2013 REPORT SUSTAINABILITY
1 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
2013 in brief INTRODUCTION:
STRATEGY
New strategy and operational model that strenghten sustainability issues.
320,000 new club members strengthening Åhléns’ position. Creation of new branding platform and communication strategy is being developed.
p. 6
Sustainability issues were integrated into Åhléns’ operations in several ways during the year, with the support of a new strategy, organization and operational model. We are working to continuously improve our sustain ability work, particularly within our focus areas: the offer, production, operation and social responsibility.
EMPLOYEES
New organization with clearer descriptions of responsibilities for all HQ employees.
83% of all the facilities in high-risk countries have been reviewed. Work on environ mental issues has been initiated in the supply chain.
Strategy and development
s. 6
In dialogue with our customers
s. 9
Committed employees
s. 12
Several steps toward improved product range
s. 16
Environmental focus in the supply chain
s. 23
Systems for efficient operation
s. 27
Increased focus on cooperation
s. 31
More Bra val (Good Choice) products added, primarily through the inclusion of more FSClabelled materials. Better Cotton – part of the purchasing strategy.
p. 23
About us s. 4 s. 5
OFFER
PRODUCTION
s. 3
Our value chain
p. 9
p. 12
CONTENTS From the CEO
CUSTOMER DIALOGUE
COOPERATION
During the Christmas shopping period, Åhléns sold keys that raised SEK 700,000 for City Missions in Sweden. New collaboration with Fretex in Norway initiated.
p. 31
GRI Index s. 33 2 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
p. 16 OPERATION
New system for monitoring energy usage. Environment, accounting and financial follow-ups are expected to improve with the procurement of waste-management services.
p. 27
Contact
From the CEO INTRODUCTION:
The driving force for Åhléns’ opera tions derives from a commitment to and interest in people. We want to make a positive difference in the daily lives of our customers, proceeding from the lodestars of “improve, simplify and brighten”. The basis is an inspiring and carefully selected high-quality product range that is rightly priced. But we must also, to an ever greater extent, live up to customer expectations of acting respons ibly toward people and the environment. Our shared global challenges in terms of the climate, water and limited supply of raw materials, are changing the game rules for our entire industry. The long-term perspective is well established in the soul and culture of our company. Åhléns has been in existence for more than a hundred years and, naturally, we aim to continue to grow for at least just as long. In early 2013, we adopted the new business strategy, Åhléns På väg, through which the sustainability perspective was given a salient role. During the year, we conducted extensive work to streamline our organization’s operational model and are now better equipped for the future.
I am immensely proud of the efforts of Åhléns’ employees in this area. It is worth repeating that: It all depends on people – strategy and structure will not go far without their commitment and expertise. I have great confidence in the abilities of our employees, as well as in sustainable, valuedriven management. At Åhléns, we have the advantage of having a large, loyal customer base. During the year, the Åhléns Club grew by an additional 320,000 customers and currently has a full 1.9 million members! We know, through dialogue with the customer club and other external surveys, that there is a great confidence in Åhléns in terms of corporate responsibility and sustainability. This is an acknowledgement that we are proud of, but which also obliges us to continue developing and delivering results. Our sustainability strategy encompasses the entire value chain, with objectives and activities divided into four areas: the offer, production, operation and social responsibility. During the year, we took steps toward the set objectives in all of these areas, such as: • Our committed sustainability ambassadors have helped to increase knowledge about Bra val (Good choice) among employees and customers. This is an urgent matter, since
With this sustainability report, we wish to provide an honest and up-todate description of our sustainability work, and also to welcome continued dialogue. We value your opinions and thoughts. Please write to us through sustainability@ahlens.se.
we consider Bra val to be a vital part of our sustainability communication. • The work to increase sustainability in cotton production continues through our membership in the BCI. • We clarified our supplier requirements in regard to the environment and social responsibility. The challenge ahead is to gain improved control further along the supply chain, particularly in terms of environmental impact. • Work continued on enhancing energy efficiency in our stores and department stores in connection with remodeling work and improved waste management. • We want to find ways to improve resource management and recycling of textiles jointly with our customers and partners. One step in this direction is our developed cooperation with City Missions in Sweden and a similar initiative with the Norwegian organization, Fretex. There remains both challenges and work to be done, but we are on our way!
Gregg Mowins, CEO, Åhléns
3 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
2013 SEK 4.8 billion in sales
About us INTRODUCTION:
3,382 employees Approximately 80 million visitors 1.9 million Club members 77 department stores in Sweden 32 interior-design stores in Norway
Åhléns was founded in 1899 in Insjön, Sweden. Today, we have one of the Nordic region’s most renowned brands with more than 100 stores in Sweden and Norway. We offer a wide range of carefully selected and affordable products in seven business areas: women’s fashion, beauty, children, men’s fashion, media, home and food. Our mission is to simplify, improve and brighten the lives of our customers on a daily basis. Since 2010, Åhléns AB, together with Kicks and Lagerhaus, has been a part of the Axstores retail Group, which in turn is part of the family company Axel Johnson AB and is owned by Antonia Ax:son Johnson and her family. Gregg Mowins is the Managing Director of Åhléns and Thomas Axén is the Chairman of the Board.
4 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
Åhléns endeavors to generate value and assume thorough responsibility for its impact on people and the environment, from product development and manufacture to sales and management of products whose useful lives have expired. This requires actively working with many different sustainability issues through dialogue with our stakeholders.
Our value chain INTRODUCTION:
Åhléns offers an expansive range encompassing tens of thousands of products. The products are manufactured by suppliers in various regions of the world, primarily Asia and Europe. Many of Åhléns’ private labelled products are purchased through our four production offices in Asia and shipped to Sweden. The products are sold by employees in our department stores and stores to customers in Sweden and Norway. The following are some notable sustainability issues from design to recycling.
DESIGN & PRODUCT DEVELOPMENT
Supply of raw materials
Efficient logistics
Usage of water and chemicals
Delivery quality
Sustainability require ments on raw materials and ingredients
Product range and product development Resource efficiency
Climate and environmental impact
PRODUCTION
Safety Supplier relationships
RAW MATERIALS
Choices of materials
Occupational health and safety and human rights Usage of water, energy and chemicals
Quality and life-span of products
DEPARTMENT STORES & SALES
Product quality, complaints management Product and customer information
Customer relationships TRANSPOR TATION
Employee commitment
REUSE, RECYCLING & WASTE
Management of used products USAGE
Recycling of materials
Marketing Energy consumption Waste management
In dialogue and cooperation with our stakeholders:
SHAREHOLDERS
SUPPLIERS
EMPLOYEES
CUSTOMERS
5 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
NONPROFIT ORGANISATIONS & BUSINESS PARTNERS
Strategy & development INTRODUCTION:
Based on Åhléns’ new strategy, Åhléns På Väg, where sustainability is one of five main strategies, we have created a new operational model with new, up-to-date processes, decision forums, KPIs and descriptions of responsibilities. The new strategy provides a new platform for product quality and sustainability, thus enabling us to work with these issues in a more systematic and integrated manner. OUR NEW STRATEGY Customers and people are key to Åhléns På väg. We aim to develop our offer, accessibility, culture and sustainability work by continuously thinking customer-oriented. The sustainability strategy comprises four parts: Sustainable Offer, Sustainable Production, Sustainable Operation and Social Responsibility. The strategy has strong coherence with the shareholders’ sustainability strategy, thus facilitating followup. Please read more in the summary of facts
– I am very proud of everything that we have achieved in 2013, including all the work performed by our sustainability ambassadors in department stores and our start-up as a member of the Better Cotton Initiative. SUSTAINABLE OFFER
SUSTAINABLE OPERATION
SUSTAINABLE PRODUCTION
SOCIAL RESPONSIBILITY
on the following page. Each area has objectives, activities and initiatives required for achieving the target. We have identified a series of improvement areas within each part of the sustainability strategy. For example, we wish to improve the traceability of products, enable energy reductions, improve suppliers’ environmental performance and involve customers in our future endeavors.
– However, I am most satisfied that our new Åhléns På väg strategy has given sustainability a distinct place in the company, which was also reinforced by our new work processes and operational model, where sustainability is an integral component. – A vital area ahead is to develop and improve Bra val – both in terms of content and communication to customers. At our current pace, despite the increase in the share of Bra val, we will not achieve our target of 10% by 2015. – Much remains to be done within the area of sustainability, such as efforts involving animal welfare and traceability. At the same time, our ambition is to contribute to the development of sustainable consumption, particularly by involving our customers. One way could be to rent out clothing. Consequently, we are currently looking into the possibility of a profitable business model for the leasing of clothing. Anita Falkenek, Sustainability Manager
6 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
ES SE S C PR O
S & IE S LIT LE IBI RO NS O SP RE
SUSTAINABLE CORPORATE GOVERNANCE
AN RG O
EM T ST OR SY PP SU
IS AT IO
N
MANAGEMENT SYSTEM
New operational model STAKEHOLDERS PROVIDE GUIDANCE In anticipation of the establishment of our new sustainability strategy, we conducted a minor stakeholder dialogue with ten individuals, all of whom are well informed about sustainability issues. They represented an NGO, government agencies, industry organizations, university and suppliers. In addition, 32 union representatives shared their opinions of Åhléns’ sustainability efforts. The results were in coherence with the specific issues considered to be most important for Åhléns to work with. The stakeholders believe that control of the supply chain, in terms of both working conditions and environmental impact, is the highest priority. They were also in complete agreement that our second most important task is to change consumer behavior and to develop Bra val. Other issues that were considered to be urgent were producer responsibility and the development of new business models. We are aware that the results of a stakeholder dialogue with so few respondents may be misleading, but we consider the results to be highly valuable, since these individuals have
good insight into how the retail trade works with sustainability issues. OPINIONS FROM EXPERTS In order to gain further inspiration and guidance in connection with the creation of our strategy, five renowned sustainability consultants were tasked with providing opinions on Åhléns’ sustainability efforts. Like the stakeholders, most of them considered supply-chain issues to be important. It was very clear that these sustainability professionals wished to see more ambitious goals, through which Åhléns could be the department store that creates sustainable lifestyles together with customers; and recommended that Åhléns seize leadership in the development of sustainable consumption and make sustainability desirable. An Åhléns 2.0. Partnership with other players, similar to the Better Cotton Initiative, is considered a key success factor. Consistent themes include more sustainable products and business models. Proposals concerning local production, leasing, reuse and how to find solutions for textile
recycling are topics that were mentioned. All consultants emphasized the importance of communication in order to involve and activate employees and customers. They also took up the challenging issue concerning the retail trade and overconsumption. With all this input, we are convinced that the new strategy has the capacity to achieve many of the issues that the stakeholders and sustain ability professionals have pointed to. NEW OPERATIONAL MODEL To streamline Åhléns’ internal work and generate synergies between business areas, a new operational model, ÅSOM (Åhléns Strategic Operating Model), was developed during the past year. The operational model comprises five parts: processes, organization, management systems, system support and responsibilities and roles; refer to diagram. When the new purchasing processes came into full effect in March 2014, product quality and sustainability were integrated into all processes. The management system also includes sustainability KPIs at all organizational levels.
7 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
The strategy of our owner, Axel Johnson, for sustainable enterprise comprises four focus areas: Sustainable offer, Sustainable production, Good employer and Resourceefficient operations. Corporate governance is a key feature. Seven items have been adopted to ensure that all Group companies conduct systematic and goal-oriented sustainability efforts. The target for 2015 is that all companies must: 1. Have strategies and measurable targets for their sustainability work integrated into the business plan. 2. Have one person responsible for sustainability issues or who will report directly to the CEO. 3. Report sustainability KPIs on a quarterly basis. 4. Annually update the risk analysis that identifies the main social and environmentrelated risks. 5. Evaluate the sustainability perspective in the acquisition of new companies. 6. Ensure that adopted international conventions pertaining to the environment, human rights and labor law are respected by suppliers. 7. Clearly communicate sustainability work.
90 out of 100 in employeesatisfaction index 2013
Outcome and objectives The table specifies goals and key data for sustainability issues that are key to Åhléns.
Key figures
2011
2012
2013
Objective
Percentage of sustainable goods
3,4 %
4,4 %
4,91 %
10 % 2015
(percentage of sales measured in SEK)
Energy consumption in department stores
-12 %
-15 %
-15 %
60 %
75 %
83 %
100 % 2015
87
90
90
Not set
(percentage change from 2009, measured by kWh/m2)
Percentage of audited factories
-20% to 2014, compared with 2009
(located in high-risk countries that produce private labeled products)
Employee Satisfaction Index, ESI (index, where the maximum is 100)
Sickness leave (percentage of working hours)
–
5,97 %
5,75 %
5,32 % to 2014
DECISION FORUM AND ORGANISATION Åhléns’ company management has overall responsibility for Åhléns’ product-quality and sustainability work. In terms of purchasingrelated issues, there is already a Steering Group for Sustainable Purchasing, which has been renamed the Sustainable Purchasing Council. The function of the group continues to be to update and decide on new purchasing criteria, as well as adjustments of Bra val. The council also determines product-quality specifications. Since the summer, the Åhléns organization comprises seven business areas and seven matrix functions. As a matrix function, the Sustain ability Department is to support the business areas in continuously improving the product range’s sustainability aspects and product quality. The Sustainability Department will be represented in each business area at roundtable meetings, where decisions are made in each product category. The Sustainability Department comprises four employees and, since autumn 2013, has included the Sustainability Manager of the Åhléns Management Group, and reports to the CEO. Every manager has the responsibility to manage
8 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
relevant sustainability issues within their sphere of responsibility, with the support of the Sustainability Department. At department stores, the Store Manager has the overall responsibility. The primary task of the sustainability ambassadors at each department store is to stimulate sales of Bra val and to inspire their colleagues to undertake active sustainability work. GOVERNING DOCUMENTS Within the framework of the operational model, there are several new governing documents, which are all based on Åhléns På Väg. On an annual basis, each matrix function and business area updates a three-year business plan, which includes sustainability and product quality. In addition, Axstores’ shared policies and guidelines are already available for ensuring responsible business practice – for example, Axstores’ environmental policy and shared purchasing requirements pertaining to the environment, quality and social responsibility. During 2013, the General Agreement and the Sustainability Buying Criteria were revised and tightened in several areas. A new code of business-ethics was also drafted and will be implemented during 2014.
In dialogue with our customers INTRODUCTION:
We engage in active dialogue with our customers aimed at demonstrating our added values, identifying expect ations and creating a basis for contin ued advancement and improvement. Our most important communications channels are the day-to-day encoun ters in department stores and the Åhléns Club, with its nearly two million members. MANY LOYAL CUSTOMERS Every year, about 80 million customers visit Åhléns department stores and stores. We have many loyal customers who frequently shop at Åhléns. The membership of the Åhléns Club increased during 2013 to just over 1.9 million, representing a net increase of a full 320,000 individuals, which exceeded expectations.
We communicate with members in several ways: through Åhléns’ magazine, e-mail, the website and text messages. Additional channels for active dialogue include Facebook and our Customer Service. We also have a club panel with about 35,000 members, whom we regularly ask questions about our product range, communications, purchasing habits and values. The aim is to increase digital communication, and to involve and engage customers to a higher degree. A prerequisite for this is that we have contact information in the form of telephone numbers and e-mail addresses. In 2013, we had the mobile-phone numbers to 57% of the club customers, an increase of 52% compared with 2012. We regularly conduct various customer surveys on issues such as product range and quality. In 2013, three customer panels were conducted to receive input about new departments at the Stockholm City department store. During 2014, a customer-experience survey will be arranged to enable us to systematically and 9 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
1,9 million Members in the Åhléns Club
continuously monitor the customers’ level of satisfaction with Åhléns. The survey provides the basis for the monitoring of KPIs over time. The survey and KPIs will help us to identify our weaknesses and strengths, and to enable our continuous development in order to better meet customers’ needs and behaviors. INTEREST IN SUSTAINABILITY In November 2012, we conducted an extensive customer survey about our sustainability work. The survey showed that sustainability is very important to our customers – the average result was 6.1 on a 7-grade scale. More than half of the respondents stated that they considered sustainability when shopping at Åhléns. At the same time, most of the customers had very little information about Åhléns’ sustainability work and what Bra val represents, and many requested further information. Based on the survey, we took steps in 2013 to develop our communication concerning sustainability, and gradually began to integrate Bra val and sustainability into our communication efforts. External surveys confirm that consumer interest in sustainable products and conscious consump-
tion is on the rise. According to a 2013 Swedish Trade Federation report on responsible enterprise, seven out of ten Swedes consider environmental, sustainability and social responsibility issues to be important when they choose where and what to buy. A GfK survey on sustainable fashion that is based on actual purchase of clothing and shoes from various chain stores indicates that the percentage of organic garments has increased generally. For Åhléns’ part, the report confirms, among other, that Bra val has had a breakthrough. MORE BRA VAL IN OUR COMMUNICATION We are also working to better highlight our Bra val range and to increasingly integrate Bra val into advertising campaigns and other marketing communication. In 2013, we began to emphasize Bra val products in our magazines, catalogues and brochures, for which we received a highly positive response. In Norway, a special Bra val campaign was implemented during the autumn, with expanded store material, advertisements and campaign prices on all Bra val products. Both turnover and sales of Bra val products increased in comparison with the preceding weeks.
10 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
ÅHLÉNS AT THE TOP AMONG GREEN BRANDS
In the 2013 consumer survey, Sveriges Grönaste Varumärken (Sweden’s Greenest Brands) Åhléns was ranked second in the fashion-industry category, with a grade of 3.8 on a 5-point scale. This is one position better than in the preceding survey in 2011, when Åhléns was ranked third, with a grade of 3.5. In the Sustainable Brand Index 2014, Åhléns achieved fourth place in the industry category of Clothing and Beauty. On the list as a whole, Åhléns was ranked 62nd, in comparison with 74th in 2013. The study was based on interviews with consumers who judge how well they consider the company is working with environmental and social responsibilities.
Customer service Our customer service is a key channel for identifying the opinions of customers. During 2013, customer-service employees answered 28,000 calls and 29,000 e-mails. Most of these encounters concerned club offers and membership issues, but questions about products, their contents and sustainability issues are continuously increasing.
Since 2012, each department store has a trained sustainability ambassador tasked with informing and supporting other personnel, and who is available to respond to questions from customers. There remains considerable potential to increase information to customers about Åhléns’ sustainable product range, and about our work on corporate social responsibility and sustainability in general. Meanwhile, sustainability issues are competing with other key messages in advertising and marketing communications. In most cases, sustainability is an added value that is of critical significance after the customers’ quality and price expectations have been met. In the future, we aim to develop additional forms of dialogue about sustainability with our customers, such as in the form of theme nights and other events in department stores.
FAIR MARKETING All advertising and marketing from Åhléns must be accurate and fulfil legislative and industry norms concerning ethical guidelines. We control our messages and claims to ensure that all product information is correct. We strive to protect the customer’s integrity and therefore avoid limited segmentation or niched messages in marketing. CUSTOMER REACTIONS In connection with the dispatch of the Christmas catalogue, complaints were received about one of the images. Several consumers reacted negatively to a product image illustrating a gingerbread man made of beads. Naturally, Åhléns had no intentions of causing offence with the image. We decided to remove the page from the catalogue.
11 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
Committed employees INTRODUCTION:
Committed employees are the key to realizing Åhléns’ customer offer and enabling a successful company. During 2013, we implemented wide spread improvement work with the aim of creating a well-functioning organization with distinct roles and a more efficient work method. We continued to focus on value-driven management and have also launched more proactive diversity initiatives. A VALUE-DRIVEN ORGANISATION A dynamic and value-driven organization is an important prerequisite for successfully adapting and modernizing Åhléns in pace with the times. Our objectives are an efficient organization and a corporate culture in which every employee, by assuming responsibility and taking independent initiatives, optimally contributes to customer satisfaction and profitability. CLEARER ROLES AND WORK METHODS During 2013, extensive work was undertaken to modernize the Åhléns organization and review
processes and work methods. The aim was to create a streamlined organization that manages increasing demands for efficient work methods and increased profitability. In concrete terms, this entails a change of the new organization from a function-based to a matrix-based structure, with a focus on the product route, from initial conception via purchasing and logistics to department store, which also entails clearer overall responsibility for the respective individuals responsible for the category. Some fifty employees, mainly at the head office, were thus given different roles and job assignments. As a result of the restructuring work, new uniform descriptions of responsibilities were created for all roles, which highlight each individual’s assignment and responsibilities. This also creates conditions for improved career and development opportunities for our employees. The improvement work was characterized by a fast pace and involved many highly motivated and committed employees, primarily at the head office. The load was heavier than usual, particularly for the managers at the head office, which was also confirmed in their responses to the employee survey.
12 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
SUSTAINABLE MANAGEMENT Our managers have a critical role to develop and change the company in the right direction. For the past few years at Åhléns, our focus has explicitly been on sustainable management that is founded on distinct values and confidence in the abilities of each employee. This requires managers with solid self-awareness and personal maturity, who can create the conditions for other employees to achieve their established objectives. In a bid to strengthen and provide resources to executives at Åhléns, a development program in value-driven management was implemented in autumn 2012, which was geared toward all executives at the company. The program continued to be implemented during 2013. My own leadership, commitment, feedback and team development are areas of focus in the training program, which encompasses four training days over an 11-month period. The program is also based on exchanging experiences and the participants coaching each other. PROUD, COMMITTED EMPLOYEES An annual employee survey is conducted among all employees every January. A full 91% respond-
ed to the survey in 2014 (93% in 2013) and the results reflected a very high commitment. The Employee Satisfaction Index (ESI) was 90, compared with the average of 84 for the industry. The Net Promoter Score (NPS), another measure of the extent to which employees are active ambassadors for Åhléns, increased and far exceeds the average for the industry. The employee survey indicates excellent awareness of our values and that many feel committed to these values at work. Better feedback and follow-ups are still called for, although these areas trended positively compared with the preceding year’s survey. As part of our work on individual development and follow-ups, annual development talks are held between each employee and his/her immediate superior. CONFIDENCE IN SUSTAINABILITY In this year’s employee survey, 77% of the employees rated Åhléns’ sustainability work as either good or excellent. This is an increase from the preceding year. A total of 56% of the employ ees indicated that they read the company’s sustainability report. The ambition is to increase awareness of our sustainability work so that it reaches all employees.
Results of employee survey
(the survey has been conducted annually since 2012, in the month of January)
Employee satisfaction
2012
2013
2014
Industry average
87
90
90
84
72
74
75
72
(ESI, Employee Satisfaction Index)
Leadership index (LSI, Leadership Satisfaction Index)
13 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
CONTRIBUTION FOR BETTER HEALTH In 2013, Åhléns initiated a proactive health and fitness effort. The main aim is to contribute to increased physical activity, commitment and motivation among our employees, which is also meant to result in less sickness absence. The fitness initiative, known as “the Wave,” includes a higher contribution paid for fitness activities and a range of exercise and inspirational activities. TARGETS FOR INCREASED DIVERSITY Åhléns wants to contribute to a society in which each individual is considered an asset and treated equally. As a company, we also wish to reflect our customers and the society in which we operate. We believe that diversity strengthens Åhléns’ competitiveness and business. The composition of Åhléns’ employees largely matches the company’s customer target groups. About 90% of our employees are women, the average age of whom is 35. We strive to achieve increased equality at all levels and actively look for candidates of the underrepresented gender when recruiting.
Diversity is included as a prioritized area at Åhléns. This is also in line with the proactive focus of our owner, Axel Johnson. In early 2014, Åhléns formulated new targets for the composition of the workforce in respect of international background, age and gender; refer to table on page 15. In order to achieve the targets, we will implement measures such as reviewing the selection process in connection with recruitment, the wording of advertisements and the contents of management training programs. We will also delve deeper into the issue of diversity in the employee survey. One example is to ask how included they feel as employees. ATTRACTIVE WORKPLACE For Åhléns to progress, we must ensure that our employees’ potential is being harnessed, while also successfully recruiting new talents. Our goal is for Åhléns to be attractive for those wishing to work in the retail sector. One method of gauging this is that Åhléns ranks high among popular employers on the lists of students and young academics. In Universeum’s 2013 list, Åhléns was ranked 36th by economics students.
ÅHLÉNS’ LEADERSHIP PROFILE
Åhléns’ leadership is hallmarked by managers with solid self-awareness and personal maturity, thus enabling employees to achieve the established goals. OUR MANAGERS HAVE: • The will to lead • An enterprising approach • Energy and commitment • Trust OUR MANAGERS WANT TO: • Provide feedback and conduct follow-ups • Communicate • Be honest and transparent • Create effective teams
Sickness leave Sickness leave as a percentage of working hours
2012
2013
Target for 2014
5,97 %
5,75 %
5,32 %
Sickness leave declined somewhat from 2012 to 2013, but not to a sufficient degree to achieve the targets. Long-term sickness leave accounts for 3.13% of the total sickness leave, (the target for 2013 was 2.77%) and short-term sickness leave for 2.62% (the target for 2013 was 2.55%).
14 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
23%
of all employees in department stores in Sweden have an international background Maria wants to manage change Maria Andersson is Department Head at Åhléns City in Gothenburg. Her role is to lead, coach and develop the employees – and natur ally, to drive sales through this effort. – I love my job and there is not a single day when I wake up and think, ‘Oh no, I have to work,’ but rather, the opposite. The greatest challenge is to have sufficient time! To be able to follow how others develop while continuing to develop my own leadership is what I consider to be the greatest aspect of my job. Åhléns’ focus on sustainable and value-driven leadership is indicative of a modern approach and provides me, as a manager, with the conditions and scope for leading change. It is noticeable in Maria’s department, Fragrances and Cosmetics, that customer interest in the environment and sustainability has increased, particularly through the questions that are asked regarding products: what they contain, how they are manufactured and how they are packaged.
– Customers are more aware and demand that we are able to answer their questions about sustainability. We are in continuous comm unication with purchasers and suppliers to be able to answer customer questions. Knowing that the entire company is working thoroughly with sustainability generates confidence. At the department store in Gothenburg, considerable effort is spent on continuing to develop sustainability work and on involving customers in it. – We are working with training and education, and several recycling projects. For example, we are cooperating with the Gothenburg City Mission on the recycling of jeans and our Household Department has a recurring campaign where customers receive a discount on a new frying pan upon handing in their old one. The old frying pans are subsequently recycled by the supplier.
Diversity status and targets Head office
Department stores & stores
Production offices
Number of employees
265
3,060
57
Women/men as a percentage
89 / 11
92 / 8**
64 / 36
Percentage with an international background*
14 %
23 %**
20 %
Percentage of permanent employees
89 %
71 %
100 %
*Percentage who answered “Yes” to the following question in the employee survey: Were both of your parents born in a country other than the one you are working in? **Solely Åhléns Sweden. Of our total of 3,382 employees, 3,008 work in Sweden, 317 in Norway and 57 at our production office in Asia. A total of 27% of our employees in Sweden and Norway are fulltime employees, while 73% are part-time employees. There are 11 women and three men among Åhléns’ senior executives (10 individuals in management team and five Business Area Managers individuals, of which one is also a part of management team). Two of our targets for increasing diversity are to increase the percentage of men and the percentage of employees with foreign backgrounds at all levels in the company.
15 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | INTRODUCTION
Several steps toward an improved product range SUSTAINABLE OFFER:
By “Sustainable Offer” we mean both product quality and that the products should have as little negative impact as possible on humans and the envi ronment throughout their lifecycle. We have various tools and methods for systematically working with our sustainable offer. Some vital aspects of this work includes clear purchasing requirements, shared processes, Bra val and the Better Cotton Initiative. IMPROVED PROCESSES During the year, we focused considerably on developing and improving Åhléns’ internal purchasing processes. These are now clearly documented and are a component of our operational model, ÅSOM. The advantages of ÅSOM include the systematic integration of product quality and sustainability into the purchasing process.
BUYING CRITERIA AS A FOUNDATION To be a supplier to Åhléns, the General Agreement must be fulfilled and signed. These terms include statutory requirements on the product and production process, and also specific Åhléns requirements pertaining to function, quality, the environment and ethics. We link welldefined Product Quality Specifications (PQS) to General Agreement. The documents with their appendices pertaining to the purchasing terms, including the PQS for various product groups, have been uploaded to and are available from Axstores’ supplier portal. All suppliers have access to the portal and are informed whenever we make any changes, enabling them to simply keep abreast of, for example, stricter chemicals requirements. Our PQS clarifies the requirements concerning the product’s properties and content, and how they are to be tested to ensure that the product fulfils this quality. The PQS presents, for example, specific materials and substances that may be incorporated. During the year, we revised and formulated many PQS regarding furniture, jewelry and children’s clothing. 16 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
PURCHASING REQUIREMENTS An important aspect of our General Agreement is what we refer to as Sustainability Buying Criteria, our sustainability requirements that are more extensive than those required by law. This document imposes requirements on both proprietary products and external brands. Some new requirements that came into effect in 2013 concerned palm oil and microplastics. We had earlier identified palm oil as a risk, because it reduces biological diversity when rainforests are cut down to create space for palm-oil plantations. Consequently, we cooperated with the Axel Johnson’s Foundation for the Environment and Development to conduct a study on palm oil. The study was an attempt to examine whether Ecosystem Service Analysis may be a tool for companies within the Axel Johnson Group, and the aim was to gain clarity about the extent to which palm oil exists in our products and palm oil’s environmental impact. At Åhléns, palm oil is a commonly used ingredient in block candles made of paraffin and beauty products may comprise up to about 30% palm 17 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
oil. However, it is very difficult to trace most of the palm oil in beauty products, since it is used as a raw material for the chemical derivatives by which products are manufactured. As a result of the study, Åhléns decided to impose requirements on the products with ingredients that purely comprise palm oil. As a minimum, the supplier must have what is known as a Green Palm Certificate, a form of rainforest compensation for the volume that is used in the products (read more about sustainable palm oil at www. rspo.org). Åhléns intends to collaborate with Kicks to further pursue the issue of traceability in derivatives, by inviting the industry to a dialogue on how to trace palm oil. During the year, the Swedish Society for Nature Conservation and WWF proved the negative impact on fish and marine environments caused by microplastics found in peeling products. Consequently, we decided to permit only biodegradable particles in our own peeling products and to recommend that our brand suppliers do the same.
TIGHTENED REQUIREMENTS IN BEAUTY The new cosmetics legislation came into effect in July 2013. To ensure that Åhléns is adhering to the legislation, a comprehensive review of all proprietary cosmetics products was performed by external and internal experts. We suspended sales of our best-selling product, Brun Utan Sol, because it did not fulfil the requirements, which proves that we are taking the new legislation seriously. A new version of Brun Utan Sol was launched in March 2014.
for animal welfare. However, monitoring this is a challenge. For example, the issue of impropriety regarding Angora rabbits was new to us. When we learned that the rabbits on certain farms might have been mistreated, we suspended sales of all Angora products, since we were unable to verify with third parties that the rabbits had not been mistreated. We will be participating in an industry dialogue on how to best ensure the proper welfare on rabbit farms and also of other animals included in our supply chain.
We also have Axstores list of chemicals that must not be included in the beauty products. The list, which is far more extensive than what is required by law, includes for instance allergenic perfume substances and certain preservatives.
IMPROVED CONTROLS It is important for us that our offer exceeds or, at a minimum, meets the customers’ expectations. Consequently, we wish to have information about the products with which customers are dissatisfied. The logging of all customer complaints in our cash-register system provides us with a good overview of specific products that do not meet customers’ expectations. To further improve our products, we have, for example, increased the scope of the tests. If the test results indicate that the products fail to meet our new tightened requirements, sales of the products will be discontinued as a consequence.
REGULATORY SUPERVISION We regards supervisions by authorities to be positive. They are an occasion for our internal systems to be checked and audited by external parties. During the year, we had supervisions of categories such as toys and cosmetics products conducted by the Swedish Consumer Agency and local government agencies. We did not receive any significant adverse comments from the these regulatory supervisions. ANIMAL WELFARE REQUIREMENTS Our General Agreement have for some years included several requirements concerning animal ethics. For example, down may originate solely from slaughtered geese and we only sell furs and rugs that are by-products of meat production. We have also stipulated in our General Agreement that all animals are to be handled in accordance with the EU’s Five Freedoms principle 18 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
Although more meticulous controls are initially resulting in our occasional inability to offer certain products, the quality of the products will ultimately be improved. During the year, sales were suspended for some 15 products, most of which were due to negligence or ignorance of the supplier. For example, we suspended sales of children’s jumpers that did not pass function and metal tests, an armchair and glass jars with defective snap-on lids.
PRODUCT QUALITY TRAINING COURSES In-depth knowledge in the purchasing organization is a vital aspect that enables product quality to be improved. We have conducted workshops and courses on how we can better secure quality at both our head office and our purchasing offices. As an example, we have conducted indepth training on home interiors.
CAFÉS THAT DO GOOD Food is a new business area for Åhléns, which we consider to have the potential to contribute to increased profitability. The idea is that our Café Å Lait should be a place where people can rest for a moment, enjoy something good to eat and drink, and which simultaneously generates added value for Åhléns.
TRACEABILITY – TIMBER REGULATION The EU Timber Regulation came into effect in March 2013 aimed at preventing the import of timber from illegally harvested forests into the European market. To ensure that we are complying with the regulation, we conducted a survey of all the products encompassed by the new legislation. We have tightened the wording in our General Agreement and are creating new procedures to ensure the availability of requisite documents. For every product made of wood or pulp, which is encompassed by the regulation, documents must be available to indicate the type of wood the product comprises, the part of the world in which the forest was cultivated and proof that the forest was legally harvested.
All the ingredients and products that are served at Café Å Lait are very carefully selected. Where possible, they are to be locally produced so as to support local rural life and job opportunities, be healthy and have no unnecessary additives, and to the extent possible, be organically farmed.
Establishing the traceability of a product all the way to its origins requires an extensive change of supply chain procedures and credible documentation. We expect the requirement for traceability to increase, from both customers and government agencies, and will also continue to take steps for increased traceability in other areas.
To achieve this, we engage in continuous dialogue with suppliers about ingredients and additives. One example is Nina’s biscuits, which are baked with real butter. The coffee originates from Bergstands Kaffe – a small Swedish company, which has been working with the environment and corporate social responsibilities in the supply chain for many years. Café Å Lait expects to sell approximately 230,000 cups of coffee per year, which will be both organically grown and Fair Trade labelled as of 2014. Café Å Lait was opened at the Stockholm City store during 2013 and additional cafés will be opened in 2014. At the smaller cafés, cakes and sandwiches will be served on disposable plates made of palm leaves, so that when food waste is being processed, these can be composted or decayed into biogas.
Passion for good food that does good For Jonas Sandström, manager of the Food business area, there is no such thing as “good enough”.
hiring additional employees. The drinks originate from smaller Swedish drink suppliers such as Kulla Must and Kivik.
– Things can always be done better! It is about always being curious and to keep on walking, Jonas explains passionately.
– In 2014, Åhléns will launch a private labelled chocolate. It is produced by Gefle Chokladfabrik, which has proprietary cocoa plantations in the Dominican Republic to ensure good working conditions for those who work at picking the cocoa beans, Jonas reveals.
Jonas believes that partnering with a smaller Swedish company that is able grow together with Café Å Lait is an important added value. For example, Åhléns’ collaboration with the Sänkdalens Glass ice cream operation near Norrköping enabled it to expand its operation, which resulted in additional milk-producing farms switching to organic production and
19 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
– It’s so much more satisfying for me and our staff to work at a café with a purpose; that has one or more of the stories to tell, and we have many, Jonas concludes.
4,9%
DID YOU KNOW THIS ABOUT BRA VAL?
of total sales are Bra val; our target is 10% by the end of 2015
DEVELOPMENT OF BRA VAL In 2013, we decided to add a new Bra val Category: Allergy and Health with the Asthma and Allergy Association’s Swallow label. We regard these perfume-free products without irritants as products that takes extra consideration to people and indirectly, to the environment. This year, we will discuss specific actions to take to further increase sales of Bra val. To date, the trend is yet to meet our expectations and we anticipate difficulties in achieving our target of 10% by December 2015. BRA VAL IN THE KITCHEN The percentage of Bra val sales of kitchen articles increased during the year, in the form of many new cutting boards of different varieties. Cutting boards that are made of FSC-labelled oak and beech from Poland have helped to increase Bra val sales in the Kitchen product area. Most of our office products currently originate from FSC-labelled forests and are thus Bra val. Several binders, A4 boxes and magazine holders began to be manufactured by FSC-labelled wood during the year. The majority of all note pads, exercise books and gift bags are already made of FSC-labelled paper pulp. Some of our hook products are made of recycled aluminum.
Bra val is available in the following six categories:
In many other areas, investments are being made to benefit people and the environment, but which are yet to meet our Bra val criteria. Some of our storage and laundry baskets are made of renewable materials, such as palm leaves, seaweed and corn leaves. Our handmade baskets of date palm are manufactured by women in the Bangladeshi countryside. By using natural and environmentally adapted manufacturing methods, the production helps to improve conditions for women and their families. SUSTAINABLE HOME TEXTILES An increasing number of varieties of towels are made of organic cotton. The Vide, Aqua and Line product ranges are made entirely of organic materials, which means that most of Åhléns’ towels are Bra val. Vide’s beds consist solely of Bra val materials. The percentage of organic products in other kitchen textiles is also continuously rising, with a large portion manufactured with ecofriendly methods by a forward-thinking supplier in India (refer to the 2012 Sustainability Report). Ever more table runners and mats are made of recycled materials, some of PET plastic and others of residual textile rags.
RECYCLED Products that are entirely or mainly produced from recycled materials. The raw materials derive from production by-products or from waste. SOCIAL RESPONSIBILITY Products that are certified as Fair Trade. This means that farmers cultivating the raw materials and their employees are paid a reasonable salary and have a good working conditions. ORGANIC Products where the raw materials or ingredients were cultivated without chemical pesticides or synthetic fertilizer. TENCEL® (LYOCELL) Products comprising at least 50% TENCEL®. Tencel is a textile fiber manufactured from wood cellulose in a closed system with minimal environmental impact.
Bra val (percentage of total sales measured in SEK)
2011
2011
2012
Target 2015
3,4 %
4,4 %
4,91 %
10 %
20 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
ECO-LABELLED Products that are approved by the Nordic Swan Ecolabel, Good Environmental Choice, the EU Ecolabel or FSC. ALLERGY & HEALTH Products that are approved by the Swallow label and thus contain no perfume or irritants.
21% of sales of underwear is from our Bra val product range
ORGANIC CHOICES FOR INFANTS We already have a wide range of baby and children’s clothing, of which many garments are Bra val. However, we were missing clothing for the very tiniest infants. We have now developed Mini in sizes 44–62 as a complement to the existing product range. These new Mini garments are manufactured in China by an experienced supplier, made of organic cotton or recycled polyester and are thus Bra val. The idea is for all of these infant clothes to be versatile and comfortable, with mild colors. The greatest priority for toy manufacturers and Åhléns is that toys are safe. During the year, we added some children’s products that are made of FSC-labelled wood, such as drawing blocks, knot puzzles and height-measuring devices. Some proprietary sandbox toys and a number of role-playing toys from Dantoy are eco-labelled. In 2014, we will be able to broaden the offer of Bra val toys, primarily products for outdoor play activities and babies. WOMEN’S FASHION Within women’s fashion, our Bra val offer has been relatively unchanged since 2012, but the volumes are large, since our take-two offer of
tops for women are entirely organic. There are blouses and stockings made of recycled poly ester, and next year, we will see most of our socks made of organic cotton. Up to 21% of underwear sales currently consist of Bra val, either in the form of organic cotton, Tencel or recycled polyester. Our Wera brand comprises several products made of Tencel. This is labeled as Bra val, since Tencel is made of wood through an ecofriendly closed process. We have increased the availability of some organic brands so that, for example, Knowledge Cotton and Nudie are sold in more department stores. BEAUTY Beauty offers a number of eco-labelled and organic products. A new range of make-up brushes with FSC-labelled wooden handles will be launched in spring 2014. Some brands with distinct sustainability profiles, such as Estelle & Thilde, Une, Origins and Body Shop, have an obvious place at Åhléns and are appreciated by our customers. Sales of the Swedish brand Estelle & Thilde, with products made of organic raw materials, have increased.
21 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
“It really feels rewarding to be a part of positive developments in India” Katarina Olsson, works with the purchasing of home textiles
IMPROVED COTTON Åhléns has been a member of the Better Cotton Initiative (BCI) since January 2013. The BCI is a global organization aimed at changing conventionally cultivated cotton worldwide, reducing the environmental impact and improving working and living conditions for growers and their families. Åhléns’ membership of the BCI will enable contributions towards increased volumes of sustainable cotton in the global market corresponding to our sales of cotton. Through our collaboration with CottonConnect, training has commenced enabling 100 farmers in India to change their cultivation methods. The amount of insecticide is being reduced by at least 40% and water consumption could be halved in certain regions. At the same time, the farmers’ profitability is improving through reduced costs
(more information at www.bettercotton.org and www.cottonconnect.org). We are now driving the demand for better cotton among our suppliers in order to gradually increase the percentage of this material. In 2014, several products within both home and women’s fashion will partly comprise Better-Cotton classified cotton. BETTER RECEIPTS In 2013, all receipt rolls were switched to FSClabelled paper and bisphenols are no longer used in printing. We also took the opportunity to change the reverse side of the receipt roll, which now has information about Bra val. All Åhléns shopping bags are made of FSC-labelled paper pulp and all plastic bags are made of up to 80% recycled plastic.
Visit to Better Cotton farmers Kajsa Ekemar Ericsson and Katarina Olsson work with the purchasing of home textiles at Åhléns. In late autumn, they both visited the Indian state of Gujarat to meet the cotton farmers whom Åhléns supports.
Kajsa and Katarina, who have worked for many years with textiles, gained considerable insights into how cotton cultivation impacts the environment and people, whose livelihoods are derived from this important crop.
– We gained excellent insight into and understanding of the farmers’ efforts. For example, we received information about how they use compost as fertilizer instead of expensive artificial fertilizer. It is particularly important to use chemical pesticides only when they were really needed – this generates major improvements to the environment in comparison with previous practices, explains Katarina.
– It was inspiring to see that the farmers in neighboring villages also wanted to learn about these methods. This is exactly the kind of impact that we want to see, Katarina explains.
The aim of the trip was to learn about Cotton Connects’ work and structure, and about the specific impact of Better Cotton methods on the environment and farmers’ living conditions. – It was fantastic to see this positive development on location with my own eyes. We met such tremendously proud individuals who are highly committed, Kajsa explains.
22 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OFFER
The farmers said that the cotton harvest had increased by 30% and that they were now able to cultivate other crops when cotton was not being cultivated, which they were previously unable to do because of the volume of pesticides. They have been able to improve their overall profitability significantly. Another of the main advantages is the reduction of water usage, which is especially critical in areas of this type with limited access to water. – It really feels rewarding to be a part of positive developments in India, comments Katarina. – Better Cotton is the future, concludes Kajsa.
Environmental focus in the supply chain SUSTAINABLE PRODUCTION:
Ensuring good working conditions, safe workplaces and factories with minimal environmental impact along the supply chain is a challenge in many ways, but an important issue for Åhléns. For several years, we have systematically invested in the training and review of suppliers through the Business Social Compliance Initiative (BSCI). MOST FACTORIES IN CHINA AND INDIA Åhléns’ private labeled products are produced by a vast number of suppliers, primarily in Asia and Europe. In order to influence product development and responsibility for people and the environment, we strive to achieve long-term relationships and close cooperation with suppliers. Through partnerships and independent controls, we work continuously to identify risks and improve environmental and working condi-
tions. We aim to get as close to the production of our goods as possible. The local production offices are a key component of this effort. Åhléns now has four local production offices in Asia: in Hong Kong, Shanghai, New Delhi and Dhaka, with a total of 57 employees. The 57 employees are responsible for day-to-day contact with the suppliers, perform quality control at the factories and research prospective producers. We strive to minimize the number of inter mediaries and limit the total number of suppliers. However, Åhléns’ wide range, which includes a variety of product categories, requires that we have a relatively large supplier base. ANNUAL ASSESSMENT Åhléns conducts an annual assessment of each supplier. Quality, prices, delivery precision, service and responsible production are all taken into consideration and compiled in a report that is sent to the supplier. The assessment forms the basis for a constructive discussion and continued improvement efforts. In 2012, we initiated an effort to better define 23 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE PRODUCTION
Photo: BSCI
Factories by country in 2013 In 2013, Åhléns’ private labels derived from a total of 470 different suppliers. Most of the 895 factories that manufacture our goods are
located in China and India. In comparison with 2012, we reduced the number of suppliers while increasing the number of factories.
China 65 % (587)
Italy 3 % (25)
India 8 % (67)
Portugal 2 % (17)
Sweden 3 % (30)
Turkey 2 % (16)
Taiwan 3 % (30)
Other countries 14 % (125)
Production in high-risk countries: based on sources such as the World Bank, the BSCI has defined specific countries that are considered to be risk countries. BSCI members use this list as the basis for prioritizing supplier controls; visit www.bsci-intl.org for more information.
In 2013, we had production in a total of 19 high-risk countries: China, India, Taiwan, Turkey, Bangladesh, South Korea, Indonesia, Pakistan, Cambodia, Vietnam, Uruguay, Albania, Belarus, Brazil, Moldova, Romania, Serbia, South Africa and Thailand.
Audited factories, objectives and follow-up Our main focus is on monitoring and training the suppliers from whom we make substantial purchases and among whom we foresee a longstanding relationship. We audit factories in high-risk countries, with a purchasing value of at least USD 15,000 per year. In 2013, this
corresponded to 647 facilities, or approximately 70% of the total number of factories that deliver products to us. We also prioritize factories at which the production is related to specific risks to the health and safety of employees, as well as environmental aspects.
Reviderade fabriker, mål & uppföljning Percentage of audited factories
2010
2011
2012
2013
Target 2015
–
60 %
75 %
83 %
100 %
59 %
88 %
86 %
93 %
100 %
(located in high-risk countries, with a purchased value of > USD 15,000)
Percentage of total purchased value (from audited plants in high-risk countries)
our key suppliers and what characterizes a wellfunctioning supplier cooperation, from both Åhléns’ perspective and that of the supplier. The results, which we compiled in 2013, indicated that the combined range of soft values with distinct requirements makes certain relationships function better than others. A long-term approach is a key component to winning confidence and the ability to influence suppliers to invest in important and sometimes costly improvements in their production. We have longstanding relationships with many of Åhlens’ existing suppliers – some for more than 20 years. IMPROVED RISK ASSESSMENT By means of various types of audits, mappings and external reports, we have gradually gained some solid insight into the risks and challenges of our suppliers. Together with our suppliers, these insights serve as a basis for developing the work conducted in prioritized areas. The risks that are identified in the supplier chain pertain in part to unfair working conditions and deficient wages, excessive overtime and deficiencies in terms of insurance, and in part to environmental and safety risks that are frequently linked to the use of chemicals. We have noted particularly serious production risks in the manufacture of products made of wood, metal, glass or ceramics, and of bags and shoes (preparation of leather in tanneries) and the dyeing of textiles (dye works). FOLLOW-UP AND TRAINING We work systematically to audit, train and improve our suppliers based on the BSCI’s Code of Conduct. BSCI audits are performed by accredited independent companies, but Åhléns also performs inspections with its own auditors at minor suppliers in China on the basis of BSCI’s Code of Conduct. BSCI audits are to be performed on all new suppliers in high-risk countries prior to placing orders. We are placing an ever sharper focus on training and support, since the aim is
24 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE PRODUCTION
to enable suppliers to independently drive the work forward to improve the conditions in their factories. The commitment of factory managers is crucial to stable and improved long-term results. REVISED CODE OF CONDUCT The BSCI’s Code of Conduct was revised in 2013. The new, revised code is applicable from 2014, and members and suppliers now have extensive work to be trained on the code and to incorporate it into day-to-day work by means of agreements. Some new sections of the code pertain to, for example, the importance of performing risk assessments and more specifically, that all parties in the supply chain must work to ensure that subsuppliers and their suppliers also assume the equivalent responsibilities in their respective operations. TIGHTENED REQUIREMENTS Under the BSCI system, factories are graded in accordance with three levels through audits: “No deviations from requirements,” “Improvements needed” or “Deviations from requirements.” When deviations are identified, an action plan is jointly created with the supplier. Upon an approved follow-up audit, the supplier is deemed to be approved for three years. We have found, through audits, that some of our suppliers’ improvement efforts are proceeding too slowly. Several factories that were audited had not sufficiently improved their ratings between their first audit the follow-up audit, and some had even received worse ratings in the follow-up audit. There were also cases where cooperation had commenced with suppliers whose factories initially received poor or varied ratings from BSCI audits. We have now tightened our process for suppliers that receive more than 15 critical comments and who do not show improvement between visits. These suppliers will be granted one month to take action, failing which, all new orders will be
suspended until further notice. During the year, we also created a more systematic approval process, with more specific requirements for the assessment of new suppliers. New suppliers must now achieve the level, “improvements needed” or better, in accordance with the BSCI rating, before they may enter into a cooperation agreement with Åhléns. This is an important step in finding the “right” suppliers from the onset and thereby minimizing the risks.
Global invests in sustainable cotton Since 2007, the Indian company, Global Fashion & Accessories has been an important supplier to Åhléns for garments such as blouses, skirts and shawls. Global was audited via BSCI and achieved a good rating, is certified to handle organic cotton and also joined the Better Cotton Initiative in 2013. Åhléns wants to use more Better-Cotton classified cotton and Global’s membership in the BCI is a step in the right direction. Ms. Mehra, Director of Sales at Global, confirms that there is an increased demand among its customers for sustainable cotton. – After joining the BCI, we received more queries and orders of Better-Cotton cotton alongside organic cotton. Some purchasers have also raised their targets specifically concerning the procurement of sustainable cotton.
Global Fashion & Accessories continuously informs its employees about Åhléns’ sustainable purchasing requirements. Employees who handle chemicals also receive special training in safe chemical management. – Sustainability requirements from customers such as Åhléns help to keep us abreast of the different techniques available, and contributes to more meticulous measurement and monitoring of operations. Consequently, we become more efficient and maintain a good pace in our manufacturing. – Water is one of our focal points. The objective ahead is that we further reduce the water consumption of our laundries, reuse wastewater to a greater extent and improve the quality of the water that is ultimately released.
ZERO TOLERANCE Åhléns applies a zero-tolerance policy concerning serious non-compliance with the Code of Conduct. This includes child labor, serious health and safety hazards, changing subsuppliers without our approval or refusal to allow audits. Should such deviations be discovered, new orders to the supplier will be stopped immediately. The supplier is required to rectify the problems within one month and, if the problems recur, Åhléns policy is to completely finalize cooperation. No deviations of the zero-tolerance category were identified in audits performed during the year. However, two young workers aged 11 and 12 years were found among the employees of one of our suppliers in Bangladesh during the year by our merchandiser. In accordance with our guidelines, these children are now attending school, while retaining wages, which are defrayed by the supplier. ENVIRONMENTAL ASPECTS After a few years of focusing on social risks, we are now increasing our environmental efforts in the supply chain. Knowledge of the environmental impact of production is frequently poor in high-risk countries. At the same time, Åhléns’ has a very broad product range that spans a large quantity of materials and manufacturing processes, thus compounding the environ mental issue.
25 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE PRODUCTION
BSCI’S CODE OF CONDUCT
The BSCI’s Code of Conduct is based on the UN declaration of human rights and the International Labor Organization’s conventions on working conditions. The code includes requirements on: • Freedom of association and respect for the right to collective bargaining • No discrimination allowed • Prohibition of child labor • Legal minimum wages and/or the payment of wages pursuant to industry standards • The number of working hours complies with national legislations • No forced labor or disciplinary measures allowed • Workplaces that are safe and healthy • Respect for the environment • The existence of a policy on corporate social responsibility • The existence of a policy on bribery and corruption Read more at www.bsci-intl.org.
To succeed in working with a long-term and strategic approach in this regard, Åhléns is considering becoming a member of a new initiative, the Business Environmental Performance Initiative (BEPI), which will become a sister organization to the BSCI. We completed or initiated the following in 2013: • Mapped tanneries in our production process and formulated new requirements in respect of the environment and occupational health and safety for tanneries, which are to be implemented in 2014 • Completed environmental training courses for some 20 key suppliers in China, with the aim of increasing knowledge of environmental risks, chemicals and safety. • Implemented new procedures for monitoring environmental risks in production, while simultaneously performing BSCI audits with our own staff. The results of these actions will be assessed in 2014 and provide the basis for future measures. We are also a member of the Sweden Textile Water Initiative (STWI) and Sweden Shoe Environmental Initiative (SSEI) – networks devoted to environmental sustainability and water usage in the production phase in the textile and shoe industries. CONTINUED WORK WITH TANNERIES Tanneries and dye works that are frequently located in high-risk countries use chemicalintensive production processes and usually have insufficient control of social and environmental issues. To enable improvement efforts in practice, the level of knowledge has to be increased among suppliers. Consequently, we will be conducting a course on the environment and chemicals in Delhi in 2014, to which we will invite tanneries and other high-risk suppliers.
Results of all audits completed in 2013 SA8000–certified 1 % No deviations from requirements 18 % Improvements needed 18 % Deviations from requirements 56 % ICTI audit 7 %
No deviations 65 % Improvements needed 23 % Deviations12 % In 2013, a total of 238 audits were conducted, of which 130 were performed by our own auditors. Identified deviations mainly concerned unfair working conditions in terms of wages, working hours and insurance coverage, as well as insufficient documentation. SA8000 is an international social-responsibility standard. A SA8000-certified supplier
employs a systematic approach to ensure proper labor conditions. Toy suppliers are audited in accordance with a specific industry standard known as ICTI, International Council of Toy Industries. Most of our toy suppliers that were audited during the year achieved results at the better end of the scale.
26 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE PRODUCTION
Focus on safety in Bangladesh The fire and collapse of the 8-storey Rana Plaza in Bangladesh in April 2013 resulted in the deaths of more than 1,000 textile workers. This tragic and terrible event was a clear reminder to us and others in the industry about specific existing safety hazards and the vulnerability of production workers. Åhléns did not have any goods manufactured at Rana Plaza. To accelerate improvement and increase our knowledge of production particularly in Bangladesh, Åhléns has chosen to join the Accord of Fire and Building Safety in Bangladesh, which was established after the tragedy. Within the framework of the Accord, independent inspections of structural, electrical and fire safety are conducted on more than 1,500 textile factories in the country. Åhléns has production with some ten suppliers of textiles in Bangladesh, which will all be audited.
Systems for efficient operation SUSTAINABLE OPERATION:
Our sustainability work in terms of the operation of department stores, warehouses and transportation fo cuses primarily on energy consump tion, waste management and reducing carbon emissions. We are seeing the potential for more efficient waste management to improve the environ ment, finances and monitoring. LED LIGHTING SAVES ELECTRICITY Accordingly, we are working continuously to reduce electricity consumption in the properties in which we operate. Our target is a 20% reduction by 2014, compared with 2009. In accordance with current measurement methods, we are on the way to achieving this in department stores and at the head office.
By switching to energy-saving LED lighting, the overall energy consumption in our stores and department stores can be reduced by up to 30%. Since 2011, we have been making the continuous transfer to LED lighting through store rebuilding and the opening of new stores. HYDROELECTRICITY Proprietary electricity agreements facilitate work on controlling and monitoring electricity consumption. Åhléns endeavors to sign electricity agreements for the premises in which we operate, and purchases solely hydroelectricity with a guarantee of origin. This is already a reality for 38 of our 77 department stores in Sweden today. However, electricity is often included in leases for department stores located in, for example, shopping malls and shopping centers. In these cases, Åhléns recommends that the property owner uses electricity from renewable sources.
27 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OPERATION
“LED lighting fittings are now the standard for our rebuilding projects or new builds” Thomas Hässledal, responsible for new construction and refurbishment projects at Åhléns
Thomas sees the potential of LED Thomas Hässledal, the person responsible for new construction and store rebuilding at Åhléns, sees several advantages with investing in new energy-saving lighting. – Lighting is an important issue for our industry. It is crucial for creating atmosphere in department stores and for presenting the products in an attractive manner. At the same time, it accounts for a considerable portion of our electricity consumption and operating costs. – LED lighting was previously too expensive and lacked the capacity to provide the best lighting, but the time is ripe. With LED, we also save considerable amounts on maintenance – the light sources have approximately eight years’ guaranteed burning time. In 2013, four new department stores and stores were established, and the department store in Skanstull, Stockholm, was rebuilt.
All of these were fitted with the new lighting. A further three department stores are awaiting their turn in spring 2014. – LED lighting fittings are now the standard for our rebuilding projects or new builds! Åhléns also imposes quality and environmental requirements on property owners and contractors. Notable examples include the environmental classification of properties, good loading docks and well-functioning waste management. – Choices of materials, such as those used in the floors, are also an important issue. These usually entail a balancing of the quality and environmental aspects of materials and maintenance. We keep up to date on industry developments and trends, and follow the pioneers, Thomas concludes.
NEW FOLLOW-UP SYSTEM In 2013, a new follow-up system was procured for measuring the usage of electricity, cooling and heating in department stores and at distribution centers (DC). The system makes it easier to gauge the impact of implemented measures, such as a switch of lighting, and to establish internal targets and compare consumption rates between various department stores. The system will be launched in 2014, starting in the department stores where we have our own electricity agreements. IMPROVED WASTE MANAGEMENT Åhléns wants the waste that arises at warehouse and department stores to be viewed as a resource. The largest volumes comprise corrugated cartonboard, soft plastic and combustible waste. During the year, we took steps towards more
28 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OPERATION
standardized and systematic waste management. Guidelines were created for how to sort the waste at department stores, depending on the size and practical conditions. To minimize the volume of unsorted waste that is incinerated or dumped, items such as single-use hangers should be sorted into a group for hard plastics. The guidelines were presented to department-store managers in autumn 2013, and will be followed up on during 2014. In 2013, the process aimed at centralizing the procurement of waste-management contractors was initiated. We see a potential to improve and streamline waste management in the approximately 30 department stores that currently procure waste-management services independently. Centralized agreements will improve the monitoring of waste volumes and collection frequencies, as well as costs and income.
RECYCLING OF SOFT PLASTIC In 2013, 19 tons of soft plastic were recycled into new plastic products that were used for the manufacture of items such as new Åhléns shopping bags. This was undertaken through our cooperation with PostNord, to whom the plastic from department stores was sent using backhauls. However, this cooperation was discontinued ahead of 2014, in connection with the procurement of a new transportation provider. Soft plastics are now sent using backhauls to Axstores’ distribution center (DC) in Jordbro for further sale to recycling.
-15%
MILJÖFYRTÅRNET IN NORWAY In Norway, the Miljöfyrtårnet certifies many different types of operations, including shopping centers, which entails imposing requirements on such factors as energy consumption, waste and communications. The Åhléns stores that are encompassed by the foundation comply with this certification.
less electricity consumption in department stores in Sweden between 2009 and 2013
Energy consumption in premises (kWh/m2) 2009
2010
2011
2012
2013
Result Target 09–13 09–14
Department stores, Sweden
214
201
189
182
181
-15 %
Distributions center
134
133
128
124
125
-9 %
-20 %
Head office*
155
109
175
108
131*
-15 %
-20 %
*Calculated from the average price per kWh (SEK 0.92 /kWh)
-20 %
LOGISTICS REQUIRES COORDINATION The private labeled products and most of the branded products sold within Beauty are transported via the Jordbro distribution center (DC). Efficient logistics with little climate impact pertains mainly to optimized route planning and high capacity levels throughout the transport chain. This requires proper coordination and thorough cooperation, from purchasing to sales. For example, the number of transports from the Jordbro DC to Stockholm City could be reduced through the improved coordination of deliveries to Åhléns City and to Kicks and other department stores nearby. Improved coordination leads to a higher capacity level in trucks and consequently in fewer transports and less carbon emissions.
29 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OPERATION
SHIPMENT BY SEA AND TRUCK Åhléns’ private labelled products arrive at Axstores’ Jordbro DC outside Stockholm from Asia and Europe. From Asia, shipments are primarily made by sea and, within Europe and the Nordic region, mostly by truck. Goods may only be transported by air in exceptional cases that may pertain to small products that are unsuitable for sea freight, or in the event that accelerated restocking is required for a certain product or product range. This may be necessary, as shipping from Asia normally takes six to eight weeks. In 2013, 0.5% of incoming goods arrived by air, measured as a percentage of the volume of transportation paid for by Åhléns (0.9 in 2012). The target is maximum of 2%. CAPACITY OF TRANSPORTATION The new IT system for goods-flow administration that was installed in 2012 was fully aligned in 2013. The system creates conditions for improved packing of products and better capacity levels in containers and trucks. At the same time, we faced a challenge in the form of an increased percentage of larger and bulkier products, such as furniture. In 2013, the replenishment rate of the incoming container transports was approximately 82–88%, which is somewhat of a decline, compared with 2012. This was partly due to Lagerhaus no longer consolidating the shipment of its goods with Åhléns and Kicks. In 2013, each department store in Sweden received an average of 2.7 deliveries per week, unchanged from 2012. During the year, the alignment of the warehousing system resulted in the improved packing of goods, which reduced the number of pallets and pallet collars that were transported to department stores and thus reduced the environmental impact of the
Mobile phones repaired
INVESTIGATION OF BRAND TRANSPORTS
At Axstores, all discarded mobile phones are sent to Pantaluren, where they are repaired if possible, or sent on to recycling.
transports and improved the working environment. Improved route planning also contributed to fewer kilometers driven. ENVIRONMENTAL REQUIREMENTS Axstores requires its forwarding agents for incoming goods and distribution providers to employ systematic environmental efforts and have ISO14001 certification. Maximum speeds, engine type and the requirement that transportation providers use a program for fuel-efficient driving are examples of other aspects that are taken into consideration in the procurement of distribution providers. In 2012, Axstores reached an agreement with one of its transport companies to acquire a new eco-truck (truck with high environmental performance) for distribution to the Stockholm region. The eco-truck is fuelled by methane diesel, which results in carbon emissions that are up to 70% lower than a standard diesel vehicle. In 2013, this transport supplier chose, at its own initiative, to acquire an additional eco-truck to further contribute to Åhléns’ goals. MONITORING OF CARBON EMISSIONS The tool for calculating carbon emissions from incoming and outgoing goods transportation that were introduced in 2012 was reworked during 2013 when it was demonstrated that the model was insufficiently reliable and robust.
The reworked model indicated that Axstores’ transports from suppliers to department stores via the Jordbro DC gave rise to 7,760 tons of carbon-dioxide, distributed as 5,458 tons for incoming goods to the DC, and 2,302 tons for distribution, including from warehouse to department stores. In relation to transports, this corresponded to 27 grams per ton-kilometer of freighted goods. The model that Axstores developed for the calculation of carbon emissions is based on the Network for Transport and Environment’s (NTM) guidelines for the calculation of the environmental impact of transportation. Due to NTM’s refinement and revision of conversion factors for emissions in 2013, only the values for 2013 are presented. INCREASED BUSINESS TRAVEL BY AIR Åhléns co-workers go on business trips in Scandinavia, Europe and to the countries from which we make purchases. In 2013, carbon emissions increased to 291 tons, compared with 281 tons in 2012, based on the trips that were booked through our travel agency. The emissions from the many train journeys that are taken by hundreds of employees is negligible. Using Google’s Hang Out function, we were able to hold video conferences with, for example, our purchasing offices in Asia, which facilitates opportunities to reduce certain business trips.
During the year, two students from the Linköping University Institute of Technology conducted a study on how brand products are transported to department stores. The aim was to investigate opportunities for improvement by further coordinating logistics. The study indicated great potential for increasing the percentage of crossdocking, entailing that the products already located at each supplier are packed in the right volumes per department store, transported to the DC and driven out the next day without being recollected. This results in fewer deliveries to department stores and reduces the time for goods arrival procedures.
CO2 emissions (tons) from business travel by air 2010
2011
2012
2013
320
302
281
291
30 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SUSTAINABLE OPERATION
A calculation indicated the potential to reduce the environmental impact by up 90%. Naturally, securing high-capacitylevel deliveries at a reasonable overall cost is of critical importance. In 2014, a review will be conducted of various types of agreements which includes these aspects.
SOCIAL RESPONSIBILITY:
More focus on cooperation Many of the sustainability challenges we face can seldom be resolved by single individuals or companies. At Åhléns, we are convinced that in many contexts, it is an advantage to cooper ate with different organizations and other companies, both within and beyond the industries in which we operate. During the year, we partici pated in an industry initiative aimed at recycling textiles. ÅHLÉNS WANTS TO RECYCLE TEXTILES At Åhléns, we, along with other companies in the industry, want to find viable systems in Sweden and the Nordic region through which all used textiles can be reused or recycled into new fibers. It is not sustainable to burn, as we do today,
approximately 70 tons of discarded textiles per year in Sweden. Consequently the Textile for Recycle Initiative (T4RI) was jointly launched in 2012 by Åhléns, Indiska, Lindex, IKEA, KappAhl and H&M. The initiative is managed by the Swedish Trade Federation and was joined by additional companies during 2013. T4RI aims to create systems in Sweden to process all discarded textiles, so that we can close the cycle and use recycled fibers in new products. MORE WITH SWEDEN’S CITY MISSIONS Sweden’s City Missions and Åhléns jointly produced a unique donation certificate in the form of keys sold in department stores for SEK 100 each. A total of 6,915 keys were sold before Christmas. Åhléns decided to round up the amount and, consequently, Åhléns and our customers donated a total of SEK 700,000 to Sweden’s City Missions. The funds were used in their operations for homeless and vulnerable people, for example, at Klaragården in Stockholm, Gatljuset in Gothenburg, Mikaelsgården 31 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SOCIAL RESPONSIBILITY
1800000 was donated to Doctors Without Borders’ work in the Philippines through the initiative, “En tia till” (A tenner more)
in Uppsala and Stadsmissionshälsan in Skåne. Since its launch in 2008, the cooperation with Sweden’s City Missions has encompassed the department stores in all of Sweden’s major cities. Åhléns donates unsold goods to support the City Missions’ operations. The products are then used in their social operations or sold in some of the second-hand stores. We intensified efforts before Christmas and several employees decorated Stockholm City Mission premises on behalf of homeless and vulnerable people, and the company’s Christmas presents to all employees were collectively donated as a gift to the City Mission. COLLABORATION WITH MYRORNA The sphere of our collaboration with Myrorna (a second-hand chain run by the Salvation Army) was expanded. When Åhléns rebuilds a department store, all the store fittings are changed. Since Myrorna has a need for such fixtures, the organization is contacted whenever the refurbishment of a department store is under way. This is a useful solution for both Åhléns and Myrorna. In the autumn, we also tested the placement of special Myrorna collection containers at the head office, through which employees could simply donate their clothes to Myrorna. The collaboration essentially entails that department stores send unsold goods to
Myrorna, which subsequently anonymizes the products for sale in their own stores or uses them in Salvation Army operations. NEW COLLABORATION WITH FRETEX Fretex, a Norwegian sister organization to the Swedish organization Myrorna, collects used clothing and goods for sale, or for use in the Norwegian Salvation Army’s operations. At the end of 2013, Åhléns and Fretex signed an agreement for the purpose of donating unsold goods to the organization. A pilot project with five stores in southern Norway is being launched in 2014. If this turns out well, all our stores in Norway will send unsold goods to Fretex. “EN TIA TILL” TO THE PHILIPPINES In November 2013, Typhoon Haiyan swept through the Philippines, causing enormous destruction that affected 16 million people. Doctors Without Borders was already on location and was able to help many of the injured in the emergency situation. Åhléns initiated the “en tia till” (a tenner more) campaign, whereby customers contributed SEK 10 in connection with purchases. This collection resulted in a total of SEK 1.8 million being donated to Doctors Without Borders’ emergency relief operation in the Philippines.
COLLECTIONS AT CHRISTMAS At Christmas time, many people want to send Christmas cards to their closest ones and, preferably, through Christmas cards that do some good in other ways. During Advent, Åhléns sold Christmas cards for the benefit of the Swedish Childhood Cancer Foundation, the Swedish Cancer Society, the Swedish Federation of People Suffering from Heart and Lung Diseases and UNICEF. Sales of these cards generated a total of SEK 157,000 to these organizations. As we done for many years, Åhléns and our customers continued to support the Swedish Breast Cancer Association’s fight against breast cancer. In 2013, a total of 26,000 ribbons were sold, generating SEK 230,000 for the fund. WWF AND SNF Åhléns is a corporate sponsor of both the WWF and the Swedish Society for Nature Conservation (SNF). In 2013, we collaborated further with SNF, which served as instructors for our introduction course for Sustainability Ambassadors (refer to page 10). This collaboration is of considerable value, since they provide us with greater knowledge for example; of chemicals and palm oil.
32 | ÅHLÉNS SUSTAINABILITY REPORT 2013 | SOCIAL RESPONSIBILITY
EARTH HOUR TRADITION
As in previous years, Åhléns participated in WWF’s global climate manifestation, Earth Hour. All department stores with the possibility to do so, turned off their façade lighting. This year, the “spiral” lighting at Skanstull was also turned off. We encouraged our customers via e-mails to turn off the lights at home and partake of WWF’s message that everyone can contribute – “if I can do it, so can you!” In connection with Earth Hour, Åhléns offered eco-labelled block candles that were appreciated by customers.
GRI Indicator
GLOBAL REPORTING INITIATIVE Åhléns’ prepares is reports in accordance with Global Reporting Initiative (GRI) guidelines. The aim of this 2013 report was to adhere, to the extent possible, to the new version of the GRI guidelines, G4. However, some work remains to be done and data to collect in certain areas, to meet the criteria for full disclosure.
Description
The content of the report reflects the issues that are material for Åhléns, based on the operation’s impact on people and the environment and our stakeholders’ requirements and expectations. These material aspects were identified and prioritized in a dialogue with key individuals at Åhléns and through stakeholder dialogues. The reported data and KPIs pertain to Åhléns AB’s operations
in 2013, unless otherwise indicated. The following is an overview of Åhléns’ disclosures in accordance with the GRI for selected aspects and indicators, with supplementary comments and references to where to find the information in the report.
Comments
Page
Strategy and analysis G4-1
Statement from the CEO
3
Organizational profile G4-3
Name of the organization.
4
G4-4
Primary brands, products and/or services
4
G4-5
Location of the organization’s headquarters
35
G4-6
Number of countries where the organization operates
5, 23-24
G4-7
Nature of ownership and legal form
4
G4-8
Markets served
4
G4-9
Scale of the organization
4
G4-10
Total workforce by employment type, employment contract, region and gender
15
G4-11
Percentage of employees covered by collective bargaining agreements
G4-12
Describe the organization’s supply chain
G4-13
Significant changes during the reporting period
No significant changes.
G4-14
Description of whether and how the precautionary approach or principle is addressed by the organization
Åhléns proceeds from the precautionary principle in purchasing, General Purchasing Terms and Sustainability Buying Criteria.
G4-15
Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or endorses.
22, 25, 26, 31
Memberships of associations and/or national or international advocacy organizations
22, 26, 31
G4-16
All employees in Sweden are covered by collective-bargaining agreements (the Union of Commercial Employees, Unionen & the Union for Professionals). 5, 23-26 16-18
Identified material aspects and boundaries G4-17
Entities included in the organization’s financial statements
G4-18
Description of the process for defining the report content and the aspect boundaries.
Åhléns AB. The data in this report pertains to Åhléns AB unless otherwise stated
33 5, 7, 33
G4-19
List of all the material aspects identified
G4-20
Report of each material aspect’s boundary within the organization
In the Index In the Index
5, 6, 7, 33-34
G4-21
Report of each material aspect’s boundary outside the organization
G4-22
Effect of any restatements of information provided in previous reports, and the reasons for such restatements
G4-23
Significant changes from previous reporting periods
33-34 33-34 30
No significant changes
Stakeholder Engagement G4-24
Stakeholder groups engaged by the organization
5, 7
G4-25
Basis for identification and selection of stakeholders with whom to engage
5, 7
G4-26
Approach to stakeholder engagement
7, 9-11, 13, 23-26
G4-27
Key topics and concerns that have been raised through stakeholder engagement
7, 10, 13, 23-26
G4-28
Reporting period
2013
G4-29
Date of most recent previous report
April 2013. Annual
Report profile
G4-30
Reporting cycle
G4-31
Contact point for questions regarding the report or its contents
35
G4-32
GRI Content Index for “In accordance” – Core
33-34
G4-33
The organization’s policy and current practice with regard to seeking external assurance for the report
This report has not been reviewed by external parties.
Governance G4-34
Governance structure of the organization
Åhléns’ Board of Directors comprises seven individuals (4 men and 3 women). The Chairman of the Board is Thomas Axén, CEO of the Parent Company, Axstores. Two union representatives are included in the Board of Directors.
4, 15
Ethics and integrity G4-56
Organization’s values, principles, standards and norms of behavior
12, 14, 18, 25
33 | ÅHLÉNS HÅLLBARHETSRAPPORT 2013
Indikator
Description
Comments
Sida
Economic Economic performance EC1
Direct economic value
EC3
Coverage of the organization’s defined-benefit-plan obligations
Includes Åhléns AB.
4 4
All Åhléns employees in Sweden are covered by collective-bargaining agreements (with the Union of Commercial Employees, Unionen and the Union for Professionals). Benefits deriving from collective-bargaining agreements include the ITP occupational-pension agreement for salaried employees and the SAF-LO union pension for store employees.
Environmental Energy EN3 EN6
Includes Åhléns AB.
Energy consumption within the organization Reduction of energy consumption
27-29
Emissions EN16 EN19
Includes Åhléns AB.
Energy indirect greenhouse gas emissions (scope 2) Reduction of greenhouse gas emissions
30 Includes Åhléns AB and customer chain.
Total weight of waste by type and disposal method Includes Åhléns AB, supply chain and customer chain.
Extent of impact mitigation of environmental impacts of products and services Includes Åhléns AB.
Significant environmental impact of transporting products, goods and members of workforce
29-30 29-30
Supplier environmental assessment EN 32
16-22 16-22
Transport EN30
28, 31 28, 31
Products and services EN 27
28-30 28-30
Effluents and waste EN23
27-29 29
Includes the supply chain.
Percentage of new suppliers that were screened using environmental criteria
24-26 24-26
Social –labor practices and decent work Occupational health and safety LA6
Includes Åhléns AB.
Type and rates of injury, occupational diseases, lost days and absenteeism. Training and education
LA11 LA12 LA14 LA15
14 14
Includes Åhléns AB.
Percentage of employees receiving regular performance and career development reviews.
13 13
Diversity and equal opportunity
Includes Åhléns AB.
13-14
Composition of governance bodies and breakdown of employees per employee category
Refer to G4-34 above.
15
Supplier assessment of labor practices
Includes the supply chain.
24-26
Percentage of new suppliers that were screened using labor practices criteria
24-26
Significant negative impacts for labor practices in the supply chain and actions taken.
24-26
Social- Human rights HR3 HR5
Non-discrimination
Includes Åhléns AB.
Number of incidents of discrimination and actions taken
No cases have been reported.
Child labor
Includes the supply chain.
Operations and suppliers identified as having significant risk for incidents of child labor
HR11
24-25 24-25
Supplier human rights assessment HR10
13-15
Includes the supply chain.
24-26
Percentage of new suppliers that were screened using human rights criteria
24-26
Significant negative human rights impacts in the supply chain and actions taken
25
Social- Product responsibility Customer health and safety PR1 PR2
Includes Åhléns AB and customer chain.
Percentage of significant product and service categories for which health and safety impacts are assessed for improvement Number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services Product and service labeling
16-22 16-22 18
Åhléns works on the basis of the prevailing legislation and industry norms/agreements in terms of product information and the labelling of products and the product range.
PR4
Number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling
18
PR5
Results of surveys measuring customer satisfaction
9-11
Marketing communications
Includes Åhléns AB.
11
G4-PR6
Sale of banned or disputed products
GR-PR7
Number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications
No cases have been reported.
11
Customer privacy
Includes Åhléns AB.
11
Number of substantiated complaints regarding breaches of customer privacy and losses of customer data
No cases have been reported.
PR8
11, 18
34 | ÅHLÉNS HÅLLBARHETSRAPPORT 2013
FEEL FREE TO CONTACT US! Feel free to ask questions and make comments about our sustainability efforts: sustainability@ahlens.se Anita Falkenek, Sustainability Manager Switchboard tel: +46 (0)8-402 80 00 Åhléns AB, Ringvägen 100, SE-118 90 Stockholm, Sweden
35 | ÅHLÉNS HÅLLBARHETSRAPPORT 2013