THE BIG PICTURE
Classification level: Public
METRO GROUP, Corporate Responsibility
KEY CHALLENGE: WORLD POPULATION GROWS.
82 MILLION NEW TERRESTRIALS P. A. (UN). THIS MEANS A “NEW GERMANY” EACH YEAR.
+
2016
+
2017
+
2018
+
2019
+
2020
+
2021
3
9.6 BILLIONPEOPLE IN 2050 (UN)
Classification level: Public
METRO GROUP, Corporate Responsibility
4
THE CONSUMPTION GROWS.
Increase of world population until 2050:
35 PER CENT
Necessary increase of crop plants until 2050:
100 PER CENTDUE TO RISING WEALTH AND –THEREFORE – GROWING DEMAND FOR ANIMAL PROTEINS AND ENERGY (University ofMinnesota)
Classification level: Public
METRO GROUP, Corporate Responsibility
THE WORLD IS NOT ENOUGH.Global biocapacity is overused.
5
1.6 PLANETS EQUIVALENT TO SUPPORT OUR DAILY ACTIVITIES (WWF)
In case of business as usual in 2050 mankind would need three planets Earth.
Classification level: Public
METRO GROUP, Corporate Responsibility
6
THE WORLD’S CHALLENGES ARE THE CHALLENGES OF OUR BUSINESS AS IT IS BASED ON TRADING WITH RESOURCES.
Classification level: Public
METRO GROUP, Corporate Responsibility
METRO – OUR BUSINESSChampion for Independent Business
25 countries750 stores
AUSTRIA BELGIUM BULGARIACHINA CROATIA CZECH REP. FRANCE GERMANY HUNGARY INDIA ITALY JAPAN KAZAKHSTAN MOLDOVA NETHERLANDS PAKISTAN POLAND PORTUGAL ROMANIA RUSSIA SERBIA SLOVAKIA SPAIN TURKEY UKRAINE
> 112,000 employeesSALES IN 2014/15> 29 billion €
SELLING SPACE> 5.4 million m2
7
Classification level: Public
METRO GROUP, Corporate Responsibility
8
One company.
750 stores.
20 million customers.
1 billion consumers.
OUR LEVER
Classification level: Public
METRO GROUP, Corporate Responsibility
METRO GROUPSustainability is a group-wide frame for business
9
SUSTAINABILITY IS DEEPLY ROOTED IN BUSINESS
Classification level: Public
METRO GROUP, Corporate Responsibility
12
OFFER: OUR TOPICS
Responsible sourcing & assortment
Responsible sourcing
Traceability
Responsible assortment
Suppliers
Fish & Seafood
Palm oil
Supply Chain Management
Paper & Wood
Packaging
Health & Nutrition
Responsible consumption
Regionality
Classification level: Public
METRO GROUP, Corporate Responsibility
13
SUPPLIERS #SOCIAL STANDARDSThere is a need to act
Workers die or are injured because
basic safety provisions are not
followed
(Bangladesh, 24. April 2013; 1129 people
died; approx. 2515 people were injured)
• Due to not transparent and complex
supply chains we are facing a high
risks in case of incidents.
Workers die during fire in shoe factory
• Manila on 15. May 2015: 72 people
died because of unsafe working
practises and missing emergency
exits.
Classification level: Public
METRO GROUP, Corporate Responsibility
14
SUPPLIERS #SOCIAL STANDARDS.
Ensure compliance of business partners with social standards Responsible sourcing
• Ensure safe working conditions for
workers in own brand non-food production
facilities
• Support our business partners to comply
with social standards
• Evaluate business partner performance
and factory audits and help introduce
better working conditions
• 70% of non-food factories are audited
according to social standards
• Monitoring for deal breaker issues: child
labor, forced labor, ethical business
behavior, significant fire safety risks
• Ensure safe and ethically produced
products for our customers
100% of non-food own brand producing
factories in risk countries must be
audited according to social standards
Classification level: Public
METRO GROUP, Corporate Responsibility
SUCCESS SOCIAL STANDARDS / NON-FOOD
• New Social Standards
Management (SSM) Database
is live since mid August
• New E-Learning for Category
Management is live since mid
August
15
Important instruments implemented that will help to improve and boost the process
Classification level: Public
METRO GROUP, Corporate Responsibility
16
TRACEABILITYTrace our fish and meat products Responsible sourcing
• Trace our fish and meat products preventing
illegal activities and supporting the protection
of our resources
• PRO TRACE solution to be implemented in ten
countries
• Further countries will implement long-term
traceability.
• In Germany 700 fish and 2.000 meat productstraceable via smart phone
• Enabling customers to easily trace favouriteproducts
• Check origin and source of product
• Protecting the environment by reducing transportation and promoting regional sourcing
2.000 meat and 700 fish products are
traceable in Germany
Classification level: Public
METRO GROUP, Corporate Responsibility
17
GLOBAL STANDARD TRACEABILITY SOLUTIONInteroperable // applicable for food & non-food // decentral & scalable
Classification level: Public
METRO GROUP, Corporate Responsibility
18
TRACEABILITY @ METRO
FAO
scientific name
lot
fishing vessel
FAO fishing area
sub area
date of catches
Category fishing
gear
…
production method
minimum durability
quantity
…
...
…
…
Identification Standard: key
to traceability information
Data collection standard:
DataBarExpanded
FAO
Classification level: Public
METRO GROUP, Corporate Responsibility
19
INTERNATIONALIZATION: SETTING THE SCENE.
FAO
GLOBAL AGENDA COUNCIL on
OCEANS
International Approach
TRACEABILITY
World Wide Fund For NatureSEAFOOD TRACEABILITY
TCM - Traceability & Crisis Management
GLOBAL FOOD TRACEABILITY CENTER
FOOD TRACEABILITY
is an international, neutral, not-for-profit
association with Member Organizations in over 100 countries
GovernmentsEU MS | Japan |
US
Global Ocean CommissionOcean Governance
Funding Organisations
World Bank Rockefeller Foundation Vulcan Oceana Gordon and Betty
Moore Foundation
European Food Safety Authority
Classification level: Public
METRO GROUP, Corporate Responsibility
20
SUPPLY CHAIN MANAGEMENTOptimise the supply chain continuously Responsible sourcing
• Promote a sustainable and responsible supply
chain
• Seven Trading Offices around the world ensure
responsible food sourcing and high quality
standards.
• Direct sourcing from producers and locally
sourcing majority of goods
• Optimised logistics flow and distribution
platforms
• Highest quality hygiene standards in all countries
• Train local farmers in good production practices
• Support producers along supply chain to offer
customers high quality goods and products
Classification level: Public
METRO GROUP, Corporate Responsibility
FISH & SEAFOOD
21
Expand our range of sustainably caught and farmed fish products
80%
by 2020
Responsible assortment
MSC
ASC
European Organic Certification
GLOBAL G.A.P.
FOS
GAA – BAP
And all other certification standards
recognised by the Global Sustainable
Seafood Initiative (GSSI)
• Ensure a sustainable global fish population
• Assortment already includes over 2,000
sustainable fish products worldwide
• 80 per cent of top twelve best selling fish
sustainably certified by 2020
• Focus on Aquaculture Stewardship Council
and Marine Stewardship Council certifications
• Protecting fish populations by enabling our
customers
• Enormous reach – potentially one billion
consumers worldwide
Classification level: Public
METRO GROUP, Corporate Responsibility
PALM OIL
• Curb rainforest deforestation by phasing out non-sustainable palm oil
• 2020 own brand products exclusively madefrom sustainable sourced palm oil
• France own brand products already exclusively made with sustainable palm oil
• Allowing customers to contribute to the
global cause of lowering CO2 emissions
• Helping to decrease deforestation on a
global level
• Protecting one of the world’s biggest CO2
reservoirs
22
Source sustainable palm oil focusing on our own brands Responsible assortment
100%SUSTAINABLE
BY 2020
ACCORDING TO THIRD
PARTY VERIFIED
CERTIFICATION OF RSPO
Classification level: Public
METRO GROUP, Corporate Responsibility
23
PAPER & WOODUse sustainable paper and wood for our own brands and own use
100%
by 2020
• Contribute to the ambition of zero net
deforestation in 2020
• 2020 own brand products exclusively use sustainable sourced paper and wood.
• Reduced environmental impact of own brand packaging in seven countries –saving 15 tonnes of cardboard
• Corporate HQ in Düsseldorf exclusively uses recycling paper.
• Supporting customers to save paper and wood
• Leveraging global reach to reduce deforestation
Responsible assortment
Classification level: Public
METRO GROUP, Corporate Responsibility
24
DOW JONES SUSTAINABILITY INDEXMETRO GROUP top ranking
Classification level: Public
METRO GROUP, Corporate Responsibility
25
THANK YOU!