our future challenges – by just talking able retail trade, we joined the UN Global Compact plainly. this year. The United Nations, on the basis of its ten universal principles and Sustainable I hope you find this report informative. Please Development Goals (SDGs), pursues a vision of make use of the contact options mentioned in this a sustainable global economy – both today report to send us your questions and suggestions – and in the future. Through our accession we look forward to maintaining a dialogue with you. UNGC to the UNGC and this report, we profess our ongoing support for the Global Compact and for the realization of that vision, a goal toward which we want to work with commitment and drive.
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