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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 eight 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 2019, 82% 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
Our special focus is on developing our corporate culture, 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 2020, Kesko’s suppliers in high-risk countries had a total of 733 valid social responsibility audits. Direct purchases from suppliers in high-risk countries account for some 1.1% of Kesko’s total purchases.
Product safety and sustainable selections
The product safety of the K Group’s selections has been verified. In 2019, we analysed a total of 7,405 product samples. More than 4,000 of the samples were related to the product development of our own brands. A total of 2,478 own control samples were analysed.
Grocery trade’s Pirkka range includes:
• 309 Hyvää Suomesta - Produce of Finland products
• 183 Key Flag symbol products
• 201 Organic products
• 84 Seed leaf label products
• 97 Nordic Swan label products
• 27 Fairtrade products
• 52 UTZ-certified products
• 40 MSC-certified fish products
• 4 ASC-certified fish products
• 9 Finnish Allergy label products
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 2019, we purchased 560 GWh of Renewable Energy Guarantees of Origin (REGO). This renewable electricity was produced in the Nordic countries, and 82% of it was produced by hydroelectric power and 18% by bioenergy.
We will increase the production of solar power for our own use. At the end of 2019, 34 solar power plants had been installed in commercial properties managed by Kesko. A total of 6.8 GWh of electricity was produced with solar power. At the end of 2019, the annual electricity production capacity of our solar power plants was approximately 10 GWh.
We participate in the 2017–2025 action plan of the commerce sector Energy Efficiency Agreement. In accordance with the agreement, we commit ourselves to making energy saving measures with the amount equivalent to 7.5% of 2015 energy consumption amount. All K Group store chains in Finland are included in the agreement. Up to this point, installed solar energy and the reported actions will allow annual energy savings of 51 GWh, which is 64% of the target for 2025. Calculation includes electricity, heating,fuels and district cooling.
Our aim is to reduce the emissions of Kesko Logistics relative to the net sales index by 10% by 2020 from the 2011 level. We will reduce emissions by the efficient route planning of transport, efficient reverse logistics, two-tier trailers and training in economical driving styles. In 2019, the relative emissions decreased by 24.6% from the level of 2011 base year. The relative emissions decreased by 9.4% compared to 2017.
Our objective is to reduce K Group's identified food waste by 13% from the 2016 level by 2021. We reduce food waste in K-food stores with the help of electronic forecasting and order systems, efficient logistics, employee training, reducing the prices of products approaching their best before dates and optimising packaging properties.
In 2019, food waste decreased by 3 from the base year 2016. Compared to 2018, K-food stores donated 4% more food to charity compared to 2017.