Mr Juhani Ilmola: S Group Responsibility Programme

S Group Responsibility ProgramS Group Responsibility Program

A CO-OPEARTIVE DECADE IN ACTION3.11.2013 1

Juhani IlmolaJuhani IlmolaDirector of AdvocacyDirector of AdvocacySOK Corporation, FinlandSOK Corporation, Finland

Finland in figuresFinland in figuresPopulation 5,4 millionDensity 18 people per sq. kmLife expectancy: men 77.2 and

women 83.5 yearsAverage household size: 2.1 personsLanguages: 90 % speak Finnish and

5,4 % SwedishReligion: 78 % Lutheran and 1 %

OrthodoxArea 390,920 sq. km or 150,900 sq.

Miles of which 9 % is fresh water188,000 lakesForests cover 68 % of country6 % of land is under cultivationGPD 2012: EUR 193 billionGPD per capita EUR 35,900

3.11.2013 A CO-OPEARTIVE DECADE IN ACTION 2

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1. S Group Today2. Stakeholders Expectations3. S Group Responsibility Program

3.11.2013 A CO-OPEARTIVE DECADE IN ACTION

ContentContent

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1. 1. S Group TodayS Group Today


S Group in brief, 2012S 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.


Business structureBusiness structure

Cars andaccessories

Hotels and restaurants

Petrol stationsGrocery stores

Agribusiness

Department and speciality stores

S- bankS- bank



The S Group at a glance, highlights The S Group at a glance, highlights 20122012(2011 figures)(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 %

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2. 2. Stakeholders expectationsStakeholders expectations


Stakeholder engagement means Stakeholder engagement means dialoguedialogue

3.11.2013A CO-OPEARTIVE DECADE IN ACTION

Co-op membersPersonnelSuppliersAuthoritiesNGOsPoliticiansBusiness organisationsMedia

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Stakeholders expectationsStakeholders expectations


Wellbeing through cooperative activities

Maintenance of cooperative enterprise ideology

Benefits for membersEthical values

The personnel’s wellbeing and motivation

Employment, occupation safetyEquality, fairnessSupervisor-employee relations

Responsible products and servicesProduct information, originLocal food and procurementProduction chainOffering responsibly composed product

range, communicationResource efficiency

Waste management, re-use, recyclingEnergy efficiency, renewable energyMaterial efficiency

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3. S Group responsibility program3. S Group responsibility program


We want to be a forerunner in We want to be a forerunner in responsibilityresponsibility



S-group responsibility programS-group responsibility program

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Products origin and traceabilityProducts origin and traceability

Developing supply chain transparency and traceability


Identifying risks Transparent product information for consumers

Focus on improving the traceability of Focus on improving the traceability of productsproducts

Disclosing the country of manufactureDisclosing 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 textilesThe 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.


BEPI

Monitoring supply chain social and Monitoring supply chain social and environmental impactsenvironmental 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

BSCI Code of ConductBSCI Code of Conduct


Results of BSCI audits Results of BSCI audits


Sustainable raw materialsSustainable raw materials

Developing raw materials sustainability


We define critical raw materials, sourcing guidelines and use of certification systems

Criteria for raw materialsCriteria for raw materials

Responsible fish and seafood policy Responsible fish and seafood policy

FSC-certified woodFSC-certified woodOnly FSC-certified tropical wood accepted To ensure that the raw material is produced in a sustainable manner

RSPO-certified palm oilRSPO-certified palm oilSpecial 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.


Sustainable Raw MaterialsSustainable Raw Materials


78 % of Palm Oil RSPO certified

> 2 200 Organic products

236 Fair Trade products

63 MSC products

69 FSC products

881 Swan Eco labelledproducts

35 Petrol Stationsselling E85

Resource EfficiencyResource Efficiency


Energy efficient lighting

Zero waste to landfill Energy use target for outlets

Target: Improving energy efficiency by Target: Improving energy efficiency by 2% per annum 2009–20152% per annum 2009–2015

Prisma hypermarket and Kodin Terra hardware chains

2010 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%.

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Energy and Material Efficiency Figures, Energy and Material Efficiency Figures, 20122012

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:Renewable energy target:In 2016 we aim to generate 50 % of our electricity from

our own wind turbines


Thank you for your attentionThank you for your attention

More information: www.sok.coopMore information: www.sok.coop


Mr Juhani Ilmola: S Group Responsibility Programme

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