EDEKA UND WWF SIND PARTNE R FÜR NACHHALTIGKEIT. EDEKA and WWF. Progress Report 20

Transcription

1 EDEKA UND WWF SIND PARTNE R FÜR NACHHALTIGKEIT EDEKA and WWF ip h s r e n t r a P ic g e t a r St 17 Progress Report 20

2 CONTENTS 1. The partnership for sustainability 1.1. Introduction 1.2. How progress is measured 1.3. External audit of progress 1.4. Contract negotiations and setting new targets 1.5. Overview of progress achieved 1.6. Methodology used in the assessment 2. Progress achieved in the subject areas 2.1. Fish and Seafood 2.2. Wood / Paper / Tissue 2.3. Palm Oil 2.4. Soya / More Sustainable Livestock Feed 2.5. Climate Climate protection within the company Climate protection within the product range 2.6. Packaging 2.7. Risk analyses 2.8. Freshwater 3. Projects carried out as part of the partnership 3.1. Banana Project 3.2. Citrus Project 3.3. Agriculture for Biodiversity 4. Co-Branding 4.1. Contract negotiations and status 4.2. Co-Branding Tool 4.3. Standards and accompanying communications 5. Audit certificate

3 1. THE PARTNERSHIP FOR SUSTAINABILITY 1.1. Introduction EDEKA and the nature conservation organisation WWF have been working together in a partnership for five years now. Based on a shared desire to protect nature and conserve resources and preserve them for future generations, this collaborative effort, which began in the year 2009 with a joint initiative aimed at protecting the oceans and fostering sustainable fisheries, was expanded into a comprehensive strategic partnership for sustainability in mid In the year 2017 the partnership was extended, and it was also expanded with the inclusion of the new subject area of procurement management for critical agricultural commodities. Being a future-oriented cooperative group of companies, EDEKA is working towards achieving a significant reduction of its ecological footprint. This is because a more sustainable way of doing business, one that adapts the consumption of resources to a level that the Earth can sustainably supply, is necessary in order to safeguard the future, and it thus forms part of a special responsibility we have for the environment and for society. As our partner, the WWF provides expert advice on the expansion, further development and best possible implementation of sustainable business practices on the part of EDEKA. The WWF Deutschland is part of the international environmental protection organisation known as the World Wide Fund for Nature (WWF). For over 50 years now, the WWF network has been active around the globe to stop environmental destruction and instead create a future in which humankind and nature can live in harmony. In addition to reducing EDEKA s ecological footprint and implementing sustainable supply chains, the aim of this transformative partnership is also to promote greater awareness of sustainable economic activity and more sustainable patterns of consumption. EDEKA and the WWF are endeavouring to raise awareness among consumers for environmental issues relating to their shopping habits in order to motivate them to make more environmentally responsible buying decisions. To this end, the Panda logo is used to draw attention to more sustainably produced products on the shelf that meet WWFapproved environmental standards and which are certified by independent auditing organisations. These include the EU organic logo, Bioland, Naturland, comparable organic product associations, MSC, FSC and Blauer Engel eco label. Additional information about the strategic partnership between EDEKA and the WWF is available on the following websites: Throughout this progress report references are provided to additional relevant information available on the Internet. CONTACTS Geschäftsleitungsbereich Ökologischer Fußabdruck (Ecological Footprint) WWF Deutschland Reinhardtstr Berlin CONTACT EDEKA Nachhaltiger Einkauf (Sustainable Purchasing) / CSR EDEKA ZENTRALE AG & Co. KG New-York-Ring Hamburg

4 1. THE PARTNERSHIP FOR SUSTAINABILITY 1.2. How progress is measured The overarching common goal is based on concrete individual objectives, the implementation of which calls for a sustained long-term effort. As far back as the end of 2014, these objectives were reviewed, refined and made even more ambitious, and additional objectives were agreed. In addition to the presentation of the level of achievement of the objectives by the end of the first contract period on 31 May 2017, this progress report also provides an outlook on the common objectives newly formulated in the negotiations for the extension of the partnership. The subject areas the partnership is currently focusing on include Fish and Seafood, Wood, Paper and Tissue, as well as Palm Oil, Sustainable Livestock Feed (Soya), Climate, Freshwater and Packaging. In addition, the preparation of procurement risk analyses for agricultural commodities from different countries of origin is considered to be part of the cooperative effort, and over the course of the year it was developed into a separate subject area. Fish and Seafood Wood, Paper and Tissue Palm Oil Soya Climate Freshwater Packaging The degree to which targets have been achieved is assessed and documented by the WWF once a year, on 30 June. Progress is evaluated by comparing the previous year s results with the status at the time of monitoring. In addition, the initial situation (the baseline ) is used as a basis for comparison and to assess progress and target achievement. The progress report assesses how many of the articles relevant to the various subject areas have already been changed over to more sustainable alternatives. They include, in addition to the private-label products, internal consumables such as printing paper and toiletries for the EDEKA-Zentrale in Hamburg. The evaluation is based on the private-label catalogue pertaining to the year for which progress is measured. 1 This catalogue, which is used by the merchants, allows an estimate to be made as to how many changed-over products are theoretically available to consumers, as part of the assessment External audit of progress Both parties to the partnership have agreed to commission an independent auditing firm to audit the monitoring once a year. The auditor s responsibility is to assess whether facts exist that lead to the assumption that the information to be audited in the progress report has not been prepared in accordance with the criteria of accuracy, reliability, comparability, balance, timeliness and completeness Contract negotiations and setting new targets The past year was characterized by intensive contract negotiations which concluded with the confirmation and extension of the partnership between EDEKA and the WWF. Experiences gained during the first five years of the partnership have been incorporated and have led to the introduction of structural changes at both EDEKA and the WWF. This progress report reviews the degree of achievement in relation to the defined objects for the second phase of the partnership, which were reviewed and tightened in the year Furthermore, the sections on the individual subject areas conclude with an outlook for the newly defined objectives. These include, on the one hand, the tightening of individual objectives, such as in the subject area of Palm Oil, and, on the other hand, new objectives were added to the subject areas. One of these is the subject area of Climate, where a Climate Supplier Initiative (CSI) is to be established in cooperation with the WWF. 1 For the subject areas Wood, Paper and Tissue and Palm Oil, this is the private-label catalogue 2016/17. For the monitoring in the subject area Fish and Seafood, the most recent private-label catalogue (2017/18) was chosen to ensure consistency with the reports for the previous years. For the assessment of co-branded products, the private-label catalogue 2016/17 was used for all subject areas. Since the assessment in the subject area of More Sustainable Animal Feed (Soya) deals with quantities, the private-label catalogue is not relevant in this area. 2 According to the Guidelines for Sustainability Reporting GRI G4. Strategic Partnership between the WWF and EDEKA Progress Report

5 1. THE PARTNERSHIP FOR SUSTAINABILITY Its aim is to develop joint climate protection measures in the supply chain by working with the relevant parties in the industry. Last but not least, there is the announcement of the new subject area of Procurement Management For Critical Agricultural Commodities, which represents a further development of the procurement risk analyses produced over the past years. Both in this subject area and in the priority areas of Freshwater and Packaging, efforts are being made to ensure that progress can be quantified. These newly defined objectives will be reported on in the next progress report Overview of progress achieved In the subject areas Fish and Seafood, Wood, Paper and Tissue and Palm Oil, further progress was made in terms of product changeover. For example, the proportion of Good Choice products in the Fish and Seafood product range was successfully increased. The changeover of all barbecue charcoal products in the subject area Wood, Paper and Tissue was also recorded for the first time in the year And finally, there were significant improvements in relation to palm oil, with 98% of pure palm oil products containing only palm oil that has been certified along the entire supply chain. There still remains potential for improvements in these subject areas as well, however. Relevant examples would be an increase in the recycling share in the subject area of Wood, Paper and Tissue, the changeover from Book & Claim to RSPO Mass Balance-certified ingredients for products containing derivatives and fractions of palm oil, or the changeover of the entire fish and seafood range. Last year, the subject area Soya/More Sustainable Livestock Feed was included in the quantitative progress measurement for the very first time. Here the activity occurred in the changeover to GM-free animal feed. The goal of a complete changeover to certified, more sustainable feeding could not be reported for any of the products during the year under review, but it will remain in place. The key figures for climate protection are not yet included in the assessment this year; it is envisaged that they will be included in the progress report for the year Methodology used in the assessment The various sub-targets, arranged by subject area, along with the progress made in attaining the respective targets, are described below. The assessment is presented using the following gradings: Target achieved Significant improvement over previous year 3 Objective being pursued / Baseline established Significant deterioration / Attainment of target in jeopardy 4 In addition, starting this year an indication is provided as to whether and to what extent work on achieving a target is continuing. The following symbols provide information about the status: Work completed Work to achieve objective continues unabated Continuing work to achieve the refined and more ambitious target Target missed 3 Improvement by more than 5% compared with the previous year s result, where targets have remained unchanged. 4 Deterioration by more than 5% compared with the previous year s result, where targets have remained unchanged. Strategic Partnership between the WWF and EDEKA Progress Report

6 2. Progress achieved in the subject areas 2.1. FISH AND SEAFOOD TARGET: On 31 May 2017, the 100% changeover of the fish and seafood product range for EDEKA s private labels (direct influence area) to sustainable products is complete. 5 The WWF and EDEKA have agreed to collaborate on a project to make improvements in the area of aquaculture. The objective of achieving a 100% sustainable product range for branded articles and producer brands (on which EDEKA can only exert influence indirectly) as well is being pursued through efforts to persuade the suppliers. The delisting of eel, ray, wild sturgeon and shark from all EDEKA stores continues to be actively pursued. In addition, work is under way to improve transparency within the supply chain through a project aimed at implementing the IUU legislation. 6 In the counter area, work is ongoing to change the product range to include products from more sustainable sources, and to improve consumer information (counter certification, changes to product range, promotions). OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY 7 OUTLOOK Changeover of the private-label range to more sustainable products EDEKA PRIVATE LABELS of which wild fish (75%) of which aquaculture (25%) 79% Good Choice products, 19% Second Choice, 2% Preferably not 8 80% Good Choice products, 17% Second Choice, 3% Preferably not 73% Good Choice products, 27% Second Choice Pizza 1 product Preferably not 9 Animal feed EDEKA private label Cash & Carry (C&C) 44% Good Choice, 37% Second Choice, 19% Preferably not 100% (2 products) MSC Delisting of endangered species* 2 stores reporting misconduct 10 Work not involving the product range Project aimed at improvements in aquaculture Enhancing traceability and transparency in the supply chain Improvements to the product range and to the information provided in the counter area The project is currently in the planning phase. Implementation at supplier level is carried out as part of the cooperation with a supplier. Provision of information and supervision of the changeover of the product range are via EDEKA-Zentrale. * For a total number of 11,000 stores and about 4,000 self-employed retailers. 2016/2017 was the first time active screening was carried out in 182 stores; there was only one incident in both of those years. 5 Considered part of the fish and seafood product range are all articles that have the word fish or the name of a fish species in their trade name, as well as all products containing at least 15% fish. The entire private-label product range, including pizza, pet food and Cash & Carry (C&C), is included in the assessment. Sustainable sources here refers to fisheries and aquaculture operations are either certified in accordance with an environmental standard recognised by the WWF (e.g., MSC, Bioland, Naturland) or registered in the WWF fish and seafood database as sustainable sources (Score 1 and 2). The scores (1-5) are based on an assessment of fisheries and aquaculture operations using the following criteria: condition of the stock, ecological impact, and management of the stock. Scores 1 and 2 (in the WWF Fischratgeber ( Fish Advisor ) shown in green) indicate a largely sustainable fishery/aquaculture operation. Score 3 (yellow) indicates a fishery/aquaculture operation that is of acceptable standard. Scores 4 and 5 (red) indicate a destructive fishery/aquaculture operation. 6 IUU: Illegal, Uncontrolled and Unregulated fishery 7 Achievement was maintained. The changeover was implemented with the target date of Good Choice corresponds to MSC, Naturland, Bioland, ASC and Scores 1 and 2 (green) acc. to the WWF database. Second Choice corresponds to Score 3 (yellow) and Scores 4 and 5 acc. to the WWF database correspond to the recommendation Preferably not ). 9 A product with a red mark (Score 4) based on an updated assessment of the relevant fishery (species: Katsuwonus pelamis, region: FAO 87, fishing gear purse seine with FAD). Scientific (re)evaluation of fisheries is carried out at intervals of no more than one year. The implementation of an updated assessment for the procurement of merchandise takes a certain amount of time due to existing contracts and the need for coordination. 10 Reports were forwarded to EDEKA-Zentrale, which is responsible for, and which actively supervised, the tracing. Since 2016, proactive checks have been conducted at the stores. Strategic Partnership between the WWF and EDEKA Progress Report

7 2.1. PROGRESS ACHIEVED IN THE SUBJECT AREAS FISH AND SEAFOOD STATUS: EDEKA continues to pursue the goal of achieving a 100% sustainable fish and seafood product range throughout the cooperative group of companies. This goal applies to the entire product range, including branded articles and manufacturer s brands. For critical products (Scores 4+5) measures are being developed and implemented that are designed to achieve both an improvement and the certification of fisheries and aquaculture operations. The monitoring of the changeover of the fish and seafood product range described here is limited to EDEKA s private labels; however, the cooperative effort continues to pursue the goal of achieving the changeover of the product range outside that of the private labels. 11 To this end, EDEKA s objectives are communicated and promoted in discussions with suppliers of branded articles and manufacturer s brands. Development of the EDEKA private-label product range nationwide 12 Product line EDEKAprivate label Total articles number ASC BIO MSC Score 1 Score 2 Score 3 Score 4 Score 5 Baseline 2012 Products per cent % 0 0% 2 2% 45 56% 0 0% 3 4% 31 38% 0 0% 0 0% Survey 2013 Products per cent % 1 1% 5 6% 42 53% 1 1% 1 1% 30 38% 0 0% 0 0% Survey 2014 Products per cent % 2 3% 4 6% 44 62% 0 0% 2 3% 19 27% 0 0% 0 0% Survey 2015 Products per cent % 1 1% 3 4% 49 63% 0 0% 3 4% 22 28% 0 0% 0 0% Survey 2016 Products per cent % 4 1% 3 4% 52 63% 0 0% 1 4% 21 28% 0 0% 0 0% Survey 2017 Products per cent % 12 14% 3 3% 52 59% 0 0% 2 2% 17 19% 2 2% 0 0% Survey % 19% 26% 74% Table 1: Timeline for the composition of the EDEKA private label product range (wild fish and farmed fish), from the baseline in 2012 up until the most recent survey in The diagram shown here reflects the distribution in the EDEKA private label product range: Good Choice corresponds to MSC, Naturland, Bioland, ASC and to Scores 1 and 2 (green) acc. to the WWF database. Second Choice corresponds to Score 3 (yellow), and Scores 4 and 5 (red) acc. to the WWF database correspond to the recommendation Preferably not. Good Choice Second Choice 79% Preferably not In the year 2017, the range of EDEKA s private-label products subject to the assessment was expanded with the inclusion of seven additional products. There has been a slight shift in terms of the origin of the products this year. For example, the proportion of wild fish products declined by 6%, whereas the proportion of products from aquaculture rose by 6%. The number of MSC-certified products remained unchanged. The number of ASC-certified products tripled, with an increase of 12%. The goal of achieving a 100% sustainable range of fish and seafood products was not yet achieved in the year 2017, but it remains our clear objective. Compared to the baseline from 2012, a significant increase in the number of Good Choice products has been achieved. The proportion of Second Choice products has declined considerably. In 2017 there were two products bearing the red grading ( Preferably not ). One of these resulted from an updated assessment of the relevant fishery from yellow to red (species: Katsuwonus pelamis, region: FAO 87, fishing gear purse seine with FAD). Scientific (re)evaluation of fisheries is carried out at intervals of no more than one year. The implementation of an updated assessment for the procurement of 11 The monitoring covers the sub-targets EDEKA private labels, Pizza, Animal Feed and C&C. 12 The number of products fluctuates as the product range is developed further. Strategic Partnership between the WWF and EDEKA Progress Report

8 2.1. PROGRESS ACHIEVED IN THE SUBJECT AREAS FISH AND SEAFOOD merchandise takes a certain amount of time due to existing contracts and the need for coordination. The second article bearing the red mark (species: Katsuwonus pelamis, region: FAO 34, fishing gear purse seine with FAD) was procured by EDEKA temporarily due to a lack of availability of the product, which was a result of the difficult market situation in the tuna fisheries sector. This procurement transaction will be changed again in a timely manner, since it is in breach of EDEKA s sustainable fish procurement policy. In the area of animal feed, an improvement can be seen on the one hand in the quadrupling of the Good Choice category, but there was also a doubling in the Preferably not category. The overall trend is positive. The improvement is due to the changeover in the fish meal used, which was procured predominantly from more sustainable sources. However, for many fish species it is difficult to implement a narrowing down to individual points of origin, mainly due to the special characteristics of the animal feed production (particularly the reliance on offcuts and by-products of food production), and this resulted in an increase in the number of red products. Within the framework of the monitoring, products are differentiated according to wild and farmed fish. It was evident in 2017 that the level of target attainment in the strategic partnership for wild fish has remained virtually unchanged. In the farmed fish segment, on the other hand, there has been a sizeable increase in the number of ASC certified products, resulting in a total increase in the number of Good Choice products from 47% to 73%. In the aquaculture segment, the WWF recommends the organic certification from Naturland and Bioland, and the ASC standard for conventional farming. Outlook The targets from 2018 onward On 31/05/2022, the 100% changeover of the fish and seafood product range for EDEKA s private labels to sustainable products was completed. In addition, EDEKA is pursuing the goal of achieving a 100% sustainable product range also for branded articles and manufacturers brands where EDEKA can only exert indirect influence in ongoing discussions with suppliers and manufacturers. In order to protect special habitats, reduce by-catch and make fisheries management sustainable, EDEKA and the WWF are working on the promotion and use of transparencyenhancing measures as well as on new methods/approaches for fisheries, following individual case-specific reviews. The WWF and EDEKA are collaborating on a project to make improvements in the area of aquaculture. The delisting of eel, ray, wild sturgeon and shark from all EDEKA stores continues to be actively pursued by EDEKA. At the same time, EDEKA is working with the WWF on the development of a risk analysis procedure that is capable of examining a product to determine whether the EU regulations against illegal, unregulated and undocumented fishing (IUU) were complied with. Based on the results EDEKA, with the support of the WWF, is drawing up risk minimisation measures and implements them in collaboration with suppliers. In the counter area, work is ongoing throughout the EDEKA cooperative group of companies to change the product range to include products from more sustainable sources, and to improve consumer information (counter certification, changes to product range, promotions). The WWF conducts annual screenings at the EDEKA stores in the regions. The random sampling carried out as part of this screening is intended to give both partners a better picture of the state of implementation of the sustainability criteria in the field.... find more about the subject of fish at: Strategic Partnership between the WWF and EDEKA Progress Report

9 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.2. WOOD PAPER TISSUE TARGET: The targets defined in the initial contract period for a 100% changeover of all relevant private-label articles (including primary end consumer packaging) and of internal consumables to recycled materials (Blauer Engel/FSC - Recycled) or FSC virgin fibre materials continue to be in place, and the previously attained levels of changeover were at least maintained. Generally applicable to all segments is the principle that reduced consumption is preferable to using certified recycled materials (Blauer Engel/FSC -Recycled), which in turn is preferable to using FSC -certified virgin fibre. EDEKA s goal is for all articles in the barbecue charcoal price entry level segment to be changed over and certified to FSC standard by 2017, and all tissue articles to be changed over to recycled or FSC virgin fibre products. All virgin fibre products must bear the FSC label. By 2017, EDEKA is aiming for 100% of all transport packaging to verifiably consist of 100% recycled materials. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY 13 OUTLOOK Changeover to FSC /recycling Beverage cartons Tissue articles Office products Paper plates and cups Barbecue charcoal Timber products Product packaging Transport and shipping packaging Paper products for internal consumption 100% of the products FSC -certified 100% of the products Blauer Engel/FSC - certified, ongoing work to increase the proportion of recycled material 100% of the products Blauer Engel/FSC - certified, ongoing work to increase the proportion of recycled material 100% of the products FSC -certified 100% of the products FSC -certified 98% of the products Blauer Engel/FSC - certified, ongoing work to increase the proportion of recycled material 93% of packaging changed over Changeover is taking place gradually Target achievement level of over 99% was maintained 13 The level of achievement was maintained. The changeover took place at various target dates by December 2015 and May 2017, respectively. STATUS: In the fifth year of the partnership, 99% of the EDEKA private-label product range containing wood, paper and tissue components has been changed over to recycled material, FSC or Blauer Engel. A breakthrough was achieved last year in relation to the changeover of GUT&GÜNSTIG barbecue charcoal. The target of changing over the entire barbecue charcoal product range was achieved. The aim is still to increase the proportion of recycled material. Many items of packaging have already been changed over from FSC virgin fibre to FSC recycled. In the office products segment there has also been an increase in the number of products changed over to FSC Recycled or Blauer Engel. The changeover in transport packaging is now under way, the first packaging items have already been changed over. Due to the extent several thousand products are involved and complexity of the changeover process (such as a very timeconsuming discussions with suppliers), the degree of changeover achieved this year to date has yet to be determined. Strategic Partnership between the WWF and EDEKA Progress Report

10 2.2. PROGRESS ACHIEVED IN THE SUBJECT AREAS WOOD PAPER TISSUE Product portfolio Number of products of which changed over of which recycled Number % Number % Beverage cartons % - - Paper plates % - - Barbecue charcoal % - - Tissue % 1 2% Timber products % 2 5% Office products % 18 43% Product packaging % - - Table 2: Changeover of EDEKA private-label products and packaging to FSC /recycled CHANGEOVER OF INTERNAL CONSUMPTION MATERIALS (EDEKA-ZENTRALE) TO FSC /RECYCLED (STATUS 30/06/2017) Product portfolio tonnes of which changed over of which recycled Tonnes % Tonnes % Materials used for internal consumption % % Table 3: Changeover of internal consumption materials (EDEKA-Zentrale) to FSC /recycled (status 30/06/2017) STATUS: The changeover of 99% of paper used for internal consumption (e.g., all printing paper and toiletries used at EDEKA-Zentrale) to more sustainable sources was achieved as far back as 2014 and has been maintained. Due to their very low volume, products not yet changed over are largely irrelevant. 100% of the major items, such as printing and toiletry paper, have been changed over to Blauer Engel recycled paper. 14 INTERNAL CONSUMPTION: COST ARTICLES (SERVICE PACKAGING) The regions can obtain consumables such as paper bags or bakery bags, so-called cost items or service packaging, from the EDEKA-Zentrale. The changeover for these consumables is effected beyond the contractual agreement. In the year 2016, EDEKA had to make the changeover for a considerably higher number of cost items (service packaging) made of paper and cardboard that had not yet been relevant for the assessment in For four out of a total of 24 relevant cost items (service packaging), the changeover has not yet been carried out. 14 A small proportion (<1%) of articles is ordered directly, i.e., in a decentralised manner at EDEKA-Zentrale and can therefore not be assessed. Strategic Partnership between the WWF and EDEKA Progress Report

11 2.2. PROGRESS ACHIEVED IN THE SUBJECT AREAS WOOD PAPER TISSUE Outlook The targets from 2018 onward EDEKA intends to change over all wood and paper private-label products, including end consumer packaging, to recycled materials, preferably with the Blauer Engel logo or to FSC. In addition, EDEKA continues to work towards changing all transport and shipping packaging for the private labels over to preferably recycled (Blauer Engel) or FSC recycled material. The packaging targets cover all packaging materials. By 2021 at the latest, the changeover for all labels and printed instructions for use, for example, as well as for wooden ice cream sticks is to be completed. In the area of transport and shipping packaging, individual tests (functionality and stability must not be compromised) have shown that recycled cardboard is well suited. Especially for paper and cellulose products such as kitchen cloths and stationery, there is still potential for further increasing the proportion of recycled materials. When it comes to product packaging, food safety must also be taken into account, however. As long as printing companies continue to use mineral oil-based inks, the problem of mineral oil residues leaching from packaging remains, so this will need to be investigated further within the framework of the partnership, with the aim of developing concrete countermeasures. more information on the subject of Wood/Paper/Tissue is available at: Strategic Partnership between the WWF and EDEKA Progress Report

12 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.3. PALM OIL TARGET: In all EDEKA private-label products containing palm oil (without derivatives/fractions) EDEKA will continue to use 100% pure refined and certified palm oil(fat). Certification is carried out according to RSPO Segregated or comparable certification standards recognised by the Forum for Sustainable Palm Oil (FONAP). In addition, a pilot project is under way for the implementation of the FONAP criteria. By 2017, EDEKA had planned to change all private-label products containing palm kernel oil (without derivatives/ fractions) over to 100% pure refined and certified palm oil(fat). Certification is preferably carried out according to RSPO Segregated or, where this is not possible, according to RSPO Mass Balance or according to comparable certification standards recognised by the Forum for Sustainable Palm Oil. By 2017, EDEKA had planned to change derivatives/fractions of palm (kernel) oil over to 100% RSPO Mass Balance standard or to equivalent certification standards recognised by the Forum for Sustainable Palm Oil. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Changeover to certified sources conforming to the RSPO supply chain model Segregated or Mass Balance EDEKA private-label products containing palm oil (only pure, refined palm oil) Changeover to RSPO SG completed for 98% of the products EDEKA private-label products containing palm oil Changeover to RSPO SG completed for 46% of the products; changeover to RSPO MB for 54% Derivatives/fractions of palm (kernel) oil Changeover to RSPO SG and MB completed for 54% of the products STATUS: In the second phase of the partnership, the target definition for palm oil was tightened with the aim of achieving a higher degree of changeover to physical supply chains. In total, 99% of products containing palm oil components in the EDEKA private-label product range have been changed over to certified sources. However, the supply chain model specified in the target agreement has not yet been achieved in relation to all the palm (kernel) oil components. Table 4 shows the degree of changeover to the different supply chain models achieved, by product group. For products containing both palm oil and palm kernel oil and/or derivatives/fractions, the rule is that the individual components must be changed over according to the supply chain models described. Product portfolio Products containing palm oil not incl. derivatives/fractions Products containing palm kernel oil/fat Products containing derivatives/fractions of palm (kernel) oil Segregated of which changed over Mass Balance Book & Claim not changed over Changeover to desired supply chain model % 3 1% 0 0% 1 <1% 98% 11 46% 13 54% 0 0% 0 0% 46% 51 14% % % 2 <1% 54% Table 4: Changeover of EDEKA private-label products acc. to RSPO supply chain model Strategic Partnership between the WWF and EDEKA Progress Report

13 2.3. PROGRESS ACHIEVED IN THE SUBJECT AREAS PALM OIL RSPO supply chain model Segregated (SG) RSPO-certified palm oil is processed separately along the entire supply chain; the product contains only RSPO certified palm oil. RSPO supply chain model Mass Balance (MB) The quantities of RSPO-certified palm (kernel) oil sold along the entire trade chain precisely match the quantities purchased. The trade flows of certified and non-certified materials are not kept separate; it follows that the RSPO-certified material may therefore not necessarily end up in the end product. Book & Claim In the Book & Claim trading model, palm oil producers sell virtual certificates. A certificate represents a certain volume of certified palm oil. The purchase and redemption of the certificates entitles the holder to make the following claim: increases the production of (RSPO-certified) sustainable palm oil. 98% of products containing only pure palm oil have been changed over to the RSPO Segregated supply chain model. This represents an increase of 6% compared to the previous year. All the products in this segment contained physically RSPO-certified palm oil (SG/MB). Many products contain palm kernel oil or palm kernel fats, sometimes in small quantities. The agreed changeover of the components to preferably RSPO Segregated or in exceptional cases, and only if shown not to be feasible otherwise, to RSPO Mass Balance was 46% completed. In this segment, too, the proportion of products that were certified according to the desired supply chain model rose significantly. For derivatives and fractions in particular, the changeover to physically certified products represents a challenge, owing to the many individual processing stages involved. The degree of target achievement for the changeover of private label products containing derivatives/fractions of palm (core) oil stands at 99%. To date 54% of products have been changed over to the physical models (SG/MB), an increase of 12%. The target definition for the changeover of derivatives/fractions of palm (kernel) oil was adjusted in the second phase and now measures the changeover to the RSPO Mass Balance standard for the purpose of assessing the level of attainment. The purchasing of GreenPalm certificates will continue to be accepted until such time as the changeover has been completed. Outlook The targets from 2018 onward The certification of the pure palm oil continues to be carried out in accordance with 100% RSPO Segregated. EDEKA will also endeavour to use palm kernel oil certified according to RSPO Segregated wherever possible. For all EDEKA private-label products containing palm (kernel) oil derivatives and fractions EDEKA will continue to use 100% RSPO Mass Balancecertified derivatives and fractions. EDEKA continues to be member of RSPO and FONAP in order to be able to actively promote the improvement of the standards through this membership. EDEKA strives towards having at least 30% of the palm (kernel) oil (incl. derivatives and fractions) used at EDEKA to physically meet and be verified acc. to the POIG criteria. Until the end of 2022, EDEKA will be supporting a smallholder project that meets the additional FONAP criteria.... find more about the subject of palm oil at: Strategic Partnership between the WWF and EDEKA Progress Report

14 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.4. SOYA MORE SUSTAINABLE LIVESTOCK FEED TARGET: In the field of pig, cattle and poultry feed, EDEKA supports the switch to domestically/europe-sourced animal feed or to more sustainable, GM-free, certified soya (RTRS+gm-free, soya acc. to ProTerra guidelines, Danube soya). This endeavour is being pursued by systematically approaching suppliers in the sub-segments Meat/Cold Meats, White Line and Frozen Poultry. 15 In addition, EDEKA start-up projects aimed at trialling the changeover to domestically/ Europe-sourced animal feed or to more sustainable, certified, GM-free soya are being expedited. Animal feeding studies are being continued and trialled at enterprise level (pilot enterprises). Information campaigns and awareness-raising work will also be continued. 16 OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Changeover to certified, more sustainable animal feed Sub-segments White/Yellow Line Meat/Cold Meats Start-up projects Hay or pasture milk Barn-laid eggs GUT&GÜNSTIG Broiler chicken, frozen GUT&GÜNSTIG Work not involving the product range Feeding studies at pilot enterprises Information and awareness-raising The number of VLOG/Good Animal Feed certified products has increased significantly in the White Line sub-segment and in the Yellow Line sub-segment. No changeover in the sub-segment No change compared to the previous year. German hay or pasture milk has been on the market since 2014 and is sold in 3 regions. 100% changeover to GM-free feed. No change compared to the previous year. The level of achievement was maintained. Changed over to more sustainable feed since May Feeding studies completed Presentations, discussions at trade and association level STATUS: The baseline established last year forms the basis for the evaluation of the results of the 2017 monitoring. As in the previous year, only the quantities already changed over were assessed this year; this excludes products that are difficult to assess due to their complexity. As it is not feasible to show the product quantities as a proportion of the entire product range, it is only possible to determine whether there has been a general increase or decrease in the quantities sold after the change-over. 15 The subject area Soya/SustainableAnimal Feed is divided into several sub-segments, each of which covers a product group in EDEKA s private-label product range. White Line refers to milk and dairy products, Yellow Line to the range of cheese products. This includes about 150 products. 16 A changeover to certified, more sustainable animal feed involves contractual formalisation in the specification for a product as part of the supplier selection process. Strategic Partnership between the WWF and EDEKA Progress Report

15 2.4. PROGRESS ACHIEVED IN THE SUBJECT AREAS SOYA MORE SUSTAINABLE ANIMAL FEED CHANGEOVER BY SUB-SEGMENT As in the previous year, no changeover occurred in the Meat/Cold Meats sub-segment. In the sub-segment White and Yellow Line, 27 products were changed over to GM-free animal feed by the cut-off date of 30/06/2017. Compared to the previous year, the number of products has risen significantly, and this explains the high growth rates since the monitoring in Certification here is carried out via the Food Without Genetic Engineering Association (VLOG). Eleven products are currently in the process of being changed over. In addition to the VLOG certification, there is also the category Good Animal Feed ). 17 It applies to suppliers who cannot currently achieve VLOG certification, which requires a guaranteed overall changeover of the product and all its components, but whose feed is GMO-free. Ten products in this category have been changed over to date, with a combined volume of 17,006 t. A total of 48 products were assessed in the year 2017, for which a total product quantity of around 466,000 tonnes has been changed over to VLOG or Good Animal Feed. Certified more sustainable animal feeding could not be determined for any products this year; this objective continues to be pursued. 18 Sub-segment changed over to (baseline) Certified more sustainable VLOG Good Animal Feed Total Meat/Cold Meats (in t) White Line (in t) Yellow Line (in t) ,012-7, ,345 17, , ,083-1, ,709-15,709 Table 5: Changed-over quantities in the private-label product range, by sub-segment CHANGEOVER WITHIN THE SCOPE OF THE START-UP PROJECTS The hay milk sold in the regions of Hessenring, Northern and Southern Bavaria is is produced entirely without imported or European soya and and therefore only contains locally produced sources of protein. The product has been marketed since In the start-up project Frozen Chicken, previously attained levels were also maintained. Here the animal feed at all suppliers is certified more sustainable soya, as has been the case since May The percentages of the sales volumes changed over are shown in Table 6. Due to the complexity within the supply chain, convenience products were not included. In the start-up project Barn-laid eggs in the EDEKA private label GUT&GÜNSTIG, all eggs continue to be sourced from laying hens fed on GM-free feed. 19 An operation using certified, more sustainable feeding could not be identified this year. There has been no progress in this area; the target still remains. In this reporting period, there were again a number of suppliers indicating that they are using certified more sustainable soya animal feed. Contractual formalisation has still not taken place. 17 Good Animal Feed is an EDEKA private label Hay milk changed over to sustainable animal feed is not included here, since it is accounted for as part of the start-up projects. 19 In addition to the private label GUT&GÜNSTIG, organic eggs are also available via the private label. Work carried out on the GUT&GÜNSTIG private label thus covers all eggs sold by EDEKA. Strategic Partnership between the WWF and EDEKA Progress Report

16 2.4. PROGRESS ACHIEVED IN THE SUBJECT AREAS SOYA MORE SUSTAINABLE ANIMAL FEED Start-up project changed over to Certified more sustainable, in % VLOG, in % GUT&GÜNSTIG eggs - 100% Frozen chicken 100% - Hay milk (White Line) 100% - Table 6: Trend for the changeover in the start-up projects INFORMATION Last year, decision-makers were again informed and had their awareness raised by means of discussions at specialist and association level. Birgit Wilhelm/WWF Why the WWF and EDEKA are demanding GM-free soya certified to be more sustainable In Latin America, more than two-thirds of soybeans already come from so-called transgenic i. e., genetically modified plants. One example is the breeding of so-called herbicideresistant soybeans. These genetically modified beans survive the use of certain crop protection products, while all other crops are killed. In the EU, it is not permitted to use genetically modified soybeans for cultivation. They may, however, be imported into the EU for use as livestock feed. Genetically modified animal feed must be rejected as long as damage to nature and humankind cannot be ruled out. This also applies to soya. However, GM-free crops are only a first step towards greater sustainability. In order to safeguard the GM-free status as well as conserve valuable ecosystems and promote sustainable agriculture, the WWF supports the use of the certification systems RTRS+gvo free, soya according to ProTerra guidelines and Danube Soya/Europe Soya. All certification systems include minimum requirements regarding social standards and land conversion/rezoning standards, the use of chemicals as well as soil quality. These minimum standards can be regarded as a first and important step towards protecting ecologically valuable land and towards greater sustainability. Another alternative in livestock feeding is to replace soybeans with domestic feedstuffs such as peas, field beans or lupins the WWF and EDEKA are also working together on this aspect. Strategic Partnership between the WWF and EDEKA Progress Report

17 2.4. PROGRESS ACHIEVED IN THE SUBJECT AREAS SOYA MORE SUSTAINABLE ANIMAL FEED Outlook The targets from 2018 onward In the segment of animal feed for pigs, beef and poultry, EDEKA is changing over to domestically and European-sourced feed or to more sustainable, GM-free certified soya (RTRS+GVO-free, soya conforming to ProTerra guidelines, Danube Soya, Europe Soya). EDEKA continues to be strongly committed to maintaining what has been achieved to date (e.g., start-up projects, working with individual suppliers). Within the framework of pilot/start-up projects, EDEKA will be working with suppliers of eggs and chickens until the end of 2018 on trials for the feeding of domestic grain legumes such as peas, field beans and lupins. EDEKA is conducting additional start-up projects involving more sustainable animal feed in accordance with the positioning mentioned. The aim is to sell the resulting products at EDEKA starting from 1/1/2019. In the sub-segment White Line, EDEKA is aiming to dispense with the use of soya components in dairy cattle feed for the production of 60% of the number of articles or switch to more sustainable, GM-free, certified soya (RTRS+ GM-free, soya conforming to ProTerra guidelines, Danube soya) by 30 June By 30 June 2019, EDEKA wants to boost this proportion to 75%, and by 30 June 2020 to 85%. In the sub-segment Yellow Line, EDEKA is aiming to dispense with the use of soya components in dairy cattle feed for the production of 25% of the number of private-label articles from suppliers or dairies using predominantly milk sourced in Germany, Austria or Switzerland, or switch to more sustainable, GM-free, certified soya (RTRS+ GM-free, soya conforming to ProTerra guidelines, Danube soya) by 30 June By 30 June, 2020 EDEKA plans to gradually increase this proportion to 50%, and to 75% by 30 June In order to accelerate the changeover in the animal feed for private-label products from suppliers or dairies that mainly process milk from outside Germany, Austria and Switzerland, EDEKA is in ongoing discussions with the relevant suppliers. In the sub-segment Meat/Cold Meats EDEKA, with the support of the WWF, will be developing a concept by 2018 for a gradual changeover to more sustainable animal feed. It will be used as the basis for a joint decision regarding the timing for a complete changeover. As part of developing the concept EDEKA, with the support of the WWF, is conducting a feasibility study which began in September 2017 and will be completed by the spring of find more about the subject of soya at: Strategic Partnership between the WWF and EDEKA Progress Report

18 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.5. CLIMATE CLIMATE PROTECTION WITHIN THE COMPANY TARGET: EDEKA is aiming for a continual reduction in the emission of greenhouse gases. The guidance adopted for this purpose is the policy objective of limiting global warming to well below 2 C compared with pre-industrial levels. To this end, a pilot phase runs until 31/05/2015 involving energy consultations for five representative types of stores in an EDEKA regional company and of Netto Marken-Discount, as well as for three locations in production, logistics and administration that are under the direct control of EDEKA-Zentrale. Using the findings from the pilot phase, a climate protection programme featuring milestones, measures and timelines within the term of the contract was prepared for all other locations of the EDEKA-Zentrale and of the Netto Marken-Discount branches by 30/06/2015. In addition, EDEKA- Zentrale is preparing an action plan to support the EDEKA regional companies in the implementation of climate protection measures. The action plan includes concrete proposals for measures, offers of support and means of communication. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Primary target: GHG emissions by EDEKA to be reduced gradually, based on the 2 C route EDEKA-Zentrale Implementation of climate protection measures at 3 pilot locations (production, logistics, administration) Implementation of the action plan in all the remaining locations of the Zentrale Implementation of a pilot project with a service provider Netto Marken-Discount Implementation of the action plans in 5 pilot branches Implementation of the action plans in all remaining Netto branches Implementation of the action plans at all Netto locations from administration and logistics, incl. the truck fleet Regions Implementation of climate protection measures in 5 pilot stores Development and implementation of an action plan for providing support to the EDEKA regional companies in the implementation of climate protection measures. On the basis of the climate footprints for 2013/15, it is clear that absolute emissions have increased slightly. A review of the individual measures has been carried out. Some of the measures, or their review, respectively, are at the planning stage. Concepts for optimisations and for lighting have been prepared. A concept has been prepared. A decision regarding the starting point for the project is yet to be made. To the extent possible, all the measures were taken into account. Measures have been and will be implemented in new buildings and during renovations. There is still a need to make upgrades in existing branches. Measures regarding lighting and heating implemented. Measures to optimise routes and logistics activities have been implemented for the most part. Some remaining measures are still pending. Measures were implemented in two out of four selected pilot stores in accordance with the energy audit. Discussions are held at regular intervals. The action plan has not been developed further. The regions are implementing individual measures. Communication channel for promoting climate protection activities among the self-employed merchants within the Group Individual measures are carried at the regional level. Strategic Partnership between the WWF and EDEKA Progress Report

19 PROGRESS ACHIEVED IN THE SUBJECT AREAS CLIMATE PROTECTION WITHIN THE COMPANY STATUS: Total emissions by the EDEKA Group have risen slightly due the expansion of business and due to the introduction of new technical facilities. The various measures set down in the action plan for the EDEKA-Zentrale were partially implemented by the target date. For example, energy analyses were carried out, and the lighting equipment was retrofitted. In the spring of 2017, concepts were developed for the establishment of a metering infrastructure, the implementation of which will began at the end of By the cut-off date, the action plans for Netto Marken-Discount have for the most part been implemented both in the selected pilot branches and in the existing branches. These include, for example, the installation of a comprehensive energy management system and the conversion of lighting equipment to LED technology. Employees are reached through awareness campaigns and training sessions. In the areas of logistics and administration, the measures were partially implemented. The conversion of the lighting to LED technology was carried out by the cut-off date. In addition, the route planning tool Track & Trace, which is used to optimize logistics and route planning, was implemented throughout the Group. This boosts the degree of utilisation of the vehicles and thus contributes significantly to fuel savings and cost minimisation. Some remaining measures are still pending. They will be implemented in the next phase. The climate protection activities in the regions continue to be addressed individually. Via the Arbeitskreis Nachhaltigkeit (Sustainability Working Group) the regions regularly obtain information about the current status of the activities. Outlook The targets from 2018 onward EDEKA intends to reduce the greenhouse gas emissions in proportion to the sales area in square metres, of the EDEKA Group of companies by 30% by the year 2020, and by 50% by the year 2025, compared with the baseline year This science-based reduction target applies to both the EDEKA-Zentrale and Netto Marken-Discount. Each of the seven regional companies is free to participate in the Group s target on a voluntary basis. For the product-range-related Scope 3 emissions EDEKA will define and publish an equally binding GHG reduction target (e.g., -30%) for the target years 2020 and 2025 by 30/07/2018. The EDEKA-Zentrale and Netto are drawing up a roadmap of concrete climate protection measures that will ensure that their own locations make a proportional contribution towards achieving the Group-wide GHG reduction target. EDEKA and Netto will publish this roadmap by 31/01/2018 and implement it in the coming years ( ). For each regional company signing up to the Group s GHG reduction target, publication will take place by 31/05/2018, to be followed by the implementation of an individual action plan. EDEKA will in future update and publish the climate balance from the baseline year 2011 every two years. Starting with the climate balance 2015, EDEKA will also include the productrange-related GHG emissions from the upstream and downstream supply chain in the form of plausible estimates. They will be reported under the Scope 3 emissions. Strategic Partnership between the WWF and EDEKA Progress Report

20 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS CLIMATE PROTECTION WITHIN THE PRODUCT RANGE TARGET: In relation to the product range, EDEKA is aiming for significant reductions in the greenhouse gas footprint of at least 100 product-range and climate-relevant private-label products by To this end, quantitative reduction targets and measures with a timeline within the contractual period are determined for the identified products and publicly communicated by EDEKA by 30/06/2015. The measures cover the areas of product range, product design, supplier management and customer communication. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Primary target: GHG footprint of at least 100 product-range and climate-relevant private-label products reduced significantly. Implementation of measures in Product range Product design Supplier management Customer communication No improvements were carried out in terms of the product range. No work has been carried out in relation to the product range. No work has been carried out in relation to the product range. It is not possible to make a definitive statement about the trend for GHG emissions from the participating farms. No work has been carried out in relation to the product range. STATUS: The results of the hotspot analysis and the climate protection programme derived from it that pertains to the product range were not implemented in the period under review. This includes work on the product range in relation to the products in the range or the product design. No measures were implemented in the areas of product range, product design and customer communication, as these have proved to be of little practical use. As part of the contract negotiations, it was therefore decided to draw up a roadmap for measures relating to the product range and to set up a Climate Supplier Initiative (CSI) for joint climate protection measures in the supply chain in collaboration with industry players. Based on the currently available data, it is not possible to make a conclusive statement on the trend for greenhouse gas emissions from the farms integrated in the banana project. The reasons are the lack of a reliable baseline and the need to clarify technical issues relating to the emission factors on which the data is based, especially regarding fertilisers. A campaign to raise awareness among banana growers in relation to the risks and consequences of climate change has been carried out. Strategic Partnership between the WWF and EDEKA Progress Report

21 PROGRESS ACHIEVED IN THE SUBJECT AREAS CLIMATE PROTECTION WITHIN THE PRODUCT RANGE Outlook The targets from 2018 onward EDEKA, with the support of the WWF, is compiling a roadmap of measures for individual products and product groups in the private-label product range that impact on the Scope 3 reduction target. EDEKA will be publishing this roadmap by 31/01/2018 and implement it in the coming years ( ). In addition, EDEKA and the WWF are establishing a Climate Supplier Initiative (CSI) for joint climate protection measures in the supply chain in collaboration with industry players. Within the framework of the CSI, EDEKA will be drawing up a roadmap of measures that impact on the Scope 3 reduction target by 31/01/2019. EDEKA will be publishing this roadmap by 31/01/2019 and implement it in subsequent years ( ).... find more about the subject of climate at: Strategic Partnership between the WWF and EDEKA Progress Report

22 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.6. PACKAGING TARGET: Objectives for the optimisation of packaging are defined on the basis of a jointly developed evaluation system that has been coordinated with stakeholders and tested using a selection of different items of packaging. All packaging for new private-label products will from now on be evaluated using this system. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Changeover of private-label product packaging to more sustainable alternatives Development of the evaluation system Testing of the evaluation system Agreement on targets for packaging Assessment of new packaging based on the system The system has been completed and prepared in table form. The evaluation system has been tested using a number of queries, but testing has not been carried out in comprehensive and systematic fashion. Content-related preparations for the agreement on targets are under way. Statements on packaging design concepts were made. Inclusion of packaging innovations was examined. STATUS: The objectives for the new contract period were discussed and approved. Preparatory discussions were held to prepare the content for the objective Use of PET recycling material. On the basis of the evaluation system, individual evaluations of various packaging and packaging innovations were carried out on behalf of EDEKA. At the same time, background information on packaging previously coordinated with the WWF was made available to wholesalers and retailers. In the context of communication measures, the topic of Bringing reusable bags along has also been addressed as part. Strategic Partnership between the WWF and EDEKA Progress Report

23 2.6. PROGRESS ACHIEVED IN THE SUBJECT AREAS PACKAGING Outlook The targets from 2018 onward Starting in June 2017, EDEKA has been reviewing the packaging material in terms of its recyclability prior to every introduction or revision of a private-label product. Where bioplastics are to be used for private-label packaging, the raw materials must be certified according to Bonsucro, RSB or ISCC Plus. Following the clarification of technical questions, EDEKA and WWF agree on a target for the use of recycled material for PET beverage bottles and PET in the drug store area by the end of 2017 at the latest. The materials aluminium, PVC and polystyrene will are graded, by the end of 2017 EDEKA and the WWF agree on a measurable target for the reduction in the use of these materials in packaging. In the year 2020 EDEKA and the WWF will agree on new targets for the changeover in the remaining private-label packaging. By January 2018, EDEKA and the WWF will set quantitative targets for the reduction of single-use carry bags for EDEKA. The same goes for t-shirt bags and knot bags. With the support of the WWF, EDEKA prepares a campaign designed to provide the merchants with background information on the topic of packaging of loose goods and carries out an inventory of the regions in which pilot projects would be feasible until mid EDEKA and the WWF jointly prepare target group-oriented information on packaging and packaging materials for the Fruchtkontore (fruit departments), the retail trade and end consumers.... find more about the subject of packaging at: Strategic Partnership between the WWF and EDEKA Progress Report

24 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.7. RISK ANALYSES TARGET: The WWF prepares procurement risk analyses for a maximum of ten agricultural commodities and a maximum of ten countries. SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Preparation of risk analyses All the risk analyses requested were prepared. In preparation for their further development into a separate subject area, raw material profiles were also prepared. STATUS: Procurement risk analyses determine the social, ecological and economic risks associated with the production of an agricultural commodity at country level. The risk analyses requested up until 30/06/2017 were prepared. Up until May 2017, EDEKA was provided with 22 raw materials profiles. The raw materials profiles contain all relevant information for the various product areas in compact form as well as initial recommendations for risk minimisation. The analyses and raw materials profiles provide the means to assess social and ecological risks associated with the production of agricultural raw materials and to develop mitigation strategies and counter measures on the basis of this assessment. One way of achieving this is the development and implementation of projects designed to make products more sustainable throughout the entire supply chain using a systematic and long-term approach. Outlook The new subject area Procurement Management, and new targets from 2018 onward This subject area is intended to enable decision-makers at EDEKA (especially those in Purchasing) to gain rapid and in-depth insight into current procurement risks specific to raw materials by 31 May The aim is to counter the risks by putting concrete mitigation measures in place. The development of a procurement management web tool to identify, control and reduce procurement risks, with the Fruchtkontor serving as a pilot, and the development of several modules (raw material profiles, supplier profiles, supply chain comparison) is carried out in parallel with the effort to determine the impact on EDEKA. The web tool also serves to strategically address mitigation measures in the supply chain (e. g. certified raw materials, capacity building with suppliers) as well as on site in growing countries (projects). Monitoring and evaluation of progress in the management of the gradual reduction of procurement risks as well as joint activities for market transformation are intended to result in a continuous and cross-market process of improvement. Strategic Partnership between the WWF and EDEKA Progress Report

25 2. PROGRESS ACHIEVED IN THE SUBJECT AREAS 2.8. FRESHWATER TARGET: For jointly selected products or product groups, water risks are identified and reduced. The definition of the reduction targets is a joint effort. At the river basin level (local level), the Potato project (Egypt) and the Banana project (Colombia and Ecuador) to reduce water risks are continuing. By 2017, a new water project complying with the AWS (Alliance for Water Stewardship) standards was planned to be be implemented. A guide called Water Stewardship in the LEH is being developed. The existing Water Risk Filter will be updated by From then on, the water risks of priority products were planned to be reviewed again by A catalogue of water criteria and a concept for reducing water risks were planned to be developed for the farm level by By mid-2017, risk reduction measures were planned to be piloted for a maximum of ten selected products or product groups. OVERVIEW OF PROGRESS ACHIEVED SUB-TARGET STATUS 30/06/2017 AND SUMMARY OUTLOOK Reduction of water risks at river basin and farm level Determining water risks Reduction of water risks in projects Potato project in Egypt Banana project: Water Stewardship in Colombia/Ecuador Water management and Water Stewardship in the Citrus project in Spain Water risk determined for the bulk of all products manufactured for EDEKA worldwide The project was successfully completed in September Water Stewardship platform increasingly institutionalised and project portfolio developed. First European farmer implements the standard of the Alliance for Water Stewardship (AWS). Internal water management system AWS implementation in pilot clusters Development of EDEKA water risk tool Development of a guide called Water Stewardship in the LEH Update of the Water Risk Filter Implementation of the standard in Spain approx. 50% complete. An agreement for the implementation of AWS was signed with smallholders in Peru. Development activities have been largely completed and raw material data sets have been produced. The development of the guide is dependent on the outcomes of the other targets. Local data for Great Britain, South Africa, Brazil, Colombia, Spain and the Mekong region have been implemented. Strategic Partnership between the WWF and EDEKA Progress Report

26 2.8. PROGRESS ACHIEVED IN THE SUBJECT AREAS FRESHWATER STATUS: In the partnership between EDEKA and the WWF, the subject area of Water is dealt with in selected projects on the one hand, and Group-wide with the development of the EDEKA internal water management system on the other. The potato cultivation project in Egypt was completed in September In addition to analysing the groundwater situation and raising awareness among local farmers, the project partners succeeded in setting up a water user group for the region s large farms. In the Banana project, the institutionalisation of the Water Stewardship Platform an association comprised of various private-sector companies, public agencies and civil societal organisations within the region was further advanced in Colombia. This means the platform will be given a more solid structure (e.g., its own secretariat) and become more capable of taking action with regard to the projects to be implemented. The Citrus project in Spain was added to the original target in mid In addition to implementing measures at the Finca (e. g. installation of soil moisture sensors), the project partner Iberesparragal is the first European agricultural enterprise to seek certification in accordance with the Alliance for Water Stewardship (AWS) standard. Certification is expected to be issued in early The certification of pilot plants in accordance with the AWS standard is one of the pillars of the internal water management system first presented in the 2016 Progress Report which will be further developed as part of the partnership between EDEKA and the WWF. The standard serves as a risk reduction measure in locations with a high water risk, and the pilot projects stand in for the corresponding aspect of the target formulation. In addition to the pilot project in Spain, an agreement was reached between EDEKA, the WWF and a supplier of organic fair trade bananas that provides for the implementation of the standard at smallholdings in Peru. The development of the EDEKA Water Risk Tool, which enables suppliers to analyse their water risks and provide evidence of appropriate mitigation measures, is almost complete. Essentially, this involved the production of data sets for the water risk indicators for different agricultural products. Use of this tool will commence on 01/01/2018. The development of this tool will replace the requirement for re-examination of water risks contained in the original target formulation as the tool allows for a more continuous and automated risk assessment. By developing this tool, the partners are also making a contribution towards publicly accessible WWF Water Risk Filter ( into which any new datasets will also be integrated. In addition, local risk data sets were developed for the UK, South Africa, Brazil, Colombia, Spain and the Mekong region, and they are now gradually being published and made available on the Water Risk Filter. The development of a guide titled Water Stewardship in the LEH is intended to include the results of the implementation of internal water management and is therefore being pursued in parallel to the work on the other targets. Strategic Partnership between the WWF and EDEKA Progress Report

27 2.8. PROGRESS ACHIEVED IN THE SUBJECT AREAS FRESHWATER Outlook The targets from 2018 onward At the beginning of 2018, EDEKA will be introducing an internal water management system, initially for fruit and vegetable products. This system provides for the inclusion of freshwater criteria in the product requirements for fruit and vegetable suppliers as well as a web-based solution, the EDEKA Water Risk Tool. EDEKA implements the projects completed by May 2017 as well as two or three additional AWS pilot projects. EDEKA combines the introduction of the water management system with training courses for buyers in the fruit and vegetable sector. By the beginning of 2018, a procedure for the evaluation of the concrete changes achieved with the introduction of the new water management system will be developed and then launched together with the annual survey for the 2018 Progress Report. In a next step, EDEKA will expand the internal water management system to include additional product groups. To support selected supporters in their efforts to reduce water risks EDEKA, with the support of the WWF, is in the process of establishing a special works programme. In projects currently in progress, such as the Citrus project or the Banana project, measures will continue to be implemented in the field and in the affected river basins. Additional projects are planned for the next phase of the partnership. Moreover, EDEKA and the WWF are also promoting a transformation of the market towards more sustainable use of water resources. To this end, EDEKA and WWF are involved in organising appropriate events and are promoting the inclusion of improved water criteria in agricultural standards.... find out more about the subject of water at: Strategic Partnership between the WWF and EDEKA Progress Report

28 3. Projects carried out as part of the partnership 3.1. BANANA PROJECT WORKING TOGETHER TOWARDS A MORE SUSTAINABLE BANANA In this project, which has been ongoing since 2014, the WWF and EDEKA are working towards making conventional banana cultivation more environmentally and socially compatible. A great number of measures involving the six areas of ecosystems/biodiversity, water management, integrated crop production and soil management, climate protection, waste management and social aspects have been implemented at the participating farms in Colombia and Ecuador since In October (Colombia) and December (Ecuador) of 2016, the last round of monitoring for the first contract period was carried out on the farms. Within the scope of this survey, random checks were carried out on requirements that ought be complied with 100% by the end of the project. The following degrees of compliance were found: Ecosystems/biodiversity: 82.63% Water management: 76.04% Integrated plant cultivation and soil management: 78.36% Climate protection: 76.09% Waste management: 74.67% Social aspects: 87.98% Approximately 30 project farms are coordinated within the project. In addition to challenges related to cultivation, such as the very specific threat posed by the Black Sigatoka mushroom, the project work was affected by a high degree of fluctuation among both farm employees and the project team. The intercultural and interdisciplinary setting presented an additional challenge. The project was initially extended until the end of May 2016, and then again until December 2017, with the terms and conditions remaining unchanged. Strategic Partnership between the WWF and EDEKA Progress Report

29 3.1. PROJECTS CARRIED OUT AS PART OF THE PARTNERSHIP BANANA PROJECT A detailed report on the results for the first contract period will be available by the end of Some selected results can be mentioned here in advance: In order to protect the biotopes on the farms, the cultivation of bananas on 33 hectares was ceased during the first phase of the project, and the areas released were subsequently rehabilitated as buffer zones. In terms of societal aspects, it was possible to ensure that there were no longer any fixedterm contracts of employment and that the workers, with the exception of some workers on three farms in Ecuador, were admitted to the social security system. Based on the currently available data, it is not possible to make a conclusive statement on the trend for greenhouse gas emissions. The reasons are the lack of a reliable baseline and the need to clarify technical issues relating to the emission factors on which the data is based, especially regarding fertilisers. The information available on the use of plant protection products has improved considerably. In Ecuador, the goal of reducing the use of plant protection products in the WHO II category was achieved, whereas in Colombia the use of these products has increased. In Colombia, a Water Stewardship Platform was established with the aid of the project. In addition to banana growers, the coffee and palm oil sectors as well as local authorities, national institutions, NGOs and research institutions are also represented here. The platform is used to collaborate on the subject of water management in the river basins of Rio Frío and Rio Seville. It allows the participants to inform themselves, exchange information and develop and implement joint projects. In view of the high water risks in river basins, cooperation between the various stakeholders is essential if a more sustainable and safer water use is to be achieved. The project partners are in discussions about a continuation of the project from 2018 onward. Another important insight from the first phase of the project was that some issues, such as the use of water, should only be partially coordinated directly at the farms. In addition to the implementation of concrete measures at farm level, additional platforms should therefore be launched in a further project phase, for example for the development of a network linking regional biotopes. Strategic Partnership between the WWF and EDEKA Progress Report

30 3. PROJECTS CARRIED OUT AS PART OF THE PARTNERSHIP 3.2. CITRUS PROJECT HOW CAN THE CONVENTIONAL CULTIVATION OF CITRUS FRUIT BE MADE MORE SUSTAINABLE? INITIAL FINDINGS FROM THE CITRUS PROJECT IN SPAIN The Citrus project launched in 2015 is intended to make the conventional cultivation of oranges and mandarins more sustainable. The focus is on improving water use, preserving and promoting biodiversity and optimising the use of plant protection products. The measures implemented by the Finca Iberesparragal with the support of the WWF and EDEKA since the start of the project have borne fruit. Results in the area of biodiversity The promotion of beneficial organisms for the biological control of pests is working very well. The total impact from the use of pesticides has decreased by about 80%, while the use of insecticides has been reduced by as much as approx. 90%. Pesticides classed as highly hazardous according to the PAN list are no longer being used. An exception is the use of an insecticide against the dreaded Mediterranean fruit fly (Ceratitis capitata). It is currently not possible to dispense with the application of Spinosad. Spinosad is used in combination with an attractant, usually only in the month of October. The use of the insecticide is therefore very targeted, and very low. Spinosad is certified for use in organic farming according to the EC-ECO Regulation but is on the PAN list because of its acute toxicity to bees. At the present time, the use of Spinosad in combination with attractants is the least harmful method available for controlling the Mediterranean fruit fly. However, there is an ongoing effort within the project to work towards replacing this substance as well. The number of ladybird species, which are used as bioindicators in the project, has risen from 7 to 15 species. The ladybirds, which used to be found only along the river, have spread over the entire area of cultivation. In other examples, numerous nesting boxes were installed, as well as perches for birds of prey. Strategic Partnership between the WWF and EDEKA Progress Report

31 3.2. PROJECTS CARRIED OUT AS PART OF THE PARTNERSHIP CITRUS PROJECT Results in the area of freshwater In order to improve water use, six humidity probes and additional water meters were installed, among other measures taken. Irrigation is to be optimised by analysing a number of different parameters. Up until June, water consumption was on average 6% below the legally permitted amount. This means that it is very likely that the target of 8% below the permitted amount will be achieved by the end of the irrigation season. Moreover, the Finca Iberesparragal has become the first agricultural producer in Europe to commit to implementing the Alliance for Water Stewardship (AWS) standard. With this step, which has an impact beyond the boundaries of the finca, the project is now also making a contribution to more sustainable water use in the entire river basin. With the pilot phase having ended so successfully, and with the available quantities of more sustainably produced citrus fruits to be expanded, Iberesparragal, EDEKA and the WWF are currently working together to include additional producers in the project. Strategic Partnership between the WWF and EDEKA Progress Report

32 3. PROJECTS CARRIED OUT AS PART OF THE PARTNERSHIP 3.3. Agriculture for biodiversity During the first contract period, the WWF and EDEKA developed a new nature conservation module in cooperation with the Ökologischen Anbauverband Biopark (Organic Farming Association Biopark) and with scientific support from the Zentrum für Agrarlandschaftsforschung, ZALF e.v. (Centre for Agricultural Landscape Research), which was first published in May The nature conservation module consists of 100 nature conservation measures which are implemented by the participating entities depending on their suitability for the operation from a nature conservation perspective. The aim of the project is to conserve and increase the diversity of wild fauna and flora in agricultural habitats in order to counteract the dramatic decline of native flora and fauna. 21 At present some 62 biopark operations in the federal states of Schleswig-Holstein, Mecklenburg-Western Pomerania, Brandenburg and Saxony-Anhalt are participating in the project; 55 of them are certified. Additional measures capable of making an active contribution to nature conservation are particularly effective in organic farming, because the existing pool of species is relatively large, and many species are represented at least in low population densities. The species can benefit from the optimisation measures, as is demonstrated by an increase in the population. Furthermore, organically cultivated areas are relatively easy to penetrate for migratory species. Newly established structures can therefore be populated relatively quickly. As part of the project, both the measures and the results obtained following the implementation of the measures are recorded and made transparent for the consumer. Agriculture for biodiversity is thus also a way of making consumers aware of the relevance of organic cultivation. The project logo points the way towards making more conscious decisions when shopping, and a tracking code allows the origin of the products to be traced back to the individual farms. The marketing of these products has been under way at EDEKA Nord since April Over 90 meat and cold cuts products are sold under the Natur Pur private label. Fresh potatoes marketed under the Unsere Heimat Bio brand and bearing the project logo Agriculture for biodiversity can also be found in stores. EDEKA supports the project, guarantees the producers the acceptance of their agricultural products, and pays a fee for this. Yet the price of the product on the shelf remains the same. All the measures implemented as part of the project have been and still are receiving scientific support from the Leibniz Centre for Agricultural Landscape Research (ZALF) e. V. In recent years, there has been an effort to systematically record and assess the flora (segetal flora, Arnoseris minima) and fauna (whinchat, amphibians) on selected farms: The measures in support of the whinchat such as the creation of flowering strips along the edges of arable fields are proving particularly impressive in their success. The brood success of whinchat, for example, has almost doubled in the areas where the measure has been implemented when compared with fields with mown edges. The combination of structural diversity in the landscape, extensive ecological management and small-scale measures offer the whinchat favourable living conditions at cooperating farms that were assessed. Find more information about this project and on the results of the monitoring at: und 21 Explanations on the background can be found in the study Grundlagen für einen Naturschutzstandard im Ökolandbau (foundations for a nature conservation standard in organic farming) at: Strategic Partnership between the WWF and EDEKA Progress Report

33 4. CO-BRANDING 4.1. Contract negotiations and status CONTRACTUAL AGREEMENT: According to the agreement between EDEKA and the WWF, private-label products that meet recognised standards (EU organic food seal, Bioland, Naturland or similar organic food associations, MSC, FSC or Blauer Engel) and are certified accordingly by independent auditing organisations are also eligible for displaying the WWF Panda logo on the packaging (co-branding). For organic food products, the WWF additionally reviews the regional water situation and the country-specific social situation, as these aspects are not adequately covered as part of the EU organic food certification. The WWF Panda is not a seal of sustainability in itself; its purpose is to help customers more easily identify products originating from more sustainable production. CO-BRANDING OF EDEKA PRIVATE LABELS, STATUS 30/06/2017 4% 16% Organic food 12% 68% FSC Blauer Engel MSC STATUS: At the cut-off date of 30/06/2017, a total of 339 EDEKA products featuring co-branding were recorded. Of these, 230 carry organic food, 53 MSC, 41 FSC and 15 Blauer Engel certification. A review of the private-label catalogue has shown that in the year 2016/17, 244 products (fresh fruit & vegetables were not included as they are not listed in the EDEKA private-label catalogue) in EDEKA s private-label product range featured the WWF Panda logo. The vast majority of these are organic food products with a share of 57% (140 products), followed by 48 MSC-certified products, which account for 20% of products with co-branding. 15 products with a share of 6% carried the Blauer Engel label, and 41 products, or 17% of the co-branded product range, were FSC -certified according to the private-label catalogue 2016/17. Strategic Partnership between the WWF and EDEKA Progress Report

34 4. CO-BRANDING 4.2. Co-Branding Tool The partnership s overarching goals the reduction of EDEKA s ecological footprint and the awareness-raising among consumers to help them make more appropriate purchasing decisions are being pursued in various ways within the partnership. On the one hand, joint campaigns to raise consumer awareness are being carried out under the partnership. On the other hand, work is under way in seven subject areas in an effort to achieve specific improvements. An essential component is the changeover of the private label product range to more sustainable alternatives. Private-label products that meet ecological standards recognised by the WWF and which are certified are permitted to carry the WWF Panda logo. For this purpose, an assessment process was developed within the framework of the partnership, and it has been in use since 2017, by means of the WWF s Co-Branding Tool. The WWF Panda is not an independent certification hallmark, however. The logo is an indicator highlighting the more sustainable alternatives on the shelf, and it can support consumers in their decision-making when shopping. What is being assessed? Generally speaking, all products with MSC, FSC, Blauer Engel or organic certification are permitted to feature the WWF logo alongside their certification hallmark. In the case of organic certification, regional or localised water risks and social risks are also assessed. To this end, the WWF water risk filter is consulted in the case of regions of origin with a potential water risk, for example, then the layout is coordinated and, if the assessment has been successful, the product is allowed to carry a WWF logo as an additional guidance aid in the store. Why is there an assessment? The purpose of the work using the co-branding tool is to increase transparency in the supply chain, to minimize social and water risks at the sources of supply and thus to achieve improvements along the supply chain. For moderate water or social risks, additional certificates are requested from the supplier on the one hand (e. g. Global G.A.P. or proof of fulfilment social compliance standards), and on the other hand, alternative sources of supply are being worked on in cooperation with EDEKA and the suppliers. more information on the topic of the WWF water risk filter is available at: Strategic Partnership between the WWF and EDEKA Progress Report

35 4. CO-BRANDING 4.3. Standards and accompanying communications STANDARDS AND ACCOMPANYING COMMUNICATIONS As well as co-branding in connection with recognised environmental standards, additional information about other standards is provided in text form. No logos are used in these instances; instead a text referring to a standard with a WWF recommendation is printed on the product. In the subject area Palm Oil, there are three products displaying information of this kind to date: the palm oil components they contain have been certified to RSPO Segregated standard along the entire supply chain. In addition, 18 FSC mixed-tissue products carry an information text featuring the WWF Panda as well as consumer information. PROJECTS AND BRANDING Projects initiated within the framework of the partnership between EDEKA and the WWF are also permitted to display the WWF Panda together with the appropriate claim. In the case of the Banana project, the WWF Panda indicates that these bananas are on the way towards setting a good example for the environmentally and socially compatible cultivation in the conventional segment. The claim makes clear that banana production is undergoing in a process of improvement. The claim for the Citrus project is: EDEKA and WWF Joint Project For A Better Orange. AGRICULTURE FOR BIODIVERSITY Products from the project Agriculture for Biodiversity carry the green Agriculture for Biodiversity logo alongside the EU organic food seal and the Biopark logo. A QR code provides consumers with immediate access to information about the project. In addition, the WWF Panda also helps guide consumers in making their choice. Strategic Partnership between the WWF and EDEKA Progress Report