Interim Report 2020 ALDI Nord

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Interim Report 2020 ALDI Nord
ALDI Nord
Interim Report 2020
Interim Report 2020 ALDI Nord
2   INTERIM REPORT 2020

    TABL E OF C ONTENTS        FO R E W O RD     H I GH LI GH TS     C R PRO G R A MME     H U MA N R IG H TS     L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N     ANTI-C O R RU PTIO N     APPE ND IX

                                                                                TABLE OF CONTENTS
                     1. FOREWORD                                               6. ENVIRONMENTAL PROTECTION                                        12.	L ABELLING OF PRODUCTS:
                                                                                                                                                       EXPANDED NUTRITIONAL LABELS TO
                     2. HIGHLIGHTS                                                    1.	OUR COMMITMENT
                                                                                                                                                       AID CUSTOMER DECISIONS
                                                                                           TO CLIMATE PROTECTION
                                                                                                                                                  13. SUSTAINABLE PRODUCT RANGES
                     3. CR PROGRAMME                                                  2.	JOINING THE SCIENCE BASED
                                                                                           TARGETS INITIATIVE                              7. ANTI-CORRUPTION
                     4. HUMAN RIGHTS                                                  3.	CLIMATE PROTECTION
                                                                                                                                                  1.	VALUE-BASED
                            1.	POLICY STATEMENT AND                                       IN THE SUPPLY CHAIN
                                                                                                                                                      CORPORATE GOVERNANCE
                                INTERNATIONAL FRAMEWORKS                              4.	ENVIRONMENTAL RESPONSIBILITY
                                                                                                                                                  2.	OUR UNDERSTANDING
                            2.	HUMAN RIGHTS DUE DILIGENCE                                 IN BUILDINGS
                                                                                                                                                      OF COMPLIANCE
                                IN OUR SUPPLY CHAINS                                  5.	RENEWABLE ENERGY:
                                                                                                                                                  3.	WELL-STRUCTURED COMPLIANCE
                            3	CONTINUOUS IMPROVEMENT                                      MORE GREEN ELECTRICITY BY 2021
                                                                                                                                                      MANAGEMENT SYSTEM
                                AND TRANSPARENCY                                      6.	SUSTAINABILITY IMPROVEMENTS
                                                                                                                                                  4.	COMPLIANCE AS AN INTEGRAL
                                                                                           IN COTTON
                     5. LABOUR RIGHTS                                                                                                                 PART OF ALDI NORD
                                                                                      7.	REDUCTION OF CHEMICALS
                            1.	SOCIAL RESPONSIBILITY                                      IN PRODUCTION                                   8. KEY FIGURES
                                IN THE SUPPLY CHAINS                                  8. RECYCLING AND THE SUPPLY CHAIN
                                                                                                                                                  1.   MANAGEMENT
                            2.	EMPLOYEE APPRECIATION                                 9.	PROMOTION OF A CIRCULAR
                                                                                                                                                  2.   CUSTOMER & PRODUCT
                                AT ALDI NORD                                               ECONOMY:
                                                                                                                                                  3.   SUPPLY CHAIN & RESOURCES
                                                                                           OUR PACKAGING TARGETS
                                                                                                                                                  4.   CLIMATE & ENVIRONMENT
                                                                                      10.	R EDUCTION OF FOOD LOSS:
                                                                                                                                                  5.   EMPLOYEES & COMMUNITY
                                                                                           OUR GOALS
                                                                                      11.	REGIONALITY:                                    9. REPORT PROFILE
                                                                                           GUIDELINE FOR DEFINITION
                                                                                                                                           10. IMPRINT & CONTACT
Interim Report 2020 ALDI Nord
3   INTERIM REPORT 2020

    TABL E OF C ONTENTS           FO R E W O RD       H I GH LI GH TS      C R PRO G R A MME        H U MA N R IG H TS        L A BO U R R IG H TS        E NV IRO NME NTAL PROTE CTIO N         ANTI-C O R RU PTIO N     APPE ND IX

                                                                                                   FOREWORD

                            DEAR READERS,

                            At ALDI Nord, 2020 was marked to a large extent by        mitted ourselves to setting binding and scien­ti­fically         We report on this and other progress in this Interim
                            the COVID-19 pandemic. As a food supplier, we have        ­verified targets over the next two years to reduce              Report, which is based on the requirements of the
                            borne particular responsibility during the crisis. We      our CO2 emissions, in line with the 1.5°C-aligned               United Nations Global Compact (UNGC). Back in
                            took action early in spring 2020, with strict hygiene      target of the Paris Agreement. We will provide more             2017, ALDI Nord became the first discount food
                            and protection measures for both employees and             information about these new goals in 2022.                      retailer to join the UNGC and has since committed
                            customers to ensure that shopping is safe even                                                                             itself to upholding its ten principles. Together with
                            during the pandemic. In addition, we rapidly laid the     We did not let up in the other areas of our sustain-             the 17 United Nations Sustainable Development
                            technical requirements necessary to make remote           ability work last year either, despite the impact of             Goals (SDGs), these principles form the basis for the
                            working possible in all suitable areas. Whether at        the pandemic. When it comes to reducing plastic                  further development of our sustainability strategies.
                            our stores, in our warehouses or from home, all           waste, for example, we stopped selling disposable
                            ALDI employees went the extra mile in this extra­         plastic products such as plates, cutlery, cups,                  I hope you enjoy reading this report and find it
                            ordinary stressful situation. The ALDI companies          straws and cotton buds throughout the ALDI Nord                  ­informative!
                            have shown their appreciation to the employees at         group of companies at the end of 2020. We also
                            the stores and distribution centres for their tireless    adopted new international packaging targets in
                            efforts with a special payment or a goods voucher.        2021 with goals that include making sure our own-
                                                                                      brand plastic product packaging consists of 30 per
                            The coronavirus pandemic impressively ­demonstrated       cent recycled material by 2025. Another milestone
                            last year that decisive action, rather than a wait-and-   from the reporting year is our new international
                            see approach, is needed in times of crisis. This lesson   policy on the prevention of food loss and waste.
                            must also be applied to another crisis, the effects       This regulates the handling of surplus food and is
                            of which are no less dramatic: the climate crisis. As     binding for the ALDI companies and their business
                            a result, we have once again sharpened our focus on       partners. For many years now, ALDI Nord has been                 Rolf Buyle
                            climate protection. In July 2020, we became one of        using numerous measures to minimise food loss                    Managing Director
                            the first discount supermarkets to join the ‘Science      and waste. The new policy creates a binding frame-               International Buying
                            Based Targets initiative’. By joining, we have com-       work for the entire group of companies.                          ALDI Einkauf SE & Co. oHG
Interim Report 2020 ALDI Nord
4   INTERIM REPORT 2020

    TABL E OF C ONTENTS          FO RE W O R D     H I GH LI GH TS       C R PRO G R A MME          H U MA N R IG H TS         L A BO U R R IG H TS          E NV IRO NME NTAL PROTE CTIO N         ANTI-C O R RU PTIO N     APPE ND IX

                                                                HIGHLIGHTS – 6 YEARS OF REPORTING                                                                                           2019
                                                                                                                                                                                            Over 8,600 stakeholders across
       2016                                                                                                                                                                                 the ALDI companies are
       16,000 MWh of climate-friendly                                                                                                                                                       surveyed about their opinions
       ­electricity – almost double the                                                                                                                                                     on sustainability.
        ­previous year – is generated using
         photovoltaic systems (group-wide).
                                                                                                                                  2018
                                                                                                                                  We adopt our climate
                                                                                                                                  ­protection policy, which
                                                                                                                                   includes an ambitious
                                                                                    2017
                                                                                                                                   climate target.
                                                                                    ALDI Nord joins
                                                                                    the UN Global                                                                            2020
                                                                                    ­Compact, a United                                                                       The first climate-­
                                                                                     Nations initiative for                                                                  neutral product is
                                                                                     sustainable and                                                                         ­available at ALDI Nord.
                                                                                     responsible corpo-
                                                                                     rate governance.

                                                                                                                    2018
                                                           2016                                                     Plastic carrier bags are                                                        2020
                                                           The first group-wide                                     phased out in the first                                                         Around 38,000 tonnes less
                                                           sustainability report                                    countries.                                                                      packaging material compared
                                                           including CR Policy is
                                                                                                                                                                                                    to 2015 thanks to the ALDI
                                                           published.
                                                                                                                                                                                                    Packaging Mission.

          2015
          The CR department of
          ALDI Einkauf GmbH & Co. oHG
                                                           2015
          in Germany is founded, with
                                                           ALDI CR Support Asia Ltd.                                                                    2020
                                                           is founded in Hong Kong.                                                                     1,178 own-brand products with the EU organic
          ­corresponding structures also
           gradually being established                                                                                                                  label in our ranges – an increase of over 170%
           in other countries.                                                                                                                          compared to 2015.
Interim Report 2020 ALDI Nord
5                    INTERIM REPORT 2020

                     TABL E OF C ONTENTS           FO R E W O RD        H I GH LI GH TS        C R PRO G R A MME           H U MA N R IG H TS          L A BO U R R IG H TS              E NV IRO NME NTAL PROTE CTIO N             ANTI-C O R RU PTIO N            APPE ND IX

                     CR PROGRAMME 2020 – INTERNATIONAL

                                                                        Description of goals & scope                                                                                         Status 2020 & next steps                                        SDGs

                                                                                       Reduce total weight of own-brand virgin plastic packaging
                                                                                       at ALDI Nord (excluding fruit and vegetables) by 20% –                                                                                                                                    12.2
                       20% less virgin plastic in own-brand packaging by 2025                                                                                                     2025       New goal.                                                                           12.5
                                                                                       ­proportional to sales – by end of 2025 (at the latest – base
                                                                                       year 2020).

                                                                                       30% recycled content in own-brand plastic packaging by 2025                                                                                                                               12.2
                       30% recycled content in own-brand plastic packaging by 2025                                                                                                2025       New goal.                                                                           12.5
                                                                                       (at the latest – average value).

                                                                                       Transition of newly purchased product packaging to
                                                                                       sustainably certified materials (FSC®, PEFC™, EU Ecolabel
                                                                                       or comparable standards) or consisting of more than
CUSTOMER & PRODUCT

                       100% sustainably certified and/or recycled materials                                                                                                                  Project ongoing. 70% of packaging was certified                                     12.2
                                                                                       70% ­recycled materials at ALDI Nord, depending on avail-                                  2020                                                                                           12.5
                       for all product packaging by end of 2020                                                                                                                              in 2020.                                                                            15.2
                                                                                       ability by end of 2020. The requirement refers to all own-
                                                                                       brand ­products within the ­standard product ranges, seasonal
                                                                                       ­products and food specials.

                       100% reusable, recyclable or compostable packaging              100% of own-brand packaging at ALDI Nord to be reusable,                                                                                                                                  12.2
                                                                                                                                                                                  2025       Project ongoing.                                                                    12.5
                       by end of 2025                                                  recyclable or compostable by end of 2025.

                                                                                       Reduction of the total weight of own-brand packaging
                                                                                                                                                                                                                                                                                 12.2
                       15% less packaging by end of 2025                               material at ALDI Nord (excluding fruit and vegetables) by                                  2025       Project ongoing.                                                                    12.5
                                                                                       15% – proportional to sales – by end of 2025 (base year 2020).

                       Reusable nets for fruit and vegetables
                                                                                       Rollout of reusable nets for fruit and vegetables in all stores of
                                                                                       the ALDI companies.                                                                         ∞         Project ongoing. The nets are already available
                                                                                                                                                                                             in Germany, Denmark, Portugal and Spain.
                                                                                                                                                                                                                                                                                 12.2
                                                                                                                                                                                                                                                                                 12.5

                                                                                       No more disposable plastic carrier bags (except knot bags)                                            Project ongoing. Only reusable carrier bags
                                                                                       by end of 2021: To achieve this goal, the assortment of                                               have been implemented in Belgium, Denmark,
                                                                                       ­multipleuse carrier bags is to be expanded. These bags should                                        Germany, France (in accordance with French
                       No more disposable plastic carrier bags (except knot bags)                                                                                                                                                                                                12.2
                                                                                        be repairable and/or washable and should be ­recognisable as                              2021       legislation), Luxembourg, the Netherlands                                           12.5
                       by end of 2021
                                                                                        reusable, taking into account haptics and carrying comfort.                                          and Poland. The goal is currently still being
                                                                                        Bags that do not meet these requirements are not covered by                                          ­implemented in Portugal and Spain. There, the
                                                                                        this goal. Paper bags are considered separately.                                                      last single-use carrier bags will be sold in 2021.

                                                                                                                                                            Process Key
                                                                                                                                                                New       In Progress     Goal achieved   Ongoing
Interim Report 2020 ALDI Nord
6                    INTERIM REPORT 2020

                     TABL E OF C ONTENTS            FO R E W O RD          H I GH LI GH TS        C R PRO G R A MME            H U MA N R IG H TS         L A BO U R R IG H TS              E NV IRO NME NTAL PROTE CTIO N            ANTI-C O R RU PTIO N            APPE ND IX

                                                                           Description of goals & scope                                                                                         Status 2020 & next steps                                       SDGs

                                                                                          End the sale of single-use plastic products such as plates,
                                                                                          cutlery, cups, straws, stirrers and cotton buds in all ALDI
                                                                                                                                                                                                                                                                                   12.2
                       Ban of single-use plastic products by end of 2020                  companies by end of 2020. Indispensable articles should be                                            Goal achieved.                                                                     12.5
                                                                                          replaced by more environmentally-friendly alternatives or
                                                                                          reusable variants.

                                                                                          100% of our organic products (organic fruit and vegetables)
                                                                                          will be unpackaged or use environmentally friendly packaging
                       100% unpackaged organic fruit and vegetable articles or in                                                                                                                                                                                                  12.2
                                                                                          in all ALDI companies by end of 2023. The use of plastic is to                             2023       Project ongoing.                                                                   12.5
                       environmentally friendly packaging by end of 2023
                                                                                          be reduced to a minimum – taking into account product quality
                                                                                          and food losses.

                                                                                          At least 40% of fruit and vegetable products will be
                       Expansion of unpackaged articles in the fruit and vegetable        ­unpackaged in the stores of all ALDI companies by end of                                             Project ongoing. Already achieved in Portugal                                      12.2
                                                                                                                                                                                     2025                                                                                          12.5
                       sector to at least 40% by end of 2025                               2025. For products which require packaging, only sustainable                                         and Poland.
CUSTOMER & PRODUCT

                                                                                           and environmentally friendly packaging will be used.

                                                                                                                                                                                                Project ongoing. Already achieved in the Nether­
                                                                                          100% of all plastic interlayers in crates for fruit and vegetables                                    lands (only cardboard layers used), Belgium:                                       12.2
                       No plastic interlayers in crates by end of 2021                                                                                                               2021                                                                                          12.5
                                                                                          in all ALDI companies will be removed by end of 2021.                                                 95% of all interlayers in crates for fruit and veg-
                                                                                                                                                                                                etables in bulk made of cardboard (end of 2020).

                                                                                          Standardise the criteria for products for children at
                                                                                          ALDI Nord according to national guidelines while striving to
                       Optimise composition of 100% of products for children              comply with the WHO recommendation. Products for children
                                                                                                                                                                                     2021       Project ongoing.
                       by end of 2021                                                     that do not comply will be delisted or relabelled by the
                                                                                          end of 2021. ­Optimise all products for children, regardless
                                                                                          of product group.

                                                                                          Avoid marketing unhealthy products for children and advertise
                       Avoid marketing for children of unhealthy choices and              and promote healthy products (including fruit and ­vegetables)                                                                                                                           2.2
                                                                                                                                                                                     2021       Project ongoing.
                       promote healthier products by end of 2021                          in all ALDI companies end of 2021 except special offers
                                                                                          e.g. christmas.

                                                                                          Launch and campaign a new ALDI children's brand
                       Launch own brands for products for children by end of 2021                                                                                                    2021       Project ongoing.
                                                                                          by end of 2021.

                       Cooperate at least with one partner on national                    Cooperation with suppliers, organisations and experts for
                       or international level on product range for children               improving current product ranges for children and for working                              2021       Project ongoing.                                                                   17.16

                       by end of 2021                                                     on innovations for all ALDI companies by end of 2021.

                                                                                                                                                               Process Key
                                                                                                                                                                   New       In Progress     Goal achieved   Ongoing
Interim Report 2020 ALDI Nord
7                    INTERIM REPORT 2020

                     TABL E OF C ONTENTS              FO R E W O RD      H I GH LI GH TS               C R PRO G R A MME                   H U MA N R IG H TS                  L A BO U R R IG H TS             E NV IRO NME NTAL PROTE CTIO N           ANTI-C O R RU PTIO N            APPE ND IX

                                                                             Description of goals & scope                                                                                                           Status 2020 & next steps                                      SDGs

                                                                                            Upgrade products through optimised nutritional ­composition
                                                                                            (e.g. reduce salt, sugar or fat, or increase fibres) and offer
                       Improved nutrient composition in 100% of the defined product         reliable product ranges for customers with special dietary                                                                                                                                                2.2
                                                                                                                                                                                                         2022       Project ongoing.
                       groups by end of 2022                                                needs in the product groups Breakfast, Dairy, Chilled
                                                                                            ­Convenience, Freezer and Non-Alcoholic Beverages in all
                                                                                             ALDI companies by end of 2022.

                                                                                                                                                                                                                    Project ongoing. ALDI France and ALDI Belgium
                                                                                                                                                                                                                    started to use the label in 2020. At the begin-
                       Extend nutritional labelling
                                                                                            Introduction of nutritional label (e.g. Nutri-Score,
                                                                                            The Keyhole) in all ALDI countries for own-brand products.                                                    ∞         ning of 2021, ALDI Nord Germany, ALDI Spain
                                                                                                                                                                                                                                                                                                      2.2
                                                                                                                                                                                                                                                                                                      12.8
                                                                                                                                                                                                                    and ALDI Portugal registered the first brands.
                                                                                                                                                                                                                    These will be launched in stores later this year.

                                                                                            Improve labelling and communicate sustainable added values,
                       Improve labelling and communicate sustainable added values           such as animal welfare, vegan, organic, improved nutritional                                                  ∞         Project ongoing.                                                                  12.8

                                                                                            labelling and social projects in all ALDI companies.
CUSTOMER & PRODUCT

                                                                                            Identify the gaps in the organic assortment in each ALDI
                       Expanding organic assortment                                         country and each product group, and listing of missing                                                        ∞         Project ongoing. 1,290 products in 2020; +9.5%
                                                                                                                                                                                                                    compared to the previous year.
                                                                                            products in the assortment.

                       Expanding vegetarian and vegan assortment
                                                                                            Expansion of the ranges of vegetarian and vegan products,
                                                                                            including certification (e.g. V-Label) in all ALDI companies.                                                 ∞         Project ongoing. 633 products in 2020; +27.4%
                                                                                                                                                                                                                    compared to the previous year.

                                                                                            Introduction of an own brand for vegetarian and vegan
                       Introduction of own brand for vegetarian and vegan products
                                                                                            products for all newly purchased/newly listed products                                                       2021       Project ongoing.
                       for all new products/purchases end of 2021
                                                                                            in all ALDI countries end of 2021.

                                                                                            100% labelling of all vegetarian and vegan products
                       Labelling 100% of vegetarian and vegan products for all new
                       products/purchases starting in 2021
                                                                                            (V-label/vegan flower) for all newly purchased/newly listed
                                                                                            products in all ALDI companies, with a focus on cosmetics,                                                    ∞         Project ongoing.                                                                  12.8

                                                                                            personal care, health and beauty, starting in 2021.

                                                                                            Introduction of a guideline for dealing with food that is no
                       Guideline for dealing with food loss by end of 2020                  longer saleable in the ALDI stores by end of 2020 (formerly                                                             Goal achieved. Publication in March 2021.
                                                                                            2017).

                                                                                            Integrate 100% of all ALDI stores in cooperations with NGOs
                                                                                            to reduce food waste by 2021 (e.g. Tafel, Too Good To Go,
                                                                                            Refood). The goal is reached as soon as every store works                                                               Project ongoing. 80.9% stores donated
                       Integrating 100% of all stores in a partnership to reduce food                                                                                                                                                                                                                 17.16
                                                                                            regularly* with one or more defined potential partners.                                                      2021       ­unsalebale food in 2020. +6.2% compared to the
                       waste by end of 2021
                                                                                                                                                                                                                     previous year.
                                                                                           * egularly means enabling the redistribution of food surplus as often as possible
                                                                                           R
                                                                                            from both sides.

                                                                                                                                                                                   Process Key
                                                                                                                                                                                       New       In Progress     Goal achieved   Ongoing
Interim Report 2020 ALDI Nord
8                          INTERIM REPORT 2020

                           TABL E OF C ONTENTS            FO R E W O RD            H I GH LI GH TS        C R PRO G R A MME            H U MA N R IG H TS           L A BO U R R IG H TS             E NV IRO NME NTAL PROTE CTIO N           ANTI-C O R RU PTIO N            APPE ND IX

                                                                                   Description of goals & scope                                                                                          Status 2020 & next steps                                      SDGs

                                                                                                  Develop products made from food surplus and introduction
CUSTOMER & PRODUCT

                             Offer products from food surplus by end of 2021                      of at least one product in defined product groups by end of                                 2021       Project ongoing.
                                                                                                  2021 at ALDI Nord.

                                                                                                  100% labelling of all national products e.g. with national flag
                             100% labelling of all national products for all new                  for all newly purchased/newly listed products in all ALDI                                                                                                                                12.8
                                                                                                                                                                                              2021       Project ongoing.
                             products/purchases by end of 2021                                    ­companies by end of 2021. Scope: fruit and vegetables, dairy,
                                                                                                   fresh meat and fish.

                                                                                                  Development of regional product ranges in each ALDI
                             Develop regional product ranges in each ALDI country
                                                                                                  country by end of 2021. Scope: fruit and vegetables, dairy,                                 2021       Project ongoing.
                             by end of 2021
                                                                                                  fresh meat and fish.

                                                                                                  Conversion of 100% of vegetarian and vegan own-brand
                             100% vegetarian and vegan soy-based products with                    soy-based products to soy of European origin or certified soy,
                                                                                                                                                                                              2021       Project ongoing.
                             sustainable soy by end of 2021                                       and support of soy alternatives, e.g. pea-based products, by
                                                                                                  end of 2021 at ALDI Nord.

                                                                                                                                                                                                         Goal achieved. 99.3% in 2020. The figure refers
                                                                                                                                                                                                         to physically certified palm oil, palm kernel oil
                                                                                                  Transition to physically RSPO-certified palm oil for all
                                                                                                                                                                                                         and derivatives. While we constantly strive to
                                                                                                  own-brand products containing palm oil (Roundtable on                                                                                                                                    12.2
                             100% RSPO-certified palm oil by end of 2019                                                                                                                                 increase this share, derivatives and fractions                                    15.2
SUPPLY CHAIN & RESOURCES

                                                                                                  Sustainable Palm Oil – RSPO) by end of 2019 (formerly 2018)
                                                                                                                                                                                                         are not always available in physically certified
                                                                                                  at ALDI Nord.
                                                                                                                                                                                                         quality and are therefore covered by us via Book
                                                                                                                                                                                                         & Claim certificates.

                                                                                                  Transition to certified sustainable coffee (UTZ/Rainforest
                             Extension of certified sustainable coffee by end of 2020             ­Alliance, Fairtrade, organic) for defined own-brand products                                          Goal achieved.                                                                    12.2

                                                                                                   by end of 2020 at ALDI Nord.

                                                                                                   Increase the share of certified sustainable resources
                                                                                                  (UEBT/UTZ, EU organic logo, Fairtrade or UTZ/Rainforest
                             40% certified sustainable resources of herbal tea and fruit                                                                                                                                                                                                   12.2
                                                                                                  ­Alliance Certified™ label) of herbal tea and fruit infusions                                          Goal achieved.
                             infusions by end of 2020
                                                                                                   in own-brand products to 40% by end of 2020
                                                                                                   at ALDI Nord.

                                                                                                                                                                                                         Goal achieved. 93.2% in 2020. We consider our
                                                                                                  Transition of all wood and wood-based products to sustainably
                                                                                                                                                                                                         goal to be achieved, as exceptional cases are                                     12.2
                             100% sustainably certified wood by end of 2020                       certified materials (FSC®, PEFC™, EU Ecolabel or comparable                                                                                                                              15.2
                                                                                                                                                                                                         examined and compliance with our require-
                                                                                                  standards) by end of 2020 at ALDI Nord.
                                                                                                                                                                                                         ments as well as changeovers are demanded.

                                                                                                                                                                                                         Project ongoing. Publication of International
                                                                                                  Use of sustainable cotton (e.g. GOTS, OCS 100/blended,
                                                                                                                                                                                                         Cotton Purchasing Policy in 2020; 64.1% in
                             100% sustainable cotton by end of 2025                               Fairtrade, recycled cotton, BCI, CmiA) for all clothing                                     2025                                                                                         12.2
                                                                                                                                                                                                         2020; +27.9 percentage points compared to the
                                                                                                  and home textiles in all ALDI companies by end of 2025.
                                                                                                                                                                                                         previous year.

                                                                                                                                                                        Process Key
                                                                                                                                                                            New       In Progress     Goal achieved   Ongoing
Interim Report 2020 ALDI Nord
9                          INTERIM REPORT 2020

                           TABL E OF C ONTENTS             FO R E W O RD        H I GH LI GH TS        C R PRO G R A MME            H U MA N R IG H TS         L A BO U R R IG H TS            E NV IRO NME NTAL PROTE CTIO N            ANTI-C O R RU PTIO N            APPE ND IX

                                                                                Description of goals & scope                                                                                       Status 2020 & next steps                                       SDGs

                                                                                               Continuously increase share of certified sustainable plants
                             100% certified flowers and plants                                 and flowers (e.g. GLOBALG.A.P. in combination with GRASP or                                ∞        Project ongoing.                                                                   12.2

                                                                                               alternative standards) in all ALDI companies.

                                                                                               Continuously increase the share of certified sustainable fruit
                             Social evaluation of all producers of fruit and vegetables        and vegetables (e.g. GLOBALG.A.P. in combination with GRASP                                ∞        Project ongoing.
                                                                                               or alternative standards) in all ALDI companies.

                                                                                                                                                                                                   Project ongoing. Intensive efforts were made
                                                                                               Ongoing expansion of test and certification systems and own                                         to further raise the level of animal welfare
                             Extension of animal welfare criteria                              standards in all ALDI companies that go beyond the statutory                               ∞        on a broad scale in 2020. We will publish an
                                                                                               requirements and include animal welfare aspects.                                                    update of the IAWP in 2021; the goal will then
SUPPLY CHAIN & RESOURCES

                                                                                                                                                                                                   be achieved.

                                                                                                                                                                                                   Project ongoing. It became apparent that
                                                                                                                                                                                                   the industry will not meet its obligations under
                                                                                                                                                                                                   the Detox Commitment in 2020. Following
                                                                                                                                                                                                   the adopted roadmap, several Detox progress
                                                                                                                                                                                                   reports and the final report were published.
                                                                                                                                                                                                   However, the challenges are significant, so the
                                                                                                                                                                                                   work with partners in the supply chain will
                                                                                                                                                                                                   be continued to improve chemicals management
                                                                                               Ban on specific groups of chemical substances in the                                                in the coming years and to pursue the

                                                                                                                                                                                          ∞
                                                                                               ­manufacture of own-brand products, in the product groups                                           defined goals.                                                                     3.9
                             Ban on all defined chemical substances in 2020                                                                                                                                                                                                           6.3
                                                                                                clothing, home textiles and footwear, by end of 2020                                                                                                                                  12.4
                                                                                                (ALDI Detox Commitment) and ongoing in all ALDI countries.                                         After the end of the ALDI Detox Commitment,
                                                                                                                                                                                                   a continuous improvement process will be
                                                                                                                                                                                                   ­pursued to make further progress towards
                                                                                                                                                                                                    gradually eliminating hazardous chemicals
                                                                                                                                                                                                    within the supply chains. Due to its complexity,
                                                                                                                                                                                                    continuous work and measures will be needed
                                                                                                                                                                                                    to achieve the goal step by step. Therefore
                                                                                                                                                                                                    we will define new goals that contribute to
                                                                                                                                                                                                    this goal.

                                                                                               Expansion of dialogue with major stakeholder groups,
                             Participation in sector initiatives                               especially through participation in sector initiatives in all                              ∞        Project ongoing.                                                                   17.16

                                                                                               ALDI countries.

                                                                                                                                                                   Process Key
                                                                                                                                                                       New       In Progress    Goal achieved   Ongoing
Interim Report 2020 ALDI Nord
10                      INTERIM REPORT 2020

                          TABL E OF C ONTENTS            FO R E W O RD        H I GH LI GH TS         C R PRO G R A MME          H U MA N R IG H TS          L A BO U R R IG H TS             E NV IRO NME NTAL PROTE CTIO N           ANTI-C O R RU PTIO N            APPE ND IX

                                                                               Description of goals & scope                                                                                       Status 2020 & next steps                                      SDGs

                                                                                             We aim to conduct and publish up to 12 Human Rights Impact
                            Identify impacts on human rights and implement transparent       Assessments (HRIAs) – at least one assessment for each                                                                                                                                 8.8
                                                                                                                                                                                       2025       New goal.
SUPPLY CHAIN &

                            reporting according to our due diligence strategy                high-risk supply chain – by end of 2025. We will start by
  RESOURCES

                                                                                             ­conducting three HRIAs by end of 2021.

                                                                                             Implement grievance mechanisms in all high-risk supply
                            Establish a grievance mechanism                                                                                                                            2025       New goal.                                                                         8.8
                                                                                             chains by 2025.

                            Further implementation of Corporate Responsibility               Rollout of Corporate Responsibility Supplier Evaluation (CRSE)                                                                                                                         8.8
                                                                                                                                                                                       2027       New goal.
                            Supplier Evaluations                                             in all high-risk supply chains by 2027.

                                                                                                                                                                                                  Project ongoing. 31% reduction in green-
                                                                                                                                                                                                  house gas emissions in 2020, compared to the
                                                                                                                                                                                                  ­reference year 2015.
                                                                                             40% reduction in greenhouse gas emissions in all                                                                                                                                       7.2
                            40% reduction in greenhouse gas emissions by end of 2021         ALDI ­companies by end of 2021, compared to the reference                                 2021                                                                                         7.3
                                                                                                                                                                                                  The focus was on increasing efficiency. In the                                    13.3
                                                                                             year 2015.
                                                                                                                                                                                                  next step, further efficiency measures will be
                                                                                                                                                                                                  planned and implemented with an increased
                                                                                                                                                                                                  focus on green power/greening.
  CLIMATE & ENVIRONMENT

                                                                                                                                                                                                  Project ongoing. 777 of the stores equipped
                            Installation of photovoltaic systems in stores
                                                                                             Increasing the ratio of ALDI stores equipped with photovoltaic
                                                                                             systems through continuous expansion.                                                      ∞         with photovoltaic systems; +34% compared to
                                                                                                                                                                                                                                                                                    7.2
                                                                                                                                                                                                                                                                                    9.4
                                                                                                                                                                                                  the previous year.

                                                                                                                                                                                                  Goal partially achieved. LED lighting technology
                                                                                             Introduction of LED lighting in all new ALDI stores (interior                                        has been installed at new stores in all countries                                 8.4
                            LED lighting in all new stores by end of 2019                                                                                                                                                                                                           9.4
                                                                                             and outdoor lighting) by end of 2019.                                                                since 2016. We are continuing the conversion
                                                                                                                                                                                                  progress for outdoor lighting.

                                                                                             Review of conversion of existing ALDI stores in the portfolio                                                                                                                          8.4
                            LED lighting in existing stores                                                                                                                                       Goal achieved.                                                                    9.4
                                                                                             to LED lighting.

                                                                                                                                                                                                  Project ongoing. In Belgium, Denmark and
                                                                                                                                                                                                  Germany, the changeover has already been
                            LED lighting in distribution centres
                                                                                             Review of conversion of ALDI distribution centres to
                                                                                             LED lighting .                                                                             ∞         completed. In France, the Netherlands, Poland
                                                                                                                                                                                                                                                                                    8.4
                                                                                                                                                                                                                                                                                    9.4
                                                                                                                                                                                                  and Spain, the switch to LED in distribution
                                                                                                                                                                                                  centres is planned or being implemented.

                            ALDI Nord encourages strategic suppliers, who are                Encourage our suppliers who represent at least 75% of
                            ­responsible for 75% of supply chain emissions, to set           Scope 3 Category 1 emissions to set their own Science Based                               2024       New goal.
                             ­science-based reduction targets                                Targets by 2024.

                                                                                                                                                                 Process Key
                                                                                                                                                                     New       In Progress     Goal achieved   Ongoing
11   INTERIM REPORT 2020

     TABL E OF C ONTENTS     FO R E W O RD     H I GH LI GH TS     C R PRO G R A MME     H U MA N R IG H TS     L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N      ANTI-C O R RU PTIO N     APPE ND IX

                                                            HUMAN RIGHTS                                                                                                    PRINCIPLE 1
                                   For us, responsibility does not start in our stores. We are committed to                                                                      SUPPORTING
                             greater sustainability even in the cultivation of resources such as palm oil or cocoa.                                                             HUMAN RIGHTS
                                   We are working intensively to permanently improve working conditions
                                                       at our suppliers’ production sites.

                                                                                                                                                                            PRINCIPLE 2
                                                                                                                                                                               EXCLUSION OF
                                                                                                                                                                            HUMAN RIGHTS ABUSES
12   INTERIM REPORT 2020

     TABL E OF C ONTENTS          FO R E W O RD          H I GH LI GH TS     C R PRO G R A MME       H U MA N R IG H TS       L A BO U R R IG H TS      E NV IRO NME NTAL PROTE CTIO N       ANTI-C O R RU PTIO N        APPE ND IX

     POLICY STATEMENT                                                                                                 HUMAN RIGHTS
     AND INTERNATIONAL                                                                                                DUE DILIGENCE IN
     FRAMEWORKS                                                                                                       OUR SUPPLY CHAINS                                       AUDITING WORKING CONDITIONS
                                                                                                                                                                              ON SITE
     As an international trading company with                   for Economic Co-operation and Development             We are aware that the production of goods along         To ensure compliance with human rights require-
     extensive global supply chains, we see it as               (OECD). The values and norms contained in             complex supply chains comes with risks. We              ments in our supply chains, we audit the working
     our responsibility to respect human rights and             these agreements are also reflected in other          therefore continuously identify human rights risks      conditions of our producers on site. Since 2019,
     prevent human rights abuses. With our Human                standards and regulations of ALDI Nord, includ-       and take action to mitigate negative impacts in our     we have carried out inspections known as ALDI
     Rights Policy Statement at ALDI Nord, we                   ing our Corporate Responsibility (CR) Policy,         supply chains. We achieve this via a range of           Producer Assessments (APAs) in our high-risk
     have been committed to upholding the ‘United               which has been in force for several years, as         practices, including continuous hotspot analyses,       supply chains in cooperation with external service
     Nations Guiding Principles on Business and                 well as the ‘Additional Agreement on Social           moni­toring, research and dialogue with stake­          providers. In the reporting year, we conducted
     Human Rights’ (UNGP) since 2018.                           Standards: Commitment to humane and fair              holders. In addition, we continuously carry out         APAs in our supply chains for fruit and vegetables
                                                                working conditions in our supply chains’. These       assessments to identify potential risks in our          such as pineapples, bananas or citrus fruits. At
     Our experience shows that it is time to take the           provide ALDI employees and our business part-         ­supply chains. In 2020, we started to regularly        the end of 2020, we developed an approach that
     next step and seek legal regulation regarding              ners with a binding framework for action. In the       conduct cross-resource-group risk assessments          links our supplier evaluation (CRSE) (see ‘Labour
     corporate human rights due diligence. That is              reporting year, we also published new guidelines       related to human rights and environmental aspects      rights’) with the APAs. Since the beginning of 2021,
     why we are in favour of a European regulation on           on dealing with forced and child labour. With          in our supply chains. The aim of these analyses        around 55 audits have been carried out in the
     supply chain responsibility. In September 2020,            these guidelines, we reiterate that all forms          is to make risks comparable with each other,           pineapple and banana supply chains in Africa
     we published a position paper on the topic. In             of servitude or slavery, forced or compulsory          which allows us to identify which product groups,      and Latin America; these were completed at the
     our view, a law of this nature is an important             labour, serfdom, human trafficking, involuntary        resources, production countries and cross-cutting      end of May 2021. We will continue to pursue the
     part of an international solution to create fair           labour or child labour are unacceptable in our         issues we need to address with high priority due       approach of linking the two auditing methods
     competitive conditions and drive change.                   business and along our supply chains. For Inter-       to their risks and impacts. We also conduct            in 2022, expanding them to include avocado and
                                                                national Women’s Day 2021, we also sent a clear        Human Rights Impact Assessments (HRIAs) for            citrus products.
     In 2008, we committed to complying with the                signal to reduce discrimination and promote            the selected high-priority product groups or
     amfori BSCI Code of Conduct (CoC) by joining               equality by signing the United Nations’ ‘Women’s       resources to gain a deeper insight into the supply     We also regularly assess the working conditions
     the ‘amfori BSCI’ (Business Social Compliance              Empowerment Principles’. As part of this, we           chains. Furthermore, HRIAs allow us to engage          at our suppliers’ production facilities in high-risk
     Initiative). Its guidelines and our policy state-          are committed to equal pay for work of equal           with stakeholders and derive effective measures. If    countries in the non-food segment through com-
     ment are based on numerous international                   value, and to gender equality – both along             we identify specific human rights violations in our    prehensive social audits and certifications carried
     agreements, including the core conventions of              the global supply chains and within our group          supply chains, we can respond immediately and          out by external service providers, as well as with
     the ‘International Labour Organization’ (ILO),             of companies.                                          take corrective action. In 2021, we will conduct       our own inspections of production facilities (ALDI
     the ‘Universal Declaration of Human Rights of                                                                     a total of three HRIAs on human rights risks in risk   Social Assessments – ASAs). On site, we enter
     the United Nations’ (UN), the ‘UN Convention                                                                      supply chains. We aim to publish the initial results   into an exchange with stakeholders and those
     on the Rights of the Child’, the ‘UN Convention                                                                   and the resulting measures on our websites by the      potentially affected in order to better identify and
     on the Elimination of All Forms of Discrimi-                                                                      end of 2021. We aim to conduct up to 12 HRIAs – at     prevent possible human rights violations at an
     nation against Women’ and the ‘Guidelines for                                                                     least one assessment for each high-risk supply         early stage. In the event of serious violations of
     Multi­national Enterprises’ of the Organisation                                                                   chain – and publish the results by the end of 2025.    our requirements, a contractually defined pro-
13   INTERIM REPORT 2020

     TABL E OF C ONTENTS          FO R E W O RD        H I GH LI GH TS       C R PRO G R A MME        H U MA N R IG H TS       L A BO U R R IG H TS      E NV IRO NME NTAL PROTE CTIO N      ANTI-C O R RU PTIO N      APPE ND IX

                                                                                                                                                                               CONTINUOUS IMPROVEMENT
                                                              CERTIFICATION STANDARDS FOR THE                                                                                  AND TRANSPARENCY
                                                              BUYING OF HIGH-RISK RESOURCES
     cess comes into effect. Possible consequences            In future, we will focus in particular on the high-      Our cooperation with a non-governmental organi­         Implementing due diligence on human rights is
     range from written warnings to termination of the        risk resources identified in the relevant countries      sation (NGO) from Bangladesh in the AFA Project         a continuous development process. We therefore
     business relationship. In the year under review,         of origin. We will achieve this by implementing          came to an end in April 2021 (for more on the pro­      constantly analyse our Corporate Responsibility
     we performed 307 ASAs in nine countries, half of         targeted measures within the framework of inter-         ject, see the Sustainability Report 2019). We are       (CR) strategies, as well as our processes and
     them in China (50 per cent). Due to the COVID-           national responsible sourcing strategies. Numer-         currently developing a follow-up programme that         tools. Beyond that, we are currently planning
     19 pandemic, we conducted about two-thirds of            ous steps have already been taken to reduce              combines on-site training and workplace activi-         online training sessions for our suppliers on
     the ASAs remotely for the first time this year to        human rights risks in our food and non-food sup-         ties. Plans include a childcare facility in the com-    human rights policies and procedures at ALDI
     protect workers on site. Staff from the CR depart-       ply chains. These include the use of established         munity, which can also be used by parents from          Nord. Our progress, measures and goals are
     ments in Bangladesh and Hong Kong conducted              auditing and certification standards in the buying       factories that do not produce for ALDI, extending       disclosed transparently within the scope of our
     the audits via video conferencing, while local ser-      process and the qualification of production facil-       responsibility beyond our own supply chains.            sustainability reporting and on our websites.
     vice providers carried out the on-site checks. At        ities for apparel textiles in the high-risk country
     59 of the production facilities audited, there were      Bangladesh within the scope of the ALDI Factory          In addition to our own internal checks, we also
     critical deficiencies in areas such as occupational      Advancement (AFA) Project. During the reporting          want our customers and NGOs to be able to trace
     health and safety. Such deficiencies are often the       period, we worked with several production facili-        the origin of our textiles and shoes. The publica-
     result of structural challenges in the production        ties and business partners to further develop the        tion of our main production facilities, including
     countries. We also work to address these kinds           AFA Project. The aim is to make factories inde-          their addresses and the approximate number
     of findings through multi-stakeholder initiatives        pendent of external AFA Project trainer support.         of employees, is a necessary first step towards
     such as the ‘German Partnership for Sustainable          So far, these facilitators have helped local workers     ensuring the traceability of our products all
     ­Textiles’ (Bündnis für nachhaltige Textilien).          and managers independently address workplace             along the supply chain and complying with the
      When problems are identified, we endeavour to           issues and find their own sustainable solutions.         ‘Transparency Pledge’ formulated by an alliance
      develop solutions together with suppliers and           Selected employees and managers have now                 of nine human rights groups and trade unions.
      ­producers to improve working conditions along          assumed trainer roles at the production ­facilities.     Since 2020, we have also been publishing all our
       our ­supply chains, for example. In the case           As a result of the COVID-19 pandemic, the pro-           main production facilities on the ‘Open Apparel
       of repeated v­ iolations or lack of progress, we ­     duction facilities had to temporarily stop their         ­Registry’ platform.
     usually block the production facility in question        activities, and the project was suspended for four
     from receiving new orders.                               months from April. We also replaced the face-to-
                                                              face events with online training and sensitised
                                                              the production facilities with information material
                                                              on how to deal with the coronavirus. The focus
                                                              is on the occupational health and safety guide-
                                                              lines for reopening the production facilities after
                                                              ­closure and the COVID-19-related safety guide-
                                                               lines for daily operation of the factory.
14   INTERIM REPORT 2020

     TABL E OF C ONTENTS     FO R E W O RD     H I GH LI GH TS     C R PRO G R A MME     H U MA N R IG H TS     L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N       ANTI-C O R RU PTIO N     APPE ND IX

                                                           LABOUR RIGHTS                                                                                                    PRINCIPLE 3
                                                                                                                                                                                SAFEGUARDING
                                 Around 79,000 ALDI employees make a decisive contribution to our success.                                                                  FREEDOM OF ASSOCIATION
                                         We offer them secure employment, attractive conditions and
                                   long-term development prospects. We also take responsibility along our
                                           supply chains and stand up for fair working conditions.

                                                                                                                                                                            PRINCIPLE 4
                                                                                                                                                                            ABOLITION OF ALL FORMS
                                                                                                                                                                              OF FORCED LABOUR

                                                                                                                                                                            PRINCIPLE 5
                                                                                                                                                                                  ABOLITION
                                                                                                                                                                               OF CHILD LABOUR

                                                                                                                                                                            PRINCIPLE 6
                                                                                                                                                                                  AVOIDANCE
                                                                                                                                                                              OF DISCRIMINATION
15   INTERIM REPORT 2020

     TABL E OF C ONTENTS          FO R E W O RD        H I GH LI GH TS      C R PRO G R A MME        H U MA N R IG H TS       L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N        ANTI-C O R RU PTIO N         APPE ND IX

     SOCIAL RESPONSIBILITY
     IN THE SUPPLY CHAINS                                                                                                                                                    BY 2027: SUPPLIER ASSESSMENTS
                                                                                                                                                                             FOR ALL HIGH-RISK RESOURCES
     For us, responsibility does not begin in our stores,     by carrying out our own inspections of produc-          overview of all memberships and commitments            To assess the social standards of our suppliers,
     nor does it end there. We are working to improve         tion sites (ALDI Social Assessments – ASAs) and         can be found under ‘Stakeholders & networks’ in        we review their ability to select suitable produc-
     the sustainability of our supply chains. We aim          implementing comprehensive social audits                the Sustainability Report 2019.                        tion sites and continuously improve their labour
     to create better working conditions and enable           and certifications with the support of external                                                                and social standards as part of our Corporate
     fair cooperation between retailers, suppliers            ­service providers.                                     In the future, we plan to develop concepts for         Responsibility Supplier Evaluation (CRSE).
     and upstream industries. As a retailer, we can                                                                   pilot projects that improve access to grievance
     influence certain aspects more strongly through          In addition, we require suppliers to continuously       mechanisms in relevant supply chains, taking           The CRSE assessment process was implemented
     our business activities, making them particularly        improve the working and social conditions at their      into account the ‘United Nations Guiding Prin-         for the footwear product group at the beginning of
     relevant. Such aspects include health and safety,        production sites or those of producers they com-        ciples on Business and Human Rights’ (UNGP).           2020, followed by DIY and household goods from
     freedom of association, pay and working hours,           mission. All production sites contracted by our         Garment factories in Bangladesh where goods            mid-2021. In 2020, we also started a pilot project
     as well as working against discrimination, child         suppliers that are located in high-risk countries       are produced for ALDI Nord are also included in        for the fish and seafood supply chain, particularly
     labour and forced labour.                                according to the amfori classification must provide     the complaints mechanism of the ‘Accord on Fire        tuna. Furthermore, we critically reviewed our
                                                              evidence of their social standards in the form          and Building Safety in Bangladesh’. We believe         international clothing textile supplier pool for ALDI
     That is why we make clear demands with regard            of a valid amfori BSCI audit, SA8000 certification      that the accord is and will remain a critical tool     Nord in 2020 with the aim of consolidating the pool
     to working conditions. We require our suppliers          or a comparable valid social audit such as the          for continuously improving the safety of workers       of suppliers and terminating business relation-
     to comply with the ‘amfori BSCI’ (Business Social        ‘Sedex Members Ethical Trade Audit’ (SMETA).            in the textile industry in Bangladesh, also in its     ships with suppliers who have repeatedly received
     Compliance Initiative). We monitor and evaluate          Since 2020, we have also accepted social audits         future form as the ‘Ready-Made Garments (RMG)          negative ratings. In the coming years, we will
     compliance through on-site inspections and audits        from the ‘Fair Wear Foundation’ (FWF).                  Sustainability Council (RSC)’.                         continue our comprehensive CR assessment of
     by independent inspectors. In 2020, ALDI CR-­                                                                                                                           suppliers and production sites in combination with
     Support Asia Ltd. in Hong Kong reviewed approxi-                                                                 Furthermore, we are involved in the ‘Living Wage’      strategic meetings. CRSEs for all high-risk supply
     mately 7,000 audit reports from external auditors.       OUR COMMITMENT IN THE TEXTILE                           initiative within the Partnership for Sustainable      chains are expected to be implemented by 2027.
     We expect all suppliers to rectify any deficits as       INDUSTRY                                                Textiles. As part of this, we reviewed our pur-
     quickly as possible in accordance with agreed cor-                                                               chasing practices in 2019 and 2020 using the           In the long term, we plan to reinforce these mea-
     rective action plans. We have introduced our own         Alongside external audits, we also carry out ALDI       ‘Purchasing Practices Self Assessment’ (PPSA).         sures by developing company-wide strategies for
     audits, the ALDI Producer Assessments (APAs),            Social Assessments (ASAs) in the textile industry       All ALDI countries and ALDI CR Support Asia Ltd.       ethically responsible purchasing (ethical sourcing).
     for our food supply chains (see the section entitled     and other measures as part of the ALDI Factory          in Hong Kong took part in this analysis. An action     The aim is to integrate other Corporate Responsi-
     ‘Human rights’). In the coming years, we plan to         Advancement Project (AFA – see the section              plan was drawn up and implemented on the basis         bility (CR) criteria in addition to certifications into
     extend these assessments to all high-risk supply         entitled ‘Human rights’). We also address the           of these findings. In 2021, we will continue this      our purchasing decisions. For example, consid­
     chains and to continuously increase the number of        multifaceted challenges in the industry by work-        analysis, expanding the focus on our suppliers         er­ation should be paid to how suppliers monitor
     these audits. We also regularly assess the working       ing closely with other businesses, governments,         and production sites through purchasing prac-          working conditions on site and whether they pro-
     conditions at our suppliers’ production facilities       NGOs and trade unions, and by actively engaging         tices assessments (PPAs).                              mote special programmes that provide additional
     in high-risk countries in the non-food segment           in industry and multi-stakeholder initiatives. An                                                              support to local workers and their families.
16   INTERIM REPORT 2020

      TABL E OF C ONTENTS                        FO R E W O RD                    H I GH LI GH TS      C R PRO G R A MME       H U MA N R IG H TS       L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N       ANTI-C O R RU PTIO N       APPE ND IX

                                                                                                                                                EMPLOYEE APPRECIATION
                                                                                                                                                AT ALDI NORD
      CERTIFICATIONS AND MEMBERSHIPS
      From producers of fruit and vegetables, as                                         As a member of the German Initiative on Sus-           The over 79,000 ALDI employees have always             Freedom of association is comprehensively
      well as flowers and plants, we require a valid                                     tainable Cocoa, we have been supporting the            been one of the pillars of success for the ALDI        safeguarded at the locations of ALDI Nord. In
      ‘GLOBALG.A.P.’ certification according to the                                      ‘PRO-PLANTEURS’ project, which improves the            companies. The HR principles and the employer          the ALDI Nord countries, dialogue with employ-
      Integrated Farm Assurance Standard (IFA) in                                        working and living conditions of cocoa farmers         brand build on this foundation with a holistic         ees takes place either via works councils or
      combination with a social assessment such                                          in Côte d’Ivoire, since 2015. We will continue to      approach encompassing all areas of HR (see             directly with the respective trade unions (see
      as ‘GRASP’ (GLOBALG.A.P Risk Assessment on                                         support PRO-PLANTEURS in the second project            Sustainability Report 2019). Due to the chal-          Sustainability Report 2015).
      Social Practice) or an equal or higher social                                      phase from 2020 to 2025. In 2020, we became            lenges surrounding the COVID-19 pandemic, the
      standard. At the end of 2020, the share of                                         the first discount retailer to join the Tony’s         focus of HR work was primarily on digitalisation
      ­producer companies with corresponding                                             Chocolonely ‘Open Chain’ initiative, which works       in 2020, with an emphasis on digital collabora-        DIVERSITY AND EMPLOYEE RETENTION
       ­evidence was almost 100 per cent for all ALDI                                    to protect human rights in chocolate production.       tion, processes, training, staff dialogue and the
        companies. In 2017, we began purchasing                                          Together, we are pursuing the mission to change        introduction of digital media. Further developing      People from all over the world work in the nine
        (organic) ‘­Fairtrade’ and ‘Rainforest Alliance’                                 the prevailing standards in the cocoa industry by      the way leadership is viewed in times of digital       European countries in which the ALDI compa-
        certified bananas in line with our international                                 improving working conditions along supply              collaboration was also on the agenda.                  nies operate. This diversity is a part of ALDI
        CR requirements.* Bananas with organic and                                       chains and making the sourcing of cocoa beans                                                                 Nord. It enriches our working relationships and
        ­Rainforest Alliance certification (without Fair-                                more transparent. Since spring 2021, the choco-        ORGANISATION AT ALDI NORD                              reflects the diversity of our customers. All ALDI
         trade) are only traded at ALDI Poland. Since                                    late has been available at all stores in Germany                                                              employees should have the same opportunities,
         2019, similar rules have applied to the purchase                                in three flavours under the Choceur brand.             Responsibility for HR is organised locally,            regardless of gender, age, religious affiliation or
         of pineapples throughout the group, requiring                                   The product will also appear internationally in        enabling a location-specific approach to provide       world view, sexual identity, origin or physical
         at least Fairtrade or ‘SCS Sustainably Grown’                                   ALDI countries in 2021, partly as a special-buy        the best possible support for regional issues.         impairment. The ALDI companies reject all
         ­certification. As part of our International Pur-                               product and in the standard product ranges.            The mission statement, the HR standards and            forms of discrimination. Our values are also set
          chasing Policy for Flowers and Plants, only                                                                                           the ‘real traders’ leadership principles form the      out in the ALDI Nord CR Policy. In 2020, women
          ­certified sustainable flowers and plants have                                 In the case of herbal teas and fruit infusions,        common core of our HR work. Since 2019, we             accounted for around 67 per cent of the total
           been sold by ALDI companies since 2020.                                       around 51 per cent of the own-brand products           have been investing in expanding and strength-         workforce (2019: 65 per cent). The proportion of
                                                                                         across all ALDI companies were sustainably             ening the HR teams at the ALDI companies. For          female employees in management positions was
                                                                                         certified at the end of 2020 (UEBT/UTZ, EU             example, the position of HR Business Partner           34 per cent in the reporting year (2019: 32 per
                                                                                         organic logo, Fairtrade or UTZ/Rainforest              was created at a large number of the regional          cent), and women manage about half of our
                                                                                         ­Alliance Certified seal). As a result, we have        companies to act as ‘change agents’ for imple-         stores. We see this as confirmation of our philo­
                                                                                          exceeded our target of increasing the share           menting the common HR principles. The Busi-            sophy of placing a clear focus on individual
                                                                                          of certified sustainable resources in our own-        ness Partners focus on employees and ensure            ­performance when filling management posi-
     *I n the Sustainability Report 2019, we stated that sustainably certified           brand herbal tea and fruit infusion products          that high HR standards are maintained. We con-          tions. By signing the United Nations’ ‘Women’s
       bananas had already been sourced for all ALDI Nord countries since 2017.           to 40 per cent by the end of 2020.                    tinued this development in 2020.                        Empowerment Principles’ in March 2021, we
       However, in 2017 this only applied to the ALDI companies in Belgium,
       Germany and the Netherlands.                                                                                                                                                                     publicly reaffirmed our commitment to greater
17   INTERIM REPORT 2020

     TABL E OF C ONTENTS        FO R E W O RD       H I GH LI GH TS      C R PRO G R A MME        H U MA N R IG H TS       L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N     ANTI-C O R RU PTIO N     APPE ND IX

     gender equality in our group of companies and         and ­service. We also set up extensive protective       the employees – to better adapt to customers’
     along our international supply chains.                measures for employees and customers in                 needs. Despite the challenges of the COVID-19
                                                           areas where direct customer contact is neces-           pandemic, the training programmes were
     ALDI Nord aims to provide long-term employ-           sary. These measures guaranteed working                 extended to more staff groups in 2020, as they
     ment relationships with fair pay and fair employ-     operations and food supplies at all times across        were transferred to digital learning formats. The
     ment conditions. Most employment ­contracts           all ALDI Nord countries. ALDI Nord was thus             online programmes range from digital language
     offered by the ALDI companies are permanent           able to fulfil its responsibility as a responsible      courses to extensive project management train-
     (almost 79 per cent in 2020). In c­ omparison to      employer and food supplier even during the              ing. The plan to establish the ALDI Academy
     the rest of the retail sector, ALDI Nord has          pandemic.                                               in other countries could not be implemented in
     always benefited from above-­average employee                                                                 2020 due to the pandemic. However, further
     loyalty. Regardless of their gender, all ALDI                                                                 training programmes are already and will con-
     employees are remunerated with fair pay in            CANDIDATE MANAGEMENT                                    tinue to be available in the other countries.
     accordance with their performance.
                                                           ALDI Nord hired additional workers in 2020 to
                                                           ensure the supply of goods to the population            GRIEVANCE SYSTEMS
     OCCUPATIONAL HEALTH                                   during the pandemic. We continue to aim to
     AND SAFETY                                            support staff growth and provide candidates             By introducing grievance systems, we are living
                                                           with a quick and easy access point to ALDI Nord.        up to our commitment as an employer to offer
     Taking responsibility for the well-being of           Onboarding programmes, such as the week-                equal opportunities for all and to prevent dis-
     employees is part of the ethos of the ALDI com-       long ALDI POWER DAYS for new ALDI Einkauf               crimination. At ALDI Netherlands, employees
     panies. We focus on occupational health and           employees, were held fully online in the context        can confidentially report discrimination, bully-
     safety measures, preventive health measures,          of the COVID-19 pandemic.                               ing, intimidation or other undesirable behaviour
     fair pay and employment contract conditions,                                                                  to an advisor. In Spain, a new grievance system
     and equal opportunities for all employees.                                                                    (whistleblowing line) has been active since July
     These measures have the added benefit of func-        PROFESSIONAL DEVELOPMENT                                2019, in addition to other methods for reporting
     tioning as engagement and motivational tools                                                                  discrimination issues. Via this system, employ-
     for employees.                                        Systematic training and development are key             ees can access a protocol on prevention and
                                                           elements to ensure the continued success of             management of abuse in the workplace. In 2020,
     In 2020, we too were particularly challenged          ALDI Nord. The ALDI Academy was founded in              ALDI Poland, ALDI Spain, ALDI Netherlands,
     by the COVID-19 pandemic. The ALDI Nord               2019 to establish a range of continuing educa-          ALDI Portugal and ALDI Denmark followed ALDI
     group of companies reacted early to the require-      tion programmes in Germany. Among other                 Nord Germany and ALDI France in introducing
     ments arising from the global pandemic, taking        things, we continue to provide leadership coach-        grievance systems for reporting discrimination
     responsibility for the health of our employees        ing and training on feedback culture, as well as        cases.
     and customers. As early as spring 2020, we            programmes to promote situational leadership
     ­provided technical support for home working          and active employee participation. These train-
      where possible, particularly in administration       ing courses help managers – and through them,
18   INTERIM REPORT 2020

     TABL E OF C ONTENTS     FO R E W O RD     H I GH LI GH TS     C R PRO G R A MME     H U MA N R IG H TS     L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N      ANTI-C O R RU PTIO N     APPE ND IX

                                          ENVIRONMENTAL PROTECTION
                                                                                                                                                                            PRINCIPLE 7
                                                                                                                                                                              PREVENTIVE
                              Saving energy and conserving resources is our aim in our stores, in logistics and                                                        ENVIRONMENTAL PROTECTION
                             at our administrative locations. Relevant climate targets are embedded throughout
                                 the group of companies. We are also committed to promoting environmental
                                        awareness, from sustainable packaging to avoiding food waste.

                                                                                                                                                                            PRINCIPLE 8
                                                                                                                                                                       INITIATIVES FOR GREATER
                                                                                                                                                                    ACCOUNTABILITY AWARENESS FOR
                                                                                                                                                                          THE ENVIRONMENT

                                                                                                                                                                            PRINCIPLE 9
                                                                                                                                                                   DEVELOPMENT AND DISSEMINATION
                                                                                                                                                                        OF ENVIRONMENTALLY
                                                                                                                                                                       FRIENDLY TECHNOLOGIES
19   INTERIM REPORT 2020

     TABL E OF C ONTENTS         FO R E W O RD        H I GH LI GH TS       C R PRO G R A MME         H U MA N R IG H TS       L A BO U R R IG H TS     E NV IRO NME NTAL PROTE CTIO N       ANTI-C O R RU PTIO N        APPE ND IX

                                                             JOINING THE                                                                                                      ENVIRONMENTAL
     OUR COMMITMENT TO                                       SCIENCE BASED TARGETS                                     CLIMATE PROTECTION                                     RESPONSIBILITY IN
     CLIMATE PROTECTION                                      INITIATIVE                                                IN THE SUPPLY CHAIN                                    BUILDINGS

     Climate protection is one of the greatest societal      In July 2020, ALDI Nord became one of the first           In addition to the emissions we produce ourselves,     It is in our genes as a discounter to focus on
     challenges of our time. That is why we place a          discount retailers to join the ‘Science Based             we also consider emissions in the upstream and         ­efficient use of resources. By adopting modern
     particular focus on reducing our energy consump-        ­Targets initiative’ (SBTi). By joining, we commit to     downstream value chain. These Scope 3 emis-             efficiency management systems, we are contri­
     tion and CO2 emissions.                                  setting binding and scientifically verified targets      sions, as they are known, account for up to 95 per      buting to the future viability of ALDI Nord.
                                                              to reduce our CO2 emissions over the next two            cent of total emissions in the retail sector.
      In 2018, we published our current climate target:       years. These targets should be in line with the          We are in close dialogue with our most import-
      we undertake to reduce our greenhouse gas emis-         1.5-degree target of the Paris Agreement, taking         ant partners and suppliers in order to reduce          LIGHTING
      sions throughout ALDI Nord by 40 per cent by the        the entire value chain into account. We are there-       these CO2 emissions. Strategic suppliers – who
      end of 2021 compared with our 2015 levels. This         fore currently working on the following measures:        are responsible for 75 per cent of emissions in        Lighting the retail space accounts for around
      target applies to all CO2 emissions that we cause         development and validation of science-based           the supply chain – are also required to set sci-       one-quarter of a store’s electricity consumption.
     in the course of our business activities (Scope 1           targets (SBTs) for climate protection across the      ence-based targets (SBTs) by the end of 2024.          To keep electricity consumption as low as possi­
     and Scope 2 emissions). As things stand, we                 entire ALDI Nord value chain (Scope 1, 2 and 3        They have already been offered free webinars on        ble, we have been installing LED lighting tech-
     expect to reach our target by the end of 2021. With         CO2 emissions)                                        the requirements for operational climate account-      nology at new stores in all countries since 2016.
     our Climate Protection Policy, we demonstrate              evelopment of a forecast for Scope 1 and
                                                               d                                                       ing and the definition of SBTs to support them.        In Germany, we also completed the conversion of
     the importance of climate protection across all           Scope 2 emissions (own business-related CO2             The training sessions were carried out with our        outdoor lighting to insect-friendly LEDs in 2020; in
     ALDI companies. We plan to report on our prog-             emissions)                                             cooperation partner ‘Climate Partner’. ALDI Nord       other countries, the conversion is still under way.
     ress to date, as well as on new climate targets, in       development of a range of suitable measures            continuously reviews the status of implementation      The exact measures and advantages of LED light-
     an updated version of the International Climate            to achieve the reduction target                        and the progress of climate commitment among           ing can be found in the Sustainability Report 2017.
     ­Protection Policy in early 2022 (see also ‘Joining                                                               the suppliers.
      the Science Based Targets initiative’).                In addition, we are continuously working on fur-                                                                 At our distribution centres, we will be able to save
                                                             ther measures and strategies to reduce our CO2                                                                   a total of up to 3,000 tonnes of CO2 emissions per
     We also calculate our business-related CO2 foot-        emissions. In our updated International Climate                                                                  year by switching to LEDs. Belgium and Denmark
     print annually, which breaks down our greenhouse        Change Policy, we will provide information on the                                                                have already switched to LED lighting in recent
     gas emissions by emission source. It is prepared        measures planned for SBTs as part of our new                                                                     years. Since 2020, only LED lamps have been used
     in accordance with the internationally recognised       climate strategy in 2022.                                                                                        for interior lighting in Germany. The conversion
     Greenhouse Gas (GHG) Protocol standard.                                                                                                                                  to LED is also planned or being implemented at
                                                                                                                                                                              our distribution centres in France, the Nether-
                                                                                                                                                                              lands, Poland and Spain. In some cases, outdoor
                                                                                                                                                                              lighting at the central warehouses has also been
                                                                                                                                                                              converted to LED, and demand-responsive lighting
                                                                                                                                                                              – i.e. light sources that are switched on by motion
                                                                                                                                                                              detectors – has been introduced.
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