Concrete, consistent and impactful sustainability actions – Tokmanni presents its sustainability work in its sustainability report for 2021

Tokmanni     Press release     22 March 2022 at 2:50 p.m.

Tokmanni, Finland’s largest variety discount retailer, has published its sustainability report for 2021 today, Tuesday 22 March 2022. In its sustainability report, Sustainability available for all, Tokmanni explains how it combines low prices with sustainability. In addition to highlighting its successes, Tokmanni discusses challenges in sustainability work. In addition to its comprehensive* English-language sustainability report, Tokmanni has published a Finnish-language summary of its sustainability work.

“At Tokmanni, our sustainability stems from all the tangible, everyday actions taken by our employees,” says Mika Rautiainen, President and CEO of the variety discount retailer.

“Our sustainability actions are guided by the sustainability targets updated in early 2021 in Tokmanni’s new corporate strategy. Our goal is to be the most sustainable variety discount retailer and do our part in building a better future.

Tokmanni’s core business is selling products, which makes improving the sustainability of its products and supply chain extremely important.

“We want to help our customers make sustainable and smart purchase decisions. In 2021, we advanced our sustainability work through policies related to fish, palm oil, and cotton as well as training our sourcing and buying teams to operate based on our updated sustainable sourcing protocols. We are now also a member of Better Cotton, which helps us support the development of more environmentally friendly cotton cultivation,” says Rautiainen.

A store for everyone

Tokmanni will continue to be a store for everyone – a company that is a collaborative partner and an attractive employer, and that can provide an enjoyable and responsible shopping experience.

“The global situation is currently uncertain and causing concern, which is why it’s even more important for Tokmanni to make responsible and ethical choices in all its business decisions,” Rautiainen points out.

One of the keys to Tokmanni’s success is that the company’s employees are building an increasingly diverse variety discount retailer and work community – all together, according to Tokmanni’s values.

“At Tokmanni, everyone is valued as they are, and we see people’s different backgrounds and perspectives as a richness,” Rautiainen explains.

Tokmanni will continue to focus on concrete, genuinely impactful measures that are of interest to its customers and other stakeholders.

“One of Tokmanni’s goals is to achieve carbon neutrality in its own operations in 2025. By investing in renewable heat and our own solar power plants, for example, we ensure that we are making actual progress towards this goal,” Rautiainen says.

Tokmanni will also be working to ensure that the proportion of sustainably certified and traceable products in its selection increases and that sustainability is highlighted in its marketing.

“We are also seeking to have all the factories we use in high-risk countries audited by a third party. In 2021, we carried out 62 factory inspections, and we are aiming to increase their number to 100 in 2022.”

Examples of Tokmanni’s sustainability highlights in 2021

Tokmanni develops its sustainability work in line with its strategy and main sustainability themes.

In 2021, Tokmanni, for example:

• Maintained its very good score in the international CDP climate assessment

In December 2021, Tokmanni was included for the second time in the third-best category in the international climate change assessment of the CDP, an organisation monitoring companies’ climate measures and environmental reporting. Tokmanni’s inclusion in the Management category (B) in the climate change assessment, with stricter criteria, proves that Tokmanni is increasingly considering the risks and opportunities arising from climate change and actively taking measures to reduce emissions, combat climate risks and develop a low-carbon economy.

• Published important policies to further develop its product selections

In 2021, Tokmanni made a commitment to ensuring that the cotton purchased for Tokmanni’s private label products will be produced more sustainably by the end of 2024. In addition, Tokmanni implemented a policy to ensure that all its private label products would contain only sustainably produced palm oil by the end of 2021. In addition to its cotton and palm oil policies, Tokmanni published a fish policy based on the WWF seafood guide. In accordance with this policy, all its private label fish products will be sourced sustainably in a verifiable manner by the end of 2022.

• Reduced its electricity consumption by 0.6%

Tokmanni continued its systematic work to improve the energy efficiency of its properties. For example, Tokmanni installed LED lighting in 20 stores and started the modernisation of the refrigeration systems in selected stores to ensure the use of new technologies, including more environmentally friendly refrigerants. By the end of 2021, about nine out of ten Tokmanni stores utilize LED lighting.

• Continued to make significant investments in renewable energy

By the end of 2021, solar panels producing renewable emission-free energy had been installed in more than 50 Tokmanni locations, or more than 25% of its locations. The share of solar power produced on the roofs of Tokmanni stores was 6.0% of the company’s total electricity consumption in 2021. All of the electricity purchased by Tokmanni has been renewable since 2019.

• Made progress in achieving its science-based climate targets

Tokmanni is aiming to reduce absolute emissions from its own operations (Scope 1 and Scope 2, in accordance with the GHG protocol) by 70% by 2025, compared to 2015 levels. By the end of 2021, emissions from Tokmanni’s own operations had decreased by 63% from 2015. In addition, Tokmanni started discussions with its suppliers on their climate targets in 2021. By the end of 2021, 43% of Tokmanni’s product suppliers had made a commitment to science-based climate targets.

• Carried out 62 factory inspections and had 53 audits conducted by third parties

Tokmanni carried out its own factory inspections in China. In addition, the company had third-party audits conducted mainly in China, but also in Pakistan, Vietnam and Bangladesh.

• Supported the significant work of several charity organisations

At the beginning of 2021, Tokmanni decided to continue to support the Finnish Red Cross in 2022 and 2023. The goal of the partnership, which started with the Hunger Day collection in 2019, is to promote community well-being and reduce loneliness and social exclusion. In 2021, Tokmanni supported the friend volunteer activities of the Finnish Red Cross, for example, and donated EUR 100,884.35 to the Finnish Red Cross Disaster Relief Fund. In 2021, Tokmanni participated in the MIELI Mental Health Finland’s Mielinauha campaign for the fourth time by selling the association’s Mielinauha campaign products. Together with Unilever Finland, Tokmanni donated food products and other daily necessities (worth EUR 50,000 in total) to the Hurstinapu charity. In addition, Tokmanni donated EUR 80,000 for the protection of the Baltic Sea through the John Nurminen Foundation.

• Provided its employees with training opportunities and rewarded them for good performance

In 2021, Tokmanni invested in training for its employees even more than before. During 2021, nearly 300 Tokmanni employees across Finland participated in degree-based learning. Tokmanni also offered its warehouse and store personnel an opportunity to participate in Finnish-language courses for the first time. In addition, Tokmanni used €4.5 million to reward its employees in 2021.

Examples of Tokmanni’s current sustainability goals

Tokmanni currently has sustainability goals in the following areas, for example.

Science-based climate targets: Tokmanni has set climate targets that have been officially approved by the Science Based Targets initiative. In line with these targets, which are based on the Paris Agreement, Tokmanni is supporting the Business Ambition for 1.5°C campaign and is committed to contributing to limiting global warming to 1.5 degrees Celsius through its own operations. Tokmanni is committed to reducing absolute emissions from its own operations (Scope 1 and Scope 2, in accordance with the GHG protocol) by 70% by 2025, compared to 2015. Tokmanni is also committed to ensuring that 80% of its suppliers (by spend), covering purchased goods and services, will have science-based targets by 2025.

Climate impacts: Tokmanni is seeking to achieve carbon neutrality in its own operations in 2025. The company is investing in solar power and is seeking to reduce the carbon footprint (Scope 1 and Scope 2) of its own operations by 2% between 2021 and 2022. Tokmanni is also identifying opportunities to transfer to renewable heat.

Transport: Tokmanni's goal is to maintain emissions intensity (relative to revenue) from transport at 2015 levels.

Recycling: Tokmanni’s goal is to increase its recycling and recovery rate to 85% in 2022.

Product selection: Tokmanni is seeking to ensure that the cotton purchased for its private label products will be produced more sustainably by the end of 2024, and that the fish purchased for its private label products will be produced more sustainably by the end of 2022. Tokmanni is also seeking to increase the number of products with sustainability labels in its assortment. Tokmanni is also looking into reducing environmental impact of packaging and replacing unrenewable packaging materials with renewable where possible.

Supply chain: Tokmanni is seeking to ensure that all its factories in high-risk countries are audited by third parties. The company is also aiming to carry out 100 factory inspections in 2022.

Diversity: Tokmanni is aiming to provide all its supervisors with diversity training. Tokmanni is also expanding its life-cycle programme and is supporting employment in cooperation with its partners.


More information about Tokmanni’s sustainability work is available on its website. Tokmanni’s English-language sustainability report and the Finnish summary is available at ir.tokmanni.fi/en/sustainability.


* Tokmanni’s sustainability report meets the GRI standards. The Global Reporting Initiative (GRI) is an international framework for corporate responsibility reporting.


TOKMANNI


For further information, please contact:


Terhi Uusitalo
Project Manager, Sustainability

Tel. +358 20 728 7847
terhi.uusitalo(at)tokmanni.fi


Maarit Mikkonen
Head of IR and Communications

puh. 040 562 2282
maarit.mikkonen(at)tokmanni.fi


Calls to a corporate number beginning with +358 20 7 from a landline or a mobile phone are EUR 0.0835 per minute + EUR 0.1669 per minute (incl. VAT 24%). Calls from outside Finland are subject to an international call charge.


Tokmanni is Finland’s leading variety discount retailer. Some 4,100 Tokmanni employees make customers’ everyday life and special occasions easier by offering a versatile and up-to-date assortment of Finnish and international brand-name products and other high-quality products at prices that are always affordable. With around 200 stores around Finland and an online store, Tokmanni is always close to its customers. In 2021, Tokmanni’s revenue was EUR 1,142 million, and its comparable EBIT amounted to EUR 106 million. Tokmanni’s shares are listed on Nasdaq Helsinki.