S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 2 S GROUP IN BRIEF S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 We want to be a forerunner in responsibility In 2012, S Group set as its goal to be a fore- In this Review, we will talk about how we meet runner in responsibility in all business areas in the expectations of our co-op members and Finland. The target was set high and requires other stakeholders. hard work, but it is by no means unrealistic. The importance of stakeholders has increased S Group’s responsibility is already at a good considerably in the development of responsible level, even by international standards. At the operations in recent years. Our objective of same time, we must be honest and admit that being a forerunner in responsibility therefore there is inconsistency in our different business requires broader, more open and dialogue with areas: some of them have almost reached their various stakeholders. In this dialogue, we also goals while others have still a long way to go. hope to hear criticism, since it will help us an- ticipate changes in the operating environment. S Group’s responsibility is strongly rooted in Often it also teaches us valuable new things. different parts of our country. After all, the basic task of the Group’s independent co-operatives Dear reader, this past year we have been is to produce benefits and services specifically particularly focused on managing responsibil- for the residents of their operating areas. At the ity and developing responsibility reporting. The same time, they have been producing well- results of our work are already evident in this being and vitality in their regions and the whole Review, but we hope that the most significant of Finland for more than a hundred years. effects will be realised in our operations in the coming years. The co-operatives are owned by regular cus- tomers, no one else. Therefore, in S Group it Nevertheless, a lot has already been ac- is the co-op members’ expectations that define complished. In conclusion, I would like to use how we understand responsibility and which our progress in the use of wind power as an aspects of responsibility we focus on. At the example. We announced earlier that our goal is same time, it obligates us to provide them with to cover one quarter of our electricity consump- an opportunity to make responsible choices. tion with wind power in 2016. However, we can S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 S GROUP IN BRIEF 3 already raise the goal to a minimum of 50% of our electricity consumption. I hope you enjoy reading our Responsibility Review, and I invite you to talk with us! Kuisma Niemelä Chief Executive Officer, SOK 4 S GROUP IN BRIEF S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 For more information on S Group’s Responsibility Review: SOK CORPORATION P.O. Box 1, Lea Rankinen, Director of Corporate Responsibility FIN-00088 S GROUP, Pia Heilakka, Development Manager Tel. +358 10 76 8011 www.sok.coop E-mail addresses are in the format: [email protected] S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 S GROUP IN BRIEF 5 We asked you what You thought and let us know. you think are the it over... essential elements of responsibility This generated four main themes: Well-being through co-operative activities Personnel well-being and motivation Responsible products and services Resource efficiency 2 20 36 45 69 85 S Group Well-being Personnel Responsible Resource S Group in brief through co-oper- well-being products and efficiency in figures ative activities and motivation services S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 S GROUP IN BRIEF 7 S Group - owned by customers S Group is a Finnish co-operative group of companies operating in the retail and service sector. It consists of the SOK Corporation with its subsidiaries and 20 regional and 8 local co-operatives. The co-op members own the co-operatives, which in turn own SOK Corporation. The purpose of S Group’s business is to provide co-op members with diverse • Grocery and consumer goods trade S Group SOK services and benefits throughout Finland. • Service station and fuel sales CORPORATION • Travel industry and hospitality business CO-OPERATIVES Sub- The basic goal of all operations is to make SOK sidiaries • Automotive trade and accessories customers’ daily life easier and satisfy their • Agricultural trade need for services. (in the area of three co-operatives) • Co-op members’ banking services Business operations that are socially and (S-Bank) environmentally responsible and profitable create the foundation for S Group to carry S Group’s business operations are organised out long-term and beneficial operations as into nationwide chains. Various chain man- part of society. Profitable business opera- agement, service and support operations are tions create well-being through jobs, taxes produced centrally by SOK. S Group’s efficient and investments. business model is built on chain operations combined with regional co-operatives’ good knowledge of local markets and customers. S Group’s values have found their form over the course of the decades. They highlight In addition to business operations in Finland, responsible business operations, for which S Group operates in the supermarket trade a co-operative form of business and the as well as the travel industry and hospitality associated co-op membership are a natural business in Russia and the Baltic countries. basis. S Group has three Sokos Hotels in St Petersburg and one in Tallinn. There are • We are there for the customer. eight Prisma hypermarkets in Estonia, 14 in • We assume responsibility for people Russia, five in Latvia and three in Lithuania. 43, 417 and the environment. RETAIL AND SERVICE • We constantly develop our operations. PROFESSIONALS • Our operations are profitable. At the end of 2012, S Group had 1,697 out- lets: 1,663 in Finland, 17 in the Baltic countries AT THE END OF 2012, S GROUP and 17 in Russia. At year-end 2012, S Group EMPLOYED 43,417 RETAIL AND SERVICE PROFESSIONALS employed 43,417 service sector professionals. 8 S GROUP IN BRIEF S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 Key figures in 2012, EUR million S Group’s regional co-operatives 31 December 2012 (including the entire S Group) 12,037 RETAIL SALES 9,444 BONUS SALES 379 BONUS PAID 573 INVESTMENTS KUUSAMO Koillismaan Osuuskauppa 212 S GROUP’S RESULT OULU Osuuskauppa Arina KAJAANI Osuuskauppa Maakunta NURMES Jukolan KOKKOLA Osuuskauppa 2,055,227 Osuuskauppa KPO CO-OP MEMBERS SEINÄJOKI KUOPIO Etelä-Pohjanmaan Osuuskauppa PeeÄssä Osuuskauppa JOENSUU 43,417 JYVÄSKYLÄ Keskimaa Osk Pohjois-Karjalan EMPLOYEES Osuuskauppa (including the entire S Group) TAMPERE Pirkanmaan MIKKELI Osuuskauppa Osuuskauppa Suur-Savo 1,697 PORI Satakunnan LAPPEENRANTA OUTLETS Osuuskauppa Etelä-Karjalan Osuuskauppa (including the entire S Group and online stores) RAUMA KOUVOLA Osuuskauppa Osuuskauppa Ympäristö Keula HAMINA 1,663 TURKU Osuuskauppa Ympyrä OUTLETS IN FINLAND Turun Osuuskauppa LAHTI (including 5 online stores) Osuuskauppa Hämeenmaa KIRKKO- SALO NUMMI HELSINKI Suur-Seudun Osuuskauppa HOK-Elanto Varuboden- 21 Osuuskauppa Osla Handelslag CO-OPERATIVES S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 S GROUP IN BRIEF 9 Becoming a forerunner in responsibility The purpose of S Group’s business operations is to provide the co-op members with services and benefits. The shared objective of all S Group employees is to be a forerunner in responsibility. In S Group, responsibility means operations S Group’s strategic objective is to be a fore- that exceed the requirements set by legisla- runner in responsibility. This policy is part of tion and are based on S Group’s values the customer relationship strategy approved and responsibility principles, SOK Corpora- in 2012. In order to advance towards being tion’s ethical principles and shared strategic a forerunner in responsibility matters, we objectives set for responsibility. have defined a responsibility programme for S Group. 10 S GROUP IN BRIEF S GROUP’S CORPORATE RESPONSIBILITY REVIEW 2012 S Group’s responsibility programme S Group is a consumer co-operative, and therefore development of responsible operations primarily means improving areas that are considered essential by co-op members and other important stakeholders. The themes and development focus areas MATERIALITY MATRIX as well as the key indicators of S Group’s PERSONNEL WELL-BEING 1. Employment responsibility programme are based on a 2. Occupational safety 3. Equality, fairness 4. Supervisor-employee relationships stakeholder analysis conducted in the au- 5 16 tumn of 2011 and global responsibility meg- RESPONSIBLE PRODUCTS AND SERVICES 10 18 8 5. Product information, product origin 6 atrends. In connection with compiling the 6. Local food, local procurement 7 1 7. Production chain 14 13 responsibility programme, we also carried 8. Offering responsibly composed product 19 9 3 ranges; communication 21 12 2 out an international survey on responsibility 11 CO-OPERATIVE ACTIVITIES in forerunner companies. 9. Maintaining the co-operative activities ideology 20 4 10. Member benefits 11. Ethical values 15 17 We assessed the impact of stakeholders’ WASTE AND ENERGY 12. Managing wastage/waste expectations and global megatrends on 13. Use of wastage/waste 14. Increasing the efficiency of energy S Group’s operations from the perspective consumption, forms of energy used of both risks and opportunities. We see 15. Increasing the efficiency of the use of materials PERSONNEL WELL-BEING CUSTOMER, LOCAL PRESENCE the challenges of climate change, scar- 16. Consideration of special groups RESPONSIBLE PRODUCTS AND SERVICES city of energy resources and future forms 17. Expert service 18. Local services, procurement CO-OPERATIVE ACTIVITIES of energy as a business opportunity, and WASTE AND ENERGY TRANSPARENCY, CONCRETE ACTIVITIES, CUSTOMER therefore we invest in wind power, focus on COMMUNICATION 19.