quantitative statements.
report an A+ rating.
The origin and definition of the four key action areas are
Our plan is to issue reports every two years. The next sus-
Contact:
Petra Katzenberger
Head of CSR
Siemensstrasse 21
59199 Bnen
Phone: (+49 0) 2383. 95 41 43
petra.katzenberger@kik-textilien.com
This report has been printed by Drucktechnik Altona using solvent-free printing colours on Enviro Top Recycling, Blue Angel-accredited recycled paper.
All printing was CO2 neutral.
Photography: Jochen Rolfes
Design: Elbe 17 Ulrich Mevs Kommunikationsdesign
Legal disclaimer:
This sustainability report contains statements about future developments that are based on assumptions. We can issue no guarantees as to whether these
assumptions will prove to be correct. KiK Textilien und Non-Food GmbH assumes no liability and issues no guarantee in respect of any variations that may occur
or for potential editorial errors. In the event of a discrepancy between the German and English versions of this report, the German version shall prevail.
CONTENT S
CONTENTS
Page 3
Section 2 Strategy
Page 7
and management
What we understand by
sustainability
Page 12
Section 3 Open dialogue
Were being open and
reporting on our activities
Page 18
Section 4 Suppliers
Our partners
and sustainability
Page 22
Section 5 Products
Efficiently packaged
and shipped
Page 34
Section 6 Sites
Page 60
Section 7 Employees
Glossary, abbreviations
Page 52
Page 88
Independent auditors
report
Page 90
DEAR READER,
I am delighted and proud to present our sustainability report
For the first time in the history of our young company, we are
mous challenge for us. We also wont deny that were close
gas emissions.
are key, and each and every one of them demonstrates their
ces, rising energy prices, the growing gap between the de-
for that!
Stefan Heinig
DEAR READER,
Can discount retail ever be sustainable? Can selling low-
that are key to the discount business, the art of cutting out
unnecessary cost, allow for potential savings at all levels. We
use as little packaging material as possible, consume energy as sparingly as we can, use transportation by sea vessels
and go without extravagant fixtures and fittings in our stores
meaning that we use fewer resources, save energy and, at
Thats a good starting point for creating sustainable business processes. But doing business sustainably means a lot
more than that: we also consider the people who, directly
or indirectly, work on our behalf. We constantly refine our
ranges to ensure that we are offering our customers even
better products.
To achieve, maintain and improve results under such circumstances, a discount business needs to have clear goals, efficient processes, well-defined responsibilities and meaningful performance indicators in order to measure its success.
The way we approach these challenges at KiK is detailed
here, in our first sustainability report. At the centre of the report is an extensive stock-take where we provide information
about all our operational goals and the measures we have
put in place to achieve them. We tell you about what we have
achieved so far, and what we have yet to achieve. We sketch
out plans and ideas. And we do all this in an open, honest
and transparent manner.
Almost 20 years after the world summit took place, in Rio in
1992, the realisation that environmental problems and social
issues cannot be viewed separately from each other has lost
none of its relevance. In the face of disappearing animal species worldwide, climate change, the inequitable distribution
of wealth and the growing scarcity of resources, consideration of this paradigm has become a pressing task with farreaching consequences. Thats why it is so important for us
to constantly improve, in everything we do. We will therefore
1 compan y PROFILE
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Slovenia
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Croatia
year can principally be put down to the financial and economic crisis affecting central European countries (Slovenia, the Czech Republic and Hungary) and negative
conditions in the source market from the second half of
taxes.
Stefan Heinig
CEO/Chairman of the Board
Heinz Speet
HR
Mechthild Gottkehaskamp
Procurement
Darius Kauthe
Finance/Administration
Steffen Rosenbauer
Sales/Marketing/
Expansion/Foreign Sales
Germany
Austria
Czech Republic
Slovakia
Slovenia
Hungary
Total
1,346.70
191.4
54.2
22.2
31.8
17.9
1,664.20
2517
250
120
42
41
55
3025
16,980
1393
777
273
223
363
20,009
3,025 stores and 20,009 employees, generating sales of 1.66 billion euros
their factories.
discount clothing.
CO 2e emissions.
Last but not least, in all our stores, the focus is on pre-
upgrading.
10
Number of stores
1 compan y PROFILE
3.500
3.000
2.500
2.000
1.500
1.000
10
20
09
20
/0
08
07
/0
/0
06
/0
05
/0
04
/0
03
/0
02
01
/0
/0
0
/0
99
00
9
/9
98
8
97
/9
/9
96
/9
95
94
93
/9
/9
500
11
12
derstand by sustainability.
Production
sites
> 1,000
Goods received
Procurement
Outgoing goods
Employees
20,000
Influence
Stores
> 3,000
Sales
The illustration shows the focus of our direct-import business and the degree of potential influence on these areas.
The degree of direct influence is highest in sales
13
Economy
Ecology
Social
Turnover
Income/efficiency
Use of resources
(water and wood)
Pollutant emissions
(toxicology)
Biodiversity
In the third step of the process, we assign these performance indicators to four core areas where all processes
above illustration).
Economy
Economic performance and market presence in
Germany and other European locations
Ecology
Energy and water consumption, use of materials,
influence on biodiversity, causing emissions, waste
water and other waste through administrative,
warehouse, retail and transport operations
Working practices and employment
Ensuring fair and just working relationships at all German and European sites, taking into account equality of
opportunity and appropriate remuneration, the range of
training and career development opportunities offered
Economy
Indirect effects on socio-economic development in the
countries where our products are manufactured
Ecology
Energy and water consumption, the use of materials,
influence on biodiversity, emissions, waste water
and other waste from the manufacture of textiles and
non-food items commissioned by KiK, as well as
emissions caused by transport companies working
for importers
Society
Maintaining healthy relationships in the regional
surroundings of the European headquarters, dialogue
with key stakeholders
Product responsibility
The definition of minimum product requirements to
exclude potentially dangerous or harmful materials,
development of quality assurance systems to
ensure that standards are maintained, observation
of labelling requirements, suitable product advertising,
protection of customer data
Human rights
Adhering to employment practices, taking into account
the key standards recognised by the International
Labour Organisation (ILO) and defined in the Code of
Conduct
Product responsibility
Observing minimum product requirements
14
Suppliers
Social standards
Environmental
performance
Products
Quality
Range
Sites
Stores
Administration
Packaging
Employees
Communication,
information,
co-determination
The four strategic areas of action at KiK, with their key sub-topics
By assigning the key performance indicators for sustainability to the core areas of our business activity and
Procurement
Supplier
We ensure that basic rights of employment are respected
in the manufacture of goods sold by KiK
We work continuously to improve our suppliers environmental performance
We ensure that only high-quality products are manufactured
Product
We reduce emissions caused by the transport of goods
We reduce the amount of resources used for product
packaging
We offer an optimised range in terms of environmental
standards
Sites
We are optimising operation of our stores in respect of
energy efficiency and the reduction of emissions
We are optimising the working environment, reducing
environmental pollution and increasing biodiversity at our
European headquarters
In logistics, we are reducing emissions caused by traffic
and transport
Employees
We offer attractive training and career development
opportunities
We have an efficient communications, information and
co-determination system
We pay appropriate salaries and wages
Influence
Influence
Sales
The four strategic action areas, assigned to Procurement and Sales, and how able we are to influence them
15
sustainable development as an
employer
Quality
Social
standards
Environment
Product
range
Packaging
Transport
Stores
Administration
Logistics
Training and
career development
Communication,
information
and codetermination
Wages and
salaries
Sustainability management involves three different agents at different levels, all with specific tasks
and implementation
of stakeholder dialogue:
process
Status reports
auxiliaries
- energy savings in terms of electricity and heat
MANAGING SUSTAINABILITY
Overall sustainability report
ment, divisional and departmental heads develop sustainability programmes and submit proposals as to how the
companys objectives can be met. Each goal and measu-
16
developments.
KiK Europe
KiK Germany
KiK
administration
KiK logistics
KiK stores
Key performance
indicator
2009
2010
Figure
Transport emissions
39.99g CO2e/
product
40.9g CO2e/
product
28
Transport packaging
46.27g/product
39.42g/product
25
Product packaging
9.75g/product
9.45g/product
27
Primary energy
consumption
110.81 kWh/m2
112.02 kWh/m2
CO2e emissions
0.06 tonnes/m2
0.06 tonnes/m2
55
Electricity consumption
3,573.8 kWh/MA
3,327.1 kWh/MA
65
CO2e emissions
2.66 tonnes/MA
2.45 tonnes/MA
66
Water consumption
11.90 m3/<A
9.87 m 3/MA
38
Electricity consumption
1.25 kWh/pallet
1.27 kWh/pallet
67
CO2e emissions
0.93 kg/pallet
0.94 kg/pallet
68
Water consumption
1.98 m3/MA
6.68 m3/MA
38
Electricity consumption
39,323.98 kWh/
store
40,099.28 kWh/
store
69
CO2e emissions
29.26 tonnes/
store
29.83 tonnes/
store
70
57/58
17
decision-making process.
For a retailer that imports its products directly, this is
all the more important because we have to satisfy, on the
18
3 OPEN DIALOGUE
when it comes to ensuring environmentally-friendly product ranges and a socially responsible retail policy.
By publishing this sustainability report we want to reach
out to and inform all those stakeholders who place certain
expectations on what we do. These might be individuals,
our employees, but also any customer or consumer interested in the subject. Were looking to reach companies,
industry associations and bodies that shape the socio-political discussion. And we are also using this report to talk
to political decision-makers, in particular at a local and
community level.
As evidence of our intentions to be transparent and
open, we invited Thomas Schwarz, Head of International
Communication at CARE Deutschland e.V., to take part in
a debate with Dr. Michael Arretz. Their exchange shows
that even a discussion led by controversy can turn out to
be a cons tructive process, bringing closer two apparently
disparate points of view.
Dr. Michael Arretz: Mr. Schwarz, Im delighted that you
have accepted our invitation to talk to us and look forward
to the controversial issues that will surely come up. After
all, friction creates energy! And, on that note, may I just
confirm that it wasnt exactly an easy decision for you to
choose KiK as a cooperation partner.
Thomas Schwarz: Youre right. The decision to accept financial support for our projects from KiK, and in doing so
accept the company as a cooperation partner, was definitely not easy for us. Reports about the poor working conone hand, customers desire for a hassle-free shopping
ving growth at all costs all those things meant KiK wasnt
at KiK.
19
factor.
are observed.
there are some very good reasons why you have such a
ges in motion.
alities that may be very different from our own. For CSR to
of your efforts.
from that, KiK is the first and, so far, only discount clothing
CSR activities.
ments for employees. Until you can ensure that, it will re-
shes stitched a t-shirt for KiK, and then less on the next
20
3 OPEN DIALOGUE
track.
can an appropriate level of wealth be achieved everywhere, ensuring education and development.
Thomas Schwarz: To hear that might make someone
think youre a charity dedicated to bringing prosperity to
21
22
4 SUPPLIERS
23
tal standards.
employees also develop and manage training programmes for them. For more information about our quality assurance activities, see section 5 of this report.
As an international retail company, we maintain business contacts with local manufacturers in many coun-
dont operate our own factories, but work with local ma-
http://www.kik-textilien.com/unternehmen/
verantwortung/lieferanten/
24
4 SUPPLIERS
in our Code of Conduct are based on the ILO constitution and the relevant standards of the United Nations, en-
SUPPLIER AUDITS
commendation to Procurement.
nents.
25
preferred suppliers.
at the factory.
What exactly is checked during an audit varies according to the legislation of the country in question. In total,
around 175 points are assessed, usually falling into one of the following categories:
Workplace health and safety
http://www.kik-textilien.com/unternehmen/
verantwortung/lieferanten/
26
4 SUPPLIERS
tors.
formed.
ning programmes.
Among suppliers who successfully completed the programme, the compliance rate was 83%. Compared to
the previous year, when the rate was 62%, that signals
cess.
SUPPLIER CERTIFICATION
in the same fiscal year. Two left the programme and ten
were still enrolled at 31 December 2010. On average, the
27
as a whole.
PREMIUM SUPPLIERS
In 2011, we opened our own office in Dhaka, BanglaThe offices duties include supporting quality certificaAlongside our qualification programmes, we are aiming
programme.
larly speak with the people who work in them to find out
February 2009 and August 2010, 708 women and 226 men
manufacturing conditions.
wage.
to their hopes for the future. The second part of the ques-
28
4 SUPPLIERS
ween 20 and 30, half of them married, the other half single.
Close to half of the women had gone to school for between four and six years, half of the men for seven to nine
years. A total of 83% questioned gave financial reasons
when asked why they had left education.
The majority of those surveyed share a home with other
paid until the end of the next month, causing financial pro-
Awaj Foundation.
29
This fiscal year, working together with CARE Bangladesh, we are involved in a number of initiatives designed
stalls.
REFORESTATION
30
4 SUPPLIERS
skilled, better-paid work but less than half of the population of Bangladesh can do so. Education is compulsory,
but many families simply do not have enough money to
afford the necessary school materials. Instead of going
to school, around seven million children in Bangladesh
must make a key financial contribution to the survival
of their families. To break this vicious circle of poverty
and lacking education, and effectively exclude the use of
child labour in the clothing industry, we support a local
schooling project run by the NGO Gonoshahajjo Sangstha (GSS). GSS runs approximately 350 schools across
Bangladesh for children whose families are particularly
affected by poverty. All of the education, including the
teaching materials, is funded by donations. Through our
support alone, 1,920 children were receiving education
in six schools at year-end 2010.
For more information about how we work together with suppliers, read Facts and figures in section 3, figures 4-19 and
tables 2-8, plus section 11.
31
Deadline
06/2011
Define suppliers meeting the minimum requirements for buttons, care labels and labels in Bangladesh, in accordance with
the minimum requirements and Oeko-Tex standard 100 for all product groups, in all markets
06/2013
Log all components (buttons, zipper, neckbands etc.) and definition of suppliers in accordance with the minimum requirements and Oeko-Tex standard 100 for the childrens and baby collection in Bangladesh and other markets
12/2012
Establish a service unit in Bangladesh with three to five employees to advise agencies and suppliers
10/2011
Provide visibility into quality-related performance of all producers in all clothing areas
ongoing
Establish a supplier management system to select and support suppliers in the certification of their specific services and
capabilities
03/2012
Introduce a sample-picking process for textiles in Bangladesh, conducted by independent third parties and/or
KiK employees
06/2012
Deadline
12/2011
Provide visibility into supplier error rates in the production of selected non-food items
12/2011
10
Introduce a sample-picking process for non-food products in China, conducted by third parties and/or KiK employees
06/2012
11
Pilot project: expand random order sampling in selected product groups (batch marking)
06/2011
12/2011
32
4 SUPPLIERS
Deadline
12
Audit suppliers according to the Code of Conduct, re-audit performed every two years
ongoing
13
ongoing
14
Certify suppliers to improve compliance rates in Bangladesh and China. In Bangladesh, increase improvement rate from
83% (2010) to 90%, and from 69% (2010) to 80% in China
12/2012
15
Establish a short-visit programme with three campaigns in 2011 and five in 2012, to address issues such as fire prevention,
minimum pay and improving the quality of drinking water in Bangladesh
12/2012
16
12/2011
17
Perform random auditing of production sites in accordance with our Code of Conduct at least five to 10 clothing suppliers 12/2012
in 2011 and 15 in 2012
18
Expand audits on never-out-of-stock suppliers with production in the Far East to 100%
12/2011
19
12/2011
20
Log all importers and sample audits of seven to 10 suppliers in the non-food sphere
12/2011
Deadline
21
Capture the energy consumption in five factories in 2011, based on documentation, then in at least one factory using a
smart meter; balancing of CO2e emissions
12/2012
22
06/2012
23
Develop a questionnaire to determine a range of environmental parameters: water, waste water, waste, paper
06/2012
24
06/2012
25
12/2011
26
Establish at least five premium suppliers, with complete transparency into their use of resources, energy and water consumption
12/2012
27
Perform an environmental audit, focusing on waste water in India, to provide visibility into the volume and treatment of
waste water in dye works
06/2012
33
34
5 PRODUCT S
35
OUR RANGE
compliance.
selves.
accordingly.
36
5 PRODUCT S
When youre pregnant, its not that easy to find clothes that are
fashionable yet, at the same time, so comfortable that they meet your exact
needs. Thats why I teamed up with my promotional partner, KiK, to
design the Trendy Mama range. It was important to me that the individual
items of clothing be easy to combine, colourful, casual and yet, thanks
to stretch fabric, adapt to your figure. Pregnancy is a wonderful time,
one that every woman should enjoy and theres no reason the stomach
shouldnt look good too!
Verona Pooth
pur region a boost. In addition, locals are receiving training on subjects such as family planning, pregnancy and
healthcare.
As a retail partner, KiK guaranteed to buy all the carpets
37
QUALITY ASSURANCE
safety. They all spend their entire time ensuring that sup-
during transport.
scope of testing.
ronmental protection.
38
Hansecontrol GmbH
5 PRODUCT S
carry out random checks at suppliers, even during production. In doing so, we work closely with leading testing
TRANSPORT
institutes in Germany and abroad. Furthermore, our internal Quality Assurance department develops programmes
DELISTING
GmbH.
39
Goods received
Plane
Outgoing goods
Rail
Inland vessel
Truck
to direct transport.
emissions (46%).
40
5 PRODUCT S
goods between Asia and Europe, plus the use of rail and
gas emissions.
Since 2009, silica gel packets can only be used to absorb moisture during the transportation of goods with
PACKAGING
yet happened.
tic.
41
Deadline
28
ongoing
29
Create visibility into goods shipped to Europe via specific routes and means of transport from Asia
10/2011
30
Produce an emissions balance sheet for Asia-Europe goods transport based on specific means of transport
2012
31
Provide visibility into goods received via specific routes and means of transport from the ports of Hamburg, Rotterdam and 12/2011
Antwerp to Bnen
32
Calculate emissions for transport from the ports of Hamburg, Rotterdam and Antwerp to Bnen
2012
33
Test the expansion of the various emissions calculations to include NOx, SO2 and particulates
06/2012
34
12/2011
Deadline
35
Develop shipping specifications for suppliers in terms of transport packaging for the key ranges of clothing and toys based 05/2012
on the principle of reduce, reuse, recycle
36
Create transparency in respect of transport packaging material, quantities, procurement and disposal
12/2011
37
Calculate the type and quantity of carrier bags and replace 25% with environmentally friendly alternatives in 2011 and 50%
in 2012
10/2011
Deadline
38
Continue the baby organic cotton collection, in accordance with GOTS standards
12/2011
39
06/2011
40
06/2012
42
5 PRODUCT S
Deadline
41
Women's clothing: increase the proportion of Oeko-Tex standard 100 products to at least 25%
06/2013
42
Men's fashion: increase the proportion of Oeko-Tex standard 100 products to at least 40%
06/2013
43
Children's and baby clothing: increase in the proportion of Oeko-Tex standard 100 products to at least 30%
06/2013
44
Underwear: increase the proportion of Oeko-Tex standard 100 products to at least 40%
06/2013
45
Hosiery: increase the proportion of Oeko-Tex standard 100 products to at least 60%
06/2013
46
Home textiles: increase the proportion of Oeko-Tex standard 100 products to at least 65%
06/2013
47
12/2011
Deadline
48
Categorize the entire range according to specific hazards and risks; develop criteria for at least four categories (including
toys and household goods)
complete
49
12/2010
50
Create transparency in respect of products containing paper and/or wood: writing materials (notepads, greeting cards)
12/2011
51
Writing materials: test sales of 'Blue Angel' label recycled materials and replacement of products following a successful
test phase
05/2012
52
Create transparency in respect of the origin and manufacture of products containing wood and/or paper in two further
categories
12/2011
53
02/2012
54
Expand conversion of orders of products containing wood and/or paper to FSC, FSC-mix or recycled products, to go on
sale starting winter 2012
09/2012
The aim: develop fully sustainable product ranges carrying the slogan Products that help
Action
Deadline
55
12/2011
56
12/2011
57
12/2012
43
44
6 SITES
45
EUROPEAN HEADQUARTERS
All KiK Textilien und Non-Food GmbH business processes are managed from our headquarters in Bnen. This is
also where the headquarters of KiK Logistik I GmbH and
our main warehouse are located.
Day-to-day processes in management, stores and the
warehouse call for the use of large amounts of energy.
We distinguish between the direct use of primary energy namely natural gas, heating oil, petrol, diesel and
gas for our fleet of cars and trucks and the indirect use
of electricity, district heating and fuel by our forwarders.
Natural gas used for heating purposes is by far the biggest contributor to our use of primary energies. In terms
of indirect energy consumption, electricity is the most
important factor. Because we are continuously growing
as a company, our energy consumption also tends to rise
slightly year on year. In 2010, we began to supply some
of our stores in Germany with green energy. This led to a
significant reduction in electricity-related emissions in
total, greenhouse gas emissions fell by 15.4 kilotonnes
across Germany.
Our on-site sustainability strategy is aimed at reducing
or avoiding the use of non-renewable resources such
as electricity, paper and water, or replacing them with a
more eco-friendly alternative.
46
6 SITES
47
ned for each vehicle. This data will serve as the basis to
of goods.
OUR STORES
Due to the large number of stores we operate, our electricity consumption is by far the greatest in this area. During 2010, this amounted to a total 100.93 million kWh for
LOGISTICS
our 2,500 stores across Germany. Compared to the previous year, that represents a slight increase in average
2009.
stores have optimised cladding and an innovative ventilation system. Heating is provided by an energy-efficient
48
6 SITES
When getting our environmental management system off the ground, the
successful integration of our employees at our European headquarters
in Bnen was particularly crucial. Their marked environmental awareness is
proven by the range of projects currently being implemented or in planning to improve our environmental
performance across the supply chain.
Khalid Doukkali, Cert Auditor TV Nord
2011 in conjunction with Tengelmann Energie and Deutsche Telekom. During the one-year pilot scheme, electricity consumption in 53 KiK stores will be measured at
various points in the building every 15 minutes. This will
enable us to identify time periods and devices that see
a lot of electricity is used, and help us reduce electricity
consumption by up to 25%.
KiK is a funding partner of the German Environmental Management Association (B.A.U.M. e.V), the largest
business environmental initiative in Europe. The aim of B.A.U.M. is to raise awareness about the
principles of sustainability among companies, associations and institutions, and support them in implementing
preventative company management systems and introducing measures and initiatives to support
environmental and sustainability management.
49
Deadline
58
06/2011
59
Create transparency and use 100% environmentally friendly office materials made from paper and cardboard in our European headquarters and stores
12/2011
60
Provide visibility into the number and types of office equipment used and implement a programme to reduce energy consumption caused by use of office equipment
12/2012
61
Replace the paper-based advertising materials we use with 'Blue Angel' label recycled papers or, if that is not possible, to
FSC-quality, 45% in 2011, > 70% in 2012
12/2012
62
Replace our advertising brochures with 'Blue Angel' recycled material or, if not possible, to FSC-quality, 20% in 2011, >
70% in 2012
12/2012
63
Trial the conversion of business cards to white and 'Blue Angel' label material or, if not possible, to FSC-certified material
12/2011
64
Replace the cleaning materials we use at our headquarters and in our stores with more environmentally friendly alternatives (where, possible, bearing the 'Blue Angel' seal)
06/2012
65
Replace the toilet paper we use with toilet paper made from recycled materials
12/2010
66
Replace the copy paper we use with 'Blue Angel' and FSC-quality recycled paper
12/2010
67
Raise awareness among employees about how to conserve resources through paper usage in their day-to-day work
ongoing
68
Trial the use of automatic systems to improve air conditioning at our European headquarters
06/2011
69
03/2011
70
Provide visibility into electricity consumption caused by lighting and the European data centre
12/2011
71
06/2012
Deadline
72
10/2011
73
09/2011
74
07/2011
Deadline
75
12/2012
76
10/2011
50
6 SITES
Deadline
77
01/2011
78
12/2012
79
Build 15-20 new stores according to the EU's GreenBuilding standard in 2011 and 2012
ongoing
80
10/2011
81
Replace the lighting in 150 stores with more energy-efficient alternatives in 2011, and in 300 stores in 2012
2012
82
Reduce electricity consumption by 10% in 2011 and 15% in 2012 in converted stores
12/2012
83
12/2012
84
12/2011
85
12/2013
86
Pilot project: participate in a smart metering programme with 50 stores, to optimise our use of energy
09/2011
87
Trial replacement of the company fleet for departmental heads and management executives with more energy efficient
alternatives, with a view to reducing CO2 emissions
12/2011
88
Pilot project with natural gas-powered vehicles to determine ranges, consumption and costs
10/2011
Deadline
Identify and record the entire KiK truck fleet since 2005
ongoing
annually in August
Deadline
90
Capture and calculate the volume of fuel used across our entire truck fleet
ongoing
91
Calculate the CO2e emissions of the KiK truck fleet and expand calculations to include NOx, SO2 and particulates
06/2012
92
Trial procurement options for a vehicle with bi-fuel or gas drive for the KiK truck fleet
ongoing
93
ongoing
94
complete
95
12/2011
96
Develop environmentally relevant requirements for logistics providers; workshops with selected partners
06/2012
97
Calculate the transport volume and impact in tonnes per regional forwarder
ongoing
annually in January
98
10/2012
51
52
7 EMPLOY EES
53
At 16 years old, our youngest employee is still in education while, at the age of 78, our oldest is a pensioner
and works part-time in one of our stores.
54
7 EMPLOY EES
whom it is addressed.
55
term announcements are made by posting them in display cabinets. In addition, headquarters and individual
Logistics
Salesperson (m/f)
Headquarters
Bachelor of Arts Retail (m/f)
Architectural draughtsman (m/f)
Business economy expert/Bachelor of Arts (m/f)
Office administrator (m/f)
Laboratory assistant (m/f)
IT specialist in application development (m/f)
IT specialist in systems integration (m/f)
Property agent (m/f)
Wholesaling and foreign trade agent (m/f)
Marketing communications officer (m/f)
HR services officer (m/f)
56
7 EMPLOY EES
Good work deserves to be well paid. Thats why HDE calls for a minimum
wage for all retail staff.
By implementing a basic wage of 7.50 euros per hour, discount clothes retailer
KiK has sent out the right message to its employees, but also to the entire
industry. We are delighted that our commitment to a minimum wage has been
boosted by KiK. But collective bargaining and remuneration are just one
aspect: in the controversy-fuelled political debate, its important to remember
that only those companies that succeed in attracting and retaining well
trained, motivated employees will succeed in the retail sector in the long term. And to do that, they need to
pay them appropriately! As an employer, KiK has taken this on board.
Stefan Genth, CEO of the German Retail Federation (HDE).
57
curement employees the opportunity to gain certification. The courses consist of 15 different modules, including seminars and practical workshops, that take place
over the course of a year. Since 1998, close to 1,000 employees have taken part in these programmes. Sales assistants with good/very good results can apply to take a
de/karriere/kik-der-chancengeber/
tives.
58
7 EMPLOY EES
Deadline
99
ongoing
100
Plan, develop and introduce a 'new mother programme' with a starter package
06/2011
101
10/2011
The aim: increase the proportion of employment relationships subject to insurance contributions to more than 75%
Action
102
Deadline
Develop and introduce an indicator per sales manager/region to show the proportion of employment requiring payment of
national insurance
12/2011
Action
103
Further develop the worry letter and ideas letter employee complaints/suggestion systems
12/2011
Deadline
104
Document all training in the 19 jobs starting from 2000, taking into account training for young mothers and training with
no age restrictions, among others
06/2011
105
Plan, develop and implement a training programme for unskilled workers/employees who did not complete their school
education
08/2011
106
Plan, develop and introduce an extra-occupational training programme in our commercial departments
10/2011
107
Plan, develop and introduce a training and qualification programme accessible to all store workers
01/2012
108
Maintain the training rate at 10% in 2011, with the plan to increase it to 11% in 2012
12/2012
109
Maintain the number of trainees taken on permanently at 61%, above the national average
ongoing
110
Keep the proportion of former trainees who stay with us for at least three years at 50%
ongoing
111
Lead more than 55% of trainees to management positions, including team leadership
ongoing
59
Appendix
Facts and figures
Glossary, abbreviations,
Page 60
external sources
Page 88
Page 82
Page 90
1. Company
2. Quality
checked products
1.60
product
complaints
1.40
1.20
Number of products
1.00
0.80
0.60
0.40
0.20
3,500
3,000
2,500
2,000
1,500
10
20
*
09
20
500
20
08
/2
00
00
07
/2
20
20
06
/2
00
1,000
2006
2007
2008
2009
2010
In 2009, the fiscal year was aligned with the calendar year.
The short fiscal year only ran for eight months, from May to
Non-food*
2009
77.8 %
22.2 %
2010
74.3 %
25.6 %
Complaints [%]
* The non-food range consists of party products, cleaning agents, accessories, decorations, household products, home textiles, food, toys, office
materials, petcare and drugstore products
60
2
1
2006
2007
2008
2009
2010
3. Social standards
TABLE 3: IN AN AUDIT, SUPPLIERS ARE TESTED ON
INCREASED TO 71%
Imports [%]
Depending on the country and its specific laws, more than 175 points are
checked during an audit. These can be broken down as follows:
100
80
indirect imports
Area of focus
Abbreviation
Explanation
H&S
Documentation
Docmtn.
Proof of age
Time keeping
Payroll
Wages
Wages
Wage deductions
Minimum wage
Delayed wage payment
Overtime
Overtime
Overtime
Days off
Communication
Comms.
Suggestion scheme
Worker representation
direct imports
60
40
20
2009
2010
China
Bangladesh
1
4
India
Phillippines
Pakistan
20
60
Audits [number]
Taiwan
Others
400
300
200
100
Re-audit
2007
2008
2009
2010
critical
needs improvement
good
75
61
Workshops +
participants [number]
good
Workshops
200
Participants
150
100
50
Suppliers [%]
5
15
2008
2009
2010
Supplier certification
Bangladesh
Employees of Consulting Service International (CSI) offer qualification programmes for suppliers in China and
critical
needs improvement
good
80
Suppliers [%]
Quick Scan
15
24
Bangladesh
critical
needs improvement
good
61
AS HIGH AS IN CHINA
75
Bangladesh
50
China
100
80
completed
successfully
60
40
62
not audited
an
w
Ta
i
an
ki
Pa
in
pp
ili
Ph
audited
st
es
a
di
In
hi
C
Ba
na
20
n
de gla
sh -
25
programme ongoing
ended prematurely
RATED AS GOOD
2009
Evaluation [%]
60
Bangladesh
critical
needs improvement
Bangladesh
40
100
80
60
40
20
H&S
Docmtn.
Wages
Overtime
Comms
OVERTIME
Evaluation [%]
50
50
Bangladesh
China
critical
needs improvement
Category
2009 correction
rate in %
2010 correction
rate in %
Improvement
in %
H&S
68,1
79,8
+11,7
Docmtn.
78,9
88,9
+10,0
Wages
72,2
80,8
+8,6
Overtime
12,5
80,0
+67,5
Comms.
78,6
88,1
+9,5
Total
62,1
83,5
+21,42
TO 70% IN 2010
5
8
60
H&S
Docmtn.
2009
Wages
Overtime
Comms
16
11
2010
China
100
80
60
40
20
H&S
Docmtn.
Wages
Overtime
Comms
63
OVERTIME
does not exist
good
needs
improvement
68,9
+11,1
Wages
36,4
41,7
+ 5,3
Overtime
14,3
86,7
+72,4
Comms.
25,0
66,7
+41,7
Total
37,7
69,3
+31,6
60
40
20
Timely
payment
Contract
ID
after
57,8
before
Docmtn.
80
after
+27,7
before
82,5
after
54,8
before
H&S
100
after
Improvement in %
before
2010 rate in %
after
2009 rate in %
before
Category
Bangladesh
China
Drinking
water
Manual
The introduction of key performance indicators (KPIs) represents an intensification of our qualification programmes.
MOST IMPROVEMENT
not available
needs
improvement
Documentation
Contract
Documentation
Identification
Documentation
Manual
Documentation
Maternity leave
Drinking water
64
40
20
Timely
payment
Contract
ID
after
before
Timely payment
after
Wages
60
before
Explanation
after
KPI
before
Area
80
after
China
100
before
and China.
good
Drinking
water
4. Product ranges
FIGURE 20: THE PROPORTION OF OEKO-TEX PRODUCTS
FELL BY 7% IN 2010
100
IMPROVED
2009
2010
80
60
160
2010
2009
140
120
100
80
60
40
40
20
20
s
ck
So
W
om
W
om
en
s
c
lo
th
in
to g /
en
ps
s
cl
o
bo thi
t to n g
m /
s
M
en
Ch
sw
ild
ea
re
r
n
sc
lo
th
in
g
Ba
by
cl
ot
hi
ng
Ho
m
e
te
xt
ile
s
Un
de
rw
ea
r
Baby clothes
Underwear
Total
All products were certified to the Global Organic Textile Standard (GOTS).
FIGURE 23: IN 2009 AND 2010, ONE MILLION PATCHWORK
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
ay
0
Ju 9
n
09
Ju
l0
Au 9
g
Se 0 9
p
O 09
ct
N 09
ov
D 09
ec
Ja 0 9
n
Fe 10
b
M 10
ar
Ap 10
r
M 10
ay
1
Ju 0
n
1
Ju 0
l1
Au 0
g
Se 10
p
O 10
ct
N 10
ov
D 10
ec
10
35
30
25
2009
20
2010
15
10
5
65
5. Packaging
BY 3% IN 2010
Product packaging [kilotonnes]
30
25
2009
2010
20
15
2010
2009
6
5
4
3
2
er
al
at
To
t
ia
ls
ss
la
G
pl
at
in
um
Ti
iu
tic
as
at
ur
al
Al
Pl
.
tc
Pa
pe
r,
e
lm
10
Fi
Film
Wood
Others
Total
* The extrapolation was performed based on the disposal of transport packaging in 1,000 German stores. During 2010, KiK disposed of 6,492.2 tonnes
of cardboard, 419.4 tonnes of film, 48.7 tonnes of wood, plus 1,232.2 tonnes of
other materials.
66
50
2009
40
30
20
10
2010
Cardboard
11
10
9
2009
2010
7
6
5
4
3
2
1
Explanation
(DIRECT TRANSPORT)
direct transport
indirect transport
CO2e [kilotonnes]
30
Number
CO2e (tonnes)
Sea transport
12.380
99,81
15.454
Onward forwarding*
12.380
100
536
Air
24
0,19
408
Total
12.404
100
16.398
2010
* Transport from destination port to Bnen (see Figure 31).
25
20
15
10
5.
Overseas
EMISSIONS
Total
* CO2e is the abbreviation for carbon dioxide equivalents and is the internationally recognised measure for the environmental impact of greenhouse
gases.
CO2e [t]
Inland vessel
121
Rail
Truck
248
CO2e [kilotonnes]
167
20
2009
15
2010
FIGURE 31: 91% OF OUR TRANSPORTED GOODS ULTIMATELY REACHED BNEN BY INLAND VESSEL AND RAIL
10
[%]
5
54
direct transport
indirect transport
37
67
7. Sites
CO2e (tonnes)
Transport by sea
52
4.840
Trucks (Europe)
46,3
4.307
Forwarding
1,7
160
Total
100
9.307
m2
160.22
75.094
58.551
26.575
from primary sources. When establishing our CO2e emissiFIGURE 34: SINCE 2001, OFFICE SPACE HAS
INCREASED BY 64%
Inland vessel
40
Rail
68
14
12
10
8
6
4
Truck overseas
2001 - 2005
from 2006
52
Warehousing 0.1
Transportation 17.8
Packing 4.9
Production 65.1
Figures provided by Tengelmann Energie GmbH
65.1% corresponds to 1.16 kg of CO2e
68
09
20
m
f ro
-2
00
9
20
05
-2
00
5
00
00
20
20
01
-2
99
9
-1
99
19
96
94
1.79 kg CO2e
19
Stores 9.8
-1
10,000
[CO2e emissions as a %]
30,000
00
0
WORK RUGS
50,000
-2
70,000
19
99
INCREASED CONTINUOUSLY*
0,6
0,5
0,4
0,3
0,2
0,1
500
06 / 07
400
07 / 08
09
08 / 09
10
300
al
To
t
er
th
O
en
tl
am
ca
tri
ec
ps
l
ee
St
Fl
uo
re
sc
El
re
cy
cl
ab
Re
si
du
al
w
as
te
le Da
p a yt
ck o ag da
in y
g
ss
la
G
Pa
pe
100
BY 600
65% OVER 2009
500
400
300
200
100
2009
2010
2009
FIGURE 41: IN 2010, WE REDUCED OUR USE OF A4
Logistics
Total
10.000
8.000
30
6.000
2009
4.000
2.000
2006
2007
2008
2009
2010
14
2009
12
25
2010
20
15
10
5
Administration
2010
10
8
Recycled paper
(Blue Angel label)
Total
6
4
2
Administration
Logistics
Total
69
60
Number of GreenBuilding
stores
50
40
30
20
10
10
8
6
4
2
2008
Blue Angel
Recycled
Fresh fibre
2009
2010
3,500
3,000
2,500
Number of stores
* Office materials include envelopes, note pads, flipchart pads, hanging file
folders etc., dividers, folders, spine labels
2,000
1,500
1,000
90
116 t
8,232 t
80
Fresh fibre
Recycled
70
60
50
40
30
500
20
93
/9
94 4
/9
95 5
/9
96 6
/9
97 7
/9
98 8
/9
99 9
/0
00 0
/0
01 1
/0
02 2
/0
03 3
/0
04 4
/0
05 5
/0
06 6
/0
07 7
/0
08 8
/0
20 9
09
20
10
10
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
93
/9
94 4
/9
95 5
/9
96 6
/9
97 7
/9
98 8
/9
99 9
/0
00 0
/0
01 1
/0
02 2
/0
03 3
/0
04 4
/0
05 5
/0
06 6
/0
07 7
/0
08 8
/0
20 9
0
20 9
10
200,000
70
Marketing material*
Sales flyers
Fuel
Diesel
418,000
25
CO2e [tonnes/truck]
2009
Number of vehicles
2010
70
60
50
40
30
20
10
Forwarders
2010
20
15
CO2e [kg/km]
Trucks [number]
2009
25
10
5
Euro 3
Euro 4
Euro 5
Total
2009
1
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
0,1
2010
Forwarders
Germany
Austria
Hungary
Czech Republic
Slovenia
Slovakia
Total
Diesel vehicles
230
49
13
17
13
326
Petrol vehicles
Total
233
49
13
17
13
331
Each vehicle meets at least the Euro 4 standard, though a large number of our vehicles are also Euro 5 compliant.
71
2010
0,25
0,2
*
**
0,15
0,1
CO2e [g/km]
CO2e [kg/km]
2009
e
ag
Petrol
er
en
ov
Sl
Natural gas
Av
ia
y
an
m
er
G
un
Re Cz
pu e c
bl h
ic
ga
ry
ria
st
Au
Sl
ov
ak
ia
0,05
Diesel
200
175
150
125
100
75
50
25
Diesel fleet
Natural gas-fuelled
vehicle (bi-fuel)*
PER KILOMETRE
14
12
0.2
10
8
0.15
0.1
10,0
Diesel
7,5
Natural gas
Petrol
5,0
2,5
Diesel fleet
4
0.05
2009
72
2010
Natural gas-fuelled
vehicle (bi-fuel)*
Edition).
[%]
6 Trucks (external
providers)
0 Refrigerants
1 Trucks
(own fleet)
Scope 1 :
4 Cars
4 Heating oil
35 Electricity
8 District
heating
42 Gas
Scope 3:
2009 [CO2e
in kilotonnes]
2009 [CO2e
in kilotonnes]
in %
98.8
87.1
11.84
Goods received
(scope 3b)
25.1
25.7
2.4
123.9
112.8
8.9
73
BY 13% IN 2010
CO2e [kilotonnes]
98.792
87.116
106.485
100
+8 %
-12 %
80
60
40
2009
2010
in %
German sites
(Scope 1, 2, 3a)
84.9
69.5
18.14
Goods received
(Scope 3b)
25.1
25.7
2.4
Total
110
95.2
13.45
20
2009
2010
165
160
155
150
145
140
170
06/07
07/08
2008
2009
2010
* d.PE = direct primary energy consumption (natural gas, heating oil, petrol,
diesel)
100
TONNES
CO2e [kilotonnes]
2009
90
2010
80
70
60
50
40
135.34 139.62
2009
140.00
2010
120.00
100.00
80.00
60.00
30
40.00
20
al
g
lin
oo
To
t
ty
ar
-p
ird
tru
ck
ck
tru
Th
ar
K
Ki
oi
g
ea
tin
at
H
he
ct
tri
is
D
g
in
as
G
ty
ci
tri
ec
El
13.83 13.53
8.87 11.05
0.15 0.14
20.00
10
74
160.00
Natural gas
(heating)
Heating
oil
Petrol
0.06 0.05
Diesel
Natural gas
(company
(cars)
trucks + cars
Germany/abroad)
SINCE 2008
Electricity production mix [%]
140
120
Coal
100
80
54
60
Natural gas
25
Oil
Nuclear
40
Renewable
20
7
06/07
2008
07/08
2009
2010
Waste
120.00
99.11 104.28
2009
2010
100.00
80.00
60.00
40.00
18.77 18.97
58
56
54
52
50
48
46
7.05 7.79
20.00
44
Electricity
District heating
Third-party
trucks
(Germany and
abroad)
42
Grey energy
Green energy*
When sourcing electricity in Germany, KiK Textilien und NonFood GmbH relies on a portfolio of suppliers, starting with
100.00
80.00
60.00
40.00
20.00
06/07
07/08
2008
2009
2010
75
120
2009
2010
100
Electricity [kg/pallet]
80
1,5
0,5
60
2009
40
2010
Administration
Logistics
CO2e [kg/pallet]
20
Stores
1.50
1.00
FIGURE 65: IN ADMINISTRATION, THE AVERAGE ELECTRICITY CONSUMPTION PER EMPLOYEE* FELL BY AROUND
0.50
4.000
2009
2010
3.000
2009
2010
2.000
1.000
Electricity [MWh/store]
Electricity [kWh/employee]
7% IN 2010
40
30
20
10
2010
3,0
2,5
CO2e [t/store]
CO2e [tonnes/employee]
DUCED BY 7.4%
2,0
1,5
1,0
0,5
35
30
25
20
15
10
2009
2010
76
2010
10. Employees
TABLE 17: 94% OF ALL KIK EMPLOYEES WORK IN OUR
STORES
Administration
Logistics
Total
Number
15.966
602
412
16.980
Proportion in %
94
3,6
2,5
100
62
2.873
49
Insurance required
38
Low-income/short-term
employment (insurance
not required)
24
trainees who have left the company
former trainees
former trainees now in
management
76
Employees [%]
FEMALE*
100
2009
2010
Headquarters
15
Logistics
Sales
214
287
Total*
231
295
80
Female
60
40
CHILDREN
20
Employees in management
(366)
Headquarters
95
Logistics
26
Sales
4,893
Total
5,014
TABLE 18: THE PROPORTION OF TRAINEES AND APPRENTICES IN OUR WORKFORCE IS 10%
Trainees and apprentices
% proportion in the
workforce
10
Total
136
77
MID-THIRTIES
8,000
Employment relationship [%]
[Employees]
7,000
6,000
5,000
4,000
3,000
2,000
60
40
20
1,000
< 20
20-30
31-40
41-50
> 50
Kapovaz*
Permanent
Part-time
workers
Trainees and
apprentices
5-9.9 years
21%
3-4.9 years
21%
1-2.9 years
26%
Number
Proportion in %
Kapovaz:
part-time workers, employment
relationship requiring the payment of
social insurance and tax
6,664
39
Permanent:
full-time employees, employment
relationship requiring the payment of
social insurance and tax
4,395
26
4,193
25
Trainees/apprentices:
full-time workers, employment
relationship requiring the payment of
social insurance and tax as part of
the training
1,678
10
50
<1
Total
16,980
100
Logistics
Turnover [%]
Sales
4
3
2
r
be
r
D
ec
em
be
er
ov
em
ob
N
ct
be
st
pt
em
ly
gu
Au
Se
ne
ay
Ju
Ju
ril
ch
Ap
ry
ar
M
ar
br
nu
Fe
Ja
78
ua
Employees [number]
Number
150
Pension fund
2009
106
2010
78
Direct insurance
120
90
60
30
Headquarters
Logistics
Sales
Total
2010
Number
Proportion
Number
Proportion
Trainees
69
8.78 %
152
15.14 %
Logistics
41
5.22 %
101
10.06 %
Sales
670
85.24 %
734
73.11 %
Headquarters
0.76 %
17
1.69 %
Total
786
1004
2010
Trainees
Logistics
11
Sales
13
11
Headquarters
13
13
Average days
11.5
9.25
79
11. Society
Cooperation
partner
Project name
Location
Project description
Details 2009
Details 2010
Awaj Foundation
Basic medical
care
Bangladesh
Awaj Foundation
Health prevention
and advice
Bangladesh
School project
Bangladesh
Phulki
Hygiene project
Bangladesh
Phulki
Employee-employer dialogue
Bangladesh
Improvement of working
conditions by encouraging
communication between
employees and management.
Financed by KiK
Nine employee-employer
dialogue meetings took place
Phulki
Bangladesh
CARE
Bangladesh
Health camps
Bangladesh
Heroes2
Reforestation
China
Reforestation project
DKMS
Bone marrow
donation in
Germany
Germany
80
Cooperation
partner
Project name
Location
Project description
Details 2009
Details 2010
Germany
Commitment to supporting
children in need at a national
and international level
Gesicht Zeigen!
e.V.
Germany
Pro Ruhrgebiet
Germany
Germany
404
404
Austria
214
214
Slovakia
223
223
Slovenia
332
332
Czech Republic
527
527
Hungary
344
344
* 2009 is identical
** As no utility-specific data is available, electricity emissions factors have been selected to ensure consistency. The division of emissions from cogeneration
into heat and power is methodically inconclusive.
2.78
kg/kWh
0.22
kg/kg
3.27
Petrol
kg/litre
2.15
Diesel
kg/litre
2.78
Overseas
g/tkm
13.66
Inland vessels
g/tkm
15.66
Rail
g/tkm
17.31
Air
g/tkm
664.90
Heating oil
Gas
Natural gas (vehicles)
81
Complete
1.2
Complete
Organization profile
2.1
Complete
Section 1
2.2
Complete
Sections 1 and 5
2.3
Complete
Section 1
2.4
Complete
Section 1
2.5
Number of countries in which the organization operates and the names of countries
in which key operating sites are based or which are particularly relevant to the sustainability issues covered in the report
Complete
Sections 1 and 4
2.6
Complete
Section 1
2,7
Markets served (including a breakdown by regions, industries and customer structure) Complete
Section 1
2.8
Complete
Section 1
2.9
Key changes in the organization's size, structure or ownership during the reporting
period
Complete
2.10
Complete
Section 5
Report parameters
3.1
Complete
3.2
Complete
3.3
Reporting cycle
Complete
3.4
Complete
See About this publication and the foreword from Dr. Arretz
3.5
Complete
3.6
Complete
3.7
Complete
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities and outsourced
operations and other entities that can significantly affect comparability from period to
period and/or between organizations
Complete
KiK and its subsidiary KiK Logistik I GmbH are active in no joint ventures, do not
lease plant or outsource activities or other units
3.9
Basis for capturing and calculating data used as indicators and other information in
the report, including the assumptions and techniques underlying estimates
3.10
Complete
With this document we are reporting on sustainability for the first time
3.11
Complete
With this document we are reporting on sustainability for the first time
3.12
Complete
3.13
Policy and current practice with regard to confirmation of the report by a third party
Complete
82
Complete
Sections 1 and 2
4.2
Information as to whether the chairman of the highest governance body is also the
managing director
Complete
Section 1
4.3
Number of members of the highest governance bodies who are independent or do not Complete
have a seat on the board
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
Complete
Sections 1 and 7
4.5
Link between compensation for members of the highest governance body, senior
managers, and executives (including gratuities), and the organizations performance
(including social and environmental performance)
Complete
4.6
Processes in place for the highest governance body to ensure conflicts of interest
are avoided
Complete
4.7
Process for determining the qualifications and expertise of the members of the highest Complete
governance body for guiding the organizations strategy on economic, environmental,
and social topics
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of
their implementation
Complete
Sections 2, 4 and 5
4.9
Complete
Sections 2 and 4
4.10
Procedure for highest governing body to evaluate its own performance, in particular
with regard to its economic, environmental and social performance
Complete
4.11
4.12
4.13
Complete
4.14
4.15
4.16
Partially complete
4.17
Significant questions and issues raised by stakeholder inclusion and information as to Complete
how the organization responded to these, including within the scope of reporting
In Facts and figures. The company's membership of HDE and BGCCI are both
of strategic importance. KiK sits on the project committees for environment,
communications, staff development and HR. These involve neither a leading role
in office nor significant financial contributions.
Section 3
Section 3
Management approach
All management approaches are explained in section two, across all strategic areas of action. Targets and initiatives in these areas of action are described in detail in sections 4-7.
EC2
Financial implications of climate change for the organizations activities, and other
risks and opportunities associated with climate change
Complete
EC3
Partially complete KiK has operated a company pension plan since 2004. Since July 2011, KiK has
also increased its monthly contributions by 10%. The initiative is mentioned in
section 7 of this report.
EC4
Complete
No financial assistance of this kind was received during the reporting period.
83
EC5
Range standard entry level wage compared to local minimum wage at significant
locations of operation
Complete
The European headquarters and all subsidiaries of KiK Textilien und Non-Food
GmbH are all considered key business sites. All employees in our German
stores receive a basic wage, all employees in Austria are paid according to the
applicable tariff and come under collective agreements. In all other European
subsidiaries, at least the applicable legal minimum wage is paid.
EC6
Complete
EC7
Procedures for local recruitment and proportion of senior management hired from the
local community at significant locations of operation
Complete
At all our key business sites, we employ mainly local people/people from the
region. In recruitment, precedence is given to motivation and qualifications.
EC8
Development and impact of infrastructure investments and services provided primarily Partially complete Sections 6 and 7, plus Facts and figures
for public benefit through commercial, in-kind, or pro bono engagement
EC9
Understanding and description of the type and scope of significant indirect economic
impacts
Complete
Sections 2, 3, 4 and 5
Complete
Sections 4 and 5, plus Facts and figures. The total weight of the materials
used is only recorded for packaging. In packaging, we do not yet use recycled
materials.
EN2
Complete
In Facts and figures. Recycled material is only used in office materials, paper
products and marketing materials
EN3
Complete
EN4
Complete
EN5
Complete
During the reporting period, no data was gathered about energy saving
initiatives and information on energy savings can therefore not be included in
this report. This data will be recorded starting from 2011 and included in the
next report.
EN6
Initiatives to provide energy-efficient or renewable-energy based products and services, and reductions in energy requirements as a result of these initiatives
Complete
Section 4
EN7
Complete
Section 6
EN8
Complete
In Facts and figures. All key business sites are connected to the public water
supply network. Our sources are therefore local municipal water companies.
EN9
Complete
No enquiries were made into the sources of the respective water suppliers at our
key business sites.
EN10
Complete
EN11
Location and size of land in or bordering protected areas, or in or near to areas of high Complete
biodiversity value
None of the buildings used by KiK at its key business sites are located in or
on plots bordering protected areas. Only the site of our European headquarters
and central warehouse are located in a water protection area, of the lowest
grade. This has no consequences for our operations.
EN12
Complete
None of the buildings used by KiK at its key business sites are located on plots
adjacent to protected areas.
EN13
Complete
Sections 4 and 6
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
Complete
For our key business sites, in the reporting period there was no strategic
management of the effects on biodiversity. In 2011, an initiative was introduced
on the grounds of our European head office.
EN15
Number of IUCN Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk
Complete
No species are threatened by our key business sites that are on the IUCN Red
List or other national lists.
EN16
Complete
EN17
Complete
EN18
Complete
EN19
Complete
EN20
NOx, SO2, and other significant air emissions by type and weight
Complete
These air emissions have not been recorded during this reporting period, but
will be taken into account in our 2011 calculations.
EN21
Complete
Waste water produced by all our key business sites is channelled towards public
sewage systems.
84
EN22
Complete
A breakdown of waste is being undertaken for our key business sites and a
uniform waste balance sheet prepared which will be included in our next report.
EN23
Complete
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under Complete
the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of waste
transported internationally
EN25
Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organizations discharges of water and
runoff
Complete
EN26
Complete
EN27
Percentage of products sold and their packaging materials that are reclaimed by
category
Complete
The textiles sold by KiK are mostly sold without packaging. In our non-food
ranges, we take care to use as little packaging as possible. The small amount of
packaging we receive back is not recorded separately.
EN28
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with environmental laws and regulations
Complete
No fines were incurred during the reporting period for such violations.
EN29
Complete
Section 5 plus Facts and figures. Only CO2 emissions are currently accounted
for when calculating the environmental impact of transport. In 2011, the scope
will be extended to include NOx, SO2 and particulates, and business trips will
also be included.
EN30
Complete
LA2
Complete
Section 7, plus Facts and figures. A breakdown of staff turnover by age , sex
or region would provide us with no learnings relevant to our HR strategy and is
therefore not performed.
LA3
Benefits provided to full-time employees that are not provided to temporary or parttime employees, by major operations
Complete
LA4
Complete
LA5
Complete
LA6
Complete
LA7
Injury, occupational illness, lost days, and absenteeism, and number of work-related
fatalities by region
Partially complete In Facts and figures. The information relates to our key business sites and is not
broken down by region. No work-related deaths occurred during the reporting
period.
LA8
Complete
The following tests are offered to our employees at European headquarters and
the central warehouse: test G37 computer eye strain, test G25 driving and operating machinery, training in hazardous substances for laboratory workers, test
G40.5 - blood test for laboratory workers. Training for employees in procurement
in respect of travel vaccinations.
LA9
Health and safety topics covered in formal agreements with trade unions
Complete
Health and safety issues are not dealt with under such agreements.
LA10
Complete
LA11
Programmes for knowledge and skills management and lifelong learning that support
the continued employability of employees and also assist them when it comes to
leaving the company
LA12
Complete
LA13
Composition of governing bodies and breakdown of employees per category according to gender, age, ethnic minority and other indicators of diversity
Partially complete Section 7, plus Facts and figures. Employees are broken down by gender only.
LA14
Relationship between the basic salary of male staff to that of female staff, by employee category
Complete
Each employee has one performance review a year with their immediate
superior. This includes the agreement of a development plan.
85
Human rights
HR1
Percentage and total number of significant investment agreements that include human Complete
rights clauses or that have undergone human rights screening
HR2
Percentage of significant suppliers and contractors that have undergone screening on Complete
human rights and actions taken
HR3
Partially complete In 2010, 9.4% of employees in administration received training on human rights,
corresponding to 85.5 hours in total.
HR4
Partially complete Section 4, plus Facts and figures. Incidents of discrimination are recorded at
supplier level through audits. No incidents of discrimination were reported at our
key business sites during the reporting period.
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights
Partially complete Sections 4 and 7, plus Facts and figures. Employee representation is captured
at a supplier level during audits. KiK has a works' council in its subsidiary KiK
Logistik, as well as works' councils in its Austrian subsidiaries.
HR6
Operations identified as having significant risk for incidents of child labour, and
measures taken to contribute to the elimination of child labour
Complete
Section 4
HR7
Complete
Section 4
HR8
Complete
HR9
Total number of incidents involving a violation of the rights of indigenous people and
actions taken.
Complete
SO1
Nature, scope, and effectiveness of any programmes and practices that assess and
manage the impacts of operations on communities, including the entry, implementation and exit of business operations in an area
SO2
Percentage and total number of business units analyzed for risks related to corruption
Complete
SO3
Partially complete All employees in the Audit department possess specialist knowledge on the
issue of corruption, obtained from specialist literature or training. This specialist
knowledge is applied in the fields of activity concerned and also passed on to
management personnel in their area of responsibility.
SO4
Complete
The acceptance of payments worth over 50 euros given by superiors or management as a gift and thus approved is permitted. All other incentives to which
this rule does not apply lead to prompt termination of the employment contract
and claims for compensation, where applicable. No cases of corruption were
reported during the reporting period.
SO5
Complete
SO6
Complete
SO7
Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices and their outcomes
Complete
During the reporting period, one complaint was made on account of design
patent violation, one on account of copyright violation and one regarding an
infringement of trademark rights. No information is provided on the outcome of
these complaints.
SO8
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
Partially complete During the reporting period, a fine was paid to the Unna office due to the placing
on the market of potentially harmful materials. No information is given as to the
monetary value of that fine.
Society
86
Product responsibility
PR1
Stages over the lifecycle of a product or service in which its assessed whether their
impact on health and safety can be improved, and percentage of total products and
services categories subject to such procedures
Complete
PR2
Partially complete During the reporting period, there were 38 product recalls in Europe. In Germany, nine new products were recalled in 2009 and three in 2010.
PR3
Type of product and service information required by law, and percentage of significant Complete
products and services subject to such information requirements
PR4
PR5
Partially complete A customer survey is conducted in our stores once a year, as well as a daily
evaluation of our Brand Index. In addition, the Customer Service department
deals with problems and enquiries from KiK customers on a daily basis.
Customer Service can be contacted by phone, via the online form on the KiK
website or by mail.
PR6
Programmes for ensuring compliance with laws, standards and voluntary codes of
conduct related to marketing communications, including advertising, promotion and
sponsorship
Complete
Such programmes do not exist. A voluntary undertaking in respect of advertising is to be developed by 2012.
PR7
Complete
PR8
Complete
PR9
Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services
Complete
The value of fines is not given. Please see the note against performance
indicator SO8.
Sections 2 and 5
87
GLOSSARY
Million seller
Audit
Announced review of factories by accredited, independent, external auditing company covering social and environmental aspects, based on the requirements of
the KiK Code of Conduct
B.A.U.M. e.V.
Bundesdeutscher Arbeitskreis fr umweltbewusstes Management e.V. With a current total of over 500 members, B.A.U.M. e.V. is the largest business environmental
initiative in Europe.
Organic cotton
Cotton awarded the seal of the Global Organic Textile Standard (GOTS)
Blue Angel
Blue Angel (Blauer Engel) is a quality seal for products and services that are environmentally friendly. It was introduced in 1978.
BSCI
The Business Social Compliance Initiative (BSCI) is a non-profit organisation based in Brussels which works to improve social standards in the worldwide retail
supply chain.
CAPA
Corrective plan in which all findings of an audit are entered and an appropriate timeframe for action is set. Based on this corrective plan, which is constantly updated
by the agencies, the CSR department subsequently checks the further development of the supplier.
CARE Bangladesh
Care Bangladesh is a Bengali non-profit organisation which provides development and emergency aid. It belongs to the CARE International network.
CARE Deutschland-Luxemburg e.V. is a German NGO which provides development and emergency aid, worldwide. Together with eleven sister organisations, it
forms part of the CARE International network, the general secretariat of which is based in Switzerland
CARE International
The Cooperative for Assistance and Relief Everywhere is among the largest aid organisations currently operating, with a presence in many countries and with many
regional offices.
Chain of Custody
Product chain
Code of Conduct
KiK has developed an internationally applicable Code of Conduct, which corresponds to the code of conduct of the Business Social Compliance Initiative (BSCI)
and is guided by the internationally accepted SA8000 standard of Social Accountability International (SAI). It contains all the standard conventions of the International Labour Organization (ILO), ensuring that working guidelines drawn up by KiK are applicable everywhere.
Describes the activities of companies, other organisations and institutions that voluntarily assume social responsibility beyond the degree that they are required to
by law.
CSI
Consulting Service International (CSI) is a consultancy with which KiK has been working for some years now in the area of supplier certification.
DKMS
DKMS Deutsche Knochenmarkspenderdatei gemeinntzige Gesellschaft mbH was founded over 20 years ago, with the aim of identifying cell stem donors for
leukaemia patients.
ECOFYS GmbH
ECOFYS Germany GmbH is an independent consultancy that works across Europe with experts in verifying greenhouse gases in European emissions trading.
Ergee
Austrian hosiery brand popular across Europe. At the beginning of 2009, clothing discounter KiK acquired this well-established brand.
FSC
The Forest Stewardship Council (FSC) is an international, independent, non-governmental and non-profit organization. The FSC label certifies that wood or paper
products originate from responsibly managed forests. Products certified by the FSC are guaranteed to have come from woods managed in accordance with the
social, economic and ecological needs of the generations of today and tomorrow.
GoGreen
Environmentally friendly shipping service offered by DHL, where associated CO2 emissions are calculated according to a procedure based on the principles of the
ISO 14064 standard. In line with the terms of the Kyoto Protocol, these emissions are balanced out by environmental protection projects.
The Gold Standard Award is a prize for exemplary PR work in Asia. It is awarded in 11 categories by the association Public Affairs Asia.
GOTS
The Global Organic Textile Standard (GOTS) seal guarantees that, with garments made from natural fibres (e.g. cotton, linen, silk) and throughout the entire production chain, no hazardous chemicals are used in fibre preparation and garment finishing. The social standards of the International Labour Organization (ILO) are
taken as minimum requirements.
GreenBuilding
European Commission programme to improve energy efficiency and the use of renewable energies in non-residential buildings.
The Greenhouse Gas Protocol is an internationally recognised tool for quantifying and managing greenhouse gas emissions. It lays down specifications for
organisation-wide calculations of greenhouse gas emissions and for the implementation of projects to reduce emissions.
Handelsverband Deutschland e.V. - Der Einzelhandel (HDE) is the leading organisation of the German retail trade for around 400,000 independent companies with
a total of 2.9 million employees and annual sales of over 400 billion euros. As an employer and trade association, it represents the interests of the retail industry in
Germany and the European Union.
Since it was founded in 2005, the help and hope foundation has dedicated itself to aiding children in need at a national and international level. Its aim, through
support programmes for socially disadvantaged children, is to help them to help themselves and give them the promise of the life they themselves want.
Heroes2
Heroes2 is a non-profit organisation which, working together with the Guangdong Academy of Forestry, introduced a reforestation programme. The goal is to
ensure the sustainable planting of forests based on environmental criteria.
ILO
The International Labour Organization is a UN specialized agency tasked with promoting social justice, as well as human and labour rights.
Non-profit foundation for the protection of wild animals and sustainable protection of their habitat
NGO
Non-food products
Our non-food range consists of party goods, cleaning materials, accessories, decorations, household products, home textiles, food, toys, writing materials, petcare
and drugstore products.
International environmental standard for companies and organisations. The ISO combines efficiency with environmental protection. ISO 14001 helps in the setting up
of an effective environmental management system.
NOS
Never out of stock - products that are a constant feature of our range
The Oeko-Tex standard 100 is a consistent, worldwide testing and certification system for raw, intermediate and final textile products, across all stages of manufacture. The hazardous substance tests cover substances regulated and forbidden by law, chemicals that are hazardous to the health and parameters in respect of
healthcare.
PAS 2050:2008
PAS 2050 is the first standard of this kind and was produced by the BSI Group (a British standards and regulations body) and Defra (the UKs Department for
Environment, Food and Rural Affairs).
Pre-scan
A pre-scan is a prior check conducted on a supplier before a first order is placed. It is carried out by specially trained employees of an agency. Social standards in
the production facilities are checked, based on a checklist.
The product carbon footprint refers to the greenhouse gas emissions produced throughout a product's entire lifecycle for a defined use and in a defined usage unit
Environmentally optimised products; all income derived from their sale is channelled exclusively into social and environmental support projects.
88
Quick scan
The checking of production facilities in respect of social and environmental aspects, based on the requirements of the KiK Code of Conduct.
Re-audit
Unannounced check conducted at regular intervals on the performance of a supplier. The re-audit checks whether points for improvement from the first audit are
being addressed and records current social and environmental performance.
ROBIN WOOD
ROBIN WOOD e.V. Gewaltfreie Aktionsgemeinschaft fr Natur und Umwelt is a German environmental and nature protection organisation.
SA8000
SA8000 is an international standard that has the goal of improving the working conditions of employees.
SAI
Social Accountability International (SAI) is an international NGO based in New York (US).
Smart meter
An intelligent energy meter that shows the actual energy consumption of the relevant user and at what time it was used.
STR Inc.
Sustainable products
TOXPROOF
TOXPROOF certificate meaning that a product has been tested for the absence of hazardous substances by TV Rheinland
Greenhouse gas
Greenhouse gases are gaseous substances in the air that influence radiation, contribute to the greenhouse effect and can have both a natural and an anthropogenic
origin.
The certification company TV NORD CERT assesses and certifies that legal regulations and voluntary standards are being met.
TV Rheinland
The TV Rheinland group is a leading international services company that works to ensure safe and sustainable solutions in terms of people, the environment and
technology.
Environmental audit
Complete audit including the testing and monitoring of waste water disposal, operating material consumption and waste disposal.
All products that have been optimised in terms of hazardous substances, use of raw materials and resource and/or in terms of production-related emissions.
ABBREVIATIONS
BGCCI
CO2e emissions
ct
Cent
d. PE
Gram
GRI
IUCN
i. PE
kg
Kilogram
km
Kilometre
kt
Kilotonne
kWh
Kilowatt hour
m2
Square metre
m3
Cubic metre
Million
bn
Billion
MWh
Megawatt hour
NOx
Nitrous oxide
SO2
Sulphur dioxide
ton
EXTERNAL SOURCES
CSI
Market report
Product Carbon Footprint Jeans
Tengelmann Energie
KiK
89
Awarded an A+
The development of our first sustainability report has been led by a desire to provide openness and transparency. A key indicator of
this is the independent verification of the reports contents, a task for which we commissioned two prestigious consultants. As part
of their audit of the report, they evaluated compliance with the guidelines formulated by the Global Reporting Initiative. The results
were detailed in an extremely comprehensive, critical review, and are summarized in the following general assessment. You can
read the full critical review online at www.kik-textilien.com. In light of the balance struck between fully reported and partially reported
indicators, the independent consultants found that the report satisfies the requirements of GRI Application Level A+.
General
KiK Textilen und Non-Food GmbH has produced its 2010 sustainability report in-house. This sustainability report is the
first to be presented by KiK Textilien und Non-Food GmbH. Dr. Christian Gressner of fjol GmbH, Mnster, and Dr. Ulrike
Eberle of corsus corporate sustainability, Hamburg have been asked to critically evaluate the report. They have conducted their review based on the G3 guidelines for sustainability reporting of the Global Reporting Initiative (GRI).
With a particular view to facilitating comparison, this KiK GmbH sustainability report has been compiled according to
the specifications of the GRI 3.0 guidelines. Checking the accuracy of the primary data collected by KiK did not form part
of the critical review.
Any suggestions from the reviewers as to how the report might be improved will be incorporated in future editions. In
particular, these suggestions had to do with the make-up of the report, precise presentation of facts and coverage of the
GRI indicators.
The following areas have been identified as having room for improvement: it would be good, in the next report, to close
any small gaps that may exist in reporting on indicators, specifically social indicators. Furthermore, the relevant target
year must be stated for all quantitative goals. However, on the whole, the report satisfies the criteria:
Relevance: Within the legal boundaries of the report, information is given on the environmental impact of business
operations. Actions and measures for issues identified as relevant have been developed.
Completeness: All management strategies and all 121 GRI indicators are reported, 99 of them in full and 22 of them
partially.
Consistency: Definition of the four action areas in the context of sustainability is clear and conclusive. The accompanying measures/actions and KiKs strategic goals appear to be consistent.
Accuracy: The indicators are largely reported on accurately.
Transparency: The report is transparent and inherently consistent.
A sustainability report documents a companys own view of what is a learning process. Against this background, the
representation of stakeholder management is key to successful sustainability reporting. It is important to take a step-bystep approach in convincing critics of the credibility of ones commitment to sustainability and to involve these groups in
future strategy development.
In this context, this publication can be considered a good, committed and ambitious first report, which deals extensively
with the controversy around discount clothing and KiKs responses. The environmental protection goals and development
of premium suppliers, such as those in Bangladesh, are to be particularly commended.
www.corsus.de
www. fjol.de.
90