Retailers' Environmental Action Programme

Retailers’ Environmental Action Programme Annual Report 2013

REAP Annual Report 2013 1

FOREWORD

Our members are determined to fulfil their environmental responsibilities, despite the economic crisis which has hit retail as any other sector. Today, environmental sustainability is fully integrated into the overall strategy of the REAP – Retailers Environmental Action Programme - members and the commitment of the whole sector to tackle environmental challenges remains intact.

Those suffering the worst effects of Europe’s economic woes, however, are her citizens. The cost of household bills, such as petrol and heating, is on the increase, while national austerity plans are cutting wages and welfare assistance. Increasingly, therefore, consumers have less to spend on the weekly shop. Nevertheless, REAP members are steadfast in their resolve to encourage their customers to adopt more sustainable lifestyles. The challenge for retail is to make the sustainable choice the easy choice for consumers. Where possible we will accom- pany them along the way.

In this difficult climate, this fourth edition of our annual report is of particular importance to us.

2012 marks the beginning of the 2nd term of the Retailers Environmental Action Programme. Initially set up for a period of 3 years, the success of the Retail Forum for Sustainability has been such that, prolonging it for another three years was the obvious decision. Our main achievements last year have been:

• In-depth discussions on seafood and textiles, two product categories with high environmental impacts. Also addressed was water management, an issue which will continue to grow in importance in the coming years.

• Reports from members and stakeholders on how the recommendations from the first REAP term were implemented showed good progress on energy efficiency and transport.

• The Retail Agreement on Waste, which has to date been signed by 25 retail companies, including twenty REAP members. Signatories commit to carrying out at least two awareness-raising initiatives around waste, focusing on providing information to raise consumer awareness. With this agreement, REAP members have, yet again, demonstrated their leadership and ability to stimulate others to act as well.

We would like to thank all stakeholders, as well as the European Commission, and in particular, Commissioner Janez Potočnik, for their staunch and unfailing support over the years. We must keep the momentum and urge you to continue your support. Only together can we achieve our commitment – to make tomorrow’s world a sustainable one.

Baroness Lucy Neville-Rolfe Philip Clarke President, EuroCommerce President, European Retail Round Table (ERRT) Chief Executive Officer of Tesco PLC

REAP Annual Report 2013 1 FOREWORD

Foreword – European Commission

The Retail sector is a key sector of the European economy. With almost 19 million persons employed in 3.6 million enterprises it is also the largest private economic sector within the EU.

The way in which we produce and consume today is not sustainable in light of the expected demographic development in this planet. 9 billion people in 2050 demanding today’s quality of life enjoyed in the EU will exceed the limits of the natural resources of our planet. Change therefore is urgently needed.

Retailers are in a unique position to promote more sustainable consumption patterns both through their daily contact with consumers and more sustainable production in partnership with their suppliers. They have an influence to green supply chains both up and downstream.

The challenges the retail sector faces are numerous. The economic crisis has hit consumer spending patterns, with a strong demand for lower priced basic goods. At the same time the demand for sustainable products continues to expand, with consumers seeking better and more reliable information about the impacts of the products they buy: on the environment, on resources, and on working conditions of the people who make the products they find on shelves.

The Retail Forum has reached numerous achievements in addressing key issues in this past year with regard to sustainable textiles and sustainable water management.

I am happy to see many good examples of best practice highlighted in this report. For example, efforts to increase sustainable sourcing by offering more certified products, to introduce innovative solutions for cooling and freezing, and to organise EU wide and global campaigns aimed at reducing waste and food wastage in particular.

These types of activity will significantly contribute to Europe’s resource efficiency agenda and I am confident that they will become an integral part of the retailers’ business plans to support the European Commission’s effort to promote circular economy in the EU.

But there is no time for complacency, we all must step up efforts to upscale the individual solutions to green all our activities for the benefit of all - consumers, business and the environment.

Karl Falkenberg, Director General of DG Environment

2 REAP Annual Report 2013 Foreword – European Commission About REAP

Overview

In March 2009, in response to the European Commission’s Action Plan on Sustainable Con- sumption and Production, European retailers decided to proactively contribute to the process, and launched the Retailers’ Environmental Action Programme (REAP).

REAP is a voluntary initiative aimed at reducing the environmental footprint of the retail sector and its supply chain, working towards the promotion of more sustainable products, and providing better information to consumers.

The objective of the REAP is furthermore to provide a common platform to facilitate the sustainability dialogue with key stakeholders, whether suppliers, EU policy-makers or environmental organisations, but also to effectively stimulate actions by retail members.

In order to achieve these goals, two specific instruments were created: the Retail Forum for Sustainability, and the Matrix of environmental Action Points (MAP).

The Retail Forum for Sustainability

The Retail Forum for Sustainability was launched in March 2009 by ERRT and EuroCommerce, with the support of then Commissioner for Environment, Stavros Dimas, and Commissioner for Consumer Affairs, Meglena Kuvena.

The Forum is a multi-stakeholder platform that aims at exchanging views and best practices, as well as identify existing opportunities and barriers for the retail sector. Since it was launched, the European Commission has maintained its full support to the Retail Forum in the following years, and the mandate of the platform was renewed for an additional 3 years in 2012.

Several topics of interest to the retail sector are open for analysis each year and, following every meeting, an issue paper is drawn up by the REAP Secretariat (ERRT and EuroCommerce) in collaboration with the European Commission, and taking into account the input from all stakeholders involved.

These papers provide an overview on the issues and include recommendations for businesses and for policy makers. To this date, the Retail Forum has addressed the following topics:

• Energy efficiency of stores • Optimisation of distribution systems • Marketing and effective communication • Timber • Environmental Life-cycle information for products used every day in households on daily use products • Measurement and reduction of carbon footprint of stores • Labelling • Packaging optimisation • Sustainable seafood • Waste minimization • Sustainability of textiles

The conclusions of the discussions are available on the REAP website at: http://ec.europa.eu/environment/industry/retail/issue_papers.htm.

REAP Annual Report 2013 3 ABOUT REAP

Anyone wishing to attend the meetings of the Retail Forum can also use the above website to register.

Sustainable water management, CSR reporting/environmental management and animal welfare are amongst the issues that are being or will be discussed in the near future.

The MAP

The Matrix of environmental Action Points is an open, dynamic list of commitments on environmental targets made by individual retail companies and associations.

The actions are grouped into three categories:

• What we sell: includes actions aimed at selling lower impact, better performing products and services. • How we sell: includes actions aimed at limiting environmental impacts from retailers’ own distribution activities (stores, distribution centres, transport and goods) as well as limiting environmental impacts of operations through the supply chain. • How we communicate: includes actions aimed at informing and influencing the consumer to make better choices and decisions in consuming, owning and using more sustainable products and services.

The MAP, with its impressive list of retailers’ actions for the environment, is available at: http://ec.europa.eu/environment/industry/retail/reap/index_en.html

Retail Agreement on Waste

Measuring waste reduction at consumer level is very difficult in the absence of the involvement of other players, such as local authorities. Nonetheless, European retailers have committed in October 2012 to carry out awareness raising initiatives, thus demonstrating their commitment to sustainability.

20 REAP members have committed to this retail waste agreement and will:

1. Carry out, at least, two awareness raising initiatives on a global and/or national level by the end of June 2014 on food waste reduction (for food retailers) or on their main product range e.g. textiles, electrical and electronic equipment (for non- food retailers).

2. Progress will be measured on the basis of the number of initiatives, and the number of people reached by these initiatives. The latter will be calculated according to the number of visitors to the website, and/or the number of footfall in the stores etc.

3. Signatories will report on their initiatives by providing the relevant documentation (flyers, links to website, photos, reports etc.).

The REAP secretariat will collect the documentation of the signatories about the different initiatives and summarise them in a report published to coincide with the 2014 annual event. This report will be distributed to all retail associations for further dissemination.

4 REAP Annual Report 2013 ABOUT REAP

REAP Annual Report 2013 5 RETAIL COMPANIES

6 REAP Annual Report 2013 RETAIL FEDERATIONS

REAP Annual Report 2013 7

Content

FOREWORD �� 1 ABOUT REAP ��3

Retail companies

ASDA �� 11 AUCHAN �� 12 C&A �� 13 CARREFOUR GROUP �� 14 COLRUYT GROUP �� 15 DELHAIZE GROUP �� 16 EL CORTE INGLÉS �� 17 EROSKI �� 18 IKEA �� 19 INDITEX �� 20 KAUFLAND �� 21 LIDL �� 22 MARKS & SPENCER GROUP ...... 23 MERCADONA...... 24 MERCATOR...... 25 METRO GROUP...... 26 REWE GROUP...... 27 ROYAL AHOLD...... 28 SONAE �� 29 TESCO...... 30

Retail federations

APED �� 31 CCC �� 32 EUROCOOP...... 33 FCD...... 34

REAP Annual Report 2013 9

ASDA

Sustainability 360

Contact: Asda & Walmart take a holistic view of sustainability – Mr. Julian Walker-Palin Head of Corporate Sustainability ‘Sustainability 360’, ensuring we engage our operations, +44 7800 623 263 [email protected] colleagues, suppliers, customers and communities. For further information: Operations www.asda.com/sustainability Our carbon footprint has reduced by a massive 15.8% in absolute terms in four years, not- http://aislespyblog.asda.com/environment withstanding our acquisition of 150 Netto stores. The main achievements have been in energy reduction – 32.9% in stores; reducing refrigeration leaks to an industry-leading 7.1% and di- verting over 96% waste from landfill.

Colleagues We have a strong Green Champion network across offices and all stores; and Carbon Champions in all depots. They engage the business to reduce our impact on the environment and they also share tips for living a more sustainable lifestyle at home.

Suppliers The Asda Sustain & Save Exchange (SSE) is a private, online community of Asda suppliers and colleagues. It is currently serving over 300 of Asda’s Fresh, Chilled and Frozen suppliers, helping reduce their energy, waste and water costs. It helps our suppliers to improve resource efficiency across their business, through access to best practice guidance, and sharing of knowledge and experiences.

Customers Overall, we aim for sustainability to be both accessible and affordable for our customers. We regularly survey over 7,500 customers about what issues they find important. We also have the largest number of electric car charging points of any retailer in the UK.

Communities At the Asda Big Tidy in 2012, our colleagues collected over 10,000 bags of litter across the UK; supporting our communities to keep the places where they live, work and grow up clean and tidy.

REAP Annual Report 2013 11 AUCHAN

Groupe Auchan’s commitments to sustainability

The Groupe Auchan commits itself to being a responsible stakeholder among the supply chain Contact: actors in order to reduce its environmental footprint and promote sustainable consumption. Mrs. Anne-Virginie Dissard To make its policy more consistent, the Group has decided this year to choose a set of com- [email protected] mon commitments for all the countries it operates in. This represents quite a challenge con- sidering the disparity among countries and the decentralised nature of the company.

In 2008, Groupe Auchan has started to structure its policy with the launch of an international platform, gathering sustainable development managers of all the countries it operates in. Based at first on very pragmatic initiatives, its goal is now to give a strategic impulse to a global approach of sustainable development and to monitor its progress. For this reason, in 2012 Groupe Auchan chose commitments that are key to its business: decreasing by 2% its energy and water consumptions.

For Auchan France, the commitments presented are examples of the wide range of its action, like developing its own marketing scheme, with six pictograms that allow consumers to find products according to their sustainable criteria such as: saving water, saving energy, produced locally. This year, Auchan hypermarkets have reached a recycling rate of 89% of waste. Au- chan keeps developing methanization of fermentable waste, an innovative, 100% biological process that degrades organic waste from products that could not be given to charities. The biogas derived is used as fuel by a motor producing electricity and as 100% natural fertilizer (digested sludge), 13,000 tones of waste were converted to methane in 2012.

In addition to these commitments, Groupe Auchan is developing different actions, such as a formalised forest policy with the NGO, The Forest Trust (TFT). In France, since 2008, each store has its own sustainable development committee that plays a key role in pedagogy and coordination amongst employees. In a more original manner, 35 stores now possess beehives, thus helping to safeguard a highly symbolic insect, essential to biodiversity.

12 REAP Annual Report 2013 C&A

Sustainable Supply Chains - Organic Cotton Since 2004, C&A has been committed to using certified organic cotton. By 2009, 8% of C&A’s cotton collection was made of certified organic cotton. Since then, our use of organic cotton has increased. In 2011 we sold 32 million organic garments and over 80 million in 2012. This is the equivalent of Contact: the entire population of Germany owning an item of organic cotton clothing from C&A. A further Mrs. Clair Bowman increase in the sale of organic cotton is planned for 2013/14 where our target is to reach 100 million Environmental Manager – Europe sustainable cotton garments. For further information: http://www.c-and-a.com/uk/en/ Sustainable Supply Chains – New Partnerships corporate/company/our-responsibility/ In 2012, we established a new partnership to help work within our supply chain to reduce water consumption. To achieve this, our initial focus is on the production stage of our clothing, where we are aiming to reduce the water usage in our washing, finishing and dying mills. During 2011/12 we made a commitment to the Zero discharge of hazardous chemicals, where- by collaborating with other retail clothing organizations we will work towards zero discharge of hazardous chemicals by 2020.

Promoting Carrier Bag Reduction Our bio-cotton bags give our customers an alternative to single-use bags. On average we sell over 10,000 bio-cotton bags a month. For every bag sold, the C&A Foundation donates 30 cents to organic farming projects. To further develop ideas to reduce single-bag usage, we partnered with the Hasso Plattner Institut to look at multifunctional bags, reward schemes etc.

Retail Operations We have been investing in energy-efficient lighting systems, reducing energy by 8% and developing best practice ‘’model’’ stores combining technical and people-action orientated solutions to reduce carbon use.

REAP Annual Report 2013 13 CARREFOUR GROUP

Carrefour is improving its operations in order to reduce its environmental footprint and propose an offer which contributes to biodiversity protection. As a responsible retailer, Car- refour is acting so that buying within its stores benefits the Contact: +33 (0)1 41 04 26 17 whole society. Here is a sample of our recent achievements: [email protected]

For further information: Responsible sourcing http://www.carrefour.com/content/our-vision-csr Carrefour Group is optimizing its fish products assortments in order to reduce the sales of the most threatened species. In 2012, Carrefour France has indeed stopped selling additional endangered species. Carrefour is also developing an MSC (Marine Stewardship Council) certified fish offer. The company is also integrating sustainability criteria in its products requirements and is favoring specific products depending on stock level and fishing areas.

In 2012, Carrefour has also deployed a supplier charter for responsible pulp, paper and timber sourcing towards the suppliers of its European purchase office. By signing this charter, suppliers commit to ensure that the raw material they use has been produced with respect to local communities, high conservation value areas and endangered species. This improvement approach is part of Carrefour’s objective to develop a more responsible sourcing for forest related products.

Refrigeration Carrefour has been the first French retailer to test doors on its cooling equipment for fresh and frozen products. In 2012, all hypermarkets and supermarkets in France were equipped with closed cabinets for frozen food. In 2013, more than a hundred supermarkets will be equipped with closed cabinets for fresh products. These new systems allow for 17% energy saving and offer more comfort to clients. Thanks to these efforts and to a wider energy saving program, Carrefour has reduced by 25% its energy consumption by square meter of sales area Group wide, in line with its target to reach 30% less energy consumption by 2020 (vs 2004).

Carrefour is deploying new solutions to reduce greenhouse gas emissions due to its refrigeration systems. As an example the new hypermarket of La Chapelle Saint Luc opened in 2012

has been equipped with a refrigeration system using CO2 instead of fluorinated gas. CO2 is a natural gas whose effects on climate change are 4000 times less than a classical gas. Today more than 40 stores within the Group are using various natural refrigerant solutions, and Car- refour is committed to deploy these systems for all new equipment starting in 2015.

Waste Finally, Carrefour has launched a global program in order to reduce all kind of wastage, including food wastage, through its activity. This program includes improvement of stores’ operations through a specific organisation, dedicated work with suppliers to identify innovative solutions and change habits when necessary, providing information and solutions to consumers for them to contribute to wastage reduction.

14 REAP Annual Report 2013 COLRUYT GROUP

Corporate social responsibility at Colruyt Group

Whether building new Contact: Mrs. Mieke Vercaeren stores, transporting goods, Advisor Public Affairs Colruyt Group +32 (0)2 363 55 45 generating energy or reduc- [email protected] ing the ecological footprint of our products, at Colruyt Group we always seek to make a positive difference, because it is our mission to leave a healthy environment for the next generation.

Sustainable consumption Colruyt evaluated its assortment of wild fish for fish stocks, ecological impact, fisheries management and animal welfare. The latter was included in an evaluation for the first time. Colruyt shows the results in stores with handy colour codes according to the principle “Our commitment, your choice”. Customers can thus choose their fish more consciously based on the criteria that are important to them.

Sustainable energy production Colruyt Group produces hydrogen with the electricity it generates on-site by a wind turbine and solar panels. Colruyt Group uses the hydrogen for the fork-lift trucks in its distribution centres and thus evaluates hydrogen as a sustainable fuel.

Sustainable construction Based on experiences we acquired building the first low-energy store of BioPlanet in Louvain, the Colruyt store in Wépion was built in such a way that it consumes so little energy it already complies with European legislation of 2020. An airlock at each entrance keeps the heat inside during the winter. Thanks to heat recovery, the store needs twice as less heating. The fresh market and the butcher’s shop which consume the most energy for refrigeration were installed in the north side of the building against an existing verge. The store also has a green roof and solar panels.

Sustainable material management In 2012, 77% of all the company’s waste was recycled, processed in animal feed or used directly for the production of energy. Products in slightly damaged packaging, or those which have an approaching best before date, are given to the Belgian Federation of Food Banks. This year Colruyt collected 292,563 kg of food products, an increase of almost 30% compared to last year.

REAP Annual Report 2013 15 DELHAIZE GROUP

“2020 Ambition – On our way to Supergood”

In 2012, Delhaize Group launched a bold new sustainabil- Contact: Mrs. Megan Hellstedt ity strategy “2020 Ambition – On our way to Supergood”. Vice President Sustainability Delhaize Group It confirms its long term commitment to sustainability. The [email protected] progress made by the Group operating companies in various For further information: www.delhaizegroup.com/SustainabilityReport/2012/ areas also stresses its willingness to meet the commitments made to the REAP.

Sustainable Private Brands The Group’s top priority is to build the most sustainable private brands in each of its local markets by addressing the environmental, social and nutritional aspects of these products. A first milestone was achieved in Belgium where Delhaize stores now carry 100% sustainable fresh fish, while Mega Image (Romania) started to evaluate the sustainability of its private brand seafood products.

Impacting the value chain We made good progress in areas of our value chain we control directly, namely distribution,

transport and in-store: the Group’s CO2 emissions were reduced by 7% since 2008, and 98.5% of our stores in Belgium, Greece and Romania now use only non-ODS refrigerants.

As part of our Zero Waste ambition, waste reduction pilot programs were implemented in all operating companies. Furthermore, Alfa-Beta’s (Greece) green store was awarded BREEAM certification, a first in the country.

Keeping in touch with the customers To answer customer expectations in terms of sustainability, we provide regular and transpar- ent information through traditional tools such as our annual sustainability report and local internal as well as external magazines. We also use social media at local level (Facebook, blogs) to inform and involve our customers and to encourage responsible behaviors.

16 REAP Annual Report 2013 EL CORTE INGLÉS

El Corte Inglés is the biggest department store group in Europe and ranks third worldwide. El Corte Inglés is

Contact: Spain’s only remaining department Mr. Francisco Nuñez Medio Ambiente store chain, and is also the owner of Organización y Métodos + 34 91 406 85 68 several associated businesses. [email protected]

For further information: Reported initiatives www.elcorteinglescorporativo.es El Corte Inglés reported 10 commitments to the Matrix of Action Points 2013 setting the focus on sustainable products (MSC, ecological supermarket products), food waste reduction, energy efficiency, reduction of GHG emissions, and the centralization of products in central stores and training of employees.

Major achievements made by end of 2012 During 2012, El Corte Inglés has introduced several MSC certified references in their supermarkets. These products have thus tripled compared to the previous year. The company has also introduced some products sourced from ecological aquaculture. El Corte Inglés has also further expanded its offer in ecological products to 400 products.

In new buildings, it has implemented solar photovoltaic panels for own consumption, approximately 260,000 kw/h per year, and it continues to implement energy efficiency measures in stores, such as replacing conventional bulbs, transformers, sensor switches, promoting LED lighting, doors for freezers, refrigerators and heat recovery. In 2012, energy consumption has been reduced by 4%.

Other interesting initiatives El Corte Inglés has increased the number of products delivered directly by providers to a cen- tralised platform, achieving 100% for non-refrigerated food.

Finally, El Corte Inglés is also working to strengthen the environmental training of its employees.

Headquarters: Madrid Employees: 99,323 Stores: 1,589 Countries: Spain, Portugal Customers: 631 million in 2011 Brands: Bricor DIY, Centro de Seguros y Servicios, El Corte Inglés, Financiera El Corte Inglés, Hipercor, Opencor, Óptica 2000, Sfera, Seguros El Corte Inglés, Supercor, Telecor, Viajes El Corte Inglés Total Turnover: € 15,778 million Products: food retail, clothing, home ware, electrics, music & video, toys and baby products, fi- nancial services, insurance brokerage and insurance

REAP Annual Report 2013 17 EROSKI

Eroski is a Spanish supermarket chain and cooperative within the Mondragón Corporation Group. The company was

Contact: Mr. Gotzone Artabe Larraskitu founded in 1969 in the regions of Biscay and Gipuzkoa. Responsable de Medio Ambiente [email protected] Reported initiatives

Headquarters: Elorrio Target Achievements 2012 Employees: more than 35,000 • New packaging systems applied Stores: 2,110 • Support and promote local suppliers Countries: Spain and Andorra • 5% reduction in energy consumption Brands: Hypermarkets, Super- • Reduction in fuel consumption & CO2 emissions markets; Cash & Carry, • Training and awareness raising campaigns perfume stores IF, Capra- • Partner in Basque Ecodesign Center bo, Insurance, Petrol Pta- • Zero CO emissions Store tions, Eroski Mobile, On- 2 line Purchase, Opticians, Travel, Forum Sport Total Turnover: 6,222 million net (ex 2012 major achievements and interesting initiatives VAT) Our main achievements regarding our overall objective to reduce carbon emissions: Products: food retail, sports, perfume stores, optical, Ecodesign applied to packaging insurance, holiday pack- In its efforts to reduce its environmental impact, EROSKI introduced a new packaging system

ages, parapharmacy for 100 of its own-brand products, which enabled a reduction of 2,100 CO2 eq/tonnes over the period 2010-2012. EROSKI is also increasingly promoting sustainable products (e.g. FSC, MSC labelled, certified cotton) as well as local products/suppliers. In this context, EROSKI joined the Basque Ecodesign Centre, a newly created forum in which the private sector and public administration collaborate on innovative projects linked to ecodesign issues.

Energy efficiency and sustainable construction

Our major environmental milestone is our new Zero CO2 Emission Store. This supermarket achieves a 65% energy reduction. This is the first retail store nationwide with a Sustainable Construction Certificate BREEAM (Building Research Establishment Environmental Assess- ment Methodology) and the first in Europe with an ISO 50001 certificate in energy management.

Sustainable transport To optimise transport, EROSKI uses reverse logistics, bio fuels, fuel additives, eco-driving, efficient urban distribution since 2008 and electric vehicles in domestic services. Transport is organised via a route optimiser which enabled an average reduction in the number of kilome- tres by approximately 5%, thus saving 5 million litres of fuel and preventing the emission of

14,400t CO2/year.

Waste management Store waste was further decreased by 20%, by means of food donations, and the recycling rate of non-organic waste was increased to 100%. Waste valorisation (e.g. by methanisation or reverse logistics) was maintained at 80% in 2012.

Environmental awareness Environmental awareness is continuously increased via staff training, environmental campaigns and our consumer magazine.

18 REAP Annual Report 2013 IKEA

IKEA Group is the world’s largest home furnishing company. IKEA designs and produces articles under the IKEA brand. Sus- tainability is one of the four cornerstones of the Growing IKEA Contact: Together 2020 strategy, our long-term business direction. Mrs. Monica Mireles Serrano [email protected] +32 2 715 49 68 Reported initiatives In 2012, IKEA launched the initiative “People & Planet Positive”, which sets out our sustain- For further information: ability goals for 2020. One of our key goals is to become energy independent, producing more www.IKEA.com renewable energy than we consume in our operations by 2020. We will also become more energy efficient, for example by switching to LED lighting in our buildings. In addition, all the lighting products we sell by 2016 will be LED.

Major achievements made in 2012

In 2012, we reduced CO2 emissions from our buildings by 17% compared to 2011.

A third of the cotton used in our products was from preferred sources, taking us closer to our target of using only cotton verified by the Better Cotton Initiative by 2015. In 2012, IKEA invested 1.9 million in sustainable cotton farming projects.

The proportion of wood used from preferred sources (FSC certified and recycled) was 22.6% and we are aiming to reach 50% by 2017. The share of solid wood coming from preferred sources increased to 23.5% and we hope to reach our target of 35% in 2013. The main challenge is a shortage of FSC certified wood and we are working with our partners to tackle this issue. IKEA supported 13 WWF projects on responsible forest management.

We continued to install solar panels on our buildings, bringing the total to more than 250,000 panels worldwide. IKEA has invested in, and is committed to own and operate 126 wind tur- bines in six countries. Recycling rates in store and distribution centres increased, with an average of 88% in stores and 94% in distribution centres. Headquarters: Leiden, Netherlands 91% of the main materials in IKEA’s Employees: 139,000 home furnishing products are re- Stores: 298 newable, recyclable or recycled. We Countries: 44 operation countries, 18 in are aiming to reach 100% by 2015. the EU. Customers: 655 million Brands: 1 Total Turnover: € 27 billion

REAP Annual Report 2013 19 INDITEX

Through the publication of the Inditex Global Water Management Strategy, we continued to make progress Contact: Mr. Antonio Álvarez Sánchez throughout 2012 particularly on the following actions in our Head of Environmental Sustainability +34 981 185 400 supply chain: [email protected]

For further information: Raw materials see our Sustainability Annual Report at: We put more than 4.2 million units of 100% organic cotton and 5.3 million units of 5% organic http://www.inditex.com cotton on the market.

Together with Better Cotton Initiative and Textile Exchange, we collaborated in the development of projects in India to improve the use of natural resources in the cultivation of cotton.

Production line Inditex has developed the Master Plan for Water Management in the Supply Chain, following the commitment adopted last year with the goal of achieving zero discharge of hazardous chemicals associated with the manufacturing processes by 2020.

Inditex also launched a project to assess and advise suppliers on the use and the management of chemicals in 2013. In 2012, we worked with more than 20 suppliers in Bangladesh, China and India and you can find all the information about the project on the website www.wateraction- plan.com

In this framework, Inditex developed the Technical note on the use of chemicals in productive processes, which is applicable to all of our suppliers and includes, among others, the Product Restricted Substance List (PRSL), according to the Clear to Wear standard and the Manufac- turing Restricted Substance List (MRSL).

Logistics, distribution and stores The main offices and logistic centre of Massimo Dutti in Tordera (Spain) achieved the LEED Gold certificate in 2012 based on the environmentally-friendly measures considered for the design, construction, maintenance and dismantling phases. Also, our ZARA HOME stores in Munich and Zara Park House in London have been awarded with Gold and Platinum LEED certificate respectively.

Furthermore, the construction of nearly 500 new stores in 2012 and the eco-alterations in stores opened before 2005 were promoted by our eco-efficient store model that allows energy and water savings of 30% and 40% respectively, in comparison with conventional stores.

Product and end of life In 2012, Inditex joined the European Commission’s working group to define the rules concerning the European Eco-label for Footwear. We also continued working on other initiatives such as the Sustainable Apparel Coalition (SAC) and Leather Working Group, which we have been supporting in recent years.

20 REAP Annual Report 2013 KAUFLAND

Contributing to sustainable fish consumption

Within its fish purchasing policy, Kauf land focuses on products from environmentally responsible fisheries and sustainable aquaculture and, therefore, Contact: offers a great variety of MSC-certified Mr. Hergen Blase fish and seafood from sustainable fisher- Head of CSR Department ies. In 2011 and 2012, Kaufland initiated [email protected] store campaigns in more than 100 stores with fresh fish counters across Germany. For further information: Through these campaigns, Kaufland en- www.kaufland.de/fisch couraged its customers to look out for the blue MSC eco-label when buying fish, in order to make an environmentally

Supporting Gambian artisanal tonguesole fishery Additionally, these campaigns helped to raise €100,000; for every kilo of MSC labelled fresh fish sold during the campaign, Kaufland donated €0.50 to support the Gambian artisanal tonguesole fishery. Traditional fishing is one of the main sources of income in Gambia. Over 500 fishermen navigate the River Gambia and the Gambian coastline in canoes every day to catch tonguesole (Cynoglossus senegalensis). Kaufland’s donation not only helps to finance the upcoming assessment of the Gambian tonguesole fishery against the MSC standard for sustainable fisheries, but also contributes to carrying out projects to improve the living and working conditions of the fishermen. In this way, Kaufland is helping to provide greater finan- cial and social security for the Gambian sole fishermen in the future.

REAP Annual Report 2013 21 LIDL

Sustainable in series – our new store generation

100% less heat energy and 30% less carbon dioxide emissions compared to conventional stores – Lidl’s new stores generation are setting new standards for energy efficiency and sustainability. All suitable new stores in Germany should be built according to this trendsetting concept in the coming years. Contact: Mr. Florian Schütze For that reason, Lidl was awarded the special distinction Head of Sustainability award for outstanding technical performance by the Re- +49 7132 94 295265 tail Institute EHI. Lidl subsequently received DGNB1 Silver [email protected] Certificate for the first store of the new generation. In 2011, the next step was the certification of a “construction master plan” by the DGNB. All buildings For further information: constructed according to this specification meet the standard of the silver DGNB certification. www.lidl.de/verantwortung For the integral plant, developed in cooperation with Lidl, the manufacturer Futron has been complimented by the German Federal Environment Minister Dr Norbert Röttgen.

The new store generation is 100% heat independent, using the heat waste from the refrigerated section. At the same time, the integral plant is producing the entire heating and cooling requirements of the store. In this way fossil fuels will no longer be required in the future. Furthermore, Lidl uses only natural refrigerants. Using under-floor heating, instead of recirculation unit heaters, allows for additional energy-saving potential. In addition, an improved ventilation system reduces the effort of the mechanical ventilation by more than 75%. For illumination, tubular lamps with reflectors guarantee high energy efficiency.

By means of the integral plant, we can save about 55 tons of carbon dioxide per annum, per store.

1 DGNB System - Certificate for sustainable and green building. The DGNB System provides an objective description and assessment of the sustainability of buildings and urban districts. Quality is assessed comprehensively over the entire life cycle of the building. Due to its flex- ibility, it can be tailored precisely to various uses of a building and even to meet country-specific requirements. The outstanding fulfilment of up to 50 sustainability criteria from the quality sections ecology, economy, socio-cultural aspects, technology, process work flows and site are certified. The system is based on voluntarily outperforming the concepts that are common or usual today. If a performance requirement is met, the DGNB awards the DGNB certificate in bronze, silver, and gold.

22 REAP Annual Report 2013 MARKS & SPENCER GROUP

M&S is the first major retailer to become carbon neutral

At M&S, we have an eco-ethical plan, ‘Plan A’, which sets Contact: Mr. Rowland Hill out 180 commitments to be achieved by 2015, with the ulti- Sustainable Development Manager +44 208 718 6885 mate goal of becoming the world’s most sustainable major [email protected] retailer. Last year Plan A delivered a net benefit of £135m, available to be reinvested back in our business.

What we sell One of our Plan A targets is for every product that we sell to have at least one Plan A quality by 2020, with 50% of our products achieving this by 2015. This year, we reached 45% of our products with a Plan A quality, such as being made with sustainable cotton, recycled materials, FSC wood or sustainable palm oil.

How we sell In 2012, M&S became the first major retailer to become carbon neutral in our stores, offices, warehouses and delivery fleets in the UK and Ireland, by continuing to reduce our CO2 emissions and purchasing high quality carbon offsets for the remainder. We reduced our CO2 emissions by 23% compared to 2006/7 and reduced emissions from store refrigeration systems by 60%. We achieved our target to send no waste to landfill. In August 2012, we opened the doors to our biggest greenest store yet, Cheshire Oaks, with features including hemp walls, glulam timber girders, rainwater recycling and biomass heating systems, plus a 300m2 ‘living wall’.

Communication We encourage customers to get involved in recycling clothing through our Shwopping scheme, and this year they donated a total of 3.8million items, raising £2.3m for Oxfam. Each year we hold our Big Beach Clean-up where around 5,000 customers and 4,000 M&S employees work with the Marine Conservation Society at over 160 beaches, riversides and canals, clearing enough rubbish to fill 4,000 recyclable bin bags.

REAP Annual Report 2013 23 MERCADONA

New Projects In 2012, among other initiatives directed at waste prevention, Mercadona started a pilot project to sell oxo- Contact: biodegradable coffee cap- Mrs. Margarita Muñoz Calvente sules. These capsules were [email protected] developed by our dedicated supplier Prosol, as a way to For further information: help customers reduce waste at home and to create a more sustainable supply chain. The first www.mercadona.es in-store trials took place during 2012.

This is not the only waste-reducing initiative taken by Mercadona’s dedicated suppliers; a number of them have been focussing on recovering by-products and putting them back into the supply chain, such as Grupo Siro’s recovery of bread and bakery products for animal feed.

Fishing Policy 2012 also saw the start of a large and ambitious project aimed at improving the sustainability of Mercadona’s fish products, either from extractive fishing or aquaculture. The Fishing Policy was approved in 2012 and can be seen on the company’s website and bi-annual Environmental Report. The program will be developed in the following years by Mercadona and its fish suppliers.

Reporting Mercadona regularly dedicates a section of its Annual Report to environmental and sustainability actions. This year’s issue also devotes a section to the prevention of food waste, as well as food redistribution. In addition, the bi-annual 2011-2012 Environmental Report, reflecting Mercadona’s actions with environmental relevance, is available to download from the company’s website, www.mercadona.es. This edition highlights the environmental achievements of the company in the areas of logistics, energy savings and waste management and also includes a new section showcasing Mercadona’s dedicated suppliers’ actions regarding animal welfare and sustainable fishing.

24 REAP Annual Report 2013 MERCATOR

Commitment to sustainable development

In 2012, our sustainability efforts focused on the concept Contact: of sustainable development of a society, where economic Mr. Uroš Lozej Executive director conditions permit. In particular, we have focused on activities +386 1 560 17 32 [email protected] that result in decrease of costs, and activities related to the For further information: needs of our customers. http://www.mercator.si/

Responsibility to natural environment

Reducing power consumption and heating fuel The efficient use of energy has become a part of Mercator’s comprehensive corporate social responsibility. Mercator trade centres are constructed according to the principle of energy- efficiency and we favour the use of alternative sources of energy in our decisions.

Therefore, new alternative systems are being monitored and implemented. These systems are intended to promote environmental awareness, reduce impact on the environment and improve the business performance, competitiveness and productivity of the company.

Co-generation, or combined heat and power (CHP), is a method to improve the use of fuel by reaping both heat and electric energy generation simultaneously. Such technology has been installed in nine units in Slovenia. Compared to separate generation, where additional losses are caused by transfer through power lines, equipment of such type delivers notably higher yield and considerably decreases the effect on the environment (e.g. greenhouse emissions etc.).

Cutting the use of natural resources and waste generation In Mercator, we are striving for continu- ous waste separation activities pursuant to relevant legislation and to set up waste records. In order to meet the medium-term plan of reducing the amounts of mixed municipal waste by 10%, we have reduced the size of containers for mixed solid municipal waste at 10 stores.

In 2012, we also set up a central entry point for reporting extraordinary events in environment protection (generation of a large amount of hazardous waste; chemicals spill; flooding etc.).

REAP Annual Report 2013 25 METRO GROUP

In 2012, we developed our Sustainability Vision “METRO contact: GROUP, we offer quality of life”, showing how we define Mrs. Nina-Alexandra von Radowitz Head of Sustainability responsible business. To contribute to this vision, we have Tel: +49 (211) 969-9094 E-Mail: [email protected] implemented a number of measures along the supply chain.

For further information: reports.metrogroup.de/2012/sr Responsible sourcing To support supply chain management, e.g. with regards to origin and handling of resources, METRO GROUP initiates and supports the development of an international, intersectoral and product-spanning technical solution for traceability.

To improve food quality and to reduce food waste between field and store shelves, METRO GROUP:

• Concluded a pilot project with 17 suppliers of METRO Cash & Carry and Real in Russia in 2012 and with ten own-brand suppliers of METRO Cash & Carry in India in cooperation with UNIDO. • Conducted seven training workshops for 41 suppliers of METRO Cash & Carry in Ukraine in an IFC partnership project. • Launched an IFC partnership pilot project with suppliers of METRO Cash & Carry in Kazakhstan that will run until March 2013. • Implemented partnership programmes for the sustainable production of food in cooperation with Bayer CropScience in 12 countries.

Energy & resource management To support climate protection, METRO GROUP:

• Revised the climate protection target and will reduce greenhouse gas (GHG) emissions by 20% from 323 kg/m2 in 2011 to 258 kg/m2 in 2020. • Reduced the GHG emissions by 2.5% per m2 of selling space in 2012 as compared to 2011. • Lowered the energy consumption per square metre of selling space by 3.4% in 2012. • Reduced the paper consumption by 7% in absolute terms as compared to the previous year. • Rolled out the use of natural refrigerants in cooling systems in five further pilot stores. • Equipped more than 95% of all sales locations worldwide with smart metering systems by the end of 2012 to support the collection and monitoring of energy consumption. • Replaced standard refrigerator fans with energy-efficient eco- fans saving more than 3,000 MWh of electricity in Germany. • Maintains a fleet of trucks whose share of Euro 5 is 95%. Future replacements of trucks will meet Euro 6.

26 REAP Annual Report 2013 REWE GROUP

REWE Group is committed to four pillars of sustainability: “Green Products”, “Energy, Climate and the Environment”, Contact: [email protected] “Employees” and “Social Involvement”. +49 221 149 10 50

For further information: One focus of REWE Group’s commitment is the www.rewe-group.com/en/sustainability fostering of sustainable consumption patterns on www.proplanet-label.com the mass market by offering improved and more sustainable products at a reasonable price. In this regard REWE Group set up a project concerning their private label chicken products building on a twofold approach:

Animal welfare In collaboration with PROVIEH e.V., an animal welfare organisation, REWE Group and its suppliers developed measures to implement an improved animal farming standard for a more sustainable production by improving the living conditions. Low- ering the stocking rate by 15 percent, in combination with further structural elements, decreases the stress for the animals and lowers, at the same time, the risk of diseases.

Animal feed The increasing global demand for soy causes a broadened cultivation in South America and leads to extensive deforestation, expulsion and extinction of wild animals and the relocation of the rural population. In reaction to this, REWE Group decided to reduce the share of imported soy. The project sets a reduction target from 25% today to 12.5% by 2015.

Due to the demand of consumers, who often prefer food whose production is free of geneti- cally modified organism, REWE Group has shifted its chicken-production under private label to completely non-GMO feed.

In consequence of these positive impacts on the environment, the independent NGO advisory board and REWE Group decided to label own brand chicken of REWE Group with its PRO PLANET label.

Vision REWE Group strives to offer a complete range of private label meat products derived from animals raised with non-GMO feed. In addition, REWE Group will define a gradual soy reduction scheme for further animal species corresponding to the availability of European protein plants. As a flanking measure, REWE Group joined the “Danube Soya Association” which promotes the high quality soy cultivation in the Danube region.

REAP Annual Report 2013 27 ROYAL AHOLD

Ahold aims to reduce the environmental impact of its operations and increase the sustainability of its products.

Contact: Mr. Hendrik Jan van Oostrum Care for the environment Ahold Europe We recognise that climate change is an important global issue, and that we have a role to [email protected] play as an international food retailer, both to reduce the impact of our own operations and to support our suppliers and customers to do the same. We also recognise that waste is becom- For further information: ing an ever more significant topic in business and society; considerable natural resources are https://www.ahold.com/#!/Responsible-retailing-5/ wasted and unnecessary greenhouse gas emissions are being generated. Responsible-Retailing-Reports.htm Our commitments

• Reduce CO2 per square meter of sales area by 20% in our operations by 2015 compared to

our 2008 baseline of 555 kg. In 2012, our CO2 emissions were 471 kg, down 15.1% compared to our 2008 baseline.

Waste management programmes are in place at all our operating companies. We have set 5 new targets: • Develop a group metric to measure food waste by 2012. • Develop a global approach with guidelines for sustainable own-brand packaging, which includes a packaging improvement program for each operating company by 2012. • Eliminate free disposable bags at the checkout in our supermarkets in Europe by 2012 and reduce the amount of disposable bags at the checkout in the United States by one billion bags by 2015. • Eliminate landfill as a disposal method by 2020. • Ensure that all operating companies have implemented a communication policy.

Responsible products We sell millions of products under our own brands every day, and we recognize that they can have an impact on people, animals and the environment. Potential impacts of the production, consumption and disposal of such products include deforestation, unsustainable water usage, animal welfare and social issues. Our ambition is to source responsible products, and to reduce the impact of our packaging.

Our commitments • Source 100% of the six critical commodities for own-brand products in accordance with industry certification standards by 2015.

100% 83% 82%

32% 0% 0% 14% Coffee Tea Cocoa Certified Segregated Soy Seafood palm oil palm oil

• Map the environmental footprint of 50% of own-brand suppliers and their supply chains by 2015.

In 2012, we further developed the approach to implement this target. We have recognized that we can have an impact if we focus on the so-called “hotspots” linked not only to environmental but also to social and animal welfare issues in our own-brand supply chain. 28 REAP Annual Report 2013 SONAE

SONAE is committed to creating long-term economic and social value, taking the benefits of progress and innovation Contact: to an ever increasing number of people. Mr. Vitor Martins [email protected] Despite the difficult macroeconomic conditions of the mar- For further information: kets where Sonae operates, we were able to maintain and www.sonae.pt strengthen our commitments to sustainable development.

Main Environmental Achievements Regarding the environmental performance of SONAE’s Retail division in 2012, it is important to underline the 12% reduction of energy consumption and the 13% reduction of electric power consumption (which represents 77% of total energy consumption). Comparing 2012 to 2011, there was a reduction of 8% in energy consumption in the most consuming (food) stores. More- over, in the period between 2008 and 2012, SONAE achieved a 14.8% reduction of energy consumption in these stores, although we only expected a reduction of 6%.

SONAE’s effort to reduce energy consumption, together with a better performance of our stores regarding its supply logistics, led to a reduction of 5.2% in CO2 emissions.

We also continued our renewable energy self-production programme by installing new photovoltaic power stations. At the end of 2012, a total of 100 power stations were installed represent- ing an installed power of 2.7 MWp. Those power stations have produced, in 2012, 2 GWh, thus avoiding the emission of 961 tonnes of CO2 .

Building on results from 2011, SONAE achieved a 77% recovery rate of waste managed and a 9% reduction on water consumption. Comparing 2012 to 2009, SONAE reduced its water consumption by 21%.

Under the ISO 14000 certification programme, 4 additional facilities obtained their certifications, in addition to the 21 facilities that were certified in previous years. Moreover, with the environmental certification awarded to Worten Alcorcón (one of SONAE’s consumer electronics store in Madrid), we began obtaining environmental certifications outside Portugal.

Social Responsibility In its efforts to help Portuguese families overcome the current economic crisis, SONAE strengthened its offer of high quality products at reduced prices. Our clients recognised this effort, contributing to the consolidation of our leading position in the Portuguese retail sector.

Moreover, we pursued our objective of promoting healthier and more sustainable eating habits, both by increasing our offer of this type of products as by implementing several educa- tional and awareness actions.

REAP Annual Report 2013 29 TESCO

Reducing our impact on the environment Our ambition is to be a zero-carbon business by 2050 and to use scarce Contact: Miss Charlotte Williams resources responsibly, including in our supply chain. Sustainability Manager [email protected] Carbon Tesco has set an ambitious goal to become a zero carbon retailer by 2050, and a number of interim targets For further information: to reduce carbon emissions in our own operations, in the products we sell and by helping our customers to www.tescoplc.com/society reduce their footprint.

• Our Business  Become a zero-carbon business by 2050 We continue to decouple business growth from growth in carbon emissions; while our net sales area grew by 9%, our carbon footprint increased by 3%. Emissions from our Group 2006 baseline portfolio of stores are now 28% below the 2006/07 baseline and our stores built after 2006 are 33.4% lower. We have achieved these reductions by focusing on energy efficiency and reducing emissions from refrigerant gas leakage. Our absolute emissions from refrigerants are now 16% lower than in 2006, despite an 84% in-

crease in store space. Our refrigerant leakage rate, measured in tCO2e/sqft, is now 55% lower than in 2006. In the UK, we have more than halved our distribution emissions per case of goods delivered since 2006. Across the whole Tesco Group, this figure is now 24% lower than in 2006.

• Our Supply Chain  Reduce emissions in our supply chain by 30% by 2020 We are collaborating with our suppliers to reduce carbon emissions across the entire supply chain. As part of this we have recently measured the total product carbon footprint of our UK product sales in 2011/12. This has allowed us to identify “carbon hotspots” and shows us where we need to focus our efforts to have the greatest impact. The Knowledge Hub which we created in 2010 continues to grow, with members from over 780 of our largest suppliers. The Knowledge Hub is an active online community of suppliers who are engaged on the issue of carbon reduction, and enables us and our suppliers to share experiences and best- practice advice.

• Our Customers  Find ways to help customers reduce their footprint by 50% by 2020 We want to show customers that living greener lives can be attractive and affordable. In the UK, we incen- tivise green behaviour by giving out Green Clubcard (loyalty) points worth millions of £s every year. Green Clubcard points are also available in six other countries.

Water We first measured our water footprint in 2008 to inform our water strategy. We repeated this exercise in 2012 and found that our water intensity for the whole business in 2011/12 was 0.22m3/ft2 of net sales area. We have now committed to measure our water footprint annually and reduce the amount we consume where there is high use or water scarcity. In the UK, we now fit water-efficient equipment such as waterless urinals and low- flow taps and toilets as standard in our stores.

Nearly 30 times as much water is used to grow, process and manufacture the products we sell than in our own operations. We are working with our producers to identify and support water management and efficiency projects.

Waste and Packaging We are working with our suppliers and the rest of the grocery industry through the Courtauld Commitment and the Efficient Consumer Response (ECR) run by IGD in the UK, to reduce waste and packaging, for example by optimising the design of our packaging. Projects have included reducing the amount of glass in our bottles of cider and transferring goods to our in store bakeries in returnable trays.

30 REAP Annual Report 2013 APED

Reducing the potential environmental impact of plastic bags through a voluntary agreement APED, the Portuguese retailers association, together with its member companies, launched a voluntary agreement on plastic carrier bags with the intention of taking an increasingly active role in minimizing the problems that these can cause to the environment, and contribute to a more rational use of plastic bags. Contact: APED recognises that alternatives exist and that rais- Mrs. Cristina Camara ing consumer awareness is key in helping avoid mis- Adviser Environment Affairs use and encourage reuse. [email protected]

Through this agreement, 13 signatories agreed to adopt different measures, depending on the For further information: aped.pt nature of their activities, thus demonstrating their commitment to reduce the potential nega- tive environmental impact of the use of plastic bags. Some of the commitments presented in the agreement include providing alternatives for traditional carrier bags as a way to improve their environmental footprint, and informing and raising consumer awareness about the impact of their choice on the environment.

Promoting energy efficient lighting: reducing energy consumption in APED’s member companies’ stores APED managed a project, aiming at promoting energy efficiency applied to LED lighting in its member companies’ stores, which ran under a major financing programme of the Portuguese Energy Services Regulatory Authority. It was success- fully concluded in 2012 and exceeded initial expectations: as a whole, the project was conducted with an execution rate of 99%.

Reinforcing networks with national authorities APED seeks to cooperate with a wide range of organisations, including official bodies, in all activities of interest to the sector in order to share retailers’ best practices to reduce their environmental footprint, and to also highlight key challenges and constraints. In this sense, APED promoted debates with the Water and Waste Services Regulation Authority, and with the Inspectorate for the Environment.

Raising consumer awareness on food waste At the end of 2012, APED conducted a campaign, in partnership with its food retail member companies, entitled “Avoid food waste”. This initiative aimed at raising consumer awareness through the dissemination of simple everyday tips that provide general advice on how they can reduce the amount of food waste they generate.

REAP Annual Report 2013 31 CCC

The mission of the Confederació de Comerç de Catalunya (CCC) is to promote environmental best practice among SME retail merchants in Catalunya. In the period 2012 – Contact: Mrs. Marta Lozano 2014, we are focusing on measures which will reduce our CCC Assistant of Studies and Projects +34 93 491 06 72 members’ carbon footprint. [email protected] Measures to reduce the carbon footprint of CCC members For further information: In 2012, the CCC developed a tool to calculate the carbon footprint of employer organisations http://www.confecom.cat/wp-content/ in the trade and services sector in Catalonia. This tool used levels of energy consumption, uploads/2013/01/Guia-Transport.pdf transport, travel and paper consumption to calculate and analyse the CO2 emissions of these organisations.

We carried out the following calculations: • Energy: the level of emissions linked to energy consumption was calculated by comparing electricity network emissions to gross production of electric power. • Transport and travel: these emissions were calculated to include: - Daily travel for staff to and from the workplace. - Travel to attend meetings / events organized by CCC - Travel by internal staff to attend meetings / events organised by other organisations / companies. • Paper consumption: to simplify this calculation, consumption was estimated according to the amount of paper purchased in 2012 minus paper stocks remaining at the end of the year.

In calculating emissions for energy consumption, transport and travel the CCC followed the guidelines of the “Practical Guide for the calculation of the effect of greenhouse gas emissions” published by the Oficina Catalana del Canvi Climàtic (Catalan Office of Climate Change).

We have also revised and updated our policies and good practices on reducing energy consumption. Moreover, staff in our member organisations have been encouraged to follow these good practices to help reduce paper consumption and to use sustainable transport.

To promote the carbon footprint reduction of the members of CCC In 2012, we also developed awareness-raising tools for the partners of the CCC on these issues, using our regular communication channels - such as circulars, newsletters and meetings of our committee on energy, environment and sustainability.

Guide: “Sustainable transport. The contribution of the trade and services sector” In 2012, the CCC developed a guide for merchants and consumers which details good practices to promote sustainability in the transport of goods and in avoidance of waste. The guide has been circulated amongst our members.

32 REAP Annual Report 2013 EUROCOOP

Contact: Mrs. Rosita Zilli Senior Policy Adviser Euro Coop a.i.s.b.l. European Community of Consumer Cooperatives Tel: + 32 2 285 00 72 Fax: +32 2 231 07 57 [email protected] www.eurocoop.coop

For further information: please see the Euro Coop’s report: “Climate Change and Consumer Co-operatives: Taking the Challenge forward” – Report 2012: http://bit.ly/183kivC

Consumer Co-operatives: Driving Sustainable Change

Own-brands as tools to achieve greater sustainability Consumer co-operatives’ own-brand products are key tools to convey always higher levels of sustainability. For example, Coop’s Italy “Vivi Verde” line, which merges primarily ecological and organic products, has seen a steady growth since it was first launched in 2009. Also, The Co-operative Group (TCG) in the UK, as well as Coop Sweden, follow a strict responsibility policy for own-brand seafood sourcing, which puts at the core environmentally sound scien- tific advice.

Food waste reduction: taking up the challenge Consumer co-operatives pay the utmost attention to food waste reduction. Among the many examples available, the S Group in Finland has harmonised, since 2007, its price reduction practices so that all products approaching their “best before” date are sold at a discount price. Also, Coop Norway is engaged in a business-led project that aims at reducing the amount of edible food waste by 25 % before 2015.

Smarter energy, smarter transportation For instance, TCG kept on sourcing virtually all its energy (98%) from renewable sources whereas, on the transportation side, Coop Italy actively promotes since 2010 a car-sharing service to its members. Also, the S Group in Finland continuously looks for improvements in the energy efficiency area through, e.g. the installation of doors or lids on refrigerators or of energy-saving LED technology in lighting.

Educate, train and inform employees and consumer-members: a co-operative mission Also among the most relevant examples available, TCG launched the Green Schools Revolu- tion, i.e. a free environmental education programme which offers a host of materials to help teachers, parents and children take care of the environment in a fun and active way. In 2011, 3,300 UK schools took part in it.

REAP Annual Report 2013 33 FCD

Reaping the rewards of our efforts, sowing the seeds of the future

In January 2008, FCD signed a convention with the French Ministry of Environment, aiming at promoting sustainable consumption and sustainable management, through specific targets, over a 5-year period (until 2012). This framework convention was followed by several other Contact: commitments on energy saving lamps (2008), biodegradable waste bags (2009), in-store Mrs. Emilie Prouzet [email protected] collection of print cartridges (2011) or the closing of refrigerated display cabinets (2012).

Five years on, the results show that major progress has been made, confirming the key role played by retailers in sustainable development.

The most notable achievements are: • Environmental Footprint: FCD helped establishing an impact assessment methodology through a pilot study on 300 food and non-food products, carried out in 2009-2010 with the support of ADEME (the French Environment Agency). 8 retailers participated in the national experiment launched in 2011, with major deployments both in stores and on-line.

• Sustainable consumption: the market share of organic products within the total sale of food products has steadily increased since 2008 (with a yearly growth over 18%), as well as the proportion of eco-labelled products in the non-food sector. Retailers also supported the development of energy saving lamps in order to speed the phasing-out of incandescent light bulbs by the end of 2012, ahead of the deadlines set by EU regulation.

• Checkout bags: yearly distribution of free disposable checkout bags has decreased by 93% (from 10.5 billion in 2002 to less than 700 million today) with the introduction of reusable bags.

• Waste management: retailers collect nearly 30% of the total volume of WEEE and 40% of batteries, through 6,000 collection containers (and 16,000 others for the collection of light bulbs). They also contribute to waste prevention, through the eco-design of own-brand packaging.

• Energy efficiency: reference indicators and performance targets were defined, by types of stores, based on energy audits (with maximum potential savings of 40% for new buildings). It is of course too early to assess our commitment to close 75% of display fridges by 2020,

• Communication: in addition to communication by retailers, FCD participated in several national campaigns (on eco-labels, energy saving light bulbs, waste collection, etc) in order to raise environmental awareness and trigger behavioural changes in consumers.

Many efforts were made in 5 years but major challenges still lie ahead, such as energy tran- sition, biodiversity or green taxation. Sustainable development is a priority to be sustained permanently!

34 REAP Annual Report 2013

(Fédération desEntreprises duCommerce etdelaDistribution). EuroCommerce, Euro Coop (European Association of Consumer Co-operatives), ERRT (European Retail Round Table), FCD Retail federations: APED(Associação Portuguesa deEmpresas deDistribuição), CCC (Confederació deComerç de Catalunya), Kaufland, Lidl,Marks &Spencer Group, Mercadona, Mercator, Metro Group, REWEGroup, Royal Ahold,SONAE, Tesco. Retail companies: Asda, Auchan, C&A,Carrefour Group, Colruyt Group, Delhaize Group, ElCorte Ingles,Eroski, IKEA, Inditex, REAP MEMBERS [email protected] Mrs. Kate McGowan (ERRT) [email protected] Mr. Mohamed Temsamani (EuroCommerce) Mrs. Christel Davidson (EuroCommerce) REAP SECRETARIAT

Design by inextremis.be - Photos cover: fotolia.com - (MP4604)