Environment

We mitigate climate change together and promote the sustainable use of natural resources
  • We reduce the environmental impact by working together with the entire supply chain.
  • We promote development towards a low-carbon circular economy.
  • We help our customers reduce their environmental impact.
Topic Objective Progress of objective 2015 Progress of objective 2016 Progress of objective 2017


Science Based Targets


We are committed to reducing our Scope 1 and 2 emissions by 18% by 2025, using a 2015 base year.


The objective was set in 2017.


The objective was set in 2017.


Scope 1 and 2 emission have increased by 14% from the 2015 base level due to the acquisition of Suomen Lähikauppa and Onninen in 2016.


We are committed to reducing our Scope 3 emissions from the supply chain so that 90% of Kesko’s key suppliers will set greenhouse gas emissions reduction targets by 2025.


The objective was set in 2017.


The objective was set in 2017.


Of Kesko’s biggest suppliers in 2016, 33% had set their own emission targets.


Renewable energy


We will purchase 100% renewable electricity in Finland.


The objective was set in 2016.


We decided to purchase 100% renewable electricity as from the beginning of 2017.


All electricity purchased by Kesko in Finland has been produced with renewable energy since the beginning of 2017. We purchase renewable electricity that has the Renewable Energy Guarantee of Origin (REGO) from the Nordic countries. In 2017, the electricity purchased was produced with Finnish bioenergy.


We will increase the production of solar power for our own use.


The objective was set in 2016.


In June 2016, Finland’s largest property-specific solar power plant was completed on the roof of K-Citymarket Tammisto. By the end of 2016, solar power plants were built in two other K-Citymarket stores and nine K-Supermarket stores. 


Kesko had 19 solar power plants located on the rooftops of its store properties. A total of 3.0 GWh of electricity was produced with solar power for the use of K-food stores. The combined power of the plants is approximately 5.5 MWp. We are the biggest producer and user of solar power in Finland.


Energy efficiency of stores


During the agreement period 2008–2016: We will improve our annual energy efficiency by 65 GWh by 2016. 


Kesko improved its energy consumption by 64 GWh and achieved 97% of its objective.


The final results of the agreement will be published by Motiva in summer 2017.


Objective achieved. 
As a result of our determined actions, K Group has exceeded the objective and improved its energy efficiency by 67 GWh.


During the agreement period 2017–2025: We will reduce our energy consumption by 7.5% by 2025. 


The objective was set in 2016.


Kesko signed a retail sector energy efficiency agreement for 2017–2025. In the action plan, we commit to reducing our energy consumption by 7.5%.


At the time of publication of the Annual Report (March 2018), installed solar energy and the known reported actions will allow annual energy savings of 12.4 GWh, which is 29.6% of the interim target for 2020 and 15.8% of the target for 2025.


Logistics emissions


We will reduce the emissions of Kesko Logistics’ transports relative to the net sales index by 10% by 2020 from the 2011 level. 


Relative emissions have decreased by 5.5% from the starting level due to new solutions in transportation management and fleet organisation. A pilot study on using an extra long Ecotruck on the main logistics route between Vantaa and Oulu. The Ecotruck carries twice as many roll containers as an ordinary trailer combination.


The relative emissions had decreased by 1.9% from the base level. In 2016, emissions increased by 3.8% compared to 2015. The increase in emissions can be attributed to the increased number of stores caused by the acquisition of Suomen Lähikauppa. At first, only Kesko’s own brand Pirkka products were delivered to the new stores and as the conversion of the stores to K-Markets advanced,  refill loads were delivered to the stores as separate deliveries.


The relative emissions had decreased by 16.2% from the base level. In 2017, emissions decreased by 11.2% compared to 2016. The decrease was impacted by new emission factors, which include diesel’s bio component share. Emissions decreased even though transport kilometres increased. As in 2016, this can be attributed to the increased number of stores resulting from the acquisition of Suomen Lähikauppa and the conversion of the stores to K-Markets.


Food waste


Kesko’s grocery trade aims to minimise the food waste resulting from its operations and utilise inevitably accumulated organic waste. By 2020 we will reduce identified food waste relative to sales by 10% from the 2013 level.


We started a 
cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores as energy in the manufacture of new Pirkka products. Many K-food stores donate food to charity.


By the end of 2016, K-food stores had reduced identified food waste by 3.5% from the base level.

Approximately 90% of K-food stores work together with local charities. The amount of food products donated increased by 1.8 million kg from the previous year.

We continued cooperation with Gasum, Myllyn Paras and Wursti to utilise biogas produced from inedible organic waste collected from retail stores as energy in the manufacture of new Pirkka products. In 2016, approximately 3,700 tonnes of organic waste was transformed into 2,800 MWh of biogas. CO2 emissions were reduced by 550 tonnes compared to natural gas and by 740 tonnes compared to fuel oil.


K-food stores have reduced food waste by 7.1% from the 2013 base level.

Some 90% of K-food stores donate edible food products they no longer can sell to local charities, which then distribute the products as food aid to those in need. The amount of food products donated increased by nearly 930,000 kg from the previous year.

K Group and Gasum cooperate in producing biogas from inedible food waste from K-food stores. Food waste unfit for human consumption is now collected from 200 K-food stores and Kesko Logistics’ central warehouse and made into biogas, which is then used as energy in the manufacture of new Pirkka products. Approximately 4,000 tonnes of organic waste was transformed into 3,000 MWh of biogas. CO2 emissions were reduced by 594 tonnes compared to natural gas and by 800 tonnes compared to fuel oil.


Waste recovery


Our objective is to minimise and recover all waste from our operations.


The waste recovery rate in the grocery trade was 99%, in the home improvement and speciality goods trade 99.4%, and in the car trade 99.9%. In other operating countries, the waste recovery rate was 46%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was around 98%.


In Finland, the recovery rate was 99% and in other operating countries, it was 48%. The waste recovery rate of retail stores in southern Finland covered by the waste management agreement was 100%.


According to statistics, the recovery rate for waste management in Finland was nearly 100% and in the other operating countries it was 53%. The waste recovery rate for stores included in the circular economy agreement in Finland was 100%.

In the renewal of the K-Rauta chain, discarded work clothes, flags and other textiles were collected from 140 stores and recycled. Discarded work clothes from rebranded stores were processed into material that can be utilised, for example, by the car industry.


Biodiversity


K Fishpaths collaboration with WWF Finland: We will remove at least 50 barriers preventing endangered migratory fish from swimming upstream and create at least 100 spawning grounds in Finland between 2017 and 2021. We will increase awareness of the endangered nature of migratory fish and arrange volunteer events.


The objective was set in 2017.


The objective was set in 2017.


The K Fishpaths collaboration between Kesko and WWF Finland was launched with an extensive media and social media campaign in August 2017. We promoted the collaboration with the slogan “Mating belongs to all”. On social media, the launch campaign reached 900,000 people, and volunteer events received good coverage in local media.

In autumn 2017, we cleared nine barriers in rivers and streams around Finland and created 40 new spawning grounds for endangered migratory fish. We carried out restoration work together with local operators and volunteers at six locations. We opened up a total of 20,000 metres of new spawning grounds and habitat.

The K Fishpaths collaboration will continue and expand in 2018.

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