3RDSUST AI NABI LI TYREPORT
Gl obal ,r es pons i bl e,ef fi ci ent :
Ki Kconnect st hewor l d
K iK SUSTAINABILIT Y REPORT 2015
About this report
This report is the third sustainability report of KiK Textilien und
employees of KiK Textilien und Non-Food GmbH Germany.
Non-Food GmbH. It describes the activities of the company
Textile production is reported on in the report; however, this
with respect to the sustainable structure of trade activities in
pertains solely to the manufacture and does not take into ac-
2013 and2014 and more current facts and developments from
count any other prior production steps.
2015.
The data was collected based on information from the res-
The third sustainability report was prepared in accordance
pective departments. Information from supply companies
with the guidelines of the German Sustainability Code (DBK
was used as an external source; economic data comes from
- Deutscher Nachhaltigkeitskodex). The 20 criteria formulated
the annual reports of the parent company, the Tengelmann
therein logically summarize the performance indicators from
Group. The climate assessment was created by Tengelmann
the catalogue of the Global Reporting Initiative (GRI). Thus,
Energie GmbH. All statements in this report were approved by
this report focuses more closely on the material issues and
the specialist departments involved.
guarantees the continuity of the report contents despite the
The contents of the report with respect to consistency of con-
change in the reporting framework.
tent, without auditing the primary data, were assessed by an
The primary focus of the report is the company’s management
external expert whose evaluation is also published.
approach to sustainably, controlling the relevant company
The report is published in German and English. The masculi-
segments and the presentation of the measures and activities in the areas of activity pertaining to sustainability. Prior to the report, a materiality analysis was performed which resulted in a concentration on three areas of activity and a focus on the issues of “Supply change and product”, “Resource efficiency and climate protection” and employee-related issues. The boundaries of this report with respect to the procurement of goods and logistics are defined by KiK Textilien und NonFood GmbH, KiK Logistik 1 GmbH incorporated in Bönen and the branches in European countries. The data from the emissions assessment and logistics pertain to KiK Germany with its branches, warehouses and headquarters and to all other European sites. Unless express reference is made to European numbers, all employee-related statements pertain to the
2
ne form is used in the report. This always implies women and men. The editorial deadline for this report was 15 July 2015. The next report is planned for publication in 2017.
■
CONTENT S
KiK Sustainability Report 2015
2
About this report
3
Contents and disclaimer
4 Foreword 6
An overview of KiK
8
Management approach
14
Stakeholder dialogues
18
Supply chain and product
22
Resource efficiency and climate protection
26 Employees 29 Assessment
Imprint KiK Textilien und Non-Food GmbH Siemensstraße 21 59199 Bönen, Germany Publisher: Patrick Zahn, Chairman of the Board Ansgar Lohmann, Head of Corporate Social Responsibility Contact: Company telephone 0044 2383 / 95 41 16 Exclusion of liability: This report contains statements regarding future developments which are based on assumptions. We cannot make any guarantees that these statements will become reality. KiK Textilien und Non-Food GmbH assumes no liability for resulting deviations and potential errors. In the event of contradictions between the German and English versions of the report, the German version applies.
3
K iK SUSTAINABILIT Y REPORT 2015
Dear readers,
For many years, we have been dealing intensively with the
ance. This initiative, which is funded by commercial enterpri-
topic of sustainability and have already achieved a great deal.
ses, non-governmental organisations, federal organisations
We have formulated our sustainability concept and have com-
and trade unions, is based on the belief that an improvement
mitted to sustainable trade activities. This concept forms the
to manufacturing conditions in countries like Bangladesh or
basis for the statements and explanations in this third susta-
Pakistan cannot be brought about by individual companies
inability report. The presentations of the areas of activity are
alone.
introduced first in the respective paragraphs from our sustai-
However, in other areas of activity pertaining to sustainability,
nability concept. These company policies are the overarching
we have developed innovative strategies and measures. With
theme of our report. They guide our actions and hold together
the help of a materiality analysis, which we explain in this re-
our diverse activities and measures. We thus ensure transpa-
port, we have re-evaluated and restructured certain areas. In
rent and comprehensible reporting on how we deal with sus-
addition to the risk reduction measures in textile manufactu-
tainability matters.
ring, we will implement efficiency-increasing measures in par-
During the reporting period, our efforts were focused on
ticular with respect to energy consumption and the utilisation
measures for improving production conditions in the manu-
of transport equipment or resources. Such an approach per-
facturing countries. The accidents in Asian textile factories in
fectly combines the strengths of discount trading, efficiency
particular were proof that a broad approach for the sustaina-
and minimisation with the principles of sustainability. Conser-
ble development of suppliers and industry-wide alliances are
ving resources is ecologically and economically responsible!
required to bring about change!
In order to make our sustainability strategies as precise as
By joining the “Bündnis für nachhaltige Textilien” (Alliance for
possible, as comprehensive as needed and as transparent
Sustainable Textiles), we are investing in such a powerful alli-
as required, we chose the „German Sustainability Code” as
4
FORE WORD
the framework for reporting. It is very transparent and makes comparisons with other companies easier. This ensures transparency and comprehensibility for our stakeholders. Dear readers, I hope we are able to convince you of our approach with respect to sustainability. I am pleased that you are interested in our third sustainability report and look forward to your feedback.
■
Ihr Patrick Zahn
5
K iK SUSTAINABILIT Y REPORT 2015
“Through bulk buying, direct imports, efficient logistics, central, streamlined management and a store design that prioritizes product presentation, we achieve cost benefits that we pass down to our customers in the form of lowprices.” (Preamble of our sustainability concept)
KiK Textilien und Non-Food GmbH has seen further growth
Figure 2: KiK employees in Germany
during the reporting period. The branch network in Europe
(previous year in brackets).
opening in the Netherlands since 2013. On 31 December 2014, KiK was represented in 9 countries with a total of 3,294 branches, including 2,531 in Germany alone.
[Number]
has expanded further toward the west with 14 new branches
460 (488) 102 (82) 787 (730)
Sales Logistics Administration KiK24
Total: 18,386 (17,912)
Figure 1: KiK 2014 branch network (previous year in brackets).
17,037 (16,612)
Netherlands 14 (5)
Poland 70 (38)
Germany 2,531 (2.554)
The trend toward digitalisation of purchasing behaviour has also reached the discount retail industry. KiK met this challenge by introducing an online shop in February 2013.
Czech Republic 187 (179) Austria 250 (251) Slovenia 47 (46)
“KiK 24” has been well-received by our customers, with approximately 10 million visitors per year. Supplemented by Hungary 61 (59)
this digital sales channel, KiK generated 1.68 billion euros Slovakia 73 (69)
Croatia 61 (54)
revenue in 2014.
INCREASED REVENUE DESPITE THE TREND KiK Textilien und Non-Food GmbH‘s sales development has seen further growth in the current reporting period from 1 Ja-
The slight decrease in numbers of branches in Germany and
nuary 2013 to 31 December 2014. This was achieved despite
Austria in comparison to the last report is due to our strat-
the difficult market conditions which dominated the last two
egy to expand exclusively into good locations, close to the
fiscal years.
city centre. In all other European countries, the new branch
The generally lower economic output in 2013 was reflected
openings clearly outweighed closings. The number of em-
in conservative consumer behaviour. This situation was rein-
ployees increased accordingly. On 31.12.2014, 22,994 em-
forced in the textile industry by a long winter and a particular-
ployees were employed by KiK throughout Europe, of which
ly cold spring. Due to these weather conditions, sales in the
18,386 were in Germany.
first half of the year were significantly below expectations, but were balanced out by an increased sell-off of seasonal goods during the sunny summer months. Despite a difficult
6
AN OV ERVIE W OF K IK
starting point, KiK was able to finish the 2013 fiscal year with
overall concept is demonstrated in the development of the
an increase in sales of 4.8% (like-for-like 4.6%) in the dome-
average net customer expenditure. This demonstrates that
stic German market. Internationally, sales increased by 7.0%
the average purchase amount per customer has increased
(like-for-like 4.6%).
continuously over the last four years.
Although the consumer climate in 2014 increased significant-
By offering online purchasing and with the redesign of the
ly in comparison to the previous year, consumers remained
branches, in the company’s 20th year of business, KiK has
reserved and spent less on textile purchases overall. Again,
developed from a discount retailer to a well-liked family dis-
KiK was able to successfully assert itself against this general
counter for every age group.
market trend and increase sales in Germany by 5.6% (likefor-like 6.4%) to 1.29 billion euros. In the 8 expansion countries, we achieved growth of 7.4% (like-for-like 6%).
MANAGEMENT REORGANISATION The management departments of KiK Textilien und Non-
Figure 3: Increased sales for KiK Germany and KiK Europe.
Food GmbH was reorganised during the reporting period.
Net turnover [billion €]
Sustainability management was directly linked to the executive management level and the purchasing department was
1.80
consolidated in a single position.
1.60
Europe
1.40
At the beginning of the 2016 fiscal year, Heinz Speet withdrew
Germany
1.20
from the executive management level at his own request. His
1.00
deputy, Patrick Zahn, took over as the chairman of the board.
0.80 0.60
KiK Textilien und Non-Food GmbH is integrated into the
0.40
structure of the Tengelmann Group. Figures, data and facts
0.20
about the Tengelmann Group can be found in the current 2013
annual report.
2014
http://tengelmann.de/home/presse/presse-aktuell/
Since a change of accounting method in 2013 revenue has been reported net.
geschaeftsbericht.html
■
The causes for the increase in sales include the qualitative expansion in good locations, targeted expansion of the product range and the subtle visual modernisation of the branches based on the KiK-17 concept. Currently, a good half of all branches have this new look. The redesign will be completed by 2017. Our customer’s very high opinion of this
Figure 4: Management of KiK Textilien und Non-Food GmbH in 2016.
Patrick Zahn Chairman of the board, Sales, Human Resources, CSR Communication, Marketing
Burkhard Schültken Head of Logistics
Darius Kauthe
Rainer Kanbach
Management board Finance / Administration
Deputy CEO Purchasing Management
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K iK SUSTAINABILIT Y REPORT 2015
“We view implementing sustainable business practices as an ongoing process which we must constantly improve. That is why we set ourselves short-term, mid-term and long-term goals. We use key indicators to monitor the success of the various measures we implement.” (Closing paragraph of our sustainability concept) In the past few years, we have systematised our sustaina-
issues must be integrated even further into our core busi-
bility management step-by-step and thus created a broad,
ness. To achieve this, the organisation of sustainability was
sustainable foundation. All of our day-to-day company pro-
significantly restructured within the company. The areas of
cesses were analysed and reviewed with respect to their re-
energy, social responsibility in the supply chain, product
levance to sustainability. From these analyses, the key con-
and production ecology and the department responsible
tents for sustainability management were derived, objectives
for communication with stakeholders, “Economic policy di-
defined and strategies for achieving these objectives were
alogue” have become autonomous units after the dissoluti-
developed. Key performance indicators that demonstrate all
on of the “Sustainability management” department in April
important parameters allow us to control processes on an
2014. They are assigned to the specialist departments res-
ongoing basis.
ponsible for implementation. The strategic coordination between areas, an assessment of the success of the measures and reporting are the respon-
ORGANISATION OF SUSTAINABILITY Daily business practise has taught us that key sustainability
sibility of the CSR department which acts in a coordinating and consulting capacity. The department reports directly to
Figure 5: Organisation of sustainability at KiK
8
Measures for increasing qualifications and diversity
Staff Development Department
Measures for complying with minimum social standards
Social Compliance Department
Measures for responsible sourcing
Sourcing Department
Projects for removal of hazardous substances in production
Quality Assurance Department
Power-saving energy management at all KiK locations
Energy Management Department
Reduction of CO2 from transport and traffic
Incoming Goods Department Outgoing Goods Department / Vehicle Fleet
Chairman of the Board for Human Resources, CSR, Communication
Purchasing Management
Sales Management Vehicle Fleet Management
The CSR Department
The Economic Policy Dialogue Department
coordinates work related to sustainability in cooperation with the specialist departments and reports to the Chairman of the Board
gathers information about the demands of society, politics and branches and passes it on to the management and specialist departments
MANAGEMENT APPROACH
Figure 6: The trend in key performance indicators is largely positive
Unit
Base year 2009
Turnover
bn.€
Number of branches
Quantity
Sales area
qm
Share of sales value from textile products Share of sales value from non-food products
objective by 2017
2013
2014
Trend with respect to base year
1,56
1,57
1,68
+
2,437
3,255
3,294
+
1,474,923
1,650,918
1,660,063
+
%
78
71
70
-
%
22
29
30
+
Transport packaging
g / unit
39
31
31
+
Product packaging
g / unit
10
13
12
-
Direct primary energy consumption Germany
GWh
154
153
130
+
Absolute power consumption Germany
GWh
101
108
105
-
Power consumption Germany per m² of sales area
kWh / m²
85
82
82
+
Paper consumption Germany
million sheets
25
14
15
+
Share of recycled paper for marketing materials and advertising circulars
%
79
84
91
+
Share of Ökotex textiles
%
2
49
51
+
Articles made of organic cotton with GOTS seal
Units
144
227,744
382,974
+
Complaint rate
%
4,4
0,3
0,4
+
Absolute transport emissions Incoming Goods
kt CO2e
25
35
38
-
Transport emissions Incoming Goods
kg CO2e / t product
Share of air freight emissions from direct imports
%
Absolute CO2 emissions of KiK Germany at a constant emissions factor since 2009
kt CO2e
Absolute CO2 emissions of KiK Germany at a constant emissions factor with green power since 2009
kt CO2e
CO2 emissions per m² of sales area of KiK Germany at a constant emissions factor since 2009
kg CO2e / m2
Economy
Ecological resources maintaining the 31 g / unit
-13%
achieving 100%
Ecological product range
< 0.5 %
Ecological emissions
226
238
241
-
-
-
< 5%
4
3
+
94
86
+
91
91
-25%
49
42
+
74
74
68
+
Socially responsible employees Employees in Europe
Quantity
18,129
22,119
22,994
+
Employees in Germany
Quantity
14,951
17,912
18,386
+
Share of women in management positions (base year 2010)
%
58
> 50%
57
58
constant
Trainee hiring quota (base year 2010)
%
74
> 70%
71
72
-
Trainee ratio to total workforce (base year 2010)
%
10
maintain at 50 %
n/a
5
9
K iK SUSTAINABILIT Y REPORT 2015
the chairman of the board and advises the entire management with respect to the strategic alignment of sustainability. This ensures that key strategic points are still defined on the management level. At the same time, the relevant specialist departments have been strengthened with respect to their
which we performed at the beginning of the 2015 fiscal year in an interdepartmental process with managers from the procurement, purchasing, energy management, human resources, communication, CSR and economic policy dialogue departments provided answers to these questions. The company’s essential interests and success parameters
autonomous implementation concept. Across the entire Group, department managers remain in-
formed the basis of the analysis:
volved in the environmental work group and the CSR round table of the Tengelmann Group.
- Cost-conscious corporate governance - Offering high-turnover product ranges
MATERIALITY ANALYSIS
- Qualitative expansion
After the key organisational points for greater effectiveness had been defined in the core points of the sustainability management, focus had to be placed on core issues on
- Securing stable employment contracts - Training junior staff
the content level in order to ensure the relevance and significance of our sustainability strategy. What aspects of our business activities have the greatest economic, ecological and social impacts from our perspective? What interests do our stakeholders represent? How do these relate to the in-
In addition, the interests of the most important stakeholders from the direct working environment, the economic environment and the corporate environment were analysed.
terests of our company? And how severely do these issues impact the company’s public image? A materiality analysis, Figure 7: KiK stakeholders
Partners
Critics
Market
Decision-makers
Work environment
Suppliers and agencies Employees Customers Competitors
Politics Associations
Owners and shareholders
Economy Trade unions
10
Human rights and Environmental organisations
Cooperative partners Media
Society
MANAGEMENT APPROACH
Past experience shows that the following requirements are
to them, these are the criteria on which our customers place
not only significant to our company, but are also significant
value when purchasing clothing:
for the stakeholders and generally shape the public’s perception of the textile industry.
- Optimum fit - Fashionable design
- Safe production facilities in the manufacturing countries
- Highly comfortable to wear
- Fair working conditions in manufacturing
- Good price-performance ratio
- Environmental and climate protection in the supply chain - Remuneration at own locations
Since the majority of KiK customers have very little money
- Product quality assurance
to spend on textile products, criteria, which directly pertain to the product, first and foremost a low price, are decisive
We knew less, however, about our customers’ attitudes with regard to sustainability. There is active communication on
purchasing arguments. Quality certificates or the origin of the articles are of less interest.
the social network Facebook for this huge and important
The following matrix shows the topics arising from these dif-
group of stakeholders. We therefore used this forum to take a
ferent interests, broken down by significance for the success
survey in which 5,456 KiK customers participated. According
of the company and based on their relevance in the social discourse:
High relevance for external stakeholders
Figure 8: Relevance matrix
Application and compliance with the CoC in the supply chain
Primary priority areas
Secondary priority areas
Medium relevance for external stakeholders
Product safety / responsibility
Remuneration at own locations
Tertiary priority areas
Environmental and climate protection in the supply chain
Low relevance for external stakeholders
Training and further education
Corporate citizenship
Low significance for the company
Transport efficiency / CO2 reduction
Medium significance for the company
Energy efficiency at the sites / CO2 reduction
High significance for the company
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K iK SUSTAINABILIT Y REPORT 2015
SUSTAINABILITY IS BASED ON THE PRINCIPLE
Exploitation of production reserves: We cooperate with
OF MATERIALITY
our suppliers to ensure economically feasible and environ-
Sustainability, which is focused on key areas, concentrates
mentally friendly use of materials and resources.
on areas of great significance for the development of the company on which the company has the greatest influence and which are of great interest to the stakeholders. Accordingly, two areas of essential strategic focus can be derived
Our objective: • Integrating 90 active suppliers per year into the CPI2 project.
from this relevance matrix for sustainability management at KiK.
Workforce: We stand for an employee-oriented and supportive personnel policy.
1. All topics that are important for the positive develop-
Our objectives:
ment of the company flow into one efficiency strategy.
• Maintaining the share of employment positions
These include:
subject to compulsory social insurance at at least 75%. • Maintaining the trainee ratio at 9%.
Transport efficiency: We use the most environmentally
• Maintaining the hiring quota of trainees at above 70%.
friendly means of transport for all consignments if possible
• Maintaining the ratio of women in management
given the time constraints.
positions at at least 50 %.*
Our objectives: • Maintaining the share of emissions arising
2. The topics that are highly significant in public dis-
from air freight at below 5%.
course are outside our direct scope of control and there-
• Switching imports from Turkey to environmentally
fore constitute the greatest risk potential for our busi-
friendly means of transport.
ness activities. We therefore combine these topics into a risk reduction strategy:
Reduction of energy consumption: We are continuously reducing the energy consumption at our sites. Our objective: • Reducing energy consumption per m2 of sales area by 13% by 2017 (in comparison to 2009).
Creation and maintenance of the supplier base: We keep the number of suppliers to a manageable level, place value on long-term supplier relationships and inspect production facilities at regular intervals. We also cooperate in audits and inspections performed by third parties. Our objectives:
Using less packaging materials: We use as little packaging materials as possible and place value on selecting sustainable materials. Our objectives: • Maintaining the reduced weight of transport packaging by an average of 31 gr / article. • Achieving 100 % use of recyclables for office,
• Maintaining the number of active textile suppliers below 400 regardless of expansion. • Working with at least 50% of our supplier base for longer than 5 years. • Maintaining the audit rate in Bangladesh at 95%. • Joining a multi-stakeholder initiative.
advertising and marketing materials and packaging.
* Regional director, sales director, department head, division head, managing director
12
MANAGEMENT APPROACH
Product quality: We ensure the quality of our products by means of extensive quality controls. We develop projects for reducing the use of chemicals in the textile manufacturing process. Our objectives:
All savings measures are implemented in cooperation with the specialist departments energy management, sales and
• Maintaining the complaints rate at less than
logistics and are combined under the “Resource efficiency
0.5% across all product ranges.
and climate” area of activity.
• Maintaining the share of human ecologically tested textiles (Ökotex 100 standard and Toxproof certificates) at above 50% across all product ranges. • Participation in the use of chemicals work group in the Alliance for Sustainable Textiles. All topics relevant for internal employees are formulated by the human resources department and are illustrated in sustainability management under the “Employees” area of CONCENTRATION ON THREE AREAS OF ACTIVITY
activity.
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In order to achieve the stipulated development objectives, measures and implementation plans are developed by the relevant specialist departments in cooperation with the CSR department and implemented to control the corresponding key performance indicators. In order to strategically implement the objectives, the challenges are divided into three areas of activity:
Risk reduction strategies pertaining, in particular, to manufacturing, are developed in cooperation with the procurement and purchasing departments and are presented in the “Supply chain and product” area of activity.
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K iK SUSTAINABILIT Y REPORT 2015
“Both our internal and external communications are objective and appropriate. We are always open to feedback.” (§ 5 of our sustainability concept)
The systematisation of the stakeholder dialogues descri-
the practical implementation of the agreement. In particular,
bed in the last report has been consistently continued over
KiK shaped the cooperation by making suggestions regar-
the last two years. The responsible department “Economic
ding the establishment of “regional groups”. We have re-
policy dialogue”, which reports directly to the CEO, actively
gistered all of our suppliers in Bangladesh for inspection in
seeks out dialogues, in particular with critical stakeholders.
accordance with the guidelines of the Accord. KiK actively
It conveys the interest of the stakeholders to the company
participates in all member meetings and conducts intensive
and works with the respective departments in implementing
dialogues with trade union representatives and the operative
them. Changes, ideas and results are then communicated
Accord team as appropriate.
back to the outside via the department. Numerous conversations with non-governmental organisations, governmental organisations, political decision-makers and branch representatives from the trade industry were conducted during
COMPENSATION NEGOTIATIONS FOR RANA PLAZA AND ALI ENTERPRISE
the reporting period. With respect to the complex issues sur-
The “Agreement on compensation payments to the victims
rounding all areas of the supply chain, the positions of the
of the Rana Plaza accident and their families”, the so-called
critical stakeholders had to be reconciled with the interests
arrangement concluded in September 2013 under the super-
of the company. The commitment to the important multi-
vision of the International Labour Organisation (ILO), illust-
stakeholder initiatives over the past few years was a priority.
rates a standardised approach for establishing a relief fund to provide financial and medical support to victims of the
FIRE PROTECTION AND BUILDING SAFETY IN BANGLADESH
accident. This approach applies the standard of Convention 121 from the ILO regarding benefits for work accidents and occupational illnesses. In order to finance the compensation
The Bangladesh Fire and Safety Accord is a comprehensi-
amounts calculated using this approach, companies, asso-
ve and independent agreement aimed at transforming all
ciations, trade unions, governmental and non-governmental
clothing factories in Bangladesh into safe working environ-
organisations can voluntarily pay any sum into the fund.
ments. It was conceived by domestic and international trade
KiK participated in the development of the arrangement
unions in cooperation with other employee organisations and has since been signed by 200 hundred international manufacturers and retail companies. KiK joined the Accord in May 2013 as the second German commercial enterprise. By signing the Accord, participating companies commit to financing factory inspections by trained fire experts, developing action plans and providing assistance for renovations and repairs, for instance by supporting credit applications, for a period of five years. The progress of the project is published at http://bangladeshaccord.org/ In a dialogue with the “interim control group” of the Accord, KiK was involved in a number of meetings aimed at
14
through intensive dialogues with industry representatives and non-governmental organisations and was the first German company to pay into the fund - an initial payment of USD 500,000. This sum was increased to USD 1 million as part of our continuing commitment to the cause. Among German companies, KiK made the largest contribution, though at the time of the accident, none of the factories in Rana Plaza were producing KiK orders. http://www.ranaplaza-arrangement.org/fund/donors/donors
STAK EHOLDER DIALOGUES
In addition, KiK supports the diverse commitment of the German-Bengalese relief organisation “Meena” for the victims’ families. The joint project includes the provision of foodstuffs, as well as medical and trauma care by, for example, offering creative programs for children and literacy programs for their mothers. In accordance with the standard of “Help others to help themselves”, funding in the amount of USD 100,000 helps the affected families to return to an autonomous and self-determined life. http://www.meena-support.de/index.php/de/ For the victims and surviving dependants of the fire at the Pakistani textile factory Ali Enterprises in 2012, a relief fund in the amount of USD 1 million was made available to cover acute needs directly after the accident. In addition, the relief model developed for the victims of the Rana Plaza accident should also be applied to the situation of the victims of the fire at Ali Enterprises. Based on the tried-and-tested criteria of ILO Convention 121, this would allow for a transparent determination of the individual damages and ensure the definition of the necessary relief funds. KiK confirmed its participation in the financing of such a relief fund and committed to provide financial aid to cover the cost of living for the affected families for the duration of the damage assessment. Unfortunately, despite many conversations and intensive discussions with all participants, there has been no agreement to date. Therefore, the open questions will now be clarified in what looks to be a more long-term process. The pending court proceedings primarily pertain to compensation payments to alleviate the pain and suffering of four victims. The focus of the political interest in these proceedings is, however, the question of liability of ordering clients in the
OECD PROCEDURE REGARDING TAZREEN To clarify the question of shared responsibility by KiK and two other trade companies with respect to the fire in the Bangladeshi factory Tazreen in 2012, the national contact point of the Organisation for Economic Cooperation and Development (OECD) was called on to mediate. The aim was to clarify whether the companies had taken into account the OECD guidelines when selecting the production facility and whether they have partial responsibility for the fire. After reviewing the facts of both cases, the national contact point came to the conclusion that KiK did not bear any responsibility for the fire; however, the question of a potential breach of due diligence still needs to be clarified. In two mediation hearings and comprehensive briefs, we were given the opportunity to describe and explain how we inspect and secure production facilities. As a result, KiK was cleared of any breach of due diligence or human rights violations. Thus, the OECD recommended an amicable conclusion of the proceedings and published this recommendation in its final ruling. https://www.bmwi.de/BMWi/Redaktion/PDF/A/ abschlusserklaerung-kekeritz,property=pdf,bereich= bmwi2012, sprache=de, rwb=true.pdf Independent of this, KiK directly launched a project immediately after the accident in cooperation with Caritas that supports victims and provides new opportunities for securing their cost of living. The focus of this relief program, which is funded with 160,000 euros, is to offer principal earners professional qualifications through training and further education.
context of the international supply chain. KiK is defending itself against this claim since the company cannot be ac-
ALLIANCE FOR SUSTAINABLE TEXTILES
cused of violating due diligence obligations with respect to
On the initiative of the Federal Ministry for Development, an
its suppliers or of any other violations and can therefore not
industry-wide approach for better production conditions in
be held liable.
the manufacturing countries, the “Alliance for Sustainab-
.
le Textiles”, was founded in 2014. The objective of this alliance is to substantially improve the social, economic and ecological standards in the textile and clothing industry and make Germany the forerunner in the international effort to establish reasonable production conditions in global supply chains. We have supported the formation of the alliance since its inception and have made constructive contributions toward its implementation in work groups, in particular, the „Core work group for economy”. As a member of the negotia-
15
K iK SUSTAINABILIT Y REPORT 2015
tion delegation of the economy, we have campaigned for the consideration of the requirements of a wide range of company concepts in such an alliance, thus allowing KiK and many other companies to join in June 2015. https://www.textilbuendnis.com/index.php/de/
OUTLOOK In the future, suppliers, as significant stakeholders, will be more closely integrated when it comes to the development of measures and projects. This should deepen the understanding of the demands and challenges of socially responsible and environmentally friendly production on both sides.
PARTICIPATION IN THE SOCIAL DIALOGUE
With respect to internal communication, exchanges with the
In addition to these results-oriented negotiations and coor-
relevant specialist departments for sourcing, purchasing and
dination processes, the “Economic policy dialogue” depart-
CSR are promoted and institutionalised.
ment has initiated numerous conversations in order to pro-
Communication with customers about sustainability issues
vide information about the business model of direct import
will be intensified and the information and strategies collec-
discounts with the greatest possible transparency and about
ted will be reviewed in feedback loops.
the potential of a socially acceptable and environmentally friendly company policy. In this context, we established and accompanied a visit to one of our suppliers’ factories in the framework of a trip to Pakistan with the development policy committee of the parliamentary groups, met with development policy speakers from different groups, specifically sought out conversations with critical NGOs in the field of environmental and social matters and initiated the cooperation between our specialist departments and potential project partners.
16
In addition, the developed contacts with political bodies and within the industry will be further strengthened and maintained.
■
PROMOTION PROJECT S
Social projects and social commitment
“We are committed to acting on our social responsibilities by supporting national and international projects that aim to improve people’s living conditions – particularly those of children.” (§ 6 of our sustainability concept) While the economic and socio-political dialogues are conducted with a clear company policy objective in mind, the promotion of social projects is solely in terms of a social commitment for charitable purposes. An annual budget of approximately 1.5 million euros is available for this. In Germany, we support socially disadvantaged children and young people via the “help and hope” foundation. We have supported the Malteser Hilfsdienst since 2003 with donations in kind. As a local company, we are a supporting member of the Initiative pro Ruhrgebiet e. V. For many years, we have cooperated with the German Red Cross and the German Bone Marrow Donor Centre. Within the international arena, we have focused our
Figure 9: Distribution of funding
activities on Bangladesh. Here, we support projects which aim to improve the living conditions of the
100 %
factory workers and their families. We finance kindergartens and schooling, fund projects for hygiene and clean drinking water, support several clinics and offer programs that inform textile workers about their rights at work. The activities that have been started will be supported in the next reporting period with the same
80 %
700,000 €
540,000 €
850,000 €
850,000 €
60 % 40 %
Total international Total national
20 %
budgets. 2013
2014
17
K iK SUSTAINABILIT Y REPORT 2015
“Compliance with basic social and labour standards is a prerequisite for any business relationship.” (§ 3 of our sustainability concept)
In our branches and via our online shop KiK 24, we offer our
Figure 11: The factory visits are concentrated largely on five
customers a wide range of products with low-price textiles
primary procurement markets.
and non-food articles. The goods are manufactured mainly
5 Bangladesh
[%]
in Asia, in particular in China and Bangladesh.
15
China
[%]
Figure 10: Procurement markets 2014.
4 4
2
1
India Pakistan
7 China 46
7
51
Turkey
Bangladesh Turkey
6
India Pakistan
9
22
Germany Cambodia
mary procurement markets in order to check compliance with 21
the applicable standards. In addition, we cooperated closely with selected suppliers in the primary procurement markets in China and Bangladesh on
We have long-term business relationships with most of our
improving social and labour law standards within the frame-
suppliers. We have worked with 51% of our suppliers for more
work of the so-called “Sustainable Supplier” program. In the
than 5 years. All our business relationships are subject to our
wake of the factory accidents in Bangladesh and Pakistan, the
Code of Conduct. http://www.kik-textilien.com/unternehmen/
“Sustainable Supplier” program was, however, abandoned
fileadmin/media/ blaetterkataloge/CoC_DE/index.html
and replaced with a broad-based campaign for fire safety. The
It is based on the key labour standards of the International Labour Organisation and contains fundamental principles that must be taken into account by all suppliers working with KiK. Compliance with the social standards is audited by means of announced and unannounced visits to the production facilities by KiK employees or our purchasing agents and in official audits by certified auditing companies. During the reporting period, 1,069 factory inspections were performed in the pri-
18
primary reason for this decision was that the fundamental safety aspects first have to be enforced on a broad basis before continuing work on the qualification of individual suppliers. As a result, KiK instead established the “Fire safety campaign” for Bangladesh and Pakistan in 2013 and, on the Chinese market, offered workshops on fire safety and occupational safety for purchasing agencies as an alternative to the “Sustainable
SUPPLY CHAIN AND PRODUCT
Supplier” program. According to the “train the trainer” princip-
In addition, KiK is in close contact with the Accord manage-
le, knowledge conveyed in this manner is now passed on to
ment team and trade unions. The current condition of facto-
the suppliers during factory inspections.
ries is being discussed in regular telephone conferences and solutions for pending defects are being found.
CONCENTRATION ON FIRE PROTECTION AND BUILDING SAFETY The serious industrial accidents in Pakistan and Bangladesh also demonstrated that the widely used individual corporate strategies were not sufficient to enforce safer working conditions in textile factories. In the wake of the factory accidents,
In addition, regional meetings are held several times a year in order to ensure exchange and communication between the Accord organisation and its members. At KiK, four colleagues, 2 from Dhaka and 2 from Germany, are working on processing and implementing the requirements of the Accord.
the focus of the entire textile industry shifted to opportunities for improving fire and building safety. This ultimately resulted in the establishment of the „Bangladesh Fire and Safety Accord”. In May 2013, we were one of the first companies to sign this agreement, which was coined „the Accord“ for short, working with other companies and trade unions to improve the structural conditions in factories and thus ensuring the safety of employees. In the framework of the Accord, inspections in the following three categories are performed by independent, certified third parties:
In order to ensure long-term compliance with the safety standards, so called “Occupational safety & health committees” and a confidential complaints system will be implemented in the factories. These committees, which involves employees in matters of safety and health safety at the work place, are rolled out incrementally across factories with the help of the Accord.
EXPANDING THE ACCORD REQUIREMENTS TO OTHER PROCUREMENT MARKETS In line with the agreement developed for Bangladesh, we
• Fire safety • Electrical safety • Building safety
also want to sensitise our textile suppliers in Pakistan and India to the topic of fire safety, building safety and electrical systems and encourage specific improvements. In an initial step, evacuation and fire safety training courses were conducted with management and employees at the factories. In addition, we have commissioned an external, certified agen-
Each member of the Accord assumes a coordinating func-
cy in both countries to audit fire safety. The focus was on the
tion for a specific number of factories (lead brand) in order to
following areas:
coordinate the necessary work with the other companies manufacturing there. KiK is currently performing the lead brand function for 64 factories. KiK developed an intensive program for this lead brand function in which the respective factories receive assistance in rec-
• Sufficient, functioning fire protection equipment • Sufficient emergency exit lighting with an
external emergency power source
tifying defects from our office in Dhaka. Our local colleagues
• Sufficient fire alarms with an external emergency
are in close contact with these factories in order to move im-
provements forward efficiently. Thus, more than 63% of the
• A sufficient number of unobstructed emergency exits
defects in the factories for which KiK performs a lead brand
power source
function have been or are soon to be rectified. We are working intensively with the Accord team on any defects which are still pending. In principle, however, all purchasing companies using a factory share responsibility for implementing the inspections.
19
K iK SUSTAINABILIT Y REPORT 2015
Our objective is for all companies with whom we cooperate
CONTINUOUSLY IMPROVING QUALITY AT
in Bangladesh, Pakistan and India to fully comply with all of
A CONSISTENTLY LOW PRICE
the requirements formulated in the Accord.
We continuously work on offering our textiles and non-food products in the attractive manner our customers know and
CONCENTRATION, LONG-TERM PERSPECTIVE AND TRANSPARENCY
expect from us. The constant optimisation of product quality is also one of our objectives.
Our experience shows that - especially in light of continuous demand for textiles and consumer goods - it pays to work with
Figure 12: During the reporting period, we achieved and
suppliers with whom we have a long-term, well-founded and
even exceeded the objective set for 2015 to increase
therefore reliable business relationships. Our objective is to
the share of articles made of organic cotton by 40% in
maintain a manageable supplier base and gain the highest
comparison to 2009.
al supplier offers. We have therefore established a central international sourcing department in 2012 to deal with supplier
[units]
level of transparency of regarding the services each individu-
450,000 400,000 350,000
selection. The specialists employed in this department have
300,000
analysed the risks and opportunities of the different procu-
250,000
rement markets and developed a global selection and eva-
200,000 150,000
luation system for suppliers. In addition to business criteria,
100,000
the CSR-related social and ecological factors are taken into
50,000
account in the evaluation of the production facility. Only when the results in both areas are acceptable a supplier will be ap-
2009
2013
2014
Goal 2015
proved and eligible to receive their first trial order. Figure 13: The share of articles tested in accordance
A so called “set card” is created for every manufacturing facility, which, in addition to all product-related and business factors, includes information about social compliance with a
with the Ökotex standard 100 in the range of textile products were increased to more than 50% during the reporting period.
best, and most safely, be ordered. The introduction of a software system is planned for 2016
[%]
recommendation for purchasing regarding where goods can 60 50
which will simplify the comparability of the data and make de-
40
velopments more transparent.
30
In the CSR segment, a new software system will be introduced
20
that allows for an even more detailed assessment of the production facilities with respect to social compliance. The objective of a more precise assessment is to motivate and improve the willingness of producers to cooperate.
10
2009
2013
2014
TESTED MULTIPLE TIMES – HARDLY ANY COMPLAINTS Nearly every article sold in our branches or our online shop has been tested in accordance with the highest quality standards. Even before the start of production, samples are tested by independent institutes or our Service Unit in Dhaka with respect to the physical and chemical characteristics
20
SUPPLY CHAIN AND PRODUCT
of the textiles. During and directly after completion of production, further samples are tested in labs, followed by spot checks of our quality assurance department at the central offices in Bönen when goods are received. This system has
Less plastic – for the sake of the environment
resulted in the continuous decrease of complaints resulting
In Germany alone, more than 6 billion plastic bags
from checks performed by German authorities. In 2014, this
are used every year. And a large share of those end
was at only 0.4%.
up in the rubbish bin after one use. Since it takes between 100 and 150 years for plastic bags to fully
Figure 14: The complaints rate from officials was reduced to
decompose, depending on the synthetic materi-
0.4% during the reporting period.
al used, this irresponsible consumption results in
[Complaints rate / %]
growing mountains of rubbish and negatively im5
pacts on society and the environment. We want to
4,5
do something about that. From November 2014, we
4
launched a six month trial of cotton and long-lasting
3,5
tote bags. The feedback from our customers was
3 2,5
so positive that plastic bags are no longer offered
2
at KiK in Germany, Austria and the Netherlands as
1,5
of 01.10.2015.
1 0,5 2009
2013
2014
often result in minimal initial costs, such as replacing light
We will also introduce a new software system to improve product quality. It will make transferring data easier and thus help avoid errors when specifying orders.
bulbs or motors in sewing machines, textile factories achieve a tangible positive impact on the environment which is also offers financial benefits. 85 of our suppliers are currently involved in this scheme. We expect first results in 2016. For more information about the project and a list of participa-
Figure 15: The cumulative sales for the “Products that help” were increased by 21% in 2014. Total quantity
Carpets
Baskets
2013
3,121,880
2,784,589
337,291
2014
3,776,972
3,343,236
433,736
ting companies, please see www.cpi2.org.
OUTLOOK We will continue our commitment in the Alliance for Sustainable Textiles and, via our work in different work groups, utilise our design possibilities toward a results-oriented implementation of its objectives. The focus will be on implementing the
BETTER ENVIRONMENTAL PERFORMANCE IN THE
different aspects of environmental, social and fire safety, not
SUPPLY CHAIN
just on the manufacturing level, but also throughout the entire
Since 2011, KiK has been a member of the „Carbon Perfor-
supply chain.
■
mance Improvement Initiative”, CPI 2 for short. The objective of the initiative of brand and trade companies is to significantly reduce the environmental impact of textile production processes, focussing on the optimal use of energy, water and chemicals. CPI 2 offers suppliers an approach for systematically analysing consumption and then reducing and controlling process implementation. By means of simple measures which
21
K iK SUSTAINABILIT Y REPORT 2015
“We strive to reduce the environmental impact of our business activities and to conserve resources.” (§ 4 of our sustainability concept)
The operation of our company headquarters, the central warehouse and almost 3,300 European branches and the transportation of goods to the central warehouse and branches has an impact on the environment. The consumption of power, natural gas, heating oil, petrol and diesel generates greenhouse gas emissions. The use of fossil fuels also uses finite resources. Wood and wood products are used to produce paper materials used in large quantities at the KiK administrative offices. And, finally, water is also a resource that should be used sparingly.
ENERGY MANAGEMENT FOR OUR BRANCHES In April 2014, the KiK energy management department was founded with the objective of recording, analysing and optimising energy consumption of our German branches. The so called smart meter, an “intelligent” meter which measures the actual power consumption across a specific usage period, provides transparency with regards to the power consumption of each individual branch. The load profile data can then be analysed in order to find “power guzzlers” and determine the causes for the high consumption. Finally, an optimisation plan is prepared and the required measures are
In the past few years, we have taken a big step in reducing CO2 emissions. By converting to green power in all German and Austrian branches and at the company headquarters, emissions have been reduced by more than 50% in purely
implemented. This can, for instance, be done by rectifying technical problems or training branch employees with respect to concrete measures that significantly reduce the power consumption of branches. For instance:
mathematical terms. We thus achieved the climate objective we set ourselves and are now continuously working on the effective reduction of our power consumption. During the 2014 fiscal year, 3% less power per m2 of sales area was used in our German branches when compared to 2009. We are planning to save a further 10% by 2017.
[kWh / m2]
Figure 16: Continuously reduced power consumption.
85.0
and advertising
• need-based control and regulation of ventilation,
heating and air conditioning systems
(e.g. by using a CO2 controller for ventilation systems)
• remote monitoring of air conditioning systems
84.5
On 31.12.2014, the energy consumption of 200 German
84.0
branches was determined using smart meter technology
83.5
and 75% of the tested branches showed potential for impro-
83.0
vement. At the end of the 2015 fiscal year, nearly all of the
82.5 82.0
German branches will be integrated in the energy manage-
81.5
ment concept. The total savings potential determined by the
81.0
smart meters amounts to several million kWh.
80.5 2009
22
• correctly setting timer switches for external lighting
2013
2014
RESOURCE EFFICIENCY AND CLIMATE PROTECTION
REMOTE MAINTENANCE In connection with our objective to have branches
Another option for reducing the energy consumption of bran-
equipped with 100% LED lighting, the KiK energy
ches is to introduce a measurement, control and regulation technology (MSR) which allows for a centralised, computer-
management department has worked with an East
based control of heating, ventilation and air conditioning
German lamp manufacturer to develop an innovati-
systems. This technology is controlled remotely by staff in
ve T5 fluorescent tube with only 27 watts. The idea
the energy management department at our European head-
for this was born in March 2014 and two months la-
quarters. More than 100 branches have now been equipped
ter, the first prototypes of this innovation were tested
with corresponding MSR technology.
at a branch. At the end of the 2015 fiscal year, 200 branches were equipped with a total of 40,000 of these fluorescent lamps. The comparison test per-
MORE LIGHT – LESS POWER
formed by an independent light lab resulted in a po-
The current KiK lighting concept is based on a combination
wer saving of 20.3% in comparison to conventional
of T5 lamps (35 watts) and LED emitters (40 watts) which
branded T5-lamp.
now make up 20% of overall lighting. This proportion will be increased to 100%. As of 1.11.2015, all renovated or newly opened branches are being equipped with LED lighting throughout. As a result, we will manage to half power con-
Figure 17: Water consumption per administrative employee
sumption In comparison to the lighting system currently in
was maintained at the previous year’s level in 2014. A slight
use. The plan is to equip more than 500 KiK branches with
increase in the logistics department is due to watering new
optimised lighting in 2016. At the European headquarters,
plants on the company grounds.
LED panels by the end of 2015. To this end, more than 2,000 lamps will be replaced, resulting of a saving of 200,000 kWh per year. And after the successful retrofitting of a hall in the central warehouse with LED lighting, this will be extended to other halls. The annual savings potential is approximately 300,000 kWh.
[m3 / MA]
the entire office lighting system will be replaced with modern 14
Administration
12
Logistics
10 8 6 4 2
ENVIRONMENTAL MANAGEMENT SYSTEM AT THE EUROPEAN HEADQUARTERS RECERTIFIED
2009
2013
2014
In order to improve the environmental performance at KiK’s European headquarters and warehouse logistics, we set up
The previous year saw an increase in the total volume of
an environmental management system (EMS) in 2010. It ser-
different types of disposable waste generated at the Bönen
ves to optimise the most important environmental aspects at
site. This is the result of the waste generated by the reno-
the Bönen site: reduced consumption of power, water, office
vation of the branches which had to be disposed of via the
materials and paper and prevention and disposal of waste
central headquarters.
are central tasks. According to the principle “reduce, substi-
A positive aspect is the use of recycled paper and FSC pa-
tute and recycle”, an environmental program was developed
per for advertising, marketing and office materials. With res-
for each area. Thus, for instance, the water consumption per
pect to office materials, we were able to maintain the ratio of
administrative employee has been significantly reduced by
100%, increase the share of recyclables for advertising circu-
installing water saving aerators and has since remained sta-
lars to 92% and, with respect to marketing materials, 96% of
ble at this reduced level.
the paper is FSC-certified.
23
K iK SUSTAINABILIT Y REPORT 2015
Figure 18: The use of recycled paper was increased.
There is therefore potential for optimisation with respect to
[%]
transport within Europe. In this context, we will attempt to 100
switch the transport of goods coming from Turkey, which
90
have been transported to the central warehouse by truck, to
80
an alternative means of transport. This will significantly re-
70
duce CO2 emissions.
60 50 40
Figure 20: Although orders transported by aircraft are con-
30
sistently below 0.5%, the stretches flown were longer and
20
thus resulted in a slight increase in CO2 emissions.
10 Advertising circulars
Marketing material
2013
2014 Recycling
FSC / FSC Mix
Advertising circulars
Fresh fibre
[kt / CO2e]
Marketing material
[Quantities in t]
15
9 (10)
5
Yellow sacks 319 (203)
Steel / safes Electrical components Fluorescent tubes
Total: 1,093 (1,025) 5 (5) 684 (730)
10
Residual waste / mixed waste
0.3 (1)
27 (28)
Europe
30
20
reporting period (2012 in brackets). 13 (7)
Overseas
35
25
Figure 19: Waste quantities increased by 7% during the
35 (41)
40
Miscellaneous (cables, sunshades) Paper Glass
2009
2013
2014
LESS PACKAGING Expanding the product range and continuous expansion also require an increase in the field of transport and product packaging. In order to reduce the inherent consumption of resources, we have for many years made an effort for to use as few raw materials as possible by using thinner cardboard packaging.
The regular collection of key performance indicators allows for the control and guidance of the improvement process. The EMS was certified by TÜV Nord in accordance with the DIN ISO14001:2009 standard after its initial introduction in
Figure 21: The weight per unit of transport packaging was reduced by 20%. The ratio of product packaging increased by 18% as a result of the product range.
inspection.
MORE EFFICIENT TRANSPORT In 2014, the greenhouse gases caused by incoming goods transports amounted to 38 kilotons of CO2e. 77% of this was caused by oversea transport, 99% of which is by ship.
[Packaging size / unit]
2011. In 2014, the certificate was renewed after a successful 60
Transport packaging
50 40 30 20 10
2009
24
Product packaging
2013
2014
Objective 2015
RESOURCE EFFICIENCY AND CLIMATE PROTECTION
EMISSIONS RESULTS
OUTLOOK
Since 2009, KiK Textilien und Non-Food GmbH has as-
In the future, we will continue to work on reducing transport
sessed its greenhouse gas emissions. The assessment of
emissions, power consumption and packaging materials in
direct and indirect emissions has since been performed and
the area of resource efficiency and climate protection. In the
prepared on an annual basis by Tengelmann Energie GmbH
immediate future, we have planned to switch the transport
in accordance with the principles of the Greenhouse Gas
concept to environmentally friendly means of transport for
Protocol. In the overall assessment, the relative CO2 emissi-
imports from Turkey. We can thus make a relevant contribu-
ons caused by the facilities during the current reporting peri-
tion toward reducing greenhouse gas emissions. We are pl-
od were reduced by 8%.
anning to reduce the power consumption of branches per m2 of sales area by 10% by 2017.
■
[kg CO2e / m2]
Figure 22: The emissions per m² of sales area decreased. 75 74 73 72 71 70 69 68 67
2009
2013
2014
25
K iK SUSTAINABILIT Y REPORT 2015
“The fact that we support the development of our staff shows how much we value them.” (§ 2 of our sustainability concept)
KiK has 18,386 employees in Germany and it is our duty to
Figure 24: The share of mini-job employees has
ensure that they can continue to develop both personally
decreased to 18%.
portant because of the diversity of KiK’s workforce. It comprises 87 nationalities, a broad spectrum of ages, educational levels and backgrounds.
[%]
and professionally within the company. This is even more im100 90 80 70
A positive aspect is that the share of employment contracts
60 50
subject to compulsory social insurance is increasing as con-
40
sistently as the average employment duration of employees.
30
The turnover rate has decreased in every area of the company.
20 10 2010
Figure 23: The share of employment contracts subject to
[%]
compulsory social insurance has increased to 82%. Subject to compulsory insurance
100 90
Part-time employees
80 70
Part-time
2013 Full-time
Mini-job employees
2014 Trainees / interns
KIK – THE OPPORTUNITY PROVIDER Promoting our youth and the continued education of our employees are central elements of our personnel strategy.
60
KiK is a popular and recognised training company that offers
50
more than 700 training positions in 18 different occupational
40
groups each year. Since the establishment of the company,
30 20
we have trained 5,000 people and have become more fle-
10
xible over the years. We also offer older applicants and, if 2010
2013
2014
suitable, employees without high school diplomas, the opportunity of obtaining professional qualifications. Our intensive and comprehensive training concept allows us to recruit the majority of our junior staff from our own ranks. The hiring rate of trainees increased again during the reporting period. At 72% in 2014, it was significantly above the average for German companies. Of the trainees still employed by the company, 59% are in management positions.
26
EMPLOY EES
Figure 25: The trainee hiring rate and the development rate of junior staff in management positions exceed the company objectives in 2014.
AN OPPORTUNITY TO LEARN In cooperation with the Volkshochschule, which offers courses on a wide variety of topics at 1,000 locations in Germany,
2013
2013
2014
2014 %
we support our employees in strengthening their skills. Every KiK employee in Germany can take courses of their choosing
Quantity
%
Quantity
Trainees since 1994
4,290
100
4,794
100
ter. More and more of our employees are taking advantage
resigned
2,699
63
3,053
64
of this opportunity: In 2014, 415 courses were attended, in
still with the company
1,591
37
1,741
36
of which in management positions
986
62
1,027
59
and the company will contribute 100 euros net per semes-
particular in the areas of athletics, recreation, languages and professional skills.
OPTIONAL FURTHER EDUCATION Figure 26: The average employment duration at KiK is 4.6 years.
In addition, there are numerous operational trainings and further education opportunities. In addition to seminars on work-life balance and practical organisational skills, this also includes presentation training courses, computer courses,
[%]
more than 10.0 years 14
less than 1.0 year 22
language courses and coaching courses for employee and team management. In 2014, a total of 70,711 training and further education hours were utilised by 37% of employees.
2014
FOCUS ON FAMILY AND WORK
5.0–9.9 J. 30
In addition to the training, the compatibility of family and 1.09–2.9 J.
work is an important issue in our personnel policy. With different part-time work models, we offer our employees at the branches and European headquarters the opportunity
3.0–4.9 J.
to balance personal and professional obligations, right from the beginning of their careers. Young parents, in particular, Figure 27: The average employee age in 2014 is 37 years.
[%]
2010 40 35
frequently take advantage of the “part-time training” program to start or continue their training after the birth of their child.
2013
This option is being increasingly utilised: In 2013, 26 emplo-
2014
yees and in 2014, 53 employees completed their part-time
30
training program.
25 20 15
The personnel campaign – stage 2
10
Under the motto “KiK – The opportunity provider”,
5
we held the second large casting event among our up to 20
21–30
31–40
41–50
up to 50
employees in 2014. We were looking for personalities with charisma and confidence who wanted to
In 2013, we started offering transnational training modules. Selected trade assistants worked in branches in Croatia and the Netherlands during their further education and two young people from Spain completed their training at KiK in Germany.
not only work behind the scenes, but also like to be in the spotlight. Of the 220 applicants, 31 were selected as “ambassadors” who are the face of the company as part of an extensive media campaign. The campaign demonstrates that the opportunities for starting and pursuing a career at KiK are as diverse as the people who work here.
27
K iK SUSTAINABILIT Y REPORT 2015
A DETAILED SURVEY OF OPINION
Figure 28: The share of women in management positions was 58% in 2014.
At regular intervals, we want all of our employees in EuroWomen
[%]
Men 100
pe to tell us how they perceive the mood at the company, where they see potential for improvement and what they are satisfied with. Our employees receive a survey developed
90 80
by geva, an opinion research institute, which they complete
70
anonymously and can send back for evaluation. In 2013, the
60
survey reported positive general satisfaction with respect to
50
the mood at the company. The work climate, good flow of in-
40 30
formation and communication within the company and safe-
20
ty of the workplace were mentioned particularly prominently.
10
In comparison to the 2011 survey, our employees reported a 2010
2013 Total empl. / %
2014
2010
2013
2014
Empl. in management pos. / %
significantly higher opinion of their direct work environment, i.e. their workplace. This is the result of the modified branch design in the KiK-17 concept and demonstrates the success
We offer all employees excellent childcare for children under
of the reorganisation on the employee level.
3 years of age. In cooperation with neighbouring companies,
In 2013, in addition to the desire for higher wages, which are
we support a large daycare centre in the immediate vicinity
traditionally considered to be too low in the retail industry,
with very flexible opening hours. Our employees in Bönen
our employees saw potential for improvement in making
are pleased to take advantage of the childcare provider “Die
working hours more flexible and expanding opportunities
Merschzwerge” for their childcare needs.
for further and continuing education. With the expansion of
Employees wishing to work in management positions can
the KiK Academy to all of Germany in 2013, we fulfilled this
reconcile this with their family life. In 2013, 157 team leaders
desire.
worked part-time at KiK and in 2014, 183 employees took ad-
We are particularly pleased that employee identification with
vantage of this opportunity.
KiK as a company remained at 78%.
OPEN TO IDEAS AND CRITICISM
OUTLOOK
The open work climate at KiK is characterised by open and
In conjunction with our thematic focal point of the „Compa-
appreciative interaction. Regular employee performance
tibility of family and work”, we are planning to make working
reviews and institutionalised management meetings give
hours more flexible in the future. We will continue to support
employees the opportunity to answer questions directly and
the personal and professional development of all employees
promptly as they arise. Every employee who feels the need
with the KiK Academy. By implementing targeted communi-
to involve a mediating third party to clarify a problem can
cation measures, we will inform our employees more readily
write a “complaint letter” to the management or a superior.
of all existing opportunities so they can be utilised even more
These letters, which are treated with complete confidentiali-
frequently. And we are planning to continue to find out more
ty, are dealt with immediately in order to resolve issues wit-
about employee satisfaction at KiK and how we can improve
hout delay. In most cases, issues can be rectified by having
every two years. We will therefore continue conducting our
a conversation.
employee surveys.
Ideas can also be submitted to the branch supervisor.
28
■
ASSESSMENT
A focus on materiality The third KiK Textilien und Non-Food GmbH sustainability reports for 2013 and 2014 were created in accordance with the specifications in the German Sustainability Code (DNK). Dr. Ulrike Eberle corsus – corporate sustainability, Hamburg was commissioned to perform a critical assessment of the report and determine compliance with respect to the DNK criteria for strategy and process management. The transparency of the presentation, general completeness when applying the specifications and principle relevance in the topics of sustainability were assessed.
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GENERAL APPRAISAL This sustainability report from KiK GmbH was created in accordance with the specifications of the DNK. This critical review report is based on the final version of the “Sustainability Report 2015” dated 26 November 2015 without final formatting, the adjusted key performance indicator table from the sustainability report dated 14 January 2016 and the DNK compliance statement dated 6 January 2016. The audit was performed in accordance with the specifications of the DNK criteria. An audit of the reported indicators and the primary data collected by KiK was not the subject of the critical review. The report focuses the sustainability strategy on the topics relevant for a textile discounter business model. The approach is described in detail and plausible, relevant topics are identified. The topics identified as relevant were fully reported on. The report reads fluently, the language is open, clear and easily understandable. The submission of this report was accompanied by a refocusing on the sustainability strategy and redefinition of the sustainability topics that are important for KiK. This analysis is described in detail, relevant sustainability aspects were identified on the basis of the KiK business model. The analysis of the sustainability topics relevant for KiK and the clear focus on topics that are priorities for KiK as a discounter, is generally positive. Focusing the depth of the analysis (from manufacturing to trade to the customers) and refocusing the strategy, resulted in refocussing the sustainability topics addressed. According to the company, the realignment of the strategy demonstrated that the objectives to date were too ambitious. From the company’s perspective, the current objectives are more realistic. However, not all of the topics in the strategy identified as significant were directly addressed. In the future, measures and key performance indicators can therefore be more systematically linked to the strategy. As in the two previous reports, the second progress report is now largely transparent with respect to the criteria required by the DNK. The DNK criteria are largely fully reported on. Non-disclosures are explained in the DNK compliance declaration. On this basis, this report is a progress report that transparently states the critical errors and KiK’s response strategies, although KiK’s original ambitions have been reduced with a view to essential topics. In the future, we will focus on presenting the effectiveness of the highly focused commitment to sustainability and achieving the set objectives. The open handling and professionalisation of KiK in establishing dialogues with stakeholders must be positively mentioned. Dr. Ulrike Eberle corsus – corporate sustainability, Hamburg www.corsus.de
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