Procurement, production and processing

Social audits of own imports through MGB Hong Kong
and non-food own brands of the METRO GROUP sales lines
as of closing date 30/9

Social audits of own imports through MGB Hong Kong and non-food own brands of the METRO GROUP sales lines (bar chart and pie chart)

Plants that have passed the audit can demonstrate their successful compliance
with the BSCI standard or an equivalent social standard system by presenting a
certificate awarded by an independent third party.

1 Adjustment of previous year’s figures for social audits at plants relating to own imports
through MGB Hong Kong. In addition, plants in relate to non-food own brands of the
METRO GROUP sales lines.

In terms of procurement, production and processing, it is important for us to know which resources and raw materials are used to produce our products and under which social and environmental conditions our products are made. In managing these issues, we draw on our group-wide and cross-product purchasing policy “Sustainability”. In this policy, we have laid down the fundamental requirements for sustainable supply chain and procurement management. At the same time, our purchasing policy forms the framework for various guidelines that address specific issues related to individual product and raw material categories. By developing and implementing such guidelines for sustainable purchasing, we are strengthening our procurement channels and help to improve the sustainability of our products.

To ensure socially acceptable working conditions within our procurement channels, we demand that our suppliers implement social standard systems. Our goal is that all of our producers in defined risk countries based on the assessment of the Business Social Compliance Initiative (BSCI) in which MGB Hong Kong manufactures goods for import as well as our producers that manufacture their own labels or their own imports of clothing, shoes, toys or hardware for METRO GROUP’s sales lines undergo audits conducted in accordance with BSCI or equivalent standards. As of 30 September 2015, 1,943 producers have been audited. Of that group, 93 per cent (1,808 producers) passed the audit. Producers who fail to pass the audit have 18 months following the audit date to provide proof of improvement. Should these improvements not be made, the production site will receive no more orders until it can demonstrate that it has sustainably improved its organisational processes.

Topic

Goals

Status of goal achievement

Measures

Status of measures

1

This covers the factories at which the merchandise is manufactured (own non-food brands and own non-food imports), which carry out the final significant and value-creating production step.

INTERNATIONAL LABOUR STANDARDS/SOCIAL STANDARDS

METRO GROUP expands its commitment to fair working conditions at its suppliers.


In progress

Inclusion of all non-food own-brand suppliers1 in a BSCI or equivalent social standard system if the final product is produced in a risk country (risk country based on BSCI definition).


Measure ongoing