Customer

The specific product mixes of our sales lines are designed in such a way that they optimally meet the wide range of needs of our private and professional customers. These products and services must not just meet quality and safety requirements. Increasingly, they must also fulfil critical social and environmental requirements – from production and procurement to usage and disposal. One of our primary concerns is that our customers can put their faith in these qualities when they purchase and use our products. For this reason, we systematically introduce measures that we can use to influence the safety, quality and sustainability of our product range. We achieve this in our supply chain and product management by implementing our guidelines on sustainable purchasing. These guidelines define quality and sustainability criteria, and require regular audits to determine whether quality and sustainability standards are being observed. We also create transparency by maintaining direct relationships with our business partners and by employing innovative technical solutions that can be used to monitor the individual links of the supply chain. Furthermore, we offer our customers greater transparency by using product labels that indicate our compliance with certain quality or sustainability standards. We also label our own brands accordingly. In addition, we provide complementary, specially prepared information in our stores and engage in dialogue with our customers. By doing so, we support and encourage responsible consumption by our customers.

Our sales lines’ assortments include fair trade products as well as foods that bear the European organic symbol. In financial year 2014/15, METRO Cash & Carry and Real generated sales of nearly €9 million in Germany from fair trade products. That figure includes all articles bearing a Fairtrade or GEPA label. In the same period, our sales lines generated a total of €107 million in Germany-wide sales of products certified in accordance with the EU regulation on organic farming. Our stores also offer products from sustainable, environmentally conscious fisheries. The seal of the Marine Stewardship Council (MSC) communicates this fact to customers. In financial year 2014/15, the sustainable fish product range of our sales lines METRO Cash & Carry and Real in Germany comprised 108 MSC-certified own-brand products and 773 brand items. In addition, those two sales lines distributed fish products bearing the ASC label for sustainable aquaculture as well as the “dolphin-safe” label. In total, sales of approximately €90 million were generated from our portfolio of sustainable fish products in Germany. Real increasingly offers its customers products from sustainable forestry. The sales line generated sales of nearly €302 million from regional products in the past financial year. Sales with products bearing either the FSC (Forest Stewardship Council) or the PEFC (Programme for the Endorsement of Forest Certification Schemes) label reached just under €22 million. Media-Saturn generated more than €3 billion from energy-efficient electrical appliances. We continue to work on increasing the share of sustainable products in our total sales and reporting them accordingly. With this in mind, METRO GROUP already adopted principles for sustainable procurement in 2013.

METRO GROUP is taking innovative approaches to traceability: in 2013, we began to work with other retail companies, well-known partners and the standardisation organisation GS1 Germany on an international cross-industry solution. Our goal is to create complete transparency regarding the resources that have been used and the procurement of products throughout the value chain. The key element of this solution, which we call “traceability in the cloud”, is the electronic collection of relevant data and consolidation of these data on an integrated software platform. This platform significantly improves access to this information and arranges it intuitively, creating more transparency throughout the value chain – all the way to the end consumer.

Topic

Goals

Status of goal achievement

Measures

Status of measures

CONSERVATION OF RESOURCES/SAFEGUARDING OF FOOD SUPPLIES/SUSTAINABLE SOURCING

METRO GROUP initiates and supports the development of an international, cross-industry and product-spanning technical solution for traceability.


In progress

Following successful testing and implementation of a traceability solution for fish and meat at METRO Cash & Carry Germany, we started to introduce the solution to other countries at the beginning of 2015. In 2016, additional interested suppliers from selected assortment areas will be included in the project. In addition, METRO Cash & Carry Germany launched a pilot project in the fruit and vegetables category in 2015.


Measure ongoing

Topic

Goals

Status of goal achievement

Measures

Status of measures

SUSTAINABLE PROCUREMENT

By 2015, we will have defined processes that will enable us to evaluate the impact of the own-brand products of METRO GROUP’s sales lines on sustainability. By continuously carrying out our general METRO GROUP purchasing policy on sustainability, we will adjust all product categories relevant to aspects of sustainability.


In progress

METRO Cash & Carry is currently reviewing the impact along the supply chain of its private-label portfolio on society and the environment. The assessment includes the raw materials, product and product group levels and follows the standard international assessment criteria for social and ecological impacts.

The objective of the process is to establish basic requirements in financial year 2015/16 and to design supply chain and procurement management to be more sustainable in the relevant categories. Assessing the product portfolio, defining minimum standards and establishing specific key performance indicators (KPIs) will enable METRO Cash & Carry to fulfil the requirements for a more sustainable product range.


Measure ongoing