Sustainability report 2014 - tchibo

Transcription

Sustainability report 2014
Find it only at Tchibo
Sustainability report 2014 | Content
Content
About this report
3
Statement Dr Markus Conrad
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Sustainability Management
Environmental protection in our operations
··Ambition, strategy, management
··Strategy & management
79
··Climate Protection
81
··Ambition & strategy
6
··Corporate Governance
9
··Logistics
81
··Management
12
··Tchibo sites & shops
83
··Progress 2014 & goals 2015
16
··Mobility
84
··Milestones
24
··Value Chains
85
··Resource Efficiency
86
··Tchibo International
··Strategy
31
··Paper from Pulp
86
··Progress made in 2014
34
··Packaging & Waste
86
Employees at Tchibo
Coffee value chain
37
··The sustainable development of the coffee sector
89
··Corporate culture & values
90
··Tchibo Joint Forces! qualification programm
40
··Talent management
92
··Purchasing sustainable green coffee grades
43
··Occupational health management
95
··Cooperation to promote sustainable farming
44
··Work-Life Balance
97
··Remuneration, employee benefits &
99
®
methods
··Environment & Climate
··Educational projects in the source countries
46
Tchibo extras
49
Facts & Figures
Consumer goods value chain
··Indicators
101
51
··GRI-Index
115
··Responsible business practices
54
··UN Global Compact
128
··Sustainable products and resources
56
··German Sustainability Code
132
··Sustainable supply chains
59
··Commitments & Cooperations
133
··Human Rights Challenges in production
61
··Awards
138
··Environmental aspects of production
63
··Independent Assurance Report
140
··Educational projects in the source countries
65
Customers & Products
66
··Customer Focus
68
··Customer Service
69
··Customer Dialogue
70
··Quality & Safety
71
··Promoting sustainable consumption
73
··Sustainable Product Ranges
74
··Sustainability communications
76
About Tchibo
142
Contact
143
Imprint
143
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Sustainability report 2014 | About this report
About this report
Transparency and comparability
In the Tchibo Sustainability Report 2014, we provide transparent, comprehensive information about our economical,
ecological and socially responsible conduct. It is addressed at our internal and external stakeholders and interested
members of the public. The focus of our reporting is our progress on the way to becoming a 100% sustainable business.
Since 2006, sustainability has been an integral part of Tchibo’s business strategy. We report annually on the actions taken
and progress made in the sustainable management of our business. Our activities are focused on the coffee and consumer
goods supply chains and on environmental protection in our operations, on customers and products, and on benefits and
services for employees. The material issues were identified with the involvement of our stakeholders and systematically
developed based on analyses.
Scope of reporting and data collection
All of the information in this report refers to the sustainability-related activities of Tchibo GmbH, its subsidiaries and sites in
Germany. Our international business units are included here provided they use centrally controlled processes. (G4 – 17)
This fourth, completely revised Tchibo Sustainability Report is about the developments in 2014 (1 January to 31 December
2014). We have also taken into account significant events and services up to the editorial deadline in July 2015, to ensure
that the information is up to date. Since the publication of the first Tchibo Sustainability Report in 2008, we have reported
on an annual basis, every two years in the form of a condensed update.
First-time application of GRI G4 reporting standards
Since 2008, our sustainability reporting has used the guidelines of the Global Reporting Initiative (GRI) as an internationally
recognised basis for comparability and transparency. In this Sustainability Report 2014 we use, for the first time, the GRI G4
guidelines, which will become binding from 2016. The materiality of the reported content played a key role in the revision
of the standards. In this report we are therefore focusing more on our material topics and key indicators than in previous
years; this selection is based on an analysis of the G4 requirements that we conducted in 2014. The report therefore corre
sponds to the G4 ‘Core Level’. We also report other indicators that are related to Tchibo’s focuses in its sustainability activ
ities. Since 2012, we have also taken into account the GRI sector supplement for the food industry (which is being piloted)
and the industry-specific supplementary indicators for the clothing and footwear industry.
Global Compact Communication on Progress and German Sustainability Code
This Sustainability Report also includes the Advanced Level Communication on Progress to the UN Global Compact, whose
ten principles we have been committed to since joining the Compact in 2009. Based on the 21 ‘GC Advanced’ criteria, we
provide information on key issues of our value chains, such as observance of human rights and labour standards, environ
mental protection and anti-corruption. You can find an overview of these topics here.
The Tchibo Sustainability Report 2014 is also the basis for our Declaration Of Conformity in accordance with the German
Sustainability Code (DNK) issued by the Council for Sustainable Development (RNE). With this Code, the RNE seeks to make
the sustainability performance of companies more stringently transparent and comparable. You can find an overview here.
External audit by auditing firm
The Sustainability Report 2014 of Tchibo GmbH, Hamburg was audited by the independent auditing firm Pricewaterhouse
Coopers AG (PWC) according to the International Standard on Assurance Engagements (ISAE) 3000. The subject matter
of the audit was the management approach and four key indicators in our strategic action areas – the coffee and consumer
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Sustainability report 2014 | About this report
goods value chains, and environmental protection in our operations. The audited figures are labelled in the text, in the GRI
Index as well as in the overview
.
Your opinion matters
If you have any questions or suggestions in connection with the Sustainability Report or with corporate responsibility at
Tchibo, you can find the relevant contacts on page 143.
Editor’s note
Wherever the masculine form is used in this report to enhance readability, the female form is of course equally implied.
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Sustainability report 2014 | Statement Dr Markus Conrad
Statement Dr Markus Conrad
Dear Readers,
for 65 years, a focus on long-term success and the paradigm of the honourable
Hanseatic merchant have guided Tchibo’s conduct as a family-owned business.
Based on this corporate culture, we first named sustainable business operations
as an explicit goal in our corporate strategy in 2006. As a business, we want to
consistently integrate sustainability in our processes, thereby contributing to the
development and enforcement of international social and environmental standards.
Tchibo relies on the principle of voluntary commitment. Since 2009 we have
subscribed to the principles of the Global Compact of the United Nations, a
voluntary alliance of companies and organisations that advocate human rights,
fair working conditions and environmental protection around the globe. Beyond
this, we participate in other voluntary alliances such as the Bangladesh Accord,
which we co-developed in 2012, and the Alliance for Sustainable Textiles in 2015,
with which Germany has assumed a pioneering role internationally.
Developing and enforcing international social and environmental standards
requires the involvement of many stakeholders: governments that provide the
necessary regulatory framework; scientists who contribute their expertise; as
well as civic society groups and trade unions that advance the issues and put them on the public agenda. Consumers also play
a key role: with their purchasing decisions, they determine the value of social responsibility on a daily basis.
2014 gives us reason for optimism. The year was strongly influenced by this sense of ‘shared responsibility’: governments in
key buyer countries for consumer goods established new rules for globally connected supply chains. The UN principles for
business and human rights have started being transferred into national action plans. The industry is called on to participate.
Sustainability Balance Sheet 2014
In the past year, we made important progress on this path. Our long-term partnerships with producers, suppliers and other
stakeholders is an important success factor in this endeavour.
In 2014, we increased the share of sustainable green coffee, i.e. validated or certified by standards organisations, to around
35 %; we expect this to increase to 40 % for 2015. Tchibo doesn’t just rely on certifications and standards as it works to further
increase this share. We participate in various alliances to improve framework conditions, such as the Sustainable Coffee Program,
and are also increasingly relying on direct, close cooperation with local producers and suppliers. Our Tchibo Joint Forces!® (TJF)
programme helps coffee farmers and co-operatives to act entrepreneurially, to improve the efficiency of their operations, and
increase their sales opportunities. More than 30,000 coffee farmers have successfully completed this programme to date.
In our textiles range, the shift to using only sustainably grown cotton is nearly complete at 85 %. Already, Tchibo is the world’s
third-largest vendor of organic cotton textiles.
We support the manufacturers of our consumer goods with the supplier qualification programme WE (Worldwide Enhancement of Social Quality). It involves the management and employees entering into dialogue to develop concrete solutions for
improving local working conditions and environmental protection. 320 factories had participated by the end of 2014: we now
cover around 75 % of our consumer goods purchasing volume with suppliers from risk markets whom we have helped meet
the necessary qualifications.
I cordially invite you to take a first-hand look at these and other advances and challenges. Let us know your wishes, suggestions and any criticism you may have. We look forward to hearing from you!
Yours sincerely,
Dr Markus Conrad
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Sustainability report 2014 | Sustainability management
Sustainability management
Sustainability management | Ambition, strategy, management | Ambition & strategy
Safeguarding the future with a tried and tested
mission statement
Tchibo, a family-owned business founded in 1949, models itself on the ideal of the ‘honourable merchant’: We think
long-term and see it as our obligation as a business to take responsibility for our actions. That is why, on our way to
becoming a 100% sustainable business, we consider the impact on people and the environment in all our key processes,
thereby safeguarding our business success long term. We focus on areas where we can make a difference through direct
influence. We are convinced that our business success should not come at the expense of people and the environment.
The Tchibo brand should be synonymous sustainability and be perceived as such by our stakeholders.
Tchibo stands for enjoyment and quality – and we intend to continue living up to this claim. An intact natural world as a
source of high-quality products; fair cooperation with responsible business partners; passionate employees; and the trust
customers place in us determine the future viability of our business. That is why sustainability has been firmly integrated in
our business strategy, in the Tchibo DNA and in our Code of Conduct since 2006.
On the path to a 100% sustainable business
Tchibo is on its way to becoming a 100% sustainable business – that is our key strategic objective, which was adopted by the
management in 2011. We take the responsibility for striving to eliminate the negative impacts of our activities, or minimise
them where this isn’t possible. To this end, we are working, step by step, to make the processes and products in our company and value chains environmentally and socially compatible. In these efforts, we follow three principles:
··We ensure that our conduct complies with legislation and standards, everywhere and at all times. In 2006
we introduced the Tchibo Code of Conduct as a binding directive for this purpose.
··We take responsibility for the social and environmental impact of our business activities on people and the
environment. We have embedded sustainability in our Tchibo DNA.
··We concentrate our efforts on the processes and products with the greatest impact on people and the
environment, and where our company has the greatest influence.
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“We see it as our duty as a business to take on respon
sibility in our value chains and initiate change where it
is most urgently needed. Due to our business model, we
can make a difference primarily in the cultivation and
processing of coffee, cotton and wood.”
Achim Lohrie, Director Corporate Responsibility, Tchibo GmbH
Tchibo takes care to ensure compliance with social and environ
mental standards in the manufacture of products. We systematically
work towards permanently improving working conditions in the
production of consumer goods in factories and in the cultivation and
processing of natural resources that we require, and to minimise
any environmental damage. As a basis for this we have developed a
management system with clear responsibilities. We cooperate with
internationally accredited standards organisations in the development and sourcing of sustainable coffee, cotton and wood
and pulp. We include all relevant external stakeholders in our activities so that together, we can improve the social, environ
mental and economic conditions in our source markets for raw coffee and consumer goods.
Protecting people and the environment, increasing employee loyalty, strengthening customer trust, ensuring
business success
Sustainable corporate development requires extensive modifications to business processes. It also offers us and our stake
holders many opportunities. Factory workers benefit from socially acceptable production methods, while at the same time
their productivity and the quality of the products increases. By conserving resources and including ecological aspects in
production as well, we protect the environment, safeguard the basis of our business, and reduce our costs. Sustainability
strengthens employee loyalty and the trust of our customers and helps us to keep inspiring them. This results in products
that help customers make sustainable buying decisions, thereby making a lasting contribution to our business success.
Tackling challenges with new forms of global collaboration
But there are limits to what we can do; some challenges cannot be resolved by individual companies alone. Despite decades
of efforts by various stakeholder groups, the results achieved in many Asian procurement markets are hardly satisfactory –
especially regarding building and fire safety, living wages and freedom to form trade unions. Although our consumer goods
procurement policy can go a long way to ensuring that our own suppliers recognise and comply with social and environ
mental standards, this does not eliminate structural and political shortcomings.
Around the world, the realisation is growing that in these cases success can only be achieved with a joint effort by all relevant stakeholders from government, business, nongovernmental organisations and trade unions. Tchibo supports efforts to
implement the UN Guiding Principles on Business and Human Rights through action plans and the like, and participates in
cross-sector alliances. These include the Accord on Fire and Building Safety in Bangladesh and the Alliance for Sustainable
Textiles in Germany. Voluntary commitment by companies also plays an important role, for example, to the DETOX standard
developed by the environmental organisation Greenpeace.
Accord on Fire and Building Safety in Bangladesh
An important alliance for our efforts in the textile supply chain is the Accord on Fire and Building Safety in Bangladesh. We
were one of the Accord’s first two signatories in 2012. Since then we have worked with other international trading companies, producers, the government, with trade unions and NGOs on the assertion of stringent fire and building safety standards for the textile industry in Bangladesh.
Alliance for Sustainable Textiles
The Alliance for Sustainable Textiles now represents more than 50 % of the textiles industry in Germany. Like other major
market participants, Tchibo joined the Alliance in June 2015. The partners are currently drafting a joint action plan to promote
the implementation of environmental and social standards at all stages of the textiles supply chain. For many companies, such
an action plan will mean significant changes to their own processes: staff and information resources need to be established,
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existing approaches in sustainable supply chain management strengthened and expanded to other protagonists in the upstream stages of the supply chain in conjunction with the suppliers. Here at Tchibo, we are well prepared for this with our sustain
ability concept already integrated into the consumer goods supply chain, and our practical experience.
Detox
The aim of the Greenpeace DETOX standard is to eliminate the use of undesirable chemicals in all processes of textile
production by 2020. In 2014 Tchibo signed the DETOX Commitment, which many international commercial and industrial
companies joined before and since. The implementation of the exacting standards by 2020 presents participants with major
challenges. The two biggest are to create transparency about the complex preliminary stages of the supply chain, and to
develop alternatives to unwanted chemicals at the various upstream stages.
We are convinced that our future economic performance is largely determined by whether it is possible to improve the social, environmental and economic conditions in the sourcing countries. We will use our influence as a global company and as a
partner in existing and emerging alliances.
Setting priorities, joining forces
Over the past nine years, Tchibo has developed an integrated management approach to tackle the various challenges in
the supply chains. The very design of our products already helps to conserve natural resources. In the production process,
our Purchasing teams work in partnership with suppliers on the ground, helping them to comply with our stringent quality requirements, which include social and environmental standards. We focus on long-term collaboration with selected
strategic partners. This increases transparency and reduces risks in our supply chain, while also increasing our suppliers’
planning and investment security. This integrated management approach validates the trust our customers place in our products and their lasting quality.
Coffee value chain
In the coffee sector, it is essential to work in partnership with the coffee farmers on the ground. Our Tchibo Joint Forces!®
qualification programme encourages the positive economic development of smallholder operations, putting them in a position to make their own contributions to implementing social and environmental standards. We systematically select suitable
producers and monitor their sustainable development step by step in a multi-year process. This modular process starts
with training to increase the yield and quality of the coffee to improve the farms’ profitability. In many cases it culminates
in certification by a recognised standards organisation. We have successfully qualified more than 30,000 coffee farmers
through Tchibo Joint Forces!®, and are steadily increasing our share of validated or certified sustainable coffee: in 2014
the share of raw coffee that met the criteria of the Rainforest Alliance, Fairtrade, UTZ Certified and certified organic or 4C
baseline standards accounted for around 35 % of our total raw coffee.
With our Worldwide Enhancement of Social Quality (WE) qualification programme and systematic monitoring of suppliers,
we help producers comply with the social and environmental standards of our Tchibo Social and Environmental Code of
Conduct (SCoC). WE training focuses on fostering dialogue between our buyers and the management and employees at
factories. Based on this, the partners draw up action plans for a continuous improvement process. WE leads to a joining of
forces and increased transparency. Already, 75 % of our purchasing volume comes from suppliers who have completed our
WE programme.
Customers & products
“Find it only at Tchibo” – In accordance with this guiding principle, we seek not only to satisfy our customers, but to inspire
them anew every day. That is why we place the highest quality demands on all of our products, offer them at a fair price,
and strive to promote sustainable consumption. To achieve this, we have set three priorities: we consistently focus on the
wishes and needs of our customers, offer them excellent service, and ensure effective complaints management. We ensure
the high quality and safety of our products by setting high standards, and include social, environmental and ethical standards in our quality claim. We are gradually shifting the purchasing of the raw materials processed in our products to sustainable sources, build awareness of their benefits among our customers, and thereby promote sustainable consumption.
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Protecting the environment and climate is a key element in Tchibo’s sustainable business strategy and is firmly anchored
in the Tchibo DNA. We take a close look at all our key business processes and take measures where we can most effectively
reduce CO2 emissions and the consumption of resources. In the case of climate change, this involves reducing the energy
efficiency of our logistics processes and roasting facilities, as well as the fuel consumption of our vehicle fleet. In this way
we have been able to reduce CO2e emissions related to goods transport by around 32 % using 2006 as a base year. Our fleet
strategy sets lower ceilings for new company car CO2 emissions each year. We conserve valuable resources by making our
own processes more efficient and systematically reducing our demand for paper and packaging materials. At the same time
we are switching to purchasing paper and cardboard from responsible sources.
Employees at Tchibo
Tchibo fosters an appreciative company culture and offers its employees a stimulating, performance-oriented working
environment. We continuously adapt our recruitment, education and training activities to the changing demands of the
working world and/or the needs of our employees. Our comprehensive occupational health management system is designed
to help our employees stay healthy. We make it easier for our staff to achieve a healthy work-life balance with flexible rules
regarding working hours and homeworking, childcare offers, and support in caring for family members. We reward perfor
mance with personal recognition, attractive, fair and performance-based pay, and providing a wide range of voluntary
benefits.
In 2014, we continued to make measurable progress on our path to becoming a 100% sustainable business. The indicators
are listed in the Progress subchapter.
Sustainability management | Ambition, strategy, management | Corporate Governance
Creating and upholding values
As a family-owned company, Tchibo places a high priority on values-driven corporate governance, which forms the basis
for sustainable growth. At our company, corporate governance is synonymous with conscientious, transparent management and supervision with a view to long-term value creation. This includes fair trade, uncompromising compliance with
the law, monitoring and control of potential risks, and a conscientious handling of information entrusted to us by staff
and customers.
Long-term value creation can only be achieved if we combine commercial and ethical skills and work to ensure that neither
people nor the environment are harmed. Tchibo’s shareholders and management stand by this responsibility. The efficient
structures and processes of our compliance, risk management, and data protection schemes ensure that employees, suppliers and other partners adhere to guidelines and that we can take countermeasures at an early stage if there are deviations.
Management in close collaboration: ongoing dialogue at management level
The Tchibo GmbH management, Supervisory Board and works council interact closely
with one another and with the maxingvest ag Executive Board and Supervisory Board.
The collaboration of these bodies and their constant, close dialogue are characterised
by openness and transparency. Respect for stakeholder interests and a clear assignment of responsibilities play a big role here. The Tchibo GmbH Supervisory Board is
appointed by the shareholders’ meeting and nominates the [executive] management
of Tchibo GmbH. The latter regularly and promptly informs the Supervisory Board of
all matters relevant to the development of the company, its value, and its risk situation. A guideline specifies when which concerns are to be brought to the attention of
the management or Supervisory Board. The company’s strategic direction is coordi
nated with the Supervisory Board, and major decisions require its consent. The maxingvest ag Supervisory Board has formed various specialist committees to address
complex subjects and do its own work as efficiently as possible.
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Tchibo Compliance Programme: observance of rules of conduct
The guiding principle of our business activity is the Tchibo Code of
Conduct (CoC). It is binding for all Tchibo GmbH employees and its
international business units and governs our dealings with business partners and customers. The CoC is based on the conventions
of the International Labour Organisation (ILO) and among other
things prohibits all forms of corruption, and granting or accepting
of an undue advantage. If an employee violates any of the principles, they face sanctions under labour law. In addition to the Code
of Conduct, the compliance programme is comprised of various
policies that regulate cross-sector and cross-company processes
via procedural and organisational instructions. They also list the
responsibilities of Group companies, divisions, departments and
employees.
We regularly train our managers in the application of our Code of Conduct. Once a year, the managers confirm, in writing,
that they understand and have complied with the rules of the Code of Conduct, and have reported any violations that came
to their attention. With their signature, they also assure that they have explained the Code of Conduct to their employees
and that they monitor compliance with it. Each new employee receives a copy of the CoC. We inform our employees about
new developments via the intranet as well as directly, through their supervisors.
Compliance with the requirements is verified in internal audits by the maxingvest ag Corporate Audit department. A
whistleblowing hotline operated by an independent body also serves as an anonymous point of contact for employees,
suppliers and customers to report possible cases of misconduct. If necessary, information is anonymously passed on to the
ombudsman council for processing. The ombudsman council is our internal investigation committee consisting of various
department heads from maxingvest ag, Tchibo GmbH and Chairman of the Works Council. There are other ways to report
grievances via the works council, the Human Resources department, the Legal department, the Directorate of Corporate
Responsibility, and the Group Audit department.
Beyond this, Tchibo has been a member of the UN Global Compact since 2009 and has among other things committed to
actively fight corruption. We continuously conduct anti-corruption training for employees in relevant departments, such as
Procurement and Sales, and report on anti-corruption measures in an annual progress report, which is integrated into this
Sustainability Report.
Risk management: identifying and minimising risks
Our business is subject to various risks – e.g. from currency fluctuations or environmental incidents that can have an impact
on commodity prices. As part of our integrated risk management system, we identify these risks and take preventive measures to limit their potential negative impact on our business objectives. We make a fundamental distinction here between
company risks and supply chain risks.
Company risks
When drawing up risk inventories, we take stock of all significant risks and categorise them into three clusters: short-term
operational risks, one-off risks and strategic risks. A further differentiation then takes place within these categories. Acute
and serious risks are promptly reported to the management as soon as they arise so that we can quickly bring potential
risks under control. The latest information about risk development is fed into Tchibo’s management and planning systems
several times a year. The internal audit department regularly reviews the effectiveness of the risk management system, and
informs the management and Supervisory Board about the risk situation in regular risk reports that determine the scope of
the internal audit. Information about serious risks is immediately communicated to these bodies. For example, as a retailer
Tchibo is subject to the risk that its core markets become saturated or shrink, leading to stagnating or declining sales. We
guard against this danger with an innovative product policy and through international growth. Because the global retail
landscape and customers’ buying behaviour are changing, we have further strengthened the e-commerce sector, and intro
duced cross-channel services and an attractive permanent product range.
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Supply chain risks
Tchibo hedges against risks in the procurement of goods and services by integrating environmental and social requirements
in its procurement and quality processes. We have codified these in our Social and Environmental Code of Conduct (SCoC),
which all of Tchibo’s suppliers and business partners have to acknowledge and sign as part of the contract. Our Issues
Management regularly analyses all relevant product groups for their social and environmental implications and prioritises
them according to their social and environmental risks and opportunities. On this basis, we have developed measures to
limit the risks and boost opportunities. For instance, we are gradually reducing the number of suppliers we use for our
consumer goods and are developing the remaining suppliers into strategic partners, helping them implement the SCoC
with the Worldwide Enhancement of Social Quality (WE) qualification programme. As part of our issues management, we
also continuously analyse our the relevant concerns of our stakeholders. In this connection, in 2014 we decided to integrate
Greenpeace’s DETOX standard into our purchasing and quality processes. Beyond this, we systematically monitor our suppliers as part of our risk management, using customised review processes (audits) for each of the three risk categories.
Data protection: responsible handling of personal information
Many customers entrust their personal data to Tchibo every day as part of the ordering process. We see the protection of
the information entrusted to us as an integral part of our corporate responsibility. That is why we give top priority to principles such as data minimisation, transparency and security.
Data minimisation and transparency: Our goal is to offer our customers the best possible product range and compre
hensive service while using only a minimum of personal information. Therefore, we are very circumspect about processing
our customers’ personal data, going beyond the legal requirements. We also explicitly do not sell address data. We only
disclose personal data to other companies or entities if this is absolutely necessary to provide the services requested by the
customer, or if the customer has consented to the disclosure.
Security: At Tchibo, we consider it our duty to give data entrusted to us the best possible protection against unauthorized
access. Not least because of the rising diversity, quality and quantity of cyber attacks on corporate and government networks, it is important to invest in one’s own security infrastructure, check it regularly and optimise it. Our own requirements
for safeguarding the data are also the benchmark for the security infrastructure at our service providers.
In the reporting year 2014, we continued to develop our data protection management, adhering to the principles of awareness-building, testing and consultation. Especially in retail, where customer requirements as well as technical and legal
conditions change continuously and rapidly, employee awareness and training is a prerequisite for a responsible and legally
compliant handling of customer data. In addition, we have expanded and enhanced both our internal and external monitoring activities.
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Sustainability management | Ambition, strategy, management | Management
Many protagonists, one goal: 100% sustainable
business conduct
Tchibo pursues its strategic core objective of “becoming a 100% sustainable business” at all levels in the company. In
our integrated management system, the departments contribute to this with the support of the Directorate of Corporate Responsibility.
Moderated by our Directorate of Corporate Responsibility, the departments derive key objectives from the core goal of
“becoming a 100% sustainable business”. These key objectives describe the ecological and social transformation process
for the specific tasks of the individual departments, which break them down into tangible sub-goals and measures. The fixed
and variable components of employee remuneration are linked to achieving these objectives.
Integrated system of targets
The example of coffee: a resolute focus on the core objective, and ongoing success monitoring
Our strategic core objective “on the path to becoming a 100% sustainable business” and related key objectives for all
departments were adopted by the Tchibo GmbH management in 2011. In the Coffee value chain, for example, we pursue
the medium-term key objective of only offering coffee from cultivation that meets economic, ecological and social require
ments. Based on this key objective, the staff of the specialist departments responsible for the Coffee segment develop
qualitative sub-goals for the fiscal year, overseen by their managing directors. The sub-goals are quantified using measurable indicators wherever possible. One of the sub-goals for 2015 was to increase the share of certified or validated
sustainable coffee that we process to 40 %.
We have already come a long way on the path to becoming a 100% sustainable business in recent years. You can read about
the major milestones in the “Progress 2014 & Goals 2015” chapter.
The Directorate of Corporate Responsibility
In 2006, we created the central Directorate of Corporate Responsibility role to mainstream and firmly anchor the management of sustainability activities in all areas of our organisation. The Director of Corporate Responsibility reports to the
Chairman & CEO and with his staff supports the various departments in implementing and further developing their sustain
ability goals. He checks whether departments have achieved their sub-goals, and reports the results once a year - after
consultation with the departments - to the Chairman of the Management Board (CEO). If necessary, the targets for the
following business year are adjusted, and new targets are adopted. In addition, the Directorate coordinates company-wide
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and department-specific stakeholder management. The company’s Data Protection Office is also organisationally affiliated
with it, giving it direct and mandate-free access to senior management.
Sustainability management system for all products and main processes
Stakeholder involvement: resolving structural challenges together
Involving our stakeholders within and outside the company involved is very important for us. We get to know their various
expectations, can pick up on suggestions at an early stage, and build and expand a trustful relationship with our stake
holders. The dialogue with our stakeholders also often triggers innovation processes, both within the company and on a
societal level.
The Directorate of Corporate Responsibility determines the processes and formats of stakeholder involvement in conjunction with representatives from the departments and the Corporate Communications Directorate. This includes representation
on committees, and participation in round tables, alliances and initiatives such as the Accord on Fire and Building Safety in
Bangladesh and the Alliance for Sustainable Textiles. Here, we join other trading companies, producers, governments, NGOs
and trade unions, to work on structural questions concerning the integration of environmental and social standards, questions that affect our value chain and can only be answered jointly. In conjunction with the various protagonists, we work to
improve conditions in our procurement markets, while further developing our integrated management system.
An overview of key organisations, initiatives, memberships, etc. can be found in the “Facts & Figures” chapter.
Systematic review and analysis of relevant issues
Since 2006 we have been driving forward our sustainability management in a comprehensive, systematic and integrated
way. We defined the material issues and strategic priorities based on our own knowledge. In 2012 we supplemented this with
a comprehensive materiality survey among our stakeholders. Our stakeholders confirmed the relevance of the action areas
we determined in 2006. They agree that the greatest social, environmental and economic challenges lie in the Consumer
Goods and Coffee supply chains. The most important issues include the socially responsible and resource-conserving production of consumer goods, and improving the economic and social situation of the mainly smallholder coffee producers.
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Materiality process 2012/13 – Basis for integration and reporting
In the lead-up to our 2012 survey, we identified 1,200 stakeholders and classified them into distinct groups (customers, employees, suppliers and business partners, government organisations, NGOs, trade unions, consumer
organisations, science, banking, insurance, media). We began with an online survey in which we asked participants to
assess the relevance of 34 sustainability issues and rate our efforts in the respective action areas from their point of
view. They were also given the opportunity to express their personal expectations and make suggestions. We subse
quently held detailed qualitative phone interviews with external sustainability experts for individual action areas,
and asked employees from various departments for their assessment of the relevance of each area. On this basis,
we prioritised our sustainability management topics, giving highest priority to topics where internal and external
assessments differed most widely. Besides relevance, we also considered our potential influence in the area, e.g. by
forming critical groups, and from these two factors derived a value indicating stakeholder attention. The priorities
we identified in this way have guided us since in the development of specific targets and measures on the path to
becoming a 100% sustainable business. (G4 – 18, G4 – 24)
To complement the materiality process, we use our Issues Management as a ‘topic radar’. Staff in the Corporate Respon
sibility Directorate and the divisions identify relevant sustainability issues for Tchibo at an early stage, and analyse social
trends and legislative initiatives. They regularly exchange information with our market research experts, who also collect
and analyse relevant trends. Social developments and legislative initiatives are taken into account in strategic planning,
when deriving key objectives and sub-goals, and in determining measures. The management is immediately informed of
critical issues such as urgent stakeholder concerns and NGO campaigns. (G4 – 18)
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(G4 – 19, G4 – 20, G4 – 21)
In 2014, the following events and developments, among others, demonstrated the sustained or increased relevance of our
material topics:
··Development of the Federal Government’s National Action Plan on ‘Business and Human Rights’
··Adoption of an EU directive on the disclosure of non-financial content in the Management Report
··Initiation of the Bündnis für nachhaltige Textilien (Alliance for Sustainable Textiles) by the Federal Ministry for
Economic Cooperation (BMZ)
··Initiative for living wages in the textile industry (ACT)
··Study by the Clean Clothes Campaign on wages in the textile industry
··DETOX campaign by Greenpeace to exclude hazardous substances
··PETA campaign against animal cruelty in Asian Angora farms
··Coffee Report 2014 by brand eins and Tchibo: One-third of consumers in Germany use environmentally and socially responsible produced coffees and specialty coffees
(G4 – 27)
15
Sustainability management | Progress 2014 & goals 2015
Verifiable results serve as both validation
and motivation
Sustainability has been an integral part of Tchibo’s business strategy since 2006. On our way to a 100% sustainable business, we are committed among other things to exacting, internationally recognized environmental and social standards in
our coffee and consumer goods supply chains. Beyond this, it is a priority for Tchibo to step up its protection of the climate
and conservation of resources: in our value chains, at our sites, and during transport. By doing so, we simultaneously safeguard the future viability of our family business.
Coffee value chain
Our Insights
To improve the ecological and social impact in the growing regions, sustainable product development based on standards
should be complemented by measures in the economic and social environments of green coffee producers, who are generally smallhold farmers. Our Tchibo Joint Forces!® qualification program was developed for this purpose.
Consumer Goods value chain
16
Our Insights
Processing sustainably grown cotton is (still) a differentiating quality criterion in market competition as well. In particular,
organic cotton is self-explanatory and is particularly well received by our customers. This explains the rapid development of
our product ranges made from or with cotton, in particular organic cotton.
Our Insights
A continuous increase in the use of the FSC® standard for the wood from which our wood and paper products are manufac
tured remains an essential goal in our commitment to responsible forest management. Here we will also and particularly
advocate the increased FSC® certification of German forests and woodlands.
Our Insights
Sustainability in complex global supply chains starts in one’s own company. Exacting standards can only be implemented
across all major stages of a value chain if the latter is transparent. The fewer the suppliers and longer-lasting the business
relationships, the easier it is to create transparency, the greater the trust, and the faster the standards can be successfully
implemented.
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Our Insights
Audits provide a snapshot of the degree to which social and environmental standards have been implemented at a given
producer, but are not suitable for initiating and maintaining a process of continuous improvement. The best way to achieve
this are qualification programs that focus on partnership with the producers and dialog between the producers’ staff and
management and the trading companies’ buyers.
Our Insights
All successes aside, the continuous reduction of average CO2e emissions in our transport processes remains a major challenge. The further we progress with this, the more demanding it becomes. This makes it all the more necessary to come up
with innovative, pioneering solutions for the transportation of goods to our sales outlets and customers.
18
Our Insights
We have been able to continuously reduce the CO2 emissions of our fleet by resolutely implementing our ambitious fleet
policy. In the years ahead, progress will depend on how strongly the manufacturers advocate the development of environ
mentally friendly models that are also suitable for the day-to-day business.
Our Insights
Sourcing electricity from certified renewable energy sources (ok power) is one of the essential pillars of our efforts to curb
climate change. We remain committed to this in the future.
Other results in our key action areas
··Tchibo is currently the third-largest vendor of organic cotton worldwide. This is the conclusion reached by the
non-profit organization Textile Exchange in its ‘Organic Cotton Market Report’ published in 2015. In 2014, our
suppliers processed nearly 6,000 tons of organic cotton for our textile products – equivalent to around 75 % of
our textiles.
··60 % of our viscose products are by Lenzing (Tencel / Modal). The pulps used for producing the fibres are obtained in accordance with environmentally friendly standards.
··98 % of our leather products are tanned without chrome.
··Based on our animal welfare policy, we haven’t offered any real fur (not even as trim) for more than nine years,
and no products made from or with angora since 2014. We exclude goose down and feathers obtained through
live plucking from our ranges.
··In 2014 we incorporated Greenpeace’s stringent DETOX Standard in our product development, so that we can guarantee the exclusion of hazardous chemicals in our global production and refining processes within just five years.
··We use only environmentally friendly ecorepel® to render our outdoor products water and dirt repellent.
··Around 75 % of our purchasing volume for textiles was manufactured by producers from risk countries who
participate in the WE program.
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··The CO2 emissions of the Tchibo fleet are decreasing continuously, and are currently at 119 g CO2 /km. In 2014, we
were recognized for the third consecutive year with the German Environmental Aid Association’s (DUH) ‘Green
Card for Credible Environmental Awareness’
··We regularly and systematically involve our customers in our efforts through special promotions. As part of our
“Genießen und Gutes tun [Enjoy and do good]” promotion, sales of our Privat Kaffee coffees have generated
more than 2.4 million euros for our education project in Guatemala since 2013.
··In 2010, Tchibo was certified by Hertie Foundation’s berufundfamilie gGmbH as a ‘family-friendly company’. In
2013, we were recertified through 2016.
Status quo 2014 and Goals for 2015
Coffee value chain
Sub-goals 2014
Status quo
Remarks
Project level
Carry out further Tchibo Joint Forces!® projects in East
Africa, Colombia and South America (Rainforest Alliance and
possibly Fairtrade certification)
Tchibo Joint Forces!® was expanded to include:
··a project in Tanzania (Rainforest Alliance)
··a project in Colombia (Rainforest Alliance)
··two projects in Honduras (4C)
··a project in Papua New Guinea (4C)
Initiate a project for the European coffee sector to partic
ipate in the EU’s ‘Product Environmental Footprint’ pilot
project
The project has been initiated. Goal: review the possibility of
developing a ‘product category rule’ and draw up an easily
understandable consumer communication.
After finalising the development of a product category rule
for the carbon footprint, the basics for calculating a water
footprint for green coffee are to be developed in 2015.
The project was not realised. Instead, as part of our partic
ipation in the EU’s Product Environment Footprint pilot
project, we are working on developing a Product Environ
mental Footprint (PEF) for green coffee.
Product level
Strengthen cooperation with Fairtrade and increase the
percentage of Fairtrade-certified green coffee in the Cafissimo Range
Implementation was postponed to 2015
Increase the share of green coffee covered by our sustain
ability concept to 35 %
We increased the share of validated and certified green coffee we processed to 34.3 %. Due to this minimal deviation,
we regard our target of 35 % as having been achieved.
Education projects in the source countries
Continue the day-care project in Huehuetenango with Coffee
Care; expand the teen project to all six sites
The project was continued and expanded.
Expand the promotion project in Guatemala by another three
day-care facilities in the coffee region of Huehuetenango
In 2014, preparations were made for constructing another
three day-care facilities in Huehuetenango. Completion is
scheduled for 2015.
fully achieved
achieved
partly achieved
not achieved
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Sub-goals 2015
Project level
Continue all existing Tchibo Joint Forces!® projects
Tchibo Joint Forces!® project in Huehuetenango, Guatemala (Rainforest Alliance)
Tchibo Joint Forces!® project in Minas Gerais, Brazil (Fairtrade)
Continue developing Tchibo Joint Forces!®: Start integrating optimised tools for impact assessment and transparency in the supply chain
Product level
Increase the share of the green coffee volumes covered by our sustainability concept from roughly 35 % in 2014 to 40 %
Continue the project and the Kita-teen project with our partner Coffee Care in the region of Huehuetenango (Guatemala) at six locations
Continue the Guatemala-Children project with our project partners Save the Children in probably nine day-care (CAIs) in the coffee regions
Huehuetenango and Chiquimula
Construction of a new education project in Tanzania with our project partners with two educational priorities: 1. Creation of training opportu
nities and 2. Improving the quality of primary school in the project region at Mbozi
Consumer Goods value chain
Sub-goals 2014
Status quo
Remarks
Integrated / holistic supplier management
Continue rolling out the WE programme across the value
chain: 320 strategic suppliers / production sites are either
undergoing or have completed WE qualification.
320 strategic suppliers / production sites are either under
going or have completed WE qualification.
Carry out pilot project on wages in the supply chain.
Implemented as part of the WE qualification programme at
one producer each in Bangladesh and Ethiopia
Sustainable resources
75 % of the cotton products purchased for 2015 are sustainable (Organic, Organic Blend, CmiA, Better Cotton Initiative,
etc.).
The target was exceeded: 85 % (HVK 2015)
50 % of the products containing man-made cellulose fibres
(e.g. viscose) sourced for the 2015 selling year are obtained
by environmentally friendly standards in cooperation with
Lenzing AG.
The target was exceeded: 61 % (HVK 2015)
60 % of the wood products purchased for 2015 are FSC® certified (except for products manufactured in Germany).
The target was not fully achieved: 40 % (HVK 2015)
Many of our products have regional / European origins.
FSC® certification is not widespread in these regions. We
have verified the acceptable origin of these products
through our Forest Tracing System (FTS).
50 % of the leather products purchased for 2015 are tanned
without chrome.
fully achieved
achieved
partly achieved
The target was exceeded: 98,9 % (HVK 2015)
not achieved
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Sub-goals 2014
Status quo
Remarks
Production ecology
Integrate environmental aspects in all audit tools and in
the WE qualification programme, as well as selected other
factories in CPI2
Minimum environmental standards were integrated into the
audit tools, and their verification made an integral part of
the monitoring process. The CPI2 pilot project was carried
out at selected WE suppliers in China and Bangladesh in
2014. Submitted ‘Detox Commitment’ to eliminate hazardous chemicals from the textile supply chain
School project in Benin: construct two additional schools.
Electrify schools with solar lamps.
The project was successfully completed in 2014: A total of
five schools were built. A recent needs assessment had revealed that the planned construction of two more schools
is no longer relevant. In addition, a total of 18 schools were
equipped with solar energy.
School project in Zambia: Complete four more new school
buildings and two renovations. Install solar systems at all
schools. Continue renewal of old wells, build new ones.
Since the project was initiated, Tchibo and its project partners have built a total of five school buildings. Each school
complex is equipped with its own well and solar installation.
The completion of the project is about one year behind
schedule.
fully achieved
achieved
partly achieved
not achieved
Sub-goals 2015
Fair wages and trade union rights
Continue the ACT (Action, Collaboration, Transformation) initiative efforts, together with the IndustriALL Global Union (international feder
ation of trade unions), for industry-wide wage bargaining between equal social partners.
Develop a concept to further strengthen the right to organise, as part of the WE program.
WE programme coverage / risk markets
80 % of products / purchasing volume in risk markets are to be covered by WE producers in future
Sustainable resources and products
90 % of cotton products purchased for sale in 2016 are sustainable (Organic, Organic Blend, CmiA, Better Cotton Initiative, GOTS).
70 % of products with man-made cellulose fibres (e.g. viscose) sourced for sale in 2016 are to be obtained in accordance with eco-friendly
standards in cooperation with Lenzing AG.
60 % of wood products purchased for sale in 2016 are certified according to the criteria of the FSC® (Forest Stewardship Council).
100% of leather products are tanned without chrome.
First-time sales of products made from / with recycled materials in 2016
Zambia: Complete the project
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Sub-goals 2014
Status quo
Remarks
Climate protection
Further develop our LOTOS (Logistics towards Sustain
ability) programme incl. defining a new target and a Roadmap 2020
Ambitious roadmap has been adopted through 2020,
stipulating a 30 % reduction in relative emissions in g CO2/
ton-kilometre by 30 % compared with 2006.
Develop and relaunch our offer of climate-friendly energy
Offer was further developed and relaunch performed
Further expand energy efficiency measures at the sites in
Germany
Savings of 500,000 kWh of electricity / year through
increased efficiencies at logistics centre in Bremen
Energy consumption at our coffee roasting plants is signif
icantly influenced by the workload, outside temperatures,
product ranges, catalyst temperatures and any significant
construction projects. As part of our DIN 50001-certified
energy management system, we will attempt to evaluate
these factors during 2014.
In 2014, the specific energy consumption (per ton of
roasted coffee) was reduced by 2.3 % compared to 2013
(Hamburg and Bremen roasting plants), thanks to technical
and organizational measures taken as part of the energy
management system
Resources
Complete the changeover to recycled and FSC® qualities for
in-house consumption and advertising materials at all inter
national business units where this is relevant
Paper consumption in administration and Tchibo Shops
has been fully switched to recycled and/or FSC® paper.
The switch to recycled and / or FSC grades for promotional
materials has been completed at all relevant international
business units.
Further develop our Non Food packaging strategy incl. a
roadmap for 2014 and the following years
The Roadmap was developed and in 2014 and adopted in
2015.
fully achieved
achieved
partly achieved
not achieved
Sub-goals 2015
Climate protection: Roadmap 2020
Further 1.5 % reduction in specific CO2 emissions per ton of roasted coffee at the roasting plants by reducing energy consumption and optimising processes
Reduce energy consumption at the warehouses in Gallin and Neumarkt: reduce relative warehouse emissions by 15 %
Cut savings as part of the logistics strategy (Clean Cargo Working Group / Clean Cargo Scorecard): reduce relative transport-related CO2 emissions by another 10 % (total reduction 2006-2020: 30 %)
Reduce average emissions of our vehicles in accordance with the EU regulation for manufacturers’ fleets, to below 95g CO2/km by 2020
Resources
Conserve resources in cardboard and paper by optimising sales packaging (the best possible share of recycled content) and increase share of
FSC®-certified sales packaging to 30 %
Increase resource efficiency by taking further steps on the path to closed-loop / circular economy
Switch Cafissimo capsules to recyclable foil and interior coating (in accordance with the dual systems) in 2016
Biodiversity
Revise and adopt the Biodiversity Strategy for 2020
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Sustainability Management | Milestones
Milestones
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2004
Introduction of our Social Code of Conduct (SCoC) for suppliers (April 2004)
In April 2004, we launched Tchibo’s SCoC, which forms the foundation for the conduct we expect from our consumer goods
suppliers with regard to social issues. This code of socially responsible conduct is based on the internationally recognised
core labour standards of the International Labour Organisation (ILO) and the Universal Declaration of Human Rights of the
United Nations and on SA8000 as the most important standard. The code forms part of all our contracts with suppliers and
is therefore binding for our consumer goods suppliers around the world.
2005
Review and fundamental revision of processes to promote social standards in our supply chain for consumer goods
(end of 2005)
Inspired in part by a highly effective publicity drive carried out by the Clean Clothes Campaign, at the end of 2005 we
reviewed our process for ensuring social standards in our consumer goods supply chain and began to over haul the entire
procedure. In particular, this included revising our Social Code of Conduct (SCoC) to bring it in line with all of the requirements outlined in the relevant conventions of the International Labour Organisation.
2006
Aligned our business activities according to the principles of corporate social responsibility (April 2006)
Since April 2006, the consultants in our Corporate Responsibility department have assisted Tchibo employees in systematically aligning their activities according to environmental and social criteria. The unit reports directly to the CEO and also
works together with our Corporate Communications Department as a point of contact for the company’s various stakeholders.
Revised the Social Code of Conduct (SCoC) for suppliers (April 2006)
We revised our SCoC again in April 2006. Key changes were the requirement of written contracts for employees and the
limitation of the working week to a maximum of 48 hours. The new SCoC also makes direct reference to the different source
ILO conventions so that everybody concerned fully understands the underlying requirements.
Seat on the Social Accountability International (SAI) advisory board
Our SAI membership enables us to launch an ongoing exchange of knowledge and experience regarding ‘social responsibility in the supply chain’ with our most important international stakeholders in society.
Coffee Service first introduces sustainable coffee products (June 2006)
Founded in 1972, the Tchibo Coffee Service supplies up to 4 million cups of coffee every day to international business
customers and bulk consumers in the restaurant and hotel business, as well as in workplace and community catering.
In June 2006, we first included sustainable coffee varieties in our out-of-home range, under the Vista brand. Our Vista
Brazilian, Vista Dark Roast and Vista drinking chocolate carry the Fairtrade seal, and our Vista Espresso is Fairtrade as well
as certified organic. At least 30 % of the coffee beans processed for our Piacetto-branded products are produced on farms
certified by the Rainforest Alliance™.
24
Participated in the Logistics Towards Sustainability (LOTOS) project (November 2006)
From November 2006 until May 2009, Tchibo was a partner in the Logistics Towards Sustainability (LOTOS) project. LOTOS
was established by TU Hamburg-Harburg and backed by Germany’s Federal Ministry for the Environment. The project
involved reviewing the processes in Tchibo’s procurement and transport chain for their resource use, climate impact and
opportunities for optimisation, drawing up possible courses of action, and finally deriving specific measures for reducing
transport-related CO2 emissions. After the joint stage of the project ended, Tchibo continued its LOTOS process with the aim
of reducing our CO2 emissions, by the year 2015, by 30 % compared to our 2006 figure. We achieved this target in 2011. We
are therefore currently working on defining new targets and further developing our logistics programme.
2007
Introduced the Code of Conduct for Employees (July 2007)
In July 2007, we introduced a code of conduct for our staff to ensure that Tchibo employees around the world feel bound to
ethical business practices, fair workplace habits and strict compliance with all laws. It contains various basic rules for working
with our business partners, and has served as a manual and guide for our employees since its introduction. In cases of infringements, our staff can contact an independent ombudsman.
Launched the WE programme with GTZ (now GIZ) (September 2007)
In September 2007, Tchibo and Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) (today GIZ: Deutsche Gesellschaft für Internationale Zusammenarbeit) set up the World Enhancement of Social Quality (WE) project. All of the project
participants – plant owners and managers, employees and their representatives as well as buyers at Tchibo – engage in
dialogue with each other to work towards significant progress in the working conditions at participating production sites in
China, Bangladesh and Thailand. After the successful completion of the pilot phase, which was funded by Germany’s Ministry for Economic Cooperation and Development, the project was expanded to other production sites and countries in 2010.
2008
Electricity from 100% renewable sources (January 2008)
Since 1 January 2008, our German offices, roasting facilities and warehouses only use green electricity. At the start of
2009, we also switched all of our German shops to green electricity. This means that 100% of the electricity bought for
these locations is now produced from renewable power sources.
Participated in the Product Carbon Footprint (PCF) pilot project (April 2008)
In 2008 and 2009, Tchibo took part in the German pilot project Product Carbon Footprint (PCF). The project is overseen
by the WFF, Germany’s Öko-Institut, the Potsdam Centre for Climate Impact Research and the THEMA 1 think tank, and one
of its objectives is to calculate the product-related carbon footprint of different consumer goods. Tchibo has continued this
commitment by joining in the follow-up project, ‘Plattform Klimaverträglicher Konsum’ (Platform for Climate-Compatible
Consumption).
Certified sustainable approved coffee products in our range (May 2008)
Since May 2008, Tchibo has offered an extensive range of coffees that bear the Rainforest Alliance, Fairtrade or Bio (certified organic) seals, to make it clearly visible to customers that these coffees are produced and traded in accordance with
the respective standard’s requirements. For instance, since 2008, all ‘Privat Kaffee’ blends and our ‘Frische Ernte’ products
have carried the Rainforest Alliance seal. In June 2008, our BioGenuss product was our first coffee to be certified organic
with the ‘Bio’ seal, and in October 2008, we included our first Fairtrade espresso blend in our Tchibo shop range.
Cotton produced by “Cotton made in Africa” and “Textile Exchange” (June/October 2008)
Since autumn 2008, Tchibo has included items made with cotton from two programmes – Cotton made in Africa and Textile
Exchange – in select weekly ranges. The former is a project managed by the Aid by Trade Foundation, with the aim of improving the yields and sales markets of cotton growers in sub-Saharan Africa. Our “organic cotton” items are made from cotton
produced in line with the internationally accredited standards of the Textile Exchange NGO.
25
Published our first Sustainability Report (December 2008)
In December 2008, Tchibo published its first sustainability report as an online version. In the report, the company presented its first in-depth, transparent account of its activities in all major sustainability-related areas. The Global Reporting
Initiative audited our sustainable development report in December 2008 reviewed and awarded it an A, the highest possible
grade. Since then, we have issued a sustainability report every year.
2009
Introduced Privacy Protection / Data Protection management (June 2009)
Since June 2009, data/privacy protection has been codified in Tchibo’s processes through a comprehensive management
system. Cross-departmental taskforces examine various matters of data security under the supervision of our data security
officer. Coordinators in each department help to identify privacy-related issues at an early stage and make sure that data
protection is a core element in all of our processes.
Expanded the sustainability system to sales companies in Eastern Europe (July 2009)
In 2009 we began to involve the Eastern European subsidiaries in our existing sustainability management systems, step by
step. The first step involved drawing up a mission statement for our Eastern European subsidiaries based on our Tchibo DNA,
and our ‘Stärken stärken 2010’ and ‘Zukunft braucht Herkunft’ corporate strategies. To put it into practice, we developed a
sustainability management system adapted for these regions, and started introducing it in 2010. Since then, we have made
further progress. For instance, our national subsidiaries in Eastern Europe have developed their own sustainability programmes and successfully carried out various measures. Our subsidiaries in Austria and Switzerland have also carried out a variety
of activities in the area of sustainability, recorded them in an inventory, and appointed central sustainability officers.
FSC certification (August 2009)
In 2009, Tchibo became the first major German retail company to obtain certification for its wood and paper products in accordance with the strict requirements of the Forest Stewardship Council (FSC®) standards. In this context, we also initiated
a project to expand our sustainability-related activities to the sourcing of products and packaging, as well as internally used
material made from FSC-certified paper and wood. Since then, we have, for example, steadily increased the proportion of
environmentally compatible paper grades and now print our magazines and advertising materials on FSC®-certified paper.
For packaging, we have established guidelines for increasing environmental compatibility, which our suppliers commit to as
part of contractually stipulated packaging specifications.
Joined the Global Compact (November 2009)
On 18 November 2009, Tchibo joined the UN’s Global Compact, thereby committing to the Global Compact’s ten core principles regarding human rights, labour standards, environmental protection and anti-corruption measures, as well as their
inclusion in its business processes. We publish our Communications on Progress in line with the publication rhythm of our
sustainability reporting.
Tchibo Coffee Bars: only sustainably produced coffee grades (end of 2009)
Since the end of 2009 our Tchibo Coffee Bars throughout Germany and Switzerland have only used certified coffee blends
for our caffeinated coffee beverages and specialties. The beans that go into our espresso-based specialties carry the Fairtrade seal of approval, while our filter coffee is made from beans grown on Rainforest Alliance-certified farms.
2010
Membership in the Ethical Trading Initiative (ETI)
Through project-oriented participation in the ETI we cooperate with relevant social stakeholders on solutions to particular
challenges relating to social responsibility issues that arise within the supply chain of consumer goods. These include in
particular the sub-themes of living wages, freedom to join trade unions and the right to collective bargaining.
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‘Our contribution – Taking the lead in green’ week (August 2010)
In August 2010, we dedicated an entire weekly range to the topic of efficient resource use at home. Under the heading ‘Our
contribution – Taking the lead in green’, we offered our customers an extensive range of consumer goods to help them save
water and energy and reduce CO2 emissions produced in the home. These products included timer switches, digital radiator
regulators and shower accessories for cutting water consumption. We also provided customers with additional aids, such as
advice on saving energy with no obligation to buy.
Added ‘green’ energy products to our range (October 2010)
Since October 2010, Tchibo has offered its customers ok power-certified green electricity generated 100% from hydropower, and in January 2011, Tchibo also started marketing a climate-friendly natural gas. This gives our customers a way
to switch to a climate-compatible and secure energy supply, In 2012, we also offered three different versions of an energy
concept house by Heinz von Heiden GmbH that enables energy-efficient living in your own home.
Helping people to help themselves: school project in Benin (year-round, including project preparation)
As part of its Cotton made in Africa efforts, Tchibo sponsors a school project in Benin launched in 2010. Together with the
Aid by Trade Foundation, the German Society for International Cooperation (GIZ), the German Investment and Development
Organisation (DEG) and our local partners in Benin, we work to improve the educational infrastructure and quality of schooling in regions where the Cotton made in Africa project is active. A lot has been achieved since 2010. Among other things,
by the end of 2012 six wells were built, 20,000 school uniforms distributed, and 10,000 textbooks ordered. Two of the seven
school buildings have also been completed.
Coffee projects in Guatemala and Kenya
We support coffee farmers in switching from conventional to responsible coffee-growing methods. In 2010, we initiated
two projects, in which ten coffee farmers from Guatemala and 13,000 smallholder growers from Kenya who form a cooperative prepare their businesses for certification in line with the Rainforest Alliance’s standards. In Kenya, we also launched
the Mount Kenya Project, which supports women farmers and their families in the four areas of ‘water’, ‘education’, ‘farm
animals’ and ‘construction materials’. We also contribute to the development of a sustainable coffee sector with a number
of other projects.
2011
Expanded the WE qualification programme
115 production plants are now covered by our WE qualification programme (Worldwide Enhancement of Social Quality),
which we launched in 2007 in cooperation with the German Society for International Cooperation (GIZ) and the Federal
Ministry for Economic Cooperation and Development (BMZ). With this programme, we pursue the goal of improving working
conditions in Asian production plants through dialogue.
Reduced CO2 emissions
In our procurement and transport chain, we cut CO2 emissions by 30 % between 2006 and 2011. We laid the foundations
for this in 2006 with the LOTOS project (Logistics towards Sustainability). In cooperation with the Technical University of
Hamburg-Harburg and the German Federal Environment Ministry (BMU), transportation routes and methods were analysed,
approaches for the targeted protection of the climate were identified and measures for avoiding CO2 were implemented.
2012
Increased sustainably produced green coffees in the range
In 2012, over 25 % of the green coffee we process annually came from sustainable sources – nearly twice as much as in 2011.
In our Privat Kaffee range, we have converted all varieties to 100% sustainable grades. Since 2012, we were also the first
coffee capsule supplier on the German market to exclusively use sustainably grown coffee for our Cafissimo capsules. In
this connection, we have also started working with UTZ Certified, an organisation whose coffee-growing standards focus on
environmental and economic aspects.
27
Increased sustainably grown cotton in the textile range
With 12.5 million textile items from certified and validated sustainable cotton production in 2012, we are one of Germany’s
leading vendors of products made from responsibly grown cotton.
Further expanded the WE qualification programme
By the end of 2012, we expanded our WE qualification programme in Asian production plants once more and included
around 200 production plants.
Conversion to FSC grades
In the WWF rankings, Tchibo was named one of the best retailers in Germany for its certified wood and paper product range.
Since 2012 we have exclusively printed our magazines, catalogues and advertising materials in Germany, Austria and Switzerland on FSC®-certified paper.
Climate-friendly fleet (July 2012)
The German environmental organisation Deutsche Umwelthilfe e.V. awarded Tchibo a ‘Green Card for credible climate awareness’ for our fleet policy, which focuses on a continual reduction of greenhouse gas emissions.
Business Ethics Award from the German Business Ethics Network (DNWE) (November 2012)
The German Business Ethics Network (DNWE), a coalition of representatives from science and academe, business, and associations, awarded Tchibo its 2012 Business Ethics Award, thereby recognising our efforts on our path towards sustainable
business conduct – especially in the area of consumer goods.
Joined the ‘Biodiversity in Good Company’ initiative (December 2012)
In 2012 we joined the Biodiversity in Good Company initiative. Launched in 2008 by the German Federal Department of the
Environment, it is a cross-sector platform for businesses that are especially committed to protecting biological diversity and
integrate this into their environmental and sustainability management.
2013
Increased the share of sustainable green coffee
We increased the proportion of validated and certified green coffee that we process during the year from 27.3 % in 2012 to
30.4 % in 2013. This increase resulted from a resolute development of our sustainable product ranges. In 2013, we offered
the first two Grand Classé editions made from 100% FAIRTRADE coffee in our Cafissimo range. With Barista Espresso and
Barista Caffè Crema, we also introduced a new FAIRTRADE-certified premium product range in 2013. The green coffee in
another new range, ‘Mein Privat Kaffee’, comes from coffee farms that meet either the requirements of the Rainforest Alliance Certified™ or UTZ Certified standards.
Increased share of sustainably produced cotton in the textiles range
In 2013, more than 40 % of our cotton textiles range contained cotton from validated or certified sustainable sources; in
2014, this figure increased to over 70 %. In July 2013, we introduced a lingerie collection made from 100% organic cotton
and certified according to Textile Exchange’s OE 100 and OE Blended standards.
Wood and paper from responsible sources
Since 2013 the wood and paper products we purchase comes from responsible sources. Around 30 % of it is FSC®-certified
(Forest Stewardship Council), almost 70 % corresponds to the FTS standard (Forest Tracing System). In 2013 we offered our
customers a garden furniture and crafts range consisting entirely of products made with FSC®-certified wood and paper.
Launch of the ‘Enjoy and do good’ promotion
In 2013, we invited our customers to join us in promoting our education project in Guatemala under the heading ‘Enjoy and
do good’. For each packet of Privat Kaffee sold, we donated 10 cents to our local project partners. The proceeds were used
to open six day-care centres in the Chiquimula region in November 2013.
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More energy-efficient roasting
Due to the high amount of energy required in roasting processes, in 2013 and 2014 we focused on increasing the energy
efficiency of the processes at our coffee-roasting plants in Hamburg and Berlin. To this end, we introduced an ISO 50001
energy management system in 2013.
Joined the ‘Fur Free Retailer Programme’
We take animal welfare very seriously, and banned the sale of fur products more than nine years ago. This also applies to
‘trimming’, for example coat collars. To reaffirm this commitment, we became a member of the international ‘Fur Free Retailer Programme’ set up by the animal protection organisation ‘Vier Pfoten’ in 2013.
Re-certification as a ‘family-friendly employer’
In August 2010, Tchibo became the first retail company in Germany to be certified as a ‘family-friendly employer’ by the
Hertie Foundation’s berufundfamilie gGmbH initiative. In 2013 we were re-certified through 2016. This entails other binding
target agreements whose achievement is reviewed annually by an independent auditor.
Awards for our efforts
In 2013 we received awards from various organisations for our commitment to sustainability. In 2013, Tchibo won the CSR
Award of the German Federal Government as well as the European Commission’s CSR Award. We also received the 2013
Logistics Sustainability Award and for the second consecutive year the German environmental organisation Deutsche Umwelthilfe’s ‘Green Card for credible climate awareness’. More information about the awards can be found here.
2014
Increased share of sustainable green coffee again
We are systematically increasing our share of validated and/or certified sustainable coffee. In 2014 it accounted for
approximately 35 % of our total green coffee. The coffees are certified according to the criteria of the Rainforest Alliance,
Fairtrade, UTZ Certified and the organisations behind the EU Bio label, or are validated to the baseline standards of the 4C
Association.
Cotton: Tchibo is the world’s #3 largest supplier of organic cotton / GOTS certification
We increased our sales of textiles containing sustainably grown cotton from 40 % in 2013 to around 80 % in 2014. As a
result, nearly 6,000 tons of organic cotton was woven into Tchibo linens and household textiles. In 2015 around 85 % of
our textiles containing cotton were manufactured with responsibly cultivated cotton. We work together with internationally recognised standards organisations that support this goal. In cotton products, we are concerned not only about the
raw materials, but about the entire product including dyes, prints and accessories. That is why in 2014 we were certified in
accordance with the demanding Global Organic Textile Standard (GOTS).
Signed the Detox Commitment
In addition to social issues, ecological requirements are an important aspect of our integrated supplier management system. We check our suppliers for compliance with our environmental standards, share with them important know-how about
protecting the environment and climate, and help them make improvements by giving specific recommendations for action.
In 2014 we signed Greenpeace’s ambitious DETOX Commitment to eliminate hazardous chemicals from the textile supply
chain by no later than 2020.
Purchasing freeze on products made from angora fibres
Angora fibres are obtained from the shorn fur of the Angora rabbit. According to research by the animal rights organisation
PETA, its production entails unacceptable practices at some Asian farms. Although we were able to rule out the use of the
practices shown in the PETA video at our manufacturers, we initially issued a temporary purchasing freeze after learning of
the abuses. The freeze will remain in place as long as there are no farming and shearing methods that are inappropriate to
the welfare of Angora rabbits.
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Tchibo Joint Forces!® qualification programme expanded (Coffee value chain)
In Tchibo Joint Forces!®, we work with competent partner organisations to help coffee farmers increase their productivity
and income in an environmentally sound and socially acceptable way. In 2014, we added a new module called ‘Local community involvement’ to the Tchibo Joint Forces!® offer. The aim is to develop the social structures in the environment of the
coffee farms and improve the families’ living conditions.
Increased the volumes purchased from WE producers (Consumer Goods value chain)
Our WE programme supports managers and employees in meeting social requirements such as health protection, fair
wages, non-discriminatory workplaces and reasonable working hours, and helps them implement social and ecological standards through practical training. Since the pilot phase ended in 2011, we have been expanding the WE programme to our
strategic suppliers. To date 320 suppliers have completed the WE qualification programme or are in the process of completing it. In 2015, we sourced around 75 % of our consumer goods purchasing volume from WE suppliers in risk markets.
Joined the Advisory Board of the Bangladesh Accord
The Accord on Fire and Building Safety in Bangladesh is a five-year, binding contract for building and fire safety in the garment industry in Bangladesh. More than 200 companies have now committed to the Accord. We were one of its first two signatories in 2012, and have worked with other international trading companies, producers, the government, trade unions and
NGOs ever since to assert stricter fire and building safety standards for the textile industry in Bangladesh. Since November
2014, we have sat on the Accord’s Advisory Board together with representatives of five other companies.
Launch of the Alliance for Sustainable Textiles
The Alliance for Sustainable Textiles now represents more than 50 % of the textile industry in Germany. Like other major market participants, Tchibo joined the Alliance in June 2015. The partners are currently drafting a joint action plan to advance the
implementation of environmental and social standards at all stages of the textile supply chain.
‘Lieblings¬stücke’ (‘Favourites’) permanent product range introduced
We are continuously working to improve all processes directed at the customer in the company. This results in continuous
new offers such as the ‘Tchibo Lieblings¬stücke“ (Favourites) permanent product range, which we introduced in the online
shop in 2014. Our aim is to gradually convert the entire ‘Tchibo Lieblings¬stücke’ range to sustainable grades.
Third ‘Green Card’ for climate-friendly company car fleet
Thanks to our fleet strategy, we have been able to steadily reduce our emissions over several years. In 2014 we further
reduced the average CO2 emissions of our vehicle fleet, from 120g CO2/km in 2013 to 119g CO2/km. In 2014, the German environmental organisation Deutsche Umwelthilfe awarded Tchibo a ‘Green Card for credible climate awareness’ for the third
consecutive year.
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Sustainability management | Tchibo International | Strategy
Commitment without borders
The alignment of our business activities to economic, environmental and social principles is not limited to Germany. On
the way towards a 100% sustainable business, in 2009 we began to gradually involve our international business units in
our sustainability management. They contribute significantly to making our business activities sustainable worldwide.
Tchibo is represented by sales companies in Switzerland and Austria as well as in Eastern Europe: Czech Republic, Hungary,
Poland, Romania, Russia, Slovakia and Turkey. In addition, we run one purchasing office each in Hong Kong and Bangladesh,
which assist us in procuring consumer goods and implementing our activities in the value chain.
Closely interlinked: global and national sustainability efforts
At our international sites, we pursue the same sustainability goals that apply to Tchibo in Germany. In particular, this includes the long-term conversion of our product ranges to sustainable qualities in our Coffee and Consumer Goods lines of business. The supply chain management necessary for this is centrally defined for the whole company. Ensuring environmental
and social standards in the manufacture of our products and other global processes is also a centrally managed task. The
international business units define complementary individual targets in their national Corporate Responsibility programmes –
here the focus is on site-related measures, for example in the field of environmental protection, employee motivation, and
customer communications.
The sustainability programmes are updated annually and approved by Tchibo headquarters and the national general managers.
Valuable trading of experiences in the in-house network of experts
At each international business unit, an appointed CR manager coordinates the regional activities with the local management, while also working closely with the Hamburg headquarters. The measures in the respective national programmes
differ in the scope and depth of their implementation, as they reflect the level of awareness in the respective country– both
at the business units as well as on the customer side.
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In order to support the individual companies, Tchibo has initiated a compre
hensive network for the CR managers at the various business units. Twice
a year, they come to the Hamburg headquarters to compare content and
strategies and share their experiences under the lead management of the
Corporate Responsibility (CR) department. The last meeting was held in February 2015. The CR managers use this exchange between partners to learn
from each other and continually expand their knowledge.
Promoting social development in the regions
Our international business units not only practice an exchange amongst each other, but also participate in the public discourse on sustainability in their respective countries. In particular, they work with non-governmental and multi-stakeholder
initiatives to develop sustainable solutions to economic, social or environmental issues across various industries.
Simultaneously, the international business units help to build public awareness for responsible consumption. They system
atically inform people about our sustainable ranges in promotional materials and at the point of sale (POS), and transpar
ently communicate our commitment through their own company websites and social media platforms.
At a glance: our international sales companies
The graph below gives an overview of the sales markets we’ve already integrated into our sustainability management:
Tchibo in Austria
Tchibo in Switzerland
··Founded: 1969
··Founded: 2001
··Location: Vienna
··Location: Wallisellen
··Business model: Tchibo Shops, Depots,
online shop, Coffee Service
online shop
··Number of employees: 1.139
··Number of employees: 353
··Number of Tchibo shops: 140
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Tchibo in Poland
Tchibo in the Czech Republic (CZ) and Slovakia (SK)
··Founded: 1992
··Founded: 1991
··Location: Warsaw, Marki
··Location: Prague, Bratislava
··Number of employees: 370 (CZ); 96 (SK)
··Number of Tchibo shops: 37 (CZ; 11 (SK)
Tchibo in Romania
Tchibo in Turkey
··Founded: 2001
··Founded: 2006
··Location: Bucharest
··Location: Istanbul
··Business model: Depots, Coffee Service
··Business model: Tchibo Shops, e-commerce
Tchibo in Russia
Tchibo in Hungary
··Founded: 1993
··Founded: 1991
··Location: Moscow, St. Petersburg
··Location: Budapest
··Business model: Depots
online shop
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Sustainability management | Tchibo International | Progress made in 2014
Successful implementation of Corporate
Responsibility (CR) programmes
In 2014, the international business units again successfully contributed to the achievement of our company-wide
sustainability targets, and put measures from their own national Corporate Responsibility programmes into practice.
In their national Corporate Responsibility programmes, our international business units mainly focus on regional issues,
with an emphasis on the Tchibo action areas Customers & Products, Environmental Protection in our Operations, and Employees.
Customers & Products: external and internal sustainability communication
Sustainability communication are an important element in explaining the benefits of sustainably produced products to our
customers in all sales regions. In addition to materials developed in Germany, all international business units use their own
innovative formats that are adapted to their respective national customer and stakeholder requirements.
Examples include the social media campaign on sustainability labels of our business unit in Poland as well as the animated
film “Mr Coffee Bean in the land of Coffee” that was used by several countries in 2014. It communicates how people and
the environment benefit from sustainable coffee cultivation in an entertaining way. In 2015, the film “Mr Coffee Bean in the
Forest”, which explains the benefits of sustainable forest management, will also be synchronised and disseminated through
social media channels by the several business units.
Simple explanation of sustainability labels
Labels identifying sustainable products must be credible and understandable for customers and have a high recog
nition value. We want to further increase customer awareness of the sustainability aspects of our products in order
to promote sustainable consumption. One example of the social media campaign of our business unit in Poland that
told customers more about the sustainability labels used on Tchibo products. In a separate flyer in our Tchibo Shops
and on Facebook, customers were given information about what the labels represent, on what products they can be
found, and their benefits for consumers.w
The campaign was so successful that it won the PRCH Retail Award 2014 in the Media Sales Network 2014 CSR Campaign category by the Polish Council of Shopping Centres.
Internal communication also play an important role in the success of the Corporate Responsibility programmes: some business units have created separate sections on their intranets where they regularly inform their staff about new and ongoing
sustainability activities. Beyond this, employees are systematically trained on sustainability topics. The focus here is on
the staff in our Tchibo Shops, to enable them to explain the sustainability aspects of our products and competently answer
customers’ questions.
In addition to our Coffee and Consumer Goods range, the business unit in Austria offers their PrivatCard customers an
especially sustainable product: Naturstrom [green electricity] by Alpen Adria Energy (AAE).
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Green electricity for the home
For several years now, Tchibo has offered its customers in Germany ‘ok power’ certified green electricity from renewable energy sources. Tchibo/Eduscho in Austria is taking a similar path. Since 2013, the i business unit has offered
its PrivatCard customers an exclusive sustainable product in cooperation with the family-owned company Alpen
Adria Energy (AAE) in Carinth (Kärnten): “Naturstrom” contracts at special rates featuring environmentally friendly
electricity from domestic [Austrian] sources. Since 2014, all Tchibo/Eduscho Tchibo Shops and the headquarters in
Vienna have been fully powered by climate-friendly green electricity from AAE.
“This offer gives our customers a way to switch to 100% natural electricity in their homes –
mainly from wind and solar power, and certified with the Austrian eco-seal. So they not only get
an eco-friendly energy mix at an attractive price, but also promote the production of sustainable
energy in Austria.”
Manuela Schneider (Head of Corporate Communications & Corporate Responsibility at Tchibo/Eduscho Austria):
Protecting the environment in our operations: low-consumption offices and Tchibo Shops
In addition to selling sustainable products, the international business units are also working hard to reduce adverse environ
mental effects caused by the operation of their own Tchibo Shops and offices. They take measures to reduce the water,
paper and electricity consumption of their administrative departments. Our companies in the Czech Republic, Poland and
Hungary had their measures successfully audited and accordingly certified in 2014 by external environmental organisations.
Similar programmes are planned in Turkey and Slovakia in 2015.
In 2012, Tchibo Poland and the “Partnership for the Environment” foundation jointly developed a certification standard
for “Green Shops” and introduced it for all Polish Tchibo Shops. It is the first environmental certificate in Polish retail. In
cooperation with the foundation in 2013 the standard was further developed for e-commerce. The Tchibo Poland web portal
became the first online shop in Poland to be awarded the “Green Shop” certificate.
WWF collaboration project in Turkey
Our business unit in Turkey has likewise developed a concept for “Green Shops”: it teamed up with the environ
mental organisation WWF in 2014 to define Turkey’s first-ever environmental criteria for retailers. They cover the
areas of heating and cooling, electricity, water and paper consumption, and waste, as well as architecture, interior
design and furniture. The WWF reviews compliance with the criteria twice a year. In our Tchibo Shops, customers
are also informed about our sustainability activities in a bid to increase their awareness of sustainability issues. Two
Tchibo Shops in Istanbul and Ankara have already been redesigned and successfully audited according to the WWF
criteria, with more to follow.
To preserve forests for future generations, we take care to ensure that the timber and wood pulp used for our furniture and
paper products come from responsible sources. An important partner for Tchibo here is the Forest Stewardship Council
(FSC®), an internationally recognised organisation that campaigns for responsible forest management. The international
business units, too, work with the FSC® to implement our sustainability strategy and are successively converting their adver
tising and communication materials to environmentally friendly paper qualities.
In Germany, Austria and Switzerland Tchibo has printed its magazines, catalogues and advertising materials on FSC®-certified paper since 2012, in the business units in the Czech Republic and Slovakia since 2013 and in Turkey, Poland and Hungary since 2014. In addition, except for Romania and Russia, all international business units have been FSC®-certified and
are entitled to use the organisation’s seal on wood and paper products.
Employees at Tchibo: Health management, work-life commitment and volunteerism
International business units set different priorities in their offers for employees. Some are particularly active in the field of
health promotion and organise monthly health days, e.g., where they offer information on topics like preventive health or
host sports programmes for their employees. Other focus on work-life balance, which the business unit in Czech Republic
has been especially successfully with: after being awarded the basic certificate in 2013, it was awarded the “Family & Work
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Audit” certificate in 2014. The audit project was initiated by the Czech Ministry of Labour and Social Affairs and is supported by the EU “Human Resources and Employment Operational Programme”.
We not only support our employees with preventive healthcare and in creating a healthy work-life balance, we also seek to
encourage the personal efforts of our employees. In Poland, the Czech Republic, Hungary and Turkey, we offer our employees the opportunity to volunteer during working hours. In addition to education projects in our sourcing markets for coffee
and cotton, which are primarily controlled by the headquarters in Germany, the international business units promote oppor
tunities to help people in need in their own countries. In 2015, these efforts will be extended to Slovakia as well.
Helping people to help themselves
One example of charitable involvement is a pilot project run by our business unit in the Czech Republic, whereby
employees from commercial businesses support social enterprises through voluntary work. They contribute their
knowledge and professional experience and thus especially help to integrate socially and economically disadvantaged
people into society through employment offers. In this context employees from Tchibo Prague support the non-profit
company Rettigova in Litomyšl. It operates a restaurant and café, most of whose employees live with a disability. The
Tchibo staff offered them free training sessions on coffee expertise, customer communication, and HR topics.
“By participating in the project, we seek to help social enterprises become more competitive and
support disadvantaged people in finding a job. Our employees benefit from volunteering as well:
they gain valuable experience in dealing with different people, and improve their communication
skills. After our first positive experiences, we will continue to expand and develop the project.”
Lenka Mašková, Corporate Responsibility Manager TCZ/TSK
Outlook: Spotlight on communication, efficiency and measurability
In the years ahead, the international business units will continue developing their Corporate Responsibility programmes
and expanding their respective activities. Communication with customers and stakeholders remains a key component in all
of the programmes. For this purpose, communication and advertising materials from Germany will continue to be adapted
to local needs, and own campaigns will be developed. In addition, starting from 2015 the Sustainability Report published
in English and German will be supplemented with a ‘Balance Sheet’, which can then be adapted by the business units and
translated into their respective local language.
In the area of environmental protection, the focus in the years ahead will be on implementing relevant EU directives, such
as the Energy Efficiency Directive and the directive on the reduction of the use of plastic bags. The business unit in Austria has initiated a pilot project in this connection, with the aim of reducing the consumption of disposable plastic bags and
encouraging the use of reusable bags. Since 01 July 2015, Tchibo Austria has charged a fee for all disposable plastic bags; a
portion of the proceeds from this goes to the environmental protection initiative MUTTER ERDE (MOTHER EARTH).
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Sustainability report 2014 | Coffee value chain
Coffee value chain
Coffee value chain | Strategy & management
Best Tchibo coffees – Now and into the future
Tchibo has offered its customers top quality coffee for over 60 years. Flavour and taste are very important to us – and
we want to live up to this aspiration in future as well. That is why we are committed to maintaining and continually
improving the conditions for the cultivation of high-quality coffees. We work with coffee farmers and standards organi
sations to promote sustainable, yield-increasing farming practices. We are also involved in cooperation across organisa
tions and borders – as many structural challenges in the coffee industry can only be resolved by working together.
Tchibo is on its way to becoming a 100% sustainable business. So in the medium term, we want to offer only coffee qualities
whose cultivation complies with economic, ecological and social requirements in equal measure. This is the only way we can
contribute to safeguarding the livelihoods of coffee farmers and their families. That is why we take a comprehensive approach to advocating the sustainable development of the coffee supply chain and the entire coffee sector.
Ensuring the highest quality - Supporting producers on the ground
Tchibo coffee is characterised by the highest standards of quality and freshness. We use the best beans from high-quality
Arabica coffee plants for our coffee. For our Espresso range of products we also use Robusta coffee to achieve the ‘typical’
espresso flavour. The beans are grown in the ‘coffee belt’ along the equator in South and Central America, Africa and Asia –
mostly in developing and emerging countries. In order to offer our customers consistently high-quality coffee, we maintain
good, longstanding supplier relationships with exporters and traders from the producing countries. Our coffee experts are
regularly on-site to ensure the quality of the green coffee and inform themselves about growing conditions.
One special feature of the coffee sector is the high proportion of smallholders among the producers. Four-fifths of the
world’s 25 million coffee farmers generally cultivate less than two hectares of land each. To secure their livelihoods, they
usually grow other agricultural products besides coffee or lease out their land and work additional jobs. Their resources are
as limited as their access to knowledge, technology and financial resources. Many lack expertise in environmentally friendly
growing methods that prevent long-term soil exhaustion. As a result, their yields diminish over time and the quality of the
green coffee suffers. In the long run, this jeopardises the coffee farmers’ livelihoods. Given these conditions, young people
in particular lack incentives to continue growing coffee. So to achieve sustainable development in the coffee sector, it is
crucial to improve the situation of smallholders in the growing regions.
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Achieving sustainable coffee cultivation, step by step
With this in mind, our approach to sustainable devel
opment in the coffee sector begins with the smallholders.
In particular, we help them to safeguard the quality of their
green coffee and increase their yields. Only then will they
eventually be in a situation to convert their operations to
more sustainable farming practices. We see this evolution
among the coffee farmers as a gradual process whose
aim is sustainable coffee farming in the spirit of Tchibo’s
sustainability concept. Specifically, this means:
··The income from cultivating coffee enables present
and future generations of farmers to earn a living and
provide their families with a good standard of living
(economic sustainability).
··The coffee farmers safeguard the ecological bases of cultivation such as soil fertility and the water supply (environ
mental sustainability). They are equipped with the necessary knowledge to adapt to the repercussions of climate change
(environmental sustainability).
··Their integration and involvement in production and marketing cooperatives facilitates coffee farmers’ market access
and the transfer of knowledge, e.g. about farming methods (social sustainability). At the same time, we support the
development and testing of models that contribute to more stable local social structures, for instance through educa
tional programmes for women and children.
Our strategic approaches
We want to contribute to making sure that more and more coffee farmers meet these criteria and include all Tchibo coffees
in our sustainability concept in the medium term. To achieve this, our efforts include:
··Training smallholders as part of our Tchibo Joint Forces!® training programme
··Increasing the sourcing of green coffee that is validated and certified according to recognised standards, and
··Cross-sector collaboration to address and solve structural challenges.
Tchibo Joint Forces!®: Joining forces to offer qualification programmes
Most smallholders lack the necessary know-how to make
their businesses more sustainable. Therefore, since 2012
with the Tchibo Joint Forces!® (TJF) qualification programme together with local partners we have offered
coffee farmers special training sessions. In five consec
utive modules, we teach them how they can increase their
productivity, profitability and product quality. All coffee
farmers who successfully complete the programme receive
additional validation or certification according to the
requirements of the relevant internationally recognised
standards organisations, the Rainforest Alliance, Fairtrade,
UTZ Certified or 4C Association. As a result they meet
important ecological and social requirements and improve
their marketing opportunities.
By the end of 2014, around 30,000 coffee farmers from six countries had already achieved certification or validation by
participating in the Tchibo Joint Forces!® programme. Tchibo benefits as well: we offer the project participants a long-term
collaboration that also includes buying the sustainable raw coffee on fair terms. We are currently planning two more Tchibo
Joint Forces!® projects in Brazil and Guatemala.
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Internationally recognised standards for more sustainable coffee cultivation
We can positively influence the expansion of sustainable growing practices by purchasing raw coffee from farms that have
been certified or validated by internationally recognised standards organisations. When selecting these organisations, we
are careful to ensure that their requirements are coordinated in dialogue with all the relevant stakeholders and are contin
ually evolved. They must also actively support local farmers in the implementation of their standards. We currently purchase raw coffees that are certified compliant with the criteria of the Rainforest Alliance, Fairtrade, UTZ Certified and the EU
Bio label organisations, or validated according to the baseline standards of the 4C Association. We have increased the share
of validated and certified green coffee we process from 8 % in 2008 to around 35 % in 2014. Our goal for 2015 is a further
increase to 40 %.
Alliances for better conditions
We work closely with regional, national and international protagonists in the coffee industry to create the conditions for
more sustainable coffee production at a structural level as well. Together we work to improve the infrastructure in the
producing countries, facilitate coffee farmers’ access to credit and markets, and provide them with knowledge on how to
handle climate change. In our cross-sector approach we pursue three priorities to improve the situation for coffee farmers:
··Cooperation to promote sustainable farming methods
··Initiatives to protect the environment and slow down climate change
··Educational projects in the regions of origin
Among other things, we participate in the Sustainable Coffee Programme (SCP), an alliance of major stakeholders from
politics, industry, associations and NGOs. It is based on a Dutch government initiative (Initiatief Duurzame Handel – IDH) and
develops region-specific approaches to solving structural challenges in the coffee-growing countries, such as smallholders’
access to knowledge about good agricultural practice, or market conditions. Tchibo is a founding member of the SCP and
is represented on the Steering Committee alongside other coffee sector companies. The objective of the SCP is to further
network the different alliances and programmes in the coffee sector.
The structural challenges in the coffee sector are exacerbated by climate change. In order to achieve good long-term
returns from high-quality green coffee, coffee farmers must adapt their farming practices to the consequences of global
warming. Temperature increases lead not only to erosion, landslides and water shortages, but also to increased infestation
of plants by pests and diseases. Therefore, more resistant coffee plants and optimised farming methods are needed, for
example. We are working with other companies in the coffee industry, standards organisations, and smallholders who have
already undergone training to pass on the required knowledge to other coffee producers. To this end, we have participated
in the Coffee & Climate development partnership since it was founded in 2010.
Education is a key contributor to improving the living conditions of coffee farmers and their families. That is why, as part
of its social commitment, Tchibo has launched education projects with selected partners in the producing countries of
Guatemala and Kenya according to the principle of ‘helping people to help themselves’. The offers are addressed at coffee
farmers and their families.
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Coffee value chain | The sustainable development of the coffee sector | Tchibo Joint Forces!® qualification programm
Joining forces: Helping coffee farmers
with the transition
Our Tchibo Joint Forces!® qualification programme pools forces where they are most needed: among the smallholders on
the ground. Their resources are frequently limited and they lack the necessary know-how for profitable and sustainable
coffee farming. With the support of competent partner organisations Tchibo Joint Forces!® helps coffee farmers increase their productivity and income in an environmentally friendly and socially acceptable way. The programme’s flexible
modules specifically focus on the individual needs of coffee farmers, their families and local communities.
Smallholders need customised, pragmatic solutions that will quickly help them operate more successfully in their particular situation. That is why in 2012 we launched our Tchibo Joint Forces!® qualification programme. It picks up exactly where
the smallholders are starting out and is now established in several countries from where we source our raw coffee. Tchibo
Joint Forces!® uses tailored training courses to help farmers and cooperatives on the ground be more enterprising, improve the profitability of their businesses and increase their sales opportunities. At the same time they convey the necessary
know-how to address environmental and social challenges. As a result our programme usefully supplements certification or
validation according to recognised standards.
Tchibo Joint Forces!® involves many partners in its
work. These include agricultural scientists, coaches,
exporters, traders, internationally recognised standards organisations and, if necessary, governmental
and nongovernmental organisations. Our Tchibo coffee
experts support the work of the projects and monitor
the implementation of the measures locally.
Tailor-made, practical solutions for smallholders
Thanks to its modular design, the Tchibo Joint Forces!®
qualification programme can cater precisely for the
needs of farmers. The first three modules communicate
knowledge and methods of good agricultural practices
(GAP), which smallholders can use to increase the yields
and quality of their green coffee and to do business more successfully. The farmers are usually supported over several
years in this process. The subsequent fourth module helps them individually to meet the standard organisations’ minimum
requirements.
In 2014, we extended the Tchibo Joint Forces!® offer to include a fifth module called ‘Local community involvement.’ It builds
on the educational projects we have been running since 2009 to strengthen social communities in the growing regions.
The aim is to develop the social structures in the environment of the coffee farms and improve the living conditions of the
families.
Module 1 “Sustainable Yield Increase”
Module 1 gives coffee farmers extensive training in good agricultural practices, in hopes of putting them in a position to sustainably increase their productivity and yields. In addition to the training, soil and coffee plants can be analysed as needed and
seedlings planted that are more resistant to diseases and pests, e.g..
Module 2 “Cost Control”
Module 2 teaches the basics of doing business. The idea is to familiarise farmers with the key elements of entrepreneurship,
as smallholders are also entrepreneurs. Lessons include accounting for income and expenditure and elemental business
know-how.
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Module 3 “Product Quality Consistency”
Module 3 teaches techniques for processing harvested coffee cherries that ensure consistently high product quality. Among
other things, participants learn how to use simple devices to process raw beans, e.g. to remove the beans from the coffee
cherries.
Module 4 “Certification/Verification”
Module 4 serves to build awareness and understanding
of the environmental and social requirements promoted
by the standards organisations and therefore plays a
central role: coffee farmers who successfully complete
it receive certification according to the requirements
of the Rainforest Alliance, Fairtrade or UTZ Certified or
4C validation. This results in better marketing oppor
tunities for the coffee farmers because they can fetch
higher prices for green coffee that is proven to have
been responsibly produced. Tchibo then offers them a
long-term collaboration that includes purchasing sustainable green coffee.
Module 5 “Local Community Engagement”
Module 5 is aimed at the coffee farmers’ communities and families. Depending on local needs youth training & education
or childcare centres are provided. The “Coffee Farming as a Family Business” component is designed to encourage families
to view their farm as a shared economic unit. The coffee farmers and their wives are equally involved and young people
are interested in coffee growing at an early age to prevent the disproportionate ratio of older people in coffee cultivation.
Another optional module imparts knowledge on adapting to climate change.
Tchibo Joint Forces!® programme continues to grow
Between early 2012 and the end of 2014 we launched Tchibo Joint Forces!® projects in Honduras, Kenya, Colombia, Papua
New Guinea, Tanzania and Vietnam. Around 30,000 coffee farmers have completed the programme to date and obtained
certification according to the requirements of the internationally recognised standard organisations – Rainforest Alliance,
Fairtrade, UTZ Certified – or validation according to the 4C baseline standards. We will continue the Tchibo Joint Forces!®
projects in the years ahead, involving more and more farmers in the training. We are currently reviewing the feasibility of
two other projects in Brazil and Guatemala.
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Honduras – Tchibo Joint Forces!®
Papua New Guinea – Tchibo Joint Forces!®
··Region: San Marcos
··Region: Highlands
··Period: 2014 – 2017
··Period: 2012 – 2016
··Number of validated farmers by the end
··Number of certified farmers by the end
of the project: 1.240
··Measures: support farmers in achieving
4C validation, GAP training
4C validation, GAP training, quality improvement
measures
Kenya – Tchibo Joint Forces!®
··Region: Mount Kenya
Tanzania – Tchibo Joint Forces!®
··Period: completed in 2014
··Region: Mbozi
··Period: 2014 – 2017
Rainforest Alliance certification, GAP training,
quality improvement measures, quality impro-
vement measures
quality improvement measures
Colombia – Tchibo Joint Forces!®
Vietnam – Tchibo Joint Forces!®
··Region: Nariño
··Region: Dak Lak, Dak Nong
··Period: 2012 – 2014 – will continue until 2017
··Period: completed in 2014
··Number of certified farmers after the end
··Number of validated farmers by the end
4C validation, GAP training
quality improvement measures
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Coffee value chain | The sustainable development of the coffee sector | Purchasing sustainable green coffee grades
High standards for a more sustainable
coffee supply chain
Our sustainability strategy pursues the aim of gradually establishing minimum environmental and social requirements
across our supply chains. In 2014, we took a further step on the way towards including 100% of our coffee range in our
sustainability concept. In 2014, about 35 % of our processed green coffee came from farms that meet the requirements
of our sustainability concept. They are either certified and bear the Rainforest Alliance, Fairtrade, UTZ Certified or European Bio (organic) seal – or are validated according to the baseline standards of the 4C Association. In this way we are
expanding the reach of our commitment in combination with our own Tchibo Joint Forces!® qualification programme, and
thereby contributing to developing a more sustainable coffee supply chain.
According to a survey included in the Coffee Report 2014 published by Tchibo in cooperation with the business magazine
Brand Eins, one third of consumers in Germany already prefer environmentally and socially responsibly produced coffees
and speciality coffees. The findings confirm us in our goal of integrating all Tchibo coffees into our sustainability concept in
the medium term.
Growing share of validated and certified grades
Since 2008, we have been gradually increasing the share of green coffee grades that are
validated or certified by internationally recognised standards organisations. When selecting
them, we make sure that their standards were developed in dialogue with all relevant stake
holders, in ‘multi-stakeholder dialogues’. The organisations help coffee farmers on the ground
to apply environmental and social criteria for growing coffee, and check their compliance.
This ensures that producers meet the minimum requirements of our sustainability concept.
We currently purchase our certified coffee from providers who work with the Rainforest
Alliance, Fairtrade and UTZ Certified, and the organisations behind the EU Bio label. Validated coffee meets the baseline standards of the 4C Association. We have achieved our goal
for 2014 of sourcing 35 % of our coffee from validated or certified coffee farms. In 2015 we
intend to increase this proportion to 40 %.
Greater reach through a variety of requirements
The internationally recognised standards organisations pursue one basic set of objectives: to help coffee farmers increase their income, improve their living and working conditions, and protect the environment. Each organisation sets its own
priorities in the details of the individual goals:
Rainforest Alliance
The Rainforest Alliance is an internationally recognised, independent environmental organisation that
campaigns for the protection of sensitive ecosystems and promotes the sustainable management of land.
The seal stands for ecologically sound agriculture and socially responsible corporate behaviour. This includes, for example, the protection of resources and the creation of educational opportunities for coffee
farmers. For more information about the Rainforest Alliance, please visit: www.rainforest-alliance.org
Fairtrade
Fairtrade standards ensure the payment of minimum prices and empower coffee farmers to sustainably
improve their living and working conditions. The Fairtrade premium is used to sponsor community facil
ities such as hospitals or educational institutions. Fairtrade supports smallholder structures in particular,
thereby strengthening families and village communities. Fairtrade gives smallholders and workers a
voice, gets them noticed and empowers them to make self-determined decisions. For more information
on Fairtrade please visit: www.fairtrade-deutschland.de
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UTZ Certified
UTZ is not an acronym, but comes from the language of the Maya, an ancient people from South
America, and means “good”.Nomen est omen: UTZ Certified trains coffee farmers in the fields of
business, social working conditions and environmental management, helping them, for example by
learning better farming methods, to work more successfully while also protecting the environment.
By purchasing UTZ certified products, Tchibo customers can actively promote better prospects for
farmers. For more information on UTZ, please visit: www.utzcertified.org
‘Bio’ (organic) label
Organic coffee is synonymous with sustainable agriculture in harmony with nature. Organic farming is
characterised by such things as the use of natural fertilisers and beneficial insects that keep the soil
fertile long-term. This method of farming also helps to conserve biodiversity and conserve resources.
The Bio label ensures the controlled production of organic products. The provisions of EU legislation on
organic farming set the standards for the label. Only products that are produced and controlled according to this EU legislation may carry the Bio label. For more information, please visit: www.bio-siegel.de
Baseline standards of the 4C Association
Tchibo is a founding member of the 4C Association. This international organisation unites
producers, traders, coffee roasters and civic society groups worldwide in working together towards a shared goal: to improve sustainability throughout the coffee sector. As a 4C member,
we continuously campaign to further improve sustainability in coffee production, processing, and trading.
The different priorities of the standards organisations significantly increase the scope of our efforts for a more sustainable
supply chain. It enables us to respond more flexibly to fluctuations in supply, ensure the availability of sustainable raw coffee and consistent product quality, and involve a much larger number of coffee farmers in our sustainability concept beyond
our own Tchibo Joint Forces!® qualification programme.
Coffee value chain | The sustainable development of the coffee sector | Cooperation to promote sustainable farming methods
Promoting sustainable structures together
Many of the world’s 25 million coffee farmers could operate more productively and sustainably given a modern infras
tructure or affordable loans. That is why we work with regional, national and international protagonists from the coffee
industry in cross-sector initiatives such as the Sustainable Coffee Programme (SCP) for better conditions in the producing countries. In early 2015, the SCP and other alliances and programmes in the coffee sector strengthened their
network through a joint declaration.
There are a variety of challenges to achieving sustainable development in the coffee industry in the producing countries,
which cannot be solved by the coffee farmers and their local organisations alone. In particular, to improve market access
for remote coffee farms, the infrastructure in the countries of origin must be upgraded. This goes not only for transport,
but also for information and communication networks and the power supply. It is also important to offer farmers investment opportunities to facilitate their transition to new technologies. A political framework for environmentally and socially
responsible farming is also needed. In many cases, there are still no clear regulations, e.g. for a reliable water supply or the
protection of ecosystems. With the SCP and the International Coffee Partners (ICP) initiative, we are working at a higher
level on improving such framework conditions.
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Sustainable Coffee Programme: Business and politics pull together
In 2012 international coffee roasters joined forces in the SCP to jointly address structural challenges. The main objective
is to increase yields and export volumes of sustainably produced coffees. Governmental organisations, NGOs and other
national stakeholders collaborate on country-specific activities in the programme, which originated as a Dutch government
initiative called “Initiatief Duurzame Handel” (Sustainable Trade Initiative - IDH). The IDH is committed to promoting respon
sible trade in raw materials and industrial products from developing countries and coordinates the international activities
required for this. Its activities focus on goods such as cocoa, tea, soy, tropical woods, cotton, coffee and palm oil, as well as
finished clothing and electronics products.
Tchibo is a founding member of the SCP and is represented on its Steering Committee with the other participating roasters,
the European Coffee Federation (umbrella organisation) and the development aid organisation HIVOS. As an important
syndicate of protagonists from industry and politics in the world coffee market – it includes the roasters with the world’s
largest market volume – the SCP has considerable reach.
Investment in national development projects
For Tchibo the structurally oriented SCP initiatives are a useful complement to its own Tchibo Joint Forces!® programme.
They contribute to the fact that the coffee sector in general is becoming more sustainable. The programme phase running
from 2010 to 2015 focused on six of the ten largest coffee-producing countries: Brazil, Vietnam, Indonesia, Colombia, Ethiopia and Uganda. For each country, the SCP identifies measures that contain great potential for a more sustainable green
coffee cultivation. At the same time, it indicates ways of overcoming potential obstacles. The SCP’s activities include:
··Helping to establish an association under private law
for the coffee industry;
··Promoting the official recognition of local standards,
such as Certifica Minas Café from Brazil, within the
framework of the 4C standards
··Promoting programmes for better adapting coffee
cultivation better to changing weather conditions
By the end of the programme phase that expires in
2015, the SCP hopes to have reached a total of 500,000
coffee farmers. From 2010 to 2015, 25 million US dollars
will have been invested in more than 80 projects in the
producing countries, and in the further development of
coffee supply chains. In addition, international donors
are involved in other programme activities. They often provide crucial seed money for local projects. The allocation of funds
is reviewed by an independent committee, local experts and the coordinators of the national programmes.
Memorandum for intensified cooperation
One important milestone on the road to the sustainable transformation of the coffee sector was reached in early 2015. In
March, the 4C Association as an organisation of the private sector and civil society, the International Coffee Organisation
(ICO) as an intergovernmental organisation of production and consumption countries, and the IDH as a coordinator of donor
agencies signed a Memorandum of Understanding. It creates closer links between the various alliances and protagonists in
the coffee sector, who also commit to promoting sustainable development in the coffee-producing countries. At the same
time, by signing the memorandum, they have laid the foundations for involving more partners. They aim to support their
members and partners with a joint secretariat, define a joint public-private agenda for a sustainable coffee sector, and coordinate the resulting activities at national and global level.
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International Coffee Partners: Partnerships in key regions
The ICP initiative, in which the leading European roasters
and green coffee traders joined forces in 2001, also relies on overarching cooperation. True to the principle of
“helping people to help themselves” it wants to lastingly
improve the living conditions of smallholders based on
sustainable farming practices. As a founding member,
Tchibo has supported the ICP from the beginning.
The ICP is active in twelve countries in Latin America,
Africa and Asia. In 2014 Vietnam was added. The projects are aimed directly at smallholders, their families
and communities. Local and international development
organisations, the public authorities, NGOs and producers’ representatives are involved. The ICP plans to
build long-term partnerships with farmers in three key coffee-growing regions: Mbeya in Tanzania, Minas Gerais in Brazil
and Trifinio, a border region between Guatemala, Honduras and El Salvador.
Six projects are currently underway; 14 have been completed since 2001. The ICP has reached more than 30,000 farmers
and over 200,000 family members to date. On average, the project participants were able to double their revenues from
the sale of coffee; some even tripled their income. 25 ICP projects with more than 60,000 farmers and 400,000 family
members are to be realised by 2018.
Coffee value chain | The sustainable development of the coffee sector | Environment & climate Coffee cultivation is changing with the climate
Climate change has a significant impact on coffee cultivation. Coffee farmers can only maintain or improve the quality
and quantity of their yields if they adapt their farming practices to the consequences of global warming. For years, we
have been committed to providing them with the necessary skills to do this. To this end, we participate in the Coffee &
Climate initiative, which gathers findings about environmentally friendly farming practices adapted to climate change
and passes them on to farmers.
Coffee plants are demanding: they need rich soil, adequate water and special climatic conditions that are only found along
the equator. The Arabica variety is particularly sensitive to climatic changes: even a small rise in temperature affects the
quality of the raw coffee and lowers yields. Robusta plants are more resistant by nature, but depend on higher rainfall and
must be irrigated during prolonged droughts.
Temperature increase is already noticeable
Climate change mainly impacts coffee cultivation through longer and more intense droughts, more vehement and more
frequent storms, and heavier rainfall with the attendant soil erosion. 2014 was a perfect example of the consequences
this development can have for the coffee sector. In Brazil, a drought reduced the yields of many farms by up to 20 %. For
several years now, increased temperatures and periods of higher rainfall in some Latin American countries have caused a
proliferation of a leaf disease known as ‘coffee rust’. Harvests in the regions affected by this disease also declined sharply.
In future, the global temperature rise will cause a geographic shift in the coffee-growing regions in important countries of
origin, says the IPCC in its 2014 progress report.
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Spread proven and new measures for climate adaptation
Environmentally friendly production methods can help
to conserve natural resources for coffee cultivation.
For example, the mixed cultivation of coffee plants with
other crops and trees offers protection from wind and
sun, thereby preventing soil erosion. So this also helps
farmers to adapt to the repercussions of climate change. Given the large number of climate-induced changes,
traditional practices must be complemented by new
research results. For instance, it is recommended that
older coffee plants be replaced with robust new varieties that are more drought-resistant. Expert pruning and
other maintenance measures can also increase resilience. Soils should also be regularly mulched to prevent
them from drying out. Tchibo works to establish processes like these with more and more coffee farmers, and
mainly relies on strategic partnerships to do so.
Coffee & Climate: Partnership for climate-adapted coffee cultivation
The Coffee & Climate development partnership launched in 2010 plays a key role in the adaptation of coffee cultivation to
changing climatic conditions. We are a founding member of the initiative with other international coffee companies, a green
coffee trader, and the German Society for International Cooperation (GIZ). It is active in four strategically important growing regions for Arabica and Robusta beans: Brazil, Vietnam and Tanzania as well as Trifinio – an area in the border region
between Guatemala, Honduras and El Salvador.
Coffee & Climate provides local protagonists with the tools and knowledge to identify local risks to coffee cultivation from
climate change and communicate suitable adaptation methods to producers. Experiences gained from proven farming methods are combined with findings from climate science research.
During the first phase of the project, around 3,000 farmers were integrated into the programme by 2014. One important
goal was met: more than half of the farmers has already used two or more methods of adaptation. In the four pilot regions,
workshops for coaches were held so that they could pass on their knowledge to as many farmers as possible. Since February 2015, the 180-page guide ‘Climate Change Adaptation in Coffee Production’ has been available for download on coffee
andclimate.org.
In 2015 Coffee & Climate will carry out an internal evaluation of its work. A second project phase is planned, which will run
until 2017. During this time, Coffee & Climate will systematically work with major standards organisations. In 2014, a working
group was set up with the 4C Association, the Rainforest Alliance, UTZ Certified and Fairtrade to this end. It will disseminate
spread proven measures for adapting to climate change and develop new ones. The partners also intend to develop new
methods for reducing greenhouse gases and expand their communication with external stakeholders.
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New standards and initiatives for climate-friendly coffee
In the coffee sector, another important issue beyond adapting to the consequences of climate change is the reduction of
greenhouse gas emissions in cultivation. For instance, using nitrogenous fertiliser can increase emissions of climate-damaging nitrous oxide gas. However, documenting such effects is a very complex procedure as there are no uniform standards.
That is why Tchibo is participating in the Coffee Working Group of the Sustainable Agriculture Initiative (SAI), which has set
itself the goal of developing a globally applicable method for measuring and calculating the carbon footprint of green coffee. As a basis for reporting, a Product Category Rule was published in 2013, based on the international ISO 14067 standard,
which specifies how CO2 emission data and the carbon footprint should be collected and calculated.
The EU initiative for the development of Product Environmental Footprints (PEF) goes even further. The initiative is an
element in the European Commission’s Roadmap to a Resource Efficient Europe. The idea is to develop a method that allows
governments and companies to assess the overall environmental performance of consumer goods or food items. This
should allow consumers to compare the environmental impact of different products in the same category with each other
and adjust their purchasing decisions accordingly.
Since 2014, the European Coffee Federation as the umbrella organisation for the European coffee industry has participated
in the EU’s PEF initiative with its own pilot project. In it, the coffee industry compiles its own findings on the feasibility of a
Product Environmental Footprint, and also plans to test how the environmental performance of coffee can best be commu
nicated to consumers.
The Sustainable Agriculture Initiative (SAI) and Tchibo support the development of the Product Environmental Footprint
because of its high degree of relevance for the entire coffee sector. In a similar way to the SAI carbon footprint project, a
Product Category Rule will be developed for the collection and analysis of data for the PEF. What it will look like and how it
can be communicated to the customer will, of course, be an essential part of the project work.
Protecting biodiversity and ecosystems
Tchibo champions the conservation of biodiversity and the protection of ecosystems in coffee growing. That is why, in 2012,
we became a member of ‘Biodiversity in Good Company’, an initiative by Germany’s Federal Ministry for the Environment. It
brings together leading companies from various sectors to work together on developing solutions to preserve biodiversity
around the world. It also seeks to raise public awareness of the importance of biodiversity.
When we joined we signed a ‘leadership declaration’ committing ourselves to integrate the preservation of biodiversity into
our company’s environmental and sustainability management and to pursue appropriate goals and measures. In 2014, we
published the second progress report on the leadership declaration.
Our most important contribution to protecting biodiversity is
the purchase of validated or certified green coffee. Biodiversity
is a priority in the list of requirements of the EU Bio label and
the Rainforest Alliance in particular. However, Fairtrade, UTZ
Certified and based standard of 4C Association also contribute
to helping reduce pressure on local ecosystems in comparison
with conventional farming. In consultations about the further
development of the standards, we help the organisations to
systematically integrate further environmental criteria in their
requirements. Already, around 35 % of the green coffee grades
that Tchibo purchased in 2014 were validated or certified to
these standards.
We further help to protect biodiversity through our Tchibo Joint Forces!® qualification programme. As part of the training,
coffee farmers also learn about objectives and actions to protect biodiversity.
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Coffee value chain | Educational projects in the source countries Creating better living conditions through education
Coffee is grown all around the equator, especially in developing countries where coffee farmers and their families frequently live under difficult social conditions. As part of its social responsibility efforts, Tchibo runs its own projects to
help ensure better living conditions in the countries where our coffee originates. True to the principle of „helping people
to help themselves,“ we team up with local partners to offer primarily educational and vocational services for children
and teens.
Guatemala: Childcare during the coffee harvest
In Guatemala, where the high-quality Arabica beans for our Privat Kaffee Guatemala Grande are grown, we promote childcare for migrant workers and pickers. The country’s school holidays often overlap with the harvest season for coffee cherries.
Since there is hardly any childcare available, many migrant workers and harvest helpers take their sons and daughters with
them to the farms. While the little children play on the steep and dangerous slopes, the parents often let the older ones help
them pick. In this way, the line to impermissible child labour is frequently crossed, so it is important to provide alternatives.
Tchibo therefore promotes educational projects and childcare options in various regions of Guatemala.
In 2011, we partnered with the Coffee Care Association in 2011 to launch a pilot project specifically for migrant workers’
children in the Huehuetenango region. Today, we operate six day-care centres for children aged 2 to 9 there during the
harvest season. Childcare is provided in an age-appropriate way according to the Montessori method, and children are also
given important hygiene training, as well as receiving healthy meals daily and medical treatment. In the harvest season
2012/2013 we additionally initiated a pilot project for 10- to 13-year-olds at three sites, as this age group is particularly at
risk for impermissible child labour. In the project, the teens attend ‘training seminars’ to learn practical skills such as baking
or handicrafts. In 2014, we expanded our efforts in Huehuetenago so that we now offer both childcare and seminars for the
older children at a total of six locations. More than 500 children accepted our offer in 2014/2015, and the project will be
continued in 2016.
In the Chiquimula region, we have cooperated with the world’s largest children’s rights organisation, Save the Children,
since 2013. In six day-care centres, the coffee pickers’ children aged 3 to 13 receive educational and medical care during
harvest time. During the 2013/2014 harvest season, more than 650 children received care, and over 700 applications were
received for the most recent picking season (2014/2015). About 600 boys and girls were additionally tutored in maths and
reading during regular school hours. The project team gave educational and professional training to about 100 teachers for
this purpose. Overall, Tchibo has supported the project with approx. 2.4 million euros to date: During the campaign periods,
10 cents were donated to the children’s project for every pound of Tchibo Privat Kaffee sold, which resulted in about two
million euros raised. Beyond this, 470,000 euros were collected for the project during the RTL Spendenmarathon telethon
in November 2014 as part of a cooperation with the ‘RTL – Wir helfen Kindern’ foundation and [the German TV sports journalist] Ulrike von der Groeben as project sponsor.
After initial scepticism among the parents – day-care isn’t yet commonplace in Guatemala – acceptance of the facilities is
growing and the parents are happy to have their children cared for during the harvest work. Thanks to this positive devel
opment and the success of the promotion campaign, we were able to expand the project to the Jacaltenango region in
October 2014. Here, another four day-care centres are to be built by September 2018, to provide care for more than 600
children during the harvest season.
Tanzania: Improving the educational situation for children and teens
Based on the successful cooperation in Guatemala, since June 2015 we have cooperated with our project partner Save the
Children to improve the education situation for children and teens in Tanzania as well. Working on certified coffee farms
is generally possible only from the age of 18 in Tanzania. But young people often end their schooling at the age of 13 to 15
years, and there are few opportunities for beginning an apprenticeship once they do. Such training centres are often too far
away, or the youngsters lack the required school credentials.
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With this project, we hope to encourage more children – especially girls – to attend school regularly, and – by improving instruction in schools – to help more teens to successfully complete primary school. Also, to help more students continue their
education at a secondary school after completing primary school. However, the project is aimed not only at students but
also at parents and teachers: parents are encouraged to get involved in their children’s education and push for it. Teachers
receive training to help them make their classroom instruction more practical and more conducive to the children’s devel
opment.
Teens and young adults are also incorporated into the project: Here, too, the idea is to put girls and women in particular
in a position to earn their own income. For this purpose, the plan is to create training centres, from 2016, where the young
adults can complete apprenticeships to become seamsters or carpenters..
Mount Kenya: Strengthening the role of the women farmers
Most people in the Mount Kenya region live off the land. In addition to vegetables and bananas, the key crop here is coffee,
which ranks among the best in the world due to its aroma. Traditionally, women receive an inadequate share from the proceeds of the coffee cultivation, so they don’t have the funds to significantly improve their families’ living conditions. Often,
they also lack important skills to achieve their own goals. This is where Tchibo’s Mount Kenya Project enters the picture.
Together with the women of the Baragwi Farmer Cooperative, we analysed where the need for assistance is greatest. This
resulted in four subprojects: improving the water supply, purchasing livestock, supply of construction materials, and education. From 2011 to 2013, we systematically assisted more than 1,000 women farmers and their families in implementing these subprojects, e.g. the construction of a 12-kilometre pipeline for water, and the purchase of energy-saving stoves. Based
on the positive experiences gained, we expanded our support to five other cooperatives on Mount Kenya: wells were built
and a variety of facilities were constructed in seven subprojects, including classrooms that can accommodate children with
learning disabilities, a multipurpose hall, and a school laboratory. This project was successfully completed in 2013.
A subsequent survey of farmers’ wives in Baragwi returned the following results:
··For the majority of households in the subproject, drinking water is now available even during periods of drought.
Families use the new water lines to tap additional sources of income or improve their diet, e.g. with vegetable
gardens.
··Using loans from the project fund, the women from the newly founded Mount Kenya Dairy Association were able
to buy several cows as a supplement to agriculture. The cows’ milk gives them additional income, and the manure
can be used as a free fertilizer for the farm.
··The women felt that one of the biggest improvements was the establishment of a shared network. The women’s
groups from the individual villages no longer act in isolation but can learn from each other and work together to
improve their situation.
In 2014, the women were able to use the remaining project funds to further increase their autonomy: They organized training on management techniques and sustainable farming practices, and financed smaller purchases.
The Mount Kenya project has strengthened the self-confidence of many women. The status of women in this region has
begun to change in their families and communities, too. They are increasingly taking on more responsible positions in the
parishes and other institutions. After completing the training, the women formed a Mount Kenya Project Committee from
their own project groups, which has now taken over the project management with the aim of continuing the close cooper
ation between the women.
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Sustainability report 2014 | Consumer goods value chain
Consumer goods value chain | Strategy & management
Together for Change!
Each week, Tchibo surprises its customers with a new and diverse assortment of high-quality goods, at fair prices. We
work towards compliance with social and environmental standards in production processes and are committed to ensuring continuous improvement. As a value oriented family business, we take our responsibility seriously and believe that
business success must not come at the expense of people and the environment.
Our assortment of goods is diverse: in 2014 it comprised approximately 3,000 products. With our new line, “Tchibo Lieblingsstücke“ (Tchibo Favourites), we offer our customers a permanent collection of the 300 most popular products on our
online shop. These goods are manufactured globally, especially in Asia and Europe.
In a Global Economy: Creating Opportunities for Participation and Preservation of the Environment
In the wake of globalisation, labour-intensive industries have shifted to emerging and developing countries. Germany no
longer produces large quantities of consumer goods; instead, these now come from China and other Asian countries. The
low production costs there far outweigh the higher cost of transport to Europe. Factories have also developed the expertise
needed to meet our stringent quality requirements, including product safety and durability. Especially the younger gener
ations in emerging and developing markets work in factories, opening up new professional and personal perspectives.
However, industrialisation also brings with it social, environmental and political challenges; for example, factory workers are
often vulnerable to the risk of accidents, their wages are often insufficient to meet their own and their families’ basic needs,
and the production processes pollute the environment. A lack of transparency and the limited ability to politically enforce
higher social and environmental standards complicate the situation. We are convinced that the international division of
labour can open up opportunities for all, as long as they do not come at the expense of people and the environment. As a
responsible buyer, we are committed to the sustainable management of our supply chain.
Integrated Supplier Management: The Basis for Transparency and Participation
As one of the largest international retail companies in Germany, Tchibo takes responsibility for its entire supply chain.
Since 2006, sustainability has been an integral part of our business strategy. On the way towards becoming a sustainable
business, we are reworking products and processes, such as purchasing and sourcing, to make them environmentally and
socially friendly.
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Setting Priorities on the Way to Sustainable Business
In the process of transforming our business operations in the supply chain, we focus on the areas where we can have the most
impact on people and the environment, and where we can exercise the most influence for change. These priority areas include:
··Implement responsible business practices together with stakeholders,
··Gradually source resources and materials from responsible sources,
··Improve working and environmental conditions at factories
··Tackle structural challenges through cross-industry coalitions.
At the same time, we are pushing for more transparency and accountability in the question of where and under what condi
tions our goods are manufactured.
Principles of our responsible actions
The UN Guiding Principles on Business and Human Rights (also known as the Ruggie Principles, for the former UN
Special Representative, Professor John Ruggie) and the conventions of the International Labour Organization (ILO)
provide a framework for our responsible business practices. Close cooperation with local stakeholders to further the
interests of factory workers and the protection of the environment is another tenet of our work. Based on inter
national standards, and taking stakeholder expectations into account, we have formulated the following clear and
binding principles for our work:
··Dialogue and participation: When working with our suppliers, we involve both the management (topdown) as well as the workers (bottom-up). Only by involving all interest groups, can joint solutions that are
acceptable for all parties be found.
··Setting Targets: We set ambitious but realistic goals, check the impact of our efforts and continually seek
to make improvements.
··Responsibility in our daily business: We encourage and empower our operational departments, such as
purchasing, quality management or marketing, to proactively and independently implement improvement
measures.
··Openness and willingness to learn: We do not want to instruct. Rather, we listen and are open to the views
of local stakeholders, openly discuss challenges, are self-critical and learn from our mistakes.
With this approach, we improve working and production conditions, ensure long-term sourcing capacity, and produce goods
that make it easier for our customers to make sustainable purchasing decisions. In sum, our sustainability strategy contributes to our long-term business success.
Implementing Responsible Business Practices Together with Stakeholders
Since 2006, sustainability is firmly anchored in the Tchibo business strategy, in the Tchibo DNA and in the Code of Conduct for our employees; it is a core component of all business processes. Our sustainability goals also shape our relations
with suppliers and business partners, through the Tchibo Social and Environmental Code of Conduct (SCoC), which was
also created in 2006. It is the basis for all buying contracts, and obligates our suppliers to comply with social and environ
mental standards. It includes requirements, such as fair wages, safe working conditions and the existence of environmental
management systems in our production facilities. Moreover, it is important to us that factory workers can help shape their
working conditions. With the WE (Worldwide Enhancement of Social Quality) Programme, we offer managers and workers
the opportunity to engage in a structured dialogue process, with support from experienced trainers, to develop improve
ments in the workplace and implement these together. Finally, we are involved in efforts to enforce the Rights to Freedom of
Association and Collective Bargaining.
Our efforts and programmes can only achieve limited progress in countries like China or Bangladesh. The 2013 collapse
of the Rana Plaza factory in Bangladesh, with more than 1,100 dead, exemplified the extent of the problem. Improvements
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can only be made and disasters of this kind avoided if all relevant actors in the value chain work together. Coalitions like
the “Accord on Fire and Building Safety in Bangladesh“ are an ideal platform for doing so. In this coalition, we are working
with other companies and stakeholders on structural solutions to improve the conditions of the entire textile industry in
Bangladesh.
Gradual Transition to Responsibly-Sourced Resources and Materials
The products that we offer have to meet many requirements: They must be well-made, stylish, and durable. Tchibo and its
customers understand that quality also means that the valuable resources and materials contained in our products are
sourced sustainably. Tchibo therefore increasingly sources from socially and environmentally responsible sources. When it
comes to cotton, wood and pulp we collaborate with internationally recognised standards certification organizations and industry experts. For materials such as leather or animal fibres, for which no recognised certifications or accreditations exist,
we pursue own approaches to improve the processes. In addition, we continue to increase the number of products made
from recycled materials and improve the recyclability of our products.
Trendiness and a sense of responsibility are closely linked: we increased the proportion of cotton textiles made from
responsible cotton from 40 % in 2012 to 85 % in 2015. Nearly 6,000 tonnes of organic cotton were woven into Tchibo lingerie and home textiles in the past year. As the third largest buyer of organic cotton worldwide, we are working to increase the
demand and promote organic farming. On the way to our goal to source 100 % of the cotton in our products from sustainable sources, we were certified according to the Global Organic Textile Standard (GOTS) in 2014. Since 2013, 100 % of wood
and pulp originates from responsible sources, of which a large proportion has been certified by the Forest Stewardship
Council (FSC®).
Lasting Improvement of Working and Environmental Conditions at Factories
In many of the countries from which we source, violations
of labour and human rights and environmental offenses
are common. As a company which takes responsibility
seriously, we want to ensure that our goods are produced
with respect for human rights and the environment. That is
why our purchasing experts work to ensure that standards
are reliably implemented and integrated at the factories.
The WE Programme has an important role to play: on the
one hand, the trainings empower workers to articulate and
defend their interests; on the other hand, we guide the
management to constructively respond to these. Experi
enced local trainers facilitate an open dialogue and ensure
that trainings are designed to consider the local context in
which they are held. Through hands-on trainings, trainers
support managers and workers in meeting social and environmental standards such as occupational health and safety, fair
wages, non-discrimination and reasonable working hours. Since the pilot phase in 2011, we have been expanding the WE
Programme to our strategic suppliers.
So far, 320 suppliers have completed or are currently enrolled in WE. For the products sold in
2015, around 75 % of our buying volume for Non Food goods in high-risk markets were produced at WE factories. The capacity necessary for such close cooperation with our suppliers is
created through the consolidation our supplier network: in 2014 we further reduced the total
number of producers to 780 (from 808 in 2013). In the medium-term we aim to include all
strategic suppliers in risk countries in the WE Programme.
As part of our risk management strategy, potential new suppliers and suppliers in countries
where we have not yet established WE are subject to an audit process. In the case of new suppliers, only those who meet the minimum requirements of the SCoC may produce for us.
Those factories already in our portfolio are audited regularly, either by us directly or a third party. Factories in the WE Programme receive comprehensive support to apply a dialogue process towards compliance with the requirements of the SCoC.
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Tackling Structural Challenges with Cross-Industry Partnerships
Effective change also requires legal, political and economic parameters to be established, adjusted and adapted. In order to
support these processes, we are involved at the political level and work closely with stakeholders from other industries. In
countries such as Benin and Zambia, which produce cotton for our textiles and garments, we support education programmes.
Issues such as safety standards, protection of the Right to Freedom of Association and Collective Bargaining and living
wages can only be addressed through a cross-sector approach. In 2012, we were the second company worldwide to join the
“Accord on Fire and Building Safety in Bangladesh”. In this effort, we work with other companies, factories, trade unions
and NGOs to improve fire safety and building safety standards for the garment industry in Bangladesh. In addition, we
joined forces with several other proactive global brands, in partnership with the international trade union federation Indus
triALL Global Union, to form the ACT on Living Wages Initiative. The initiative pushes for binding, industry-wide collective
agreements towards the goal of ensuring that factory workers are paid a living wage. Since June 2015, we are a member of
the German Partnership for Sustainable Textiles, which seeks to promote the implementation of environmental and social
standards at all stages of the textile supply chain.
Through our WE Programme and the Carbon Performance Improvement Initiative (CPI2), we offer strategic suppliers practical tools to reduce their energy consumption and CO2 emissions. Since early 2015, modules for water and chemical management have been integrated into the CPI2 programme. The pre-production processes of our direct suppliers are also incorpo
rated. In 2014, we signed the Detox Commitment with the aim to exclude hazardous chemicals from our textile supply chain
by 2020. The initiative was launched by the environmental non-governmental organisation Greenpeace to draw attention to
the use of such chemicals.
Since 2008 we support the countries from where our cotton is grown through the Cotton Made in Africa (CmiA) initiative of
the Aid by Trade Foundation. It focuses on the principle of “helping people help themselves“ to improve the lives of cotton farmers and their families in sub-Saharan Africa. In trainings, farmers learn how they can improve the quality of their
cotton, increase their yield and learn about environmentally friendly cultivation methods. In addition, we are involved with
educational and vocational projects for the children of cotton farmers in Benin and Zambia, and support the development
of school infrastructure.
Consumer goods value chain | Responsible business practices
Sustainability as a Business Principle
Our supply chain is complex. To make it more socially and environmentally sustainable, a rethinking is needed on many
levels. At Tchibo, sustainability has been integrated into all processes, from product design to purchasing to quality management. At the same time we are confronted with challenges that go beyond our own business and which we can only
solve together with strong partners. To this end, we work closely with other companies, factories, governments, trade
unions and non-governmental organisations (NGOs).
Sustainability is a core element of our business strategy and, thus, of all business processes. The Tchibo Social and Environ
mental Code of Conduct (SCoC), developed in collaboration with stakeholders, lays a strong foundation. The SCoC is a living
document that we adapt to meet current requirements; for example, in 2014, we included environmental standards in the
audits of suppliers.
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Tchibo Social and Environmental Code of Conduct (SCoC)
The Tchibo SCoC, developed in 2006, lays the foundation for our cooperation with suppliers: It defines minimum
requirements for working conditions and environmental standards in the production of our goods. The social
requirements are based on the core labour standards of the International Labour Organisation (ILO) and the UN
Universal Declaration of Human Rights, and refer to the Ethical Trading Initiative (ETI) Base Code and the SA8000
standard. In 2011, environmental requirements were added and the document became known as the Tchibo Social
and Environmental Code of Conduct (further abbreviated SCoC). The environmental requirements are based on the
environmental principles of the UN Global Compact. The SCoC is a part of any business contract that we enter into
and is thus mandatory for all our suppliers and business partners. By signing the SCoC, our suppliers commit to social and environmental standards in the production. These include limits on working hours, prohibition of child labour
and discrimination, prevention of negative environmental impacts and the respect of trade union rights.
In order to support compliance with the SCoC and meet the requirements of the “Ruggie Principles“ (UN Guiding Principles
for Business and Human Rights), we engage on three levels:
··Within the company: ongoing analysis of internal processes and close interaction with the Product Design,
Purchasing and Quality Management Departments
··Collaboration with our business partners: define mandatory minimum standards for business collaboration and
carry out in-depth dialogue with suppliers to address environmental and social challenges in the supply chain
··Collaboration with stakeholders: cross-company cooperation to address structural challenges
Within the Company: Analysis and Improvement of Our Purchasing Practices
In our ongoing effort to analyse and improve internal processes, we have emphasised responsible purchasing practices. We
analyse whether and how our buying behaviour affects conditions at factories. What possibilities do we have to ensure that
purchasing decisions and management processes further social and environmental conditions in our supply chains? One
way is to strengthen strategic partnerships with suppliers and lock in purchasing volumes, so that factories are better able
to plan ahead. We also regularly analyse latest economic, political and social developments, for example in China, Bangladesh and Ethiopia, and align our factory portfolio and policies accordingly, for example, China, Bangladesh and Ethiopia, on
the basis of the latest economic, political and social developments. As a matter of principle, we want to be a more reliable
and responsible business partner, in order to enable the sustainable improvement of factories.
Cooperation with Business Partners: Together in Dialogue
It is not enough to simply set standards in the SCoC and audit their implementation. Instead, we need the sustained commitment from the factories to recognise and address challenges. Since 2007 we have been training our suppliers to do
exactly that with the long-term WE (Worldwide Enhancement of Social Quality) Programme. In this context, we support our
suppliers to continuously improve in the field of social standards, environmental requirements and climate protection.
The Tchibo Vendor Days are a platform for exchange to share best practices as broadly as possible and maximise impact. In
addition to know-how-transfer, we hereby intensify the relationship with our key suppliers.
Peer-Learning at the Tchibo Vendor Days
In 2014, the Tchibo Vendor Days took place for the third time, with the motto “Together for Change”. In November,
we welcomed our 45 most important suppliers in Hong Kong where we operate one of two merchandising offices.
These offices support the buying of goods in our Asian markets, and support the factories directly in the imple
mentation of quality, social and environmental standards. Tchibo management, including representatives from the
Buying and Sustainability Departments, exchanged views with suppliers on economic, environmental and social
challenges in the supply chain and discussed possible solutions at the factory level. The Vendor Days were also used
to highlight and share best practices, including lessons from WE factories and environmentally friendly production
methods.
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Cooperation with Stakeholders: Addressing Structural Challenges Together
Often we encounter structural challenges that hamper sustainable business: there are still serious shortcomings in the
building and fire safety of factories in Bangladesh; and, in many Asian countries workers do not earn enough to support
themselves and their families. These problems cannot be tackled by individual companies alone. That is why we are joining
forces with employers, trade unions, politics, and other companies to identify and implement global solutions.
Active with the IndustriALL Global Union for labour rights
Together with the international textile trade union IndustriALL Global Union and European textile retailers, we are
developing a process to enforce improvements for workers in the garment industry worldwide. The ACT (Action,
Collaboration, Transformation) Initiative focuses on living wages and the right to organise and carry out collective
bargaining.
In our collaborations we focus mainly on stronger involvement and representation of workers. For example, the active engagement of factory workers is an important part of our work with the “Accord on Fire and Building Safety in Bangladesh“.
Tchibo supported its establishment and was the second company worldwide to sign it.
Another important alliance is the Partnerhsip for Sustainable Textiles, initiated in 2014 by Dr. Gerd Müller, the Federal
Minister for Economic Cooperation and Development. Its architects include representatives of the umbrella organizations
of trade and industry, non-governmental organizations, trade unions and standard-setting organizations. Tchibo and other
textile industry leaders joined the Partnership in June 2015, which now represents more than 50 % of the textile industry
in Germany. The partners are currently designing a joint action plan to promote the implementation of environmental and
social standards throughout the entire textile supply chain.
Consumer goods value chain | Sustainable products and resources
Resources and materials from responsible sources
Responsibility for the social and environmental impact of the production of our goods is not limited solely to the final
production stage. The resources and materials used in our products are to be harvested and processed in a socially and
environmentally friendly, and sustainable, way. We have already made great strides for textiles out of natural fibres and
products made of wood. In the future, we will develop eco-friendly solutions for synthetic fibres and, further down the
road, we hope to establish value-added cycles.
We strongly believe that people and the environment must not be harmed in the farming or extraction of the raw materials
used in our products. The livelihoods of future generations must also be preserved. The extraction of raw materials for our
products uses valuable resources such as water and land, with effects on humans and the environment. Therefore, we are
constantly increasing the share of materials from responsible sources. For this purpose we work together with independent
standards organizations and reliable partners. For materials where no recognised certificates or accreditations exist, such
as leather or animal fibres, we jointly create innovative approaches with our suppliers.
Responsible extraction of raw materials and production processes do not cover the entire life cycle of a product: A product,
which the consumer no longer has any use for, is not waste but, rather, contains valuable recyclable materials that should
be used for new products. The aim is, thus, not only to ensure that fewer raw materials are required to manufacture our
products, but also that recyclables are reused whenever possible. Such an approach reduces waste and increases resource
efficiency. In 2016, we will begin to offer more products made from recycled materials. In addition, we want to make it easier
to recycle our goods by, for example, avoiding composite materials. Implementing these ambitious plans is associated with
major challenges: on the one hand, many recycled materials do not meet our stringent toxicity restrictions; on the other
hand, changes in the product design must not compromise the functionality or customer experience. In addition, for many
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product groups, recycling processes with high quality material output are still lacking. In 2015, we plan to launch a pilot
project to develop viable solutions to these challenges for synthetic fibres and plastic materials.
The staff responsible for these processes work within the core business unit. By setting target agreements, we create incen
tives across teams for more sustainable product solutions.
Cotton: Third Largest Buyer of Organic Cotton Worldwide
It is estimated that over 100 million people worldwide rely on cotton growing
for their livelihood. We want to help ensure that these farmers will be able
to do so in the future, with minimal impact on the environment. To reach
this goal, we are partnering with internationally recognised standard-setting
organizations. We are a member of the non-profit organisation Textile Exchange (publisher of the OCS 100 / OCS Blended organic cotton standards),
which promotes sustainable products and processes in the textile industry.
Since 2008, we have regularly offered textiles made of organic cotton. In
2013 and 2014, entire lingerie collections were made of certified organic
cotton. We are now the world’s third largest supplier with just under 6,000
tonnes of organic cotton used, according to the 2015 “Organic Cotton Market Report“ published by Textile Exchange. According to the report, Tchibo
is also the fourth fastest company worldwide to transition from conventional
to organic cotton (the so-called “Race to the Top”). We also support the Aid
for Trade Foundation’s Cotton Made in Africa (CmiA) Initiative by purchasing
CmiA cotton and partnering on education projects in Benin and Zambia. In
addition, we are a member of the Better Cotton Initiative (BCI), which works
on a broad scale for the transition to responsible cotton farming.
In 2014, 75 % of our cotton textiles had been accredited or certified by one
of these organisations, up from 40 % in 2012. For 2015, we are planning to increase this share
even further to over 85 %.
Our concern is not only the sustainability of the raw cotton material but also the entire cotton
manufacturing process. This includes, for example, the dyeing and printing of fabrics and the
use of accessories. To address these concerns, we were certified in 2014 according to the
stringent Global Organic Textile Standard (GOTS), which includes all processes from extraction of organically grown natural resources, through environmentally and socially responsible
manufacturing, up to transparent labelling.
Viscose: Sourcing the Wood-Based Fibre Sustainably
The sustainability of viscose, which is used in some of our textiles and consists primarily of
wood, must be guaranteed. The production of viscose requires large amounts of water and
chemicals. This is why we increasingly buy our cellulose fibres from the company Lenzing.
Lenzing not only sources its wood for the fibre from responsibly managed sources, but also
upholds high environmental standards in the production process, based on the requirements
of the EU Ecolabel. In the fiscal year 2014, 45 % of the cellulose fibres used in our product
lines Tencel and Modal came from Lenzing. For 2015, we will be able to increase the share to
around 60 %.
Wood and Paper from Responsible Sources
To preserve forests for future generations, we monitor that the wood and pulp (the main component of paper) in our goods
come from responsibly managed forests. Timber from illegal logging or other unwanted sources are not allowed in our
products. The “Forest Tracing System“ (FTS), which we developed together with the World Wildlife Fund for Nature (WWF),
helps to ensure that all the wood we use comes from legal sources.
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We are also working to expand the share of wood and paper products certified by the Forest
Stewardship Council (FSC®). Among other things, the FSC® certification guarantees that wood
or pulp originate from forests that are managed under the strict guidelines of the FSC. In 2014,
approximately 50 % of our wood and paper products were FSC®-certified; in 2015 it will be
around 40 %.
We will not reach our goal to increase the share of FSC®-certified products to 60 %, as many
of our wood products are of European origin, where the certification is not widespread. The
responsible sourcing of these products is guaranteed instead through our FTS. As part of our
overall commitment, we are a member of the WWF’s Global Forest & Trade Network (GFTN),
which is committed to preserving forests as important habitats for animals and plants, and as a sink for the greenhouse gas CO2.
Leather: Chrome-Free Tanning
Leather hides are tanned to make them more durable. Nearly all leather products worldwide
are tanned using chrome, which takes little time and ensures excellent quality. However, in the
process, chromium VI-compounds, which are harmful to human health and the environment,
may be formed and released. That is why we are working together with partners who use chromium-free tanning process, without sacrificing the quality of the leather. Our goal is to only
offer high-quality leather products that were tanned completely chrome-free. About 90 % of
the leather products for sale in 2015 already meet this requirement. We are well on the way to
transitioning completely to chrome-free tanning of leather.
Animal Welfare: No Fur or Angora
We take animal welfare very seriously: Nine years ago we banned fur products from our assortment. This also applies to
so-called embellishments, such as coat collars. To reaffirm this commitment, in 2013 we became a member of the interna
tional Fur Free Retailer Program of the animal welfare organization Four Paws. In early 2014, we also decided to exclude
products with angora, which comes from shearing angora rabbits. According to research by the animal rights organization
PETA, unacceptable practices occur on some Asian angora farms. After a thorough review of the shearing process and of
the housing conditions at our manufacturers, we could not detect any unacceptable practices. We nevertheless decided to
no longer carry angora products, as we could not guarantee the long-term animal welfare of the angora rabbit.
Functional and Eco-Friendly Weatherproofing with ecorepel®
Outdoor textiles are often weatherproofed using environmentally harmful perfluorinated chemicals (PFCs). ecorepel®, through impregnation of textiles, achieves the same optimum weather protection, without the use of unwanted chemicals. All
of our water-repellent textiles are coated with ecorepel®.
Tchibo Favourites: Our Permanent Collection Becomes Sustainable
Since September 2014, we offer a permanent collection of “Tchibo Favourites”, which includes around 300 of the classic
products that our customers know and love. This assortment, in addition to the assortment that changes on a weekly basis,
is to include sustainable goods. The materials used in both collections are essentially the same. Thus, the sustainability of
the cotton, wood and viscose used in our Favourite Pieces is also a focus of our work as we become a sustainable business.
Sustainable Resources: Healthy Ecosystems Thrive on Diversity
A prerequisite for sustainable raw materials are functioning ecosystems. We thus emphasise their protection throughout
our supply chain. In support of this commitment, we signed the Leadership Declaration of the cross-sector initiative, Biodi
versity in Good Company, in 2012. We thereby committed to, among other things, protect biodiversity in our environmental
management system, and define and implement concrete biodiversity targets together with our suppliers. We are convinced
that these efforts are an important step towards protecting biodiversity, contributing to the long-term availability of renewable resources, and to supporting our business.
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Consumer goods value chain | Sustainable supply chains
Strengthening Strategic Partnerships and
Promoting Dialogue
On our way towards becoming a sustainable business, we are committed to ensuring compliance with social and environ
mental standards in the production of our goods. Our sourcing strategy builds on solid partnerships and we cooperate
with our strategic supplies in the context of the WE (Worldwide Enhancement of Social Quality) Programme. Together
with the managers and workers, we develop concrete solutions for improving working conditions and environmental protection in factories. In factories new to our portfolio or those located in countries where we have not yet established the
WE Programme, we conduct audits to check compliance with standards. Only if minimum requirements are met, orders
will be placed.
Our sourcing strategy rests on building long-term partnerships with strategic suppliers. We work closely with the factories
to introduce sustainable improvements in the social and environmental conditions at the production-level. With our WE Programme, we have created an approach within which workers and managers in the factories can develop solutions themselves. Factories that are not yet part of the programme will be audited to monitor their compliance with the Tchibo Social and
Environmental Code of Conduct (SCoC).
The WE Programme: From Pilot Project to Far-Reaching Engagement
The WE Programme supports factories in developing and
emerging markets to comply with the social standards
of the SCoC. Moreover, business aspects such as quality,
productivity and efficiency are also addressed, since these
can have a positive impact on issues such as working hours
or pay. In the WE Programme, factories can address the issues that are most relevant to them and find solutions that
fit their needs. In addition to social issues, environmental
and climate protection issues have played an important
part of WE trainings since 2014.
Including all Parties in the WE training program
WE is based on an innovative and interactive approach, that creates a level playing field for managers and workers
to engage in dialogue on such important issues as fair wages, health and safety or production processes. Experi
enced WE trainers help participants to understand the other’s perspective and push for the implementation of joint
solutions to workplace issues. Even issues that can be more difficult to detect, such as discrimination or violations
of workers’ rights, are addressed. The pilot phase of the WE Programme (2007-2011) was carried out in partnership with the GIZ, and funded by the Federal Ministry of Economic Cooperation and Development (BMZ). Since the
completion of the pilot phase, Tchibo has expanded the WE Programme to all its strategic suppliers, with 320 partic
ipating thus far.
Dialogue as a Key to Success: 40 Local Trainers in Action
Managers and worker representatives use a dialogue approach to find solutions that improve social and environmental
conditions at factories. Through expert facilitation, cultural, organisational and other obstacles can be identified and
overcome. This approach ensures that the measures are acceptable to both managers and workers, improving the prospect
of their implementation. Local trainers play a key role because they are familiar with the cultural context and speak the
language. So far, more than 40 experienced trainers are working in the WE Programme.
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Positive results: 75 % of Purchasing Volume from WE producers
Through the WE Programme, we support more than a third of the factories supplying our
goods to implement social and environmental standards. By the end of 2014, 320 factories in
nine countries in Asia and Africa will have been engaged in the training programme (Bangladesh, China, India, Cambodia, Laos, Thailand, Turkey, Vietnam). In 2014, approximately 60 %
of our orders (67 % or our purchasing volume) were placed in WE factories.
In fiscal year 2015 around 75 % of our purchasing volume of consumer goods came from
factories in high-risk countries that had successfully completed the WE Programme. The dialogue-instead-of-finger-wagging approach is proving effective. In the factories involved, health
and safety have improved, wages have increased, and workers’ welfare has been addressed,
for example dormitories, canteen food and leisure activities have been introduced. In some factories, elected worker repre
sentatives stand up for the interests of their colleagues, without fear of retribution. In the medium-term we want to include
all strategic suppliers in the WE Programme.
Through regular surveys of our suppliers, we continuously adjust the WE Programme to meet the needs of workers. We can
thereby tailor our efforts to the needs onsite and use resources efficiently. For remote factories in Vietnam, for example, we
successfully introduced the WE Factory Programme in 2013. With the WE approach, the GIZ and Tchibo wanted to achieve
the highest impact possible. We thus make available the training method and approach. Other interested companies can,
upon on request (and subject to availability), enjoy access to experienced local trainers and training materials.
Risk Management through Monitoring of Social and Environmental Standards
WE does not yet reach all the factories producing our goods. As part of our risk management, we thus conduct targeted
audits of factories’ compliance with the SCoC, including the zero-tolerance requirements in the areas of fire protection,
occupational health and safety, wages, working conditions and the environment.
In 2014, we fundamentally reworked our audit programme. We are aware that social audits are not effective at achieving
substantial progress, since they are simply snapshots of conditions and can create false incentives. Factories spend a lot of
energy and resources on the audits, rather than on initiating lasting change. Furthermore, the factories’ workers are given
no role to play in the audit process. Finally, some factories use double book-keeping to hide violations. With this in mind, we
are focusing instead on the cooperative approach of WE, as this provides greater transparency and has greater impact.
New Direction for our Auditing Programme in 2014
We continue to conduct audits as part of the monitoring programme of factories. However, since 2014, these are primarily
used as a tool to pre-select potential new suppliers. That is why we have changed the timing and are now auditing factories
before order placement. The audits focus on selected issues such as occupational safety and an assessment of the human
resources management system, as they can provide important insights for pre-selection. Other topics, such as discrim
ination and freedom of association, are no longer reviewed by our auditors because audit are ineffective at uncovering
violations in these areas.
The audit result will determine order placement: Only factories that meet the minimum requirements will be added to our
portfolio, regardless of the product and order volume. Even existing suppliers, that are not integrated in the WE Programme, are audited every three years. To reduce the number of follow-up audits, we now accept photo and video material
or certificates of independent standard-setting organisations as evidence for the remediation of certain issues. Regular
suppliers (including the participants of the WE Programme) are given four weeks to address zero tolerance issues. If this
deadline is not met, the vendor is blacklisted and no new orders can be placed until problems are fully addressed.
The audit type varies according to country risks and our local presence: In countries where we have dedicated staff who
speak the local language, our internal quality experts conduct the Factory Audits. In other high-risk markets, external service providers who have the necessary professional and linguistic skills, conduct the Risk and Compliance Audits.
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Factory Monitoring in 2014: Key Figures
In 2014, 586 audits were conducted. Of these, 439 were internal and 147 were external audits. Since internal audits were
not included in previous reports and we began auditing potential factories, these figures are not comparable with those of
the past. External social and environmental audits increased from 113 to 147 in 2014. The increase is due to the fact that audits are now being carried out at an earlier stage in the buying process, so that some of the factories audited will not end up
receiving orders. Since 2014, we have increased the audits as we started auditing sub-suppliers and producers of packaging.
Consumer goods value chain | Sustainable supply chains | Human Rights Challenges in production
Dialogue and Participation: Leverage for Lasting
Improvements
Fair wages and ensuring trade union rights are important goals of our holistic supplier management. However, our
efforts in these areas have their limits: especially when broader political factors play a role, far-reaching challenges
cannot be tackled at the factory-level alone. Therefore, we work together with employers, trade unions, governments
and other companies in efforts to promote industry-wide improvements of working conditions.
All employees have a right to safety at work, living wages and the representation of their interests. The implementation of
these rights, however, continues to be a challenge in many of our sourcing countries. Some governments are concerned
that raising legal minimum wages will lead investors and buyers to move overseas. Furthermore, in some countries, the
widespread discrimination of certain social groups, such as women and ethnic minorities, is a fundamental challenge to the
representation of their interests, not only at the factory level. We are convinced that factory working conditions will only
continue to improve when change is triggered industry-wide. For this, it is crucial that factory workers are involved in decision-making and are able to negotiate fair compensation. This is not only an ethical concern; worker involvement has been
shown to have a positive impact even on productivity and product quality.
Buyers, Factory Workers and Management: Fair Wages through Dialogue
In most sourcing countries the legal minimum wage is not
sufficient to meet the basic needs of factory workers and
their families. Therefore, we support the workers at our
strategic suppliers to independently negotiate fair wage
levels and improve their working conditions. With our WE
(Worldwide Enhancement of Social Quality) Programme, we
promote dialogue between management and factory workers so that both sides better understand the links between
wages, working hours and productivity. In one exercise, for
example, they are encouraged to calculate a fair wage for
themselves, based on their monthly expenses. The workers
share and discuss the results with each other, and come
to a consensus on a value that they need to justify. This
exercise helps to develop skills that are valuable for wage negotiations. In the end, the managers and workers in the training
create action plans for implementing concrete improvements in the factory. In this way, the WE Programme has succeeded
in increasing wages by 30 to 50 %, on average.
Model projects at the factory level
In 2014, in addition to our regular WE trainings, we carried out a number of model projects with strategic suppliers, to
explore whether and how we can improve the level of wages at the factory-level. For example, we worked with our strategic
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supplier Ayka to revise the wage system in their modern garment factory in Ethiopia. It encapsulates fair compensation
based on the core labour standards of the International Labour Organisation (ILO) and the salary system of the civil service
in Ethiopia. The new wage structure will be introduced in the factory in 2015 and further optimised.
In a factory in Bangladesh, an industrial engineer analysed the potential for more efficient production and initiated recom
mendations. Together with the factory management, we agreed that the resulting savings should benefit the workers.
Together with worker and manager representatives, the living wage level was calculated. But we found that wage increases
do not necessarily improve the situation for workers in Bangladesh: the workers of the factory reported that the increase
in wages, even when limited to an individual factory, was offset by higher rents. This is a well-known nationwide phenomenon, with no efforts by the government to regulate it. What surprised us was that landlords were aware of wage increases
in individual factories and thereupon targeted rent increases to the tenants working in those factories. In a workshop, we
considered various non-financial measures that could also improve the living conditions of workers. While this experience
is not a reason to ignore the need for higher wages, we need targeted approaches so that higher wages will actually lead to
better living conditions for workers and their families.
Global cooperation for fair wages
These experiences have encouraged us to work with other actors towards system-wide change. Together with other wellknown brands and retailers as well as the international trade union confederation IndustriALL Global Union, we are involved
in the ACT (Action, Collaboration, Transformation) on Living Wage. ACT aims to improve wages in the industry by estab
lishing industry collective bargaining in key garment and textile sourcing countries, supported by world class manufactoring
standards and responsible purchasing practices. Industry-wide agreements set a benchmark that applies to all manufac
turers, while still allowing for individual manufacturers to offer higher pay and conditions. In 2015 we signed a Memorandum
of Understanding (“Memorandum of Understanding“) with IndustriALL and will take joint actions in various production
countries having started in Cambodia. Jenny Holdcroft of IndustriALL Global Union describes the cooperation under ACT as
“We are working in a way that we have never been able to do before, with brands that want to make a difference.“
Cambodia: Shared Commitment for Higher Wages
A good example of our collaborative approach is an initiative with eight other large textile companies in Cambodia. We wrote a joint letter to the government and the national employers’ association, in which we expressed our expectation of higher
wage levels through fair and open collective bargaining. At the same time, we reaffirmed our intention to continue purchasing products from Cambodia. At the beginning of 2015, the minimum wage was increased to the equivalent of 128 US
Dollars per month. We are monitoring the situation closely: at the end of 2014 an independent auditing company surveyed
the wage levels at factories producing our goods in Cambodia. According to the survey, approximately 90 % of the workers
receive a monthly income of about 128 US Dollars, and about 70 % even receive more than 140 US Dollars. In 2015 we are
continuing our efforts for increased wages in Cambodia.
Independent Study Commends Commitment to Wage Increases
A 2014 study published the Clean Clothes Campaign (CCC) on wages in the textile industry recognises efforts of Tchibo and
three other companies to improve working conditions and increase wages. Despite these positive first steps, there is still
a long way to go for fair living wages to become a reality. Due to the complexity of the issue we are convinced that only a
holistic approach, that involves all relevant stakeholders, can be successful. We are actively developing and shaping this
process.
Bangladesh Accord: A new form of industry-wide cooperation
Tchibo has supported the establishment of the “Accord on Fire and Building Safety in Bangladesh“ and, in 2012, were one of the first companies worldwide to
sign. By doing so, we committed to take steps to work with factories to improve
their building and fire safety. Three weeks after the devastating collapse of Rana
Plaza building in April 2013, many other companies joined the agreement. The
Accord was ground-breaking, with companies and trade unions working together
to improve safety measures.
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“Accord on Fire and Building Safety in Bangladesh” at a Glance
The “Accord on Fire and Building Safety in Bangladesh“ is a five-year, binding contract for building and fire safety
in the garment industry in Bangladesh. More than 200 companies, as well as IndustriALL Global Union, UNI Global
Union and local unions and NGOs have signed the Accord.
Driving the implementation of the Accord
From November 2014 until September 2015, we were one of six companies in the steering committee of the Accord. In addition to an independent Chair (led by the ILO), members of the steering committee represent in equal parts companies and
trade unions, with NGO representatives serving as observers. The committee meets four times a year and transcripts of the
meetings are published, in an attest to the Accord’s commitment to transparency. Prior to serving on the Steering Committee, we supported the on-site implementation of the Accord as a member of the Advisory Board.
Put to the Test: Inspecting Building, Electrical and Fire Safety
The Accord stipulates unannounced safety inspections of factories by third-party engineering companies, and factories
must remedy any issues found. Publicly available action plans with concrete measures and deadlines for their implemen
tation are developed with the factory owners. The measures include structural changes such as additional emergency exits,
as well as the maintenance of electric wires. If a factory does not take necessary action, we are obliged to terminate the
business relationship. In the majority of the approximately 1,600 Accord factories, including all 17 factories producing for
Tchibo, the inspections were completed in 2014. We are currently working together with these factories on the corrective
actions and the modernisation of fire protection systems.
Taking seriously the safety concerns of employees
In addition to inspections, an important principle of the Accord is the active involvement of workers in improving workplace
safety. Workers on the frontlines often recognise early signs of safety risks but do not have the support of management to
report their concerns. In a working group composed of representatives from trade unions, NGOs and companies, we have
developed principles for the participation of factory employees, which rely heavily on the methods of our WE Programme.
A cross-factory complaint system has been established, and the working group is now concerned with setting up health and
safety committees in the factories. A pilot is planned for autumn 2015. However, for the establishment of health and safety
committees we are awaiting the legal guidelines from the government of Bangladesh. In the context of our Accord engagement, we have called for the prompt publication.
Consumer goods value chain | Sustainable supply chains | Environmental aspects of production
Demanding Standards for Environmentally-friendly
Production
In addition to social issues, environmental standards are an essential aspect of our holistic supplier management. We
monitor our suppliers’ compliance with environmental standards, provide them with important expertise in the areas
of climate and environmental protection, and offer concrete recommendations for action in the implementation of
improvements. In 2014 we signed the ambitious Detox Commitment, with the aim to exclude hazardous chemicals from
the textile supply chain by 2020.
The environmental organisation Greenpeace launched the Detox campaign in 2011 to draw attention to the use of hazardous
chemicals in textile production. The aim of the pledge is to keep such chemicals out of the entire textile production process
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by 2020. This includes pre-production processes, such as the dyeing or printing of clothing. Although we have been working
for years to exclude undesirable chemicals from our textile production, the implementation of the very ambitious targets
and timetable of the Greenpeace Detox commitments pose a significant challenge. Our suppliers and their suppliers must
first build the necessary know-how. The entire textile industry is facing this challenge.
Approximately 8,000 chemicals are used in textile production today. Greenpeace has given priority to eleven groups of
hazardous substances for substitution with safer substances. Due to the many steps in the manufacturing of textiles (from
the extraction of raw materials, through spinning, weaving, bleaching, dyeing, printing and finishing), the substances used
in production can often not be identified - especially since they are not necessarily found in the final product. A pillar of the
Detox commitment is, therefore, transparency of the complex supply chain. On the basis of the increasing concentration of
our supplier network and the close collaboration with WE factories, we are working towards achieving transparancy over
subsuppliers. Concrete steps are:
··the expansion of the monitoring and inspection system for hazardous chemicals throughout the supply chain,
··providing support to our local business partners in the substitution of undesirable substances and
··developing procedures to screen suppliers.
In some areas, which are relevant for the implementation of the requirements, we have already achieved success: We use
the eco-friendly textile finishing ecorepel® as a water and dirt repellent, instead polyfluorinated chemicals (PFCs). In addition to the substances from the eleven priority groups, we want to identify other potentially hazardous chemicals and to
exclude these from our textile manufacturing as well. In addition, we are working to create a closed life cycle for recycling
materials from our textiles for the production of new textiles.
Binding requirements for our suppliers
Mandatory environmental requirements apply to the production of our entire consumer goods assortment, not only textiles.
These are defined in the Tchibo Social and Environmental Code of Conduct (SCoC). Examples include the proper disposal of
waste and compliance with national environmental laws. We require that our suppliers release no harmful chemicals into air
and water, and we make sure that they have the necessary filters or water treatment plants.
Since 2014, we vet all potential new suppliers for compliance with environmental standards before order placement. In a
pilot project in China, we examined how to integrate these criteria into the risk management of our supply chains. The pilot
phase showed that 70 % of manufacturers already met our current minimum requirements. However, we expect this level
to decline as we significantly raise our environmental standards in the context of Detox. Fewer than 70 % of factories are
expected to meet these standards.
Steps for environmental and climate protection
In the WE (Worldwide Enhancement of Social Quality) Programme, we raise the awareness of our suppliers for the issue of
environmental protection. For example, we give them expertise on the subject of resources and climate protection or help
them to build an environmental management system.
We make another contribution to environmental and climate protection through the Carbon Performance Improvement
Initiative (CPI2). The programme was established in 2011 by nine German retailers and brands and the Foreign Trade Associ
ation of German Retailers, to push for the reduction of greenhouse gas emissions. The initiative is supported by the Federal
Environment Agency (UBA) and the German Investment and Development Company (DEG). An online tool provides factories
with concrete recommendations on how to reduce their energy consumption and CO2 emissions. The measures include, for
example, heat recovery, periodic tests to ensure that the seal of the air pressure system is intact, and the installation of modern electric motors. In 2014 we conducted a CPI2 pilot project with select suppliers in China and Bangladesh. By now, ten
of our strategic suppliers participate in the CPI2 programme. Since the beginning of 2015, modules for water and chemical
management have been integrated in the tool.
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Consumer goods value chain | Educational projects in the source countries
‘Helping people to help themselves’ through
education
Cotton is an important component of our textiles and often comes from developing and emerging markets. Together
with the Aid by Trade Foundation, we are comitted to the promotion of sustainable cotton farming in Sub-Saharan Africa. In addition, we support educational and vocational projects for the children of African cotton farmers, and promote
the development of school infrastructure.
Since 2008, we support the initiative Cotton Made in Africa (CmiA) of the Aid by Trade Foundation, which focuses on the
principle of “helping people help themselves”. It was founded to improve the lives of cotton farmers and their families in
Sub-Saharan Africa. In trainings cotton farmers learn how to improve the quality and yield of their cotton, and are trained
on about environmentally friendly cultivation methods. The higher yields also lead to an increase in income for the farmer. Already, around 650,000 small farmers have been trained. In the long term, these measures will help to make the
small-scale agriculture environmentally friendly and socially responsible. We support the initiative as a buyer of cotton for
our products.
As part of our social commitment, we focus on educational support measures for children in the CmiA growing regions
of Benin and Zambia through two projects. Education is an important key to sustainable development and thus for better
living conditions of cotton farmers.
School project in Benin
The West African Republic of Benin is one of the world’s poorest countries. Approximately every third child drops out of
primary school because the parents cannot afford to pay the tuition. In many places there are no schools. In October 2010,
together with the Aid by Trade Foundation, the German development organisation GIZ, the German Investment and Devel
opment Cooperation DEG, the cotton company I.C.A. and a local foundation of CmiA, we launched the “Co-Education: Cotton
for sustainable education” school project. The aim of the project was to enable more children to attend school and improve
the quality of education. By the end of 2014, we had participated in the construction and equipping of schools in six commu
nities of Benin. More than 750 children are now attending five newly built schools that are equipped with solar energy, wells
and canteens. In many other schools, the facilities have been improved: 66 school gardens and canteens provide regular
meals for children, 10,000 textbooks were purchased, and 20,000 locally produced school uniforms distributed. Through
scholarships 600 fifth grade students were given important supplies, such as English and French dictionaries, or solar-powered calculators. Many children who had previously not attended school, now had the opportunity to do so. Overall, the
project contributed to fewer children dropping out of school and more graduating from high school. In addition, twelve wells
were dug, to give the participating communities access to clean drinking water.
School project in Zambia
Zambia is located in southern Africa and, like Benin, is one of the poorest countries on Earth. Since 2012, together with the
Aid by Trade Foundation, the DEG, the cotton company Cargill Zambia and the local communities, Tchibo supports a school
project in Zambia. Five new school buildings, including sanitary facilities, furniture and materials, were completed in February 2014. Each school has its own well, which helps to ensure that both the school children and the surrounding commu
nities have access to clean drinking water. In support of a healthy diet for the children, school gardens are planted and the
children learn the basics of sustainable farming techniques. By the completion of the project in 2015, five additional school
buildings with sanitary facilities, school gardens and wells will be built.
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Sustainability report 2014 | Customers & Products
Customers & Products
Customers & Products | Strategy & management
Inspiring customers, promoting sustainable
consumption
The Tchibo brand thrives on its customers’ trust and enthusiasm. Only if we strengthen this trust and keep inciting our
customers’ enthusiasm will we continue to be successful. That is why we rely on systematic customer focus, the highest
product quality and uncompromising consumer protection. On the path to becoming a 100% sustainable business, we are
steadily expanding our range of responsible manufactured products and practice credible, understandable communications.
Tchibo is synonymous with a unique business model: we combine the highest expertise in roasted coffee, coffee enjoyment
in our own Coffee Bars, and an innovative, weekly-changing range of consumer goods with services such as travel, mobile
communications deals, and green energy. We operate approximately 1,000 Tchibo shops, 25,000 Depots and national online
shops in nine countries. Every week, more than 10 million customers visit our Tchibo shops and online shops in Germany,
Austria and Switzerland alone.
In dialogue with our customers
Customers’ needs and wishes change. To continue to be successful in
future, we listen to our customers carefully, take their requests and
suggestions seriously and learn from criticism. Today’s social networks enable our customers to give us much faster and more direct
feedback about our products, and to evaluate our conduct, giving us
valuable pointers about where we are already doing well and where
we can still improve. At the same time, the Internet opens up innovative ways for us to involve customers in the development of our products and services. This is why we launched the interactive “Tchibo
ideas” platform in 2008, so that customers can give us product ideas
and actively help shape our offer. Our Tchibo Experts survey tool provides us with important information about changing customer needs.
The ongoing process of digitisation has not only affected communica
tions with our customers, but also changed their consumption habits.
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As a result, we systematically align our online offer to their wishes. In 2014 we set up the permanent “Tchibo Lieblingsstücke” (Tchibo Favourite Items) range as well as new payment and delivery options in our online shop.
We strive to promote sustainable consumption. Dialogue with our customers is of key importance here. Only if we succeed
in expanding our range of innovative and high quality products that have been produced taking into account environmental
and social conditions, will they increasingly opt for the consumption of sustainable products. So sustainability needs to be
visible as an elemental part of product quality. To achieve this, we further developed the labelling of sustainable products in
2014 through credible, transparent communications.
Our strategic approach
“Find it only at Tchibo”: in accordance with our motto, we don’t just want to satisfy our customers – we want to inspire them
anew each day. That is why we set the highest quality standards for all of our products, offer them at fair prices, and strive
to promote sustainable consumption.
To achieve this, we have set three priorities:
··Customer focus: in our actions we always take our cue from the needs and wishes of our customers.
··Quality and safety: we ensure these by setting high standards that exceed existing minimum requirements.
··Promote sustainable consumption: we are continuously expanding our range of sustainable products and build
our customers’ awareness concerning their benefits.
Customer focus
We are convinced that across-the-board customer focus is essential to our customers’ trust in the Tchibo brand. That is why
we have codified this aspiration in our identity, the Tchibo DNA, which describes our brand’s success factors. Our customer
management centres on providing excellent service, professionally managed customer relationships – and effective complaints management, because even with all due care we cannot completely rule out defects or shortcomings. So we contin
ually strive to improve all customer-related processes. In 2013, for instance, we carried out a comprehensive inventory of
our direct communications with customers, revised our communication guidelines for Customer Service, and introduced the
new guidelines.
Quality and safety
Our aspiration is to offer top product quality at fair prices, which is why we produce based on consistent, stringent standards whose application we check ourselves as well as with the assistance of independent third-party institutes. We regard
statutory requirements as minimum requirements: we always comply with them, but often go above and beyond them.
The Tchibo Social and Environmental Code of Conduct (SCoC), which is binding for all producers, specifies our social and
environmental requirements, as our quality promise extends not only to product traits, but also to ethical standards. In
2014, we reinforced our integrated quality management system with a new body of experts: the Quality Board, to encourage
internal knowledge transfer about changed legal situations, or new findings regarding the health risks of products.
Our commitment to quality and safety not only applies to our products, but also to our communications. We maintain contact with our customers on various channels. During this process consumer protection and data security are top priority - in
the daily course of business or in advertising campaigns
Promoting sustainable consumption
We continuously develop our product ranges, as they form the basic prerequisite for sustainable consumption. Our main
focus here is on products where our influence is particularly great thanks to our purchasing volume. First an foremost these
are our coffee assortments, as well as consumer goods made from cotton, wood and cellulose. We see it as part of our
responsibility to make it easier for our customers to make conscious purchasing decisions. To this end, in 2014 we further
developed the labelling of sustainable products and ranges, to offer better guidance when choosing sustainable products.
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Customers & Products | Customer Focus
Our customers: The focus of our actions
Customer focus is a core value in our corporate culture. It is firmly anchored in the Tchibo DNA and has been put into
action daily in our family-owned business for over 60 years. We don’t just want to satisfy our customers – we want to
inspire them anew each day. To do this, we offer them customer-oriented service management, continuously develop
our offers and services, and communicate openly and honestly.
Our customers’ concerns, questions and wishes are our top priority. “Find it only at Tchibo” is the principle they should see
confirmed anew each day. To do this, everything at Tchibo is interlinked: we see customer focus as an integrative process
from product management, purchasing and logistics to expert advice, comprehensive customer support, and compre
hensive warranty and repair services. Tchibo customers should always be able to count on getting the best quality at a fair
price, along with excellent service.
The Tchibo service and quality promise
Our Tchibo service and quality promise has guaranteed our customers high quality and top-of-the-line service for many
years. It consists of six criteria that determine the actions of all employees:
··Uniqueness: all Tchibo products are designed especially for our customers according to strict quality standards
we determine ourselves.
··Safety: every Tchibo product is tested and examined for safety and/or harmful substances by at least one independent testing institute.
··Responsibility: we demand and promote environmentally and socially responsible production conditions in the
manufacture of Tchibo products all over the world. A sustainable approach across the entire supply and value
chain is an important element in securing Tchibo’s future.
··Durability: we provide a three-year guarantee on all technical products* and every single zipper. If a guaranteed
product has a defect it will be repaired or replaced within 14 days. If this is not possible, the customer is refunded
the purchase price.**
··Fast service: our customers’ concerns and wishes are our priority. Tchibo Customer Service is available 24/7 by
telephone, email or letter.
··Goodwill: our customers enjoy unlimited right of return within four weeks** and can have their purchase price
refunded at any Tchibo shop.
*
Applies to all products labelled with the three-year warranty logo.
**
Upon presentation of proof of purchase.
New permanent range for changing customer needs
We work continuously on improving all customer-related processes in the company. The result is a constant stream of new offers such as the “Tchibo Lieblingsstücke” (Tchibo Favourites) permanent range, which we introduced in the online shop
in 2014. While Tchibo customers are happy to be surprised in Tchibo shops, online
shoppers are usually looking for something specific: around 80 percent of Internet
purchases are planned. With the “Tchibo Lieblingsstücke” range we offer around
380 of the most popular products from our range all year in our online shop.
With this offer, we also focus on new target groups and further expand our online
expertise.
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Customers & Products | Customer Focus | Customer Service
Our claim: Top-of-the-line service
We are there for our customers and available for them 24/7 if they have any questions, complaints, or need advice. We
process their requests in a quick, unbureaucratic and reliable way. We systematically evaluate complaints and criticism,
as they give us important pointers about where we need to become even better. Regular customer surveys also help us
in this. This is the only way we can meet our customers’ expectations, keep inspiring them, and come up with innovations.
Our employees act based on the Tchibo service and quality promise,
which sets out criteria such as safety, speed and responsibility. Customers can contact our Customer Service and Technical Service Centre
by phone, email or letter 24/7. Unusual customer concerns are handled
on specialist expert hotlines manned by specially trained professionals.
Fast responses, expert advice and fair solutions
Three external technical service centres supervised by Tchibo handle all product complaints. To safeguard compliance with
our high service standards, all processes in the technical service centres are regularly reviewed by internal and external
audits, and improved if necessary.
Our aspiration in dealing with customer complaints is to provide fast processing and fair solutions. We have developed
a detailed guideline that sets out rules for a friendly treatment and competent consultation of customers, as well as for
resolving situations on a goodwill basis. All information is forwarded to a constantly updated database, which we evaluate
monthly. The management regularly checks on our complaints management’s measures and results, so that these can be
taken into account when developing new concepts.
One important factor in customer satisfaction is friendly interaction with our staff. All customer requests are welcomed
and handled with a consistent understanding of service – regardless of which team member handles their inquiry or on
what channel they contact us. In 2013, we did a comprehensive inventory of our direct customer communications, and then
initiated various measures to improve them further. Among other things, we revised the communication guidelines for our
Customer Service and carried out specific training of service centre agents and the employees of our service providers.
More convenient online shopping thanks to new service concepts
We are constantly developing our services for customers, and respond to
changes in their purchasing behaviour early on, closely monitoring and
examining social trends.
For instance, quick and easy switching between various sales channels has
become routine for many customers: they start by obtaining information
online, and later buy the items in a Tchibo shop or supermarket concession
– or conversely, try on clothes in a Tchibo shop and later buy them online.
Since 2013, we have offered our customers a convenient shopping experience with our Cross Channel Service that links the various sales channels:
if a product is sold out at a Tchibo shop, it can be ordered from the online
shop then and there, and delivered either to the Tchibo shop or to the
customer’s home. Items ordered online that do not fit or that the customer
does not like can be returned to any Tchibo shop. Customers use the various Cross Channel Service options in any way they want.
In 2014, we also made online shopping more convenient for our customers with new service offers. The online payment system PayPal is now available as an additional payment option, and online customers can have their orders sent to any of the
more than 2,500 parcel stations operated by the parcel service DHL. Another new feature is the option to have purchases
shipped to a delivery address in any EU country. If an item is no longer available online, our customers can use the online
“Store Availability Check” introduced in 2014 to conveniently check online which Tchibo shops still have the desired item.
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Customers & Products | Customer Focus | Customer Dialogue
Transparent information, open dialogue
We communicate wherever customers need information: on the product, in our Tchibo shops and supermarket conces
sions (Depots), on our websites, in the Tchibo Magazine, and increasingly via social media channels. We place a great
priority on transparent communication and an open dialogue that involves customers in designing our product ranges
and doesn’t evade even critical issues.
Our customer communications revolve around our products and their benefits. We always take care to ensure that our
statements are honest and credible and use clear, understandable language. Regardless of whether we are providing infor
mation about coffee, consumer goods or services, our communications follow uniform principles, for which we have formu
lated clear requirements in our Tchibo DNA and Brand Manual. They ensure that our communications are easily recognised
and always meet our high requirements. It goes without saying that we adhere to the principles of competition law in our
advertising and marketing communications, and avoid misleading information. We base our product-related environmental
communications on the nine principles of the ISO 14020 standard, which provides the framework for the communication,
labelling and declaration of environmental aspects.
Coffee price increases: open communication about a sensitive topic
We feel it is important to inform our customers honestly about sensitive consumer topics – such as increases in the
price of our coffees. Green coffee is traded in dollars. In early 2015 the strong dollar led to increases in our retail
prices for coffee. We explained the reason for the price increase to our customers in our Tchibo shops and Depots
as well as online. As promised, we had reduced our coffee prices again in early 2012 and at the end of 2013 thanks to
lower green coffee prices – this, too, we communicated to our customers.
Social networks: direct interaction and valuable feedback
Our customers can also find us on the social networks Facebook, Twitter, Instagram and YouTube. This gives us an oppor
tunity to enter into direct dialogue and obtain positive – as well as critical – feedback about our services and activities. This
feedback is very valuable to us and serves as inspiration for new product offers or weekly ranges, or as a sensor to reveal
potential for improvement.
Our own Tchibo corporate blog plays a very important role in this respect.
Besides exciting and up-to-the-minute topics we also use it to address
critical aspects that are being talked about on social networks. Tchibo
employees from many different departments and areas of expertise are
regularly cited in the blog – often in dialogue with NGO representatives
and other stakeholders. One blog post in early 2015 discussed the extent
to which the colour schemes and advertising of children’s products promote gender stereotypes. This was triggered by numerous critical comments about Tchibo offering blue astronaut bedding and pink princess
underwear for children. In an interview, the responsible Tchibo product
managers took a stand and explained our position on this issue in detail.
The discussion continued with many controversial posts in the comments
section of the blog post. Meanwhile, in February 2015, we received a lot of positive feedback regarding our announcement
that we would no longer buy Angora products. In a blog interview, an expert from PETA and a Tchibo representative explained the rationale behind our decision.
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We have won several awards for our social media activities: the Tchibo blog came first in the ‘Best Corporate Blog’ category
of the 2014 OnlineStar Internet audience awards, making it one of Germany’s three most popular corporate blogs for the
third time in a row. Tchibo is one of the “most visible companies in the social web” alongside two other companies, according
to a 2014 survey by the Searchmetrics service that analysed the social network presences of the ten best-selling online shops.
‘Tchibo ideas’ – Customers help develop products
An innovative example of actively involving our customers is a
participatory platform called ‘Tchibo ideas’, which we set up in
2008. This online platform is aimed at everyone who wants to
help develop new ideas for our product range. In 2013, we further
developed ‘Tchibo ideas’ to more intensively involve consumers
as well. Since then, the focus has been various actions that anyone can participate in. We invite customers to workshops to Hamburg, ask them about their needs in online surveys, or to vote on
new product ideas. We also regularly offer them the opportunity
to test new products before they go on regular sale. We consider
the detailed feedback received from ‘Tchibo ideas’ in the further
development of our product ranges. In 2014, we also gave young
designers from the Brand Academy, a private college for design
and communications, the chance to develop packaging ideas for
‘Mein Privat Kaffee’. Our customers were then asked to vote on which package they liked best, with the winning idea to go
on sale as a limited edition during the course of 2015.
Customers & Products | Quality & Safety
High quality requirements, strict controls
We strive to always offer top product quality at fair prices. Our customers should be able to count on our coffees having
the best aroma and flavour, as well as on the safety and longevity of our innovative consumer goods. To ensure this, our
production always follows strict, uniform standards. We regard legal requirements as minimum requirements that we
go above and beyond in many aspects. We test the quality of our products ourselves as well as with the assistance of
independent external institutes.
We stipulate clear requirements regarding our products’ safety, functionality, workmanship and materials. The Tchibo
Social and Environmental Code of Conduct (SCoC) also prescribes social and environmental standards for their production –
because the Tchibo quality promise applies not only to product traits, but also to the conditions they are produced under.
Selected suppliers produce for Tchibo according to the strictest quality specifications: as part of our quality assurance, all
products are tested for compliance with these specifications before we offer them for sale. We conduct our own extensive
checks and inspections and also work with a number of independent third-party testing institutes. The tests are based on
legal requirements and international standards as well as our own Tchibo specifications, which are often stricter than those
of the legislators. The TCM (Tchibo Certified Merchandise) quality seal distinguishes consumer goods produced exclusively
for Tchibo and guarantees that they were subjected to stringent tests for harmful substances.
Despite our high standards, we cannot completely rule out occasional quality issues. In such cases, we help our customers
assert guarantees and claims, and treat them with goodwill and fairness.
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Coffee: across-the-board quality standards
We apply our quality standards across the entire coffee value chain – from coffee plant cultivation to the packaging of the
roasted beans.
··Cultivation: we use top-of-the-line beans from high-quality Arabica coffee plants for our coffee. For several
products in our Espresso range, we also use Robusta coffee to achieve the ‘typical’ Espresso flavour. In addition
to our high quality standards, we also promote environmentally and socially responsible cultivation methods in
the countries of origin. To that end, we are systematically increasing the share of our processed green coffee
that has been validated and certified by internationally recognised standards organisations. In our sourcing, we
rely on good, long-standing supplier relationships with exporters and traders, as well as direct relationships with
coffee farmers. Our coffee experts regularly visit the producing countries to check on the cultivation methods
and quality of the green coffee.
··Transport: because green coffee beans age rapidly and absorb external odours and flavours, we ensure rapid,
careful transport immediately after harvest.
··Roasting: the beans first undergo quality control. Small amounts are roasted and brewed so that coffee tasters
can identify the fullness, acidity and aroma of the coffee and definitively determine the recipe of the final product. At the roasting plant, green coffee is turned into roasted coffee – a crucial process that brings out the various flavours of the coffee beans. Our roasters are International Food Standards (IFS 5) compliant, which ensures
strict hygiene standards and a complete documentation of the entire roasting process.
··Packaging: the aroma of coffee is extremely sensitive to oxygen, humidity, light, and heat. High-quality packaging is required to protect it. Tchibo coffee is vacuum-packed in plastic film. We guarantee the harmlessness of
the materials used in this process and guarantee that the packaging does not affect the flavour. Unfortunately,
aluminium is still required for the lamination and vaporisation of the plastic films, but we are looking into more
eco-friendly solutions.
Our requirements regarding the quality of Tchibo coffee are summarised in the binding Tchibo Coffee Quality Standards. Our central
Coffee Quality Management team verifies compliance with these, regularly checks the quality of our coffee, and takes appropriate action
if there are deviations.
Consumer goods: quality from product development to point of sale
Quality is built-in at Tchibo from the very first idea. A team of product managers, designers, buyers, quality developers and
testers – all of them experts in their respective fields, e.g. electrical items or clothing – is responsible for the product idea
and its planning and implementation. Together, they work towards ensuring the customer’s satisfaction with a product’s
quality, design and price.
Tchibo’s quality management process covers the four steps of product development, quality development, quality assurance,
and ensuring compliance with customer information requirements.
··Product development: first, our quality management experts determine the materials and design requirements
for a product. Important criteria include longevity, practicality and maximum product safety. Only suppliers that
agree to comply with the Tchibo SCoC are commissioned to manufacture products. [Link to Chapter 300 Consumer Goods Value Chain]
··Quality development: a regular monitoring of the manufacturing process through product samples and on-site
visits to factories is indispensable for quality development. To make sure the items are transported appropriately
and without damage, we also set high quality requirements for transport and packaging. Various tests ensure
that our products are well protected on their way to the Tchibo shops, Depots or directly to the customer.
··Quality assurance: all consumer goods are subjected to a final incoming goods inspection according to the
Acceptable Quality Level (AQL) procedure. This ensures that all quality requirements were put into practice and
that the product sold to the customer is without flaws. The final inspection takes place at an Inspection Centre
in the respective production country before shipment, or upon delivery to the main warehouse in Bremen – or,
depending on the product, in both countries.
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··Ensuring compliance with customer information requirements: in accordance with our integrative under
standing of quality, our high aspirations don’t end with product delivery, for quality is also a crucial factor in sales
and customer consultation. Products come with detailed product information and operating instructions, all of
which is also available online in our online shop. It goes without saying that we comply with all applicable norms
regarding the structure and clarity of operating instructions.
··Integrating customer feedback: when our customers purchase a product, another important phase in our quality assurance process begins. Predefined information paths ensure that all relevant insights regarding potential
improvements are incorporated in the development of successor products. We evaluate customer returns and
get feedback from our Tchibo shop staff. For instance, we conduct monthly surveys of our Tchibo shop managers
to see how well the weekly ranges are received by customers, and whether there are any suggestions for improvement.
Intensified global exchange regarding new quality requirements
In 2014 we further strengthened our quality management with the introduction of the Quality Board. The Quality Board
makes sure the latest quality requirements are promptly integrated into the relevant management processes. Adjustments
may be required, among other things, due to changes to the law, identified shortfalls in quality, or changing expectations
among customers and/or non-governmental organisations (NGOs). The Quality Board is composed of experts from different
hierarchies in Tchibo’s Hardware and Textiles departments.
In 2014, we also introduced software for our worldwide quality management. During the course of its instalment, we set
up a ‘quality wiki’, which has been in use since February 2015. It contains all the manuals and quality tools used across our
company. The software and the wiki are important tools that we use to further enhance cooperation between the different
sectors and actors in our quality management, around the world.
Customers & Products | Promoting sustainable consumption
Making sustainable consumption more
attractive and easier
On the path to becoming a 100% sustainable business, we want to make it easier for customers to practice sustainable
consumption. To this end, we are systematically expanding our range of sustainable products, and strive for honest,
easily understandable sustainability communications.
Our customers expect Tchibo to deliver excellent product quality at all times. In our understanding, product quality isn’t
limited to product traits such as safety and longevity, but also includes the social and environmental conditions of production. That is why we are constantly working to offer our customers more and more sustainable products.
Progress on expanding our sustainable ranges
In the medium term, we want to exclusively offer coffees that come from sustainable sources. In 2014, we were able to increase the share of green coffee that is certified or validated to around 35 %. In consumer goods, we have gradually increased the proportion of sustainable raw materials used in our products. In 2014 we were the world’s third largest supplier of
organic cotton. At the same time we are working with our producers on compliance with social and environmental standards
in the manufacture of our products, as well as on improving these standards.
By expanding our sustainable range, we are fulfilling a wish shared by many customers. This is shown among other things
by the customer survey we carried out in 2014 using our Tchibo Experts survey tool. It found that more and more Tchibo
customers want sustainable products: 65 % of respondents said that sustainable production was important for them. Overall, the number of respondents who buy sustainable products in at least some categories has increased. The proportion of
those who regard sustainability as a quality criterion has also grown.
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Understandable information facilitates informed purchasing decisions
Our customers’ purchasing decisions influence the pace at which we can put sustainability measures into practice – because
when demand for sustainable products increases, the cultivation of sustainable raw materials will also increase and their
availability will improve. Therefore, we support our customers in the conscious selection of products by labelling sustainable ranges, presenting information in a consumer-friendly way, and providing easy access to it. In 2014, we gave the labelling
of our sustainable product a complete overhaul to make it easier for our customers to choose sustainable products.
Alliance for Consumer Education/Awareness
We have set ourselves the goal of building young people’s awareness of sustainable consumption at an early stage.
At the beginning of 2013 we joined the Federation of German Consumer Organisations (Bündnis für Verbraucher
bildung). It this alliance, representatives from NGOs, science and academe, business associations, the public sector,
politicians, the education authorities, government departments and individuals work to improve the decision-making
and consumer skills of children and teens. The Alliance currently sponsors exemplary school projects to build consumer awareness. We firmly believe that early awareness building is an important lever for permanently mainstreaming sustainable consumption in our society.
Customers & Products | Promoting sustainable consumption | Sustainable Product Ranges
A wide range of sustainable products
In expanding our sustainable product ranges, we focus on products that are of particular importance for us: coffee,
textiles made from cotton and viscose, furniture and craft utensils made of wood and cellulose, as well as leather shoes,
bags and accessories. We believe that their production should not negatively affect people and the environment.
In 2014 we further expanded our sustainable ranges. We want to completely convert our new permanent online “Tchibo Lieblingsstücke” (Tchibo Favourite Items) product range to sustainable qualities, thereby taking a step closer to our goal of becoming a
100% sustainable business.
Coffee: sustainable range expanded
In 2014, we further increased the share of validated and
certified green coffee that we process in our sustainability
concept to around 35 % compared to 30 % in the previous
year. In the medium term we want to include all Tchibo coffees in our sustainability concept. This means that they are
certified according to the criteria of the Rainforest Alliance,
Fairtrade, UTZ Certified or the EU Bio label organisations,
or are validated according to the baseline standards of the
4C Association. We already converted the entire Privat Kaffee range to 100% certified sustainable varieties in 2010. In our
Coffee Bars we have exclusively served coffees and specialty coffees made from certified coffee grades since 2009. We also
only use certified coffee grades for our Cafissimo coffee capsules. We are gradually developing the Cafissimo capsules so
they can be recycled – e.g. in Germany’s ‘Duales System’.
Textiles: World’s third largest supplier of organic cotton
Whether it is used in T-shirts or bed linen, cotton is one of the most important raw materials we process in our product
range. We are continuously increasing the proportion of textiles made with cotton from validated or certified sustainable
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sources. In 2011 the share of textiles we offered that were manufactured from sustainably grown cotton was 20 %; in 2015
it was more than 85 %, well above our target of 75 %. The cotton meets the requirements of the Textile Exchange organi
sation (organic cotton), the Cotton Made in Africa (CmiA) initiative, and the Better Cotton Initiative (BCI).
Since 2008, we have regularly offered textiles made from certified organic cotton: Tchibo is currently the third largest
supplier of organic cotton worldwide, according to the 2015 “Organic Cotton Market Report” published by the non-profit
organisation Textile Exchange. In 2014, we purchased nearly 6,000 tons of organic cotton for our textile products. Like
the year before, our bedding collection in 2014 was produced with certified organic cotton that meets Textile Exchange’s Organic Cotton Standard (OCS). In 2014, we were certified to the demanding Global Organic Textile Standard (GOTS) – another
important step in our cotton strategy. Tchibo is the first GOTS-certified retailer in Germany. In 2015, we will offer the first
GOTS-certified textiles.
We are also offering more and more sustainable qualities in our textiles made from viscose. To this end, we are intensi
fying our collaboration with the supplier Lenzing AG: it sources its cellulose – the raw material for producing viscose – from
sustainable forestry. In the sales year 2014, 45 % of the cellulose fibres used in our viscose products came from responsible
sources, and we managed to increase the ratio in the textiles we offered in 2015 to around 60 %.
Products made of wood and paper: 100% from sustainable sources
From garden furniture to craft supplies, many Tchibo products are made of wood or pulp. To preserve forests for future
generations we take care to ensure that the raw materials wood and pulp used for our products are from well-managed forests. We exclude any timber from illegal logging and other undesirable sources from our portfolio. In the sales years 2014
and 2015, 100% of the wood and paper products we produced came from sustainably managed sources. Of these, around
30 % are FSC-certified (Forest Stewardship Council) and almost 70 % comply with the FTS standard (Forest Tracing System),
which we developed in collaboration with WWF.
Leather products: chrome-free tanning only from 2016
We are also increasingly striving for sustainable production in our leather products such as shoes, handbags and accessories.
From the sales year 2016, we will have them produced using only chrome-free tanned leather. In 2014 around 95 % of our leather
products were already tanned without the use of chrome.
Renewable energy: “Kindergiewende“ campaign
Since 2010, we have offered our customers green electricity sourced from 100% hydropower, as well as climate-friendly
gas certified according to the WWW Gold Standard. Tchibo green electricity is certified with the TÜV seal and the ok-power
label. Compliance with the underlying standards is reviewed annually. In April 2014, Tchibo launched the “Kindergiewende”
green energy campaign together with the S.O.F. Save Our Future environmental foundation. For each new energy customer
we donate €10 to S.O.F.’s “Kita 21” education initiative, which supports children’s daycare centres in building environmental
and energy awareness.
The following graphic illustrates our progress in developing our sustainable product lines since 2006:
Milestones - expanding sustainable product ranges
2006
··First sustainable coffee products in the Coffee Service department: Vista coffee with Fairtrade certi
fication and Organic label, Vista chocolate with Fairtrade certificate
2008
··Extensive range of coffees with Rainforest Alliance and Fairtrade certification and organic label; all
“Privat Kaffee” and “Frische Ernte” varieties with Rainforest Alliance certification; “BioGenuss” is
the first coffee product for consumers certified with the organic label; Fairtrade Espresso added to
Tchibo shop range
··Cotton products made with Cotton made in Africa and Textile Exchange cotton first offered
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2009
··Only sustainably produced coffee qualities sold in Coffee Bars; beans for espresso-based specialities
Fairtrade-certified; filter coffee Rainforest Alliance-certified
2010
··First offer of ok power-certified green electricity from 100% hydropower
··All “Privat Kaffee” varieties made from 100% sustainable qualities
2011
··Climate-friendly gas first offered to customers
2012
··Sale of energy concept houses
··All Cafissimo coffees completely switched to certified sustainable grades
2013
··Fairtrade-certified Barista Espresso and Caffè Crema added to sustainable coffee range
··First bedding collection made from 100% sustainable cotton
··First crafts range made from 100% FSC®-certified paper
··First garden furniture range made from 100% FSC®-certified wood
··100% of “Mein Privat Kaffee” Rainforest Alliance or UTZ certified
2014
··Sustainable coffee range expanded to include Rainforest Alliance-certified “Winterkaffee”
··Introduction of a Cafissimo-branded range of sustainable teas with Rainforest Alliance, UTZ or organic label certification
··100% sustainable cotton underwear collection
Customers & Products | Promoting sustainable consumption | Sustainability communications
Communicating the added value of
sustainable products
For our customers to opt for responsible consumption, we need to ensure high product quality and explain sustainability
aspects in a credible, understandable way. We want our customers to realise that responsible consumption is easy and
can be fun. That is why we further expanded our sustainability communications in 2014 and standardised the labelling of
our products. We also enter into dialogue with our customers online – including on critical sustainability-related issues.
Our goal is for Tchibo to be perceived as a responsible company and a sustainable brand. Above all it is important to convince customers of the added value of our sustainable products. To achieve this it is crucial to speak with one voice across the
company, and avoid contradictions. A number of different departments are involved in our sustainability communications:
Marketing, Corporate Communications, our Tchibo shop staff, field sales staff and other departments. They coordinate their
messages carefully, and are supported by the Corporate Responsibility department in the process.
Our sustainability communications are subject to the basic Tchibo communication requirements set out in our Brand Manual. When communicating environmental aspects, we follow the guidelines of the ISO 14020 standard for communicating,
labelling and declaring the environmental aspects of products.
Comprehensive information on all channels
We deliver comprehensive, transparent information about sustainability to our customers, using all means of
communication available to us. Our customers will find key product-related information – such as sustainability
labels – right on the packaging. We provide additional information wherever customers buy our products – in our
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Tchibo shops, Depots and the online shop. In the Tchibo Magazine and on the Internet we have the opportunity to
explain more detailed background and the benefits of sustainable products in interesting, easytounderstand and
entertainingly presented stories. On social media channels such as Facebook and Twitter we seize the opportunity to
open a dialogue and especially take part in the discussion of critical issues. The Tchibo Sustainability Report and our
company websites offer extensive and detailed information.
Tchibo employees are given extensive training in matters of sustainability and receive ongoing information updates
– regardless of whether they work in sales, have contact with customers, or are personally interested in the subject.
The “Sustainability at Tchibo” brochure, topical articles on the intranet, events, and other dialogue formats help to
meet the various requirements.
Easier identification of sustainable products
Sustainability labels make it easier to make responsible purchasing decisions – but too many different labels can also make
it difficult for the customer to choose. We want our customers to be able to recognise sustainable products right away. That
is why, at the end of 2014, we began to develop our own labelling system that integrates existing seals and is immediately
recognised by customers. The aim was to present sustainability in a credible, consistent and stringent way: at the point of
sale – i.e. in our Tchibo shops, Depots and the online shop – but also on packaging and in the Tchibo Magazine. So the label
had to have a high recognition value, needed to be eye-catching and unique, and flexibly usable with all sustainability labels.
Since spring of 2015, we have used the ‘sustainability ribbon’ to identify our sustainable products. For example, on organic
cotton products the words “with organic cotton” are placed very visibly next to the Organic Cotton Standards seal.
Open and transparent dialogue on the Net
Our point-of-sale communications are supplemented by informative and entertaining online communications, especially
on our various social media channels. Our own YouTube channel in particular allows us to easily convey sustainability in
pictures. For instance, in early 2015 we showed the importance of the Forest Stewardship Council (FSC®) seal on wood and
paper products in a fun and easytounderstand way with our animated film “Mr Coffeebean in the Forest”, which explains the
conditions we and our suppliers have to meet in order to be able to affix the seal to our products. This is the second YouTube video in our Mr Coffeebean series to deal with the standard organisations’ seals – after ‘Mr Coffeebean in Coffee Label
Land’ in 2014, in which we informed people about our coffee label partners.
In 2014 we also produced a video showing the everyday school routine of Mary, the 13-year-old daughter of a smallholder
farmer who grows cotton in accordance with the requirements of the Aid by Trade Foundation’s Cotton Made in Africa
(CmiA) initiative. Mary attends a new school in eastern Zambia, built as part of an educational project in collaboration with
CmiA. The release of the video was accompanied by a CmiA information campaign on Facebook, Twitter and on our corporate blog.
Special promotions: ‘Enjoy and do good’
We regularly run special promotions to systematically involve our customers in our social responsibility efforts. One good
example is our children’s education project campaign in Guatemala, where sustainable coffee cultivation requires a special
commitment to protecting the children of farm workers. During the school holidays there are no daycare facilities for children, so parents often take them along to work. This often leads to the boundaries of acceptable child labour being overstepped. Since April 2013, together with the global children’s rights organisation Save the Children, we have been working to
expand the availability of childcare for children in the Huetenango region, thereby offering a sensible alternative.
In 2014, we invited our customers to help promote the project with us for the second consecutive year under the slogan
‘Enjoy and do good’. During the campaign we donated 10 cents to the local project partners for each pound of Privat Kaffee
sold. From April 2013 to January 2015 we raised over €1.9 million in this way, which financed the construction of six daycare
centres now used by about 700 children.
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During the promotional campaign, we kept people updated on the project’s progress through various communication activ
ities. In addition to videos, articles in the Tchibo Magazine, press releases and other social media activities, blog entries by
project participants in Guatemala formed a bridge between our customers and the local producers.
Tchibo Coffee Report provides information about sustainable coffee enjoyment
The third Tchibo Coffee Report, which we publish annually together with “brand eins Wissen” and the statistics
portal statista.com, was devoted to the topic of ‘sustainable coffee enjoyment’. Tchibo took its publication as an
opportunity to build awareness for the topic with interesting facts and figures. For example, figures on the prefer
ences of male and female coffee drinkers are very revealing: 43 % of men stated that they prefer sustainable coffee,
as compared to 57 % of women. The ranking of German federal states according to the proportion of coffee drinkers
dedicated to sustainability is led by Baden-Württemberg, where 18.3 % of the population said they preferred sustainable coffee.
Rankings and awards provide confirmation and motivation
Public perception of our sustainability communications is increasingly positive, as shown among other things by our success
in the rankings of the past two years. We see this as recognition for what we have achieved, as well as an incentive to continue to improve.
··The consumer protection agency VERBRAUCHER INITIATIVE e.V. rates Tchibo as one of the few retailers that
practices credible, comprehensive sustainability communications that are accessible and comprehensible for
consumers. We received its gold medal for ‘Sustainability Communications in Retail 2013’ for this.
··In the ‘Sustainability Image Score’ (SIS) ranking published by the Service Plan agency based on an online survey
of about 8,500 consumers, we came 16th out of 104 participating companies, up 13 places compared to 2014.
··A representative survey by the Institute for Market Research TNS Infratest, which we commissioned in 2014, provides further validation of our approach. According to the survey, customers in Germany see Tchibo as the most
sustainable company in the fields of coffee and consumer goods, compared with selected other providers.
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Sustainability report 2014 | Environmental protection in our operations
Environmental protection in our operations | Strategy & management
Protecting the climate, preserving resources,
securing the future
For our core business it is vital that we succeed in countering climate change and conserving natural resources. This
is the only way to ensure that the natural raw materials we need, such as coffee, cotton and wood pulp, continue to be
available in future. Protecting the environment and countering climate change is therefore a key component of Tchibo’s
business strategy and is firmly embedded in the Tchibo DNA. We take a good hard look at all our business processes to
see what measures we can take to most effectively reduce CO2 emissions and the consumption of resources.
On the path to becoming a 100% sustainable business, we focus our environmental and climate protection efforts not only
on measures in the countries where our Coffee and Consumer Goods value chains begin, but also on processes we can
directly influence: the transport and shipping of our products, the operation of our site and Tchibo shops, and the mobility of our employees. In our efforts to counter climate change, we are working to reduce CO2 emissions by minimising fuel
and energy consumption, especially across our supply chain and at the roasting plants. We are improving our resource
efficiency first and foremost by continually reducing the use of materials for stationery, advertising and packaging, and by
obtaining indispensable materials from responsible sources.
Well organised: environmental and climate protection at all levels
Environmental and climate responsibility are firmly anchored in the Tchibo DNA. One of our principles is: “We take respon
sibility for the ecological and social impact of our actions.” This principle guides our work – from the design of our product
ranges and supply chains to our operational processes and customer communications. The Tchibo Code of Conduct defines
binding rules of eco-conscious behaviour for all staff, Based on our DNA. At our sites we work with an environmental management system based on the ISO 14001 standard that defines all responsibilities and instruments in our environmental
and climate protection efforts.
Our environmental experts from the various divisions and departments are responsible for the company’s environmental
protection efforts. Environmental targets are agreed with them each year. The Corporate Responsibility department coordi
nates the associated cross-departmental and cross-divisional activities, and ensures that the environmental measures initiated in the divisions and departments are in line with the overarching strategic goals as well as with each other. To do this,
the department monitors and analyses social trends, breaking events and legislative initiatives, with the aim of responding
to new developments as early as possible and helping to shape them.
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Where can we achieve the most? Our priorities for improvements
In what areas is action particularly urgent? And where we can make the biggest difference? Based on these key questions,
we have determined the following priorities for activities in our operations:
··Countering climate change – make our processes as energy-efficient as possible and minimise emissions
··Resource efficiency – minimise the consumption of all materials, especially paper and cardboard, and cover the
remaining demand from responsible sources
Climate-friendly processes to slow down climate change
We systematically work to reduce the CO2 emissions of our processes. To this end, we carefully analyse our CO2 emissions
and focus our work wherever we identify the greatest potential for influence and savings. Important levers for this are
continually improving the efficiency of our logistics processes, reducing energy consumption at our locations and the reduction of our vehicle fleet fuel consumption.
Logistics
Transport-related CO2e emissions are an important action area for us. We can significantly reduce emissions through proper
process design. This includes an intensified use of low-emission transport modes such as rail or ship, and improved efficiency through intelligent management of our logistics processes. Since 2006 we have reduced our CO2e emissions by approxi
mately 30 % in relative terms with the “LOTOS” (“Logistics Towards Sustainability”) programme. With new ambitious goals
for 2020, we will achieve another 10 % relative reduction in transport emissions (g CO2e per ton-kilometre) compared to
2006. In addition, we have resolved to reduce our distribution centres’ emissions by an additional 15 % compared to 2013
over the next five years.
Sites
Due to the high energy requirements of our roasting processes, in 2013 and 2014 we focused on making the processes at
our coffee-roasting plants in Hamburg and Berlin even more energy efficient. To this end, in 2013 we introduced an energy
management system in accordance with ISO 50001. In 2014, we were able to reduce our energy consumption per ton of
roasted coffee by 2.3 % over the previous year, thereby clearly exceeding our savings target of 1.5 %.
Employee mobility
We also pursue a systematic approach with our fleet strategy in the area of employee mobility. We place limits on the CO2
emissions of newly purchased company cars and simultaneously offer our employees incentives for choosing as environ
mentally friendly models as possible. For instance, in 2014 we were able to further reduce the average CO2 emissions of our
vehicle fleet to 119g CO2/km. By 2020 we will reduce the average emissions of our vehicles to below 95 g CO2/km, as set out
in the EU regulation for manufacturers’ fleets.
Resource efficiency: Reduce consumption, expand sustainable sourcing
As in our efforts to protect the climate, we primarily protect valuable resources by making our own processes more efficient. In recent years, we have focused our activities on systematically reducing the need for paper in our internal processes, and for packaging materials. At the same time we are switching to buying our purchase paper and cardboard packaging
from sustainable sources.
Since 2014 we have obtained almost all the paper for our office and customer communications from sustainable sources.
We use paper that is labelled as recycled according to the Blue Angel standard, certified by the Forest Stewardship Council
(FSC®), or bears the EU Ecolabel.
Packaging
We also take care to reduce resource consumption when designing our retail and transport packaging. Our packaging
policy, which contains both quality-related and environmental requirements, stipulates clear guidelines that our suppliers
must also adhere to: packaging waste is systematically avoided or recycled. In early 2015 we further developed this
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approach with our packaging strategy, which has the goal of systematically improving the eco-friendliness of our packaging
by avoiding, reducing and recycling materials as well as continuously improving its design. By 2020 we aim to reduce paper
and cardboard consumption in shipping and delivery and will further increase the use of sustainable paper and cardboard
grades. At the same time we are reducing the volume of waste generated across all processes and ensure that all remaining
waste is systematically separated and recycled.
Environmental protection in our operations | Climate Protection
Responding to climate change – energy-efficient
processes and partnerships for change
Climate change is an increasingly serious challenge for our core business. On the one hand, we are responding to it with
more efficient processes and clear targets within our company – from logistics and the operation of our sites and Tchibo
shops to the mobility of our employees. And on the other, we work to promote climate-friendly business conduct in our
value chains and support coffee and cotton farmers in adapting to changing weather conditions.
Environmental protection in our operations | Climate Protection | Logistics
Logistics: Expand on efficient solutions, slow down/
counteract climate change
A major portion of our CO2e emissions arises from the transport
and storage of our products, so it is particularly important for us
to systematically reduce the climate impact of our supply chain.
The LOTOS (Logistics towards Sustainability) programme is a
comprehensive, integrative approach to managing our climate
protection programme in logistics. Our core activities include
choosing the right form of transportation, e.g. using low-CO2e
emission modes of transport such as ship or rail wherever possible. We also ensure optimum utilisation and loading of containers
and trucks and an intelligent management of goods movements.
These measures also serve to continuously increase the efficiency of our logistics processes. We have set new goals for the years ahead to realise further savings.
LOTOS: an overview of our programme to counter climate change
The LOTOS programme was launched in 2006 in cooperation with the German Federal Environment Ministry (BMU) and the
Technical University of Hamburg-Harburg. In 2013 we won the Germany and Austria Logistics Associations’ (BVL) Supply
Chain Sustainability Award for it. In LOTOS we record, account for and analyse all transport-related CO2e emissions, and
specifically look for further reduction potential. In 2011 we already achieved our 2015 target of reducing our transport-related CO2e emissions by 30 % in absolute terms compared to 2006. In 2014 we achieved a relative reduction of 30 % compared to 2006 (g CO2e /ton-kilometres). Meanwhile, we also further improved our accounting method: for 2013 and 2014
we conduct accounting according to the new CEN (Comité Européen de Normalisation) DIN EN 16258 standard for the first
time and have it checked by external experts. With this amendment, in addition to CO2e we also include emissions of other
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relevant greenhouse gases such as methane. At the same time, we now have an improved data basis: as a member of the
Clean Cargo Working Group we obtain more accurate data for each seagoing vessel that we use. In addition, we were able to
integrate upstream processes of the respective fuels in our accounting.
Climate change will remain a challenge for us going forward. Therefore, in 2014 we set new, even more ambitious targets
for the years ahead. By 2020, we will reduce relative transport emissions (tons of CO2e /ton-kilometre) by a further 10 %
compared to 2006. At the distribution centres we operate ourselves, we have resolved to reduce emissions by another 15 %
compared to 2013 by 2020.
Carbon-efficient modes of transport and transport routes preferred
On many routes Tchibo prefers to use CO2e-efficient transport such
as ocean-going vessels or inland waterway barges. We also use ‘inter
modal solutions’ for transport routes, for example transporting truck
trailers by ship or rail.
We transport 95 % of our goods by sea. CO2e emissions per ton-kilometre can be significantly reduced with precise planning, because
ships can reach the port of destination in good time even at slower
speeds, allowing them to consume less fuel. We therefore choose
to work with freight service providers who practice efficient route management. Our inspection centres in China and Bangladesh
also ensure that containers of consumer goods are fully loaded on
embarkation, so that the freight capacity is well utilised. For the further transport of Non Food consumer goods incoming
from overseas, we use barges instead of trucks from Bremerhaven. We also use freight trains to transport our products for
longer overland distances. In 2014, we switched from road to rail freight transport for long-distance transports between the
Swiss distribution centre in Rümlang and our distribution points.
These measures have led to a continuous reduction in our transport emissions by the end of
2014. The absolute amount of CO2e emissions compared to 2006 was cut by over 50 %. In
terms of ton-kilometres, transport-related CO2e emissions fell by 30 %. In the next few years
up to 2020, we have set ourselves the goal of reducing these relative emissions by another
10 % compared to the base year of 2006.
Efficient process management
In planning our logistics processes, we take care to avoid any unnecessary transport and minimise the distances goods are
transported. In distribution, we focus our actions on systematically planning the quantities for each sale point. We have also
stringently organised the movement of goods at our warehouses. Our main warehouse and distribution centre in Bremer,
which Bremer Lagerhaus Gesellschaft (BLG) operates for us, is state-of-the-art in terms of equipment and technology. The
new storage and retrieval unit alone, an innovative assembly-line system, saves 400 MWh of electricity per year compared
to the predecessor system. This corresponds to the average consumption of more than 100 households. The unit is only activated goods actually need to be moved. Likewise, a smart lighting system only turns on lights when needed. This reduces
energy consumption by a further 100 MWh per year. We are planning similar solutions for improving the efficiency of distri
bution processes at our Gallin and Neumarkt distribution centres. By 2020, we plan to reduce our CO2 emissions per m³ of
storage space at these locations by 15 % compared to 2015.
Intelligent management of goods movements cuts CO2 emissions
A more efficient management of our distribution network is another lever to reduce CO2 emissions in the supply chain. Since
2006 we have set up increasingly direct delivery routes between our roasting plants and distribution centres. This enabled
us to do without intermediate storage warehouses and avoid unnecessary transports. The CO2 emissions from our distri
bution activities fell accordingly.
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Offset emissions from shipping the merchandise
Besides reducing CO2 emissions we also offset unavoidable CO2
emissions in our supply chain, such as those incurred when shipping our products to customers. Since 2012 we have shipped all
our letters and packages exclusively using Deutsche Post DHL’s
‘GoGreen’ programme. The fee is used to finance accredited climate-protection projects in developing and emerging countries,
so our payments contribute to the CO2 emissions being avoided
at a different location. This serves to offset the CO2 emissions
incurred during shipping. Only projects that are certified to the
Gold Standard developed by the WWF environmental foundation among others are funded. The standard ensures that each
project would not have been possible without the income from
these certificates, so that they comply with the principle of “additionality”. It also ensures that the project strengthens the
local economy in the vicinity of the project.
One of these climate projects, which Tchibo has supported since 2012, is a biomass power plant in the Indian state of Karnataka. The surcharge also goes to finance the construction of a landfill gas power plant in Mamak, Turkey, a wind farm in
Liuao, China and another wind farm in Nicaragua..
Environmental protection in our operations | Climate Protection | Tchibo sites & shops
Tchibo sites & shops: the climate-friendly
operation of roasting plants
Whether for coffee roasting, heating administrative buildings or lighting Tchibo shops, we consume energy on a daily
basis in the operation of our locations. We are constantly working on using electricity and heat as efficiently as possible,
thereby reducing our CO2 emissions. At our energy-intensive roasting plants we have introduced an energy management
system in accordance with ISO 50001 with which we aim to reduce the specific energy consumption per ton of roasted
coffee by at least 1.5 % every year compared to 2013.
All Tchibo locations in Germany exclusively use ok-power-certified electricity from renewable energy sources. This includes
our two roasting plants and distribution centres, the company’s headquarters in Hamburg and all Tchibo shops for which
we buy the electricity for ourselves. Only a few Tchibo shops in malls are powered with electricity by the shopping centre’s
operators. ok-power certification guarantees that the electricity comes from renewable sources and that its producers
participate in the expansion of renewable energy beyond statutory requirements.
Increased efficiency through organisational and technical improvements
In recent years we have focused our savings targets on processes in the roasting plants. In
2013 for instance, we implemented an energy management system according to DIN EN ISO
50001:2011 which resulted in the introduction of organisational and technical improvements at
our two roasting plants. This enabled us to reduce our energy consumption per ton of roasted
coffee in 2014 by 2.3 % vs. the previous year, well above our savings target of 1.5 %. The idea
behind the energy management system is to productivity and energy efficiency in production.
To this end, we analysed variables such as plant utilisation, outside temperatures, product
ranges, and catalytic converter temperatures in our roasting plants. The impact of construction
projects was also considered in detail. In 2014 we reviewed the results and used the findings to
optimise our processes. The energy management system owes its effectiveness not least to the
efforts of our employees, who actively contribute ideas for identifying and exploiting further potential for energy savings.
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Environmental protection in our operations | Climate Protection | Mobility
Mobility: Low CO2 emissions through long-term
fleet strategy
We maintain close personal contact with our business partners, suppliers, customers and colleagues. So although we
use innovative means of communications, business travel is indispensable. However, it does give rise to CO2 emissions.
Our long-term fleet strategy serves to gradually minimise these CO2 emissions by progressively switching our fleet to
fuel-efficient and electric vehicles. In 2014, we received the German Environmental Aid (DU) “Green Card for Credible
Eco-consciousness” for this – for the third consecutive time.
As part of our company-wide fleet strategy, we have set CO2 emission limits for newly purchased vehicles. They take their
cue from the maximum values the EU prescribes for new cars. By 2020, we will gradually reduce the average CO2 emissions
of our company cars to 95 g CO2/km in accordance with EU requirements. Our fleet strategy’s requirements apply to Tchibo
in Germany as well as to our national subsidiaries. To meet these requirements, we take the following actions:
··For vehicles with combustion engines, we buy the most energy- and resource-efficient models of a given series.
··If the usage requirements for the vehicle permit, we buy hybrid and electric vehicles.
··We give our executives incentives to use more eco-friendly models.
The incentive system for our executives is based on graded subsidies for leased vehicles for both business and private use.
Specifically, in 2014 the following gradation applied: the most fuel-efficient models with values below 110 g CO2/km and electric vehicles receive the highest subsidy; for models with values between 110 to 125 or 125-140 g CO2/km it is reduced in two
steps. We also offer bigger, family-friendly vehicles for employees with three or more children. For these vehicles slightly
increased CO2 limits apply as an exemption to the rules.
Green Card for our climate-friendly company car fleet
We have succeeded in continuously reducing our emissions over several years with our fleet
strategy. In 2014 the average CO2 emissions of our company car fleet were further reduced
from 120 g CO2/km in the previous year to 119 g CO2/km. We calculated these values based on
the manufacturers’ information. This puts us well below the EU climate target of 130 g CO2/km
for new cars manufactured in 2014, which we adopted as the upper limit for our fleet strategy.
Our success in reducing mobility-related CO2 emissions has been lauded by the experts. In
2014 the German Environmental Aid Association (DU) surveyed 166 publicly listed companies
and SMEs on their fleet-related CO2 emissions. The results showed that Tchibo and four other
surveyed companies did the best job meeting the requirements of a low-emissions fleet strategy. As a result, we received the DU “Green Card for credible environmental awareness” for the third consecutive year. In
addition to fleet-wide emissions, those of the senior management’s vehicles were also considered, along with each company’s strategy for reducing emissions.
Electric vehicles: green electricity in urban transport
Our senior management models our commitment. For the fourth year in a
row, Tchibo CEO Dr Markus Conrad has used an electric vehicle as his company car. Several other electric vehicles were also used during the reporting period. In 2014 the mailroom in Hamburg began a limited twelve-month
trial period with a VW E-Caddy. In early 2015 it was extended through the
following September. Staff at Head Office can use five electric cars that
are part of our fleet. The warehouse and the roasting plants each operate
an electric Mercedes A-Class. In addition to public charging stations, users
have access to three charging stations powered with green electricity at the
Tchibo Head Office..
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Support for individual mobility solutions
We support cycling as another healthy, CO2-free/zero-emissions alternative. We have installed 50 new parking spaces, enabling our staff and guests to lock their bikes in the head office grounds. To ensure the bikes can be ridden safely, in May 2014
we set up a mobile bicycle repair workshop at our Hamburg headquarters. Demand was so great that we had to draw lots
for who would receive inspection and repair appointments on that day.
In addition to offers for cyclists, we offer our employees other eco-friendly mobility solutions. For instance, we assume
half the cost of the ProfiCard, a Hamburger Hochbahn AG subsidised travel card for local commuters. We pay in full for the
BahnCard (rail card) of frequent business travellers within Germany. In addition, we teamed up with the car-sharing provider
car2go to organise two events for the free registration of our employees at various locations.
Environmental protection in our operations | Climate Protection | Value Chains
Value chains: Countering and adapting to climate
change in the countries of origin
In addition to our own processes, we also deal with climate change in the upstream value chain, because our core business as a trading company is directly affected by its consequences: rising temperatures and extreme weather events
can negatively affect crop yields in our source countries for raw coffee. Cotton cultivation is also affected by the effects
of climate, such as drought, which makes it all the more important that we commit to protecting the environment and
counteracting climate change in our procurement markets for raw coffee and consumer goods.
In the source countries for coffee, adapting to the consequences of climate change is the primary task. In the source countries of our consumer goods we focus on environmentally friendly cotton cultivation, responsible forest management, and
the reduction of CO2 emissions generated during production.
Coffee value chain: Safeguarding yields and quality by adapting to the climate
Helping coffee farmers adapt to climate change is of existential importance both now and in the future. In major coffee-growing regions climate change has already led to longer and more intense droughts, more violent and more frequent storms,
and heavy rainfall resulting in soil erosion. All this has a negative effect on the quality and harvests of raw coffee. As part
of our Tchibo Joint Forces!® qualification programme, we provide local assistance to help farmers secure their livelihoods
in spite of these challenges. We also work with the Coffee & Climate development partnership to support coffee farmers in
switching to sustainable farming methods adapted to climate change.
Consumer goods: Reducing CO2 emissions in production
Reducing greenhouse gas emissions is an important part of our commitment to a sustainable Consumer Goods value chain.
Around a third of all CO2 emissions released during the lifecycle of consumer goods are generated during production. That
is why we use our influence as a trading/retail company to build our producers’ awareness about countering climate change
and help them to switch to more energy-efficient manufacturing processes.
On the one hand, we focus on an environmentally friendly cultivation of natural raw materials. In the production of our
textiles, we already mostly (around 85 %) use cotton grown according to the specifications of the EU Organic Farming
Directive (organic cotton) or the Aid by Trade Foundation (Cotton made in Africa). In our sourcing of wood and paper, we
are continuously increasing the proportion of wood from forests managed according to Forest Stewardship Council (FSC®)
standards. This figure was over 30 % in 2014. Secondly, we work with our suppliers to reduce production-related emissions.
For this purpose, an online tool developed by the Carbon Performance Improvement Initiative (CPI2), which was co-founded
by Tchibo in 2012, gives them specific recommendations on how to reduce their energy consumption and CO2 emissions
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Environmental protection in our operations | Resource Efficiency
Conserving resources – Responsible use of paper
and packaging materials
Key business processes in our company, such as communications and packaging, require the consumption of natural
resources. The paper and cardboard we use for this purpose is made from wood or pulp – raw materials whose extraction may affect the environment. We therefore take responsibility by ensuring an economical use of these materials
and avoiding waste. We are increasingly using recycled materials and products from responsible forestry to cover the
remaining requirements.
Environmental protection in our operations | Resource Efficiency | Paper from Pulp
Paper: Reduce consumption,
use responsible sources
Forests are habitats for many plant and animal species and a valuable resource that protects the climate, soil and
groundwater. For the manufacture of paper from wood pulp, these resources are finite. The necessity of using paper is
therefore questioned in principle. However, we cannot completely do without paper as a material for conveying infor
mation. After all, paper still plays an important role in customer communications, for example in the form of catalogues
or advertising material. Against this backdrop, we are consistently reducing our paper consumption and simultaneously
increasing the proportion of environmentally friendly paper qualities.
We obtain the paper used in our office and customer communications from responsible sources. For our internal consumption we use paper that is Blue Angel (recycled paper) or Forest Stewardship Council (FSC®) certified or awarded the EU
Ecolabel. Since 2012 we have also printed magazines and catalogues in Germany, Austria and Switzerland on FSC®-certified
paper. At the national subsidiaries in the Czech Republic and Slovakia in 2013 and in Turkey, Poland and Hungary, this switch
was made in 2014.
Environmental protection in our operations | Resource Efficiency | Packaging & Waste
Packaging & waste: less is more
Packaging is essential because it protects our products during transportation and storage and ensures that our customers receive their goods in perfect condition. In addition, sales packages are used to inform customers of important
product features. We do use as little packaging as possible and work to ensure that natural resources are used sparingly
in their manufacture. In addition, we avoid packaging waste and ensure that our packaging can be recycled after use.
The Tchibo Packaging Directive that is mandatory for our suppliers also applies for the design of all Tchibo product packaging. It defines our quality and environmental requirements and explains the statutory labelling requirements we have to
comply with as a provider. For example, all plastics must be identified to ensure their environmentally friendly recycling. In
general, all components, adhesive tape and labels must be recyclable. Tchibo never uses PVC as a packaging material, and
we only use solvent-free printing ink that is low in heavy metals.
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In early 2015 we began to further develop our packaging strategy by pursuing the following five complementary approaches
to avoiding, reducing, recycling and improving packaging.
··Avoiding: avoid outer/secondary as far as possible
··Reducing: further reduce the weight of packaging
··Recycling: use more and more secondary raw materials and increase their recyclability based on eco-design
principles
··Improving: increase the share of certified cardboards and test next-generation bio plastics
By 2020, we aim to reduce paper and cardboard consumption by 30 % percent compared to 2013 in this way.
More eco-friendly, more economical packaging
The packaging used by Tchibo is mainly composed of
paper or cardboard. Our goal is to significantly reduce
the consumption of paper and cardboard in our product
packaging and to only use environmentally friendly
materials in future. So we are always looking for ways
to save paper and cardboard and increase the proportion of the recycled and FSC® paper we process. For
shipping packages we have only used FSC®-certified
cardboard since 2013. This also makes economic sense
for us: continuous improvement in shipping and repack
aging saves paper and reduce our costs.
In our coffee packaging there is less potential for cutting down on materials. It protects the coffee beans or ground coffee from light and oxygen that would otherwise impair the
flavour of our coffee. The technical filling process and transport also place special demands on the packaging. Nonetheless,
we are looking for solutions for a more resource-efficient design of our coffee packaging and regularly review our packaging. For example, this resulted in the conversion of Cafissimo capsule packaging to recycled materials.
Coming soon: more efficient use of cartons in online shipping
Up to 15 % of packaging materials can be saved by more systematically filling packaging when shipping Tchibo online orders. A thesis written by a student from the Kühne Logistics University in Hamburg confirms this. On the basis of 200,000
anonymised orders she calculated which graduation of predetermined packaging sizes best suited the optimal filling of
cartons with goods. Tchibo therefore decided to gradually adjust the sizes when procuring its shipping packages, from mid2015, to reflect the results of the study.
Cafissimo: better use of capsules
Coffee capsule systems like Cafissimo receive public criticism due to the ‘rubbish problem’. Although usually their ecological
footprint is better than that of filter coffee because only the required quantities are prepared – meaning that less coffee is
poured away – we have set ourselves the goal of making the capsules more environmentally friendly. We are working hard to
develop the capsules so that they can be recycled better, and are confident that we will achieve this goal in 2016.
Disposable takeaway cups
Disposable takeaway cups are especially controversial as people tend to litter inner cities and green spaces with them.
In our Tchibo shop Coffee Bars, we serve beverages in reusable porcelain tableware. Beverages are only served in ‘to go’
cups if customers specifically ask for them. However, we emphasise that they should be disposed of in an environmentally
friendly way after use. To this end, we are participating in a public-private pilot project in Karlsruhe that involves the public
in raising awareness of the proper disposal of disposable cups.
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Clean city partnership with the city of Karlsruhe
In 2014, we joined food service industry companies, coffee shop operators and the city of Karlsruhe in launching a
clean city partnership. The idea is to ensure that coffee shop packaging and disposable cups are properly disposed
of and recycled. Tchibo participates in the partnership with its six Tchibo shops in Karlsruhe and supports a poster
initiative to encourage consumers to participate.
In addition, we are currently working on further measures to reduce the proportion of disposable cups. This includes the
option of refilling cups brought in by customers.
Gradual conversion to paid-for reusable bags
Instead of free, disposable bags made from fossil fuels we want to offer our customers alternative solutions in the future. In
2015 Tchibo/Eduscho Austria launched a pilot project for this purpose. Use of disposable bags should be reduced by 50 %
by the end of 2015, and to zero in 2016. Since 1 July 2015, Tchibo shops have charged a fee for disposable plastic bags. As an
alternative, we also offer our customers the option of buying reusable bags.
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Sustainability report 2014 | Employees at Tchibo
Employees at Tchibo
Employees at Tchibo | Strategy & management
Putting people first
Even in 1949, Tchibo founder Max Herz believed that employees are a company’s most important resource. This conviction characterises the family-owned business Tchibo to this day and forms the basis of a corporate culture marked by
openness and dialogue. For this reason we have codified values such as trust, reliability and honest dealings with each
other in the Tchibo DNA.
Well-qualified, passionate and achievement-oriented employees are the foundation for our long-term success. As a respon
sible employer, we therefore put people first. We offer our employees a performance-oriented, stimulating working environment, attractive development opportunities, and help them achieve a good work-life balance. In the face of demographic
change, we regard it as a strategic task to recruit new talented professionals by getting them excited about Tchibo.
Changing world of work: new requirements - multiple perspectives
The world of work is undergoing a dynamic transformation. In addition to existing know-how, new skills are continuously required, especially in a globally networked retail company like Tchibo. Accordingly, we place high demands on our employees.
They have to think on their feet, take the initiative and assume responsibility. Only in this way can we meet our commitment
to keep inspiring our customers anew for Tchibo every day in future.
With our unique business model and combination of brand and retail we offer our employees a diverse work environment
and exciting prospects. We value an open exchange of ideas on an equal footing, acknowledge performance and promote
careers on the basis of qualifications. At the same time we help our staff achieve a healthy work-life balance. Depending on
their stage of life, we offer them flexible offers and solutions. This is part of the reason that Tchibo is today considered one
of Germany’s most family-friendly companies.
Corporate culture and values
At Tchibo we foster and desire an honest exchange within the company – especially across different hierarchical levels – to create
a culture of trust in which individual potential can develop. We offer our employees opportunities to become actively involved in
Tchibo’s development. We systematically promote collegiality, reliability and innovativeness so that everyone works together to
bring the best ideas to customers.
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Talent management
Well-qualified employees and talented young people play a crucial role in our company’s long-term success. We therefore
practice systematic talent management. Managers at Tchibo have a responsibility to identify specific career paths for their
staff and promote their development. At the same time, we encourage them to help shape their own career paths at Tchibo
according to their own interests, capabilities and needs
Occupational Health Management
Good health and mental resilience are important prerequisites for withstanding the increasing demands of the modern,
concentrated working world. These aspects are becoming increasingly important, because in addition to existing require
ments the average age of our employees continues to rise as a result of demographic change. The central concern of
occupational health management at Tchibo is therefore to maintain and promote the physical and mental health of our
employees in the long term.
Work and life
We consider the needs of our employees and provide increasing support in a variety of situations. It is important to us that
our employees can achieve a healthy work-life balance. We therefore offer them flexible rules regarding working hours and
working from home, childcare facilities and family care support, re-integration after parental leave and dealing with the
changing role of fathers
Remuneration, Employee Benefits and Tchibo Extras
Tchibo places high demands on its employees. In return, we offer them appropriate recognition and attractive, fair, perfor
mance-based compensation and a variety of voluntary corporate employee benefits. Our ‘Tchibo Extras’ for employees and
their families are part of our company culture. They include preventive healthcare measures, help in achieving a healthy
work-life balance as well as pension, social insurance and fringe benefits
Employees at Tchibo | Corporate culture & values
Corporate culture as a success factor
We want employees who continually take the initiative and assume responsibility. In return we offer them an appre
ciative corporate culture in which we jointly learn from our mistakes and reward initiative.
At Tchibo we foster a culture of open and constructive communication and team spirit, promote personal dialogue and
create opportunities for participation across all hierarchical levels. We thereby enable our employees to fully support the
success of our brand.
Value-oriented action anchored in the Tchibo DNA
“Passionate employees sustain the company” it is stated in our Tchibo DNA. Published in 2011, the Tchibo DNA describes
the success factors for the Tchibo brand. Our corporate culture plays an important role. Open and honest treatment of each
other is just as important to us as collaboration characterised by clear rules of conduct, guided by high values.
The Tchibo DNA is complemented by our Code of Conduct, which defines the values and mandatory behaviour for the company as a whole and for each individual employee. It formulates our understanding of fairness and ethical business conduct
as well as our aspiration to comply with laws and data protection rules, and take responsibility for people and the environment. This also includes a culture of diversity where discrimination has no place. Regardless of age, gender, race, sexual
orientation, religious beliefs, physical constitution, or any other personal characteristics, at Tchibo all employees have the
same opportunities, because each and every one contributes to the success of the company with their individuality. All em-
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ployees receive regular training about the Code of Conduct from the time they start their job. And of course our measures
fulfil the requirements of the General Equal Treatment Act (AGG), also known as the Anti-Discrimination Act.
Dialogue on an equal footing
Tchibo’s corporate culture as a Hamburg-based family-owned business has traditionally been characterised by open dialogue between equal partners. Although we now operate globally, we want to retain this strength, which is why we delib
erately promote exchange across all divisions, departments and hierarchical levels of the company. Wherever possible,
we involve employees in the company’s development. It is becoming more and more important that communication takes
place not only top-down, i.e. from supervisors to their staff, but as a network between colleagues with equal rights. That is
why we support the dialogue with modern communication tools on the Tchibo intranet. For example, the ‘Abgeschaut bei’
(Roughly: Here’s how they do it) section on the intranet shows what works well in the departments and how other units can
learn from it. At our Hamburg roasting plant and at the logistics centres in Gallin and Neumarkt, where employees have no
or only limited access to the intranet, we promote exchange in workshops and at regular roundtable discussions. In addition,
all employees in Neumarkt receive a weekly newsletter.
Since 2013, executives at the head office in Hamburg have regularly presented and discussed current projects with employees at the „Tchibo in dialogue” series of events. In Non Food, employees across all hierarchical levels are informed about
new developments at ‘town hall meetings’. Tchibo managers regularly meet employees who are selected at random for a
conversation. The two-hour meetings provide an opportunity to discuss current topics at Tchibo.
Ideas from practice
Constructive criticism often leads to good ideas – and we welcome and appreciate the practical solutions our employees
come up with. Employees can contribute their own suggestions for innovative products or improving internal processes via
our ‘Kolibri’ ideas management system, [Kolibri means ‘hummingbird’ in English and stands for ‘Kollegen liefern brillante
Ideen’ – colleagues supply brilliant ideas]. This not only benefits Tchibo; the ideas providers themselves are rewarded with
bonuses. In 2014, Tchibo employees submitted around 600 proposals – some 300 were ideas for products – of which 30
were rewarded. The Tchibo Ideas Manager manages the evaluation process; the assessment is carried out in the depart
ments and by a supervisory committee.
We plan to give our ideas management further impetus in 2015 by introducing a modern online platform. Innovative formats
such as crowdsourcing and community-based idea management enable employees and supervisors to communicate in a
more networked way and develop their innovations together in a virtual space.
Stacking high for fuel efficiency, and reports at a click: Top ideas in 2014
You don’t have to reinvent the wheel, just make it turn better – as an idea from 2014 shows. In Berlin an employee
noticed that pallets for the Hungarian market could be filled higher than before; in-depth testing confirmed this. Now
Tchibo saves nearly 30,000 euros by reducing the number of truck journeys.
Statutory co-determination
We give our employees the opportunity to actively shape Tchibo’s development via the statutory codetermination bodies.
These include the works council with 35 members – six of them union representatives – as well as the Supervisory Board,
whose composition reflects an equal representation by employees and shareholders. The two bodies work together closely.
At the company meetings, which take place regularly at the Hamburg headquarters, in 2014 more than 1,000 colleagues
were informed about the work of the works council, the development of the business, the results of the employee survey,
and the Group’s offers to help employees achieve a healthy work-life balance.
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Employee feedback
Our employees provide important impetus for the company’s development. To learn even more about how they assess
their work situation and what is important to them, in 2014 we cooperated with an external consulting firm to carry out the
second Tchibo employee survey. At around 65 percent, the survey participation rate was high compared with the industry
average. We received positive feedback regarding the appreciation of employees at Tchibo, as well as the specific tasks at
work and our customer focus. However, the engagement rating – i.e. the willingness to be passionately dedicated to the
company and work for it long-term – was just under 50 percent, which is merely average. At the same time, many respon
dents wanted a simpler and more efficient organisation.
Tchibo takes these concerns of its employees seriously. In 2015 we launched a project to improve core processes by making
them simpler and more efficient – and more closely aligned to the needs of our customers. At the same time we have
set ourselves the goal of further improving the exchange of ideas within the workforce and between the workforce and
management. For this purpose, in early 2015 we set up the new Intranet section ‘My question’ among other things. Every
Tchibo employee has the opportunity to anonymously contact experts from the relevant business unit with questions and
criticisms, and receives a response within three working days.
Employees at Tchibo | Talent management
Finding and developing suitable talent
It is becoming more and more difficult to find and retain talented young employees. We see the recruitment, promotion
and retention of young talent as a key strategic task. Equally important is the ongoing training and long-term employment of our experienced staff, for whom we develop special offers as part of our life phase-oriented HR management.
We are regularly publically acknowledged as an attractive employer. In 2014 the target group of under-40s once again voted
us among the Top 40 employers in the WirtschaftsWoche ranking. Our HR marketing and recruiting make an important
contribution to this positive perception.
The Tchibo University Marketing team talks to potential recruits at company contact fairs and graduate conventions. Young
professionals and specialists from Tchibo regularly give practical lectures at universities. We also invite students to come to
us so that they can gain an insight into Tchibo’s working environment. For example, as part of the Hamburg Company Tour,
in which top companies from the Hamburg area open their doors to students from all over Germany once a year for a day.
On the two-day Tchibo Discovery Tour recruiting event a total of 70 participants gained an insight into Tchibo’s working
environment. In 2014 it was led by HR Director Jochen Eckhold, among others, who spoke to them about his own career and
outlined what he expects from future employees and what future employees can expect from Tchibo.
We involve our own employees in the search for suitable candidates. Tchibo employees are able to propose candidates for adver
tised positions through our ‘NetWork’ employee referral programme. This not only gives us a higher quality of applications, but
also strengthens employee loyalty.
HR Oscar for Tchibo recruiting film
In 2014 our employer branding video ‘Working at Tchibo: A new adventure every week’ won an HR Excellence Award
in the ‘Employer Video – Corporation’ category. The film gives an insight into the wide spectrum of jobs in the Non
Food division and invites viewers to explore Tchibo as an employer.
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Inspiring young professionals
The company offers young professionals who want to start their career at Tchibo various career opportunities – from
internships and vocational training to dual-degree and trainee programmes. We also support students writing a thesis on a
Tchibo-related topic. Since 2000, Tchibo has also participated in the annual Girls’ and Boys’ Day when Year 6 – 11 pupils can
‘shadow’ Tchibo employees at work for a day.
Initial experience: Interns and working students
Internships and working-student contracts offer prospective interested parties a first glimpse into the Group – and give us
the chance to meet potential future employees at an early stage. Tchibo appreciates the commitment and the potential of
its interns. As a member of the ‘Fair Company’ initiative we are obliged to assign interns tasks that match their skills and
expectations, and they receive fair compensation regardless of the duration and type of internship. It goes without saying
that since January 2015, we take German minimum wage requirements into account as well.
Training at Tchibo: Learning responsibility
Tchibo offers a variety of apprenticeships, mainly in commercial and partly in technical professions. The assumption of
responsibility is a core value in training at Tchibo. For example, we give retail trainees the independent management of a
Tchibo shop for a week. At the same time we accept the responsibility that comes from training young people. All appren
tices who score an average grade of 2.0 or better are offered a permanent full-time position at Tchibo.
We see awards as validation of the quality and practicality of training at Tchibo. A recent example is our Gallin logistics centre being named ‘Top Training Company 2014’ by the Schwerin Chamber of Industry and Commerce.
Training at Tchibo
Commercial apprenticeships:
··Bachelor of Science/Business IT
··Bachelor of Arts/ Business Administration, Commerce
··Bachelor of Arts/ Retail Management
··Visual Marketing Designer
··Industrial Manager
··Wholesale and Foreign Trader
··Office Communications Assistant
Technical and Industrial Occupations:
··Industrial Engineering Electrician
··Warehouse Clerk
··Warehouse Logistics Specialist
··Industrial Mechanic
··Mechatronics Technician
··Food Technology Specialist
··Chef
A flying start to one’s career: The dual-degree programme
We offer especially well-qualified junior staff the opportunity to complete a dual degree in Business IT or Business Admin
istration. In this way we retain talent with in-depth knowledge of Tchibo and extensive expertise in the relevant areas of the
company.
Gaining an overview: Starting as a trainee
An individualised training programme prepares ambitious Tchibo graduates for a responsible role in the company in 15 to
18 months. We consider it important to give our trainees an understanding of relevant interfaces and overarching themes
at their stations in the Group, especially for on the topic of ‘good conduct’. In 2014 six trainees in the Group started their
comprehensive practical training.
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Keeping experience in the company
In 2014, one in three of our employees were already aged between 51 and 66. In 2015, for the first time we are offering them
a retirement preparation workshop with the external service provider ‘SeniorInTrainer’. At the same time, we use various
partial retirement models to guard against the disproportionate ageing of the workforce and giving people with decreasing
physical capacity too much of a workload. Another important issue is the avoidance of conflict when experienced staff
members work with much younger executives. We want young executives to learn to appreciate the life and professional
experience of older employees and put them to good use in their own work. Part of this is also recognising and using their
important role in internal knowledge transfer. In 2015 we will develop further offers to promote life phase-oriented HR work.
Learning and being inspired: Tchibo CAMPUS
The competitiveness of our company is partly based on employees and managers put their talents and skills to the best
possible use. Tchibo CAMPUS is our central place of learning, inspiration, and personal development. With Tchibo CAMPUS,
we seek to promote mutual learning and inspire our employees and managers to further their professional and personal
development. For both target groups, we have programmes oriented to their respective development needs.
At Tchibo, all employees have the opportunity to learn in a variety of ways, strengthen their individual strengths, and utilise
their development potential. This includes the provision of technical and methodological training in coffee expertise, foreign
languages, IT, project management and intercultural communication, as well as seminars in the field of personal devel
opment. For example, the art of being simultaneously engaged and relaxed is practiced under the guidance of a coach. All
colleagues can also attend Tchibo Business School lectures to gain fascinating inspiration for their everyday work.
The second essential component of Tchibo CAMPUS is management development. Target group-specific programmes give
our managers opportunities to reflect on their role, learn [about] new leadership tools, and develop a common under
standing of leadership. In addition, they are supported in practicing appropriate communication and successfully addressing issues from their everyday management. Our executives are also encouraged to acquire current leadership knowledge
in compact seminar units as part of the Tchibo Leadership School, to future-proof themselves and their teams.
Another focus is team development: our executives are “helped to help themselves” through individual coaching, and can
work on team-related topics in individual workshops with internal and external coaches.
We also launched the Junior Management Programme and the ‘Learn to Lead’ programme specifically for young execu
tives, junior managers, and high-potentials. These programmes help them build personal networks, expand their method
ological skills, and practice self-reflection.
Strengthening international exchange
Tchibo is an internationally operating family-owned company whose growth and procurement markets outside Germany
are becoming increasingly important. Our staff are crucial for our international success. They contribute significantly to
the company-wide transfer of knowledge. Foreign secondments broaden horizons and therefore play an important role in
this context. Tchibo therefore offers its employees three different deployment programmes that enable them to experience everyday work far away from their own workplace: one is for a short-term secondment (four to twelve months), usually
tied to a specific project or current requirement in the local market; one has the goal of the further developing the employee – specifically for trainees (max. 3 months) and Young Talents (max. 6 months); and one is for long-term secondments
of executives, generally over several years. Often these deployments are used for the targeted professional and personal
development of Tchibo talents. In 2014, a total of 15 employees were deployed abroad, most of them from the company’s
headquarters in Hamburg.
Intercultural exchange of experience at Tchibo
Whether in China, Russia, India, Bangladesh or Austria – intercultural competence is an important factor in the success of our international business relations. Tchibo CAMPUS intercultural tutorials provides a good basis for this. In
taster classes on ‘Intercultural Day’ at the Hamburg headquarters in spring 2014, more than 100 employees experi
enced for themselves the benefits of the training.
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Employee appraisals
One key management task at Tchibo is to provide employees with transparent feedback about their performance and their
prospects in the Group based on this, as well as systematically supporting them in their development. At Tchibo, we use
the TRACKS management tool for this. In 2014 its content and processes were adapted to differentiate achievements more
clearly and promote talent more purposefully in future.
Employees now have the opportunity to submit a self-assessment of their performance, potential and future development
opportunities ahead of their appraisal interview. At the end of 2014, more than 60 percent of employees used this oppor
tunity to become actively involved in the process from the beginning. Managers also prepare for the interviews and are
given intensive instruction in using the performance evaluation tools. In the appraisal interview, the employee’s perfor
mance is assessed based on a newly introduced 5-point scale. The review provides clear starting points for targeted further
development. In a subsequent personal conversation, the employee and manager then agree on measures that will allow
them and therefore also the organisation to continue their development as part of the talent management scheme.
Employees at Tchibo | Occupational health management
Facilitating peak performance:
Tchibo health management
Our staff fulfil high demands every day. A health-promoting work environment is an important requirement for having
the necessary energy to do so. That is why many years ago, we began giving a great deal of attention to the physical
and mental health of the workforce.
We are convinced that taking some responsibility for maintaining the health of our employees is of key importance for our
company’s success. For this reason, we rely on a company and target group-oriented occupational health management
system. This is anchored via a steering committee at the senior management and executive level. All operational processes and structures and all of the company’s divisions are included in it to create the necessary framework conditions for a
health promoting working day and enable a sensible prioritisation of measures. We want the working environment to have
a positive effect on our employees’ health, and that they can be actively committed to their health. In doing so, we go far
beyond ‘traditional’ health matters.
Interdisciplinary working groups develop special offers
We have progressively interlinked all of our occupational health management measures in recent years. Today our employees can access a variety of preventive and supportive offers from the fields ‘mental health’, ‘medical advice’, ‘diet’, ‘exercise and ‘OSH’. This applies to all employees - from office and field sales staff, to Tchibo shop staff and industrial colleagues
at the production and warehouse sites.
We are continually developing our offer to meet the changing needs of our employees. In 2013 various topics were defined
for this purpose: ‘Tchibo Shops and Tchibo Prozente, ‘Field Sales Depot’, ‘City Nord HQ’, ‘Logistics and Production’, ‘People
with Disabilities’ and ‘Culture and Marketing’. For each of these areas, specific measures are developed in interdisciplinary
working groups or existing measures are interlinked. Staff from the respective areas of work are involved in the teams. In
this way we reinforce our employees’ personal responsibility for their own health. The project teams also develop communi
cation activities to publicise our healthcare offering in the company. Successfully so: our 2014 employee survey confirmed
that awareness of Tchibo’s health management has increased thanks to the work of the focus groups. The staff also indicated that the new offers better suit their needs.
95
Our occupational health management offers in 2014 (a selection)
Medical Advice
··Preventive checkups, travel and flu vaccinations
··Health Days at company headquarters, logistics and production Exercise
Group fitness programmes
··Sports Week and Health Days
··Running events (MOPO relay race)
OSH
··Training films on the intranet
··Ergonomic aids in the workplace
··Ergonomic office chairs (Office) and car seats /automatic transmission (Cars) for field sales
Nutrition
··Diverse, freshly prepared food at all locations
··Climate dish and Veggieday
··Dietary advice
Mental health
··‘Healthy Leadership’ management seminars
··‘PME Familienservice’, life coaching
··Consultation by the company doctor
Spotlight on ergonomics
In 2015, all issues relating to work-life balance and health are summarised under the new heading of ‘Balance’ in order to
better exploit synergies. In addition to the ‘Balance’ project, a Balance team was set up for the first time in HR. The team
addresses all topics for all Tchibo staff in Germany – from occupational health and safety to disability and integration management to health management and a healthy work-life balance. In 2015 and beyond, the decentralised locations will be
the focus of the ‘Balance’ project. Focus topics in 2015 include a proactive company (re)integration management as well as
a psychological risk assessment.
Promoting mental health
Another topic of the focus groups is ‘psychological stress’. In 2014, we hosted workshops for our executives demonstrating
the importance of an appreciative leadership style for the mental health of employees. We also integrated seminars for
management (‘Healthy Leadership’) and employees (‘Remaining Stable in Transition’) in the Tchibo CAMPUS. In 2014 we
also offered lectures and seminars on the subject at the Tchibo Business School. The ‚PME Familienservice’ also offers all
employees a free 24/7 hotline and life coaching for coping with personal or job challenges from professionally trained staff.
Health Day and Sports Week at Tchibo
From healthy back coaching to office yoga - on Health Days at headquarters and our logistics locations in Gallin and
Neumarkt, we once again offered our employees opportunities to convince themselves of the diversity of Tchibo’s
fitness offerings in hands-on exercises this year. The theory behind it was also taught in short keynotes and workshops on topics such as ‘back-friendly working techniques’ or ‘healthy eating for shift work’. At the first Health Day
at the City Nord HQ we followed the example of the Health Days already very successfully implemented at the decen
tralised locations. The event was very well received, so we are also preparing a Health Day for staff at headquarters
in 2015.
As part of Health Week 2014, our employees were also able to get to know health-promoting sports, from Nordic walking to Tai Chi and stand-up paddling.
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Employees at Tchibo | Work-Life Balance
Work-Life Balance
At Tchibo, we support our employees in reconciling their personal and professional goals because we know the value of
family and a fulfilling personal life. For example, we have explicitly anchored a healthy work-life balance as an aspiration
in our DNA for years.
Our offers range from flexible working hours and a concept for staying in touch with employees on parental leave, to care
services for children and counselling on the subject of care for other dependents. We have systematically geared them
to the individual needs and the requirements of our employees at different stages of their lives and consider the entire
spectrum of possible life plans. Given the rising average age of our workforce, we will address the specific needs of the 50+
generation even more in future. With these offerings we aim to increase Tchibo’s attractiveness as an employer and strengthen employee loyalty – important prerequisites in readying Tchibo for the challenges of demographic change.
Certified family friendliness
In August 2010, Tchibo became the first retail company in Germany to be certified as a ‘family-conscious employer’ by
berufundfamilie GmbH – an initiative by the Hertie Foundation. In 2013 we were re-certified through 2016. This entails
further binding target agreements whose achievement is reviewed annually by an independent auditor. The following focuses were specified
··Working hours, organisation and place
··Leadership skills and personnel development
··Services for families
··Information and communication
Main area of focus

Results
Working hours,
organisation and place
Performance beats presence culture
In designing its work processes, Tchibo relies on the individual responsibility of its employees. A continuous
presence in the workplace is less important to us than an employee’s actual performance. That is why, besides
staff employed on the basis of collective wage agreements, executives can also work part-time. In addition,
many employees can do some of their work from home. Information on the ‘home office’ and the company
agreement to this effect are available to every employee on the Tchibo intranet. Tchibo also has job-sharing
models. Anyone who wants a sabbatical can apply for one.
Leadership skills and
personnel development
Supportive management wanted
In 2014, we added a section on ‘flexible working’ to our management manual and expanded the range of seminars accordingly. As part of the ‘Healthy Leadership’ programme offered by our Leadership School, from 2015
we offer various seminars for the professional management of flexible forms of working. We also systemati
cally support our executives in the responsible handling of expectant mothers and fathers.
97
Main area of focus

Results
Services for families
Systematic support for a healthy work-life balance
We continuously adapt our offers for families to the needs of our employees. For example, in 2014 we inten
sified our cooperation with pme Familienservice GmbH, which offers individual advice for parents and carers
as well as helping them to find holiday and emergency care programmes. Since 2014, we also offer a Tchibo
CAMPUS workshop on ‘How to succeed at career and family’, which already generated a positive response in
its first run-through.
Easier return to work after parental leave
To help employees on parental leave – there were 138 such employees in 2014 –stay in touch with the company
and re-enter the workplace, we have successfully used our ‘connection concept’ for over two years: During
their parental leave, we invite our employees to the company every four months, to personally inform them
about current issues. The Tchibo intranet is also available to them during their absence. A colleague acting
as a ‘mentor’ also ensures they receive a regular flow of information, invites them to corporate events and
forwards in-house job listings to them.
Support for childcare
We help parents wanting to return to work find a day-care place for their children. At the childcare centres
we work with near the Hamburg headquarters, a total of 43 day-care spaces are available to them since the
expansion of our day-care programme in 2014. Since 2010 we have also cooperated with ‘Kidz Playground’, a
professional provider of children’s holiday camps, to look after the children of employees in Hamburg during
the school holidays. The offer is to be extended to other German states.
Caring for relatives
Our enhanced cooperation with pme Familienservice GmbH since 2014 also includes consultation on the
subject of caring for family members and the mediation of related services. In the first half of 2015, we gave
various presentations at the Head Office and other sites, where employees could learn about the medical
backgrounds to dementia and Alzheimer and get practical tips for everyday life with a sufferer, as well as bereavement counselling. In the brochure ‘Herausforderung Pflege’ ‘The Challenge of Providing Care’, we offer our
employees useful information on topics such as laws governing care, and nursing and living wills. Under the
law, employees caring for a close relative can reduce their working hours down to a minimum of 15 hours per
week for a maximum period of two years. Furthermore, we support requests for leave from employees who
wish to devote themselves to care tasks.
Information and
communication
Increasing the visibility of our offers
Another focus in connection with the “berufundfamilie” audit is to step up our information and communi
cation. In 2014, we presented the pme Familienservice GmbH offers to employees in a flyer that was distributed to all sites. We provide extensive coverage of the topic of work and life on the intranet. To ensure that
we can also inform our colleagues at the Tchibo shops and in production, we develop special formats for the
workforce outside the Hamburg headquarters, in which we also involve the district manager and the works
council. ‘Career & personal life’, for example, is often on the agenda at meetings for field sales staff and at
partial company meetings.
Being a father and manager
Under the heading: ‘Väter vor!’ (Fathers ahead) on 14 April 2015 Tchibo invited Volker Baisch, founder of the fathers
network ‘Väter e.V.’ to a dialogue event. Participants had the chance to reflect on their role as fathers and managers, to discover the similarities and differences, and recognise the respective qualities. It was also discussed what
leadership skills are wanted so that men can balance work and family better in future.
In November 2015 we will offer another workshop for fathers. The focus will be on time management solutions that
help fathers maintain a balance between their work, family and personal needs.
Education award for Tchibo collaborative day nursery
The quality of care for our employees’ children is important to us, so we were all the more pleased that our partners,
Kita City Nord, won the €10,000 Hamburg Education Award in 2014. The award sponsored by the Hamburger Abend
blatt and Hamburger Sparkasse is presented to honour innovative educational projects in schools and day-care centres.
Kita City Nord was founded in 2006 and has 100 places for companies based in the City Nord district. Tchibo employees currently have 33 places available at this facility for children aged between 8 weeks and when they start school.
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Employees at Tchibo | Remuneration, employee benefits & Tchibo extras
Performance-based compensation –
attractive fringe benefits
Our employees largely determine the success of the company. For this they not only receive our recognition, but also
attractive, fair and performance-based remuneration. In addition, we offer a wide range of voluntary corporate employee benefits.
Our compensation structure is based on the principles of market orientation, fairness, transparency and traceability. In this
spirit, we regularly adapt it to the latest developments. For example, since 2013 we only pay the target bonus as a percentage of basic salary, for an updated, simplified remuneration. We also schedule the salary reviews for immediately after the
appraisals to link performance and pay more. In addition to bonuses and premiums, which we value outstanding perfor
mance with, Tchibo granted special allowances such as Christmas and holiday pay up to a certain salary level, which were
also paid in 2014, including voluntary, not collectively agreed shares.
Collective agreements with trade unions
In the remuneration of staff at our Tchibo shops, we take our cue from collective agreements for the retail trade. In July
2014 we signed a collective agreement with the ‘Nahrung Genuss Gaststätten’ (NGG) union under the umbrella of the German Hotel and Restaurant Association (Dehoga), which runs until the end of May 2016 and stipulates a lowest negotiated
wage of 8.51 euros from December 1, 2014.
Tchibo Extras: Special recognition for special achievements
We see voluntary employee benefits as an integral part of a good corporate culture. They serve as recognition for our employees’ exceptional dedication and performance. In our view, initiatives for preventive healthcare and achieving a healthy
work-life balance are just as much a part of this as post-employment benefits, social insurance and fringe benefits, in which
we also include pension schemes and employee discounts.
Workplace health promotion is one focus of the leisure centre at our headquarters, where for a fee of just €2 a month, employees can practice 30 sports and use the indoor swimming pool and a weight room. Employees living outside of Hamburg
often have the opportunity to use gyms at special rates thanks to works council agreements. We also offer our employees
discounts on Tchibo products and have agreed group accident insurance cover for them that provides 24-hour coverage
and therefore also extends to their personal life outside of work.
Social insurance beyond active employment
For us employer responsibility means safeguarding our employees beyond their active employment. For over ten years, we
have offered all employees at Tchibo GmbH and German subsidiaries a company pension. We maintained this offer even
after completion of the 2014 fiscal year. The capital payment amount is based on the employees’ contractual position and
how long they worked for the company. All Tchibo employees also have the option of building up an additional pension pot
through payments that are exempt from taxes and social security contributions. Any pension shortfalls can be covered at
low cost through a company direct insurance scheme. On request, our HR department offers employees personal consul
tation for finding suitable means of pension provision.
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Overview of our comprehensive service package
··Flexible working hours systems such as trust-based working hours, flexitime, part-time and work from home
··Pension benefits (e.g. group accident insurance, company pension)
··Anniversary gifts
··Preventive healthcare, ‘Balance’ project
··Employee discount and monthly coffee allowance
··Subsidised public transport
··Staff restaurant and cafeteria, coffee pantries on all floors with a range of coffee, tea, cocoa and mineral water,
free to employees
··Offers at the leisure centre
··A company sports programme
··Children’s day-care places at the City Nord day-care centre
··Children’s events
··Seniors programme
··Christmas roast
··Christmas and Easter gifts
··Organisation of selected festivals and celebrations
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Sustainability report 2014 | Facts & Figures
Facts & Figures | Indicators
Indicators
We use relevant indicators to continually measure our performance and achievements on the way towards a 100% sustainable business. They demonstrate our progress, but also highlight necessary improvements and thus form the basis
for managing our sustainability activities on the way towards becoming a 100% sustainable business.
As in previous years, in 2014 we report on major developments in our value chains and action areas, in a transparent,
factual way and based on key performance indicators (KPIs) and other salient figures. We use KPIs serve as instruments in
managing and evolving our major sustainability activities and to focus our reporting more on topics that are material for
Tchibo as a company.
The figures for 2012 to 2014 each apply to the calendar year and relate to business activities of Tchibo GmbH, its subsidiaries and sites in Germany that are relevant in connection with sustainability. Our international business units are recorded
if they use centrally managed processes. In addition to the key figures for the Coffee and Consumer Goods sectors, data on
transport-related CO2 emissions is also included. No prior-year figures are shown for selected indicators in the Consumer
Goods value chain that were thoroughly revised or surveyed for the first time in 2014.
The purchasing and production figures refer to purchased or produced quantities for the following year in the year under
review. Other, differing, areas of application are noted accordingly. All of the figures have been separately rounded, which
may lead to slight variations in the totals.
In 2014, we changed the methodology for calculating CO2 emissions in the supply chain and at our sites, to adapt these
indicators to the latest accounting standards and ensure the validity of the data. As part of this, the previous year’s figures
were also retrospectively recalculated. (G4 – 22)
Figures for the calendar year 2014 that were audited by an independent auditing firm have been marked with a certification
mark
. Figures that had already undergone such auditing in previous years are separately marked
Sustainable corporate governance
Revenue
Revenue of Tchibo GmbH
.
Unit
2012
2013
2014
€ billion
3.6
3.5
3.4
Unit
2012
2013
2014
Total
%
27.3
30.4
34.3
Total
Number
3
6
7
Unit
2012
2013
2014
Total
Number
810
808
780
Total
%
100
100
100
Total
Supply chain: Coffee
Sustainable Coffee
Proportion of raw coffee included in the Tchibo Sustainability concept as a percentage of the total raw coffee delivered for production
at Tchibo roasting facilities and external roasting facilities during
the reporting period
Tchibo Joint Forces!® projects
Number of projects carried out as part of Tchibo Joint Forces!®
Supply chain: Consumer goods
Portfolio of producers1 and Strategic approach
Producers
Number of producers who produced consumer goods in the main
sales year
SCoC signatories
Proportion of producers who have signed the social and environment Code of Conduct (SCoC)
1
Producers for the permanent “Lieblingsstücke/Favourites” range added to the Shop in 2014 are not included
101
Unit
2012
2013
2014
Total
%
50.5
57.1
64,4
Total
Number
200
284
320
Total
Number
162
221
230
Total
%
45
58.3
60.7
Total
%
54
72
66.2
Total
%
-
-
73.8
Total
Number
20
41
42
Total
%
19.3
28.2
31.4
China
%
66.6
65
61.9
Germany
%
7.1
7.7
7.7
Turkey
%
4.8
4.9
6.4
Bangladesh
%
3.7
3.8
4.2
Vietnam
%
3.3
2.2
2.5
Other3
%
14.5
16.4
17.3
Portfolio of producers1 and Strategic approach
Direct-to-customer business
Proportion of directly purchased projects based on all purchasing
projects
WE producers
Number of producers who have participated in the “WE” qualifi
cation programme (Worldwide Enhancement of Social Quality) since
2007
WE producers in the ASF
Number of WE producers who produced for Tchibo in the year
covered by the main annual sales figures (ASF)
WE products
Proportion of purchasing projects realised by WE producers
WE purchasing volumes
Proportion of purchasing volume that was produced by WE
producers
WE purchasing volumes in risk countries 2
Proportion of purchasing volumes from risk countries, produced by
WE producers
Core suppliers
Number of suppliers with framework contracts, known as ‘core suppliers’ A core supplier can have goods produced for Tchibo at more
than one producer/production site
Core suppliers (proportion)
Proportion of core suppliers based on purchasing projects
List of countries
Production countries
Proportion of purchasing projects per production country
2
3
WE coverage by country
··Ethiopia
%
100
100
100
Proportion of purchasing projects by WE producers compared to
total purchasing projects per production country
··China
%
58.5
68.5
71.3
··Bangladesh
%
90.4
98.1
100
··Cambodia
%
-
51.9
70.3
··Laos
%
92.3
91.3
95.2
··India
%
37.8
25.9
67.3
··Turkey
%
-
86.5
88.3
··Vietnam
%
-
87.3
72.9
uring the reporting period we looked at all the producer countries (see also below under „other“) in addition to the EU countries, Israel, Japan, Switzerland, South Korea and the US
D
as risk countries. Based on a risk analysis shall each represents an exception, because other effective mechanisms for compliance with social and environmental standards exist there,
such as a functioning legal system, press freedom and stronger monitoring by state authorities
40 countries: AL, AT, BA, BE, BG, CH, CZ, DK, EG, ES, ET, FR, GB, GR, HU, ID, IL, IN, IT, KH, KR, LA, LB, LK, LT, LV, MD, MY, NL, PK, PL, PT, RO, SE, SI, TH, TN, TW, US, XS.
102
Unit
2012
2013
2014
Number
-
-
586
Number
-
-
439
Number
78
113
147
Number
78
113
586
··Bangladesh
Anzahl
5
7
17
··China
Number
35
54
407
··India
Number
9
21
67
··Thailand
Number
3
2
7
··Turkey
Number
3
13
16
··Vietnam
Number
15
6
21
··Other5
Number
8
10
51
Countries where no audit
is required
%
-
-
15.5
WE (no audit)
%
-
-
29.5
Suitable
%
-
-
31.2
Follow-Up
%
-
-
14.4
Not Suitable
%
-
-
5.4
Not audited
%
-
-
4.1
Countries where no audit is
required
%
-
-
15.5
WE (no audit)
%
-
-
29.5
Suitable
%
-
-
10.1
Follow-Up
%
-
-
2.1
Not Suitable
%
-
-
0.9
Not audited
%
-
-
41.9
Social and environment audits: monitoring
Social and environment audits by type of audit
Number of internal and external social and environmental audits
performed, broken down by type of audit 4
Total
··Internal social and
environment audits
··External social and
environment audits
Social and environment audits by country
For 2012 and 2013: number of internal and external social and
environmental audits performed per production country
For 2014: number of internal and external social and environmental
audits performed per production country
Social and environment audits by results
Breakdown of internal and external social and environmental audits
by audit process status as of 31 Dec 2014 6
Total
Social audit results
Environmental audit results7
4
5
6
7
From 2014, unlike in previous years, internal social and environmental audits will also be listed in addition to the external ones.
O ther 2012: Cambodia, Indonesia, Sri Lanka, Pakistan, Malaysia. Other 2013: Egypt, Cambodia, Sri Lanka, Pakistan, Taiwan. Other 2014: Egypt, Dominican Republic, Hong Kong, Indonesia, Cambodia, Laos, Lebanon, Malaysia, Myanmar, Pakistan, Sri Lanka, Taiwan, Ukraine, Cyprus.
In 2014, we fundamentally revised the social and environmental monitoring process and at the same time conducted a risk analysis of Tchibo producer countries. Producers from European Union countries, Israel, Japan, South Korea, Switzerland and USA are not checked through audits, because other effective mechanisms for compliance with social and environ
mental standards exist there, such as a functioning legal system, press freedom and stronger monitoring by state authorities. Compliance with the social and environmental standards
at WE producers is continuously monitored as part of the WE programme; therefore no audits are performed at WE producers.
Since 01/01/2014, each new audit also inspects environmental aspects. All unaudited producers are gradually being integrated.
103
Unit
2012
2013
2014
Total
%
40
70
85
Total
%
30
45
60
FSC®
%
15
50
40
Total
%
10
65
98
Unit
2012
2013
2014
Total
g/tkm
16.32
13.64
13.04
Total
t
69,922
61,954
59,837
··Seagoing vessels
t
52,170
34,428
33,265
··Trucks
t
15,343
19,570
20,384
··Rail
t
1,234
6,697
4,274
··Air
t
1,080
1,171
1,840
··Inland waterways
t
95
88
74
Average CO2e emissions
in g/tkm
%
-17.3
-30.9
-31.5
Absolute CO2e emissions
in t
%
-45.6
-51.8
-53.4
··Seagoing vessels
%
74.6
55.6
55.6
··Trucks
%
21.9
31.6
34.1
··Rail
%
1.8
10.8
7.1
··Air
%
1.5
1.9
3.1
··Inland waterways
%
0.1
0.1
0.1
Sustainable resources and products 8
Responsibly produced cotton
Proportion of textiles purchased that are made of/with “Organic
Cotton”, “Cotton made in Africa” or of/with cotton from the “Better
Cotton Initiative”
Sustainable viscose
Proportion of textiles produced with man-made cellulose fibres
(viscose), which were obtained in cooperation with Lenzing AG to
environmentally friendly standards
Sustainable wood and paper
Proportion of products purchased with a wood/pulp component
(excluding textiles) that are certified according to the criteria of the
Forest Stewardship Council (FSC®)
Chrome-free tanned leather
Proportion of products manufactured from chrome-free tanned
leather
Environment
Logistics (Supply Chain)
Transport-related CO2e emissions (average)
CO2 emissions resulting from Tchibo product transport in relation to
ton-kolometres
Transport-related CO2e emissions (absolute)
CO2 emissions resulting from Tchibo product transport (not adjusted
for quantity) 10
Relative reduction of transport-related
CO2e emissions
Decrease in transport-related CO2e emissions compared to the base
year 2006
Transport-related CO2e emissionsby mode of
transport
Proportion of modes of transport used totransport-related
CO2e emissions
8
9
10
The main sales year (HVK) was used as the basis for indicators in the Resources and products section
Ton-kilometres are a common unit of measurement for representing freight transport capacity. They are calculated from the weight of the goods transp orted in tons multiplied by the
distance travelled in kilometres.
The calculation was performed for the first time in 2014 and retroactively for the values of
2013 in accordance with DIN EN 16258. CO2 equivalents (CO2e) take other greenhouse gases
like methane and nitrogen into account in addition to carbon dioxide.
104
Environment
Unit
2012
2013
2014
MWh
122,861
123,478
117,246
··Electricity
MWh
59,989
59,681
55,616
··Gas
MWh
56,837
57,991
56,338
··District heating
MWh
5,018
4,699
3,997
··District cooling
MWh
1,017
1,107
1,295
··Administration (offices)
MWh
11,443
11,419
10,866
··Tchibo Shops
MWh
24,368
23,292
20,825 11
··Roasting facilities
MWh
74,863 12
75,533
··Warehouses
MWh
12,187
13,234
11,726 14
t
51,041
51,082
47,307
··Electricity
t
35,034
34,854
··Gas
t
14,209
14,498
14,085
··District heating
t
1,495
1,400
1,191
··District cooling
t
303
330
386
%
100
100
100
%
100
100
100
··Tchibo Shops
%
100
100
100
%
100
100
100
··Warehouses
%
100
100
100
km
37,542,394
37,835,840
32,999,885
··Car (company cars)
km
22,411,688
21,064,213
15,474,00417
··Air
km
12,032,335
13,622,054
13,971,862
··Rail
km
2,718,565
2,737,876
3,155,566
··Car (rental cars)
km
379,806
411,697
398,453
Sites and Tchibo Shops
Energy consumption at sites
Total
Energy consumption of the Tchibo head office in Hamburg, the
warehouse sites in Neumarkt and Gallin and the roasting facilities in
Berlin and Hamburg
By type of energy
By location
CO2 emissions from energy consumption at sites 15
CO2 emissions resulting from energy consumption at our sites
16
Electricity obtained from renewable energy sources
Proportion of electricity obtained from renewable energy sources
Total
Total
73,829 13
31,646
Mobility
Distance covered for business travel
Total distances travelled on business trips by Tchibo employees
11
12
13
14
15
16
17
Total
he fall in energy consumption is due mainly to the lower number of Tchibo shops.
T
Unlike in the Sustainability Report 2013, gas consumption at the Berlin site was included in the total value.
The specific energy consumption (per ton of roasted coffee) was reduced by 2.3 % compared to 2013 through technical and organisational measures as part of the energy management system.
The fall in energy consumption was mainly due to the milder winter.
Compared to the previous year’s publication, the values for 2012 and 2013 list gas, district heating and district cooling emissions in addition to CO2 emissions from electricity consumption.
Compared to the Sustainability Report 2013, the basis for calculating CO2 emissions from electricity consumption was changed due to an update of the relevant emission factor. The
updated CO2 emission factors set out in „Development of specific carbon dioxide emissions of the German power mix in the years 1990 to 2014“, UBA 09/2015 were used for this report.
The update of the emission factors also results in a change in emissions for the years 2012 and 2013. The basis for calculating gas, district heating and district cooling are the CO2 equiv
alent emission factor according to GEMIS 2015, also taking into account the entire life cycle. Transp orts and material input, excluding disposal.
The decrease in distance covered is the result of an organisational change
105
Environment
Unit
2012
2013
2014
t
5,144
5,151
3,856
··Car (company cars)
t
3,609
3,455
2,470 19
··Air
t
1,375
1,545
1,22820
··Rail
t
111
101 21
108
··Car (rental cars)
t
50
50
51
CO2-emissions
t
3,609
3,455
2,470
CO2-emissions
(average)
g/km
124
120
119
1,000 l
1,380
1,320
944
Mobility
CO2 emissions related to business travel
CO2 emissions related to business travel by Tchibo employees18
Fuel consumption of the Tchibo fleet and associated
CO2 emissions
CO2 emissions related to fuel consumption of the Tchibo car fleet
Total
Fuel consumption
Paper
Paper consumption at Tchibo offices and shops
Total 22
t
17,406,25
21,724,45
1,302,52523
Quantity of paper used at Tchibo offices, shops (office paper,
decoration and printed materials) and depots (mail-order magazine
and decoration
Conventional paper
t
1,920,43
938,59
434,503
Recycled and FSC® paper
t
15,485,82
20,785,86
868,022
Conventional paper
%
11
4.3
33.4
Recycled and FSC® paper
%
89
95.7
66.624
Total
t
19,279
20,241
20,462
··Paper/cardboard
t
14,159
14,985
15,471
··Plastic
t
2,347
2,403
2,356
··Composite packaging
t
2,354
2,334
2,172
··Glass
t
368
489
434
··Aluminium
t
6
7
6
··Tin
t
21
12
17
··Others
t
24
11
7
Percentage breakdown
Packaging and Waste
Packaging materials brought into circulation
Volume of packaging materials brought into circulation by Tchibo
18
19
20
21
22
23
24
Calculated on the basis of emission factors of the Öko-Institut (Gemis 4.6) or according to service provider specification.
The fall in CO2 emissions despite increasing distances is due to the fact that more relatively low-emission airlines and less emission-intensive routes were flown.
The low CO2 emission figure results from an organisational change.
In 2013 different emission factors were used. This is due to changes in the offsetting of green energy at Deutsche Bahn.
In 2012 we switched to FSC® paper for all promotional materials. Changes in the purchasing systematics made it possible to record additional advertising material.
In 2014, the survey method was changed so that more paper consumption such as transport materials are reported. Changes in the purchasing systematics enabled additional adver
tising material and tools to be recorded. It should be noted that the annual figures are not strictly comparable because paper consumption varies greatly each year due to the time of
the order and duration of storage.
Recycled paper accounted for 46.7 % and FSC® paper for 19.9 % of paper consumption.
106
Environment
Unit
2012
2013
2014
t
11,514.68
10,594.26
12,821.51
··Paper, cardboard
t
8,120
7,752.48
9,880.59
··Municipal waste
t
1,318
1,015.78
975.66
t
1,529.1
1,384.18
1,455.3
··Mixed foil
t
217.18
208.22
233.4
··Plastic waste
t
96.9
97.92
165.62
··Bulky waste
t
38.5
0
9.63
··Wood
t
181.5
1120
96.31
··Glass
t
2.70
0
1.5
··Used appliances
t
5.5
0
7
t
3.1
3.77
3.5
t
2.20
19.91 25
0
t
9,758.78
8,833.33
5,645.16
··Paper, cardboard
t
8,276
7,703.27
4,740.78
··Municipal waste
t
1,097.6
780.52
570.12
t
2.9
1.56
2.5
··Mixed foil
t
227.2
240.26
167.3
··Plastic waste
t
3.48
1.49
2.35
··Bulky waste
t
0
9.54
63.35
··Wood
t
132
96.69
98.76
··Glass
t
0
0
0
··Ceramics
t
19.6
0
0
··Used appliances
t
0
0
0
t
0
0
0
t
0
0
0
Packaging and Waste
Waste at Tchibo sites
Total
Waste at Tchibo offices, production sites and warehouses
··Waste from the
production and
processing of food
··Hazardous waste (as
defined in the Waste
Catalogue Ordinance)
··Waste from construction
and demolition
Waste at warehouse locations operated by service
providers
Waste at warehouse locations operated by service providers that
Tchibo collaborates with
Total
··Waste from the
production and
processing of food
··Hazardous waste (as
defined in the Waste
Catalogue Ordinance)
··Waste from construction
and demolition
25
The increase is due to retrofitting of Tchibo shops and construction at a warehouse.
107
Environment
Unit
2012
2013
2014
Hazardous waste
t
3.10
3.77
3.5
Non-hazardous Waste
t
21,253.86
19,423.96
12,818.01
··Composted
t
1,187
1.165
1.538.16
··Recycled
t
18,826.86
17,092.96
10,254.41
··Incinerated
t
1,102
1,049
769.08
··Landfill
t
138
117
256.36
m3
32,963
34,042
37,279
m3
23,894
24,262
26,400 26
··Warehouses
m3
9,069
9,780
10,879 27
Unit
2012
2013
2014
Number
8,550
8,851
8,264 28
··Women
Number
6,942
7,212
6,738
··Men
Number
1,608
1,639
1,526
Number
158
163
151
··Women
Number
98
100
93
··Men
Number
60
63
58
Number
12
11
8
··Women
Number
8
10
6
··Men
Number
4
1
2
Number
5,460
5,607
5,271
··Women
Number
5,354
5,486
5,157
··Men
Number
106
121
114
Back office
Number
2,477
2,626
2,498
··Women
Number
1,469
1,593
1,466
··Men
Number
1,008
1,033
1,032
Number
418
419
308
··Women
Number
99
113
94
··Men
Number
319
306
214
Number
195
199
187
··Women
Number
20
20
21
··Men
Number
175
179
166
Packaging and Waste
Waste by type and disposal method
Total quantity of waste broken down into hazardous and nonhazardous waste and by disposal method
Water
Water consumption
Annual water consumption at administrative sites (offices) in Hamburg and at warehouses
Total
Employees
Personnel structure
Employees
The figures given apply to both full-time and part-time employees,
excluding trainees, employees no longer covered by the continued
pay period, and employees on maternity or parental leave
Trainees and Apprentices
Number of apprentices and trainees by gender
Total
Apprentices
Trainees
Employees by field of activity
Number of employees by field of activity and gender
Tchibo shops
Sales
Roasting facilities
26
27
28
The higher water consumption is due to the hot summer and the greater number of employees.
Approximately 1,500 m3 of water was lost in Gallin due to leaks in the fresh-water pipeline. This resulted in higher overall water consumption.
Lower number of employees due to an organisational change
108
Employees
Unit
2012
2013
2014
Part-time
%
65.7
65.7
66.6
··Women
%
96.4
96.3
96.5
··Men
%
3.6
3.7
3.5
%
34.3
34.3
33.4
··Women
%
52.1
53
51.8
··Men
%
47.9
47
48.2
%
81
81
83
··Women
%
80
79
80
··Men
%
20
21
20
Temporary
%
19
19
17
··Women
%
89
91
91
··Men
%
11
9
9
%
56.4
54.5
50.5
··Women
%
57.3
58.6
58.7
··Men
%
42.7
41.4
41.3
%
32.7
34.6
38.6
··Women
%
50.1
51.9
52.9
··Men
%
49.9
48.1
47.1
%
9.9
9.9
9.9
··Women
%
31.5
33.5
36
··Men
%
68.5
66.5
64
%
1.1
1.1
1
··Women
%
8
11.1
17.4
··Men
%
92
88.9
82.6
< 30 years
%
16.9
18
16.7
··Women
%
80.6
82.2
80.9
··Men
%
19.4
17.8
19.1
%
55.6
54.5
54
··Women
%
80.6
80.4
80.6
··Men
%
19.4
19.6
19.4
> 50 years
%
27.5
27.6
29.3
··Women
%
82.8
83.1
83.6
··Men
%
17.2
16.9
16.4
Personnel structure
Employees by type of employment
Proportion of employees with a full-time or part-time contract,
by gender
Full-time
Employees by employment contract
Proportion of employees with a temporary or open-ended
employment contract, by gender
Distribution of salary levels (as defined in the Hay
Group method)
Salary levels as defined in the Hay Group method, by gender
Open-ended
Salary levels 1 – 7
Higher salary levels
Age structure
Age structure in the total workforce broken down into three age
groups (<30 years, 30-50 years, > 50 years) by gender
30 – 50 years
109
Employees
Unit
2012
2013
2014
German nationals
%
95.1
93.9
93.4
EU citizens
%
2.3
3.1
3.3
Non-EU citizens
%
2.6
3
3.3
Employees with disabilities
Tchibo GmbH
%
4.7
4.8
5.1
Proportion of employees with a disability in the total workforce,
broken down by business unit
Tchibo Manufacturing
%
10.1
11.1
10.2
Average share
%
4.9
5
5.2
Number
1,542
1,647
1,216
··Women
Number
1,339
1,439
1,041
··Men
Number
203
208
175
< 30 years
Number
636
691
533
··Women
Number
547
598
463
··Men
Number
89
93
70
Number
779
838
587
··Women
Number
672
735
494
··Men
Number
107
103
93
> 50 years
Number
127
117
96
··Women
Number
120
106
84
··Men
Number
7
11
12
Number
1,262
1,315
984
··Women
Number
1,196
1,235
925
··Men
Number
66
80
59
Back office
Number
242
282
204
··Women
Number
130
180
106
··Men
Number
112
102
98
Number
31
43
26
··Women
Number
11
24
9
··Men
Number
20
19
17
Number
7
7
2
··Women
Number
2
0
1
··Men
Number
5
7
1
Personnel structure
Nationality
Proportion of German nationals, EU citizens and non-EU citizens
New hires and departures
New hires
New hires (not including apprentices and trainees) by age group,
gender and field of activity
Total
By age group and gender
30 – 50 years
By field of activity and gender
Tchibo shops
Sales
Roasting facilities
110
Employees
Unit
2012
2013
2014
Number
52
23
43
··Women
Number
25
12
23
··Men
Number
27
11
20
Number
6
10
6
··Women
Number
4
9
4
··Men
Anzahl
2
1
2
%
11.5
9
9.5
··Women
%
12.3
9.3
10.1
··Men
%
7.8
7.7
6.7
%
14.7
11.1
12
··Women
%
14.3
10.7
11.6
··Men
%
40.2
32.7
32.5
Back office
%
5.9
5.5
5.3
··Women
%
5.5
4.9
5.4
··Men
%
6.7
6.4
5.2
%
7.9
6.5
5.9
··Women
%
12.8
6
8.5
··Men
%
6.3
6.6
4.7
%
1.5
2
3
··Women
%
0
0
0
··Men
%
1.7
2.2
3.4
Apprentices and trainees hired
Number of apprentices and trainees by gender
Apprentices
Trainees
Staff turnover
Departures of employees in relation to the average number of staff
broken down by field of activity and gender
Total
Tchibo shops
Sales
Roasting facilities
111
Employees
Unit
2012
2013
2014
%
68.3
66.1
74
··Women
%
88.9
86.7
89.7
··Men
%
11.1
13.3
10.3
%
24.6
27.4
20.1
··Women
%
86
83.3
84.3
··Men
%
14
16.7
15.7
%
1.8
1
1.4
··Women
%
89.5
100
100
··Men
%
10.5
0
0
Death
%
0.7
0.8
0.7
··Women
%
71.4
57.1
66.7
··Men
%
28.6
42.9
33.3
%
4.7
4.6
3.7
··Women
%
77.6
57.9
65.6
··Men
%
22.4
42.1
34.4
Total
€
3,891,000
3,988,000
3,718,000
Total
Number
69
44
59
··Tchibo shops
Number
46
21
32
··Back office
Number
19
19
22
··Sales
Number
0
0
0
Number
4
4
5
··Women
Number
60
32
36
··Men
Number
9
12
23
Number
144
158
138
··Tchibo shops
Number
80
94
82
··Back office
Number
60
61
50
··Sales
Number
4
3
5
Number
0
0
1
Reasons for departure
Reasons for departure by kind and gender
Notice by employee
Amicable departure
Job-related incapacity
Notice without reason
Talent management
Education and training
Investment in education and training in the administration (offices)
and Tchibo shop departments in Germany
Completed apprenticeships
Number of apprentices and trainees who completed their education
or trainee programme, broken down by field of activity and gender
Work-life balance
Employees on parental leave
Number of employees on full parental leave (i.e. without simulta
neous part-time employment)
Total
112
Employees
Unit
2012
2013
2014
%
72
71.5
71.5
··Tchibo shops
%
71
70
73
··Back office
%
78
75
70
··Sales
%
0
33
80
%
0
0
100
Work-life balance
Re-integration within 3 months after parental leave29
Percentage of employees who were still employed at Tchibo three
months after the end of a parental leave lasting a minimum of three
months
Total
Workplace accidents per 1,000 employees
Cumulative rate of workplace accidents per 1,000 employees at
our production and storage facilities, Tchibo shops and offices, not
including minor accidents
Total
Number
20
29
22
Absent days
Total
Number
10.9
11.4
11.7
··Women
Number
11.6
12.1
12.6
··Men
Number
7.8
8.1
7.7
Number
12.4
13
13.5
··Women
Number
12.4
13
13.5
··Men
Number
12.1
12.3
10.4
Back office
Number
8.4
8.8
8.6
··Women
Number
9.2
9.5
9.6
··Men
Number
7.3
7.6
7.1
Number
6.4
6.6
6
··Women
Number
7.1
9
6.8
··Men
Number
6.2
5.7
5.6
Number
11.5
12.8
12.7
··Women
Number
10.1
14.9
17.8
··Men
Number
11.7
12.5
12
Number of days of sick leave in relation to the average number of
employees
Tchibo shops
Sales
Roasting facilities
29
At the reporting date on 28 Feb 2015, 95,6 % of employees who were re-integrated after the end of their parental leave in 2013 were still employed at Tchibo
113
Employees
Unit
2012
2013
2014
%
4.2
4.4
4.5
··Women
%
4.6
4.8
4.9
··Men
%
3.2
3.3
3.2
%
4.8
5
5.2
··Women
%
4.8
5
5.2
··Men
%
4.5
5
4.5
Back office
%
3.8
3.9
3.9
··Women
%
4.3
4.4
4.5
··Men
%
3.1
3.2
3.1
%
2.7
2.9
2.6
··Women
%
3.2
4.1
3.2
··Men
%
2.6
2.4
2.3
%
4.8
5.3
5.4
··Women
%
4.6
7.1
8.2
··Men
%
4.8
5.1
5
Number
0
0
0
Absence rate
Proportion of paid sick hours in relation to the total number of
target working hours, over 12 months
Total
Tchibo shops
Sales
Roasting facilities
Work-related deaths
Number of work-related deaths in the total workforce and at independent contractors
Total
114
Facts & Figures | GRI-Index
GRI-Index
In our sustainability reporting we have used, since 2008, the Global Reporting Initiative (GRI) guidelines as an interna
tionally recognised basis for comparability and transparency. In producing the Sustainability Report 2014 we used the GRI
G4 standard for the first time. It will completely replace all previous GRI versions from 2016. Based on our 2014 analysis
of the G4 requirements, in our initial application of the new standards we focused on our material issues and particularly
meaningful indicators, so our report corresponds to the G4 ‘Core Level’. Beyond this, we also take into account the GRI
additional protocol for the food industry and the industry-specific supplementary indicators for the clothing and footwear
industries contained in the pilot version. Information that has been verified by an independent auditing company is indicated with a certification mark
.
GRI Content Index (G4)
Strategy and analysis
Indicator
Link and comments
G4 – 1 Statement from the most senior decisionmaker of the organization.
· Statement Dr. Markus Conrad
G4 – 2 Description of key impacts, risks, and
opportunities.
· Statement Dr. Markus Conrad
· Management
Organisational profile
Indicator
Link and comments
G4 – 3 Name of the organization.
· About Tchibo
G4 – 4 Primary brands, products, and/or services.
· About Tchibo
G4 – 5 Location of organization’s headquarters.
· About Tchibo
G4 – 6 Countries where the organisation operates
· Tchibo International
· Indicators, see Producers, producer countries and core suppliers
G4 – 7 Nature of ownership and legal form
· About Tchibo
· maxingvest AG Annual Report 2014, p.8
G4 – 8 Markets served
· About Tchibo
G4 – 9 Scale of the reporting organisation
· About Tchibo
· maxingvest AG Annual Report 2014, see Consolidated financial statement, p.43ff.
G4 – 10 Total workforce
· About Tchibo
· Indicators, see Employees by employment type/region and Employees by employment
contract
At our distribution centres in Gallin and Neumarkt, temporary workers accounted for
44 % and 64 % of the staff, respectively, during the reporting period (as at 31 Dec 2014).
The share of temporary workers results from the strong seasonal fluctuations in staff
needs in supply chain management / logistics – especially during the Christmas season.
The occupational health and safety actions taken apply both for Tchibo employees and for
temporary employees.
115
Organisational profile
Indicator
Link and comments
G4 – 11 E
mployees covered by collective bargaining
agreements
Collective agreements apply for all employees of Tchibo GmbH in Germany, except the
Managing Directors of Tchibo GmbH.
G4 – 12 S
upply chain of the reporting
organisation
· Coffee value chain/ Strategy & Management
· Consumer Goods value chain/ Strategy & Management
· Indicators, see producer countries
Source countries for raw coffee by purchased quantities, in descending order: Brazil,
Vietnam, Honduras, Colombia, India, China, Peru, Papua New Guinea, Guatemala, Ethiopia,
Kenya, El Salvador & Tanzania.
G4 – 13 S
ignificant changes during the reporting
period regarding size, structure, or
ownership
· maxingvest AG Annual Report 2014, see Economic Conditions, p.14
G4 – 14 E
xplanation of whether and how the
precautionary approach or principle is
addressed by the organisation
· Ambition, Strategy & Management
· Ecological Aspects of Production
· Environmental protection in our operations/ Strategy & Management
G4 – 15 External agreements, principles and
initiatives
· Commitments & cooperations
G4 – 16 M
embership in associations and/or
advocacy organizations
· Commitments & cooperations
Material aspects and boundaries
Indicator
Links and Comments
G4 – 17 Scope of consolidation in annual financial
statement
· About this report
G4 – 18 Process for defining report content
· Management
G4 – 19 Material aspects
· Management
G4 – 20 M
aterial aspects within the reporting
organisation
· Management
G4 – 21 Material aspects outside the reporting
organisation
· Management
G4 – 22 Re-statements of information provided in
earlier reports
· Indicators
G4 – 23 Changes in the scope and boundary of the
report
There were no material year-on-year changes to the boundary of the report.
Engagement of stakeholders
Indicator
Links and Comments
G4 – 24 List of stakeholder groups engaged
· Management
G4 – 25 Basis for identifying and selecting stake
holders with whom to engage
· Commitments & Cooperations
G4 – 26 Approaches to stakeholder engagement
· Management
· Commitments & Cooperations
G4 – 27 Key topics and concerns raised by stake
holders engaged, and response of the
reporting organisation
· Management
116
Report parameters
Indicator
Links and Comments
G4 – 28 Reporting period
G4 – 29 Date of most recent previous report
G4 – 30 Reporting cycle
G4 – 31 C
ontact point for questions regarding this
report or its contents
· Contact
G4 – 32 “ In accordance with” option, GRI Content
Index, Reference to external audit report
· GRI-Index
G4 – 33 E
xternal Verification/Confirmation of the
report
· Audit certificate
Corporate Governance
Indicator
Links and Comments
G4 – 34 Management structure of the reporting
organisation
· Management
· maxingvest AG Annual Report 2014, see Corporate Governance at maxingvest AG, p.117
Ethics and Integrity
Indicator
Links and Comments
G4 – 56 Internally developed statements of
mission or values, codes of conduct, and
principles
· Corporate Governance
Economic performance indicators
Indicator
Links and Comments
G4 – DMA Disclosure on Management Approach
· Ambition & Strategy
Aspect: Economic performance
G4 – EC1 D
irect economic value generated and
distributed
· Indicators, see Revenues
· maxingvest AG Annual Report 2014, Profit situation, p.16
Aspect: Indirect economic impacts
G4 – EC7 Development and impact of investments
in infrastructure
· Coffee value chain/ Education projects in the source countries
· Consumer Goods value chain/ Education projects in the source countries
· Indicators, see projects as part of Tchibo Joint Forces!®
117
Ecological performance indicators
Indicator
Links and Comments
· Environmental protection in our operations/ Strategy & Management
Aspect: Materials
G4 – EN2 P
ercentage of secondary materials in
total materials used
· Indicators, see Paper consumption at offices and Tchibo Shops
Currently there are no products in the product range with recycled content. In future
an increased use of secondary materials is planned. The recycled content of packaging
materials brought into circulation by us is not recorded at present. We are reviewing the
cost and benefit of doing this in future.
Aspect: Energy
G4 – EN3 E
nergy consumption within the reporting organisation
· Indicators, see Energy consumption at the roasting plants
sites and Fuel consumption of the Tchibo company fleet
, Energy consumption at
The measurement of gas and fuel consumption, like the measurement of electricity and
the reading of the district heating/ district cooling metre, is performed by a third-party
service provider.
Aspect: biodiversity
G4 – EN13 Habitats protected or restored
As part of the Sustainable Agriculture Network (SAN) certification programme, measures
to protect the environment are used on over 170,000 farms with more than 427,000 hectares of land. The SAN programme also supports the protection and restoration of natural
habitats. Examples include the preservation of 31,000 hectares of land in the Madre de
Dios region of Peru, the sustainable forest management of 877,251 hectares of land in
various regions of Gabon and the restoration of eroded landscapes in Oaxaca, Mexico
through climate-friendly farming practices.
· http://www.rainforest-alliance.org/publications/sustainable-coffee-farming-report
· http://www.rainforest-alliance.org/sites/default/files/about/annual_reports/AR2013_
spreads_0.pdf
For more information, see the websites of the standards organisations Tchibo works with.
· purchasing sustainable green coffee grades
Aspect: Emissions
G4 – EN16 Indirect energy-related THG emissions
(Scope 2)
· Indicators, see CO2 emissions from electricity consumption at sites
from gas, district heating and district cooling consumption at sites
see CO2 emissions
We rely on third-party service providers for compiling parts of this information, but some
of the data is also collected based on our own systems. The base year for Scope 2 THG
emissions is 2014, as the emissions were recalculated for the switch to GRI G4.
Aspect: Products and services
G4 – EN28 P
ercentage of products sold and their
packaging materials that are reclaimed, by category
In Germany, the law regulates the return and recycling of packaging. Tchibo fulfils this
legal obligation, licenses all packaging it brings into circulation, and thus ensures that
100% of the packaging used can be recycled by consumers via their household waste or
recycling centre free of charge with little effort.
· Packaging and Waste
118
Ecological performance indicators
Indicator
Links and Comments
Aspect: Compliance
G4 – EN29 M
onetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with environmental
laws and regulations
In the reporting period, there were no infringements of ecologically relevant laws or other
regulations.
Aspect: Transport
G4 – EN30 S
ignificant environmental impacts of
transporting products and other goods
and materials used for the reporting
organisation’s activities, and trans
porting members of the workforce
· Logistics
· Mobility
· Indicators, see Absolute transport-related CO2e emissions and business travel-related
CO2 emissions
Aspect: Screening of suppliers with regard to ecological aspects
G4 – EN32 Percentage of new suppliers who were
reviewed using ecological criteria
· Sustainable Supply Chain
· Social Aspects of Production
· Indicators, see WE producers in the main selling period
Aspect: Complaints procedure in connection with ecological aspects
G4 – EN34 N
umber of complaints in connection
with environmental impacts that were
submitted, processed and solved via
formal channels
Greenpeace’s Detox campaign
PETA campaign against animal cruelty at Asian angora farms
· Sustainable resources and products
Labour practices and decent work
Indicator
Links and Comments
· Employees at Tchibo/ Strategy & Management
Aspect: Employment
G4 – LA3 R
eturn to work and retention rate after
parental leave
· Career & family
· Indicators, see Employees on parental leave, Post-parental leave integration after three
months and Post-parental leave integration after more than twelve months
Aspect: Labour/management relations
G4 – LA4 M
inimum notice periods regarding
significant operational changes
· Company culture & values
Aspect: Occupational health and safety
G4 – LA6 Rates of injury, occupational diseases,
lost days and absenteeism, and number
of work-related fatalities by region and
gender
· Indicators, see Workplace accidents, absentee rate and work-related fatalities
Nearly 100% of workplace accidents occur in connection with the movement of merchandise by our employees. The most common injuries are bruises and sprains, broken bones
and cuts. There were no incidents of occupational diseases.
Accidents involving temporary workers are documented by the temporary employment
agencies, and reported in accordance with the legal requirements. Regardless of the
type of employment of the affected employees, Tchibo carefully reviews all work-related
accidents in order to minimize any causes of hazards.
119
Labour practices and decent work
Indicator
Links and Comments
Aspect: Education and training
G4 – LA10 K
nowledge management and lifelong
learning to support continued employa
bility of employees
· Talent management
· Indicators, see Education and training
Aspect: Diversity and equal opportunity
G4 – LA12 C
omposition of governance bodies and
breakdown of employees according to
indicators of diversity
· Career & family
· Indicators, see Rate of women in leadership positions , Employees by employment type/
region and age structure
Aspect: Equal wages for women and men
G4 – LA13 Ratio of basic salary remuneration to
male and female employees
· Indicators, see Distribution of salary levels
Aspect: Screening of suppliers with regard to labour practices
G4 – LA14 P
ercentage of new suppliers that have
undergone screening with regard to
their labour practices
· Sustainable Supply Chains
Aspect: Complaints procedure with regard to labour practices
G4 – LA16 Number of grievances related to labour
practices that were filed, addressed
and resolved through formal grievance
mechanisms
see G4-HR6
Human rights
Indicator
Links and Comments
Aspect: Investments
G4 – HR1 I nvestment agreements that take human
rights into account
Aspect: Equal treatment
G4 – HR3 Incidents of discrimination and actions
taken
Sustainable Supply Chains
Aspect: Freedom of assembly and collective negotiations
G4 – HR4 Activities where freedom of assembly
and collective negotiation is at risk, and
actions taken
· Responsible business practices
120
Human rights
Indicator
Links and Comments
Aspect: Child labour
G4 – HR5 Activities where a risk of child labour
exists, and actions taken
With regard to the production of our consumer goods, Section 2 of the SCoC explicitly
states that Tchibo will not tolerate child labour. All suppliers commit to comply with this
requirement when they sign a contract. Tchibo uses various instruments to reduce the
risk of child labour in the production of consumer goods: we run audits to check whether
children are working at factories. In the WE Programme, the WE trainers support the
factory management in building reliable management systems that prevent the hiring
of children. In the rare cases where unacceptable child labour is discovered, the children
are to be removed immediately from production, asked to attend school where schooling
is compulsory, and unemployed family members to be employed in their place, or similar
compensatory measures taken. This process is closely monitored by Tchibo. If the measures are not followed through with, the decision to terminate the business relationship is
considered as a last resort. At the suppliers and producers of our consumer goods – the
first and second tier of our supply chain - child labour is not such a widespread problem
anymore; here, the most commonly reported form of child labour is the hiring of 15-year-olds in China, who have already completed their education. Under Chinese law, young
people may only pursue full-time employment from the age of 16, which is why these
cases are documented as child labour. During the reporting period, there were a few such
incidents, where we initiated the process described above.
Coffee is grown primarily in developing and emerging countries. Despite intensive efforts,
child labour continues to be a problem there. A ‘mild form of child labour’ is tolerated by
legislators and international development and standard organizations, depending on the
children’s age and taking the state of development of a given country into consideration.
Unfortunately, it does happen quite frequently that children are used for heavy or dangerous work during school hours. The elimination of all forms of child labour will only have a
chance if parents can send their children to school and age-appropriate care services are
available for their children during school breaks. That is why, since 2011, we have sponsored education projects and childcare options for children in various regions of Guatemala.
Aspect: Forced or compulsory labour
G4 – HR6 Activities where a risk of forced and
compulsory labour exists, and actions taken
With regard to the production of our consumer goods, Section 1 of the SCoC explicitly
states that Tchibo will not tolerate forced or compulsory labour. All suppliers commit
to comply with this requirement when they sign a contract. If Tchibo becomes aware of
incidents of forced or compulsory labour at existing supplier factories, we work with the
management to initiate corrective measures and monitor their implementation with follow-up measures. If the corrective measures are not put into action, Tchibo will terminate
the business relationship. During the reporting period, there were three incidents where
forms of forced labour at producers were reported to Tchibo: in Thailand, Malaysia (withholding of employees’ passports) and China (compulsory overtime). We dealt with them
using the above-described process.
In the green coffee supply chains from which Tchibo buys its coffee, there are no known
cases of forced or compulsory labour.
Aspect: Rights of the indigenous population
G4 – HR8 Cases involving infringement of rights of
the indigenous population
We know of no such cases.
121
Human rights
Indicator
Links and Comments
Aspect: Screening of suppliers with regard to human rights
G4 – HR10 P
ercentage of new suppliers screened
according to human rights criteria
· Social Aspects of Productio
Aspect: Grievance mechanisms for violations of human rights
G4 – HR12 N
umber of grievances related to
human rights impacts that were filed,
addressed and resolved through formal
grievance mechanisms
See G4 – HR6
Social
Indicator
Links and Comments
Aspect: Anti-corruption measures
G4 – SO5 Confirmed cases of corruption and
actions taken in response
In the reporting period, no cases involving corruption were reported or disclosed.
Aspect: Anti-competitive conduct
G4 – SO7 Total number of legal actions for anticompetitive behaviour, anti-trust, and
monopoly practices and their outcomes
There were no ongoing legal actions during the reporting period.
Aspect: Compliance
G4 – SO8 M
onetary value of significant fines and
total number of non-monetary sanctions
for non-compliance with laws and
regulations
During the reporting period, no significant fines were imposed.
Aspect: Screening of suppliers with regard to social impacts
G4 – SO9 Percentage of new suppliers that were
screened using criteria for impacts on
society
· Indicators, see WE producers during the main selling period
Aspect: Complaints procedure with regard to social impacts
G4 – SO11 Number of grievances related to impacts
on society that were filed, addressed
and resolved through formal grievance
mechanisms
No grievances were filed.
122
Product responsibility
Indicator
Links and Comments
· Customers & products/ Strategy & Management
Aspect: Customer health and safety
G4 – PR1 I mpacts of the products on human health
and safety
· Quality & safety
· w ww.tchibo.com/qualitaet
Aspect: Labelling of products and services
G4 – PR5 Measurement of customer satisfaction
and results
· Customer dialogue
Aspect: Marketing
G4 – PR7 Non-compliance with regulations and
voluntary codes concerning marketing
and advertising communications
During the reporting period, there were no incidents of this type at Tchibo.
Aspect: Customer privacy
G4 – PR8 S
ubstantiated complaints regarding
breaches of customer privacy
During the reporting period, ten customer privacy-related complaints were made against
us. We investigated the causes and corrected the systems and processes in question.
However, we did not learn of any leakage, theft or other losses of data.
Aspect: Compliance
G4 – PR9 Monetary value of significant fines for
non-compliance with laws and regula
tions concerning the provision and use
of products
During the reporting period, no significant fines were imposed.
Supplementary indicators for the food processing industry
Indicator
Links and Comments
FP1 P
ercentage of purchasing volumes from suppliers in accordance with our Procurement
Guideline
· Sustainable development of the coffee sector
· Indicators, see Percentage of sustainable coffee
FP2 Percentage of the purchasing volumes that
verifiably complies with credible, interna
tionally accredited standards for sustainable
production, by norm
· Sustainable development of the coffee sector
· Indicators, see Percentage of sustainable coffee
FP3 P
ercentage of working time lost due to
industrial disputes, strikes and/or lock-outs,
by country
During the reporting period, there were no strikes at Tchibo.
FP4 Type, scope and effectiveness of all programmes and methods (in-kind donations,
volunteering, knowledge transfer, mentor
ships and product development) to promote
access to a healthier way of life, prevent
chronic diseases, promote access to healthy,
nutritious and affordable food, and increase
the prosperity of people in need
· Occupational health management
· Coffee value chain/ Strategy and management
FP5 P
ercentage of the production volume produced at sites certified by an independent
institution according to internationally accredited standards for food safety management
systems
· Quality & safety
123
Supplementary indicators for the food processing industry
Indicator
Links and Comments
FP6 P
ercentage of total revenues from consumer
goods with reduced content of saturated
fats, hydrogenated fats, sodium and added
sugar, by product category
In more than half of the 500 Tchibo Shops with Coffee Bar in Germany, we use low-fat milk
(1.5 percent) to prepare the coffee specialities at our Coffee Bars upon the customer’s
request.
FP7 Percentage of total revenues from consumer
goods with extra fibre, vitamins, minerals,
phytochemicals and functional nutritional
supplements
Tchibo had negligible sales of diet products, nutritional supplements and the like in 2014.
FP8 Guidelines and methods to provide consumers with information about ingredients
and nutritional value beyond the statutory
requirements
We comply with all statutory information obligations with regard to ingredients. Beyond
this, upon request our Shop staff will provide customers with information about the ingre
dients and nutritional details of the beverages and baked goods we serve.
FP9 Percentage and total number of livestock
bred and/or processed, by species and breed
Tchibo does not produce and sell any meat and/or fish products. Accordingly, this indicator is not relevant for us.
FP10 G
uidelines and methods regarding physical
changes and the use of anaesthetics, by
species and breed
See response to FP9
FP11 P
ercentage and total number of livestock
bred and/or processed, by species and
breed, by farming method
See response to FP9
FP12 G
uidelines and methods regarding treatment with antibiotics, anti-inflammatories
and hormones and/or growth-enhancing
measures, by species and breed
Apart from noting that the legal requirements have been met, we can make no statement
about the feed and/or veterinary medications used at our suppliers’ production plants.
FP13 Total number of the incidents of non-compliance with laws and regulations; Compliance
with voluntary codes regarding transport,
transhipment and slaughter of live terres
trial and aquatic species
See response to FP9
Supplementary Indicators for the textiles, apparel and footwear industry
Indicator
Links and Comments
AF1 C
ode of Conduct – Code of conduct content
and coverage.
The Tchibo Social and Environmental Code of Conduct (SCoC) is a binding part of the contract in any and every supplier relationship. Our business partners, their producers and
subcontractors are to have this Code on display in all relevant work departments, freely
accessible to and for the information of all employees.
AF2 A
udit Process – Parties and personnel engaged in code of conduct compliance function.
· Indicators, see Internal and external Audits
AF3 Audit Process – Compliance audit process.
Producers who aren’t integrated in our supplier training programme WE, are screened at
least every three years by means of a social and environmental audit. In cases of zero-tolerance violations, corrective action must be taken within four weeks. Other violations
must be eliminated within five months.
124
Indicator
Links and Comments
AF4 G
rievance Procedures – Policy and proce
dures for receiving, investigating, and responding to grievances and complaints.
If a violation remains undetected, the workers in the factories also have the option of
contacting Tchibo directly. They can send an anonymous email to blow the whistle on deficiencies or discrimination. There is the option of talking to the WE trainers or to confide
in an NGO. We are aware that this requires a lot of courage and prior knowledge – e.g.
about their rights or the communication paths – on the part of the employees to contact
Tchibo directly on these channels. In 2014, Tchibo received two external complaints about
producers in the consumer goods value chain (India, Turkey).
AF5 Capacity Building – Strategy and scope of efforts to strengthen capacity of management,
workers and other staff to improve in social
and environmental performance.
AF6 B
usiness Integration – Policies for supplier
selection, management, and termination.
AF7 C
ode of Conduct – Number and location of
workplaces covered by code of conduct.
· Indicators, see Producers
AF8 A
udit Process – Number of audits conducted
and percentage of workplaces audited.
· Indicators, see Social and environmental audits by type of audit
AF9 N
on-compliance findings – Incidents of
non-compliance with legal requirements or
collective bargaining agreements on wages.
Audits represent a snapshot and often only reveal visible violations. They therefore
provide an incomplete picture. The various types of violations are often interconnected
in terms of their substance, so we do not specify infringements by ‘type’. Instead, our WE
approach pursues a holistic, integrative improvement of social standards at the factories.
AF10 Non-compliance findings – Incidents of
non-compliance with overtime standards.
See response to AF9
AF11 N
non-compliance with standards on pregnancy and maternity rights.
See response to AF9
AF12 N
on-compliance findings – Incidents of the
use of child labour.
See response to AF9
AF13 Non-compliance findings – Incidents of
non-compliance with standards on gender
discrimination.
See response to AF9
AF14 N
non-compliance with code of conduct.
· Indicators, see Social and environmental audits by results
AF15 N
on-compliance findings – Analysis of data
from code compliance audits.
AF16 Remediation – Remediation practices to
address non-compliance findings.
AF17 B
usiness Integration – Actions to identify
and mitigate business practices that affect
code compliance.
AF19 M
aterials – Practices to source safer alter
native substances to those on the restricted
substances list, including description of
associated mgmt. systems.
· Consumer Goods value chain/ Ecological Aspects of Production
125
Indicator
Links and Comments
AF20 M
aterials – List of environmentally preferable materials used in apparel and footwear
products.
AF21 E
nergy – Amount of energy consumed and
percentage of the energy that is from renewable sources.
· Indicators, see “Electricity obtained from renewable sources”
AF22 Employment – Policy and practices regarding the use of employees with non-permanent and non-fulltime status.
AF23 E
mployment – Policy regarding the use of
home working.
The Tchibo Social and Environmental Code of Conduct (SCoC) makes no distinction between permanent, temporary and part-time employees.
The Tchibo SCoC makes no distinction between homeworkers and other workers. Homeworkers can be integrated into the WE Programme as needed, as is currently the case at a
supplier in Vietnam.
AF24 Employment – Policy on the use and selection of labour brokers, including adherence
to relevant ILO Conventions.
· UN Global Compact
AF25 W
ages and hours – Policy and practices on
wage deductions that are not mandated
by law.
Wage deductions are prohibited as per our SCoC. If and when we encounter them during
audits or as part of our WE Programme, we demand their remediation.
AF26 W
ages and hours – Policy on working hours,
including definition of overtime, and actions
to prevent excessive and forced overtime.
AF27 Diversity and Equal Opportunity – Policy
and actions to protect the pregnancy and
maternity rights of women workers.
AF28 E
mployment – Percentage of foreign
migrant workers as a portion of total workforce, broken down by region.
This information is not systematically collected to date. However, given the increasing refugee and migrant movements in several parts of the world, we are considering collecting
relevant data for our supply chain in future.
AF29 L
abour/Management Relations – Percentage of workplaces where there is one or
more independent trade union(s).
· Responsible business practices
AF30 L
abour/Management Relations – Percentage of workplaces where, in the absence of a
trade union, there are worker-management
committees, broken down by country.
The establishment of management-labour committees is an integral part of the WE Programme; a quantitative assessment is planned for 2016/2017.
AF31 Occupational Health and Safety – Initiatives
and programmes to respond to, reduce, and
prevent the occurrence of musculoskeletal
disorders.
Compared to other occupational health and safety issues such as silicosis or fire protection, risk analysis showed that musculoskeletal disorders are a relatively low priority issue
in the supply chain. We therefore have no programmes to address this issue.
We mainly address the issue of excessive overtime with our WE Programme, as audits
alone do not bring improvements. One WE workshop deals specifically with the points
of working hours, wages, productivity and overtime. In our SCoC the subject of working
hours is regulated in Section 7.
Section 4 in our Social and Environmental Code of Conduct (SCoC) draws attention to the
particular vulnerab
ility of pregnant employees.
This information is not systematically collected to date; a survey of the producers integrated in the WE Programme is planned for 2016.
126
Indicator
Links and Comments
AF32 D
iversity and Equal Opportunity – Actions
to address gender discrimination and to
provide opportunities for the advancement
of women workers.
AF33 C
ommunity Investment – Priorities in community investment strategy.
AF34 Community Investment – Amount of investment in worker communities broken down
by location.
Our community investment in the Consumer Goods value chain is concentrated on cotton
production. Tchibo has made educational infrastructure investments by supporting
educational projects in the African cotton-growing regions Benin and Zambia with a total
of €400,000.
We mainly address the issue of discrimination in our WE Programme and have one workshop that is dedicated exclusively to the topic. In our Social and Environmental Code of
Conduct (SCoC), the issue is regulated in Section 3.
127
Facts & Figures | UN Global Compact
UN Global Compact Communication on Progress
(CoP) 2014
Tchibo joined the United Nations Global Compact (UNGC) on 18 November 2009, and thus expressly commits to the ten
UNGC principles concerning human rights, labour standards, environmental protection and anti-corruption, and their
implementation in its business processes. We advocate a credible and sustainable corporate policy. Our CEO, Dr Markus
Conrad, confirms this stance in his foreword to Tchibo GmbH’s Sustainability Report 2014.
The United Nations Global Compact is an international strategic initiative that has united business, politics, workers’ organi
zations and civil society since its establishment in 2000. If companies commit to aligning their business activities and strategies to ten universally accepted principles in the areas of human rights, labour standards, environmental protection and
anti-corruption, the public sector can help to ensure that the development of markets and trade relationships, of technology
and finance benefits all economic regions and societies in the course of globalization.
The ten principles are based on:
··The Universal Declaration of Human Rights
··The International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work
··The Rio Declaration on Environment and Development
··The United Nations Convention on Corruption.
2012 marks the first time that Tchibo is reporting to meet the UNGC Advanced Level, meaning we now go beyond the
minimum requirements and provide information on how we comply with the best practices outlined in the 21 ‘GC Advanced’
criteria. The Communication on Progress is based on the Tchibo Sustainability Report 2014. The following table shows our
policies and systems, the measures we have taken, and the progress made.
128
Strategy, governance and engagement
Policies, systems and measures
Criterion 1
Mainstreaming into
corporate functions
and business units
Criterion 2
Value chain
implementation
··Key strategic objective: ‘Tchibo on its way towards a 100% sustainable
business’
··Integrated system of goals comprises key objectives and sub-goals for all
fields of action
··Corporate Responsibility department: Coordination with the departments,
review of targets/goals and annual reporting to the CEO and the full board
··Tchibo Social and Environmental Code of Conduct (SCoC) applies to all
consumer goods suppliers and partners
··Integrated risk management addresses company risks
··Sustainable development of the coffee sector through cooperation with all
internationally accredited standards organisations, partners and via our
own programmes (Tchibo Joint Forces!®)
··To guard against supply chain risks, social and environmental require
ments are integrated in the purchasing processes
··Qualification of consumer goods suppliers as part of our WE programme
(Worldwide Enhancement of Social Quality)
··Compliance with the SCoC in the Consumer Goods value chain is reviewed
as part of our supplier monitoring
Links
· Ambition & Strategy
· Management
· Progress 2014 & Goals 2015
· Coffee value chain/ Strategy &
Management
· Consumer Goods value chain/
Strategy & Management
Human rights
Principle 1: Support and respect internationally proclaimed human rights
Principle 2: Eliminate any participation in human rights abuses
Criterion 3
Robust commitments,
strategies or policies
in the area of human
rights
Criterion 4
Effective management systems to
integrate the human
rights principles
Criterion 5
Effective monitoring
and evaluation systems of human rights
integration
··Code of Conduct (CoC) for Tchibo employees and SCoC for consumer
goods suppliers and partners are based on the principles of the Interna
tional Labour Organisation (ILO)
··Regular Code of Conduct training for all Tchibo employees
··All suppliers receive the Code of Conduct as part of the contract
··Employees can report misconduct and breaches via the whistleblowing
hotline, works council, legal department, Group audit, other audits and
projects and programmes carried out by Tchibo and its partners
··Establishment and expansion of socially compatible coffee cultivation
through own programmes, continued and intensified collaboration with
all internationally accredited standards organisations, and involvement in
initiatives at regional and national level
··As part of our WE programme we support strategic producers in complying with fundamental human rights
··The observance of fundamental human rights by our producers is reviewed as part of our supplier monitoring
Links
··Management
··Sustainable development of the
coffee sector
··Education projects in the source
countries
··Sustainable Supply Chains
129
Labour
Principle 3: Uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4: Eliminate all forms of forced and compulsory labour
Principle 5: Eliminate child labour
Principle 6: Eliminate discrimination in respect of employment and occupation
Criterion 6
Robust commitments,
in the area of labour
Criterion 7
integrate the labour
principles
Criterion 8
Monitoring and evalu
ation mechanisms
for labour principles
integration
··Our Code of Conduct (CoC), based on the principles of the International
Labour Organisation (ILO), defines the values and mandatory behaviour
for the company as a whole as well as for each individual employee and
formulates our understanding of fairness, ethical business, culture of
diversity and equal opportunities
··Regular Code of Conduct training for all Tchibo employees
hotline, works council, legal department, group audit, other audits and
··No cases of discrimination during the reporting period
··We give our employees the opportunity to actively shape Tchibo’s devel
opment via the statutory codetermination bodies (works council and the
Supervisory Board)
··The social requirements are based on the core labour standards of the
International Labour Organisation (ILO) and the UN Universal Declaration
of Human Rights, and refer to the „Base Code“ of the Ethical Trading Initiative (ETI) and the SA8000 standard. The SCoC is mandatory for all our
suppliers and business partners
··As part of our WE programme, we support strategic producers in achieving
the observance of human rights and the lasting improvement of social and
environmental conditions at the production sites
··Compliance with social and environmental standards will be reviewed in
the course of our supplier-monitoring
··Together with other well-known brands, factories and retailers, and the
international trade union confederation IndustriALL Global Union, we are
involved in the ACT (Action, Collaboration, Transformation) Initiative for
industry-wide wage negotiations. The aim of this initiative is to introduce a
process whereby industry-wide collective bargaining between unions and
employer representatives are linked with high production standards and
responsible buying practices
Links
··Consumer Goods value chain/
··Sustainable Supply Chains
··Company culture & values
130
Environmental protection
Principle 7: Support a precautionary approach to environmental challenges
Principle 8: Undertake initiatives to promote greater environmental responsibility
Principle 9: Encourage the development and diffusion of environmentally friendly technologies
Criterion 9
Robust commitments,
in the area of environ
mental stewardship
Criterion 10
integrate the environ
mental principles
Criterion 11
Effective monitoring and evaluation
mechanisms for
environmental
stewardship
··Environmental experts, coordinated by the Directorate Corporate Respon
sibility, manage implementation in the departments
··Environmental guidelines were added in 2010 to our CoC
··We continuously reduce our CO2 emissions caused by transportation with
the “LOTOS” (“Logistics Towards Sustainability”) programme
··Supply of energy for all German Tchibo sites with ok-power certified electricity from renewable sources only
··At our roasting plants we have introduced an energy management system
in accordance with ISO 50001
··As part of our company-wide fleet strategy, we set annually reduced CO2
emission limits for newly purchased vehicles
··Our Packaging Strategy, developed in early 2015, sums up measures to
reduce packaging-related paper and cardboard consumption
··Grievances in connection with environmental protection can be reported
via the whistleblowing hotline, works council, legal department, group
audit, other audits and projects and programmes carried out by Tchibo
and its partners
··In cooperation with initiatives such as Coffee & Climate we help farmers to
adapt to the repercussions of climate change
··The Tchibo Social and Environmental Code of Conduct (SCoC) defines
mandatory environmental requirements that apply to the production of
our entire consumer goods assortment
··Since 2014 targeted audits of factories are conducted to ensure compliance with standards
··As part of our WE programme, we support producers in reducing CO2
emissions
··In 2014 we signed the ambitious Detox Commitment with the aim to exclude hazardous chemicals from the textile supply chain by 2020
Links
··Environment & Climate
··Environmental Aspects Of
Production
··Environmental protection in
our operations/ Strategy &
Management
··Climate Protection
··Resource Efficiency
Anti-corruption
Principle 10: Work against corruption in all its forms, including extortion and bribery.
Criterion 12
Robust commitments,
in the area of anticorruption
Criterion 13
integrate the anticorruption principle
Criterion 14
Effective monitoring
and evaluation systems for the integration of anti-corruption
··CoC includes a clear prohibition of corruption and granting or accepting
Links
advantages
··The Tchibo Compliance Programme is comprised of various policies that
regulate cross-sector and cross-company processes via procedural and
organisational instructions
··Our managers are regularly trained in the application of our Code of Conduct and are obliged to explain the Code of Conduct to their employees
··Anti-corruption training is continuously conducted for employees in
relevant departments, such as Procurement and Sales
··As part of risk assessment by maxingvest ag’s group auditing department,
all business units are continually reviewed for risk of corruption
··Any reports are forwarded to the Ombudsmen Council under strict
confidentiality
··In 2014 no incidents were reported or uncovered in connection with
corruption
131
Broader UN goals and issues
Criterion 15
Core business contri
butions to UN goals
and issues
Criterion 16
Strategic social
investments and
philanthropy
Criterion 17
Advocacy and public
policy engagement
Criterion 18
Partnerships and
collective action
··Tchibo joined the UN Global Compact on November 18th 2009
··To promote sustainable, yield-increasing farming practices we work with
coffee farmers and standards organisations
··Tchibo promotes educational projects to help ensure better living condi
tions for coffee farmers and their families
··We have increased the share of validated and certified green coffee processed by us to around 35 % in 2014
··We approach cross-sector collaboration with relevant stakeholders to
address and solve structural challenges
··Gradual transition to responsibly-sourced resources and materials for our
consumer goods
··We work with the Aid by Trade Foundation to promote sustainable cotton
farming in sub-Saharan Africa and we support the children of African
cotton farmers with educational and career-oriented projects
Links
··Ambition & Strategy
··Management
··Coffee value chain/Strategy &
Management
··Coffee value chain/Education
projects in the source countries
··Sustainable products and
resources
Education projects in the source
countries
Corporate sustainability governance and leadership
Criterion 19
CEO commitment and
leadership
Criterion 20
Board adoption and
supervision
Criterion 21
Stakeholder
engagement
··Confirmation of the commitment to sustainable business conduct and
to the UN Global Compact by Dr Markus Conrad in the foreword to the
Sustainability Report 2014
··Key strategic objective: ‘Tchibo on its way towards a 100% sustainable
business’
··Integrated system of goals comprises key objectives and sub-goals for all
fields of action
··The management of Tchibo GmbH regularly and promptly informs the
Supervisory Board of all matters relevant to the development of the company, its value, and its risk situation
··The company’s strategic direction is coordinated with the Supervisory
Board
··The Directorate of Corporate Responsibility coordinates company-wide
and department-specific stakeholder management
··To cope with structural challenges in our value chains, we cooperate with
partners in the public and private sectors, in science and academe, and in
civil society
Links
··Statement Dr Markus Conrad
··Management
··Company culture & values
Facts & Figures | German Sustainability Code
Declaration of Conformance with the German
Sustainability Code
The German Sustainability Code (DNK) was ratified in 2011 by the German government’s Council for Sustainable Devel
opment (RNE). The aim of the DNK is to ensure that the sustainability efforts of various companies are rendered more
reliably transparent and comparable. Companies can draw up a Declaration of Conformance, which is published in the DNK
database.
Tchibo supports the German Sustainability Code and has drawn up a Declaration of Conformance to this effect. Click here to
view Tchibo GmbH’s Declaration of Conformance with the German Sustainability Code.
132
Facts & Figures | Commitments & Cooperations
Commitments & Cooperations
Jointly facilitating social, ecological and economic progress
Sustainable development on a global scale requires the collective action of many protagonists along the supply chains and
beyond. We want to make a significant contribution here. We document our willingness to take responsibility in ambitious
voluntary commitments. We also get involved in initiatives that support us on the path to becoming a 100% sustainable
business, and collaborate on specific projects with partners from business, politics, science and civil society. (G4 – 26)
Voluntary commitments
Logo
Bündnis für
nachhaltige Textilien
Organisation and purpose
Year of signing
Accord on Fire and Building Safety in Bangladesh
The aim of the Accord is to ensure higher safety standards for employees in the country’s textile factories in cooperation with workers’
representatives, NGOs and other stakeholders.
2012
Voluntary commitment
Member of the Advisory
Board
Alliance for Sustainable Textiles
Umbrella organisations of trade and industry as well as leading companies in the textile industry are working together with the German
federal government and representatives of civil society to draft a joint
action plan to promote the implementation of environmental and social
standards at all stages of the textile supply chain.
2015
Member
United Nations Global Compact (UNGC)
The UNGC works with businesses worldwide to create a sustainable
and integrated global economy that provides all peoples, communities
and markets with lasting benefits. For this purpose, the UNGC has
formulated ten universal principles on human rights, labour standards,
environmental protection and the fight against corruption. Its aim is to
anchor them in business conduct worldwide and to support the United
Nations’ broader goals.
2009
Member
Tchibo is committed to
the ten principles of the
UNGC and has published Communications on
Progress since it joined.
From 2012 onwards, the
annual Communication on
Progress has been carried
out in accordance with
the more demanding “GC
Advanced” criteria.
DETOX
The environmental organisation Greenpeace launched its DETOX
campaign in 2011 to draw attention to the use of hazardous chemicals
in textile production. The aim of the DETOX commitment is to prevent
their use in all textile production processes by 2020.
2014
Fur Free Retailer Program
The Fur Free Retailer Program is an international initiative with the aim
of informing consumers about retailers’ fur policies. The programme
seeks to raise awareness of ethical consumption. It lists retailers who
have pledged not to include any fur products in their ranges.
2013
Member
Tchibo has been a fur-free
retailer since 2006 and by
signing the Fur Free Policy
has committed to not
carry any fur in its product
ranges in future.
133
Memberships and cooperation partners
Logo
CPI₂
Carbon
Performance
Improvement
Initiative
Year of signing
Außenhandelsvereinigung des Deutschen Einzelhandels e.V.
(Foreign Trade Association of German Retail Trade - AVE)/
Foreign Trade Association (FTA)
The AVE represents the interests of direct-import retailers in Germany
and Europe in particular. The FTA is the corresponding European
umbrella organisation.
2009
Member
berufundfamilie gGmbH
The initiative of the charitable Hertie Foundation is committed to
family-friendly company personnel policies.
2010
Certified
Better Cotton Initiative
The Better Cotton Initiative is a multi-stakeholder organisation where
NGOs such as WWF work together with textile suppliers and cotton
producers.
The Better Cotton Initiative works on a broad basis and worldwide on
the transformation of cotton-farming methods from conventional to
sustainable.
2012
Member
Bundesverband E-Commerce und Versandhandel Deutschland e.V.
(German E-Commerce and Distance Selling Trade Association - bevh)
The trade association represents the interests of its members (online
and mail order companies) vis-à-vis legal and institutional bodies.
It also provides updates on the latest developments and trends and
promotes a mutual exchange of experience.
1971
Member
Tchibo is active in the
Sustainability working
group.
Biodiversity in Good Company
The initiative is an alliance of companies that jointly advocate the protection of biodiversity – in the interests of business and society.
2012
Member
Bündnis für Verbraucherbildung (Alliance for Consumer Education)
The Alliance is a coalition of stakeholders from civil society, business,
politics and science initiated and managed by the German Foundation
for Consumer Protection (DSV). It was founded to jointly promote
consumer and life skills in children, adolescents and adults.
2013
Member
Tchibo is a member of the
Alliance’s council and supports its school projects to
build consumer awareness.
Bundesdeutscher Arbeitskreis für Umweltbewusstes Management
e.V. (B.A.U.M.)
The non-partisan environmental initiative aims to sensitise companies,
institutions, politicians and the public to the problems and opportu
nities of environmental protection, and issues in sustainable devel
opment.
2008
Member
Carbon Performance Improvement Initiative (CPI2)
The initiative, supported by the German Federal Environment Agency
(UBA) and German Investment and Development Company (DEG), is
committed to building a global environmental protection network of
manufacturers and brand companies. The aim is to cut several million
tonnes of CO2 emissions per year.
2011
Member
Tchibo is a founding
member and active in the
initiative’s advisory council.
Coffee & Climate
The development partnership founded by international coffee companies, a green coffee trader and The German Society for International
Cooperation (GIZ) is concerned with the adaptation of coffee culti
vation to changing climatic conditions. It provides local protagonists
with tools and knowledge to identify the risks that climate change
poses to coffee cultivation and help to communicate suitable adaptation methods.
2010
Member
Tchibo is a founding member and sits on the Steering
Committee.
134
Logo
Year of signing
Cotton made in Africa” (CmiA) of the Aid by Trade Foundation
The Aid by Trade Foundation works with various partners from business, government, science and civil society to contribute to the allevi
ation of poverty and environmental protection in developing countries,
especially in Africa. The Foundation’s CmiA initiative aims to promote
an environmentally and socially more responsible and economically
sustainable cultivation of cotton in Africa – and thereby improve the
living conditions of smallholder farmers and their families.
2007
Partner
Tchibo is a partner and
council member. We
support CmiA as a buyer
of CmiA cotton and as a
partner in educational
projects.
German Society for International Cooperation (GIZ)
In addition to supporting the German federal government in achieving
its sustainable development goals in international cooperation, the GIZ
is also active in international education work.
2008
Partner
Collaboration on various
projects, e.g. the WE
(Worldwide Enhancement
of Social Quality) [supplier]
qualification programme.
Deutsche Kaffeeverband e.V. (German Coffee Association)
The Deutsche Kaffeeverband e.V. is the German coffee industry’s general lobby. It facilitates networking and an exchange of ideas among
German coffee industry experts.
1951
Member
Ethical Trading Initiative (ETI)
The Ethical Trading Initiative (ETI) is a leading alliance of companies,
trade unions and NGOs that promotes respect for workers’ rights
around the globe.
2010
Member
Tchibo is involved in working groups, for example,
fire protection and building
safety in Bangladesh, as
well as freedom of associ
ation (unionisation).
Fairtrade
Fairtrade standards ensure the payment of minimum prices and empower coffee farmers to sustainably improve their living and working
conditions. The independent Fairtrade label gives consumers the
assurance that the labelled products meet international standards for
fair trade.
2008
Licence holder
Fairtrade Product Advisory
Council on Coffee.
Forest Stewardship Council® (FSC®)
The non-profit organisation issues an accredited label for wood and
paper products sourced from responsible forestry. Independent insti
tutes check every company along the supply chain for compliance with
the strict FSC® standards.
2010
Member
Tchibo is a member both
of FSC® Germany and FSC®
International.
By selling FSC®-certified
products, Tchibo strengthens the demand for wood
and paper from forests
responsibly managed according to strict guidelines.
Global Forest and Trade Network (GFTN)
Launched by the conservation organisation World Wide Fund For
Nature (WWF) the network is committed to preserving forests as important habitats and for storing the greenhouse gas CO2.
2011
Member
135
Logo
Year of signing
Global Organic Textile Standard (GOTS)
The Global Organic Textile Standard ensures the sustainable manufacture of textiles, ranging from the extraction of organically grown natural resources to environmentally and socially responsible manufac
turing and transparent labelling.
2014
Certified
Tchibo has obtained GOTS
certification across the
entire supply chain. This
means Tchibo can sell
GOTS-certified products in
Germany.
Handelsverband Deutschland (HDE e. V.)
The HDE is the umbrella organisation that represents the concerns and
interests of the entire German retail sector in all locations and for all
sizes of company.
1974
Member
Tchibo is an active member
of the Legal, Environ
mental, Energy and Non
Food Committees.
Initiative nachhaltiger Handel (IDH):
Sustainable Coffee Program
The Sustainable Coffee Program (SCP) was born of the Dutch government’s IHD trading initiative. Several regional and international coffee
roasters have joined forces in this programme to address structural
challenges together. The main objective is to increase the yields and
export volumes of sustainably produced coffee.
2012
Member
Tchibo is a founding member and a member of the
Steering Committee.
Institut für Markt-Umwelt-Gesellschaft (imug)
Imug is a spin-off from the University of Hannover, which specialises in
sustainability and consumer interest studies and company ratings.
2007
Partner
Imug reviews selected
Tchibo offers for consumer
protection aspects prior to
their introduction, e.g. its
green energy offer.
IndustriALL Global Union
The IndustriALL Global Union is an international umbrella union that
represents 50 million workers, including those from the garment
industry. The focus of the ACT (Action, Collaboration, Transformation)
initiative is on ensuring living wages and the right to form trade unions
and conduct collective bargaining.
2014
Partner
We are currently working
with the umbrella interna
tional textile trade union
IndustriALL Global Union
and European textile traders to develop a process
to jointly assert improve
ments for workers in the
garment industry worldwide. These include living
wages and the right to form
trade unions and conduct
collective bargaining.
International Coffee Partners (ICP)
The industry initiative aims to lastingly improve the living conditions of
smallholder farmers based on sustainable farming practices according
to the principle of “helping people help themselves”.
2001
Member
Steering Committee.
136
Logo
Year of signing
Initiative Pro Recyclingpapier (IPR)
The initiative of companies in various sectors aims to further promote
acceptance of the use of recycled paper with the Blue Angel label, and
to lead by example.
2008
Member
Institute for Scientific Information on Coffee (ISIC)
The ISIC is a non-profit organisation founded in 1990 with the aim of
scientifically researching the topic of coffee enjoyment and health and
disseminating its findings.
1998
Member
Rainforest Alliance
The Rainforest Alliance is an internationally recognised, independent
environmental organisation that campaigns for the protection of
sensitive ecosystems and promotes sustainable land management. The
Rainforest Alliance seal stands for ecologically sound agriculture and
socially responsible corporate behaviour, for example, the conser
vation of resources and the creation of educational opportunities for
coffee farmers.
2006
Licence holder
ShortSeaShipping Inland Waterway Promotion Center (SPC)
The ShortSeaShipping Inland Waterway Promotion Center (SPC) is a public-private partnership (PPP) between the German Federal Ministry of
Transport and Digital Infrastructure, numerous German federal state ministries, and shipping companies. The SPC advises logistics companies
and provides educational and information campaigns about the benefits
of an intermodal network between modes of transport.
2015
Member
Social Accountability International (SAI)
Social Accountability International (SAI) works to promote labour rights
and social standards all over the world. The Social Management and
Certification System developed by SAI, with its internationally applicable
social standard SA8000 and its Training and Verification Programme (Corporate Involvement Programme - CIP), is designed to help
companies in developing and industrialised countries implement social
standards on a long-lasting basis.
2006
Member of the Advisory
Council
Sustainable Agriculture Initiative (SAI) Platform
The Sustainable Agriculture Initiative (SAI) platform is a food industry
initiative with about 40 member companies. It aims to promote the
worldwide development of – and dialogue about – sustainable agriculture.
2005
Member
Textile Exchange
The non-profit organisation Textile Exchange promotes the global
cultivation of organic cotton and demand for it worldwide. To do this,
among other things, it publishes the OCS 100 and OCS Blended standards, which are used to verify the share of organic cotton in textiles.
2008
Member
By selling products that
correspond to the OCS 100
or OCS Blended standards,
Tchibo strengthens the
demand for organic cotton.
UTZ Certified
UTZ Certified is a programme and label for the sustainable culti
vation of coffee, cocoa and tea. UTZ Certified trains coffee farmers in
business administration, socially acceptable working conditions, and
environmental management. For example, it provides instruction in
better farming methods to help them work more successfully while
also protecting the environment.
2011
Licence holder
UTZ Certified Product
Advisory Council Coffee.
4C Association
In the 4C Association producers, traders, roasters and civil society
around the world work together towards one goal – improved sustain
ability throughout the coffee sector. The 4C baseline standard helps
coffee farmers become organised and builds their awareness of
sustainable coffee farming.
2004
Member
council.
137
Facts & Figures | Awards
Awards
Recognition for our efforts
Awards and rankings confirm that we are making further progress on the path to becoming a 100% sustainable business. At the same time, we see them as an incentive to continue working on achieving our sustainability goals.
Awards
Organisation
Award
Description
Year
Verbraucher Initiative e. V.
Gold and silver ‘Sustainable Retail Company’ 2015
medals
In 2015 the Verbraucher Initiative e. V. recognised Tchibo
as a sustainable retailer: Tchibo won a ‘gold’ award in the
textiles and footwear category, and ‘silver’ in food as a
sustainable retail company for its commitment to sustain
ability.
2015
Most Trusted Brand
In the 2015 annual Reader’s Digest magazine study Tchibo
was once again named the Most Trusted Brand with regard
to its commitment to sustainability.
2015
Deutsche Umwelthilfe e. V.
Green Card for Climate
Commitment
In 2015, the German environmental organisation Deutsche
Umwelthilfe e.V. awarded Tchibo its fourth consecutive
‘Green Card for credible climate awareness’ for its resolute
fleet policy to reduce greenhouse gases.
2015
(since
2012)
B.A.U.M. e. V.
Environmental Award
The B.A.U.M. (Bundesdeutscher Arbeitskreis für Umweltbe
wusstes Management e. V.) ‘Environmental Award’ honours
dedicated individuals. Achim Lohrie, Director Corporate
Responsibility, Tchibo GmbH, received the 2014 B.A.U.M.
‘Environmental Award’ in the Large Companies category. In
its citation, the jury said: “Achim Lohrie has decisively helped
to anchor environmental protection and social responsibility
as key elements in Tchibo’s business strategy.”
2014
Verbraucher Initiative e. V.
Gold medal for sustain
ability communications in
retail
In 2013 the Verbraucher Initiative e. V. awarded Tchibo a
Gold medal for its credible, comprehensive, consumer-friendly and comprehensible sustainability communications.
2013
European Commission
European CSR Award
In 2013 the European Commission honoured Tchibo at the
first presentation of its European CSR Awards. This award
combines national CSR awards and highlights the European
dimension of corporate responsibility.
2013
Nachhaltiges
Einzelhandelsunternehmen
Gold
2015
www.nachhaltig-einkaufen.de
Nachhaltiges
Einzelhandelsunternehmen
Silber
2015
www.nachhaltig-einkaufen.de
Reader’s Digest
138
Organisation
Award
Description
Year
German federal government
CSR Award
In 2013 the German federal government awarded its first
CSR Award under the patronage of Federal Labour Minister
Ursula von der Leyen. Among the participating companies
Tchibo came first in the category of companies with more
than 5,000 employees, for the fact that “it already fully
aligns its business towards sustainability and social respon
sibility, and in doing so takes the entire value chain into
consideration.”
2013
German Logistics
Association (BVL)
Logistics Sustainability
Award
Tchibo’s commitment to sustainability and climate protection across the value chain - from resource use to the
production of the products and disposal - was awarded with
the Sustainability Award for Logistics 2013 by the German
Logistics Association (BVL), and its Austrian counterpart.
2013
German Business Ethics
Network (DNWE)
Prize for Corporate Ethics
Every two years, the German Business Ethics Network
(DNWE) awards the Business Ethics Award to exemplary
initiatives. In 2012, Tchibo won the award for its efforts
on the path towards becoming a sustainable business,
especially in the area of consumer goods. The award was
primarily for our ‘WE’ program, an innovative approach
to asserting socially responsible production in developing
countries.
2012
Finalist in the ‘Family as a
Success Factor’ company
competition
The ‘Erfolgsfaktor Familie 2012’ (‘Family as a Success Factor 2012’) company competition, which is sponsored by the
Federal Ministry of Family Affairs, Senior Citizens, Women
and Youth (BMFSFJ), is awarded to the most family-friendly
companies in Germany. Tchibo reached the final with its
pilot project for individual working hours at the logistics
site in Gallin.
2012
Deutsches Netzwerk Wirtschaftsethik (DNWE)
Federal Ministry for Family
Affairs, Senior Citizens, Women and Youth (BMFSFJ)
Rankings
Organisation
Award
Description
Year
Serviceplan
Sustainability Image Score
In the Serviceplan agency’s 2015 ‘Sustainability Image Score’
(SIS) ranking, Tchibo came 13th out of 104 companies surveyed, up three places compared to 2014 and 16 compared to
2013. The ranking is based on an online survey of about 8,500
consumers.
2015
Textile Exchange
Organic Cotton Market
Report
According to the non-profit organisation Textile Exchange’s
2015 ‘Organic Cotton Market Report’, Tchibo is the third-largest vendor of organic cotton worldwide. Tchibo is the world’s
fourth fastest in the ‘Race to the Top’ in the transition from
conventional to organic cotton. Since 2008, the company has
regularly offered textiles made from/with certified organic cotton. The goal is to obtain 100% of its cotton from sustainable
sources.
2015
Wirtschaftswoche
Top employer
In WirtschaftsWoche magazine’s 2014 ranking of ‘Top Employers’, Tchibo was once again voted among the top 40 employers by the target group of under-40s. Its engaged recruiting
efforts contributed significantly to the positive perception of
the magazine’s readers.
2014
World Wide Fund for
Nature (WWF)
Wood & Paper company
survey
Since 2003, WWF has regularly surveyed large companies
regarding the source of their wood products. In, 2012 Tchibo
won second place in the ‘Mail order retailers’ category for its
use of certified wood and paper products.
2012
139
Facts & Figures | Independent Assurance Report
External audit by auditing firm
Tchibo GmbH | Hamburg | Engagement: 0.0746819.001
Tchibo GmbH Sustainability Report, Hamburg, fiscal year 01. January – 31. December 2014
To Tchibo GmbH, Hamburg
We have been engaged to perform a limited assurance engagement on the description of the necessary materiality analysis
and selected sustainability information of the Sustainability Report 2014 of Tchibo GmbH, Hamburg (hereinafter: the Company), for the business year from 1 January to 31 December 2014.1 The sustainability information, which was selected by the
Company and reviewed by us, is marked with the symbol
in the Sustainability Report 2014.
Management’s Responsibility
The Company’s Board of Managing Directors is responsible for the accurate preparation of the Sustainability Report in accordance with the criteria stated in the Sustainability Reporting Guidelines Vol. 4 of the Global Reporting Initiative (GRI). This
responsibility includes the selection and application of appropriate methods to prepare the Sustainability Report and the use
of assumptions and estimates for individual sustainability disclosures which are reasonable in the circumstances. Furthermore,
the responsibility includes designing, implementing and maintaining systems and processes relevant for the preparation of the
report.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants (IESBA-Codex), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality
control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Practitioner’s Responsibility
Our responsibility is to express a conclusion based on our work performed as to whether anything has come to our attention that causes us to believe that:
··the description of the materiality analysis marked with the symbol
as required for a sustainability report to de-
termine its content and the boundaries of its aspects is not in accordance with the criteria ‘Stakeholder Inclusiveness“, ‘Sustainability Context“, ‘Materiality” and ‘Completeness“ of the GRI’s Sustainability Reporting Guidelines
Vol. 4 and that they have not been used during the Sustainability Report’s preparation
··the management approaches marked with the symbol
in the Sustainability Report are not in accordance with
the requirements of the standard disclosures G4-DMA of the Sustainability Reporting Guidelines Vol. 4 or that
··the quantitative information marked with the symbol
in the Company’s Sustainability Report for the business
year 2014 is in material aspects not in accordance with the criteria “Completeness“, “Comparability“, “Accuracy”,
“Clarity”, “Timeliness” and “Reliability” of the GRI’s Sustainability Reporting Guidelines Vol. 4.
It was not part of our engagement to review any additional information outside the scope of the given information or statements, as well as references to external information sources, expert opinions and future-related statements in the Sustainability Report. We also have been engaged to make recommendations for the further development of the sustainability
management and the sustainability reporting based on the results of our assurance engagement.
We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000. This Standard requires that we comply with ethical requirements and plan and perform the assurance engagement, under consideration of materiality, in order to provide our conclusion with limited assurance.
1
Our assurance engagement applies to the German online version of the Sustainability Report.
140
In a limited assurance engagement the evidence-gathering procedures are more limited than for a reasonable assurance
engagement and therefore less assurance is obtained than in a reasonable assurance engagement.
The procedures selected depend on the practitioner’s judgment.
Within the scope of our work, we performed amongst others the following procedures concerning the above-mentioned
materiality analysis, management approaches and key data:
··Inspection of documents and standards related to the sustainability strategy and management as well as understanding the company’s organizational structure;
··Inquiring personnel regarding relevant processes and the underlying internal control system;
··Recording of the processes and inspection of the documentation of systems and processes regarding the collection of sustainability data as well as their validation on a sample basis;
··Analytical procedures on relevant data;
··Inspection of internal documents, contracts, and invoices from external service providers.
Conclusion
Based on our limited assurance engagement, nothing has come to our attention that causes us to believe that:
··the description of the materiality analysis marked with the symbol
as required for a sustainability report to
determine its content and the boundaries of its aspects is not in accordance with the criteria ‘Stakeholder Inclusiveness“, ‘Sustainability Context“, ‘Materiality” and ‘Completeness“ of the GRI’s G4 Sustainability Reporting
Guidelines and that they were not used during the Sustainability Report’s preparation,
··the management approaches marked with the symbol
the Sustainability Report are not in accordance with the
requirements of the standard disclosures G4-DMA of the Sustainability Reporting Guidelines or that
··the quantitative information marked with the symbol
in the Company’s Sustainability Report for the business
year 2014 is in material aspects not in accordance with the criteria
··“Completeness“, “Comparability“, “Accuracy”, “Clarity”, “Timeliness” and “Reliability” of the GRI’s G4 Sustainability Reporting Guidelines.
Emphasis of Matter – Recommendations
Without qualifying our conclusion above, we make the following recommendations for the further development of the Company’s sustainability management and sustainability reporting:
··Continuing recording and integration of material business and stakeholder topics, in consideration of the further
development of the business strategy
··More concise presentation of the material management approaches in the report
··Further standardization and formalization of data collection processes and controls.
Hamburg, October 13, 2015
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Hendrik Fink ppa. Anne Pattberg
German Public Auditor 141
Sustainability report 2014 | About Tchibo
About Tchibo
Founded in 1949 by Max Herz, Tchibo has been synonymous with freshness and quality in the coffee market for more
than 65 years. From what was originally a coffee mail-order service, an international company has developed that
is now active in many more lines of business than just traditional coffee sales. Over the years, we have resolutely
expanded our range and our distribution paths, and ensure diversity and quality worldwide with our well-established
brands.
Tchibo is the roasted coffee market leader in Germany, Austria, Poland, Czech Republic and Hungary. The company combines its coffee expertise with a range of innovative consumer goods and services. In selling our products, we use a sophis
ticated multichannel distribution system with our own branded shops, a nationwide presence in retail, and a strong online
business. In 2014, we generated revenues of € 3.4 billion in our markets with around 12,500 employees.
Markets
Our core sales markets are Germany, Austria and Switzerland. The markets in East and Southeast Europe are an important
growth driver. Tchibo has operated its own Shops in Hungary, Czech Republic and Slovakia since 1991. This was followed by
its entry into the Polish market in 1992 and the Russian market in 1994. In 2001, Tchibo opened a sales office in Romania.
Tchibo has also been expanding its footprint in the Turkish market since 2006.
Lines of business
Since its very beginnings, Tchibo has represented the highest in coffee quality and unparalleled coffee enjoyment. Customers have always associated the brand with extraordinary coffee expertise and give us their trust.
Our range structure has evolved considerably over the years. As long ago as the early 1970s, Tchibo began expanding its
offer, first by adding a few select consumer goods items. Today, we present a total of approx. 3,000 products to our customers in weekly-changing ranges under the heading ‘Find it only at Tchibo’. Since 2014, some 300 of our most popular items
are permanently available in the ‘Favourites’ section of our online shop. Beyond this, we serve select coffee specialties and
snacks to our customers in more than 500 of our approx. 700 Tchibo Shops all over Germany.
Over the years, we’ve also made a name for ourselves as a vendor and agency for travel, services and mobile communica
tions. All three have become an integral part of our business model.
142
Sustainability report 2014 | Contact & Imprint
Contact
Do you have questions or suggestions in connection with corporate responsibility at Tchibo? Our contacts always
welcome your comments. You can reach us by email, regular mail or phone. We look forward to hearing from you!
For questions, suggestions or complaints about products, orders or returns, please send an email directly to our
customer service department.
Achim Lohrie
Monika Focks
Director Corporate Responsibility
Category Leader CR
Tchibo GmbH
Tchibo GmbH
Corporate Responsibility (CR) Überseering 18
Corporate Responsibility (CR) Überseering 18
D-22297 Hamburg
D-22297 Hamburg
Tel. +49 (0)40 63874839
Tel. +49 (0)40 63873566
Fax +49 (0)40 63874445
Fax +49 (0)40 638753566
E-Mail [email protected]
E-Mail [email protected]
V-Card Download
V-Card Download
Imprint
Responsible publisher Telephone
Tchibo GmbH
+49 (0)40 63870
Corporate Responsibility (CR)
Überseering 18
E-Mail
22297 Hamburg
[email protected]
Commercial register
VAT number
Amtsgericht Hamburg HRB 43618
811164447
Executive Board
Chairman of the Supervisory Board
Dr. Markus Conrad (Vorsitzender), Holger Bellmann,
Michael Herz
Senay Kücük Tansu, Yves Müller, Ines von Jagemann,
Carsten Wehrmann
Director Corporate Responsibility
Category Leader CR Corporate Communication &
Achim Lohrie
Stakeholder Reporting
Monika Focks
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