S Group Responsibility Program

Juhani Ilmola
Director of Advocacy
SOK Corporation, Finland

3.11.2013

A CO-OPEARTIVE DEC...
Finland in figures
Population 5,4 million
Density 18 people per sq. km
Life expectancy: men 77.2 and
women 83.5 years
...
Content
1. S Group Today
2. Stakeholders Expectations
3. S Group Responsibility Program

3.11.2013

A CO-OPEARTIVE DECADE ...
1. S Group Today

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

4
S Group in brief, 2012
S Group is a Finnish consumer
cooperative retail company
group with diverse range of
retail busine...
Business structure

S- bank

Grocery stores

Petrol stations

Department
and speciality stores

Hotels and restaurants

Ca...
The S Group at a glance, highlights 2012
(2011 figures)

Group sales: EUR 12,037 million (11,461)
Group profit before ex...
2. Stakeholders expectations

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

8
Stakeholder engagement means dialogue

Co-op members
Personnel
Suppliers
Authorities
NGOs
Politicians
Business orga...
Stakeholders expectations
Wellbeing through cooperative activities
Maintenance of cooperative enterprise ideology
Benef...
3. S Group responsibility program

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

11
We want to be a forerunner in
responsibility

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

12
S-group responsibility program

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

13
Products origin and traceability
Developing supply chain transparency and traceability

 Identifying risks
 Transparent ...
Focus on improving the traceability of
products
Disclosing the country of manufacture
Disclosing the origin or country of...
Monitoring supply chain social and
environmental impacts
Developing production responsibility

Target:
Social responsibili...
BSCI Code of Conduct

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

17
Results of BSCI audits

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

18
Sustainable raw materials
Developing raw materials sustainability

We define critical raw materials, sourcing guidelines a...
Criteria for raw materials
Responsible fish and seafood policy
FSC-certified wood
Only FSC-certified tropical wood accept...
Sustainable Raw Materials
> 2 200 Organic
products

69 FSC products

236 Fair Trade
products

881 Swan Eco labelled
produc...
Resource Efficiency

Energy efficient lighting

Zero waste to landfill

3.11.2013

A CO-OPEARTIVE DECADE IN ACTION

Energy...
Target: Improving energy efficiency by 2%
per annum 2009–2015
Prisma hypermarket 2010
and Kodin Terra
hardware chains

201...
Energy and Material Efficiency Figures,
2012






Energy efficiency improved by 3.9 %
18 new wind power plants were ...
Thank you for your attention

More information: www.sok.coop
3.11.2013

A CO-OPEARTIVE DECADE IN ACTION
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Mr Juhani Ilmola: S Group Responsibility Programme

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Mr Juhani Ilmola, SOK Finland at the International Co-operative Alliance Global Conference in Cape Town, November 2013.

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  • Ohessa eräs tapa kuvata S-ryhmäkokonaisuus lyhyesti lukujen avulla. Kun lasketaan yhteen tulos ennen satunnaisia eriä (398 milj. euroa v. 2005) sekä asiakasomistajille maksettu Bonus (194 milj. euroa v. 2004) saadaan paras kuva todellisesta kannattavuudesta.
  • Mr Juhani Ilmola: S Group Responsibility Programme

    1. 1. S Group Responsibility Program Juhani Ilmola Director of Advocacy SOK Corporation, Finland 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 1
    2. 2. Finland in figures Population 5,4 million Density 18 people per sq. km Life expectancy: men 77.2 and women 83.5 years Average household size: 2.1 persons Languages: 90 % speak Finnish and 5,4 % Swedish Religion: 78 % Lutheran and 1 % Orthodox Area 390,920 sq. km or 150,900 sq. Miles of which 9 % is fresh water 188,000 lakes Forests cover 68 % of country 6 % of land is under cultivation GPD 2012: EUR 193 billion GPD per capita EUR 35,900 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 2
    3. 3. Content 1. S Group Today 2. Stakeholders Expectations 3. S Group Responsibility Program 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 3
    4. 4. 1. S Group Today 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 4
    5. 5. S Group in brief, 2012 S Group is a Finnish consumer cooperative retail company group with diverse range of retail business. S Group is cooperatively owned and run by its over two million members (households). S Group consists of 20 regional cooperatives and the SOK Corporation, which is owned by the cooperatives. 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 5
    6. 6. Business structure S- bank Grocery stores Petrol stations Department and speciality stores Hotels and restaurants Cars and accessories Agribusiness 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 6
    7. 7. The S Group at a glance, highlights 2012 (2011 figures) Group sales: EUR 12,037 million (11,461) Group profit before extraordinary items: EUR 212 million (264) Bonus paid: EUR 379 million (360) Investments: EUR 573 million (546) Outlets: 1,697 [in Finland 1,663] Employees: 43,417 people (41,568) S Group is the biggest food retailer in Finland, market share is more than 45 % 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 7
    8. 8. 2. Stakeholders expectations 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 8
    9. 9. Stakeholder engagement means dialogue Co-op members Personnel Suppliers Authorities NGOs Politicians Business organisations Media 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 9
    10. 10. Stakeholders expectations Wellbeing through cooperative activities Maintenance of cooperative enterprise ideology Benefits for members Ethical values The personnel’s wellbeing and motivation Employment, occupation safety Equality, fairness Supervisor-employee relations Responsible products and services Product information, origin Local food and procurement Production chain Offering responsibly composed product range, communication Resource efficiency Waste management, re-use, recycling Energy efficiency, renewable energy Material efficiency 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 10
    11. 11. 3. S Group responsibility program 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 11
    12. 12. We want to be a forerunner in responsibility 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 12
    13. 13. S-group responsibility program 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 13
    14. 14. Products origin and traceability Developing supply chain transparency and traceability  Identifying risks  Transparent product information for consumers 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 14
    15. 15. Focus on improving the traceability of products Disclosing the country of manufacture Disclosing the origin or country of manufacture of consumer goods is not required by law. S Group has launched a project to indicate the country of manufacture on private label clothes and home textiles The country of manufacture information is already available on some of our private label products. The information is included on the products as their packaging is changed. If the product is manufactured in several countries, the labelled manufacturing country will be the country where most of the product is produced. 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 15
    16. 16. Monitoring supply chain social and environmental impacts Developing production responsibility Target: Social responsibility: > 90 % of the purchasing volume from risk countries audited by BSCI or equivalent auditing process Environmental responsibility: Business Environment Performance Initiative (BEPI) development and pilot test in Vietnam 2013 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 16 BEPI
    17. 17. BSCI Code of Conduct 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 17
    18. 18. Results of BSCI audits 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 18
    19. 19. Sustainable raw materials Developing raw materials sustainability We define critical raw materials, sourcing guidelines and use of certification systems 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 19
    20. 20. Criteria for raw materials Responsible fish and seafood policy FSC-certified wood Only FSC-certified tropical wood accepted To ensure that the raw material is produced in a sustainable manner RSPO-certified palm oil Special effort has been put into replacing palm oil with other plant-based oils when ever possible, without compromising product quality. If palm oil cannot be replaced with other alternatives, RSPO-certified palm oil is preferred. S Group’s private label cosmetics or candles no longer contain palm oil. 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 20
    21. 21. Sustainable Raw Materials > 2 200 Organic products 69 FSC products 236 Fair Trade products 881 Swan Eco labelled products 63 MSC products 35 Petrol Stations selling E85 78 % of Palm Oil RSPO certified 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 21
    22. 22. Resource Efficiency Energy efficient lighting Zero waste to landfill 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION Energy use target for outlets 22
    23. 23. Target: Improving energy efficiency by 2% per annum 2009–2015 Prisma hypermarket 2010 and Kodin Terra hardware chains 2011 2012 Electricity 290 kWh/brm2 204 kWh/brm2 189 kWh/brm2 Heat 86 kWh/brm2 72 kWh/brm2 57 kWh/brm2 Total 376 kWh/brm2 276 kWh/brm2 246 kWh/brm2 S Group’s relative energy efficiency improved by 3.9% between 2011 and 2012. Compared to the 2010 level, energy efficiency improved by 18.7%. 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 23
    24. 24. Energy and Material Efficiency Figures, 2012      Energy efficiency improved by 3.9 % 18 new wind power plants were built in 2012 Landfill waste decreased by 7 % Recycling, reuse and recovery rate was 85 % Water consumption decreased by 13.6 % Renewable energy target: In 2016 we aim to generate 50 % of our electricity from our own wind turbines 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 24
    25. 25. Thank you for your attention More information: www.sok.coop 3.11.2013 A CO-OPEARTIVE DECADE IN ACTION

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