Environment

We are committed to the goals of the Paris Agreement to mitigate climate change. We promote the sustainable use of natural resources throughout our supply chains.

Topic

Objective

Progress in 2020

Renewable energy

We will purchase 100% renewable electricity in Finland. In 2020, we purchased 552 GWh of renewable electricity produced with hydropower and bioenergy with Renewable Energy Guarantees of Origin (REGOs) from the Nordic countries.
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.

Energy efficiency in stores

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.

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. In 2020, the fourth year of the K Fishpaths collaboration, we restored a total of 66 spawning grounds at 8 different locations, removed five barriers that prevent migratory fish from swimming upstream and freed 2.5 km of spawning grounds and habitats which the fish had previously been unable to reach. 

In 2017–2019, electrofishing was conducted in the streams restored as part of the K Fishpaths collaboration to study the changes taking place in the fish stock. Promising results have already been received from the locations restored during the first years of collaboration: the endangered trout spawns and breeds in streams formerly inaccessible to the fish.

Science Based Targets

We commit to reduce 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%.
In addition, we are committed to reduce our supply chain emissions (Scope 3) so that 90% of Kesko's key suppliers will set their own GHG emissions reduction targets by 2025. Out of Kesko’s key suppliers in 2020, 45% had set their own emission reduction targets.

Logistics emissions

The target of Kesko Logistics during 2012–2020 is to reduce emissions relative to the net sales index by 10% from the 2011 base year. The relative emissions decreased by 21% from the level of the 2011 base year and we have reached our target. In 2020, the relative emissions increased by 2.6% from 2019, due to regional variations in transportation caused by the Covid-19 pandemic.

Waste recovery

Our objective is to minimise and recover all waste from our operations. In 2020, the recovery rate for reported waste management in Finland was nearly 100% and in the other operating countries it was 92% (includes hazardous waste treatment). At the end of 2020, a total of 664 stores and K Group business locations (2019: 664) participated in the Circular Economy Agreement. The recovery rate of the waste generated in these sites was 100% (2019: 100%) and the recycling rate was 75% (2019: 74%).

Food waste

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%.
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