Stepping up climate work: Kesko sets ambitious emission targets for its operations and supply chain

Kesko is the first Finnish retail company to set science-based targets to reduce emissions from facilities, transportation and the supply chain. To achieve these ambitious emission reduction targets, Kesko will increase its use of renewable energy while also improving its energy efficiency.

The Science Based Targets initiative (SBTi) is a collaboration between CDP, World Resources Institute (WRI), WWF and the UN Global Compact. SBTi enables companies to state their commitment to the target of below 2 °C global warming as set by the Paris Climate Agreement.

Emission targets for 2025

Kesko commits to reduce its scope 1 and 2 emissions 18% by 2025, using a 2015 base year. As for scope 3 emissions, Kesko commits that 90% of its key suppliers will set greenhouse gas (GHG) emissions reduction targets by 2025.

Scope 1 emissions are direct emissions from transportation and Kesko's own heat production. Scope 2 emissions are indirect emissions from the consumption of purchased electricity and the generation of district heat. Scope 3 emissions are other indirect emissions from the manufacture of products sold.

In the initiative, emission targets will be validated against the SBTi criteria, and a list of approved companies will be published on the SBTi website. Kesko is the first retail company in Finland whose emission targets have been formally approved by the initiative.

Science-based targets provide investors and other stakeholders with an excellent tool for comparing companies and their emission targets.

”Setting science-based targets supports the K Group in its commitment to the goals of the Paris Climate Agreement and the UN Sustainable Development Goals. In our responsibility programme, we have committed ourselves to the mitigation of climate change and the promotion of renewable energy production,” says Matti Kalervo, Kesko's Vice President for Corporate Responsibility.

 

Cutting emissions through renewable energy and energy-saving solutions in-store 

All electricity purchased by Kesko in Finland has been renewable since the beginning of 2017. Kesko purchases Nordic renewable electricity that participates in the Renewable Energy Guarantee of Origin (REGO) scheme.

There are 16 solar power plants on the rooftops of K Group stores, making the K Group the biggest producer and user of solar power in Finland.

The K Group participated in the commerce sector Energy Efficiency Agreement for 2008–2016, under which it committed itself to improving its annual energy efficiency by 65 GWh by the end of 2016. As a result of determined actions, the K Group has exceeded expectations and has improved its energy efficiency by 67 GWh.

The K Group is committed to the 2017–2025 action plan included in the commerce sector's Energy Efficiency Agreement. In accordance with the agreement, the K Group has made a commitment to reduce its energy consumption through various savings measures by 7.5%, which amounts to approximately 79 GWh. The agreement covers all of the K Group’s store chains.

Kesko's efforts to improve energy efficiency in its stores are focused on remote monitoring, LED lighting, lids and doors on refrigeration equipment, condensation heat recovery, and the use of carbon dioxide as the refrigerant.
Kesko Logistics aims to reduce emissions relative to the net sales index by 10% by 2020 from the 2011 level.

Emissions will be reduced through optimised transport routes, efficient reverse logistics, two-tier trailers, and training in economical driving styles.

The range of electric and hybrid cars available through Kesko's car dealers is increasing. The K Group offers its customers an extensive network of free electric vehicle charging points at various store sites.

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