Improving everyday life - Corporate Social Responsibility report 2018 - Salling Group
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Improving everyday life Corporate Social Responsibility report 2018
Content Ownership structure........................................ 4 Our corporate social imperative........................ 6 Highlights 2018............................................. 8 Strategy and governance............................... 12 Sustainability................................................ 16 Customer value............................................. 26 Opportunities and diversity............................ 40 Taxes........................................................... 50 Risks and due diligence................................. 54 Human rights................................................ 56 Social and employee conditions...................... 57 Anti-corruption.............................................. 58 Environmental impact.................................... 59 Climate........................................................ 60 Our stakeholders........................................... 62 Annexes....................................................... 66
100 % owned by the
Ownership Salling Foundations
structure Købmand Herman
Sallings Fond
Købmand Ferdinand
Sallings Mindefond
Salling Group is 100% Danish and 100 % 70,81 % 29,19 %
operates across multiple units
F. Salling Invest A/S F. Salling Holding A/S
Salling Group is owned 100% by the Salling The Group operates the formats: føtex, Bilka
Foundations. The Foundations purposes are to and Netto, the Salling department stores and
48,29 % 51,71 %
ensure that Salling Group develops continuously e-commerce plus the franchises Starbucks and
to meet our customers’ needs and to give some Carl’s Jr. in Denmark. Additionally, the Group
of the profits earned back to society through operates the discount format Netto in Germany,
donations. Poland and Sweden.
Salling Group
Salling.dk, Bilka.dk, føtex.dk and
Netto.dk are covered by their
respective formats. Starbucks and
100 %
Carl’s Jr. are franchises and not
in scope for the reporting
Salling føtex Bilka Netto Wupti Starbucks Carl’s Jr.
Ownership structure
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CSR report 2018
through donations of the profits earned in the retail waste during transportation, in warehouses and
Our corporate
group. Since 2012, the foundations have donated stores, and in the homes of our customers. As part
more than a billion DKK to projects within culture, of the initiative, Netto introduced a deposit scheme
sports, charity, education, science and to the benefit on shopping bags to encourage re-use, while føtex
of our employees. stopped the sale of plastic cotton buds, disposable
social imperative
plastic cutlery and tableware. Totally that added
Increasing our social footprint up to more than 70 million plastic units.
In 2018 Salling Group also initiated a
transformation of our more than 53,000 employees In this report, we have described more specific
to focus on our contribution to the UN Sustainable activities where we in 2018 have contributed to
With size comes responsibility Development Goals (SDGs), particularly 3 (Good lasting change.
Health and Wel-being), 4 (Quality Education) and
for employees, customers, 12 (Responsible Consumption and Production). Taking responsibility
local communities and society In 2018, we took further steps to increase our
As Denmark’s largest retail company, our main
focus will always be to continue the ongoing
social footprint. Especially in the health agenda, development of a sustainable business. Our
Improving everyday life significant change. 2018 certainly did not mark the where Salling Group became the first nationwide people-focus combined with our financial strength
Being a retailer means being close to people’s lives. end of our transformation; on the contrary, in many retailer in Denmark to introduce a voluntary display enables us to make conscious long-term decisions
The choices we make on behalf of our customers ways, 2018 signalled a new beginning. Following ban on tobacco products, subsequently advocating to the benefit of all whom we interact with.
make a real difference in their everyday life. the Salling Foundations’ acquisition of the remaining a change in legislation to make a display ban While this report itself is limited to 2018, our
Eleven million people visit our stores weekly. With 19% of the shares from A. P. Moeller – Maersk, our mandatory and urging other retailers to follow suit. perspective on responsibility is for the future. We will
that comes a significant responsibility, and it is Group was once again 100% under the wings of continue to strive to give people the opportunity to
something we take very seriously. the Salling name. In 2018, we therefore changed Salling Group is aiming to reduce its food waste improve their everyday life. Strive to make a positive
Being responsible is an integrated part of how we the name of our company from Dansk Supermarked by 50% by 2030. The Group remains the only difference for our customers, our employees and
do business. It is a mind-set. Our corporate purpose Group to Salling Group to underline our heritage retailer in Denmark to measure and publish its food the society we take part in. By providing safe and
of ‘Improving Everyday Life’ guides how we engage and our connection to our owners; the Salling waste figures. In 2018, Salling Group teamed up responsible products, by sourcing conscientiously
with our customers, colleagues, partners, suppliers, Foundations. with suppliers and NGOs to launch the initiative in a world of growing complexity, by allowing our
local communities and the world around us. We do ‘Danmark mod Madspild’ (Denmark Against Food employees to utilise their full potential and last but
this through sustainable solutions, the best customer The Salling Foundations were established by our Waste) with the aim of creating transparency about not least give back to the society we take pride in
value, job opportunities for all and through our founding fathers, the entrepreneurial and visionary food waste and sharing our and the UN’s ambition being a part of. Salling Group’s purpose is to make
donations via our owners, the Salling Foundations. retailer Herman Salling and his father Ferdinand with our customers, suppliers and partners. everyday life better for customers, colleagues and
Salling. The foundations’ purpose is to ensure communities.
Giving back to society that Salling Group develops to meet our Last year Salling Group launched an ambitious
For the past six years, Salling Group has undergone customers’ needs – and to contribute to society strategy to reduce excess use of plastic and plastic
Our corporate social imperativ
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CSR report 2018
Highlights 2018
January February March April May June
Vegan minced-meat alternative føtex sets a major target for Dansk Supermarked Group
is launched in our stores with a organic products: over 2,000 changes its name to Salling
huge sales impact organic products in 2020 Group
Netto begins testing levying
deposits on plastic carrier bags føtex announces a stop of selling Salling Group becomes partner
We launch the full traceability on the island of Funen all plastic disposable tableware in ‘Røgfri Fremtid’ (Smoke-Free
Bilka increases its commitment of tuna for our private labels for the sake of the environment Future) and decides to hide
to training mentally handi – our customers have the away tobacco in all stores
capped citizens by moving possibility to check the tuna Salling Group signs the new
47
more sheltered workshops online Transition Accord on Fire and
into the Bilka hypermarkets Building Safety in the textile
industry in Bangladesh
Netto expands testing of
deposits on plastic bags – the
More than half of all the
children’s clothing sold in føtex
million deposit contributes towards
recycling
is now produced with organic plastic cotton buds are removed
A new and improved strategy cotton from shelves and replaced with
regarding responsibility is cardboard and paper products
established
Netto wins the Rainbow Award
Labelling conference for Retail Prize for sending clear
suppliers and other stakeholders signals about being a diverse
regarding food safety, health company Netto opens its future discount
and risks of misrepresentation Netto and DanChurchAid gather store: special focus on fruit and
is held socially vulnerable people for vegetables
Easter meals across the country
Highlights 2018
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CSR report 2018
Highlights 2018
July August September October November December
Netto hides all tobacco in the føtex and Bilka launch clothes føtex, Bilka and Salling ‘Miljø- og Fødevareministeriet’ Netto and ‘FødevareBanken’
500
made from recycled plastic department stores hide tobacco (the Ministry of Environment (the Danish Food Bank) invite all
from public sight. Salling Group and Food of Denmark) takes social organisations via online
Salling Group is nominated becomes the first retail group over ‘Danmark mod Madspild’ solutions to apply for excess
Hiding tobacco has an impact: for CSR award People’s Prize as in Denmark to hide tobacco (Denmark Against Food Waste), food for Christmas. 36 tonnes
Danish Netto significantly fewer young people a recognition of longstanding aiming at a smoke-free which becomes the platform for of food were donated on that
stores buy cigarettes in Netto – the engagement within social generation in 2030 future national action planning occasion
36
goal: a smoke-free generation in responsibility to fight food waste
2030 is getting closer
Sales of the highest-level animal Focusing on social projects
welfare products are increased and sustainability, the Salling
by more than a quarter of a Foundations start the distribution
billion in three years Netto introduces new plastic of donations through local føtex tonnes
Salling Group launches bags from recycled plastic and stores across the country (e.g.,
‘Danmark mod Madspild’ raises the deposit – and gets Bilka halves its food waste in playgrounds, recreational areas, 85 føtex stores throughout the
(Denmark Against Food Waste) even more bags returned just four years – and sets a new funding of a lab for the removal country establish collaborations
– an open national partnership ambition to halve once again and recycling of plastic from the with local organisations
to fight food waste Netto’s customers elect sea, to mention a few) regarding distribution of
*Organic Grower of the Year* Christmas food
among Netto organic suppliers Bilka and the children’s charity Food waste app developed by
who have been nominated for ‘Børns Vilkår’ create a volunteer Netto and ’FødevareBanken’
The heat wave in Denmark leads the prize awarded by Netto network throughout Denmark (the Danish Food Bank) wins an
to overproduction of tomatoes All conventional pork meat in international innovation award
– ”food waste ketchup” is sold Netto to come from pigs reared
in our stores with great success without the use of antibiotics Salling Foundations Diversity
and in addition receives massive Prize 2018 is awarded (prize
publicity Købmand Herman Sallings goes to a store or department føtex almost halves its food
Mindefond awards DKK 10 that has made a positive waste in just four years – and
million in special bonus to Bilka is certified “Great Place difference regarding diversity have set a new target to halve
employees to Work” and inclusiveness) it again
Highlights 2018
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CSR report 2018
Ability to impact positively
Strategy and ACTION:
Continue focus
ACTION:
Scale up to maximise positive impact
governance
The Sustainable Development
Goals 3, 4 and 12 are the goals that
Salling Group can impact the most
In the spring of 2018, Salling Group management Combined with Salling Group’s purpose, which Economic and
reputational impact
adopted a new CSR strategy for 2018-2021. The is to make everyday life better for customers,
strategy is based on a thorough analysis of the United colleagues and communities, we defined three
Nations’ 17 Sustainable Development Goals (SDGs). drivers: Sustainability, Customer value and
Opportunities for All.
Three individual goals were selected based on an
evaluation of our company’s ability to create the Heatmap
highest level of impact. From the analysis, it was concluded that global
goals 3, 4 and 12 are the goals where Salling
To enable us to identify those three key global Group have the greatest possibility to make a
goals for Salling Group to impact we identified serious impact. These three global goals will be
three variables: used as the platform for our CSR work going
forward. ACTION: ACTION:
1. the potential impact on our business economy, Based on our purpose and the three drivers, we Monitor development Continue focus and explore potential for
2. our reputation and have defined six CSR focus areas for our efforts partnerships to scale up impact
3. our own ability to influence the individual over the coming three years, tapping into our
global goals. selected global goals. Our ability to
impact positively
Strategy and governance
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CSR report 2018
Our purpose: Improving everyday life establish six CSR committees. One committee
for each focus area. Each committee has a
Each committee is responsible for:
• Delivering on and setting targets for each
chairperson from the top management of Salling focus area as well as being challenged as
Drivers Focus areas UN goals Group, who, together with the CSR team, is we make progress on existing targets
responsible for driving efforts across the • Being subject matter experts on finding the
Food waste Plastic organisation. Each committee will co-operate right solutions
Sustainability Reduce food waste by 100% recyclable packaging in private with the other members of each committee. • External activation in formats and at group level
50% from 2014-2030 label from 2018-2023
• Securing internal communication – in formats
Top management taking lead and HQ - and reporting and sparring to the
Responsible products Health • Chief Financial Officer (CFO): Anders Hagh CSR team and Executive Committee.
Increase revenue from responsible products 1. Nutritional food
Customer value 100% supplier risk screening
• Executive Vice President (EVP),
2. Physical activity
+ DKK 500 m sale of animal welfare 3. Support “generation smoke-free in 2030” Netto International: Michael Løve
• Purchasing Director, Commercial (PD): Jeppe Dahl
Inclusiveness Great work life • Executive Vice President (EVP),
60% of job ready persons to get a job +75% overall satisfaction /
Opportunities føtex: Thor Skov Jørgensen
+75% satisfaction with superior
Continuous development • Executive Vice President (EVP), HR: Peter Poulsen
CSR Committees – Salling Group – Reporting interval
CSR Framework that criterions such as importance, real impact,
The six focus areas have been prioritised in diligence and obligation to the strategy will be
COMMITTEES
accordance to where we can influence positively prioritised.
on new opportunities and where we can mitigate Food waste Anders Hagh, CFO
our impact on the planet. Objectives and status are explained in the
following chapters. Plastic Michael Løve, EVP
Each committee reports
Collaboration with external partners
Responsible products Jeppe Dahl, PD to the Executive Committee
Each focus area contains of one or more specific CSR anchored directly in top management
three times a year.
objectives, and they have in general been 2018 was also the year when we chose to even Health Thor Skov Jørgensen, EVP
developed directly in relation to a global goal. further anchor our CSR agenda directly in
Often in collaboration with external partners1, top management. After the establishment of the Diversity Peter Poulsen, EVP
including interest groups2, in order to ensure six focus areas in the CSR strategy, we decided to
Great work life Peter Poulsen, EVP
Strategy and governance
| 14
1
E.g., Ernst & Young and DIEH
CSR report 2018 2
E.g., WWF, Fairtrade, 3F, DanChurchAid
Sustainability As one of Denmark’s largest companies, we seek to make a difference, and we are constantly working to mitigate our impact on the climate and the environment. Thinking and acting sustainably is a natural part of running a solid, responsible business
Food waste
Food Waste in Formats and Total
45000 42826
40000
35000
29787
30000
We are still on track 25000
20000
19458
17303
15122
15000
10000 8119 8033
4016
5000
0
føtex Bilka Netto** Total*
As a major FMCG3 retail group, it is inevitable take over the initiative and develop it further in 2014 2015 2016 2017 2018
that we contribute to food waste. That is why we an upcoming ‘Think Tank on the Prevention of *Incl. Salling and warehouses
** More stores account for 219 tonnes in 2018
have - in line with SDG 12.3 - set a target to halve Food Waste and Food Loss’. We are pleased to
our food waste by 2030. have contributed to developing the concept and
platform for a future national action plan to reduce
In 2018, together with a number of Denmark’s food waste.
leading companies, we launched the ‘Danmark
Food Waste Development
mod Madspild’ initiative (Denmark against Bilka and føtex almost half way 45000
Food Waste). All partners in this initiative are The reduction of 1,176 tonnes that we achieved
40000
obligated to publish their food waste figures, as this year equals to 3.8% in absolute figures. We
35000
we have already done since 2016, and at the are proud to say that it is a significant reduc-
30000
same time, work towards a 50% reduction by tion compared to last year. Our føtex and Bilka
25000
2030. The partnership is open to anyone who is formats have been so dedicated and effective in
20000
interested. their work that they have managed to halve (Bilka)
and almost halve (føtex) their food waste in just 15000
Upcoming national action plan four years. Since 2014, Bilka has reduced its food 10000
‘Danmark mod Madspild’ was very well received, waste by 4,017 tonnes - i.e., 50%, while føtex has 5000
and we subsequently agreed with ‘Miljø- og reduced its food waste by 7,003 tonnes, equal to 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Fødevareministeriet’ (the Ministry of Environment 46.3%.
Target Actual
and Food of Denmark) that the Ministry should
Sustainability
| 18
3
Fast Moving Consumer Goods
CSR report 2018Nevertheless, we want to continue the fight to their ‘best before’ date. In Sweden, Netto also
against food waste in both formats by setting new cooperates with several organisations that bring
targets. The new target is yet again to halve food otherwise wasted food to use, e.g., for homeless
waste in both Bilka and føtex by 2030, equal to a people and for feeding animals.
total reduction of 75% compared to 2014.
During the summer of 2018, Sweden was affected
In Netto Denmark, we reduced the food waste by by a heat wave, which left farmers struggling to
1.9% in absolute figures, despite the fact that we feed their animals in the drought. Aiming to help,
have opened more stores and expanded during Netto Sweden involved their stores in a project
this period. Still this development is below our where food waste was donated to local farmers
expectations. for animal feed. This was a highly appreciated
initiative.
Reducing food waste footprint
“1,176 tonnes. This is how much we In 2018, we collaborated with ‘FødevareBanken’ Stronger focus outside Denmark
have reduced our total food waste (the Danish Food Bank), Wefood, ‘Mad til Alle’ As of 2019, we are starting to measure food waste
at Salling Group in the past year, and (Food for All), ‘Stop Spild af Mad’ (Stop Wasting in Netto in Germany, Poland and Sweden as well.
we will continue our determined efforts Food Denmark) and local organisations through- The reduction target will be different, however,
to avoid food waste and stay on track out the country on ways to reduce food waste. since stores outside Denmark, due to a narrower
to reach our target”, assortment, have less waste compared to Danish
Anders Hagh, Chief Financial Officer, Salling Group We have reduced packet sizes for many articles Netto stores and therefore less to optimise.
in order to avoid food waste at the consumer
end. This is done through closer and data-driven
cooperation with our fruit and vegetable suppliers
in order to secure 24 hours lead-time on all fruit 2,800,000 meals
and vegetable convenience products. The result:
not wasted
more fresh products and less food waste.
Netto in Sweden – like in Denmark – seeks to
reduce its food waste footprint by optimising 199 tonnes of food
store routines that ensure that fresh food is sold at
discounted prices close to the ‘best before’ date.
donated for human
Each store has a dedicated space in the fresh consumption
areas that displays the current items that are close
Sustainability
| 20
CSR report 2018Plastic
Plastic should never end up in nature
Each year a large quantity of plastic harmfully 4. All single-use tableware in plastic phased
ends up in the environment around the world to out no later than during 2021
the detriment of both nature and wildlife. Plastic
packaging plays an important role in the durability 5. All plastic used for transportation to be
of food and in reducing food waste. But at the reused or recycled by 2020
same time it poses a serious challenge if it is not
handled properly and therefore ends up as waste. These ambitions may grow as we learn more
about the different kinds of plastic. But right now
We have set 5 targets to support our ambition: we are committed to these very ambitious targets.
1. Reduce use of plastic in packaging in all New design to reduce plastic
food and near-food private label products Target 1-3 will all be served by the new packaging
by 30% by 2023 design principles that we have developed and are
in the process of validating with external partners
2. All food and near-food private label products such as ‘Verdensnaturfonden’ (the World Wildlife
to be designed for full recyclability by 2023 Foundation – WWF) and other industry experts.
The packaging principles will be applied to our
3. 30% of plastic used for food and near-food private labels as soon as possible. We expect
private label products to be made from a number of changes to our packaging to be
recycled plastic by 2023 launched in 2019. Two initiatives, in Netto and
Sustainability
| 22
CSR report 2018
Foto: Stefan Sauer/Picture Alliance/Ritzau Scanpix“At Salling Group, we have set an overarching føtex respectively, have already seen significant approximately 47 million plastic cotton buds
ambition that plastic should never end up in progress and have helped make the plastic agenda and 25 million plastic knives, forks, cups, glasses,
nature. To support that, we focus on reducing very present in the retail industry: straws and plates.
the amount of plastic we use, and we will
actively pursue a way of working that increases 1. Netto tests deposits for plastic bags Innovative employees show the way
the financial value of used plastic”. In Netto, we became the first Danish FMCG In 2018, at our warehouse for processed food,
Michael Løve, Executive Vice President, Netto International retailer to introduce deposits on plastic bags. This we had a target of reducing costs of GNFR (goods
contributes to plastic being reused or recycled to not for resale). Trying to reduce not only costs but
a greater extent. The deposit scheme has initially also the amount of plastic we use, we carefully
been introduced on Funen and Bornholm to test examined the foil used for the manual foiling of
customer reaction. Initially, we gave back DKK pallets, as well as foil efficiency.
1 per bag to customers when they returned the The study led to a new type of foil being developed
bags. However, the return rates were low, so we in a cooperation between warehouse employees,
increased the pay-back to DKK 2 per bag. As a GNFR buyers and external partners. The result will
consequence, the return rates have grown from give us a saving in manual foil costs of 36% and
7% to 15% in average per week, and sales of save more than 72% plastic foil in manual areas
plastic bags have dropped by almost 14%. We are per year.
currently evaluating the customer reaction and will We are now in the process of introducing this
make a final decision as to whether to roll out this new foil to all manual areas in all our warehouses
scheme during the first half of 2019. We estimate anticipating lower costs, less plastic, more stable
that Salling Group will eliminate the use of more pallets and more efficiency.
than 1,000 tonnes of virgin plastic if the initiative
is rolled out nationwide in Netto. Re-circular multi-way plastic boxes
In Q4 of 2018, føtex and Bilka started to use
2. More sustainable alternatives multi-way plastic boxes for the transportation of
In føtex, plastic cotton buds were phased out during fruit and vegetables instead of one-way cardboard
2018. At the end of the year, we stopped the sale and plastic boxes that ended up as waste. The
of all plastic disposable tableware in føtex’s 100+ multi-way boxes go from supplier to us and back
stores. Both cotton buds and plastic disposable to supplier, where they are washed and re-used.
tableware were replaced with more sustainable When they have served all they possibly can, they
alternatives made from, for example, wheat straws, are made into plastic granulate that can be used
bamboo, sugar cane, wood or paper. By doing for other plastic products.
this, we have stopped the annual sale of
Sustainability
| 24
CSR report 2018Customer value Customers are the foundation of our business, and we are here to improve their everyday life. Salling Group is continually striving to be better at creating value for our customers. We do this by making it easier for customers to choose healthy and sustainable products in our stores
Responsible
products
We take pride in providing our customers
with the option to shop responsibly
Since launching our responsible procurement requirements, as well as promote collaboration
system in 2017, we have activated almost all of our and capacity building with suppliers.
in-scope supplier base on the platform and thereby
increased traceability and transparency. This has Promote improved working conditions
enabled us to unveil the very global and complex A good example of collaboration and capacity
nature of our diverse product supply- and value building is our cooperation with Mutti S.P.A., one
chains. We have had particular focus in 2018 on of the biggest players in the Italian processed
extended mapping of many of our food tomato industry. Extending our sustainability
commodities, such as fruit and vegetables, coffee requirements’ scope to a lower risk country like
and tea, wine, vanilla and processed tomato Italy has facilitated positive impacts upstream in
products. This has allowed us to evaluate responsible Mutti’s agricultural supply chain. We anticipate “We have the power to promote
procurement hotspots and thereby determine that these changes can promote improved working improved working conditions on
appropriate sustainability standards and conditions on a bigger scale. a bigger scale and to facilitate
positive impacts in supply chain”
Jeppe Dahl Jeppesen, Purchasing Director, Commercial
Customer value
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CSR report 2018In 2018, we scaled up on sample verifications campylobacter inspection of its own minced meat
– i.e., taking out information and documentation (private labelled as ‘Mesterhakket’ beef) from all
that have been uploaded by our suppliers – and its raw ingredient suppliers. According to the
scrutinising these regarding traceability, validity Danish Veterinary and Food Administration,
and proper information on production sites. chicken meat had so far been regarded the
We have developed a systemic approach and primary source of campylobacter cases. In the
allocated resources in order to further new action plan, minced beef was suspected of
enhance verification processes in coming years. being an overlooked source of the disease.
Capacity building In our own inspection of minced meat, we took
In 2019, one of our aims is to increase efforts out 33 samples for testing, and all were negative
within additional product groups, e.g., non-food, – i.e., without a trace of campylobacter. Three
that are likely to require special attention. In samples of minced pork were also tested – also
addition we are aiming to intensify our effort in with negative results. In addition, suppliers were
capacity building by educating our agents and asked for their own analyses of campylobacter
training producers in ethical trade. With regards in beef. All were able to report that their
to our textile category, we will also continue to self-monitoring analyses had been negative.
work with fire and building safety in Bangladesh
through our membership of the Transition Accord. Subsequently, the Danish Veterinary and
Food Administration has taken more samples of
Food safety ‘Mesterhakket’ and all have been negative, we
Responsible products and production are also are proud to say.
about food safety. In many of our stores, we
produce our own meat products, which calls for
very strict in-house control regarding particularly
hygiene.
In spring 2018, as a result of ‘Fødevarestyrelsens’
(the Danish Veterinary and Food Administration’s)
announcement of a new plan to examine and
reduce the number of campylobacter infections
in Denmark, Salling Group launched a
Customer value
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CSR report 2018Animal welfare
We cooperate with our suppliers
to inspire them to integrate
animal welfare in production
At Salling Group, we want to promote animal is to increase the sale of products with the highest
welfare and offer the best opportunities to choose animal welfare by DKK 500 million by 2020.
animal welfare products in our stores. Therefore,
we strive to ensure a wide assortment and Inspiring suppliers
communicate the level of animal welfare in our As part of this effort, we are cooperating with our
products, making it easier for our customers to suppliers to inspire them to think animal welfare
make an informed choice. during production, and our buyers regularly
participate in animal welfare training. By the end
We strive to ensure a wide assortment, and
Animal welfare partnership of 2018, we had 171 products in meat, eggs,
communicate the level of animal welfare in
Central to the effort is a five-year partnership with poultry, milk and cheese in our stores that are
our products, making it easier for customers
‘Dyrenes Beskyttelse’ (the Danish Animal Welfare recommended by the Danish Animal Welfare
to make informed choices.
Society), which is one of the most ambitious Society. We see good opportunities to accelerate
initiatives in this area in Danish retail. Our objective this positive trend even further through better
Customer value
| 32
CSR report 2018selection and higher volume. We wish to ensure animal welfare - 1 heart, 2 hearts and 3 hearts
even more attractive prices for our customers with 3 hearts being the highest level of animal Sales of products produced Since the last cage eggs were
171
when it comes to animal welfare products. welfare - which make animal welfare more with the highest level of removed from our stores in
accessible and ensure that the development is animal welfare have 2017, the focus has been
Expanding animal welfare label consumer-driven. increased by DKK 292 directed towards ensuring that
In 2018, we participated in expanding the million since 2015. The cage eggs are not used as an
national animal welfare label, so it will also For broilers, ambitions for the national label for aim is an increase in ingredient in our products. The
include broilers in future. The label was introduced animal welfare include focussing on the use of animal welfare turnover for the category of goal is for no cage eggs to
in pork in 2017, and since then the proportion chicken breeds that grow more slowly, ensuring labelled products DKK 500 million by 2020. be part of our own-production
500
of meat with the new label has grown steadily. the animals have more space and shorter and private label products by
The label divides products into three levels of transport times for slaughter. By the end of 2018, there the end of 2019.
were 171 animal welfare
labelled products in Salling
Group stores. An increase
of 38% in one year. million
Animal welfare sales increase
292
300
250
200
150
111
89 92
100
50
0
2016 2017 2018 Total
Customer value
| 34
CSR report 2018Health
Hiding cigarettes in all our stores is a
strong platform for future health initiatives
In 2018, Salling Group took the most important public view as the most important action retailers
step in the field of health from a large Danish can take to actively support the goal of a
FMCG group for many years. We became the smoke-free generation in 2030. An objective that
first retail group in Denmark to hide away all also the Danish government has set itself, in its
tobacco from public view in Netto, føtex, Bilka Cancer Plan IV.
and in Salling department stores.
Smoke-free generation 2030
The decision was made based on The effect of placing tobacco out of sight is
recommendations from Kræftens Bekæmpelse that fewer young people start to smoke. Netto
(the Danish Cancer Society), Lægeforeningen (the became the first chain at home to place tobacco
Danish Medical Association) and Hjerteforeningen out of public view. After Netto hid away tobacco,
(the Danish Heart Association). All of which – with sales fell by 9%. In stores with a higher number
reference to a report from WHO Europe and other of young customers, there was an average
factors – recommend hiding tobacco away from decline of 25%.
Customer value
| 36
CSR report 2018“We have chosen to push forward an
agenda to promote a healthier future,
especially for our youngsters and the
coming generations: placing tobacco
out of sight is a means to do so”
We turn over more than DKK 1.2 billion in The decision to hide tobacco at Salling Group
tobacco. The immediate experience of hiding is the first link in the establishment and
Thor Skov Jørgensen, Executive Vice President, føtex
tobacco has been a double-digit million decline implementation of an ambitious health strategy
in sales and lost earnings. We have received for the entire group, which in its essence will focus
recognition for taking this step, but some have on three main tracks: nutrition, physical activity
also questioned whether we are trying to and smoke-free generation
“educate” our customers.
Health promoting initiatives
There is nothing we want less than to point a Today, we are working with a number of
finger at our customers. We fully recognise that health-promoting initiatives, e.g., our participation
adults have the right and freedom to smoke. in the salt partnership; information about healthy
Nonetheless, numerous studies and recognized product alternatives; sponsorship at the School
research document that smoking is a dangerous Olympics; the promotion of well-being in
habit – which is why we would like to contribute collaboration with children’s charity ‘Børns Vilkår’;
to making our children and our children’s partnership with ‘Røgfri Fremtid’ (Smoke-Free
children less likely to start smoking. Future); increased focus on fruit and vegetables
in our stores; navigation through diet advice tips;
22 million fewer cigarettes and donation of vouchers for healthy food for
In financial terms, we have consciously chosen kindergarten groups in Germany.
to accept a reduction in revenue. We are
Denmark’s largest retailer, and that brings along
responsibilities. On this specific and very
important area, we have chosen to push forward
with an agenda, so we can, hopefully, contribute
to a healthier future. In 2018 alone, we sold 22
million fewer cigarettes than the year before.
With probably the largest health-promoting
initiative in many years in the retail industry, we
have now established a serious platform for future
work with our health strategy over the coming
years.
Customer value
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CSR report 2018Opportunities and diversity With more than 53,000 colleagues, Salling Group is one of Denmark’s biggest employers, and we take pride in having the best-qualified managers and employees in our business. Therefore, we are committed to the continuous development of our employees and managers
Inclusion 150
In 2018, Salling Group was nominated for
the CSR People’s Prize for longstanding efforts We engage
to create an inclusive workplace. The prize diverity partners
is awarded by CABI, ‘Center for Aktiv agreements with in our HR team
Beskæftigelsesindsats’ (the Centre for Active 88 municipalities with specialist
Employment Efforts).
We aim to give everybody an
concerning em- knowledge and
ploying people on experience in the
opportunity to make a difference the margins of the
labour market.
field who work
together with
regardless of social circumstances municipalities and
35 employees job centres.
employed under
integration basic According to CABI’s
training (IGU). social calculator,
Salling Group is one of the country’s largest schools to get more people into work. In order to Salling Group
employers. We want to take responsibility in the maintain internal focus in this area, every year the 12 local agree- has contributed to
labour market and ensure that our employee-mix Salling Foundation Diversity Award is given to a ments for part-time society with DKK
reflects the society around us. department or store that has made a special jobs with mentoring 61,475,000 by
130
effort to promote inclusiveness in the workplace. for young people including people
An important focus area is to create opportunities under the age of 18 on the fringe of the
for people who have difficulties in finding a Apprentices in Integration training labour market.
foothold in the labour market. Taking local In 2018, we continued our work with the two-year
conditions and challenges as our starting point, integration basic training course (IGU), which, diversity coor-
we have 150 agreements with job centres and through a paid basic course, prepares employees dinators across
other partnerships across 88 municipalities. for further training as a sales assistant, butcher or In 2018, Netto was awarded the Danish the country who
Adapting to local conditions enables us to target baker. The purpose of the training programme, Rainbow Retail Prize for sending clear signals support our stores
our offers, skills development and training, which which was launched by ‘Udlændinge- og about being a diverse retail business that to ensure the
can secure long lasting employment. During integrationsministeriet’ (the Ministry of Immigration shows inclusiveness in relation to sexual inclusion of
2018, we had an average of 976 employees and Integration) in 2016, is to help refugees orientation. vulnerable groups.
hired with reduced duties or in flexible jobs. We between the ages of 18 and 40 take a step into
work with a wide range of organisations and the Danish labour market and improve their
Opportunities and diversity
| 42
CSR report 2018”At Salling Group, we strive to have
a diverse and balanced workforce. In
general we have succeeded in attracting
a balanced workforce across our
linguistic skills and understanding of Danish been employed in a job with a salary subsidy. business areas. For further development
culture and the labour market. In all, 35 As of 2018, we have been participating in a pilot we have secured corporate initiatives to
apprentices commenced an IGU programme project with ‘Gladfonden’ to establish ‘flex-training pursue our goals for a fully equal and
in 2018. for the mentally disabled’, which over the next two balanced gender leadership population
years will be tested in more of our stores. also on leadership levels from Senior
Mentored part-time jobs Manager and above”
In cooperation with a lot of municipalities, we Equality strengthens opportunities
Peter Poulsen, Executive Vice President, HR
offer part-time jobs with mentoring. This Equality is another prerequisite for being able to
programme is targeted at young people under recruit the best talent. By the end of 2018, 49%
the age of 18 who are in need of special support of the managers at Salling Group were women,
due to suffering from challenges such as learning while women accounted for 37% of all promotions
disabilities, low self-esteem, social isolation or in 2018. The proportion of women at the top
other similar challenges. The programme is widely levels of management, is significantly lower;
used e.g., in the municipality of Copenhagen, 16% at director level and above. Therefore,
where we have mentored and employed more initiatives have been put into place to strengthen
than 550 vulnerable young people in part-time opportunities for talented women to make a
jobs. Experience shows that these part-time jobs career, including supporting career planning
often improve the well-being of young people, and clarifying potential career paths. Currently
increase their self-confidence and improve their the board of directors consists of 17% female
social skills. This puts them in a better position representatives. Goal by 2021 is 40%. Target
for training or work. was previously set by 2017 which we did not
meet due to no new appointments nor change of
Creating jobs and training gender composition.
Salling Group cooperates with the national
association LEV to create jobs and training places
for people with cognitive disabilities. Our goal is
to help more mentally disabled people to find a
permanent footing in the labour market. A shop
or store job typically contains training of social,
personal and, not least, professional
competencies. Since the cooperation was
established in 2012, nearly 300 people have
Opportunities and diversity
| 44
CSR report 2018Great work life
Our employees are our greatest asset.
If they do well, the Group does well
Salling Group’s purpose is to make everyday in 2018, the overall result showed a satisfaction
life better for customers, the communities and not level that surpasses the industry’s average. In
the least for our colleagues. We want to be a 2018, Bilka, for the second time, achieved
workplace with a fine collegial spirit, good certification from Great Place to Work5, which
working environment and responsibilities. recognises the best jobs internationally.
At the same time, we strive to ensure the best
opportunities for career development and In addition to well-being and development, we
continue our tradition of training the best leaders focus on creating steady improvements in health
in the retail industry. and safety. In 2018, Salling Group’s non-food
warehouse in Aarslev, Denmark, received a health
Job satisfaction above industry’s average and safety prize (a working environment prize
In order to ensure continued improvements, we awarded by ‘Arbejdsmiljørådet’ - the Danish
conduct an annual satisfaction survey among all Working Environment Council) for a targeted effort
our employees and ensure the structured follow-up that has reduced the number of accidents
of action plans at local and higher levels. Again by almost 90% since 2013.
Opportunities and diversity
| 46
Great Place to Work is a certification programme
5
CSR report 2018 using employee ratings to determine certificationIn order to ensure a more efficient recruitment participate in bespoke professional courses and
process and on-boarding for job seekers, share experiences with colleagues from other
we introduced the ‘Fasthire’ system in 2018, parts of the group.
More than More than 40% of
500
which is a template-based system. Here,
føtex´s store managers
a range of fixed templates have been created The largest provider of apprenticeships
for each chain where individual managers With more than 500 apprentices per year,
and Bilka´s department
can publish vacant positions and receive and Salling Group is the largest provider of managers are former
process applications. The system also gives apprenticeships in Denmark. We regard our Salling Group apprentices
interested candidates the opportunity to create a apprentices as an important part in educating apprentices are trained
profile, so we have an ever-growing candidate talented employees and future leaders. All our
bank that provides our managers with excellent apprentices follow an individual training plan each year at Salling Group – more than
opportunities to occupy positions for young where work in the store is combined with a stay in any other Danish company
workers, for example, without having to go at our own Salling Group Academy at Bøgehøj,
through a long recruitment process. In addition, Ebeltoft. We offer apprentices good opportunities
5,000
the ‘MyBenefits’ portal, which all employees for their future careers within the group, both in
have access to, gathers together a wide range of Denmark and abroad. The strength of the training
employee benefits, such as discounts and special is underlined by the fact that roughly 40% of
offers. føtex’s store managers and Bilka’s department
managers are former apprentices.
Employee training centre employees undertook
Practical experience, combined with professional a course at our own
study, is a strong starting point for personal and training centre in 2018
professional development. That is why we run
our own training centre where our employees Employee response rate
of 90% and engagement
rate of 78%
(Barometer survey)
Opportunities and diversity
| 48
CSR report 2018Netto and the Danish Food Bank
have developed a food waste app
that guides consumers to the nearest
Taxes
store offering marked down food
products. A free public service
allowing consumers to save money
and to help avoiding food waste.
At Salling Group, we recognise that taxes
are a crucial resource to help enhance
public services and investments to support,
among others, the United Nation’s
Sustainable Development Goals (SDGs)
Our tax payments are a contributing factor in Our approach to tax is directed by our tax policy,7
meeting these goals, not only 3, 4 and 12 which which is approved by the Board of Directors.
are the goals we primarily address, but also goal
16.6,6 because, in the countries where we Commercial and legal considerations
operate, they contribute to raising more revenue We continuously strive to comply with the tax
for governments to improve society welfare and legislation of the countries in which we operate, and
innovation, to helping solve societal problems and we only use business structures that are driven by
to encouraging positive social and environmental commercial and legal considerations. Furthermore,
behaviour. we seek good relationships with tax authorities
Taxes
| 50
6
To develop effective, accountable and transparent institutions
CSR report 2018 7
https://storage.sallinggroup.com/media/2055/policyontax.pdfTotal tax contribution Total tax contribution
divided by countries divided into categories
Total DKK 7,664 million Total DKK 7,664 million
based on mutual respect, transparency and trust, tax, and taxes paid directly (taxes borne), such as
and we engage constructively in national and corporate income tax and property taxes. 2%
1%
international dialogue with governments and 6% 6%
2%
business groups to support the development of Taxes and duties collected Sweden 361
effective tax systems and tax administrations. Taxes and duties collected, consist of value added
We have operating companies in Denmark, tax, taxes withheld from employee wages and
Germany, Poland and Sweden, but the largest excise duties. The included amount for value Poland 290 51% 32%
activity occurs in Denmark. added tax is calculated as the net VAT payment
to the state, meaning VAT on sales minus VAT
According to the published corporate tax record payable. Collected excise duties in Denmark Germany 602
for 20178, F. Salling Holding A/S, which is the (e.g., on chocolate and alcohol) are only included
administration unit for Salling Group, is the 19th for imported goods as excise duties on locally
largest corporate income tax payer in Denmark produced products are paid to the authorities by Denmark 6.411 Corporate tax Energy tax incl. PSO Environmental tax Property tax
with a total corporate tax payment of DKK 418 the manufacturing companies.
Employee taxation Value added tax Excise duty
million. F. Salling Holding A/S is responsible for
5.000 (output minus input VAT) (imported goods only)
paying all corporate tax to the authorities on Taxes and duties borne
behalf of the Danish companies in the Group. Taxes and duties borne, consist of corporate tax,
energy tax, environmental tax and property tax.
Taxes and duties collected Taxes and duties borne
Total tax contribution The largest amount of taxes and duties borne
Total DKK 6,839 million Total DKK 825 million
In 2017, the total tax contribution9 from the Group relates to corporate income tax (58%). The Danish
amounted to DKK 7,664 million, compared to companies in the Group paid a total corporate
DKK 7,319 million in 2016. This includes both tax payment of DKK 418 million. Additionally,
7%
taxes paid indirectly by our company (taxes company tax totalling DKK 58 million was paid 16%
collected), such as VAT and employee income abroad.
36%
9%
58%
57% 17%
Employee taxation Value added tax Excise duty Corporate tax Energy tax incl. PSO Environmental tax Property tax
(output minus input VAT) (imported goods only)
Taxes
| 52
8
We are reporting on 2017 figures since 2018 figures are not available for all formats and countries at the time of writing this report
CSR report 2018 9
The presentation is made in accordance with the standardised Total Tax Contribution methodologyPrimary production
Human rights Environment
Child labour Use of water, chemicals
Risks and
Forced labour etc.
Minimum wage
Manufacturer
due diligence
Human rights Corruption
Forced labour Inducement to gain order
Child labour
Transport
As a large retailer sourcing globally, we have several our employees and business partners, particularly
Climate Corruption
risks in our supply chain where we might have a when it comes to five main areas: human rights; CO2 emissions from Facilitation payments
negative impact. To mitigate those risks, we seek to social and employee conditions; anti-corruption; transportation
have due diligence processes in place, focussing climate; and the environment.
primarily on the supply chain of our private label and Based on a materiality risk assessment conducted
own name products, since this is where we have the in 2017 in cooperation with external partner Distribution centre
Human rights Social
most influence. Ernst & Young, we identified the risks within the
Discrimination and equal Employee accidents
Salling Group’s policies10 and its adopted amfori abovementioned five main areas where we, as a treatment Stress and working hours
BSCI Code of Conduct set a clear direction for the retail company, were most likely to have a potentially
way we run our business and what we expect from negative impact. The risk picture has not changed.
Transport
Human rights Climate Environment
Fair living wages of truck CO2 emissions and parti- Noise
Code of
conduct drivers cles from transportation
Risk
New
assessmet
cyclus after
Responsible
Suppliers uploaded 1,715
two years
from start
procurement Store
system Completed profiles 1,181
Human rights Social Climate Corruption
Compliant 1,088 Food safety Employee accidents CO2 emissions from Theft
Fair living wages of Environment stores
Supplier
Compliant/ In process 39 cleaning staff Waste and food waste
In process Risk Full audit
Screening Improvements needed 53
Suspended (no go) 1 Consumer
Corrective Human rights Environment
Re-audit action Food safety Food waste
plan
Follow-up
Risks and due diligence
| 54
10
https://en.sallinggroup.com/responsibility/strategy-on-responsibility/csr-policies/
CSR report 2018Human rights Social and
employee conditions
We respect human rights and work to ensure that We are committed to taking care of our employees, which is why
we do not contribute to any human rights violations. working environment and safety issues are taken very seriously.
ISSUE RISK ACTIONS IN 2018 ISSUE RISK ACTIONS IN 2018
Food safety Risk of wrong storing of food. Food safety Third party and in-house Employee accidents There is a risk, in both warehouses and Regular analyses and
considerations include the origins of food, control of food handling, stores, of sudden accidents because of monitoring of lost time
including observance of the practices hygiene, preparation and physical handling of boxes, slippery floors, incidents from top-level
relating to food labelling, food hygiene, storage in our stores and use of forklifts, knives or other machinery down to department-level
food additives and pesticide residues in distribution centres. and tools. in each store and ware-
order to avoid potential consumer poisoning. house. Focus areas are
Foreign objects (e.g., glass) also form a risk We have commenced the typically lifting, slipping/
that constitutes a danger for consumers. Poor dialogue with our colleagues tripping and staff exposed
food safety can potentially affect a lot of in Sweden, Germany and to robbery.
people, and in some cases food poisoning Poland in order to bring them
can have fatal consequences (e.g., listeria in scope for reporting on food Stress There is a risk that employees can be We seek to match pressure
and salmonella). safety, too. diagnosed with stress. Stress can affect the and demands, to our
health of staff, reduce productivity and lead employees´ knowledge and
Child labour, forced The nature of our supply chain comprises amfori BSCI Code of to performance issues or employees taking abilities.
labour, minimum risks in some of the countries we source Conduct and third-party time off or being on sick leave.
wages and conflict from, especially in agricultural, apparel, audits, including interviews
minerals electronic and jewellery industries, where with workers. Physical attrition Risk of physical attrition due to heavy Where possible, we try to
child labour, forced labour and wages lifting and moving, or too much support job rotation, and
below a minimum level set by local Mandatory responsible sedentary work, which may lead to poor sedentary employees are
legislation might occur. procurement courses to all quality of life, more frequent sick leave and offered sit-stand desks.
our procurement personnel. higher employee turnover.
Human rights
| 56
CSR report 2018Anti-corruption Environmental impact
We strive to maintain a fair and transparent business culture By sourcing from all over the world, we are at risk of contributing to a negative environmental impact on some
and will not tolerate any kind of corruption. of the places we source from or places where some of the ingredients in our products are grown or produced.
ISSUE RISK ACTIONS IN 2018 ISSUE RISK ACTIONS IN 2018
Facilitation Risk of facilitation payments, corruption amfori BSCI Code Water usage Risk of excessive water usage in the We map our direct business water footprint in
payments, and bribery in our supply chain, which of Conduct and production of the goods we sell. order to see where and how we can contribute
corruption is a barrier for economic and social Anti-Corruption Policy Everything we use, wear, buy, sell to minimising water usage. The next step will be
and bribery development, particularly in developing reviewed. and eat takes water to produce. to start mapping water usage in our supply chain
countries, and is often synonymous with Extensive water usage in areas – a step we had hoped to initiate in 2018 but
increased costs. with scarce water resources has a did not make. We will, nevertheless, maintain
considerable impact on the our ambition and explore the possibilities of
Corruption Risk of corruption, e.g., related to Business Principles, environment and local inhabitants. mapping supply chain water usage.
and accounting fraud, bribery related to Anti-Corruption Policy with
bribery obtaining building permissions or receipt zero target, well-established Deforestation Risk that products we sell may We demand from our private label suppliers that
in Salling of money or values for placing an order. internal controls, responsible have contributed to deforestation, any content of palm oil must be RSPO11 mass
Group procurement courses for and as a consequence the loss of balance certified as a minimum for Non-Food
procurement personnel and biodiversity and the enhancement and segregated for Food. The status is reported
review of whistle blower of the greenhouse effect, because once a year. The segregated target for food
set-up. of content such as palm oil or soy. products for 2018 was not achieved. We
have demanded from suppliers not fulfilling the
requirement to be in place during 2019.
We are participating in a soy working group
under DIEH (the Danish Initiative for Ethical
Trading) to set up a soy policy.
Plastic Plastic often ends up in the We have set up a plastic strategy and policy and
environment and especially in the entered into a 5-year partnership on plastic with
oceans where it poses an extremely WWF.
large threat to life under water.
Anti-corruption
| 58
11
Round Table on Sustainable Palm Oil
CSR report 2018You can also read
