United Nations Global Compact Communication on Progress 2013/14

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Being a member of the United Nations Global Compact – the world’s largest initiative for corporate responsibility – helps METRO GROUP to firmly embed sustainability in its company strategy. As well as this, it provides the right framework for our long-term commitment to responsible and ethical business practices.

With this Communication on Progress, METRO GROUP is fulfilling its obligation to demonstrate which guidelines and measures it is using to improve its performance in the fields of human rights, working standards, environmental protection and the elimination of corruption and to ensure that the Global Compact’s ten basic principles are adhered to in strategic decision-making and day-to-day work both now and in the future.

Düsseldorf, December 2014

United Nations Global Compact Communication on Progress 2013/14

In the following table, we show examples of commitments and management systems that serve the ten principles, measures that we have taken and results that we achieved in the reporting period 2013/14.

Human rights and working standards

Principle

Commitments and management systems

Measures 2013/14

Achievements 2013/14

PRINCIPLE 1: Support for human rights

PRINCIPLE 2: Elimination of human rights abuses

PRINCIPLE 3: Freedom of association and the right to collective bargaining

PRINCIPLE 4: Elimination of all forms of forced labour

PRINCIPLE 5: Abolition of child labour

PRINCIPLE 6: Elimination of discrimination

METRO GROUP Corporate Principles

METRO GROUP Business Principles

Anti-discrimination guidelines

METRO GROUP guidelines on fair working conditions and social partnership

International standards throughout the supply chain (BSCI)

ILO (International Labour Organization) key labour standards, embedded in a variety of corporate guidelines

Social standards clause in supplier contracts

OECD principles for multinational companies, embedded in a variety of corporate guidelines

Producers in defined risk countries (based on Business Social Compliance Initiative [BSCI] evaluation) that supply METRO GROUP with clothing, shoes, toys and consumer durables via its import company MGB METRO GROUP Buying Hong Kong are assisted in implementing the BSCI standard or an equivalent social standard system.

At national level, METRO GROUP continued the social dialogue with employee representatives such as works councils and trade unions. This resulted in many collective labour agreements at business unit, country or store level – depending on the laws and standard practices in the regions in question.

METRO GROUP has been on the Board of Charta der Vielfalt e. V. since 2013. In the reporting year, a regional diversity network was founded with 16 other companies.

In financial year 2013/14, METRO GROUP updated its voluntary commitment to increasing the proportion of women in managerial positions. The aim is for the proportion of women in managerial positions (levels 1 to 3) to be 25 per cent throughout the group in the calendar year 2017. At METRO AG, the target is for women to make up 25 per cent of the first two management levels below the Management Board in the calendar year 2017 as well.

The employee network Women in Trade (WiT) now has some 130 members. It is instrumental in increasing the proportion of women in managerial positions sustainably, promoting internal and external dialogue and creating better underlying conditions for women within the group.

Active involvement in the area of inclusion and diversity, occupational safety and health management and employer-employee relations. See the “Employees” section of the Corporate Responsibility Report 2013/14 and the “Employees” chapter in the Annual Report 2013/14.

Of the 835 BSCI-relevant producers, 58 per cent have passed the social audit in accordance with BSCI specifications.

See the key performance indicator for suppliers suppliers passing the social audit.

The proportion of women at management levels 1 to 3 was 18.5 per cent on the reporting date, 30 September 2014.

See the section on employee KPIs.

Further developed commitment to fair working conditions and social partnership, group-wide information provided via a brochure and an e-learning module on the principles of fair working conditions.

Ongoing dialogue with international trade union organisation UNI Global Union and reaffirmation of commitment to a good, long-term working partnership and to striving to ensure fair working conditions by signing a joint declaration in December 2013.

Signed a new agreement with the METRO GROUP Euro-Forum in its function as the European works council in April 2014.

Developed resources for internal safety training and published them on the intranet.

Implemented a system for monitoring the number, source and severity of accidents at work.

See the “Employees” chapter in the Annual Report 2013/14.

Environmental protection

Principle

Commitments and management systems

Measures 2013/14

Achievements 2013/14

PRINCIPLE 7: Precautionary approach to environmental challenges

PRINCIPLE 8: Promotion of greater environmental responsibility

PRINCIPLE 9: Diffusion of environmentally friendly technologies

METRO GROUP Corporate Principles

METRO GROUP environmental guidelines

Energy and environmental management systems

Buying policy for sustainable procurement, also purchasing guidelines on fish, palm oil and packaging

International standards along the supply chain (GLOBALG.A.P., IFS)

The Consumer Goods Forum Board Resolution on Deforestation

The Consumer Goods Forum Board Resolution on Sustainable Refrigeration

Retail Forum Agreement on Waste

Roundtable on Sustainable Palm Oil (RSPO)

METRO GROUP climate protection target: to reduce greenhouse gas emissions by 20 per cent from 330 kg/m2 in 2011 to 264 kg/m2 in 2020.

Implementing energy-saving measures (including the Energy Saving Programme).

Assisting consumers with energy efficiency and correct disposal by providing relevant information and guides and also by taking back old electrical appliances on a voluntary basis at Media-Saturn and Real.

Switching over our refrigeration systems to natural refrigerants such as CO2 or ammonia.

Participating in the CDP Climate Disclosure Leadership Index.

Implementing a buying policy for fish, adopting the general buying policy for sustainable procurement and the buying guidelines for palm oil and packaging.

Range of ecologically and socially certified products.

Committee work (e.g. on marine protection).

Partnership programmes on sustainable food production in cooperation with Bayer CropScience.

Reduced greenhouse gas emissions by 17 per cent per m2 of selling space compared with 2011.

Energy consumption per m2 of selling space down more than 8 per cent year on year.

Waste generated per m2 of selling space down 0.6 per cent on the previous year.

Water consumption per m2 of selling space reduced by more than 7 per cent compared with the previous year.

Energy management systems at eleven Media-Saturn stores in Italy certified by local organisation Certiquality in accordance with the ISO 50001 standard.

Informed customers how to dispose of old electrical appliances responsibly by means of Saturn’s guide “Altgeräte richtig entsorgen” (Disposing of old appliances properly).

Developed a traceability system for all sectors in collaboration with international partners with a view to preventing illegal fishing.

Named sector leader in the Climate Disclosure Leadership Index.

BREEAM certificate for METRO GROUP headquarters.

In Germany, products certified in accordance with the EU Regulation on organic farming accounted for €96 million in sales at the METRO Cash & Carry, Real and Galeria Kaufhof sales lines.

Sustainable fish products with the Marine Stewardship Council label generated sales of €56 million at our METRO Cash & Carry, Real and Galeria Kaufhof sales lines in Germany. The range includes 90 MSC-certified own-brand and 775 brand-name products.

75 per cent of all washing machines sold at Media-Saturn are rated A++ or A+++. The proportion of A+++ washing machines sold at Media-Saturn in 2014 rose by 16 per cent year on year.

Real received the “Ecocare” sustainability award for its food waste reduction initiative involving junior staff.

See the “Transport, warehousing and stores” chapter.

See the “Waste disposal” chapter.

See the carbon footprint 2013/14.

See the “Customers” chapter.

Anti-corruption measures

Principle

Commitments and management systems

Measures 2013/14

Achievements 2013/14

PRINCIPLE 10: Combating corruption

METRO GROUP Corporate Principles

METRO GROUP Business Principles

Anti-corruption guidelines

Business partner questionnaires

OECD principles for multinational companies, embedded in a variety of corporate guidelines

Group-wide compliance communications providing staff information in various formats.

Implementing an internal control system for managing compliance risks within operational processes, including systematic checks, dual control and separation of functions.

  • Regular monitoring to ensure that internal operational controls are incorporated into operational store processes.
  • Further roll-out of internal controls on key compliance issues (e.g. anti-corruption measures).

Due diligence assessments based on the anti-corruption guidelines for dealing with business partners by means of business partner questionnaires

Examples of internal communication measures:

  • Compliance Day 2013/14 on 5 November 2013.
  • Compliance Talks
  • Newsletter Right!
  • Compliance intranet

Examples of external communication measures:

  • Membership of and active involvement in the Alliance for Integrity, an anti-corruption initiative run by the Federal Ministry for Economic Cooperation and Development and the United Nations Global Compact Network with India serving as the pilot country.

E-training platform for compliance training introduced gradually in all METRO GROUP countries.

  • In 2014, over 4,500 employees were trained online in anti-corruption measures.

Compliance work for selected German companies pooled in organisational terms using a “centre of excellence” structure.