supply chain traceability and chain of custody...traceability trace our fish and meat products...

SUPPLY CHAIN

TRACEABILITY AND CHAIN

OF CUSTODY

Britta Gallus

[email protected]

METRO

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

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2017

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2018

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2019

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2020

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2021

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9.6 BILLIONPEOPLE IN 2050 (UN)



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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)



THE WORLD IS NOT ENOUGH.Global biocapacity is overused.

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1.6 PLANETS EQUIVALENT TO SUPPORT OUR DAILY ACTIVITIES (WWF)

In case of business as usual in 2050 mankind would need three planets Earth.



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THE WORLD’S CHALLENGES ARE THE CHALLENGES OF OUR BUSINESS AS IT IS BASED ON TRADING WITH RESOURCES.



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

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One company.

750 stores.

20 million customers.

1 billion consumers.

OUR LEVER



METRO GROUPSustainability is a group-wide frame for business

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SUSTAINABILITY IS DEEPLY ROOTED IN BUSINESS



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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



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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.



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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



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

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Important instruments implemented that will help to improve and boost the process



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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



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GLOBAL STANDARD TRACEABILITY SOLUTIONInteroperable // applicable for food & non-food // decentral & scalable



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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



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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



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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



FISH & SEAFOOD

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Expand our range of sustainably caught and farmed fish products

80%

by 2020


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



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

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Source sustainable palm oil focusing on our own brands Responsible assortment

100%SUSTAINABLE

BY 2020

ACCORDING TO THIRD

PARTY VERIFIED

CERTIFICATION OF RSPO



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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




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DOW JONES SUSTAINABILITY INDEXMETRO GROUP top ranking



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THANK YOU!

supply chain traceability and chain of custody...traceability trace our fish and meat products...

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