HSBC ESG CONFERENCE FRANKFURT - 4 February 2020 - Metro AG
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HSBC ESG CONFERENCE FRANKFURT 4 February 2020
OUR STRATEGY AND PURPOSE ARE BUILT ON A
SUSTAINABLE BUSINESS MODEL
Becoming the partner of choice for our customers…
Addressing customers’ needs through a full suit of wholesale products, services and solutions
…developing business together
Building new opportunities for customer interaction and service, business improvement,
sustainability and innovation
…and having sustainability as a prevailing business principle
From a supplier to the day to day operations of the customer
04/02/2020 © METRO AG | HSBC ESG Conference
OUR AIM: 360° EMBEDDING INTO OUR CUSTOMER’S
ECOSYSTEM
PARTNER OF CHOICE BY ANTICIPATING CUSTOMERS’ CHANGING NEEDS
Products
Marketplace
…whose businesses are supported
METRO aims to be a “partner like …by addressing all their needs
by global megatrends and
no other” to Horeca and through a full suite of wholesale
exposed to technology
Trader customers… products, services and solutions
disruption…
04/02/2020 © METRO AG | HSBC ESG Conference
WE SERVE THREE CUSTOMER GROUPS, WITH A FOCUS
ON HORECA AND TRADER
Strategic
Horeca Trader SCO
Hotels, Restaurants & Caterers Independent grocery stores Service companies and offices as
and other hospitality businesses such as well as wholesalers, kiosks and well as institutions typically small to
as Cafes, Bars and Canteens convenience stores medium size
Customers are predominantly METRO helps to compete against
independent with single or few franchised operations to keep
locations diversity of food culture alive
Sales (% of total)
48% 22% 30%
High margin, service oriented Mid-to-low margin, no frills High margin, opportunistic
04/02/2020 © METRO AG | HSBC ESG Conference
WE EXTEND OUR SUSTAINABILITY PRIORITIES TO
OUR CUSTOMERS
Food waste Other waste Renewable energy
Pesticides?
High welfare meat?
Local / regional?
Traceable?
Plant based meat?
Plastic? Social engagement? Healthier product?
Recycled? Local community? Clean label?
04/02/2020 © METRO AG | HSBC ESG Conference
WE OBSERVE 12 TRENDS IN HOSPITALITY/
WHOLESALE WITH CLOSE LINK TO SUSTAINABILITY
Convenience Protein Creating Identity Better Meat
The canned ravioli are in Protein-rich foods have Food satisfies many more Besides organic and regional,
crisis. Convenience food outgrown the body- needs than satisfying new meat trends are
in general is booming builder scene and have hunger. A good brand establishing themselves. First:
anyway. The offer grows become mainstream. No also offers orientation We consume less but high-
and evolves. supermarket can do today - identity and quality meat. Secondly, meat
without it anymore. recognition in society. substitutes are getting better.
Free-From Food Functional Food Regional Food Plant Protein
Less is more. This is not The trend towards self- If the Germans can buy Veggie and protein trend
necessarily true for the optimization has long fruit and vegetables merge: The result is an
amount of food, but for the arrived at the then preferably regionally ever-increasing range of
number of ingredients. supermarket: Functional and seasonal. Unless it's foods with natural or
The shorter the list of Food is supposed to do about avocados or added plant protein.
ingredients, the better. more than just feed you. pineapples.
Sustainable Country Specific Production Brand with
Production Kitchen Patterns Purpose
Sustainability is one of the Exotic food is becoming It all depends on how it's A modern brand needs a
big trends that summarizes more and more common prepared: Hand stirred, purpose, something it stands
many of the smaller trends. among Germans. The slowly baked or cold for. In this way it gives the
Manufacturers are manufacturers adapt pressed describe the consumers feel good and
increasingly selling their themselves with next step in the evolution differentiate themselves from
customers a good feeling. appropriate of food. the competition.
offer.
Icons: www.freepik.com/
Source: https://portal.argusdatainsights.de/web/open/dokument/name/0/84735.15eba75004c38ec92eebef19fb78204d88d89269.pdf/1?path=84735%2FExp%2FTreffer%2F
04/02/2020 © METRO AG | HSBC ESG Conference
PROVIDING SOLUTIONS TO OUR CUSTOMERS TO OPERATE MORE SUSTAINABLY DiSH Digital membership-based platform for METRO customers The platform offers digital tools, step-by-step instructions and helpful tips & tricks around restauranteurs daily business as well as registration for local events and network with other restaurant operators Benefit for customer Improve digital visibility and work more efficiently Network with peers Contribute to sustainable consumption Strengthen local communities 04/02/2020 © METRO AG | HSBC ESG Conference
WE HAVE CLEAR SUSTAINABILITY PRIORITIES IN LINE
WITH OUR STRATEGY
OUR ORIGIN IS
WHOLESALE IS THE FUTURE…
04/02/2020 © METRO AG | HSBC ESG Conference
SUSTAINABILITY PRIORITIES
ENVIRONMENT
Priorities KPIs to measure it
Climate Change Greenhouse gas emissions1
376
• METRO invests in energy efficiency, conserves Reduce our carbon footprint by 50% by
267
resources and avoids waste 2030
• METRO supports customers in doing the same
triggers the true leverage for change 2011
Base year
2018/19
Food waste
• Wasting food means wasting valuable resources.
Being united with our customers in the obligation Reduce food waste by 50% by 2025
to protect our resources as they are our core
business
• METRO supports customers in using solutions to
save resources and costs and do good at the
same time
Save 300t of plastic waste by 2023 and
Packaging and Plastic 100% FSC and PVC phase out
• Own brand packaging not only meets the high
quality and hygiene standards but also is aimed
to reduce the environmental impact during a 1Greenhouse gas emissions in kilograms of CO2 equivalent per square meter
of selling and delivery space
product’s entire life cycle
04/02/2020 © METRO AG | HSBC ESG Conference
SUSTAINABILITY PRIORITIES
ENVIRONMENT EXAMPLES
Climate change Food Waste Packaging and plastic
Packaging
Zero Emission Store TooGoodToGo
in Own Brand
First Zero Emission store opened 6 METRO countries1 promote the In 18 countries2 optimization of
in St. Pölten / Austria: Wood TooGoodToGo app to their the packaging materials (approx.
construction (FSC criteria, regional customers and sell surplus food 11.000 SKUs) as well as their
wood, fully recyclable), low energy from stores or store canteens in impact on the environment either
consumption (New refrigeration order to reduce shrinkage/left over by abandonment, reduction, reuse,
technology, air vent system)and food recovery or recycling
solar energy (Photovoltaic system,
energy-self-sufficient) Benefit for customers
• Minimizing food waste in own Benefit for customer
Benefit for customers operations of customer safe • Less waste to dispose reduce
• Reducing their own footprint costs for disposal waste disposal costs
while shopping • Receive money for food that • Protect resources & reduce your
• Preference of local suppliers with otherwise would have been environmental impact
local assortment thrown away • Positioning as sustainable actor
1 France, Spain, Italy, Germany, Netherlands, Belgium
in society
2 France, Italy, Spain, Poland, Czech Republic, Slovakia, Germany, Hungary, Croatia, Portugal, Turkey, China, Bulgaria, Austria, Serbia, Ukraine, the Netherlands, Russia
04/02/2020 © METRO AG | HSBC ESG ConferenceSUSTAINABILITY PRIORITIES
ENVIRONMENT/SOCIAL
Priorities KPIs to measure it
Raw material sourcing
• Our customers should be able to shop with us in Source sustainable soy 100% by 2025
good conscience. METRO is committed to
minimising the use of raw materials and
resources while simultaneously respecting and
protecting people, animals and nature
Organic and responsible products Source sustainable palm oil focusing on our own brands 100% by
2020
• Organic and responsible products are at the core
of transforming the world’s challenges around
sustainable consumption and production into
opportunities
Use sustainable paper and wood for our own brands and own use
Conscious proteins 100% by 2020
• METRO stands for innovation and transformation
with next generation food (NX food)1 in order to
pioneer and drive change towards more
sustainable consumption and production Provide regional, local and fair traded as well as animal-welfare-
considered products
1 NX Food – A hub of METRO, operating in the field of food innovation and food tech https://nx-food.com/
04/02/2020 © METRO AG | HSBC ESG ConferenceSUSTAINABILITY PRIORITIES
ENVIRONMENT/SOCIAL EXAMPLES
Raw material sourcing Organic product Conscious proteins
Implementing Promoting fair-trade
Sourcing policies Beyond Meat Burger
article under Own Brand
Further implementation and actions Rioba fair-trade coffee launched in Roll-out of plant-based burger made
of sustainable sourcing policies in 2016 in 8 METRO Countries1 from pea protein. Rolled out in 15
34 METRO Countries METRO Countries2
Benefit for the customer
Benefit for the customer • Differentiating from competitors Benefit for the customer
• Transform assortment to more when offering the product • Get ready for consumers’
responsible products • Offering healthier and better expectation and meet consumers’
• Meet consumers demand taste of products needs
• Differentiating from competitors
Driving change in sustainable raw Contribute to promoting sales of when offering the product
material production through responsible products
collaboration within the whole value Support fair working conditions for Save resources: 99% less water /
chain. workers in supply chain 93% less land / 90% fewer
Striving for environmental and greenhouse gas emissions / 46% less
social sustainability energy than for traditional meat
1 Germany, Poland, Czech Republic, Romania, Slovakia, Ukraine, Serbia, Croatia
2 Spain, Romania, Portugal, Poland, the Netherlands, Italy, Hungary, Germany, Czech Republic, Slovakia, Croatia, Bulgaria, Belgium, Austria, Serbia
04/02/2020 © METRO AG | HSBC ESG ConferenceSUSTAINABILITY PRIORITIES
SOCIAL/GOVERNANCE
Priorities KPIs to measure it
Human rights
• METRO’s business is a people business and we 100% Social compliance1 in our Food & Non-Food Own Brand
supply chain by 2030
value each and every person working with and
for us as our most precious resource
• METRO stands strong for ensuring Human
By June 2022: at least one female in Management Board², 20%
Rights within its value chain, empowered
women in positions one below Board and 35% women in positions
through trustful partnerships with all our two below Board
stakeholders
Diversity and inclusion
• Diversity & Inclusion are essential for being
true to our culture
• METRO promotes a diverse and inclusive
environment and workforce that reflect our
customers and business partners variety in
order to make full use of talents and potential
1Certification on manufacturing facilities of suppliers by external firms mandated by METRO to ensure compliance with the environmental, social and health standards of the amfori Business Social Compliance
Initiative (BSCI) or equivalent standards, ²As of 1st Nov. 2019 METROs Management Board includes one female board member
04/02/2020 © METRO AG | HSBC ESG ConferenceSUSTAINABILITY PRIORITIES
GOVERNANCE
Management Board Supervisory Board
20 Board Members
10 Shareholder representatives (9
independent)
10 Employee representatives
(mandatory size based on German co-
determination law)
Supervisory Board Chairman Jürgen B. Steinemann
Owns 116,000 shares
CEO CFO COO CHRO
45% Female ratio / Staggered Board composition
Olaf Christian Philippe Andrea
Koch Baier Palazzi Euenheim
Committees support the work of the Supervisory Board
Term ending: Term ending: Term ending: Term ending:
1 March 2022 30 September 2025 30 September 2021 31 October 2022
>10 years in >8 years in METRO >25 years in METRO Joined METRO as
METRO of 1st Nov. 2019 Presidential Audit Nomination Mediation
Owns 2,850 shares
Owns 245,000
Shares
Supervisory Board appoints the members of the Management Board,
Management Board is responsible for definition of corporate objectives,
provides advice to the Management Board and continuously monitors its
determination of the strategic direction for the group, management and
corporate management, including with regard to the attainment of long-term
supervision of the group, as well as corporate planning
corporate objectives
04/02/2020 © METRO AG | HSBC ESG ConferenceGOVERNANCE1 - COMPENSATION
Management Board - compensation Country Board - Compensation
30%
Base salary
Base salary
40% LFL Payout: Cash 30% LFL Payout: Cash
28% 40% EBITDA Annual period
Short term incentive 30% EBITDA Annual period
20% RoCE Cap: 200% of Short term incentive
30% Cash flow
target amount 10% NPS
Performance share 45% EBITDA Payout: Cash
42% plan depending on Payout: Cash 45% Cash Flow 3 years period
Long term incentive
share price 3 years period 10%
Long term incentive
development, EPS Cap: 250% of Sustainability2
and rel. TSR vs. target amount Non-monetary and
peer group additional benefits
Non-monetary and
additional benefits
The compensation scheme for management board has been approved by
shareholders on the AGM in 2018
1 As per 3 December 2019, Annual Report 2018/19 2 Sustainability based on Dow Jones Sustainability index
04/02/2020 © METRO AG | HSBC ESG ConferenceOUR RECOGNITIONS Rating/Score Scale
Publication
date
82
Dow Jones Sustainability Index Industry Leader Europe 0 to 100 09/2019
Food & Staples Retailing
C+
ISS-oekom Corporate Rating D- to A+ 08/2018
Prime Status
CDP Climate Scoring B F to A 01/2020
CDP Forest Scoring D B- F to A 01/2020
Cattle Palm Oil, Soy, Wood
CDP Water Scoring B F to A 01/2020
FTSE4Good Global/Europe Index Index member - 07/2019
04/02/2020 © METRO AG | HSBC ESG ConferenceCOUNTRY EXAMPLES – WILKE SAUSAGES [GERMANY] Wilke Sausages – Listeria germs Two people died and more then 10 people were hospitalized from listeria germs which have been found sausages produced by Wilke. METRO processes • After the first few news articles broke, Quality Assurance (QA) team started checking whether METRO is working with the supplier. • It was impossible to reach Wilke to find out which product categories should be recalled. Therefore, upon checking country databases we found that some of the own brand product is manufactured by the producer, resulting in 4 countries being affected. • The own brand products have been withdrawn on the same day, as the announcement was made and even before authorities requested a formal recall. • METRO’s reached out to all customers who bought the product via email or telephone. 04/02/2020 © METRO AG | HSBC ESG Conference
You can also read
