Sustainability at the REWE Group Stakeholder Workshop Cotton made in Afrika Burkina Faso 19. November 2009
REWE Group In numbers Total turnover 2008 49,8 billion national: 68,2 % international: 31,8 % Number of employees 319.292 Number of markets 14.714 REWE Group 2
REWE Group Foreign activities France transgourmet Poland Billa F/S C+C Latvia IKI-Group Russia Billa Czech Republic Billa Penny Lithuania IKI-Group GERMANY Slovakia Billa Austria Billa Bipa Merkur Penny ITS Switzerland Prodega Growa Howeg ITS Coop Touristik Ukraine Billa Rumania Billa Penny XXL F/S C+C Italy Penny Billa Standa Croatia Billa REWE Group Hungary Penny Bulgaria Billa 3
Sustainability at the REWE Group The REWE Group sustainability process 1 Internal and external analysis to identify the requirements for the sustainability strategy of REWE Group 2 Sustainability strategy 6 3 Internal and external reporting Project Coordination Evaluation of sustainability topics 5 Communication (internal and external) Involvement of management and employees 4 Topics are transfered to the strategic business units (SBUs) REWE Group 4
Sustainability at the REWE Group Multistakeholder-Dialogue at the REWE Group EXPACTATIONS OF THE SOCIAL RESPONSIBILITY Social responsibility Supply security at affordable prices Product stewardship (safety, good quality, healthy products) Implications Supply security at affordable prices also for sustainable products? Setting standards Influencing consumer behaviour towards sustainable consumption Using of market power to enforce and promote sustainable production conditions Education and active marketing of sustainable products Enforcement of social and environmental standards at supply chain partners Fair dealing with suppliers and producers Fair prices and fair business relations Special responsibility for the environment due to high importance of transportation and logistics Environmentally friendly and resource-saving optimization of logistics to reduce pollution Special responsibility for its employees as a major employer Securing jobs, fair dealing with employees REWE Group 5
Sustainability at the REWE Group From the perspective of institutional stakeholders, eleven criteria are condition for good practice Success factors of CSR in retailing Mentioned criteria 1. Credibility 2. Integration of stakeholder groups (the media as well as campaigns of NGOs have a long-term impact on the corporate image and thus influence the purchasing behaviour) 3. Commitment to long-term engagement 4. Consistent commitment 5. Success in making sustainability and CSR touchable and able to be experienced 6. Creating transparency 7. External traceability 8. Introduction of tools and standards and the monitoring of compliance 9. Open communication of targets, target achievements and of reasons for the failure to achieve them. 10. Becoming a problem-solving partner in the context of CSR 11. Helping the consumers to salve their eco-social conscience as to consumption The four dimensions of effective CSR-strategies (first indication) Relevance Integrity 5 11 2 10 Credibility 9 Commitment 4 8 3 6 7 2 1 REWE Group 6
Sustainability at the REWE Group The biggest impulse for the sustainability strategy lies in the development of growth potential Targets for sustainability 30,7% 36,0% 15,0% 18,3% Reduction of attack risks Cost reduction Growth other effects source: own survey REWE Group 7
Sustainability at the REWE Group The sustainability strategy high Influence on competitive position Top sustainability performances in the supply chain minimize risks sustainable innovations Plus sustainable experiments Lead low low Grade of innovation high With its corporate sustainability strategy, REWE Group enforces its claim to be perceived as sustainability leader in the retail market. REWE Group 8
Sustainability at the REWE Group The four pillars of sustainability Green Products Energy, Climate and the Environment Employees Social Involvement Advancement of sustainable products Energy efficiency management Human resources development Social projects with focus on nutrition Enforcement of social standards along the supply chain Increase of renewable energy Health management Consumer education and information REWE Group 9
Sustainability at the REWE Group The sustainability organisation Leading members of SBUs and group divisions Strategy circle for sustainability 4 task forces for sustainability topics Project coordination Selected employees of SBUs and relevant group divisions CSR department Green Products Energy, Climate and the Environment Employees Social Involvement REWE Group 10
Sustainability at the REWE Group Involvement of employees Factor 1. Clear vision / strategy of the business 2. Need for action is seen / understood 3. Determination of top management 4. Commitment to achieving the common goal Implementation Sustainability as an element of our mission statement Roadshow to point out the importance of sustainability Executive Board/management itself is actively involved in sustainability projects (by example) Employees work voluntarily in sustainability projects / take on sponsorships for social projects 5. Chance to participate actively 6. Creating incentives 7. Clear performance standards / benchmarks 8. Continuous feedback on successes Ideas competition for employees on sustainability Employees are awarded for the best implementation of sustainability in their division Sustainability is part of the assessment of performance in the company Reports on success stories with an exemplary character in the company; they are also publicly acknowledged by the Board REWE Group 11
Sustainability at the REWE Group Internal communication: REWE Group sustainability day REWE Group 12
Sustainability in the REWE Group Internal communication: Roadshow Impressions REWE Group 13
Sustainability at the REWE Group External communication: Sustainability report 2008 Sustainability report Annual report REWE Group 14
Sustainability at the REWE Group External communication: Corporate carbon footprint brochure REWE Group 15
Project example Green Products Best Alliance Contract farming for more quality, safety and sustainability within the production of food in the value chain. The contract farming of peppers, strawberries and grapes goes along with strict rules and regulations that are elaborated with suppliers and external partners. Regular checks by experts on the spot and in Germany ensure the quality of products. Best Alliance-products always handle one of the following sustainability criteria: climate protection, ressource protection, social standards and biodiversity. REWE Group 16
Project example Energy, Climate and the Environment Green Energy Pioneer In January 2008 REWE Group converted its complete electricity to the exclusive use of green energy. Now, about 6.000 stores, travel agencies and warehouses use green electricity. The green energy-mix is generated by hydropower, wind and biomass. The green energy-quality is certified by TÜV Süd. REWE Group is the largest user of green energy in Germany. REWE Group 17
Project example Employees Project naprima The project focuses on the prevention of muscle and sceleton diseases. REWE Group cooperates with several partners to realize the programm. In the first step situations that cause muscle and sceleton strain were idetified. Information tools on how to carry and lift right or on how to sit in the proper position at the cashpoint are already provided. REWE Group 18
Project example Social Involvement Tafel e.v. The REWE Group is one of the biggest food sponsors for the nationwide 830 Tafeln (charitable food donations). The regional REWE-, Penny-, and toom markets as well as the stocks allocate food for free to the network. With this engagement more than 800.000 poor people obtain more than 150 tons of food every day for free. REWE Group 19
Sustainability in the textile category at the REWE Group Stakeholder Workshop Cotton made in Afrika Burkina Faso 19. November 2009
Sustainability in the textile world The three pillars of textile sustainability at REWE Group Aid by Trade Social Project Reduction of pesticides Training Organic Cotton Water Manaement Waste Management Fair Trade Organic Cotton CO2 neutral Social Project REWE Group 21
Fair Alliance Organic Cotton + Fair Trade + Social Project + CO² neutral REWE Group 22
Fair Alliance Control of the supply chain biore yarns from India and Tanzania production only in SA8000 certified factorys compliance with the Fair Alliance & biore product and quality requirements + = REWE Group 23
Fair Alliance 5 key elements of success Organic controlled organic farming and crop rotation Fairness Defined conditions of work for farmer families and textile workers Ecology Out of respect for nature, no use of toxic chemicals Transparency Full product traceability and control over all stages of the process Innovation Long-term thinking and environmentally conscious use of resources, CO2 neutral REWE Group 24
Fair Alliance Organic Cotton REWE Group 25
Fair Alliance Organic Cotton Economic benefits Families are enabled to escape the dept spiral as they do not require loans to purchase expensive chemicals Health benefits Farmers are not exposed to pesticide contamination, but enjoy additional healthy foodstuff from crop rotation Agricultural benefits Organic farming secures long-term soil fertility, which is the essence of small farmers livehood REWE Group 26
Fair Alliance Fairness REWE Group 27
Fair Alliance Fairness The audited biore and Fair Alliance criteria for farming are Training and extension services, an organic premium, a purchase guarantee, framers representation and codetermation, workers rights and absence of discrimination, capital build-up and reinforcement of organisation The audited biore and Fair Alliance criteria for production are Absence of child and forced labor, healthy and safty at work, freedom of trade unions, absence of discrimination and disciplinary punishment, regular hours of work, remuneration, SA 8000 certification for the factorys REWE Group 28
Fair Alliance Social Project REWE Group 29
Fair Alliance Social Project REWE Group 30
Fair Alliance Social Project REWE Group 31
Fair Alliance CO² compensation project REWE Group 32
Fair Alliance CO² compensation project The CO2 emissions will be offset in the biore farming territories trough the building of biogas plants and efficient stoves. Most farmer families in India and Tanzania use traditional wood-burning stoves for cooking, consuming considerable amounts of firewood. These open stoves emit harmful soot particles that farmer families inhale. The building of biogas plants and effecient stoves will improve the farmers living conditions and help preserve the enviroment, in particular forest ecosystems REWE Group 33
Fair Alliance CO² compensation project Carbon footprint REWE Group 34
Fair Alliance CO² compensation project REWE Group 35
BIOnature / NatureCotton Organic Cotton Certified Organic Cotton Water management / waste management in the production line Key categories are kids, baby, underwear, nightwear, home textile 2010 will be 7 % of the total cotton textile business GOTS certified organic cotton REWE Group 36
Cotton made in Afrika Organic Cotton 2010 will be 15 % of the total cotton textile business CmiA REWE Group 37
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