K Group participated in the 2008-2016 Energy Efficiency Agreement for the commerce sector and committed to improving its annual energy efficiency by 65 GWh by the end of 2016. In fact, K Group improved its annual energy efficiency by 67 GWh, which is equivalent to the annual energy consumption of 3,400 detached houses or 200 K-Supermarkets. K-Supermarkets consume an average of 340 MWh of energy per year.
Energy efficiency with remote monitoring and refrigeration equipment solutions
K Group’s significant energy efficiency improvements are achieved through:
• LED lights have been introduced as lighting solutions for the store site projects of grocery stores and building and home improvement stores. They create savings of up to 50% on electricity compared to traditional lighting solutions.
Refrigerator covers and doors
• In K-food stores, lids on chest freezers help to save 40% of the energy compared to uncovered freezers.
• Doors on dairy and juice cabinets also help to save energy.
Real Estate Managers
• Kesko has 40 real estate managers who help K-stores find ways to increase their energy efficiency.
• Optimal energy consumption is maintained through regular monitoring, the remote supervision of technical building service processes and the replication of the best energy efficiency practices of different sites.
Remote monitoring of stores’ refrigeration equipment
• Remote monitoring enables refrigeration equipment to be adjusted for optimum temperatures and defrosting cycles. In addition, it is possible to react immediately to any deviations.
• Through the remote monitoring of retail refrigeration equipment, some 5.5 GWh of energy was saved in 2015.
Condensation heat recovery
• Condensation heat from refrigeration equipment is recovered at nearly all K-food stores, meaning that additional heat energy is only required during periods of very low sub-zero temperatures.
• Increasingly many K-food stores also use carbon dioxide recovered from industrial processes as the refrigerant in their refrigeration equipment, which is an environmentally friendly alternative.
Solar power utilities
• In June 2016, Finland's largest property-specific solar power utility was installed on the roof of K-Citymarket Tammisto.
• In 2016, two other K-Citymarkets and nine K-Supermarkets installed solar power units.
• At present, a total of 16 solar power units operate on the roofs of K Group stores.
• With these investments, K Group has become Finland's largest producer and user of solar power.
Effect of changes in company structure during the period of the Energy Efficiency Agreement
Several business arrangements transpired in K Group during the Energy Efficiency Agreement period of 2008-2012. In particular, the number of properties declined significantly after the sale of Anttila Oy, and the target for the Energy Efficiency Agreement was revised to 57 GWh. By the end of 2016, 117.5% of this target had been achieved.
Kesko completed the acquisition of Suomen Lähikauppa (SLK) in April 2016 and began converting Siwa and Valintatalo stores to K-Markets in May 2016. As the Energy Efficiency Agreement ended in December 2016, SLK’s energy efficiency target was not included in K Group's performance.
Energy-saving measures to continue throughout the K Group
K Group also participates in the commerce sector’s Energy Efficiency Agreement for 2017-2025. In accordance with the agreement, K Group undertakes to reduce its energy consumption by 7.5% or approx. 79 GWh by means of various energy saving measures. All K Group chains are covered by the agreement.
The Energy Efficiency Agreement is an agreement between the state and industries on the efficient use of energy. Companies join the Energy Efficiency Agreement scheme for their sector and commit themselves to improving their energy use in accordance with their target. The measures the companies take are reported to Motiva, which approves and confirms the results of each company.