Kesko has reduced its impact on climate change throughout the 2000’s

Kesko’s seventh Corporate Responsibility Report, published today, is an extensive information package on the Group’s economic, social and environmental performance. The report has been prepared on the basis of the Sustainability Guidelines drawn up by the Global Reporting Initiative (GRI). The reporting coverage of Kesko’s subsidiaries outside Finland has increased.

Kesko’s best financial performance ever increased the wellbeing of all stakeholder groups. Kesko Food’s disposal of its shareholding in Rimi Baltic AB, however, reduced the economic benefit provided in the Baltic countries since December. Kesko’s purchases from suppliers operating in Finland totalled €5.1 billion, of which Finnish products accounted for some €4.3 billion. K-retailers’ direct purchases from local suppliers increased by one third to €468 million. Salaries paid by Kesko in Finland amounted to €350 million and in other countries to €110 million, while taxes paid by Kesko in Finland totalled €102 million and in other countries €5 million. Salaries paid by K-retailers totalled €259 million and taxes €33 million.

The average number of employees was 10% higher than in the previous year. The number increased by 320 in Finland and by 1,833 employees outside Finland. In Finland, 3% or 137 of employment contracts were terminated by Kesko, nearly half less than in 2005. Job satisfaction improved in the Estonian and Lithuanian subsidiaries, remained unchanged in Finland and in Latvia, and declined in Sweden. The number of sick days per person decreased in Finland, but increased abroad. The average retirement age of employees increased in Finland. The investment in training declined, both in terms of time spent on and financially. Kesko’s social quality control (Fairtrade certification, SA 8000 certification, BSCI auditing) ensures working conditions and terms of employment that comply with the standards to approximately 170,000 employees.

The entire Kesko Group’s impact on climate change (carbon dioxide emissions) has reduced by 15% compared with 2001. Over the same period, the emissions of electricity supplied by Kesko to the K-Group in Finland (533 GWh) have decreased to below half of the previous amount. In the Baltic countries, Kesko’s purchases of energy totalled 240 GWh, but their carbon dioxide emissions – mainly in Estonia – equalled the emissions from Kesko’s electricity purchases in Finland. In its waste management, Kesko has succeeded to maintain the total waste recovery rate in Finland at the level of 90%, while Anttila’s recovery rate rose to nearly 98%. In relation to the volume of operations, the amount of waste generated in foreign operations was considerably larger.

Kesko was the top retailing company in the world in terms of sustainable development
Kesko continues to be the best in the retailing sector in the Dow Jones Sustainability Index for 2006/2007 and is included in ‘The Global 100 Most Sustainable Corporations’ list drawn up for the World Economic Forum. "The Accountability Rating" ranked Kesko on the 8th place among the world’s 50 largest companies and its score was also highest of any European retailer. In the global comparison, Kesko’s Corporate Responsibility Report was ranked 21st among 1,900 reports and was the best in the trading sector.

Kesko’s Corporate Responsibility Report for 2006 has been published both in print and on Kesko’s Internet pages at www.kesko.fi (pdf and html formats).

Further information: Kesko Corporation/Corporate Responsibility, Senior Manager Ulla Rehell, tel. +358 1053 22464 or +358 50 383 9426, ulla.rehell@kesko.fi, or Head of Corporate Responsibility Jouko Kuisma, tel. +358 1053 23140 or +358 50 5143 043, jouko.kuisma@kesko.fi

Kesko (www.kesko.fi) is a retail specialist whose stores raise the quality of consumers’ everyday lives by offering highly-appreciated products and services at competitive prices. Kesko operates in the Nordic and Baltic countries and Russia.