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Improving Everyday Life Corporate Social Responsibility Report 2018 Content Improving everyday life Corporate Social Responsibility report 2018 Content Ownership structure ....................................... 4 Our corporate social imperative ....................... 6 Highlights 2018............................................. 8 Strategy and governance .............................. 12 Sustainability ............................................... 16 Customer value ............................................ 26 Opportunities and diversity ........................... 40 Taxes .......................................................... 50 Risks and due diligence ................................ 54 Human rights ............................................... 56 Social and employee conditions ..................... 57 Anti-corruption ............................................. 58 Environmental impact ................................... 59 Climate ....................................................... 60 Our stakeholders .......................................... 62 Annexes ...................................................... 66 100 % owned by the Ownership Salling Foundations Købmand Herman Købmand Ferdinand structure Sallings Fond Sallings Mindefond Salling Group is 100% Danish and 100 % 70,81 % 29,19 % operates across multiple units F. Salling Invest A/S F. Salling Holding A/S Salling Group is owned 100% by the Salling The Group operates the formats: føtex, Bilka Foundations. The Foundations purposes are to and Netto, the Salling department stores and 48,29 % 51,71 % ensure that Salling Group develops continuously e-commerce plus the franchises Starbucks and to meet our customers’ needs and to give some Carl’s Jr. in Denmark. Additionally, the Group of the profits earned back to society through operates the discount format Netto in Germany, donations. Poland and Sweden. Salling Group Salling.dk, Bilka.dk, føtex.dk and Netto.dk are covered by their respective formats. Starbucks and 100 % Carl’s Jr. are franchises and not in scope for the reporting Salling føtex Bilka Netto Wupti Starbucks Carl’s Jr. | 4 Ownership structure CSR report 2018 through donations of the profits earned in the retail waste during transportation, in warehouses and group. Since 2012, the foundations have donated stores, and in the homes of our customers. As part more than a billion DKK to projects within culture, of the initiative, Netto introduced a deposit scheme Our corporate sports, charity, education, science and to the benefit on shopping bags to encourage re-use, while føtex of our employees. stopped the sale of plastic cotton buds, disposable plastic cutlery and tableware. Totally that added Increasing our social footprint up to more than 70 million plastic units. social imperative In 2018 Salling Group also initiated a transformation of our more than 53,000 employees In this report, we have described more specific to focus on our contribution to the UN Sustainable activities where we in 2018 have contributed to With size comes responsibility Development Goals (SDGs), particularly 3 (Good lasting change. Health and Wel-being), 4 (Quality Education) and for employees, customers, 12 (Responsible Consumption and Production). Taking responsibility As Denmark’s largest retail company, our main local communities and society In 2018, we took further steps to increase our focus will always be to continue the ongoing social footprint. Especially in the health agenda, development of a sustainable business. Our Improving everyday life significant change. 2018 certainly did not mark the where Salling Group became the first nationwide people-focus combined with our financial strength Being a retailer means being close to people’s lives. end of our transformation; on the contrary, in many retailer in Denmark to introduce a voluntary display enables us to make conscious long-term decisions The choices we make on behalf of our customers ways, 2018 signalled a new beginning. Following ban on tobacco products, subsequently advocating to the benefit of all whom we interact with. make a real difference in their everyday life. the Salling Foundations’ acquisition of the remaining a change in legislation to make a display ban While this report itself is limited to 2018, our Eleven million people visit our stores weekly. With 19% of the shares from A. P. Moeller – Maersk, our mandatory and urging other retailers to follow suit. perspective on responsibility is for the future. We will that comes a significant responsibility, and it is Group was once again 100% under the wings of continue to strive to give people the opportunity to something we take very seriously. the Salling name. In 2018, we therefore changed Salling Group is aiming to reduce its food waste improve their everyday life. Strive to make a positive Being responsible is an integrated part of how we the name of our company from Dansk Supermarked by 50% by 2030. The Group remains the only difference for our customers, our employees and do business. It is a mind-set. Our corporate purpose Group to Salling Group to underline our heritage retailer in Denmark to measure and publish its food the society we take part in. By providing safe and of ‘Improving Everyday Life’ guides how we engage and our connection to our owners; the Salling waste figures. In 2018, Salling Group teamed up responsible products, by sourcing conscientiously with our customers, colleagues, partners, suppliers, Foundations. with suppliers and NGOs to launch the initiative in a world of growing complexity, by allowing our local communities and the world around us. We do ‘Danmark mod Madspild’ (Denmark Against Food employees to utilise their full potential and last but this through sustainable solutions, the best customer The Salling Foundations were established by our Waste) with the aim of creating transparency about not least give back to the society we take pride in value, job opportunities for all and through our founding fathers, the entrepreneurial and visionary food waste and sharing our and the UN’s ambition being a part of. Salling Group’s purpose is to make donations via our owners, the Salling Foundations. retailer Herman Salling and his father Ferdinand with our customers, suppliers and partners. everyday life better for customers, colleagues and Salling. The foundations’ purpose is to ensure communities. Giving back to society that Salling Group develops to meet our Last year Salling Group launched an ambitious For the past six years, Salling Group has undergone customers’ needs – and to contribute to society strategy to reduce excess use of plastic and plastic | 6 Our corporate social imperativ CSR report 2018 Highlights 2018 January February March April May June Vegan minced-meat alternative føtex sets a major target for Dansk Supermarked Group is launched in our stores with a organic products: over 2,000 changes its name to Salling huge sales impact organic products in 2020 Group Netto begins testing levying deposits on plastic carrier bags føtex announces a stop of selling Salling Group becomes partner We launch the full traceability on the island of Funen all plastic disposable tableware in ‘Røgfri Fremtid’ (Smoke-Free Bilka increases its commitment of tuna for our private labels for the sake of the environment Future) and decides to hide to training mentally handi- – our customers have the away tobacco in all stores capped citizens by moving possibility to check the tuna Salling Group signs the new more sheltered workshops online Transition Accord on Fire and into the Bilka hypermarkets Building Safety in the textile industry in Bangladesh Netto expands testing of 47 deposits on plastic bags – the More than half of all the million deposit contributes towards children’s clothing sold in føtex recycling is now produced with organic plastic cotton buds are removed A new and improved strategy cotton from shelves and replaced with regarding responsibility is cardboard and paper products established Netto wins the Rainbow Award Labelling conference for Retail Prize for sending clear suppliers and other stakeholders signals about being a diverse regarding food safety, health company Netto opens its future discount and risks of misrepresentation Netto and DanChurchAid gather store: special focus on fruit and is held socially vulnerable people for vegetables Easter meals across the country | 8 Highlights 2018 CSR report 2018 Highlights 2018 July August September October November December Netto hides all tobacco in the føtex and Bilka launch clothes føtex, Bilka and Salling ‘Miljø- og Fødevareministeriet’ Netto and ‘FødevareBanken’ made from recycled plastic department stores hide tobacco (the Ministry of Environment (the Danish Food Bank) invite all from public sight. Salling Group and Food of Denmark) takes social organisations via online Salling Group is nominated becomes the first retail group over ‘Danmark mod Madspild’ solutions to apply for excess 500 Hiding tobacco has an impact: for CSR award People’s Prize as in Denmark to hide tobacco (Denmark Against Food Waste), food for Christmas. 36 tonnes Danish Netto significantly fewer young people a recognition of longstanding aiming at a smoke-free which becomes the platform for of food were donated on that stores buy cigarettes in Netto – the engagement within social generation in 2030 future national action planning occasion goal: a smoke-free generation in responsibility to fight food waste 2030 is getting closer Sales of the highest-level animal Focusing on social projects welfare products are increased and sustainability, the Salling
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