Anne Santamäki SOK

Transcription

1 CCW seminar Anne Santamäki 1

2 The S Group Today 1. Structure t of the S Group p Presentation of S Group s business operations 3. the distinctive company form of the S Group 4. Responsibility in the S Group 5..Responsible co-operation 2

3 Structure of the S Group 3

4 Structure of the S Group 4

5 S Group in brief, 2012 S Group is a Finnish consumer cooperative retail company group with diverse range of retail business. S Group is cooperatively owned and run by its over two million members (households). S Group consists of 20 regional cooperatives and the SOK Corporation, which is owned by the cooperatives. 5

6 Basic tasks and responsibilities of the regional cooperatives and the SOK Corporation REGIONAL COOPERATIVES Providing services for members SOK CORPORATION Support services Providing benefits Development and for members strategic management Promoting the welfare of the local region Own business operations 6

7 The S Group in figures, 2012 (2011 figures) Retail sales: EUR 12,037 million (11,461) Profit before extraordinary items: EUR 212 million (264) Bonus paid: EUR 379 million (360) Investments: EUR 573 million (546) Outlets: 1,697 [in Finland 1,663] Employees: 43,417 people p (41,568) S Group is the biggest food retailer in Finland, market share is more than 45 % 7

8 The history of SOK 8

9 S Group s first 100 years Poor services, supply Co-op more effective than private stores Private stores more effective than Co-op Private stores lose their direction New meaning to customerownership, New areas of growth New strategy, new structure

10 Presentation of S Group s business operations 10

11 Business structure S- bank Supermarket trade Service station ti stores Department t and and fuel trade speciality stores trade Tourism and hospitality business Automotive trade and accessories Agricultural trade Other S Group s restaurants S Group s car dealerships 11

12 The distinctive company form of fth the SG Group 12

13 Positive cycle of membership Society Member S Group Units Membership Own region Chains Partners Cooperative societies 13

14 The S Group s mission is to provide services and benefits to its members. 14

15 THE S GROUP S VALUES 15

16 Responsibility in the S Group 16

17 The basis of responsibility principles Values and co-operative business organisation model The minimum level is to obey the legislation, but the target is to continuously improve our own operations Responsibility is implemented in co-operation with other stakeholder groups in the long value chain The perspective of responsibility is inherent in all the choices and decisions made in the S Group Corporate responsibility is the shared duty of all and a part of normal day-to-day work 17

18 Stakeholders expectations 18

19 Listening to stakeholders 19

20 Stakeholders expectations Welfare through cooperative activities Maintenance of cooperative enterprise ideology Benefits for members Ethical values The personnel s wellbeing and motivation Employment, occupation safety Equality, fairness Supervisor-employee relations Responsible products and services Product information, origin Local food and procurement Production chain Offering responsibly composed product range, communication Resource efficiency Material efficiency Waste management, recycling and re-use of waste Energy efficiency i Renewable energy 20

21 S Group Responsibility Program 21

22 Responsibility in S Group The level of responsibility in S Group s activities exceeds legal requirements Responsibility is based on S Group s values and responsibility principles, ethical principles and the joint strategic goals set for responsibility Implementation of responsibility principles are part of normal business management 22

23 Responsibility in S Group in the future The strategic goal in S Group is to be a forerunner in responsibility In 2012 we started to specify the measures required in the different business areas in order to achieve this goal, e.g. Responsible Products and Services Resource Efficiency 23

24 S-group responsibility program S-group Forerunner in Responsibility Responsible Products and Services Resource Efficiency Products origin and traceability Monitoring supply chain social and environmental impacts Sustainable raw materials Energy use of outlets Energy Efficiency Zero waste to landfill 24

25 Products origin and traceability Developing supply ppy chain transparency and traceability Identifying risks Transparent product information for consumers 25

26 Monitoring supply chain social and environmental impacts Developing production responsibility Social responsibility: > 90 % of the buying volume from risk countries BSCI or equivalent auditing process Environmental responsibility: Business Environment Performance Initiative (BEPI) development and pilot test in Vietnam 2013 BEPI 26

27 Sustainable raw materials Developing raw materials sustainability We define critical raw materials, sourcing guidelines and use of certification systems 27

28 Resource Efficiency Energy efficient lightning Zero waste to landfill Energy use target for outlets 28

29 The strategy and values of the S Group The corporate responsibility principles The responsibility program of the S Group Operational plans by segments Grocery Hotels, ABC Auto- Agri- Consumer restaurants motive business goods Action programs of regional cooperatives and subsidiaries Retail outlets 29

30 Key activities and results

31 Examples of sourcing policies Only FSC-certified tropical wood accepted Replacing palm oil when possible and promoting the use of RSPO certified palm oil Ban of sand-blasting in textile manufacturing Responsible fish and seafood policy Labelling the origin of the product Social and environmental requirements are in the quality appendix of purchasing agreement Requirements are equal to all suppliers Our international ti purchasing partners have an important role of implementing requirements and audit process 31

32 Responsible Products and Services Sustainable Raw Materials >2 200 Organic 69 FSC products products 236 Fair Trade products 881 Swan Eco labelled products 63 MSC products 34 % of Palm Oil RSPO certified 35 Petrol Stations selling E SOK 32

33 Energy and Material Efficiency Figures, 2012 Energy efficiency improved by 3,9 % 18 new wind power plants were built in 2012 Landfill waste decreased by 7 % Recycling, reuse and recovery rate was 85 % Water consumption decreased by 13,6 % 33

34 Responsible co-operationoperation 34

35 S Group s nationwide cooperation plan, 2013 Ice Skating Tour, winter The Finnish i Red Cross Mannerheim League for Child Welfare Tangomarkkinat Pori Jazz Verkatehdas Linnanmäki amusement park Moominworld Sirkus Finlandia Art Centre Salmela The Football Association of Finland Finnkino 35

36 Principles of responsible cooperation The goal is to support such activities (culture, sports and societal projects), which strengthen the emotional bond between co-op op members and the S Group and which provide more benefits for coop members. Part of the S Group s corporate responsibility. Channelled towards activities which are in line with the S Group s values. The aim is to find sponsorship deals which members can identify with. Partnerships should always offer clear benefits to members. 36

37 Targets and sizes of responsible cooperation The goal is to diversely support cultural and entertainment targets which interest co-op member groups. The focus in sports and exercise is on children and young people s recreational activities. Societal projects support especially socially and societally responsible activities. Of the funds used, approximately half are directed to sports, a quarter to culture and a quarter to societal projects. 37

38 Growth of S Group s grocery market share 2012 * = Suomen Lähikauppa 38