Sustainability report 2010

Sustainability report 2010

ABOUT THIS REPORT
This first sustainability report produced by KiK Textilien und
Non-Food GmbH attests to the commitment the company
has made to sustainability during 2009 and 2010. Where
available, data from 2007 to 2009 has also been included in
quantitative statements.
This report is limited to the activities of KiK Textilien und
Non-Food GmbH Deutschland, KiK Logistik I GmbH, based
in Bönen and European subsidiaries outside Germany. In
accordance with the Global Reporting Initiative (GRI) indicator
protocol, companies that fall within the scope of the
report are referred to as ‘significant locations of operation’.
The report boundary is mainly relevant to the action areas of
‘Employees’ and ‘Locations’.
Given the indirect yet significant impact of KiK’s operations
on suppliers and importers, the nature of these commercial
relationships is also explained and documented. The report
boundary therefore includes extended supply chains. These
are principally relevant in terms of the ‘Supplier’ and ‘Product’
strategic action areas.
The origin and definition of the four key action areas are
explained in full in the ‘Strategy and management’ section,
taking into account the three dimensions of sustainability.
One section of the report is devoted to each area, detailing
what we have done operationally to promote sustainability.
Throughout, we directly address critics of our company.
Each of the four main sections of this report concludes with
an overview of the actions we intend to take in the short and
medium-term. In addition, the report details the overarching
strategic goals we are pursuing in our efforts to ensure sustainability
and in doing so sketches out the way forward.
The 2010 KiK Textilien und Non-Food GmbH sustainability
report has been put together by the company’s Corporate
Social Responsibility (CSR) department, taking into account
information provided by all other parts of the company. To
facilitate comparison, we have adhered to the current Global
Reporting Initiative (GRI) guidelines in gathering the data
and establishing the content and structure of the report. The
editorial content of the report and the preparation of the data
has been the subject of close consultation between our CSR
and Communications departments.
ABOUT THIS REPORT
All qualitative and quantitative statements contained in
this report have been approved, following careful review and
checking of the data, by the relevant departments within KiK.
In addition, two independent, expert consultants have reviewed
and evaluated the content of the report. The results of
this review can be found on page 90 of this report. Having
consulted the G3 grid of the Global Reporting Initiative,
these external consultants have given the content of this
report an A+ rating.
In its present form, the report is intended for interested
consumers, NGOs active in the fields of environment and
social issues, decision makers from politics, legislation and
suppliers, as well as other statutory bodies and associations.
It is published in German and English. To communicate directly
with our customers on the issues addressed in this
report, we will shortly be publishing an abridged version. To
make the report easier to read, the masculine form is generally
used when referring to people. In all such instances, we
are referring to both men and women.
Our plan is to issue reports every two years. The next sustainability
report will be published in 2013, covering the years
2011 and 2012. The deadline for information included in the
current report was 30 September 2011.
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KIK SUSTAINABILITY REPORT 2010
About this report
Publisher:
KiK Textilien und Non-Food GmbH
Dr. Michael Arretz
Managing Director CSR, Communications, Quality
Siemensstrasse 21
59199 Bönen
Phone: (+49 0) 2383 95 49 01
michael.arretz@kik-textilien.com
Contact:
Petra Katzenberger
Head of CSR
Siemensstrasse 21
59199 Bönen
Phone: (+49 0) 2383. 95 41 43
petra.katzenberger@kik-textilien.com
This report has been printed by Drucktechnik Altona using solvent-free printing colours on Enviro Top Recycling, Blue Angel-accredited recycled paper.
All printing was CO 2 neutral.
Photography: Jochen Rolfes
Design: Elbe 17 Ulrich Mevs Kommunikationsdesign
Legal disclaimer:
This sustainability report contains statements about future developments that are based on assumptions. We can issue no guarantees as to whether these
assumptions will prove to be correct. KiK Textilien und Non-Food GmbH assumes no liability and issues no guarantee in respect of any variations that may occur
or for potential editorial errors. In the event of a discrepancy between the German and English versions of this report, the German version shall prevail.
4

About this report
Page 3
Foreword by Stefan Heinig
Page 6
Foreword by Dr. Michael Arretz
Page 7
CONTENTS
Section 1 – Company profile
KiK – an idea that works
Page 8
Section 2 – Strategy
and management
What we understand by
sustainability
Page 12
Section 3 – Open dialogue
We’re being open and
reporting on our activities
Page 18
Section 4 – Suppliers
Our partners
and sustainability
Page 22
Section 5 – Products
Efficiently packaged
and shipped
Page 34
Section 6 – Sites
From our European
headquarters to point of sale
Page 44
Section 7 – Employees
Motivated and well trained
Page 52
Facts and figures
Page 60
GRI Content Index
Page 82
CONTENTS
Glossary, abbreviations
and external sources
Page 88
Independent auditors’
report
Page 90
5

FOREWORD BY STEFAN HEINIG
DEAR READER,
I am delighted and proud to present our sustainability report
for the year 2010.
For the first time in the history of our young company, we are
giving you a comprehensive insight into how we approach
and deal with the issues of sustainability in our business. We
are doing this to show that the world of discount clothing
– despite what many of its critics might say – is compatible
with responsible corporate practice in respect of people
and the environment. We also want to show that our commitment
to sustainability is more than just an exercise in damage
limitation, and that we are working constructively and
proactively to raise social standards in a global context, be
as economical in possible in our use of raw materials and resources
and to do everything we can to reduce greenhouse
gas emissions.
When we set up KiK in 1994, we were not only founding a
new company – we were inventing a new retail format. Our
aim was to make everything as simple and compact as possible
– from procurement to sales. Ensuring that all our business
processes are in line with this strategy has proven to be
the key to our success.
We take the same approach to sustainability. Given the challenges
presented by the global economy – dwindling resources,
rising energy prices, the growing gap between the developed
and emerging world – paying proper attention to the
issue of sustainability has become socially, ecologically and
economically essential. We introduced our first initiatives in
2006 and, by setting up a department for Corporate Social
Responsibility in the following year, under the leadership of
our head of procurement, established the issue as key to our
interests as a company. In 2010, we created a standalone
management arm for the areas of CSR, Communications
and Quality, becoming the first to do so in our industry. Embedding
sustainability as an issue among our company’s top
managers ensures that our sustainability strategy is implemented
with the force and support of all management-level
decision makers. We pursue a range of short-term goals – to
achieve these we have developed 111 initiatives as part of
6
our sustainability programmes – plus a mid-term plan with 13
overarching aims. In addition, we have adopted a long-term
vision that, among other things, involves developing ‘premium
suppliers’ in the markets where we source our goods.
We work with these suppliers on key points such as reducing
pollutants, exploring the potential for energy savings in manufacture,
and developing wage settlements that are above
the minimum legal wage.
We do everything in our power to develop and implement initiatives
at all three levels in as straightforward and solutiondriven
way as possible. We won’t deny that this is an enormous
challenge for us. We also won’t deny that we’re close
to the limits of what we can do. This spirit of openness is
combined with a desire to objectify the debate instigated by
critics of the textile chain, including retail and the influence
they may have, often unjustifiably.
In our 2010 sustainability report, employees, colleagues and
members of the management board speak out on behalf of
all members of our staff: young, highly motivated people,
seasoned and experienced professionals – all of whom work
with us in an environment in which team spirit and fair play
are key, and each and every one of them demonstrates their
dedication and commitment to the company. The success
of KiK is down to the efforts of all these people, and I would
like to take this opportunity to express my sincere gratitude
for that!
Stefan Heinig
CEO and Chairman of the Board

DEAR READER,
Can discount retail ever be sustainable? Can selling lowpriced
consumer goods be compatible with ecological, economic
and social responsibilities? For me, this question isn’t
easy to answer. On the one hand, the principles of efficiency
that are key to the discount business, the art of cutting out
unnecessary cost, allow for potential savings at all levels. We
use as little packaging material as possible, consume energy
as sparingly as we can, use transportation by sea vessels
and go without extravagant fixtures and fittings in our stores
– meaning that we use fewer resources, save energy and, at
the same time, emit fewer greenhouse gases.
That’s a good starting point for creating sustainable business
processes. But doing business sustainably means a lot
more than that: we also consider the people who, directly
or indirectly, work on our behalf. We constantly refine our
ranges to ensure that we are offering our customers even
better products.
To achieve, maintain and improve results under such circumstances,
a discount business needs to have clear goals, efficient
processes, well-defined responsibilities and meaningful
performance indicators in order to measure its success.
The way we approach these challenges at KiK is detailed
here, in our first sustainability report. At the centre of the report
is an extensive stock-take where we provide information
about all our operational goals and the measures we have
put in place to achieve them. We tell you about what we have
achieved so far, and what we have yet to achieve. We sketch
out plans and ideas. And we do all this in an open, honest
and transparent manner.
Almost 20 years after the world summit took place, in Rio in
1992, the realisation that environmental problems and social
issues cannot be viewed separately from each other has lost
none of its relevance. In the face of disappearing animal species
worldwide, climate change, the inequitable distribution
of wealth and the growing scarcity of resources, consideration
of this paradigm has become a pressing task with farreaching
consequences. That’s why it is so important for us
to constantly improve, in everything we do. We will therefore
FOREWORD BY MICHAEL ARRETZ
be pleased to receive any suggestions, ideas or tips that you
may feel appropriate. Write to us at csr@kik-textilien.de.
We look forward to hearing from you.
Dr. Michael Arretz
Managing Director CSR, Communications, Quality
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KIK SUSTAINABILITY REPORT 2010
KiK – an idea that works
The creation of Germany’s first discount clothing retailer, 17 years ago, under the
motto ‘KiK – Kunde ist König’ (‘KiK – where the customer is king’) saw the
first strategic application of the principles of discount retail to the textiles and clothing
industry. And the beginning of the success story that is KiK.
KiK Textilien und Non-Food GmbH was founded in 1994
by the Tengelmann group and Stefan Heinig as a retail
chain selling low-priced clothing. Tengelmann holds a
majority stake in the company.
In 1998, KiK expanded into Austria, in 2007 to the Czech
Republic and Slovenia and in 2008 to Hungary and Slovakia.
Its first Croatian stores opened in September 2011.
Expansion into Denmark started in the year 2000 but ended
two years later, the business model having failed to
establish itself in the Danish market.
The foreign companies in these countries, and KiK
Logistik GmbH, based in Bönen, are subsidiaries of KiK
8
Textilien und Non-Food GmbH. There are no other operating
companies or joint ventures.
Until 2010, KiK was headed by a four-man management
board under the leadership of Stefan Heinig. In 2010, a
fifth management division was added to deal with the
CSR, Communications and Quality departments. Based
at the company’s European headquarters, the management
board oversees all activities of KiK Textilien und
Non-Food GmbH, including all its subsidiaries.
Management meets once a month. All key decisions
reached by simple majority are communicated to staff by
the individual managing directors, via the divisional and

departmental heads. Staff suggestions and ideas are
also communicated to the board via the departmental
and divisional heads.
The sale of textiles makes up approximately 75% of
KiK‘s overall turnover. Alongside many items that form
part of the basic range, KiK also sells fashionable clothing
for men, women and children. Non-food products – such
as gift items, toys, accessories and household textiles –
account for around 25% of sales. The range includes a
total of 285 product categories. Categories are defined
as all products with a common characteristic; it is impossible
to put a figure on the number of individual products.
In 2010, sales amounted to 1.66 billion euros, equivalent
to an increase of 2.1% (or a currency-adjusted 1.9%)
versus 2009. This lower growth compared to the previous
year can principally be put down to the financial and economic
crisis affecting central European countries (Slovenia,
the Czech Republic and Hungary) and negative
conditions in the source market from the second half of
the year. Poor harvests and a sharp increase in the price
of raw materials led to bottlenecks in the availability of
goods and, as a result, a shortfall in sales. Nevertheless,
KiK was able to achieve solid earnings before taxes for
the 2010 financial year. It should be mentioned that the
introduction of a minimum wage of 7.5 euros per hour
Heinz Speet
HR
Mechthild Gottkehaskamp
Procurement
The management board of KiK Textilien und Non-Food GmbH
Stefan Heinig
CEO/Chairman of the Board
Darius Kauthe
Finance/Administration
Subsidiaries of KiK Textilien und Non-Food GmbH
KiK Logistik l GmbH,
Germany
KiK Textilien und Non-Food
Ges m.b.H.
Austria
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Slovenia
KiK Textil und Non-Food
spol. s r.o.
Czech Republic
1 company pRoFILE
KiK Textil und Non-Food
spol. s r.o.
Slovakia
KiK Textil és Non-Food Kft.
Hungary
KiK Textil Sp. z o.o.
Poland
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Croatia
KiK Textilien und Non-Food GmbH with its subsidiaries
in Germany, as well as a minimum full-time basic wage
of 1,500 euros per month, also affected earnings before
taxes.
Substantial sales growth was achieved as a result of
store expansion in Hungary (+1.7%), Slovenia (+12.8%),
the Czech Republic (+23.2%) and Slovakia (+101.8% – all
figures currency adjusted).
Dr. Michael Arretz
CSR/Communications/
Quality
Steffen Rosenbauer
Sales/Marketing/
Expansion/Foreign Sales
9

KIK SUSTAINABILITY REPORT 2010
10
KiK is a conventional retail company that acts as an
intermediary between its retail partners and the end con-
sumer. The majority of the goods we sell – around 70%
– are purchased and imported by us from the countries
in which they are manufactured, principally China and
Bangladesh. Alongside local suppliers, our retail partners
also include importers that deliver goods free to our
doors.
KiK ranks as one of the ten largest operators in German
retail and is one of the country’s biggest sellers of
discount clothing.
THE DISCOUNT BUSINESS MODEL
Germany Austria Czech Republic Slovakia Slovenia Hungary Total
Sales (in million euros) 1,346.70 191.4 54.2 22.2 31.8 17.9 1,664.20
Stores 2517 250 120 42 41 55 3025
Employees 16,980 1393 777 273 223 363 20,009
3,025 stores and 20,009 employees, generating sales of 1.66 billion euros
When the company was founded, the idea was to transfer
the principle of discounting already applied in food
retail to the textile industry, to be able to offer quality
clothing at similarly low prices. KiK was conceived as a
‘local, basic clothing supplier’, designed for anyone who
needed or wanted to spend their money carefully, close
to where they lived. With over 2,500 stores in Germany,
we are well on our way to achieving that goal.
We offer our clothing and non-food ranges at everyday
low prices: to this day, customers can come out of a KiK
store with a new outfit for less than 30 euros. Thanks to
consistent application of the discount business model,
this pricing policy allows for:
A range of which around 70% is basic items in standard
sizes and colours, available all year round. These items
are manufactured in large quantities and ordered up to
nine months before they are required, giving suppliers
the opportunity to make better use of free capacity in
their factories.
The fact that most of our goods are also imported
directly, without the intervention of intermediaries, is a
further part of our strategy to help keep down costs.
An economical packaging policy that focuses on using
as few resources as possible, in addition to a transport
strategy based almost exclusively on importing goods
from Asia by sea, also generating cost benefits. At the
same time, the consistent use of shipping, as opposed to
transport by aircrafts, helps us significantly reduce our
CO e emissions.
2
Last but not least, in all our stores, the focus is on presentation
of the products. Only in exceptional cases –
such as with ‘American’ t-shirts and vests – do we use
product packaging. Most of the items we sell are presented
hanging on stands. The stores themselves are
designed according to a simple, practical and functional
concept that we are currently in the process of discreetly
upgrading.
EXPANSION AND STORE DEVELOPMENT
Many factors must come together to be able to offer
good quality at relatively low prices in the clothing retail
business. KiK’s success can be put down to the expert
way in which it has transferred the rules of discount retail
to clothing. The success of our company is proven by its
dynamic growth since it was founded 17 years ago. We

Number of stores
3.500
3.000
2.500
2.000
1.500
1.000
500
93/94
94/95
95/96
96/97
Continuous store expansion, a hallmark of KiK
opened our first store in Düsseldorf-Gerresheim on 10
March 1994 with over 100 further openings during the
first year of business. Since then the company has continued
to grow, with a new KiK store opening almost every
day somewhere in Europe.
Whilst closing 105 stores, we succeeded in expanding
our network by 130 stores in six European countries during
2010. By 2015, we plan to expand the network to
include over 4,000 outlets.
A PROVIDER OF WORK AND OPPORTUNITIES
Our European headquarters are located in Bönen,
in North Rhine-Westphalia. It consists of our administration
departments and central warehouse, from which
products are delivered to all our stores. 1,014 of a total
16,980 employees in Germany are employed at our
headquarters, 602 of them in administration and 412 in
warehouse logistics. By far the majority of our staff, however,
are employed in our stores: 15,966 people at yearend
2010.
Taking into account those employees in the six European
countries where we are represented, over 20,000
people currently have a recession-proof job with us.
In addition, KiK is a committed provider of training for
19 different occupations. Since 1994, 2,873 young men
and women have successfully completed a 2–3 year
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
1 company pRoFILE
training programme with us. Over 49% of these trainees
remain active in the company to this day, around 900
of them in management positions. Fundamentally, as a
trainer and employer, we see our task as offering opportunities
to those already working with us and those who
apply to work for us. By way of certified training programmes,
we empower our employees to develop their career
at KiK and progress to more senior positions. ■
For more information about our company, see the ‘Facts and
figures’ appendix in section 1, figures 1, 2, 4, 43, 44 and 73,
plus tables 17 and 18.
07/08
08/09
2009
2010
11

KIK SUSTAINABILITY REPORT 2010
“
As proud as we are of our success, our sights
remain firmly set on the future. KiK wouldn’t be KiK
if we didn’t recognise our potential and actively
seek to make changes. All of us work together to
deliver quality, at every level. We see it as our task
to continuously develop our business processes
and procedures to make them more sustainable.”
Stefan Heinig, CEO and Chairman of the Board
12

WHAT WE UNDERSTAND BY SUSTAINABILITY
As a retailer that imports its products directly, we initiate,
organise and oversee the flow of goods between Asian
production sites and our stores in Europe. We commission
the manufacture and production of goods, organise
their transport and operate over 3,000 stores in six European
countries, in addition to our European headquarters
and central warehouse. We are responsible for more
than 20,000 employees in Europe, people who we employ
directly, as well as those workers involved in producing
goods ordered by us in their respective countries. Everything
we do as a business has an impact on the people
and environment around us. For example, we consume
raw materials, water and energy. The manufacturing
and transport of goods, and operational processes in
Consumer goods industry
employees
Procurement
Production
sites
> 1,000
Goods received Outgoing goods
2 STRATEGY AND MANAGEMENT
management, warehouses and stores, cause significant
greenhouse gas emissions. The manufacturing process
can lead to the production of pollutants that affect ground
water and, in certain circumstances, may be harmful to
the health of employees. As well as good working conditions
and a decent wage, health and safety in the workplace
need to be ensured for all staff whose efforts are so
key to our company’s success.
At the end of the day, everything we do as a business
must help ensure our long-term success. It is therefore
logical and economically prudent for us to design processes
that make the best possible use of resources, to
define social and ecological standards, and adhere to
them, and also to assume social responsibility above and
beyond our core business activities. That’s what we understand
by sustainability.
Influence
Stores
> 3,000
Sales
The illustration shows the focus of our direct-import business and the degree of potential influence on these areas.
The degree of direct influence is highest in sales
Employees
20,000
13

KIK SUSTAINABILITY REPORT 2010
THE RELEVANCE OF SUSTAINABILITY
14
Points of economic, environmental or social relevance
can be found across the value chain.
The key aspects identified by us have been assigned to
the three traditional dimensions of sustainability (see the
above illustration).
In the second step of forming our strategy, we distinguish
between the areas we can influence directly, and those we
can only influence indirectly. Taking into account the most
important sustainability criteria, as defined by the GRI, we
have developed the classification system shown below.
DIRECT AREAS OF INFLUENCE
INDIRECT AREAS OF INFLUENCE
Economy
Turnover
Income/efficiency
Economy
Economic performance and market presence in
Germany and other European locations
Ecology
Energy and water consumption, use of materials,
influence on biodiversity, causing emissions, waste
water and other waste through administrative,
warehouse, retail and transport operations
Working practices and employment
Ensuring fair and just working relationships at all German
and European sites, taking into account equality of
opportunity and appropriate remuneration, the range of
training and career development opportunities offered
Economy
Indirect effects on socio-economic development in the
countries where our products are manufactured
Ecology
Energy and water consumption, the use of materials,
influence on biodiversity, emissions, waste water
and other waste from the manufacture of textiles and
non-food items commissioned by KiK, as well as
emissions caused by transport companies working
for importers
Ecology
Climate - energy consumption
(electricity, heat, fuel)
Use of resources
(water and wood)
Pollutant emissions
(toxicology)
Biodiversity
The three dimensions of sustainability, with their most important issues
The three dimensions of sustainability, classed as direct or indirect areas of influences
Social
Wages and salaries
Health and safety
Employment and human
rights
In the third step of the process, we assign these performance
indicators to four core areas where all processes
within our company can reasonably be integrated. For
each of these areas, we then analyse the key task. Economic
indicators directly or indirectly influencing these
areas are not shown. Similarly, legislation on occupational
safety and data protection, anti-competitive behaviour
and corruption, product liability and labelling rules and
rules relating to environmental law are not listed. In each
case, adherence to all rules and regulations is checked by
the department charged with doing so. Due to the complexity
of manufacturing pathways and testing processes,
Society
Maintaining healthy relationships in the regional
surroundings of the European headquarters, dialogue
with key stakeholders
Product responsibility
The definition of minimum product requirements to
exclude potentially dangerous or harmful materials,
development of quality assurance systems to
ensure that standards are maintained, observation
of labelling requirements, suitable product advertising,
protection of customer data
Human rights
Adhering to employment practices, taking into account
the key standards recognised by the International
Labour Organisation (ILO) and defined in the Code of
Conduct
Product responsibility
Observing minimum product requirements

Social standards
in isolated cases irregularities occurred in product quali-
ty, which have resulted in a fine.
By assigning the key performance indicators for sus-
tainability to the core areas of our business activity and
developing corresponding tasks, the process of forming a
strategy results in the definition of four strategic areas of
action, each of them with three sub-topics. These are the
focus of sustainability management at KiK (see the above
illustration).
For each action area, we have formed concrete goals to
measure ourselves against. In the area of ecology, we follow
the ‘pyramid’ principle of avoiding, reducing and substituting.
In terms of social issues, we focus on cooperation,
certification and partnership with our suppliers. Our
Influence
Stores Administration
Procurement
Sales
Suppliers Products
Environmental
performance
Sites Employees
Logistics -
outgoing goods
The four strategic areas of action at KiK, with their key sub-topics
Supplier
• We ensure that basic rights of employment are respected
in the manufacture of goods sold by KiK
• We work continuously to improve our suppliers‘ environmental
performance
• We ensure that only high-quality products are manufactured
Sites
• We are optimising operation of our stores in respect of
energy efficiency and the reduction of emissions
• We are optimising the working environment, reducing
environmental pollution and increasing biodiversity at our
European headquarters
• In logistics, we are reducing emissions caused by traffic
and transport
Quality Range Packaging
Training and career
development
2 STRATEGY AND MANAGEMENT
Communication,
information,
co-determination
sustainability strategy is described in detail in sections 4
to 7 of this report. At the end of each section you will find
the actions we are taking to achieve our goals, in the form
of tables.
OVERARCHING STRATEGIC GOALS
In addition to the various operational measures that
form an integral part of our day-to-day business processes
and gradually help us optimise them from a sustainability
perspective, we are also pursuing broader, overarching
goals. With these, we turn our gaze to the future
and are targeting results that we aim to achieve over the
long term with the constructive support of joint-venture
Product
• We reduce emissions caused by the transport of goods
• We reduce the amount of resources used for product
packaging
• We offer an optimised range in terms of environmental
standards
Employees
• We offer attractive training and career development
opportunities
• We have an efficient communications, information and
co-determination system
• We pay appropriate salaries and wages
The four strategic action areas, assigned to Procurement and Sales, and how able we are to influence them
Logistics -
goods received
Wages and salaries
Influence
15

KIK SUSTAINABILITY REPORT 2010
16
sustainable supplier development
Management sets strategic goals for the relevant sustainability issues
sustainable product range and product
environment
sustainable site design
Divisional and departmental heads develop actions/initiatives to achieve our goals
Quality Social Environment Product Packaging Transport Stores Administ- Logistics Training and Communication, Wages and
standards
range
ration
career development
information
and codetermination
salaries
Coordinators determine the relevant measures
Sustainability management involves three different agents at different levels, all with specific tasks
Coordinators report on the implementation
status of individual initiatives
Status reports
Departmental and divisional heads
summarise the status reports
Status reports on all sustainability goals
CSR department receives all status reports
on sustainability goals
Overall sustainability report
Management
Updated goals and standards
Manage the coordination
process
The implementation of sustainability programmes
is constantly monitored and reported on
Advice in planning
and implementation
partners and the systematic development and integration
of stakeholder dialogue:
• The development of premium suppliers to help us
become more sustainable in terms of
- pollutant reduction, through the joint production
of risk assessments for colour chemicals and textile
auxiliaries
- energy savings in terms of electricity and heat
- progressive, positive wage development, above the
minimum legal wage
• 25% reduction in site-related CO e emissions for
2
KiK Germany by 2015, while planning for company
growth of 20%
• the exclusive use of recycled paper by 2014 in all
packaging, across all ranges and in all advertising,
marketing and office material
MANAGING SUSTAINABILITY
sustainable development as an
employer
All strategic and overarching goals of our sustainability
activities are defined by company management. The definition
of objectives and implementation of sustainable
corporate processes are therefore borne, accompanied
and supported by the very highest levels of management
within KiK. Based on the standards defined by management,
divisional and departmental heads develop sustainability
programmes and submit proposals as to how the
company’s objectives can be met. Each goal and measure
is signed off by the relevant member of management,
committing the company to its achievement.

A coordinator is then appointed for each area with
responsibility for ensuring that initiatives are followed
through in day-to-day operations.
The coordinators report regularly on the status of each
initiative to the divisional and departmental heads. Individual
status reports are then compiled by divisional and
departmental heads in CSR to create a status report for
all sustainability programmes across the company. Where
necessary, the CSR department can provide advice
and guidance in terms of implementation of initiatives,
and ultimately present management with an overall report
KiK Europe
KiK Germany
KiK
administration
KiK logistics
KiK stores
Key performance
indicator
Transport emissions 39.99g CO 2 e/
product
2 STRATEGY AND MANAGEMENT
on the progress of all sustainability programmes. The relevant
directors can then update sustainability goals and
standards on the basis of this report.
To enable us to consistently and systematically go
about our business from a sustainable point of view, we
apply key indicators as instruments of measurement and
control for almost all our company’s processes and procedures.
We are just at the beginning of what is a complex
and ongoing task, but are certain that it will enable us to
identify potential for improvement, form goals and assess
developments. ■
2009 2010 Target for 2015 Figure
40.9g CO 2 e/
product
Stabilisation of transport-related emissions based
on 2009
Transport packaging 46.27g/product 39.42g/product Reduction of 25% in transport packaging 25
Product packaging 9.75g/product 9.45g/product Reduction of 15% in product packaging 27
Primary energy
consumption
110.81 kWh/m 2 112.02 kWh/m 2 Reduction in electricity consumption of 25% 57/58
CO 2 e emissions 0.06 tonnes/m 2 0.06 tonnes/m 2 Reduction in total emissions of 25% 55
Electricity consumption 3,573.8 kWh/MA 3,327.1 kWh/MA Reduction in relative electricity consumption of 15% 65
CO 2 e emissions 2.66 tonnes/MA 2.45 tonnes/MA Reduction in relative CO 2 e emissions of 85% 66
Water consumption 11.90 m 3 /

KIK SUSTAINABILITY REPORT 2010
“
We’re being open
and reporting on our
activities.”
Thomas Schwarz, Head of International Communi -
cation at CARE Deutschland-Luxemburg e.V., talks to
Dr. Michael Arretz
18
No longer can the success and competitiveness of a
company be defined purely by growth and productivity.
Dealing responsibly with people and the environment has
become a key factor in doing business successfully. We
have learned how important it is to make it clear and transparent
to any interested audience that we take our corporate
responsibility seriously. By talking to people, prejudices
can be addressed and the justified expectations of
critics made clear, enabling them to be incorporated in the
decision-making process.
For a retailer that imports its products directly, this is
all the more important because we have to satisfy, on the

one hand, customers’ desire for a hassle-free shopping
experience and, on the other hand, justified expectations
that we will do business in a way that is socially and environmentally
responsible. As part of the development of
the global textile and consumer good industry, people’s
expectations have changed – in terms of both sustainable
product quality and the conditions in which goods are
manufactured. Taking that into account is one of our key
tasks. We’re therefore happy to talk to the media, and also
to address the concerns of critics such as ROBIN WOOD
or CARE Deutschland-Luxemburg e.V. Understandably,
they all have a special interest in our business activities
3 OPEN DIALOGUE
when it comes to ensuring environmentally-friendly product
ranges and a socially responsible retail policy.
By publishing this sustainability report we want to reach
out to and inform all those stakeholders who place certain
expectations on what we do. These might be individuals,
our employees, but also any customer or consumer interested
in the subject. We’re looking to reach companies,
industry associations and bodies that shape the socio-political
discussion. And we are also using this report to talk
to political decision-makers, in particular at a local and
community level.
As evidence of our intentions to be transparent and
open, we invited Thomas Schwarz, Head of International
Communication at CARE Deutschland e.V., to take part in
a debate with Dr. Michael Arretz. Their exchange shows
that even a discussion led by controversy can turn out to
be a con structive process, bringing closer two apparently
disparate points of view.
Dr. Michael Arretz: Mr. Schwarz, I’m delighted that you
have accepted our invitation to talk to us and look forward
to the controversial issues that will surely come up. After
all, friction creates energy! And, on that note, may I just
confirm that it wasn’t exactly an easy decision for you to
choose KiK as a cooperation partner.
Thomas Schwarz: You’re right. The decision to accept financial
support for our projects from KiK, and in doing so
accept the company as a cooperation partner, was definitely
not easy for us. Reports about the poor working conditions
in Germany, criticisms of the conditions in which its
goods are produced in Bangladesh, the company’s public
image and the narrow focus of discount retailers on achieving
growth at all costs – all those things meant KiK wasn’t
exactly a dream partner for us. Our impression was that
corporate social responsibility wasn’t high on the agenda
at KiK.
Dr. Michael Arretz: Yes, that’s a perception I come up
against time and time again when talking to journalists.
The discount clothing business model is viewed extremely
critically, particularly KiK’s business practices. Of course
we polarise opinions: we are big, have 3,000 stores and
19

KIK SUSTAINABILITY REPORT 2010
our advertising focuses heavily on price. Our stores are
best described as practical, with no distinctive feel-good
factor.
Thomas Schwartz: Dr. Arretz, please excuse me if I can’t
sympathize. Real mistakes have been made while, at the
same time, your company has made a lot of money. So
there are some very good reasons why you have such a
poor public image.
Dr. Michael Arretz: I agree. KiK is a young company and,
over the course of our growth, errors were made. Management
acknowledged this and set a large number of changes
in motion.
Thomas Schwarz: Without this turnaround, there could
never have been a firm alliance between CARE Deutschland-Luxemburg
e.V. and KiK. So it’s all the more important
that you now convince us and those interested,
through facts, and document and prove the seriousness
of your efforts.
Dr. Michael Arretz: That’s what we aim to do. But I’d also
like to add that we’ve already made some progress: since
2007, for example, we’ve adhered to the Code of Conduct
based on the international labour standards established
by the ILO – and we require our suppliers to do the same,
a fact that we check very carefully. Here in Germany, all
our employees receive at least the minimum wage. Apart
from that, KiK is the first and, so far, only discount clothing
retailer to have set up standalone management to oversee
CSR activities.
Thomas Scharz: The ‘Clean Clothes Campaign’ justifiably
proved, once more, that a Code of Conduct, audits and
checks only really work if they lead to tangible improvements
for employees. Until you can ensure that, it will remain
a purely cosmetic initiative.
Dr. Michael Arretz: We are fully familiar with the demands
of the campaign – for example, the desire for transparency.
Which is what we’re trying to provide now. We’re being
open and reporting on our activities, and listening to the
views of critical stakeholders: from the very beginning,
we’ve been working on our on-site CSM commitments, together
with NGOs and trade union representatives in Ban-
20
gladesh. We have a systematic approach involving audits
and certification to ensure that minimum social standards
are observed.
Thomas Schwarz: Consumers and a critical public are
entitled to an insight into what a company does. At CARE
Deutschland-Luxemburg e.V., we want to be kept in formed
too: one of our key demands was to be able to accompany
you to the factories currently making clothes for KiK, at
any time. You agreed to that demand.
Dr. Michael Arretz: We have entered into a constructive
partnership with CARE, and openness forms a key part of
that. However, we also know that CARE understands the
complexity of change processes from its own day-to-day
work. You know how long it can take to reach a consensus
about standards and ensure that they are applied. And to
do that while taking into account social and political realities
that may be very different from our own. For CSR to
work well, you need to take a long-term view – fundamental
change can never be achieved overnight.
Thomas Schwarz: Of course, change processes are
subject to complex conditions. But a lot can and must
be changed for the better overnight. Wages, for example.
How can it be so hard to increase the wages of your female
employees? Manufacturing costs account for just 1% of
the price of the finished product! And if fresh water is not
available somewhere, or ventilation and air conditioning
are lacking in a facility, it shouldn’t take longer than a day
to put that right.
Dr. Michael Arretz: Changing things like that is simple
and it annoys me time and time again when it doesn’t
happen. But applying a wage rate that – for example, as
in Bangladesh – is outside the country’s own regulations,
is a lot more complicated. Our suppliers are independent
companies, all of which also manufacture for other retail
partners. If the various employers each impose a different
wage, should an employee earn more one day because
she’s stitched a t-shirt for KiK, and then less on the next
because another employer pays differently? It’s not an
easy problem to solve. We are committed to ensuring that
anyone working in a factory producing our goods receives

at least the legal minimum wage. In the long term, how-
ever, we are looking to increase wages above the mini-
mum required by law.
Thomas Schwarz: It’s a fact that every company is always
both part of the problem and part of the solution to
it. There are some excellent examples of how things can
work differently. For example, the patchwork rug project
developed by our CARE colleagues in Bangladesh, which
you initially supported as a business partner and are now
continuing with some success, shows that, in some circumstances,
a global economy can also very easily be
socially compatible.
Dr. Michael Arretz: We have understood that and that’s
why we’re continuing the work we began with the rugs and
seaweed baskets. However, away from such projects, it’s
also legitimate in the spirit of division of labour that businesses
use the north-south divide. Only that way, through
all countries participating in the worldwide flow of goods,
can an appropriate level of wealth be achieved everywhere,
ensuring education and development.
Thomas Schwarz: To hear that might make someone
think you’re a charity dedicated to bringing prosperity to
poor countries and, at the same time, providing socially
disadvantaged families in Europe with affordable clothing.
Dr. Michal Arretz: No, KiK’s aim is to be the lowest-priced
clothing retailer. That’s a strategic decision to transfer the
idea of food discounting to the clothing industry. The fact
that we’re so successful has to do with the fact that, in
Germany, there are increasing numbers of people with
less money to spend. As has been proven in food retail, as
long as your products are high-quality, you can gain wide
acceptance in society. That’s what we’re working towards
3 OPEN DIALOGUE
at KiK. In a Forsa survey, one in two respondents admitted
to shopping at KiK occasionally.
Thomas Schwarz: But customers don’t just want cheap
clothes, they also expect social and environmental responsibility.
I personally see it as an interesting challenge
to accompany KiK on its path to becoming a socially responsible
company, while providing a critical point of view.
Dr. Michael Arretz: I am certain that with partners such
as CARE Deutschland-Luxemburg e.V., we’re on the right
track. ■
Thinking globally also sometimes means providing
fast, local support. In 2010, a large donation was
made to CARE Deutschland-Luxemburg e.V. to provide
aid in the areas of Pakistan most severely affected
by flooding.
See section 11 of ‘Facts and figures’ in the appendix to this
report to find out more about our social commitments.
21

KiK SuStainability REPORt 2010
“As one of KiK’s directors, I’m responsible
for buying department and therefore
travel abroad a lot. When I’m visiting our
manufacturers in different countries,
I don’t just consider our company’s
re lationship with them, I also think about
the people who live and work there,
who have to put food on their families’
tables – some times under highly difficult
conditions. That’s why it’s so important
to me that we work in a spirit of partnership
with our producers and suppliers
to improve local working and living
conditions.”
Mechthild Gottkehaskamp,
Procurement Director
22

4 SUPPLIERS
23

KiK SuStainability REPORt 2010
Our sustainability strategy has implications for our retail
partners in terms of their quality, social and environmental
standards.
Our internal quality assurance department, which celebrated
its tenth anniversary in 2011, serves as guarantor
of the quality of our products. The 30 plus employees
working in this department advise our procurement managers,
develop requirement profiles for products and review
these in terms of their physical and chemical parameters
in in-house laboratories. We don’t just limit ourselves
to checks, however, but actively work together with our
suppliers on all issues relating to quality. That’s why our
employees also develop and manage training programmes
for them. For more information about our quality assurance
activities, see section 5 of this report.
Our CSR department, which reports directly to the
board of directors, also has a key role when it comes to
our suppliers’ social standards. The department’s ten employees
manage initiatives to improve working conditions
at production sites. These supplier and agency qualification
programmes are based on audits conducted regularly
in the factories on our behalf by companies accredited by
the internationally recognised Social Accountability In-
24
The KiK Code of Conduct (CoC) differs from the
Business Social Compliance Initiative (BSCI) code
of conduct and SA8000 standard in that it places
no particular requirements on supplier management
systems, environmental protection or safety issues.
Within our code of conduct, we exclude such demands
in order to focus on ensuring appropriate working
conditions in factories. Naturally, however, when
we conduct inspections in the factories, aspects
such as management and environmental protection
are also taken into account. The audit requirements
ternational (SAI), a multi-stakeholder body. As part of the
programme, our CSR department works closely on site
with Consulting Service International (CSI).
In order to provide powerful support and to manage our
qualification programme. We need in-depth knowledge of
how processes are audited in our factories. To this end,
two of our CSR employees have successfully gained certification
as a basic auditor in accordance with the SAI’s
rigorous SA8000 standard.
SOCIAL STANDARDS: OUR CODE OF
CONDUCT
As an international retail company, we maintain business
contacts with local manufacturers in many countries
– especially in China and Bangladesh, where we
procure the majority of our goods. Like most retailers, we
don’t operate our own factories, but work with local manufacturers
and suppliers. That’s why we are determined
to ensure that anyone who, through their work, contributes
to our success, does so in appropriate conditions and
with full access to their rights. To create a binding basis
for all our commercial relationships, in 2006 we develo-
of the KiK CoC therefore match those of BSCI, but
do not include any demands for a management
system compliant with the DIN standard ESP 9001,
or SA8000. The KiK Code of Conduct, like that of the
BSCI, requires payment of the minimum wage and
aspires to a wage that enables people to live comfortably.
To view the full KiK CoC, visit:
http://www.kik-textilien.com/unternehmen/
verantwortung/lieferanten/

ped an international Code of Conduct, aligned with SAI’s
recognised SA8000 standard and comparable with the
BSCI code of conduct.
The requirements and minimum standards described
in our Code of Conduct are based on the ILO constitution
and the relevant standards of the United Nations, ensuring
that the labour guidelines we establish are valid
worldwide.
We are conscious of the fact that our business partners
live and work in cultural and political environments that
are different to ours. This makes it all the more important
that we respect universal human rights, which should be
respected and protected at all times. The KiK Code of
Conduct requires compliance with minimum standards in
the factories where our goods are produced. It includes
a ban on child labour, a ban on forced labour or discrimination,
maximum working hours, health and safety
standards for the workplace, information and reporting
standards for suppliers, as well as employees’ freedom
of association.
Our suppliers are informed about the content of our
Code of Conduct, which forms part of our basic business
terms and conditions and is therefore a key part of any
contract, and about the resulting requirements. Every
one of our partners undertakes to respect and protect
the provisions in the Code of Conduct, on behalf of all its
employees and those of its sub-contractors.
But our responsibility doesn’t end once the contract is
signed. For us, it’s extremely important to view suppliers
as business partners with whom we can work together to
achieve defined goals.
Of course, any breach of the CoC that is brought to our
attention is sanctioned using the means available to us.
However, we consider it a matter of fairness and in the
spirit of partnership to give them adequate time to resolve
any problems. At times, the exchange of knowledge
and information is all that’s required. In the case of more
complex problems, we closely monitor the change process
over a longer period, until improvements are made.
Should a serious breach on the part of the supplier
4 SUPPLIERS
make it necessary to terminate the business relationship,
we take immediate action. Relationships with some suppliers
have been discontinued, as they showed no willingness
to improve their working conditions.
SUPPLIER AUDITS
Not all suppliers can meet the demanding requirements
of our Code of Conduct right away. That’s why we offer
suppliers and agencies in countries where our goods are
manufactured workshops and training sessions on topics
such as working conditions, product quality and, in the
near future, environmental issues – in particular the use
of energy, water and packaging materials. How closely
we work together with our suppliers to forge a solid, longterm
business relationship with them is made clear by the
following description of how an audit and qualification
programme is carried out in Bangladesh.
We usually make initial contact with suppliers via an
agency. As part of a ‘pre-scan’, an agency’s specially
trained employees review social standards in the relevant
production facilities using a checklist that they send
to us, accompanied by photos of the factory. Our CSR
department then analyses the reports and makes a recommendation
to Procurement.
If the supplier seems suitable, we then send them our
supplier registration documents, made up of our General
Terms and Conditions of Business, our Code of Conduct,
a supplier presentation, minimum quality requirements
and a CSR package, which features an audit guide and
special conditions applicable to certain product components.
In return, the potential supplier describes its offering,
names its production sites and sub-contractors, at the
same time undertaking to inform KiK of any change in
these, and agrees to a social audit.
Once all the documentation is available, signed by the
supplier and checked by the CSR and Procurement departments,
the supplier is accepted into the system and
sent a trial order.
25

KiK SuStainability REPORt 2010
26
Within four to six weeks, the first social audit takes
place. To ensure maximum possible transparency, au-
dits are conducted by independent institutions such as
Specialised Technology Resources Inc. (STR). Generally
speaking, the specially trained auditors are locals with
extensive experience in auditing factories. They check
all relevant documents, visit the company premises and,
most importantly of all, conduct interviews with management
and staff to get an accurate insight into conditions
at the factory.
What exactly is checked during an audit varies according to the legislation of the country in question. In total,
around 175 points are assessed, usually falling into one of the following categories:
Workplace health and safety
Personal protection equipment
Fire prevention measures
First aid facilities
Machine safety
Documentation
Proof of employee age/identification papers
Time-keeping
Wage slips
Pay
Payment of the minimum wage
Payroll deductions
The prompt payment of wages
Working time
Overtime
Days off
Communication
Employee suggestion scheme
Employee representation
Environment
Disposal of waste water and other waste
Waste water disposal permits
The audit company informs suppliers, the agency
and our CSR department of the result of the initial audit.
If a supplier is rated as ‘good’, our CSR department
supports its further development and a re-audit
is conducted around two years later, at the latest. If the
supplier passes this one too, it joins the ranks of our
preferred suppliers.
If the results of this initial audit prove unsatisfactory,
a corrective plan is established with an appropriate
timeframe. Based on this plan, which is constantly
Join Molla Meher Nawroz on a factory audit at
http://www.kik-textilien.com/unternehmen/
verantwortung/lieferanten/

updated by the agencies, the CSR department reviews
developments at the supplier. Selected suppliers are integrated
in a qualification programme financed by KiK.
The qualification programme consists of multiple modules,
with workshops on topics such as child labour, social
standards in manufacturing or monitoring sub-contractors.
REGULAR SHORT VISITS
As part of our qualification programme , announced
and unannounced visits are made to closely monitor,
support and extensively document the change processes
underway. Furthermore, employees from our CSR,
Procurement and Quality Assurance departments regularly
make on-site visits to suppliers to provide them with
the best possible support. Following conclusion of the
development process, an unannounced re-audit is performed.
If the re-audit finds that no improvement has been
achieved, the supplier is given a warning. The agency
and our Procurement department will be informed of this.
Should the supplier express a strong interest in improving
and maintaining its business relationship with KiK,
they can be given another opportunity to make further
improvements and undergo another audit. If the planned
improvements are not implemented, the business relationship
may be terminated. If a significant improvement
is observed, we will continue to work with the supplier in
question.
We started our supplier audits in 2007 – and by yearend
2010, we had carried out over 1,000 audits, most of
them in Bangladesh and China. In Bangladesh, each of
the factories we work with has been audited.
SUPPLIER CERTIFICATION
Carrying out audits to ensure compliance with codes
of conduct is standard practice, across all industries.
However, we take things a step further by giving selected
4 SUPPLIERS
suppliers the opportunity to improve their performance
through qualification programmes. We firmly believe that
social standards and environmental performance can
only be improved by working together, as partners. So
since 2008, certain suppliers we work with have been
included in our qualification programme , managed by
international consultancies specialising in this area, such
as CSI, and financed by KiK.
Agencies play an important role in the auditing and
qualification programmes. If an agency suggests working
together with a particular supplier, the first thing that
happens is that the supplier’s social and environmental
standards are reviewed thoroughly by the agency’s
specially trained staff. Thanks to the on-site presence of
agencies, we are always fully informed of important developments
in the marketplace or at individual suppliers.
We also offer customised training to agencies. The
CSR employees of all 15 agencies that we’re currently
partnered with, across the globe, participate in these training
programmes.
In 2010, 20 suppliers in Bangladesh took part in qualification
programmes. Ten of these completed it successfully,
three opted out of the process before it had finished
and, as of 31 December 2010, seven remained in the programme.
The findings, which to a varying degree showed
room for improvement, covered workplace health and
safety, pay, working hours, working environment and the
provision of all relevant documentation.
Among suppliers who successfully completed the programme,
the compliance rate was 83%. Compared to
the previous year, when the rate was 62%, that signals
a clearly positive development in the improvement process.
In China, 16 suppliers took part in the qualification
programmes, four of which completed them successfully
in the same fiscal year. Two left the programme and ten
were still enrolled at 31 December 2010. On average, the
compliance rate was 70%.
In both countries, two factors have proven to be key
to the change process. The first is the belief of manage-
27

KiK SuStainability REPORt 2010
ment in the relevance of the targets and measures. The
key to the success of our qualification programmes is the
inclusion and commitment of management in the change
processes. The second factor is time. Experience has
shown that no company could immediately put right its
failings during a single qualification programme . Continued,
close support for suppliers is therefore required to
achieve comprehensive, lasting improvements in quality
and social standards.
PREMIUM SUPPLIERS
Alongside our qualification programmes, we are aiming
to set new standards in key areas of textile and clothing
production – such as reducing pollutants, exploring the potential
for energy savings in manufacture, and developing
wage settlements that are above the minimum legal wage.
To achieve these objectives, we are developing certain
suppliers that we have enjoyed a good business relationship
with over a number of years into ‘premium suppliers’.
A premium supplier meets our social standards and works
to continuously reduce negative effects of clothing manufacture
on people and the environment. This extends to
including the pre-production processes – such as the procurement
of raw materials, fabric manufacture and colouring
– in the analysis and improvement process.
We will continue to support our suppliers in this by developing
tools and procedures, together with trusted partners,
specifically tailored to the needs of our suppliers.
These are designed to help suppliers use water, energy
and raw materials as efficiently as possible and reduce
or completely cut out pollutants. In terms of reducing pollutants,
for example, we have worked with a partner with
proven expertise in the area of colorants to develop a preference
list for dye usage, tailored to a supplier’s specific
manufacturing conditions.
In terms of social issues, it is important to address the
complex issue of pay together with our suppliers and
NGOs, with a view to achieving a level above the minimum
wage.
28
By sharing knowledge and its beneficial effects on
manufacturing and production, we have abandoned the
conventional ways of retail and gone far beyond our original
role as a broker in the flow of goods. We firmly believe
that sustainable change in the consumer goods industry
can only be achieved by working together in this way. By
developing premium suppliers, we are creating role models
for other suppliers and references for the industry
as a whole.
In 2011, we opened our own office in Dhaka, Bangladesh,
to closely support all our suppliers in the country.
The office’s duties include supporting quality certification
measures in respect of social and environmental
standards in factories, as well as improving production
and product quality. In future, this office will also help
us select potential companies for the premium supplier
programme.
GIVING EMPLOYEES A VOICE
When visiting production facilities, our auditors regularly
speak with the people who work in them to find out
how satisfied they are with their working conditions, if
their superiors treat them fairly and whether management
comply with our Code of Conduct. But we wanted to get
first-hand evidence of the conditions in which people work
in clothing factories in Bangladesh. To do this, we commissioned
the Awaj Foundation, a non-profit organisation
based in Bangladesh, working together with the consultancy
CSI, to conduct a survey among male and female
employees in various clothing factories in Dhaka. Between
February 2009 and August 2010, 708 women and 226 men
were surveyed in the offices of the Awaj Foundation. The
foundation’s employees carried out the survey, which contained
over 30 questions, orally in their native language.
Some of the questions related to personal information
and attitudes, such as where they came from, education,
family status and the number of children they have, accommodation
and personal interests/activities, in addition
to their hopes for the future. The second part of the ques-

“Bangladesh is one of the poorest
countries in the world and is just starting
to develop industrially. One
of the main goals of our CSR strategy
is to commit ourselves to improving
living conditions in the country.”
Petra Katzenberger,
Head of CSR
tionnaire was about work, specifically pay and working
hours, their position in and time at the company, as well as
work-related illnesses and accidents.
The majority of those surveyed (84%) were aged between
20 and 30, half of them married, the other half single.
Around half of respondents had children, most of them no
more than two.
Close to half of the women had gone to school for between
four and six years, half of the men for seven to nine
years. A total of 83% questioned gave financial reasons
when asked why they had left education.
The majority of those surveyed share a home with other
people that do not form part of their immediate family or
group of friends, paying between ten and twenty euros
rent per month for living space of a size between 5.7m2 and 13.9m 2 . In most cases rent is payable by the 10th or
15th of the month, however in most cases wages are not
paid until the end of the next month, causing financial problems
for those involved.
4 SUPPLIERS
When raised, the issue of ‘timely payment’ was therefore
responded to positively by only a minority of those
surveyed. Around a quarter of those surveyed considered
the factory to be a pleasant working environment,
women above all on account of its cleanness and security.
But the behaviour of management was often viewed
negatively, in terms of the way they spoke to staff and
also internal rules, such as the ban on going home in the
event of illness.
These answers show that the definition of employee
rights in the Code of Conduct is just as important as regularly
auditing factories.
The results of our survey serve as an important basis
for developing further improvement measures and will be
fed into future decision making. As a first step, following
responses to the issue of workplace safety, we have produced
an employee training handbook together with the
Awaj Foundation.
29

KiK SuStainability REPORt 2010
FUNDED PROjECTS THAT wORk:
COLLAbORATING wITH CARE TO HELP
THOSE IN NEED
30
This fiscal year, working together with CARE Bangla-
desh, we are involved in a number of initiatives designed
to help the poorest regions in the north of the country:
In the districts of Lalmonirhat and Rangpur we are aiming
to improve the food supply by working with local
smallholders. Through training, they gain access to new
technologies and knowledge, helping them increase
their income. By developing agricultural markets and an
infrastructure to transport produce, around 10,000 smallholders
will be in a position to sell their produce via this
channel. In addition, 32 women are being trained and
provided with start-up capital so they can set up market
stalls.
To support women in Bangladesh particularly affected
by poverty and social exclusion, craft production facilities
were set up in which, initially, 200 women can be
REFORESTATION
In China, one of our main source markets, we support
the non-profit organization Heroes2 which,
in conjunction with the Guangdong Academy of
Forestry, initiated a reforestation programme in
2010. Only trees native to China are included in
the sustainable replanting of forests and the local
population is closely involved in the project. We
financed the planting of 10,000 trees in the province
of Guangdong, making an active contribution
to reducing CO e emissions and maintaining
2
the variety of tree species in China.
trained and then employed, on full salary. The women
can pay part of their income into savings, helping them
earn interest. This means the women are better equipped
to deal with economic crises and natural disasters, and
gives them a secure livelihood for themselves and their
children over the long term.
PROjECTS THAT MAkE A DIFFERENCE: bA-
SIC MEDICAL CARE, CHILDREN’S DAYCARE
AND SCHOOLS
Medical care in the textile hubs of Bangladesh is inadequate,
and hygiene can often be poor. That’s why,
working together with the Awaj Foundation, we have developed
a project to deliver basic medical care. One day
a week, across a range of locations in Dhaka, employees
and their children are offered the chance to consult a mobile
doctor who, in addition to treating acute complaints,
also provides advice and clarification on general health.
Also in conjunction with the Awaj Foundation, female
workers in Rangpur and in two factories in Dhaka producing
KiK goods are provided with subsidised sanitary
products, to prevent the risk of infection.
Together with the NGO Phulki, we also build daycare
facilities for employees’ children. By year-end 2010, eight
children’s nurseries were in operation where children can
be dropped off in the morning and looked after until the
end of the day. For women, in particular, this makes it
easier to earn an adequate wage. At the same time, their
children receive pre-school care in the centre, delivered
in a fun and engaging way. While the laws of Bangladesh
require every factory to operate a children’s daycare facility,
in reality few do. By funding daycare facilities, our
aim is to counter this situation.
As a principle, we reject child labour of any type. We
make our suppliers undertake to do the same and perform
strict checks on this as part of our social audits. But
that’s not enough. The best way to prevent child labour
over the long term is education. Only those who can read
and write well have a genuine chance of going on to gain

skilled, better-paid work – but less than half of the popu-
lation of Bangladesh can do so. Education is compulsory,
but many families simply do not have enough money to
afford the necessary school materials. Instead of going
to school, around seven million children in Bangladesh
must make a key financial contribution to the survival
of their families. To break this vicious circle of poverty
and lacking education, and effectively exclude the use of
child labour in the clothing industry, we support a local
schooling project run by the NGO Gonoshahajjo Sangstha
(GSS). GSS runs approximately 350 schools across
Bangladesh for children whose families are particularly
affected by poverty. All of the education, including the
teaching materials, is funded by donations. Through our
support alone, 1,920 children were receiving education
in six schools at year-end 2010. ■
For more information about how we work together with suppliers,
read ‘Facts and figures’ in section 3, figures 4-19 and
tables 2-8, plus section 11.
4 SUPPLIERS
31

KiK SuStainability REPORt 2010
SUSTAINAbILITY PROGRAMMES FOR SUPPLIERS
The aim: to optimise our clothing range based on quality criteria
Action Deadline
1 Revise the minimum requirements for clothing 06/2011
2 Define suppliers meeting the minimum requirements for buttons, care labels and labels in Bangladesh, in accordance with
the minimum requirements and Oeko-Tex® standard 100 for all product groups, in all markets
3 Log all components (buttons, zipper, neckbands etc.) and definition of suppliers in accordance with the minimum requirements
and Oeko-Tex® standard 100 for the children’s and baby collection in Bangladesh and other markets
32
06/2013
12/2012
4 Establish a service unit in Bangladesh with three to five employees to advise agencies and suppliers 10/2011
5 Provide visibility into quality-related performance of all producers in all clothing areas ongoing
6 Establish a supplier management system to select and support suppliers in the certification of their specific services and
capabilities
7 Introduce a sample-picking process for textiles in Bangladesh, conducted by independent third parties and/or
KiK employees
The aim: to optimise our non-food range based on quality criteria
03/2012
06/2012
Action Deadline
8 Revise the minimum requirements for selected non-food ranges 12/2011
9 Provide visibility into supplier error rates in the production of selected non-food items 12/2011
10 Introduce a sample-picking process for non-food products in China, conducted by third parties and/or KiK employees 06/2012
11 Pilot project: expand random order sampling in selected product groups (batch marking) 06/2011
12/2011

The aim: to improve social standards
Action Deadline
12 Audit suppliers according to the Code of Conduct, re-audit performed every two years ongoing
13 Audit 100% of clothing suppliers in Bangladesh ongoing
14 Certify suppliers to improve compliance rates in Bangladesh and China. In Bangladesh, increase improvement rate from
83% (2010) to 90%, and from 69% (2010) to 80% in China
15 Establish a short-visit programme with three campaigns in 2011 and five in 2012, to address issues such as fire prevention,
minimum pay and improving the quality of drinking water in Bangladesh
12/2012
12/2012
16 Set up a system to log the production sites of textile importers 12/2011
17 Perform random auditing of production sites in accordance with our Code of Conduct – at least five to 10 clothing suppliers
in 2011 and 15 in 2012
12/2012
18 Expand audits on ‘never-out-of-stock’ suppliers with production in the Far East to 100% 12/2011
19 Certify five selected suppliers 12/2011
20 Log all importers and sample audits of seven to 10 suppliers in the non-food sphere 12/2011
The aim: to improve suppliers’ performance in relation to the environment
Action Deadline
21 Capture the energy consumption in five factories in 2011, based on documentation, then in at least one factory using a
smart meter; balancing of CO 2 e emissions
12/2012
22 Develop an action plan to reduce energy consumption in at least one factory 06/2012
23 Develop a questionnaire to determine a range of environmental parameters: water, waste water, waste, paper 06/2012
24 Carry out an audit in eight to 15 factories 06/2012
25 Determine the carbon footprint of two to three products 12/2011
26 Establish at least five premium suppliers, with complete transparency into their use of resources, energy and water consumption
27 Perform an environmental audit, focusing on waste water in India, to provide visibility into the volume and treatment of
waste water in dye works
12/2012
06/2012
4 SUPPLIERS
33

KIK SUSTAINABILTY REPORT 2010
34

“
Customers are demanding
more and more in terms
of quality and fashion – and
in terms of how clothes
are produced. We want to
help our customers in achieving
that new look. That’s
why part of our range also
reflects the latest fashions.
Sustainable product quality,
of course, has to be part
and parcel of that.”
Stefanie Artmann,
Manufacturing Director
5 PRODUCTS
35

KIK SUSTAINABILTY REPORT 2010
OUR RANGE
Increasing numbers of consumers are making their
purchasing decisions based on price, meaning that the
number of people looking to dress fashionably but pay
less is also rising. As a provider of basic clothing, KiK
enjoys a supported awareness rate of 83% in Germany,
according to the results of an omnibus survey conducted
by TNS Infratest. And we continue to work on making our
ranges even more attractive.
Clothing makes up the largest part of our range. We
offer a wide selection of fashionable, timeless clothing
for men, women and children, all at a very high quality
and comparatively low prices. The range is based on basic
items of clothing such as jeans and American-style tshirts.
We focus in particular on the latest fashions. Since
March 2010, for example, we have regularly offered a Verona
Pooth collection featuring fashionable women’s outerwear,
expanded in the spring of 2011 to include trendy
maternity wear. Our range of clothing is completed by a
wide range of garments in large sizes for both men and
women, as well as underwear and hosiery. Following our
acquisition of the prestigious Ergee brand in January of
2009, we also now offer brand-name products. Ergee
clothing is characterized by good quality, premium materials
and modern design.
Around a quarter of our range is non-food products
such as toys, office materials, drugstore goods, home
textiles, household goods, accessories and gifts.
Over the past year, we have continuously increased the
number of environmentally friendly products in our range.
By environmentally friendly we mean any item that is
optimized in terms of pollutants, raw material or resource
consumption, or production-related emissions.
In 2010, 18% of our menswear, 13% of our women’s
outer garments, 18% of our children’s clothing, 34% of
our underwear, 59% of hosiery and 63% of home textiles
were checked for potentially harmful toxins and certified
accordingly.
The review was performed according to the Oeko-
36
Tex® 100 standard and by TÜV Rheinland. Like the Oeko
Tex® label, TÜV’s label attests that a product presents
no known danger to its wearer based on the very latest
evidence. Even after the label has been awarded to a product,
random checks are carried out to ensure continued
compliance.
We will step up our work with accredited testing institutes
in the future with a view to significantly increasing the
number of certified products in our range.
In addition, since 2009, we have been offering a complete
range of babywear made from organic cotton, produced
according to the Global Organic Textile Standard
(GOTS). This is available in selected stores on a promotional
basis. Going forward, part of our children’s collection
will also be made up of organic blend cotton.
PRODUCTS THAT HELP: PATCHWORK RUGS
AND SEAWEED BASKETS
Every year, thousands of people leave the rural regions
of Bangladesh looking for work in the capital city of
Dhaka, a city that is already home to 14 million people
and counting. While poor districts continue to form in
Dhaka and other industrial hubs, rural regions lacking in
structure are left desolate. Rangpur, located in the north
of Bangladesh, is one such region. Frequent floods can
completely or partially wipe out smallholders’ crops, in
a region largely dominated by agriculture. The result: an
inadequate food supply and extreme poverty.
To prevent more people from moving to the large industrial
centres, and the impoverishment that comes with
it, it is particularly important to help people to help themselves.
That’s why, working together with CARE Bangladesh
and a local company, in June of 2008, we began to revive
a traditional technique of carpet manufacture. Cotton left
over from the manufacture of clothes, bearing an Oeko-
Tex® certificate, is brought to Rangpur and turned into
patchwork rugs in a range of styles.
These purely recycled products are now manufactured

“When you’re pregnant, it’s not that easy to find clothes that are
fashionable yet, at the same time, so comfortable that they meet your exact
needs. That’s why I teamed up with my promotional partner, KiK, to
design the Trendy Mama range. It was important to me that the individual
items of clothing be easy to combine, colourful, casual and yet, thanks
to stretch fabric, adapt to your figure. Pregnancy is a wonderful time,
one that every woman should enjoy – and there’s no reason the stomach
shouldn’t look good too!”
Verona Pooth
at twelve production sites in the north of Bangladesh.
With a workforce that is 75% female, the project supports
women in particular, who in turn are able to support their
families. Their pay is on a par with the legal minimum
wage in Bangladesh, but for many of them it is higher.
The creation of secure jobs has given the entire Rangpur
region a boost. In addition, locals are receiving training
on subjects such as family planning, pregnancy and
healthcare.
As a retail partner, KiK guaranteed to buy all the carpets
produced. And with great success: to this date, around
1,500,000 rugs have been sold across all our European
stores. In 2009, the number was more than 400,000 and,
in 2010, around 830,000. Given the resounding success
of the project, a new production facility was set up based
on the same model in Bogra in June 2009. The facility’s
150 employees make baskets out of seaweed.
Any money earned from the sale of the rugs and baskets
is channelled into the diverse social and ecological
projects we fund.
In our rugs and seaweed baskets, we have added a
new segment to our non-food range: sustainable products.
They are sustainable because they are made from
leftover production materials/renewable raw materials,
by hand, leading to relatively low CO e emissions. In
2
5 PRODUCTS
addition, the relevant production facilities have helped
strengthen rural regions lacking in structure.
In the future, we plan to expand our non-food range
with similar products. We have therefore created a new
position within our Purchasing department focused solely
on the procurement of sustainable products.
PRODUCT CARBON FOOTPRINT
To help reduce the CO e emissions of our clothing and
2
non-food ranges, we have produced a product carbon
footprint for various goods that we sell in large quantities
– such as patchwork rugs and five-pocket jeans. This
details all CO e emissions resulting directly and indirect-
2
ly from the manufacture of a product, across the entire
supply chain, and is therefore an important tool when it
In February 2010, Public Affairs Asia recognized CARE
Bangladesh with the ‘Gold Standard Award’ for its rug
project (run in conjunction with KiK and CSI) in the Sustainability
category of its annual awards scheme.
37

KIK SUSTAINABILTY REPORT 2010
comes to reducing emissions. During its lifecycle, the
patchwork rug, measuring 60 x 90 cm and weighing 865
grams, causes the emission of 1.79 kilograms of CO e. 2
In total, 65% occurs during production. Having sold 830
patchwork rugs in 2010, this means their manufacture
alone led to the emission of no more than 0.97 kilotonnes
of CO e – around 7% of KiK Europe’s total emissions in
2
2010. The patchwork rug’s carbon footprint also tells us
that around 18% of the product’s emissions result from
transport. Usage-related emissions cannot be reported
here as no data can be gathered in this respect.
Jeans weighing around 640 grams cause greenhouse
gases of approximately 6.89 kilograms. Most of these
emissions are caused during the cotton harvesting and
manufacturing processes, closely followed by the thread
manufacture. By comparison, far fewer emissions occur
during transport.
In over 40 products or product categories, our annual
sales extend into the millions. In fiscal 2010, 41 different
products were classified as ‘million sellers’, with
total sales of 117,556,000 items. These included socks,
men’s and women’s jogging bottoms, babywear, fleece
blankets, fitted sheets and children’s bubbles. Determining
the carbon footprints of selected ‘million-sellers’ will
quickly and effectively help us improve the environmental
quality of our range. Because we sell so many of these
products, this approach will help us achieve the biggest
possible impact in terms of saving resources and environmental
protection.
38
Testing institutes we currently work with for quality control:
SGS Institut Fresenius
Bureau Veritas Consumer Products Service GmbH
TÜV Rheinland LGA Products GmbH
STR Testing & Inspection AG
Labor Dr. Graner & Partner GmbH
QUALITY ASSURANCE
At KiK, the customer is king. We therefore place great
value on the quality of our products. As early as 2001, we
set up an internal Quality Assurance department in our
European headquarters which has been equipped with
its own laboratory since 2006. The 38 employees who
work there have a range of qualifications. They include
graduates in clothing technology, chemistry and food
chemistry, laboratory assistants and specialists in toy
safety. They all spend their entire time ensuring that suppliers
comply with and implement our quality standards.
Many of the products are tested during development.
Our quality assurance system defines which legally required
markings need to be carried on a product – such
as usage instructions, warnings, the country of manufacture
and the contractor – and determines the further
scope of testing.
Before finished goods are sent to us, our Quality Assurance
department receives a sample. The supplier’s
test reports that accompany it are checked to ensure
they refer to the correct product, and are accurate and
complete, and the sample is put through a second series
of tests in the laboratory. Shipping of the goods is only
approved once a product has passed these tests. After
the goods have been received at our main warehouse,
samples of the shipment are checked again by our Quality
Assurance department.
In addition to physical checks to test the durability of
Eurofins Consumer Product Testing GmbH
LABTECH Prüfungsgesellschaft GmbH
Hansecontrol GmbH
Umweltlabor ACB GmbH
WESSLING Laboratorien GmbH

products, goods are also tested to ensure they meet le-
gal and in-house requirements in terms of pollutants. In
2010, our employees conducted close to 77,000 tests in
the Quality Assurance department’s laboratories.
In addition to conducting checks on samples, shipping
samples and upon receipt of goods, our in-house Quality
Assurance employees or independent testing institutes
carry out random checks at suppliers, even during production.
In doing so, we work closely with leading testing
institutes in Germany and abroad. Furthermore, our internal
Quality Assurance department develops programmes
to improve the quality of the products we buy and trains
its procurement colleagues, agencies in the source markets,
suppliers and importers.
DELISTING
Products with components that do not adhere to legal
standards or our own CSR guidelines are not accepted
into our ranges. For that reason, we require our suppliers
not to use cotton sourced from Uzbekistan, as we know
that we cannot be certain that child labour wasn’t used
in its harvesting. To protect tropical forests, no paper
products from Indonesia or other questionable sources
may be used. We have also placed a ban on the use of
sandblasting. This procedure involves spraying products
such as jeans with sandblast at high velocity to give them
“It’s important to us that, as well as being attractive, our product ranges
impress people with their quality. That’s why we measure, test and record
everything in our laboratories – time and time again.
So it’s all the more annoying if we miss something. That’s what drives us
on to continue getting better.”
Christian Deese, Head of Quality Assurance
Find out more about our work by watching this film on our website:
http://www.kik-textilien.com/unternehmen/presse/informationsmaterial/
filmmaterial/
5 PRODUCTS
a fashionable, slightly worn look. However, if suitable
protective measures are not taken during this process,
inhalation of the silica dust can lead to severe, irreversible
lung damage, sometimes fatal. The special rules applicable
to such products/product categories form part
of the CSR package that each of our business partners
agrees to and signs.
TRANSPORT
The transportation of goods from Asia or Europe, carried
out by or on behalf of KiK, led to greenhouse gas
emissions of 25.7 kt in 2010. One of the main aims of our
climate protection strategy is to reduce that figure. That’s
why we’ve introduced a far-reaching scheme to balance
out the emissions caused by the import and delivery
of goods, and contracted the independent consultancy
ECOFYS Germany GmbH to evaluate the report on the
greenhouse gas emissions of KiK Textilien und Non-Food
GmbH.
In our calculations, we distinguish between direct and
indirect transport. Direct transport is when we import the
goods ourselves. Indirect transport is defined as all deliveries
made by importers. These are made free of charge
to our main warehouse.
The vast majority of goods, 71% in the 2010 fiscal year,
are transported directly. As a result, the majority of our
39

KIK SUSTAINABILTY REPORT 2010
overall emissions, namely 16 kilotonnes in 2010, was due
to direct transport.
Indirect transport mostly comprises the transportation
of goods from European countries to our central
warehouse in Bönen. Given that we are not responsible
for this transport, no data is available. For the purpose of
our calculations, we have assumed that these take place
within Europe purely by truck. Indirect transport therefore
led to CO e emissions of nine kilotonnes, that’s 36% of
2
total emissions. This is over proportional given the volume
of goods transported using this method.
Lastly, we examined both modes of transport in detail.
Direct transport can be broken down into overseas imports
by ship or plane to Europe, and then the final leg
from the major European ports to our main warehouse in
Bönen by inland vessel, rail and truck.
In 2010, just 24 of the 12,400 deliveries from Asia arrived
by air – corresponding to just 0.19% of total deliveries
and causing just 2.5% of overall emissions. By using
40
Goods received
Outgoing goods
Means of transport used for shipping goods in and out
Transport from production sites to the port/airport within Asia
Ship
Truck
Transport from Asia to Europe
Forwarding of sea containers to the central warehouse in Bönen
Combined transport Rail Inland vessel Truck
Distribution of goods to 3,000 stores in all European countries
Truck
Return of packaging materials
Plane
close to 100% sea freight, we have attained a leading position
among retailers in terms of reducing CO e emissi-
2
ons caused by transport.
This transport leads to the emission of 15,454 tonnes
of CO e every year. For the onward transportation of
2
goods from the ports of Hamburg, Rotterdam and Antwerp
to our central warehouse in Bönen, 91% of deliveries
are made using the environmentally friendly means
of rail and inland vessels. Just 9% of goods are transported
to our Bönen warehouse by truck. Nevertheless,
this method of transportation causes the majority of our
emissions (46%).
This demonstrates the potential for improving our carbon
footprint. We will therefore be continuing our measures
to further reduce greenhouse gas emissions caused
by the use of trucks in direct and indirect transport.
However, our CO e calculations also clearly show that,
2
particularly when it comes to transport, the discount procurement
strategy has a reduced impact on the environ-

ment thanks to efficient logistics and strict cost manage-
ment. By almost exclusively using ships to transport our
goods between Asia and Europe, plus the use of rail and
inland vessel, we significantly reduce our greenhouse
gas emissions.
PACKAGING
To ensure those products that have passed our selection
criteria and strict quality assurance checks also
arrive at our stores undamaged, they need to be well
packaged for transportation. Cardboard is by far the
most widely used packaging material for transporting
our goods, though other materials are also used, such
as wood or film. Because we take care to use as much
packaging as necessary but as little as possible, we save
on costs and materials.
For all stores within a 300 km radius of our Bönen
warehouse, transport packaging is transported back
to the warehouse once the goods have been delivered,
using our own fleet of trucks, and sold on as recycled
material. In our other German and European stores, the
transport packaging is collected by the shipping company
and sold by them as recycled material.
Based on the data from approximately 1,000 stores
where transport packaging is returned to Bönen, it’s possible
to roughly calculate the total amount of transport
packaging used by all stores. In fiscal 2010, 24.6 kilotonnes
of transport packaging was used, of which 19.6
kilotonnes was cardboard. That amounts to 39.4 g of
transport packaging per product – a 7 g or 15% reduction
on the previous year.
In addition to transport packaging, some products are
also protected by product packaging made, for example,
from paper, plastic or film, that must be removed and
disposed of by the customer before product use. We also
succeeded in reducing the volume of product packaging
we used in 2010 over the previous year, by 0.19 kilotonnes.
This corresponds to a packaging reduction per product
of 3%.
5 PRODUCTS
As a matter of principle, we do not use outer packaging
as well as product packaging. This helps save resources,
saves space during transport and associated energy,
and reduces otherwise avoidable waste.
Since 2009, silica gel packets can only be used to absorb
moisture during the transportation of goods with
prior special approval. As a result, our use of it fell from
25 tonnes in 2009 to 10 tonnes in 2010. As part of KiK’s
paper strategy, paper and cardboard are to be replaced
by an appropriate recycled product wherever this has not
yet happened.
In 2010, the plastic shopping bags available in stores
were also replaced with bags made from recycled plastic.
■
For more information about our products, see ‘Facts and
figures’ in section 2, figures 2-3, section 4, figures 20-23,
section 5, figures 24-27 and section 6, figures 28-33, plus
tables 9-11.
41

KIK SUSTAINABILTY REPORT 2010
SUSTAINABILITY PROGRAMME FOR PRODUCTS
The aim: reduce transport-related emissions based on 2010 figures
Action Deadline
28 Keep air freight emissions to below 5% ongoing
29 Create visibility into goods shipped to Europe via specific routes and means of transport from Asia 10/2011
30 Produce an emissions balance sheet for Asia-Europe goods transport based on specific means of transport 2012
31 Provide visibility into goods received via specific routes and means of transport from the ports of Hamburg, Rotterdam and
Antwerp to Bönen
32 Calculate emissions for transport from the ports of Hamburg, Rotterdam and Antwerp to Bönen 2012
42
12/2011
33 Test the expansion of the various emissions calculations to include NOx, SO 2 and particulates 06/2012
34 Establish a CO 2 e reduction target by 2015 for goods received 12/2011
The aim: save resources in packaging
Action Deadline
35 Develop shipping specifications for suppliers in terms of transport packaging for the key ranges of clothing and toys based
on the principle of reduce, reuse, recycle
05/2012
36 Create transparency in respect of transport packaging material, quantities, procurement and disposal 12/2011
37 Calculate the type and quantity of carrier bags and replace 25% with environmentally friendly alternatives in 2011 and 50%
in 2012
The aim: increase use of eco-friendly materials in our clothing range
10/2011
Action Deadline
38 Continue the baby organic cotton collection, in accordance with GOTS standards 12/2011
39 Check the use of organic-mix cotton in our children's collections 06/2011
40 The offering of 4-8 Toxproof-certified products 06/2012

The aim: improve product safety based on 2010 figures
Action Deadline
41 Women's clothing: increase the proportion of Oeko-Tex® standard 100 products to at least 25% 06/2013
42 Men's fashion: increase the proportion of Oeko-Tex® standard 100 products to at least 40% 06/2013
43 Children's and baby clothing: increase in the proportion of Oeko-Tex® standard 100 products to at least 30% 06/2013
44 Underwear: increase the proportion of Oeko-Tex® standard 100 products to at least 40% 06/2013
45 Hosiery: increase the proportion of Oeko-Tex® standard 100 products to at least 60% 06/2013
46 Home textiles: increase the proportion of Oeko-Tex® standard 100 products to at least 65% 06/2013
47 Test a control system for enforcing the ban on sandblasting 12/2011
The aim: make our noon-food range more environmentally friendly
Action Deadline
48 Categorize the entire range according to specific hazards and risks; develop criteria for at least four categories (including
toys and household goods)
complete
49 Introduce minimum standards for products containing paper and/or wood 12/2010
50 Create transparency in respect of products containing paper and/or wood: writing materials (notepads, greeting cards) 12/2011
51 Writing materials: test sales of 'Blue Angel' label recycled materials and replacement of products following a successful
test phase
52 Create transparency in respect of the origin and manufacture of products containing wood and/or paper in two further
categories
05/2012
12/2011
53 Carry out of a chain-of-custody wood audit 02/2012
54 Expand conversion of orders of products containing wood and/or paper to FSC, FSC-mix or recycled products, to go on
sale starting winter 2012
The aim: develop fully sustainable product ranges carrying the slogan ‘Products that help’
09/2012
Action Deadline
55 Create a new sustainable products procurement position 12/2011
56 Expand the existing range of patchwork rugs and seaweed baskets 12/2011
57 Establish one to two new products 12/2012
5 PRODUCTS
43

KIK SUSTAINABILTY REPORT 2010
44

“Closely aligned processes and efficient
transport logistics, where goods are
transported to our stores in an
eco-friendly way, are a key expression
of our sustainability strategy.”
Burkhard Schültken, Managing Director of KiK Logistik I GmbH
6 SITES
45

KIK SUSTAINABILITY REPORT 2010
EUROPEAN HEADQUARTERS
All KiK Textilien und Non-Food GmbH business processes
are managed from our headquarters in Bönen. This is
also where the headquarters of KiK Logistik I GmbH and
our main warehouse are located.
Day-to-day processes in management, stores and the
warehouse call for the use of large amounts of energy.
We distinguish between the direct use of primary energy
– namely natural gas, heating oil, petrol, diesel and
gas for our fleet of cars and trucks – and the indirect use
of electricity, district heating and fuel by our forwarders.
Natural gas used for heating purposes is by far the biggest
contributor to our use of primary energies. In terms
of indirect energy consumption, electricity is the most
important factor. Because we are continuously growing
as a company, our energy consumption also tends to rise
slightly year on year. In 2010, we began to supply some
of our stores in Germany with green energy. This led to a
significant reduction in electricity-related emissions – in
total, greenhouse gas emissions fell by 15.4 kilotonnes
across Germany.
Our on-site sustainability strategy is aimed at reducing
or avoiding the use of non-renewable resources such
as electricity, paper and water, or replacing them with a
more eco-friendly alternative.
In 2009, we started to introduce an environmental management
system for our European headquarters. The
system was fully implemented in 2010 and, in January
2011, was certified by TÜV Nord according to the DIN EN
ISO 14001:2009 standard.
The DIN EN ISO 14001:2009 standard is the basis for
setting up, introducing, managing and developing environmental
management systems. Through application
of the standard, environmental protection becomes so
embedded in the management of a company that environmental
factors are taken into account in all day-to-day
tasks and decisions. The company has an effective tool
for capturing its environmental impact and can strategically
manage its environmental performance.
46
Using the environmental management system, we have
been able to define six relevant environmental aspects at
our European headquarters: natural gas, electricity, water,
paper, office materials and waste. For each of these
aspects, we have developed a strategy to improve our
environmental performance. We collect data and make
assessments on an ongoing basis to enable us to review
our change processes.
The parameters relevant to operational environmental
protection are documented in an environmental handbook
available to all employees at our Bönen site.
Since the environmental management system was introduced,
and with the help of key performance indicators,
the average electricity consumption and average
CO e emissions per administrative employee have been
2

calculated. Similar key indicators for consumption and
emissions per pallet have been introduced in logistics.
In 2010, electricity consumption per administrative employee
was reduced by around 7%. Average greenhouse
Open spaces around KiK’s European headquarters
have been transformed into a near-natural biotope
gas emissions per employee fell significantly in 2010
compared to the previous year.
Paper usage in day-to-day office activities at our European
headquarters is on a par with the size of the workforce
there. In 2009, around 122 tonnes of paper was
used – in fiscal 2010, this was reduced to 81 tonnes.
Until year-end 2008, only paper from fresh fibre was
used. Starting in 2009, however, this has been gradually
phased out and replaced by recycled paper. By
2010, we had reduced our use of non-recycled paper
to 25%. Thanks to our increased use of recycled paper,
production-related electricity consumption was reduced
by 391,680 kWh in 2010, and production-related water
consumption by 1,902 m3 . In addition, the environment
GreenBuilding is a programme run by the European Commission to improve
energy efficiency and promote the use of renewable energies in non-residential buil-
dings. The aim of the programme is to drive investment in energy efficiency and
renewable energies, as well as to increase security of supply and climate protection in
the European Union.
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KIK SUSTAINABILITY REPORT 2010
was spared 10.4 tonnes of CO 2 e emissions. With double-
sided printing, we reduced the volume of paper used by
more than 30%.
The transition to 100% environmentally friendly office
materials at our headquarters and in our stores will be
complete by late 2011.
From January 2013, only recycled paper bearing the
‘Blue Angel’ label, or at least FSC-certified paper, will be
used for advertising materials. Currently, the percentage
of recycled paper used in our sales brochures is 79%.
By designing all the green spaces around our European
headquarters to look like natural habitats, we allow
our employees to experience the integration of environmental
aspects into our business activities. Working
together with the Karl Kaus foundation and local tree
nurseries and gardening firms, we have developed the
approximately 1,500 square metres of land surrounding
our headquarters to create homes for small mammals,
insects and birds. The walls of our high-bay warehouse
are just the right height for nesting, in particular for swifts
and bats.
LOGISTICS
Our subsidiary KiK Logistik I GmbH maintains one of
the most modern high-bay warehouses in Europe. Total
storage space amounts to 65,000m2 , and is divided into
a flat shelf store of 57,300m 2 and approximately 23,000
pallet spaces, as well as a 7,700m2 high-bay storage
area. The high-bay storage area is structured in the way
of 14 picking lines measuring 120 metres long and 32
metres high, and can accommodate around 40,000 pallets.
Compared to the previous year, average electricity
consumption per pallet remained the same in 2010, as
did average CO e emissions per pallet.
2
Around 120 deliveries are made via the 51 receipt gates
every day. In 2010, 680,000 pallets were unloaded.
Each KiK store receives deliveries of new goods once
a week. On a daily basis, 150 trucks are loaded at the 72
48
dispatch gates on the south side of the warehouse for
delivery to specific stores.
The company’s own fleet comprises 20 trucks, which
deliver goods to all our stores within a 300 km radius
of the warehouse. All other deliveries from our main
warehouse is handled by a range of regional forwarders.
To reduce the CO e of goods transport from the
2
warehouse to our stores, we aim to have developed a set
of mandatory specifications and a training programme
for our transport providers by mid-2012.
We are currently conducting an inventory of our entire
company fleet. As part of this, parameters such as transport
performance and fuel consumption will be determined
for each vehicle. This data will serve as the basis to
further reduce CO e emissions related to the transport
2
of goods.
OUR STORES
Due to the large number of stores we operate, our electricity
consumption is by far the greatest in this area. During
2010, this amounted to a total 100.93 million kWh for
our 2,500 stores across Germany. Compared to the previous
year, that represents a slight increase in average
electricity consumption per store of around 2.5%.
However, thanks to our conversion to green power in
2010, we significantly reduced CO e emissions. A total
2
of 19,370 carbon dioxide equivalents were prevented, resulting
in an 11.8% fall in CO e emissions compared to
2
2009.
In 2009, KiK became the first European clothing discounter
to partner the European Commission’s Green-
Building programme, designed to improve energy efficiency.
So far, we have built 15 new stores according to the
GreenBuilding standard and had them certified. These
stores have optimised cladding and an innovative ventilation
system. Heating is provided by an energy-efficient
thermal heat pump. In these stores, we have achieved
average energy savings of 50% and reduced CO e emis-
2

“When getting our environmental management system off the ground, the
successful integration of our employees at our European headquarters
in Bönen was particularly crucial. Their marked environmental awareness is
proven by the range of projects currently being implemented or in planning to improve our environmental
performance across the supply chain.”
Khalid Doukkali, Cert Auditor TÜV Nord
sions by 40%. We plan to set up a further 15 GreenBuil-
ding stores each year.
To make our existing stores more energy-efficient as
well, we introduced a smart metering project in January
2011 in conjunction with Tengelmann Energie and Deutsche
Telekom. During the one-year pilot scheme, electricity
consumption in 53 KiK stores will be measured at
various points in the building every 15 minutes. This will
enable us to identify time periods and devices that see
a lot of electricity is used, and help us reduce electricity
consumption by up to 25%. ■
For more information about our headquarters and stores, see
‘Facts and figures’ in section seven, figures 34-46 and tables
11-13, section 8, figures 47-53 and tables 13-14, section 9,
figures 54-70 and tables 15-16.
KiK is a funding partner of the German Environmental Management Association (B.A.U.M. e.V), the largest
business environmental initiative in Europe. The aim of B.A.U.M. is to raise awareness about the
principles of sustainability among companies, associations and institutions, and support them in implementing
preventative company management systems and introducing measures and initiatives to support
environmental and sustainability management.
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KIK SUSTAINABILITY REPORT 2010
ON-SITE SUSTAINABILITY PROGRAMMES
The aim: reduce environmental pollution caused at our sites
Action Deadline
58 Send post via "GoGreen" 06/2011
59 Create transparency and use 100% environmentally friendly office materials made from paper and cardboard in our European
headquarters and stores
60 Provide visibility into the number and types of office equipment used and implement a programme to reduce energy consumption
caused by use of office equipment
61 Replace the paper-based advertising materials we use with 'Blue Angel' label recycled papers or, if that is not possible, to
FSC-quality, 45% in 2011, > 70% in 2012
62 Replace our advertising brochures with 'Blue Angel' recycled material or, if not possible, to FSC-quality, 20% in 2011, >
70% in 2012
50
12/2011
12/2012
12/2012
12/2012
63 Trial the conversion of business cards to white and 'Blue Angel' label material or, if not possible, to FSC-certified material 12/2011
64 Replace the cleaning materials we use at our headquarters and in our stores with more environmentally friendly alternatives
(where, possible, bearing the 'Blue Angel' seal)
06/2012
65 Replace the toilet paper we use with toilet paper made from recycled materials 12/2010
66 Replace the copy paper we use with 'Blue Angel' and FSC-quality recycled paper 12/2010
67 Raise awareness among employees about how to conserve resources through paper usage in their day-to-day work ongoing
68 Trial the use of automatic systems to improve air conditioning at our European headquarters 06/2011
69 Equip all taps at our European headquarters with water-saving aerators 03/2011
70 Provide visibility into electricity consumption caused by lighting and the European data centre 12/2011
71 mobil&Job campaign: pilot project to reduce use of personal vehicles 06/2012
The aim: improve the working environment to increase employee motivation
Action Deadline
72 Modernize kitchens, canteens and showrooms 10/2011
73 Redesign the canteen's outdoors area and transform the lawn 09/2011
74 Select three designated smoking areas 07/2011
The aim: increase biodiversity around sites
Action Deadline
75 Redesign three open spaces into a quasi-natural habitat 12/2012
76 Provide homes for different species of animals 10/2011

The aim: reduce environmental pollution caused at our sites
Action Deadline
77 Convert our German stores to 100% green energy 01/2011
78 Trial to convert to 100% green energy in Austria, followed by implementation 12/2012
79 Build 15-20 new stores according to the EU's GreenBuilding standard in 2011 and 2012 ongoing
80 Pilot project: convert the lighting in selected stores from T8 to T5 10/2011
81 Replace the lighting in 150 stores with more energy-efficient alternatives in 2011, and in 300 stores in 2012 2012
82 Reduce electricity consumption by 10% in 2011 and 15% in 2012 in converted stores 12/2012
83 Renovate at least 70 stores annually 12/2012
84 Develop a concept for the design of social spaces 12/2011
85 Gradually replace in-store refrigerators with A+ refrigerators 12/2013
86 Pilot project: participate in a smart metering programme with 50 stores, to optimise our use of energy 09/2011
87 Trial replacement of the company fleet for departmental heads and management executives with more energy efficient
alternatives, with a view to reducing CO 2 emissions
12/2011
88 Pilot project with natural gas-powered vehicles to determine ranges, consumption and costs 10/2011
The aim: provide visibility into our vehicle fleet
Action Deadline
89 Identify and record the entire KiK truck fleet since 2005 ongoing
annually in August
The aim: reduce environmental pollution and transport-related emissions
Action Deadline
90 Capture and calculate the volume of fuel used across our entire truck fleet ongoing
91 Calculate the CO 2 e emissions of the KiK truck fleet and expand calculations to include NOx, SO 2 and particulates 06/2012
92 Trial procurement options for a vehicle with bi-fuel or gas drive for the KiK truck fleet ongoing
93 Trial rolling resistance-optimised tyres and low-viscosity engine oils ongoing
94 Develop a driver training programme complete
95 Define a CO 2 reduction target for 2015 12/2011
96 Develop environmentally relevant requirements for logistics providers; workshops with selected partners 06/2012
97 Calculate the transport volume and impact in tonnes per regional forwarder ongoing
annually in January
98 Calculate total emissions and emissions per regional forwarder 10/2012
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KIK SUSTAINABILITY REPORT 2010
52

“ Working at KiK means laying
the foundation for a successful
career, accepting responsi -
bility and a good work-life
balance. We are proud of how
motivated our employees
are and the way they take
advantage of these opportunities
– as the staff campaign we
launched in September so
impressively shows!”
Heinz Speet,
Managing Director, HR
7 EMPLOYEES
53

KIK SUSTAINABILITY REPORT 2010
ATTRACTIVE JOBS – HAPPY EMPLOYEES
We provide over 20,000 jobs in Europe, and many more
will be added in the years to come. As one of the fastest
growing retail companies in Europe, we offer recessionproof
jobs with a future. Our HR strategy gives every
employee the opportunity to develop their career at KiK
through training and qualification programme s.
In addition, the fact that we are represented across
Germany guarantees maximum flexibility. Hardly any em-
54
“Because I married very young and had two children,
it was difficult for me to get professional training. As a
team leader at KiK, I was offered the chance to qualify
as a regional manager and, in doing so, get the training
I needed. Within one-and-a-half years, I had successfully
completed my training as a retail saleswoman and
currently work as a regional manager. The opportunities
you get at KiK aren’t on offer at every company – just
working here is brilliant!”
Kiriaki K., regional manager, 41 years old
ployees have to move when they take a job with us.
When recruiting staff, it all comes down to what kind of
person the applicant is. What matters most is the personal
impression a candidate makes on us. Certificates or
a spotless CV are of less importance. All this means we
have a very diverse workforce; in Germany alone, people
from 76 nations work for us.
At 16 years old, our youngest employee is still in education
while, at the age of 78, our oldest is a pensioner
and works part-time in one of our stores.
“I’ve been working at KiK for 14 years now and I still
enjoy every minute. The atmosphere in our stores is just
great! You’re always busy and every day there’s a new
surprise, and that helps keep me in shape.”
Heinrich F., part-time employee, 78 years old

At year-end 2010, 16,980 people were working for us
in Germany in an even split of full and part-time jobs.
25% of our employees are on part-time contracts with a
gross monthly salary of no more than 400 euros and/or
temporary contracts.
Our figures are particularly strong when it comes to
putting women in management: 58% of our management
executives are women. They work in second and thirdtier
management roles, such as department or regional
management, but also in senior management positions.
One of the main aims of our HR strategy is to keep the
number of women in management above average and,
where possible, keep improving it.
The proportion of women in our workforce – 92% – is
high for the industry. So we’ve come up with a few ideas
to help mothers: if a woman gets pregnant during her
training, she can continue it on a part-time basis. And
after the birth of a child, once the maternity/paternity leave
has ended, employees can take on part-time employment
and flexible working hours.
COMMUNICATION AND CO-DETERMINATION
The working environment in our company is based on
trust, fairness, openness and a mutual appreciation and
respect of one another. That’s why it’s important to us
that all employees be able to approach management directly
if they have any concerns or difficulties.
With this in mind, we developed what we call our ‘worry
letter’. This can be sent to senior management or any
other superior. Every message is dealt with on a confidential
basis and answered directly by the person to
whom it is addressed.
And thanks to the introduction of an internal suggestion
scheme, employees can communicate suggestions
and proposals internally using an ‘idea letter’. Usually,
the ‘idea letter’ is addressed to the store management
department, and the employee who sends it receives
feedback from that department over the phone.
Of course, management also seeks to inform all em-
“I’m from Kazakhstan, where I was a teacher and
studied accounting. While I was waiting for my degrees
to be recognised here, I started working parttime
at KiK. I liked it so much that, at the age of 43,
I decided to start training again at KiK. I’m now working
towards becoming a regional manager.”
Evgenia Z., part-time employee, 45 years old
“I’ve been working for KiK for almost six years
now, and I’ve had two children during that time.
That was only possible because I was able to
continue my training as part of a part-time arrangement.
My managers have always been very
understanding and always supported me.”
Stefanie W., HR development, 26 years old
7 EMPLOYEES
55

KIK SUSTAINABILITY REPORT 2010
ployees about any relevant decisions or changes at the
company as soon as possible. In our European headquarters,
this usually happens through meetings with
management, as well as by email. For longer-term announcements,
we use our employee magazine. Shorterterm
announcements are made by posting them in display
cabinets. In addition, headquarters and individual
stores can also communicate with staff by placing letters
and other inserts in the envelopes with their wage slips.
Our general employee newsletter is published once a
quarter, in the style of a magazine. It provides in-depth
information about key issues, as do our manuals, the
Leitlinien (guidelines) publication and Der Rote Faden
(the key issue) information brochure.
56
JOBS REQUIRING FORMAL TRAINING AT KIK IN 2011
Stores
Certified retail assistant (m/f)
Certified retail expert (m/f)
Retail sales assistant (m/f)
Salesperson (m/f)
Headquarters
Bachelor of Arts – Retail (m/f)
Architectural draughtsman (m/f)
Business economy expert/Bachelor of Arts (m/f)
Office administrator (m/f)
Laboratory assistant (m/f)
IT specialist in application development (m/f)
IT specialist in systems integration (m/f)
Property agent (m/f)
Wholesaling and foreign trade agent (m/f)
Marketing communications officer (m/f)
HR services officer (m/f)
Management meets regularly at scheduled times to
share information.
We have had initial experiences in terms of co-determination
with the works’ councils in our subsidiaries KiK
Logistik I GmbH and KiK Austria
PAY AND SALARY
When it comes to wages, we set a clear example for
the clothing industry when we became the first clothing
discounter to introduce a basic wage on 1 October 2010.
Since then, every employee in Germany has received an
hourly wage of at least 7.50 euros. In particular, that is
an improvement for part-time workers in regions with a
Logistics
Bachelor of Arts – Logistics (m/f)
Forwarding and logistics services agent (m/f)
Warehousing logistics specialist (m/f)
Warehouse operator (m/f)

“Good work deserves to be well paid. That’s why HDE calls for a minimum
wage for all retail staff.
By implementing a basic wage of 7.50 euros per hour, discount clothes retailer
KiK has sent out the right message to its employees, but also to the entire
industry. We are delighted that our commitment to a minimum wage has been
boosted by KiK. But collective bargaining and remuneration are just one
aspect: in the controversy-fuelled political debate, it’s important to remember
that only those companies that succeed in attracting and retaining well
poor infrastructure – even before the introduction of the
minimum wage, higher hourly rates were paid in major
cities and catchment areas. Trainee pay was also increased
across all areas of the business by an average 9% in
2010, taking it up to around 600 euros per month initially
and then 800 euros in the last year of training.
In addition to pay, we offer employees a capital-forming
savings scheme once they have been with us for
one year, as well as numerous bonuses and social benefits.
We support our employees with a company pension
plan, contributing 10% of the value of their salary
help and hope Foundation
We firmly believe that everyone deserves the chance to have a future with prospects, regardless of their background,
so the support of socially disadvantaged children and teenagers forms one of the most important aims of our social
commitments. In 2005, the charitable foundation help and hope was set up by Stefan Heinig and other companies
committed to the cause. The foundation works in Germany and internationally to help disadvantaged children, and
operates its own care centre in Herne, North Rhine-Westphalia.
7 EMPLOYEES
trained, motivated employees will succeed in the retail sector in the long term. And to do that, they need to
pay them appropriately! As an employer, KiK has taken this on board.”
Stefan Genth, CEO of the German Retail Federation (HDE).
each month. There is also a staff discount of 15% on all
purchases from our stores and, for new parents, a starter
package containing the basic equipment to help them
care for their baby. For our staff in sales management,
performance-related pay is governed by bonus agreements,
while all other employees are offered bonuses
for outstanding performance. A bonus is also awarded
to anyone who brings a new colleague into the team. The
same applies when one of our employees helps us to lease
a new commercial property.
57

KIK SUSTAINABILITY REPORT 2010
PROMOTING YOUTH: THE KIK TRAINING
MODEL
Training our young employees, supporting them and
helping them achieve management positions is a principle
that we have pursued since we went into business. We
place great importance on the quality of the training we
offer, given that our success as a company depends on
the strengths and potential of our employees.
In fiscal 2010, we awarded 544 training places in Germany.
In 2011, around 750 places will be offered for 19
different positions. It is important to note that there is no
upper age limit for people to start training at KiK.
With around 10% of our workforce made up of trainees,
we rank among the top German companies, and our acceptance
rate in 2010 was clearly above the national average,
at 74%.
Since the company was founded in 1994, 2,873 people
have successfully completed their training at KiK, and we
are proud of the good records of our former trainees: to
date, 49% remain at the company.
The success of our HR strategy in terms of training is
demonstrated by the fact that 873 of all former trainees
still with the company work in management positions.
In terms of internal training, we offer all sales and procurement
employees the opportunity to gain certification.
The courses consist of 15 different modules, including
seminars and practical workshops, that take place
over the course of a year. Since 1998, close to 1,000 employees
have taken part in these programmes. Sales assistants
with good/very good results can apply to take a
trainer aptitude test. This training, which concludes with
the award of an AdA certificate, is obligatory for all team
leaders. In addition, we offer team leaders training on
KiK’s management guidelines.
In 2009 and 2010, 10.2% of all employees underwent
such training. In staff management seminars, those in
management positions are shown how to evaluate employees
and produce agreements on targets and objectives.
58
In Germany, someone is diagnosed with leukaemia
every 45 minutes – and many patients can only be
helped through stem cell donation. That’s why we
support the German bone marrow donor registry
(DKMS) by calling on employees and customers to
register themselves as donors. KiK covers the costs
of registration for each employee prepared to donate.
Since the campaign started, over 250 KiK employees
have already registered as potential bone
marrow donors and, in October 2010, our colleague
Sabine Zwang from Bad Hersfeld, was given the opportunity
to save someone’s life.
“The entire process was straightforward and painless.
I’d donate again whenever it’s needed. Although
you don’t know the person you’ve donated
to, you know that you may have saved someone’s
life. That feels really good.”
Sabine Z., team leader, 26 years old
Our training offering is rounded out by seminars on
project and time management, plus English lessons. ■
For more information about our current employee campaign,
visit our website: http://www.kik-textilien.com/unternehmen/
de/karriere/kik-der-chancengeber/
For more information about our employees, see ‘Facts and
figures’, included as an appendix to this report in section 10,
figures 71-78 and tables 17-24.

SUSTAINABILITY PROGRAMMES FOR EMPLOYEES
The aim: make KiK more attractive as a modern employer
Action Deadline
99 Maintain the proportion of women in management at more than 50% ongoing
100 Plan, develop and introduce a 'new mother programme' with a starter package 06/2011
101 Plan, develop and introduce a package for retirement arrangements 10/2011
The aim: increase the proportion of employment relationships subject to insurance contributions to more than 75%
Action Deadline
102 Develop and introduce an indicator per sales manager/region to show the proportion of employment requiring payment of
national insurance
The aim: transform and expand employee communications systems
12/2011
Action Deadline
103 Further develop the ‘worry letter’ and ‘ideas letter’ employee complaints/suggestion systems 12/2011
The aim: make KiK more attractive as a trainer
Action Deadline
104 Document all training in the 19 jobs starting from 2000, taking into account training for young mothers and training with
no age restrictions, among others
105 Plan, develop and implement a training programme for unskilled workers/employees who did not complete their school
education
06/2011
08/2011
106 Plan, develop and introduce an extra-occupational training programme in our commercial departments 10/2011
107 Plan, develop and introduce a training and qualification programme accessible to all store workers 01/2012
108 Maintain the training rate at 10% in 2011, with the plan to increase it to 11% in 2012 12/2012
109 Maintain the number of trainees taken on permanently at 61%, above the national average ongoing
110 Keep the proportion of former trainees who stay with us for at least three years at 50% ongoing
111 Lead more than 55% of trainees to management positions, including team leadership ongoing
7 EMPLOYEES
59

KIK SUSTAINABILITY REPORT 2010
1. Company
FIGURE 1: THE GROSS TURNOVER OF KIK TEXTILIEN UND
NON-FOOD GMBH HAS INCREASED CONTINUOUSLY
Turnover [billion euros]
TABLE 1: THE SHARE OF NON-FOOD PRODUCTS ROSE BY
3.4% IN 2010
60
Appendix
Facts and figures
Page 60
GRI Content Index
Page 82
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
2006/2007
2007/2008
2008 / 2009
* 2009: short fiscal year (May to December)
Textiles Non-food*
2009 77.8 % 22.2 %
2010 74.3 % 25.6 %
2009*
In 2009, the fiscal year was aligned with the calendar year.
The short fiscal year only ran for eight months, from May to
December 2009, which explains the lower turnover.
* The non-food range consists of party products, cleaning agents, accessories,
decorations, household products, home textiles, food, toys, office
materials, petcare and drugstore products
2010
Glossary, abbreviations,
external sources
Page 88
Independent auditors’ report
Page 90
2. Quality
Complaints [%] Number of products
FIGURE 2: IN 2010, 2,658 PRODUCTS WERE PICKED BY
ADMINISTRATIVE BODIES AS SAMPLES AND TESTED
ACCORDING TO A WIDE RANGE OF CRITERIA. JUST 29 OF
THESE TESTS RESULTED IN A COMPLAINT
3,500
3,000
2,500
2,000
1,500
1,000
FIGURE 3: A COMPLAINT RATE OF 1.1% MEANS THAT
98.9% OF THE PRODUCTS TESTED BY ADMINISTRATIIVE
BODIES PASSED THAT TEST. IN FIGURES: 2,629 OF 2,658
PRODUCTS TESTED PASSED THEIR TESTS
8
7
6
5
4
3
2
1
500
2006
checked products
product
complaints
2007 2008 2009 2010
2006 2007 2008 2009 2010

3. Social standards
FIGURE 4: IN 2010, DIRECT IMPORTS WERE
INCREASED TO 71%
Imports [%]
TABLE 2: EXPLANATION OF AUDIT AND RE-AUDIT
Audit
100
80
60
40
20
Re-audit
2009 2010
indirect imports
direct imports
FIGURE 5: AT 60%, CHINA IS OUR BIGGEST SOURCE
MARKET FOR DIRECT IMPORTS
Direct imports [%]
5
1
4
20
1
9
60
China
Bangladesh
India
Phillippines
Pakistan
Taiwan
Others
- checking production sites’ social and environmental
aspects, based on the requirements of the KiK Code
of Conduct
- announced visits carried out by accredited and
independent external auditing companies
- like an audit, but unannounced and performed at
regular intervals depending on the supplier’s performance
- ensures improvement measures are being implemented,
while also capturing a company’s current social
and environmental performance
9 DATEN UND FAKTEN
TABLE 3: IN AN AUDIT, SUPPLIERS ARE TESTED ON
FIVE KEY POINTS
Depending on the country and its specific laws, more than 175 points are
checked during an audit. These can be broken down as follows:
Area of focus Abbreviation Explanation
Health & safety
Documentation
Wages
FIGURE 6: SINCE 2007, 1,180 AUDITS AND RE-AUDITS
HAVE BEEN CONDUCTED
Audits [number]
400
300
200
100
H&S
Docmtn.
Wages
Personal protection equipment
Fire prevention measures
Accident first aid
Emergency planning
Machinery safety
Proof of age
Time keeping
Payroll
Overtime Overtime Overtime
Days off
Wage deductions
Minimum wage
Delayed wage payment
Communication Comms. Suggestion scheme
Worker representation
2007 2008 2009 2010
Since 2007, most of our suppliers have been checked for
compliance with our Code of Conduct as part of the auditing
programme. Currently, 92% of active direct suppliers have
been audited.
FIGURE 7: IN THE FIRST AUDIT, MOST OF OUR ACTIVE SUP-
PLIERS SHOW SIGNIFICANT ROOM FOR IMPROVEMENT
Suppliers [%]
20
5
75
critical
needs improvement
good
61

KIK SUSTAINABILITY REPORT 2010
TABLE 4: CATEGORISATION OF RESULTS
critical Factory has serious failings which must be quickly and
demonstrably corrected.
needs improvement Factory has failings that need to be demonstrably
corrected within a certain timeframe.
good
FIGURE 8: IN BANGLADESH, ALL ACTIVE SUPPLIERS
HAVE BEEN AUDITED
Suppliers [%]
FIGURE 10: THE PURCHASING VOLUME SOURCED FROM
AUDITED, ACTIVE SUPPLIERS IN OUR KEY MARKETS IS 80%
Purchasing volume [%]
62
100
80
60
40
20
15
Bangla-
desh
Factory has no failings or only slight failings, which
need to be demonstrably corrected within a certain
timeframe.
China
5
India
80
Philippines
audited not audited
Pakistan
Bangladesh
critical
needs improvement
good
FIGURE 9: AFTER THE RE-AUDIT, THE NUMBER OF
SUPPLIERS CLASSIFIED AS ‘GOOD’ INCREASES
Suppliers [%]
24
15
61
Bangladesh
critical
needs improvement
good
Taiwan
FIGURE 11: SINCE 2007, 45 WORKSHOPS HAVE BEEN
HELD ON THE TOPICS OF SOCIAL STANDARDS, AUDIT
PROCEDURES AND FACTORY CHECKS
Workshops +
participants [number]
200
150
100
50
Supplier certification
Employees of Consulting Service International (CSI) offer
qualification programmes for suppliers in China and
Bangladesh. These qualification programme s begin with
an initial visit (quick scan) and end with a final visit. The
programmes take an average of 4-6 months to complete,
during which time suppliers make improvements based on
a ‘correction plan’, with ongoing, professional support from
CSI, who also manage and check on progress. In 2010, 20
suppliers from Bangladesh and 16 from China took part in
qualification programme s.
TABLE 5: EXPLANATION OF QUICK SCAN
Quick Scan
2007
2008
2009
Workshops
Participants
2010
- review of production sites for social and environmental
aspects, based on the requirements of the KiK Code of
Conduct
- performed announced, by independent auditors
- in addition, a subjective assessment is made of the
status quo and the partner's potential for development
FIGURE 12: AT 50%, THE SUCCESS RATE IN OUR
QUALIFICATION PROGRAMME IN BANGLADESH IS TWICE
AS HIGH AS IN CHINA
Success rate [%]
75
50
25
completed
successfully
programme ongoing
Bangladesh
China
ended prematurely

FIGURE 13: ON FIRST-TIME VISITS, NO SUPPLIERS WERE
RATED AS ‘GOOD’
Evaluation [%]
60
40
critical
Bangladesh
needs improvement
FIGURE 14: ON FIRST-TIME VISITS, ALL SUPPLIERS
SHOWED ROOM FOR IMPROVEMENT
Evaluation [%]
50 50
critical
China
needs improvement
FIGURE 15: AT 60%, THE HIGHEST NON-COMPLIANCE
RATE IS IN THE AREA OF ‘HEALTH AND SAFETY’
Non-compliance rate [%]
5
8
11
16
The majority of non-compliance was in the area of health and
safety as this covers off many more criteria than the other
areas. Further critical areas include ‘Documentation’ and
‘Wages and salaries’.
60
H&S
Docmtn.
Wages
Overtime
Comms
Facts and Figures
FIGURE 16: THE COMPLIANCE RATE IN BANGLADESH
INCREASED TO 83% DURING 2010
Compliance rate [%]
100
80
60
40
20
TABLE 6: THROUGH CERTIFICATION, THE COMPLIANCE
RATE INCREASES MOST SIGNIFICANTLY IN TERMS OF
OVERTIME
Category 2009 correction
rate in %
2009
2010 correction
rate in %
2010
H&S 68,1 79,8 +11,7
Docmtn. 78,9 88,9 +10,0
Wages 72,2 80,8 +8,6
Overtime 12,5 80,0 +67,5
Comms. 78,6 88,1 +9,5
Bangladesh
Improvement
in %
Total 62,1 83,5 +21,42
Bangladesh
H&S Docmtn. Wages Overtime Comms
FIGURE 17: THE CORRECTION RATE CLIMBED
TO 70% IN 2010
Correction rate [%]
100
80
60
40
20
2009
2010
China
H&S Docmtn. Wages Overtime Comms
63

KIK SUSTAINABILITY REPORT 2010
TABLE 7: THROUGH QUALIFICATION, THE COMPLIANCE
RATE INCREASES MOST SIGNIFICANTLY IN TERMS OF
OVERTIME
Category 2009 rate in % 2010 rate in % Improvement in %
H&S 54,8 82,5 +27,7
Docmtn. 57,8 68,9 +11,1
Wages 36,4 41,7 + 5,3
Overtime 14,3 86,7 +72,4
Comms. 25,0 66,7 +41,7
Total 37,7 69,3 +31,6
TABLE 8: OUR KPIS EXPLAINED
Area KPI Explanation
Wages Timely payment The timely payment of wages to all
employees
Documentation Contract Employment contract contains all
the necessary data and information
Documentation Identification ID card for all employees
Documentation
Documentation
64
Manual
Maternity leave
China
Key performance indicators
The introduction of key performance indicators (KPIs) represents
an intensification of our qualification programmes.
With the aid of KPIs, areas requiring specific attention can be
identified more quickly and actions implemented in a more
strategic way. The definitions of the six KPIs detailed below
have been developed in conjunction with stakeholders from
a range of NGOs and other interested bodies in Bangladesh
and China.
Service book prepared by BGMEA/
BKMEA. One manual must be
maintained per employee. Applies to
Bangladesh only
Respect for and the correct calculation
of parental leave, which
can be ensured using the manual
mentioned above
Health & safety Drinking water Adequate supply of drinking water
and drinking water tests
BGMEA = Bangladesh Garment Manufacturers and Exporters Association
BKMEA = Bangladesh Knitwear Manufactures & Exporters Association
Industry associations representing the country’s manufacturers of woven
goods, knitwear and sweater exports
FIGURE 18: IN THE KPI PROGRAMME, SIGNIFICANT IM-
PROVEMENTS WERE MADE ON ALL 5 PARAMETERS
Correction rate [%]
100
80
60
40
20
before
does not exist good
needs
improvement
after
before
after
before
after
before
after
Timely
payment Contract ID Manual
Bangladesh
before
after
Drinking
water
FIGURE 19: THE DRINKING WATER KPI HAS SHOWN THE
MOST IMPROVEMENT
Correction rate [%]
100
80
60
40
20
before
not available
needs
improvement
after
before
after
before
good
Timely
payment Contract
ID
after
China
before
after
Drinking
water

4. Product ranges
FIGURE 20: THE PROPORTION OF OEKO-TEX® PRODUCTS
IN ALL OUR TEXTILE RANGES HAS BEEN SIGNIFICANTLY
IMPROVED
Proportion of Oeko-Tex® [%]
The percentages relate to the total order volume. Products
were checked according to the Oeko-Tex® standard 100. In
2010, 60 out of 100 orders in the division socks were assigned
the Oeko-Tex® 100 standard. In 2009, the number was
just five.
FIGURE 21: IN 2010, THE PROPORTION OF OEKO-TEX®
PRODUCTS INCREASED FROM 3% TO OVER 30%
Proportion of Oeko-Tex® [%]
100
80
60
40
20
35
30
25
20
15
10
5
Women’s clothing/
tops
Women’s clothing/
bottoms
Menswear
Children’s clothing
Baby clothing
Home textiles
Underwear
2009
2010
2009
2010
Socks
Facts and Figures
FIGURE 22: THE SALE OF ORGANIC COTTON PRODUCTS
FELL BY 7% IN 2010
Organic cotton products
[by thousand units]
160
140
120
100
80
60
40
20
2009
2010
Baby clothes Underwear Total
All products were certified to the Global Organic Textile Standard
(GOTS).
FIGURE 23: IN 2009 AND 2010, ONE MILLION PATCHWORK
RUGS WERE SOLD AS ‘PRODUCTS THAT HELP’
Rugs [by million units]
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
cumulated amount sold
May 09
Jun 09
Jul 09
Aug 09
Sep 09
Oct 09
Nov 09
Dec 09
Jan 10
Feb 10
Mar 10
Apr 10
May 10
Jun 10
Jul 10
Aug 10
Sep 10
Oct 10
Nov 10
Dec 10
65

KIK SUSTAINABILITY REPORT 2010
5. Packaging
FIGURE 24: THE VOLUME OF TRANSPORT PACKAGING
FELL BY 15% IN 2010 (EXTRAPOLATION*)
Transport packaging [kilotonnes]
FIGURE 25: TRANSPORT PACKAGING WAS REDUCED
BY 7 GRAMS PER PRODUCT IN 2010
Transport packaging [g/product]
66
30
25
20
15
10
5
50
40
30
20
10
2009
2010
Cardboard Film Wood Others Total
* The extrapolation was performed based on the disposal of transport packaging
in 1,000 German stores. During 2010, KiK disposed of 6,492.2 tonnes
of cardboard, 419.4 tonnes of film, 48.7 tonnes of wood, plus 1,232.2 tonnes of
other materials.
2009
2010
FIGURE 26: PRODUCT PACKAGING WAS REDUCED
BY 3% IN 2010
Product packaging [kilotonnes]
FIGURE 27: PRODUCT PACKAGING WAS REDUCED
BY 0.3 GRAMS PER PRODUCT IN 2010
Product packaging [g/product]
7
6
5
4
3
2
1
11
10
9
8
7
6
5
4
3
2
1
Paper, etc.
Film
Plastic
Aluminium
2009
Tin plate
2010
Glass
Natural materials
Total
2009
2010

6. Transport of goods received
TABLE 9: TRANSPORT TYPES COMPARED
Explanation
direct transport transport carried out by KiK FOB (free on board)
indirect transport goods delivered by an importer (free delivery)
FIGURE 28: CO e EMISSIONS* CAUSED BY DIRECT AND
2
INDIRECT TRANSPORT REMAIN THE SAME
CO 2 e [kilotonnes]
FIGURE 29: EMISSIONS FROM DIRECT AND INDIRECT
TRANSPORT
CO 2 e [kilotonnes]
30
25
20
15
10
5.
* CO 2 e is the abbreviation for carbon dioxide equivalents and is the internationally
recognised measure for the environmental impact of greenhouse
gases.
In terms of direct transport, more than 99% of orders from
the Far East were transported by sea.
20
15
10
5
Europe
Overseas
2009
Total
direct transport indirect transport
2010
2009
2010
Facts and Figures
TABLE 10: PRODUCT ORDERS BY MEANS OF TRANSPORT
FROM ASIA TO EUROPE AND IN FORWARDING* IN 2010
(DIRECT TRANSPORT)
FIGURE 30: IN DIRECT TRANSPORT, ONLY 9% OF THE
GOODS BY WEIGHT WERE FORWARDED BY TRUCK. THIS
FORM OF TRANSPORT CAUSES ALMOST HALF OF OUR
EMISSIONS
CO 2 e [t]
248
Number % CO 2 e (tonnes)
Sea transport 12.380 99,81 15.454
Onward forwarding* 12.380 100 536
Air 24 0,19 408
Total 12.404 100 16.398
* Transport from destination port to Bönen (see Figure 31).
FIGURE 31: 91% OF OUR TRANSPORTED GOODS ULTI-
MATELY REACHED BÖNEN BY INLAND VESSEL AND RAIL
9
121
167
37
Inland vessel
Rail
Truck
54
[%]
67

KIK SUSTAINABILITY REPORT 2010
TABLE 11: PRODUCT ORDERS BY MEANS OF TRANSPORT
FROM ASIA TO EUROPE IN 2010 (INDIRECT TRANSPORT)
68
% CO 2 e (tonnes)
Transport by sea 52 4.840
Trucks (Europe) 46,3 4.307
Forwarding 1,7 160
Total 100 9.307
Due to the free delivery condition, no data can be sourced
from primary sources. When establishing our CO e emissi-
2
ons, it was therefore assumed that all goods from continental
Europe are transported by truck.
FIGURE 32: EMISSIONS FROM FORWARDING OF
INDIRECT TRANSPORT
CO 2 e [t]
68
FIGURE 33: AT 65%, PRODUCTION ACCOUNTS FOR
THE MAJORITY OF THE CARBON FOOTPRINT OF PATCH-
WORK RUGS
[CO 2 e emissions as a %]
Warehousing 0.1
Transportation 17.8
Packing 4.9
Stores 9.8
Production 65.1
Waste disposal 2.3
Figures provided by Tengelmann Energie GmbH
65.1% corresponds to 1.16 kg of CO 2 e
40
52
Inland vessel
Rail
Truck overseas
1.79 kg CO 2 e
7. Sites
TABLE 12: USE OF SPACE AT KIK’S EUROPEAN HEAD-
QUARTERS
Areas m 2
Total site space 160.22
Proportion of built-on space 75.094
Proportion of sealed space 58.551
Proportion of green space 26.575
FIGURE 34: SINCE 2001, OFFICE SPACE HAS
INCREASED BY 64%
Office space [tm 2 ]
14
12
10
8
6
4
2
2001 - 2005 from 2006
FIGURE 35: SINCE 2001, THE AMOUNT OF SPACE USED
FOR LOGISTICS HAS INCREASED TO 65,000 m2 Logistics space [tm 2 ]
70,000
50,000
30,000
10,000
1994 - 1996
1996 - 1999
1999 - 2000
2000 - 2001
2001 - 2005
2005 - 2009
from 2009

FIGURE 36: IN 2010, A TOTAL OF 835 TONNES OF WASTE
AND RECYCLABLE MATERIALS WERE PRODUCED AT OUR
EUROPEAN HEADQUARTERS IN BÖNEN (IN ADMINISTRA-
TION AND LOGISTICS)
Waste + recyclable materials [t]
900
800
700
600
500
400
300
200
100
Paper
Glass
Residual waste
Day-to-day
recyclable packaging
Steel
Electrical
Fluorescent lamps
Others
FIGURE 37: SINCE 2006, DRINKING WATER CONSUMP-
TION HAS RISEN BY 31%. IN 2010, IT ROSE BY 19% OVER
2009
Drinking water [m 3 ]
10.000
8.000
6.000
4.000
2.000
2006 2007 2008 2009 2010
Total
Administration Logistics Total
FIGURE 38: DRINKING WATER CONSUMPTION PER
EMPLOYEE ROSE BY 11% OVER 2009
Drinking water [m 3 /employee]
14
12
10
8
6
4
2
2009
Administration Logistics Total
2010
Facts and Figures
FIGURE 39: SINCE 2006, OUR USE OF NATURAL GAS HAS
INCREASED CONTINUOUSLY*
Natural gas [million m 3 ]
0,6
0,5
0,4
0,3
0,2
0,1
06 / 07 07 / 08 08 / 09 09 10
* The causes for this increase are currently being investigated
FIGURE 40: USE OF NATURAL GAS PER EMPLOYEE ROSE
BY 600 65% OVER 2009
Use of natural gas [m 3 /employee]
FIGURE 41: IN 2010, WE REDUCED OUR USE OF A4
PRINTING AND COPY PAPER* ACROSS THE COMPANY
BY MORE THAN EIGHT MILLION SHEETS
Paper [million sheets]
500
400
300
200
100
30
25
20
15
10
5
Recycled paper
(Blue Angel label)
2009 2010
Fresh fibre paper Total
* We started to use recycled paper in 2009. In 2010, we reduced our
paper consumption by 8 million sheets and increased the share of recycled
paper to 73%.
In total, this led to savings of over 30,000 euros.
2009
2010
69

KIK SUSTAINABILITY REPORT 2010
FIGURE 42: IN 2010, 99% OF OUR OFFICE MATERIALS*
WERE ENVIRONMENTALLY FRIENDLY
Office material [%]
* Office materials include envelopes, note pads, flipchart pads, hanging file
folders etc., dividers, folders, spine labels
70
60
50
40
30
20
10
Blue Angel Recycled Fresh fibre
FIGURE 43: IN 2010, WE OPENED STORE NUMBER 3,000
Number of stores
FIGURE 44: IN 2010, OUR TOTAL STORE SPACE
AMOUNTED TO 1.5 MILLION SQUARE METRES
Store space [m 2 ]
3,500
3,000
2,500
2,000
1,500
1,000
500
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
93/94
94/95
95/96
96/97
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
2009
2010
93/94
94/95
95/96
96/97
97/98
98/99
99/00
00/01
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
2009
2010
In 2010, the average size of a KiK store was 520 m 2 .
FIGURE 45: SINCE 2008, THE NUMBER OF
GREENBUILDING STORES HAS RISEN CONTINUOUSLY
Number of GreenBuilding
stores
10
8
6
4
2
2008 2009
2010
KiK is the first discount clothing retailer Europe-wide to
participate in the European Commission’s GreenBuilding
programme. Through greater investment in construction,
energy consumption post-build is reduced. In late 2010, KiK
operated a total of 11 GreenBuilding stores.
FIGURE 46: THE 8,232 TONNES OF PAPER WE USED FOR
SALES FLYERS WAS MADE UP OF 80% RECYCLED PAPER
Type of paper [%]
90
80
70
60
50
40
30
20
10
116 t 8,232 t Fresh fibre
Recycled
FSC / FSC mix
Marketing material* Sales flyers
* Marketing material: Ergee brochure, postcards, flyers, customer magazine,
employee magazine, CSR brochure, company guidelines, company presentation,
posters, crowners and inserts, stand-up displays, back panels, ceiling
decorations, leaflets

8. Transport of outgoing goods
TABLE 13: THE KIK FLEET
Number of vehicles 19
Fuel Diesel
Fuel consumption in litres 418,000
Average litres consumed per 100 km 25
Truck fleet in 2010
FIGURE 47: 2010 SAW AN INCREASE IN THE NUMBER OF
EURO 5 VEHICLES
Trucks [number]
25
20
15
10
5
2009
2010
Euro 3 Euro 4 Euro 5 Total
TABLE 14: THE KIK FLEET IN EUROPE COMPRISES 331 VEHICLES
FIGURE 48: THE CO 2 e EMISSIONS OF KIK’S FLEET OF
Facts and Figures
TRUCKS ARE LOWER THAN THOSE OF OUR FORWARDERS
CO 2 e [tonnes/truck]
70
60
50
40
30
20
10
Forwarders KiK truck fleet
FIGURE 49: KIK’S TRUCKS HAVE 20% LOWER CO 2 e
EMISSIONS PER KILOMETRE
Number Germany Austria Hungary Czech Republic Slovenia Slovakia Total
Diesel vehicles 230 49 13 17 13 6 326
Petrol vehicles 3 / / / / / 3
Natural gas vehicles 2 / / / / / 2
Total 233 49 13 17 13 6 331
Each vehicle meets at least the Euro 4 standard, though a large number of our vehicles are also Euro 5 compliant.
CO 2 e [kg/km]
1
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
0,1
Forwarders KiK truck fleet
2009
2010
2009
2010
71

KIK SUSTAINABILITY REPORT 2010
FIGURE 50: EMISSIONS PER CAR FOR DIESEL VEHICLES
CO 2 e [kg/km]
72
0,25
0,2
0,15
0,1
0,05
Slovakia
Austria
Hungary
Czech
Republic
Germany
2009
Slovenia
Average
* Ø new registrations 2010 – diesel – D: 0.150 kg/km (manufacturer data)
** EU threshold from 2015: 0.120 kg/km
2010
FIGURE 51: EMISSIONS PER CAR AND KILOMETRE IN CO2 KILOGRAMS (NATURAL GAS-FUELLED CARS)
14
12
10
8
6
4
2
Tonnes of CO 2 e per natural gas-fuelled car
Kilograms of CO 2 e per km
2009 2010
*
**
0.25
0.2
0.15
0.1
0.05
FIGURE 52: CO e EMISSIONS ARE AROUND 22% LOWER
2
FOR BI-FUEL VEHICLES
CO 2 e [g/km]
200
175
150
125
100
75
50
25
Diesel fleet
Natural gas-fuelled
vehicle (bi-fuel)*
* VW Passat 1.4 ECOfuel with a mileage of 30,000 km
*VW Passat 1.4 ECOfuel with a mileage of 30,000 km
Diesel
Natural gas
Petrol
FIGURE 53: FUEL COSTS ARE FOUR CENTS LOWER
PER KILOMETRE
Fuel costs [cents/km]
10,0
7,5
5,0
2,5
Diesel fleet
Natural gas-fuelled
vehicle (bi-fuel)*
Diesel
Natural gas
Petrol

9. Emissions of KiK Textilien und Non-Food GmbH
The calculation of the greenhouse gas emissions of KiK Tex-
tilien und Non-Food GmbH, as well as the underlying metho-
dology, were once again certified in 2010 by Ecofys Germa-
ny GmbH. The organisational and operational calculation of
direct and indirect emissions was carried out by Tengelmann
Energie GmbH (TEG), in accordance with the international
standards and requirements of Greenhouse Gas Protocol –
A Corporate Accounting and Reporting Standard (Revised
Edition).
The following greenhouse gas emissions were calculated:
Scope 1 :
• Emissions from the use of fuels to heat stores and other
properties
• Emissions from the use of fuels to operate company vehicles
• Emissions from refrigerants (no quantitative data for NH3)
used for air conditioning in vehicles
Scope 2:
• Emissions caused by power plants producing electricity
purchased by KiK Textilien und Non-Food GmbH (Scope 2)
• Emissions from the use of district heating to heat stores
and other properties
Scope 3:
• Emissions from deliveries between distribution centres
and stores, carried out by third parties (a)
• Emissions from deliveries from the country of origin to the
distribution centres (b)
Emissions caused earlier in the supply chain, for example
from exploration through to delivery to the combustion
site, are not calculated. Given the complexity of calculating
upstream emissions, the GHG Protocol Initiative is currently
developing a new methodological standard for Scope 3. In
fiscal 2010, KiK Textilien und Non-Food GmbH was responsible
for CO e emissions of approximately 112.8 kilotonnes
2
in the above areas (Scopes 1-3). Green energy/green energy
certificates are accounted for within this. Compared to the
previous year, CO e emissions fell by approximately 11.1 kilo-
2
tonnes. Greenhouse gas emissions caused by imports plus
the inland deliveries (Scope 3 b) amounted to approximately
Facts and Figures
25.7 kilotonnes CO e in 2010. Around 63% of these emissi-
2
ons were caused by transport that is the full responsibility of
KiK Textilien und Non-Food GmbH. The remaining 37% of
emissions were due to imports where either the importer or
manufacturer was liable.
FIGURE 54: OVER 50% OF GREENHOUSE GAS EMISSIONS
IN FISCAL 2010 WERE CAUSED BY HEATING
[%]
4 Cars
4 Heating oil
8 District
heating
42 Gas
6 Trucks (external
providers)
1 Trucks
(own fleet)
112.8 kt CO 2 e
0 Refrigerants
TABLE 15: CO 2 e EMISSIONS FELL BY 9% IN 2010
KiK sites total
(Scope 1, 2, 3a)
Goods received
(scope 3b)
2009 [CO 2 e
in kilotonnes]
2009 [CO 2 e
in kilotonnes]
Δ in %
98.8 87.1 11.84
25.1 25.7 2.4
Total KiK Europe 123.9 112.8 8.9
35 Electricity
73

KIK SUSTAINABILITY REPORT 2010
FIGURE 55: THE USE OF GREEN ENERGY ALONE LED
TO A 12% REDUCTION IN CO e EMISSIONS IN 2010
2
CO 2 e [kilotonnes]
In calculating the reduction in CO e emissions caused by
2
renewable energy certificates, irrespective of their quality or
how much they add, emissions of 0 t CO e per kWh have been
2
assumed in accordance with the World Business Council for
Sustainable Development/World Resources Institute Greenhouse
Gas Protocol. Based on this, emissions fell by 12%.
Without the use of green energy, they would have risen by 8%.
74
120
100
80
60
40
20
98.792 87.116 106.485
2009 2010
Emissions including green energy
Emissions excluding green energy
Grey electricity factor: 0.403 CO 2 e/kWh
-12 %
+8 %
FIGURE 56: KIK GERMANY REDUCED CO e EMISSIONS
2
CAUSED BY ELECTRICITY CONSUMPTION BY 15.4 KILO-
TONNES
CO 2 e [kilotonnes]
100
90
80
70
60
50
40
30
20
10
Electricity
Gas
District heating
Heating oil
Cars
KiK trucks
2009
2010
Third-party trucks
Cooling
Total
TABLE 16: KIK GERMANY’S TOTAL CO e EMISSIONS FELL
2
BY 13% IN 2010
CO 2 e emissions of KiK Germany in kilotonnes
German sites
(Scope 1, 2, 3a)
Goods received
(Scope 3b)
2009 2010 Δ in %
84.9
25.1
69.5
25.7
18.14
Total 110 95.2 13.45
FIGURE 57: DIRECT PRIMARY ENERGY CONSUMPTION AT
KIK GERMANY ROSE IN 2010
d.PE* [million kWh]
170
165
160
155
150
145
140
2.4
06/07 07/08 2008 2009 2010
* d.PE = direct primary energy consumption (natural gas, heating oil, petrol,
diesel)
FIGURE 58: USE OF NATURAL GAS ROSE IN 2010
COMPARED TO 2009
d.PE* [million kWh]
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
135.34 139.62
Natural gas
(heating)
8.87 11.05
Heating
oil
13.83 13.53
0.15 0.14
0.06 0.05
Petrol
2009
2010
Diesel Natural gas
(company (cars)
trucks + cars
Germany/abroad)

FIGURE 59: THE INDIRECT PRIMARY ENERGY CONSUMP-
TION OF KIK GERMANY HAS GROWN CONTINUOUSLY
SINCE 2008
i.PE* [million kWh]
140
120
100
80
60
40
20
06/07 07/08 2008 2009 2010
* i.PE = indirect primary energy consumption
FIGURE 60: THE INCREASE IN INDIRECT PRIMARY
ENERGY CONSUMPTION AT KIK GERMANY IS MAINLY
DUE TO ELECTRICITY USAGE
i.PE* [million kWh]
FIGURE 61: IN FISCAL 2010, WE STARTED TO CONVERT
OUR GERMAN STORES TO GREEN ENERGY
i.PE* [million kWh]
120.00
100.00
80.00
60.00
40.00
20.00
99.11 104.28
7.05 7.79
2009
2010
18.77 18.97
Electricity District heating Third-party
trucks
(Germany and
abroad)
* i.PE = indirect primary energy consumption (electricity, district heating,
forwarders’ trucks)
Total: 2009 = 124.92 million/kWh, 2010 131.04 million/kWh
120.00
100.00
80.00
60.00
40.00
20.00
06/07 07/08 2008 2009 2010
Facts and Figures
FIGURE 62: MOST OF KIK’S ELECTRICITY COMES FROM
RENEWABLE ENERGIES (54%)
Electricity production mix [%]
1
FIGURE 63: KIK GERMANY USED GREEN ENERGY FOR
THE FIRST TIME IN 2010
Electricity [million kWh]
54
58
56
54
52
50
48
46
44
42
Grey energy
Green energy*
* Green energy refers to electrical energy obtained from renewable sources
(e.g. wind, hydroelectric power)
When sourcing electricity in Germany, KiK Textilien und Non-
Food GmbH relies on a portfolio of suppliers, starting with
the group’s own energy company (GrünhausEnergie GmbH)
and expanding out to suppliers such as Lichtblick and NaturEnergie.
The electricity products we purchase come with
different labels, from TÜV Nord certificates, to the ok-Power
label to the Grüner Strom gold label. This has enabled us
to significantly reduce CO e emissions by approximately
2
19,370 tonnes.
13
25
1
7
Coal
Natural gas
Oil
Nuclear
Renewable
Waste
75

KIK SUSTAINABILITY REPORT 2010
FIGURE 64: OUR STORES ACCOUNT FOR THE MAJORITY
OF OUR ELECTRICITY CONSUMPTION (97%)
Electricity [million kWh]
FIGURE 65: IN ADMINISTRATION, THE AVERAGE ELECTRI-
CITY CONSUMPTION PER EMPLOYEE* FELL BY AROUND
7% IN 2010
Electricity [kWh/employee]
* The ‘average electricity consumption per employee’ serves as a key
performance indicator for strategically managing and reducing electricity
consumption in administration, as does the ‘average CO 2 e emissions per
employee’. In warehouse logistics, these have been replaced by ‘average
electricity consumption per pallet’ and ‘average CO 2 e emissions per pallet’.
For our stores, ‘average electricity consumption per store’ and ‘average CO 2 e
emissions per store’ have been raised.
76
4.000
3.000
2.000
1.000
2009
2010
FIGURE 66: CO e EMISSIONS PER EMPLOYEE WERE RE-
2
DUCED BY 7.4%
CO 2 e [tonnes/employee]
120
100
80
60
40
20
3,0
2,5
2,0
1,5
1,0
0,5
Administration Logistics Stores
Emission factor 744 g CO 2 e/kWh
2009 2010
2009
2010
FIGURE 67: ELECTRICITY CONSUMPTION PER PALLET
REMAINED UNCHANGED AT 1.2 kWh
Electricity [kg/pallet]
FIGURE 69: ELECTRICITY CONSUMPTION IN STORES
ROSE BY 2.5% IN 2010
Electricity [MWh/store]
40
30
20
10
2009 2010
FIGURE 70: CO 2 e EMISSIONS PER STORE ROSE BY 3.4%
CO 2 e [t/store]
1,5
1
0,5
35
30
25
20
15
10
5
2009 2010
FIGURE 68: AVERAGE CO e EMISSIONS PER PALLET
2
ALSO REMAINED THE SAME
CO 2 e [kg/pallet]
1.50
1.00
0.50
Emission factor 744 g CO 2 e/kWh
2009 2010
2009 2010
Emission factor 744 g CO e/kWh
2

10. Employees
TABLE 17: 94% OF ALL KIK EMPLOYEES WORK IN OUR
STORES
Stores Administration Logistics Total
Number 15.966 602 412 16.980
Proportion in % 94 3,6 2,5 100
FIGURE 71: IN 2010, 76% OF EMPLOYMENT REQUIRING
PAYMENT OF NATIONAL INSURANCE
Employment relationship [%]
FIGURE 72: 58% OF KIK MANAGEMENT EXECUTIVES ARE
FEMALE*
Employees [%]
24
100
80
60
40
20
Male
Female
Total employees (16,990) Employees in management
(366)
* Regional managers, sales managers, department managers, division
managers, store managers
TABLE 18: THE PROPORTION OF TRAINEES AND APPREN-
TICES IN OUR WORKFORCE IS 10%
% proportion in the
workforce
Trainees and apprentices
Total 1,678 trainees including apprentices
10
Of which are women with children 136
Insurance required
Low-income/short-term
employment (insurance
not required)
76
TABLE 19: THE NUMBER OF NEW MOTHERS ROSE
2009 2010
Headquarters 15 8
Logistics 2 0
Sales 214 287
Total* 231 295
* Employees, including part-time workers
TABLE 20: 5,014 OF KIK’S FEMALE EMPLOYEES HAVE
CHILDREN
Headquarters 95
Logistics 26
Sales 4,893
Total 5,014
Facts and Figures
FIGURE 73: ALMOST HALF OF TRAINEES WHO HAVE
COMPLETED THEIR TRAINING AT KIK SINCE 1994 ARE
STILL WITH THE COMPANY
Number of trainees [%]
51
2.873
trainees who have left the company
49
former trainees
62
38
former trainees now in
management
77

KIK SUSTAINABILITY REPORT 2010
FIGURE 74: THE AVERAGE AGE OF KIK EMPLOYEES IS
MID-THIRTIES
[Employees]
FIGURE 75: THE AVERAGE AMOUNT OF TIME KIK EMPLO-
YEES HAVE BEEN WITH THE COMPANY IS 3.5 YEARS
78
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
5-9.9 years
21%
3-4.9 years
21%
< 20 20-30 31-40 41-50 > 50
> 10 years
5%
< 1 year
27%
1-2.9 years
26%
FIGURE 76: STAFF TURNOVER IS HIGHEST IN SALES,
AT AN AVERAGE 36%
Turnover [%]
4
3
2
1
Administration
Logistics
Sales
January
February
March
April
May
June
July
August
September
October
November
December
FIGURE 77: AROUND 75% OF EMPLOYEES IN STORES PAY
SOCIAL SECURITY AND TAX
Employment relationship [%]
60
40
20
Kapovaz*
*Variable working hours based on capacity
TABLE 21: EXPLANATION OF EMPLOYMENT CONDITIONS
Kapovaz:
part-time workers, employment
relationship requiring the payment of
social insurance and tax
Permanent:
full-time employees, employment
relationship requiring the payment of
social insurance and tax
Mini-jobber: part-time workers with
a maximum gross salary per month
of 400 euros and/or on a temporary
contract
Trainees/apprentices:
full-time workers, employment
relationship requiring the payment of
social insurance and tax as part of
the training
Other part time:
flexible, part-time employment
relationship
Permanent Part-time
workers
Number Proportion in %
6,664
4,395
4,193
1,678
50
payment of social security required
payment not required
39
26
25
10
< 1
Total 16,980 100
Trainees and
apprentices

FIGURE 78: 194 EMPLOYEES HAVE SIGNED UP TO THE
COMPANY PENSION PLAN
Employees [number]
150
120
90
60
30
Pension fund
Direct insurance
Headquarters Logistics Sales Total
TABLE 22: THE NUMBER OF OCCUPATIONAL ACCIDENTS
HAS INCREASED YEAR ON YEAR
2009 2010
Number Proportion Number Proportion
Trainees 69 8.78 % 152 15.14 %
Logistics 41 5.22 % 101 10.06 %
Sales 670 85.24 % 734 73.11 %
Headquarters 6 0.76 % 17 1.69 %
Total 786 1004
TABLE 23: THE AVERAGE NUMBER OF DAYS OFF
FOLLOWING AN OCCUPATIONAL ACCIDENT FELL IN 2010
2009 2010
Trainees 9 6
Logistics 11 7
Sales 13 11
Headquarters 13 13
Average days 11.5 9.25
2009 106
2010 78
Number
Facts and Figures
TABLE 24: THE NUMBER OF ‘WORRY LETTERS’ (FORMER-
LY KNOWN AS ‘SOS LETTERS’) FELL IN 2010
79

KIK SUSTAINABILITY REPORT 2010
11. Society
Cooperation
partner
Awaj Foundation
Awaj Foundation
GSS (Gonoshahajjo
Sangstha)
Phulki
Phulki
Phulki
CARE
Bangladesh
80
Project name Location Project description Details 2009 Details 2010
Basic medical
care
Health prevention
and advice
School project
Hygiene project
Employee-employer
dialogue
Children's daycare
centres
Health camps
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
Bangladesh
One doctor works at three
doctor's clinics to facilitate
affordable healthcare for
female workers in the textile
industry. Financial support
from KiK
Training and advising on
health and safety at work with
the aim of reducing the number
of accidents, promoting
the use of protective equipment,
training in first aid,
educating people about HIV
and raising overall awareness
overall. Costs for the training
programmes borne by KiK
Children from impoverished
areas offered school
education. Financial support
from KiK
Provision of sanitary napkins
and instruction on how to use
them to prevent infection
Improvement of working
conditions by encouraging
communication between
employees and management.
Financed by KiK
Employees' children aged
between 2 and 5 years old
are looked after by trained
caretakers and their development
is promoted. KiK
finances openings, rental
payments, procurement and
makes donations
Running of 40 health camps
for employees in the rug
production sites in Rangpur.
Health education and care,
advice on nutrition, family
planning, behavioural
training. Financed by KiK
Three doctor’s clinics, of
which two opened in 2008
1,000 female textile employees
were offered four
training units each
KiK provided support for
three schools
Two suppliers and all rug
production sites are participating
Nine employee-employer
dialogue meetings took place
Six child care centres financed
by KiK, approx. 60-70
children
Around 130 patients are treated
by each clinic each month
1,000 female textile employees
were offered four training units
each. An additional training
module on labour law was
offered.
By supporting six schools, a total
of 1,920 pupils were reached
Two suppliers and all rug
production sites are participating
A further three employee-
employer dialogue meetings
have been organised
Eight child care centres financed
by KiK, approx. 105 children
Project started in September
2010. The first healthcare centre
opened in January 2011
Heroes2 Reforestation China Reforestation project KiK assumed the costs of planting 5,000 trees annually
DKMS
Bone marrow
donation in
Germany
Germany
Registration of stem cell
donors among employees,
cost of registration assumed
by KiK
Approx. 270 registered stem cell
donors recorded among KiK
employees

Cooperation
partner
help & hope
Gesicht Zeigen!
e.V.
Pro Ruhrgebiet
Emission factors (country-specific)
Project name Location Project description Details 2009 Details 2010
Germany
Germany
Germany
Commitment to supporting
children in need at a national
and international level
Campaigns and initiatives to
counter racism and support
civil courage
Support for structural change
in the Ruhr area of Germany
by promoting culture, science
and sport
Financial support since 2001
Regular financial support since July 2007
Regular financial support since July 2007
Facts and Figures
Electricity 2010* g/kWh District heating** g/kWh
Germany 404 404
Austria 214 214
Slovakia 223 223
Slovenia 332 332
Czech Republic 527 527
Hungary 344 344
* 2009 is identical
** As no utility-specific data is available, electricity emissions factors have been selected to ensure consistency. The division of emissions from cogeneration
into heat and power is methodically inconclusive.
Emission factors (material specific)
Heating oil kg/litre 2.78
Gas kg/kWh 0.22
Natural gas (vehicles) kg/kg 3.27
Petrol kg/litre 2.15
Diesel kg/litre 2.78
Emission factors (by mode of transport)
Overseas g/tkm 13.66
Inland vessels g/tkm 15.66
Rail g/tkm 17.31
Air g/tkm 664.90
81

KIK SUSTAINABILITY REPORT 2010
GRI CONTENT INDEX
The KiK Textilien und Non-Food GmbH sustainability report is based on the guidelines of the Global Reporting Initiative (GR)
and fully meets the criteria of Application Level A.
In the following table, we make reference to the ‘Facts and figures’ section of this report plus its graphics, which provide information
about the various performance indicators. In addition, the table contains information or comments on those indicators
that have not explicitly been referenced in other parts of this report.
Strategy and analysis
1.1 Statement from the most senior decision-maker of the organization Complete Foreword by Stefan Heinig
1.2 Description of key impacts, risks, and opportunities Complete Foreword by Dr. Michael Arretz and section 2
Organization profile
2.1 Name of the organization Complete Section 1
2.2 Primary brands, products and/or services Complete Sections 1 and 5
2.3 Operational structure of the organization, including main divisions, locations of
operations, subsidiaries and joint ventures
82
Complete Section 1
2.4 Headquarters of the organization Complete Section 1
2.5
Number of countries in which the organization operates and the names of countries
in which key operating sites are based or which are particularly relevant to the sustainability
issues covered in the report
Complete
Sections 1 and 4
2.6 Ownership structure and legal form Complete Section 1
2,7 Markets served (including a breakdown by regions, industries and customer structure) Complete Section 1
2.8 Size of the reporting organisation Complete Section 1
2.9 Key changes in the organization's size, structure or ownership during the reporting
period
2.10 Awards received during the reporting period Complete Section 5
Report parameters
3.1 Reporting period (e.g. fiscal/calendar year) for information provided Complete About this report
Complete There were no such changes during the reporting period
3.2 Publication of the most recent previous report, if any Complete There was no previous report
3.3 Reporting cycle Complete About this report
3.4 Contact for questions about the report or its contents Complete See ‘About this publication’ and the foreword from Dr. Arretz
3.5 Process for defining report content Complete About this report
3.6 Boundary of the report Complete About this report
3.7 Specific limitations on the scope or boundary of the report Complete About this report
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities and outsourced
operations and other entities that can significantly affect comparability from period to
period and/or between organizations
3.9 Basis for capturing and calculating data used as indicators and other information in
the report, including the assumptions and techniques underlying estimates
Complete
KiK and its subsidiary KiK Logistik I GmbH are active in no joint ventures, do not
lease plant or outsource activities or other units
Partially complete Appendix: overview of external sources
3.10 Explanation of the effect of any re-statements of information Complete With this document we are reporting on sustainability for the first time
3.11 Significant changes from previous reporting periods in reporting scope, boundary, or
measurement methods
Complete With this document we are reporting on sustainability for the first time
3.12 Table identifying the location of the standard disclosures in the report Complete Appendix: indicator protocol/list of contents
3.13 Policy and current practice with regard to confirmation of the report by a third party Complete Appendix: independent auditors’ report

Governance, commitments and engagement
4.1 Management structure of the organization Complete Sections 1 and 2
4.2 Information as to whether the chairman of the highest governance body is also the
managing director
4.3 Number of members of the highest governance bodies who are independent or do not
have a seat on the board
4.4 Mechanisms for shareholders and employees to provide recommendations or direction
to the highest governance body
4.5
4.6
4.7
4.8
4.9
Link between compensation for members of the highest governance body, senior
managers, and executives (including gratuities), and the organization’s performance
(including social and environmental performance)
Processes in place for the highest governance body to ensure conflicts of interest
are avoided
Process for determining the qualifications and expertise of the members of the highest
governance body for guiding the organization’s strategy on economic, environmental,
and social topics
Internally developed statements of mission or values, codes of conduct, and principles
relevant to economic, environmental, and social performance and the status of
their implementation
Procedures of the highest governance body for overseeing the organization’s
identification and management of economic, environmental, and social performance,
including relevant risks and opportunities, and adherence or compliance with internationally
agreed standards, codes of conduct, and principles
4.10 Procedure for highest governing body to evaluate its own performance, in particular
with regard to its economic, environmental and social performance
4.11 Statement as to whether and how the organization takes precautionary measures to
reduce its environmental impact
4.12
4.13
Externally developed economic, environmental and social arrangements, principles
or other initiatives that the organization has signed up to, agreed to or where the
organization is represented
Membership in associations and/or national/international interest groups where
the organization a) plays a leading role in office b) participates in projects or sits on
committees c) makes significant financial contributions , above and beyond regular
member contributions or d) the membership has some special strategic importance
for the organization
Complete Section 1
GRI CONTENT INDEX
Complete Section 1. There are no independent members of the highest management
bodies.
Complete Sections 1 and 7
Complete
Complete
Complete
Complete
Complete
Remuneration is at the standard market levels, contains variable aspects,
takes into account individual performance and the success of the company.
No differentiation is made as yet between business, social and environmental
performance.
As the company is at least part-owned by its senior management, there are no
conflicts of interest as referred to here. Votes are conducted among the board
and co-owners.
All board members must have sufficient professional experience. A separate
management committee for CSR ensures that strategy is guided in the areas of
the environment and social responsibility.
Sections 2, 4 and 5
Sections 2 and 4
Complete Such a procedure does not exist
Partially complete Sections 4, 5 and 6
Partially complete Sections 2 and 6
Complete
4.14 List of the various stakeholder groups involved by the organization Partially complete Section 3
4.15 Basis for selecting stakeholders that should be involved Partially complete Section 3
4.16 Approaches for stakeholder inclusion, including frequency of inclusion by type and
stakeholder group
4.17 Significant questions and issues raised by stakeholder inclusion and information as to
how the organization responded to these, including within the scope of reporting
Management approach
Partially complete Section 3
Complete Section 3
In ‘Facts and figures’. The company's membership of HDE and BGCCI are both
of strategic importance. KiK sits on the project committees for environment,
communications, staff development and HR. These involve neither a leading role
in office nor significant financial contributions.
All management approaches are explained in section two, across all strategic areas of action. Targets and initiatives in these areas of action are described in detail in sections 4-7.
Economic performance indicators
EC1
Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments, retained
earnings, and payments to capital providers and governments (taxes)
EC2 Financial implications of climate change for the organization’s activities, and other
risks and opportunities associated with climate change
EC3
Coverage of the organization’s defined benefit plan obligations
Partially complete Section 1 plus ‘Facts and figures’
Complete Section 6. An estimate of the consequences of climate change taking into
account financial aspects has not been made.
Partially complete
KiK has operated a company pension plan since 2004. Since July 2011, KiK has
also increased its monthly contributions by 10%. The initiative is mentioned in
section 7 of this report.
EC4 Significant financial assistance received from government Complete No financial assistance of this kind was received during the reporting period.
83

KIK SUSTAINABILITY REPORT 2010
EC5
EC6
84
Range standard entry level wage compared to local minimum wage at significant
locations of operation
Business policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation
EC7 Procedures for local recruitment and proportion of senior management hired from the
local community at significant locations of operation
EC8 Development and impact of infrastructure investments and services provided primarily
for public benefit through commercial, in-kind, or pro bono engagement
EC9 Understanding and description of the type and scope of significant indirect economic
impacts
Environmental performance indicators
EN1
Materials used by weight or volume
Complete
Complete
The European headquarters and all subsidiaries of KiK Textilien und Non-Food
GmbH are all considered key business sites. All employees in our German
stores receive a basic wage, all employees in Austria are paid according to the
applicable tariff and come under collective agreements. In all other European
subsidiaries, at least the applicable legal minimum wage is paid.
There is no express business policy in respect of the selection of local suppliers
from the direct surroundings of our key business sites and corresponding
expenditure has not been recorded separately.
Complete At all our key business sites, we employ mainly local people/people from the
region. In recruitment, precedence is given to motivation and qualifications.
Partially complete Sections 6 and 7, plus ‘Facts and figures’
Complete Sections 2, 3, 4 and 5
Complete
Sections 4 and 5, plus ‘Facts and figures’. The total weight of the materials
used is only recorded for packaging. In packaging, we do not yet use recycled
materials.
EN2 Percentage of materials used that are recycled materials Complete In ‘Facts and figures’. Recycled material is only used in office materials, paper
products and marketing materials
EN3 Direct energy consumption by primary energy source Complete In ‘Facts and figures’
EN4 Indirect energy consumption by primary source Complete In ‘Facts and figures’
EN5
Energy saved due to environmentally-aware usage and efficiency improvements
EN6 Initiatives to provide energy-efficient or renewable-energy based products and services,
and reductions in energy requirements as a result of these initiatives
Complete
Complete Section 4
EN7 Initiatives to reduce indirect energy consumption and reductions achieved Complete Section 6
During the reporting period, no data was gathered about energy saving
initiatives and information on energy savings can therefore not be included in
this report. This data will be recorded starting from 2011 and included in the
next report.
EN8 Total water usage by source Complete In ‘Facts and figures’. All key business sites are connected to the public water
supply network. Our sources are therefore local municipal water companies.
EN9 Water sources significantly affected by water usage Complete No enquiries were made into the sources of the respective water suppliers at our
key business sites.
EN10
EN11
Percentage and total volume of water recycled and reused
Location and size of land in or bordering protected areas, or in or near to areas of high
biodiversity value
EN12 Description of significant impacts of activities, products, and services on biodiversity
in protected areas and areas of high biodiversity value outside protected areas
Complete
Complete
EN13 Habitats protected or restored Complete Sections 4 and 6
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
EN15 Number of IUCN Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk
At our key business sites, household-like waste water is produced which is
channelled to the public sewage system. No water is therefore reclaimed or
reused.
None of the buildings used by KiK at its key business sites are located in or
on plots bordering protected areas. Only the site of our European headquarters
and central warehouse are located in a water protection area, of the lowest
grade. This has no consequences for our operations.
Complete None of the buildings used by KiK at its key business sites are located on plots
adjacent to protected areas.
Complete
For our key business sites, in the reporting period there was no strategic
management of the effects on biodiversity. In 2011, an initiative was introduced
on the grounds of our European head office.
Complete No species are threatened by our key business sites that are on the IUCN Red
List or other national lists.
EN16 Total direct and indirect greenhouse gas emissions by weight Complete Sections 5 and 6, plus ‘Facts and figures’
EN17 Other relevant indirect greenhouse gas emissions by weight Complete In ‘Facts and figures’
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Complete In ‘Facts and figures’
EN19 Emissions of ozone-harmful substances by weight Complete We have no emissions of this type
EN20 NOx, SO 2 , and other significant air emissions by type and weight Complete These air emissions have not been recorded during this reporting period, but
will be taken into account in our 2011 calculations.
EN21 Total water discharge by quality and destination Complete Waste water produced by all our key business sites is channelled towards public
sewage systems.

GRI CONTENT INDEX
EN22 Total weight of waste by type and disposal method Complete A breakdown of waste is being undertaken for our key business sites and a
uniform waste balance sheet prepared which will be included in our next report.
EN23 Total number and volume of significant environmentally-harmful releases Complete No major substance releases are caused by the trading activities of KiK.
EN24
EN25
Weight of transported, imported, exported, or treated waste deemed hazardous under
the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of waste
transported internationally
Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organization’s discharges of water and
runoff
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of
impact mitigation
EN27
Percentage of products sold and their packaging materials that are reclaimed by
category
EN28 Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with environmental laws and regulations
EN29
Significant environmental impacts of transporting products and other goods and
materials used for the organization’s operations, and transporting members of the
workforce
Complete
Complete
No waste of this type was produced during the reporting period.
There are no concerns of this type.
Complete Section 5 plus ‘Facts and figures’
Complete
The textiles sold by KiK are mostly sold without packaging. In our non-food
ranges, we take care to use as little packaging as possible. The small amount of
packaging we receive back is not recorded separately.
Complete No fines were incurred during the reporting period for such violations.
Complete
Section 5 plus ‘Facts and figures’. Only CO 2 emissions are currently accounted
for when calculating the environmental impact of transport. In 2011, the scope
will be extended to include NOx, SO 2 and particulates, and business trips will
also be included.
EN30 Total environmental protection expenditures and investments by type Complete Our environmental protection expenditure is not fully recorded across all
relevant departments.
Employment practices and the working environment
LA1 Total workforce by employment type, employment contract and region Partially complete Sections 1 and 7, plus ‘Facts and figures’
LA2
Total staff turnover and as a percentage by age, gender and region
LA3 Benefits provided to full-time employees that are not provided to temporary or parttime
employees, by major operations
Complete
Section 7, plus ‘Facts and figures’. A breakdown of staff turnover by age , sex
or region would provide us with no learnings relevant to our HR strategy and is
therefore not performed.
Complete Section 7. Occupational benefits are not broken down by operating site/type of
employment.
LA4 Percentage of employees covered by collective bargaining agreements Complete In our Austrian subsidiary, all employees are covered by collective agreements.
This corresponds to 6.96% of our total workforce.
LA5 Minimum notice period(s) regarding operational changes, including whether this is
specified in collective agreements
LA6
LA7
LA8
Percentage of workforce represented in formal joint management–worker health and
safety committees that help monitor and advise on occupational health and safety
programmes
Injury, occupational illness, lost days, and absenteeism, and number of work-related
fatalities by region
Education, training, counselling, prevention, and risk-control programmes in place to
help staff, their families or members of the local community with serious illnesses
Complete Section 7. Neither notice periods nor channels of information are established in
the collective agreement.
Complete
Partially complete
Complete
84.9% of our workforce is represented in health and safety committees.
In Germany, the area of health and safety is governed by law and applied
correspondingly by KiK. For subsidiaries, the same is true, taking into account
the respective national laws. The implementation and maintenance of legally
prescribed health and safety programmes is managed by external specialists in
our subsidiaries.
In ‘Facts and figures’. The information relates to our key business sites and is not
broken down by region. No work-related deaths occurred during the reporting
period.
The following tests are offered to our employees at European headquarters and
the central warehouse: test G37 computer eye strain, test G25 driving and operating
machinery, training in hazardous substances for laboratory workers, test
G40.5 - blood test for laboratory workers. Training for employees in procurement
in respect of travel vaccinations.
LA9 Health and safety topics covered in formal agreements with trade unions Complete Health and safety issues are not dealt with under such agreements.
LA10
LA11
Average number of training hours by employee category per year
Programmes for knowledge and skills management and lifelong learning that support
the continued employability of employees and also assist them when it comes to
leaving the company
LA12 Percentage of employees receiving regular performance and career development
reviews
LA13 Composition of governing bodies and breakdown of employees per category according
to gender, age, ethnic minority and other indicators of diversity
LA14 Relationship between the basic salary of male staff to that of female staff, by employee
category
Complete
Partially complete Section 7
In 2010, full-time staff in Germany received an average 14 hours of training. The
number of trainees was 1,602, not counting interns. These were trained full time
for 40 hours a week, resulting in an average number of hours of 2,232 in 2010.
Complete Each employee has one performance review a year with their immediate
superior. This includes the agreement of a development plan.
Partially complete Section 7, plus ‘Facts and figures’. Employees are broken down by gender only.
Complete There is no difference in pay on the basis of gender.
85

KIK SUSTAINABILITY REPORT 2010
Human rights
HR1 Percentage and total number of significant investment agreements that include human
rights clauses or that have undergone human rights screening
HR2 Percentage of significant suppliers and contractors that have undergone screening on
human rights and actions taken
HR3
HR4
HR5
86
Total hours of employee training on policies and procedures concerning aspects
of human rights that are relevant to operations, including the percentage of total
employees trained
Total number of incidents of discrimination and actions taken
Operations identified in which the right to exercise freedom of association and collective
bargaining may be at significant risk, and actions taken to support these rights
HR6 Operations identified as having significant risk for incidents of child labour, and
measures taken to contribute to the elimination of child labour
HR7 Operations identified as having significant risk for incidents of forced or compulsory
labour, and measures to contribute to the elimination of forced or compulsory labour
HR8 Percentage of security personnel trained in the organization’s policies or procedures
concerning aspects of human rights that are relevant to operations
HR9 Total number of incidents involving a violation of the rights of indigenous people and
actions taken.
Society
SO1
SO2
SO3
SO4
Nature, scope, and effectiveness of any programmes and practices that assess and
manage the impacts of operations on communities, including the entry, implementation
and exit of business operations in an area
Percentage and total number of business units analyzed for risks related to corruption
Percentage of employees trained in organization’s anti-corruption policies and
procedures
Actions taken in response to incidents of corruption
Complete During the reporting period, there were no such investment agreements.
Complete In ‘Facts and figures’, plus section 4
Partially complete
Partially complete
Partially complete
Complete Section 4
Complete Section 4
In 2010, 9.4% of employees in administration received training on human rights,
corresponding to 85.5 hours in total.
Section 4, plus ‘Facts and figures’. Incidents of discrimination are recorded at
supplier level through audits. No incidents of discrimination were reported at our
key business sites during the reporting period.
Sections 4 and 7, plus ‘Facts and figures’. Employee representation is captured
at a supplier level during audits. KiK has a works' council in its subsidiary KiK
Logistik, as well as works' councils in its Austrian subsidiaries.
Complete KiK does not employ its own security personnel.
Complete There were no incidents of this type during the reporting period.
Partially complete Section 5, plus ‘Facts and figures’
Complete
Partially complete
Complete
SO5 Political positions and participation in political decision-making and lobbying Complete KiK is not active in this area.
SO6 Total value of financial and value-in-kind contributions to political parties, politicians,
and related institutions by country
SO7
SO8
Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices and their outcomes
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
The issue of corruption in the sense of accepting payments from other
business partners is governed contractually with all employees working in
procurement. All individual business divisions are systematically checked, on
average every four years, by external auditors and KiK's Audit department.
In addition, our companies abroad and in Germany are checked annually by
appropriate external auditors.
All employees in the Audit department possess specialist knowledge on the
issue of corruption, obtained from specialist literature or training. This specialist
knowledge is applied in the fields of activity concerned and also passed on to
management personnel in their area of responsibility.
The acceptance of payments worth over 50 euros given by superiors or management
as a gift and thus approved is permitted. All other incentives to which
this rule does not apply lead to prompt termination of the employment contract
and claims for compensation, where applicable. No cases of corruption were
reported during the reporting period.
Complete KiK donates neither to parties nor political institutions.
Complete
Partially complete
During the reporting period, one complaint was made on account of design
patent violation, one on account of copyright violation and one regarding an
infringement of trademark rights. No information is provided on the outcome of
these complaints.
During the reporting period, a fine was paid to the Unna office due to the placing
on the market of potentially harmful materials. No information is given as to the
monetary value of that fine.

Product responsibility
PR1
PR2
Stages over the lifecycle of a product or service in which its assessed whether their
impact on health and safety can be improved, and percentage of total products and
services categories subject to such procedures
Total number of incidents of non-compliance with regulations and voluntary codes
of conduct concerning health and safety impacts of products and services, by type
of outcome
PR3 Type of product and service information required by law, and percentage of significant
products and services subject to such information requirements
PR4
PR5
PR6
PR7
Total number of incidents of non-compliance with regulations and voluntary codes
of conduct concerning product and service information and labelling, by type of
outcome
Practices related to customer satisfaction, including results of surveys measuring
customer satisfaction
Programmes for ensuring compliance with laws, standards and voluntary codes of
conduct related to marketing communications, including advertising, promotion and
sponsorship
Total number of incidents of non-compliance with regulations and voluntary codes
of conduct around marketing communications, including advertising, promotion and
sponsorship, by type of outcomes
PR8 Total number of substantiated complaints regarding breaches of customer data
protection and the loss of such data
PR9 Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services
Complete
Partially complete
Complete Sections 2 and 5
Section 5, plus ‘Facts and figures’
GRI CONTENT INDEX
During the reporting period, there were 38 product recalls in Europe. In Germany,
nine new products were recalled in 2009 and three in 2010.
Partially complete During the reporting period, there were 24 incidents.
Partially complete
Complete
Complete
A customer survey is conducted in our stores once a year, as well as a daily
evaluation of our Brand Index. In addition, the Customer Service department
deals with problems and enquiries from KiK customers on a daily basis.
Customer Service can be contacted by phone, via the online form on the KiK
website or by mail.
Such programmes do not exist. A voluntary undertaking in respect of advertising
is to be developed by 2012.
There were no such incidents during the reporting period.
Complete There were no such complaints during the reporting period.
Complete The value of fines is not given. Please see the note against performance
indicator SO8.
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KIK SUSTAINABILTY REPORT 2010
GLOSSARY
Million seller Product range with annual sales of more than 1 million
Audit Announced review of factories by accredited, independent, external auditing company covering social and environmental aspects, based on the requirements of
the KiK Code of Conduct
B.A.U.M. e.V. Bundesdeutscher Arbeitskreis für umweltbewusstes Management e.V. With a current total of over 500 members, B.A.U.M. e.V. is the largest business environmental
initiative in Europe.
Organic blend cotton Mix of organic and standard cotton
Organic cotton Cotton awarded the seal of the Global Organic Textile Standard (GOTS)
Blue Angel Blue Angel (Blauer Engel) is a quality seal for products and services that are environmentally friendly. It was introduced in 1978.
BSCI The Business Social Compliance Initiative (BSCI) is a non-profit organisation based in Brussels which works to improve social standards in the worldwide retail
supply chain.
CAPA Corrective plan in which all findings of an audit are entered and an appropriate timeframe for action is set. Based on this corrective plan, which is constantly updated
by the agencies, the CSR department subsequently checks the further development of the supplier.
CARE Bangladesh CARE Bangladesh is a Bengali non-profit organisation which provides development and emergency aid. It belongs to the CARE International network.
CARE Deutschland-Luxemburg e.V. CARE Deutschland-Luxemburg e.V. is a German NGO which provides development and emergency aid, worldwide. Together with eleven sister organisations, it
forms part of the CARE International network, the general secretariat of which is based in Switzerland
CARE International The Cooperative for Assistance and Relief Everywhere is among the largest aid organisations currently operating, with a presence in many countries and with many
regional offices.
Chain of Custody Product chain
Code of Conduct
88
KiK has developed an internationally applicable Code of Conduct, which corresponds to the code of conduct of the Business Social Compliance Initiative (BSCI)
and is guided by the internationally accepted SA8000 standard of Social Accountability International (SAI). It contains all the standard conventions of the International
Labour Organization (ILO), ensuring that working guidelines drawn up by KiK are applicable everywhere.
Corporate Social Responsibility Describes the activities of companies, other organisations and institutions that voluntarily assume social responsibility beyond the degree that they are required to
by law.
CSI Consulting Service International (CSI) is a consultancy with which KiK has been working for some years now in the area of supplier certification.
DKMS DKMS Deutsche Knochenmarkspenderdatei gemeinnützige Gesellschaft mbH was founded over 20 years ago, with the aim of identifying cell stem donors for
leukaemia patients.
ECOFYS GmbH ECOFYS Germany GmbH is an independent consultancy that works across Europe with experts in verifying greenhouse gases in European emissions trading.
Ergee Austrian hosiery brand popular across Europe. At the beginning of 2009, clothing discounter KiK acquired this well-established brand.
FSC
The Forest Stewardship Council (FSC) is an international, independent, non-governmental and non-profit organization. The FSC label certifies that wood or paper
products originate from responsibly managed forests. Products certified by the FSC are guaranteed to have come from woods managed in accordance with the
social, economic and ecological needs of the generations of today and tomorrow.
GoGreen Environmentally friendly shipping service offered by DHL, where associated CO 2 emissions are calculated according to a procedure based on the principles of the
ISO 14064 standard. In line with the terms of the Kyoto Protocol, these emissions are balanced out by environmental protection projects.
Gold Standard Award The Gold Standard Award is a prize for exemplary PR work in Asia. It is awarded in 11 categories by the association Public Affairs Asia.
GOTS
The Global Organic Textile Standard (GOTS) seal guarantees that, with garments made from natural fibres (e.g. cotton, linen, silk) and throughout the entire production
chain, no hazardous chemicals are used in fibre preparation and garment finishing. The social standards of the International Labour Organization (ILO) are
taken as minimum requirements.
GreenBuilding European Commission programme to improve energy efficiency and the use of renewable energies in non-residential buildings.
Greenhouse Gas Protocol (GHG Protocol) The Greenhouse Gas Protocol is an internationally recognised tool for quantifying and managing greenhouse gas emissions. It lays down specifications for
organisation-wide calculations of greenhouse gas emissions and for the implementation of projects to reduce emissions.
Handelsverband Deutschland (HDE)
Handelsverband Deutschland e.V. - Der Einzelhandel (HDE) is the leading organisation of the German retail trade for around 400,000 independent companies with
a total of 2.9 million employees and annual sales of over 400 billion euros. As an employer and trade association, it represents the interests of the retail industry in
Germany and the European Union.
help and hope Stiftung Since it was founded in 2005, the help and hope foundation has dedicated itself to aiding children in need at a national and international level. Its aim, through
support programmes for socially disadvantaged children, is to help them to help themselves and give them the promise of the life they themselves want.
Heroes2 Heroes2 is a non-profit organisation which, working together with the Guangdong Academy of Forestry, introduced a reforestation programme. The goal is to
ensure the sustainable planting of forests based on environmental criteria.
ILO The International Labour Organization is a UN specialized agency tasked with promoting social justice, as well as human and labour rights.
Karl Kaus Stiftung Non-profit foundation for the protection of wild animals and sustainable protection of their habitat
NGO Non-governmental organisation - association dedicated to social and environmental intervention
Non-food products Our non-food range consists of party goods, cleaning materials, accessories, decorations, household products, home textiles, food, toys, writing materials, petcare
and drugstore products.
DIN EN ISO 14001:2009 standard International environmental standard for companies and organisations. The ISO combines efficiency with environmental protection. ISO 14001 helps in the setting up
of an effective environmental management system.
DIN EN ISO 14040:2006 standard Principles and general requirements for an environmental balance sheet
DIN EN ISO 14044:2006 standard Summary of ISO 14040 to ISO 14043 in ISO 14044
NOS Never out of stock - products that are a constant feature of our range
Oeko-Tex® standard 100
The Oeko-Tex® standard 100 is a consistent, worldwide testing and certification system for raw, intermediate and final textile products, across all stages of manufacture.
The hazardous substance tests cover substances regulated and forbidden by law, chemicals that are hazardous to the health and parameters in respect of
healthcare.
PAS 2050:2008 PAS 2050 is the first standard of this kind and was produced by the BSI Group (a British standards and regulations body) and Defra (the UK’s Department for
Environment, Food and Rural Affairs).
Pre-scan A pre-scan is a prior check conducted on a supplier before a first order is placed. It is carried out by specially trained employees of an agency. Social standards in
the production facilities are checked, based on a checklist.
Product carbon footprint The product carbon footprint refers to the greenhouse gas emissions produced throughout a product's entire lifecycle for a defined use and in a defined usage unit
Products, that help Environmentally optimised products; all income derived from their sale is channelled exclusively into social and environmental support projects.
Public Affairs Asia Asian press association

GLOSSARY/ABBREVIATIONS/EXTERNAL SOURCES
Quick scan The checking of production facilities in respect of social and environmental aspects, based on the requirements of the KiK Code of Conduct.
Re-audit Unannounced check conducted at regular intervals on the performance of a supplier. The re-audit checks whether points for improvement from the first audit are
being addressed and records current social and environmental performance.
ROBIN WOOD ROBIN WOOD e.V. Gewaltfreie Aktionsgemeinschaft für Natur und Umwelt is a German environmental and nature protection organisation.
SA8000 SA8000 is an international standard that has the goal of improving the working conditions of employees.
SAI Social Accountability International (SAI) is an international NGO based in New York (US).
Smart meter An intelligent energy meter that shows the actual energy consumption of the relevant user and at what time it was used.
STR Inc. STR Inc. (Specialised Technology Resources): independent auditing institute
Sustainable products Sustainable economically, ecologically and socially
Systain Consulting GmbH Consultancy specialising in Corporate Social Responsibility
TOXPROOF TOXPROOF certificate meaning that a product has been tested for the absence of hazardous substances by TÜV Rheinland
Greenhouse gas Greenhouse gases are gaseous substances in the air that influence radiation, contribute to the greenhouse effect and can have both a natural and an anthropogenic
origin.
TÜV Nord Cert GmbH The certification company TÜV NORD CERT assesses and certifies that legal regulations and voluntary standards are being met.
TÜV Rheinland The TÜV Rheinland group is a leading international services company that works to ensure safe and sustainable solutions in terms of people, the environment and
technology.
Environmental audit Complete audit including the testing and monitoring of waste water disposal, operating material consumption and waste disposal.
Environmentally friendly product All products that have been optimised in terms of hazardous substances, use of raw materials and resource and/or in terms of production-related emissions.
ABBREVIATIONS
BGCCI Bangladesh German Chamber of Commerce and Industry
CO 2 e emissions Carbon dioxide equivalents (greenhouse gas) emissions
ct Cent
d. PE Direct primary energy
g Gram
GRI Global Reporting Initiative
IUCN International Union of Conservation of Nature
i. PE Indirect primary energy
kg Kilogram
km Kilometre
kt Kilotonne
kWh Kilowatt hour
m 2 Square metre
m 3 Cubic metre
m Million
bn Billion
MWh Megawatt hour
NOx Nitrous oxide
SO 2
t ton
Sulphur dioxide
EXTERNAL SOURCES
CSI Market report
Product Carbon Footprint Jeans
Tengelmann Energie Emissions report 2009
Emissions report 2010
‘GRI performance indicators’ handout for KiK overall
‘GRI performance indicators’ handout for KiK Germany
Product Carbon Footprint: patchwork rugs
KiK Environmental management system
Code of Conduct
CSR brochure
89

KIK SUSTAINABILITY REPORT 2010
Awarded an A+
The development of our first sustainability report has been led by a desire to provide openness and transparency. A key indicator of
this is the independent verification of the report’s contents, a task for which we commissioned two prestigious consultants. As part
of their audit of the report, they evaluated compliance with the guidelines formulated by the Global Reporting Initiative. The results
were detailed in an extremely comprehensive, critical review, and are summarized in the following general assessment. You can
read the full critical review online at www.kik-textilien.com. In light of the balance struck between fully reported and partially reported
indicators, the independent consultants found that the report satisfies the requirements of GRI Application Level A+.
90
General
KiK Textilen und Non-Food GmbH has produced its 2010 sustainability report in-house. This sustainability report is the
first to be presented by KiK Textilien und Non-Food GmbH. Dr. Christian Gressner of fjol GmbH, Münster, and Dr. Ulrike
Eberle of corsus – corporate sustainability, Hamburg have been asked to critically evaluate the report. They have conducted
their review based on the G3 guidelines for sustainability reporting of the Global Reporting Initiative (GRI).
With a particular view to facilitating comparison, this KiK GmbH sustainability report has been compiled according to
the specifications of the GRI 3.0 guidelines. Checking the accuracy of the primary data collected by KiK did not form part
of the critical review.
Any suggestions from the reviewers as to how the report might be improved will be incorporated in future editions. In
particular, these suggestions had to do with the make-up of the report, precise presentation of facts and coverage of the
GRI indicators.
The following areas have been identified as having room for improvement: it would be good, in the next report, to close
any small gaps that may exist in reporting on indicators, specifically social indicators. Furthermore, the relevant target
year must be stated for all quantitative goals. However, on the whole, the report satisfies the criteria:
• Relevance: Within the legal boundaries of the report, information is given on the environmental impact of business
operations. Actions and measures for issues identified as relevant have been developed.
• Completeness: All management strategies and all 121 GRI indicators are reported, 99 of them in full and 22 of them
partially.
• Consistency: Definition of the four ‘action areas’ in the context of sustainability is clear and conclusive. The accompa-
nying measures/actions and KiK’s strategic goals appear to be consistent.
• Accuracy: The indicators are largely reported on accurately.
• Transparency: The report is transparent and inherently consistent.
A sustainability report documents a company’s own view of what is a learning process. Against this background, the
representation of stakeholder management is key to successful sustainability reporting. It is important to take a step-bystep
approach in convincing critics of the credibility of one’s commitment to sustainability and to involve these groups in
future strategy development.
In this context, this publication can be considered a good, committed and ambitious first report, which deals extensively
with the controversy around discount clothing and KiK’s responses. The environmental protection goals and development
of premium suppliers, such as those in Bangladesh, are to be particularly commended.
Dr. Ulrike Eberle
corsus – corporate sustainability, Hamburg
www.corsus.de
Dr. Christian Geßner
fjol GmbH, Münster
www. fjol.de.

KiK Textilien und Non-Food GmbH
Siemensstrasse 21
59199 Bönen
Germany