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Makro Sustainability Report

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Makro Sustainability Report Sustainability Report 2017 Highlights About us Makro is a leading multinational “cash and carry” wholesale company, that belongs to the Dutch private holding SHV, which has 7 global companies with presence in 60 countries and more than 60.000 employees around the world. Makro main customers are hotels, restaurants, catering services, food retailers. Institutional market, public and private institutions and those individual consumers who feel attracted to our business format. In our stores, we sell more than 12.000 products references including our own brands: Aro, m&k, Qbiz, Viña Andina, Baldaracci, Ternez, Don Perfecto. Our presence is distributed in 165 stores around Argentina, Brazil, Colombia, Peru and Venezuela. EUR 3,5 Billion - 2017 total sales + 4 million registered Sustainability at Makro customers DO MORE CREATE WITH LESS WIN-WIN Based on the results of a materiality assessment, we have set mid-term objectives for 2018. They make our commitment tangible and ensure that action will be taken on the three pillars of Sustainability. In the following pages you can see some of the initiatives that we have been working on. 2 3 Ethical Conduct Customer Development Ethics & Compliance week was organized in all countries to reinforce Makro Conduct Code, our Corporate and Satisfaction Philosophy and Shared Values. Our Ethics line Speak Up was launched, to manage complaints related to corruption or unexpected behavior. Since 2016, the company has been implementing the It is confidential, available 24 hours a day by different Net Promoter System (NPS), methodology to measure the channels as: phone, email or website, in 28 languages. satisfaction of customers and understand main opportunities for improvement. In 2017, this measurement was applied in 4 New e-learning related to Ethics and anticorruption countries. We also worked to develop additional communication was launched and all operations did efforts to train all channels with customers. people in the company. Results from 2017 compared to 2016 NPS rating growth: Makro: 22% / Basualdo: 20% Makro continued accompanying independent retailers and small mom-and-pops stores through La Red m&k, an initiative that supports these customers to develop their own businesses. Makro organized workshops given by specialists, reaching 2.200 small retailers in Tucumán, San Open communication Argentina Martín and Rosario. and report All Makro Business Units published their Makro Brazil applied for the first NPS rating growth: 16% Sustainability Report, following the time the NPS tool covering all Global Reporting Initiative (GRI) Guidelines. stores. Considering the three The media plan, including mass media measurements done in the insertion, was restructured to create year, there was an improvement brand awareness among customers. Sustainability Report Makro Argentina between the first and the last one of In addition, the brand was refreshed Brazil in digital media channels, such as Colombia 33%. Instagram, Facebook and Twitter. Sustainability Report Makro Brazil Sustainability Report Makro Colombia Launched a new website with a NPS rating growth: 15% more visual and interactive design. Sustainability Report Makro Peru Continuous management of the New technologies in CRM different digital media channels were implemented to segment such as Twitter, Facebook, Linkedin customers in a way that enables Sustainability Report Makro Venezuela was expanded with the creation of more assertive communication an official Instagram account, which and definition of offers aligned to already counts on Peru specific profiles and needs. more than Venezuela 1.000 organic followers. 4 5 Sustainable Products Recruiting, Training and Development In 2016, Makro created the Sustainable Product For 2017, Business Units had the challenge to Our people make the difference. So, having a great team allows us to have outstanding results. To Seal for its own branded products. There achieve 5% participation of sustainable items in respond to this premise, Makro has key programs and initiatives to attract, train and develop employees: are two ways of assessing the sustainability the total Own brand sales. Results are: management of suppliers and determining if a product is sustainable: 9% Internal Recruitment: Makro University: 1. Supplier needs to be approved in a For every 5 positions In all operations, there are face-to-face and sustainability audit defined by Makro, which 6% opened, 4 should be virtual training programs. The second one, checks compliance with the Conduct Code for covered by internal through Makro University, an e-learning Sustainable Suppliers or; 1% promotions. tool that allows greater coverage to train employees located in different sites. 2. Supplier needs to present an internationally Makro Argentina hasn’t launched any valid sustainability certification applicable to the sustainable SKU so far. A workshop was held Trainee Store Performance Appraisal: Performance type of product. with suppliers aiming to introduce the concept Manager: External evaluation process based on of Sustainability to them. recruitment to prepare feedback culture. new store managers. Quality and Customer Health & Safety 2-2-2: A 3-year long program to develop and attract talent. Candidates will have 2 assignments, in 2 continents and in 2 different SHV companies. Stores follow strict procedures when receiving and storing goods. Our goal is to have all butcheries in South America HACCP certified by the end of 2018. Own branded products go through specialized quality audits. HACCP (Hazard Analysis of Critical Control Points) is a management system in which food safety is addressed through the analysis and control of biological, chemical and physical risks. Every business unit implemented different initiatives, including safety inspections, hazard assessments, policy definitions, training programs, Argentina Peru communication to reinforce a care culture Monthly diagnostic evaluations based on Adjusted operation and infrastructure within the company and employed different HACCP, in 15 stores. to meet HACCP requirements. Employees mechanisms to ensure a Health and Safety system All stores will be audited in working. In 2017, countries presented decrease Brazil 2018. on lost-time injury frequency rates: -31% in As Brazilian stores do not have butcheries, Health, Safety Brazil, -17% in Peru and –23% in Venezuela. HACCP does not apply. However, the audit Venezuela criteria for own branded products changed to Venezuela assessed During April, all operations organized a be aligned to international standards, following sustainable aspects on special week dedicated to Occupational the market trends in the country. 30% of own branded and Wellness Health and Safety. Activities were organized suppliers and audited in Head Offices and Stores. Countries Colombia their products’ participated of a regional quiz and Makro 5 butcheries received HACCP certification in quality through Colombia was the big winner. 2017, totalizing 12 certified stores. physicochemical analysis. 6 7 Environmental Footprint Makro measures and controls 4 indicators: GHG emissions water consumption energy consumption waste management Each country has developed various initiatives to reduce the environmental footprint: • Training and internal communication - encouraging the conscious usage of natural resources; • investment in infrastructure and technology to reduce consumption; • replacement of non-renewable sources for greener alternatives. Makro Brazil and Colombia are consuming only renewable electricity to reduce emissions, helping us to have the following results: CO2 Equivalent Emissions (Kg) Target: Reduce by 15% the emission intensity* -44% -89% -92% -28% -88% compared to 2015. Electricity (KWh) Target: Reduce the consumption intensity* by 10% -40% +9% -8% -20% -80% compared to 2015 in Brazil, Peru and Venezuela. In Argentina, 15% and Colombia, 12%. Water (m3) Target: Reduce the consumption intensity* in each -55% -1% -7% -5% -73% BU by 10% compared to 2015. Waste (Kg) No Target: Reduce the generation intensity* in each BU -10% -7% -12% +4% available by 10% compared to 2015. data Recycling (%) No Target: Recycle minimum of 15% of the total waste 25% 26% 22% 33% available generated. data *Intensity is measured associated to sales: Emissions, consumptions and generation / 1 million of sales in Local Currency. Due to inflation impact, Venezuelan information is considering gross indicators. 8 9 Social Green Buildings Responsibility Makro is committed with the incorporation of international environmental standards in the construction Makro wants to support the development of local and disadvantaged communities. Throughout 2017, and remodeling of its stores. All new buildings aim to be LEED (Leadership in Energy and Environmental different initiatives were done: Design) certified, complying with the guidelines defined by the U.S. Green Building Council. Among the benefits provided by this construction standard are: Argentina: 46 underprivileged youngsters benefited from the program Pescar Centers, which promotes personal and technical development, preparing them for the labor market. Interior spaces with Reduction of Decrease in Increase in the Electricity and 22 young people learned social competences with the “Investing Pays Off” better conditions emissions of operating and value of the water saving program, in partnership with United Way NGO. for health and greenhouse gases waste costs company assets productivity 7 houses built in developing areas with Techo
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