THE TENGELMANN GROUP
Contents Preface
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About this report
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The Company
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Corporate Citizenship
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For many years, the Tengelmann Holding, with the enthusiastic support of its employees, has participated in a wide range of social projects.
Products
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Sustainable innovations relating to products and Kaiser’s Tengelmann stores help protect the environment.
Environment
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Protecting the environment begins with the right mindset, which is then put into practice in an everyday work environment – KiK took a close look at its European headquarters.
Employees
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Appreciation for our employees and programs to promote their health and well-being are an everyday part of the working environment at OBI.
Outlook
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Legal notice
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Preface
Ladies and gentlemen, “Ex unitate vires” (“united, we are strong”) is an old adage that holds true for many areas in life, but also for the Tengelmann Group’s commitment to sustainability. What once began with my grandmother’s influence was only able to grow into something much greater because my father harnessed the strength of the entire corporate group to protect and preserve an environment worth living in. Six years ago, we consolidated our family business’s commitment to CSR, which stretches back more than 45 years, into the more comprehensive context of sustainability. Our corporate headquarters along with our subsidiaries committed to the corporate responsibility principle of making room for sustainable practices in everyday business. The ways in which sustainability is practiced are as varied as our activities, encompassing bricks and mortar retail in areas including food, hardware and garden supplies, and clothing and household items, as well as
online retail, real estate and venture capital activities. In the year past, our major retail business segments each produced their own certified sustainability report. These reports not only document our intention to make sustainability an integral part of everyday business, but they also measure our progress to date. In this special brochure, we have put together some examples of the steps taken by each company in order to give our stakeholders an impression of the diversity of our activities in this area. I hope you enjoy reading this report!
Karl-Erivan W. Haub
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About this report
About this report The range of sustainability targets and activities pursued by the subsidiaries of the Tengelmann Group is as diverse as their business areas. In this brochure, we will provide you with an overview of the major fields of action that the holding company and the business segments Kaiser’s Tengelmann, KiK, OBI, and TEDi are committed to. This is not a sustainability report in the classic sense set out in the guidelines for sustainable reporting of the “Global Reporting Initiative” (GRI), but more a summary of the varied and long-standing commitment of the family-owned and operated Tengelmann company to sustainability. The report does not attempt to give a complete account of all our practices with regard to sustainability. Instead, it provides examples from our individual busi-
ness segments to describe the activities of the holding and business segments in the four fields of action “Corporate Citizenship”, “Products”, “Environment”, and “Employees”. The content of this report has for the most part been taken from the certified sustainability reports of the business segments and therefore concerns the years 2010 and 2011. Wherever it made sense to do so, reference has been made to recent developments in the current financial year. The sustainability reports used as a basis comply with the guidelines of the GRI and meet the requirements of the A+ application level.
The Tengelmann Group is an internationally active multi-sector trading company, to which the trading subsidiaries OBI, KiK, Kaiser’s Tengelmann, Baby-Markt.de and Plus.de belong. The real estate company TREI Real Estate and private equity firms Emil Capital Partners in the United States and Tengelmann Ventures in Germany, which have been investing in start-up companies for several years, also belong to the Group. The family company was founded in 1867
The Company
in Mülheim an der Ruhr and continues to be managed by its owners in the fifth generation. The Tengelmann Group has operations in 20 countries, employs more than 83,000 people at over 4,300 branches, and achieves annual sales revenues of more than 11 billion euros. For more than 45 years, the company has been committed to protecting the environment and natural world. Today, the company focuses especially on climate protection.
The Company
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CORPORATE CITIZENSHIP
We don’t just talk, we take action: Our companies actively promote volunteer work.
Getting children off to a good start in life: This is as important on the global level as it is on a regional level, which is why we are conducting numerous campaigns with this theme.
Working together to get things done in the region by promoting social and cultural projects on a local level.
Volunteering is a matter of honor
Poised for future challenges
Being a good neighbor
Offering relief in emergencies by showing great solidarity: When natural disasters strike, our companies collect donations to offer relief.
Disaster relief
Corporate Citizenship
For a day away from the desk: On Volunteering Day, Tengelmann employees get actively involved in local projects like the Theodor-FliednerWerkstätten in Mülheim an der Ruhr.
Active involvement, together At Tengelmann Holding, taking responsibility for the region and the environment while doing one’s part to actively shape the future is a matter of course. This is embodied in the company’s social commitment.
A family-owned company, Tengelmann is strongly connected to the Ruhr Valley region, having been in Mülheim an der Ruhr for 146 years. Our strong corporate culture of putting people at the center of our business thus has an impact outside the Wissollstrasse headquarters site, extending into the immediate surrounding area and beyond. Management’s commitment to helping others is communicated to and shared by employees. In addition to funding local initiatives, employee volunteering is also a highly important part of the company’s public relations.
146 years of commitment in the Ruhr Region
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Corporate Citizenship
Over 300,000 euros collected in 18 years: The Tengelmann Run combines a love of sports with donations for a good cause.
20,144 runners participated in the Tengelmann Run between 2004 and 2011.
The Tengelmann Run An avid jogger, Karl-Erivan W. Haub came up with the idea in 1994 to organize a fun run around the company sports field on the grounds of the Wissollstrasse headquarters. Proceeds from the event are earmarked for Mülheim athletic organizations for disabled children and youths. It only took one year until the starting gun sounded on the first-ever “Tengelmann Run”. The event has since evolved into a large family and athletics festival supported by numerous sponsors. Several different types of races are held over varying distances, and for all age groups. There is a broad program of entertainment alongside the athletic competitions, with many special activities for kids. Since the first Tengelmann Run held eighteen years ago, a total of 300,000 euros in donations has been raised. This money goes to fund numerous athletic initiatives for disabled children and youths. And at the same time, the organizations benefiting from the proceeds are active in hosting the
Corporate Citizenship
Tengelmann Run, and even compete themselves.
Tengelmann Volunteering Day The Tengelmann holding company has been supporting volunteering by employees at the corporate headquarters since 2007. All staff may receive a day off work to volunteer for a social cause. Projects are designed in cooperation with non-profit organizations in Mülheim, Essen, Oberhausen and other cities of the region which headquarters staff members can get involved in. In 2011, one in five employees at the corporate headquarters volunteered for at least one of the twenty projects completed. On the intranet volunteers describe to their colleagues the thoroughly positive experiences they had helping out. Some enjoyed volunteering so much that they took on additional volunteer work after the one-day project. Since 2007 when this initiative began, employees have invested a total of 4,500 work hours in volunteer projects. Tengelmann’s Volunteering Day, which has now also been introduced at the other companies located at the headquarters site, has made many employees more aware of where help is needed in society. More and more often, staff members are now suggesting projects they are interested in working for.
4,500 working hours for voluntary projects
KiK supports school education in Bangladesh In Bangladesh, less than half of the populace is able to read and write. Although school is compulsory, the materials required are often so expensive that children are unable to attend school. To break out of this vicious circle of a lack of education and poverty, KiK has partnered with the non-governmental organization Gonoshahajjo Sangstha to support a school project in the Dhaka region and in northern Nilphamari. The organization uses donations to finance the total cost of a school education. KiK has taken on the task of financing ten of these schools so that a current total of around 2,000 children are able to complete an elementary school education.
OBI beaver sponsor OBI has adopted three juvenile European beavers born in May 2010 and orphaned as a result of flooding of the river Oder. The beavers currently reside at the zoo in Neunkirchen in the German state of Saarland in a 1000-sq. m. habitat that has been equipped and furnished using building materials and plants from the local OBI branch.
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Corporate Citizenship
School sponsorships help young people on their way by giving them the opportunity to learn more about the professional world.
350 School children have been given the chance to get a closer look at the work areas of the Tengelmann Holding in recent years.
Playground in Dortmund-Brackel School sponsorship Thanks to a donation, a large slide, an innovative climbing device, and modern seating were built at a playground in the neighborhood surrounding the TEDi headquarters. The Verein zur Förderung von Spiel- und Freizeitanlagen für Kinder und Jugendliche1 in cooperation with the city of Dortmund initiated this project. The project could not have been completed without the financial contribution provided by TEDi.
1 Association for Funding Playground and Leisure Facilities for Children and Young People
Supporting young people is a high priority at Tengelmann. In interactions with potential recruits through internships or company open-house days it emerged that young people often have only a vague idea of what to expect upon entering the workforce. Thus, for the 2006/2007 school year, Tengelmann Holding partnered with the Louis Baare Vocational College in Bochum – a sponsorship which still exists today –
creating an opportunity for students to experience working for a trading firm. As part of this sponsorship, company managers hold eight afternoon events offering insights into the various departmental functions at a holding company. Alongside these educational events, students are given a tour of the corporate headquarters, take part in job application practice courses, and complete school internships. In recent years as many as 350 students have taken advantage of this offer. Moreover, plans are in place to partner with other schools to ease the transition into working life for even more students. The school sponsorship project is part of the Businesses for Schools educational initiative, funded by the foundation Partners for Schools NRW. Individual Tengelmann Group business segments have entered into school sponsorships as well. For more information about this initiative, visit www.partner-fuer-schule.nrw.de.
Balanced nutrition starts in childhood: this is the philosophy guiding the “Great Living Project”. A major element of the campaign is making sure that 800 children get a healthy breakfast, the ingredients for which are provided by Tengelmann Holding.
Donating to charitable organizations is a sensible way of making sure food that is still edible is used up, thereby preventing waste. That’s why Kaiser’s Tengelmann in all three sales regions has worked for years with the food redistribution organization Deutsche Tafel e. V. and other charitable organizations that collect food at stores and overstocked items at logistics warehouses. Since 2004, Kaiser’s Tengelmann has allowed customers to directly donate their bottle deposit receipts at numerous Berlin stores. This very successful concept has now also been introduced to other sales regions. In 2011, deposit receipts worth around 150,000 euros in total were donated to food redistribution organizations in Berlin and the surrounding area.
Kaiser’s Tengelmann – making a deposit for a good cause!
Corporate Citizenship
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PRODUCTS
All companies are tackling the challenge of combining a wide range of products with sustainability.
Innovative products
Keeping a close eye on the product range: Offering a sustainable selection of products makes it easier for customers to shop in a responsible manner.
Sustainable selection
Testing, inspecting and keeping a close eye on things is the only way to guarantee that all products meet quality requirements.
Quality and safety
Taking a close look at production and transport promotes sustainability – not just in the store, but around the world too.
Sophisticated supply chain
Products
A wide range of products for climate protection The product policy at Kaiser’s Tengelmann allows customers to enjoy a large selection of products, safe in the knowledge that they are also helping the environment.
Organic products The market share of organic products has been increasing steadily in Germany in recent years. However, despite steady growth rates, the market share of around three percent still leaves plenty of room for improvement. Organic products benefit both people and the environment. Organic farming practices refrain entirely from the use of chemical or synthetic her-
On average, a Kaiser’s Tengelmann store carries 12,000 products – up to nine percent of these are organic.
bicides, pesticides and soluble mineral fertilizers. Furthermore, EU legislation on organic farming demands varied crop rotation, animal welfare in an environment appropriate to the species, and organically produced feed without the addition of antibiotics and performance enhancers. (Since 2006 the use of antibiotics as a performance enhancer in feed has also been banned across the EU in conventional agriculture.) Fewer
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Products
25 years – that’s how long Naturkind, the organic own brand of Kaiser’s Tengelmann, has existed.
OBI energy-saving display The energy-saving displays are aimed at providing OBI customers with an overview of the most important products to help them conserve valuable resources. To make the subject of energy saving and resource conservation more attractive and informative for our customers, OBI developed a concept for the presentation of energy-saving products: the energy-saving display. This concept was revised by Corporate Merchandising in 2011 and is to be tested in 2012. If successful, it will be implemented in all stores in 2013. Unlike the structure of all other shelves in the OBI stores, this presentation format combines items from different categories. Customers can, therefore, obtain an overview of the different energy-saving options and discover new products that they can use to reduce their own consumption of resources and thus contribute towards sustainability.
additives are allowed in the production of organic products and the use of genetically modified plants or micro-organisms is completely banned. In fact, the German Federal Environment Agency recommends the expansion of organic agriculture as a key aspect in pursuing a model of sustainable development – that is, satisfying present needs without neglecting the needs of future generations. As well as benefiting consumers, organic agriculture makes a significant contribution to preserving the diversity of species and taking the burden off bodies of water and the soil by promoting biodiversity, limiting the use of resources, reducing greenhouse gas emissions, and creating cultural landscapes. The new EU organic logo for labeling all organic products that comply with EU legislation on organic production was introduced in all EU countries in July 2010. This seal is often supplemented with the German organic seal, which has been used to label all organic products in Germany since 2001. Every Kaiser’s Tengelmann store offers an average of nearly 12,000 products. The company carries a total of 1,400 organic products in its range. Depending on customer demand, local circumstances and seasonal fluctuations, the share of organic products at stores ranges from 6.5 to 9 percent – ahead of the industry average. By optimizing the merchandise management system, the company will be able to make use of additional key figures in the future in order to analyze its product range according to criteria such as organic quality. This creates transparency and is a first step towards steadily expanding the range of sustainable products.
Products
A wide range of products are offered in an energy-saving manner: Our refrigerated display cases with glass doors offer up to 35 percent energy savings.
Naturkind – the organic own brand at Kaiser’s Tengelmann In 1986, over 25 years ago, when organic products enjoyed little more than a niche existence, Kaiser’s Tengelmann introduced Naturkind, the first organic own brand in the retail store business, thereby helping to make organic products accessible to a wide range of customers. Today, the Naturkind organic product line contains over 250 different products in nearly all product areas, including fruit and vegetables, meat, cheese, sausage and dairy products, juices, tea, pasta, bread, and baked goods. As well as meeting the requirements of EU legislation on organic production, numerous Naturkind products also fulfill additional internal specifications. For example, the maximum measured limits for heavy metal residues at Kaiser’s Tengelmann are far below the legally prescribed limits under the organic seal. Furthermore, the last use of synthetic pesticides, herbicides, and fertilizers on fields where Naturkind organic products are cultivated must date back at least three years instead of the two years prescribed by the EU. Every Naturkind product undergoes strict in-house quality management and internal quality controls, which are regularly evaluated by external test institutes.
Fairtrade products Many organic products – especially those produced in developing countries – also carry the “Fairtrade” label. This seal guarantees producers prices above those offered on the world market so that producers have a higher and above all secure income. Long-term supply partnerships also ensure that social and environmental standards are implemented and adhered to.
KiK: “Products that help” Improving the life of people in northern Bangladesh by providing them with a secure source of income and preventing migration to industrial centers were the specific goals behind the introduction of “Products that help”. By establishing local production sites and providing purchase guarantees for all patchwork rugs and sea grass baskets produced, the clothing discount chain KiK broke new ground with its aid projects in Bangladesh. With the support of the organization CARE Bangladesh, the first patchwork rug production site in Rangpur – one of the poorest regions in the north of the country – was developed and expanded in 2008. The first sea grass basket production site followed in mid-2009 in Bogra. KiK has allocated the net income from the sale of over two million rugs and 300,000 sea grass baskets to a variety of social and environmental projects.
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Products
Fairtrade coffee, flowers, and bananas are particularly popular among German consumers. The demand of German consumers for Fairtrade products has increased by 16 percent since 2010. This positive trend can be attributed to the greater variety of products, the increase in the number of producers, and the higher level of commitment on the part of retailers. Kaiser’s Tengelmann has carried GEPA and Fairtrade products such as coffee, chocolate, and flowers in more than 330 stores for a good 25 years, promoting their sale by means of appropriate shelf placement, advertising campaigns and special offers, and the expansion of this range of special products. Next year, we will
16 percent more demand for Fairtrade products in Germany in 2011 compared to the previous year
continue our commitment to these products, supplementing them with more customer information campaigns.
Sustainable fishing policy With its omega-3 fatty acids, fish is an important part of a healthy balanced diet: It is low in cholesterol, rich in protein, and contains numerous essential vitamins and minerals. Although there is no question about the value of fish as a healthy nutritional choice, commercial fishing practices have negatively impacted the stocks of many fish species. According to the European Commission, 63 percent of all fish populations in the Atlantic and as much as 82 percent in the Mediterranean are already overfished. Kaiser’s Tengelmann offers its customers a broad range of fish products, including fresh fish at our service counters, frozen fish, and fish products in our dry food assortment. In order to prevent the further decimation of endangered populations in the future and keep populations healthy, the company has followed a sustainable strategy for the purchase of fish and sea-
Kaiser’s Tengelmann offers more than just variety when it comes to meat products and sausages. It is important that suppliers commit to animal welfare – with respect to livestock husbandry, transport, and slaughter.
Kaiser’s Tengelmann works with suppliers to select its range of fish products according to the specifications of this guideline. This involves offering larger amounts of fish deriving from healthy stocks and caught on the basis of sustainable fishing practices, as well as discontinuing the sale of endangered fish species or looking for alternatives. For example, Kaiser’s Tengelmann began to completely remove endangered fish species such as dogfish or bluefin tuna from its range a few years ago. The company also discontinues its cooperation with any suppliers who do not or cannot adhere to the purchasing guideline and code of conduct. In order to create transparency for its customers and raise their awareness for the topic of sustainable fishing, Kaiser’s Tengelmann has publicized its purchasing policy in press releases and provided training to raise awareness among its employees. Clear labeling, such as the MSC seal, the SAFE logo, and the Responsible Fishery label on product packaging and at counters, also make it easier for customers to make sustainable consumer choices.
Raising awareness among employees
food since 2009 with the specific goal of protecting existing ecosystems and fish populations, minimizing bycatch, and guaranteeing complete traceability. Based on the recommendations of NGOs such as Greenpeace and scientific institutes like the International Council for the Exploration of the Sea (ICES), Kaiser’s Tengelmann has developed a purchasing policy that is reviewed and adapted annually. Since 2011, the company has intensified its cooperation with Greenpeace and founded the “Working Group for Sustainable Fishing”, whose members meet every quarter to verify compliance with the purchasing guideline and further promote its implementation.
In the future, even more information will be provided at counters and in leaflets, and there will be regular progress reports on the creation of a full range of sustainable fish products. You can find detailed information about our sustainable fishing policy and current purchasing guideline at www.kaisers-tengelmann.de/Fischpolitik.
In addition to price and quality, TEDi also cares about the sustainability of products. The company is expanding its range with an increasing number of products certified with the ‘Blue Angel’ or FSC environmental seals. Examples include diverse paper products such as writing and drawing pads and envelopes. Now more than half of the paper products in the range bear one of the two certificates or are made of 100 percent recycled paper. TEDi also carries clothing that has been awarded the OEKO-TEX certificate.
Certified products at TEDi
Products
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ENVIRONMENT
Taking a close look at how to save energy. Preserving resources and the environment is a priority in all our stores.
Energy-efficient stores
When building the most recent 21 stores, greater focus was placed on compliance with GreenBuilding standards.
Green Building Moving away from nuclear energy and towards sustainable energy production: Green electricity is powering an increasing number of stores.
Green Electricity
Environment
The employees of the KiK European headquarters in Bönen (North Rhine-Westphalia) closely examine environmental aspects such as emissions, energy, water, natural gas, paper, waste, and mobility, taking action to actively preserve resources and steadily improve statistics in this regard.
Environmental protection – a keystone of the KiK European headquarters Almost every decision a company makes affects the environment. Environmental management systems ensure that environmental impact is always taken into consideration. This is how KiK has monitored the processes at its European headquarters since 2010 and saved a considerable amount of energy. In 2009, KiK started to introduce an environmental management system for its 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
10.4 t CO2 saved through the use of recycled paper
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Environment
KiK has gathered information on the topic of GreenBuilding in a film which can be accessed with this QR code.
“KiK is creating biotopes on 1,500 square meters around the European headquarters, which provide habitats for small mammals, insects, and birds.“
OBI Car Policy There are strict limits for CO2 emissions for company cars. OBI provides all store managers, as well as field and management employees, with a company car upon request. OBI Fleet Management has restricted the selection of possible company cars to certain manufacturers and models, specifically taking into account the reference values for CO2 emissions. Depending on the management level, different grades of car are available to the employees, and a basic model with the lowest possible CO2 reference value has been selected for each car grade in line with the OBI Car Policy. In 2011, these reference values ranged from 109 g/km to 141 g/ km, depending on the model. The entire company car fleet comprised 855 vehicles, meaning that, due to the high number of cars, it was possible to make considerable savings in terms of CO2 emissions.
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. Using the environmental management system, KiK has been able to define seven relevant environmental aspects at its European headquarters: emissions, electricity, water, natural gas, paper, waste, and mobility. For each of these aspects, KiK has developed a strategy to improve its environmental performance. It collects data and makes assessments on an ongoing basis so as to be able to review its change processes. The parameters relevant to operational environmental protection are documented in an environmental handbook available to all employees at the Bönen site. Since the environmental management system was introduced, and with the help of key performance indicators, the average electricity consumption and average CO2 emissions per administrative employee have
Environment
Climate-friendly mail service
been 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 seven percent. Average greenhouse gas emissions per employee fell significantly in 2010 compared to the previous year. Paper usage in day-to-day office activities at the European headquarters is on a par with the size of the workforce there. In 2009, around 122 tonnes of paper were 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, use of non-recycled paper had been reduced to 25 percent. Thanks to the 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. Moreover, the environment has been spared 10.4 tonnes of CO2. With doublesided printing, the volume of paper used has been reduced by more than 30 percent. The transition to 100 percent environmentally friendly office materials at our headquarters and in 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 percent.
It is still not possible to conduct all correspondence electronically, so every day the central mailroom sends out some 750 postal items. Per financial year that amounts to some 200,000 letters and parcels transported by truck, rail or air, all of which generate CO2 emissions. To ameliorate the negative environmental effects of utilising the postal service, all companies based at the headquarters site began using the Deutsche Post DHL GoGreen delivery service on 1 July 2011. An additional charge is paid for every delivery which Deutsche Post sets aside to fund prominent international climate protection projects. The independent institute Société Générale de Surveillance oversees this arrangement. This measure realized a 4.13-tonne CO2 reduction for document and parcel delivery in 2011.
Green spaces in touch with nature By designing all the green spaces around its European headquarters to look like natural habitats, KiK allows its employees to experience the integration of environmental aspects into the company’s business activities. Working together with the Karl Kaus foundation and local tree nurseries and gardening firms, KiK has developed the approximately 1,500 square metres of land surrounding its headquarters to create homes for small mammals, insects and birds. The walls of its high-bay warehouse are just the right height for nesting, in particular for swifts and bats.
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Environment
Logistics
3,385 tonnes of CO2 saved in two years The store design concept combines a pleasant ambiance with the use of efficient technologies that conserve resources. When existing stores are renovated, as many as possible of the following building requirements are taken into account: Q
Compliance with GreenBuilding standards (highly efficient use of resources with respect to energy, water, and materials).
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Use of waste heat energy in refrigeration devices to cover the store’s base load capacity.
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Use of covers in refrigeration devices, which reduce energy consumption by an average of 35 percent.
These are just a few measures that have resulted in an overall reduction in energy consumption of 5,981,055 kWh and savings of approximately 3,385 tonnes of CO2 in renovated stores in 2010 and 2011.
The subsidiary KiK Logistik I GmbH maintains one of the most modern high-bay warehouses in Europe. Total storage space amounts to 65,000 m2, and is divided into a flat shelf store of 57,300 m2 and approximately 23,000 pallet spaces, as well as a 7,700 m2 high-bay storage area. The highbay 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 CO2 emissions per pallet. 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 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 KiK stores within a 300 km radius of the warehouse. All other deliveries from the main warehouse are handled by a range of regional forwarders. To reduce the CO2 of goods transported from the warehouse to stores, KiK aims to have developed a set of mandatory specifications and a training program for its transport providers by mid2012. The company is currently conducting an inventory of its 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 a basis of further reducing reduce CO2 emissions related to the transport of goods.
Environment
The Stores Due to the large number of stores operated by KiK, its electricity consumption is by far the greatest in this area. During 2010, this amounted to a total 100.93 million kWh for its 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 percent. However, thanks to its conversion to green power in 2010, KiK significantly reduced CO2 emissions. A total of 19,370 carbon dioxide equivalents were prevented, resulting in an 11.8 percent fall in CO2 emissions compared to 2009. In 2009, KiK became the first European clothing discounter to partner the European Commission’s GreenBuilding programme, designed to improve energy efficiency. So far, the company has built 21 new stores according to the GreenBuilding standard and had them certified. These stores have optimized cladding and an innovative ventilation system. Heating is provided by an energy-efficient thermal heat pump. In these stores, KiK has achieved average energy savings of 50 percent and reduced CO2 emissions by 40 percent. To make existing stores more energy-efficient as well, KiK 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 the company to identify both the time periods in which a lot of electricity is used and the devices that consume high levels of electricity.
50 percent reduction in energy consumption at 15 stores thanks to energy-efficient heat pumps
TEDi saves energy by participating in the ÖKOPROFIT project In 2010, TEDi participated in the City of Dortmund’s ÖKOPROFIT project (Project for Integrated Environmental Technology). The company’s headquarters in the city were the focus of an evaluation as part of the project. The goal was to integrate environmental protection into everyday business practices and increase the company’s energy efficiency. TEDi shared information with other companies and, with external consultation, performed a calculation of current and target energy consumption. The company used systematic measures, including extensive building renovations, to reduce its energy consumption by 2.2 million kilowatt hours (heat energy). This corresponds to savings of 558,800 kg of CO2. These and other measures, such as the more efficient separation of waste and the reduction of paper consumption, significantly contributed to reducing greenhouse gas emissions.
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Part-time, full-time, early or late shifts: A variety of working hour models make sure that the job can be adapted to accomodate any life situation.
All companies welcome trainees and support their development with special campaigns.
New knowledge, new challenges: Ongoing training promotes the development of all employees.
Flexible working hours
Training as a cornerstone
Further education
Employees
Trainee Store: Trainees take the helm Each year, trainees are permitted to run a store by themselves for three weeks. This is not only a lot of fun, but also provides valuable experience and new ideas for daily business.
Comprehensive consultation by trainees. For three weeks, they were completely in charge of the Trainee Store.
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Employees
Older OBI employees find that they can count on younger employees to take on responsibility and rise to the occasion.
Trainees manage a Kaiser’s Tengelmann store The qualification measure “Trainees manage a store” has been carried out in the Kaiser’s and Tengelmann sales regions every year since 2002 and has now become an integral part of commercial and technical training. For one week, trainees join together with the goal of successfully managing a store. However, the store management and master butchers are always available should their intervention be needed to ensure compliance with legal regulations. The campaign significantly boosts confidence in the trainees’ own abilities and in the team. A total of 150 trainees took part in the project in 2011.
Once a year the next generation has its say at a selected OBI store – for three weeks. The “Trainee Store” project has run successfully for over ten years and is extremely popular. While the core workforce and the store manager stand aside, selected OBI trainees assume responsibility for everything that happens in a DIY store: ordering goods, coordinating personnel, switching over seasonal products, organizing special offers, and much more. In 2011, a total of 16 students of German Cooperative State Universities and 79 trainees from across the whole of Germany successfully managed the OBI store in Sinzheim/Baden-Württemberg from 1 to 21 August. The trainee store not only boosts young people’s confidence, it is also one way of rewarding up-and-coming employees for excellent performance, binding them more closely to the company, and thus facing the challenges of demographic change. The students and trainees can also take their newly gained experience back to their usual stores or to head office, where they can potentially provide new ideas for
Employees
Permanent employees pass the torch on to trainees.
207 hours the amount of time the OBI store in Sinzheim was managed by the trainees before they returned management to the permanent staff.
TEDi: Balancing family and career
improvements. Their colleagues learn that they can trust the younger generation and put their faith in them. An OBI store in the hands of the “new generation” is also interesting and attractive from a customer perspective, thanks to a range of creative sales campaigns. This has a positive effect on the company’s image and business results. The trainee store is also an important event for the local media, whose reports make a wide audience aware of OBI’s policy of giving young people the opportunity to learn something, take on responsibility and prove themselves in practical situations.
To help employees balance their family and career, TEDi successfully participated in the City of Dortmund’s project “FamUnDo” (Family Conscious Companies in Dortmund) and was recognized as a family-conscious company. Since then, an electronic platform has provided information on the topic of family and the employees suggestions scheme was considerably improved by means of the “TEDi letter”. The company welcomes newborns of employees with a baby starter set containing TEDi products that parents need for their child. TEDi also offers flexible working hours and trust-based working hours for administrative employees.
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Employees
What makes a healthy, balanced diet? In cooperation with the German Association for Nutrition, OBI organized presentations for employees that addressed this question.
Healthy catering
Fit as OBI The program for employees has four building blocks: Nutrition, exercise, prevention and relaxation.
The three OBI staff restaurants have been awarded “premium” certification by the German Nutritional Society. The subject of nutrition is one of the four building blocks of the “Fit as OBI“ program. In order for employees to remain healthy and capable, feel well and not be overloaded with heavy meals that are difficult to digest, the staff restaurants at the OBI central entities offer fresh, balanced, low-calorie and low-fat meals. All meals are free from preservatives and flavour enhancers. Employees have a choice of different menus every day and can help themselves to a salad bar or buy fresh fruit or low-fat dairy products as snacks between meals. In December 2011 all three staff restaurants at the OBI central entities, each operated by the caterer “apetito”, were awarded the “JOB &FIT Premium Certificate” by the German Nutritional Society (DGE). The “JOB &FIT“ project is a part of a national action plan, “In form – Germany’s initiative for healthy eating and more movement”, and is promoted by the Ger-
Employees
Be healthy and do more
man Federal Ministry of Food, Agriculture and Consumer Protection. The certificate is only awarded to staff restaurants that meet the DGE quality standard. This involves adhering to the DGE’s strict requirements relating to choice of foods, meal planning, meal preparation and nutritional content, as well as the staff restaurant environment. The OBI staff restaurants far exceed normal expectations, and in 2011 they supported the “nutrition awareness days” with special menu offers and freshly prepared fruit shakes. Furthermore, in cooperation with the DGE, employees had the opportunity to attend talks on sensible and healthy everyday eating, as well as get individual nutritional advice.
A variety of measures is offered at the company headquarters, where the motto is “Be healthy and do more”, aimed at helping employees stay healthy and fit over the long-term. In relation to sports and exercise, employees had the opportunity to attend Pilates courses at the headquarters in 2011. The courses, given by an external trainer, were held once a week. A total of around 60 employees took part in these courses. Employees themselves are also promoting more movement as a balance to sedentary desk work. The “After-work Runners” club, which was founded by employees in 2008, meets once to twice a week to go for a run together.
KiK is committed to women in management positions 58 percent of the management executives at KiK are women. They work in second and third-tier management roles, such as department or regional management, but also in senior management positions. One of the main aims of the KiK HR strategy is to keep the number of women in management above average and, where possible, keep improving it. The proportion of women in the company’s workforce – 92 percent – is high for the industry. So KiK has 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.
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Outlook
Outlook All business segments are working together to take responsibility and shape the future.
At Tengelmann, a family-owned and operated company, social responsibility and commitment to the environment are a decades-long tradition. What began with the personal commitment of a nature enthusiast in 1968 gained enormous momentum in the 80s as it became firmly entrenched in the corporate philosophy, the frog and turtle symbolizing the company’s commitment to protecting and preserving an environment worth living in. Today, more than 45 years later, Elisabeth Haub would surely be proud to see how her initiative developed over the years into a sustainability model that informs the entire company. Even in the era of shareholder value, this family of entrepreneurs does not focus on maximizing profits, but rather on preserving the company for future generations of entrepreneurs and employees. Only if we handle all resources in a responsible manner will our living environment continue to be worth living in. For this reason, sustainability is not the dictate of the owners of the 146 year-old family company
Tengelmann, but a topic that the employees of the holding and business segments have voluntarily accepted and take pleasure in promoting. In their sustainability reports, which form the basis of this report, they not only refer to measures that have already been carried out in the primary fields of action, but also to goals for the future and, most importantly, the measures that will be implemented in order to achieve them. All business segments are therefore pulling together. Members of the group-wide CSR Roundtable and various working committees share ideas about new sustainability targets and how they can be reached. The business segments address the specific needs of their customers and their industry, finding different ways of achieving a collective goal, such as the reduction of environmentally harmful emissions. The segments do, however, have one thing in common: their success will be measured against their goals!
A wide range of information relating to the topic of sustainability in the corporate group is provided on the following pages.
Tengelmann Group
Kaiser’s Tengelmann
KiK
OBI
TEDi
Legal notice
The natural world is also appreciated at the corporate headquarters of Tengelmann Holding in Mülheim an der Ruhr: Green spaces invite employees to relax during their breaks.
Legal notice Tengelmann Warenhandelsgesellschaft KG Public Relations Wissollstraße 5–43 45478 Mülheim an der Ruhr Phone: +49 208 5806-7606 Fax: +49 208 5806-7605
[email protected] www.tengelmann.de Responsible for content: Sieglinde Schuchardt
Images: p. 1 (middle), ingimage; p. 1, 2, 32, borchee/iStockphoto; p. 9 (middle), AnnaC/Fotolia; p. 9 (bottom), livestockimages/ Fotolia; p. 20 (bottom), JSB/ Fotolia; p. 27 (middle), Kzenon/ Fotolia; p. 29 (middle), Andres Rodriguez/Fotolia; all other images, Tengelmann Group.
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