Pdf version (3.2 MB) - Kesko
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The selections of <strong>Kesko</strong> Food, Kespro and<br />
K-food stores do not contain species given<br />
a red rating in the traffic light type format<br />
in WWF Finland's (www.wwf.fi) fish guide,<br />
such as eel, Atlantic Halibut and fresh tuna.<br />
<strong>Kesko</strong> Food, Kespro and K-food stores promote<br />
the species with a green rating, such<br />
as perch, pike, vendace, in their selections.<br />
When making decisions on selections, sustainable<br />
fish stocks and MSC certified suppliers<br />
are preferred. <strong>Kesko</strong> Food supports<br />
retailers' opportunities to sell fish caught<br />
in local waters using sustainable methods.<br />
At the end of 2011, there were six MSC certified<br />
products in the Pirkka range.<br />
GUIDANCE FOR SUSTAINABLE<br />
PURCHASING<br />
For supplier audits, <strong>Kesko</strong> uses international<br />
assessment systems – BSCI auditing<br />
and SA8000 certification. The objective is<br />
to do business in high-risk countries only<br />
with those suppliers who have passed the<br />
audit. <strong>Kesko</strong>'s suppliers in high-risk countries<br />
have around 247 BSCI audited factories.<br />
<strong>Kesko</strong> has a Steering Group for Responsible<br />
Purchasing, which promotes the sharing<br />
of best practices within the Group. The<br />
steering group, which meets approximately<br />
four times a year, consists of the purchasing<br />
representatives of various divisions.<br />
In China, <strong>Kesko</strong> supports its suppliers of<br />
home and speciality goods by monitoring<br />
activities. The local monitor guides, trains<br />
and oversees the terms of employment and<br />
working conditions of <strong>Kesko</strong>'s Chinese suppliers,<br />
and the observance of environmental<br />
and chemical regulations. A total of 64 factory<br />
visits were conducted in China in 2011.<br />
Rautakesko monitors and improves<br />
the working conditions of its suppliers in<br />
the Far East through Eurogroup cooperation.<br />
BSCI audits cover the evaluation of<br />
occupational health and safety practices,<br />
compliance with legislation concerning<br />
working time and compensation as well<br />
as management practice in the factories of<br />
Rautakesko's suppliers.<br />
<strong>Kesko</strong>'s buyers are provided regular training<br />
in responsible purchasing practices.<br />
<strong>Kesko</strong> Food's buyers of processed foods<br />
received more information on BSCI and<br />
responsible purchasing in December 2011.<br />
“The event was useful for the whole product<br />
line. There was a wide-ranging discussion<br />
on how we could better promote and<br />
monitor BSCI audits of suppliers in high-risk<br />
countries. Responsible operating practices<br />
have a comprehensive impact on the whole<br />
purchasing process. At the very beginning,<br />
when searching for new possible suppliers,<br />
we observe the candidates and take up possible<br />
drawbacks. The aim is to find suppliers<br />
who share the same responsible principles<br />
as <strong>Kesko</strong> Food,” says Product Group Manager<br />
Tuuli Luoma.<br />
Tuuli Luoma became a member of the<br />
BSCI's Food Working Group at the beginning<br />
of 2012.<br />
“From the group meetings, I'm expecting<br />
plenty of open dialogue with participants<br />
from different countries and a joint view<br />
on how to improve the processes. I believe<br />
that group work will increase the knowledge<br />
of the various sectors of responsible<br />
purchasing across the entire product line,”<br />
says Tuuli Luoma.<br />
TOP PRIORITy TO DOMESTIC<br />
PRODUCTS<br />
When products are selected to the Pirkka<br />
range, top priority is always given to the<br />
domestic alternative, provided that it meets<br />
the quality and price criteria.<br />
The domestic content of Pirkka products<br />
in fresh foods, such as meat and processed<br />
meat, liquid dairy products, such as milks<br />
and creams, is very high, even 100%.<br />
A significant part of products purchased<br />
from abroad are those which are not available<br />
in Finland, like fruits and canned foods.<br />
The domestic content also depends on the<br />
seasons of the year: domestic products are<br />
not always sufficiently available around the<br />
year.<br />
LABELLING PROvIDES SUPPORT<br />
FOR CUSTOMERS<br />
In the package labelling of its own brands<br />
and imports, <strong>Kesko</strong> complies with Finnish<br />
law and with EU legislation. Package labelling<br />
of <strong>Kesko</strong>'s own food brands always comprises<br />
– package size and space permitting<br />
– nutritional values, even if not required<br />
by law.<br />
some 680<br />
K-environmental stores<br />
In the food trade, the building and home improvement trade and the agricultural<br />
trade, environmental management is based on the K-environmental store model.<br />
A K-environmental store works for the good of the environment, helping its customers<br />
to make sustainable choices. When a store becomes a K-environmental<br />
store, all its employees receive training in environmental issues.<br />
REspONsIblE PURCHasING aNd saLEs<br />
All Finnish Pirkka products have had the<br />
name and location of the manufacturer<br />
indicated on packaging for over 25 years.<br />
Foreign Pirkka products bear the name of<br />
the manufacturing country. Finnish Pirkka<br />
products always carry the Swan label to<br />
indicate domestic origin if the criteria set<br />
for this are fulfilled. The current number<br />
of Pirkka products with the Swan label is<br />
nearly 270.<br />
Since summer 2011, the country of origin<br />
of meat has been indicated on the list of<br />
ingredients in those Pirkka products which<br />
have meat as one of the main ingredients.<br />
Legislation requires that the area where<br />
fish has been caught must be indicated,<br />
but <strong>Kesko</strong> has expanded such information<br />
to concern also fish products in the Pirkka<br />
range, such as fish fingers and canned tuna.<br />
There are now around 260 products for<br />
which the origin of the main ingredient is<br />
indicated. The objective is to have the information<br />
on origin added to most meat and<br />
fish products by the end of 2012.<br />
The country of origin is indicated on most<br />
private label products of K-citymarket and<br />
Anttila. This information will be added to<br />
the remaining products during 2012.<br />
THE PRODUCT RESEARCH<br />
LABORATORy HAS ISO 17025<br />
ACCREDITATION<br />
<strong>Kesko</strong> Food has a Product Research Laboratory<br />
of its own, which monitors the quality<br />
of groceries and home and speciality goods<br />
sold by K-food stores, K-citymarkets and<br />
Anttila and Kodin Ykkönen department<br />
stores. It is the only research laboratory for<br />
trading sector private labels in Finland to<br />
have ISO 17025 accreditation, which is international<br />
certification. Based on the Food<br />
Act, this accreditation also enables acting<br />
as a self-control laboratory approved by the<br />
Finnish Food Safety Authority Evira.<br />
Obtaining and maintaining ISO 17025<br />
accreditation necessitates a high level and<br />
continuous development from the laboratory.<br />
The accreditation requires that a quality<br />
system in compliance with the standard<br />
has been prepared for the laboratory and the<br />
measuring instruments used are traceably<br />
calibrated and analysis methods validated,<br />
<strong>Kesko</strong> Corporate Responsibility Report 2011 31