Sustainability Report 2006 Introduction

Reporting Standard In its annual Sustainability Report, Migros sets out its activities in the field of sustainability. This year’s publication is the first that also provides a progress report on the implementation of the Global Compact. The Sustainability Report holds true to the principles and substance of the Global Reporting Initiative (GRI). The aim of the GRI is to create an international standard for voluntary reporting on economic, ecological and social activities undertaken by companies. The GRI certifies that the report is compliant at level B. The appendix contains a complete list of contents in accordance with the GRI.

Data The procedures used to measure and assess sustainability data are essentially unchanged from last year as are the system limits. For organisational reasons, not all data from the various sectors apply the same limits (see chart below)

Report scope

Migros Federation of Cooperatives

Data about the environment

10 regional cooperatives

15 industrial companies

Distribution centres Suhr and Neuendorf

Service companies and other enterprises

Economic data and data about employees

Other foundations and companies

The above simplified diagram of the Migros Group shows the scope applied to this report. Economic figures and personnel details refer to the entire consolidated Migros group. Environmental data refers to all Migros companies participating in the Migros retail sector.

Table of Contents

Foreword...... 3 Ecology Pioneering Benefits Progress in 2006...... 4 for the Environment...... 39 Defined Targets...... 40 Corporate Profile Focus on Energy Saving...... 40 Added Value for Everyone...... 7 Doing Something for the Climate...... 42 At the Heart of the National Economy...... 8 High Recycling Quotas...... 43 Success against the Flow...... 8 Proper Waste Management...... 43 Popular ‘People’s’ Company...... 11 Optimised Transport Systems ...... 45 Political Engagement...... 11 Innovations in Shopping Traffic...... 45 Natural Diversity ...... 47 Sustainability Policy Focus on Human Beings...... 13 Appendix Binding Principles...... 14 GRI-Index...... 49 Effective Organisation...... 14 Opportunities and Risks...... 14 Broad-based Stakeholder Dialgue...... 16

What We Offer Quality in All Segments...... 19 Engagement at the Highest Level...... 20 Sustainable Palm Oil...... 20 Energy Efficient Products...... 21 A Product that Is Completely Safe ...... 21 High Minimum Standards...... 24 Model Code of Conduct...... 24 Fair Cooperation...... 25 Permanent Controls...... 26 Open Information...... 26

Society Fair Shares, not the Lion’s Share...... 29 The Unique ‘Culture Percentage’...... 30 Education for as Many People as Possible...... 31 Ethical and Social Projects...... 31

Employees Excellent Working Conditions...... 33 Progressive Collective Agreement...... 34 Expanded Social and Contractual Partnership...... 34 Good Rates of Pay...... 35 Equal Treatment and Integration...... 36 Targeted Further Training...... 36 Largest Number of Traineeships...... 37 Health and Safety...... 37 Migros Sustainability Report 06

Our Mission Statement: Migros is the Swiss company that is passionately committed to the quality of life of all of its customers. Working with all of our customers, our suppliers and interested social groups, we want to play an active part in shaping the future. We are committed to striking a balance between economic, ecological and social demands.

Foreword

Roses stand for love – normally. In spring 2006, however, they also stood for Human Rights. In March, church-run relief organisations held a day of action under the banner “100,000 roses for Human Rights”. The flowers were sold at five Francs each with proceeds going to social projects. So what does this campaign have to do with Migros? For a start, the roses – fair-trade Max Havelaar flowers – were a gift from Migros. And secondly, human rights are an issue that our company has been deeply concerned about for some years. In 1997, Migros took a pioneering step creating a Code of Conduct that puts its suppliers under an obligation to respect human rights and to maintain social working conditions. To establish our engagement even more firmly, in spring 2006, Migros signed up to the Glo- bal Compact. This is an initiative by the former UN General Secretary Kofi Annan under which the participating firms are obliged to follow ten principles of good corporate governance – including the recognition and promotion of the General Declaration of Human Rights. Our principal aim is to meet our customers’ demand for quality products at prices they can afford; every day. But we also want them to be able to shop at Migros with a clear conscience because we are committed to fair working conditions within Migros, and at our producers and suppliers around the world. And because we are committed to environmentally sound and animal-friendly production, and to optimising industrial ecology in all our institutions. In this Sustainability Report we use current data to support our endeavours. The figures show that we are well on the way in fulfilling our key aspiration – to be socially aware, environmentally friendly and low-priced; all at the same time. But the path we have chosen is certainly no afternoon stroll; it is more like a strenuous mountain hike. The retail sector is currently undergoing massive changes; competition is increasing, and prices are coming under pressure. And this gives rise to the risk of ecological and social concerns falling to the wayside. In view of this increasingly difficult business environment, we are especially proud that we are able to maintain our high standard today; indeed, we are making progress in all areas. But at the same time, we are grateful that our customers, our employees and our business partners are supporting us in our engagement; making it sustainable in the true sense of the word.

Claude Hauser, Herbert Bolliger, Chairman of the Board of Directors Chief Executive Officer Migros Sustainability Report 06

Progress in 2006

Customers Employees Suppliers Society Environment

• 1.4 million customers • Approx. 80,000 employees • Over 3,000 Swiss and • Culture Percentage offers • Energy consumption has been visit M-shops each day foreign suppliers funding of CHF 116 million recorded for over 30 years • 2,809 trainees Over 60,000 products on offer 42% of Food and Near-food Over 700 different courses Group consumes 1.7 per- • 60% female employees • • • • products produced in-house in the Migros Club Schools cent of Swiss electricity

Key data 541 supermarkets, 206 special- • 76% of employees are ist markets, 203 M-restaurants • 9,000 product analyses Nearly 2 million coop- 13,000 tons of returned covered by the Migros • • • erative members customer waste collective agreement

• 800 products reduced • Renewal of collective • Organisation of an Interna- • Sign-up to Global Compact • Reduction of energy con- in price > p. 8 agreement for the pe- tional Meeting on Sustain- and participation in first meet- sumption and CO2 emissions riod 2007 to 2010 > p. 34 able Palm Oil at the indus- ing of Swiss network > p. 14 in accordance with targets Most toilet and household • trial company MIFA > p. 21 specified by the Energy paper products changed Opening of the second Revision of strategy of Migros Progress Progress • • Agency for Industry > p. 40f to FSC quality > p. 20 Jowa bakery training fa- • Implementation of agricul- Culture Percentage > p. 30 cility in Gränichen (AG) tural Swiss-GAP standards Opening of Amriswil su- LED lamps included in Set up of new Office for Cul- • • and staging of first Profes- with reference to Eurep- • permarket constructed in product range > p. 21 tural Affairs in Geneva > p. 30 sional Training Day > p. 37 GAP in Switzerland > p. 24 accordance with the Min- No smoking policy in- Extension of school building ergie Standard > p. 42 • Creation of 100 addi- Majority of suppliers certi- • troduced in all M-res- • • and construction of a training tional training places fied to Eurep-GAP agricul- Commissioning of taurants > p. 21 centre at the KIDS School • for trainees > p. 37 tural standard and food safety Switzerland´s second-larg- in Tirupur, India > p. 31 Evaluation of all engage- standard GFSI > p. 24, 26 est solar collector sys- • A 2.5% year-by-year increase ment labels by the WWF as • Supporting a new Water tem at the Milandia (ZH) in female employees in BSCI Code of Conduct ex- • ‘recommended’ up to ‘highly • exhibition with the WWF fitness park > p. 42 management positions > p. 36 tended to food suppliers. A recommended’ > p. 22f Pandamobile > p. 32 further 86 audits carried out Campaign for national bat- Introduction of business • Prohibition of genetically • in Non-Food segment > p. 25 tery collection week > p. 45 • group solution throughout the modified feed for imported group to prevent accidents and First independent veri- Use of Bio Diesel in meat and poultry > p. 24 • • work-related illnesses > p. 37 fications of BSCI Code six regional Migros of Conduct in India and Cooperatives > p. 45 China. Three audits carried Two banana sales pro- out per country > p. 26 • motions to raise funds for the Nogal biodiversity project > p. 48

Progress in 2006

Customers Employees Suppliers Society Environment

Corporate Profile Added Value for Everyone

For many years, Migros has been the market leader in Swiss retailing with sales amounting to almost CHF 21 billion. The basis of Migros’s continuous commercial success are its high quality, low priced products and services. As a Cooperative with two million members, Migros is firmly established within the community. The added value it creates benefits especially its customers, its employees and society. Migros Sustainability Report 06

n 1925 the pioneer and visionary Gottlieb Dut- largest food manufacturer. The great majority of Mi- tweiler bought five small Ford-T lorries and filled gros’s range of processed foods, and also its range of I the loading ramps with coffee, rice, sugar, pasta, products in the near-food segment (body care and hy- coconut fat and soap. On 25 August the first mobile giene products, washing and cleaning materials), there- shops were delivering around Zurich. That was the un- fore, consists of its own-brand products; many of which assuming start of the orange M about 80 years ago. To- are manufactured in Switzerland. day, Migros is Switzerland’s leading retailer and one of the 500 biggest firms in the world. An enterprise with its Success Against the Flow own special character still keeping faith with the ideals Retailing today is characterised by the progressive lib- and values of its founder over the decades. An extraor- eralisation of the economy and by the rising tide of dinary thing is that Migros has always let the people be globalisation on the raw material and product mar- a part of its equally extraordinary commercial success. kets. Foreign hard discounters are piling on the pressure in the barely growing Swiss market while at the At the Heart of the National Economy same time more and more Swiss people are shopping Retailing is very important to the national economy: just across the border in other countries. These trends its economic activity generates some CHF 75 billion, have made business relationships more unstable and or 16 percent, in value added to Switzerland’s GDP. It pushed them further apart; competition has been hard- also ensures that the people of Switzerland are properly ening and margins have been shrinking. The price de- provided for. Positioned between supply and demand, bate also dominates the public arena. And the sustain- retailing plays a key role in promoting consumption of ability performance of the providers has been pushed products that are ecologically sound, animal-friendly into the background. and socially acceptable. Approximately one-fifth of all In this hardly tranquil environment, Migros’s busi- jobs are closely linked to retailing. It is also significant ness has been doing very well. Migros’s retail sales rose that the retail sector has the highest proportion – over by 1.8 percent last year to CHF 17.67 billion. The sales 40 percent – of part-time employees of all sectors. More- area has increased by 26,000 square metres to a total over, retailing has by far the highest proportion of fe- of 1,228,000 square metres. In recent years, Migros has male employees and the greatest number of training managed to win market shares in various segments and places in the private sector. And finally, the retail sector has held its overall retail market share stable at around performs an important social integration function, by 18 percent. Migros’s unbroken run of success is built on opening up career opportunities even for people with high quality, low priced products and services. Migros’ relatively few qualifications. prices are considerably lower than its competitors’; not Migros is right at the heart of Swiss retailing. With for cheap, discount products, but in the medium price just short of 80,000 employees, Migros is the country’s segment which is where the Swiss do most of their shop-

99 percent of Swiss households shop at least once a year at Migros.

largest private employer. With a broad range of goods ping. In customer surveys (such as the Price Image Ba- and services, Migros is very much part of everyday life rometer of the Link market research institute), Migros for the population. Migros is where 99 percent of Swiss regularly comes out ahead of all of its rivals on value for households shop at least once a year. Migros has a sales money. Over the past year, Migros has maintained this network of 590 Migros sites, 206 specialist markets and leading position: Price cuts on 800 products have led to 203 M-Restaurants. Migros operates 2 supermarkets in a one percent decrease in prices overall. France and 3 in Germany. The Migros Group also in- Migros Industry also had a positive year in 2006. cludes a bank with 45 branches, about 300 Migrol filling Exports by M-Industry companies continued to grow, stations, the travel operator Hotelplan, 13 Globus de- helping total sales to reach CHF 4.68 billion, 1.4 percent partment shops and the media outlet Ex Libris (see or- more than the year before. Migros also acted success- ganisation chart). Then there are other enterprises such fully in 2006 in the Group’s strategic expansion: In April as the Club Schools, Fitnessparks, swimming pools and Migros acquired an 80 percent majority stake in the on- golf courses. A special feature of Migros is that in ad- line retailer LeShop SA. LeShop.ch is Switzerland’s larg- dition to its well-developed sales and distribution net- est online supermarket. In October, Migros’s subsidi- work, it has 15 M-Industrial companies which are active ary Hotelplan Group purchased a majority stake in the mainly in the food sector. It is, therefore, the country’s Travelhouse Group with its ten specialised travel agen- Corporate profile

Organisation Chart Federation of Migros Cooperatives

Migros Cooperative Assembly of Delegates Aare President of Assembly of Delegates 100 members from 10 regional Cooperatives 10 members from the 10 regional management boards

Migros Cooperative Board of Management Basel Chairman of the Board President of the Executive Board One representative from each of the ten Cooperatives Two employee representatives Migros Cooperative Between seven and nine external members Geneva Executive Board President of the Executive Board Migros Cooperative 5 members of the Executive Board Lucerne

Bina AG Ex Libris Migros Cooperative Ready-made meals Books, media Neuchâtel-Fribourg Chocolat Frey AG Hotelplan AG Foundations and other Chocolate Travel enterprises Migros Cooperative Eastern Switzerland Delica AG Interio Coffee, Dried Fruit Home furnishing

Estavayer Lait SA LeShop SA Migros Cooperative Dairy products Online supermarket Ticino Jowa AG Limmatdruck AG Bread and baked products Printing, web design Migros Cooperative Waadt Mibelle AG Magazine zum Globus Cosmetics Department stores

Micarna SA Migrol AG Migros Cooperative Meat, charcuterie Fuels, heating oil Wallis Midor AG Migros Bank Baked Products and ice ceam Migros Cooperative Zurich Mifa AG MVN AG Washing powder Distribution company

Regional Mifroma SA MVS AG Cooperatives Cheese Distribution centre

Optigal SA Office World Poultry Office equipment

Service companies and Riseria Taverna SA other enterprises Rice

Scana AG Catering supplies

Seba Aproz SA Beverages

Industrial companies

The Migros Group consists of ten regional Cooperatives and the Federation of Migros Cooperatives. Industrial Companies, Service Companies, Foundations and other organizations are affiliated to the FMC; as at: end 2006. 10 Migros Sustainability Report 06

GUPPENUMSATZ GUPPENUMSAGRMarktantOUP SALeileES TZ MarktantPGewinnROFIT BeileE vForO R SteuernE TAXES 2006 VerkGewinnaufsfläche vor Steuern 2006 VerkAnteilaufsfläche der Sparten AnteilEngagement-Gesamtumsatz der Sparten Anteil derEngagement-Gesamtumsatz Labels 2006 Anteil der Labels 2006 Märkte2006 Märkte2006 CHF billion CHF million

25 25 700 700 30 30 1.5. 1.5. 2000 2000 632 600 607 600 20.6 20.4 20.3

20.0 Bio-Baumwolle Bio-Baumwolle 20 19.8 Liegenschaftserträge/Übrige Liegenschaftserträge/Übrige 2025 25 543 1.2 1.2 Gastronomie/Gourmessa 1500 Gastronomie/Gourmessa Forest Stewardship Council Forest Stewardship Council 500 484 500 1500

451 Marine Stewardship Council Marine Stewardship Council Brenn-/Treibstoffe Brenn-/Treibstoffe 20 15 15 20 Bio-Baumwolle 400 0.9 400 0.9 BU FM / OBI BU FM / OBI Bio-Baumwolle Max Havelaar Max Havelaar Reisen Reisen 15 15 1000 1000 Eco 10 10 300 300 BU Non Food BU Non Food Eco 0.6 0.6 Forest Stewardship Council Forest Stewardship Council Bildung/Kultur Bildung/Kultur 10 10200 200 BU Near Food BU Near Food Marine Stewardship Council Marine Stewardship Council 500 500 IP-Suisse IP-Suisse Freizeit/Fitness 5 Freizeit/Fitness 5 0.3 0.3 5 5100 100 BU Frische BU Frische IP-Suisse IP-Suisse Bio Bio Gastro/Hotel Gastro/Hotel 0 0 0 0 Max Havelaar Max Havelaar 0 0 0.0 0.0 BU Food 0 BU Food 0 2002 2003 2004 2005 2006 Eco Eco Grosshandel Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 20022002 2003 2003 2004 2004 2005 2005 2006 2006 2002 2003 2004 2005 2006 0 100 200 300 400 500 600 0 100 200 300 400 500 600 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 7-P2004unkte-F leisch-Garantie2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel Detailhandel In spite of falling prices and increased competitive Sales of the Migros Group continuously increased Bio Bio over the past years; reaching CHF 20.6 billion in pressure, the Migros Group was able to continuously 2006. increase its profit before taxes (EBIT) over the past years.

Eurep-GAP Pozent Eurep-GAP Pozent Verkaufsfläche Engagement-Gesamtumsatz SHARGUPPENUMSAAuflageE OF Mi NETgros RTZE MagazinV ENUE AuMarktantMARKflageET Mi SHAReilegros E Magazin Gewinn vor Steuern 2006 Anteil der Sparten Anteil der Labels 2006 Märkte2006GFSI Proz ent GFSI Prozent GUPPENUMSATZ Gewinn vor Steuern 2006 Verkaufsfläche Engagement-Gesamtumsatz Anteil der Labels 2006 2006 Märkte2006 Percent Anfragen M-Infoline 1000 Anfragen M-InfolineMarktant 1000eile Anteil der Sparten 100 100 100 100 252.5 Real estate/other income (2.2%); 700 1.5 2000 302.5 120 120 . Education/culture (0.8%); 25 Food 700 1.5 2000 80 600 30 . 80 Bio-Baumwolle

80 20 25.1

80 Leisure/fitness (0.5%) 24.9 Liegenschaftserträge/Übrige 25 24.8 Non-Food WERTSCHÖPFUNGSRECHUNG 2.0 2.0 100 24.6 1.2 WERTSCHÖPFUNGSRECHUNG Catering/hotels (3.4%) 100 600 Forest Stewardship Council 24.3 Gastronomie/Gourmessa 1500 Bio-Baumwolle Liegenschaftserträge/Übrige 20 500 25 Wholesale (5.6%) 1.2 Marine Stewardship Council 60 60 Brenn-/Treibstoffe 20 Gastronomie/Gourmessa 1500 Forest Stewardship Council 60 60 15 80 80 500 an Unternehmungen (Selbstfinanzierung) 1.5 1.5 0.9 an UnternehmungenBU FM / OBI (Selbstfinanzierung) Bio-Baumwolle Marine Stewardship Council Brenn-/Treibstoffe 400 Heating oil 20 Max Havelaar Reisen 15 0.9 BU FM / OBI Bio-Baumwolle 15 400 an öffentliche Hand 1000 40 40 and fuels (8.2%) 60 300 60 an öffeBUntliche Non Fo Handod Eco Max Havelaar 40 40 10 Reisen

1.0 1.0 12.4 0.6 1000 Forest Stewardship Council 11.9 11.9 15 Bildung/Kultur 11.5 11.5 300 BU Non Food Eco 10 an Kreditgeber Travel (8.6%) 10 200 0.6 an KreditgeberBU Near F ood Marine Stewardship Council Forest Stewardship Council Bildung/Kultur 40 40 20 20 500 IP-Suisse 20 Freizeit/Fitness 20 5 10 200 BU Near Food Marine Stewardship Council 0.5 0.5 0.3 an Kultur / Soziales (Kulturprozent) 100 an KulturBU Fr / ischeSoziales (Kulturprozent) IP-Suisse 500 IP-Suisse Freizeit/Fitness 5 20 5 20 0.3 Bio 0 0 Gastro/Hotel 100 BU Frische IP-Suisse 0 0 5 an Mitarbeiter Max Havelaar 0 0.0 0.0 0 0.0 an MiBUtarbeiter Food 0 Bio 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 RetailGastro/Hotel (70.7%) 0 0 0 2002 2003 2004 2005 2006 20022002 2003 2003 2004 2004 2005 2005 2006 2006 0 Eco Max Havelaar Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 20050 2006 0.0 2002 2003 2004 2005 2006 BU Food 0 0 100 200 300 400 500 600 2002 20022003 20032004 20042005 20052006 2006 2002 2003 02004 2005 2006 7-Punkte-Fleisch-Garantie Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 0 100 200 300 400 500 600 Detailhandel 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 1 Bio 7-Punkte-Fleisch-Garantie With some 71 percent of the net revenue, retailDetailhandel is by During the past years, Migros was able to stabilise far the largest business area, followed by travel and its market share1 at a substantial level. In 2006, the Bio heating oil and fuels. market share in the Food segment saw a marginal reduction. The slight decrease was, in particular, due to considerable price discounts, the extension of the M-Budget line and the below-average expansion. Eurep-GAP Pozent GFSI Prozent Eurep-GAP Pozent Auflage Migros Magazin GFSI Prozent Anfragen M-InfolineAuflage 1000Migros Magazin 100 100 Anfragen M-Infoline 1000 GUPPENUMSATZ Marktanteile Gewinn vor Steuern 2006 SALVerkESau ARfsEfASläche 100 2.5 Anteil der Sparten Engagement-Gesamtumsatz120 Anteil der Labels 2006 Märkte2006 2 100 2.5 80 Million m 120 80 2.0 100 WERTSCHÖPFUNGSRECHUNG 25 80 700 1.5 80 2000 2.0 100 WERTSCHÖPFUNGSRECHUNG 30 60 . 60 80 an Unternehmungen (Selbstfinanzierung) 600 60 1.5

1,23 Bio-Baumwolle Liegenschaftserträge/Übrige 20 25 1,21 60 80 an Unternehmungen (Selbstfinanzierung) 1.2 1,17 1.5 1,14 Forest Stewardship Council an öffentliche Hand 40 500 40 1,10 Gastronomie/Gourmessa 150060 1.0 Marine Stewardship Council Brenn-/Treibstoffe 15 20 40 40 60 an öffentliche Hand 400 0.9 BU FM / OBI 40 1.0 Bio-Baumwolle an Kreditgeber 20 Max Havelaar Reisen 20 0.5 1000 40 an Kreditgeber 15 20 Eco an Kultur / Soziales (Kulturprozent) 10 300 20 BU Non Food 20 0.6 0.5 Forest Stewardship Council Bildung/Kultur 0 an Kultur / Soziales (Kulturprozent) Marine Stewardship20 Council 10 200 0 0.0 BU Near Food an Mitarbeiter 2002 2003 2004 2005 2006 0 0 IP-Suisse 5 2002 2003 2004 2005 2006 0 500 an Mitarbeiter Freizeit/Fitness 0.3 2002 2003 2004 2005 2006 0.0 5 100 2002 2003 2004 2005 2006 2002 2003BU Frische 2004 2005 2006 2002 2003 2004 2005 2006 IP-Suisse 0 2002 2003 2004 2005 2006 Bio Gastro/Hotel 2002 2003 2004 2005 2006 0 0 0.0 BU Food 0 Max Havelaar 0 Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 100 200 300 400 500 600 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel 2 Migros´ sales area shows a continuous slight in- Bio crease, reaching a total of 1.23 million square metres in 2006.

Eurep-GAP Pozent GFSI Prozent Auflage Migros Magazin Anfragen M-Infoline 1000 100 100 2.5 120 80 80 2.0 100 WERTSCHÖPFUNGSRECHUNG 60 60 1.5 80 an Unternehmungen (Selbstfinanzierung)

40 60 an öffentliche Hand 40 1.0 an Kreditgeber 20 40 20 0.5 20 an Kultur / Soziales (Kulturprozent) 0 0 0.0 an Mitarbeiter 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Corporate profile 11

cies and their sales outlets; creating the largest travel functions is to ensure that Migros’s values and guiding provider in Switzerland. Finally, in October 2006 Migros principles are maintained. The Foundation, therefore, acquired a 30 percent interest in Cash+Carry Angehrn has to approve the salary bands of the FMC Executive which has taken it into the cash and carry business and Board and the senior managers of the whole Migros opened up new sales channels – especially for its own Group. This prevents the Boards of Directors and senior M-Industrial companies. managers setting each others’ salaries. At Migros, there Over the past few years, Migros has been steadily are no excessive managerial salaries. expanding its range of products. The low-price M-Budg- Because of its solid cooperative foundations, and et line in particular has expanded because of strong de- thanks to the consistently high quality of its products, mand. Last year, the budget line celebrated its tenth an- Migros is extremely popular among the Swiss. According niversary, and now has over 500 products in its product to Europe’s largest consumer study by Reader‘s Digest line. There was also growth in the premium segment: (2006), the Migros brand enjoys the highest confidence The Sélection brand, launched at the end of 2005, has among retailers. In the ‘Reputation Index’ calculated by been doing very well in terms of both product num- the Swiss market research institute GfK, Migros ranks bers and sales. In the near-food sector, Migros recorded seventh among 84 companies; the only retailer placed strong growth in 2006 with the addition of more brand- in the Top Ten. ed items to the product line. Political Engagement Popular ‘People’s’ Company As Switzerland’s biggest retailer and largest food pro- In 1941, Migros’s founder Duttweiler donated his ducer, Migros is greatly involved in the general structure enterprises, which until then had been regional pub- of the economy. On core issues in particular – agricul- lic companies, to his customers. The customers became tural policy and the abolition of the ‘high-price barri- Cooperative Members, making them the company’s ers’ around Switzerland – it plays an active part in the owners. With this unparalleled act, Duttweiler set Mi- political debate. Strategic policy issues are the concern gros on a democratic foundation; creating a ‘people’s’ of the FMC’s Economic Policy Directorate. Economic company that today has almost two million Coopera- policy maintains the dialogue with representatives of tive Members. As a Cooperative, Migros is committed to the Federal Council, the administration and Parliament, Stakeholder Value. The added value Migros creates ben- formulates the bases for its arguments and passes these efits its customers, its employees and society. Its profits forward selectively. The Directorate, therefore, has its are not paid out to shareholders, but are kept within own Public Affairs Office in Berne. Migros also supports the company. relevant projects of organisations and associations – but The foundation of Migros is its ten regional Coop- not, out of principle, any political parties or individual eratives whose main functions are sales and distribution candidates.

According to consumer studies, Migros is the most trusted European retailer brand.

(see organisation chart p. 9). The regional Cooperatives On political issues, experts from Migros also co- are bound to each other in the Migros Federation of operate, informally or in work groups, with colleagues Cooperatives (FMC). From its Head Office in Zurich, from rival companies. In May 2006, Migros, together the FMC is responsible for coordinating everything; it with Charles Vögele, Coop, Denner, Manor and Valo- performs a senior management role and owns the M- ra founded the Swiss retail community of interests (IG Industrial and Service companies. In addition to the ten DHS). Its aim is to help convey the concerns of retailers regional Cooperatives, Migros, therefore, owns a large to the public and politicians. Migros has also founded number of public companies. together with Coop, Ikea, Maus Frères and the Associa- Because the Migros Group is structured into region- tion of Real Estate Investors (VIV) the espace mobilité al Cooperatives, this ensures that power is well distrib- community of interests to formulate a joint approach on uted within the organisation. The Cooperative Members spatial planning, transport and environmental policy. have wide ranging participatory rights. They determine the composition of the Cooperatives’ Boards of Direc- tors and pass judgement on the annual accounts. There is also the G. and A. Duttweiler Foundation, one of its 12 Migros Sustainability Report 06

Footnotes

1 Migros including Magazine zum Globus, Interio and Office World as well as Ex Libris.

2 As of 2006, a new regulation for determining area sizes applies. Previous year’s figures were adjusted retrospectively. 13

Sustainability Policy Focus on Human Beings

In everything it does, Migros strives to find the best solutions, socially and ecologically. It therefore has a sustainability management system, and maintains a close exchange of information with many different stakeholder groups. By signing up to the Global Compact of the UNO, Migros has reinforced its engagement to good corporate governance. It has been awarded numerous prizes in recognition of its pioneering role in the field of sustainability. 14 Migros Sustainability Report 06

ince its foundation, Migros has been battling to protection, for instance, on equality issues or on fight- provide low-cost, high-value food for the popula- ing corruption. Migros is, therefore, also a member of Stion. Using unconventional methods, Migros has the Swiss regional Global Compact Network, which is cut prices – not least by founding its own food business- still under development, and attended its first meetings es to produce food at reasonable prices. But for Migros, last year. it has never just been about low-priced products. From By joining the UNO initiative, Migros has commit- the very start, founder Gottlieb Duttweiler’s work in- ted itself to campaign for the fundamental values of hu- spired a great social engagement that extended beyond man rights, labour laws, and environmental protection making better provision for people’s material well-be- that are enshrined in international conventions, and to ing. At a very early stage, in his corporate philosophy ensure that they are followed within its sphere of influ- and objectives, Duttweiler proclaimed: “Our social and ence. With its longstanding commitment to sustainabil- cultural services must keep pace with growing mate- ity, Migros is already meeting most of the targets set by rial power.” the Global Compact, and with its Code of Conduct in particular, has an effective tool for implementing hu- Binding Principles man rights and labour laws (Principles 3–6). In envi- The guiding principle in the Migros Mission Statement ronmental protection, too, Migros has attained a high is: “Migros is the Swiss company that is passionately standard with its numerous eco-ethical label products committed to the quality of life of all of its customers.” and operational measures (Principles 7–9). So people, not money, are at the heart of everything that Migros does. In its Environmental and Social Policy, Mi- Effective Organisation gros expressly professes its belief in sustainable develop- Up to now, managing the Environmental and Social ment (see table). In purchasing, producing, transporting, Policy has been the job of the “Sustainability Support selling and disposing of goods, Migros always looks for Committee” under the leadership of the Head of the solutions that are the best socially and ecologically. On Logistics and IT Department who is a member of the the social side, Migros supports fair and proper working Executive Board. The heads of the respective depart- and social standards both locally and globally. In Switzer- ments have overall operational responsibility for the in- land, the national collective agreement stands for pro- dividual sectors. Apart from the figures in this report, a gressive, responsible working conditions and the social series of prizes that Migros has received in recent years partnership for comprehensive participatory rights for testify to the progress it has made in sustainability man- employees. Foreign business partners and suppliers have agement (see table p. 16). to give Migros their guarantee, by way of an internation- In 2006, Migros formulated a new concept for high ally recognised Code of Conduct, that they offer their level sustainability management and reporting. Specif- employees fair and proper working conditions and that ic targets will be set for the key performance indica- they respect workers’ and trade unions’ rights. tors, which will be defined during 2007, and activities

Migros endeavours to use the best social and ecological solutions for its procurement, production, transport and waste disposal operations.

In March 2006, Migros went a step further with its throughout the company will be coordinated with those engagement in the area of sustainability and signed targets. Clear responsibilities and target agreements as up to the Global Compact. This global initiative by the well as management incentives have yet to be estab- United Nations (UNO) includes ten principles (see ta- lished. The aim of the new concept is to ensure that ble), based on widely accepted moral concepts of good the sustainability of all business activities is even more corporate governance. The aim of the Global Compact coherent. A monitoring and control system is also be- is to support the social engagement by the business ing set up. All activities in the field of sustainability will, community, and to bring about a fairer, more sustain- therefore, be coordinated by the Head of Issue Manage- able world economy. The Global Compact is not a label ment. or quality mark that the UNO awards after inspecting or assessing a company. It is first and foremost a network Opportunities and Risks whose members respond jointly to the needs of soci- For Migros, commitment to sustainability is not just a ety. So companies can learn from each other, exchang- necessity. It also opens up new possibilities; and Mi- ing experiences and good examples in environmental gros can, for instance, improve its competitive posi- Sustainability policy 15

Basic Principles of Migros in Dealing Global Compact with stakeholders Human Rights Customers Principle 1: Businesses should support and respect the We offer quality products and services at reasonable protection of internationally proclaimed human rights; prices. and Principle 2: ensure that they are not involved in human Employees rights abuses. As a model employer, we create conditions for a motivating and performance-oriented work environment, Labour Standards attracting the best workers. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to Suppliers collective bargaining; Based on the free market economy and service level Principle 4: the elimination of all forms of forced and competition, we endeavour to cooperate directly with compulsory labour; our producers. We are constantly improving products Principle 5: the effective abolition of child labour; and and services, and also incorporate ecological and Principle 6: the elimination of discrimination in employ- social standards into our conditions of employment and ment and occupation. production.

Environment Cooperative members Principle 7: Businesses should support a precautionary Our obligation to our cooperative members is to create approach to environmental challenges; values that will ensure Migros‘s continued long-term independent existence. Principle 8: undertake initiatives to promote greater environmental responsibility; and Society Principle 9: encourage the development and diffusion of environmentally friendly technologies. We promote the free and responsible development for all people. With the Migros Cultural Percentage we support active artistic creativity, and thus dialogue with Anti-Corruption society; we also promote broad access to culture and Principle 10: Businesses should counter all forms of education. corruption; including extortion and bribery. We protect the environment, and our achievements are truly pioneering. Reporting Companies signing up to Global Compact shall produce an appropriate annual report. 16 Migros Sustainability Report 06

tion through energy conservation to cut its operat- Awards and honours for sustainable ing costs. It is winning additional customer segments development 2002–2006 with its innovative label products. And, with its good terms of employment, Migros is increasing the moti- National Energy Globe Award vation and availability of its employees. Because Mi- for Switzerland 2006 gros includes the most important interest groups in the Migros received this commendation from the Aus- decision making processes, it increases the loyalty of trian “Energy Globe” Association in recognition of its cooperation with Mobility Car-Sharing in creating the Cooperative Members and creates goodwill among its M-Budget vehicle category which offers particularly customers. Migros’s exceptionally strong roots within good value. the Swiss population are due in no small measure to its broad social and cultural engagement. By achieving Vocational Integration Prize 2006 more in all areas of sustainable development, it also The disability insurance agency of the Canton Fribourg achieves better results in external assessments, such awarded this prize to Migros Industry’s meat process- as ratings and product tests. Ultimately, this will also ing company Micarna for its efforts to reintegrate raise the value of the Migros brand. employees who had been ill or suffered an accident. But these opportunities also involve risks: In the spirit of sustainability, economic success must always Jost Krippendorf Prize 2006 be in balance with social and ecological engagement. The Austrian Tourism Association awarded this prize to But in the case of additional social benefits and corpo- Hotelplan; principally in recognition of its many years rate environmental protection in particular, it is also of work on environmental management and its humani- tarian engagement. true that responsible behaviour can cost more. Just how far Migros can go along the sustainability road, there- Energy+ Award 2004 fore, depends on its customers’ willingness to reward The European Energy+ project – an initiative of the Migros’s performance on sustainability by paying an ap- European Commission – honoured Migros for its cam- propriate price for it. People in this country are still very paign promoting particularly environmentally friendly much aware of quality. But even in Switzerland, price and energy efficient refrigerators and freezers. competition is constantly growing in intensity. Many consumers are, therefore, paying much more attention Energy prize for Migros Zurich 2003 to the price label when they shop. The steady rise of The Migros Cooperative Zurich was awarded the ‘shopping tourism’ into neighbouring countries is proof Zurich Energy Model challenge trophy for its engage- of this. While it is an important issue in the media, there ment in the field of energy efficiency and climate is a danger of sustainability being pushed into the back- protection. ground when it comes to specific purchasing decisions which means that less committed competitors are reap- “Swiss Star” Packaging Competition 2003 ing the economic rewards. Migros is trying to counter- The Swiss Packaging Institute awarded Migros three act this trend by communicating, as clearly as possible, prizes for a biodegradable bag for carrots and the reusable banana box. the added value of its products for all interest groups – especially for its customers. UNEP Business Award for Sustainable Development 2002 Broad-based Stakeholder Dialogue Migros received the Sustainable Development Prize at Migros firmly believes in rapid, open and honest com- the Sustainable Development Summit in Johannesburg munication in its Environmental and Social Policy. It for its model project for sourcing sustainable palm oil. has also set itself the goal, in its guiding principle, of working with its customers, suppliers and interested Energy Globe Award 2002 social groups in order to be actively involved in shap- The Migros Cooperative Zurich was awarded the in- ing the future. Migros, therefore, maintains a close ex- ternational Energy Globe Award for its “Salat im Tank” change of information with numerous interest groups, biofuel project. Migros was the first company in Swit- the so-called stakeholders. Migros is in dialogue with zerland to extract biogas from its own organic waste over thirty non-governmental organisations (NGOs); and use it to drive eleven gas-powered lorries. especially in the field of social and ecological labels, environmental protection, cultural engagement and observance of human rights in the supply chain. It has also established many contacts within the new regional Global Compact Network in which NGOs are rep- resented as well as other firms. There are also close Sustainability policy 17

contacts with state institutions at the State, Cantonal and Municipal level, and also with research agencies – especially in the agricultural production sector. Migros’s social and contractual partners are also important, permanent points of contact (see section ‘Employees’). In addition, Migros maintains regular contacts with trade unions and employee organisations, cooperating with them on professional development, for example. For Migros, the network of internal company employee representatives in Switzerland represent another key platform for discussion with social partners from all economic branches in Switzer- land. And of course, communication with its customers is of particularly central importance. That is why, Migros has at its disposal a range of targeted tools,

The sustainability Migros can achieve depends on the readiness of its customers to remunerate Migros´ sustainability performance. such as customer surveys, the M-Cumulus customer programme and the M-Infoline customer service (see section ‘What we offer’). The findings from discussions with interest groups are dealt with and followed up by the appropriate Mi- gros offices, depending on the subject. If necessary, committees or project groups assume additional tasks such as genetically modified foods. The task of the Is- sue Manager, appointed early in 2007, is to coordinate issues raised in discussion with the stakeholders within Migros. Migros provides a comprehensive account of its performance in the area of sustainability in its annual Sustainability Report. Also appearing in 2007 for the second time is an insert from the customer magazine Migros-Magazin, documenting Migros’s efforts in this sector among the broad public. 18 Migros Sustainability Report 06 19

What We Offer Quality in All Segments

At Migros, customers can find everything under one roof. With a high standard across the entire product line, customers can always shop with a clear conscience: Migros meets social and ecological requirements. Migros requires its suppliers to apply fair working conditions. And when it comes to sustainability, the Engagement labels offer a wide range of top quality products. 20 Migros Sustainability Report 06

ith a total of about 60,000 products, Migros can offer a very extensive product line in Divisions the supermarket divisions fresh produce, Fresh Produce: Flowers, fruit/vegetable, meat/fish, W eggs, dairy products, bread. food, near food, non-food and specialist markets (see table). A single supermarket carries around 35,000 items. Food: Food products excluding fish products, in par- Most of these products are Migros' own brands; a sig- ticular beverages, canned food, confectionary and ingredients. nificant proportion of which are manufactured in Swit- zerland by Migros Industry companies. About 70 per- Near-Food: Personal and general hygiene products as well as household items. cent of vegetables, 20 percent of fruit and 90 percent of meat products sold also come from Switzerland. In Non-Food: Clothing and toys. 2006, Migros invested some CHF 200 million in domes- Specialist Markets: Furniture, garden, DIY, appliances, electronic products, sport. tic processing. In so doing, it promotes products that do not travel far and which are manufactured according to Catering: Restaurants, delicatessen, take-away. a high ecological standard. With the “Aus der Region, GUPPENUMSATZ Marktanteile Gewinn vor Steuern 2006 für die Region”Ve regionalrkaufs ffocusläche campaign, Migros is also Anteil der Sparten Engagement-Gesamtumsatz Anteil der Labels 2006 Märkte2006 making a strong commitment to the local farming in- Percentage of divisions 2006 25 700 dustry. 30 1.5. 2000 Today’s consumers are better informed, more criti- 600 Non-Food (4%) 20 Bio-Baumwolle Liegenschaftserträge/Übrige 25 cal, self-assured1.2 and more open to new ideas. But at the Catering (5%) 500 Gastronomie/Gourmessa 1500 Forest Stewardship Council Marine Stewardship Council Brenn-/Treibstoffe 15 20 same time, they have also become more fickle and di- 400 0.9 Near-Food (12%) BU FM / OBI Bio-Baumwolle verse in their demands. Experts talk of ‘hybrid’ consum- Max Havelaar Reisen 15 1000 10 300 BU Non Food Eco ers whose likes0.6 and dislikes are constantly changing and Forest Stewardship Council Bildung/Kultur Specialist markets 10 Marine Stewardship Council 200 who fill their shopping baskets with organic salad, ready (13%) BU Near Food 5 Fresh produce 500 IP-Suisse Freizeit/Fitness 0.3 5 100 meals, cheap toothpaste and exclusive chocolates. In BU Frische (45%) IP-Suisse Bio Gastro/Hotel recent years, Migros has, therefore, segmented its prod- 0 0 0.0 Food (21%) BU Food 0 Max Havelaar 0 Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 uct line. So alongside the extensive traditional range of 0 100 200 300 400 500 600 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel characteristic Migros brands, for ten years there has also Bio been the particularly low-priced M-Budget line and, for Net revenue percentage attained by the individual two years, a Premium segment: Sélection products with retail divisions. Fresh produce produces the greatest top quality ingredients. percentage by far.

Engagement at the Highest Level Eurep-GAP Pozent GFSI Prozent Auflage Migros Magazin Under the umbrella label ‘Engagement,’ Migros carries Anfragen M-Infoline 1000 products in all of its supermarket divisions with clear ec- promotes the label. Early in 2006, Migros was the first 100 100 ological and social values. The umbrella label, launched Swiss retailer to switch to FSC wood pulp for most of 2.5 120 in 2003, is an important decision-making aid for cus- its range of toilet and household paper articles without 80 80 WERTSCHÖPFUNGSRECHUNG 2.0 100 tomers. Thanks to the uniform labelling, they can see increasing the price. Migros also provides crucial aid 60 60 1.5 80 at a glance which products meet the highest standards for organic cotton: in cooperation with the anSwiss Unternehmungen devel (Selbstfinanzierung)- in terms of sustainable production. The Engagement opment organisation Helvetas, it selectively promotes 40 60 an öffentliche Hand 40 1.0 umbrella label is a grouping of eight product specific the cultivation of organic cotton in the West African an Kreditgeber 20 40 labels: In the food sector these are Bio, IP-Suisse, M-7, state of Mali. Through its purchase guarantees, Migros 20 0.5 20 Max Havelaar and MSC. For household articles, furni- supports many small farmers who want to answitch Kultur / Soziales from (Kulturpro zent) 0 0 0.0 ture and textiles there are Organic Cotton, Eco and FSC conventional to organic cultivation. Migrosan Mialsotarbeiter makes 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 (see table p. 22–23). For example, Migros sells a thou- financial contributions to the development project, and sand or so organic products (Bio) which have a 3 per- sponsors a travelling exhibition on organic cotton culti- cent share of food sales. The Engagement product line vation in Mali which has been held in each of the past is continually being expanded, and total sales reached two years in Switzerland. CHF 1.67 billion in 2006. Detailed information about the labels and their criteria can be found on the web- Sustainable Palm Oil site at www.migros.ch > Sortiment > Engagement (only Migros has taken the initiative for more considerate in German). production in the case of palm oil extraction as well. Migros has assumed an active role in the develop- This oil is an important raw material for the food and ment and realisation of labels. Not only is it the market consumer goods industry. It is found in many foods, leader in FSC products, but as a founder member of such as sauces, bakery products and margarine. Often, the ‘WWF Wood Group Switzerland’ it also energetically however, entire tropical forests are cleared to make way What we offer 21

for palm plantations. Working with the WWF Switzer- source. In 2006, Migros launched the first LED lighting. land, Migros has drawn up the world’s first set of cri- Light-emitting diodes (LED) are much more efficient teria for sustainable palm oil production, and has been than filament lamps, and have a much longer life. producing margarine from sustainable palm oil since In November 2006, the WWF conducted an investiga- 2001. Migros was honoured for this pioneering work at tion of the product line of the six biggest Swiss providers the UNO World Summit for Sustainable Development of household appliances, lighting and electronics articles. in Johannesburg. Migros came out top in electronics. The high proportion Since 2003, Migros has been exclusively using sus- of efficient LCD TVs and DVD recorders (80 percent and tainably produced palm oil in its own food industry 70 percent respectively) contributed to this good result. companies; even though these products carry no spe- Migros was also above average with its household appli- cial labelling. The following year, Migros co-founded an ances. In lighting, however, it was somewhat below av- international “Round Table for Sustainable Palm Oil” erage because energy efficient lamps, which Migros sells (RSPO). The organisation’s members include represent- also, have a smaller share of sales in the supermarket atives of palm plantations, the processing industry as sector than is achieved by other providers. well as social and environmental organisations. In 2005, the RSPO approved international criteria for sustainably A Product that Is Completely Safe produced palm oil. Migros will continue its activities at One of Migros’s main concerns is that its customers the RSPO in order to improve the production of one of are able to buy without worry. Since 1983, the Statutes the most important oils on the market. In 2006, Migros have included a ban on the sale of alcoholic or tobacco organised a meeting on sustainable palm oil at MIFA, an products in Migros sales outlets. Migros also took deter- M-Industry company, attended by ten European whole- mined action most recently on trans-fatty acids. Foods sale distributors. high in these acids have a negative effect on the choles- terol level in the blood. Migros has therefore been work- Energy Efficient Products ing for years to reduce the amount of trans-fatty acids in It is not only the manufacture, but also the use of prod- its own brands – with the result that a majority of products that has consequences for the environment. This ucts already contain less than 2 percent. Migros’s aim is especially true for household appliances, lighting and is for all M-Industrial products to be below this level by electronics. Refrigerators are among a household’s big- the end of 2007. By the end of 2008, products from out- gest consumers of power, and Migros has consistently side suppliers should also meet these standards. There taken efficiency as a key element in its products. Within will still be some exceptions to this though: In a few just seven years, Migros has succeeded in reducing the products it is simply not technically possible to replace power consumption of Miostar refrigerators by 40 per- trans-fatty acids. cent. Migros now sells only appliances of the efficiency Migros is tackling the growing need for a healthy class A or higher. lifestyle at a number of levels. To allow guests in the over Migros is also continually adapting its lighting prod- 200 M-Restaurants to enjoy their lunches undisturbed, ucts: Energy efficient lamps such as energy saving and in mid-2006 Migros introduced a smoking ban in all of compact fluorescent lamps and fluorescent tubes al- its restaurants. The reduced-calorie Léger line of foods ready make up 25 percent of the whole product line. In are available in Migros shops. A variety of products have order to simplify the purchase of energy saving lamps, been added to the Actilife umbrella brand, re-launched the four-colour energy label is printed as large as pos- last year; and the brand now includes a wide range from sible on every pack. fruit juices and vitamins to bath salts. The Fitnessparks

Migros offers numerous products with added ecological and social value under the umbrella label ‘Engagement’.

The sales catalogue of Micasa, Migros’s furnishings and the Migros Club Schools also offer a range of prod- and appliances subsidiary, also shows all lighting equip- ucts covering nutrition, exercise and relaxation. Migros ment that is, or can be, fitted with energy saving bulbs. runs a nutrition advisory service that all constomers can Customers can, therefore, buy efficient lighting with visit free of charge on the Internet. The Migros web- the appropriate light source. Nevertheless, sales of en- site has easy-to-follow basic information on health and ergy efficient domestic lighting are tentative. In this sec- nutrition, including tips on healthy diets and a list of tor, customers prefer spot lighting with a halogen light E-numbers. There are also special sections for diabet- 22 Migros Sustainability Report 06

The eight M-Engagement Labels

Bio Migros’s organic programme promotes close-to-nature, sustainable agriculture. All Swiss bio products sold by Migros come from businesses whose production is based on the “Bud” symbol standards formulated by Bio Suisse, the Swiss As- sociation for Organic Farming. Chemical pesticides and fertilisers are not used. All animals have regular exercise, their feed must be predominantly organic and if possible must be internally produced. Imports are subject to the guidelines set out in the EU Bio Regulation. This is regularly controlled by independent, government approved organisations in Switzerland and abroad. External Rating by WWF1: Highly recommended

Max Havelaar The Max Havelaar Foundation issues its label to producers who comply with the international Fair Trade standards. Compliance with the criteria is controlled internationally by the Fairtrade Labelling Organisation. The producers receive a higher price for their products and a fair trade bonus. You will find the Max Havelaar label in the Migros assortment on coffee, tea, chocolate, bananas, orange juice, rice, flowers, sugar, pineapples, mangoes, jam, cocoa powder and plants. More and more of these products also carry the Bio label. External Rating by WWF1: Recommended

Eco The Eco label guarantees that no environmentally harmful, skin-irritant and allergenic materials are used across the manufacturing process, from yarn production, spinning and weaving, dying and printing to completed clothing, and raw materials are used in moderation. But Eco also stands for health and safety at the workplace. In addition, Migros has a Code of Conduct, which obliges its suppliers to maintain social working conditions.

MSC The Marine Stewardship Council (MSC) label designates saltwater fish from sustainable fishing. This means that fish stocks must not be overfished and must have time to recover. Compliance with the regulations is controlled independently. Migros has promoted the MSC since it was set up, and carries the following MSC products: Alaskan wild salmon, smoked or frozen, available fresh from July to October; fresh and smoked mackerel fillets; hake loins from South Africa; Alaskan pollack and a variety of convenience meals. External Rating by WWF1: Recommended

Organic Cotton In organic cotton cultivation, natural methods are used to control pests. Savings can be made on the cost of pesticides, soil fertility is maintained, ground water and rivers remain clean, and the sustained diversity of species of flora and fauna is supported. Clothing and home textiles made from organic cotton are always manufactured in accordance with Eco Standards. Independent controls ensure that the Bio standards are maintained. What we offer 23

FSC The Forest Stewardship Council (FSC) is an international confederation of environmental organisations, representatives of indigenous ethnic groups and business associations. The FSC has drawn up standards for sustainable forest management that apply throughout the world. Compliance with the FSC Standards is controlled independently. The label, therefore, represents timber and paper products that are obtained in line with environmentally and socially acceptable criteria. Migros is the market leader in FSC products, and the proportion of these products in its product line is constantly rising.

7-Point Meat Guarantee ‘M-7’ ‘M-7’ stands for cows, beef cattle, calves, lambs, turkeys and chickens that are raised and fed under controlled conditions. All animals have to be housed in stalls that are particularly animal-friendly. This means, for example, that animals must have fresh air and daylight, and their bedding straw must be kept clean. Meat carrying the 7-Point Meat Guarantee is produced exclusively in Switzerland. Compliance with the Standards is controlled independently. External Rating by WWF1: Recommended

IP-Suisse At Migros, the IP-Suisse label appears on bread, flour, potatoes, rapeseed oil and apple juice produced in Switzerland under environmentally friendly conditions. Agrochemicals may be used, but only sparingly, and only if there is a precisely defined need. About sixty percent of Migros’s IP-Suisse apple juice therefore comes from fruit picked from high-stem fruit trees – trees that provide birds with valuable living space and enrich the landscape. External Rating by WWF1: Recommended

Verkaufsfläche Verkaufsfläche Engagement-GesamtumsatzEngagement-Gesamtumsatz Märkte2006 Märkte2006 GUPPENUMSATZ GUPPENUMSATZ Marktanteile Marktanteile Gewinn vor Steuern 2006Gewinn vor Steuern 2006 Anteil der Sparten Anteil der Sparten TOTAL SALES – ENGAGAnteilEMENT der LAB LabelsELS 2006 Anteil derSAL LabelsES OF 2006INDIVI DUAL LABELS CHF million 2006, CHF million 25 25 700 700 30 30 1.5. 1.5. 2000 2000

600 600 1752 614 (-2.2%)

1703 M-7 Meat 1669 20 20 1661 Bio-Baumwolle Bio-Baumwolle Liegenschaftserträge/Übrige Liegenschaftserträge/Übrige 25 25 1.2 1.2 1599 500 500 Gastronomie/Gourmessa Gastronomie/Gourmessa1500 1500 Forest Stewardship CouncilEco Forest Stewardship Council 336 (-1.7%) Marine Stewardship Council Marine Stewardship Council Brenn-/Treibstoffe Brenn-/Treibstoffe 15 15 20 20 Bio 294 (-0.9%) 400 400 0.9 0.9 BU FM / OBI BU FM / OBI Bio-Baumwolle Bio-Baumwolle 240 (-5.5%) Max Havelaar Max Havelaar Reisen Reisen 15 15 1000 1000 IP-Suisse 10 10 300 300 BU Non Food BU Non Food Eco Eco 0.6 0.6 FSC 118 (+2.3%) Forest Stewardship Council Forest Stewardship Council Bildung/Kultur Bildung/Kultur 10 10 Marine Stewardship Council Marine Stewardship Council 200 200 BU Near Food BU Near Food Max Havelaar 71 (-1.3%) 500 500 IP-Suisse IP-Suisse Freizeit/Fitness Freizeit/Fitness 5 5 0.3 0.3 5 5 100 100 BU Frische BU Frische IP-Suisse MSC 18IP-Suisse (-1.7%) Bio Bio Gastro/Hotel Gastro/Hotel Organic 11 (+4.0%) 0 0 0 0 0.0 0.0 BU Food BU Food 0 0 Max Havelaar Max Havelaar 0 0 Cotton Eco Eco Grosshandel Grosshandel 2002 2003 2004 2005 20062002 2003 2004 2005 2006 2002 2003 2004 2005 20062002 2003 2004 2005 2006 0 100 200 300 400 500 0600 100 200 300 400 500 600 2002 2003 2004 2005 20062002 2003 2004 2005 2006 2002 2003 2004 2005 20062002 2003 2004 2005 2006 2002 2003 2004 2005 20062002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel Detailhandel Total sales2 for the Engagement labels amountedBio to In 2006, the labelsBio Organic Cotton and FSC demon- CHF 1669 million in 2006. This represents an annual strated positive growth rates year on year. The other decrease of two percent. labels experienced slight reductions in sales.3

Eurep-GAP Pozent Eurep-GAP Pozent GFSI Prozent GFSI Prozent Auflage Migros MagazinAu flage Migros Magazin Anfragen M-Infoline 1000Anfragen M-Infoline 1000 100 100 100 100 2.5 2.5 120 120 80 80 80 80 2.0 2.0 100 100 WERTSCHÖPFUNGSRECHUNGWERTSCHÖPFUNGSRECHUNG 60 60 60 60 1.5 1.5 80 80 an Unternehmungen (Selbstfinanzierung) an Unternehmungen (Selbstfinanzierung)

40 40 60 60 an öffentliche Hand an öffentliche Hand 40 40 1.0 1.0 an Kreditgeber an Kreditgeber 20 20 40 40 20 20 0.5 0.5 20 20 an Kultur / Soziales (Kulturprozent) an Kultur / Soziales (Kulturprozent) 0 0 0 0 0.0 0.0 an Mitarbeiter an Mitarbeiter 2002 2003 2004 2005 20062002 2003 2004 2005 2006 2002 2003 2004 2005 20062002 2003 2004 2005 2006 0 0 2002 2003 2004 2005 20062002 2003 2004 2005 2006 2002 2003 2004 2005 20062002 2003 2004 2005 2006 24 Migros Sustainability Report 06

MIGROS MINIMUM STANDARDS – FOOD SECTOR

Agriculture Processing Distribution

Good agricultural practice (GAP) Good manufacturing practice (GMP) Good distribution practice (GDP) Eurep-Gap and GFSI standards HACCP equivalent programs Hygiene concept ISO standards

The diagram shows the principles and standards applied by Migros in the Food sector. Eurep-Gap: European Retailer Program for Good Agricultural Practice, see main text; GFSI: Global Food Safety Initiative, see main text; HACCP (Hazard Analysis Critical Control Point) is a preventative system, seeking to guarantee food safety.

ics and people with allergies. Migros takes consumers’ 95 percent of imports in the fruit and vegetable sector concerns about genetic engineering seriously, too: In and 50 percent of imports of flowers and plants are cer- accordance with an internal guideline issued early in tified. Last year, a start was made by putting Swiss-GAP, 2005, it does not in principle sell any genetically modi- a Eurep-GAP recognised system, into effect for Swiss fied foods. Last year, Migros also decided that it would production. no longer accept genetically modified feed for imported A series of different standards are commonly ap- meat and poultry. It conducts regular spot checks on plied to food processing. Migros requires suppliers of food where there is an increased risk of impurities de- processed food to be certified in accordance with a rived from genetic engineering. Migros can, therefore, standard that is recognised by the Global Food Safety guarantee maximum safety from substances which the Initiative (GFSI). The GFSI was set up by international Swiss population views with considerable skepticism. trading companies in 2000 to improve food safety, increase consumer confidence and improve cost effective- High Minimum Standards ness. All major Swiss and foreign suppliers of Migros’s To guarantee quality in the increasingly integrated glo- processing companies, and the Cooperatives’ own op- bal economy, Migros relies on uniform standards at all eration centres had been certified by the end of 2006. stages in the value-added chain – from agricultural pri- Migros carries out selective inspections of very small re- mary production, through processing right down to gional suppliers, such as fishermen and cheese makers. the ready-for-sale end product in the store (see figure To guarantee food safety right up to the point of sale, above). Migros, therefore, wants to achieve more sus- Migros shops are implementing a proven international tainability in the whole product assortment. No matter quality management system. how aware customers are, or how much they have in their purse, there is a wide range of products available Model Code of Conduct that are produced with respect for human beings, ani- While current industrial standards are mainly concerned mals and the environment. with the safety and quality of the products themselves, The most important standard in the food sector is social and ethical criteria also play an increasingly im- Eurep-GAP (European Retailer Program for Good Agri- portant part in manufacture. Migros wants its custom- cultural Practice). This imposes basic standards on sup- ers to be able to shop with a clear conscience and has pliers of agricultural produce. Aspects of production taken on a leading role in this area. Migros drew up a technology are considered as well as environmentally Code of Conduct back in 1997 placing suppliers un- relevant factors such as the selective use of fertilisers der an obligation to observe social working conditions, and pesticides, careful soil cultivation and erosion con- such as a wage that will secure workers’ existence or a trol. Migros has asked all its suppliers of fruit, vegeta- safe working environment (see table on p. 25 above). bles, flowers and plants to sign up to Eurep-GAP. Now, The umbrella organisation for European retailers has

Migros wants customers to shop with a clear conscience and has consequently produced a Code of Conduct. What we offer 25

now incorporated this Code of Conduct into a Euro- pean Code, the BSCI Standard (BSCI stands for Busi- code of conduct BSCI ness Social Compliance Initiative), and its application continues to expand. Forced labour is prohibited All of Migros’s suppliers of non-food products Forced labour is prohibited: All forms of forced labour – toys, for example – have been complying with the are prohibited, including convict labour, which contra- venes basic human rights. BSCI Code of Conduct since 2003. About 80 percent of all toys bought are manufactured in China. But only Child labour is prohibited about 10 percent of all manufacturers in that country observe socially acceptable production conditions Child labour is prohibited: There can be no improper use of child labour. Any form of exploitation of children that are in line with Western standards. According to is prohibited. independent reports, extremely long working hours are not unusual, wages are below minimum levels Fair emplyment contracts and health and safety regulations are widely abused. Fair employment contracts: Binding employment con- Development aid policy organisations and the Swiss tracts are obligatory. Foundation for Consumer Protection denounced these abuses last year and have set up a ‘toy social impact No discrimination ranking.’ Of the five largest retailers and of the eleven No discrimination: There must be no discrimination most important importers and manufacturers on the on grounds of gender or age, ethnic origin, nationality, Swiss market surveyed, Migros achieved the best result colour of skin, sexual orientation, political opinions, – thanks to the Code. religious and social background. Last year, Migros began to ask food suppliers to follow the BSCI Code as well. By the end of 2006, over Healthy working environment 80 percent of Migros’s food suppliers signed an agree- Healthy working environment: Clear rules and pro- ment to comply with the principles of the Code and to cedures on occupational health and safety must be submit themselves to an audit (see table below on the introduced and complied with. right). Migros is also a co-initiator of ISCOM (Interna- tional Social Compliance Verification), a Swiss NGO es- Solidarity tablished in 2004 by Max Havelaar and welfare organi- Solidarity: In situations or countries where freedom of sations. ISCOM encourages multi-stake-holder dialogue assembly and collective bargaining rights are restricted by law, parallel methods of independent and free in the producer countries, to credibly and independ- organisation and negotiation should be encouraged. ently verify the implementation of the Code. The first verifications took place in 2006 in India and China. Decent wage Decent wage: Wages must at least meet legal and in- Fair Cooperation dustry-norm standards, or exceed them. Migros works with over 3,000 suppliers. It has a database connected to the Internet in which all suppliers Humane working hours are recorded – in addition to the regional Cooperatives’ Humane working hours: Overtime may only be done direct suppliers. Detailed information, such as produc- on a voluntary basis. The maximum permitted weekly tion facilities, sites and certifications can be retrieved working time is 48 hours; the maximum weekly over- on the ‘Supplier Portal.’ It is also possible to analyse time 12 hours. At least one free day must be allowed the origin of products and perform statistical queries. after six consecutive working days. Suppliers can enquire their status and obtain information about standards. Working with suppliers means walking the fine line between cooperation and competition: On the Status of implementation of BSCI Code of Conduct one hand, Migros strives for a close partnership with producers. On the other hand, the market economy is BSCI Non-Food BSCI Food based on competition – and it is in a retailer’s vital interests to be able to offer products and services that are Code signed 80% 85% of a constantly better value. In procurement, therefore, Self-assessment 400 5 economic criteria which are important. The “Neue Mi- Audit 160 5 gros Frische” freshness campaign launched last year for Monitoring 40 5 instance, offers customers lower-priced, and even better Re-Audit 20 - 26 Migros Sustainability Report 06

quality fresh produce, but will gradually and substan- tive measures. The Engagement labels are also subject tially limit the group of suppliers. to strict controls (see table p. 22–23). In 2006, Migros Regardless of its economic interests, Migros sets had some 4000 inspections carried out in Switzerland great store by always treating its business partners de- alone on animal breeding businesses to ensure that cently. This is especially the case because Migros is they were complying with the terms of the Engagement aware that decisions it makes can have far-reaching M-7-Programme. consequences for individual providers. So last year, Mi- Despite the well advanced standardisation, new gros decided due to economic reasons to cease its tur- products are checked on the basis of risk assessments key production. After discussions, Migros and its sup- by SQTS (Swiss Quality Testing Services) on the relevant pliers agreed on a socially acceptable solution, whicht criteria. The SQTS, which is part of the Migros Group, is includes compensation for producers for the non-de- a quality assurance institution with laboratories in Di- preciated scrap value of their fattening sheds. Turkey etikon and Courtepin and inspectors in Hong Kong and fattening businesses whose existence is under threat Shanghai. Over 80 specialists spend their time advising also have the possibility of working at the M-Industrial on hygiene and food legislation and carrying out labora- meat processing company Micarna. tory analyses and technical investigations. Raw materials and products are inspected later on by suppliers and Permanent Controls by Migros, also according to established criteria. In 2006 Every single Standard and Label is monitored by ex- Migros conducted a total of 8,944 product analyses. As a ternal, independent organisations. So when a supplier result, 82 products had to be withdrawn from sale and signs the BSCI Code of Conduct, that is not the end 12 products recalled. There were also 126 official com- of the story. The supplier also has to complete a ques- plaints resulting from external controls. Verkaufsfläche Engagement-Gesamtumsatz Anteil der Labels 2006 Märkte2006 GUPPENUMSAGUPPENUMSATZ TZ MarktantMarktanteile eile GewinnGewinn vor Steuernvor Steuern 2006 2006 Verkaufsfläche AnteilAnteil der derSpar Sparten ten Engagement-Gesamtumsatz Anteil der Labels 2006 Märkte2006tionnaire, assessing its own performance in the social sphere (Self Assessment). Migros conducts a risk assess- 25O pen Information 700 25 30 700 1.5. 2000 30 1.5. 2000 ment and has a Social Audit (inspection) carried out on Communication with its customers is of overriding im- 600 20 600 Bio-Baumwolle Liegenschaftserträge/Übrige 20 25 1.2 Bio-Baumwolle a priority basis by an accreditedLiegenscha firm,ftserträge/Übrige which prepares portance to Migros. In accordance with its Environmen- 25 1.2 Forest Stewardship Council 500 Gastronomie/Gourmessa 1500 Forest Stewardship Council 500 Gastronomie/Gourmessa 1500 Marine Stewardship Council an Audit Report, listing conformitiesBrenn-/Treibstoffe and non-conformi- tal and Social Policy, it strives for the greatest possible 20 Marine Stewardship Council Brenn-/Treibstoffe 15 20 Bio-Baumwolle 15 400 0.9 BU FM / OBI Bio-Baumwolle 400 0.9 BU FM / OBI Max Havelaar ties. Where there are apparentReisen deficits, Migros asks for transparency in product information and traceability. 1000 Max Havelaar Reisen 15 BU Non Food 1000 Eco 10 15 300 Eco corrective measures and arranges for a re-audit to be Suppliers10 declare and date their products in accord- 300 0.6 BU Non Food Forest Stewardship Council Bildung/Kultur 0.6 Forest Stewardship Council Bildung/Kultur 10 200 BU Near Food Marine Stewardship Council carried out. All of this is done by mutual agreement, ance with Migros’s internal regulations. Migros’s Qual- 10 Marine Stewardship Council 200 BU Near Food 500 IP-Suisse Freizeit/Fitness 5 500 IP-Suisse Freizeit/Fitness 5 0.3 IP-Suisse because Migros wants to see an improvement in the ity Management verifies the details on the packaging of 5 100 0.3 BU Frische IP-Suisse 5 100 BU Frische Bio Gastro/Hotel Bio situation, not to exclude suppliers.Gastro/Hotel A supplier will only every0 new item before it arrives on the shelves. 0 0.0 BU Food 0 Max Havelaar 0 0 0 BU Food Max Havelaar 2002 2003 2004 2005 2006 0 0.0 0 Eco be excluded if it refusesGrosshandel to cooperate or fails to meet Every day, Migros serves a total of around 1.4 mil- 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 100 200 300 400 500 600 Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 0 100 200 300 400 500 600 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie the conditions in the longDetailhandel term. In the non-food sec- lion customers. Customer service is, therefore, one of its 7-Punkte-Fleisch-Garantie Detailhandel Bio tor, Migros has now arranged 400 Self Assessments and major concerns. The M-Infoline provides all Migros cus- Bio 160 Social Audits, with corresponding plans for correc- tomers the opportunity of informing themselves about

Eurep-GAP Pozent Eurep-GAPEUREP-GAP Po CEzentRTIFI ED SUPPLIERS GFSI CEProzRTentIFIED SUPPLIERS Auflage Migros Magazin Percent PercentGFSI Prozent Auflage Migros Magazin Anfragen M-Infoline 1000 100 Anfragen M-Infoline 1000 100 100

95 2.5 95 100 120 2.5 120 80 85 80 80 80 2.0 100 WERTSCHÖPFUNGSRECHUNG 80 2.0 100 WERTSCHÖPFUNGSRECHUNG 60 60 60 60 1.5 80 an Unternehmungen (Selbstfinanzierung) 60 1.5 80 an Unternehmungen (Selbstfinanzierung) 40 60 an öffentliche Hand 40 40 1.0 60 an öffentliche Hand 40 1.0 an Kreditgeber

25 40 20 25 40 an Kreditgeber 20 20 0.5 20 0.5 an Kultur / Soziales (Kulturprozent) 10 20 an Kultur / Soziales (Kulturprozent) 20

0 2 0 0 0 an Mitarbeiter 2002 2003 2004 2005 2006 0 0.0 0 an Mitarbeiter 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0.0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 The proportion of fruit and vegetable suppliers The proportion of suppliers audited and certified certified to Eurep-GAP has increased considerably to GFSI has increased sharply since 2003 and has to just short of 100 percent. nearly reached 100 percent (for terminology see diagram on page 24). What we offer 27

Migros serves 1.4 million customers a day. Its customer service is therefore of prime concern.

products and services, to register complaints or to make suggestions. Up to 500 people contact the M-Infoline every day. The customers’ enquiries are answered individually and stored in a database. Thanks to modern call-centre technology, which all Cooperatives have been connected to since mid-2006, questions, suggestions and criticism can be dealt with quickly and thor- oughly. All customer enquiries are assessed monthly and passed on to the appropriate offices within Migros. Such feedback is an important basis for improvements in product quality. Migros keeps its customers informed with its customer magazine. The ‘Migros-Magazin’ appears weekly in all parts of the country with a print run of over 2 mil- GUPPENUMSATZ Marktanteile Gewinn vor Steuern 2006 Verkaufsfläche Anteil der Sparten VeEngagement-Gesamtumsatzrkaufsfläche Anteil der Labels 2006 Engagement-Gesamtumsatz Märkte2006 Märkte2006 GUPPENUMSAlion copies and TZregularly reports on consumer topics as Marktanteile Gewinn vor Steuern 2006 Anteil der Sparten Anteil der Labels 2006 well as current sustainability issues. Last year, for exam- 25 700 30 25 1.5. 700 2000 ple, there was a bonus insert on the subject of energy. 30 1.5. 2000 600 20 Migros also keeps people informed via its Cumu- 600 Bio-Baumwolle Liegenschaftserträge/Übrige 25 20 1.2 Bio-Baumwolle Liegenschaftserträge/Übrige 25 Gastronomie/Gourmessa 1.2 Forest Stewardship Council 500 1500 Forest Stewardship Council lus bonus scheme in which over two million custom- 500 Gastronomie/Gourmessa 1500 Marine Stewardship Council Brenn-/Treibstoffe 20 Marine Stewardship Council 15 Brenn-/Treibstoffe 20 BU FM / OBI Bio-Baumwolle 400 15ers participate. The data from the customer programme0.9 Bio-Baumwolle 400 0.9 BU FM / OBI Max Havelaar Reisen 15 1000 Max Havelaar Reisen enables Migros to address its customers selectively and BU Non Food Eco 1000 10 300 15 Eco 10 0.6 300 BU Non Food Forest Stewardship Council Bildung/Kultur 0.6 Forest Stewardship Council 10 Bildung/Kultur personally. The Cumulus programme is certified under BU Near Food Marine Stewardship Council 200 Marine Stewardship Council 10 200 500 BU Near Food IP-Suisse Freizeit/Fitness 5 the GoodPriv@cy label. In a detailed data protection0.3 500 IP-Suisse Freizeit/Fitness 100 5 BU Frische IP-Suisse 5 0.3 IP-Suisse 5 100 BU Frische Bio Gastro/Hotel audit carried out in 2005, The Swiss Federal Data Pro- Bio 0 Gastro/Hotel 0 BU Food Max Havelaar 0 0 0.0 0 0 Max Havelaar 2002 2003 2004 2005 2006 tection Inspector was satisfied that data were handled 0 0.0 BU Food 0 Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 100 200 300 400 500 600 Eco 2002 2003 2004 2005Grosshandel 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 0 100 200 300 400 500 600 in accordance with the law. Cumulus participants have 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel 7-Punkte-Fleisch-Garantie Detailhandel Bio access via the Internet to all information colleted about Bio their person. Customers can also print out purchase re- ceipts for insurance or guarantee claims.

Eurep-GAP Pozent Eurep-GAP Pozent GFSI Prozent Auflage Migros Magazin GFSICU PrSTOozMentER ENQUIRIES AuCIRflageCULA MiTIgrosON O MagazinF MIGRO S MAGAZINE ThousandAnfragen M-Infoline 1000 Millions Anfragen M-Infoline 1000 100 100 100 2.5 100

120 118 2.5 120 2.4 80 2.3 80 80 2.1 2.1 2.0 2.1 WERTSCHÖPFUNGSRECHUNG

100 97 80 2.0 100 WERTSCHÖPFUNGSRECHUNG 91 60 60 60 80 an Unternehmungen (Selbstfinanzierung) 1.5 60 80 an Unternehmungen (Selbstfinanzierung) 71 1.5 40 60 an öffentliche Hand 40 40 60 an öffentliche Hand

1.0 49 40 1.0 an Kreditgeber 20 40 an Kreditgeber 20 20 40 0.5 20 an Kultur / Soziales (Kulturprozent) 20 0.5 an Kultur / Soziales (Kulturprozent) 0 20 0 0 an Mitarbeiter 2002 2003 2004 2005 2006 0.0 0 0 an Mitarbeiter 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0.0 0 2002 2003 2004 2005 2006 20022002 2003 2003 2004 2004 2005 2005 2006 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 The increase in customer enquiries is due to The total circulation of the Migros magazine in several factors: With email it has become easier to all three languages has levelled off at over 2 million get in contact. M-Infoline has also become much copies. better known. 28 Migros Sustainability Report 06

Footnotes

1 Evaluation of main food labels by the WWF, the Foundation for Consumer Protection and the animal protection organisation “Vier Pfoten” in November 2006.

2 Figures do not contain sales of the Mioplans-Natura label (used until 2003) and the Dolphin-Safe label (since 2005 no longer part of the ‘Engagement’ umbrella label).

3 Products associated with two labels (Migros-Bio + Max Havelaar, Eco + Organic Cotton) were included in the sales of all respective labels but only once in total sales. 29

Society Fair Shares, not the Lion’s Share

The right of society to participate in Migros’s corporate success is enshrined in its Statutes. With its generous Culture Percentage – which receives well over one hundred million francs every year in funding – Migros gives many people access to culture and education. Migros is also involved in projects all over the world seeking model solutions for ethical and social problems. Verkaufsfläche Engagement-Gesamtumsatz Märkte2006 GUPPENUMSATZ Marktanteile Gewinn vor Steuern 2006 Anteil der Sparten Anteil der Labels 2006

25 700 30 1.5. 2000 600 Bio-Baumwolle Liegenschaftserträge/Übrige 20 25 1.2 500 Gastronomie/Gourmessa 1500 Forest Stewardship Council Marine Stewardship Council Brenn-/Treibstoffe 15 20 400 0.9 BU FM / OBI Bio-Baumwolle Max Havelaar Reisen 15 1000 10 300 BU Non Food Eco 0.6 Forest Stewardship Council Bildung/Kultur 10 200 BU Near Food Marine Stewardship Council 500 IP-Suisse Freizeit/Fitness 5 0.3 5 100 BU Frische IP-Suisse Bio Gastro/Hotel 0 0 0.0 BU Food 0 Max Havelaar 0 Eco Grosshandel 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 100 200 300 400 500 600 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 7-Punkte-Fleisch-Garantie 7-Punkte-Fleisch-Garantie Detailhandel 30 Migros Sustainability Report 06 Bio

Eurep-GAP Pozent GFSI Prozent Auflage Migros Magazin Anfragen M-Infoline 1000 s a Cooperative, Migros is less concerned about making profits than public companies ADDED VALUE 100 100 2.5 120 whose investors expect some return for the 2006 80 A 80 2.0 100 capital they have contributed. Customers, employees WERTSCHÖPFUNGSRECHUNG and society benefit especially from added value. The Culture Percentage (1.9%) Lenders (0.1%) 60 80 60 1.5 Cooperative Statutes affirm that apart from selling low- Self-financing (12.3%) an Unternehmungen (Selbstfinanzierung) 40 60 priced goods and services, Migros has another equally an öffentliche Hand 40 1.0 legitimate business objective – to bring cultural goods Public an Kreditgeber 20 40 sector (12.9%) 20 0.5 and cultural services within the reach of the population. 20 an Kultur / Soziales (Kulturprozent) 0 In its Environmental and Social Policy, Migros also de- 0 0.0 an Mitarbeiter 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 clares its social engagement for everyone. As a company Employees (72.8%) 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 that buys goods from all over the world, Migros applies this principle not only in Switzerland, but also, and especially, in the sometimes far-off producer countries. The Net Added Value figure for the Migros Group amounted to CHF 6,153 million in 2006. Staff costs The Unique ‘Culture Percentage’ still account for the lion’s share of this figure. The Migros ‘Culture Percentage’ is a comprehensive, financial engagement by Migros in the areas of culture, society, education, leisure and the economy. This self- commitment is probably unique and firmly enshrined In addition to the institutions, Migros’s own activi- in Migros’s Statutes and clearly differs from sponsor- ties and its support for projects and creative artists are ship where the company expects something in return. also a key component of the Migros Culture Percentage. The Culture Percentage aims to give a wide section of The central concern here is to give people access to con- the population access to culture and education enabling temporary forms of artistic expression – creative artists people to share in the social, economic and cultural as well as members of the public. The activities cov- changes that are taking place in society. er an enormous range: The Zurich Cooperative alone The idea of the Migros Culture Percentage goes supports over 3,000 regional cultural institutions and back to Migros’s founder Gottlieb Duttweiler. In the projects every year under the terms of the Culture Per- same spirit, the Federation of Migros Cooperatives and centage. Below are four current examples of the work of the Migros Cooperatives have undertaken to make an the Culture Percentage at the national level: annual contribution to the Culture Percentage which • Steps is the Migros Culture Percentage’s internation- is paid even when business is not so good. Currently, al festival of dance presenting contemporary dance well over CHF 100 million flow into activities, projects all over Switzerland every two years. The tenth pro- and institutions. In 2006, Migros revised the strategy duction of the festival occured in spring 2006, and of the Culture Percentage, grouping the communica- had under the motto ‘simply perfect’ the ideal body tion about all of the Cooperatives’ activities under one in dance as its theme. A total of 83 events were staged roof, and expanding the website www.kulturprozent.ch in 25 towns with a total of about 25,000 paying spec- accordingly. tators (www.steps.ch). Among the established institutions of the Migros • The Culture Percentage has provided support for Culture Percentage are the Gottlieb Duttweiler Institute pop music in Switzerland with its pop music festival (GDI), four ‘Green Meadow Parks,’ the Monte Generoso m4music for some years now. For the first time, in Railway, the Migros Museum for Contemporary Art, the 2006, this sponsorship was linked to support for small Migros Club Schools and the Eurocentres. The GDI is a music labels which have Swiss musicians under con- think tank and meeting point in Rüschlikon near Zurich tract. These small, independent labels are extremely and deals with visions of the future, consumer behaviour, important for artistic development (www.m4music. global consumer culture and market change (www.gdi. ch). ch). The four ‘Green Meadow Parks,’ spread across Swit- • After the cities of Zurich and Berne, Geneva also zerland are open to the public who can visit them free. opened a ‘Culture Office’ with support from the Cul- As a result of its firm support for the Monte Generoso ture Percentage last year. The Culture Office is a sort Railway, the Migros Culture Percentage has opened up of materials hire agency for young creative artists. a popular mountain excursion to the public in Ticino There they can use and borrow equipment for pho- (www.montegeneroso.ch). The Migros Museum for Con- tography, films and music production at low cost and temporary Art in Zurich sees itself as a centre for modern with no red tape (www.kulturbuero.ch). artistic production. It is a place for reflection as well as • In 2006 the Culture Percentage started a new type artistic creativity (www.migrosmuseum.ch). of project – ‘Innovage’ for retired people with initia- Mitarbeitende Fluktuationsrate Frauenanteil GAV-Anteil Anzahl Lehrstellen Deckungsgrad MPK, Prozent Mitarbeitende Fluktuationsrate Frauenanteil GAV-Anteil Anzahl Lehrstellen Deckungsgrad MPK, Prozent 100,000 15 70 3000 120 100,000 15 3000 120 70 60 2500 80,000 12 MA ohne GAV 100

60 50 MA ohne GAV 2500 100 80,000 12 Globus GAV 2000 80 60,000 9 50 40 Globus GAV Migros GAV 2000 80 60,000 9 1500 60 40 30 40,000 6 Migros GAV 1500 60 1000 40 40,000 6 30 20 20,000 3 1000 40 20 10 500 20 20,000 3 500 20 0 0 10 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 0 Society 0 31 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Wertschöpfung Ausgaben Kulturprozent Millionen Fr Anteil der Themengebiete KP Wertschöpfung COAusgabenST OF CU KulturproLTURE PERzentCENT MiAGllionenE Fr DISTRIBUTION BY SECTOR CHF million 140 2006 Anteil der Themengebiete KP Verwaltung 140 120 %

123 Economic policy (2 ) Verwaltung Wirtschaftspolitik 120 Social issues (4%) 100 116 114 114 112 Infrastr./administr. (6%) Verwaltung Wirtschaftspolitik Freizeit 100 80 Verwaltung Leisure (10%) Wirtschaftspolitik Freizeit Bildung 80 60 Wirtschaftspolitik Freizeit Bildung Soziales 60 40 Freizeit Bildung Soziales Kulturelles 40 20 Culture (23%) Education (55%) Bildung Soziales Kulturelles 20 0 Soziales Kulturelles 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Kulturelles The Culture Percentage provides funding for the The Migros Culture Percentage is raised jointly by segments Culture, Social Issues, Education, Leisure the Cooperatives and the FMC and amounted to and Economy. Education has the largest share of the CHF 116 million in 2006. Culture Percentage.

tive. Innovage aims to help highly qualified pension- and Southwest Asia, and 20 percent from Asia and ers win ambitious commissions for voluntary work. Latin America. Four-fifths of the students attend Eng- There are many people who have left their working lish courses. Eurocentres offers successful foreign lan- lives behind, but who could apply their experience guage training in an international atmosphere, helping to social and cultural purposes (www.innovage.ch). to promote understanding between people from different linguistic, cultural and social backgrounds (www. Education for as Many People eurocentres.ch). as Possible The Migros Culture Percentage has a high standing Ethical and Social Projects and a long tradition in the education sector. The Club Child labour is a problem that cannot be solved simply Schools open up the possibility of an education for peo- by banning it because poor families often depend on ple from all walks of life while also catering to continu- the income their children earn. Take the Indian town ing private or professional development. The Migros of Tirupur, for instance, where many items of clothing Club School was founded in 1944 and can now be found are produced for Migros. Ten years ago, Migros commis- in 54 locations all over Switzerland. The Schools offer sioned the Indian-German K.I.D.S. Foundation to pro- over 600 different courses in languages, IT, management vide an education for children who work for Migros’s and business, and especially leisure. Some ten million suppliers. In 2000, a 12-classroom school was commis- student hours are spent in the Club Schools every year sioned. Migros paid for the land, buildings and facilities – about half of which are in language courses. Thanks out of its ‘Targeted Aid Fund.’ Migros’s suppliers have to support from the Migros Culture Percentage, new now donated money to the Kids School for the third courses are always being offered. Course participants consecutive time. In 2006 over CHF 100,000 was col- also benefit from a wide range of products available lected. The money is being used to extend the school throughout Switzerland, all offering excellent value for buildings, and the number of places for pupils has now money (www.klubschule.ch). risen from 750 to 1,200. In addition, a training centre Eurocentres, the Migros-owned foundation for Eu- for 125 trainees is to be built. Teaching materials and ropean language and education centres, is present in infrastructure are also being improved, and two buses 29 locations on five continents; making it one of the have been purchased for taking pupils to and from the world’s largest providers of language schools in the school. linguistics field. Every year, some 13,000 people at- Contaminated drinking water is the main cause of tend courses; 60 percent of them come from Europe many life-threatening diseases in developing countries;

Each year, well over CHF 100 million flow from the Migros Culture Percentage back to society. 32 Migros Sustainability Report 06

every 15 seconds, a child dies from diarrhoea. One simple method for improving water quality is solar water disinfection (SODIS) developed by EAWAG, the Swiss Federal Institute of Aquatic Science and Technology (www.sodis.ch). It works like this: Transparent PET bottles are filled with polluted water and laid in the sun for six hours. The water is then free of diarrhoea-causing germs. The method may be simple and effective, but it takes time and money to spread the word. As a result of the cooperation between EAWAG, the development organisation Helvetas and Migros, a significant step was taken in 2004 to extend the distribution of SODIS. Mi- gros has agreed to put a total of CHF 1.5 million over at least five years into financing SODIS projects conducted by Helvetas in partner countries. In southern India, Migros has been supporting an Aids prevention programme for three years. The project aims to raise people’s personal responsibility for prevention, and in a strongly religious society to create a climate in which the disease can be fought without taboos. Machines dispensing free condoms have been installed in 25 textile businesses, and literature is also available. The literature contains health information in the regional language, Tamil. The many illustrations help even illiterate people to understand how to protect themselves from infection with HIV. There is also a local organisation sponsored by Migros which does public relations work on this subject. The WWF Pandamobile will soon be celebrating three decades on the road in Switzerland travelling from school to school. Every two years an exhibition with a guest host presents the children with a different environmental topic in this travelling classroom. Mi- gros has been the main sponsor of the Pandamobile since 2001 contributing an annual sum of CHF 200,000. In 2006 and 2007, the converted former Migros mobile shop takes to the road to talk about water. The exhibition gives the schoolchildren many different impres- sions and facts all about water; showing them how to conserve this precious liquid in their daily lives. 33

Employees Excellent Working Conditions

Migros is Switzerland’s largest private employer. It employs around 80,000 people from over 140 nations. For many years, Migros has had a well developed social partnership and progressive national collective agreement in place. Its employees enjoy extensive participatory rights, and receive fair wages and excellent fringe benefits. Migros is firmly committed to vocational training. 34 Migros Sustainability Report 06

ith 79,597 employees, Migros is Switzer- The right of mothers and fathers to be re-employed land’s largest private employer – and one of after they have given up their jobs to look after their W the most progressive. “As a model employ- new baby has been extended. Anyone wishing to resume er, we create the right conditions for a motivating and work after the 12-month family phase should be able performance-oriented work atmosphere that attracts the to do so without losing out. Mothers and fathers, there- best workers”, as it says in the Migros Mission Statement. fore, have a right to be re-employed in the same job, at For Migros, it is especially important to establish solid the same grade and at the same wage as before. Their working relationships with its social partners, to mo- previous period of employment is not lost. New family tivate employees with targeted personal development arrangements and lifestyles are likewise taken into ac- programmes, to give them a sense of personal respon- count. The L-GAV now gives step-parents, foster parents sibility and to cater to their physical and psychological and same-sex partners parity with natural parents, mar- well-being. All of the principles and responsibilities af- ried and cohabiting couples. fecting staff and managers are set out in the Personnel Under the L-GAV, the employer should offer employ- Policy which Migros revised in 2005. ees protection and prospects. Employees, therefore, now continue to receive their previous salary when they are ill Progressive Collective Agreement for two years, making rehabilitation easier. When a com- In 1983, Migros introduced a national collective agree- pany is restructured, the employer is obliged to provide ment (L-GAV) which it has renewed and refined every four active mobility management with a collection of benefits years. The L-GAV is an agreement between Migros and its to support employees so that they receive new opportu- social partners which is generally regarded as exemplary. It nities and prospects in another position. now covers over 40 retail, service and Industry companies Migros’s social and contract partners in the L-GAV operating in 29 business sectors. The L-GAV plays a pio- are the Swiss Distributive Workers’ Association (KV neering role in retailing; a sector in which 250,000 people, Schweiz), the Swiss Butchery Staff Association (MPV) or about 70 percent of the employees, are not covered by and the national conference of Migros Group person- any collective agreement. nel committees. The national conference, representing In 2006, Migros renegotiated the L-GAV. The new all employees, works with KV Schweiz and the MPV to agreement, which will run from 2007 to 2010 and which ensure that there is broad support for the L-GAV among introduces a series of additional benefits, puts major staff. The trade union Syna, even though its members emphasis on greater compatibility between work and sanctioned the new L-GAV 2007–2010, refused to sign the family. The guarantee for a job following maternity new agreement due to trade union policy reasons. leave has been extended to cover the whole pregnancy. To supplement the generous maternity leave (16 to 18 Expanded Social and weeks of full pay), fathers will be allowed a total of four Contractual Partnership weeks’ paternity leave during the child’s first year. The The social and contractual partnership continues to be company will pay for two weeks, and fathers can apply very important at Migros. The new L-GAV puts guaran- for two weeks’ unpaid leave. teed freedom of association on a modern footing.

EMiMtarbeitendePLMiOYtarbeitendeEES FluktuationsrateFLFluktuationsrateUCTUATION RATE FrauenanteilFrauenanteil GAV-AnteilGAV-Anteil AnzahlAnzahl Lehrstellen Lehrstellen DeckungsgDeckungsgrad MPK,rad MPK, Proz Prentoz ent Thousand Percent

100,000100,000 15 15 70 70 3000 3000 120 120 85,733 84,184 12.6 60 60 82,272 MA ohne GAMAV ohne GAV 2500 2500 100 100 81,049

80,000 79,597 80,000 12 12 11.8 11.6 11.5

10.7 50 50 Globus GAGlobusV GAV 2000 2000 80 80 60,00060,000 9 9 40 40 Migros GAMiV gros GAV 1500 1500 60 60 40,00040,000 6 6 30 30 1000 1000 40 40 20 20 20,00020,000 3 3 10 10 500 500 20 20 0 0 0 0 0 0 0 0 0 0 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006

The number of employees has fallen slightly year After reaching a low in 2004, the fluctuation rate has after year. This was due to measures such as struc- slightly increased again. The reason for this is prob- tural and process optimizations. ably the improved job market situation.

WertschöpfungWertschöpfung AusgabenAusgaben Kulturpro Kulturprozentzent Millionen Millionen Fr Fr AnteilAnteil der Themengebieteder Themengebiete KP KP

140 140 VerwaltungVe rwaltung 120 120

WirtschaftspolitikWirtschaf tspolitik 100 100 VerwaltungVe rwaltung Freizeit Freizeit 80 80 WirtschaftspolitikWirtschaf tspolitik Bildung Bildung 60 60 Freizeit Freizeit Soziales Soziales 40 40 Bildung Bildung KulturellesKulturelles 20 20 Soziales Soziales 0 0 2002 20022003 20032004 20042005 20052006 2006 KulturellesKulturelles employees 35

The national collective agreement between Migros and its social partners is generally regarded as exemplary.

All employees are in every respect free to join trade un- land to recognise corporate co-determination: As equal ions, associations and similar organisations. As mem- members, employees have a right to sit on the Migros bers of the L-GAV Equality Commission, the contract companies’ executive boards where they can represent partners also have a guaranteed right of access to busi- the interests of staff at the highest level. ness premises for recruiting members, and for cooperating with the company’s social partners. They, therefore, Good Rates of Pay have rights that extend well beyond those guaranteed Since 2002, Migros has increased its nominal wages by by law. 10.25 percent; equivalent in real terms to a rise of 6.25 The commitment to a pluralistic, multi-level social percent. Migros uses M-FEE, a non-discriminatory pay- partnership is now expressly embodied in the L-GAV. In roll system which ensures that employees receive the addition to the employees’ associations and the Migros same wage for equivalent work. Migros has defined a national conference at the Group level, each enterprise wage band for 22 function levels. Within this band, indi- also has its own personnel committee. The personnel vidual employees are paid according to their experience committees are guaranteed wide-ranging participatory and performance. Over 95 percent of all employees are and joint decision making rights in the co-determina- connected to this system. The minimum wage at Mi- tion regulations at the company and plant level. Among gros, depending on the region, ranges from CHF 3,300 these rights are the right of members of the personnel to CHF 3,500. This lower limit applies to 20-year-olds committees to conduct their business during working with no professional training who now make up just 0.3 hours, and to claim five or more days for further train- percent of the workforce. ing. A comprehensive ban on discrimination and un- There are no excessive managerial salaries at Mi- warranted dismissal is also in place. gros. The six members of the FMC Executive Board The cooperation between the personnel commit- (including the CEO) received a total of CHF 3.8 mil- tees and management is institutionalised. The position lion in 2006. They did not draw any bonuses or other of the personnel commissions is also enhanced by their remunerations. The members of the FMC Board of Di- ability to consult the Equality Commission or a court rectors received a total of CHF 0.98 million in 2006, of arbitration when there are differences of opinion. including attendance fees for meetings. Of this total, The personnel committee is therefore in a position to the Chairman of the Board of Directors was paid CHF represent the interests of employees, for example with 0.36 million, and the nine external members CHF 0.62 organising working hours and in the annual wage ne- million. The CEO and the managing directors of the gotiations. Migros is also the only company in Switzer- affiliated Cooperatives did not receive any remunera-

Mitarbeitende FluktuationsrateMitarbeitende Frauenanteil Fluktuationsrate GAV-Anteil Frauenanteil PROPORTIAnzahlON OF E LMGAehrstellenPV-AnteilLOYEES CO VERED CODeckungsgVER RATIOradAnzahl OF MPK, MIGR Lehrstellen PrOozS PENent SI ON FUND Deckungsgrad MPK, Prozent BY L-GAV/KAB Percent 2006

100,000 15 100,000 70 15 70 3000 120 3000 118 120 116 111 111 108 60 60 2500 2500 80,000 12 80,000 12 MA ohne GAV Employees w/o MA ohne GAV 100 100 50 50 L-GAV (24%) Globus GAV 2000 Globus GAV 80 2000 80 60,000 9 60,000 9 40 40 Migros GAV 1500 Migros GAV 60 1500 60 Globus GAV (5%) 40,000 6 40,000 30 6 30 1000 Migros L-GAV 40 1000 40 20 20 (71%) 20,000 3 20,000 3 10 10 500 20 500 20 0 0 0 0 0 0 0 0 0 0 2002 2003 2004 2005 2006 2002 20032002 20042003 20052004 20062005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 2004 2005 2006 More than three quarters of all employees of the Migros Group are covered by a Migros national col- The cover ratio of the Migros Pension Fund has al- lective agreement (GAV) or the equivalent Migros ways been above 100 percent and has still increased conditions of employment for management (KAB). over the past years.1

Wertschöpfung AWeusgabenrtschöpfung Kulturpro zent Millionen Fr Ausgaben Kulturprozent Millionen Fr Anteil der Themengebiete KP Anteil der Themengebiete KP

140 140 Verwaltung 120 Verwaltung 120

Wirtschaftspolitik 100 Wirtschaftspolitik 100 Verwaltung Verwaltung Freizeit 80 Freizeit 80 Wirtschaftspolitik Wirtschaftspolitik Bildung 60 Bildung 60 Freizeit Freizeit Soziales 40 Soziales 40 Bildung Bildung Kulturelles 20 Kulturelles 20 Soziales Soziales 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006Kulturelles Kulturelles 36 Migros Sustainability Report 06

tion in their capacity as members of the FMC Board rected at women who have only lived in Switzerland for of Directors. eight years or less. They are to be in a position to take The fringe benefits at Migros are also advantageous. up professional training or apply for a job in retailing On top of all the family policy benefits, and on top of within eleven months. The programme has been run- the extended daily sickness benefit insurance, all em- ning since 1997, and over 200 female immigrants have ployees are entitled to 5 weeks’ annual holiday from taken part; most of them successfully. Other integra- the day they join. Young people under 20 and staff from tion schemes include an internal course on the culture the age of 49 have 6 weeks, and staff over the age of 59 of other countries, specific further training for immi- have 7 weeks’ paid leave. Each of these is one to three grants, language courses and a sensitising tool for sen- weeks more than prescribed by law. Migros employees ior management. also benefit from the financial employee profit-shar- The proportion of female employees at Migros is ing scheme, preferential terms on many products and just short of 60 percent. The main influence on this services and shopping concessions. The Migros Pension high figure are the ten Migros Cooperatives, some two- Fund, which is a defined benefits scheme, provides a thirds of whose workforces are women. Migros actively high level of insurance benefits. The retirement pen- promotes equal opportunities through measures such

Whilst generally there is a lack of available apprenticeship places today, Migros is providing more and more openings. sion, assuming maximum insurance years, is 74 percent as further training programmes and development op- of final salary. Two-thirds of contributions to the pen- portunities for women as well as operating a socially sion fund are financed by the employer. The employer acceptable structure for working hours. Migros’s func- contribution rate of 17 percent (employee contribution: tion-oriented payroll system (M-FEE) guarantees equal 8.5 percent of gross salary) means that the benefits paid wages for equivalent work – regardless of gender. The by Migros are well above the average for Switzerland as majority of members of the senior Cooperative bodies a whole. The employer also pays for the Migros old-age – Cooperative Councils and the FMC Assembly of Del- reserve pension which allows employees at all levels to egates – are women, in accordance with the Statutes. At take early retirement. the management level, just under 20 percent are women. Since the reorganisation of the management struc- Equal Treatment and Integration tures in 1998, when management grades were cut from The principle of non-discrimination against employees seven to two, the proportion of women in managerial is enshrined in the national collective agreement. There positions has risen steadily. is to be no discrimination of any kind against employees based on personality characteristics such as gender, ori- Targeted Further Training gin, sexual orientation or disability. Migros ensures that Migros selectively encourages its staff to realise their an atmosphere of mutual respect and tolerance is main- potential. In 2006 the company invested a total of tained among its employees, and it actively supports CHF 27.1 million2 in training and further training for the integration of disabled people. There are about 850 its employees. On average, there was more than one people with disabilities working for Migros. Employees training day for each employee. In addition to the wide who feel that they are subjected to discrimination can range of company further training programmes on of- refer to the company’s social counsellors, the personnel fer, Migros also supports employees who attend ex- committees or to the personnel department. ternal continuing training programmes. The facilities There is considerable cultural diversity at Migros for funding further training are set out in regulations with employees coming from over 140 different na- tailored to the situation of the different Migros enter- tions. The proportion of foreigners is at 28.5 percent prises. Employees’ supervisors decide on contributions well above that of the resident population. Some 60 per- to costs for external further training which will extend cent of the foreigners employed at Migros come from employees’ professional skills. Support is provided, EU countries, mostly neighbouring countries; plus Por- for example, for attaining a Swiss federal professional tugal and Spain. Migros has targeted measures in place skills certificate, up to a technical college degree. In to encourage the integration of employees with differ- most companies, employees also receive heavily sub- ent languages and cultures. The ‘Spice’ job integration sidised entry to leisure, language and IT courses run project is one example run by Migros in Zurich. It is di- by the Club Schools, and sometimes also for courses employees 37

run by the KV Business School, the industrial colleges Health and Safety and adult education centres. Work safety and employees’ health are increasingly important issues at Migros – especially in the M-Industrial Largest Number of Traineeships companies and in logistics. To establish clear principles Migros is a particularly active investor in the training of and provide the tools to prevent accidents and sickness young people. When the second Jowa Training Bakery and to implement statutory requirements for the whole opened in November 2006, Migros held the first Voca- Group, Migros has set up a so-called ‘business group tional Training Day in Gränichen (AG). The aim was solution’ (BGL). This was approved at the end of 2005 to give those involved in vocational training, such as by the Swiss Federal Coordination Commission for Oc- the State, Cantons and Vocational Colleges, an insight cupational Work Safety and is the largest such concept into Migros’s major commitment to basic vocational in Switzerland. The basis of the BGL is a 24-page docu- education by taking an educational centre as an exam- ment – comprising, for example, a safety mission state- ple. Traineeships are currently in short supply every- ment, safety targets and guidelines on training, risk where, and unemployment among young people is in- assessment and procedural planning. There is also a creasing, but Migros is offering more and more training manual available for supervisors containing all inter- places: Since 2002, Migros has increased the number sector documents needed for practical implementation of its traineeships by 16 percent. In 2006, 1,149 train- of the BGL. The documents specific to each business, ees joined a basic educational programme at Migros. A such as risk investigations, risk-analyses and training total of 2,809 young people are currently completing documents, are available on the intranet. a basic vocational training course at Migros’s 40 train- In recent years, the average number of employees ing centres. About 60 percent of all trainees are given involved annually in moderate to serious accidents at the opportunity after passing their final examination of work (i.e. they were incapable of work for at least three continuing to work for Migros. days) at Migros has been around 1,500. The principal Migros is the biggest provider of basic vocational aim of the ‘business group solution’ is to steadily reduce education courses in Switzerland. It offers 37 different this figure. But for Migros, it is actually about more than careers from professionals for the retail trade, through just preventing accidents: The aim is to comprehensive- baker/confectioners, computer engineers, lorry drivers ly improve the health of its staff. In management train- or chemical lab technicians to office workers – the range ing, for instance, subjects such as addiction prevention, is extremely varied. Migros is particularly proud of the stress management, work/life balance and non-violent performance of its graduates: The success rate in final communication are tackled. There is also a wide range examinations in 2006 was 95 percent, well above the of courses for all employees; including health courses national average. This figure shows that the quality as for cashiers, ergonomics at the computer, courses on well as the quantity of training is right. correct lifting and carrying or back exercises. Employ- ees in need can turn to the Migros company social advisory office. This office can offer, for example, advice

Mitarbeitende MitarbeitendeFluktuationsrate FluktuationsrateFrauenanteil FrPRauenanteilOPOGARTIV-AnteilON OF F EMALE EMPLOYEES GAV-AnteilAVAILABLAnzahl LehrstellenE APPRENT ICESHIP PLACESAnzahlDeckungsg Lehrstellenrad MPK, Prozent Deckungsgrad MPK, Prozent Percent Number of places

100,000 100,000 15 15 70 70 3000 3000 120 120 2896

Management 2809 2703 2591 59.8 59.2 58.8 58.8 60 60 58.5 Migros Group MA ohne GAV 2500 100

2500 2424 80,000 80,000 12 12 MA ohne GAV 100 50 50 Globus GAV 2000 Globus GAV 2000 80 80 60,000 60,000 9 9 40 40 Migros GAV 1500 Migros GAV 1500 60 60 40,000 40,000 6 6 30 30 1000 22.1 1000 40 40 19.6 19.6 19.0 20 20 18.5 20,000 20,000 3 3 500 20 10 10 500 20 0 0 0 0 0 0 0 0 0 0 2002 2003 2004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 20032002 20042003 20052004 20062005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 20032002 20042003 20052004 20062005 2006 2002 2003 2004 2005 2006 The proportion of female employees within the In 2006, Migros has provided another 100 openings entire Migros Group lies just below 60 percent. The for apprentices. The decrease shown for 2005–2006 proportion of females in management positions has is due to an adjustment of contract terminations in increased by 2.5 percent last year to 22 percent. the data acquisition system.

Wertschöpfung Wertschöpfung Ausgaben Kulturprozent MillionenA Frusgaben Kulturprozent Millionen Fr Anteil der Themengebiete KP Anteil der Themengebiete KP

140 140 Verwaltung 120 Verwaltung 120

Wirtschaftspolitik 100 Wirtschaftspolitik 100 Verwaltung Verwaltung Freizeit 80 Freizeit 80 Wirtschaftspolitik Wirtschaftspolitik Bildung 60 Bildung 60 Freizeit Freizeit Soziales 40 Soziales 40 Bildung Bildung Kulturelles 20 Kulturelles 20 Soziales Soziales 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Kulturelles Kulturelles 38 Migros Sustainability Report 06

on workplace conflicts or personal or family problems, assistance with health problems, help with everyday legal matters and offers support on financial issues. Last year, the Migros Cooperative Zurich was awarded the Zurich Prize for the Promotion of Health and Well-Be- ing at Work for its comprehensive health management programme. Most Migros enterprises operate a so-called attendance management scheme. Supervisors have targeted discussions with people who are often absent. The main idea of these schemes is to identify any points of stress at the workplace as early as possible. Where physical or psychological problems are evident, it is important to seek a solution with expert help immediately. Migros works closely with sickness, accident and disability in- surers. All actions are focussed on the rapid reintegra- tion of the employees. The meat processing company Micarna was awarded the ‘Vocational Integration Prize 2006’ by the disability insurance agency of the Canton Fribourg in recognition of its efforts to reintegrate employees who had been ill or suffered an accident and who risked disability.

Footnote

1 The cover ratio is influenced by the actuarial valuation interest rate, which was lowered in 2005 and 2006. Without this measure, the cover ratio would have been even higher.

2 External cost of training measures and further training without worktime. 39

Ecology Pioneering Benefits for the Environment

Migros started early to conserve energy, and has been constantly increasing its efforts ever since. As a result of the numerous measures it has introduced, the consumption of electrical power per square metre of sales area is no longer rising. The construction of Switzerland’s first ‘Minergie’ supermarket was a key milestone. Migros has also made a special commitment to climate protection, for which it has defined targets up to 2010. Migros is also undertak- ing huge efforts in waste management and recycling. 40 Migros Sustainability Report 06

igros has been firmly committed to envi- targets. There are also company-specific targets for wa- ronmental protection for over three dec- ter consumption, as well as the use of refrigerants and M ades. It began with energy conservation, waste. and since then further issues have been regularly taken With environmental controls in place, checks can up. Since 1975, for example, Migros has kept consump- be made on whether individually agreed environmen- tion statistics from the M-Industrial companies, the Co- tal targets have been achieved. This assessment and a operatives and their shops. Today, Migros operates a benchmarking should be an incentive for the individu- comprehensive environmental management system al Industrial companies and Cooperatives to introduce which is coordinated by the FMC’s Ecology and Ener- further measures and improve the environmental per- gy Departments. A total of eight staff spend their time formance of Migros as a whole. Transparent consump- working on corporate environmental protection, and tion of resources also makes it possible to react quickly the regional Cooperatives and enterprises have their to adverse trends or disruptions. own environmental officers. Focus on Energy Saving Defined Targets A great deal of energy is consumed in the manufacture, Migros has been cooperating with the Energy Agency storage, distribution and sale of products. Migros’s cur- for Industry (EnAW) since 2002. Set up by major trade rent annual consumption of electrical power is around associations, EnAW actively promotes greater energy ef- 1000 GWh, about 1.7 percent of Swiss electricity con- ficiency and reduced greenhouse gas emissions, and it sumption. Power is needed mainly for product refrig- has signed a corresponding framework agreement with eration, in-store air conditioning, store lighting and the State. Because of this cooperation – with the M-In- for the many different processes used by the Industrial dustrial companies, shops, operations centres1, freight companies and operations centres. Supermarkets are services, and most recently the headquarters of Hotelp- major consumers of electrical power; with the main lan and Migros Bank also being progressively included; culprit being product refrigeration which generally ac- Migros now has binding standards in place to increase counts for over half of the power requirement. Each energy efficiency and reduce CO2 emissions (see table metre in length of refrigeration cabinets uses almost as below). Several leisure facilities and the Globus Group much electricity as a single house. Then there is light- are also currently in the process of defining concrete ing, bread-warming stations, grills, escalators. All of 590

TARGETS AND RESULTS2 OF TARGET AGREEMENTS WITH the ENERGY AGENCY FOR industry

Energy efficiency (%) 2004 2005 2006 2010 on target?

Shops Combustibles 105.6% 105.7% 107.0% 109.9% ok

Industry Combustibles 104.0% 105.9% 106.0% 108.7% ok

Operating Centres Combustibles 100% - 103.4% 110.3% ok

The energy efficiency is a measure of activities carried out by a company to reduce its energy consumption. The greater the share of energy saving measures of the total energy consumption, the greater the efficiency. The starting year for the target agreements (100% energy efficiency) is the year 2000 for shops and industry and the year 2004 for Operating Centres.

CO2-intensity (%) 2004 2005 2006 2010 on target?

Shops Combustibles 80.9% 79.8% 77.6% 84.3% ok

Industry Combustibles 91.0% 82.1% 80.4% 84.2% ok

Operating Centres Combustibles 100% - 87.8% 73.4% ok

Operating Centres Fuels 100% 97.0% 90.3% 86.3% ok

The CO2 intensity is a measure of activities carried out by a company to reduce its CO2 emissions. The greater the share of measures for reducing the total CO2 emissions, the smaller the CO2 intensity. The starting year for the target agreements (100% CO2 intensity) is the year 2000 for shops and industry, and the year 2004 for Operating Centres. Ecology 41

TOTAL ENERGY CONSUMPTION TOTAL ENERGY CONSUMPTION EnwickEnwicklunglung Filialen Filialen KohlendioKohlendioxid spezifischxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Anteil Energieträger 2006 AnteilAnteil Gesa Gesamtenergieverbrauchmtenergieverbrauch 20 06 20 06 EnwickEnwicklunglung Industrie Industrie Kohlendioxid absolut 1000 Tonnen Anteil CO2 Ausstoss 2006 ABSOEnergieLUTE VAL GesamtUES GWh EnergieSEnergiePEC IFIspezifischC spezifisch kWh/1000 kWh/1000 Fr Fr Anteil Energieträger 2006 kWh/m2kWh/m2 Verk Veaufsflächrkaufsfläche e Kohlendioxid absolut 1000 Tonnen kg/1000kg/1000 Fr. Fr. GWh KWh/CHF 1000 of sales kWh/kWh/TonneTo nneProd Pr. od. 400 400 175 8 8 2000 2000 80 80 500 500 175 3 3 Fuels Fuels 350 350 7 7 70 70 70,0 150 150 Logistikbetriebe* 67,3 67,4 1666 67,0

1668 Logistikbetriebe* 1636 Heating 65,7 Heating

1605 Logistikbetriebe*

1576 400 Treibstoffe*Treibstoffe* Logistikbetriebe* 300 300 400 6 6 1500 1500 Electricity 60 60 Electricity 125 125 Industrie 250 50 Übrige BrennstofÜbrigefe Brennstoffe Industrie 250 5 5 50 300 300 100 100 200 40 Filialen 200 4 4 1000 1000 40 FernwärmeFernwärme Filialen 75 75 30 150 150 200 200 3 3 Industrie Industrie 30 Erdgas Erdgas 50 Filialen 100 100 50 2 2 Filialen 500 500 20 20 Heizöl EL 100 Heizöl EL 50 100 25 25 1 10 10 50 1 ElektrizitätElektrizität 0 0 0 0 0 0 0 0 0 0 0 0 2002 20022003 20032004 20042005 20052006 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

The total energy consumption of Migros has in- In relation to sales, total energy consumption was creased slightly since 2002 due to the rising need for reduced in the years 2002 to 2004. Over the last two electrical power. The heating requirement and fuel years, energy consumption has remained constant consumption was reduced year by year. due to an increased need for electrical power.

Enwicklung Industrie EnwickEnwicklung lungFilialen Filialen KohlendioKohlendioxid spezifischxid spezifisch AnteilAnteil CO2 AuCOsstoss2 Ausstoss 2006 2006 Energie Gesamt GWh Anteil Energieträger 2006 PERCENTAGE OF TOTAnteilAL ENE GesaRGYmtenergieverbrauch CONSUMPTION 20 06 Enwicklung Industrie Kohlendioxid absolut 1000 Tonnen Energie Gesamt GWh EnergieEnergie spezifisch spezifisch kWh/1000 kWh/1000 Fr Fr PERCENTAnteilAGE O FEnergieträger ENERGY SOUR 2006CES OF Anteil Gesamtenergieverbrauch 20 06 kWh/m2 Verkaufsfläche Kohlendioxid absolut 1000 Tonnen kg/1000kg/1000 Fr. Fr. TOTAL ENERGY CONSUMPTION CONSUMED BY OPERATING UNITS kWh/kWh/TonneTo Prnneod .Prod. kWh/m2 Verkaufsfläche 2006 Betriebsabfall2006Betriebsabfall spezifisch spezifisch 400 VerwVeerrwtungsquoteertungsquote % % Kundenretouren Total 1000 tonnen 8 2000 80 BetriebsabfallBetriebsabfall 1000 1000 Tonnen Tonnen 400 500 Kundenretouren Total 1000175 tonnen175 8 2000 80 Anteil Abfälle 2006 500 AnteilAnteil Kundenretouren Kundenretouren 2006 2006 Other heating oils (2%)kg/1000kg/1000 Fr. Fr. Anteil Abfälle 2006 350 7 70 District heating (4%) 350 150 7 Logistikbetriebe* 70 150 Logistikbetriebe* 3 4 Logistikbetriebe* 400 Fuels250 (7%)250 Treibstoffe* Logistics Enterprises Logistikbetriebe* 300 400 6 1500 60 60 Treibstoffe* 300 125 6 1500 10 10(19%) 80 80 125 Industrie 250 15 Übrige Brennstoffe Industrie 250 15 5 50 50 Heating200 oil EL (9%) Übrige Brennstoffe 300 100 5 200 Diverse 70 70 300 100 Diverse 200 Batterien 4 40 Fernwärme 8 FilialenIndustry 200 4 Batterien 1000 1000 40 Fernwärme 8 Filialen 12 60 60 12 75 75 Electricity (57%) Companies (42%) Klärschlamm, Sonderabfall 150 200 3 Industrie 30 150 150 Klärschlamm, Sonderabfal150 l 200 Elektroschrot3 t Industrie 30 Erdgas Elektroschrott Erdgas 50 Filialen 6 50 50 Filialen Natural Gas (22%) 6 Holz, Sperrgut, Bauschutt 100 9 50 2 500 20 20 Holz, Sperrgut, Bauschut100 t 9 PE-Milchprodukteflasche2 n 500 100 Heizöl EL Shops (39%) 40 40 100 PE-Milchprodukteflaschen 100 Heizöl EL 50 100 25 25 1 10 Fette, Öle 50 1 10 4 4 Fette, Öle 30 PET Elektrizität 30 6 6 PET Elektrizität 0 0 0 0 0 0 0 0 50 50 0 0 0 0 OrganischeOrganische Abfälle Abfälle 2002 202003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 200420 2005 2006 2002 2003 2004 2005 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20020043 20042005 20052006 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2 2 2002 2003 20043 2005 2006 The Industrial Companies and shops consume ap- 10 3 Electricity0 0 accounts for more than half the energy Tierische NebenproduktTierische Nebenprodukte e 10 consumption.2002 2002 Today,2003 2003 Migros2004 20042005 is using20052006 considerably2006 0 proximately0 the same amount of energy – Industrial 0 0 Metalle Metalle 0 0 2002Companies2003 2004 require,2005 in particular,2006 a lot of heat and the 2002 20022003 20032004 20042005 20052006 2006 more natural gas as fuel as its carbon dioxide emis- 2002 2003 2004 2005 2006 2002 20022003 20032004 20042005 20052006 2006 sions are lower than those of heating oil. From an shops electricity. KunststoffeKunststoffe energy point of view, fuel is of minor importance. Papier, KartPaonpier, Karton

SPECIFIC ENERGY CONSUMPTION Enwicklung FilialenSEnwickPECIFIlungC ENE FRGYilialen CONSUMPTION OF Shops Kohlendioxid Kohlendiospezifisch xid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Anteil Energieträger 2006 AnteilBetriebsabfall BetriebsabfallGesamtenergieverbrauch spezifisch spezifisch 20 06 EnwickOF INDUlungSTR ialIndustrieEnwick COMPlung ANIE SIndustrie VerwkWhVeertungsquoterw /squareertungsquote metre sales % area % Kundenretouren Total 1000 tonnen Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifischEnergie kWh/1000 spezifisch Fr kWh/1000 Fr Anteil Energieträger 2006 BetriebsabfallBetriebsabfall 1000 1000 Tonnen TonnenAnteil Gesamtenergieverbrauch 20 06 kWh/m2 Verkaufsfläche KohlendioKundenretourenxid Kohlendioabsolut To 1000talxid 1000 Toabsolutnnen tonnen 1000 Tonnen Anteilkg/1000 Kundenretouren Fr. 2006 kg/1000kg/1000 Fr. Fr. kWh/AnteilkW/tonAnteilTo of Abfälle productionnne Abfälle Pr kWh/od2006. 2006Tonne Prod. kWh/m2 Verkaufsfläche kg/1000Anteil Fr .Kundenretouren 2006 80 250 400 400 500 175 8 8 2000 2000 80 250 500 175 Electricity 10 10 WasserWavssererbrauch350verbrauch Mio. Mim3o. m3 80 80 Electricity15 7 70 344 Wasserverbraucher 2006 150 350 427

427 7 427 Wasserverbraucher423 2006 15 Logistikbetriebe* 334 70 418 150 330 327 Heating Heating 325 Logistikbetriebe* 200 Logistikbetriebe* 70400 200 Treibstoffe* Logistikbetriebe* 300 Diverse 400 70 6 1500 60 Treibstoffe* 300 Diverse 125 6 Wagenkilometer Bahn/LBatterieKWn LKW spezifisch 1500 60 8 125 WagenkilometerBatterien Bahn/LKW LKW spezifisch NOx,NOx, T. T. PartikelPar tikelT. T. 8 LogistikbetriebeLogistik* betriebe* 60 12 Übrige Brennstoffe Industrie 250 60 12 5 247 245

50 Industrie 242 Klärschlamm, Sonderabfall 250 241 50 Übrige Brennstoffe 150 241 Klärschlamm, Sonderabfall 300 5 Mio. Kilometer Elektroschrott km/1000 Fr. 150 300 100 Mio. KilometeElektroschrotr t km/1000 Fr. 10 10 200 50 100 40 6 Filialen 50 4 1000 Fernwärme 6 Filialen 200 Holz, Sperrgut, Bauschutt 9 4 1000 40 Fernwärme Holz, Sperrgut, Bauschutt 9 75 PE-Milchprodukteflaschen PE-Milchprodukteflaschen 100 150 40 40200 75 3 Industrie 30 100 150 200 3 35 35 2,5 2,5 Industrie 300 8 30 Erdgas 8 8 Fette, Öle 300 8 Erdgas 4 Fette, Öle 50 PET Filialen 4 100 30 30 50 6 2 PET Filialen

123 6 500 20 100 118 2 108 7 500 20 50 108 107 30 30 7 50 Heizöl EL Organische Abfälle Filialen 100 2,0 250 Heizöl EL 50 Organische Abfälle 100 Filialen 20 25 1 2,0 250 10 2 50 6 6 20 25 1 10 2 3 25 25 6 6 Elektrizität 10 3 Elektrizität 0 Tierische Nebenprodukte 10 0 0 200 0 0 0 0 0 Tierische Nebenprodukte 0 0 0 1,5 200 5 0 0 4 2002 2003 2004 20050 2006 20 1,5 5 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 2002 20034 2004 2005 2006 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 20042002202005200320062004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 Metalle 2002 20030 2004 2005 2006 2002 20030 2004 2005 2006 2002 2003 2004 2005 2006 Metalle 0 150 150 4 4 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 15 2002 20022003 20032004 20042005 20052006 2006 15 1,0 1,0 Per ton2 of produced2 products, IndustrialKunststoffe Companies Energy consumption per square metre of sales area 3 Kunststoffe Industrie Industrie 100 3 reduced, in particular, the heating requirement as was reduced drastically since 1990. Past years have 10 10 100 Papier, Karton 2 2 0 Papier, Karton 0,5 0,5 well as the 0consumption of electrical power. still shown a slight reduction. 5 50 50 5 1 1 2002 20022003 20032004 20042005 20052006 2006 0,0 0 0 0,0 0 0 0 0 2002 2003 2004 2005 2006 2002 20022003 20032004 20042005 20052006 2006 2002 2003 2004 2005 2006 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006

Betriebsabfall spezifisch Verwertungsquote % Betriebsabfall Betriebsabfall1000 Tonnen 1000 Tonnen Betriebsabfall spezifisch Verwertungsquote % KundenretourenKundenretouren Total 1000 tonnen Total 1000 tonnen kg/1000 Fr. Anteil Abfälle Anteil2006 Abfälle 2006 Wasserverbrauch Mio. m3 Anteil KundenretourenAnteil Kundenretouren 2006 2006 kg/1000 Fr. Wasserverbrauch Mio. m3 WasserWavssererbraucherverbraucher 2006 2006 250 250 10 WagenkWagenkilometerilometer Bahn/L Bahn/LKW KW LKW LKspezifischW spezifisch NOx, T. Partikel T. 10 80 Logistikbetriebe* NOx, T. Partikel T. 80 Logistikbetriebe* 15 15 200 Mio. Kilometer km/1000 Fr. 200 Diverse 10 70 Mio. Kilometer km/1000 Fr. Diverse 10 70 Batterien 8 Batterien 8 60 12 12 Klärschlamm, Sonderabfal60l 150 Klärschlamm, Sonderabfall Elektroschrott 35 2,5 150 8 Elektroschrott 35 2,5 300 300 8 8 6 8 50 50 6 Holz, Sperrgut, Bauschutt 9 Holz, Sperrgut, Bauschutt 9 PE-Milchprodukteflasche30 n 7 100 40 Filialen PE-Milchprodukteflaschen 30 250 7 100 6 40 Filialen 2,0 2,0 250 4 Fette,6 Öle 6 4 Fette, Öle 30 6 PET 25 25 6 30 6 PET 200 50 1,5 200 5 50 Organische Abfälle4 20 20 1,5 5 2 Organische Abfälle 4 20 20 2 3 3 150 150 4 4 0 Tierische Nebenprodukte10 10 15 0 Tierische Nebenprodukte 2 15 1,0 1,0 2 Industrie 3 2002 2003 2004 2005 2006 0 0 Industrie 100 3 2002 2003 2004 2005 2006 0 Metalle 0 0 10 100 Metalle 0 10 2002 2003 2004 2005 2006 2002 2003 200420022005200320062004 2005 2006 2 2002 2003 2004 2005 2006 0 2002 2003 200420022005200320062004 2005 2006 0,5 0,5 2 Kunststoff0 e 5 50 Kunststoffe 5 50 1 2002 20022003 20032004 20042005 20052006 2006 1 Papier, Karton 0 0,0 0,0 0 Papier, Karton 0 0 0 0 2002 20022003 20032004 20042005 20052006 2006 2002 20022003 20032004 20042005 20052006 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Wasserverbrauch Mio. m3 Wasserverbrauch Mio. m3 WasserverbraucherWasser 2006verbraucher 2006 Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. Logistikbetriebe* Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. Logistikbetriebe* Mio. KilometerMio. Kilometer km/1000 Fr. km/1000 Fr. 10 10

35 2,5 300 8 8 8 35 2,5 300 8 30 7 Filialen 30 2,0 250 7 6 Filialen 2,0 250 6 6 25 25 6 200 200 1,5 5 5 4 4 20 20 1,5 150 4 15 150 4 2 15 1,0 1,0 2 Industrie 3 Industrie 100 3 10 10 100 0,5 2 2 0 0 0,5 50 5 5 50 1 2002 2003 200420022005200320062004 2005 2006 1 0 0,0 0 0 0,0 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 200420022005200320062004 2005 20062002 2003 200420022005200320062004 2005 2006 42 Migros Sustainability Report 06

Migros shops are, therefore, responsible for over half of By incinerating wood waste and using district heat- Migros’s electrical power consumption. ing from refuse incineration plants, Migros is also mak- Migros’s power consumption is rising more or less ing use of renewable energy. In addition, Migros uses a parallel to its corporate growth. The expansion of the number of innovative solar plants. Since 2006, for ex- range of fresh chilled products and automation in the ample, in the Milandia leisure park in Greifensee (ZH) manufacturing plants result in a continuous rise in pow- has a 650 square metres solar collector plant, the sec- er consumption. But Migros has introduced a number of ond largest in Switzerland. Also last year, the M-Parc measures as a result of which consumption per square La Praille offered its roof free of charge to the city of metre of sales area has remained constant in recent Geneva to build a large photovoltaic plant to supply years. The progressive installation of sliding glass lids energy to the city. In terms of overall quantity, however, on freezer cabinets alone has cut annual power con- the proportion of solar energy generation at Migros is sumption by about 10 million kWh. This is equivalent still low. to the consumption of about 3,300 households. A great deal of work is also being done behind the scenes on Doing Something for the Climate energy optimisation. The smoking ban in Migros Res- Migros recognises the dangers of climate change, and taurants introduced in mid-2006 has led to ventilation supports measures to reduce the emission of green- being scaled down. Following the introduction of new house gases such as carbon dioxide (CO2). Migros, shops lighting concepts, illumination levels have been therefore, endorses the federal law on CO2 emissions optimised, while at the same time requiring much less and the international Kyoto Protocol. To make an active electricity. Last year, experts at Migros, in collaboration contribution to climate protection, Migros has entered with the Federal Office of Energy, conducted a study in- into voluntary agreements with the Energy Agency for vestigating the potential for the nationwide deployment Industry (EnAW). As a result, all 590 Migros shops, the of efficient refrigeration equipment. They also played a 10 operations centres, 15 M-Industrial companies and major part in achieving an improved Minergie Standard freight services have binding climate protection and en- for sales areas which will ensure further energy saving ergy targets up to 2010 (see table p. 40). in the long term. Migros generates CO2 emissions by burning fossil Migros’s consumption of thermal energy is roughly fuels in its production plants and heating systems in half its consumption of electrical power. The M-Indus- buildings as well as a result of the petrol and other fuels trial companies account for two-thirds of Migros’s total consumed by its own vehicles. The M-Industrial com- heating requirements. Most of the heating is required panies have managed to stabilise their CO2 emissions for production processes, such as baking, cooking and in recent years despite increased production levels. By sterilisation or UHT sterilisation. Over the past few using waste heat and replacing oil by gas, and despite years, heat recovery and insulation have substantially a massive increase in floor space, the shops have actu-

All Migros Shops, Operating Centres, Industry Companies and the transport operation have binding energy and climate targets. reduced the specific heat requirement per tonne pro- ally managed to reduce emissions. Migros’s goods trans- duced. Nevertheless, absolute heat consumption by the portation services have also cut their CO2 emissions; whole Group has continued to rise; mainly because of especially through the use of bio fuels. Thanks to these increased production at the M-Industry companies. positive developments, Migros met its specific targets The latest example of Migros’s continuous progress for 2006, and received corresponding certificates from in energy saving is the ‘Migros Markt’ in Amriswil (Thur- EnAW. gau) which opened its doors for the first time in autumn Apart from carbon dioxide, there are other green- 2006. This shop manages without conventional heating, house gases, such as the hydrocarbons CFC and HCFC, and is the first supermarket to comply with the Minergie which contain fluorine and chlorine. These substances Standard. This has been made possible by a highly insu- are still used in many refrigeration facilities in Switzer- lated building shell and by increased use of heat pumps land – including Migros – as refrigerants in refrigera- to recirculate waste heat from refrigeration equipment. tion equipment, air conditioning equipment and heat The Migros Cooperative Eastern Switzerland now aims pumps. The State intends to gradually end the use of to build all new properties according to the Minergie CFCs and the less climatically harmful HCFCs. By the Standard where possible. end of 2006 every Migros enterprise had prepared an Ecology 43

inventory of refrigeration equipment, recording the re- Enwicklung Industrie Enwicklung Filialen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 frigerants used by category. Only a very small quantity TOTKohlendioAL CARBxidON absolutDIOXIDE 1000 EMISSI ToONnnenS kWh/Tonne Prod. of CFCs kWh/m2are still in useVerk – especiallyaufsfläch ine older shops which 1000 tons kg/1000 Fr. 400 are due for renovation. Migros now has a revised with- 8 2000 80 500 175 Fuels3 70 350 drawal strategy, and in accordance with the law aims to 150 7 146 145 145 145 Heating oils Logistikbetriebe* Treibstoffe* Logistikbetriebe* 300 adapt all40 plants0 concerned to environmentally friendly 139 6 1500 60 125 Industrie 250 technology in the medium term. 5 50 Übrige Brennstoffe 300 100 200 4 1000 40 Fernwärme Filialen High Recycling Quotas 75 30 150 200 3 Industrie Erdgas 100 Every year a total of about 200,000 tonnes of waste is 50 2 Filialen 500 20 Heizöl EL generated10 0at Migros – in roughly equal proportions for 25 10 50 1 Elektrizität 0 the M-Industrial companies and the ten regional Coop- 0 0 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 eratives. Migros2002 aims2003 to 2004close material2005 2006 cycles as far as 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 possible and to design products and packaging so that Despite of the growth of the Migros group, emis- they can be disposed of in an environmentally friend- sion of CO2 remained the same between 2002 and ly manner. Migros, therefore, uses reusable containers 2005. During the past year, Migros even managed instead of cardboard boxes in logistics where it is eco- to significantly reduce emission of CO2. This can be logically practical. There are some seven million plastic attributed to the group’s continuously implemented reusable containers in circulation. Migros is the only measures for climate protection. company in the world to use reusable plastic contain- Enwicklung Filialen ers specially developed for transporting bananas. Once Kohlendioxid spezifisch Betriebsabfall spezifisch Verwertungsquote % Enwicklung Industrie CARBON DIOXIDE EMISSIONS SPECIFIC Anteil CO2 Ausstoss 2006 Energie Gesamt GWh EnergieBetriebsabfall spezifisch 1000 kWh/1000 Tonnen Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 Kundenretouren Total 1000 tonnen theseKohlendio containers arrivexid absolut in shops, 1000 they are To nnenfolded togeth- kg/1000 Fr. Anteil Abfälle 2006 kWh/Tonne Prod. kWh/m2 VerkaufsflächAnteile Kundenretouren 2006 kgkg/1000 / CHF 1000 Frof .sales er and transported back to the producers who then refill 250 400 175 8 2000 80 500 them. Migros also places great emphasis on recycling: Fuels3 10 80 350 15 7 Heating oils 70 150 Logistikbetriebe* 200 Over 60 percent of industrial waste is reused. 6,4 Logistikbetriebe* 400 6,1 Treibstoffe* Diverse 70 300 6 5,8 60 Batterien 5,9 1500 125 5,6 8 12 More and more discarded goods and waste products Industrie 60 250 5 50 150 Übrige Brennstoffe Klärschlamm, Sonderabfall 300 are becoming10Elektroschrot0 t valuable commodities: Higher prices can, 50 200 40 6 Filialen 4 1000 Fernwärme Holz, Sperrgut, Bauschutt 9 therefore, be attained on the waste materials market; 40 75PE-Milchprodukteflaschen 30 100 150 200 3 Industrie Erdgas resulting in reduced disposal costs and lower prepaid 4 Fette, Öle Filialen 30 100 6 50PET 2 500 20 50 Heizöl EL 100 recycling charges. Last year, Migros launched the ‘Waste Organische Abfälle 20 25 10 50 1 2 3 Exchange’ project in order to use this potential. The aim Elektrizität 10 0 0 0 0 Tierische Nebenprodukte 0 of the0 project is for enterprises to no longer dispose of 0 2002 20022003 20032004 20042005 20052006 2006 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Metalle 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 their waste individually, but collect it together and pool 2002 2003 2004 2005 2006 The specific carbon dioxide emissions were sig- Kunststoffe the waste disposal channels. This should optimise the nificantly decreased during the past years; this was quality of waste management and reduce costs. Papier, Karton achieved by increasing energy efficiency and imple-

menting climate protection measures as part of the Proper Waste Management target agreements with the Energy Agency for the Virtually all customer returns are recycled. Migros op- Industry. erates the largest deposit system for empty containers Enwicklung Filialen and disused products inKohlendio the entire retailxid spezifisch sector. In 2006, Enwicklung Industrie PERCENTAGE OAnteilF TOT COAL 2C ARBAusstossON DI O2006XIDE Energie Gesamt GWh Energie spezifisch kWh/1000 FrBetriebsabfall spezifischAnteil Energieträger 2006 Anteil GesamtenergieverbrauchVerwertungsquote 20% 06 Kundenretouren Total 1000 tonnen Kohlendioxid absolut 1000 MigrosTonnen accepted about 13,000kg/1000 tonnes Fr. of customer waste. Betriebsabfall 1000 Tonnen kWh/Tonne Prod. kWh/m2Anteil Ve Kundenretourenrkaufsfläche 2006 EMISSIONS kg/1000Wa Frsser. verbrauch Mio. m3 Anteil Abfälle 2006 Because of its well developed infrastructure, Migros 2006 Wasserverbraucher 2006 400 8 2000 80 500 175 250 Wagenkilometer Bahn/LKW LKW spezifisch achieves a very high quota of sorted collection of cus- 70 10 80 350 NOx,150 T. Partikel T. 7 Logistikbetriebe* 15 tomer returns. The in-shop redeposit system covers PET Logistikbetriebe* Logistikbetriebe* 400 Shops (21%) 200 60 Treibstoffe* 300 Mio. Kilometer km/1000 Fr. 6 1500 10 Diverse 70 125 beverage bottles, PE dairy product bottles, batteries and 8 Batterien Übrige Brennstoffe Industrie 12 250 5 50 60 300 100 electrical appliances and devices. Specialist markets take Industrial 150 Klärschlamm, Sonderabfall 8 200 35 2,5 Elektroschrott 300 8 4 Companies (53%) 1000 40 Fernwärme 50 Filialen 6 75 back a range of other materials, such as lamps and light- Holz, Sperrgut, Bauschutt 9 30 150 30 200 PE-Milchprodukteflaschen 7 3 Industrie 100 Filialen Erdgas 40 2,0 250 ing, paints and varnishes. Migros supports all reliable 6 50 Filialen Fette, Öle 100 6 2 500 20 4 30 6 25 PET private sector waste disposal systems, and also the Swiss Logistics Heizöl EL 100 200 50 50 1,5 25 5 1 Enterprises4 (26%) 10 4 Organische Abfälle 20 20 Lighting Recycling Foundation which was established at 2 Elektrizität 3 0 0 0 10 0 1500 4 0 0 Tierische Nebenprodukte 200215 2003 2004 2005 2006 1,0 the end of 2005. These systems are funded by prepaid 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 3 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 Industrie 0 100 Metalle 0 10 recycling charges, which the dealer pays over for each Due to their high use of heating oil, Industrial Com- 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2 0 2002 2003 2004 2005 2006 0,5 product sold. Migros has most recently given its strong panies are responsible for over half of the carbon Kunststoffe 5 50 2002 2003 2004 2005 2006 support for1 the expansion of voluntary waste manage- dioxide emissions. 0 0,0 Papier, Karton 0 ment systems.0 Toys and equipment used in building, 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Betriebsabfall 1000 Tonnen Betriebsabfall spezifisch Verwertungsquote % Kundenretouren Total 1000 tonnen kg/1000 Fr. Anteil Abfälle 2006 Anteil Kundenretouren 2006 Wasserverbrauch Mio. m3 250 Wasserverbraucher 2006 10 80 Wagenk15 ilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. Logistikbetriebe* 200 70 Diverse Mio. Kilometer km/1000 Fr. 10 8 Batterien 60 12 Klärschlamm, Sonderabfall 150 Elektroschrott 8 6 50 35 2,5 300 8 Holz, Sperrgut, Bauschutt 9 PE-Milchprodukteflaschen 100 40 30 7 Filialen 250 Fette, Öle 2,0 6 4 30 PET 25 6 6 50 200 Organische Abfälle 20 1,5 5 4 2 20 3 0 Tierische Nebenprodukte 10 150 4 15 2002 2003 2004 2005 2006 2 0 0 1,0 Industrie Metalle 0 3 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 10 100 2002 2003 2004 2005 2006 2 0 Kunststoffe 0,5 5 50 2002 2003 2004 2005 2006 1 Papier, Karton 0 0,0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Wasserverbrauch Mio. m3 Wasserverbraucher 2006 Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. Logistikbetriebe* Mio. Kilometer km/1000 Fr. 10

8 35 2,5 300 8 7 30 250 6 Filialen 2,0 25 6 200 5 4 20 1,5 150 4 15 2 1,0 Industrie 3 10 100 2 0 0,5 5 50 2002 2003 2004 2005 2006 1 0 0,0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Enwicklung Industrie Enwicklung Filialen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 Enwicklung Industrie Enwicklung Filialen Kohlendioxid absolut 1000 Tonnen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 kWh/Tonne Prod. kWh/m2 Verkaufsfläche Kohlendioxid absolut 1000 Tonnen kg/1000 Fr. kWh/Tonne Prod. kWh/m2 Verkaufsfläche kg/1000 Fr. 400 8 2000 80 500 175 400 8 2000 80 500 175 70 350 150 7 350 7 Logistikbetriebe* 70 Logistikbetriebe* 400 150 60 Treibstoffe* 300 6 Logistikbetriebe* 1500 Logistikbetriebe* 400 125 60 Treibstoffe* 300 6 1500 Industrie 250 125 5 50 Übrige Brennstoffe 300 Industrie 250 100 5 50 Übrige Brennstoffe 200 300 100 4 1000 40 Fernwärme Filialen 200 75 4 1000 40 Fernwärme Filialen 30 150 200 75 3 Industrie Erdgas 30 150 200 50 3 Filialen Industrie Erdgas 100 2 500 20 50 Filialen Heizöl EL 100 100 2 500 20 50 25 1 10 Heizöl EL 100 50 25 1 10 Elektrizität 0 0 0 0 0 0 Elektrizität 0 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 20060 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

44 Migros Sustainability Report 06

Enwicklung Industrie Enwicklung Filialen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 Enwicklung Filialen Kohlendioxid absolut 1000 Tonnen Kohlendioxid spezifisch Anteil Gesamtenergieverbrauch 20 06 Enwicklung Industrie kWh/m2 Verkaufsfläche kg/1000 Fr. Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 kWh/Tonne Prod. kWh/m2 Verkaufsfläche Kohlendioxid absolut 1000 Tonnen kg/1000 Fr. Betriebsabfall spezifisch 400 kWh/VerwToernnetungsquote Prod. % 8 2000 80 Betriebsabfall 1000 Tonnen 500 Kundenretouren Total 1000 tonnen175 Betriebsabfall spezifisch Verwertungsquote400 % Anteil Kundenretouren 2006 8 2000 80 BetriebsabfallTOTAL OPERAT 1000IONAL To WASnnenTE Skg/1000PECIFIC FrOPE. RATIONAL WASTE Anteil Abfälle 2006 350 Kundenretouren500 Total 1000 tonnen 175 7 70 150 Anteil Kundenretouren 2006 Logistikbetriebe* 1000 tons kg/1000Kilogram Fr. / CHF 1000 of sales Anteil Abfälle 2006 350 70 Treibstoffe* Logistikbetriebe* 300 400 150 6 7 1500 60 250 125 Logistikbetriebe* Logistikbetriebe* 400 250 Treibstoff10e* 30800 6 1500 60 Übrige Brennstoffe Industrie 250 15 125 5 50 Shops and 10 80 300 100 200 Übrige Brennstoffe 9.0 Industrie 250 15 5 50 4 Diverse 200 70 4 8.3 202 8.2 202 Filialen 300 40 201 201 Logistics Enterprises 100 Fernwärme 8.1 Batterien 1000 199 200 8 8.0 70 Diverse 200 12 75 4 40 Fernwärme Filialen 150 60 200 Batterien 3 Industrie 1000 30 8 Klärschlamm, Sonderabfall 150 IndustrialErdgas 60 12 75 Elektroschrott 30 150 Klärschlamm, Sonderabfall 100 15500 200 50 2 3 Filialen Industrie 20 Companies Erdgas 6 Elektroschrott 500 Holz, Sperrgut, Bauschutt 50 9 50 Filialen Heizöl EL 6 10400 100 25 PE-Milchprodukteflaschen 2 500 10 20 100 Holz, Sperrgut, Bauschutt 50 9 1 Heizöl EL 40 100 PE-Milchprodukteflaschen 100 4 Fette, Öle 50 25 1 10 Elektrizität 0 30 6 0 PET 0 0 0 4 Fette, Öle 0 50 Elektrizität 30 6 PET 2002 2003 2004 2005 2006 Organische Abfälle 2002 2003020 2004 2005 2006 2002 20030 2004 2005 2006 2002 20030 2004 2005 2006 2002 20030 2004 2005 2006 0 50 2002 20030 2004 2005 2006 2 Organische Abfälle 20 2002 2003 2004 2005 2006 3 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 10 2002 2003 2004 2005 2006 0 2 Tierische Nebenprodukte 3 10 0 2002 2003 2004 2005 2006 0 Tierische Nebenprodukte 0 Metalle 0 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 Metalle 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Kunststoffe 2002 2003 2004 2005 2006 The total volume of waste has remained more or less As Migros sales have increased, whilst volumes of Kunststoffe constant during the last years. The Shops and Logis- waste have more or less remained unchanged, the Papier, Karton Papier, Karton tics Enterprises produce nearly the same amount of specific volume of waste has fallen over the past waste as the Industrial Companies. years. Enwicklung Filialen Kohlendioxid spezifischKohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Anteil Energieträger 2006 Betriebsabfall spezifischAnteil Gesamtenergieverbrauch 20 06 Enwicklung VeIndustrierwEnwickertungsquote lung Industrie % KundenretourenEnwicklung Filialen Total 1000 tonnen Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifischEnergie kWh/1000 spezifisch Fr kWh/1000 FrBetriebsabfall 1000 ToAnteilnnen Energieträger 2006 Betriebsabfall spezifischAnteil Gesamtenergieverbrauch 20 06 VerwertungsquotekWh/m2 % Verkaufsfläche Kohlendioxid absolutKohlendioAnteil 1000 Kundenretourenxid To absolutnnen 1000 2006 Tonnenkg/1000 Fr. Betriebsabfall 1000 Tonnen kg/1000 Fr. COMPOAnteilSITI ONAbfälle OF OPE 2006RATIONAL WASTE kWh/TonneR PrECodkWh/YC. LINToG nneRATE Pr FodOR. OPERATIONAL WASTEkWh/m2 VeKundenretourenrkaufsfläche Total 1000 tonnen kg/1000 Fr. Percent Anteil Kundenretouren 2006 kg/1000 Fr. 2006 Anteil Abfälle 2006 400 175 8 2000 80 80 250 400 500 500 175 8 2000 70 250 10 350 80 15 150 7 70 Timber, bulky Wawaste,sser buildingverbrauch rubble (3%); Mi slurry,o. m3 special waste 350 150 7 Logistikbetriebe* 10 Wasserverbraucher80 2006 Logistikbetriebe* 200 Treibstoffe* LoWagistikbetriebesser* verbrauch Mio. m3 70 400 6 Treibstoffe* (2%); miscellaneous (2%);Logistik plasticbetriebe *(2%);Di metalverse (1%); grease,30 Waoil0 (1%)sser verbraucher 2006 400 15 6 1500 60 60 300 125 Batterien 1500 200 8 70 62.7 125 Wagenkilometer Bahn/LKW LKW spezifisch Diverse 60 12 NOx, T. Partikel T. Industrie 250 58.3 58.8 58.4 50 Übrige Brennstoffe Industrie Logistikbetriebe* 250 5 Batterien

Klärschlamm, Sonderabfall 55.4 Wagenkilometer Bahn/LKW LKW spezifisch5 50 150 Übrige Brennstoffe 8 Organic waste (30%) 300 100 Elektroschrott NOx, T. Partikel T. Logistikbetriebe* 60 300 12 100 Mio. Kilometer km/1000 Fr. Klärschlamm,200 Sonderabfall 50 4 40 150 Fernwärme 6 Filialen 10 200 Elektroschrott 4 1000 40 Paper, Filialen Holz, Sperrgut, Bauschutt 9 Mio. Kilometer km/1000 Fr. 1000 Fernwärme 10 50 75 PE-Milchprodukteflaschen 100 6 150 40 200 75 3 Industrie 30 cardboard (20%) Holz, Sperrgut, Bauschutt 150 200 9 3 Industrie 30 Erdgas PE-Milchprodukteflaschen2,5 100 4Erdgas 8 Fette, Öle 40 50 35 Filialen 300 8 20 100 30 100 6 50 35 PET 2 2,5 Filialen 500 20 8 Fette, Öle 2 300 8 500 50 Heizöl EL 4 30 100 PET 7 Heizöl EL Organische Abfälle 50 20 100 6 25 30 1 250 10 50 2 6 Filialen 50 2530 1 2,0 7 10 RefuseOrganische (20%) Abfälle 3 250 Elektrizität Filialen 20 25 2,0 6 Elektrizität 6 Tierische Nebenprodukte 0 10 0 0 0 0 0 2 Animal 0 0 0 3 0 0 200 6 0 0 2002 2003 2004 200510 2006 25 1,5 5 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 20030 2004 2005 2006 0 4 Tierische Nebenprodukte 0 2002 2003 2004 2005 20022006 2003 2004 2005 2006 2002 2003 2004 20022005 2003200620 2004 2005 2006 2002 2003 2004 20022005 20020063 2004 2005 2006 200 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 by-products (20%) Metalle 0 2002 2003 2004 2005 2006 1,5 5 2002 2003 2004 2005 2006 2002 20030 2004 2005 2006 4 2002 20030 2004 2005 2006 20 150 4 Metalle 2002 20030 2004 2005 2006 15 2002 2003 2004 2005 2006 2 Kunststoffe 2002 2003 2004 2005 2006 1,0 150 4 Industrie 2002 2003 2004 2005 2006 15 1,0 3 2 Kunststoffe The recycling rate for operational waste is constant- 100 Organic waste, such as expired food products or Industrie 10 3 Papier, Karton 100 2 waste from 0production and offcuts, constitutes the ly increasing. One of the reasons for this trend are 10 0,5 Papier, Karton 5 0,5 50 2 highest0 waste percentage.2002 2003 Animal2004 2005by-products2006 refer the increasing price of valuable substances making 50 1 5 1 to slaughtering2002 2003 products2004 2005 not used2006 for food (bones, recycling more worthwhile. 0 0,0 0 0 0 0,0 innards, etc.). 2002 2003 2004 2005 2006 2002 2003 2004 2005 20060 2002 2003 2004 2005 2006 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Betriebsabfall spezifisch Betriebsabfall 1000 Tonnen Betriebsabfall spezifisch VerwertungsquoteVerw %ertungsquote % KundenretourenKundenretouren Total 1000 tonnen Total 1000 tonnen Betriebsabfall 1000 Tonnen Anteil Abfälle 2006 Anteil KundenretourenAnteil Kundenretouren 2006 2006 kg/1000 Fr. kg/1000 Fr. WasserverbrauchAnteil AbfälleMio. m3 2006 Wasserverbraucher 2006 CUSTOMER RETURNS TYPE OF CUSTOMER RETURNS Wasserverbrauch Mio. m3 1000 tons 2006 250 250 Wasserverbraucher 2006 10 80 Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. 10 Logistikbetriebe* 80 15 15 Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. 200 70 Logistikbetriebe* Mio. Kilometer Batteries (2%)km/1000 Fr. 200 10 Diverse 70 PE milk product bottles (6%) Diverse 12.9 Batterien 8 8 Mio. Kilometer Batterien km/1000 Fr.

12 11.8 10 60 1211.7 Klärschlamm, Sonderabfall 60 11.2 150 Klärschlamm, Sonderabfall Elektroschrott 2,5 150 8 35 Elektroschrott 300 8 6 50 50 6 Holz, Sperrgut, Bauschutt 9 35 2,5 300 8 8 Holz, Sperrgut, Bauschutt 9 PE-Milchprodukteflaschen 7 100 40 Electrical30 PE-Milchprodukteflaschen 250 100 6 Filialen 40 2,0 Fette, Öle goods waste (27%) 30 7 4 Fette, Öle 30 Filialen 25 PET 2,0 250 6 4 6 30 6 6 PET 50 25 200 6 50 Organische Abfälle 1,5 5 4 Organische Abfälle 20 20 20 PET (65%) 200 2 1,5 5 2 4 3 3 20 150 4 0 Tierische Nebenprodukte 10 10 15 0 2 Tierische Nebenprodukte 1,0 150 4 2002 2003 2004 2005 2006 0 0 Industrie 15 3 2002 2003 2004 2005 2006 0 Metalle 0 0 1,0 100 2 Metalle 0 10 3 2002 2003 2004 20022005 20032006 2004 2005 2006 2002 2003 2004 20022005 20032006 2004 Industrie2005 2006 5 100 2 0 2002 2003 2004 20022005 20032006 2004 2005 2006 10 0,5 Kunststoffe 5 50 2 2002 20030 2004 2005 2006 Kunststoffe 0,5 1 The volume of valuable substances returned by PET bottles constitute5 the largest percentage of 50 2002 Papier2003, Karton 2004 2005 2006 0 0,0 0 0 1 Papier, Karton customers is increasing. Customer returns are col- customer returns. Using specific campaigns, Migros 2002 20030 2004 2005 2006 2002 20030,0 2004 2005 2006 2002 20030 2004 2005 2006 2002 20030 2004 2005 2006

lected by Migros and forwarded to the Recycling is attempting to improve2002 the 2003still unsatisfactory2004 2005 recy2006- 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 organisations. cling of batteries (see main text).

Wasserverbrauch Mio. m3 Wasserverbrauch Mio. m3WasserverbraucherWasser 2006verbraucher 2006 WagenkilometerWa Bahn/LgenkilometerKW Bahn/LKWLKW spezifisch LKW spezifisch NOx, T. Partikel T. Logistikbetriebe* NOx, T. Partikel T. Logistikbetriebe* Mio. Kilometer Mio. Kilometer km/1000 Fr. km/1000 Fr. 10 10

35 2,5 8 8 35 2,5 300 300 8 8 30 7 Filialen 30 2,0 250 7 6 Filialen 2,0 250 6 6 25 25 6 200 200 1,5 5 5 4 4 20 20 1,5 150 4 15 150 4 2 15 1,0 1,0 2 Industrie 3 Industrie 100 3 10 10 100 0,5 2 2 0 0 0,5 50 5 5 50 1 2002 2003 2004 20022005 20032006 2004 2005 2006 1 0 0,0 0 0,0 0 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005200220062003 2004 20022005 20032006 2004 2005 20062002 2003 2004 20022005 20032006 2004 2005 2006 Ecology 45

gardening and hobbies have been integrated into the road transport costs by 10 percent. In the past year, Mi- ‘electrical appliances’ category. gros has already managed to reduce the cost per pallet In 2006, Migros played a substantial part in the reor- by 5 percent. It, therefore, also hopes to achieve a reduc- ganisation of PET recycling in Switzerland with two other tion in environmental pollution. major retailers joining the system. The new solution will To achieve the transport targets agreed with the improve the public service – collection in public places Energy Agency for Industry, Migros uses climate- – which means that the collection quota should rise. It friendly fuels. Seven Cooperatives are already using a could also mean a cut in recycling charges. Migros passes type of diesel containing rapeseed methyl ester (RME) the cost reduction on in the form of a price deduction on – Migros Eastern Switzerland even uses a 30 percent M-Budget water. Last year, to improve the unsatisfactory blend. RME is produced from rape, and is climate- collection rate for batteries, Migros was actively involved neutral in the consumption phase which means that in the national ‘Battery Collection Weeks’. Batteries are in combustion it only releases as much carbon dioxide hazardous waste, but consumers often dispose of them as the plant originally took in. The Migros Coopera- in their refuse. In the autumn, Migros placed so-called tive Zurich has been operating eight lorries since 1999 ‘Battery Bags’ on its shop shelves which had information (eleven since 2005) that run on totally climate-neutral

With a volume of one million tons per year, Migros is the largest rail customer of SBB Cargo in Switzerland. about mandatory returns and which customers could use Biogas which is produced from its own green waste for the collection of used batteries. and leftover food. Litter – rubbish that is dropped or carelessly For business and commuter traffic, Migros has a thrown away – is a growing problem in towns and de- number of attractive offers for its employees. The long- veloped areas. Constantly increasing volumes of bev- standing partnership with the car-share enterprise Mo- erage cans and bottles, take-away packaging, newspa- bility is a key activity promoting more environmental- pers and cigarettes are polluting streets, squares and ly friendly business and private travel. The Federation green spaces. Towns and local authorities are increas- of Migros Cooperatives not only allows employees to ing their efforts to pass the rising cost of cleaning up use Mobility for business trips, it also offers favourable litter on to the retailers. Migros has recognised the terms for private trips. Employees also receive discounts problem and wants to cooperate with the Swiss retail on season tickets for public transport. Other Coopera- community of interests (IG DHS, see page 11) in tack- tives and enterprises have introduced similar schemes ling this problem. The IG DHS has already commis- of their own. In 2006 Migros also took part in ‘Bike to sioned a study to examine the role of the retail sector. work.’ This campaign was conducted by the cycling lob- Migros is in discussion with local authorities and is by IG Velo, and underwritten by the Federal Offices of looking at ways to combat the scourge of litter. Sport and Public Health, and the Swiss Council for Ac- cident Prevention (bfu). Over four weeks, 1600 Migros Optimised Transport Systems employees travelled to work mainly by bike. Migros was In its Environmental and Social Policy, Migros states also a co-initiator and main sponsor of the campaign. its commitment to improved transport efficiency and to logistics and transport systems whose impact on the Innovations in Shopping Traffic environment is reduced. Over long distances, Migros, Migros is also in favour of ecological improvements in therefore, uses rail transport whenever possible: With customer traffic. Over four-fifths of all shops are easy to an annual freight volume of one million tonnes, Migros reach on foot or by bike. The twenty or so large centres is the biggest customer of SBB Cargo using the Swiss located in developed areas are also accessible by public railway network. For domestic transport, about 30 per- transport. Where building circumstances allow, shops cent of the total distance travelled is by rail. Deliveries have places available for parking bikes. In cooperation to shops, however, is carried out almost exclusively by with the car-share enterprise Mobility, Migros has creat- road. Migros carries two-thirds of its own road freight, ed the M-Budget vehicle category which offers especial- and has its own fleet of 433 vehicles; 35 already com- ly good value. There are 75 small Mobility cars stationed ply with the lowest-pollutant EURO-5 emission stand- close to large Migros supermarkets. Mobility transport- ard. The aim of the National Transport Optimisation ers are available at four large M-Parcs. People who do Project (NATRO), launched in 2005, is to cut domestic not own a car can use these vehicles at very cheap rates EnwicklungEnwick Industrielung Industrie EnwicklungEnwick Filialenlung Filialen KohlendioxidKohlendio spezifischxid spezifisch Anteil CO2 AuAnteilsstoss CO 20062 Ausstoss 2006 Energie GesamtEnergie GW Gesamth GWh Energie spezifischEnergie kWh/1000 spezifisch Fr kWh/1000 Fr Anteil EnergieträgerAnteil Energieträger 2006 2006 Anteil GesaAnteilmtenergieverbrauch Gesamtenergieverbrauch 20 06 20 06 KohlendioxidKohlendio absolut xid1000 absolut Tonnen 1000 Tonnen kWh/TonnekWh/ ProdTo. nne Prod. kWh/m2 VekWh/m2rkaufsfläch Veerkaufsfläche kg/1000 Fr. kg/1000 Fr. 400 400 175 8 8 2000 2000 80 80 500 500 175 70 350 350 150 7 7 70 150 Logistikbetriebe* Logistikbetriebe* Logistikbetriebe* 400 Treibstoffe* Treibstoffe* Logistikbetriebe* 300 300 400 6 6 1500 1500 60 60 125 125 Industrie 250 50 Übrige Brennstoffe Übrige Brennstoffe Industrie 250 5 5 50 300 300 100 100 Filialen 200 200 4 4 1000 1000 40 40 Fernwärme Fernwärme Filialen 75 75 30 150 150 200 200 3 3 Industrie Industrie 30 Erdgas Erdgas 50 Filialen 100 100 50 2 2 Filialen 500 500 20 20 Heizöl EL 100 Heizöl EL 50 100 25 25 10 10 50 1 1 Elektrizität Elektrizität 0 0 0 0 0 0 0 0 0 0 0 0 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

46 Migros Sustainability Report 06 Enwicklung IndustrieEnwicklung Industrie Enwicklung FEnwickilialenlung Filialen KohlendioxidKohlendio spezifischxid spezifisch Anteil CO2 AuAnteilsstoss CO 20062 Ausstoss 2006 Energie GesamtEnergie GWh Gesamt GWh Energie spezifischEnergie kWh/1000 spezifisch Fr kWh/1000 Fr Anteil EnergieträgerAnteil Energieträger 2006 2006 Anteil GesamtenergieverbrauchAnteil Gesamtenergieverbrauch 20 06 20 06 KohlendioxidKohlendio absolut 1000xid absolut Tonnen 1000 Tonnenkg/1000 Fr. Betriebsabfall spezifisch VerwkWh/ertungsquoteTonne PrkWh/od %. Tonne Prod. kWh/m2 VerkkWh/m2aufsfläch Vee rkaufsfläche kg/1000 Fr. BetriebsabfallBetriebsabfall 1000 Tonnen 1000 Tonnen Betriebsabfall spezifisch Verwertungsquote % KundenretourenKundenretouren Total 1000 tonnen Total 1000 tonnen 400 400 Anteil KundenretourenAnteil Kundenretouren 2006 2006 8 8 2000 2000 80 80 kg/1000 Fr.kg/1000 Fr. Anteil AbfälleAnteil 2006 Abfälle 2006 500 500 175 175 350 350 7 7 70 70 250 250 150 150 Logistikbetriebe* Logistikbetriebe* 10Treibstoffe* Treibstoffe* Logistikbetriebe* Logistikbetriebe* 80 300 300 400 400 6 6 1500 1500 60 60 10 80 15 15 125 125 200 200 Industrie Industrie 70 250 250 5 5 50 50 Übrige Brennstoffe Übrige Brennstoffe Diverse Diverse 70 8 300 300 100 100 Batterien Batterien 8 60 20TRA0 NSPORT20 L0OGISTICS 12 12 4 4 40 40 Fernwärme Filialen Filialen 60 1000 1000 Fernwärme Klärschlamm, Sonderabfall Klärschlamm, Sonderabfall 150 150 75 75 Elektroschrott Elektroschrott 30 30 6 50 150 50 150 200 200 3 3 Industrie Industrie Erdgas 6 Erdgas Holz, Sperrgut, Bauschutt Holz, Sperrgut, Bauschutt Transportation within Migros is handled by9 the na- 9 40 100 100 50 50 PE-Milchprodukteflaschen PE-Milchprodukteflasche2 n 2 Filialen Filialen 500 500 20 20 100 100 tional distribution40 centres and regional operations Heizöl EL Heizöl EL Fette, Öle 100 100 4 4 Fette, Öle 25 25 PET 10 10 30 50centres. 30Shops 50are supplied by lorries. The6 ship- Münchenstein6 Zurich PET 1 1 50 Gossau 50 Elektrizität Elektrizität Organische Abfälle 0 0 0 0 0 0 Organische Abfälle 20 ments cannot20 be transported by rail. For 0 0 BASEL 0 0 0 0 2 2 2002 2003 20042002 20052003 20062004 20053 2006 Suhr Volketswil 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 10 domestic transportation to the Logistics NEUCHÂTEL-2002 20033 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 0 0 Tierische Nebenprodukte Tierische Nebenprodukte 10 Neuendorf Enterprises, Migros uses the rail network, FRIBOURG ZURICH 2002 2003 20042002 20052003 20062004 2005 2006 0 0 0 0 Dierikon Metalle Metalle 0 0 2002 2003 20042002 20052003 20062004 2005 2006 2002where2003 possible.20042002 The20052003 map20062004 also shows2005 the2006 Marin 2002 2003 20042002 20052003 20062004LUCERNE2005 2006 Kunststoffe Kunststoffe areas of the ten regional Migros Coopera- Schönbühl tives. EASTERN Papier, Karton AARE Papier, Karton VAUD SWITERLAND

Ecublens

GENEVA TICINO Regional Operations Centres National Distribution Centres Carouge VALAIS San Antonio BetriebsabfallBetriebsabfall 1000 Tonnen 1000 Tonnen BetriebsabfallBetriebsabfall spezifisch spezifisch VerwertungsquoteVerwer %tungsquote % KundenretourenKundenretouren Total 1000 tonnen Total 1000 tonnen kg/1000 Fr. kg/1000 Fr. Anteil AbfälleAnteil 2006 Abfälle 2006 Anteil KundenretourenAnteil Kundenretouren 2006 2006Martigny 250 250 WasserverbrauchWasser Miverbraucho. m3 Mio. m3 10 WasserverbraucherWasserv erbraucher2006 2006 10 80 80 15 15 200 200 WagenkilometerWagenk Bahn/LilometerKW Bahn/LKW LKW spezifischLKW spezifisch Diverse Diverse 70 70 NOx, T. NOx, T. Partikel T. Partikel T. 8 8 Logistikbetriebe* Logistikbetriebe* Batterien Batterien 60 60 12 12 MiTRAo. NKilometeSPORTMi KILro. OKilometeMETRES rBY RAIL AND ROkmAD/1000 FrKIL.kmO/1000METR FrE.S COVERED SPECIFICALLY BY LORRIES 10 10 Klärschlamm, Sonderabfall Klärschlamm, Sonderabfall 150 150 Million kilometres Elektroschrott ElektroschrotKilometrest / CHF 1000 of sales 6 6 50 50 Holz, Sperrgut, Bauschutt Holz, Sperrgut, Bauschutt 9 9 35 PE-Milchprodukteflasche2,5 n PE-Milchprodukteflasche2,5 n 100 100 8 8 40 40 35 300 300 8 8 32.2 31.9 Rail 31.5 31.0

Fette, Öle Fette, Öle 30.6 2.17 2.16 2.15 4 4 30 30 30 PET PET 2.15 7 7 6 6 30 Road 2.08 Filialen Filialen 2,0 2,0 250 250 50 50 6 6 Organische Abfälle Organische Abfälle 20 20 25 25 6 6 2 2 3 3 200 200 10 1,5 1,5 5 5 0 0 4 4 Tierische Nebenprodukte Tierische Nebenprodukte 10 20 20 2002 2003 20042002 20052003 20062004 2005 2006 0 0 0 0 150 150 4 4 Metalle Metalle 0 0 15 15 1,0 1,0 2002 2003 20042002 20052003 20062004 20052 2006 2 2002 2003 20042002 20052003 20062004 2005 2006 12.8 Industrie Industrie 2002 2003 20042002 20052003 20062004 2005 2006 3 3 11.0 11.1 100

10.5 100 Kunststoffe Kunststoffe 10 10 10.1 0,5 2 2 0 0 0,5 Papier, Karton Papier, Karton 5 5 50 50 2002 2003 20042002 20052003 20062004 2005 2006 1 1 0,0 0 0 0,0 0 0 0 0 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 20062002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 2006 Transport kilometres are the total of all distances The number of kilometres covered specifically by the covered by lorries6 or railway wagons within a year. lorry fleet6 has fallen during the past year. Migros thus The total road and rail kilometres have fallen slightly achieved higher sales with less road transportation. since 2004 and 2003. This is the first success of the transport optimisation WasserverbrauchWasser Mivo.erbrauch m3 Mio. m3 WasserverbraucherWasser v2006erbraucher 2006 program NATRO (see also main text). WagenkilometerWagenk Bahn/LilometerKW Bahn/LKWLKW spezifischLKW spezifisch NOx, T. NOx, T. Partikel T. Partikel T. Logistikbetriebe* Logistikbetriebe* Mio. KilometeMir o. Kilometer km/1000 Fr. km/1000 Fr. NITROGEN OXIDE EMISSIONS FINE PARTICLE EMISSIONS 10 10 Tons Tons

8 8 35 35 2,5 2,5 300 300 8 8 264 7 7.0 257 7 30 30 256 Filialen Filialen 2,0 2,0 250 250 6.4 6 6 236 25 25 6 6 6.1 207

200 200 5.2 1,5 5 5 4 4 20 20 1,5 150 150 4 4 4.4 15 15 2 2 1,0 1,0 Industrie Industrie 3 3 10 10 100 100 2 2 0 0 0,5 0,5 5 5 50 50 2002 2003 20042002 20052003 20062004 2005 2006 1 1 0 0 0,0 0,0 0 0 0 0 2002 2003 20042002 20052003 20062004 2005 2006 2002 2003 20042002 20052003 20062004 2005 20062002 2003 20042002 20052003 20062004 2005 20062002 2003 20042002 20052003 20062004 2005 2006

The nitrogen oxide emissions of the lorry fleet6 has Like the nitrogen oxide emissions, also fine particle decreased significantly over the past years. Migros emissions are reduced by the use of modern lorries6 is constantly upgrading its lorry fleet with low-emis- complying with the latest European standards. sion models. Ecology 47

Enwicklung Industrie Enwicklung Filialen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Anteil Gesamtenergieverbrauch 20 06 Kohlendioxid absolut 1000 Tonnen kWh/Tonne Prod. kWh/m2 Verkaufsfläche kg/1000 Fr. 400 8 2000 80 500 175 Enwicklung Filialen Kohlendioxid spezifisch Anteil CO2 Ausstoss 2006 70 Anteil Gesamtenergieverbrauch 20 06 350 Enwicklung Industrie 150 7 Energie Gesamt GWh Energie spezifisch kWh/1000 Fr Anteil Energieträger 2006 Kohlendioxid absolut 1000 Tonnen kg/1000 Fr. Logistikbetriebe* Treibstoffe* Logistikbetriebe* 300 400 kWh/m2 Verkaufsfläche 6 1500 Over 80 percent of all shops60 can be easily reached by customers kWh/Tonne Prod. 125 Industrie 250 400 175 5 8 2000 on50 foot, by public80 transport or by bicycle. Übrige Brennstoffe 300 500 100 200 350 4 7 1000 40 70 Fernwärme Filialen 150 Logistikbetriebe* 75 Treibstoffe* Logistikbetriebe* 300 400 6 1500 30 60 150 200 125 3 Industrie Erdgas 50 Filialen Übrige Brennstoffe Industrie 100 250 2 5 500 20 50 300 100 Heizöl EL 200 100 4 for larger shopping1000 trips or for carrying bulky items. aims to continue40 its dialogue with all interested parties Fernwärme Filialen 50 25 1 10 75 30 Elektrizität 0 150 200 0 3 Industrie 0 Since November 2006, Migros has also been delivering0 on mobility issues. Erdgas 0 0 2002 2003 2004 2005100 2006 50 2 Filialen 2002large2003 household2004 appliances2005500 2006 such as washing machines2002 2003 2004 200520 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Heizöl EL 100 25 and fridges to homes free of charge. Natural D10iversity 50 1 Elektrizität 0 Studies on traffic0 behaviour have shown that in Migros owns some0 1.5 million square metres of land; 0 0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Switzerland most shopping2002 trips2003 are2004 done2005 on foot,2006 by making it one of the largest property owners in Switzer- bike or on public transport. However, it is also a fact land. Over the past few years, its awareness has grown that today private cars are used for about 40 percent of surface areas in developed areas are especially impor- all shopping trips. At larger shopping centres, where tant to the natural diversity of our country. In 2005, Mi- much greater quantities are purchased and transported gros, therefore, joined the Nature & Industry Founda- home, this figure is much higher. For new shopping tion whose backers include the Federal Office for the Betriebsabfall 1000 Tonnen Betriebsabfall spezifisch Verwertungsquote % Kundenretouren Total 1000 tonnen malls, Migros therefore plans to include enough parkingkg/1000 FrEnvironment.. The Foundation promotes aAnteil ‘close to Abfälle na- 2006 Anteil Kundenretouren 2006 places to cover its customers’ needs. In recent years, en- ture’ concept for company sites. Migros has so far had 250 Betriebsabfall spezifisch Verwertungsquote % Kundenretouren Total 1000 tonnen vironmental organisationsBetriebsabfall have been increasingly 1000 Tonnen call- four of its sites certified; most recently in mid-2006, the Anteil Kundenretouren 2006 10 kg/1000 Fr. Anteil Abfälle 2006 80 15 200ing for parking places or trips to be restricted at large Eastern Switzerland Cooperative’s operations centre in 70 250 Diverse 8 Batterien new centres. Gossau. As a trading10 company, however, Migros’s prop- 60 80 12 150 Klärschlamm, Sonderabfall 15 Migros is resisting such200 measures which actually do erties have less impact on biodiversity than the indirect Elektroschrott Diverse50 70 6 Batterien 8 Holz, Sperrgut, Bauschutt 9 little for the environment. On the contrary, there is a effect of its product purchasing. For example, the culti- 40 60 12 PE-Milchprodukteflaschen 100 Klärschlamm, Sonderabfall 150 Elektroschrott risk that search traffic will increase, and customers will vation of food or the depletion of raw materials have an Fette, Öle 4 6 30 50 6 PET Holz, Sperrgut, Bauschutt 9 50 PE-Milchprodukteflaschen switch to other locations100 further away which will lead adverse effect on biological diversity. Migros influences Organische Abfälle 20 40 2 Fette, Öle 4 3 PET to generally more pollutants being released into the air. these effects through its production standards and la- 10 30 6 0 50 Tierische Nebenprodukte Migros’s view is that more consideration must be given bels such as Bio or FSC. Apart from these Standards, Organische Abfälle 20 2002 2003 2004 2005 2006 0 2 0 Metalle 0 3 2002 2003 2004 200510 2006 to traffic and transport problems0 in building planning2002 2003Migros2004 runs2005 individual2006 model projects helping to con- Tierische Nebenprodukte 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 0 Kunststoffe 0 legislation. It, therefore, cooperated with the Federal serve global habitats with substantial biodiversity, such Metalle 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Office for Building Development, the Federal Office for as sustainable palm oil production (see section “What Papier, Karton Kunststoffe

the Environment and other retail sector representatives we offer”). Papier, Karton on the recommendation of location planning for traffic In 2004, Migros also made a commitment with intensive facilities which appeared in June 2006. Migros Chiquita for a long-term nature conservation project in Costa Rica, a country rich in plants and animals species.

Wasserverbrauch Mio. m3 Wasserverbraucher 2006 WATER CONSUMPTIONWasserverbrauch Mio. m3 PROPORTIONWa OsserF WAverbraucherTER CONSU M2006PTION 3 Wagenkilometer Bahn/LKW LKW spezifisch NOx, T. Partikel T. Million m Logistikbetriebe* 2006 Mio. Kilometer Wagenkilometer Bahn/Lkm/1000KW Fr. LKW spezifisch NOx, T. Partikel T. 10 Logistikbetriebe* Mio. Kilometer km/1000 Fr. 10 8.7 8.5

8.3 Logistics Enterprises (7%) 8.3 8 8.2 35 2,5 300 8 2,5 8 35 300 7 8 30 250 6 Filialen 2,0 30 6 7 Shops (23%)Filialen 25 2,0 250 6 200 25 1,5 5 6 4 20 200 1,5 5 4 Industrial 20 150 4 15 1,0 2 Companies (70%) 150 4 Industrie 15 1,0 3 2 10 100 3 Industrie 100 10 0,5 2 0 50 2 0 5 0,5 2002 2003 2004 2005 2006 5 50 1 2002 2003 2004 2005 2006 1 0 0,0 0 0 0 0,0 0 Migros has considerably reduced its water con- Most water is consumed by the production of the In- 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 20050 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 sumption since 1990. Water consumption still shows dustrial Companies. On average, they require 4.8 m3 a slight fall over the last years. of water per ton of produced goods. 48 Migros Sustainability Report 06

On the edge of a banana plantation, the two companies set up a 100-hectare nature conservation area. The reserve has a visitor centre, a schoolroom, a botanical garden and a nature trail explaining how bananas are grown. The partnership project represents a new model of cooperation between firms, the State and the local population. With this cooperation, Migros is making an innovative contribution to rainforest conservation. Af- ter contributing to the start-up funding, in each of the past two years Migros has held banana promotions in its shops, and donoted CHF 200,000 to the project every time. Early in 2006, the Nogal rainforest reserve was of- ficially declared a private nature conservation area by the Costa Rican government.

Footnotes

1 Operating Centres are the regional logistics centres of the Coop- eratives (see figure on page 46).

2 The data for 2006 had not been finally approved by EnAW at the time of publication. Minor deviations from the figures provided may be possible.

3 Fuel includes the lorry fleets of the regional Migros Coopera- tives and Scana but not of the other Industrial Companies and lorries used during outsourced transport orders.

4 Logistics Enterprises includes the consumptions of the Operat- ing Centres, Distribution Companies and of the FMC.

5 Data about Customer returns has only been gathered since 2003.

6 The lorry fleet of the regional Migros Cooperatives and Scana without the lorry fleet of the other Industrial Companies and lorries used during outsourced transport orders. 49

Appendix GRI-Index

The Index provides an overview of the G3 reporting No Abbreviated Titel and Status of the Global Page items required by the Global Reporting Initiative GRI. Indikators Compact Apart from the heading and status of the respective Strategy & Profile indicator, the index also includes references to the re- Profile spective Global Compact principles and states where the information is contained in the report. The last page 1.1 Chairman ● 3 and CEO‘s Statement also contains additional information about individual indicators. 1.2 Risks and Opportunities ● 16 By basing its reporting on the latest GRI standard, Mi- Organizational Profile gros aims to achieve completeness and comparability 2.1 Name of Organization ● titel page with other sustainability reports. 2.2 Primary Brands, ● 8, 20 The GRI certifies compliance at level B for the report, Products, and/or Services based on the following conditions: 2.3 Operational Structure ● 8, 9, 11 a) answering all indicators (indicators 1.1 to 4.17) in section “Strategy & Profile” 2.4 Location of ● 11 Headquarters b) information is provided about the management ap- 2.5 Countries of Operation ● 8 proach for each category (economy, ecology, working practice, human rights, society, product responsibility) 2.6 Nature of Ownership ● 11 and Legal Form in section “Performance indicators” and 2.7 Markets Served ● 8 c) reporting on a total of at least 20 indicators (at least one per category). 2.8 Scale of the ● 8, 10, 34 Organisation The full indicator headings and further information 2.9 Changes (Significant) ● 8, 11 about conformity levels can be found at: www.globalreporting.org 2.10 Awards Received ● 14, 16 Page 15 contains a list of the ten Global Compact Report Parameters principles. 3.1 Reporting Period ● titel page 3.2 Date of most Recent ● titel: page 200720072007 Previous Report inside 200720072007 2007200B72007 3.3 Reporting Cycle ● titel: page 200720072007 inside 200GRI7 200REPOR72007T 200720072007 3.4 Report Contact Person ● Imprint 2GRI0072 CHECKE0072007D 3.5 Report Content: ● 15 ➔ Process for Defining 3.6 Boundary of the Report ● titel: page inside 3.7 Limitations on Report ● 9 ➔ Scope Legend 3.8 Basis for Reporting ● ➔ ● The indicator is reported on or a reason is given why it is not (e.g. on Subsidiaries) reported on. ◗ The indicator is partially reported on. 3.9 Data Measurement ● ➔ ❍ The indicator is not reported on. Techniques ◆ The indicator is irrelevant for Migros. 3.10 Re-statements ● ➔ ✱ Core indicator. of Information P Directly relevant Global Compact principle. (P) Indirectly relevant Global Compact principle. 3.11 Significant Changes ● ➔ ➔ Additional information on page 52. in Scope and Methods 50 Migros Sustainability Report 06

No Abbreviated Titel and Status of the Global Page No Abbreviated Titel and Status of the Global Page Indicators Compact Indicators Compact 3.12 GRI Content Index ● Appendix Environment 3.13 Assurance ● ➔ Management Approach ● 14, 15, 40 Governance, Commitments, and Engagement EN1 Materials: Used ❍ ✱ (P8)

4.1 Governance Structure ● 11➔ EN2 Materials: Recycled ❍ ✱ P8, P9 4.2 Chair/ Executive ● 9, 11➔ Input Materials Officer Status EN3 Energy: Direct Energy ● ✱ (P8) 40, 41 Consumption 4.3 Board: Non-executive ● 9, 11➔ Directors EN4 Energy: Indirect ● ✱ (P8) 40, 41 Energy Consumption 4.4 Board: Mechanisms for ● 11, 35 Feedback EN5 Energy: Efficiency ● P8, P9 40 Savings 4.5 Remuneration: Senior ● 35 Executives EN6 Products: Energy- ● P8, P9 21 efficient or Renewables 4.6 Board: Conflicts of ● 11➔ Interest EN7 Indirect Energy ◗ P8, P9 45 Consumption 4.7 Board: Qualifications ● ➔ and Expertise EN8 Water: Consumption ◗ ✱ 47 4.8 Internal Statements: ● 14, 15, 25 EN9 Water: Sources ◆ Mission and Principles EN10 Water: Recycled ❍ P8, P9 4.9 Board: Oversight ● 14➔ of Performance EN11 Biodiversity: Land Use ● ✱ (P8) ➔ 4.10 Board: Evaluating own ● 14➔ EN12 Biodiversity: Impacts on ❍ ✱ (P8) Performance EN13 Biodiversity: Habitats ● P8 47 4.11 Precautionary Principles ● P7 16, 17 Protected or Restored 4.12 External Charter/ ● 14, 20, 25, EN14 Biodiversity: Managing ● P8 20, 47 Initiatives Endorsed 40 Impacts 4.13 Memberships ● 11 EN15 Biodiversity: Red List ❍ (P8) Species 4.14 Stakeholder: List ● 15 EN16 Greenhouse Gas ● ✱ (P8) 42, 43 4.15 Stakeholder: Basis ● ➔ Emissions: Direct and for Identification Indirect 4.16 Stakeholder Dialogue ● 16 EN17 Greenhouse Gas ❍ ✱ (P8) Emissions: Others 4.17 Reaction to Stakeholder- ● 16 Indirect Initiatives EN18 Greenhouse Gas ● P8, P9 40, 42, 45 Management Approach and Performance Indicators Emisions: Reduction Economy EN19 Ozone-depleting ❍ ✱ (P8) Management Approach ● ➔ Substances by Weight

EC1 Economic Value ● ✱ 30 EN20 NOx & SOx, and Other ◗ ✱ (P8) 45, 46 Generated Significant Air Emissions EC2 Climate Change: ❍ ✱ (P7), EN21 Wastewater: Discharge ● ✱ P8 47 Financial Risks (P8) (Quality and Destina- tion) EC3 Benefit Plan Obligations ● ✱ 35 EN22 Waste: Total Weight and ● ✱ P8 43, 44 EC4 Financial Assistance ❍ ✱ Disposal Method from Government EN23 Spills (Significant): Total ● ✱ (P8) ➔ EC5 Entry Level and ◗ (P6) 35 Number and Volume Minimal Wages EN24 Waste (Hazardous): ◗ (P8) 43, 44 EC6 Suppliers (locally- ● ✱ 20 Transported Weight based): Policies, ◆ ➔ Spendings EN25 Affected Water Bodies (P8) EC7 Local Hiring Policy ◆ ✱ (P6) EN26 Products: Environmental ❍ ✱ P8, P9 Impact Reduction EC8 Infrastructure ● ✱ 30 ◗ ✱ Developments EN27 Products/Packaging: P8, P9 43, 44 Percentage Reclaimed EC9 Indirect Economic ● 20, 25, 31 ● ✱ ➔ Impacts EN28 Non-compliance (P8) Environmental Laws EN29 Transport: Environmen- ● ✱ (P8) 40, 41, 42, tal Impact of Transport 43, 45, 46 EN30 Environmental ❍ ✱ P8 Protection Expenditures Appendix 51

No Abbreviated Titel and Status of the Global Page No Abbreviated Titel and Status of the Global Page Indicators Compact Indicators Compact Labor Pratices and Decent Work Society Management Approach ● 14, 15, 34, Management Approach ● 14, 15, 30 35, 36, 37 ➔ SO1 Impacts of Operation on ◆ ✱ (P1) ➔ LA1 Workforce: Employment ● ✱ 34 ➔ Communities Type, Contract, Region SO2 Corruption: Number of ❍ ✱ P10 LA2 Employee Turnover by ◗ ✱ P6 34 Business Units Analyzed Age Group, Gender, SO3 Anti-corruption: ❍ ✱ P10 Region Training LA3 Employee Benefits ❍ (P6) SO4 Corruption: Actions ❍ ✱ P10 LA4 Collective Bargaining ● ✱ (P1), P3 34, 35 Taken in Response to Agreements SO5 Public Policy ● ✱ (P10) 11 LA5 Operational Changes: ❍ ✱ P3 Development Minimum Notice SO6 Political Contributions: ● (P10) 11 Period(s) Total Value LA6 Health & Safety: ❍ SO7 Legal Actions: Anti- ● ➔ Workforce in Commit- competitive Behavior tees SO8 Non-compliance: ❍ ✱ LA7 Health & Safety: Rates of ● ✱ ➔ 37 Significant Fines Injury, Lost Days Product Responsibility LA8 Health & Safety: Serious ● ✱ 37 Diseases - Prevention Management Approach ● 14, 26, 27 ➔ LA9 Health & Safety: ◗ 34 Agreements with Trade PR1 Products: Customer ◗ ✱ 26, 27 Unions Safety Sssessments LA10 Training & Develop- ◗ ✱ 36 PR2 Non-compliance: ● 26 ment: Hours per Customer Health & Employee Safety LA11 Training & Develop- ● 36 PR3 Products: Information ● ✱ (P8) 26, 27 ment: Lifelong Learning Requirements LA12 Training & Develop- ● 34 PR4 Non-compliance: ❍ (P8) ment: Performance Product Information Reviews PR5 Customer Satisfaction ● 27 LA13 Diversity: Workforce ◗ ✱ (P1), P6 36 PR6 Marketing Communica- ❍ ✱ LA14 Remuneration: Basic ❍ ✱ (P1), P6 tions: Voluntary Codes Salary Men - Women PR7 Non-compliance: ● ➔ Human Rights Marketing Communica- tions Management Approach ● 14, 15, 25 ➔ PR8 Customer Complaints: ❍ HR1 Human Rights: ◆ ✱ P1, P2, ➔ Customer Privacy Significant Investment (P4), Screening (P5), PR9 Non-compliance: ● ✱ ➔ (P6) Provision of Products HR2 Human Rights: ● ✱ P1, P2, 24, 25 Procurement Screening (P4), (P5), (P6) HR3 Human Rights: ❍ P1, Employee Training (P4), (P5) HR4 Discrimination: ❍ ✱ P1, P6 36 Number of Incidents HR5 Freedom of Association: ● ✱ P1, P3 35 ➔ Right at Risk HR6 Child Labour: Opera- ◆ ✱ P1, P5 ➔ tions with Significant Risk Legend ● The indicator is reported on or a reason is given why it is not HR7 Forced Labour: ◆ ✱ P1, P4 ➔ reported on. Operations with ◗ The indicator is partially reported on. Significant Risk ❍ The indicator is not reported on. HR8 Human Rights: Security ◆ P1, P2 ➔ ◆ The indicator is irrelevant for Migros. Personnel Trained ✱ Core indicator. P Directly relevant Global Compact principle. HR9 Indigenous People ◆ P1 ➔ (P) Indirectly relevant Global Compact principle. Rights: Incidents ➔ Additional information on page 52. 52 Migros Sustainability Report 06

Additional information EN21 Wastewater: Discharge (Quality and Destination): The wastewater poses no environmental hazard and is generally discharged 3.5 Report Content: Process for Defining: The method suggested untreated into municipal wastewater treatment plants. Companies by the GRI for defining the relevance of topics was applied in this generating increased pollutants operate their own preliminary report. The following topics are relevant for Migros: a) significant treatment plants. economic, ecological and social effects; b) particular concerns of target groups. EN23 Spills (Significant): Total Number and Volume: No incidents involving a significant discharge of chemicals, oils and fuels in 2006 3.7 Limitations on Report Scope: Migrol and Hotelplan offer pro- are known. ducts and services that significantly affecting the environment. These service companies are, however, outside of the system‘s boundaries. EN25 Affected Water Bodies: See EN21. Currently, no efforts are made to extend environmental controll to EN28 Non-compliance Environmental Laws: No non-compliance these operations. They do, however, operate their own environmental of environmental laws is known. protection programmes (see also pages 16 and 40). Labor Pratices and Decent Work, Management Approach: For 3.8 Basis for Reporting (e.g. on Subsidiaries): The basis for repor- more information, see the Environmental and Social Policy, the Per- ting has not changed during the last financial year. sonnel Policy and the national collective agreement.*

3.9 Data Measurement Techniques: The report keeps to the indica- LA1 Workforce: Employment Type, Contract, Region: In 2006, tors defined by the GRI at all times. the Migros group had 79,597 employees, corresponding to 59,345 3.10 Re-statements of Information: There is no change to state- personnel units (2005: 59,934). The number of employees in other ments from previous reports. countries was 3.0% in 2006 (2005 3.3%).

3.11 Significant Changes in Scope and Methods: No changes in LA7 Health & Safety: Rates of Injury, Lost Days: Ratios are shown scope or methods, apart from where explicitly stated. in the Absence and Case Management of the individual companies and are used as indicators for actions and campaigns as well as for 3.13 Assurance: The report was not audited externally. negotiating premiums with insurance companies. A system generating standard evaluations at Group level is currently in its implemen- 4.1 Governance Structure: Governance is through committees. Per- tation phase. manent committees include: Audit, Finance, Human Resources Policy as well as Personnel Issues and Remuneration. For further informati- Human Rights, Management Approach: For more information see on, see Annual Report.* Environmental and Social Policy and Personnel Policy.*

4.2 Chair / Executive Officer Status: The chair of the managing HR1 Human Rights: Significant Investments Screening: Migros board has no operational function. has no production companies outside Switzerland.

4.3 Board: Non-executive Directors: 9 of the 23 members of the HR5 Freedom of Association: Right at Risk: No known incidents. FMC board are external members independent of the M-Community. Internal members that are not independent of the M-Community are HR6 Child Labour: Operations with Significant Risk: See HR1. the representatives of the Cooperatives, employee representatives of HR7 Forced Labour: Operations with Significant Risk: See HR1. the M-Community and the CEO. HR8 Human Rights: Security Personnel Trained: See HR1. 4.6 Board: Conflicts of Interest: External members of the FMC board that are independent of the M-Community must fulfil the fol- HR9 Indigenous People Rights: Incidents: See HR1. lowing qualifications: No close business links and not holding several important offices within the M-Community. Society, Management Approach: For more information see Envi- ronmental and Social Policy.* 4.7 Board: Qualifications and Expertise: Two employee representatives shall be members of the FMC board. No specific processes SO1 Impacts of Operations on Communities: Migros has no for defining qualifications with regard to economic, social and ecolo- production companies outside Switzerland. gical topics have been defined for other members of the FMC board. SO7 Legal Actions: Anti-competitive Behavior: There are currently 4.9 Board: Oversight of Performance: The FMC board oversees no known antitrust proceedings involving Migros. the Executive Board and the CEO. The Executive Board can delegate Product Responsibility, Management Approach: For more infor- tasks to the Supporting Committee Sustainability which reports back mation see Environmental and Social Policy.* on the activities and status of the work. PR7 Non-compliance: Marketing Communication: There are no 4.10 Board: Evaluating Own Performance: No such processes known relevant procedures or infringements of the law. have been implemented. PR9 Non-compliance: Provision of Products: There are no known 4.15 Stakeholder: Basis for Identification: Target groups are rep- incidents. resentative interest groups, influenced by the Group or that influence the Group. These were defined in 2003 as part of the formulation of the Environmental and Social Policy. The following requirements apply for NGOs: The subject matter relates to the core business of * The mentioned documents can all be found at: www.migros.ch. Migros. They are professionally managed and have a positives image. They have performance credentials that can be easily communicated Environmental and Social Policy and can communicate tangible, understandable contents. Über die Migros > Nachhaltigkeit > Publikationen > English Documents Economy, Management Approach: For more information see corporate statement (corporate mission of Migros 2010) as well as the Only in German (and French): Environmental and Social Policy.*. Annual Report Environment, Management Approach: For more information, see Über die Migros > Medien > Geschäftsberichte the Environmental and Social Policy.*. Corporate Statement EN11 Biodiversity: Land Use: There is no knowledge of any buil- Über die Migros > Nachhaltigkeit > Publikationen dings being located in or adjacent to zones with increased biodiver- Personnel Policy and National Collective Agreement sity. Stellen > Die Arbeitgeberin Migros > Daten, Fakten und Wissen > Personalpolitik Stellen > Die Arbeitgeberin Migros > Daten, Fakten und Wissen > Gesamtarbeitsvertrag Imprint

Published by Federation of Migros Cooperatives, FMC Limmatstrasse 152 CH-8005 Zurich www.migros.ch

Concept, text and editing Corinne Centonze, FMC Jörg Schmill, commcare, Basel

Design and production commcare, www.comm-care.ch

Translation FCM translation coordination, Zurich The German original version is binding.

Printing UD Print, Lucerne Printed on 100% recycled paper.

For more information about sustainability M-Infoline: [email protected] Tel. +41 (0)848 84 0848

Additional information (only in German and French) is also available in the Internet at www.migros.ch > Über die Migros > Nachhaltigkeit www.migros.ch > Sortiment > Engagement www.kulturprozent.ch www.hotelplan.ch > Über uns > Mensch & Umwelt