Corporate Responsibility Report
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Corporate Responsibility Report Contents Contents of the report ................................................................ 2 Equality .................................................................................. 45 Review by the President and CEO .............................................. 4 Kesko’s employer profi le........................................................ 45 Key achievements in 2009 ......................................................... 5 Health and safety ................................................................... 46 Kesko's responsibility programme 2008-2012 ........................ 6 Salaries and other benefi ts ................................................... 48 Basic information on the Kesko Group ..................................... 8 Operation in employer organisations .................................... 49 Key performance indicators of corporate Cooperation with employee representatives ......................... 49 responsibility for 2007-2009 .................................................. 10 Cases ...................................................................................... 50 Impacts, risks and opportunities ............................................ 12 Responsibility management .................................................... 14 Environmental responsibility ....................................................55 Values, strategy, management model and systems .............. 14 Key environmental performance in 2009 ............................. 55 Stakeholder process ............................................................... 15 Environmental management at Kesko .................................. 56 Principles guiding responsibility ........................................... 15 Coverage of environmental systems at Kesko ........................ 56 Corporate responsibility vision ................................................ 16 Targets and performance in environmental management ... 57 Responsibility organisation in Kesko ...................................... 17 Impact on climate change ..................................................... 58 Cases ........................................................................................... 19 Energy and water consumption ................................................58 Environmental energy profi le ...................................................59 Economic responsibility .............................................................23 Transportation ........................................................................ 61 Key economic performance in 2009...................................... 23 Summary of climate change impact ...................................... 62 Principles of Kesko's economic responsibility ....................... 24 Use of materials ..................................................................... 62 Customers ............................................................................... 25 Waste management and recycling ........................................ 62 Kesko in sustainability indexes ............................................. 26 Product-related development ............................................... 62 Personnel ............................................................................... 27 Stakeholder cooperation and communications .................... 63 Society .................................................................................... 28 Environmental risks, damage and incidents ......................... 63 Suppliers of goods and services ............................................ 29 Cases ...................................................................................... 64 Support for the public good .................................................. 31 Breakdown of economic benefi ts by stakeholder group....... 31 Responsible purchasing and sales ...........................................67 Breakdown of economic benefi ts by region in Finland ........ 32 Key performance in responsible purchasing and Privacy protection .................................................................. 32 sales in 2009 ......................................................................... 67 Marketing and competition regulations ................................ 33 Principles that guide responsible purchasing and sales ....... 68 Political relations ................................................................... 33 Product safety ........................................................................ 68 Attitude to malpractice .......................................................... 33 Promoting a healthy way of living ....................................... 69 Cases ...................................................................................... 34 Monitoring social compliance ................................................ 69 Environmental criteria in purchasing and sales .................... 73 Human resources responsibility .............................................. 39 Kesko's sustainability stands and statements ...................... 74 Key human resources performance in 2009 ......................... 39 Cases ...................................................................................... 75 Human resources management ............................................ 40 Objectives and performance .................................................. 40 Comparison of the report with the guidelines Employments and job turnover ............................................. 40 of the Global Reporting Initiative ........................................... 84 Competence development and training ................................ 41 Independent assurance report ................................................ 90 Management and leadership ................................................ 43 Corporate responsibility contacts ............................................ 92 Personnel survey .................................................................... 43 Defi nitions of terms .................................................................. 93 Other evaluation practices ..................................................... 45 2 Kesko Corporate Responsibility Report for 2009 Our corporate responsibility performance is presented in the economic, environmental and human resources sections of the report. A separate section is devoted to responsible purchasing Contents of and sales, because it includes actions in the areas of economic, social and environmental responsibility. Our performance is the report presented using the most essential indicators for the stake- holder groups and Kesko. This report follows the GRI protocol for calculation, as appli- cable. Most economic responsibility indicators can be derived from the consolidated fi nancial statements, whose preparation and presentation are governed by the IFRS standards. Some aspects covered by the GRI recommendation, such as privacy protection, compliance with marketing and competition regulations, and political relations are included in economic responsibility reporting. Product safety is included in the sec- tion on responsible purchasing and sales. Report scope Since 2000, Kesko has annually reported on its corporate The report covers all of Kesko's operations. Any deviations or responsibility in accordance with the Global Reporting limitations, or changes in the data reported previously are re- Initiative (GRI) recommendation. This is Kesko's tenth ported in connection with the indicators in question. Kesko such report. follows the principles for reporting boundary and disclosure levels defi ned in the GRI Boundary Protocol. The order in which indicators are presented and headlining are not fully compliant Traditionally, Kesko’s reporting has been very extensive and with the GRI recommendation. many investors and rating agencies use this report as a source The coverage of performance indicators of foreign subsidiar- of information when assessing Kesko's performance in the dif- ies does not match the level of Finnish operations. The cover- ferent areas of corporate responsibility. We use case stories to age of some environmental and human resources indicators illustrate the diversity and extensiveness of Kesko’s activities. has improved, whereas the compilation of statistics by espe- Kesko's corporate governance and risk management are dis- cially younger, continuously expanding subsidiaries seems to cussed in more detail in Kesko's Annual Report and at www.kesko.fi . take longer than expected. On the other hand, the majority of This report concentrates on the organisation and management environmental impacts of transportation in the Kesko Group are of responsibility issues in Kesko, our responsibility performance generated in the food trade in Finland, and the amount of and their social impacts, and the risks and opportunities inher- transportation of foreign subsidiaries active in the building and ent in responsibility work. Information on Kesko as a listed home improvement trade and the machinery trade is insignifi - company includes basic ownership data and Kesko's ratings in cant, and there are no reliable statistics available concerning sustainability indexes. More extensive fi nancial information is them. available at www.kesko.fi /investors. The attachments to this re- Kesko's division parent companies and chains operate in port can be read at www.kesko.fi /responsibility. close cooperation with retailer entrepreneurs and other part- A comparison of the report