Annual report 2014

Divisions making progress

The agenda for the September 2014 management dialogue between the Holding Company and the divisions included for the first time progress reports on the CR programme agreed in 2013. All divisions have made good progress in reaching their objectives.

CR is an integral component of CWS-boco’s business model. Under the motto “Serving you, serving nature”, the specialist for washroom hygiene products, workwear and dust control mats offers its customers a product rental service which is centred on the responsible stewardship of the environment. In 2014, CWS-boco invested in the expansion and modernisation of its service network. Among other things, a new laundry concept was developed to place an even sharper focus on the sparing use of resources. By the end of 2014, CWS-boco lowered the amount of energy consumed per kilogramme of laundry – aggregated from the figures for mats, hand towel rolls and workwear – throughout the Group by 8.5 per cent as compared to 2012. This reduction was made possible thanks to a comprehensive range of measures which included process optimisation, more efficient facilities and equipment and new high-tech laundries. The use of the innovative dispatch planning tool “Optimize my Day” has also enabled CWS-boco to save resources: in 2014, the service fleet drove 850,000 fewer kilometres thanks to improved dispatch planning. CWS-boco is also on track when it comes to training and continuing education: the company’s goal is to document all training and continuing education measures in a database by the end of 2015 and to set country-specific guidelines which are tailored to meet the individual needs of employees participating in training and continuing education programmes. Over 90 per cent of the company’s employees were already documented by the end of 2014. More information: www.cws-boco.com/en-US/sustainability-0.

ELG trades and recycles commodities for the stainless steel industry and operates in the market segment for superalloys. Sustainability is firmly anchored in the recycling company’s business model. ELG is a driving force behind the Group’s commitment, and it published its first CR report in the spring of 2014. The company lives up to its high level of responsibility for products along the value chain by continuously raising its own environmental and safety standards. The division wishes to further improve its (already) effective alarm system for radioactivity of material deliveries at trans-shipment centres. In 2014, the technology department reviewed and improved its radioactivity audits as well as the detection equipment it uses around the world. In addition, ELG kicked off a project aimed at identifying health and safety risks to employees so that it can better avoid workplace accidents in the future. A first milestone was reached in 2014, when a global reporting system for absences due to accidents and illness went live. In the innovation action area, the division’s objective is to further expand its carbon fibre recycling activities. In 2014, ELG increased the volume of recycled carbon scrap to 458 tonnes. Further details can be found in ELG’s CR Report at www.elg.de/en/about-elg/philosophy.html.

TAKKT intends to establish itself as a shining example for sustainability within the industry by 2016 on the basis of the Group-wide “SCORE” (Sustainable Corporate Responsibility) programme. In order to meet its clients’ ecological and social standards, TAKKT – a B2B direct marketing specialist for business equipment – is offering an expanding range of “green” products such as climate-neutrally produced transport equipment, environmentally friendly packaging solutions and office furniture which is crafted using recycled materials. In 2014, such products made up 6.6 per cent of the company’s revenue, representing an increase. TAKKT also involves its business partners in its efforts to enhance sustainability: a supplier sustainability evaluation system launched as a pilot project in 2013 was expanded to include additional companies and suppliers in 2014. TAKKT presently sources 23.7 per cent of its products from certified suppliers. In order to recruit and promote talented individuals, the division has kicked off the implementation of a systematic human resources development programme – beginning with its largest segment, the Business Equipment Group, which has approximately 1,000 employees. The programme is expected to go live by the end of 2015. During the year under review, a computerised applicant management system was established and various measures designed to help the company retain high-potential employees were implemented. For more information, please see TAKKT’s 2015 Sustainability Report and Progress Report at www.takkt.de/sustainability-reports.html.

In keeping with its vision for sustainability, “We offer quality of life”, the METRO GROUP and its four sales divisions METRO Cash & Carry, Media-Saturn, Real and Galeria Kaufhof are continually pushing forward with their strategic and operational efforts to anchor sustainability within their core business. In order to guarantee product quality and safety, as well as to ensure that products are not harmful to society and the environment, the international retailer group has taken steps to make certain that the origins of its merchandise can be traced. To accomplish this, it has taken an innovative approach: the company has implemented an international industry-wide solution to bring about full transparency along the entire supply chain as to the resources used and the products sourced. Customers of all METRO Cash & Carry shops in Germany can already trace the origins of meat and fish products. Shoppers can use a smartphone app to access product information such as the type of animal, its origin, fishing and farming practices and the date it was processed. The METRO GROUP’s general objective is to source products in as sustainable a manner as possible. The Group’s procurement policies form the basis for this. In addition, processes are developed by which ecological, social and economic effects are assessed. In order to increase employee awareness of sustainability and to bring about behavioural changes, the Group has developed general information campaigns as well as a variety of training programmes. In 2014, the programmes already included an e-learning module on the issue of sustainability and procurement specialist training programmes designed to ensure that social standards are complied with along the supply chain. More information: www.metrogroup.de/en/responsibility.