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Kesko's operations generate economic benefits for shareholders, personnel, retailers, suppliers and service providers and their employees, customers, as well as municipalities and states.
Kesko operates and has personnel in seven countries, and engages in both retail and wholesale operations. Our principle is that taxes on operating income and assets are always paid to the respective operating country in compliance with local laws and regulations.
In addition to paying income and real estate taxes, Kesko collects, reports and remits indirect taxes, such as value added taxes and excise duties.
K Code of Conduct
The K Code of Conduct is published in the languages of all our operating countries. The entire personnel is obligated to annually commit to compliance with the K Code of Conduct. In 2020, 86% of personnel signed the annual confirmation.
The foundation of our operations is our professional and committed personnel. We provide them with diverse career and development opportunities in various positions.
Occupational wellbeing and working capacity
We focus especially on developing corporate culture, employee experience, competence development, leadership, and employee wellbeing.
Our aim is that the social responsibility of the production of own direct imports from high-risk countries has been assured. At the beginning of 2021, Kesko’s suppliers in high-risk countries had a total of 613 valid social responsibility audits. Direct purchases from suppliers in high-risk countries account for some 1.2% of Kesko’s total purchases.
Product safety and sustainable selections
The product safety of the K Group’s selections has been verified. In 2020, we analysed a total of 6,440 product samples. More than 4,000 of the samples were related to the product development of our own brands. A total of 2,113 own control samples were analysed.
Grocery trade’s Pirkka range includes:
• 384 Hyvää Suomesta - Produce of Finland products
• 209 Key Flag symbol products
• 152 Organic products
• 89 Seed leaf label products
• 154 Nordic Swan label products
• 4 Ecolabel products
• 23 Fairtrade products
• 67 UTZ-certified products
• 45 MSC-certified fish products
• 8 ASC-certified fish products
• 9 Finnish Allergy label products
K Group aims to be carbon neutral in 2025. We will systematically reduce emissions so that our own operations and transports are emission-free by 2030. In between 2025 and 2030, we will offset our remaining emissions. Our objective is to eventually have no need for offsets and make our own operations emission-free by 2030.
All electricity purchased by Kesko for use in K-stores and other Kesko properties has been produced with renewable energy since the beginning of 2017. In 2020, we purchased a total of 552 GWh of Renewable Energy Guarantees of Origin (REGO). This renewable electricity was purchased from the Nordic countries, and 78% of it was produced by hydroelectric power and 22% by bioenergy.
We will increase the production of solar power for our own use. In 2020, Kesko had 42 solar power plants installed at properties it manages. A total of 9.3 GWh of electricity was produced with solar power. At the end of 2020, the annual electricity production capacity of our solar power plants was approximately 11 GWh.
In our energy strategy, we aim to achieve a 10% increase in energy efficiency by 2023. In 2020, we implemented about 20.3 GWh of energy efficiency measures, which is 97% of the annual target rate of 21 GWh in our energy strategy.
We commit to reducing our direct and indirect (Scope 1 and 2) emissions 18% by 2025 from base year 2015. Scope 1 and 2 emissions have decreased 21% compared to the base year. In 2020 Kesko Senukai was reported as a joint venture. If Kesko Senukai would have been included in the 2020 emissions as in previous years, the emissions reduction would have been approximately 5%.
Our objective is to reduce K Group’s identified food waste relative to sales by 13% from the 2016 level by 2021. By the end of 2020, food waste from K-food stores had decreased by 12%.