Corporate Responsibility Report 2005 Kesko Corporate Responsibility Report for 2005 3 Contents Contents of the report Contents of the report............................................3 Waste management and recycling ....................... 39 As in previous years, Kesko’s sixth Corpo- now very comprehensive. The implemen- Assurances for online and Review by the President and CEO ............................. 4 Product-related developments ........................... 41 rate Responsibility Report has been pre- tation of environmental systems in sub- printed reports Key facts about the Kesko Group ..............................5 K-environmental stores..................................... 43 pared on the basis of the ‘Sustainability sidiaries outside Finland is still under An electronic version of the printed Key indicators of corporate responsibility Environmental office work programmes ................44 Guidelines on Economic, Environmental way. However, we have obtained waste report containing some complementary for 2003-2005 .....................................................6 Stakeholder cooperation and communications ....... 45 and Social Performance’ drawn up by the management, transportation and energy information is available at Kesko’s Inter- Global Reporting Initiative (GRI). No es- consumption statistics from nearly all Vision of corporate responsibility .............................8 Environmental risks, damage, and incidents .......... 45 net site. Additional information has been sential changes have been made in the companies and have been able to make marked in the corresponding sections of Stakeholder analysis ............................................ 10 structure of the report, as the guidelines more comprehensive calculations of emis- the printed report. Electronic reports are Principles and management systems guiding Social performance ............................................. 46 have remained unchanged. The text does sions. We expect to be able to include all presented on the Internet in their fi nal approach to corporate responsibility ....................... 14 Employment and employee turnover .................... 47 not follow the order of presentation and information now unavailable in 2006– form, in the version for which assurance Values ...........................................................14 Average age and duration of employment .............48 headings in the GRI analysis in all re- 2007. Information concerning economic has been provided. Texts are not updated Ethical principles – ‘Our working practices’ ........... 14 Kesko’s profile as an attractive employer ............... 48 spects, however. Any deviations from GRI responsibility, personnel numbers and subsequently. Any changes in informa- Goals ............................................................14 Management quality ........................................ 49 guidelines, together with any shortcom- corresponding of the joint venture, Rimi tion during the year are presented in the Strategy .........................................................15 Health and safety ............................................ 50 ings in presenting its core indicators, are Baltic AB, are reported according to Kes- following report. Corporate policies ............................................ 15 Occupational health service ............................... 52 noted in the comparison published at the ko’s ownership, while other indicators are An assurance statement has been Corporate Governance Statement and organisation ..15 Salaries and other benefits ................................52 end of the report. Kesko does not claim for the whole company. In Finland, envi- provided for the printed and electronic Management systems ....................................... 16 Pensions ........................................................ 53 that the report is in accordance with GRI ronmental data is unavailable on Indoor versions in Finnish and English since guidelines, preferring to rely on an inde- Group, which was acquired in 2005. Reporting ...................................................... 16 Equality .........................................................54 2002. Supplied by the Sustainable Busi- pendent assurance provider, to whom GRI ness Solutions unit of Pricewaterhouse- Information collection and reporting system ..........17 Training .........................................................54 has given its approval and directions, to Information about K-retailers Coopers Oy, Kesko’s auditors, this state- Activities in employer organisations .....................55 make such a statement of compliance. Kesko operates in close cooperation with ment is published at the end of the report. Economic performance ......................................... 18 Cooperation with employee representatives ...........55 K-retailers, based on chain agreements The report covers performance in 2005, Share performance ...........................................19 GRI core guidelines between retailers and Kesko. The report with some information for the fi rst three Investments and the store network ..................... 21 Social quality control of suppliers ........................... 56 The report begins with a presentation of presents information concerning K-stores months of 2006. The previous report, cov- Job development .............................................22 Managing social risks ........................................ 57 basic information about Kesko and an as- when this is integrally related to Kesko’s ering 2004, was published in May 2005. Salaries, social security expenses, and taxes .......... 22 Ethical purchasing principles and tools .................57 sessment by Kesko’s management of the reporting and complements the overall The following report, for 2006, will be Employee pension and health insurance ...............23 Monitoring in practice ...................................... 57 company’s key achievements and improve- picture of the relations between Kesko published in spring 2007. Suppliers of goods and services........................... 24 BSCI audits in 2005 ..........................................58 ment areas in 2005. Kesko’s corporate re- and K-retailers with society and other Breakdown of economic benefits......................... 25 Cooperation between Finnish importers ................60 sponsibility goals and vision, and stake- stakeholders. holder analysis follow, together with the Financial support............................................. 27 Fairtrade products ........................................... 60 company’s values, strategy, principles, and UNICEF project completed .................................. 61 management systems guiding corporate Environmental performance .................................. 30 responsibility. The main focus is on eco- Stakeholder groups Environmental system ...................................... 31 Other responsibility areas ..................................... 62 nomic, social, and environmental perform- Real estate operations ...................................... 32 Product safety .................................................62 ance indicators, which are again slightly Construction and maintenance ........................32 Risk management and corporate security ..............63 more comprehensive than those presented Structural safety ...........................................32 Marketing and competition regulations ................ 64 previously. A total of 42 of the 50 GRI core PromisE classification of premises .................... 32 Privacy protection ............................................65 indicators and nine additional indicators corporate responsibility Environmental risks associated with land use .....33 Political relations .............................................65 are included in the report. A summary Monitoring energy and water consumption ........33 Attitude to bribery ........................................... 65 table of the key indicators is included (see Economic Environmental Social responsibility Energy and water consumption ....................... 34 pages 6–7). A description of other areas of responsibility responsibility Environmental energy profile ..........................34 Comparison of the report with GRI guidelines ........... 66 responsibility, such as activities promot- ing product safety and privacy protection, Own Supply Own Supply Transport ....................................................... 37 Contact personnel in corporate responsibility............ 69 operations chain operations chain can be found at the end of the report. A Transport emissions .......................................... 38 Assurance statement ........................................... 70 Organic glossary of the most important terms and Fairtrade Kesko’s CO emissions .......................................39 Definitions of terms ............................................ 71 Swan labels 2 label a list of key contact personnel are also EU flower Use of materials .............................................. 39 included. Accounting Standards SA 8000 Rules of Securities Exchange ISO 14001 standards SQ, BSCI G International operations covered Corporate Governance Statement 06 RI partially 0 O 2 Global Reporting Initiative reporting r The fi rst indicators of corporate responsi- r g e a bility regarding the Group’s subsidiaries d n AA 1000 AS approach assurance l i Kesko is a registered corporate member of the Global Reporting Initiative