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ENvIRONMENTal REsPONsIBILITy Transportation for Kesko Food and Anttila in Finland is handled by Keslog Ltd, with a total distance of 37.9 million kilometres travelled by vehicles in goods transport in 2011. Own vehicles and those controlled by Keslog accounted for 34,540 CO 2 e of the carbon dioxide emissions from transportation. In 2011, the CO 2 emissions from outsourced transportation controlled by Keslog were 9,560 tons. Rautakesko's transportation is handled by Itella Corporation. The total distance travelled in transport for Rautakesko in Finland was 1.6 million kilometres, of which 90% was by vehicles assigned for Rautakesko's logistics only. The emissions from this transportation were 2,250 tons. In 2011, the total transportation distance in Finland was 39.6 million kilometres. The CO 2 e emissions from transportation in Finland were 46,350 tons. The total volumes transported by Keslog decreased less than the transport kilometres, which is why the relative emissions per transport kilometre were 2.3% lower than in the previous year. Compared to the 2007 level, the relative emissions from transportation have decreased by 1.1%. The total volume of imports forwarded by Keslog was 318,000 tons, showing a decrease of 0.7% on the previous year. There is no information on kilometres driven or any emission calculations available for import transportation. Transportation from Europe was handled by trucks, semi-trailers and containers, and from outside Europe only by containers. Kesko Food accounted for 74% of the total volume of imports. Transportation of subsidiaries in other countries has been divided between a larger number of companies than in Finland and part of the transportation is made from manufacturers directly to endusers. Transportation statistics are incomplete and annual data is not based on a consistent database and statistics are not presented in this report. Transportation statistics are developed in order to provide information on the other operating countries as well. In 2011, air miles in Kesko employees’ business travel totalled 10.3 million (9.5 million in 2010) and their CO 2 emissions were 2,101 tons (1,935 tons in 2010). Emissions from air travel represent only a small part – roughly 1.2% – of the Group’s total emissions. In accordance with Kesko's travel policy, the environmental impacts from travel are considered when making decisions concerning travel. Virtual meetings are part of the ordinary meeting procedure. Read more on page 74. Kesko had 651 company cars in use in Finland at the end of 2011. Kesko’s company car policy recommends an emission level below 160 g CO 2 /km. In 2011, the average emission level was 146 g CO 2 /km (155 g CO 2 /km in 2010) and the total emissions from company cars were 2,949 tons (2,505 tons in 2010). The calculation also includes private travel by the company cars. Part of Kesko’s business travel is carried out by employees in their own cars. In 2011, allowances paid for such travel in Finland covered 8.0 million kilometres. Kesko does not take a stand on emissions from business travel carried out by employees’ cars and they are not included in Kesko’s emission figures. If it is assumed that the average emission level of employees’ cars was 180 g CO 2 /km, the total emissions from such business travel would have been about 1,440 CO 2 tons. INITIATIvES TO REDUCE GREENHOUSE GAS EMISSIONS AND REDUCTIONS ACHIEvED, EN18 In its own operations, as well as through the services and products it offers, Kesko makes effective efforts to operate in ways in which to curb greenhouse gas generation. Read more on page 54. By improving energy efficiency and adopting carbon-free electricity Kesko has been able to significantly affect the climate change impact of properties. For example, in Finland, when electricity purchased by Kesko and K-retailers is included in the calculation, the CO 2 emissions from electricity have decreased by 77% (2001 is the base year, with CO 2 emissions totalling 220,644 tons). 76 Kesko Corporate Responsibility Report 2011 The positive trend in the CO 2 emissions from transportation in 2011 is attributable to the improved logistics efficiency. Keslog has long reduced emissions from the K-store supply chain by centralising distribution. Key methods for improving logistics efficiency also include the optimisation of transport routes and a high volumetric efficiency. A significant part is also played by efficient return logistics with, for example, purchased loads or carrier trays and recycling components, such as pallets, roll containers, cardboard, bottles or cans, collected on the return route. On several years, training in economical driving styles has also been arranged for drivers. In 2011, a two-tier trailer was tested in long distance trunk delivery transportation as a new solution for improving transportation efficiency. The volumes of return logistics will increase significantly in 2012, as the collection of recyclable glass bottles also from food stores begins. In 2011, Kesko continued to support the CANEMU project of the Finnish Environment Institute SYKE, and joined the TAPRE project of the EcoEfficient Tampere programme, the objective of which is to promote energy efficiency in the Pirkanmaa region. EMISSIONS OF OZONE-DEPLETING SUBSTANCES By WEIGHT, EN19 The use of ozone-depleting substances is not material in the K-Group’s operations and the phase-out of HCFC is not reported. CFCs (R12 and R502) are no longer used in K-food store refrigeration equipment (prohibited by law since 2000). HCFC chlorofluorohydrocarbon refrigerants, such as R22, are still used at some old store sites and the existing equipment will be used until the end of their life cycles. This refrigerant will be prohibited from the beginning of 2015. The R404a HFC substance is currently the leading refrigerant in K-stores. R744 technology, using carbon dioxide recovered to 100% from industry processes as the refrigerant, is also used in some K-food stores. The gas temperature in the carbon dioxide process – higher than in the traditional refrigeration process – can be used in refrigeration units by building an efficient heat recovery system for heating service water and the incoming air of the air-conditioning system. Today, increasingly many K-food stores use carbon dioxide recovered from industrial processes as the refrigerant. The leading refrigerants in Keslog’s warehouses are NH 3 (ammonia) and R404a. The refrigerant in air heat pumps sold in the building and home improvement stores is R410A. NOx, SOx, AND OTHER SIGNIFICANT AIR EMISSIONS By TyPE AND WEIGHT, EN20 In 2011, the sulphur dioxide emissions (SO 2 ) from electricity and heat energy used in real estate properties in Finland (report by Energiakolmio Oy) were 189 tons, and nitrogen dioxide emissions were 211 tons, which is 344 tons of SO 2 e (381 tons in 2010). Ethene emissions (C 2 H 4 e) producing lower atmosphere ozone were 11.7 tons (12.9 tons in 2010. Nitrogen oxide emissions from purchased energy were 211 tons in 2011. The quantity of radioactive waste produced by using nuclear power was 1.6 tons (1.8 tons). The Kesko subsidiary Kestra Kiinteistöpalvelut Oy is a participant in Fennovoima’s nuclear power plant project. Read more at www.kesko.fi/responsibility. CO 2 emissions only are reported for transportation and business travel. Read more at EN16 and EN17. WATER DISCHARGE, EN21 Wastewater from Kesko's operations goes to municipal sewer systems. There is no water discharge referred to by GRI from Kesko's operations.
TOTAL WEIGHT OF WASTE BY TYPE AND DISPOSAL mETHOD, EN22 The total amount of waste generated in companies in Finland (Kesko Food Ltd (logistics), Kespro Ltd, Anttila Oy (logistics centre), Konekesko Ltd, Rautakesko Ltd and VV-Auto Group Oy) was 10,776 tons, of which 92% was recovered. The aggregate quantity of waste in the other operating countries was 9,628 tons, and the recovery rate there was 67%. In Finland, Kesko’s waste statistics mainly cover warehousing operations, while in the other countries, most of the waste included in statistics is generated in retail stores. In Finland, the quantity of mixed waste decreased significantly, as the new operating system for organic waste was fully introduced in the central warehouses. In 2011, the recovery rate in Kesko Food’s warehouses clearly improved from the previous year reaching 95% (84% in 2010). In 2011, the amount of mixed waste per cubic metre delivered was 0.15 kg (0.44 kg in 2010). The recovery rate of Anttila's new logistics centre opened in 2011 is over 99%. There are 223 recycling points made available to customers in K-food stores. A total of 338 million cans and 111 million recyclable plastic bottles were returned. In spring 2011, a reusable Chep crate replaced the Transbox crate in vegetable transportation. Their share of transportation via terminals operated by Keslog increased slightly. This year, the amounts of batteries and accumulators recovered through the K-Group stores were reported for the first time. The quantities are presented for the whole time during which they have been recovered in Finland. Waste management statistics on operations in Finland, tons Kesko Food (logistics) Kespro 4) Anttila (logistics centre) Rautakesko Car and machinery trade 2011 2010 2009 2011 2011 2010 2009 2011 2010 2009 2011 2010 2009 Waste for recovery 7,245 5,596 5,638 941 423 471 539 439 405 414 689 969 599 WEEE 14 - - - 96 94 95 - - - - Landfill waste 1) 2) 391 1100 3) 901 3) 316 2 15 14 52 59 100 75 130 147 Hazardous waste 2) 18 3 - 12 - 3 - - - 61 120 65 Total 7,668 6,698 6,539 1,269 521 581 651 491 464 514 825 1,219 811 Recovery rate, % 95 84 86 75 99 97 97 89 87 81 91 79 74 1) Mixed waste and other components not suitable for recovery. 2) Composted organic waste and hazardous waste (from 2011) are included in the recovery rate. 3) In addition, in 2009: 110 tons and in 2010: 96 tons of building and special waste was treated, but such a one-off batch was not included in the calculation. 4) Reported by Kespro for 2011 for the first time. Waste management statistics for Sweden and Norway, tons Sweden Norway 2011 2010 2009 2011 2010 2009 Waste for recovery 1,482 2,055 2,044 1,224 699 654 Landfill waste 441 480 555 22 504 574 Hazardous waste 41 - 48 37 38 8 Total 1,964 2,535 2,647 1,283 1,241 1,236 Recovery rate, % 75 81 77 95 56 53 environmental resPonsibility Packaging delivered by Kesko Food's return logistics for recovery and reuse, 1,000 pcs 2011 2010 2009 Aluminium cans 100,236 103,149 74,161 PET bottles 56,841 53,540 28,463 Disposable bottles 5,107 4,266 2,685 Deposit bottles 356 452 362 Reusable crates 11,429 10,885 9,856 Impregnated timber and lead-acid batteries recycled by the building and home improvement trade (K-rauta and Rautia), Finland, tons 2011 2010 2009 Impregnated timber 931 840 858 Lead-acid batteries 4 5 22 Batteries and accumulators (Recser) collected in the K-Group stores, Finland, tons 2011 2010 2009 Batteries and accumulators 130 108 80 TOTAL NUmBER AND VOLUmE OF SIGNIFICANT SPILLS, EN23, AND COmPLIANCE WITH ENVIRONmENTAL LAWS AND REGULATIONS, EN28 The ISO 14001 certified Kesko units manage their environmental risks and readiness to act in exceptional and emergency situations in accordance with the requirements of the standard. One of the biggest risks for trading sector companies is fire, which is why employees have been given appropriate instructions and training. In 2011, there were no reportable environmental damages or accidents within the Group. Waste management statistics for the Baltics, Russia and Belarus, tons Estonia Latvia 1) Lithuania Russia Belarus1) 2011 2010 2009 2011 2011 2010 2009 2011 2010 2009 2011 Waste for recovery 402 158 196 189 2,300 1,905 2,069 574 2,343 1,906 8 Landfill waste 43 271 422 478 1,050 796 992 1,113 771 889 , 53 Hazardous waste 7 - 8 7 25 11 21 - - - 132 Total 452 428 626 674 3,375 2,711 3,082 1,687 3,114 2,795 , 193 Recovery rate, % 89 37 31 28 68 70 67 34 75 68 ,2) 4 1) Data of Latvia and Belarus for 2011 only. Kesko Corporate Responsibility Report 2011 77
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