2001 CSR Plan PDF 1.0Mb

Kingfisher’s plan for corporate social responsibility October 2001
For further information contact Dr Alan Knight Kingfisher plc North West House 119 Marylebone Road London NW1 5PX www.kingfisher.co.
Introduction
Improving the lives of everyone we touch
I am delighted to introduce Kingfisher’s plan
for corporate social responsibility. Our aim is to
explain how our strategy for operating a company
as diverse and dynamic as Kingfisher in a
socially responsible manner will be put into
action. We also want to provide an overview
of some of the ways in which our operating
companies are already tackling different aspects
of social responsibility. But I want to stress that
this document is not intended to be read as a
report, nor as a substitute for one. It is a plan,
one element of which will lead to the publication
of a report by the end of the next financial year.
in areas such as ensuring that timber comes
from well-managed forests and finding new,
socially beneficial uses for end-of-life electrical
equipment. We believe that it is now
appropriate to co-ordinate these activities more
rigorously, at a Group level. In doing so I hope
we will contribute to a general sharing of ideas
and good practice, both internally and
externally, and encourage feedback from our
stakeholders. This plan marks the start of that
process, by introducing our new social
responsibility strategy and explaining how we
will implement it throughout our businesses.
For Kingfisher, social responsibility is about
three things - managing the risks to our
business, preparing ourselves for the future
and improving the lives of all those whom
our business touches. We are proud of the
achievements of our operating companies in
these areas. Many of them have been involved
in exciting, innovative and socially responsible
projects for some time. Others lead the debate
Ensuring that our commercial success and
growth is not achieved at the expense of
anybody's quality of life, or of the communities
and environments on which we have an impact,
presents complex and difficult challenges.
We don’t pretend to have all the answers, but
having a clearly defined plan is an important
first step towards achieving our ultimate aim of
operating in a socially responsible manner. It is
also important that we should be open about
what we are doing, and why we are doing it.
I have no doubt that there will be those who
would prefer to see us do more, or less, or
indeed nothing at all, in this area. To all of them
I would simply say ‘please look at this like any
other aspect of our business – read this
document, understand the business case for the
things we are trying to do, think about the
strategy, and then let us know your views’.
To be ready for the future we need to know
what the important issues are today and to
understand how adopting a strategy based on
current trends will either enhance or threaten
our business. To remain competitive, our
businesses will need to sell more products, open
more stores and employ more people. They will
need to do those things in a world where there
is pressure on natural resources, pressure to
reduce our impact on the environment and
pressure to ensure everything we do improves
the quality of life of everybody we touch.
These issues are not new to Kingfisher or our
operating companies. We’ve been reducing our
environmental impacts and building our
involvement in local communities for more than
a decade. Both in France and the UK our
companies have been recognised as leaders in
the field of environmental management, diversity
in employment and ethical trading. We have also
begun to address more complex issues such as
labour standards in the thousands of factories
that supply our products.
All these challenges offer us countless
opportunities to create products and systems
that will prepare us to operate in a more
sustainable, more responsible and probably
more demanding society. If we manage it well,
this process should enhance the efficiency,
brand and profitability of Kingfisher and
its businesses.
As a global retailer with a wide range of
experience across many different markets and
cultures, we are also in a good position to drive
forward the debate about socially responsible
business in a co-ordinated and intellectually
robust way – and we intend to do so. We aim to
be recognised as the major retailer with the
best understanding of the real issues of social
responsibility and sustainable development, in a
global context and from a balanced perspective.
This will require us to remain at the cutting
edge of both thinking and actions.
foreseeable future, but it is a valid and
important aspiration, and one that I endorse.
I also want to take this opportunity to stress
that our individual companies must decide for
themselves how to pursue that vision, in ways
that make sense for them, in their own markets.
Our commitment, at Kingfisher, is to provide the
inspiration, tools and support to help and
encourage them in that process.
We can and will give a strategic lead in this
area, through the work of the Kingfisher Social
Responsibility Committee, which has recently
been strengthened by the inclusion of some of
the most senior Directors from our business.
At their meeting in May of this year the
Committee agreed that their vision should
be ‘to improve the quality of life of all the
people we touch’. This is a difficult task, and
not one that we are likely to achieve in the
Sir Geoff Mulcahy
Chief Executive, Kingfisher plc
We will look forward to your comments on the
plan, and to reporting our progress.
Margaret Salmon
Chair, Kingfisher Social Responsibility Committee
Jean-Noël Labroue
Chief Executive, Kingfisher Electrical Group
Jean-Hugues Loyez
Chief Executive, Castorama Dubois
Investissements S.C.A.
The role of the Social Responsibility Committee
is to act as a focus for social and environmental
issues within Kingfisher. We have a wide remit
to review external developments in the areas
which will affect our customers, staff, products
and processes, and to ensure that operating
companies (all of whom are represented on the
committee) respond appropriately. In such a
diverse company, it is important that individual
operating companies devise their own solutions,
appropriate to their own markets and situations.
Our role in that process is to encourage, even
inspire, them to take action and to ensure that
good ideas and best practice are shared both
internally and externally.
After 21 years at Darty where corporate social
responsibility has always been about service
to our customers, I am looking forward to the
challenge of sharing the learning of all our
electrical companies across the Kingfisher
Electrical Group. Comet and Darty have already
benefited from a close working relationship in
this area and everyone involved in the business
is excited about the benefits to be derived from
partnerships, both internal and external to
our business.
Being an international business brings with it
huge opportunities, but means we now face new
challenges. Across the world, people are
becoming increasingly sceptical and mistrustful
of the actions and motives of big business, and
Kingfisher must retain the trust it has earned
over the last two decades.
Dr Alan Knight
Head of Social Responsibility, Kingfisher plc
People buy our products to improve their
home environment and make their lifestyle
even more convenient. People make our
products and work in our stores to earn the
means to improve their and their families’
quality of life. Together, they form a network
of people living throughout the world.
They are linked through the manufacture, sale,
use and even disposal of the products we buy
and sell. For me, corporate social responsibility
is about doing as much as possible to reduce
the negative environmental impact of that
process and enhance the positive social impact.
In other words having supply chains where
everyone benefits. By continuously working
towards that goal our companies will be well
prepared for a more sustainable future.
For the electrical business our main priorities
have been improving the treatment and
recycling of household electrical equipment
that has reached the end of its working life,
and in particular using that ‘waste’ creatively
to benefit society (for example, RENEW and
ENVIE). On a global scale, the most significant
of our impacts is the energy consumed through
the products that we sell, and we recognise that
encouraging energy efficiency is a major
challenge for our businesses.
One issue the public has become very concerned
about is the treatment of the people who make
our products. These people are as vital a part of
our business as our stores and offices. They live
and work in countries as diverse as the UK,
China, India and Russia, all of which have very
different working cultures and expectations.
This makes questions about the social and
environmental impacts of our products far more
complex than they may at first appear. We rely
on our ability to source products globally in
order to provide wider choice for our customers,
and keep prices competitive. In doing so, we
have to be sensitive to these concerns and able
to demonstrate what we are doing to address
them. The focus for Kingfisher is not to find
“perfect” factories but to work with suppliers
and potential suppliers to improve existing
conditions. We want it to make commercial
sense for our suppliers to invest in real
improvements, rather than creating a culture
of “tests” and “inspection”.
Contents
Bill Whiting
Chief Executive, B&Q plc
10 years ago a journalist asked me: “How much
tropical timber does B&Q stock?” I was unable
to answer the question, and he assumed that if
I didn’t know, I didn’t care. That conversation
marked a turning point for B&Q on social
responsibility. Starting with the appointment of
an environmental specialist in 1990, B&Q
embarked on a journey which has ensured the
company is now recognised as a leader in this
area. Everyone both in B&Q and in Kingfisher
is tremendously proud of the fantastic
achievements of the sustainability team and
we now look forward to sharing some of that
experience and expertise across the group.
Today it is not just journalists who are asking
questions about our products but a wide range
of stakeholders. As a Group we want to be
able to respond to and assure our customers,
our employees and our shareholders that
our products are made in safe and healthy
conditions, in ways that do not damage local
or global environments.
We all need successful, efficient businesses
and I believe that high workplace standards,
good health and safety, fair pay and conditions
and care for the environment are important
elements in business success.
Kingfisher global reach
2/3
What social responsibility means to Kingfisher
6/7
Range of issues
8/9
Product issues
10/11
Lifecycle of a fridge-freezer
12/13
Kingfisher companies and social responsibility
BCC
ProMarkt
Vanden Borre
Darty
BUT
Comet
Koçtas
NOMI
Réno Dépôt
B&Q
B&Q China
B&Q Taiwan
Castorama
Chartwell Land
E-commerce
Kingfisher Asia Limited
The B&Q Buying Office – India
16
17
17
17
18
19
20/21
22
22
23
24
25
25
26
27
27
28
29
Why is social responsibility important to Kingfisher?
32/33
Prioritising the issues
34/39
The ‘ladders’
40/45
Next steps and targets
46/47
How will Kingfisher help operating companies?
48/49
Appendix 1: History of policy development 1990 - 2000
50/51
Appendix 2: Kingfisher Group environmental and ethical
code of conduct for suppliers
52/54
How green is this report?
55
UK
CANADA
RÉNO DÉPÔT
Kingfisher
global reach
For more information on what each of our
operating companies is doing turn to pages 16-29
16
B&Q
COMET
CHARTWELL
LAND
307
258
TOTAL STORES
565
FRANCE
BRICO DEPÔT
BUT
CASTORAMA
DARTY
TOTAL STORES
40
79
110
183
412
BRAZIL
CASTORAMA
3
BELGIUM
2/3
NETHERLANDS
CASTORAMA
2
VANDEN BORRE 52
TOTAL STORES
BCC
54
25
GERMANY
CASTORAMA
PROMARKT
6
188
TOTAL STORES
194
POLAND
CASTORAMA
NOMI
11
32
TOTAL STORES
43
CZECH REPUBLIC
DATART
CHINA
11
B&Q
TAIWAN
SLOVAKIA
DATART
3
B&Q
5
TURKEY
KOÇTAS
5
ITALY
INDIA - JAIPUR
CASTORAMA
12
HONG KONG
B&Q BUYING OFFICE
KINGFISHER ASIA
LUXEMBOURG
PROMARKT
2
AUSTRIA
PROMARKT
3
KEY
HOME IMPROVEMENT SECTOR
ELECTRICAL AND FURNITURE SECTOR
BUYING OFFICES
PROPERTY COMPANY
All details are correct as at 4 August 2001
10
Do we really improve
quality of life?
4/5
People and communities across the world are linked by one
common aim – to increase their own quality of life and that of their
families. Kingfisher companies provide some of the products and
inspiration that help people across the world meet that aim, for
example through enabling them to enjoy their gardens or listen to
music wherever they are.
Social responsibility is about making sure that in helping our
customers improve their quality of life we do not destroy someone
else’s. That might mean improving the working conditions in the
factories that make the products we sell, using renewable energy
sources, or making sure our equal opportunities policies are robust.
What social
responsibility
means to Kingfisher
Our approach to social responsibility encompasses both threats and opportunities.
■
We must identify and manage the risks to our business;
■
we need to prepare ourselves for the future; and
■
we want to reap the benefits of improving the lives of all those whom our business touches.
But the term ‘social responsibility’ covers a huge range of individual issues (see illustration on pages 8/9).
They range from climate change to the diversity of our people, and they have impacts on all areas
of our business, from procurement and recruitment to corporate governance.
6/7
Addressing these issues is not some sort of ‘optional extra’. Whether we like it or not they will, sooner
or later, change the way we do business because they are driven by broader developments in society.
Those developments include:
A more sustainable society
A more transparent society
A more concerned society
Sustainability or ‘sustainable development’
is a cherished goal of policy makers almost
everywhere, even though it isn’t a concept that
consumers, or businesses for that matter, find
easy to relate to. It sounds rather theoretical,
but broadly it means meeting the needs of
today without compromising the ability of future
generations to meet their own needs. This
includes using natural resources wisely, avoiding
pollution and generally operating with one eye
on the future consequences of all our actions.
We are living in an increasingly informed
society. Instant global communication, cheap
international travel and the huge amount of
information reaching all of us every day means
that the public is more aware than ever before
of where and how products are made.
The environmental and social consequences
(both good and bad) of business activities are
easily identified and can be communicated
to a global audience in a matter of hours.
Companies that are revealed to be operating
in ways that don’t meet public expectations
can find themselves facing global campaigns
and unprecedented criticism.
Public expectations of corporate behaviour are
rising all the time. It is no longer sufficient for
companies to obey laws, pay taxes and make
profits. Increasingly they are expected to do
all these things as a bare minimum, and also
to contribute to making the world a better
place. There is no doubt that some of the
expectations now being placed on businesses
are unreasonable, but the message is clear.
Businesses must embrace the social
responsibility agenda.
In practice, operating sustainably comes
down to ensuring that in improving our own
quality of life we don’t, knowingly or
unknowingly, harm the quality of life of anyone
else, whether that person is in the next street
or the next generation.
The desire to achieve sustainability underpins
much of the new environmental regulation
which affects our businesses and it is at the
heart of many of the campaigns launched by
environmental groups. It is therefore a major
consideration for our businesses. Operating
sustainably is an important component of
behaving in a socially responsible fashion and if
we fail we will put our reputation at risk. More
constructively, we need to play our part in
helping to build a more sustainable world, while
at the same time preparing ourselves to operate
successfully in such a world.
An increasing number of consumers,
particularly in Europe and other parts of the
developed world, are both willing and able to
take their business away from companies who
don’t meet their expectations. Consumer
boycotts, and other forms of activism, are
increasing and multinational companies are
frequently the targets.
Electrical goods recycling
Packaging
Environmental Claims
Efficiency/Embedded energy
in products (climate change)
■
■
■
■
■
Toxics/chemicals
PVC
Timber and forestry
Peat
VOCs/Indoor air pollution
■
■
■
■
Provision of recycling
Staff awareness
Role of E - commerce
Product take-back
Range of issues
Kingfisher companies encounter a wide range of social and environmental
issues in the different phases of their operations.
These include:
Sourcing and manufacture
■
■
■
■
■
■
Child labour
Working conditions
Health and safety
Bonded labour
Slave labour
Prison labour
■
■
■
■
■
■
Fair wages
Cottage industry/home working
Freedom of association
Living conditions in dormitories
Global versus local sourcing
Transparency and accountability
■
■
■
■
■
Pollution
Supply chain auditing
and management
Supplier relationships
Consistency of standards
Sustainability of resources
Products
■
■
■
■
■
■
Electrical goods recycling
Packaging
Environmental claims
Labelling
Information
End of life issues
■
■
■
■
■
■
Energy efficiency of products
Embedded energy in products
Climate change
Toxics/chemicals
PVC
Timber and forestry
■
■
■
■
Organic gardening
Peat bog conservation
Volatile organic
compounds in paint
Indoor air pollution
8/9
Operations and processes
■
■
■
■
■
Distribution and transport
Green commuter plans
Out of town/in town stores
Energy use and carbon
dioxide production
Site management
(water, wildlife etc)
■
■
■
■
Waste management
Provision of recycling facilities
in stores
Role of e-commerce
Product take-back
Our people and our customers
■
■
■
■
■
Disability
Race and culture
Gender and sexuality
Age
Work-life balance
■
■
■
■
■
Training and life-long learning
Staff awareness
Payroll giving
Customer information
Health and safety in stores
Communities
■
■
■
Relationship with local store
neighbours/community
Relationship with corporate
community such as investors
Relationship with supply base
■
■
■
Charitable giving as cash or gifts in kind
Volunteering by staff
Stakeholder dialogue
WORKING CONDITIONS - GOOD OR BAD?
The spade is made in India. A local organisation works with
our production experts to ensure good working conditions in
all the factories that supply B&Q.
WASTE MANAGEMENT - GOOD OR BAD?
Good waste management makes our stores good neighbours,
saves money and helps the environment. It also keeps stores
tidy, making them pleasant places to shop.
PEATLAND DESTRUCTION - YES OR NO?
Extracting peat destroys wildlife habitats. B&Q offers a
full range of peat free composts and is phasing out peat
use entirely.
Product issues
There are issues connected with everything we sell. This diagram illustrates
just a few of the issues surrounding a family barbecue in the garden.
10/11
FOREST MANAGEMENT - GOOD OR BAD?
The garden bench comes from Bolivia. It is independently
certified by FSC as coming from a well-managed forest.
CHEMICAL GARDENING - OR NATURAL?
Many people want to garden without chemicals. That’s why
B&Q has an organic range.
MANGROVE DESTRUCTION - OR LOCAL PRODUCT?
Making charcoal from mangroves destroys important wildlife
habitats. Using charcoal from FSC certified forests gives
reassurance of good management. In some cases we can
even use charcoal from local woodlands, which keeps
coppice trees alive and helps birds and spring flowers.
PAINT - HIGH SOLVENT OR LOW?
Solvents (known as VOCs) given off by paint when it dries
cause pollution and contribute to climate change. Clear
labels provide customer information.
FACTORY POLLUTION - YES OR NO?
The barbeque comes from Taiwan. Our inspection teams
work with the factory to ensure it isn’t causing pollution.
Lifecycle of a
fridge-freezer
There are issues connected with every stage of the life cycle of our products.
This diagram illustrates just a few of the issues that occur during the life of a fridge-freezer.
1 Raw materials
- environmental impacts of mining
- ensuring health and safety of workers
2 Component suppliers
-
fair wage rates and safe working conditions
energy and water used in production
global warming gases emitted
waste reused, recycled or disposed
3 Manufacturers
- audits of environmental standards
- design for low energy use and ease of recycling
- packaging reduced or recycled
4 Kingfisher stores
- Kingfisher employs over 90,000 people
- staff trained to give advice on energy efficiency
and safe use of products
- health and safety for staff and customers
- support for schools and local community
regeneration
- energy used for heating and lighting
- waste minimised and recycled
- home delivery to reduce car use
5 Households
- fridges and freezers consume a large proportion
of electricity used in the home
- correct use leads to safe and healthy food and
lower electricity costs
- best new models can save up to £46 a year in
running costs
6 Repair and reuse
- jobs and training places created in community
projects
7 Safe disposal and landfill
- health and environmental problems associated
with waste sites
- hazardous waste separated
8 Recycling
- creation of new raw materials
and components
9 Transport
- deliveries timed to minimise nuisance in
neighbourhoods
- emissions of global warming gases and
particulates
12/13
MANUFACTURERS
- assembling the
finished product
COMPONENT SUPPLIERS
2
3
9
TRANSPORT
- moving stock and
materials mostly by
road, but also by sea
1
4
RAW MATERIALS
- iron
- copper
- plastics
- coolant gases
KINGFISHER STORES
8
5
RECYCLING
HOUSEHOLDS
7
SAFE DISPOSAL AND LANDFILL
- disposal of whole appliances or
parts that cannot be recycled or
remanufactured
- includes safe disposal of freon
gases (CFC and HFC)
6
REPAIR AND REUSE
- collection of old and broken
equipment for repair
- some reuse by low income
households
How much is enough?
Our companies have already achieved a great deal in addressing
social and environmental issues such as sound forest management,
repair and reuse of electrical goods and ethical trading.
Yet the more we do the more we realise we need to do, because of
Kingfisher’s commitment to continuous improvement, because of the
need to constantly track and respond to new and existing issues,
and because in order to lead the way we have to constantly strive
to be better. There are still serious global and local issues which
affect our business which we need to address.
Social responsibility is an ongoing commitment to a new way of
doing business which recognises our role in society and the need
to respect both people and the environment in our approach to
our business.
14/15
How do we
know what is right?
How do we know whether the forest photographed here is being
managed well or not? And what will happen when the photographer
isn’t around? Difficult questions like these accompany many of our
products. Finding the right answers requires complex judgements,
balancing economic, social and environmental agendas. As it
happens, this forest has been independently certified by the Forest
Stewardship Council (FSC), but for other issues we often have to
reach decisions on the basis of our own judgement.
Kingfisher companies
and social responsibility
Kingfisher has been developing a strategic
approach to social responsibility since 1990,
with environmental and social policies in place,
and mechanisms to drive implementation. More
details are given at Appendix 1. This approach
was effective, but it was developed at a time
when Kingfisher was made up of UK and
French retail chains. Since then, Kingfisher has
expanded across Europe and Asia, opening new
chains in Taiwan and China, establishing buying
offices in Hong Kong and (through B&Q) in
India, and acquiring businesses throughout
Europe. It is now appropriate, and necessary,
for Kingfisher to develop a social responsibility
strategy which reflects the global nature of
the Group by being flexible enough to adapt
to the diverse cultures it contains, while
ensuring a common approach and philosophy
across the world.
Kingfisher’s commitment to social responsibility
is based on a foundation of work already being
done by many of our operating companies, in
environmental management, ethical trading,
diversity (equal opportunities) and community
involvement. The next section of the plan
provides an overview of the kind of work that is
already underway. As you read it, bear in mind
that we are describing ‘work in progress’ and
that, as in any other area of business, some
projects have been more successful than others.
There are many more things that the operating
companies can and will do, building on this
foundation of experience and acquired skills,
as our work develops.
16/17
BCC
PROMARKT
SECTOR: ELECTRICAL
AND FURNITURE
LOCATION: NETHERLANDS
BCC is a Dutch electrical retailer. In common
with other European electrical retailers, its
main concern is managing the disposal of
customers’ waste electrical and electronic
equipment. It is part of an industry
foundation which develops ways of collecting
and recycling end-of-life electrical equipment
(refrigerators, washing-machines, TVs etc.).
The foundation is financed by a removal
contribution which is levied on electrical
appliances and paid by the customer for each
electrical appliance they buy. The final price
and the removal contribution are separately
listed on the price-ticket. Approximately 40%
of BCC customers return their old appliances,
and these are refurbished by projects
employing people who have been long-term
unemployed, and sold in special shops to
people on low incomes.
In BCC shops, energy efficient appliances are
clearly displayed and labelled by the supplier,
and by sending this label back to the supplier
the customer can receive a refund of fl.100.
There are battery collection points in all
stores for recycling of all batteries.
VANDEN BORRE
SECTOR: ELECTRICAL
AND FURNITURE
LOCATION: GERMANY
ProMarkt is a German electrical chain.
Being based in Germany, the company’s
environmental impacts are controlled by
strict national laws, and recycling is common
throughout the business. Old goods are
collected from customers’ homes as part of
their commitment to customer service. Most
of these are stripped down and recycled.
Part of the company, Wegart Grosslabor
GmbH & Co KG, is a laboratory which
processes films. The laboratory runs a waste
management project focusing on the
recycling of chemicals used in the developing
process. The project recovers 1.3 tonnes of
silver a year, all chemicals are reused and
where it has been impossible to recycle a
chemical, it is disposed of by specialist
agencies. The vast majority of film cases are
also recycled.
Going forward, ProMarkt intends to establish
a social and environmental working group to
develop the agenda throughout the business.
SECTOR: ELECTRICAL
AND FURNITURE
LOCATION: BELGIUM
Vanden Borre is the leading Belgian
electrical retailer. Belgium was one of the
first countries to introduce recycling
legislation, and as such all electrical retailers
are now obliged to take back any electrical
goods, large or small, from customers.
Vanden Borre is a member of ‘Recupel’,
an organisation that ensures recycling of
appliances and is funded by a levy charged
on all appliances sold. Vanden Borre has
made this levy clearly visible in-store and in
advertising, so that the customer clearly sees
not only the final price but also the levy.
At store level, general waste is recycled and
energy efficiency ratings are clearly displayed
and explained in press advertising. Battery
collection points are provided in all stores for
recycling of all batteries.
Vanden Borre recently made an agreement
with Belgian ‘kringloopcentra’ (which
translates as ‘recycling centres’), allowing
them to pick up old appliances once a week.
These centres collect and repair all sorts of
goods, particularly old electrical goods and
furniture. They employ people who are not
able to find a job, and sell refurbished
products mainly to low income families. The
project is similar to Darty’s ENVIE project,
and Vanden Borre hopes to develop its
relationship with the kringloopcentra in the
same direction.
DARTY
SECTOR: ELECTRICAL AND FURNITURE
LOCATION: FRANCE
Darty is France’s leading electrical retailer.
The company has been involved in issues
of social responsibility for many years and
has always aimed to achieve positive
social impacts even while tackling the
environmental issues raised by electrical
retailing. As a result, Darty has an
integrated approach to social and
environmental issues and is particularly
involved in social inclusion and waste
segregation and treatment.
Darty’s partnership with ENVIE is a prime
example of the company’s approach. It
began in 1985, when ENVIE was created.
ENVIE now runs a network of 30 companies
throughout France. These companies run two
year programmes that train people with
learning difficulties to repair domestic
electrical appliances. The appliances are
then sold on the second hand market (in
ENVIE ‘stores’) at a low price and with a one
year guarantee.
Darty has been involved in writing the
training tools for the ENVIE businesses,
but the company’s main contribution is to
provide ENVIE with electrical appliances on
a regular basis in all French regions. These
appliances are collected by Darty from
customers’ homes when new products are
delivered. About 10% of the appliances
collected are suitable for repair and donated
to ENVIE. The other 90% are dismantled and
sold for appropriate industrial treatment.
This project is part of Darty’s overall
programme of waste segregation and
recycling. In the Paris area (which includes
54 of the 183 Darty stores), waste from
stores is collected through a reverse logistic
system (backhauling) and sent to the waste
segregation and treatment centre (created in
1996) located at the distribution centre.
Once segregated, waste is sent to the most
appropriate industry for recycling or energy
production. Only 5.7% of Darty’s waste ends
up in landfill.
Darty is currently working to reduce the
impact of its own transport. Drivers attend
training sessions - run in partnership with car
suppliers and transport companies - to learn
how to drive in a way that respects the
environment. The company also sets rules
of conduct and controls emission standards.
A high proportion of the cars in its after
sale service fleet now use LPG and/or
unleaded petrol.
Darty is also involved in other social projects,
for instance with ARES, a project working for
the employment of homeless people, and
FACE, the Foundation Against Exclusion.
It also funds some medical research, mainly
into disability.
Inside a Darty store
18/19
BUT
SECTOR: ELECTRICAL
AND FURNITURE
LOCATION: FRANCE
BUT supports a French charity by giving
them furniture previously destined for
waste and disposal which they then repair
and re-use.
It is also worth noting that in France
diversity and equal opportunities are dealt
with in a different way from many of the
other markets in which Kingfisher operates.
Many of the issues – such as working hours
and maternity and paternity packages - are
dealt with through strong social legislation.
The record of all our French companies on
social issues is therefore quite different from
our other companies.
COMET
SECTOR: ELECTRICAL AND FURNITURE
LOCATION: UNITED KINGDOM
Comet is the UK’s second largest electrical
retailer. The company first adopted a
structured, targeted approach to social
responsibility in 1997, with the internal
publication of a three-year Environmental
Action Plan for the Millennium. The plan
set targets for improvement in a range of
operational and product related issues.
One of the first objectives of the plan was
to establish a company-wide recycling
programme for the 5,000 tonnes of
packaging waste being sent to landfill each
year. Zero In On Waste, an on-going
programme of change in waste management,
was launched in 1997. Baling and
compacting facilities were established at
Regional Distribution Centres and empty
space in lorries was used to return
segregated packaging to central recycling
facilities. As a result, in 2000, Comet
recycled over 600 tonnes of expanded
polystyrene, 3,000 tonnes of cardboard and
300 tonnes of polyethylene pallet wrap.
In recognition of the success of Zero In
On Waste, Comet won the award for Best
Industry Initiative at the 1999 UK National
Recycling Awards. According to ‘Materials
Recycling Magazine’, one of the awards
sponsors, “…Comet has set an excellent
example in its broad approach to recycling
and sustainable waste management.
Parts of the retail sector are still poor in the
way they approach recycling – if all adopted
the approach shown by Comet, waste
reduction and recycling would gain in leaps
and bounds”.
A more ambitious waste management
project, designed to achieve new uses
for waste items, was inspired by the work
undertaken in France by Darty and the
charity ENVIE. In August 2000 Comet
became one of the founding partners of
RENEW North East. Based in Gateshead,
RENEW provides high-quality vocational
training to the long-term unemployed
through remanufacture and recycling of
white goods (refrigeration, washing machines
and electric cookers) donated by Comet’s
Home Delivery Platform in the North East.
Over the first year of operation RENEW has
diverted over 5,000 appliances from the
waste stream, around 1,000 of which have
been remanufactured and re-sold in the
local community at prices accessible to
low-income families. 29 trainees have
completed the one-year RENEW training
course. As in France, there are now plans to
replicate the RENEW model across the UK,
and the second operation opened in Leeds in
August 2001. This project seeks to provide
training to people with disabilities as well as
the long-term unemployed.
Comet’s biggest environmental impact arises
from the consumption of electricity and gas
during the use of its products. Energy labels,
which rate appliances on a relative scale of
energy efficiency, are displayed prominently
at the point of sale on a range of white goods
(including refrigerators, washing machines,
tumble-dryers and dishwashers). All retail
staff now receive a full day of training which
explains the origins of the label, its context
in terms of European Climate Change Policy
and how to use the label during the sales
process. The quality of this programme has
been recognised by the UK Government’s
Energy Saving Trust.
Assessing appliances suitable for remanufacture at
RENEW
20/21
Comet is a partner in the Energy Saving
Trust’s Energy Efficiency campaign and since
1997 has been closely involved with national
activities to promote energy efficient
appliances through stores. During the
summer of 1999 Comet ran the first of four
promotions in which customers were offered
a reduction in the purchase price on a range
of efficient appliances when replacing their
existing models.
Comet also seeks to address the needs of
its disabled customers. Comet’s new format
destination stores are designed to provide
improved access for customers with
disabilities, with wide aisles and lowered till
counters which are more useful for
wheelchair users. Induction loops are fitted
at tills to improve the clarity and volume of
voice levels for hearing aid users. Mobile
induction loops are also fitted on the tunics
of trained sales staff. This year the company
has run a series of successful open days for
disabled customers to encourage feedback
on store layout, accessibility and staff
training. In partnership with RICABILITY, an
independent charity, Comet also provides
buying guides on key product categories for
elderly and disabled customers.
Comet has adopted Macmillan Cancer Relief
as its national charity. Macmillan provides
expert treatment and care through specialist
Macmillan nurses and doctors, information,
buildings for cancer care, and grants for
patients in financial difficulties. Comet has
set itself a target of raising £200,000 for
Macmillan by May 2002.
The most efficient products carry the EST’s
‘recommended’ label
Comet’s new stores give easy access for customers
using wheelchairs
NOMI
KOÇTAS
SECTOR: HOME IMPROVEMENT
LOCATION: TURKEY
Koçtas was founded in 2000 as a joint
venture between B&Q and Koç, the biggest
conglomerate in Turkey. The company has 5
stores in 4 different regions.
Being a young company, Koçtas is developing
its social responsibility activities. Its head
office has begun to introduce environmental
housekeeping measures such as reducing the
amount of paper used, collecting waste paper
for recycling, and saving energy through small
measures such as switching off lights.
The company is getting involved with its
neighbours through special events like
“day out in the garden” with people living
in a local retirement home and wall painting
activities for kids visiting stores.
Koçtas is one of the sponsors of Vehbi Koç
Foundation, the first large scale foundation in
Turkey. The foundation serves the community
by supporting existing active organisations.
It has sponsored and contributed to the
building of many schools, dormitories and
health care clinics.
After the earthquake which killed more than
25,000 people in western Turkey in 1999,
Koçtas was one of the companies which
donated money, clothes and other urgent
needs to the people living in the affected
towns and countryside.
In 2002, Koçtas is planning to initiate a
simple version of B&Q’s QUEST programme.
This will enable it to manage suppliers’
environmental, social and product quality
performance. The company has a policy of
not selling any product that is not certified by
the Institute of Turkish Standards.
Koçtas is aware that its social responsibility
activities will grow as the business grows.
SECTOR: HOME
IMPROVEMENT
LOCATION: POLAND
Based in Poland, NOMI is involved in two
social responsibility projects. It supports
orphanages financially through donations
in kind and the organisation of events at
Christmas, and offers practical assistance
to families in difficulty through donation
of products.
22/23
RÉNO-DÉPÔT
SECTOR: HOME IMPROVEMENT
LOCATION: CANADA
Réno Dépôt is a Canadian home
improvement chain, based in Quebec, with
several stores also in Ontario. The company
has run a number of environmental and
social responsibility programmes.
It has been particularly involved in waste
issues, and has set up a program for the
collection and recycling of cardboard, paper,
glass, plastics, and metals in stores. A pilot
project is currently being trialled in Quebec
to collect plants and earth for further
composting by a sub-contractor. This is
planned to be extended to other stores.
In addition, Réno Dépôt sponsors various
events in Canada with particular emphasis
on culture, education and sport. For
instance, in 1999, the company took part in
the “Corporation du 35ème Mondial des
Métiers”, which promotes technical training
for various jobs. The event involved 600
young people. It was also a partner in the
“Opération Patrimoine Populaire de Montréal
1999”, which raises awareness of the
architectural heritage of Montreal.
In 1995, in partnership with the Society
for Disabled Children in Quebec, the ‘Auberge
Réno Dépôt’ project (Réno Dépôt hostel) was
launched on the Papillon Camp site. Work
started in 1998 to build 4 houses,
each of which could accommodate 25
disabled persons, and to revamp the cafeteria
and other parts of the site. The company’s
associates, suppliers and customers have
funded the project over 5 years. A total of
$1.5m Canadian has been donated, of which
$1m was provided by Réno Dépôt and
$500,000 was donated by suppliers, much of
which was as gifts in kind.
Réno Dépôt also funds medical research
and many of its stores are involved in
local projects.
B&Q
SECTOR: HOME IMPROVEMENT
LOCATION: UNITED KINGDOM
For over ten years, through a culture of
constant improvement and inspiration and
working in partnership with its stakeholders,
B&Q has achieved significant improvements
in the environmental impact of its
operations, suppliers and products.
Timber is one of the key challenges B&Q has
had to face. Work began in 1991 with the
identification of timber sources and suppliers,
and the publishing of the company’s first
report on timber: ‘Tropical Deforestation – The
DIY perspective’. The company then set
itself two targets: that by 1993 all timber
sourcing would be transparent, and that by
1995 all timber would come from internally
identified well-managed sources. These
targets led to a programme of continuous
improvement. They also made it clear that
B&Q could not tackle this issue alone, and
that a credible international system of
independent certification and labelling was
needed. As a result, B&Q helped create the
now internationally recognised Forest
Stewardship Council (FSC). In 1995 B&Q
set a further target, that by 1999 all its
timber should be from independently
certified, well-managed sources. B&Q revised
and re-launched its timber policy in 2000.
B&Q paint also carries a label indicating the
level of VOC (volatile organic compounds)
emissions associated with it. This provides
customers with information which enables
them to make an informed choice. As a
result of the labelling scheme and
development of low VOC alternatives, the
company has achieved a 21% reduction in
average VOCs per litre sold.
has increased by 300% over the last two
years. Every person employed by B&Q
receives disability awareness training and by
2004 it is planned that every store will have
been refitted to increase accessibility.
B&Q’s environmental management
programme QUEST (which stands for
QUality, Ethics and SafeTy), has driven
environmental improvements with suppliers
and stores. In 1999, 84% of its suppliers
met or exceeded performance targets.
B&Q’s innovative approach meant that in
1999 and 2000, it was the overall winner of
the UK’s EASE Awards (Ease of Access to
Services and Employment). In 2000 it also
received the Business in the Community
Award for Innovation through Partnership.
In the community, almost 1,000 Better
Neighbour Grants (previously known as
Green Grants) have been awarded to stores
for use in local projects to date. Certain
waste products are also donated to local
community groups, benefiting them and
saving the business over £500,000 a year in
disposal costs.
B&Q’s sustainability programme,
achievements and approach were rewarded in
2001 when the company won one of the
UK’s highly prestigious Queen’s Awards for
Sustainable Development.
B&Q has also become well known for its
work on diversity. There is no upper age limit
to retirement or graduate recruitment within
B&Q, and the company has won much praise
for its positive approach to employing older
workers. The fifty-plus age group now
accounts for 18% of the B&Q workforce.
The company has also taken the lead in
improving customer service and access for
disabled customers and employees. The
number of disabled people employed by B&Q
Bill Whiting, Chief Executive of B&Q plc, receives
the Queen’s Award from the Lord Lieutenant of
Hampshire, Mrs Mary Fagin
Further information on the company’s work on
ethical trading can be found in the section on
B&Q’s buying office in India on page 29.
24/25
B&Q TAIWAN
B&Q CHINA
SECTOR: HOME IMPROVEMENT
LOCATION: CHINA
B&Q China is B&Q’s newest international
venture. With the opening of B&Q’s biggest
ever store in August 2001, B&Q China now
has 4 stores: 3 in Shanghai and 1 in
Suzhou. The chain plans further expansion
across China over the next 5 years.
The chain has already begun to take its
environmental responsibilities seriously and
has, like its international counterparts,
adopted measures to ensure this is applied
in all areas of business.
One of those areas is timber buying. The
stores already stock some wood products
certified by the Forest Stewardship Council,
and have recently introduced own brand
flooring which is FSC certified with full
chain of custody. There are however no FSC
certified forests (or wood product
manufacturers) in China, so all certified
products must be imported. B&Q China has
begun to educate its vendors and customers
on the issues where appropriate.
It has also begun to recycle materials in
store. All cardboard and plastic is collected
and reused by local customers. The next
stage will be to introduce sorting bins for
plastic, paper, metal and glass.
In terms of packaging, at present B&Q China
does not generate enough packaging material
to introduce a large scale recycling
programme. However, once volumes have
reached a workable level it will embark on a
programme for its own brand packaging in
conjunction with a packaging solutions
company, as well as encouraging its
suppliers to do the same.
SECTOR: HOME
IMPROVEMENT
LOCATION: TAIWAN
B&Q Taiwan is a small Taiwanese home
improvement chain. Environmental
management is a relatively new concept in
Taiwan, but the company has already begun
to implement projects. For example, all
packaging uses recyclable PP or PE plastic,
rather than PVC, and customers are
encouraged to recycle batteries at a battery
reclaim box in every store
In January 2002, the Taiwanese government
will launch a law requiring fluorescent tubes
to be recycled. B&Q Taiwan will participate
in this activity and is applying for a
recycling point.
The stores also stock environmentally
responsible products such as bins and bags
for sorting waste.
B&Q China also audits its suppliers and uses
Kingfisher supplier assessment guidelines
and procedures to do so.
Chinese Government policy towards
environmental issues is still developing. B&Q
China intends to monitor the progress and
further develop its environmental policies as
the laws change. Its key areas of concern
will be sourcing timber from well managed
forests, assessing suppliers on environmental
and human rights issues, and safe disposal
of harmful or toxic waste.
The opening of the huge Yangpu store in
August 2001
The opening of a new B&Q store in Taiwan
CASTORAMA
SECTOR: HOME IMPROVEMENT
LOCATION: FRANCE
The Castorama Group is France’s number
one home improvement retailer. In 1995 it
established a Quality department to address
the health and safety of customers and the
impact of products.
Over the past 3 years, this department has
run a successful project aimed at preventing
accidents in the home in collaboration with
CSC (Commission de Sécurité des
Consommateurs) and AFNOR (the French
standards organisation). As part of this,
several publications were developed in
partnership with expert organisations and
displayed in stores. They included a comic
book for children aged 5 - 10 to help them
understand potential hazards in the home
or while doing DIY; 8 leaflets on first aid at
home; and 5 leaflets on specific hazards in
particular rooms, including the kitchen,
garden and bathroom.
In 2000, in partnership with ADEME
(Agence De l’Environnement et de la
Maîtrise de l’Energie), Castorama published
a customer information leaflet which aimed
to raise awareness about the environmental
impacts of home improvement and gardening
activities whilst buying, using and disposing
of its products. Entitled ‘Comment bricoler
et jardiner en respectant l’environnement?
Les bons gestes’, 150,000 of the leaflets
were distributed through stores.
Castorama also takes responsibility for
improving the impacts of the products it
sells. Since 1999, the company has run
a supplier audit scheme to assess the
environmental impacts and business ethics
of its suppliers. It has developed a
partnership approach to its relationship with
its suppliers, and as a result was awarded
the ‘Grés d’Or’ by the FEEF (Fédération des
Entreprises et Entrepreneurs Français) in
2001, for its co-operation with one of its
suppliers, Mobois.
In order to tackle the timber issue Castorama
has increased contacts with professional
organisations such as Fédération Nationale
du Bois, state organisations such as Office
National des Fôrets, and environmental NGOs
such as WWF and Greenpeace. In November
2000 the company joined France’s WWF
timber working group – the Club Profôrets to encourage the use of certified labels such
as FSC by its suppliers. It is also involved in
the steering group for the development of the
ISO14000 standard for timber and forests. In
partnership with the Fédération Française des
Magasins de Bricolage, the company is now in
the process of requiring its timber suppliers to
give the timber species and origin on timber
product tags.
Also in 2000, a campaign in schools was
launched to raise children’s awareness of
the role of trees; a magnet board showing
the life cycle of a tree was distributed free
to those schools requesting it.
The company has been involved in a number
of social projects for many years. It sponsors
Sébastien Barc, a disabled sports champion
employed at Castorama, who won 3 medals
at the Sydney Paralympics in 2000. In 1996
it created a social fund to help employees
that face particular difficulties due to
accidents or disability. Since 1997, it has
supported an annual Telethon collecting
funds for research into genetic disorders.
It also funds the ‘Fondation de la Deuxième
Chance’ acting for social inclusion, and is
a partner in the French Federation for
Handisport Athleticism. Stores are also
involved in various local social projects on
their own initiative.
The garden centre at a Castorama store
26/27
E-COMMERCE
CHARTWELL LAND
SECTOR: RETAIL PROPERTY
LOCATION: UNITED KINGDOM
Chartwell Land is Kingfisher’s specialist retail
property company, purchasing and developing
sites for the Group’s companies in the UK.
Chartwell Land is recognised within the
property industry as taking a responsible and
active role on environmental issues. As
founder members of the Property
Environment Group, the company is
benchmarked annually against its peers in
the property market and has consistently
performed within the upper quartile.
Chartwell has replaced its environmental
policy with an Environmental Management
System which has clear objectives backed up
by measurable targets. These are externally
audited every year.
Chartwell Land has agreed to sponsor and sit
on the advisory panel of the new BREEAM
for Retail Scheme run by the Building
Research Establishment, which will measure
the environmental efficiency of new retail
buildings. Chartwell achieved a “Very Good”
rating in a BRE Environmental Assessment
Method assessment of its retail park at Great
Western Road, Glasgow, and is on target to
achieve an “Excellent” rating at the new
B&Q Warehouse at Imperial Park, Bristol.
Imperial Park, Bristol is being used as an
environmental best practice project with a
range of measures in place which have been
agreed with two firms of environmental
consultants. The object is to take forward
the learning points from this scheme into
future projects.
All consultants and contractors are asked
to demonstrate their commitment to
environmental issues before appointment
and Chartwell has produced a handbook for
tenants which will help them to make
informed decisions on environmental matters
when fitting out and occupying their stores.
Chartwell Land’s policy on social
responsibility is to put something back
into the local communities where it has
undertaken a major investment or
development project. Examples of this
include a sensory garden at a school for
disabled children in Glasgow, the
construction of a Women’s Centre and crèche
in Watford, refurbishment of the children’s
library in York and the provision of cycle
paths, off-site landscaping and a new bridge
over the River Nene at Northampton.
Aware of the growing perceptions that
e-commerce could encourage more
sustainable forms of retailing, Kingfisher was
one of the sponsors of the Digital Futures
project undertaken by Forum for the Future,
a UK-based sustainable development
organisation of which Kingfisher was a
member from 1996 until 2000.
This research concluded that whilst
e-commerce could make a significant
contribution to more sustainable retailing
this would only happen if companies
engaged in e-commerce adopted strategies
that ensured their operations had positive
environmental and social impacts. Kingfisher
is therefore committed to reviewing the
social responsibility of its e-commerce
activities by the end of 2001.
KINGFISHER ASIA LIMITED (KAL)
Opened in 1995 as Kingfisher’s sourcing office
in Hong Kong, Kingfisher Asia is responsible for
the co-ordination of Group sourcing operations
in most of South East Asia, where total export
volume in 2001 is expected to exceed £300
million, filling over 10,000 40ft containers.
This co-ordinated approach has proved so
successful that it has been extended to include
satellite offices in Shenzhen and Shanghai.
KAL has been a valuable partner in helping
operating companies deliver their environmental
objectives. It was KAL’s co-ordination that
resulted in the FSC certification of B&Q’s
wooden bathroom accessories and a substantial
proportion of garden furniture from Indonesia
and Vietnam.
Patio furniture sourced by KAL
KAL has also ensured that operating companies’
packaging polices are adhered to, and worked
with its own suppliers to reduce packaging.
Since 1997, the elimination of polystyrene
trays in toilet seat boxes has not only taken
them out of eventual landfill but has also saved
B&Q more than £100,000 a year.
With more than 1,000 factories in the region,
KAL’s biggest challenge is ensuring
that working conditions in supplier factories
comply with the Kingfisher ethical and
environmental code of conduct. This is
particularly difficult in China, where the culture
and business environment is different from
Europe, and where there is only a very limited
number of civil society organisations to help
guide the company’s approach. Nevertheless,
KAL was the first part of Kingfisher to field-trial
the code, and all new suppliers are now
measured against these criteria. Where remedial
action is required systems are also in place to
ensure that this is achieved. Third party and inhouse auditors carry out assessments of all new
factories and where possible KAL works with
suppliers to develop improvement plans. An
extensive training programme for auditors has
now been completed.
Kingfisher has co-ordinated a number of factory
specific improvement projects, including a trial
of the new independent SA8000 standard in
a bathroom accessory factory. In a cast iron
bench factory, KAL is into the fourth year of a
continuous improvement programme which has
seen the accident rate in the casting unit
decline by 90% since 1997.
KAL is also part of the local Hong Kong
neighbourhood, and has recently linked up
with a local charity called Crossroads, through
which unwanted manufacturers’ samples,
such as tools, are sent to self-help projects
throughout China. Some of the office staff
have also taken part in a 25km sponsored
hike, raising HKD 12,000 (£1,200) for a
local environmental group.
28/29
THE B&Q BUYING OFFICE – INDIA
Until last year most of B&Q’s buying from India
was completed via British-based importers. But
last year the company opened its own buying
office in Jaipur. The office now buys products
including leather tool bags and garden tools
from several factories. Although this office was
only opened recently, B&Q has been working on
supply chain issues for some time, with its
suppliers and import agents, achieving positive
results in a number of areas.
Looking carefully at working conditions is now
an essential component of the buying process.
By inspiring factory owners to make the
necessary changes, improvements to
profitability, final cost price and working
conditions have all been possible. Experience
shows that this approach ensures real changes,
rather than a cosmetic exercise ‘to keep B&Q
happy’. Experts in production techniques visit
every factory prior to orders being agreed and
again at regular intervals after the orders have
been placed. They are assisted by an
independent non-governmental organisation
called International Resources for Fairer Trade
(IRFT). The aim is to improve both the
productivity of the factory and the working
conditions. In November 2000, potential
suppliers attended a seminar in Delhi to
become aware of B&Q’s commercial and
ethical values.
Examples of this approach in action include:
Brassware There are major health and safety
issues associated with casting, polishing and
other manufacturing processes. Since 1992
B&Q has worked with its brassware suppliers to
address all of these issues. One joint initiative
aimed to reduce dust in the polishing unit by
improving extraction units. This has resulted in
a dramatic reduction in airborne dust. Together
with other improvements, this has both
increased productivity in the factory and
reduced health risks.
■
Hand knotted rugs B&Q was the first retailer
to have all its rugs certified by the Rugmark
scheme, an independent organisation that
certifies that the manufacture of rugs does
not use exploited or illegal child labour. In one
village where a high proportion of rugs destined
for B&Q are made, over 800 weaver families
have benefited from a health centre opened
jointly by B&Q and its supplier.
■
Garden gloves Castorama is also aware of
the potential ethical issues associated with
India. The company has moved its supply of
gloves away from a supplier with poor working
conditions and an unacceptable level of
pollution from the tanning process, and
intends to introduce continuous improvement
programmes for all Indian supplier factories
along the same principles as B&Q.
■
Garden tools One of the first projects
supervised by the new buying office has
significantly improved the working conditions
in a garden tool factory. This has resulted in
improved productivity and reduced the cost of
the products to B&Q and, ultimately, to their
customers. Everyone in the chain has benefited.
■
Women separating coconut husks from their shells
to make coir
■ Coir doormats These are made from fibrous
coconut husks. They are produced in a complex
network of cottage units around the Cochin
region of Southern India. B&Q, with the help of
IFRT, has helped improve the productivity of the
cottage units to increase wage levels. As far as
possible, health and safety and environmental
pollution controls have been established. The
company has also set up micro-credit schemes
in some areas to help those on low wages
access credit.
The buying office is already supporting the local
community in other ways. B&Q and its Indian
business partner have agreed to commit 1% of
turnover to local causes. They are planning to
use these funds to help meet the needs of
disabled people in India and other countries
through a working relationship with Motivation.
This is a charity which designs wheel chairs
appropriate for use in developing countries,
and trains local organisations to build them.
Is this product ready for
a sustainable society?
30/31
As society becomes more sustainable there will be further,
far-reaching changes to the way our products are designed,
manufactured, used and disposed of. For us this could be a threat
or an opportunity - it all depends on how ready we are.
To be ready for this future we need to be able to spot trends in
environmental and social issues that will affect our ability to do
business now and in the future, and be flexible and creative enough
to respond to them in all the markets where we operate.
This is no small task. There are hundreds of issues that could affect
us or our products. We must understand and manage them before
they start to dictate to us.
Why is social
responsibility important
to Kingfisher?
The business case for action
Can social responsibility support Kingfisher’s
plans for growth and commercial success? What
is the business case and where will we see the
benefits? Well, we don’t yet have any way of
quantifying the benefits (and nor, we believe,
does anyone else), but here are six areas in
which we expect that social responsibility will
help our businesses.
Being ready for the future
A successful social responsibility strategy
will allow us to identify and manage issues
and trends which have the potential to
undermine or enhance the business plans
of our operating companies.
Respect for people
Product innovation
We are a multi-cultural business. The more
we understand cultural diversity, the more we
understand our customers, staff and suppliers.
Empathy with people’s values makes our
companies more attractive places to work at
all levels. For example, working in the local
community provides a great opportunity to
create a real sense of teamwork and belonging
in the organisation. This in turn helps to keep
staff turnover low and build valuable expertise
and experience.
New and innovative products keep our stores
exciting and help us meet customer desire for
choice and value. As the leading retailer in
many of our markets we have to be ahead of
our competitors in shaping markets for new
products and services.
Stores that communities welcome
Creating stores which are active and involved
members of the neighbourhoods in which they
operate improves staff morale, local awareness,
recruitment, and customer loyalty.
Peat free compost, energy efficient
refrigeration, organic pest control – all these
are products our stores did not stock until an
understanding of the environmental issues
led us to investigate alternatives to existing
product lines.
In a highly competitive retail market, it is
important to be able to identify challenges and
opportunities before our competitors. If we can
do this we can help to shape the way the
markets for our products are moving.
32/33
Saves costs
A great deal of environmental management is
simply about reducing the amount of resources
we use, or using them more efficiently, to reduce
the amount of waste we produce. Tackling
climate change, for example, means reducing the
amount of CO2 (and other greenhouse gases) we
produce when we burn fuel in our vehicles or use
electricity in our stores and offices. The best way
to do this is to use energy as efficiently as
possible, providing cost savings for the business.
The same goes for reducing waste in our stores –
the cost of disposal goes down as the volume of
waste decreases.
SOCIAL RESPONSIBILITY, DOING NOTHING IS NOT AN OPTION
CONSEQUENCES OF INACTION BENEFITS OF SUCCESS
Staff embarrassed/ashamed
Staff discomfort with job
Brand
The reputation and behaviour of any operating
company can enhance the overall reputation of
the Group. If badly managed it can also damage
not only the Group’s reputation, but that of all
the other operating companies.
A good reputation depends on keeping the
respect, trust and goodwill of not only our
customers and shareholders, but all the people
who have an influence over our ability to run
a successful business: employees, suppliers,
investors, politicians, campaign groups, local
communities across our supply chain - to name
but a few. Our ability to manage our perceived
impact on the issues important to our
stakeholders will be fundamental to gaining
the trust of our customers.
Confidence in job
Poor staff recruitment
Quality recruitment
Poor retention of staff
Higher retention
Detachment of staff
Customers reject shops
Anything that improves staff recruitment,
morale and retention increases the quality of
our customer service and saves costs. We can
take these savings even further if we encourage
our suppliers to follow our example, so we can
continue to provide great value for our
customers and investors.
Proud staff
Customers reject products
Mistrust from customers
Disappointment
Involvement
Preferred choice for customers
We are a trusted brand
Respect and loyalty
A story that adds value
Low quality/cynical suppliers
High calibre suppliers
Ignorance about supply chain
Buyers understand supply base
Skeletons in cupboard
Good PR about our supply base
Issues manage us
Not ready for future
Business strategy undermined
We become defensive to outside world
Planners reject our stores
Uncompetitive
We manage issues
Ready for future
Strategy re-enforced by our action
Outside world celebrates our success
Planners accept, even welcome us
Better than our competitors
Prioritising the issues
Challenges of social responsibility in a global company
We cannot tackle all the issues we have identified separately (see list on page 8/9). Our approach is therefore
to recognise key trends in our planning, each representative of developing themes in the societies in which
we operate, and incorporating several individual issues. They all have the potential to affect, either positively
or negatively, Kingfisher's ability to do business now and in the future. There is therefore a strong business
case for all operating companies to devote time and resources to addressing each of these trends.
Operating companies will, however, have to
set their own orders of priority. They will do this
based on an understanding of which trends
present the greatest threats or opportunities
to their business and where they can have the
greatest impact.
But operating companies do not work in
isolation. Because we are all part of one group,
the actions of one company will impact directly
and indirectly on all the others. There will
therefore be a minimum level at which all
companies in the Group will need to address
each of the trends, to protect the reputation
and business strategy of Kingfisher as a whole.
34/35
The 12 trends are:
THE WAY WE TREAT ALL OUR
PEOPLE IS BECOMING MORE
IMPORTANT THAN EVER
EVERY PRODUCT WILL SOON BE
TELLING A STORY - AND THEY
ALL NEED TO BE GOOD
COMMUNITIES WILL REJECT
BUSINESSES WHO ARE NOT
GOOD NEIGHBOURS
Our ability to serve, employ and buy
products from people across the world will
increasingly depend on our ability to
understand and work in harmony with
diverse groups of people. If we can
demonstrate that we have taken their needs
and expectations into account, we will
maintain their custom and loyalty, and earn
respect as a responsible company.
Our customers increasingly regard us as
having responsibility for everything to do
with the products we sell. Every product we
sell has a story. The first chapter describes
its journey from raw materials, through
factories and stockrooms, and into our
stores. The second chapter follows the
product to our customers' homes and into
use. The final chapter describes the disposal
of the product, followed by possible
refurbishment and re-use, before final
disposal or recycling.
In a world of increasingly competitive retail
markets, the trust and goodwill of the local
community is becoming a vital ingredient in
attracting customers and retaining staff.
Being seen to add value and to act
responsibly in the communities where we
operate is crucial to our business success.
Our customers have diverse needs and
expectations
Customers and employees alike rightly
demand that everyone who works or shops
with us is treated with dignity, and has an
equal opportunity to access our stores,
products and services. Our employees must
also be given proper opportunities to achieve
their potential. In all aspects of our
business, ‘equal opportunities’ must mean
exactly what it says if we are to deliver
against society’s developing expectations in
this important area.
These stories are becoming easier to tell and
are arousing greater interest. Our customers
can all too easily see how our products are
being made - by watching television, reading
books and newspapers, or visiting Internet
sites. To avoid any risk of being embarrassed
or ashamed by what they discover we have to
ensure that we know about each stage of the
story and understand all the significant
impacts. Then we can take whatever action
is necessary to create a story we can take
pride in. This is never going to be easy.
There are simply too many products on our
shelves, and too many issues to come to
terms with. But we must continue to work
with our suppliers, and our other
stakeholders, to set sensible priorities and
reduce the uncertainties.
A supplier’s factory in China
A B&Q-sponsored community project in
Croydon, England
The public is more sensitive than ever to the
impacts of business on their local
neighbourhoods, and can make their views
known forcibly. Together with local and
national governments, they are aware of the
importance of sustainable development and
are looking to businesses to help them
implement sustainable solutions to local
problems. We need to make sure that we are
part of these solutions and not the source of
any of the problems. Our aim must be to
develop local community involvement
programmes that build on our existing skills
and deliver real benefits.
OUR SUPPLIERS NEED TO BE
CLEANER AND GREENER TOO
WE ARE SELLING MORE WOOD, BUT IT IS
BECOMING HARDER TO FIND
There is not enough timber growing on
the planet to sustain current patterns of
consumption indefinitely. According to
Friends of the Earth, if all countries
consumed at the level the UK does today
we would require at least four planets to
supply the amount of wood they would
require. Yet the trend is for us to use
more and more wood and wood products.
Global wood consumption has risen by
64% since 1961.
News of this kind of pollution in our supply
chain could damage our reputation
Customers do not want to buy products that
have caused excessive pollution during
manufacture. They expect us to ensure that
our suppliers achieve the same high
environmental standards as we do ourselves.
This presents a huge challenge for us. Global
supply chains are complex, and to achieve
uniform standards through them is a big
undertaking. However, there is a major
incentive for us to take effective steps to
help our suppliers manage their
environmental impacts. News of a pollution
incident anywhere in the world, or poor
environmental management at a factory, can
travel via television and the Internet to our
customers across the world in a matter of
minutes. If the factory is revealed to have
been making goods for a Kingfisher company
our reputation will suffer, regardless of where
the fault and legal liability for the situation
may lie. This situation may not be 'fair' but
it is a fact of life.
Certification allows us to trace the wood we sell
from the forest …
… to the factory, and finally to our stores.
Consumers are increasingly aware of the link
between the wood they buy and the highly
publicised loss of rainforest and old growth
Northern forests. They want to know that the
decking or laminate flooring they buy from a
Kingfisher store has not made these
problems worse. Schemes to certify timber
from well-managed forests already exist.
Organisations such as the Forest
Stewardship Council provide the reassurance
that we and our customers want, and we
believe that we are approaching a position
where no reputable retailer will attempt to
sell timber that is not guaranteed to have
come from a well-managed forest. The huge
DIY chains in the USA are beginning to
match the commitment of the pioneers in
this area, like B&Q and Castorama, and seek
their own supplies of certified timber. Yet
supplies of certified timber are not increasing
in line with demand. Forestry is a long-term
business and achieving certification can
require major changes in practices. We
believe this issue will become a source of
competitive advantage, which provides a
strong business case for us to ensure that we
have sufficient supplies of certified timber
available for all our requirements.
36/37
CHEMICALS ARE CAUSING INCREASING CONCERN AND CONTROVERSY
As a society, we rely on a huge and
increasing range of chemicals - both natural
and man-made - to maintain our quality of
life. As our understanding of human health
and environmental science improves, we are
discovering new ways in which these
chemicals interact with the natural world,
and identifying new gaps in our knowledge.
There is however a lot of uncertainty
surrounding cause and effect, which has
fuelled the recent controversies over many
chemicals. Some of these concerns have
clearly been legitimate. Others appear to
have been largely unfounded.
It is clear that the number of chemicals
coming under public scrutiny will increase.
As retailers, we will continue to find
ourselves in the middle of difficult and
emotive arguments between groups of people
who hold strong but opposing views on the
role of chemicals in society. Health and
environment campaign groups will put
pressure on us as responsible retailers to
remove any chemicals suspected of being
harmful from our shelves. Yet the chemicals
industry will argue that many of these
chemicals are essential and that there is no
conclusive proof that they are harmful. The
only certainty is that doing nothing will not
be an option for us.
In response, we must be certain that the
actions we take are both appropriate for, and
in proportion to, the scale of the problem.
We will need to examine and deal with the
issues carefully, looking at all the risks to
human health, to the environment and to our
reputation, and reach our own decisions on
acceptable levels of risk and appropriate
levels of response.
We need to plan what happens
when our customers want to
dispose of the products they
bought from us
Our society is generating ever-increasing
quantities of waste. For example, as the
number of electrical appliances in our
customers' homes increases, the average
lifespan of these products is decreasing.
Electrical waste is growing three times as
fast as domestic waste in the EU and
national governments are now looking to
retailers to take back waste products. Some
of our electrical chains are already required
to charge a levy on the appliances they sell,
to cover the costs of disposal.
Clear product labelling helps customers make
better informed choices
Our experience has been that where we have
taken a pro-active approach - such as VOC
labelling of paint at B&Q - the benefits have
significantly outweighed the time and costs
involved, because we have been able to
manage the issue at our own pace. Where
have had simply to react to issues for which
we were not prepared - such as fine dust and
formaldehyde fumes released from sawn MDF
- resolving the problem has been more
difficult and more disruptive to our business
and our customers.
A typical levy charged on electrical goods
in Belgium
We therefore need to develop innovative ways
to help our customers to deal with waste
products. We are already attempting to
develop products which can be recycled and
we provide advice about the best way
of disposing of certain products. This trend
needs to be extended to all our product lines.
PACKAGING WASTE WILL BECOME
A BIGGER FINANCIAL WASTE
As part of the pressure to reduce waste,
retailers and producers are increasingly
being held responsible for product
packaging. This is adding significantly to our
business costs - this year B&Q could spend
up to £1 million to meet its obligations
under UK packaging laws, in response to the
EU packaging directive.
Baling cardboard makes it cheaper and easier to
transport and recycle
In the next ten years, the most cost effective
way of managing packaging waste will be to
make sure we do not produce it in the first
place. This will mean developing new ways
to transport and store products, for example
using reusable toteboxes, and developing
disposable packaging materials that are
recyclable or biodegradable.
WE WILL BE JUDGED BY THE WAY THE PEOPLE WHO
MAKE OUR PRODUCTS ARE TREATED
Competitive pressures and demands for
cheaper products are leading almost all
businesses to source products and raw
materials globally. Yet the public does not
trust multinational companies to source
responsibly. As retailers, we are being held
more and more accountable for the working
conditions of the people who make our
products. Media reports have shown
appalling conditions and child labour in
factories in the developing world, making
products for sale in the developed world.
As a result, any company sourcing from the
developing world is regarded with suspicion.
But the concerns are not all about exploiting
producers in far corners of the globe. There
are ‘sweat shop’ scandals in developed
countries too. Multinational companies are
also regarded as damaging their home
economies by not sourcing products locally.
In response to these concerns some retailers
now insist that their supplier factories are
independently certified against agreed
standards. Other companies have drawn
up codes of conduct and use local auditors
to check compliance. These approaches
do provide some reassurance, but there
are no simple answers that we can apply
in every circumstance.
We need to be trusted to buy products
wherever we choose and we can only do that
by achieving and maintaining good working
conditions in all the factories where our
products are made. That is what our
customers want us to do. It is also what we
want to do because clean, safe factories,
where the staff are treated with dignity,
produce the high quality products we need.
The most effective way of achieving this is
for us to develop constructive partnerships
with local factory owners and managers.
Where standards are low we believe it is
more responsible to offer help and
encouragement than to threaten to walk
away. Our experience is that standards can
be raised more effectively through inspiration
and education than by imposing conditions
which may appear arbitrary or unreasonable.
With our global expansion in places like
China and Taiwan, the people we help by
improving their working conditions could
soon also be our customers - and we must
treat them with respect.
A typical dormitory for workers at a Chinese factory
38/39
MOVING MORE STOCK IS GOOD MORE TRAFFIC CONGESTION
IS BAD
CLIMATE CHANGE EQUALS
CHANGES TO HOMES APPLIANCES WILL CHANGE TOO
WHEN WE THROW RUBBISH
AWAY IT TAKES OUR PROFITS
WITH IT
Over the next 20 years, car traffic could
grow by more than a third. In the EU, growth
in passenger and freight transport currently
outstrips growth in GDP, with freight
transport growing fastest. Increased
congestion in and around urban centres
means a less reliable distribution network,
adding to the cost of transport and
undermining our competitiveness,
particularly in towns and cities, where
congestion is worst. Air pollution resulting
from increased congestion in urban areas is
also thought to contribute to respiratory
problems such as asthma amongst
vulnerable groups.
World energy consumption almost doubled
between 1970 and 1999. It is projected to
rise by 59% between 1999 and 2020. The
majority of this increase is likely to be met
by burning oil and coal to produce electricity.
Yet burning fossil fuels such as oil and coal
is one of the biggest sources of carbon dioxide
(CO2), and contributes to climate change
through global warming. The consequences of
climate change - flooding in low lying areas
and shifting of climate zones which will affect
plant growing seasons - have already led some
governments to tax energy use in order to
encourage a reduction in CO2 emissions.
Energy use in our businesses is likely to bear
increasing taxes. B&Q and Comet are already
paying an energy tax.
As the amount of 'stuff' society consumes
increases, so the amount of waste produced
increases. Until now it has been possible to
dispose of waste that is not reused or recycled
in landfill sites, but the amount of land
available for these huge holes in the ground
is finite, and the public are increasingly
concerned about their environmental and
health impacts. Incineration is an alternative,
but not a popular one. No-one wants to live
next to either a landfill site or an incinerator
and the costs of waste disposal are set to
increase sharply.
To ease these problems, local authorities are
increasingly reluctant to grant planning
permission for offices and stores, unless
transport mechanisms which do not rely on
cars are included in the plans. Wherever we
are in the world, concerns about congestion
and health will continue to be important to
the local communities around our stores.
Incorporating environmental and health
concerns into our distribution and store
siting strategies will make our logistics more
efficient, and make sure we don't make
existing traffic problems worse.
Traffic congestion is an increasing problem in the
towns and cities we serve
As international agreements such as the Kyoto
Treaty strengthen, there are likely to be more
financial incentives to use less energy, and to
switch to renewable sources such as wind or
solar power. The biggest impact on our
businesses will be in the products and
appliances we sell. An increasing proportion
of home improvements will be undertaken to
improve the energy efficiency of our customers’
homes. We need to be ready with the products
they will need. There will also be commercial
benefits in developing electrical products
which enable our customers to use energy
much more efficiently or to choose alternative
forms of energy. This trend is already apparent
in energy efficiency labelling, but we will see
it become a major element in customer choice
as the measures that will be taken to reduce
climate change begin to bite.
In the next 10 years, the 'zero waste' store,
distribution centre or construction site will
not only be a possibility, but an economic
necessity. To get there, we need to learn
how to produce less waste, and how to deal
creatively with the waste materials we
produce, through reuse by stores or local
charities, or recycling to form new products
(such as the recycled plastic trellis some of
our stores already sell).
Old appliances waiting to be recycled
The ‘ladders’
Our way of managing the trends
To be successful, we need to make sure that all operating companies have the same approach to social
responsibility, not in what they do but in the principles and thinking that underpin their actions. One of the main
challenges for Kingfisher is to develop a strategy flexible enough to accommodate the differences between our
businesses whilst reflecting a common vision.
In order to manage this complexity we have developed a series of twelve ladders – one for each of the twelve
trends we have identified in the previous section of the plan as being of critical importance to our business.
Each ladder has four rungs, corresponding to the four different business positions each operating company
could choose to take in response to that trend.
40/41
The four rungs are:
1
LEADERSHIP
Companies on this rung will be actively involved
in the debate on that particular trend or issue.
They will be recognised as ‘best in class’ and
making a significant contribution to the overall
discussion in society.
2
CREATING AN OPPORTUNITY
Companies on this rung will have used the
trend to create a business opportunity, whether
from cost savings, an improved marketing
position or in some other way.
3
MANAGING THE ISSUES
Companies on this rung will be managing the
trend in a positive and comprehensive manner.
They will have a good understanding of how the
trend will affect their products, processes and
people and be willing to discuss the issues with
interested parties.
4
MANAGING THE RISK
Companies on this rung will take a reactive
approach, implementing only those actions
which are essential to protect their business
from current trends.
Actions required by each
operating company
Operating companies are asked to look at the
twelve trend ladders in the context of their own
business, in their own market. They then need to
do four things:
■
Define the actions which would be appropriate
to each rung of each ladder. Even though they
may not intend to reach the higher rungs on
some of the ladders, they should still define
the actions which would be required to achieve
each rung.
■
Determine their current position on each ladder.
■
Decide the position they will seek to achieve
and the appropriate time scale for doing so.
■
Example ladder
GENERIC CRITERIA, ON A NATIONAL LEVEL,
FOR SOCIAL RESPONSIBILITY TRENDS
LEADERSHIP
Actively involved
in the debate and
recognised as
‘best in class’.
■
Actively involved in the debate
■
Publicly recognised as best in class in this area
by a third party
■
Social responsibility and sustainable development
is an integral part of company strategy
OPPORTUNITY
Using the trend to
create a business
opportunity.
■
Achieving commercial benefits from environmentally
improved products and using external communication
to promote brand and generate sales
■
Creating a feeling of pride and loyalty through staff
awareness of company actions in this area
■
Reducing operational costs by managing
environmental issues
■
Promoting brand awareness through social
responsibility communication
■
Maintaining close working relationships with suppliers,
leading to improved co-operation and a more integrated
supply chain, and to innovation in products and/or operations
■
A systematic approach to reducing environmental impacts
■
Staff training includes environmental and social issues
■
Suppliers’ audits completed, following company guidelines
■
Undertake projects tackling specific aspects of issues
■
Ability to provide customers with information regarding
the environmental impact of products
■
Ability to communicate with stakeholders
■
Ability to offer alternative products when a significant
environmental impact has been identified
■
Identification and evaluation of risks to business in this
area either because a product or operation is harmful
or controversial
■
Conscious decision on actions having evaluated
business risk
Produce an action plan for discussion with
the Kingfisher Social Responsibility Team.
The ladders are outlined here, with a completed
‘generic’ ladder. When completed the ladders will
allow us to plot progress across the Group and
enable the Board and the companies to see at a
glance where we are doing well and what further
steps are necessary to achieve our aims.
MANAGING
THE ISSUES
Managing the
trend in a positive
and comprehensive
manner. Willing to
discuss the issues
with interested parties.
MANAGING THE RISK
A reactive approach,
implementing only
those actions which
are essential.
42/43
he way we treat all our
eople is becoming more
mportant than ever
Every product will soon be
telling a story - and they all
need to be good
Communities will reject
businesses who are not
good neighbours
Our suppliers need to be
cleaner and greener too
d
e
t
e
l
p
m
o
c
e
l
b
a
o
u
T
d
i
v
i
s
d
e
n
i
i
n
a
by
p
m
o
c
g
n
i
t
2
a
0
r
0
e
2
op
l
i
r
p
A
y
b
We are selling more wood,
but it is becoming harder to find
Example ladder continued
GENERIC CRITERIA, ON A NATIONAL LEVEL,
FOR SOCIAL RESPONSIBILITY TRENDS
LEADERSHIP
Actively involved
in the debate and
recognised as
‘best in class’.
■
Actively involved in the debate
■
Publicly recognised as best in class in this area
by a third party
■
Social responsibility and sustainable development
is an integral part of company strategy
OPPORTUNITY
Using the trend to
create a business
opportunity.
■
Achieving commercial benefits from environmentally
improved products and using external communication
to promote brand and generate sales
■
Creating a feeling of pride and loyalty through staff
awareness of company actions in this area.
■
Reducing operational costs by managing
environmental issues
■
Promoting brand awareness through social
responsibility communication
■
Maintaining close working relationships with suppliers,
leading to improved co-operation and a more integrated
supply chain, and to innovation in products and/or operations
■
A systematic approach to reducing environmental impacts
■
Staff training includes environmental and social issues
■
Suppliers’ audits completed, following company guidelines
■
Undertake projects tackling specific aspects of issues
■
Ability to provide customers with information regarding
the environmental impact of products
■
Ability to communicate with stakeholders
■
Ability to offer alternative products when a significant
environmental impact has been identified
■
Identification and evaluation of risks to business in this
area either because a product or operation is harmful
or controversial
■
Conscious decision on actions having evaluated
business risk
MANAGING
THE ISSUES
Managing the
trend in a positive
and comprehensive
manner. Willing to
discuss the issues
with interested parties.
MANAGING THE RISK
A reactive approach,
implementing only
those actions which
are essential.
Chemicals are causing
increasing concern and
controversy
We need to plan what happens
when our customers dispose of
products they have bought from us
44/45
Packaging waste will
become a bigger
financial waste
We will be judged by the way
the people who make our
products are treated
Moving more stock is good more traffic congestion is bad
Climate change equals changes
to homes - appliances will
change too
d
e
t
e
l
p
m
o
c
e
l
b
a
o
u
T
d
i
v
i
s
d
e
n
i
i
n
a
by
p
m
o
c
g
n
i
t
2
a
0
r
0
e
2
op
l
i
r
p
A
y
b
When we throw rubbish away it
takes our profits with it
Next steps and targets
We are a global company with global impacts and global responsibilities. The aim of our
business is to improve our customers’ ability to enjoy their home and lifestyle, but without
damaging anyone else’s quality of life, whoever and wherever they are. To protect our
business and make the most of market opportunities we need to be able to predict trends
in the environmental and social issues that affect our ability to do business, and respond
to them effectively. The more we do to address our responsibilities the more we realise
we have to do. And we recognise that there are thousands of possible solutions to the
challenges of social responsibility.
Having a plan is an important first step in tackling the challenges of social responsibility.
Now we need effective ways of carrying this work forward and communicating results to
our stakeholders in ways they will find credible.
46/47
1 Visits and presentations
4 Register of impacts and indicators
6 Monitoring progress
The Social Responsibility Team will continue its
programme of visits to operating companies, to
help develop plans and learn about progress.
Operating companies will need concise, reliable
and easily accessible information on the
environmental and social impacts associated with
particular materials and processes. They will also
need to acquire a detailed understanding of
many of the issues and trends highlighted here,
and be aware of appropriate indicators against
which they can benchmark their progress. We
will therefore be establishing a register on the
Kingfisher website as a resource for all our
operating companies and with links to other
relevant information sources. Companies that
have acquired particular knowledge or expertise
of issues will be invited to use the register to
share their experiences within the group.
The Kingfisher Social Responsibility Committee
(SRC) will review the progress of each operating
company on a regular basis.
TARGET: Each operating company will have
received at least two visits by the end of 2002.
2 Ladders
We will formalise individual operating
company ladders.
TARGET: All ladders to be complete and
agreed by April 2002.
3 Building a community
We will establish Group-wide Fora on
key issues which concern more than one
company, so that knowledge and ideas can
be shared widely.
TARGET: The SRC will have formally reviewed
information from all operating companies by June
2002, and again in December 2002.
7 Reporting progress
TARGET: The format for the register will be finalised
by December 2001 and the register completed by
December 2002.
We are committed to communicating our
progress to our stakeholders in the most
accessible and useful way we can. Our main
reporting channel will be the social
responsibility area on the Kingfisher website.
We will also produce a summary report on our
progress each year with the group’s annual
report. Operating companies may also decide to
produce regular reports on their own activities.
5 Indicators
TARGET: Summary report included with annual
report in April 2002.
We recognise the need to provide numerical
data, aggregated across the group, for key
environmental impacts. We will therefore collect
and publish information on our total energy use,
transport, global warming emissions, waste
production and water consumption. In addition,
the operating companies will need to collect
and monitor key indicators in order to reach the
higher rungs of the ladders, and may choose to
publish individual targets and information about
their progress towards achieving them.
TARGET: Group-wide information published by
December 2002.
How will Kingfisher help
operating companies?
The Social Responsibility Team
The Social Responsibility Team at Kingfisher
will help coach and advise managers and
directors in operating companies, and will be
responsible for reporting on progress both
internally and externally.
The team will work closely with the Social
Responsibility Committee, which reports to
the Kingfisher Board.
In working with the operating companies the
Kingfisher Social Responsibility Team will aim
to supply four key ingredients:
Inspiration
The team will inspire, encourage and help the
individual operating companies. They will stress
that social responsibility will require changes in
the way we think about our business and in the
way we do things. But by focusing on the
business benefits and developing creative ways
of dealing with old problems, we can provide
employees with the enthusiasm they need to
make the necessary changes.
Assistance
Understanding
The team will help to create a community
amongst environmental and social managers in
the business, and develop a culture of sharing
and learning. By supporting each other we can
make sure that best practice is spread across
the group. We will also make sure that the
actions of one operating company do not
compromise the success or reputation of
another, either directly or by association.
We have set ourselves some challenging goals
for our work on social responsibility. All our
operating companies are at different stages in
addressing the issues we face, and have
different opportunities and constraints. The
team’s approach will recognise that real change
takes a long time to happen, and tackling many
of these complex subjects will require a great
deal of patience.
Adaptability
Our operating companies have different working
cultures, operate in very different markets, and
sell different kinds of products. What works in
China may not be effective in France; some
issues are more relevant to the electrical
businesses whilst others are more relevant to
the home improvement chains. Our strategy
needs to be relevant to all of these people,
and to do this it must be adaptable to different
circumstances whilst still adhering to a
common approach.
48/49
THE NEW SOCIAL RESPONSIBILITY COMMITTEE
Kingfisher is committed to keeping these
issues at the forefront of our business and the
members of the new Social Responsibility
Committee at Kingfisher are business leaders
from within the group, reflecting the diversity
of our operations. The Committee meets every
six months, and agrees the overall strategic
direction for Kingfisher’s social responsibility
programme. It reports on progress and
strategy to the main Kingfisher Board.
* denotes Main Board Director
Discussion Fora
Within each company, a senior manager will
have responsibility for overseeing the social
responsibility programme, and making sure
the correct information is fed back to Kingfisher
on progress. Other senior managers will also
be responsible for driving progress on each of
the ladders.
These practitioners will meet regularly to
discuss progress and share ideas and
experience. Once a year we will bring them all
together for an annual conference.
Smaller discussion groups are already forming
around key issues and areas of interest. We will
■
Sir Geoffrey Mulcahy*
■
Sir John Banham*
■
Jean-Hugues Loyez*
■
Jean-Noël Labroue*
■
Bill Whiting*
■
Margaret Salmon*
■
Tony Stanworth
■
Alan Knight
■
Andrew Mills
encourage more of these to form, but those
already established are:
■
Electrical Forum (with representatives
from all our electrical retailers)
■
Home Improvement Forum
(all the home improvement retailers)
■
French Forum (an informal French-speaking
group discussing issues relevant to France
including BUT, Darty and Castorama)
■
UK Forum (consisting of Chartwell Land,
B&Q and Comet)
■
Quality and Supplier Assessment Forum
(discussing Code of Conduct and supply
chain issues)
APPENDIX 1
History of policy development 1990 - 2000
Kingfisher started developing a strategic approach
towards social responsibility in the early 1990s.
In 1990 we sponsored the publication of two
books: “Actions Speak Louder: a Management
Guide to Corporate Social Responsibility”
and “Working in the Community: a Guide to
Corporate Social Responsibility” (both authored
by David Clutterbuck and Deborah Snow).
At the same time the Kingfisher Social
Responsibility Committee was established.
It was chaired by Sir Geoffrey Mulcahy and
attended by a Director from each operating
company. During these meetings the members
reported on community and charity initiatives
within their own operating companies and
discussed the implications for the business
from a Group wide perspective.
Kingfisher adopted a Group environmental
policy in 1991, updated first in 1994 and
again in 1997. This was used to give direction
for the individual operating companies to
formulate their own policies.
The Environmental Forum
Since 1991 Kingfisher has had an internal
Environmental Forum whose members included
the key environmental managers in the
operating companies. The Forum provided
practitioners with a means to discuss key
issues and provided a pool of experience and
expertise. It was at the recommendation of the
Forum that group-wide targets on some key
issues were developed and agreed at Kingfisher
board level, helping to drive progress
throughout the operating companies. Central
to the group’s policy was the observation that
the most significant impacts of retail are the
manufacture, use and disposal of products.
Based on this nine* key issues were selected.
Our achievements on each of these issues are
listed opposite.
KEY ISSUES
ENERGY AND TRANSPORT
LAND AND PROPERTY
SUPPLIER AUDITING
PACKAGING
TIMBER AND PAPER
*Following the separation of its General
Merchandise businesses in 2001, Kingfisher
ceased to be involved in the retailing of
cosmetic products.
ANIMAL TESTING OF COSMETICS*
and toiletries
DEVELOPING NATIONS
PRODUCT USE
WASTE MANAGEMENT
AND RECYCLING
50/51
STANDARD ACHIEVED BY END OF 1999
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Responsibilities for energy management clearly defined
Present level of energy consumption for buildings and vehicles established
Energy conservation action plan established
Present level of vehicle emissions established
All developments for which planning consent is required are subject to environmental appraisal,
especially where greenfield sites are involved
Clear policy on the use of materials and energy conservation for new developments and refurbishments
Relevant staff have a reasonable understanding of the environmental issues associated with the product range
Annual action plan to monitor the environmental performance of principal suppliers
Environmental criteria included in key buying decisions
Annual action plan with targets for packaging reduction and recycling
For most products there is:
- no over packaging
- packaging is recyclable
- plastic components are marked
- cardboard contains a high proportion of recycled waste
The company has a detailed understanding of the types, quantities and sources of wood used in products
The vast majority of wood comes from well-managed forests
The company is a member of the Forest Stewardship Council and/or the WWF Buyers Group
The company has a good understanding of the arguments surrounding animal testing
The company is working to ensure that alternative test methods are available
■
Factories where products are made are systematically audited against minimum environmental,
health and safety and employment conditions
■
The company actively researches the environmental impacts of products during use
Improvement programmes to reduce impacts during use of key product ranges have been established
Environmental labelling provided by suppliers is subject to review
■
■
■
■
■
■
Responsibilities for waste management clearly defined
Present waste arisings are quantified
Present recycling rates quantified
Waste minimisation and recycling action plan established
APPENDIX 2
Kingfisher Group environmental and ethical code of conduct for suppliers
The following vision statement demonstrates our
commitment to work with factories rather than
boycott them:
It is Kingfisher’s policy to buy from factories that
are committed to improving worker welfare
conditions and reducing their impact on the
environment.
Kingfisher believes that every link of the supply
chain should benefit from the trade of the product.
It is Kingfisher’s vision to enable people to enjoy
their home and lifestyle better than any other
retailer in the world. This enjoyment would be
undermined if it was at the expense of the quality
of life of the people making our products.
Kingfisher has developed a set of standards
reflecting the way in which we would like the
factories we buy from to be managed. The
Kingfisher Standards cover the issues of: child
labour, hours of work, wages, employee relations,
health and safety, hygiene, accommodation and
supply chain management and environment.
Kingfisher wants to buy from factories that meet
these standards or are committed to meeting
the standards. This code is the base standard
for all Kingfisher suppliers – it is currently
being used by Castorama France, Comet and
Darty. Following field trials are working with
improvement version and the code will be
shared with the smaller operating companies
and adapted into their purchasing policies.
These standards are global and apply to all
products sourced by Kingfisher.
Critical Failure Points
We recognise that it can help improve the
quality of life of the people making its products
by working with factories to make the necessary
improvements where required. However, as a
company we will not work with factories which
are not committed to improvement or
demonstrate unacceptably low standards as
stated in the Kingfisher Critical Failure Points.
Kingfisher will not buy from factories which fail
on any of the Kingfisher Critical Failure Points.
Factories which pass the Critical Failure Points
will be assessed against the Kingfisher
Standards and awarded a performance grade
accordingly.
Kingfisher will not source from factories that
demonstrate one or more of the following eight
critical failures:
■
The factory employs children below the
local legal minimum age, and/or a
minimum age of 14.
■
The factory uses forced, bonded or
involuntary labour.
■
Workers are forced to lodge “unreasonable”
deposits or their identity papers with their
employers, so they are not free to leave after
reasonable notice.
■
Workers are subjected to physical abuse,
the threat of physical abuse, or intimidating
verbal abuse.
■
Accommodation, if provided, is not
clearly segregated from the factory or
production area.
■
An adequate number of safe, unblocked fire
escape routes are not accessible to workers
from each floor or area of the factory and
accommodation if provided.
■
The factory knowingly and continually
contravenes local or national environmental
legislation without being able to demonstrate
a plan of action to improve.
■
The factory management does not
demonstrate a willingness to improve on
any significant areas of concern identified
during the audit.
52/53
Kingfisher standards
Kingfisher will source from factories which meet or are willing to meet the following standards with regards
to labour and welfare conditions, health and safety and environmental management.
Child Labour
■
All workers must meet the local legal
minimum age, and/or a minimum age of 14.
■
Factories should hold adequate records on
the ages of all workers.
■
■
Young persons up to the age of 18 should
not work at night (between the hours of
10 p.m. and 6 a.m.), or on tasks that are
potentially hazardous to their health.
The factory should develop and participate
in policies and programmes which help the
elimination of any exploitation of children
in their industries.
Hours of Work
■
Factories should hold adequate records,
showing the hours worked by each worker,
both as part of their contractual agreement,
and as overtime.
■
Contractual hours do not exceed 48 hours
per week.
■
All overtime is voluntary and paid at an
additional rate.
■
Workers should be provided with at least
one day off in every seven.
■
Employee Relations
■
There is no discrimination in hiring, or
employment conditions on any grounds.
■
Workers should be allocated a written
contract of employment. The terms of which
must be clearly communicated to the worker
in a language or method that is understood.
■
All disciplinary rules must be written and
clearly communicated to workers in a
language and/or method that is understood.
■
There should be a clear recognised process
of worker representation, to ensure good
flow of communication between workers
and management.
■
Workers should be allowed to negotiate
collectively, in unions or groupings of
their choice.
Workers should be allocated breaks, the
length and frequency of which is appropriate
to the tasks undertaken.
Wages
■
Wages and benefits should be consistent
with industry benchmarks and/or
local/regional standards.
■
Any deductions made to the basic wage
must be clearly understood, and reasonable
in the context of the total wage.
Kingfisher standards continued
Hygiene
■
The factory should provide a clean and
hygienic place of work and rest, consistent
with local standards and the nature of
the industry.
Supply Chain Management
■
■
■
Workers should have access to acceptable
drinking water at all times.
Accommodation
■
Adequate provision should be made for
prevention and fighting of fire.
■
Accommodation should be comfortable
and provide for individual’s privacy.
■
Accommodation should be clean
and hygienic.
■
Recreational facilities should be provided
within or accessible to the living area.
■
The factory should provide parents with
childcare facilities or arrangements.
■
■
The factory management systematically
measures standards within their supply
chain and where necessary encourages
improvements on key issues.
Sub-contract cottage units or homeworkers
should only be used where there are benefits
for the sub-contractor/homeworker.
■
Sub-contracted “factory” manufacturing sites
should adhere to the Kingfisher Standards.
■
■
■
Factories should have an Environment Policy
signed by the Chief Executive.
■
Factories should have an Environmental
Action Plan against which progress is measured.
■
Factories supplying timber products should
have a “Chain of Custody” in place, which is,
or can be certified, and they should understand
forest certification and be prepared to deliver if
operating company requires.
Kingfisher Code of Conduct
In the Code of Conduct governing the behaviour
of our employees, we have set out the standards
governing our relationship with suppliers. We are
committed:
■
to comply with the laws of all the countries
where we do business;
■
to treat suppliers with fairness at all times;
Factories should be safe, with risk of harm
from hazardous activities minimised through
the provision of safety equipment, training
and a safe factory infrastructure.
■
to observe legal and ethical standards;
■
to prohibit corrupt or improper behaviour in
dealings with suppliers;
There should be a manager with responsibility
for Health and Safety issues.
■
never to engage in bribery; and
■
to abide by the Foreign Corrupt Practices Act
and the OECD Convention on Combating Bribery
of Foreign Public Officials in International
Business Transactions.
Health and Safety
Toilets and bathing facilities should be
clean and hygienic.
Where food preparation facilities are
provided, they should be clean and hygienic.
The factory management should ensure
visits and assessments are made of all parts
of the product’s supply chain where there
is obvious potential for environmental or
ethical problems.
■
■
■
The factory management should understand
the product’s supply chain, and be willing to
divulge its details.
Environment
Factories should be able to demonstrate
active management and improvement of
Health and Safety issues.
54/55
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