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METRO GROUP : ANNUAL REPORT 2010 : BUSINESS → GROUP MANAGEMENT REPORT : 7. SUSTAINABILIT y MANAGEMENT Michael wiedmann, head of Corporate Relations/International Politics Advisory members Peter wübben, head of Corporate Communications of METRO AG/METRO Group Asset Management Albrecht von Truchsess, head of Corporate Communications of Real Sven Jacobsen, head of Corporate Communications of Media-Saturn-Group Stefanie Grüter, head of Corporate Communications of Galeria Kaufhof “Go sustainable 2012”, our sustainability strategy, is based on four pillars: → Quality, health and the environment → Energy and resource management → Employees and social affairs → Social policies and stakeholder dialogue A working group that develops the concepts and prepares the decisions of the Sustainability Board is responsible for each of these strategic topics. The representatives of the sales divisions ensure that the measures have practical relevance and are stringently incorporated into daily business practices. They comment on the concepts developed by the working groups and propose solutions. In addition, they report project progress and provide the data needed to track the Company’s sustainability performance. quality, health and the environment In addition to brand products, we offer our customers a large number of high-quality own-brand products. we are directly responsible for these products. This means, amongst other things, that we assume responsibility for quality assurance. In close consultation and dialogue with the manufacturers, METRO GROUP determines the product features and package design for its own-brand products. Because the supply chains used in retailing and the products themselves are becoming more and more complex, some of the biggest challenges for an international retail and wholesale company like METRO GROUP include tracing raw materials and documenting the processing steps along the value chain. The international quality standards of the Global Food Safety Initiative (GFSI), such as GLOBALGAP and IFS, play a central role in auditing the suppliers who process food for the own- → p. 106 brand products of METRO GROUP. The objective of the standards is to strengthen consumer trust in the agricultural production of foods. This is to be achieved by reducing the environmentally damaging impacts of farming, decreasing the use of medications and chemical plant protection products and taking steps to ensure the safety and health of humans and animals. 100 percent of the suppliers of fruit and vegetable own-brand products in Germany fulfil the GLOBALGAP standard. Supplier training expanded further Local producers and growers are important partners for us. After all, we obtain up to 90 percent of the food products in our stores and outlets from local producers. In numerous countries, we help local suppliers to produce in accordance with internationally accepted standards of the Global Food Safety Initiative (GFSI). The fundamental goals of the supplier qualification programme are to ensure the long-term supply of high-quality goods to stores, promote the local economy and create strong business relationships with producers and growers. within the context of a strategic partnership with the United Nations Industrial development Organisation (UNIdO), we train local producers in food safety and hygiene issues. we designed these measures to help boost the volume of marketable goods and improve growers’ incomes. Following the launch of the first such project in Egypt in 2009, we held talks with UNIdO in autumn 2010 about expanding the programme to Russia and vietnam. By the end of 2010, we had trained more than 60 suppliers in Egypt in the area of food safety. Detailed information on fishing zones facilitates the sustainable procurement of fish As one of Europe’s largest retailers of fish, METRO GROUP provides consumers and such commercial customers as hotel and restaurant owners with a broad assortment of fish. To ensure that we can continue to offer this service in the future we are actively working to preserve marine diversity. At the same time, this approach enables us to ensure future sales. Since the beginning of 2010, we have supported the project “Fish stocks online” to improve the availability of data on the status of endangered fish stocks and to more systematically procure fish that have been caught in a sustainable way. For the first time, this comprehensive central information system provides detailed data on the status of commercial fish populations. The websites www.fischinfo.de
METRO GROUP : ANNUAL REPORT 2010 : BUSINESS → GROUP MANAGEMENT REPORT : 7. SUSTAINABILIT y MANAGEMENT and www.portal-fischerei.de provide retailers and consumers with decision-making assistance to gear fish purchases to sustainability criteria. The fish database is to be continuously expanded in the coming years. By the end of 2012, around 130 fish stocks relevant to the German market from more than 30 species around the world will be described in the database. we intend to gradually instruct fish buyers in the use of the fish stock database. The project was initiated by retail and wholesale companies and the fish industry in cooperation with the Ministry of Consumer Protection. Metro Cash & Carry opens fish logistics centre To combine sustainable logistics with the demand for premium quality, Metro Cash & Carry opened a fish logistics centre in Gross-Gerau near Frankfurt am Main, Germany, in the reporting year. Thanks to its central location in Europe and its proximity to Frankfurt Airport, this platform is an ideal consolidation and distribution point for fresh fish. Concentrating the flow of goods near the airport reduces both delivery time for the highly sensitive products and logistics costs. For cash & carry customers, this means extra freshness and higher quality when purchasing fish because all types of fish are available in the wholesale stores within 48 hours of being caught. In designing the fish logistics centre, we strictly adhered to sustainability criteria. The logistics hub sources part of its power from self-generated wind energy and uses climate-friendly technology for cooling and outdoor lighting. The building design, the platform and all of the workflows were awarded the silver status for temperature-controlled real estate of the German Quality Seal for Sustainable Building. This extensive assessment system for sustainable buildings was developed by the German Ministry of Transport, Building and Urban development (BMvBS) and the German Sustainable Building Council (dGNB). Energy and resource management Every day, METRO GROUP provides millions of people across the world with high-quality food products and consumer goods. Because energy and other resources that are important to the supply chain are becoming scarce and expensive, energy-efficient and resource-conserving business practices are a central pillar of our sustainability management. As the global economy began recovering during the reporting year, energy costs also started to rise noticeably again. To counter these increases and reduce the environ- → p. 107 mental impact of their stores and operations, the sales divisions stepped up their energy management activities. Smart metering: increased transparency thanks to digital electricity meters Solid data are needed to be able to make exact plans and to implement cost-saving and efficiency measures. The sales divisions are increasingly employing digital electricity meters known as smart metering systems as a means of precisely measuring the energy consumption of their stores and operations. At the end of 2010, smart metering systems were available at more than 700 Metro locations in Germany and Poland. The advantage of smart metering systems is, in particular, the continuous and accurate recording of the actual electricity and gas consumption. The sales divisions receive location-specific user profiles that enable them to use energy more consciously and efficiently. with the aid of the digital electricity meters, for example, inefficient equipment can be identified and replaced by energy-saving equipment. In 2010, Media Markt and Saturn pressed ahead with installing smart metering systems in all national subsidiaries of the sales divisions. we intend to install digital electricity meters in all stores and operations by the end of 2011 in order to be able to accurately measure global energy consumption. Efficient and environmentally friendly control of the flow of goods Energy consumption and carbon footprints can also be reduced during the transport of goods. To ensure that the right good reaches the right place at the right time, METRO GROUP needs a logistics network that is both complex and flexible. we want to make logistics processes as cost- and resource-efficient as possible. Since 2010, we have been one of the first retail and wholesale companies able to calculate the carbon footprint of our complete transport processes in Germany, Austria and Switzerland. For this purpose, MGL METRO GROUP Logistics, together with a consultancy firm, designed a CO 2 tool that measures the carbon emissions. The cutting-edge feature of this tool is that it enables MGL METRO GROUP Logistics to not only measure the carbon emissions produced by its own vehicles, as was the case before, but to also gather data on all trips conducted by logistics companies working for MGL. To ensure that the results can be compared with other companies, MGL METRO GROUP Logistics had the measuring
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