Kesko updates its sustainability strategy
Kesko has updated its sustainability strategy, setting emission reduction targets for its own operations extending to 2034. Over the next 10 years, Kesko will be increasing its investments in energy efficiency and the electrification of transports in an effort to reduce emissions. In the updated strategy, Kesko has also placed increased focus on supply chain sustainability, water use and biodiversity.
The Board of Directors of Kesko Corporation has approved an updated sustainability strategy for the company and its three business divisions. The focus areas of the updated strategy are climate and nature, value chain, people, and good governance.
”The focus in sustainability work is increasingly on the entire value chain. Collaborating with suppliers is becoming more and more important, as emissions need to be reduced throughout the supply chain. Together, we promote sustainability in supply chains and products, while helping our customers in making more sustainable choices," says Lasse Luukkainen, Executive Vice President, Legal and Sustainability at Kesko.
Reducing emissions in Kesko’s own operations and across the value chain
Kesko now sets new short-term emission targets for its own operations, aiming for a 50% reduction in emissions by the end of 2034 from the 2024 baseline. In addition to the new targets, Kesko is committed to setting net-zero targets for its entire value chain, extending to 2050. Kesko will be seeking validation from the Science Based Targets initiative (SBTi) for both the short-term and long-term emission targets in spring 2025.
The largest emissions in Kesko's own operations come from logistics and the consumption of district heat. Key emission reduction measures include reducing emissions from energy use in heating by improving energy efficiency and modernising heating solutions. New electric transport equipment will also be adopted.
"More than 99% of our emissions are generated during the lifecycle of the products purchased and sold: that means the production, use, and end-of-life treatment of the products. This is why we are increasingly directing our emission reduction efforts towards the whole value chain alongside our own operations," says Luukkainen.
Focusing more strongly on the supply chain, water, and biodiversity
There is increased focus on biodiversity and water in the updated sustainability strategy. Kesko is currently assessing its biodiversity impacts in accordance with The Taskforce on Nature-related Financial Disclosures (TNFD) initiative, with the goal of setting biodiversity targets in spring 2025.
The most significant water-related impacts for K Group are related to the manufacture of products in grocery trade in particular. The sustainability strategy work will start by assessing the most significant water risks in the value chain and setting targets to minimise the impacts.
Social responsibility audits are required from all factories of suppliers in high-risk countries. Going forward, audits will also be conducted elsewhere in the value chain on the basis of risk assessments.
Kesko’s gender equality targets have been tightened, and the objective is now to increase the proportion of women in top management to 40% and in middle management to 45% by 2030.
Business ethics and compliance are promoted through the K Code of Conduct for K Group and its business partners.
Further information:
Lasse Luukkainen, EVP, Legal and Sustainability, tel. +358 105 322 818, lasse.luukkainen@kesko.fi
Hanna Jaakkola, VP, Investor Relations, tel. +358 105 323 540, hanna.jaakkola@kesko.fi
K Group media desk, tel. +358 105 350 200, viestinta@kesko.fi
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Kesko and K-retailers together form K Group, whose retail sales total around €16 billion. K Group is the leading trading sector operator in Northern Europe and it employs approximately 45,000 people. Kesko operates in grocery trade, building and technical trade, and car trade. Its divisions and chains act in close cooperation with retailer entrepreneurs and other partners. Kesko's net sales total around €12 billion and Kesko employs approximately 18,000 people. Kesko’s chain operations include approximately 1,800 stores in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania and Poland. Kesko’s shares are listed on Nasdaq Helsinki. The company's domicile and main premises are in Helsinki. www.kesko.fi