Tokmanni has published its sustainability report for 2020 – “We have raised the bar high in our sustainability work,” says CEO Mika Rautiainen
Tokmanni Press release 23 March 2021 at 2:30 p.m.
Tokmanni, Finland’s leading general discount retailer, published its GRI-compliant sustainability report for 2020 on Tuesday 23 March 2021. The extensive English-language report is entitled Sustainability available for all. Tokmanni has also published Finnish and English summaries of its sustainability work in 2020. In its sustainability report, Tokmanni provides information about its achievements and challenges.
“Tokmanni has raised the bar high in its sustainability work,” says CEO Mika Rautiainen in the company’s most recent sustainability report.
“Sustainability plays a key role in Tokmanni’s strategy and day-to-day activities. We have accelerated Tokmanni’s sustainability work and set ambitious sustainability targets. Together with growing sustainability expectations from society they oblige us to do more to make sure that our customers and other stakeholders can trust that Tokmanni’s sustainability actions are enduring, consistent and impactful,” Rautiainen points out.
“It is great to be able to say that Tokmanni’s sustainability work has progressed at a fast pace in 2020, just like in previous years. However, we are not resting on our laurels and will continue to serve our customers as well as we can and to develop Tokmanni into an increasingly sustainable general discount retailer.”
Tokmanni’s sustainability work progressed on many fronts in 2020.
“I’m particularly pleased with our climate work in 2020. We were the third retail-sector company in the Nordic countries to set ambitious science-based climate targets in line with the Paris Agreement and the 1.5-degree goal,” says Emilia Koski, Head of Corporate Responsibility at Tokmanni.
Human rights work also progressed significantly last year. Tokmanni further specified its goals for high-risk raw materials and its guidelines for responsible sourcing. In addition, despite the coronavirus pandemic, the company conducted 60 factory inspections in 2020, mainly in China, and joined the Bangladesh Accord, which develops the electrical, fire and building safety of clothing factories.
The sustainability strategy was updated and sustainability themes were further specified in 2020
The key themes of Tokmanni’s sustainability work are Business Integrity, People, Products and Sourcing and Climate. These themes were determined in 2015 through an analysis of the impacts of Tokmanni’s operations in relation to stakeholders’ expectations, megatrends and the management’s view on business operations. The themes were further specified in 2020 in connection with updating the sustainability strategy as follows:
- Privacy protection
- Ethical marketing
Occupational health and safety
- Employee training and development
- Equality in work and remuneration
Products and Sourcing
- Responsible products and packaging
- Product safety
- Appropriate marking of products
Efficient use of materials
- Energy efficiency
- Efficient logistics
- Efficient recycling of waste
Significant achievements also in 2020
Tokmanni develops its sustainability work in line with its key sustainability themes, and numerous significant achievements are made each year.
In 2020, Tokmanni:
Became a global pioneer by adopting climate targets that are officially approved by the Sciende Based Targets initiative
With these targets, which are based on the Paris Agreement, Tokmanni supports the Business Ambition for 1.5°C campaign and contributes to limiting global warming to 1.5 degrees Celsius. The commitment is significant, as the 1.5°C target is the most ambitious target set out in the Science Based Targets initiative.
Paid EUR 3.7 million in bonuses to its employees
Tokmanni’s revenue grew by 13.6% to EUR 1,073.2 million. The bonus was a way of thanking the employees for their excellent work.
Improved its CDP climate rating
Tokmanni received the third-best rating (B) in a climate impact assessment by the Carbon Disclosure Project, which evaluates the climate measures and environmental reporting of organisations.
Continued to invest in renewable energy
By the end of 2020, solar panels had been installed on the roof of Tokmanni’s headquarters and logistics centre in Mäntsälä, as well as on the roofs of nearly 40 stores – that is, one in every five Tokmanni stores.
Received a score of 48.1/100 in a survey by the Prime Minister’s Office on the human rights performance of Finnish companies
Tokmanni’s score is markedly higher than the average (23.9/100) for companies assessed using indicators based on the UN Guiding Principles.
Donated EUR 53,000 for the protection of the Baltic Sea
Continued its cooperation with the Finnish Red Cross to reduce loneliness and social exclusion
In 2020, Tokmanni enabled the Finnish Red Cross to help around 2,500 people through its volunteer friend activities.
The donation was a continuation of the charitable cooperation started by Tokmanni and Unilever Finland in 2011. Since then, the two companies have donated a total of EUR 470,000 in hygiene products, food products and other daily necessities to the Veikko and Lahja Hursti Charitable Trust.
Piloted anonymous recruitment
The extensive adoption of anonymous recruitment requires the renewal of Tokmanni’s recruitment system, which is underway.
Joined the FINIX project to develop tools for textile traceability
FINIX is a multidisciplinary research project funded by the Strategic Research Council and supervised by Aalto University. Its purpose is to enable the Finnish textile industry to succeed in the circular economy, as well as contributing to the transition of the entire industry towards sustainable development. Within the FINIX project, Tokmanni is developing the traceability of supply chains and testing a life-cycle data management application with a new range of clothing.
94% of Tokmanni’s factories in risk countries had undergone a BSCI audit on working conditions. In addition, Tokmanni’s own experts carried out 60 factory inspections in 2020.
Through third-party audits and Tokmanni's own factory inspections, Tokmanni ensure sustainable production and the fulfilment of employees’ fundamental rights in the supply chain.
Emissions from Tokmanni’s own operations (Scope 1 and 2) decreased by 7.5% in 2020.
Tokmanni continued its systematic work to improve the energy efficiency of our properties by installing LED lighting in 37 stores, for example.
Tokmanni’s sustainability targets for 2021–2025
Carbon neutrality: Tokmanni’s own operations will be carbon neutral by the end of 2025. In addition, Tokmanni is promoting the achievement of its science-based climate targets by contributing to limiting global warming to 1.5 degrees Celsius in its own operations. Tokmanni is committed to reducing its absolute Scope 1 and 2 GHG emissions by 70% by 2025 from the 2015 baseline. 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.
Energy efficiency: Tokmanni aims to reduce the comparable electricity consumption of its properties by 4% between 2020 and 2021.
Transport: Transport emissions will remain at the 2015 level in relation to revenue.
Food waste and recycling: Tokmanni will continue its evening sale of soon-to-expire food products (red-label products) at discounted prices in all its stores in 2021 and will maintain a recycling rate of more than 80%.
Raw materials: The cotton purchased for Tokmanni’s private-label products will be produced more sustainably by the end of 2024.
Supply chain: All Tokmanni’s factories in risk countries are audited by third parties. Tokmanni also aims to carry out 70 inspections of its supplier factories in 2021.
Diversity: Tokmanni will provide all supervisors with training on diversity and inclusion in 2021.
More information about Tokmanni’s sustainability work is available on its website. Tokmanni’s English-language sustainability report and the Finnish and English summaries are available at ir.tokmanni.fi/en/sustainability.
For further information, please contact:
Head of Corporate Responsibility
Tel. +358 40 132 6847
Head of IR and Communications
Tel. +358 40 562 2282
Tokmanni is Finland’s leading general discount retailer. Some 4,000 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 nearly 200 stores around Finland and an online store, Tokmanni is always close to its customers. Tokmanni’s revenue in 2020 amounted to EUR 1,073.2 million. Tokmanni shares are listed on the Nasdaq Helsinki.