Sustainable sourcing
In assessing suppliers from high‑risk countries, we make use of international social responsibility audit and certification systems, such as the amfori BSCI audit. We also accept other social responsibility assessment systems, provided their criteria correspond to the level of the amfori BSCI audit and the audit has been carried out by an independent party.
We promote the sustainability and transparency of our supply chains through our sustainability guidelines, factory and farm audits, and product sustainability certifications. We collaborate with international sustainability organisations and encourage our suppliers to reduce emissions.
The majority of our purchases are from Finnish suppliers. We support local production and offer products from local producers.
Our customers are increasingly interested in the origin of products. We respond to this demand by providing information on the origin and routes of popular products on the Tracing our Products website – canned pineapple being the most recent addition.
Cornerstones of Kesko's purchasing - grocery trade and building and technical trade
The customer and quality – in everything we do
- Kesko offers extensive, affordable and customer-oriented selections to K-retailers, consumers and business customers.
- Kesko forms its selections based on the requirements of its divisions, and offers solutions that meet the needs of even the most demanding customers. Kesko actively introduces new products from both international markets and local suppliers to its selections.
- The K-retailer entrepreneur model guarantees customer-oriented operations and the most inspiring stores locally. K-retailers tailor selections and services in their stores to fit local customer needs.
- Purchasing has been concentrated to divisional commerce units which coordinate purchases.
- Synergies between the divisions are sought through co-operation and the development of operating models as well as through the sharing of best practices.
- K-retailers tailor their product selections and services to suit the needs of their customers, using their local insight and K-Plussa customer data. K-retailers’ own purchases complement Kesko’s divisional purchases.
- Kesko’s indirect purchases in Finland have been concentrated to ensure efficiency.
- Own brand products are affordable to customers and offer an excellent price/quality ratio. They are purchased efficiently in large lots, which enables stable long-term sales volumes for the suppliers.
- The safety of own brand products is ensured.
- The Product Research Unit's laboratory monitors the safety and quality of own brand products and own imports in the grocery trade. All of our food product operations have a self-control plan in place, and the producers of our own brand food products are required to have international, GFSI recognised certifications that assure product safety.
- Own brand products for the building and technical trade are tested and certified in accordance with product group requirements, while ensuring the products meet demands set for the importer.
- Operating models have been established for identified responsibility risks in the supply chain of our own brand products. Responsibility in the purchasing chain is constantly monitored and developed. The purchasing of products containing ingredients with significant responsibility risk is managed through sustainability guidelines.
- In Kesko’s concentrated product purchases, we prioritise the operating country’s own suppliers if the quality, price and other terms of delivery are competitive.
- Finnish products are chosen for the Pirkka range if they meet the criteria for quality and price.
- K-retailers’ own purchasing considers products by local suppliers when establishing selections that take into account store-specific customer needs.
- Selection planning and customer price targets are based on researched customer needs, market prices and sales data.
- Logistical costs of purchasing are minimised by selecting the most efficient order method and by optimising delivery amounts and frequency and the logistical operating model in the supply chain.
- We use multiple purchasing channels and tools in an effort to make purchasing economic, efficient, responsible and customer-oriented. We also utilise e.g. international purchasing alliances, electronic bidding, direct purchases from product manufacturers, and local sourcing by retailers.
- Kesko seeks partnerships with suppliers by building responsible long-term cooperation and supply relationships.
Kesko's Board of Directors accepted the ethical principles for purchasing on 30 April 1999. The principles are based on the fundamental rights at work accepted by the International Labour Organisation (ILO), the UN Declaration of Human Rights and the UN Convention on the Rights of the Child. The principles are applied to purchases from such developing countries where legislation and/or its supervision do not guarantee that international minimum standards are met by companies.
The supplier can prove that it fulfils Kesko's ethical requirements by obtaining a neutral social certification for its operations.
Read more about the certification systems and Kesko's social quality control in practice in Kesko's Annual Report.
Kesko's principles of socially responsible trading
General
Kesko wants to cooperate with its suppliers and their subcontractors on a systematic, long-term basis to ensure the ethical quality of their products. Deviations from Kesko's ethical principles are handled similarly to deviations from other quality requirements. In the long run, Kesko favours in its purchasing those suppliers that approve of Kesko's values and principles and want to act accordingly. The most reliable way for a supplier of proving that it fulfils Kesko's ethical requirements is to have an amfori BSCI audit or another corresponding audit approved by Kesko.
Fair trading
Mutual cooperation between Kesko and its suppliers shall be open-minded, fair and equal, and adhere to contract terms. Bribes and similar measures are not allowed in any circumstances.
Child labour
The age for admission to employment shall not be lower than the age for completing compulsory education, and usually not lower than 15 years. The employment of young persons shall not jeopardise their education or their physical, psychological, social or moral development.
Forced labour
Employment of forced labour is prohibited and the freedom of employees shall not be resticted.
Discrimination
Discrimination against any employee in respect of colour, sex, religion, political opinion, social origin or corresponding reason is not accepted.
Treatment and safety of employees
A safe and healthy working environment shall be provided to employees. No employee shall be subject to any physical, psychological or sexual harassment, punishment or abuse.
Freedom of association
Employees shall have the right to join associations and to organise them.
Terms of employment
The regular working hours shall not exceed 48 hours and overtime 12 hours per week, unless lower limits have been specified in national legislation. Higher wage rates shall be applied to overtime.
Employees shall have paid annual leave and 24 hours of consecutive rest per week.
Employees shall be paid at least the minimum legal wage or a wage that is specified in a collective labour agreement that is binding on the employer, whichever is greater. Wages shall be paid direct to the employees.
