Tchibo Sustainability Report 2012 - tchibo

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Tchibo Sustainability Report 2012
About this report
The Tchibo Sustainability Report 2012 informs stakeholders and the interested public comprehensively and transparently about the activities, progress made and targets which Tchibo GmbH is pursuing with respect to the economic, environmental and social aspects of its corporate management.
Data base
Data base is the fiscal year 2012 (1 January to 31 December 2012). It also includes supplemental information on major
activities that took place before and after the reporting period, up until the copy deadline in July 2013. All the information in
this report refers to the sustainability-relevant business activities of Tchibo GmbH, its subsidiaries and sites in Germany. Our
international subsidiaries are covered wherever they rely on centralised processes.
Structure of the report
The report covers the following fields of action: sustainability management; the coffee value chain; the consumer goods value
chain; customers and products; environmental protection at our sites and during transport; and what we do for our employees. Because our efforts in the source countries are directly related to our core business, the topic has been integrated into
the chapters on value chains. Each chapter contains information on our strategic approach, priorities, measures, and future
challenges as well as an update on our goal attainment.
Standards of the report
Tchibo’s Sustainability Report 2012 is written in accordance with the internationally recognised Global
Reporting Initiative (GRI) guidelines. It also takes into account the additional protocol for the food industry
and, for the first time, the new, pilot version of additional industry-specific key indicators for the apparel
and footwear industry. The GRI reviewed our report in August 2013 and confirmed that it meets the highest
application level, A+.
This sustainability report also contains the Advanced Level Communication on Progress to the UN Global Compact, which we
joined in 2009 and to whose ten principles we have been committed ever since.
Audit
The Tchibo Sustainability Report 2012 has been subjected to an independent audit investigation conducted in accordance
with the Accountability Principles AA1000 and taking into consideration selected quantitative information on sustainability for
the 2012 financial year.
Note from the editors
The Tchibo Sustainability Report 2012 is a web report. The complete report is available from www.tchibo-sustainability.com
in both German and English. This printed version has been created on the basis of the online content.
An update on the key measures, results, and indicators for the year 2013 will be published in the second half of 2014.
Hamburg, in October 2013
Tchibo Sustainability Report
Tchibo
2012 Sustainability
| Sustainability management
Report 2012
Content
► CEO
Statement
4
► Sustainability management
6
Strategic approach
7
Fields of action
9
Mainstreaming and organisation
12
Stakeholdermanagement14
Milestones20
Responsible business conduct
25
Compliance
26
Privacy / Data protection
28
Risk management
29
National subsidiaries
30
Eastern Europe
34
Austria / Switzerland
38
► Coffee supply chain
Strategic approach
Sustainable development of the coffee sector
Sourcing sustainable raw coffee grades
Promoting sustainable trade:
initiatives & co-operations
Environment and climate
Biodiversity Educational projects in the source countries
Future challenges
Goals for 2012/2013
41
42
44
46
49
51
52
53
56
58
► Consumer goods supply chain
62
Strategic approach
63
Integrated supplier management
64
Supplier qualification
67
Risk management70
Production 72
Sustainable resources
75
Biodiversity 78
Integrated range management: UmweltPlus
79
Educational projects in the source countries
82
Future challenges
84
Goals for 2012/2013
86
► Customers and products
90
Strategic approach
91
Customer focus
93
Service mentality 93
Cross Channel Services 95
Customer concerns and complaints management 96
Quality and safety
99
Sustainable ranges Consumer-oriented communication
Future challenges
Goals for 2012/2013
101
103
106
107
► Environmental
protection at sites
and during transportr
109
Strategic approach
110
Climate protection 111
Transport and shipping 112
Energy consumption 116
Mobility118
Local actions119
Resource conservation
120
Water 121
Paper 122
Packaging and waste 123
Future challenges
124
Goals for 2012/2013
125
► Services for employees
127
Strategic approach 128
Corporate culture and values
129
Diversity and equal opportunity131
Training and development
136
Work-life balance
138
Health management and occupational safety 141
Compensation and voluntary employee benefits 143
Future challenges
144
Goals for 2012/2013
146
► Facts & Figures
About this report
KPIs (Indicators)
GRI-Index UN Global Compact German Sustainability Code Memberships and co-operations Prizes and awards Certificates ► About
Tchibo
► Executive
► Contact
Summary
us
► Downloads
► Glossary
► Imprint
148
148
150
163
184
193
193
200
201
202
206
208
209
210
220
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Tchibo Sustainability Report 2012 | Sustainability management
► CEO Statement
Preface Dr Markus Conrad
Dear readers,
Our focus on long-term success and the concept of the ‘honourable
merchant’ have determined our actions as a Hamburg-based family
business for over 6o years. It is not by accident that the Tchibo brand
enjoys a very high level of consumer trust, and has come to stand for
quality and fair prices.
Since 2006, sustainability has been an integral part of our long-term
corporate strategy. In this way, we codify our values and standards
and our corporate commitment to take responsibility. Firstly, because
Tchibo can make a difference due to its business model, its expertise
and its size – for example, in the cultivation and processing of coffee,
cotton and wood. Secondly, because we strongly believe that our
future commercial success will benefit significantly from a sustainable
business policy. For the future, we need high-quality products, cooper
ation with business partners who take a long-term view, dedicated
employees who can identify with their company’s business policy,
and above all the trust of our customers.
Dr Markus Conrad, CEO of Tchibo GmbH
In 2009 we joined the United Nations Global Compact, a voluntary alliance of companies and organisations that
advocate human rights, fair working conditions and environmental protection around the world. In our business
operations we adhere to the principles of the UN Global Compact in order to meet social and environmental
standards.
As part of our sustainability strategy, we focus on the areas of our business activities that have the greatest
impact. We also consider our stakeholders’ expectations and views, and further intensified our dialogue with
them in 2012.
In 2012, we made further progress on our way towards a 100% sustainable business.
Sustainable supply chain: coffee
More than 25% of the raw coffee Tchibo processed in 2012 was incorporated into our sustainability concept –
almost twice as much as a year earlier. In 2012 we converted our ‘Privat Kaffee’ range and Cafissimo coffee
capsules to 100% certified sustainable quality. Since 2009, we have exclusively served certified coffee varieties
in our Tchibo shops. More than half of all the certified sustainable filter coffee sold in Germany in 2012 came
from Tchibo.
Sustainable supply chain: cotton, wood and pulp
We have significantly increased the proportion of sustainably grown cotton in our clothing range: with 12.7 million
textile items from certified and validated cotton production in 2012, we are one of Germany‘s leading providers
in this field. We have also steadily increased our share of environmentally friendly paper qualities in recent years.
Since 2012, we have printed all of our magazines, catalogues and advertising materials in Germany, Austria and
Switzerland on FSC®-certified paper.
Social responsibility in the production of consumer goods
To achieve a long-term improvement of working conditions at production plants, Tchibo has relied on the WE
(Worldwide Enhancement of Social Quality) qualification programme since 2007. Jointly developed with the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Federal Ministry for Economic Cooper
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ation and Development (BMZ), this programme is designed to improve social and environmental standards in
dialogue with all participants. Under the mediation of local coaches, managers, employees and their representa
tives work with Tchibo buyers on developing action plans at the production plants. By the end of 2012, we had
extended the qualification programme to 200 producers. By the end of 2016, we will expand it to all strategically
important suppliers. This corresponds with our purchasing strategy of establishing long-term partnerships, doing
more direct business, and focusing on the most important and best partners.
In 2012, the German Business Ethics Network (DNWE) presented us with the Business Ethics Award for our
efforts. In 2013, we received the Supply Chain Sustainability Award from the Federal Logistics Associations of
Germany and Austria, the CSR Award of the German Federal Government, and the European Commission’s
CSR Award. We see these awards not only as recognition of what has been achieved so far, but also as an
incentive to resolutely continue on our way towards a 100% sustainable business.
I cordially invite you to form your own impression with this Sustainability Report 2012, and look forward to your
suggestions, requests, or constructive criticism.
Yours sincerely,
Dr Markus Conrad
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Sustainability management
Doing business responsibly
In Hanseatic merchant tradition, Tchibo takes responsibility for its actions. We can only meet our
responsibility to society and simultaneously ensure our long-term business success if we consider the
worldwide impact of our business operations on people and the environment. That is why sustainability
has been an integral part of our business strategy since 2006.
Founded in 1949 by Max Herz, Tchibo has been synonymous with freshness and quality in the coffee market
for over 60 years. Originally a mail-order coffee retailer, it has developed into an international company with a
unique business model: we combine the highest expertise in roasted coffee with a weekly changing range of
consumer goods. Still 100% owned by the Herz family, Tchibo is one of the largest coffee roasters in the world
and the market leader in Germany, Austria, Poland and the Czech Republic. We sell roasted coffee, the Cafissimo
capsule system and the consumer goods range in more than 1,000 of our own Tchibo shops, as well as in
(shop-in-shop) ‘Depots’ and on the internet.
Making improvements, securing the future
Our brand name stands for quality and enjoyment – a claim that we would like to continue to live up to. Our
objective is therefore to become a 100% sustainable business. We are working, step by step, to make all our
products and processes more sustainable – with a particular focus on the areas where we have the greatest
influence. Given the nature of our business model, we can make a difference especially in the cultivation and
processing of coffee, cotton and wood. We have developed a management system with clear responsibilities
as a basis for our actions. Close, ongoing dialogue with external and internal stakeholders as well as mutually
trustful relations with our customers are very important to us, as this is the only way we can incorporate their
expectations into our actions. We also measure the success of our activities by how the members of these
groups evaluate our actions.
Integrating the national subsidiaries
The Eastern European markets, as well as Austria and Switzerland are important growth drivers for Tchibo. It
goes without saying that we are responsible for doing environmentally and socially responsible business in
these markets as well. Our stakeholders also have this expectation – as our survey in 2012 showed. Therefore,
we are gradually integrating the national subsidiaries into our sustainability management.
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► Strategic approach
A sustainable set-up
We are convinced that accepting social responsibility and embracing ecologic
ally compatible conduct
are essential to the long-term success of our company. That is why, on our way towards a 100% sustainable business, we continuously review and improve our products and processes. We concentrate on
areas where we can effect change by exerting a direct influence. We want the Tchibo brand to stand for
sustainability and to be perceived accordingly by stakeholders.
As a Hanseatic family firm, we think and act in a long-term, values-driven way. This is also reflected in our
‘Zukunft braucht Herkunft’ (Future needs Heritage) corporate strategy, under which we deliberately invest in
the brand core and sustainably increase the company’s value. We want the Tchibo brand to be perceived by
all stakeholders as customer-oriented, environmentally and socially responsible. Our Tchibo DNA describes
mandatory success factors that constitute our strength and that we want to preserve – they pertain to our coffee
expertise, our consumer goods concept, our sales system, marketing and corporate culture. From the Tchibo
DNA, we have also derived our growth areas for the next few years: the online and Eastern European business,
the Espresso and Caffè Crema product segments, and the single-serve coffee systems.
In our Code of Conduct we commit to complete transparency and compliance with the law, as well as
the continuous improvement of our business processes to make them more sustainable.
Sustainability: embedded in the strategy
Since 2006, sustainability has been an integral part of our business strategy, the Tchibo Code of Conduct and
our Tchibo DNA. We combine our pursuit of revenue and profit with environmental and social responsibility
because we are convinced that sustainability safeguards our company’s future viability. Future business success
will depend quite crucially on customer confidence, an intact natural world as a source of high-quality products,
responsible business partners, and passionate employees.
Sustainability contains opportunities on several levels: by conserving resources and optimising their use, we
protect the environment, safeguard our business and reduce costs. Socially responsible production benefits the
employees at the plants, while also increasing productivity and product quality. Sustainability also strengthens
customers’ confidence and trust in us.
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Our goal: becoming a 100% sustainable business
Our key strategic objective, based on an executive board resolution dated 30 August 2011, is that Tchibo is on
the way towards a 100% sustainable business. Step by step, we want to make all the products and processes in
our business more environmentally and socially responsible. We realise that this ambitious goal cannot be
achieved overnight. For instance, the implementation of labour and social standards in the consumer goods
supply chain in developing and emerging countries in Asia is proving a particularly big challenge, as is the
long-term transformation of the global coffee sector.
Moving the future: stakeholdermanagement
Maintaining a close and ongoing dialogue with our stakeholders is very important to Tchibo: we want to know
their expectations and assessments, include their ideas in developing our sustainable business processes, and work
with them on progressive solutions to environmental and social challenges. We rely on dialogue to achieve this.
In 2012, we further professionalised our stakeholdermanagement system by performing a stakeholder materiality
analysis. We gauged the relevance and the perceived status quo of our sustainability activities in an online survey.
Qualitative interviews with expert then helped us to reflect on the results and gain a deeper understanding of
the feedback received. We also set up our stakeholdermanagement in accordance with the AccountAbility 1000
(AA1000) standard – the globally valid rules for verifying sustainability management and reporting.
Improvements achieved: stocktaking 2012
Our commitment to sustainability is even reflected in our range: over 25% of the raw coffee processed by Tchibo
in 2012 was included in our sustainability concept – double the figure of 2011. And Tchibo products accounted
for more than 50% of the certified sustainable filter coffee sold in Germany in 2012. Since 2009, we have exclusively served certified coffee varieties in our Tchibo shops. In 2012, we completely converted all of our ‘Privat’
coffees and the coffee for our Cafissimo capsules to 100% certified sustainable coffee grades.
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. And our FSC®-certified wood and
paper product range puts us among Germany’s best retailers, according to the WWF rankings. We have also
further expanded our efforts in the plants where our consumer goods are manufactured: by the end of 2012 we
had integrated some 200 production plants into our WE qualification programme. We have also had successes
in the area of climate protection: based on an overall carbon footprint calculated in 2006, we have reduced our
annual transport-related CO2 emissions by around 30%.
We are also continuously working on improving our staff’s work-life balance. In 2010 we became the first
nationwide trading company in Germany to be certified as a family-oriented company by the ‘Stiftung berufund
familie’. We decided to seek recertification in 2012.
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Award-winning: motivation from major prizes
External acknowledgment of our activities is simultaneously an honour and an obligation for us: in 2012 we
received the Business Ethics Award from the German Business Ethics Network (DNWE), and the Supply Chain
Sustainability Award from the German Logistics Association (BVL), and its Austrian counterpart. At the beginning of 2013, we also won the German federal government’s CSR Award and the European CSR Award.
Looking ahead: Meeting challenges
Climate change, declining biodiversity, a growing poverty gap even in developing and emerging countries – global challenges such as these can only be solved if all social protagonists pull together. Companies also have a
responsibility to promote sustainable development in accordance with the goals of the United Nations. Tchibo
has set out to actively support this development. One example is the gradual transition to environmentally sound
and resource-saving product design as part of our UmweltPlus concept. On our way towards a 100% sustainable
business we face major tasks in many areas. Therefore, we have therefore presented our future challenges in
more for every field of action covered in this report.
► Fields of action
Establish priorities, achieve change
Tchibo faces diverse and demanding tasks. In order to meet our responsibilities, we set priorities and
focus on the areas where we have the greatest influence. We receive valuable input for our commitment
through regular dialogue with our stakeholders.
The individual chapters in this report map Tchibo’s fields of action in the area of sustainability: sustainability
management, coffee value chain, consumer goods value chain, customers and products, environmental protection
on-site and on the road and employee benefits. The chapters each contain information on the strategic approach,
key issues, policies, future challenges and the status of our goals. As Tchibo has specific strategic approaches
and faces different challenges in the value chains of coffee and consumer goods in the supply chain, we
dedicated a separate main chapter to each of these in the Sustainability Report 2012. Our commitment at the
source is directly related to our core business, which is why the topic is included in the chapter on value chains.
Involve stakeholders, receive input and impetus
In aligning our business activities based on economic, environmental and social criteria, it is important for us to
involve our internal and external stakeholders. Continuous communication with employees, NGOs, trade unions,
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the public authorities, science and academe, business partners, customers and other protagonists allows us to
identify expectations, receive impetus, and make progress together.
To check which areas the various stakeholders attach the
greatest importance to, and how they assess the state of
development at Tchibo, we carried out a wide-ranging
stakeholder survey in 2012. The results show that external
stakeholders see the coffee and consumer goods value
chains – and customer relations – as the most important
fields of action. In other words, precisely the areas that relate
to the core business. In the area of employees and customers
in particular, they feel that Tchibo’s developmental state is
quite high. However, they are more critical in their assessment of the level of development in the value chains and in
environmental protection. These include, for example, the
resource-saving design of consumer goods and the protection of nature and biodiversity.
Another point of reference for our sustainable conduct is our risk management. Risks identified here are incorpo
rated into the decision-making processes, so as to minimise or avoid potential hazards.
Our main areas of focus:
Coffee value chain
Consumer goods value chain
• Stakeholder-management
• Doing business responsibly
•
•
•
•
•
•
•
Customers and products
Environmental protection on-site
and on the road
Employee benefits
• Customer focus
• Product quality and safety
• Consumer-oriented
communication
• Climate protection
• Resource conservation
• Corporate culture and values
• Work and family (work-life
balance)
Sustainable coffee grades
Environment and climate
Educational projects in the
source countries
Integrated Supplier management
Sustainable Resources
Integrated range management: UmweltPlus
Educational projects in the
source countries
• Stakeholdermanagement: An ongoing dialogue with our stakeholders is of key importance for us to keep an
eye on the essentials. We survey expectations, receive suggestions, and work with a variety of organisations
on developing solutions to the challenges associated with our business.
• Doing business responsibly: As a global company, we combine economic competence and ethical principles to
ensure that our business conduct is environmentally and socially responsible. We put this values-driven corporate
management into practice with effective structures and processes.
• Sustainable coffee grades: Our medium-term objective is to include all the coffee we purchase in our
sustainability concept. Only economically, environmentally and socially sustainable cultivation ensures the
long-term availability of the raw coffee grades we need.
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• Environment and Climate: Fertile soil, clean water and suitable climatic conditions are prerequisites for the
profitable growth of the highest quality raw coffee, for example. For the preservation of nature and biodiversity
in particular we therefore involve ourselves in our products in the source countries.
• Educational projects in the source countries (coffee): To improve the living conditions of coffee farmers
and their families, we are also engaged in setting up our own local projects, even beyond the core business.
We focus on providing education and career-oriented offers.
• Integrated supplier management: With the aim of ensuring our competitiveness and meeting our responsi
bilities in the supply chain, our purchasing strategy focuses on having more direct business dealings, fewer
producers, and developing strategic partnerships.
• Sustainable resources: We acknowledge our responsibility towards natural resources and are continuously
expanding our sourcing of cotton, wood and pulp from responsibly managed sources.
• Integrated range management: UmweltPlus: From raw materials to packaging, we want to make our
products as resource saving and eco-friendly as possible. We have therefore developed product-ecology
requirement profiles in five development stages for all product groups in our range.
• Educational projects in the source countries (consumer goods): In the developing and emerging countries where many of our products are sourced, there is often a great need for social and environmental action.
Our corporate social responsibility efforts include educational and vocational offers, e.g. for the children of
cotton farmers in Africa.
• Customer focus: Comprehensive customer focus is fundamental to the preserving and strengthening trust in
the Tchibo brand and our products and services. The focus here is on providing excellent service, professional
customer relationship management, and effective complaints management.
• Product quality and safety: Our coffee products and consumer goods meet the highest quality standards.
Our customers can count on getting safety and a long service life at reasonable prices.
• Consumer-oriented communication: We want to continue to promote sustainability in retail and bring our
customers with us down this path. Therefore, we continuously expand our range of environmentally and
socially responsible products and communicate this in a targeted way.
• Climate protection: Tchibo‘s core business is directly affected by the impact of climate change. We analyse
all steps of our value chain in terms of their greenhouse gas emissions and take measures for improvement
where we have the greatest potential for savings and influence.
• Resource conser vation: The conservation of resources is an important priority for us to ensure the long-term
preservation of nature in the source countries and at our sites. We minimise the use of natural resources for
our products and packaging, and buy materials from responsibly managed sources.
• Corporate culture: As a family business, we want dedicated employees who deal with each other openly and
represent our core values both internally and to the outside. We encourage this with a number of measures.
• Work and family: We are continually working to improve our employees’ work-life balance and offer them
flexible solutions. Our efforts make us one of the most family-friendly companies in Germany.
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Our geographic focus
As a globally operating company, geographically we work towards sustainable development wherever there is a
specific bearing on our products and processes: in the source countries for our products, at our sites, and in our
sales markets.
• Countries of the coffee belt around the equator: Brazil, Colombia, Peru, Honduras and Guatemala are our
main source countries in Central and South America. In East Africa, we obtain outstanding qualities of coffee
mainly from Tanzania, Kenya and Ethiopia, and in Asia from Vietnam, Papua New Guinea and India.
• Developing and emerging countries: a large proportion of our consumer goods are produced in China,
Bangladesh, Vietnam and India.
• European markets: Our core sales markets are Germany, Austria and Switzerland. We are also seeing
growth in Eastern and Southeastern Europe.
► Mainstreaming and organisation
Sustainability management: the sum of many parts
Every employee at Tchibo contributes, in their sphere of influence, to our sustainable business conduct. Our sustainability management system consolidates the individual tiles of the mosaic into an
overall picture.
In 2006 we established the Directorate of Corporate Responsibility to firmly anchor the management of sustain
ability activities in our organisation. It is responsible for coordinating sustainability management in the departments
and reports directly to the CEO.
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Integrated system of targets
Our core strategic objective of putting ‘Tchibo on the way towards 100% sustainability’ and the corresponding
key objectives for all defined fields of action were adopted by the full executive board. The staff in the depart
ments use these key objectives to develop annual qualitative sub-targets for each main area of action under the
supervision of the Board member in charge of their business unit. These sub-targets should be quantified as far
as possible. Integrated into the overall system of targets, the departments’ key objectives and sub-targets and
their attainment also influence the fixed and variable components of staff pay across all hierarchical levels.
Accordingly, they are an integral part of the departmental employees’ personal target setting with their respective
supervisors. The respective departments are responsible for implementing the measures by which the agreed
objectives and interim targets are to be achieved. The overall coordination is in the hands of the Corporate
Responsibility department, which serves as an internal consultancy and supports staff in the departments. It
monitors whether the various sub-targets were achieved and reports the results once a year – after consultation
with the departments – to the CEO and the Executive Board. If necessary, the targets for the next fiscal year are
adjusted and new targets are adopted.
Guides, analyses and advises: the Corporate Responsibility department
The Corporate Responsibility department team is comprised of employees with knowledge and experience from
different disciplines: environmental engineering, natural sciences, nutrition sciences, social sciences, marketing,
legal and communications. The team handles the following tasks:
• Consultation of the departments: Corporate Responsibility helps the departments develop sustainability
goals and implement specifics measures to achieve these goals. It also coordinates the various sustainability
activities across departments, ensuring they complement each other.
• Single point of contact: The team is available for all questions or comments on the subject of sustainability
available. Relations and dialogue with stakeholders are maintained together with Corporate Communications.
• External representation: Corporate Responsibility represents the company on committees, at conferences
and at round tables that deal with sustainability.
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• Data protection (privacy) management: Since mid-2009 the management of data protection has been
centrally assigned to the Corporate Responsibility department, and therefore also has direct access to senior
management.
• Issues management: In issues management, the staff identify relevant sustainability issues for Tchibo at an
early stage, analyse societal trends and legislative initiatives. They also regularly exchange ideas with Tchibo’s
market research department, which also records and analyses relevant trends.
► Stakeholdermanagement
Identifying and involving stakeholder groups
Dialogue with our stakeholders is of great importance for us. We get to know their expectations, receive
impetus from them at an early stage, and develop and deepen a trusting relationship with our stake
holders. In 2012, we further professionalised our stakeholder management and carried out a compre
hensive materiality analysis on sustainability issues.
We are in continuous exchange and interaction with our stakeholders inside and outside the company, with an
emphasis on involvement determined by dialogue. This allows us to incorporate our stakeholders’ assessments
and expectations into our actions and develop joint solutions to environmental and social challenges. So in this
context, dialogue with our stakeholders also provides important impetus for innovation processes – in the
business as well as at societal level.
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Our approach of involving stakeholders, identif ying relevant issues together and responding to them with
measures also corresponds to the principles of inclusivity, materiality and reactivity defined in the AccountAbility
1000 (AA1000) standard. In 2012, we set up our stakeholder management system in accordance with AA1000.
Who are the relevant stakeholder groups?
In autumn 2012, we identified more than 1,200 stakeholders and grouped them into customers, employees,
suppliers and business partners, non-governmental organisations, trade unions, consumer organisations,
science, banking, insurance, and media. The following table provides an overview of the stakeholder groups,
their basic concerns, and how we interact with them.
Customers
Issues
• Attractive value for money and excellent service are important hallmarks of the Tchibo brand for our customers.
• Customers are also increasingly interested in whether products were manufactured under environmentally and
socially responsible conditions. Therefore, demand for sustainably produced and traded products, as well as
related information, is on the rise.
• Our customers obviously also attach great importance to open and honest communication.
Exchange and communication
We network with our customers through various channels:
• We receive most of our feedback through customer contact in the Tchibo shops.
• Our central customer service department and regular analyses by consumer protection groups also provide
valuable information for improving our products and processes.
• Our annual customer survey forms part of our communications and helps us assess customers’ expectations
regarding our sustainability efforts.
Employees
Issues
• Our success is based to a large extent on the commitment, experience and expertise of our employees.
• We expect them to respect the Code of Conduct in all business activities and show loyalty to the company.
• Our employees demand and assume entrepreneurial responsibility in their areas of influence.
• At the same time they want Tchibo to maintain its range of social services, promote work-life balance and
offer professional development opportunities.
• Tchibo is committed to an open and communicative corporate culture.
• Our employees work together closely on projects, and are regularly asked for their opinions – for example in
our employee surveys – and receive feedback from us.
Suppliers and business partners
Issues
• Our suppliers and other business partners expect fairness in our business relations.
• In turn we expect reliability, including with respect to our environmental and social standards.
• The relationship with our suppliers and other business partners is governed by contracts.
• We strive for successful long-term cooperation by pursuing enduring relationships in a spirit of partnership.
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NGOs
Issues
• Non-governmental organisations (NGOs) are committed to the environmental and social development of society.
• They call on companies and therefore Tchibo to advocate environmental protection and the enforcement of
social standards in the supply chain.
• In their view we should offer more sustainable products, continue to ensure high quality and safety in products
and promote sustainable consumption.
• We regard intensive interaction and selected joint projects with NGOs as the most effective form of communication.
Government organisations
Issues
• Government organisations demand above all that we respect the law.
• They also expect and demand that companies participate in voluntary initiatives to integrate environmental and
social standards into their business activities.
• For government organisations, too, our motto is: joint projects are the most effective form of communication.
• For example, we designed our WE programme together with the German Federal Ministry for Economic
Cooperation and Development (BMZ), and regularly take part in the Code of Conduct round tables.
• In direct connection with our ranges, we especially work with the organisations/standards of the Rainforest
Alliance, Fairtrade, UTZ Certified, Bio and 4C as well as the Forest Stewardship Council (FSC®), Textile
Exchange, Better Cotton Initiative and Aid by Trade Foundation/Cotton made in Africa.
Trade unions
Issues
• Unions advocate the interests of employees.
• National and international trade unions demand the enforcement of social standards in the supply chain.
• The trade union ver.di is represented on our works council.
• We are in dialogue with national and international unions, in line with the rules of worker participation and as
part of our involvement in the supply chains – e.g. through Code of Conduct round tables, our membership in
Social Accountability International (SAI) and other organisations.
Consumer protection organisations
Issues
• Consumer protection organisations advocate that performance and price are proportionate to each other.
• Customers should not be misled or deceived by product advertising; promised service standards should be
kept; and complaints dealt with professionally.
• The protection of personal data (privacy) is also an important issue.
• Since 2007, we have been advised by the Institute for Market, Environment and Society (IMUG) in Hannover,
particularly regarding the marketing of complex services and the monitoring of our customer service including
complaints management.
• In addition, we are a founding member of the German Alliance for Consumer Education established by the
German Consumer Protection Foundation in 2012.
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Science
Issues
• Cooperating with scientific institutions is essential for Tchibo’s continued development.
• By the same token, the scientific community is very interested in dialogue and practical cooperation with Tchibo.
• In recent years, areas where we have benefited from science include the optimisation of our transport activities
and climate protection measures
• We also run joint projects with the scientific community.
• One example is the BIONOS project that we carried out together with the Technical University of HamburgHarburg and other universities as well as the Institute for Ecological Economy Research (IÖW).
Banks and insurance companies
Issues
• As creditors and insurers, banks and insurance companies are interested in long-term commercial success
and low risk.
• A sustainable approach reduces risk and contributes to the company’s business success.
• As part of risk inventories we periodically take stock of all significant risks, to identify them at an early stage,
record them in a structured way, and minimise or prevent them.
Media
Issues
• The media examine business conduct in practice, report on social problem areas and publicise issues.
• By actively communicating our sustainability efforts, for example through press releases, we also seek to
promote sustainable consumption in general.
Enquiry: materiality analysis 2012
In late 2012 we invited 430 of our 1,200 stakeholders to participate in an anonymised online survey. The respondents
were selected based on the stakeholder’s relevance – i.e. that of their institution – for Tchibo and their potential
influence over our brand. It was also important for us to choose stakeholders who are well-versed professionals
in the area of sustainability, from whom we can learn and with whom we can work to make a difference.
We surveyed the relevance they attributed to 34 subjects at Tchibo and their perceived level of development, in
seven fields of action. Respondents were also invited to add their own expectations and suggestions. Over 130
stakeholders – almost 32% of those contacted – participated in the online survey. This shows us that there is
interest in dealing with Tchibo’s sustainability issues and providing feedback on them.
What are the relevant issues?
We have summarised the relevance of the topics in a materiality matrix that will be regularly checked and
adjusted from now on. The most relevant topics for external stakeholders are mainly those that relate directly to
our core business: customer focus and service, followed by social standards in the coffee supply chain, sourcing
of sustainable raw coffee grades, product quality and safety, and environmental standards in the supply chain. In
comparison, societal and political issues are classified as less relevant.
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1 Economic stability
2 Sustainability as an integral component of
corporate strategy
Structures, guidelines and framework for responsible
3 corporate management, corporate governance
and compliance
4 Dialogue and collaboration with stakeholders
5 Transparency an reporting
Involvement of international subsidiaries in
6
sustainability management
7 Political statements
Coffee supply chain
8 Social standards along the coffee supply chain
9 Environmental standards along the coffee supply chain
10 Sourcing of sustainable raw coffee
Consumer goods supply chain
11 Social standards along the consumer goods supply chain
12 Environmental standards along the
consumer goods supply chain
Qualification of suppliers with the respect
Employees
24 Corporate culture
13 to improving social standards
25 Employee participation
14 Resource-friendly design of consumer goods
26 Combining career and family
Customers
27 Training and development
28 Equal opportunities
29 Health and safety
15 Customer orientation and customer service
16 Product quality and safety
Provision of sustainably produced products
17 as well as information about them
18 Consumer and data protection
Environmental protection
19 Climate protection
20 Environmentally friendly logistics concepts
Sustainable mobility in vehicle fleet
21
and company cars
22 Careful use of resources in company
30 Compensation and social benefits
Society
31 Social commitment in the countries where
our products are sourced (coffee, cotton)
32 Social commitment in our main sales
markets (Germany / Austria / Switzerland)
Support for voluntary community activism /
33
corporate volunteering
Subsidised projects for social issues related
34 to core business (e.g. sponsoring, supprt for
educational initiatives, etc.)
23 Nature conservation and biodiversity protection
Where does Tchibo stand from the stakeholders’ perspective?
Stakeholders see Tchibo as already well positioned in the areas directly related to customers, products and
employees. Quality, safety and stability – overall, stakeholders associate Tchibo with these characteristics.
However, the environmental impact of our activities in particular is rated as needing improvement – e.g. the
resource-saving production of consumer goods, the conservation of nature and the preservation of biodiversity.
In 2012 we were already able to initiate changes in these areas, for example through our comprehensive
‘UmweltPlus’ concept and by joining the ‘Biodiversity in Good Company’ initiative.
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Many respondents have used the opportunity to tell us about further concerns in the free input field. The
following expectations were expressed many times:
• Integrate sustainability aspects in all our products and services.
> This encourages us to resolutely continue on the way towards a 100% sustainable business.
• More sustainable conduct regarding environmental protection in the supply chains and the longevity of
consumer goods.
> The UmweltPlus concept and our climate-protection efforts have set important precedents for this.
• More communication with consumers at point of sale (POS).
> To promote sustainable consumption, we already implemented a number of measures in 2012 that we
plan to intensify in future.
For in-depth information: qualitative expert interviews
Following the online survey, we conducted around 30 telephone interviews with sustainability experts who
represent our fields of action and who had also previously been invited to take part in the online survey.
Their statements essentially confirmed the main results of the materiality analysis and provided us with further
information about the relevance of issues, future developments, and expectations regarding Tchibo’s actions.
We found that our stakeholders already take a positive view of their involvement in our ongoing development.
„WE, with its dialogue-oriented approach
to social standards in the supply chain, is
a ground-breaking project.“
- Carsten Schmitz-Hoffmann, GIZ -
„In the shop, I’d like to learn more about
working conditions and critical issues in
general, both for the consumer goods
and for the coffee.“
- Yvonne Zwick, RNE -
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How do we use the results?
The pioneering role in the area of sustainability that some stakeholders entrust and associate us with motivates
us to further activities and innovations. The results of the online survey and interviews with experts are already
considered in this report, and are also incorporated into the development of our sustainable business conduct
in 2013. Together with our stakeholders, we want to work on new and existing issues and take them to an even
higher level. To do so, on the one hand we will stick to proven formats, such as networks, round tables and
initiatives. And on the other hand, we want to – in accordance with the wishes of our stakeholders – discuss
selected topics in small groups and give stakeholders concrete opportunities for participation. We will also rely
on modern dialogue formats, such as think tanks, which open up opportunities for all participants.
In the medium term we intend to expand our stakeholder management to Austria, Switzerland and our national
subsidiaries in Eastern Europe.
Further surveys of employees and customers
In September 2012, we conducted an ‘Aon Hewitt’ survey of our employees in Germany. It yielded positive
ratings especially for customer focus, tasks at work, training and further education opportunities, but also
indicated potential for improvement. Based on the results the Executive Board and staff are jointly developing
specific measures in 2013. This also involves in-depth interviews and focus groups with managers and staff.
Also in 2012, we carried out a customer survey on our sustainability communications. We wanted to know, for
example, how open our customers are to the issue, how well informed they feel about our sustainability activities,
and what issues are important to them. We will consider the results in our consumer communications to improve
and strengthen customer information and communications.
► Milestones
Our milestones
In recent years, we have already made good progress on our way towards a 100% sustainable business.
From the introduction of a mandatory Code of Conduct for suppliers to the addition of ‘green energy’
products to our range, we’ve summarised the major milestones and developments for you in the following.
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.
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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 overhaul 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 (ILO).
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™.
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.
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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.
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.
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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 .
‘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.
23
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.
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.
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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.
► Responsible business conduct
Guided by values: Combining economic
efficiency with ethical principles
As a global company Tchibo takes responsibility because long-term value can only be achieved if we
combine economic and ethical skills and harm neither people nor the environment. We facilitate the
implementation of this values-driven corporate governance with efficient structures and procedures.
Responsible corporate governance is a high priority for us and forms the
basis for sustainable growth. As a wholly owned subsidiary of maxingvest
ag, which is owned by the Herz mercantile family in Hamburg, this also
reflects our parent company’s approach. At Tchibo, corporate governance
stands for conscientious and transparent management and control,
focused on long-term value creation. For us, taking responsibility for
sustainable development also means trading fairly. We reject all forms of
anti-competitive behaviour towards market participants and stand for fair
competition. We also see the careful handling of information entrusted to
us by employees and customers as an integral part of our corporate
responsibility. This is reflected in our comprehensive data protection
management.
Binding rules of conduct
The directors of Tchibo and maxingvest ag have codified our understanding of values in a Code of Conduct. It
forms the centrepiece of all rules of conduct at Tchibo and is binding for all employees. It contains 13 principles
for cooperation and dealing with business partners, and explains how they are put into practice. All of the
company’s managers are required to confirm their compliance with the Code and appropriate training of their
employees, in writing, each year.
Transparency and open communication
Transparent, active and open communications are just as important as binding rules. We provide all target
groups with comprehensive information relevant for decision-making. maxingvest ag’s external communications
comply with the obligations of publicly traded companies, and its consolidated financial statements are prepared
25
in accordance with IFRS and are therefore in accordance with internationally recognised standards. A dependent company report pursuant to section 312 of the AktG (German Stock Corporation Act) provides information
on relationships with affiliated companies. The maxingvest ag Annual Report, which also covers the topic of
sustainability for its subgroups Tchibo and Beiersdorf, is published on the internet along with other corporate
information, and is therefore accessible to all interested parties.
Ongoing dialogue between bodies
In the interests of the company, the Executive Board and Supervisory Board and works council of Tchibo GmbH
work closely with each other and also with the Executive Board and Supervisory Board of maxingvest ag. The
ongoing, intensive dialogue between these bodies is characterised by openness and transparency. At the same
time, respect for stakeholder interests and a clear assignment of responsibilities play a major role. The Executive
Board of Tchibo GmbH provides the Supervisory Board with regular updates on all issues relevant to the company’s
business development, performance and risk position, in a timely manner. The company’s strategic focus is coordi
nated with the Supervisory Board and significant transactions require its approval. To increase the efficiency of its
work and to deal with specific complex issues, the Supervisory Board has set up a number of committees to
focus on specific topics.
► Responsible business conduct ► Compliance
Embedding compliance at all levels:
acting fairly, complying with the rules
On our way towards a 100% sustainable business, ethical and fair dealings are key parameters. We see
uncompromising compliance with the law as a self-evident basis for this. The structures and proce
dures of our corporate governance ensure that employees, suppliers and other partners comply with
the rules, and enable us to counteract any deviations at an early stage.
For Tchibo GmbH and its national subsidiaries, strict adherence to the law has top priority – at all times and in
all places. Since 2009, Tchibo has been a member of the UN Global Compact and is therefore committed,
among other things, to actively counteracting corruption. We publish the measures associated with this in an
annual Communication on Progress, which is integrated into this Sustainability Report.
Legally compliant behaviour is ensured at all levels of the company, based on the Code of Conduct developed
by the Executive Board. Transactions requiring approval are set out in the company’s Rules of Procedure and
Articles of Association, which are uniformly imposed by our shareholder. At the next level, guidelines define
divisional and cross-company processes, while employee-specific issues are clarified in company agreements
coordinated with the works council. Workflows in the departments are defined in manuals and process descriptions.
These comprehensive guidelines are a prerequisite for even being able to proceed against violations. In case
of suspected corruption or other serious violations, we are in a position to respond resolutely, including with
sanctions under labour law if necessary.
Objectives of our compliance
A key objective is to minimise risks to the business and harm to the company while also increasing the effectiveness
of processes and eliminating liability for the company’s management. Our compliance system enables us to prove
lawful behaviour and structures while also improving the (compliance) culture and awareness within the company.
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On the path to a compliance management system
To promote the achievement of these objectives, we are on track to developing a compliance management
system, taking our cue from the Institute of Public Auditors in Germany’s (IDW) PS 980 compliance standard.
To date, we have carried out a Tchibo-specific basic analysis of the individual elements of a compliance management system and carried out a detailed and weighted risk analysis for all Tchibo units. We identified data
protection and IT security, antitrust and corruption and foodstuffs legislation as the highest risk areas. To review
and consider effective measures we undertook benchmarking and a further analysis, and incorporated the
results in our compliance programme.
The Tchibo compliance programme: prevention, detection and response
The key elements of our compliance programme are the Code of Conduct, various guidelines, internal audits by
the Corporate Audit department, as well as training and a whistleblowing hotline. The Code of Conduct serves
as the guiding principle for all business conduct. Its 13 principles represent ethical business practices and good
corporate behaviour and are based on the principles of the International Labour Organisation (ILO). The code is
binding for all employees, i.e. at Tchibo GmbH as well as our subsidiaries. It also regulates relations with business
partners and stipulates such things as a clear prohibition of corruption or personal gain or benefit. If an employee
violates any of the principles they risk penalties under labour law.
The various guidelines set out further Group-wide rules and regulations. They are always approved by the full
Executive Board and govern cross-divisional and cross-company processes, defining procedures for conduct
and organisation and the responsibilities of subsidiaries, divisions and employees. Examples include our
procurement policy and the guidelines on drawing up contracts or dealing with favours and entertainment. We
use an internal control system to monitor compliance: Our Corporate Audit Department performs audits and
reports to the Supervisory and Executive Boards at regular intervals.
Coaching and in-house communication of the rules
Training sessions are an integral part of our in-house communication of the compliance programme. All managers
receive regular training on the Code of Conduct, and in turn pass on what they have learned to their staff. All
executives have to confirm this each year. Each new employee also completes such a tutorial and receives a
copy of the Code of Conduct. To prevent corruption, every two years we coach the relevant departments, e.g.
Purchasing and Sales. We host a monthly session on data protection to inform all new employees, as well as
online seminars every year for new hires and every two years for other staff. Tchibo also carries out departmentspecific further training in Germany and the national subsidiaries by means of lectures and written material – for
example, on issues such as antitrust and trademark law, or money laundering.
Enabling detection, preserving anonymity
We monitor compliance with our guidelines and guidelines through internal audits. But how can employees
immediately reveal violations and suspicions in the day-to-day business without putting themselves at risk?
To this end, in 2009 we set up the ‘whistleblowing hotline’: an anonymous point of contact for employees,
suppliers and customers where callers can leave information, concerns or doubts regarding their own or
someone else’s misconduct. This can, for example, refer to legal infringements, financial misconduct, endan
germent of people or the environment, unethical behaviour, or criminal activities. The toll-free whistleblowing
hotline is operated by an independent company, is multilingual, and is staffed 24/7. The hotline staff is sworn
to absolute secrecy and confidentiality. 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 and Tchibo GmbH, and the chairman of the works council.
27
Using internal communication channels
To make sure our compliance programme doesn’t just exist in theory, but is put into practice, we keep our employees
informed about it – with a dedicated intranet site, updates, regular training and personal conversations. Conversely,
there are several channels that employees can use to point out misconduct and violations to the company: our
whistleblowing hotline, the works council, the Human Resources Department, the Legal Department, and our
Corporate Audit Department and their audits.
► Responsible business conduct ► Privacy / Data protection
Cornerstones of security:
responsibility, respect and trust
We regard the careful use of information entrusted to us by employees and customers as an integral
part of our corporate responsibility. Principles such as data minimisation, transparency and security
are top priorities at Tchibo.
Our comprehensive data protection management system is designed to help us meet our own security standards
as well as those of our customers and employees. To ensure that all employees in the company resolutely comply
with the statutory specifications as well as our own, we systematically and thoroughly build awareness for the
issue of data protection. As part of our awareness building, all employees must go through basic training. They
also sign a commitment to treat the data confidentially. In the training, we communicate a fundamental under
standing of the importance of data protection in the workaday routine. This includes making everyone aware of
their individual responsibility for the careful handling of data. Afterwards, all employees use an online tool with
questions about their routine work at Tchibo to test their knowledge about a careful handling of data. In addition,
we regularly inform employees about privacy-related business processes. In 2012, we created a new intranet
section for this, containing fact sheets, forms, contract templates and answers to frequently asked questions.
Long-term security
We monitor the proper implementation of relevant data protection processes as a matter of course. However, the
data protection office headed by the Group data protection officer not only sees itself purely as a monitor, but also
very much as an internal consultant. Our standards are higher: we don’t just want to track down areas where
optimisation is required and privacy infringements; we also want to make sure these processes are corrected in
the long term, and in line with the beliefs of the people responsible for the process. So in addition to awareness,
the acceptance of personal responsibility by the people in the process is crucial in dealing with personal information.
Protecting personality rights
We feel the national and international data protection laws are out of date, because they are not designed for the
increasingly diverse and complex technical possibilities of our time. It is for good reason that the EU is currently
going through an extensive consultation process to come up with a basic data protection directive, which will
apply immediately in all EU Member States and guarantee a uniform level of protection. But here as elsewhere, it
is evident how complex the interests are regarding the protection of personality rights to determine how one’s
personal information is use (data protection). And expectations differ in different cultures.
Against this backdrop, it is important for Tchibo as an international company to focus on the essentials and stay
the course. Protecting people’s personality rights in is at the heart of data protection. Everyone who works in a
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commercial enterprise is responsible for compliance there. Respect and trust are prerequisites for putting data
protection rules into practice to protect the privacy of other people. Tchibo employees act based on this under
standing – in Germany as well as the national subsidiaries.
Big data – moderation for more privacy
Customers, applicants and employees all have a growing expectation of the relevance of information. As it competes
with other companies Tchibo is therefore called on to respond more and more precisely to peoples’ needs and
requirements. At the same time, of course, the threshold to manipulation should never be exceeded, and
moderation should be maintained. Tchibo has therefore set itself the task of developing intelligent methods to
identify the needs of customers from a wealth of information taking into account data protection requirements.
The challenge lies is not making the individual the object of analysis, but to draw insights for advertising and
product design from anonymous data.
Transparency and comprehensibility
As technical contexts become more complex, the demand for transparency regarding how data is collected and
used also rises. An excessively detailed description of the data processing wouldn’t make sense, as the customer
should also understand how we deal with their data. Our goal is to design our privacy policy in such a way that
every customer can gain a quick overview of what Tchibo uses personal data for. Because, of course, customers
should continue to be able to easily exercise their rights – such as the right to object.
We are happy to provide further information and details to anyone who is interested.
► Responsible business conduct ► Risk management
Forward-looking corporate management:
identifying and minimising risks early on
Like any other business Tchibo is subject to external influences that can result in risks to its business.
Currency fluctuations or environmental events such as droughts or floods can drive commodity prices
higher and negatively impact business targets. We use an integrated risk management system to
identify such challenges early on and to take appropriate action.
To monitor the risk situation, we identify key business risks and manage them using appropriate systems and
processes. Our risk policy follows the premise of seizing potential opportunities, but only accepting the associated risks if the expected increase in value outweighs the risk. The goal of the comprehensive risk management
system is to identify all potential risks early on and limit them through effective measures.
Taking stock: What types of risks exist?
We carry out risk inventories, which include a periodic inventory of all material risks. In order to record them in a
structured way, we cluster them into three risk categories: short-term operational risks, one-off risks, and strategic
risks. The risks are then further differentiated within these clusters. Risks that pose an acute threat are immedi
ately reported to management as soon as they occur. This lets us promptly detect potential hazards and bring
them under control. Updates on risk development are included in Tchibo’s management and planning systems
throughout the year. The internal audit department reviews the effectiveness of our risk management, and the
Executive Board and the Supervisory Board are kept informed about the risk situation through regular risk reports.
29
What are the specific risks?
Like any retailer Tchibo, is subject to the risk that markets can shrink or become saturated, which can lead to stagnating or declining sales. We counter this mainly with two strategies: on the one hand, an innovative product policy
that monitors trends and moods in the relevant markets and target groups, and responds to them; and on the
other, through international growth. For example, as the global retailing landscape changes, we are strengthening
the e-commerce sector and focusing more on cross-channel activities.
Protecting the value of our brand
Our customers associate the Tchibo brand with friendliness, quality and expert knowledge. Incidents that could
harm the Tchibo brand name pose a great risk. We counter this risk with a balanced communication policy,
meticulous quality control, and compliance with social and environmental standards. At the same time the Tchibo
brand image also depends on our ability to identify market trends and offer innovative product ranges. To avoid
risking the loss of this competitiveness, we rely on a first-class portfolio of suppliers and promoting our employees.
An example: sustainability risks in procurement
To guard against risks in the procurement of indirect goods and services (Corporate Purchasing), Tchibo integrates
environmental and social requirements in its sourcing processes. An in-house project team analyses the status
quo and identifies possible weaknesses or gaps – for example, non-transparent aspects in value chains or production
processes in the countries of origin. The next step is to prioritise these aspects by product group, and according
to their opportunities and risks regarding environment and social compatibility. Based on these results, we develop
tools and measures to minimise the specific risks. For example, we create individual supplier questionnaires or
extended standards, which are integrated into tender and contract documents. In 2013, we are setting up an
audit system to ensure and verify compliance with these requirements.
Comprehensive risk management depends on communication
We believe that an integrated risk management system does not live by standardisation or formalisation alone,
but also by open communication and the provision of comprehensive information to all employees. We also
practice transparent communication to the outside. For example, in 2011 we published an open letter to consumers informing them early on about the necessary price increase for high-quality raw coffee, and promising to
lower coffee prices again as soon as the world market price for Arabica grades allowed. We were able to deliver
on this promise in 2012.
► National subsidiaries
Commitment without borders
Tchibo has integrated sustainability into its ‘Zukunft braucht Herkunft’ (Future needs Heritage) corporate
strategy, and is aligning its business activities in accordance with economic, environmental and social
aspects. As business grows in the Eastern European markets as well as in Austria and Switzerland, our
environmental and social responsibility in these regions grows along with it. By gradually pushing
forward with sustainability management in our international business units, we are also fulfilling an
important expectation of our stakeholders. In 2012, the international business units in Eastern Europe
developed their own national sustainability programmes and successfully carried out various measures.
A variety of sustainability activities are already being implemented in Austria and Switzerland. We have
drawn up an inventory of them, and have appointed so-called Corporate Responsibility (CR) Managers
to supervise the process.
30
Tchibo is represented with international business units in Switzerland and Austria, as well as in Eastern Europe:
in Czech Republic, Hungary, Poland, Romania, Russia, Slovakia and Turkey. On our way towards a 100 %
sustainable business, we began in 2009 to involve the international business units in our sustainability management
system, step by step.
On the one hand, we are pursuing goals at our international locations that are valid for the entire Tchibo Group.
This in particular includes the long-term transition of our product ranges, primarily coffee, cotton, wood and paper,
to sustainable qualities. All product range-related activities, the management of the supply chains, including the
compliance with labour and social standards as well as additional global processes, are defined at corporate
headquarters for the entire Tchibo Group and jointly implemented.
On the other hand, the individual companies have defined individual goals as part of their own national sustain
ability programmes – the focus here is especially on personnel and location issues, as well as communications.
Close cooperation
Our head office in Hamburg supervises and coordinates the international business units’ sustainability activities,
and supports the management and employees in putting the Group-wide sustainability guidelines into action.
The Corporate Responsibility department coordinates closely with the responsible executive board members
and with the general managers of the international business units in the process. Together they form the steering
team.
Step-by-step integration
Knowing about the positive and negative environmental and social impact of one’s business is essential to acting
sustainable. Since 2010 we have been steadily expanding this knowledge and building awareness for the issue
at our international business units. As a first step towards integrating them into our sustainability management
we have appointed CR Managers in each country. National sustainability teams advance the implementation of
on-site activities. We provide support to the CR Managers and executives in the form of training and information.
‘Corporate Responsibility at Tchibo’ workshops have been held and country-specific fields of action have been
identified in a process of self-analysis, along with specific measures for different sectors/departments.
All international business units in Eastern Europe have been integrated into our sustainability management since
2012, and are now working on implementing national sustainability programmes that take into account each country’s
specific circumstances and requirements. Austria and Switzerland are beginning the implementation of their
programmes in 2013. The sustainability programmes are updated annually and approved by the national general
managers and the supervising board member. Each programme specifies sustainability goals for strategic core
areas: the environment, employees, customers, society, and communications. However, all activities that relate
to the supply chain and product range are controlled by company headquarters in Hamburg.
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A joint network
The number of measures implemented, and the depth to which they are implemented, vary from country to country.
In some regions, an awareness for acting sustainable has yet to develop – both within the company and among
customers.
So, in order to support the individual companies, Tchibo has set up a multinational network for the Corporate
Responsibility Managers. Its first meeting took place in August 2012, followed by half-yearly meetings since then.
The network allows participants to systematically share their experience and facilitates knowledge transfer and
strategy coordination. We have also drawn up a job profile for CR Managers, describing how they work, which
has allowed us to further sharpen their area of responsibilities. Head office continually monitors the activities of
the individual countries.
Exchange of experience across sectors
The CR Managers not only network with each other within the Tchibo Group; exchange of experience across
sectors and participation in stakeholder dialogues are also becoming increasingly important for publicising the
issue. Eventually, we’d like to collaborate with one national NGO focused on sustainability, in each of the countries
we operate in. We have already achieved this in Austria, Czech Republic, Hungary, Poland, Switzerland and
Turkey.
Transparent communications
To further increase internal and external awareness for sustainable business development and responsible
consumption, the international business units are making their activities transparent – on the national company
homepage, on social media platforms, and at the point of sale (POS). In addition we publish our Sustainability
Report also in English.
32
Tchibo in Austria
Founded: 1969
Location: Vienna
Business model: Brands & system,
e-commerce, Coffee Service
Number of employees: 1,220
Number of Tchibo shops: 143
Tchibo in Poland
Founded: 1992
Location: Warsaw, Marki
Number of employees: 687
Tchibo in Romania
Founded: 2001
Location: Bucharest
Business model: Brands,
Coffee Service
Tchibo in Russia
Founded: 1993
Location: Moscow, St. Petersburg
Business model: Brands
Tchibo in Switzerland
Founded: 2001
Location: Wallisellen
e-commerce
Tchibo in Turkey
Founded: 2006
Location: Istanbul
Business model: System,
e-commerce
Tchibo in Hungary
Founded: 1991
Location: Budapest
Business model: System,
e-commerce
Tchibo in Czech Republic
and Slovakia
Founded: 1991
Location: Prague, Bratislava
Number of employees: 363 (CZ);
77 (SK)
*Sales markets included in the sustainability management
33
► National subsidiaries ► Eastern Europe
Growing markets, growing responsibility:
Tchibo in Eastern Europe
In many Eastern European countries, the issue of sustainability is not yet as deeply embedded in society
as in Western Europe. This challenge reconfirms our international business units in their commitment to
continually grow their sustainability efforts. Our goal is sustainability leadership in Eastern Europe, and
to thereby further differentiate ourselves from the competition.
„Winning in Eastern Europe“ is the mission statement of our international business units in Eastern Europe. The
region will be a key growth driver for Tchibo in the next few years. At the same time we are aware that the steady
expansion of business in the Eastern European market goes hand in hand with a growing environmental and
social responsibility.
Mission statement for Eastern Europe:
„The Eastern Europe region will become the profitable, ecologically
and socially responsible growth driver for Tchibo GmbH by increasing
the brand’s profitability and strengthening its share of the coffee
market in all relevant markets, by further expanding the system
business in both existing and new markets, and by further developing
the sales channels – especially e-commerce as the growing segment in the region.”
Review of 2012
In 2012, the international business units put their national sustainability programmes into action and developed
new programmes for 2013, taking into account the differing requirements and customer expectations in the
various markets. In 2012 we developed guidelines for the accompanying sustainability communications as well
as for marketing. We have successfully begun to communicate our sustainability activities to the outside in
Eastern Europe: at the point of sale (POS), as well as in media relations. The successful introduction of the
Tchibo ‘Privat Kaffee’ range in Eastern Europe greatly increased our selection of certified sustainable coffee.
Current state of implementation
Our international business units in Czech Republic, Hungary, Poland and Slovakia are leaders in putting the
measures into action. One focus of their activities in 2012 was building employee awareness for sustainability.
The issue was explored in workshops and tutorials as well as in in-house employee communications media and
joint events. The international business units also analysed water, energy and office materials consumption at
their administrative offices, and derived conservation measures based on this. For instance, the separation of waste
has been improved, lighting systems were updated, and fleets converted to vehicles that emit less CO2. In addition to
their on-site activities, many international business units also engage in corporate volunteering in the region.
34
Also in Russia and Romania the international business units have taken first steps towards implementing
sustainability activities. However, at present the priority is to expand the business in a difficult economic environment, so it will take time to further develop these activities. The same is true for the business unit in Turkey,
which faces the additional difficulty that awareness of sustainability is only growing slowly in Turkish society.
Outlook for 2013
In 2013, the international business units in Eastern Europe will continue to push forward with their activities and
put their continually evolving sustainability programmes into action. Increased communications to the outside is
a part of all programmes for 2013 – including at the point of sale (POS).
In order to compile important key performance indicators on an international level, we are developing a concept based on GRI guidelines - that is to be implemented before the end of 2013. We are also starting with the certifi
cation of our international business units to Forest Stewardship Council (FSC®) standards, so that in future all
advertising material in Eastern Europe can be printed on sustainable paper qualities carrying the Tchibo FSC logo.
Goals 2012/2013
Core strategic goal: Tchibo on its way towards a 100% sustainable business
Target: To develop and implement national management systems, we will create sustainability teams in the
following sales markets by 2015 and provide them with training: Czech Republic, Hungary, Poland, Romania,
Russia, Slovakia, Turkey, and Austria and Switzerland. These teams will work with our corporate responsibility
department at our Hamburg HQ to create and implement country-specific sustainability programmes with targets
and activities for continuously improving the company’s range of sustainable services. These will be in force
either throughout the entire Tchibo Group or will be added to the targets and activities that Tchibo puts together
for the separate national markets. The national sales organisations will develop their own targets and activities
for certain issues, in particular ones that relate to their own countries.
Goals in 2012
Status quo
Comment
Adopt sustainability programmes in Turkey, Russia and
Romania. Continue/launch the implementation of national
sustainability programmes in all countries in eastern
and southeastern Europe.
fully
achieved
The programmes were finalised,
and approved by the managing
directors and the managing board
member in Hamburg in June 2012.
Host an international meeting of sustainability officers
to share experience as well as fine-tune and further
develop the sustainability programmes with a view to
2013.
fully
achieved
The sustainability officers meeting
took place in August 2012. It has
been held at six-month intervals
since then.
Train and continually integrate local employees – beyond
key contact persons – by providing information and
dialogue.
fully
achieved
Training and internal communica
tions have been driven forward by
the local sustainability officers.
Develop a concept for the external sustainability
communications.
fully
achieved
The concept was developed and
introduced in Eastern Europe in
February 2013.
35
Goals for 2013
Analyse and reduce resource consumption at the headquarters of the national subsidiaries (paper, water,
energy, etc.)
Switch paper for advertising materials to FSC® grade in the Republic and Slovakia, Poland and Hungary.
FSC® certification of national subsidiaries in Czech Republic, Slovakia, and Turkey.
Step up external communications on sustainability, e.g. through country-specific adaptations of Tchibo’s
sustainability flyer, updating sustainability-related information on the national corporate websites (if available),
and increase visibility of the issue at POS.
Poland: Measures to protect the environment
One mainstay in our sustainability management in Poland in 2012 was the 3E environmental program. The name
stands for Educate, Engage & Eco-Improve. With the aim of reducing the negative impact of its regional business
activities on the environment, Tchibo in Poland tackles environmental issues both in its offices and in the shops.
The 3E approach involves analysing the situation, minimising consumption, and improving environmental perfor
mance in line with business interests.
‘The Green Office’
In 2012, Tchibo in Poland was awarded the ‘Partnership for the Environment’ foundation’s ‘Green Office’ certificate
for the second time, in recognition of its efforts to reduce the environmental impact of its office activities. Overall
the business units was able save about 35 tons of CO2 in 2012. Compared to 2010, when the 3E environment
programme was introduced, paper consumption has been reduced by 29% and the use of plastic bottles by 76%.
One important component in this was the continual effort to educate colleagues in Poland and get them actively
involved, with campaigns like ‘Green Week’ at the Warsaw head office, which included a print-free day as well as
an in-house contest where employees were invited to submit ideas for environmentally friendly solutions in their
workaday routine.
‘The Green Shop’
Tchibo in Poland teamed up with the ‘Partnership for the Environment’
foundation to develop the ‘Green Shop’ certificate and introduce it in Poland. This is the first environmental certificate ever for Polish retail. The
underlying criteria are based on the international sustainability standards
ISO 26000 and GRI. The 51 Tchibo shops in Poland were the first shops
to undergo a detailed environmental audit and gain certification.
Green shop certificate
In 2012, Tchibo once again voluntarily underwent an external audit of its
sustainability activities in Poland. The international business unit did very
well in the ‘ 6th ranking of responsible companies’: Tchibo was ranked #2
in the retail sector, #8 in consumer goods, and #25 overall – a significant
increase over the previous year, when Tchibo in Poland was ranked 37th.
The ranking is based on a questionnaire that is audited by Pricewater
houseCoopers (PwC), and in which 58 companies participated in 2012.
36
“As a company we are aware of our social
and environmental responsibility. This respon
sibility is a part of the Tchibo Warszawa
business strategy. We have chosen this path
consciously and voluntarily. The 3E programme
is one of our key initiatives. It is based on a
unique cooperation with an NGO – the Environmental Partnership Foundation – that
reflects our concerns for the environment
and society, and consequently expands the
company’s competitive advantage along with
employee motivation.”
– Artur Starek, General Manager Tchibo Warszawa –
Czech Republic: A family-friendly company
From left: Lenka Šebelková, HR Manager
TCZ/TSK, Ludmila Müllerová, Minister for
Because Tchibo in the Czech Republic wants to ensure a healthy work-life
balance for its employees, in 2012 the company got involved in the ‘Family
& Work’ audit project initiated by the Czech Ministry of Labour and Social
Security (Grant from EU – Human resources and employment operational
programme). As part of the project, Tchibo in the Czech Republic was
analysed in all the relevant areas: corporate culture; working hours; pregnancy, parental and maternity leave; return to work; work management;
information and communication strategy; opportunities for personal devel
opment; financial and non-financial incentives; family services; and cultural management. The company did very well and received the Ministry
of Labour and Social Security’s ‘Basic Family & Work Audit Certificate’ in
January 2013. The certificate not only confirms the successful completion
of the audit programme, but also its active promotion of a family-friendly
personnel policy and social responsibility. After 18 months, a ‘Full Certificate’ will replace the ‘Basic Certificate’, provided all the formal and content
criteria of the audit continue to be met.
Labour and Social Affairs, Lenka Mašková,
corporate responsibility manager TCZ/TSK.
This project is the logical consequence of the Tchibo sustainability program in the Czech Republic. Employees from different hierarchical levels
met within the project and discussed their needs and viewpoints on this
topic. This project helps create a trusting and friendly working atmosphere
and involve employees in social activities.
37
“As a regional manager, a person who is in
daily contact with shop employees, I very
much appreciate the fact that people from the
Shops were included in the work-life balance
project. As ‘remote workers’, Shop employees
are sometimes neglected, but they are most
important for our business. I really liked the
fact that people from the office, management
and shop had the chance to meet and discuss their various issues. During the planning
phase many interesting ideas arose, which
are now to be implemented.”
– Klára Průchová, Regional Manager Tchibo Praha –
Hungary: Corporate Volunteering
‘20 Years of Tchibo – 20 Ideas for Volunteer
Activities’ is the title of the programme launched
by Tchibo in Hungary in 2011 to empower its
employees to support the local community.
Any employee who wishes to participate in the
program can use eight of their working hours
a year for volunteer work. Tchibo in Hungary
will even provide necessary tools such as
a computer or a car as needed. Information
about the planned projects is provided in
a booklet, which the company’s Corporate
Charity cook-off at a home for mothers
Responsibility Manager personally presents
at an event at the beginning of the year. In 2012, seven programs were carried out, in which 34 employees
participated with a total of 130 working hours. For example, a playground was set up, a kindergarten supported,
and a charity cook-off organised in a home for mothers. The volunteer work not only benefits the projects – the
company itself also benefits: colleagues work together in teams and get to know each other better. They take
action, use their creativity, and can contribute their newly gained experiences to the daily business routine.
► National subsidiaries ► Austria / Switzerland
The foundation stone has been laid: Sustainability
management in Austria and Switzerland
In Austria and Switzerland, Tchibo conducted a survey on sustainability and appointed people in
charge at the head office. In 2012, the international business units developed their first national
sustainability programmes, which they will begin to implement in 2013.
38
Austria and Switzerland are important sales markets for Tchibo. Similarly to the development in Germany, consumers
in these markets already have a strong awareness of the issue of sustainability, as well as for products that are
designed for resource conservation and easy recycling. Our stocktaking shows that corporate responsibility is
already reflected in various projects at Tchibo/Eduscho Austria as well as in Switzerland. Employees and customers
are regularly informed about sustainability-related activities.
Both international business units are actively engaged in environmental and climate protection. In Austria, for
example, head office and all Tchibo shops exclusively use green electricity; the lighting in the utility rooms and
toilets is controlled by sensors; and two video-conferencing systems have been purchased to reduce travelrelated CO2 emissions. In Switzerland, waste separation and recycling is well established at head office and
the Tchibo shops, and the sales team uses fuel-efficient vehicles. To avoid plastic waste, a water dispenser is
available to the employees in the office.
For 2013, both international business units have developed their own sustainability programmes to further
expand their efforts. Like in Eastern Europe, the programmes cover all relevant areas: the environment, employees, customers, society and communications. They sum up the current situation, define objectives, measures
and a timetable, and specify contact persons responsible for the issues.
Goals 2012/2013
Target: To develop and implement national management systems, we will create sustainability teams in the
following sales markets by 2015 and provide them with training: Czech Republic, Hungary, Poland, Romania,
Russia, Slovakia, Turkey, and Austria and Switzerland. These teams will work with our corporate responsibility
department at our Hamburg HQ to create and implement country-specific sustainability programmes with targets
and activities for continuously improving the company’s range of sustainable services. These will be in force
either throughout the entire Tchibo Group or will be added to the targets and activities that Tchibo puts together
for the separate national markets. The national sales organisations will develop their own targets and activities
for certain issues, in particular ones that relate to their own countries.
Goals in 2012
Status quo
Comment
Strategic integration of Tchibo Austria and Tchibo
Switzerland in sustainability management.
fully achieved
Sustainability officers were appointed
and added to the network. An inventory of activities was carried out
and sustainability programmes were
developed for 2013.
Definition of goals for 2013
Switch to electricity from renewable energy sources at the head office and the Tchibo shops (Switzerland).
Switch advertising materials and office stationary to FSC®-grade and/or recycled paper.
Participate in ‘Privat Kaffee’ promotions to support our childcare projects in Guatemala.
Step up external communications on sustainability, e.g. through country-specific adaptations of Tchibo’s
sustainability flyer, updating sustainability-related information on the national corporate websites (if available),
and increase visibility of the issue at POS.
39
Comprehensive switch to FSC® quality
One Tchibo wide target has already been implemented in both countries. At the end
of 2012, Tchibo/Eduscho Austria and Tchibo Switzerland were successfully certified,
and have since been authorised to use the Tchibo own label from the international
Forest Stewardship Council® (FSC®) on wood and paper products. It indicates that
their raw materials come from responsible forestry and that Tchibo uses environmen
tally friendly processes across its chain of custody.
The certification is now being put into practice throughout the whole company, from
the Purchasing department to Marketing and Corporate Communications. The first
steps have already been taken. All customer magazines and internal copying and
stationery, the employees’ magazine ‘smile’ and the current sustainability brochure
are to be printed on FSC®-grade paper.
“Digital media are a perfect complement to
print. But paper is and will remain an integral
information carrier. These activities are an
important contributor – as part of our overall sustainability efforts – to economically,
environmentally and socially responsible
forest management. The FSC® label is the
visible sign of this.”
– Manuela Schneider, Head of Corporate Communications
& Corporate Responsibility at Eduscho Austria –
40
Tchibo Sustainability Report 2012 | Coffee supply chain
Coffee supply chain
For enjoyment, the environment and social
compatibility: coffee from sustainable sources
To ensure that we can continue to offer our customers the best Tchibo coffee quality in future, we focus
not only on aroma and taste; we are also committed to environmental protection and improved living
conditions for coffee farmers and their families in the ‘coffee belt’ around the equator. On our way
towards a 100% sustainable business, our medium-term goal is to exclusively offer coffee whose
cultivation complies with environmental, social and economic requirements, and therefore provides
coffee farmers with a permanent livelihood. To achieve this goal, we have embraced a comprehensive
concept for further developing our supply chain and the entire coffee industry.
After oil, coffee is the world’s most important commodity. In Germany alone, 200 million cups of coffee are consumed
each day, nearly one-twelfth of the world‘s daily consumption. A continued rise in global demand can safely be
expected. Meanwhile, the way coffee is grown is becoming increasingly important for many consumers. One
indication of this is that between 2005 and 2011, German imports of organic coffee quantities increased by 167%.
Optimising conditions, safeguarding the future
Only economically, ecologically and socially sustainable growing methods can ensure the long-term sustainability
of coffee production. So taking responsibility for coffee cultivation means securing livelihoods in a double sense:
for our business, so we can continue to source high-quality raw coffee, and for coffee farmers, so that they can
earn a decent living for themselves and their families long-term.
Against this background, we are systematically developing our supply chains with the Tchibo Joint Forces!®
training programme, which we complement with long-term purchasing agreements. We also cooperate with all
internationally accredited standards organisations for the validation and certification of environmentally and
socially responsible coffee production.
Because most of the world’s raw coffee is produced on small plots measuring just a few hectares, in our overall
efforts to secure the core business we focus especially on getting smallholders and their families involved in
sustainable development. Knowledge transfer and farmers organising among themselves are important factors
in this. We therefore form industry-wide alliances to develop solutions for the economic, environmental and social
challenges in the coffee sector in partnership with all the relevant stakeholders. As part of our social commitment to
the principle of ‘helping people to help themselves’, we also offer educational and vocational services for the coffee
farmers’ families in an effort to initiate effective solutions to societal challenges at the source.
41
Into a responsible future: reaching smallholders,
cooperating with stakeholders
Tchibo pursues the medium-term goal of incorporating all the coffees it sells into its sustainability
concept. We see no alternative to this goal, because we can only guarantee the quality of our Tchibo
coffee grades in future if we help to safeguard the livelihoods of coffee farmers. By guiding them
towards sustainable practices, we can help them increase yields in an environmentally friendly and
socially acceptable way. This is the only way to ensure that a coffee farm can become an economic
success and safeguard livelihoods.
The majority (an estimated 80%) of the 25 million coffee farmers around the world are smallholders who usually
cultivate only one or two hectares of land. Their resources are as limited as their access to technology, knowhow and loans. This carries the risk that farmers use environmentally harmful and inefficient methods and don’t
know how to respond to climate change, which leads to soil erosion, a reduction in areas under cultivation, lower
yields, and lower quality. Farmers must therefore be empowered to increase yields in a sustainable way, so that
the land remains fertile or becomes fertile again. They need a basis for investing in more sustainable forms of
production, protecting the environment and taking social criteria into account. After all, without a change in the
economy towards more sustainable farming methods, they will lose their livelihoods in coffee in the long run and
be forced to switch to growing other crops.
Our goal: to safeguard coffee farmers’ livelihoods long-term
In our sustainability concept, sustainable coffee production means that current and future generations can
safeguard the source of their continued livelihoods in coffee cultivation long-term. In particular, this means:
• Coffee cultivation provides farmers’ families with an attractive source of income to ensure appropriate living
conditions long-term (economic sustainability).
• The ‘coffee farm ecosystem’ offers the necessary basics (water, soil fertility, etc.) to generate quantitative and
qualitative market-driven quality coffee (environmental sustainability) long-term.
• Strong social structures in the coffee farmers’ cooperatives create attractive local and regional framework
conditions for growing coffee. National and international laws are complied with (social sustainability).
In the medium term, we want to exclusively offer coffee that is produced in accordance with these criteria. To
achieve this ambitious goal, we are working on two levels to establish the necessary structures and programmes: first, directly on the ground in our supply chains, and second, across country borders and across the
industry in targeted initiatives and organisations.
Our approach: implementing the Tchibo ‘coffee sustainability concept’
In implementing our coffee sustainability concept, we focus on two points. On the one hand, we carry out direct
supply chain-related activities locally. Second, we pursue industry-wide efforts and participate in international
initiatives.
In our coffee supply chains, we work with our partners to implement comprehensive training programmes locally:
our Tchibo Joint Forces!® are each adapted to local conditions and requirements and can eventually lead to
accreditation or certification for the participating coffee farms. We are continually developing these training
programmes. We also sign long-term supply agreements for coffee grown as part of Tchibo Joint Forces!® At
the same time, we are increasing the share of coffee grades that are certified or validated according to the
requirements of the Rainforest Alliance, Fairtrade, UTZ Certified, Bio (certified organic) or the 4C baseline
standard. In 2012, they accounted for over 25% of Tchibo‘s raw coffee purchasing.
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On our way to sustainable supply chains – and to an
overall sustainable coffee industry – internationally
recognised standards and the organisations behind them
play an important role for us. All of them have developed
guidelines for the implementation of environmental and
social aspects in coffee cultivation, with differing emphases.
Regardless of their respective focus, all of the organisations
aim to safeguard the livelihoods of the coffee farmers longterm. The 4C Association plays a special role here as the
administrator of a baseline standard. By requiring that at
least one container of raw coffee must be provided by a
validated group, the 4C baseline standard promotes the
formation of organised groups of coffee farmers. These groups build awareness for sustainable coffee growing
– with the option of eventually taking the step into a certification system. At the same time, as a membership
organisation 4C provides a platform for the sector to jointly deal with sustainability-related issues.
The requirements of the various standards are largely aimed at overcoming conventional cultivation. However,
they do not take into account all aspects needed for an integrated evolution of the coffee sector. The transfor
mation process can only be successfully completed if, in addition to the validation and certification of coffee
farms, systemic aspects are also dealt with. These include access to financing, training in business skills, and
providing specific solutions and techniques for agricultural practice. All relevant stakeholders need to be involved
in addressing these aspects. In addition to standards organisations, these especially include smallholders and
their umbrella organisations, coffee traders, roasters, governments and governmental organisations.
That is why we work with the rest of the industry to support the formation and development of national and
international structures and processes that make sustainable coffee growing possible long-term. Among our
main activities are: establishing and expanding the Sustainable Coffee Programme (SCP), an initiative of coffee
roasters together with the IDH initiative; further strengthening the 4C Association platform; the launch of the
Initiative for Coffee & Climate for implementing tools to adapt to changing weather patterns; and the devel
opment of product category rules for measuring the carbon footprint GHG footprint of raw coffee. In addition, for
several years now we have been involved in the International Coffee Partners GmbH (ICP).
Our benchmark: how we measure our progress
Our goal is to integrate 100% of our raw coffee sourcing into our sustainability concept. We will have achieved
this goal when integrated programmes to sustain the livelihood of coffee farmers have been introduced and are
being implemented in all the regions from which we purchase coffee. We are currently developing and testing
these programmes both as part of Tchibo Joint Forces!® and in combination with the overarching initiatives and
organisations mentioned above.
Even if we see a need to supplement them with other programmes, coffee cultivation in accordance with a given
internationally recognised standard is an important step towards sustainability. Therefore, we define raw coffee
that is successfully validated according to the requirements of the standards organisations (4C compliant) and/or
is certified (Rainforest Alliance, Fairtrade, UTZ Certified, Bio) as being integrated in our sustainability concept.
We use the percentages of these coffee grades both as orientation in composing our ranges, and a key perfor
mance indicator for external communications. In 2012, they accounted for more than 25%.
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Our social responsibility efforts: supporting families, promoting education
In addition to our core business-related efforts, we also organise
education projects and assistance activities In our products’
countries of origin. Following the principle of ‘helping people to
help themselves’ we want to help to find solutions to social
problems locally. For instance, in our Mount Kenya Project, we
support women farmers and their families in four sub-projects:
water, education, livestock and building materials. We are
especially committed to supporting women because they do a
great deal of the work in coffee growing, but only participate in the
proceeds to a small degree. Our activities seek to improve the
living conditions of disadvantaged women and their children in the
project area in Kenya.
► Sustainable development of the coffee sector
Spotlight on: diverse commitment
to sustainable farming practices
Tchibo has set out to source, in the medium term, only raw coffees that are cultivated in accordance
with environmental, social and economic requirements, and thereby enable long-term sustainable
livelihoods for coffee farmers. This is the only way for us to ensure the long-term availability of the raw
coffee grades demanded by our customers. Together with experienced partners, and through various
programmes, we support coffee farmers and their families in the transition to sustainable forms of
agriculture, and contribute to the development of a sustainable coffee sector.
We offer our customers a range of high-quality Arabica coffees. The Arabica bean has an elegant, balanced
taste and promises maximum enjoyment. But we also use Robusta in our espresso coffees, to achieve the
‘typical’ flavour many people know from their Mediterranean holidays. High-quality beans - whether Arabica or
Robusta - are grown in developing and emerging countries located around the equator in the ‘coffee belt’:
especially in the Central and South American countries of Brazil, Colombia, Peru, Honduras and Guatemala as
well as in East Africa, mostly in Tanzania, Kenya and Ethiopia. We also buy raw coffee from Asia, primarily from
Vietnam, Papua New Guinea and India.
Achieving change together
To further establish and expand a sustainable coffee sector, we are continuing our commitment in the production
countries: through our own programmes as well as in collaboration with partners and other relevant protagonists.
We have intensified our range-related cooperation with all major standards organisations. In purchasing, we rely
on long-term cooperative supplier relationships with exporters as well as with raw coffee traders and coffee
farmers. In this way, we also seek to increase transparency regarding the path of the coffee – one of the main
expectations our stakeholders have of us – and to ensure compliance with environmental and social standards.
Above and beyond this, we also participate in initiatives that support coffee farmers and their families and/or are
promote improved conditions and the development of appropriate tools.
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Visible progress
In 2012, we made further progress on our way to a coffee range that is 100% integrated into our sustainability
concept: in 2012, more than 25% of the raw coffee we processed for the year came from farms that meet the
requirements of one of the standards accepted in our sustainability concept. In other words, they are either
certified and bear the Rainforest Alliance, Fairtrade, UTZ Certified or European Bio seals, or they meet the 4C
baseline standard. According to a study by Germany‘s Gesellschaft für Konsumforschung (GfK) research association,
in 2012 more than 50% of the certified sustainable filter coffee sold in Germany came from Tchibo.
Brazil, Guatemala, Tanzania, Vietnam:
Coffee & Climate Initiative
• Develop instruments for coffee farmers to adapt to
the impact of climate change on coffee growing.
• Develop training modules to train local trainers in
analysis and implementation.
Guatemala: Huehuetenango
• Establish 6 daycare facilities for the children of
migrant workers and seasonal workers during the
coffee harvest.
• Counteract illegal child labour.
• Provide meals and instruction in rules of hygiene.
• Pilot project for teens (focus age group 10-13 yrs):
host of seminars at 3 sites.
• Instruction in simple vocational skills such as
baking, jewellery making and other crafts.
Partner: Coffee Care Association
Guatemala: Chiquimula
Launched in 2013:
• Establish (pre)school care facilities for children of
seasonal workers during the coffee harvest at 6 sites.
• Improve the level of education by providing
year-round schooling at 18 local schools.
• Provide meals and monthly medical check-ups.
Partner: Save the Children
Kenya: Mount Kenya Project I und II
• Support for more than 1,000 farmer families in four
sub-projects: water, education, livestock and
construction materials.
• Expansion of the project to five other farmer
cooperatives on Mount Kenya: Gikanda, Mwirua,
Ndumberi, Tekangu and Thiriku.
Partner: Sustainable Management Service (SMS),
Partner Afrika, Rainforest Alliance
Other cooperations: Coffee Management Services,
Source Trust, Rainforest Alliance
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Colombia: Stepping Up from 4C to UTZ Certified
Colombia: Tchibo Joint Forces!®
• Create a matrix of shared and differing standards.
• Manual: Stepping up from 4C to UTZ Certified.
• Field-test the practicability of the manual with
80 farmers.
• Secure the availability of sustainable green coffee grades.
• Support farmers in gaining Rainforest Alliance
certification.
Papua New Guinea: Tchibo Joint Forces!®
• Secure the availability of sustainable green coffee grades.
• Support farmers in gaining 4C validation.
► Sustainable development of the coffee sector ► Sourcing sustainable raw coffee grades
Safeguarding sustainable quality:
concepts and collaborations
In the medium term, we plan to completely switch from conventionally grown raw coffee to grades that
are integrated in our sustainability concept. On our path to doing this we take action at two levels in our
direct supply chains. On the one hand, we have developed the Tchibo Joint Forces!® programme, which
links our company with coffee farmers and relevant stakeholders along the value chain. And on the
other, we work with all the internationally accredited standards organisations that credibly promote
sustainability in the coffee sector.
From the bush to the cup: Tchibo
Joint Forces!®
In Tchibo Joint Forces!®, we first and foremost
consider the different circumstances in the respective
growing areas, because we believe that a ‘one solution fits all’ approach is not enough. Many problems
at the origin cannot be solved solely by verification
or certifying farms according to accredited standards.
Instead a variety of measures are needed, flexibly
applied according to the different needs of the
individual countries and regions.
That is why we have developed a systematic approach in Tchibo Joint Forces!® Tchibo and the coffee farmers
work together, and involve relevant protagonists along the value chain: agricultural scientists, coaches, exporters
and traders, standards organisations and, where appropriate, governmental and non-governmental organisa
tions. Specifically developed modules address different needs in the countries of origin as we help effect a
long-term transformation of our supply chains.
We take great care in selecting our partners. This is true both for the smallholders in the salient regions and
for the traders, exporters, coaches and other protagonists we work with. We want to put the smallholders in a
position where they can act entrepreneurially and increase their efficiency. Only if they perceive the farm as an
attractive source of income will they continue to grow coffee, develop an awareness of and willingness to
practice sustainable farming methods, and remain our business partners.
Individually applicable to different countries and regions: the five modules
We have developed five modules for putting this into practice with our partners. The first module seeks to
empower smallholders to increase their productivity and therefore their yields long-term: through tutorials,
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materials and specific measures such as soil analysis or improving the resilience of coffee plants. The second
module encompasses coaching and materials on keeping accounts (income and expenditure), and the instruction
in management skills. The third module addresses quality assurance. This also includes appropriate measures
to stabilise the quality of raw coffee on the farm. The fourth module involves using software to digitally record all
agricultural activities of the ‘leading farmers’. This allows us to measure and assess the results of their activities.
This helps make decisions and their repercussions transparent and understandable for all project participants.
The sustainability activities are rounded off in module five with training in verification or certification standards.
One side effect is that learning the relevant skills can lead to the farms obtaining validation or certification. Module
five also includes the analysis of systemic problems, such as migrant workers taking their children onto the fields
with them in Guatemala. As part of Tchibo Joint Forces!®, we rely on long-term supply agreements with all
partners in the respective supply chain.
Guaranteeing minimum requirements:
cooperating with standards organisations
The internationally recognised standard organisations we work with aim to help coffee farmers improve their income
and living and working conditions, and to preserve nature. Each organisation sets its own priorities in formulating the
individual goals.
Rainforest Alliance
As one of the leading international environmental organisations, the Rainforest
Alliance has set itself the task of protecting key ecosystems such as the
world’s rainforests, and helping indigenous peoples to improve their living
and working conditions. In connection with the cultivation of coffee, this
means that the Rainforest Alliance is committed to environmentally and
socially responsible and economically successful, sustainable farming
methods. Coffee farmers receive Rainforest Alliance certification for three
years at a time. Their compliance with the rules prescribed in the standards
is reviewed each year by independent inspectors. For the coffee farmers,
certification means better access to buyers, more contract security, higher
income through better crop yields, and improved quality. In 2011, the number
of Rainforest Alliance Certified™ farms around the world was already at 250,000.
Fairtrade
For a product to display the FAIRTRADE label it must meet international
Fairtrade standards. The main goal of the organisation is to improve small
holders’ living and working conditions in the source countries. In particular, this
includes the payment of a guaranteed minimum price plus a bonus that is used
for community projects – e.g. education- or health-related projects. Fairtrade
also promotes sustainable farming methods. The Fairtrade certificate is
likewise valid for three years, and compliance with the standard is reviewed
annually by the certification organisation, FLO-CERT.
UTZ Certified
Since 2011, Tchibo has also worked with UTZ Certified. As part of the UTZ
Certified Programme, farmers are trained in the fields of business adminis
tration, social working conditions, and environmental management. The coffee
farmers are helped to work in a more successful way, to achieve higher yields
and therefore increased revenue. Certified farms are reviewed annually by
independent third parties.
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Bio-Siegel / Eco-seal
‘Bio’ coffee is synonymous with sustainable cultivation in harmony with nature.
Organic farming is characterised by the things as the use of natural fertilisers
and beneficial insects, and therefore keeps the soil permanently fertile. It contributes to preserving biodiversity and conserves raw materials. The ‘Bio’
eco-seal is based on the provisions of EU legislation on the production and
control of organic products (EU legislation on Organic Farming).
4C Association
Tchibo is a co-founder of the international 4C Association,
which unites producers, traders, roasters and civic society
groups around the world. The overriding goal is to improve
the organisation of coffee farmers as a prerequisite for
sustainable development in the coffee sector. A hands-on
approach is hoped to improve the producers’ living conditions and access to markets while also promoting
environmental protection. For instance, the farmers commit to continuously improving their farming methods.
Coffee farmers who have reached a defined level of sustainable production receive verification (attestation). This
allows them to sell their coffee as ‘4C Compliant Coffee’- raw coffee produced according to the criteria of the 4C
Association.
Our product range: share of raw coffee integrated into our sustainability
concept rises
In 2012, more than 25% of the raw coffee we processed met the requirements of our sustainability concept. This
means that it came from cultivation that meets our accepted standards (certified and/or verified as sustainable).
100% of the coffee used in our ‘Privat Kaffee’ range is already integrated in the concept: all varieties carry the
Rainforest Alliance Certified™ seal. The ‘Latin Bio’ product reflects ecological farming practices. In 2012, we also
became the first coffee capsule supplier on the German market to exclusively use certified coffee for our Cafissimo
capsules. It meets the requirements of either Rainforest Alliance Certified™ or of UTZ Certified. We are working
flat out to integrate Fairtrade in the segment. Since 2009, all the espresso-based coffee drinks served in our Tchibo
coffee bars have been prepared with FAIRTRADE-seal coffee. All the other coffee drinks we invite our customers
to enjoy at our bars are from Rainforest Alliance Certified™ farms. In the out-of-home business, we offer our
restaurants and commercial customers our ‘Vista’ Fairtrade-Bio doubly certified Espresso and Café Crèma product
range, as well as Fairtrade-labelled coffee and chocolate.
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► Sustainable development of the coffee sector ► Promoting sustainable trade: initiatives & co-operations
Strengthening producers:
cooperation at regional and national level
While global coffee consumption has risen steadily over the past three years, producers find themselves confronting more and more difficult circumstances, including the repercussions of climate change,
a lack of resources, and a lack of technical equipment. To ensure that tomorrow’s demand can continue
to be met, support at farm level alone is not sufficient. Many difficulties are institutionalised at regional
and national level. Therefore, we are tackling the challenge of winning the support of national govern
ments and institutions and helping them to contribute to the Sustainable development of the coffee
sector. Without their input, a sustainable development of the coffee sector will not be possible.
The challenges within the coffee sector cannot be solved solely by having farms verified or certified according to
the recognised standards. Our Tchibo Joint Forces!® programme is an important step to achieving improve
ments in the supply chains because it identifies gaps in the system and guides farmers toward achieving a sustainable production system.
All pulling together: strategic approaches and national strategies
For the sustainable development of the coffee industry as a whole, an entire spectrum of other, overarching
measures is needed. So to reach the world‘s 25 million coffee farmers and win them over for the principle and
necessity of sustainable cultivation, all stakeholders will have to pull together and be involved in collaborative,
broad-based approaches. This includes the relevant companies in the industry as well as government, related
industries, associations, trade unions and the social environment.
Optimising conditions on regional and national level
With this in mind, Tchibo takes action at regional, national and international level by actively participating in a
number of different, complementary programmes and alliances in the coffee sector.
IDH trading initiative: Sustainable Coffee Programme
With the goal of gaining – in addition to coffee companies – the support of national and regional governments,
NGOs and trade unions, and other institutions for sustainable coffee production, Tchibo, Mondelez (formerly
Kraft Foods), Nestlé and D.E Master Blenders (formerly Sara Lee) co-founded the Sustainable Coffee Programme (SCP). This programme is the coffee-sector programme of the Sustainable Trade Initiative (IDH), a government-sponsored organisation in the Netherlands. The aim is to increase the market share of sustainably produced raw coffee in the world from about 10% currently to 25% by 2015, and to reach 4.3 million coffee farmers in
this connection. Its key tasks lie in supporting the development of progressive coffee policies at national level in
the coffee-growing countries. Another important goal is also to issues that hamper sustainable development in
the sector across country borders as well – such as lack of productivity or improved access to finance.
The Sustainable Coffee Programme also supports the creation of transparent markets, strengthens the capacity
of local banks and advocates the introduction of risk-sharing mechanisms. In 2012, the implementation of this
strategy began with country-specific approaches in each of four countries: Brazil, Ethiopia, Uganda and Vietnam.
4C Association: a platform for sustainability in the coffee sector
The 4C Association not only sets baseline standards for responsible coffee growing, but also serves as a
platform. Besides Tchibo it has another 276 members, including coffee producers, traders, roasters, retailers,
NGOs, standards organisations and trade associations. The platform offers a way to deal with systemic issues
that contribute to the development of a sustainable coffee sector.
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At this point, the 4C Association works closely with the IDH-backed Sustainable Coffee Programme, which is
currently dealing with systemic issues in the sector. In addition to the topics mentioned above, this collaboration
is also about making the practical experiences gained with alternatives to the banned pesticide Endosulfan
available to the sector, and identif ying solutions to the discrimination of women in coffee growing.
Cooperation with various stakeholders in the coffee sector
Tchibo also involved in three other coffee-sector initiatives: International Coffee Partners (ICP), the Coffee &
Climate Initiative and the SAI Platform Working Group Coffee.
International Coffee Partners (ICP)
As a founding member of International Coffee Partners (ICP), which was established in 2001 as a joint initiative
of leading European roasters and raw coffee traders, Tchibo is involved in numerous projects in the countries of
origin of its raw coffee. Its focus is on smallholders and converting them from conventional to sustainable
farming practices. All activities are aimed at increasing the competitiveness of coffee farmers while taking
sustainability issues into account, and on improving their living conditions.
To achieve this, ICP takes action in public-private partnership projects with the involvement of non-governmental
organisations, donor agencies and government institutions in Latin America, Africa and Asia, according to the
principle of helping people to help themselves. Countries and projects are selected based on growing regions
where ICP partners source their raw coffee, and which are especially in need of support. The idea is to work with
the farmers, their families and communities to establish long-term functioning networks.
ICP promotes the exchange of knowledge amongst
smallholders, offers training in cultivation techniques
– such as the safe and controlled use of agricultural
chemicals – picking techniques, and dealing with
weeds. ICP also works on training and inspiring young
people to go into coffee cultivation early on, to prevent
overaging on the farms. The organisation supports
coffee farmers in financial aspects such as access to
loans, controlling costs, and the creation of business
plans. The insights gained in successful pilot projects
are incorporated into the programmes’ ongoing
development and are applied to other regions.
The monitoring and evaluation of projects reveals their impact on the various aspects of living conditions. The
success of the efforts can be seen in economic, social and environmental aspects. ICP has helped to consid
erably improve the farmers‘ productivity, which has actually doubled and tripled in some regions. The standing of
women has improved, due in part to the formation of women‘s groups, and in addition to optimised and improved
access to drinking water, farmers have received formal education on health-related issues such as information
on HIV/AIDS. It is also gratif ying to note that the farmers are working in a more energy and resource-efficient
way and are therefore reducing their carbon and water footprints. Between 2001 and late 2012, 14 ICP projects
had been completed, with five more ongoing in eleven countries. This means that to date, they have directly
reached 20,000 farmers and 160,000 household members.
Coffee & Climate Initiative
We are co-founders of Coffee & Climate, Coffee & Climate is an initiative by coffee companies and development
organisations that is – for a period of three years through August 2013 – investigating climate change and how
best coffee farmers can adapt to its local repercussions. The initiative’s approach combines proven cultivation
methods with scientific findings from climate research.
SAI Platform: Coffee Working Group
As part of the Sustainable Agriculture Initiative (SAI) Platform’s Coffee Working Group, we are working towards
an unambiguous and globally comparable carbon footprint for raw coffee.
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► Environment and climate
Environmental protection:
for top-quality raw coffee and high yields
Coffee is a valuable raw material. Its quality and quantity depend fundamentally on fertile soils, clean water
and suitable climatic conditions. To ensure that our countries of origin can continue harvesting raw coffee
in the quality desired by our customers in future, we pay attention to protecting the environment as well.
In many of the world’s coffee-growing countries, there is a lack of knowledge about the why and how of eco-friendly
farming methods – why they are beneficial, and how they are put into practice. As a result, coffee farmers use
environmentally harmful techniques. For example, they use the wrong dose of agrochemicals, or highly toxic
ones, or irrigate their crops excessively. Government counselling services are usually not available or inefficient,
so they don’t reach many farmers. To address these shortcomings, for over ten years Tchibo has worked with
trading partners and the above-mentioned standards organisations to close these gaps. The goal is to introduce
coffee farmers to environmentally friendly cultivation techniques that have proven successful in recent years.
Good climate for good coffee
With these aims in mind, we co-founded the Coffee & Climate initiative together with coffee companies and
development organisations. It was established for a three-year period from September 2010 through August
2013 and deals with the effects of climate change on coffee cultivation. Together, we are working to develop
solutions and tools that help coffee farmers find globally effective and locally adapted responses to climate
change. The initiative combines proven farming methods with scientific climate research findings.
The Coffee & Climate initiative is currently active in four pilot regions in Brazil, Guatemala, Tanzania and Vietnam.
The goal is to help 3,000 coffee farmers develop and test clearly understandable, practical methods and tools to
counter the effects of climate change, which can no longer be averted. In 2012, we were able to present initial
results and best-practice examples from our efforts in Brazil: we analysed the local effects of climate change,
developed future scenarios for the region, recruited organisations to support the farmers, drew up strategies for
adapting to changing climatic conditions, and tested and further developed a toolbox. With all these measures,
we laid important foundations for dealing with changing climatic conditions. We now plan to test and expand the
acquired insights and techniques in the projects of the other three pilot regions, so that the results can be passed
along to all the coffee-producing countries in the world. In this connection, the Coffee & Climate initiative is
currently in talks with various other organisations.
The carbon footprint of raw coffee
The Sustainable Agriculture Initiative (SAI) platform is the world’s largest food industry initiative that advocates
the development of sustainable agriculture worldwide. To promote implementation in the various sectors, the
SAI Platform coordinates six different working groups – including the Coffee Working Group, which is currently
developing a methodology to measure the carbon footprint of raw coffee. Tchibo is a partner of the Product
Carbon Footprint (PCF) project, which develops product category rules that are necessary for analysing the
carbon footprint of raw coffee.
The Product Carbon Footprint project adds together all the greenhouse gas emissions that accrue over a product’s
entire lifecycle or a certain section of its lifecycle. It therefore gives farmers and standards organisations in
particular guidance on how efficient and climate-friendly their raw coffee cultivation and processing methods are.
As part of developing the product category rules, we advocate establishing a universally accepted procedure for
measurement, classification and calculation. Based on this binding footprinting, we can then take the next step
by identif ying specific CO2-related weaknesses in the various production methods or regions, changing them,
and ultimately reducing greenhouse gas emissions in the cultivation and processing of raw coffee.
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► Environment and climate ► Biodiversity
Natural diversity safeguards our future
As a trading company that depends essentially on the natural raw material of coffee, we are especially
concerned about protecting the ecosystems at the origins of the product. We work with partner organi
sations to ensure that biodiversity in the countries of origin is preserved, because natural diversity is
the basis for the future of our business.
Coffee is a high-quality natural product that requires a vibrant, diverse ecosystem to flourish and thrive. We
therefore encourage the conservation of resources and the use of mixed cultures. Biodiversity plays a major
role in all of our environmental activities, as well as in the labelling organisations that work with us.
Preserving biodiversity, adjusting corporate objectives
With the aim of preserving biodiversity in its own value chains and beyond,
in 2012 Tchibo joined the Biodiversity in Good Company initiative launched
by the German Federal Ministry for the Environment (BMU) in 2008. The
initiative was established as a contribution to the international Convention
on Biological Diversity (CBD) and the German federal government’s
national strategy. It is a cross-sector platform for companies that are
especially committed to protecting biological diversity. Economic engagement in favour of biodiversity is system
atically promoted, and innovation and investment serve to make environmentally friendly technologies, products
and services marketable.
„With Tchibo we gain a new member
whose value chain is closely linked to
issues of biodiversity and ecosystem
performance, and who has been
committed to sustainable conduct for
many years. Tchibo‘s expertise is an
asset to our work.“
- Carolin Bossmeyer, director of the Biodiversity in
Good Company initiative -
When it joined, Tchibo signed a ‘leadership declaration’ in which we commit ourselves to integrating the preser
vation of biodiversity in our environmental and sustainability management and to pursuing appropriate goals and
measures. By cooperating with other pioneering companies from various industries, we seek to find solutions for
protecting biodiversity around the world. Besides exchanging information and introducing practical changes to
the entrepreneurial value creation process, this also involves building awareness for the issue among the public
and in the business sector.
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Strong partnership: working together to protect biodiversity
Agriculture plays an important role in biodiversity, because supplying the world‘s population with food claims
large areas of land that are sometimes very intensively farmed. At the same time, without biodiversity agriculture
cannot fulfil its task in the long term.
In the Rainforest Alliance, for example, we have found a partner committed to organic and sustainable farming
methods in the coffee sector. To promote productive and successful agriculture that also takes biodiversity into
consideration, the Rainforest Alliance teamed up with other organisations in the Sustainable Agriculture Network
(SAN) to develop a programme for certif ying farms. Based on this, measures to protect the environment are
being taken on 250,000 farms covering around 1.1 million hectares. For example, the use of herbicides and
pesticides are restricted and waste recycling systems are introduced. In addition, training measures and workshops are hosted for coffee farmers. One essential aspect of coffee production according to the Rainforest
Alliance guidelines are native shade trees that provide a habitat for other plants as well as animals, and prevent
soil degradation, for example by dehydration.
► Educational projects in the source countries
Improved living conditions: education as an
engine for sustainable development
Coffee farmers and their families are often exposed to difficult social conditions. As part of its social
responsibility efforts, Tchibo has its own projects in place to improve living conditions in the countries
of origin, especially through education- and vocation-related services. Based on the principle of helping
people to help themselves, our local partners organise training sessions, build or equip school buildings,
and develop education programmes. We organise fundraisers to support the development of local infrastructure, offer day-care options for children, and help with the purchase of resources and tools to
improve the income situation beyond coffee growing as well.
The Tchibo Mount Kenya Project
The slopes of Mount Kenya from the Nyeri region to Embu, a few kilometres south of the equator, are known as
an excellent coffee growing region and for the high quality of their Arabica beans. We know and appreciate this
and source some of the coffee beans for our ‘Privat Kaffee African Blue’ from there. Alongside tea cultivation,
the cultivation of coffee at higher altitudes is the main source of income for the people who live in this region.
Usually, however, the families cultivate less than one hectare of land. Under these conditions it is difficult for
them to adequately cover their basic needs. To improve their situation, the farmers therefore strive to form
cooperatives so they can work together on marketing the coffee grown for sale. The women, who are socially
disadvantaged compared to men, organise self-help groups to jointly ensure their families’ nutrition and their
children‘s schooling.
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Helping people to help themselves: support for the women farmers
Since 2009, we have actively worked to improve the
living conditions of farming families on Mount Kenya
and in doing this are focusing on supporting women.
We initially began with training sessions on sustainable
coffee growing and climate awareness, to prepare the
coffee farms for Rainforest Alliance certification. However, we noted that few women benefited from the
training. They have difficulties in providing for their
families throughout the year because they are not
given an equal share of the revenues from the sale of
raw coffee. They are traditionally entitled to the income from vegetable and fruit production and the livestock.
Following our decision to get more intensively involved in Mount Kenya, we carried out a feasibility study in 2010.
We surveyed almost 60 women‘s self-help groups, one in each catchment area of a raw coffee mill cooperative
(centres for processing harvested coffee cherries) to ask what targeted support they really wanted. In 2011, in
cooperation with the Organisation Sustainable Management Services Ltd (SMS) we launched the Tchibo Mount
Kenya Project based on the results of the study. We support over 1,000 women farmers In the Kirinyaga district –
and their families – in four sub-projects under the headings ‘water’, ‘education’, ‘livestock’ and ‘building materials’.
Managers from SMS and the non-governmental organisation Partner Afrika manage the project on the ground
with our support. The Rainforest Alliance has a seat on the steering committee and provides consultation on
environmental issues in particular.
The women‘s groups decided what measures would bring them the best benefits and should therefore be
implemented. As a result, they receive assistance in securing drinking water for their community, establishing
additional sources of income, which they can use among other things to enable orphans living with their families
to go to school, and assistance with the acquisition and keeping of livestock. They learn to optimise the farm’s
infrastructure and market their products better. Networking the various women‘s groups has proven particularly
important, as they now provide each other with mutual support. Thanks to the project, the women can increase
their household income and use the additional revenue to improve their families’ living conditions. The women
farmers decide for themselves how specifically the funds are used.
“The strength and energy with which the
women are working to improve the situation of their community are admirable.“
- Cornel Kuhrt, project manager, Tchibo GmbH Mount
Kenya Project -
Communication to build customer awareness
From mid-November to mid-December 2011, we also ran a promotional campaign, donating 45 cents to the
Mount Kenya Project for every pound of ‘Privat Kaffee’ sold. Customers were additionally given a free gift with
each pound purchased in the form of a special 55-cent ‚Mount Kenya‘ postage stamp that they could use to post
Christmas cards, for example, and at the same time raise awareness about the project. The promotion was very
successful and created a win-win situation. For the first time we were able to sell significantly more pounds of
coffee in a campaign that didn’t involve immediate price reductions – and more than 600,000 euros were raised
to be used for local measures in our Mount Kenya project. We used targeted communication measures to build
consumer awareness and provide information about the situation of the Kenyan coffee farmers and the Mount
Kenya Project - for example through blog entries, pictures and videos on the Tchibo project website.
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Successful expansion of the project in 2012
Last year we recorded significant successes and progress in the Mount Kenya Project. The planning of the water
supply for approximately 200 families has been completed and an eleven-kilometre-long water pipeline is under
construction from the river nearest to the village. The women farmers have been trained in animal welfare and
‘promoter farms’ were built where the women can receive further instruction in livestock, vegetable and coffee
farming, and learn to construct energy-efficient cooking stoves. Some women have already built stables for the
species-appropriate keeping of cattle. Business training was also conducted. Several participants have already
been able to put this knowledge into practice in specific business projects and are using the extra income to
send orphans to school full-time. Overall, an increase in the standing of women within the community can be
observed.
During 2011, the focus was exclusively on women from Baragwi (Mount Kenya Project I). In 2012 we extended
our commitment to the five other farmers’ cooperatives on Mount Kenya: Gikanda, Mwirua, Ndumberi, Tekangu
and Thiriku (Mount Kenya Project II) where we are now active with seven projects. They centre on several
construction projects involving wells, children’s classrooms (some for children with learning difficulties), a school
canteen, a youth training centre and a science lab at a girls‘ school. A coffee cooperative that simultaneously
established a dairy cooperative has also been given a refrigeration plant to prevent their milk from spoiling. We
will present the results of these projects in our next Sustainability Report.
Guatemala: childcare during the coffee harvest
In Guatemala’s mountain ranges, Arabica highland coffee grows at an altitude of up to 2,200 metres. During
harvest time, migrant workers and pickers harvest the coffee cherries by hand and live on the coffee farms with
their families. The children often accompany their parents on the steep, dangerous slopes and have no way to
attend (pre-)school during this time.
In 2011, we began with a pilot project in Huehuetenango, one of the main coffee regions, and established (pre-)
schools there during the coffee harvest season. Our activities centre on three basics: education, food, and
health. The children are given (educationally) care and supervision, receive two meals a day, and are kept away
from the dangerous slopes and from helping out with the harvest. They also learn rules of hygiene that help
reduce childhood illnesses and mortality. Together with our partner, the Coffee Care Association (UNITRADE),
we ran three day-care centres during the pilot phase from December 2011 to February 2012, providing care for
160 children.
For the 2012/2013 harvest season we expanded the
project to a total of six day-care centres in the region
and launched a pilot project for teenagers with
vocational training seminars at three sites. The
seasonal workers‘ teenaged children are in particular
danger of having to help with the coffee harvest,
crossing the line to illegal child labour. In our seminars, young people learn practical skills that promote
their independence and may result in additional small
sources of income - such as baking, craftwork and
carpentry.
In the Chiquimula region, the starting situation for the children of the harvest workers is about as critical as in
Huehuetenango. From 2013 onwards, we will partner with Save the Children to establish a training programme
here during the harvest season. Six childcare centres (CAIs) are being set up at schools near the coffee fields,
where children aged 2 to 13 will receive age-appropriate care and education, a balanced diet and monthly
medical examinations.
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The project in Chiquimula will also continue at 18 local
schools in the hometowns of the harvest helpers
during the regular school year. Once a week we will
enhance the school curriculum with ‘learning camps’
offering additional educational activities for pupils
aged 10 to 13. In addition, about 100 teachers are
receiving training, with Save the Children providing the
teaching materials. At information events, the project
staff tell parents how, for example, education can
improve their situation. The teaching programme is
being jointly further developed, and the CAIs are
actively advertised prior to the harvest season.
From April 2013, we will draw our customers’ attention to the situation of the children in Guatemala’s coffeegrowing regions with a special promotion. For each pound of ‘Privat Kaffee’ sold, we will donate 10 cents, raising
at least half a million euros for the education project.
► Future challenges
Our approach: sustainably shaping change
Due to the structure of the coffee sector, Tchibo and the industry as a whole face challenges that we can
neither solve quickly nor on our own. Achieving sustainable change in the coffee sector requires a great
effort by all relevant protagonists.
We are on the way to incorporating 100% of our coffee range in our sustainability concept. Many other companies
in the coffee industry have also recognised the need to commit to the sustainable development of global coffee
production. Together, we face the task of involving millions of coffee farmers worldwide, who have not yet been
reached, in the transformation of the coffee sector. Many of them do not farm more than a hectare of land. Often
they have very little or no education and absolutely no access to investment funds. Because they lack up-to-date
know-how, they do not know how to react to changing weather conditions, for example, or to practice sustainable
cultivation. They are often not organised and face these problems alone. To reach these smallholders, we need
to build appropriate structures and help them to organise themselves – into cooperatives, for example. By using
the newly formed structures to instruct them in how they can increase their income while reducing costs, we
create the economic preconditions for sustainable production methods that protect the environment and take
social criteria into account.
Joining forces to master complex tasks
The established standards don’t comprehensively cover all the aspects that are prerequisite to profitable as well
as environmentally and socially responsible coffee growing. Some of these aspects need to be tackled within the
farms, for example increasing efficiency, replacing coffee plants that are too old, or local adaptations to changing
weather conditions. Others need to be addressed outside the farms at regional or national level, such as access
to financing or the water policy.
Achieving improvements in all areas requires the joint effort of all relevant protagonists in the coffee sector:
coffee farmers and traders, standards organisations, development and non-governmental organisations,
business experts and roasters. That is why we work in industry and cross-sector networks, developing tools
to involve smallholders in sustainable development. National governments and institutions are also relevant
protagonists. One positive example is the government of the Brazilian state of Minais Gerais, which in 2013
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launched its own certification programme for the country’s largest Arabica coffee-growing area. This means that
an important step in the transition from conventional to sustainable farming can be effected from Brazil, too.
Tchibo supports the initiative and is the first international buyer of Arabica coffees produced according to the
‘Certifica Minas Café’ guidelines.
Of course the transformation of the coffee sector is associated with costs. This raises the issue of funding for all
parties – including Tchibo as a trading and roasting company – and especially for the measures on individual
farms. From 2013 we will work across all sectors to identify bottlenecks and seek solutions to enable coffee
farmers to obtain the loans necessary for the transformation process.
Because the small-scale structure still makes it difficult to trace a coffee’s origin to a specific coffee field,
increasing transparency also remains an important task for us. We see the expansion and intensification of
long-term supplier partnerships as one way to make our supply chain more transparent.
Social challenges in the countries of origin
Despite intensive international efforts, forms of child labour that are unacceptable by international conventions
continue to pose a challenge in the agriculture of developing countries, including in coffee farming. The children
of people who work in coffee farming usually live with their parents on the farms or move around with their parents
when they work as migrant labourers on the farms at harvest time. Some are so bound up in the farm work that
they are unable to go to school. The school holidays often coincide with harvest time - and because of fluctuations
in the weather patterns and climate change, the harvest season increasingly extends beyond the school holidays.
We don’t simply want to issue demands, but seek to create acceptable alternatives for the people affected. That
is why we work with our partners to develop (pre-)school care services, as in the growing regions of Guatemala.
They prevent the children from staying and/or working on the dangerous slopes. We hope that these pilot projects
will trigger the creation of lasting solutions at a political and social level.
Another challenge is that women farmers are socially disadvantaged in many coffee-growing regions. While they
play an important role, because they are responsible for many of the tasks involved in coffee cultivation, they
benefit comparatively little from the income from coffee sales, which traditionally goes to the men. This reduces
the women’s motivation to engage in coffee growing, especially as they have many other household tasks and
are responsible for the children. Our Mount Kenya Project showed that the women’s economic success and their
resulting higher contribution to the family income boosts their standing within the family and the community.
Beyond the specific project, we plan to work on a new training module for Tchibo Joint Forces!® that in the long
term will promote farmers’ understanding and help them look at the farm as a common small business entity in
whose success women also participate.
Last but not least, the farming population of some coffee-growing regions is showing signs of overageing. The
younger generation no longer regards coffee growing as attractive. Older farmers are becoming physically
weaker and hardly acquire any new knowledge. To secure the future of the farms and of our raw coffee grades,
we work to inspire and train young people for coffee cultivation at an early stage.
We realise that we cannot solve these complex societal challenges on our own. However, with the projects we
have described, we want to develop practical approaches that can have a broad political and social impact as
part of overarching initiatives and organisations.
Eco-friendly farming methods
Due to the coffee plant’s high requirements for an intact, stable environment, a wide range of environmental
aspects will continue to be a particular focus of our activities in future. They include soil health, biodiversity, and
water management. We also have our eye on the use of pesticides, and adaptation to climate-change-related
changes in the weather.
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One example: in the past, the pesticide Endosulfan was used in agriculture worldwide to protect plants against
harmful insects – in coffee farming, it mainly served to combat coffee berry borers and coffee leaf miners. But
Endosulfan is a highly toxic pesticide that is dangerous to human health and the environment, and therefore its
use and production have been prohibited worldwide since 2011. This ban is very much to be welcomed for
environmental and health reasons, but it causes problems for many coffee farmers because they lack proven
alternatives. The farmers run the risk that the quality of their coffee beans will suffer damage from pests. In
extreme cases, they find themselves facing losses that threaten their very existence. To help all coffee farmers
and especially large plantations that find themselves in this situation, transition periods were established. For
example, UTZ-certified farms in Brazil had until 1 July 2013 to phase out their use. As part of the Sustainable
Coffee Program, Tchibo is involved in an ‘Endosulfan project’ to rapidly develop an alternative that is compatible
with environmental and human health.
Large quantities of fresh water are still being consumed for the production of raw coffee. Here we are faced with
the challenge of conserving the valuable resource of water – given, among other things, a growing world population –
while achieving comparable efficiency in production. The Sustainable Agriculture Initiative (SAI) platform, whose
Coffee Working Group we participate in, has resolved to draw up the basics of a water footprint for raw coffee. This
step is planned for 2014, once a product category rule for the carbon footprint has been developed.
► Goals for 2012/2013
Goals 2012/2013
Key objective:
We have set out to achieve a complete switch from conventional to sustainable raw coffee cultivation. To achieve
this, we want 100% of the raw coffee used for our products to be transparently traceable to the field, and the raw
coffee will be at the very least validated according to the 4C baseline standard or comparable models (validated
as sustainable) and/or meet the requirements of the Rainforest Alliance, Fairtrade, UTZ Certified or Bio standards
organisations (certified sustainable). We have set the year 2015 as a first milestone on the way to achieving this
ambitious key objective. Until then, we will work towards achieving annual sub-goals.
Sub-goals 2012 – check
Status quo
Remarks
Launch a Tchibo Joint Forces!® project in Papua New Guinea to safeguard the availability
of sustainable raw coffee grades. The idea is
to support farmers in gaining 4C verification;
the project is planned for five years.
Interim
goals
for 2012
achieved
The project was launched in 2012 as
planned and supports farmers in obtaining 4C
verification. It will run until 2017.
Launch another Tchibo Joint Forces!® project
in Colombia. It is designed to support farmers
in gaining Rainforest Alliance certification;
the project is planned for three years.
partly
achieved
The project was launched in 2012 as planned
and supports farmers in obtaining Rainforest
Alliance certification among other things. It
is scheduled to run through the end of 2013/
early 2014.
Project level
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Status quo
Remarks
Successively implement the IDH Coffee
Program to increase the worldwide share of
sustainable raw coffee production from currently between 8% and 10% to 25% by 2015.
This will considerably increase the availability
of sustainable raw coffees on the bulk coffee
market.
partly
achieved
The conception of the programme was more
complex and elaborate than expected, so that
the contracts weren’t signed until the end of
the year, with implementation beginning in
2013.
Continue the Tchibo Joint Forces!® project
in Kenya to expand the share of Rainforest
Alliance CertifiedTM grades, with the aim of
entirely converting the sources of our African
raw coffee by 2015.
fully
achieved
The project was successfully completed and
the coffee farmers have gained Rainforest
Alliance certification. As a result, we were
already able to switch our African raw coffees
entirely to Rainforest Alliance certified grades
in 2012.
Continue the Tchibo Joint Forces!® project in
Vietnam to expand the share of 4C validated
grades with the aim of gradually generating
the raw coffee volume needed to completely
switch from conventional to sustainable raw
coffee grades in Robusta coffees.
fully
achieved
The project was continued as planned in
2012. It supports farmers in obtaining 4C
certification.
Continue the ‘Stepping up’ project in Colombia to develop a matrix showing the common
alities and differences between the 4C
baseline standards and the UTZ standards,
as well as a manual for farmers who wish to
evolve from 4C to UTZ, including field tests of
the manual.
partly
achieved
The „Stepping up“ project was continued. This
is the first process of this kind to develop standards for the coffee sector. We realised that
the process of reaching a political accord took
longer than we had expected. The project has
been delayed and won’t be concluded until the
end of 2013.
Starting in Q3/2012, switch our Privat ‘Origins’ variety African Blue from 30% to 100%
Rainforest Alliance CertifiedTM raw coffee.
fully
achieved
We have already achieved our goal of using
100% certified coffees for the ‘Privat Kaffee’
range: All varieties use 100% certified raw
coffees and carry the Rainforest Alliance seal.
Complete switch of all Cafissimo coffee varieties to 100% certified grades and commu
nicate this to our customers.
fully
achieved
Since 2012, we are the first coffee capsule
vendor in the German market to use only
certified sustainably grown coffee in our
Cafissimo capsules: the coffee used corresponds either to the requirements of the
Rainforest Alliance or of UTZ Certified. This has
also since been communicated to customers.
Project level
Product level
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Status quo
Remarks
Tchibo Mount Kenya Project: continue the
project launched in 2011 to strengthen the
role of women farmers in Kenya. Work with
women’s self-help groups to further advance the projects involving water, education,
livestock, and building materials. The Tchibo
Mount Kenya Project runs through 2013.
fully
achieved
In 2012, the project was successfully advanced in all four areas – water, education, livestock and building materials. We also expanded it to five additional farmer cooperatives,
where we are running seven projects. The
project will be concluded in December 2013.
Education and childcare project in Guatemala: Due to the increased demand for childcare
options, an expansion of the offer in Huehue
tenango is planned. In 2012, additional daycare facilities are to be set up.
As part of continuing the childcare project, we
are planning to launch another pilot project
with more targeted educational offerings for
10- to 13-year-olds.
fully
achieved
For the 2012/2013 harvest season, we have
expanded the project to a total of six day-care
facilities in the region. We have also launched
we a pilot project for teens involving training
seminars on practical skills such as crafts,
woodworking and baking.
Beyond this, we are partnering with Save the
Children to host a harvest-time educational
offering in the Chiquimula region as well from
2013 – six Childcare Centers (CAIs) will be set
up near coffee farms.
Educational projects at source
Sub-goals 2013
Project level
The Tchibo Joint Forces!® programme will be expanded. At least two new Joint Forces!® projects should be
launched.
Launch another Tchibo Joint Forces!® projects in Honduras (Ocotepeque and Intibucá region) to safeguard
the availability of verified sustainable raw coffee grades by helping farmers to gain validation for compliance
with the 4C baseline standards. The project is scheduled to run for three years.
Launch another Tchibo Joint Forces!® projects in Honduras (Trifinio region) to safeguard the availability of verified sustainable raw coffee grades by helping farmers to gain validation for compliance with the 4C baseline
standards. The project is scheduled to run for three years.
Start a 4C and Fair Label Organisation (FLO)/ Fairtrade benchmarking and stepping-up project with the aim
of creating a matrix on the similarities and differences between the standards; draw up a manual for farmers
who wish to evolve from 4C to Fairtrade, including field-testing it, as well as recognition of a Fairtrade certifi
cation as also being ‘4C compliant’ (benchmark). The idea is to eliminate the need for coffee farmers to carry
out another, separate paid audit if they want to market the coffee they weren’t able to sell as Fairtrade-certified as ‘4C compliant’.
Start a pilot project in Q4/2013 to test the suitability of the results achieved to date by the Coffee & Climate
Initiative as a module in JointForces!® while also testing its suitability as a module in a certification process.
As part of the Sustainable Coffee Program powered by IDH, Tchibo has committed to participate in the inter
national programme as well as the country programmes in Brazil, Vietnam and Ethiopia and to partially fund
them.
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Sub-goals 2013
Project level
To achieve our own company’s goals, the networks in the coffee sector will have to be further extended, and
the cooperation of everyone involved – including those outside the supply chains – further improved.
As steps towards achieving this objective, we have set the following specific goals for 2013:
• As a member of both the Coffee & Climate Initiative and the Sustainable Coffee Program, we will specifi
cally work to ensure that the initiatives cooperate with each other and the sector pulls together in seeking
responses to the negative impact of changing weather conditions on coffee cultivation. This includes integrating the standards organisations in this process.
• As a member of the industry initiative ‘Kategorie Regeln für die Messung des CO2-Fußabdrucks von Rohkaffee’ (Category rules for calculating the CO2 footprint of raw coffee’) we intend to integrate the standards
organisations into this initiative, as well as institutions in the origin countries. Also, the standard is to be
published in 2013.
• We will actively push for the coffee community to address other important topics, such as the water footprint and the role of women in coffee farming, as industry issues.
Product level
Increase the share of validated and certified raw coffee to 30% of the volumes we process in 2013.
The use of 100% FAIRTRADE-certified grades for all Grand Classé varieties in our Cafissimo range is being
prepared.
From Q2/2013: Expand and relaunch the Barista range. Barista Espresso and Barista Caffè Crema are now
100% Fairtrade-certified.
From Q4/2012: introduce ‘Mein Privat Kaffee’ made exclusively with 100% Rainforest Alliance CertifiedTM and
UTZ-certified coffee grades.
Tchibo Mount Kenya Project: The projects launched in 2011 and 2012 to strengthen the role of the women
farmers in Kenya will be continued. We intend to successfully complete the implementation of the projects in
2013 and to develop a concept for the follow-up.
Guatemala follow-up project (Huehuetenango region): Continue the pilot project from 2011/12: Run 6 day-care
facilities (CAIs) starting with the 2012/13 harvest season to provide childcare for the migrant workers’ children.
Beyond this, set up a new pilot project at three of the CAI sites: host seminars for teens (focus on 10- to
13-year-olds) with the idea of communicating simple vocational skills. Courses including baking, jewellery
making and crafts will be offered.
Guatemala Promo project (Chiquimula region): Set up 6 day-care facilities for the seasonal workers’ children
starting with the 2013 harvest season. The goal is to provide educational care to 540 children in the 6 daycare facilities during the harvest.
Beyond this, educational programmes for parents and pupils will be offered throughout the year at 18 local
schools. Teachers are also given training.
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Tchibo Sustainability Report 2012 | Consumer goods supply chain
Consumer goods supply chain
Our consumer goods supply chain:
anchored in the global economy
Tchibo collabo r ates with a global network of business partners and is committed to compliance
with social and environm ental standards in the extraction of raw materials for wood and textile
products, and in the production of our entire product line.
The liberalisation of goods and financial flows has led to a global division of labour in which individual countries
specialize in the area where they have a competitive advantage. Tchibo sources most of its consumer goods and
textiles from Asia, where they are often produced at very competitive prices. This international division of labour
can benefit all sides; however, only if it does not come at the expense of people and the environment.
As part of our on-going risk management and sustainability strategy, we critically examine our value chain to
identify problem areas and to develop solutions. The WE (Worldwide Enhancement of Social Quality) training
programme, in which we aim to include all of our strategically important production facilities, is core to our
activities. We engage with stakeholders on different aspects, including the protection of workers’ rights to join
trade unions and bargain collectively, living wages in Asian markets, as well as fire and building safety firstly in
Bangladesh. Our UmweltPlus concept takes a holistic approach to the environmentally friendly, resource-saving
and recycling-oriented design of our products.
“On the way towards a 100% sustainable
business, we embrace our responsibility
and commit to the continuous improvement
of social and environmental standards in
our global value chain.”
- Dr. Sven Axel Groos, Member of the Board for Non Food,
Tchibo GmbH -
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Key to the design and purchasing processes:
responsibility for people and the environment
Quality and variety are the hallmarks of our product line. Organised into weekly themes, we offer our
customers around 2,000 different products each year. As a retailer we bear the responsibility for where,
under what (working) conditions and with what impact on the environment our goods are produced.
Our goal is, thus, fair and environmentally friendly production, which involves greater transparency in
the value chain. Clear criteria in our design and purchasing process aim towards compliance with social
and environmental standards. The Tchibo Social and Environmental Code of Conduct (SCoC) is the basis
for cooperation with business partners and suppliers worldwide.
As part of the sustainability management of our supply chain we consistently strive for fair and environmentally
friendly production, and a resource-saving product design. To implement these goals we have developed concrete
measures and integrated these throughout the supply chain. In the context of the holistic UmweltPlus concept, for
example, we work on the sustainable design of our weekly themes. Herewith we set binding requirements for
environmental protection and resource conservation in the material selection for all product categories.
Laying the groundwork for supplier relations
The Tchibo Social and Environmental Code of Conduct (SCoC), which was developed in close cooperation with
stakeholders, forms the basis of all business relationships with the suppliers of our consumer goods and is part
of all purchasing contracts. Launched in 2006 as the Tchibo Social Code of Conduct, it was expanded in 2011 to
become the Tchibo Social and Environmental Code of Conduct. Herewith, all suppliers commit to comply with
blinding guidelines related to social and environmental standards in production. The SCoC is based on the core
labour standards of the International Labour Organization (ILO) and the UN’s Universal Declaration of Human
Rights as well as the ETI Base Code and SA8000. The guidelines include for example the prohibition of child
labour and compliance with maximum allowable working hours. Prior to signing any contract, we ensure that
potential production partners meet the conditions needed to fulfil our Code.
In a further step to promote transparency and safety in working conditions, we have reduced the number of
production sites which we source from in a socially responsible manner and are increasingly turning to reliable
and sustainable supplier relationships. At the existing production sites we have conducted fewer but more
targeted audits since 2011. During social audits, production sites are inspected, relevant documents - such
as employment contracts - are examined and employees are interviewed.
Improving working conditions through dialogue
Since 2007 Tchibo has expanded the WE (Worldwide Enhancement of Social Quality) training programme
as a way to achieve long-term improvement of working conditions in factories, particularly in Asia. Developed
together with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Federal
Ministry for Economic Cooperation and Development (BMZ), this programme focuses on one of the most
important factors affecting working conditions; namely, the relationships between employees and management,
as it is in this constellation where most labour standards are disregarded. Managers, workers, worker represen
tatives and buyers from Tchibo, supported by local trainers, work together to create concrete action plans for the
improvement of working conditions in the factories.
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Achieving more through joint initiatives
The WE training programme effects positive change at the factory-level. However, a true breakthrough in the
protection of social standards at national and international levels requires the joint effort of governments,
companies, employers and worker organizations, and NGOs. Therefore, we engage in dialogue forums, including the Ethical Trading Initiative (ETI), Social Accountability International (SAI), the Round Table Codes of
Conduct of the Federal Ministry for Economic Cooperation and Development (BMZ), and in the context of an
international Fire and Building Safety Accord for Bangladesh. We are convinced that practical solutions can only
be achieved through an effective dialogue between all stakeholders that builds mutual trust - both within production facilities as well as across industries.
Protecting the environment and conserving resources
On the way towards a 100% sustainable business Tchibo is working hard to minimize the impact to the environment
during production process. We examine the environmental impact of our products holistically, from the extraction
of raw materials to their eventual disposal. With our quality improvement process, UmweltPlus, we work to
make our products as resource-efficient and recycling-oriented as possible. In this regard, we have developed
mandatory basic requirements for the entire product assortment and integrated these into the purchasing
processes. An example is the prohibition of poly- and perfluorinated chemicals sometimes used to repel
moisture and dirt in outerwear.
In addition, we apply ambitious criteria to continuously increase the proportion of responsibly manufactured
products. In the textile sector, we work hard to promote environmentally and socially sustainable cotton cultivation,
applying various standards such as Textile Exchange’s „OE 100“. When it comes to using wood, we pay special
attention that the raw material comes from responsibly managed sources and categorically reject unwanted
sources. This also applies to the pulp that is used in our paper. We are aware that, due to broad and varied
product line that Tchibo offers, the path to full implementation is long. However, with the UmweltPlus concept
we have cleared that path and follow it steadily.
Improving living conditions through education
Our social commitment, guided by the principle of „self-help“, focuses on the regions of the world from where our
raw materials originate. For example, because many of our fabrics are made of African cotton we promote
education-oriented projects in Benin and Zambia to improve the educational opportunities of the children of
cotton farmers.
► Integrated supplier management
Increasing transparency through stable
and long-term partnerships
In 2011, we realigned our purchasing strategy. More direct business and fewer production facilities, as
well as the expansion of strategic partnerships, help to secure our competitiveness and meet our respon
sibility in the supply chain.
Tchibo is working to consolidate its pool of producers in a socially responsible manner and to increasingly rely
on the most important and best partners. A purchasing strategy that relies on solid partnerships and continuity,
allows for more transparency and certainty in the question of where and under what conditions our goods are
manufactured. By concentrating on fewer suppliers and factories, we can cooperate more closely with them to
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jointly achieve improvements in the areas of social,
environmental and quality standards, as well as in terms
of efficiency. We thereby strengthen our competitiveness
and that of our suppliers. Stable partnerships secure the
long-term capacities needed to guarantee high-quality
production and increase the flexibility in the planning
process. At the same time, the supplier is able to rely
on repeated orders and conduct longer-term planning.
Meeting obligations, correcting violations
In addition to the development of long-term partnerships,
the Tchibo Social and Environmental Code of Conduct
(SCoC) forms the basis of our cooperation with suppliers.
It defines minimum requirements for social and environ
mental standards in the production of our consumer
products. Social and political requirements, such as protecting the health of employees or conserving natural resources are firmly anchored in it. The SCoC is a mandatory
part of contracts with all suppliers and business partners. When suppliers violate the SCoC we urge them to
adopt corrective measures, the implementation of which we closely monitor. If the supplier does not initiate
improvement measures after repeated and serious violations, Tchibo ends the business relationship. For example,
we ended the relationship with a supplier in Bangladesh who repeatedly discriminated against union members, did
not comply with our appeal to respect Freedom of Association and would not accept any assistance.
Push from the outside, change from within
While we use independent social audits to regularly review whether the requirements of our SCoC are respected, we have found that their effectiveness is limited because they are momentary snapshots that can uncover
only clearly visible violations. Cases of discrimination, for example, often go undetected because it is difficult for
employees to report these to strangers. Therefore, we have conducted fewer but more targeted audits since
2011.
To achieve long-term, effective improvements and to empower workers, we increasingly rely on factory training
through our WE programme. The programme promotes dialogue between equal partners by bringing managers
and employees from the factories to the table with our buyers to jointly develop solutions for improving working
conditions.
More impact through international initiatives
When our engagement as a single retailer reaches its limits, we work together with other stakeholders for
industry-wide and cross-industry improvements. In 2012, we were the second company worldwide to join a
comprehensive fire and building safety agreement for Bangladesh that was initiated by trade unions and NGOs.
Through our engagement with various multi-stakeholder organizations, we support collective bargaining,
freedom of association, and the introduction of a living wage.
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“We see corporate responsibility as being
an integral part of our business strategy. In
the non-food sector, we are working hard to
align each step of our purchasing processes
with environmental and social requirements.
This helps our Sourcing Department to identify with the challenges we face, builds trust
with suppliers, and facilitates speedy and
successful implementation of the necessary
measures.”
– Christoph Honnefelder, Director Sourcing and Operations Non
Food, Tchibo GmbH –
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► Integrated supplier management ► Supplier qualification
Building trust through dialogue on a level playing
field
Less punctuated control, more on-going dialogue – Tchibo consistently pursued this approach in 2012
to improve working conditions and human rights in our supply chain. With the WE training programme,
Tchibo seeks to improve the relationships between employees and managers, and to empower them to
implement positive change.
We launched the WE (Worldwide Enhancement of Social
Quality) training programme in September 2007, in
cooperation with the Deutsche Gesellschaft für Interna
tionale Zusammenarbeit (GIZ) GmbH and the Federal
Ministry for Economic Cooperation and Development
(BMZ). With this programme, we aim to achieve far-reaching and long-term improvement of working conditions
and increased productivity in Asian factories. Instead of
merely pointing at violations from outside, we empower
employees and managers to improve the working condi
tions at their factories from within. The focus of the
programme is to establish an on-going dialogue between
a factory’s operational levels, from top management to
middle management to the workforce.
Local trainers, who receive intensive training and on-going coaching from five international consultants, are
responsible for the implementation of the WE training programme. We have worked with a total of 50 trainers
over the last 5 years, 44 of whom were under contract by Tchibo at the end of 2012. During workshops and
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factory visits, trainers coach managers and employees on how to better communicate with each other at work,
and how to solve conflicts and problems together. They guide the participants to independently develop and
implement measures for their factories.
Building trust
The dialogue that is initiated in the context of the WE programme builds mutual trust. The employees are
encouraged to voice their suggestions for improvement openly and work together with supervisors towards the
implementation. Managers become convinced that the dialogue process is a win-win solution, as they see that
rising employee satisfaction has a positive effect on productivity and product quality.
Addressing difficulties
In addition to promoting worker-manager dialogue, the WE training programme also provides a platform for
exchange between customer and supplier. By gaining better insight into the situations at the factories, Tchibo
can change its own processes for the benefit of producers. For example, we reduced the time needed for sample
inspection to allow more time for production.
„The WE project has enabled us to initiate
a profound change process throughout
our supply chain, from the empowerment
of workers to improved collaboration with
suppliers. Social standards and competi
tiveness are not mutually exclusive when
all parties work on both through dialogue.”
– Nanda Bergstein, Head of Vendor Relations Non Food,
Tchibo GmbH –
Measuring impact
The progress of suppliers is continuously tracked in the context of the WE programme. A detailed documentation
of all project activities and in-depth impact analysis demonstrate that the dialogue approach, rather than repri
manding, leads to concrete changes in the factories. The exchange between management and employees in the
workplace is developed and the overall communication structures are improved, which is an essential prereq
uisite for employees to address problems in the workplace. This has a positive effect on social indicators; for
example, regularly training on health and safety issues has led to a decline in the number of accidents. Wages
meet the minimum requirements and in many factories workers receive additional payments such as bonuses
and benefits. However, these mostly do not meet the level of living wages yet but we keep on working to improve
these also through multi-stakeholder initiatives.
The improved social standards also go hand-in-hand with an increase in economic benefits: both the productivity
and quality increased. The significant reduction of failed quality controls is illustrative of this relationship.
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Expanding qualification
In the last five years, 200 factories producing textiles,
household goods, decorative items and jewellery have
participated in the training programme in China, Bangladesh, Ethiopia, India, Laos and Thailand; 162 of these
factories have produced orders for Tchibo in 2012. We do
not continuously engage with every WE factory due to the
varying product assortment. In addition, in the course of
consolidating the pool of producers, we terminated the
business relationship in a socially responsible manner with
some factories. By the end of 2016, the programme will be
extended to all strategically important suppliers. Since the
expansion of our Code of Conduct to encompass environ
mental issues, we also plan to expand the training to integrate compliance with environmental standards.
Acknowledging and overcoming challenges
Despite these positive developments, we must also recognize the limits of the WE programme. The payment of
living wages and the protection of freedom of association for workers, for example, cannot be achieved solely
through training in the workplace. Rather, they need to be addressed also in the context of a broader social
dialogue. In this respect, Tchibo is collaborating with trade unions and non-governmental organizations on
improvements.
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► Integrated supplier management ► Risk management
Our approach: careful selection and targeted audits
Tchibo systematically addresses risks in the value chain of its consumer goods. Through regular
inspections of factories we check if social and environmental standards are being met. However,
we have found that the effectiveness of the inspections is limited, because they are snapshots of
the situation in a factory and, thus, are most effective at uncovering only the most obvious violations.
Sustainable improvements can only be achieved through ongoing efforts that originate from within
the factory. Thus, our strategy is to carry out fewer but more targeted audits and integrate existing
suppliers into our WE training programme. Still audits are used as a tool for selecting new producers.
The production of a consumer good usually includes many steps in various locations around the globe. As a
retailer we cannot eliminate all the risks in this global network, but we can identify and work systematically to
minimize them. Therefore, we have developed a risk management strategy to evaluate our supply chain.
Detecting and addressing problem areas
Taking into account quality, efficiency, environmental and social considerations Tchibo has set basic conditions
for the purchase of the products, such as safe and healthy conditions at the workplace. We try to identify reciprocal
effects; for example, better working conditions can lead to increased productivity as well as improved environmental
standards to higher product quality. Next, we identify points in the value chain where gaps between the defined
expectations and the reality persist, and then rank these in terms of their severity and our ability to influence
them. After analysing the causes of these gaps and defining strategic goals, we develop approaches to address
the problems and implement these.
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Case study: sandblasting
The treatment of jeans is an example of a problem area that we have identified. The sandblasting technique,
in which jeans are irradiated with fine sand dust, is sometimes used to achieve a worn look or vintage style.
This method presents significant health risks for employees because the inhalation of the fine dust can lead to
silicosis, a deadly disease in which the lungs are decomposed. When the health effects of sandblasting were
made public in 2009, Tchibo immediately raised awareness among suppliers about the health risks. Since 2010,
we have banned sandblasting in the garment production of clothing and only purchase from garment factories
that do not use the sandblasting method.
Case study: Sumangali Scheme in India
In another example of a problem area, NGOs uncovered that, in the Indian state of Tamil Nadu, girls and young
women are sometimes bound to their factories by illegal contracts and delayed wage payments. Factories promise
to pay women workers a bonus payment after several years of working. Since many Indian women want to use
this money as dowry, these illegal contracts are named „Sumangali“, meaning “the happy bride.” Often the young
women are not paid at the minimum wage rate, the bonus payment is withheld or they are hindered from leaving
the factory. The Sumangali Scheme is thus a form of forced labour and is contrary to the principles enshrined in
the Tchibo SCoC. Consequently, in 2012 we decided not to source from the state of Tamil Nadu. Since very little
had been produced there to begin with, this was identified as a socially responsible strategy. If in the future we
are interested in purchasing from a producer in the region, we would rely on close cooperation and additional
inspections to ensure these inhumane working conditions are not to be found at factories Tchibo sources from.
Inspecting and supporting suppliers
Before working with a production facility for the first time, we examine whether it is able to comply with our
quality and efficiency requirements, as well as with social and environmental standards. Tchibo staff visit the
factories, check documentation and test products. Compliance with social and environmental standards is
crucial: Tchibo will not order from a factory that fails to comply and is not ready to initiate improvements.
In addition, in countries where serious labour rights violations are widespread, we commission an independent
company to conduct social audits, during which factories are evaluated on all aspects of the Tchibo SCoC. Auditors
conduct a detailed inspection of the operation, including relevant documents such as employment contracts and
pay roll, and conduct interviews with employees. To avoid unnecessary redundancy with the audits of other
customers, we also accept other social audits, such as SA8000 certificates or BSCI audits that were rated „good“.
If violations are discovered during the social audit, we work with management to initiate corrective actions and
follow-up on their implementation, in line with our commitment to lasting improvements. An immediate termination
of the contract could threaten the very existence of a factory and the livelihood of its workers, depending on the
size of the operation and utilization by Tchibo. However, we will terminate the business relationship with a factory
that repeatedly and seriously violates the SCoC, or does not allow inspections to be conducted. When a “zero
tolerance” violation - such as child labour - is discovered during the first audit the production site is blocked for
Tchibo orders until the problem has been fixed and the factory complies with the SCoC.
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Initiating and expanding dialogue
Audits represent snapshots of the situations in the factories,
since they last one or two days and thus usually uncover
only the most apparent violations. Discrimination or violations of collective bargaining and trade union freedom
often go undetected because it is difficult for employees
to report these to strangers. Improvements in these areas
can only be achieved through an on-going dialogue that
builds trust. Therefore, we seek to expand our WE training
programme to all key suppliers and increasingly use social
audits only as a tool for the selection of new producers.
Tchibo as a direct point of contact
If a violation goes undetected, workers in the factories can also approach Tchibo directly. They can anonymously
reveal shortcomings or discrimination via mail, speak with WE trainers or confide in a non-governmental
organization. We are aware that much courage and knowledge (for example, of the communication channels) is
required on the part of employees to take this step of turning to Tchibo directly. In 2012, we received two complaints, one from Bangladesh and one from Pakistan. We know that this is an underrepresentation of the viola
tions at our suppliers.
When Tchibo learns of violations in this way, we pursue the complaint, possibly relying on information from social
audits or WE-training reports, drawing on external experts from NGOs and trade unions, or holding discussions
with employees outside the production site. During the investigation we provide regular updates to the complainant. If the allegations turn out to be true, we work with the factory to develop an action plan to eliminate the
problem. It is important that the complainant can remain anonymous at all times if (s)he decides so.
► Integrated supplier management ► Production
Our goal: fair working conditions
and environmentally sound production
As a retailer that works with suppliers in Asia, we embrace our responsibility for the continuous improvement of production conditions. With targeted measures, Tchibo works towards the compliance with
social and environmental standards in the manufacturing countries.
Many global companies, including Tchibo, source a large portion of their consumer goods from Asia. About
60% of our consumer goods are currently manufactured in China. In addition, Bangladesh is becoming an
increasingly important trading partner. Already, the country is the third largest market for textiles worldwide.
We source from manufacturing facilities in Asia‘s emerging markets and developing countries and therefore we
assume responsibility for the conditions under which our products are manufactured. We are committed to
improved living and working conditions in the manufacturing countries, and to environmentally sound production.
In 2012 we expanded our activities in Bangladesh and opened an office in the capital, Dhaka. The on-the-ground
presence allows us to closely monitor the implementation of quality, environmental and social standards at
supplying factories.
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Preventing accidents: fire and building safety
A key challenge for Tchibo is fire and building safety in
Bangladesh, where many textile factories do not meet
the international standards for construction and electrical
safety. Electrical wires are often not properly secured,
which can cause a short circuit or fire. Older factories, in
particular, are often repurposed residential buildings that
were not designed for industrial use, lacking emergency
exits and escape routes. Although fire safety laws exist in
Bangladesh, local authorities have not sufficiently ensured
that these are implemented.
In order to reduce the risk of fire for good, the authorities
must implement the legal requirements, and introduce
controls and sanctions. This requires on-site experts who can assess the condition of the factories’ structures
and electrical systems, and independent inspections to identify unsafe factories. A major concern of ours is
establishing an independent complaints body to which employees can report risks and dangers.
Nevertheless, accidents can even occur in factories in which all safety standards are observed. Therefore, it is
important that employees know how to respond in an emergency and practice this procedure regularly. In the
context of the WE programme, we carry out fire and evacuation training with the workforce and sensitize management to the critical importance of allowing employees to evacuate the workplace. Through our audits and
trainings, we examine whether escape routes are kept clear and sufficient emergency exits exist. Throughout our
efforts, we place particular emphasis on the involvement of employee representatives in risk prevention and to
serve as a point of contact for their complaints.
Building strong partnerships: fire and building safety in Bangladesh
Industry-wide improvements in fire and building safety can only be brought about through a joint, long-term
commitment from many international players. Therefore, in September 2012, Tchibo was the first German
company and the second company worldwide to join a comprehensive fire and building safety agreement for
garment factories in Bangladesh. In the agreement, which is supported by trade unions and NGOs, we commit
to providing a list our Bangladeshi suppliers to the signatories of the agreement, and to ensuring that health and
safety committees are formed in the factories. Together with the other signatories we will train employees, and
provide a forum for them to report health and safety risks. This is very much in line with our training efforts of the
WE programme. In the context of independent inspections, the agreement also requires signatories to cease
their business relationship with those suppliers who do not remediate risks despite repeated requests. In May
2013 additional companies signed the agreement. Now it comes down to driving forward the implementation
quickly and effectively in a broad coalition .
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“The fire and building safety agreement
is an important step but additional efforts are needed in order to improve
working conditions. These include the
protection of freedom of association
and collective bargaining rights, and the
development of solutions for living wages. This requires political and economic pressure”.
- Dr. Sven Axel Groos, Member of the Board for Non Food,
Tchibo GmbH -
Protecting freedom of association and collective bargaining rights
In cooperation with other companies and initiatives, Tchibo works to build trust between managers and unions,
and thereby strengthen the rights of workers. Workers should be able to form unions and exercise their right to
collective bargaining, and have the freedom to establish health and safety committees. To create the needed
dialogue structures, in 2011 we initiated and supported a mediation process in Bangladesh between producers,
the national employers‘ association of the clothing sector, the international umbrella organization of the textile
and clothing sector, and national unions. An early success of this dialogue was the occupational health and
safety training of workers by union members that took place in two factories in 2012.
Improving living standards through living wages
Most sourcing countries have established minimum wages by law but these are often so low that workers cannot
meet their basic needs and those of their dependents. Nevertheless, factories seldom pay more than the law
prescribes, believing that they have no other option due to the downward pressure on prices that arises from
international competition. Similarly, the governments of the sourcing countries shy away from raising the legal
minimum wages out of fear that they will sacrifice competitiveness.
Through a holistic approach, Tchibo is committed to the introduction of a living wage in production. The WE
programme creates an opportunity to increase wages at the enterprise level by improving working conditions,
which leads to an increase in quality and productivity, and also to higher profits.
Beyond this our influence is limited. As a single retailer we cannot always ensure that living wages are paid. An
industry-wide living wage requires the close cooperation of all stakeholders, with the aim of harmonizing wage
levels internationally. If living wages are required by law in all sourcing countries, no country or manufacturer
needs to worry about sacrificing competitiveness.
Achieving this goal requires the consensus of all relevant stakeholders. Therefore, Tchibo engages with multistakeholder initiatives such as the Ethical Trading Initiative (ETI), Social Accountability International (SAI) and
the Round Table Codes of Conduct. For the calculation of a living wage Tchibo acknowledges the recommenda
tions of the Asia-Floor Wage Campaign, an international initiative of trade unions and non-governmental
organizations that advocates for a living wage and decent working conditions in Asian production countries.
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Creation of a climate initiative to reduce CO2 emissions
Every product that we offer to our customers leaves a CO2 footprint. Up to 30 percent of a good’s lifetime CO2
emissions are released during the production phase. In order to reduce these Tchibo, together with eight other
major German retailers and brands founded the „Carbon Performance Improvement Initiative“ (CPI2) in 2011. It is
supported by the Federal Environment Agency (UBA) and the German Investment and Development Company
(DEG). CPI2 offers factories practical recommendations, based on an online analysis tool, for long-term energysaving measures and thereby for the reduction of CO2 emissions in the production process.
Often production facilities lack awareness of the impact that the production process can have on the climate.
Due to a lack of know-how they also may not recognize where they can reduce their energy needs. CPI2 analysis
has shown that often simple measures are enough to minimize the CO2 emissions; for example, a Bangladeshi
factory can reduce its energy needs by about 20 percent simply by changing the lighting. Since the start of the
initiative approximately 400 factories worldwide have attended workshops on energy efficiency in production and
expansion of the participating companies is planned.
Environmentally friendly production: support for suppliers
We want to reduce our suppliers’ overall environmental impact on the environment, beyond CO2 emissions. We
therefore support the joint initiative „Business Environment Performance Initiative“ (BEPI) under the umbrella of
the Foreign Trade Association (FTA), a European trade association. BEPI is an online-based self-assessment
with the aim of identif ying the hot spots of a company in regard to environmental pollution - for example, the
wastewater treatment in a textile factory. Based on these assessments, service providers develop solutions
together with the supplier to eliminate adverse effects on the environment. The implementation process is only
complete when the binding set of BEPI production standards has been met.
► Sustainable resources
Protecting the environment:
Responsible resource production
As a consumer goods company, we are responsible for ensuring that the natural resources we use in
our products are obtained in environmentally and socially compatible ways. Therefore, we increasingly
use cotton, wood and pulp from responsibly managed sources in our consumer goods.
Resources are becoming scarce around the world, and their prices are rising as a result. Population growth,
globalisation and their repercussions have necessitated a change in our treatment of natural ressources.
Therefore, this issue is becoming more and more important for Tchibo. An intact natural world is, after all, the
basis for our quality products: in addition to coffee we regularly offer cotton textiles and consumer goods made
of wood or pulp in our weekly changing ranges. So beyond social and environmental standards in production,
we have also defined requirements for responsible resource production and sourcing and include these in our
purchasing processes. We also work with partner organisations to promote the responsible production of
resources.
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Our most important natural fibre: cotton
Whether for T-shirts or tablecloths, cotton is the most
important and most popular natural fibre in textiles
production. Between 20 and 25 million tons of cotton are
harvested annually. In Africa alone, cotton cultivation is
the main source of income for more than 20 million people.
However, the methods used for growing the natural fibre
always have an impact on people and the environment.
Tchibo is committed to growing cotton in a way that keeps
the groundwater and rivers clean, and conserves soil
fertility and biodiversity. In 2012, the share of textiles
containing cotton from responsible cultivation amounted to
23% of our total cotton range, or 12.7 million sales units. In
2010 the figure was just 5.2%.
At this point, only a very small proportion of the world‘s cotton production comes from responsible sources. We
want this share to increase rapidly, so we are cooperating with several organisations and initiatives.
Textile Exchange: Organic cotton
Organically grown cotton currently makes up only about one percent of global
cotton production. By offering products that contain organic cotton, we increase
demand and promote cultivation according to ecological standards in the long
term. To ensure that the organic cotton in our products is actually grown organi
cally, we have them certified by independent institutes according to the OE 100
and OE Blended standards. These standards were developed by Textile Exchange, a global non-profit organisation. As a member of Textile Exchange,
Tchibo promotes the production of organic cotton worldwide.
Cotton made in Africa: responsible cotton growing in Africa
Cotton made in Africa (CmiA) is an initiative of the Aid by Trade Foundation. It aims
to improve the living conditions of African smallholders and promote cotton culti
vation that minimises harm to people and the environment. For instance, local
workshops are hosted where farmers learn efficient and more environmentally
friendly farming methods. This helps them to increase their yields while protecting
both the environment and their health. Recent findings indicate that the cultivation
methods taught by CmiA lead to significant reductions in greenhouse gas emissions compared to conventional farming. As of 2012, 435,000 cotton farmers in the
six countries - Benin, Burkina Faso, Ivory Coast, Zambia, Malawi and Mozambique
– have already participated in CmiA. Production from these farmers accounts for
twelve percent of Africa‘s total cotton production. Starting with the 2012/2013
cotton harvest, CmiA is cooperating with another 30,000 small farmers in Zimbabwe.
Tchibo has supported CmiA since 2008. As one of its largest customers, we used CmiA cotton in over two
million of our textile items in 2012. But Tchibo is not just a member of the ‘demand alliance’ – we also get
involved in the local communities to improve the education and thus the opportunities of the cotton farmers’
children, through targeted school projects in Benin and Zambia.
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Better Cotton Initiative: working together for people and the environment
Since February 2012, Tchibo has also been a member of the Better Cotton Initiative
(BCI). The BCI is a multi-stakeholder organisation that unites NGOs like WWF with
textile suppliers and cotton producers. Together, we want to reduce the negative
impact of cotton production: through eco-friendlier farming methods and better
working conditions.
In 2012, Cotton made in Africa and the Better Cotton Initiative agreed a collaboration that will enabe organisations
to create synergies in cotton cultivation and cotton marketing. Specifically, this means expanding the marketing
area, information sharing about eco-friendly and efficiency-boosting cultivation methods, etc.with the aim of
further increasing the benefits to cotton farmers.
Responsible forest management
Forests absorb climate-damaging CO2 and are as important for global water and material cycles as for the
conservation of biological diversity. We are committed to responsible forestry so that the world’s forests will
continue to be available to future generations.
FSC®-certified: wood and paper products
The Forest Stewardship Council® (FSC®), a non-profit organisation, awards an
accredited seal for wood and paper products that come from responsibly managed
forests. Independent institutes check that each company in the ‘chain of custody’
complies with the strict FSC® standards. It defines several principles that protect
the forest ecosystem and the living and working conditions of local people. For
example, the rights of indigenous peoples living there are given special consideration.
For more than 10 years now, all Tchibo garden furniture made from tropical or
boreal wood has been certified in accordance with the rules of the Forest Stewardship Council. In 2013, the proportion of FSC®-certified products will be further
expanded.
Forest Tracing Standard: proof of legal wood procurement
For our non FSC®-certified wood, in 2008 we developed our own standard, the Forest Tracing Standard (FTS),
with the support of WWF. It stipulates that our suppliers have to prove the origin of the wood. In this way we
make sure that neither wood from overexploited areas nor protected wood species are used.
Wood is also the raw material for pulp and paper. Therefore, it is also important to exclude undesirable sources
in paper and paperboard, which we use, for example, in our product packaging. These are often recognisable
from the ‘mixed tropical hardwood’ that can be found in a microscopic analysis of fibres. For this reason, our
sourcing contracts contain a clause excluding mixed tropical hardwood. As a next step, together with a number
of partners we are planning to set up a wide-ranging quality assurance system to this effect and are reviewing
the possibility of FSC® certification for the already low virgin-fibre content of our packaging.
Global Forest and Trade Network: cooperation with WWF
Since 2011, Tchibo has been a member of the Global Forest and Trade Network (GFTN), in which manufacturers
and trading companies cooperate with WWF in the area of wood and paper. Products from critical sources are
identified and excluded, and the proportion of credibly certified products is steadily increased.
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► Sustainable resources ► Biodiversity
Safeguarding the future: Biodiversity
Biodiversity is essential for the future viability of our business. We therefore work intensively with
partner organisations to preserve biodiversity. The focus here is on the origin of our products.
Biological diversity in the ecosystem is essential for high-quality natural products – such as coffee, cotton and
wood – to grow in sufficient quantities. In order to support the conservation of biodiversity beyond our company
borders, in 2012 we joined the ‘Biodiversity in Good Company’ initiative. It was launched in 2008 by the German
Federal Department of the Environment and is a cross-sector platform for businesses that are especially committed
to the protection and sustainable use of biological diversity. By signing a ‘leadership declaration’ we have
committed to integrating biodiversity in our environmental and sustainability management. We work with other
pioneering companies from various industries to develop solutions for protecting global biodiversity, so as to
bring about practical changes in the value chain. We also support the initiative in building awareness for the
issue across the business sector, through publicity and dialogue
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BIONOS research project: process optimisation in the supply chain
To further reduce resource consumption and its environmental impact in our value chain, from 2009 to 2011
we participated in the BIONOS (Bionic for optimising supply chain) research project as a practice partner. The
collaborative project was sponsored by the German Federal Ministry of Education and Research (BMBF) as part
of the BIONA innovation programme, and led by the Institute for Transport Planning and Logistics at the Technical
University of Hamburg-Harburg. Other partners were the Faculty of Economics and Management at the Technical
University of Berlin, and the Institute for Ecological Economy Research in Berlin (IÖW).
The project partners jointly worked to identify and review possible solutions for the more resource efficient
management of global value chains in the economy. The formation of analogies was the key methodology used –
that is as part of the project, biological systems were identified that have functions analogous to the company’s
value chain. Based on their respective operating principles, measures were then derived and put into practice.
For example, in the biological ‘value chain’ of the honeybee, there are organisational principles that help to solve
organisational challenges. As part of the project, these principles were transferred to Tchibo. Company-related
courses of action were then derived and turned into concrete measures, which were then prioritised. Tchibo is
currently testing one of the top-priority measures – the construction of innovative, overarching information networks. The aim is to use this network to directly convey information that is directly relevant for implementation
as quickly and effectively as possible to a large, heterogeneous target group in the supply chain.
► Integrated range management: UmweltPlus
From raw materials to packaging:
product ecology for our consumer goods
The aim of our integrated ‘UmweltPlus’ concept is to systematically evolve the more than 2,000 products in our consumer goods range in terms of their environmental aspects. For all product groups, we
have compiled product ecology standards on a total of five levels of development, from basic requirements
to innovations. Documented in product profiles and integrated into Tchibo’s quality manual, they provide
a framework for action and guidance for buyers and quality managers, as well as for marketing.
What environmental impact do our products have in their production, use and disposal? And how can we
efficiently reduce this impact in all product groups? This question is not only of great importance for us, but also
for many of our stakeholders. With this in mind, we have developed a new tool for range development and risk
mitigation: ‘UmweltPlus’. The tool enables an ongoing optimisation of the environmental qualities of our various
consumer goods.
Our approach: reduce environmental impact at the product design stage
As a first step, we divided our range of consumer goods into product groups based on the resources or materials
that we mainly use: for example, Cotton, Leather and Wood. One of the exceptions in this system is the Electrical
Appliances product group, because in addition to materials, in this group energy consumption also has a
significant environmental impact.
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For each product group we did lifecycle analyses to identify the ‘hot spots’ of their environmental impact, and
then examined how – with what requirements – these could be reduced at the product design stage. We have
classified the requirements and related measures according to their level of requirements in a five-step criteria
catalogue that we developed. In developing the list of criteria catalogue we also focused on practical feasibility
and availability in our supply chains, as well as the particular use in the mass market. The following sample
diagram illustrates our approach:
Level
Explanation
Examples (excerpts)
Basic requirement
Minimum standard for Tchibo quality
‘Wood ‘product group:
meets FTS standards
Level 1
Slightly higher standard
‘Cotton’ product group:
cotton produced in accordance
with the Better Cotton Initiative
Level 2
Much higher standard
certified organic cotton
Top Performance
Highest standard in the mass market
GOTS-certified textiles
Innovation
Would be new to the mass market
textiles with IVN natural textile seal
Once adopted, the basic requirements are immediately integrated into Tchibo’s quality criteria and become
mandatory for all products in this category. The higher-standard profiles give everyone involved a framework for
upgrading the product range and serve as the starting point for adopting range strategies and objectives on our
way towards a 100% sustainable business.
Putting UmweltPlus into action: specific examples
We have compiled various criteria for the ‘Cotton’ product group in the textiles sector regarding the selection
of raw materials. For instance, we are currently reviewing the feasibility of using the exacting ‘GOTS‘ (Global
Organic Textile Standard) in our ranges.
One basic requirement in the production of our denim textiles is a ban on sandblasting, because processing
fabrics with fine sand dust involves significant health risks for workers.
For packaging made from pulp, we exclude paper or cardboard from undesirable sources by banning nonFSC®-certified mixed tropical hardwood.
In the field of rainwear and other weather-proof textiles, our basic requirements include not using polyfluorine
chemicals (PFCs). Instead, we work with structurally water-repellent materials such as ‘Bionic Finish Eco’.
For products that use electricity, we increase their energy efficiency to reduce their energy consumption while
they are used by our customers. For example, for outdoor LED lighting products, we offer solar-powered models
with very few exceptions. For devices with energy labels, we use the best energy efficiency class wherever
possible.
As part of UmweltPlus, we ensure and increase the recyclability of our products, e.g. through rules for plastic
products. We mainly use mono-materials and where this is not possible, only recyclable combinations of
materials.
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„With UmweltPlus, we have developed a
management tool that reflects the diversity
of our consumer goods range while also
facilitating the systematic evolution of
Tchibo’s Non Food products towards
greater eco-friendliness.“
- Stefan Dierks, category leader CR & Product Strategy -
In the works: higher development stages
With the launch of UmweltPlus in 2011, we began to systematically integrate product ecology in our consumer
goods ranges. We will continue to advance this process, continually developing the product-ecology standards
for our consumer goods and textiles. In 2012, we defined UmweltPlus basic requirements for the majority of
product groups, and they are now being implemented. In the next step we will specify higher standards and
goals across the entire range. In the Cotton, Wood, Paper and Electronics product groups, we are already
regularly implementing the higher-level criteria. However, there are also product groups where the definition and
implementation of basic requirements is still pending – for example, Glass/Ceramics and Jewellery. The project
team is currently working hard to ensure that these standards can be adopted in 2013.
The environmental requirements for the product groups are developed on an ongoing basis, using a process
specifically set up for this purpose. For each product group, project managers are appointed who coordinate the
activities of a team of quality, marketing, purchasing and sustainability experts. This team practices systematic
issues and quality management to ensure that the UmweltPlus requirements for each product group are conti
nously developed and kept up to date.
The product- and range-related marketing statements regarding the requirement profiles are specified and
standardised on UmweltPlus factsheets based on these requirements.
In our sights: integrated change
The product ecology of textiles is determined not only by the materials and equipment that are used to produce
certain traits. The use of chemicals in production also plays a significant role. Therefore, as a next step we want
to examine to what extent we can determine standards for the composition of the dyes and chemicals used in
the production process. We also plan to further ecologically upgrade our packaging and will develop a step-bystep plan to achieve this.
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► Educational projects in the source countries
Creating opportunities:
education in Benin and Zambia
Important raw materials for many of our products come from developing and emerging countries, where
is often a great need for social and environmental action. As part of its core business, for example,
Tchibo is committed to the spread of responsible cotton cultivation. Beyond this, as part of our corporate
social responsibility efforts, we sponsor educational and vocational projects and support local communities.
In doing so, we work with established partners.
Many of our textiles are made of cotton grown in Africa. Since 2008 we have supported the Aid by Trade Foundation’s
‘Cotton made in Africa’ initiative, which is based on the principle of helping people to help themselves. The project
involves farmers learning efficient and more environmentally friendly farming methods. This empowers them to
increase their yields of high-quality cotton, earn more income, and improve living conditions for themselves and
their families. In 2012 435,000 smallholders in Benin, Cote d‘Ivoire, Mozambique, Malawi and Zambia participated
in the programme. Since November 2012, the initiative has also worked in Zimbabwe. Tchibo supports the
initiative in its core business by buying the cotton for our range. As part of our social commitment, we also
sponsor two education projects in ‘CmiA’ growing regions in Benin and Zambia. Education is an essential key
to sustainable development - and therefore, for better living conditions for smallholders.
School project in Benin
In July 2010, we launched the Co-Education school
project in Benin, in partnership with the Aid by Trade
Foundation, the German Society for International
Cooperation (GIZ), the German Investment and Devel
opment Company (DEG), the cotton company I.C.A.
and a local Cotton made in Africa farmers’ foundation.
The West African Republic of Benin is one of the poorest
countries in the world. Around 60% of its inhabitants are
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illiterate and many children lack access to education. Their families cannot afford school supplies and uniforms.
Many communities don’t even have a school. And where there are schools, they often don’t have enough
equipment. Tchibo has therefore set out to improve the educational infrastructure and quality of teaching and by
constructing and equipping schools in six communities located in the CmiA growing region – together with its
project partners.
„In the past, many children in my village didn’t go to school, but now
a lot of children go to school with me.“
– Idrissou, a schoolgirl from Benin –
Since the start of the project in October 2010, the local project team has already achieved a lot: the six wells that
were planned have been built, 20,000 school uniforms have been distributed and 10,000 school books ordered.
There are already three times as many school gardens as originally planned: 28 school gardens (instead of ten)
that now grow fruit and vegetables for the school canteens. Two of the seven school buildings planned were
completed in November 2012 in the communities of Souassararou/Pehunco and Firou B/Kerou. Three more
school buildings are under construction, and completion is scheduled for the second half of 2013. Seven out of
the ten planned school canteens are already providing students and teachers with food. Material for the construction of 66 additional canteens has been distributed.
But we are not on schedule with all the measures: construction of the other two schools has been delayed
because sites for them have yet to be determined. A feasibility study on equipping three schools with solar power
was only just received in May. The distribution of another 10,000 school uniforms is still pending, as well as the
establishment of the other canteens. These delays arose because not everything went smoothly in the cooperation
structures. However, Tchibo and its project partners have responded. For instance, we have now transferred the
project management from a service provider to the DEG. With the DEG, we have a local partner who has extensive
experience and expertise in project management.
School project in Zambia
Like Benin, Zambia in Southern Africa is another of the poorest countries in the world. The country neglected
cotton cultivation for a long time, but Zambia’s temperate climate offers a future for small farmers. The CmiA
initiative is active here as well and is helping the farmers increase their income and sales opportunities. Since
January 2012, Tchibo has been committed to improving living conditions with a school project in Zambia as well.
Together with the Aid by Trade Foundation, the DEG, and the cotton company Cargill we are thereby giving more
children access to education.
The project implementation is already well underway: the construction of five schools including sanitary facilities
has begun; completion is scheduled for June and July 2013. The furniture for these five schools has already
been ordered so that the building can be put into operation promptly once construction is complete. Three other
schools will be built once their site selection has been finalised as part of the planning process in 2013. We also
plan to renovate two schools. Six old wells are to be repaired and ten new ones built. Some of the wells are
already under construction. On the roofs of the schools, solar systems will be installed at the end of the construction phase. Similarly, after the completion of construction, eight school gardens will be created.
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In focus: daring to innovate
Recent developments in the production countries have raised new challenges for the consumer goods
industry. At the same time, in many areas – and despite decades of commitment by various stakeholder
groups – no satisfactory results have been achieved - such as in building safety and fire protection,
wages and freedom of association. To meet these challenges, Tchibo has explored new paths and is
testing future-proof approaches in cooperation with other responsible bodies. We are well aware of the
complexity of the situation and promise no quick and easy solutions.
Transparency in the value chain
We offer our customers a weekly changing range of consumer goods. To do so, we work with a worldwide
network of suppliers and business partners. One of our major challenges in the value chain is to achieve
transparency regarding the origin of products and the working conditions under which they are produced. This
is because our suppliers don’t always produce everything themselves, but in turn have their own networks of
suppliers. This makes it difficult for us to be able to trace the origin of products and their components. Globali
sation has made production control even more complex, as there are many intermediate steps and suppliers in
the value chain. Each product category requires different production processes, which are often performed by
different producers. Even a simple item of clothing requires the production of cotton, yarns, fabrics, zips and
buttons. With most electronic equipment, the supply chain becomes even more complex.
In order to gradually gain an overview of the supplier network and the production process we start at two points.
First, the origin of our products - the sourcing of raw materials. We are gradually expanding the share of sustainable
materials used in our range, such as organic cotton or FSC®-certified wood. This goes hand in hand with proof
of the origin of the raw materials, so that we can better track them in our supply chain.
Secondly, we have developed a comprehensive supplier management system that we use to manage collaboration
with the producers who supply us directly. A key element in this is the development of stable and enduring
partnerships, to create the foundations for more transparency and security in our supply chain. To build trust and
achieve improvements in working conditions, we are gradually including all of our strategic suppliers in our ‘WE’
qualification programme. In the WE programme, we are deliberately empowering suppliers to take responsibility,
both towards their employees as well as for their own supplier. As they meet their responsibilities, responsible
conduct gradually progresses further across in the supply chain.
We know that we can only increase transparency in the value chain of our products step by step. We still do not
have an overview of the origin and production of many components of our products. But the positive experiences
from our WE qualification programme and our efforts at the origin of the products encourage us to continue in
our efforts to assert social and environmental standards further into the supply chain.
Building safety and fire prevention in Bangladesh
Many factories in Bangladesh do not comply with basic fire safety and electrical standards, so that fires and
accidents repeatedly occur. Tchibo sees this lack of precaution as a significant risk for workers. Therefore, as
part of the WE programme, we are building awareness for the necessity of fire protection among management
and employees and provide training in fire prevention and evacuation. We check emergency routes and exits
during our on-site audits. However, as fire protection is an industry-wide problem, cooperation between public
authorities, employers, trade unions, NGOs and international buyers is needed to fundamentally increase safety.
In September 2012 we became the second company in the world to join a fire protection programme for Bangladesh,
which many other companies joined in March 2013.
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In order for this fire protection agreement to be properly effective, all signatories must jointly push forward its
implementation. We know that our signature alone doesn’t make changes happen. The actual work under the
agreement has only just begun. In the factories, the task at hand is to build awareness for the issue among the
management and employees, carry out training, and set up task forces. In this way, we intend to initiate lasting
changes in the factories, which will continue even after the end of the programme. At an overarching level, we
are working together to build local expertise and structurally embed control and sanction mechanisms in the
country. We will closely monitor this process, especially with our new office in Dhaka, which opened in 2012.
Violations of collective bargaining and trade union freedom
If workers can exercise their right to freedom of association they have the chance to influence their working
conditions themselves. For example, they can negotiate with factory owners and employers for higher wages
and better workplace safety. In many Asian production countries this human right is restricted. For instance, in
China there is no legal right to freedom of association as we understand it. In Bangladesh, there is collective
bargaining and freedom of association, but in reality unionists are discriminated against and severely restricted
in their work. And in most other Asian countries, too, no dialogue has been established between employers and
employees.
Just like inadequate building safety and fire protection, violations of collective bargaining and freedom of
association are a problem that cannot be solved solely at the micro, company level. The granting and protection
of workers‘ rights is also the responsibility of employers‘ associations, trade unions, governments and courts.
Against this backdrop, Tchibo is working to establish a dialogue between all relevant social actors as it continues
the WE programme. We will bring in our experience from the WE qualification programme, in the course of
which we establish and promote exchange at production sites. For instance, in Bangladesh we brought producers, the clothing industry employers‘ association, the international trade union of the clothing industry, and
national unions together at a table to jointly tackle the issue. As one of the first results from these discussions,
unions at two factories carried out workplace safety training. We want to continue this dialogue in Bangladesh
in the future and put our experience to use in other countries as well.
Living wages
The legal minimum wage in production countries is usually set so low that employees are unable to provide a
living for themselves and their dependent family members. The reason is that producers find themselves subject
to price pressure in their wage policy due to international competition between trading companies. Governments
also shy away from raising the legally set minimum wages, because like the producers they fear for the competi
tiveness of their countries. At the same time, the workers lack the power to negotiate higher wages because they
are denied their trade union freedoms and right to collective bargaining.
As a trading company that works with producers around the world, we are aware that we must face up to the
challenge of achieving a living wage for workers. However, this is no easy task, because as a single company
we cannot ensure that there are across-the-board wage increases. Therefore, we are approach the problem at
different levels.
As part of the WE programme we work directly with our production plants to create ways to increase wages.
We participate in multi-stakeholder initiatives - such as the Ethical Trading Initiative (ETI), Social Accountability
International (SAI) and the Round Table on Codes of Conduct – with the goal of achieving far-reaching improvements.
At the same time we work toward governments, trade unions, NGOs, employers‘ associations and trading
companies jointly reaching a consensus for an international harmonisation of wages.
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Production ecology
The production of our consumer goods always has an impact on the environment as well – for example through
energy consumption. As much as 30% of CO2 emissions in the lifecycle of consumer products are released
during their production. Producers often lack the necessary know-how to produce in a more energy-efficient
way. At the same time, in the production countries there is still often a lack of awareness about the environ
mental repercussions of the manufacturing processes. Compliance with legal environmental standards is often
not controlled by the state.
Production ecology is becoming increasingly important for our trading. We laid the foundation stone for improvements
in environmental performance with the integrated UmweltPlus concept. It defines requirements, or standards, for
all product groups that relate to a large part of the value chain: from the selection of resources and the materials
used in production to packaging and the usage characteristics of the products.
To reduce CO2 emissions in production, we teamed up with other trading companies to found the CPI2 initiative.
We also support the BEPI initiative. As a result, we also include other environmental factors in production in
improving our environmental footprint – such as wastewater treatment or pollutant emissions. The findings are
incorporated into our WE qualification programme, so that in the next few years our producers will be able to
continuously improve the environmental scorecard at the production plants.
► Goals for 2012/2013
Goals 2012/2013
Key objective integrated supplier management:
In order to improve working conditions and human rights in the production of consumer goods, all of our strategic
suppliers that we have a long-term working relationship with as well as their production plants are to be included
in the ‘WE’ (Worldwide Enhancement of Social Quality) training programme. By the end of 2016 a total of about
400 strategic suppliers will be included, provided we have been able to recruit sufficient coaches in the procurement
markets and train them in the WE requirements by then. The WE programme will be expanded to include
environmental aspects, so as to reduce our suppliers’ environmental impact during production. In addition,
we will develop and test innovative solution models for ensuring the right to form trade unions and negotiate
collective agreements, as well as living wages for workers in the Asian employment markets.
Key objective resources (cotton):
By 2015, the origin of a significant proportion of the cotton we use should be transparently traceable to the field
and be integrated in our sustainability strategy – so it should, for example, meet the Cotton made in Africa or BCI
(Better Cotton Initiative) standards. In certain products, determined in advance each year, the cotton will meet
exacting multi-stakeholder standards, e.g. Organic Cotton. Unfortunately, as sustainable cotton is only available
in limited quantities on the market, we are focusing on stimulating supply by increasing our demand and using
sustainable cotton in our product ranges.
Key objective product ecology:
By 2015, 100% of our other consumer goods ranges will at least meet the current base profiles of our ‘Tchibo
UmweltPlus’ management tool. ‘Tchibo UmweltPlus’ provides overviews (with a maximum of five stages – from
‘base profiles’ to ‘innovations’) of the integration of environmental requirements into Tchibo’s quality requirements.
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Key objective education projects at source:
By 2015, in connection with our activities to convert coffee and cotton cultivation from conventional to sustainable processes, we plan to initiate a complementary range of educational programmes that we can use to promote
sustainable consumption among our customers.
Sub-goals 2012 – Check
Status quo
Remarks
Further rollout of the WE programme across
the value chain: 100 strategic suppliers and
manufacturing facilities are currently under
going WE qualification, while 40 producers
that have already graduated are undergoing
follow-up.
fully
achieved
By the end of 2012, we had further expanded
our WE training programme in the Asian production sites and had included 200 production
plants. By 2016, the programme is to be expanded to all strategically important suppliers.
Result of mediation process initiated with
ITGLWF: host initial training sessions with
union representatives at selected factories in
Bangladesh.
fully
achieved
In 2012 union members provided occupational
safety training to employees at two factories
that produce for Tchibo.
Living wages: active participation in overar
ching multi-stakeholder initiatives for a
competition-neutral raising of minimum
wages to living-wage level.
fully
achieved
In the spring of 2012, we participated in a
Code of Conduct Roundtable event on ‘living
wages’, together with representatives of the
Asia Floor Wage (AFW) campaign, and have
closely supported the process of dialogue between companies and trade unions since then.
Sustainability at product and process level for
high-volume products: develop a concept for
a management system.
fully
achieved
The management system was developed in
2012 and adopted in spring 2013.
Cotton: The share of sustainable cotton products (Organic, Organic Blend, CmiA, Better
Cotton Initiative, etc.) purchased in 2013 is
to be double that of 2012. To this end, Tchibo
also aims to be a member of the Better Cotton Initiative.
fully
achieved
Tchibo has been a member of the Better
Cotton Initiative (BCI) since February 2012.
In 2011, the participating academic institu
tions developed and consolidated the
theoretical basis for the BIONOS project.
The practical application is planned for 2012.
partly
achieved
One of the most urgent measures – the
construction of new, integrated information
networks – is currently being tested at Tchibo.
The idea is to use this network to convey
information that is directly relevant for imple
mentation to a large, heterogeneous target
group in the supply chain as quickly and effec
tively as possible.
Resources
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Status quo
Remarks
Fully integrate the UmweltPlus criteria adopted in 2011 and the corresponding marketing
measures into Tchibo’s quality requirements,
ranges and marketing.
fully
achieved
In 2012, we fully integrated the UmweltPlus
criteria into Tchibo’s quality requirements,
ranges and marketing.
The UmweltPlus management system is to
be implemented and will be put into practice
accordingly. The UmweltPlus basis require
ments were drawn up and agreed for all
product groups.
partly
achieved
We succeeded in further developing the
UmweltPlus management tool through a living
document process, which aims to continu
ously identify, examine and evaluate individual
product groups’ potential for higher levels of
development.
In 2012 we already defined, for the majority of
product groups, the UmweltPlus basic require
ments that are to be implemented. The next
step will involve setting higher requirements
and targets across the whole range, based on
the relevance of the range.
Develop and agree UmweltPlus criteria for all
UmweltPlus product groups (Level 1 to innovation), including marketing activities.
fully
achieved
In 2012, we fully integrated the UmweltPlus
criteria into Tchibo’s quality requirements and
ranges as well as their marketing.
School project in Benin: The school project
will continue until 2013. In 2012 the construction of schools and cafeterias will be largely
completed, and the books will be distributed.
partly
achieved
Two of the seven planned school buildings
were completed, three more are under construction and are to be completed in July 2013.
For the other two schools, the sites have
yet to be finalized. Seven of the ten planned
school cafeterias have been completed. The
planned 10,000 textbooks have been ordered.
School project in Zambia: Together with our
project partners, eight new schools are to
be built in 2012 and another one renovated.
A total of ten schools will be given solar
systems for power supply and be equipped
with classroom furniture. In addition, eight
sanitary facilities and eight school gardens
will be created. The construction of ten new
wells and the renovation of six existing wells
is also planned.
partly
achieved
The implementation of the project is well
underway: the construction of five schools
including sanitary facilities has started. The
furniture for these five schools has already
been ordered. At the end of the construction
phase, solar panels will be installed on the
school roofs, and school gardens created.
The construction of some of the wells is already underway.
The project will run until the end of 2014.
Production ecology
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Sub-goals 2013
Further rollout of the WE programme across the value chain:
280 strategic suppliers and manufacturing facilities are in the process of qualif ying or have completed qualifi
cation for WE. The programme is being established in Vietnam, Cambodia and Turkey.
Improved fire protection and building security in Bangladesh in cooperation with trade unions:
• Inspections by external experts as well as fire protection training at all Tchibo factories, including further
training with union representatives at selected factories in Bangladesh.
•• The international Accord on Fire and Building Safety initiated with trade unions and NGOs comes into force.
Resources
25% of the cotton products purchased for 2014 should be sustainable (organic, Organic Blend, CmiA, Better
Cotton Initiative, etc.).
Production ecology
Piloting of new production ecology programmes and tools.
Develop a production ecology system and prepare to incorporate it in the WE qualification programme.
School project in Benin: Complete three of the planned total of seven school buildings in July 2013. Determine
the location for the other two schools. Complete three more school cafeterias and distribute 10,000 textbooks.
School project in Zambia: Complete five school buildings including sanitary facilities. Subsequently install
solar panels on the school roofs and create the school gardens. Finalise well construction. The project is
scheduled to end at year-end 2014.
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Tchibo Sustainability Report 2012 | Customers and products
Customers and products
Our brand lives by inspiration and trust
On our way towards a 100% sustainable business, one of our priorities is to inspire our customers for
Tchibo. We will only be able to continue doing business successfully if we can sustain and further
strengthen their trust in our brand.
Tchibo represents a unique business model: we combine the highest expertise in roasted coffee, coffee enjoyment
in our branded coffee bars, and an innovative weekly changing range of consumer goods with services including
travel, mobile services and green energy. We have operations in eight countries: over 1,000 Tchibo shops,
approximately 30,000 supermarket Depots, and a number of national online shops.
The trust of our customers is the foundation for our success. Their purchasing decisions secure Tchibo’s revenues
and profits every day. As a responsible family-owned business, we combine our pursuit of revenue and profit with
environmental and social responsibility to achieve organic growth while also strengthening trust in our brand.
All of our deliberations and actions revolve around the customer. This principle is firmly anchored in our Tchibo
DNA. Day after day, our goal is not only to satisfy but to inspire our customers – in accordance with our claim
‘Find it only at Tchibo’. We will continue to tackle the challenge of living up to this claim and keep surprising our
customers with new products and services. In the process, we seek to inspire them especially for our range of
sustainable goods, which is growing by the year. Consumers’ purchasing decisions influence the breadth and
depth of our sustainability measures, as well as how quickly we can implement them. To keep our customers
even better informed about our sustainability-related activities, we are further expanding our communications:
on traditional channels as well as on the social media platforms and at point of sale (POS).
In 2012, Tchibo was named the most trusted brand in coffee for the sixth time in the annual survey conducted
by Reader‘s Digest magazine. This representative study surveys German consumers’ opinions on the quality,
image and price-performance ratio of brands.
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The benchmark for our actions: a resolute focus
on customers
The trust of our customer is the foundation of our success. On our way to becoming a brand that stands
for sustainability, we want to not only sustain this trust, but strengthen it further. Apart from continually
expanding our range of sustainable products, this also requires expanding our consumer-oriented
communications and services. Because trust is based partly on commitment and reliability, interacting
with our customers is of great importance for us: we listen to them, are open to criticism, review
requests and suggestions, and align our actions to them as much as possible.
As a family-owned business, we laid the cornerstone for a strong customer focus more than 60 years ago. It
remains a core value of our corporate culture to this day, and is firmly anchored in the Tchibo DNA alongside
entrepreneurship and discipline. Based on this principle, we not only aim to satisfy our customers but also to
inspire them. ‘Find it only at Tchibo’: we want our customers to see fresh confirmation of this maxim every day,
through attractive products and excellent service management across all sales channels – whether in Tchibo
shops, retail ‘Depots’, or the online shop. At Tchibo, we have an integrated process in place to ensure this,
because we regard customer focus itself as an integrated process: from product management, purchasing and
logistics, to expert advice, comprehensive customer service, and extensive warranty and repair services.
Linking up for the future: the evolution of our service range
Our integrated approach involves looking very closely at societal trends and consumer behaviour. Only if we
resolutely align our business to the changing needs of customers can we continue to be as successful tomorrow
as we are today. One key driver of change in customers’ purchasing behaviour is digitisation. Consumers are
increasingly evolving from single-channel into cross-channel customers. Tchibo has recognised this trend and
will offer customers services to make their shopping experience as flexible and unique as possible in future. So
from September 2013, our multi-channel system will become a cross-channel enterprise: this allows customers
to link the various sales channels as needed. For example, they can order a product from the online shop and
pick it up in a Tchibo shop of their choice (free of shipping charges). We created the necessary preconditions for
this service as part of our vast ‘tetris’ project, which includes the establishment of a modern merchandise
management system, a new customer relationship management (CRM) system, optimised returns processing,
and an integrated, central Non Food warehouse.
Always in touch: customer service and complaints management
We are always willing to listen to our customers’ concerns:
our staff at the Tchibo shops, in customer service, and at
the service centres are available to answer questions and
receive suggestions. They also handle any complaints that
crop up despite all our efforts, and always try to resolve
them swiftly and professionally. Every year, we run
surveys to check whether our customers are satisfied with
our service. We also are very careful in selecting our
external providers of call-centre services.
We intensively train their staff and have their quality audited
every year by the independent consulting firm imug
Beratungsgesellschaft für sozial ökologische Innovationen mbH (imug). Audits are also performed to ensure the
quality of our technical service centre, which handles spare parts ordering and repairs on Tchibo’s behalf.
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Strict quality and safety standards
We want to inspire our customers with quality. Accordingly,
we have very high standards for our products. The quality
standards we impose on our products involve traits such as
durability, safety and aesthetics, as well as the social and
environmental conditions under which they are produced.
In our Tchibo Social and Environmental Code of Conduct
(SCoC), we obligate the suppliers of our consumer goods
to comply with social and environmental standards.
Exacting quality tests are carried out at the various stages of production and on the end product, both by Tchibo
itself and by independent testing institutes. Thanks to these measures, product recalls are very rare at Tchibo,
but cannot be completely ruled out.
Expanding the sustainable product ranges
We are gradually increasing the proportion of products made from sustainably sourced materials and produced
under environmentally compatible and socially fair conditions. In the medium term, for instance, we plan to
exclusively offer coffee from sustainable cultivation. We will continue to increase the proportion of sustainably
grown cotton in our textiles collections, and expand our range of FSC®-certified products. As part of the
UmweltPlus integrated range management concept, we have compiled ecological requirements for all product
groups in our consumer goods range, to reduce negative environmental impacts from the very beginning, when
the product is designed.
Consumer-oriented communications
By offering an ever-increasing range of sustainable products, we also build consumer awareness for responsible
consumption. Customers’ purchasing decisions influence the pace at which we implement sustainability-related
measures on our way towards a 100% sustainable business. To help them make an informed choice when
buying products, we clearly label sustainable product ranges, present information in a consumer-oriented way,
and ensure easy access to it. Our Tchibo shop staff receives training on advising customers in matters of
sustainability, and we communicate wherever the customer looks for information: on the product, on our website,
in magazines or on social media platforms. In particular, we plan to step up our communications at the point of
sale. To promote awareness of sustainable consumption in the customers of tomorrow, in early 2013 Tchibo
joined the Alliance for Consumer Education set up by the German Foundation for Consumer Protection.
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► Customer focus
Attractive solutions for wide-ranging
customer requirements
Our customers‘ trust in the Tchibo brand is based quite fundamentally on a comprehensive customer
focus, which is firmly embedded and very much alive in our corporate culture. Our customer management therefore revolves around excellent service, professional customer relationship management
system, and effective complaints management.
The concerns, questions and needs of our customers are our top priority, which is why we do everything we can
to convince them with our products and services – and to deliver on our promise of top quality. We have formulated
a service and promise quality as a key benchmark for the actions of all employees. Its criteria include safety and
goodwill.
Customers have access to our on-site service in our Tchibo shops, as well as our Customer Service department
and technical service centres by phone, email or letter. Regardless of how they contact Tchibo, they receive
friendly, competent service. Our conduct is characterised by openness, honesty and transparency. Our hotline
provides customers with quick, fair and unbureaucratic solutions to any questions or complaints. To further increase
customer satisfaction and create the necessary conditions for truly inspiring our customers, our understanding
of service is not just limited to solving problems, but extends to working continuously to improve all customerrelated processes within the company. The results of regular customer surveys help us here, and customer
complaints provide valuable indications about where we need to initiate improvements.
To better meet customer needs in future, we are now building our cross-channel services: we are linking all of
our sales and distribution paths so that customers can choose and move freely between various distribution
channels to order, collect or exchange their merchandise. We created the necessary technical requirements for
this as part of our vast ‘tetris’ project. This new IT-assisted customer relationship management system will also
help us to further improve customer satisfaction across all processes – from order placement, payment and
delivery, to cross-channel discount and coupon promotions, through to faster returns processing of returns and
individual solutions to customer problems.
► Customer focus ► Service mentality
Our approach:
keep evolving to ensure customer satisfaction
We want Tchibo customers to be able to count on getting top quality at a fair price, and excellent
service management. Cornerstones for this include binding service and quality claims, speed and
reliability, as well as a sense of responsibility and fairness. When customer expectations change, we
develop our service offerings in response. In 2012, our ‘tetris’ project created the necessary conditions
for a leading-edge online business, coupled with cross-channel services – our way of making the
unique shopping experience at Tchibo even more customer-focused and convenient.
For years, we have guaranteed our customers high quality and optimum service through our service and quality
claim. It encompasses six criteria that guide the actions of all our employees, and which we regularly review and
adjust where necessary.
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Service and quality promise
• Uniqueness: All Tchibo products are designed especially for our customers, according to strict quality standards that we define.
• Safety: Every Tchibo product is inspected for safety and/or harmful substances by at least one independent
testing institute.
• A sense of responsibility: We demand and encourage environmentally and socially compatible production
conditions in the manufacture of Tchibo products around the world. A sustainable approach along the entire
supply and value chain is an important part of securing Tchibo’s future.
• Long product life: We give a three-year warranty on all technical products* and on every single zip used in our
consumer goods. We repair defects within 14 days, exchange products or refund the purchase price.**
• Fast service: Our customers’ questions and wishes are our top priority. Tchibo’s Customer Service department
is available by phone, by email or by post seven days a week.
• Goodwill: Our customers have an unlimited four-week** right to return items to all Tchibo shops, where they
receive a refund for the purchase price.
*Valid for all products carrying the logo for a three-year warranty.
**Proof of purchase required.
Insight into the business operations: ‘Triathlon +1’ management programme
To help our managers put the service concept into practice even more stringently, all members of senior management participate in the ‘Tchibo Triathlon+1’ management programme: they spend three to four days a year
in Tchibo’s sales divisions – Tchibo shops, call centres and concessions/supermarket Depots – so that they can
experience the day-to-day business with customers at first-hand. Learning how a complaint is received by phone
in Customer Service department increases their understanding of customers‘ needs and is instructive for their
own area of responsibility. At the same time, senior managers can get an idea of how the service staff convey
the Tchibo smile over a phone line.
Quick and unbureaucratic: 24/7 customer service
Tchibo quality doesn’t end once the customer has purchased a product. Our customers’ wishes – and their
criticism – are important to us. Our Customer Service department is available 24 hours a day, seven days a week
for customers and their concerns: by phone, email or post. Our shop employees have far-reaching authorisation
to make decisions on complaints and exchange requests directly, personally, quickly and unbureaucratically, in
the interest of our customers. Tchibo provides a three-year warranty on every product costing more than ten
euros – one year longer than is required by law. In the event of a warranty claim, our customers can choose to
have the item repaired, exchanged or refunded upon providing proof of purchase.
We place a priority on open, honest and transparent communication across all sales and communication
channels. When developments in the world market forced us to increase coffee prices in 2011, we made a
promise to cut prices for Tchibo Arabica qualities again once the commodity markets permitted. In April 2012,
we were able to deliver on this promise, and cut our prices for all roasted coffee by 50 cents per pound.
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► Customer focus ► Cross Channel Services
A future-proof setup: linked sales channels,
improved delivery and service quality
How and where do our customers prefer to shop? What kind of services do they want, and what devel
opments in retail influence their buying behaviour? Getting to the bottom of these questions helps us
to design our business processes so that customers get and stay excited about shopping at Tchibo.
The future-proof evolution of our service offerings can be summed up in a word: cross-channelling. By
linking our Tchibo shop, concession and online sales channels, we seek to offer customers a shopping
experience that is as unique as it is convenient.
Research a product online and then buy it at a local Tchibo shop; try it on in a shop and order it online later –
many consumers already routinely switch between sales channels when they shop. We want to cater for this
customer requirement across all Tchibo sales channels with our newly developed cross-channel services. Linked
sales channels mean that customers can decide for themselves where they order, collect or exchange the
merchandise. They can order online and have the product delivered free of charge to a Tchibo shop of their
choice, and even exchange it at the Tchibo shop if necessary. Or they can order something from the online
range at a terminal in the Tchibo shop, perhaps because the product is sold out locally, and have it delivered
either to the shop or to their home. We ensure excellent service across all sales channels.
The cornerstone for cross-channelling: the ‘tetris’ project
Cross-channel services are only possible with a uniform IT system and complex logistical processes. Tchibo laid
the cornerstone for its cross-channel approach with a vast project named ‘tetris’. Over a period of three years,
some 200 employees worked intensively on the creation of this modular system, which involved considerable
investment. Introduced in Germany in September 2013, the system also launches at all national subsidiaries in
2013. The IT realignment centres on the establishment of a new customer relationship management system,
modern merchandise management, optimising the returns processes, and the building of an integrated central
warehouse for the consumer goods business. In this way ‘tetris’ also enables large-scale cost savings and forms
the basis for the online business of the future. Apart from the convenience of cross-channel shopping, customers also benefit from shorter delivery times, appropriate packaging for transport, and more diverse payment
options. In future, we will further expand our services as part of ‘tetris’, to include such options as paying by
PayPal, which we are preparing to introduce in 2014. The new system also allows us to run discount or coupon
campaigns across sales channels.
At a glance: central information system
The new IT architecture merges all customer data in a single system. So where in the past, customer information –
e.g. about an exchange, a repair or questions regarding an invoice – was previously distributed to different
places in the company, it can now be pooled in a single system. From now on, all employees in the B2C business
can access it in strict compliance with data protection regulations. This also eliminates long processes of
enquiry. For example, when a customer calls the Tchibo hotline, the employee fielding the call can serve them
much better and process their request faster and with a less complicated procedure.
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Communications support: the launch of cross channelling
We are launching our cross-channel services in September
2013 under the slogan ‘Tchibo makes things easy’ – accom
panied by comprehensive, easy-to-understand communica
tions: in the Tchibo shops as well as on TV, in magazines,
online and in the Tchibo app.
► Customer focus ► Customer concerns and complaints management
Close to the customer:
competent contacts, comprehensive services
We are there for our customers and are available to assist them with any concerns or complaints they
might have: whether in person at our Tchibo shops or by telephone, post and email in our customer
service department. We handle their requests quickly, unbureaucratically and reliably – and also learn
from them continuously in the process. After all, complaints and suggestions also help us to meet the
expectations of our customers as best we can, to keep inspiring them, and to come up with innovations.
In addition to the Tchibo shop staff, Tchibo’s customer service department is also available to customers 24/7 (24
hours a day, seven days a week), and caters for all customers who have already bought Tchibo products or need
information before making a purchase decision – regardless of whether they plan to buy in a Tchibo shop, our
online shops or at our ‘Depot’ concessions in supermarkets and at specialist retailers. To deal with customer
concerns in the best possible manner, our customer service department encompasses various specialist
hotlines. For example, the Cafissimo service, Tchibo mobile customer care and a hotline for Tchibo PrivatCard
customers. Tchibo employees, and the staff of external call centre service providers and technical service centres,
provide professional advice on the phone, by email or by post and handle concerns as quickly and simply as
possible. For example, customers can report complaints, arrange for an exchange, request information about the
delivery status of ordered goods, or order spare parts for furniture, or accessories such as toothbrush heads.
Available 24/7: our customer service department
In 2012, over three million requests were received in all, about half of them by telephone, the other half by email.
The following list of reasons for contact before, during and after the product purchase shows that they mainly
involved product enquiries and orders. The significant decrease in telephone orders is proof of the current trend
of orders increasingly being made through the online shop. Most questions were directly resolved during the
initial contact. This figure is particularly significant for customer satisfaction, because it means that customers
are receiving the information they need quickly and directly. At the same time it underscores our customer
service employees’ high level of competence. Based on ‘tetris’ in future we expect an even higher rate of
resolution on first contact, as the contact person in customer service now has all the relevant information
available in one place. Another factor to enhance closeness to the customer is the manning of some hotlines
by Tchibo employees. In 2010, we ‘in-sourced’ our Cafissimo service hotline again after having outsourced it,
and did the same with the PrivatCard hotline in 2011.
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Reasons for customer contact before and during
product purchase in 2012
List of reasons for customer contact after
product purchase in 2012
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Balance enquiry: 14.1%
Order: 12.0%
Delivery time / time of delivery: 12.0%
Other: 6.8%
Forwarded to/from another hotline: 6.4%
Returns handling request: 5.0%
Web shop problems: 4.7%
Complaints about items: 4.5%
Quantity discrepancies (more/less): 4.4%
Response to reminder: 3.8%
Exchange: 3.3%
Availability: 3.2%
Wrong delivery: 3.1%
Voucher/coupon enquiries: 2.6%
Misunderstandings about returns: 2.5%
Breakage/damage: 2.4%
Missing invoice/delivery note: 1.8%
Cushions: 1.8%
Clarification of payment: 1.7%
Questions about payment method: 1.5%
Credit balance: 0.8%
Change in payment method: 0.8%
Clarification cash in advance/cash on delivery
letter: 0.5%
• Price differences: 0.3%
Consumer goods product enquiry: 20.5%
Customer support: 14.6%
General inquiries: 13.3%
Order (parts): 10.7%
Repair request: 9.0%
Cafissimo redirection: 6.1%
Information phone number: 4.9%
Ordering service (order entry): 4.3%
Tchibo mobile (redirects): 3.5%
Other: 3.4%
Other redirection: 2.1%
Exchange: 1.8%
Cushions: 1.4%
Wrong number: 1.1%
PrivatCard: 1.0%
Purchase price refund: 0.9%
Questions about cooperations: 0.9%
Taste return: 0.2%
Rainforest Alliance/sustainability: 0.1%
Other delivery-related question: 0.1%
Discount: 0.1%
Satisfaction on the up and up: customer service survey
In 2012, we once again put our customer service department to the test in two customer surveys – with positive
results. Overall, we were able to improve slightly, especially in the area of telephone support, but also in processing
incoming emails.
Expert handling of complaints: our technical service centres
Complaints involving products still under warranty are handled by three external technical service centres under
Tchibo’s supervision; in addition, there are service centres run by cooperation partners. Tchibo sources replacement
parts for furniture from various furniture service centres. Our general principle is that, wherever possible, we
rectify defects within 14 days by sending out a replacement part, repairing the product or replacing the item with
a new one.
During the year under review, our technical service centres processed approximately 152,000 complaints.
At 2.1%, our average rate of complaints remained low. The most common cause for contact was to request
the replacement of a faulty item; other customer requests involved repairs, replacement parts or accessories.
All processes in the technical service centres are audited regularly and in 2012 achieved excellent scores.
For example, average processing time for complaints was reduced to 4.2 working days from 4.5 in 2010.
To ensure the best possible service, we also have a lot of interfacing between Customer Service and the
service centres. For example, complaints are fed into our call centres’ systems, so that they can respond to
calls from customers with all the necessary background knowledge. Conversely, orders for replacement parts
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are transmitted from the call centres to the service centres daily. With ‘tetris’ in place, these transfers will no
longer be necessary in future, as all customer-related information is now merged in a single system that is
available to Tchibo Customer Service employees as well as to the external service centres, in strict compliance
with data protection rules.
Keeping the customer happy: our complaints management
Complaints also get a swift and sympathetic response. To this end, we have developed detailed guidelines
for dealing politely and competently with complainants and specif ying the extent to which we can show the
customer goodwill. All data is fed into a constantly updated database, which we analyse monthly. The managers
responsible keep senior management regularly informed of the results of this analysis and the corrective measures
taken, so that they can be considered in the development of new concepts. Our basic attitude is that customers
who call Tchibo with a complaint or a suggestion for improvement are valuable to us. If they point out potential
weaknesses, we know where we still need to improve our quality and service. And we get the chance to turn
them into a happy customer again.
Since 2009, we have had our complaints management system reviewed by the Hanover-based consultancy imug
Beratungsgesellschaft für sozial ökologische Innovationen mbH (imug). The test criteria include processing time,
friendliness, expertise and the time it takes for a call to be answered. During the 2012 ‘service check’ the quality
of telephone and written contacts was scrutinised over a period of about six weeks. The quality of telephone
contact had improved slightly compared to 2011 and was rated as ‘good’ overall, while the quality of written
contact was rated as ‘very good’, on par with the previous year’s result. Emails are answered within two days,
letters within seven days. We see the telephone greeting as an area that could be improved, because it was
judged to be rather matter-of-fact at times.
Ongoing skills development: training and coaching
Rather than resting on our laurels with the results of the inspections, we make an effort to continually improve
our services by steadily developing the skills of the staff in our customer service department, the service centres
and in complaints management. Since 2012, the Quality & Training team in the DPO organisational unit has
been responsible for developing customer service training.
Interface to the customer: our Direct Business Platform (DPO)
Tchibo‘s Direct Business Platform (DPO) unit is responsible for the overall organisation and development of
customer care. In Summer 2013, the DPO was given a new organisational structure. Individual teams are each
dedicated to a specific topic, so that all customer-related processes can be further improved: from ordering,
payment and delivery to returns and problem-solving – because in the customer’s view a company’s service
consists of the totality of all orders and follow-up processes and the resolving of specific concerns. For instance,
there is the Complaints Processing team, which takes care of the planning and organisation of services in
response to complaints. The Quality & Training team develops customer service training and carries out quality
assurance measures.
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► Quality and safety
Only the best for our customers:
ensuring enduring quality
We apply the highest quality standards to our entire product range – and offer it at fair prices. Customers can count on the safety and durability of our consumer goods just as they can rely on the consistent aroma and flavour of our coffee products: because we manufacture according to uniform and strict
standards, and check both internally as a company and with the help of independent testing centres.
Day by day, we seek to surprise our customers while at the same time meeting their expectations. To achieve
this goal, we define strict requirements for the safety, functionality, workmanship and materials of our products.
Our quality standards are not, however, limited to these aspects, but also include the social and ecological
conditions under which the products are manufactured.
Highest quality standards: coffee
This comprehensive quality standard also applies to the supply chain of our coffee – from how the coffee plants
are grown to the packaging of the roasted beans. To ensure the best-quality origin coffee, Tchibo uses highquality Arabica and, where necessary for the flavour, Robusta beans. The proportion of raw coffee beans that
are grown under environmentally and socially responsible conditions is being increased steadily. As raw coffee
beans age rapidly and absorb external aromas and flavours, rapid and careful transport immediately after the
harvest is key to good flavour.
At the roasting plant, the beans undergo quality testing: small quantities are roasted and brewed so that the
coffee tasters can evaluate the coffee’s fullness, acidity and aroma and determine the final recipe for the end
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product. The raw coffee‘s transformation to roasted coffee takes place at the roasting plant – a crucial process
that brings the different aromas of the coffee beans to life. Tchibo‘s coffee roasting was modernised as part of
the ‘Neon’ project (new direction in production). At the end of 2012, a new drum roaster was commissioned in
Hamburg and space created for another. In Berlin – after 30 years of use – all roasters are being replaced. Four
new fluid bed roasters now ensure state-of-the-art roasting. This means that the Berlin production plant can also
manufacture products in the fast-growing Espresso and Caffè Crema sectors from now on. The German
factories meet the International Food Standards (IFS5), which stand for strict hygiene standards and the
complete documentation of the entire roasting process.
Because coffee‘s aroma is extremely sensitive to oxygen, moisture, light and heat, high-quality packaging is
essential. Tchibo therefore packs the coffee in plastic film in an oxygen-free environment, thereby guaranteeing
food safety and preventing the packaging from having any effect on the flavour. There is, unfortunately, no
alternative to aluminium in coating and laminating the plastic film. We are reviewing the options for a more
environmentally compatible solution.
Highest quality standards: consumer goods
At Tchibo, quality starts at the concept stage. A team of product managers, designers, buyers and quality
developers, all experts in their respective fields – for example in electrical appliances or clothing – is responsible
for the product concept as well as its planning and realisation. The Tchibo quality management process extends
across the four stages of product development, quality development, quality assurance, and compliance with
customer information requirements.
1. Product development
At the product development stage, the quality management experts begin by specif ying the requirements
concerning the item’s materials and design. Important criteria at this stage include durability, everyday usability,
the highest product safety standards, and material specifications. With its ‘UmweltPlus’ concept, Tchibo strives
for product design that protects the environment, conserves resources, and is conducive to recycling. Only
suppliers that commit to the Tchibo Social and Environmental Code of Conduct (SCoC) are commissioned to
manufacture the products.
2. Quality development
Regular testing of the manufacturing process through product sampling and site visits to the production facilities
is indispensible for quality development, because the manufacturing process is the decisive factor in product
quality. Before any contracts are signed, potential production plants are audited by our own specially trained
staff. In order for the items to be transported appropriately and safely, we set high quality standards for transport
and packaging. We carry out drop tests and tests in ‘climate cabinets’ to be sure that our products are well
protected on their way to the Tchibo shops, warehouses or directly to the customer. Shipping is only initiated
once these tests have been passed. We are also continuously optimising our transport in order to reduce CO2
emissions.
3. Quality assurance
All consumer goods are subjected to a final inspection using the Acceptable Quality Level (AQL) procedure. This
ensures that all quality requirements were met and the goods to be sold to the customer are flawless. The final
inspection takes place either at the main warehouse in Bremen or at an inspection centre in the respective
production country.
4. Compliance with customer information requirements
In line with our integrated quality concept, our high standards do not end with delivery to the customer, because
quality also plays a crucial role for sales and support. That is why, we provide detailed product information and
instruction manuals to our customers both on the product itself and through the online shop. It goes without
saying that in doing so, we comply with standards for the structure and intelligibility of manuals, such as DIN ISO
82079-1. A team of experienced copywriters continually develops the quality of our manuals. Once our customer
has bought the product, another important stage in our quality assurance process begins: all relevant findings
and insights regarding possible improvements are fed into the development of successor products on specifically
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determined information paths. We use various measures to ensure that only faultless products are sold to the
end consumer: through our customer service department, we can hear what customers are saying, and we pay
close attention to their concerns and wishes. We evaluate products that have been returned by customers and
solicit feedback from the staff in our Tchibo shops. Tchibo carries out monthly surveys among Tchibo shop
managers to find out how the weekly ranges are being received by customers and whether they have suggestions
for improvement. This is how, for example, we identified and fulfilled our customers’ wish for changing rooms.
One key aspect in meeting our duty to inform customers is the addition of REACH codes to our database: this
enables us to comply with the European directive on the Registration, Evaluation, Authorisation and Restriction
of Chemicals, which seeks to protect public health and the environment. We handle chemicals responsibly and
keep all relevant information accessible. To be able to respond fully to customer queries at all levels, we train
Tchibo shop and customer service staff and provide information to Tchibo’s concession partners.
Tried-and-tested quality – beyond statutory requirements
During their development, we constantly monitor items for compliance with our strict quality standards – from
production to sales. We test the products extensively ourselves as well through independent, accredited test
centres. The TCM (Tchibo Certified Merchandise) seal of quality is affixed to products produced exclusively for
Tchibo and guarantees that they have been subjected to the most rigorous tests for harmful substances. The
TCM seal is based on laws and internationally recognised standards, as well as our own Tchibo standards,
some of which are stricter than the legal requirements.
In the event that there are problems with quality assurance despite our high standards and numerous tests,
customer satisfaction is our primary focus. In such cases the customer can, of course, claim their warranty and
refund rights and can count on our goodwill.
Animal welfare is part of the Tchibo quality claim
We pay attention to animal welfare. For items produced using down and feathers, we only source materials that
are by-products of food production. In accordance with an internal company decision, we have excluded all fur
products from our ranges for over eight years now. To reaffirm this to the outside, in 2013 we became a member
of the ‚Four Paws‘ animal welfare organisation‘s international ‚Fur Free Retailer Programme‘. The initiative
provides information on fashion companies that have pledged in writing to no longer use real fur.
► Sustainable ranges
Environmentally and socially compatible: inspiring
customers with sustainable ranges
On our way towards a 100% sustainable business, we are determined to offer our customers more and
more environmentally and socially responsible products. By steadily expanding our range of sustainably produced products, we seek to encourage sustainable consumption among our customers.
In 2012 we made further progress on this path:
Coffee
We further increased the proportion of raw coffee we process that is covered by our sustainability concept, from
13% in 2011 to over 25% in 2012. The coffee either carries the Rainforest Alliance Certified™, Fairtrade, UTZ
Certified or European Bio seals (certified sustainable), or meets the 4C baseline standards (validated sustainable).
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We now use 100% certified sustainable qualities for our entire ‘Privat Kaffee’ range. We became the first coffee
capsule supplier on the German market to exclusively use sustainably grown raw coffee – from farms that are
either certified by the Rainforest Alliance or UTZ – in our capsules. About 50% of the certified sustainable filter
coffee sold in Germany in 2012 came from Tchibo. Since 2013, we have also offered Fairtrade-certified editions
in the ‘Grand Classé’ segment of our Cafissimo range.
Cotton range
With over 12.7 million textile items from certified and validated sustainable cotton production in 2012, we are
one of Germany‘s leading providers of products made from responsibly grown cotton. They either meet the
requirements of the Textile Exchange’s organic cotton standard or the Cotton made in Africa initiative.
Wood products and paper
The tropical hardwoods used in our garden furniture comply 100% with FSC® (Forest Stewardship Council)
requirements. In 2013 we plan to further expand the proportion of products made from FSC®-certified woods.
In 2012, we also became the first German trading company to print all magazines, catalogues and advertising
materials in Germany, Austria and Switzerland on FSC®-certified paper.
Resource-conserving weekly range
‘Natural Living’ was the theme of a Tchibo weekly phase in early summer 2012. During the weeklong campaign,
we offered a wide range of sustainable products at fair prices: wooden furniture made from FSC®-certified wood
and home accessories made of organic cotton. The vases in this weekly range were made from 70% recycled
glass, and the watering cans from petroleum-free plastic.
Certified green electricity
Our future energy supply should be climate-friendly, reliable and affordable. We want to do
our part for this and have, since October 2010, offered 100% green electricity from
hydropower – one of the climate-friendliest ways to generate electricity. Our customers can
count on fair terms: they are given a twelve-month price guarantee, can cancel with a
month’s notice, and there are no prepayments. Tchibo Ökostrom electricity is certified with
the TÜV seal and the ‘ok-power’ label, which involves an annual review. Certification by
the ‘ok-power’ label guarantees that 100% of the energy not only comes from renewable
sources, but also contributes to the further development of renewable energies beyond
what is required by law. This means that producers of ok-power certified electricity must
continually invest in the construction or upgrading of power plants for the production of
green electricity.
The ‘Electricity Suppliers 2012’ study by the German Institute for Service Quality (DISQ)
and the news channel n-tv ranked Tchibo Green Electricity first for the best website in a comparison of national
suppliers, and gave it a ‘Good’ quality rating for customer service. In addition, the consumer magazine ÖKOTEST gave Tchibo green electricity a ‘1st class’ rating in 2011 and pronounced it ‘excellent’ in 2013.
Climate-friendlier gas
In January 2011, we expanded our green energy offer to include climatefriendly gas. We offset the amount of CO2 released during its production,
transport and consumption by investing in CO2-reducing certified climateprotection projects in emerging and developing countries. Our product is
TÜV-certified and bears the ‘gold standard’ label co-developed by WWF.
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For many years now, our sites have exclusively used electricity from renewable energy sources. Since 2012, all Tchibo locations in Germany are supplied
exclusively with ‘ok-power’-certified electricity from Norwegian hydropower:
our two coffee-roasting plants, our logistics sites including the two distri
bution centres, our head office in Hamburg, and all Tchibo shops for which
we source the electricity.
Energy concept houses
In a special campaign in 2012 we teamed up with Heinz von Heiden GmbH to offer environmentally conscious
builders three different energy concept houses that meet the ‘KfW Effizienzhaus 55’ energy standard. Their
energy supply is from renewable sources, they use intelligently planned heat generation and have optimal
building insulation.
In 2011 the energy-efficient ‘KfW Effizienzhaus 70’ houses we had offered in cooperation with Heinz von Heiden
were criticised for their lack of cost and planning security. We took this criticism seriously and responded: we
revised both the house concept and the contracts, and in 2012 launched a revised offer. Instead of counting on
geothermal heat, the cost of which could not be precisely predicted and could therefore lead to additional costs,
the rooms are now heated with wood pellet heating. The energy for hot water comes from solar panels in
summer and in winter is produced with support from the pellet furnace. The buyers are no longer obliged to enter
into insurance package policies whose protection was considered insufficient. Also new from 2012: the construction companies dispose of the packaging and other construction waste, so that the building owner doesn’t incur
any extra disposal costs.
► Consumer-oriented communication
Targeted communication: building awareness
for sustainability and ethical consumption
Our customers’ buying decisions and their consumption of sustainable products influence the speed
with which we can reach our goal of 100% sustainability. So it is necessary to explain sustainability
appropriately: through plausible, easily understood and engaging communications.
Whether within our company or to the public: our sustainability communications strategy is founded on a
common understanding that forms the basis of all aspects of communication. In this way, we seek to facilitate
consistent communication and avoid contradictions. This is especially important because many areas of the
company are involved in communicating sustainability: the Corporate Communications and Corporate Responsi
bility departments, Marketing, Shop employees, sales staff and other departments.
Our goal is for Tchibo to be perceived as a responsible company and a sustainable brand. The Tchibo language
as defined in our brand manual serves as the basis of our brand communications strategy. It specifies, among
other things, clear requirements for communications. Beyond this, when communicating environmental issues
we follow the ISO norm 14020, which provides a framework and guidance, set out in nine principles, for commu
nicating, identif ying and declaring environmental aspects of products. Tchibo has also developed the UmweltPlus factsheet for consumer goods as a basis for external communications. Each factsheet contains a description
of the product’s environmental traits in a standard format. It serves as a guide and communication aid for buyers,
quality managers and the Marketing department.
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In advertising, Tchibo adheres to the rules of competition law and avoids misleading statements. If necessary,
before launching certain products, we consult imug Beratungsgesellschaft für sozial ökologische Innovationen
mbH, a company specialising in studies and company evaluations in the field of sustainability and consumer
interests. This allows for reviewing issues that are relevant to consumers, such as advertising claims, beforehand through targeted market and background research.
Sustainable and engaging: our consumer communications
Like Tchibo’s weekly ranges, customer communications should be fun and surprising. With this in mind, in 2012
Tchibo published the first German Coffee Report together with the company brand eins Wissen and the statistics
portal statistica.com. It contains interesting and surprising facts about the ‘brown gold’, as does the new edition
for 2013, prepared in the form of a short reference work.
Comprehensive sustainability-related information is available to consumers online in the Tchibo Sustainability
Report. Further information on the subject can also be found on the company homepage and in the Tchibo
online shop.
Promotions: educational projects in the source countries
One example for extensive sustainability-related customer
communications is the Mount Kenya Project, one of our
education projects in the regions where our coffee is
grown: we used blog entries, pictures and videos on a
dedicated project website to raise customer awareness
of our social efforts in the source countries. This gave our
products ‘faces’ and also explained sustainability in an
authentic and therefore accessible way.
As long ago as 2011 we ran a special during which we
donated 45 cents to the Mount Kenya Project for every
500g packet of Privat brand coffee sold. For every packet
bought, the customer also received a 55-cent special stamp, which they could use to send their Christmas
cards, thus further publicising the project. An impressive EUR 600,000 was raised for the project, which were
then used for measures in 2012.
A similar promotion is underway for our children’s project in Guatemala. From April 2013 to at least the end of
2013, Tchibo is donating 10 cents per packet of Privat coffee sold. We estimate that the education project will
benefit to the tune of at least half a million euros.
Direct interaction with customer: publicising sustainability in Tchibo shops
Well-informed and well-trained sales staff in the Tchibo shops is of particular importance for actively promoting
ethical consumption. The subject of sustainability is integrated into the existing shop communication concept.
This means that the necessary knowledge is imparted to the staff via the three elements of training, information
and communication/exchange. In the first module, they complete a basic course as well as a coffee tutorial.
They play educational games including tests, and receive a communications manual. The second module is
comprised of the Tchibo Magazine, newsletters, films and the ‘Sustainability at Tchibo’ brochure. The third
element ensures that shop sales staff have the opportunity to access specific information and answer customer
queries via the Tchibo shop intranet. These activities are complemented by regular sales conventions for Tchibo
shop staff, where sustainability issues are incorporated in workshops and guest lectures.
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Initiating dialogue: social media activities
We have stepped up our social media activities since 2011. Our Tchibo blog not only reaches multipliers including other bloggers or journalists, but also customers. The best way for us to easily convey sustainability in
pictures is our own YouTube channel: besides insights into the roasting of coffee or into our call centres there are
also videos about sustainability at Tchibo, for example about the Mount Kenya Project, the Rainforest Alliance or
Cotton made In Africa. Via Facebook and Twitter we share information and talk directly to our customers and
other stakeholders. We invite them to talk to us so that we can learn more about them and their needs. In 2012
we used Facebook to find an ambassador for our Mount Kenya project, who then had the opportunity to form a
first-hand, on-site impression of the project and publish his experiences and his conclusions in our blog. Since
2012 we have been active on Google+ and Pinterest with coffee and consumer goods-related posts and pictures.
Important feedback: customer survey on sustainability communications in 2012
To give us an idea of how our customers perceive and rate our sustainability communications, in 2012 we again
carried out a customer survey via our TchiboExperts survey tool. It showed that most of the respondents feel
sustainability-related topics indicate quality, and that customers are generally open towards the subject. They
want more information about the range of sustainable products on offer, about development projects in the
source countries, on the assertion of social standards, and on environmental projects. They feel that labour
standards and environmental protection are the most important issues. And they want to receive this information
preferably on the homepage, in newsletters, the Tchibo shop magazine, brochures or flyers, as well as affixed to
the product itself. The results of this survey will be incorporated in Tchibo’s consumer communication strategy.
We will step up our sustainability communications, especially at the point of sale.
Anchoring consumer education in schools: the Alliance for Consumer
Education
To promote early awareness of sustainable consumption, Tchibo joined the ‘Alliance for Consumer Education’
founded by the Federation of German Consumer Organisations. In this Alliance, representatives from NGOs,
science and academe, business associations, companies, politics, educational authorities and ministries, as
well as members of the public, work towards providing children and young people in Germany with an officially
accredited programme of consumer education to improve their decision-making and consumer skills. With this
aim in mind, Tchibo signed the ‘Early promotion of consumer skills– more consumer education in schools’
resolution. Tchibo is thus committed to early awareness when it comes to sustainable consumer behaviour.
This fits perfectly with Tchibo’s strategy and its goal of promoting sustainable, conscious consumption – as a
complement to the sustainable Tchibo range, to our sustainability processes, and to the measures we take
protect consumers and their privacy.
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Retain customers long-term
and build their awareness for conscious shopping
It is an exciting daily challenge for us to keep inspiring and surprising our customers. We continually
develop our offers and services, because our customers don’t stop evolving either. We place an emphasis on developing sustainable product ranges and on building consumer awareness for responsible
consumption.
We aim to continue bringing attractive products and services to market that meet the needs of our customers,
are sustainably designed and produced, and offer good value for money. To do this we have to face different
challenges and continue to act in a consistently customer-oriented way. We want to listen to customers even
more closely, to translate their concerns and complaints not only into improvements, but also into innovation.
Develop new services, secure customer loyalty
With this in mind, we’ve devoted ourselves intensively to a specific question: in the fast-changing online business
environment, how can we keep customers coming back long-term, so that we can rely on their loyalty? With our
‘tetris’ project, we have established the essential conditions for the online business of the future and created a
cross channel offering. Customers can now get exactly the services they need, across all the different sales
channels. Now the task at hand is to successfully introduce and establish this offer - with all the added benefits
that this new structure brings for the customer: from shorter delivery times and adapted packaging sizes to more
payment options.
In the next two to three years, our job will be to use ‘tetris’ to implement all projects that create a clear benefit for
the customer. For example, foreign deliveries, PayPal as a payment option and customer service cases that
could be handled better. ‘tetris’ also provides the basis for working on further innovative service offerings.
Develop sustainable product ranges, ensure fair prices
In the medium term, we want to convert our entire coffee range to sustainable qualities. Only ecologically and
socially compatible farming methods will ensure the long-term availability of the top-quality raw coffee we
require while also safeguarding the futures of the coffee farmers and their families. However, realising this goal
is associated with major challenges. Experts estimate that less than 10% of the raw coffee grown worldwide is
cultivated in sustainable ways. That is why we work with all the internationally recognised standards organisations
that credibly promote sustainability in the coffee sector, are involved in important alliances, and organise our own
projects in the source countries. Much like with raw coffee, with textiles the biggest challenge right now is to
sustainably develop the cultivation of bulk cotton. That is why we are members of various alliances that promote
sustainable cotton cultivation, and work with projects that help people to help themselves in cotton-growing
areas. At the same time, in line with our customer orientation, we always aim to provide a sustainable range at
fair prices.
Raise customer awareness, communicate sustainability
Our environmentally and socially compatible range can only fully develop its desired effects if customers actually
recognise and demand sustainably produced goods. So one of our great concerns is to systematically provide
information to customers. In doing so we face the challenge of getting our customers to see sustainability as
a key element in a product’s quality. To do so, we have to clearly explain the many standards and seals that
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distinguish sustainable products and which can be confusing even for sustainability experts. Especially since
controversial discussions about the supposed differences in value of sustainability standards and their seals
often creates additional uncertainty among consumers.
Our job is to communicate the issue of sustainability to consumers in a credible, easily understood and engaging
way. We realise that we need to further strengthen our efforts in this regard and to step up communications: on
the product itself as well as at the point of sale, online and in print products. If we succeed at this, we will manage
to unite self-confident, environmentally conscious producers worldwide with aware, sustainably consuming
customers under our Tchibo brand. Only then will we have completely fulfilled the duties of a sustainable trading
company and our ambitious targets, 100%.
► Goals for 2012/2013
Goals 2012/2013
Key objective:
We will continue to do everything we can to strengthen our customers’ trust in our company – through resolute
customer focus, top product quality and all-out consumer protection. We continually interact with our customers
to address their expectations and concerns and align our actions to them as much as possible. Tchibo advocates
climate-friendly, sustainable consumption. This includes transparent, easily understandable consumer communi
cations, which we will further expand.
Sub-goals 2012 - Check
Status quo
Remarks
Implement measures to improve communi
cation with shop staff by expanding the shop
intranet and establishing an intranet forum
that facilitates interaction and exchange between the shops and Head Office.
fully
achieved
Expanded the shop intranet, established the
intranet forum.
Build expertise in the coffee and consumer
goods lines of business through innovative
training measures.
fully
achieved
Communication of basic knowledge through
an online coffee tutorial, Privat Kaffee learning games, a communications manual and
sales training by regional managers
Reinstate the Shop Q&A meetings: the staff’s
experience is actively solicited during moderated rounds of talks, in order to derive recom
mendations for action.
fully
achieved
The Shop Q&A meetings were reinstated
and now take place every 2 weeks. It is a key
element in our feedback process for past and
planned sales promotions.
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Sub-goals 2012 - Check
Status quo
Remarks
Intensify staff training in Customer Service to
continually improve customer care.
partly
achieved
Establishment and training of a Tchibointernal service team for Cafissimo.
All customer service agents have been trained in the new CRM system (project tetris).
For Q4/13 and Q1/14, additional training
sessions are planned, on optimised handling
of the new system and on customer commu
nications.
Annual evaluation of customer satisfaction to
identify starting points for improvements. The
next survey is scheduled for late 2012.
fully
achieved
In 2012, two customer satisfaction surveys
were carried out and starting points for
improvements were identified.
Ensure transparent, comprehensible customer communications at the Point of Sale, and
expand our use of communication options on
the Internet for more effective sustainabilityrelated communications.
partly
achieved
Created the basis for transparent, compre
hensible customer communications by
producing the Brandbook. Further developed
sustainability-related communications on
tchibo.de.
Create a Privacy/Data Protection section
on the intranet (general information, contact
persons, forms, Privacy manual).
fully
achieved
The platform was installed and is being used.
Further develop a customer loyalty management scheme that complies with privacy laws
and regulations.
fully
achieved
The customer loyalty management scheme is
currently being rolled-out.
Sub-goals 2013
Optimise the transparency of data processing as part of redesigning a privacy protection section on tchibo.de.
Expand the customer satisfaction surveys that are already regularly carried out in Germany, Austria and Switzerland to all international Tchibo subsidiaries.
Improve the phone response of the Customer Service hotlines by increasing the service centre capacities at
peak times (when customer calls increase significantly) e.g. in the run-up to Christmas or when catalogues
have been mailed out.
Develop and introduce an umbrella concept for sustainability-related communications and marketing.
Initiate systematic process & product optimisation by analysing the reasons for customer contact.
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Tchibo Sustainability Report 2012 | Environmental protection at sites and during transport
Environmental protection at sites and during transport
Our basis of life: an intact natural world
On our way towards a 100% sustainable business, environmental protection is one of Tchibo’s most
important tasks. Only if it is possible to protect the environment and preserve natural resources can we
continue to operate our business as successfully as we have done until now. Beyond this, we also see
it as part of our social responsibility to proactively support the shift towards a „green economy“.
Environmental protection plays a central role at Tchibo: at the individual phases and stages of our product supply
and value chains, as well as at our sites – our Tchibo shops, roasting plants, office buildings and warehouses.
Based on detailed analyses, in all areas of our business operations we identify where we can protect the
environment and conserve resources, with a particular focus on those aspects that we can influence directly.
For instance, we make sure the transport and delivery of our products is as climate- friendly as possible. We
are working on steadily reducing energy and water consumption at our locations. At the same time we only buy
energy from renewable, certified sources for our sites. We are putting our concept for environmentally friendly
mobility into practice by converting our fleet to more fuel-efficient vehicles. By organising special events to promote
environmental awareness at our sites, we get employees involved in our programmes in their daily work routine.
For information that cannot be conveyed digitally, almost all the paper we use today is from responsibly managed
sources. We avoid waste wherever possible, and recycle unavoidable waste or dispose of it safely.
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Systematically implementing environmental targets
Environmental protection is a key element in Tchibo’s business strategy, because a healthy environment is essential for the future of our business and the economy as a whole. From the value chain and
the business sites to the transportation and shipping of our products, we have a clear objective: to
protect the climate and conserve resources. To do this we monitor all business processes and control
them via a customised environmental management system.
On the way towards a 100% sustainable business we take measures to protect the environment across all
processes of our value and supply chain, in product design as well as at our sites. Our activities focus on the
efficient use of resources and the reduction of harmful CO2 emissions. At the same time we focus on the causes
and are especially committed to areas we can directly influence: energy and resource conservation, transport
and shipping, vehicle fleets and business travel, as well as employee motivation. The basis for our actions
according to ecological requirements forms a tailor-made environmental management system geared
to the requirements of the ISO 14001 standard.
Written rules, clear responsibilities
„We take responsibility for the environmental and social impact of our actions.“ This principle is codified in our
Tchibo DNA. In 2010, we added environmental guidelines to our binding code of conduct for all employees.
It specifies clear rules for environmentally responsible behaviour. As part of our „Zukunft braucht Herkunft“
(Future needs Heritage) corporate strategy, we have made it our goal to make our business 100% sustainable.
Besides compliance with all the relevant laws, which is self-evident, this means maintaining a dialogue with all
relevant stakeholders, and continually improving environmental protection at Tchibo in an integrated way. Each
year, we agree environmental targets, in particular with the responsible employees in the respective divisions.
In order to integrate environmental aspects in our business operations, we appoint environmental officers in the
various departments. The Corporate Responsibility division coordinates activities across departments and
companies. It ensures that the right actions are taken in the right places to ensure greater environmental
protection, and is also responsible for ‘issues management’. We monitor and analyse societal trends, current
issues and legislative initiatives, so that we can identify relevant developments for Tchibo at an early stage –
and deal with them proactively.
Joint initiatives, regular exchange of ideas
Through our membership in associations and organisations, we promote knowledge sharing between various
protagonists. Together we develop solutions to protect the environment, which are then put into practice across
the company. One example is the Carbon Performance Improvement Initiative (CPI2), which contributes to
reducing CO2 emissions in the production of consumer goods.
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► Climate protection
Counteracting climate change
Climate change is one of the most pressing global challenges. Especially in industrialised countries,
CO2 emissions must be reduced in order to counteract global warming. Tchibo’s core business is directly
impacted by the effects of climate change. For instance, extreme weather can negatively affect crop
yields of our important raw materials, coffee and cotton. To slow down this threatening development
while meeting the high expectations of our stakeholders, we analyse our value chains with regard their
CO2 emissions and initiate improvement measures where we see the greatest potential for savings and
influence.
Climate protection is an important part of our business strategy. All divisions are called on to continually reduce
their respective greenhouse gas emissions. We analyse the processes in our value chain to identify ‘hot spots’,
and then develop measures to reduce greenhouse gases as best we can, check their feasibility, and put them
into action after testing.
As a result, our business partners and we ourselves carry out measures both in our product supply chains and at
our own places of business.
Reducing CO2 emissions in the production of consumer goods
One important measure in stepping up our climate protection efforts was the founding of the Carbon Performance
Improvement Initiative (CPI2) in 2011, together with eight other trade and brand companies as well as the Foreign
Trade Association of the German Retail Trade (AVE). 30% of CO2 emissions in the lifecycle of consumer products
are released during their production alone. The CPI2 therefore aims to save several millions of tons of CO2
worldwide per year in the supply chain of imported products. The initiative’s sponsors include the German
Federal Environment Ministry (BMU). As part of CPI2, suppliers can use an online tool to evaluate their own
energy consumption and identify any inefficiencies. Based on this, they receive specific recommendations for
action in order to achieve long-term energy savings in the production process.
Responding to climate change in coffee farming
In areas where climate change is already having a negative impact, we help our partners with adaptation
measures. This applies in particular for coffee farmers in the world‘s growing regions around the equator,
especially in Central and South America, East Africa and Vietnam. As co-founders of the Coffee & Climate
initiative, we partner with other coffee companies and development organisations to come up with possible
solutions that give coffee farmers effective, locally adapted ways to respond to the changing climate.
At our locations and in logistics, we focus our climate protection activities on the following areas:
•
•
•
•
Transport and shipping
Energy consumption
Mobility
Local actions
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► Climate protection ► Transport and shipping
Reducing and offsetting CO2 emissions
To make our transport efficient and sustainable, our freight concept focuses on shipping by sea and
using intermodal transport. We manage it based on a comprehensive annual stocktaking of our carbon
footprint. In the mail-order business, we reduce climate-damaging CO2 emissions by using Deutsche
Post DHL’s ‘GoGreen’ programme for customer deliveries and paying the associated surcharge. At the
start of 2013 we won the Germany and Austria Logistics Associations’ (BVL) Supply Chain Sustain
ability Award for our integrated and strategic approach to logistics.
We have already reached an important milestone in reducing our transport-related CO2 emissions: we now emit
30% less CO2 than in 2006. We were able to meet our target for 2012 in 2011, and are now working on reducing
our GHG footprint even further.
LOTOS - Logistics towards Sustainability
The cornerstone for integrating environmental aspects in our logistics concept was laid with the LOTOS (Logistics
towards Sustainability) project. In this project, we cooperated with the Technical University of Hamburg-Harburg
and the German Federal Environment Ministry (BMU) to analyse transport methods and means, develop
targeted approaches to climate protection, and implement measures to prevent and reduce CO2 emissions. For
example, in the analysis we found that although trucks make up a minor share of overall ton-kilometres, they
cause about 20% of transport-related emissions. 95% of total ton-kilometre performance is carried by ship – this
mode of transport is responsible for around three quarters of CO2 emissions. So road and maritime transport
harbour the biggest savings potential in a comparison with all other forms of transport. We derived specific
measures from this insight. On the road, wherever possible we use collective rather than exclusive runs, thereby
reducing the number of low-load journeys. By optimising our route planning, we can transport goods to their
destination at lower speeds, using less fuel – and therefore generating less CO2 emissions. We are maintaining
the share of goods transported by rail, and are switching routes to rail wherever we can. For instance, in 2012 we
switched deliveries to our subsidiary Austrian from road to rail. Other measures included increasing the density
of freight packing, and increasing the proportion of direct deliveries.
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Gallin logistics centre
Another important step in making the supply chain sustainable was the expansion of our logistics centre in
Gallin. Since August 2012, all returns from our Tchibo shops and consumer goods Depots in Germany, Austria,
Switzerland and Eastern Europe have been processed here. To do this we expanded the centre, and the
construction was completed on schedule within ten months. Goods now go directly from the regional hubs to
Gallin, eliminating transports between the distribution centres in Neumarkt, Gallin and Bremen. This not only
shortens the processing time, but also reduces transport volumes.
Supply chain management system
The establishment of a supply chain management system allows us to
keep an eye on all merchandise flows and sales channels and effec
tively leverage synergies. Demand-driven merchandise management
and systematic inventory management for our consumer goods range
and coffee products prevent misdistribution and unnecessary transports.
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‘Zero-carbon’ shipping with ‘GoGreen’
CO2 emissions are unavoidable when shipping our goods to customers. However,
we have decided to offset them using globally accredited climate protection
projects. Offered to customers at a surcharge since 2008, the ‘GoGreen’ shipping
option has been integrated in our logistics strategy since 2012. In 2012, we became
the first major mail-order company to ship all our letters and packages exclusively
using Deutsche Post DHL’s ‘GoGreen’ programme – and we pay the surcharge of
two cents per item. This fee goes to finance globally accredited climate protection
projects.
„Climate-friendly shipping using GoGreen is an important element. It allows
us to offset emissions that we cannot
avoid at present by purchasing certifi
cates and thereby supporting certified
climate protection projects in developing
and emerging countries.“
- Stefan Dierks, Category Leader CR Product & Strategy -
We only invest the supplementary charge in projects that meet the ‘gold standard’ co-developed by the World
Wide Fund for Nature (WWF) among others. In accordance with the principle of ‘additionality’, only projects that
would not have been possible without the income from the certificates, and that also promote local economies
beyond their climate-related effects are supported.
Global climate protection projects
One of these projects is a biomass power plant in Malavalli, India. Until now plant waste in Malavalli such as corn
or sugar cane leaves was burned directly in the field or just rotted, releasing harmful emissions. To prevent this,
the waste is now collected and sold to the biomass power plant where it is burned in a boiler without toxic fumes
being released. The resulting biogas is used to generate electricity for the regional grid. Local residents also
benefit from the project’s economic aspects – jobs have been created in the biomass power plant, and farmers
or harvesters have an additional source of income from the sale of crop residues.
Tchibo in dialogue
Further improvements in the reduction of CO2emissions will be possible in future – but only if all relevant
protagonists continue to advance the issue together. We therefore work in multi-stakeholder organisations to
maximise the transfer of knowledge and ensure a common database for standardisation. Building on our existing
memberships - for example in the Sustainability Working Group of the Logistikinitiative Hamburg – we plan to
expand our cooperation with other protagonists. We will also advance further reduction measures through the
Clean Cargo Working Group (CCWG), which is part of the Business for Social Responsibility initiative, and the
world‘s largest association for environmentally friendly shipping.
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Award-winning efforts
From resource use to the manufacture of products to sales and distribution: in March 2013, Tchibo won the
Sustainability Award for Logistics 2013 given out by the German Logistics Association (BVL), and its Austrian
counterpart, for its strategically embedded approach to sustainability along the entire value chain. The jury
specifically praised the active involvement of suppliers, business partners, employees and customers in the
area of logistics.
► Climate protection ► Energy consumption
Using renewable energy, realising savings
Roasting coffee, lighting Tchibo shops, heating administration buildings – to operate our business,
we need energy every day. We have taken numerous measures at our sites with the aim of limiting our
consumption of electricity and heat.
For several years now, all German Tchibo sites have only used ‘ok-power’ certified electricity from renewable
sources: the two coffee roasting plants as well as our logistics sites, including both distribution centres, the
headquarters in Hamburg and all Tchibo shops for which we buy electricity ourselves (only a few Tchibo shops,
in shopping centres e.g., are supplied by their operators). We also offer our customers an ok-power certified
green electricity product.
The green electricity we use and we sell is entirely produced from Norwegian hydropower. Certification according
to the requirements of the ‘ok-power’ label guarantees that not only does 100% of the energy come from
renewable sources, but it also contributes to the further development of renewable energies. This means that
producers of ok-power certified electricity must continually invest in the construction or upgrading of power
plants for the production of green electricity.
Identifying potential savings
We plan to install an energy management system (EMS) at several locations for a detailed recording and analysis
of energy consumption. The ongoing calculation of consumption data reveals specific energy-saving potential
and allows for a systematic management of energy consumption. In 2012, we made further progress on estab
lishing and running such an energy management system at the company headquarters in Hamburg, the two
roasting plants, and the central warehouse in Gallin. We will implement the EMS as a control tool at our two
roasting plants in 2013.
Every year, at all locations, we perform measures to further reduce energy consumption. For example, at our
headquarters in Hamburg we have converted several outdoor areas to LED lighting. This saves us about 500
kilowatts per year. Our lift controls have been adjusted so that the lighting only comes on when people are
actually in the elevator.
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► Climate protection ► Mobility
Fuel-efficient mobility
Business trips are unavoidable in order for us to meet business partners, suppliers, customers and
colleagues face to face. Planning flexibility and time-saving aspects are important factors here. By
converting our fleet to more fuel-efficient vehicles we have, however, managed to reduce mobilityrelated CO2 emissions.
Our company fleet has 520 vehicles. In 2011, we already converted the entire field-service fleet to more fuelefficient models. This enabled us to reduce average emissions to 124 g CO2/km (as of: year-end 2012), which is
below the EU climate protection figure of 130 g CO2km. We expect to be able to reduce this figure further with
the future acquisition of new cars.
Since 1 January 2012, new purchasing guidelines have been in place for Directors’ and managers’ company cars.
They stipulate that the permitted emissions limit must be adjusted each year to reflect the state of the technology.
Testing, testing: electric vehicles
Looking to the future, we are also testing alternative new
drive technologies. For instance, our Hamburg fleet
includes three electrically powered cars, which are often
especially used for trips within the city. Our CEO Dr
Markus Conrad is setting a good example here.
Awarded the ‘Green Card’
In 2012 the German environmental organisation Deutsche
Umwelthilfe e.V. awarded us a ‘Green Card’ for credible
climate commitment’, for our resolute fleet policy focused
on reducing GHG emissions. We are one of four companies in Germany to have received the award. In 2011,
Tchibo had been awarded a ‘Yellow Card’ for our positive-but-insufficient efforts to reduce the CO2 emissions of
our company cars.
Travel over longer distances - for example to our suppliers in Asia – can only be done by plane. Even though there
is usually no substitute for personal contact, we use conference calls or video conferencing as far as possible.
Incentives to use public transport
We promote the sustainable mobility of employees at our Hamburg headquarters through cooperation with
Hamburger Hochbahn AG. Tchibo employees can buy a subsidised season ticket for public transport - the
ProfiCard. We fund the BahnCard (rail card) for frequent travellers within Germany.
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► Climate protection ► Local actions
Protecting the environment with fun and creativity
Tchibo builds employee awareness about the environment locally: with attention-grabbing specials and
information distributed via internal communications channels such as intranet, staff magazine or signage in buildings. The key message here is that everyone can contribute to protecting the environment in
their everyday lives.
In June 2012, Tchibo launched a major environmental protection campaign for the staff: the search for Tchibo’s
‘climate ambassador’. Their task: to live in a way that is as climate-friendly as possible for two weeks and record
their experiences in words and pictures. In the first part of the campaign employees were invited to apply for the
position of climate ambassador. From the applicants, we selected three promising candidates based on their
commitment, depth of implementation and motivation. For two weeks, the judging panel – sustainability experts
and project supervisors – and many others across the company followed the ambassadors’ reports about their
climate-friendly lives with great curiosity. Whether cycling in any weather or preparing food from local ingredients
– the climate ambassadors were fully committed to their role. In the second part of the campaign the jury declared
Fabian Stanzick (CRM Manager Tchibo mobile) the winner. He was judged to have caused the least CO2
emissions due to his commitment and ingenuity. An avid meat-eater, he switched to homemade salads. He
leased a current-measuring instrument from a consumer protection organisation to track the power consumption
of his electrical equipment and was unrelenting in his search for a water-saving showerhead at the hardware
store. Stanzick’s prize was a weekend at an organic ‘Bio’ Hotel. The runners-up also won prizes for their
climate-friendly efforts.
Climate Day at the company headquarters
The climate ambassadors were honoured on 20 June 2012, Tchibo’s Climate Day at the Hamburg headquarters.
On this annual day of action, employees contribute to reducing emissions through a variety of activities. They
visually expressed their support by responding to the call to wear green, which made them eligible to participate
in the ‘green thumb’ contest. 175 green thumbprints were recorded by the end of the day. The day’s programme
also included a mobile bicycle repair shop, to motivate employees to bike to work – as 100 colleagues did on
20 June 2012. Using the stairs instead of lifts led to even more exercise and fewer CO2 emissions. The day also
catered for climate protection by offering employees at the City Nordlicht company restaurant a KlimaTeller
(‘climate dish’), which was chosen by 1,200 people that day. Since then, three different climate dishes have
been on the menu every Wednesday at City Nordlicht.
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KlimaTeller (climate dish) at City Nordlicht
Initiated by Hamburg postgraduate students in 2011, the climate dish aims to
offer a tasty variety of ‘low-emissions’ meals. Even small changes in one’s
choice of food can lead to significant savings in greenhouse gas emissions
without compromising on taste. Compared to conventional meals, climate
dishes can lead to savings of more than five kilograms of CO2 per serving.
Red meat and dairy products with a total fat content of more than 15% are
avoided. Besides Tchibo, other Hamburg companies have joined the campaign
and now offer a climate dish once a week in their company restaurants.
Campaigns at the national subsidiaries
Environmental protection measures are not only implemented in Germany but also by our national subsidiaries.
For instance, Tchibo Poland launched the 3E environmental programme. Under the heading ‘Educate, Engage &
Eco-improve’ the site has set out to reduce the negative environmental impact of regional business activities.
Both in the office and the Tchibo shops, the national subsidiaries are working to calculate a carbon footprint for
all its departments, minimise emissions and thereby improve both their environmental scorecard and their
operating efficiency. As part of the programme, every year Tchibo Poland organises a Green Week with specific
actions, such as a print-free day, to build awareness for a ‘climate-friendly everyday life’.
► Resource conservation
Securing resources long-term
Tchibo treats natural resources with care and ensures that resources are used in a more and more
efficient and eco-friendly way. On the one hand, we pursue the aim of preserving the environment for
generations to come. And on the other we advocate the conservation of resources because they form
an important basis for the future of our business.
Whether coffee or consumer goods – our business depend on natural resources and an intact natural world.
Cotton and wood are the major raw materials for our consumer goods range. And we can only offer top-quality
coffee if the soil in the growing areas is fertile and – as well as the groundwater – free from pollutants. On top
of that, we need water to produce and process the raw materials.
To secure natural resources long-term, treating them with care is a priority for us: from the sourcing of raw
materials to production, to the use and later disposal of the products. So we are continuously working on
minimising our use of natural resources for products and packaging, using materials from responsibly managed
sources, saving water, and avoiding waste. In the process, we also reduce costs and take into account our
customers’ wishes.
In recent years, for example, we have steadily increased the proportion of eco-friendly grades in the paper we
use. Since 2012, we have printed our magazines and advertising materials on 100% FSC®-certified paper. For
packaging, we have established a guideline for increasing environmental sustainability, which our suppliers are
also bound to as part of the packaging specifications in their contracts.
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► Resource conservation ► Water
Handling water with care
Tchibo is committed to the responsible use of water. Without water, we could neither sell coffee nor
produce consumer goods. We also take measures to reduce water consumption at our own sites.
Water is essential for the cultivation of coffee. Especially when artificial irrigation of coffee plants is required,
we face the question of how much water is available in the growing regions, and how to use it as sparingly as
possible? Together with partner organisations – including the Rainforest Alliance, Fairtrade, UTZ Certified and
producers of organic coffee – we therefore promote water-conserving farming practices in our coffee-growing
countries. Together with these partners, we make efforts to provide coffee farmers with the necessary knowledge for careful irrigation. They learn things like paying attention to using the right amount of water, and
avoiding polluting the groundwater with fertilisers or pesticides.
The further processing of coffee also requires water. Some of the raw coffee undergoes wet processing after
harvesting. This process is used depending on the origin and variety of the coffee. For our premium qualities, for
example, we source a significant proportion of washed raw coffee. The percentage varies during the year and
depends on the product range and the recipes.
Conserving water with sustainable cotton cultivation
Water is also used in the manufacture of our products. However, the amount differs from product to product.
Growing cotton is a particularly water-intensive process. The World Wide Fund for Nature (WWF) has calculated
that in conventional cultivation, an average 20,000 litres of water are needed to produce one kilogram of cotton.
Reducing water consumption is therefore an important goal in sustainable cotton cultivation. To promote this,
we work with Textile Exchange, the Cotton made in Africa initiative (CmiA) and the Better Cotton Initiative (BCI).
These organisations prescribe environmental policies that are monitored regularly. Conserving water is an
important part of the rules.
Conscious water consumption on-site
As well as in the manufacture of our products, we also pay attention to water conservation at our administrative
sites. At our head office in Hamburg our water consumption in 2012 was 23,894 m3 (2011: 23,864 m3). This
means that water consumption remained almost the same year-on-year despite an increase in the number of
employees on-site. Informative stickers are posted throughout the building to help our employees keep an eye
on their daily water consumption during work.
We have little data about the water consumption at our Tchibo shops because the landlords of the properties
only rarely break down the relevant figures by tenant, so they are only available in exceptional cases. Given
the usage structure in Tchibo shops, their water consumption is not expected to be significant.
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► Resource conservation ► Paper
Ensuring responsible forestry
Despite the expansion of digitally controlled processes we cannot and do not want to completely
eliminate paper as a material for conveying information. In customer communications and in business
processes paper continues to play an important role for Tchibo. In recent years we have steadily increased
the share of more environmentally friendly paper qualities. At the same time we have identified areas
where paper can be saved.
Every year we print approximately 16,000 tons of paper, and are increasingly using recycled and FSC®-certified
paper in the process. To additionally reduce the amount of paper we use, piece by piece, we are working on
further expanding electronic trading process and other ways to save paper.
Switching our office paper to sustainable grades
Since 2012, our office paper has come entirely from sustainable sources. For internal printing and copying, we
only use ‘Blue Angel’ recycled paper or mixed FSC® grades when it is necessary for technical reasons. We
print all invoices to our mail-order customers on FSC®-certified paper. Our notepads and business cards are
also made from this paper grade.
Certified paper grades in customer communications
We became Germany’s first major retail company to switch our magazines and advertising materials almost
entirely to FSC® grades. The FSC® label indicates that wood and paper products come from responsibly
managed forests, certified by independent institutes according to the strict rules of the Forest Stewardship
Council (FSC®). The FSC® standards define various principles to protect the forest ecosystem and the living
and working conditions of local people.
Since 2012, all Tchibo customer magazines, catalogues and advertising materials in Germany, Austria and
Switzerland have been printed on FSC®-certified paper. To do this, at the end of 2012 Tchibo/Eduscho Austria
and Tchibo Switzerland were also successfully certified. Since then they have been entitled to use Tchibo’s own
FSC® label on wood and paper products. In the lead-up to the conversion of all of our printed customer commu
nications, all the printers Tchibo works with in this area were FSC®-certified.
The conversion process has enabled us to increase the share of paper from responsibly managed sources to
over 90%. Residual amounts of conventional paper left over from early paper ordering will be used up by the
spring of 2013. From then on all special issues will also be published on FSC®-certified paper. The switch to
sustainable paper grades at the Eastern European national subsidiaries is currently being planned.
Commitment beyond company borders
Just as in cotton and coffee, we work with various associations to advance protection of the environment and
of resources in the areas of wood and paper. In 2008, we joined the Initiative Pro Recyclingpapier (IPR), which
works to raise public awareness of the benefits of using paper produced in less environmentally damaging
ways during extraction and production. With the more than 20 other member companies of the initiative, we
support specific holistic environmental solutions that promote resource conservation and climate protection
and contribute to the preservation of biological diversity.
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Since 2011, Tchibo has also been a member of the WWF Global Forest and Trade Network (GFTN). This codifies
our commitment to increasing the share of credibly certified products in our portfolio and excluding timber from
illegal logging or other undesirable sources. To do this, we use the Forest Tracing System (FTS) that we developed
in conjunction with the WWF. It prescribes that our suppliers must prove the origin of their wood.
All Tchibo garden furniture made from tropical or boreal timber has been certified according to the standards
of the Forest Stewardship Council for over ten years. From 2013, we also plan to increase the share of FSC®
certified solid wood indoor furniture continously.
Systematic tracking
In 2012, we began to build and implement a system for forward and backward tracking of paper and cardboard
packaging for consumer goods in order to create the best possible transparency regarding the sources of raw
materials. We have written the exclusion of timber from illegal logging – ‘mixed tropical hardwood’ – into our
contracts. We also support our key strategic packaging suppliers in obtaining FSC® certification and have
performed initial tests to verify the origins of paper. In 2013, we are expanding our activities to ensure we use
legal sources and to exclude undesirable sources.
► Resource conservation ► Packaging and waste
Resource-saving packaging,
recycling-friendly disposal
Many of our products are packaged so that they are protected during storage and transportation and
customers can take them home in the best possible condition. Packaging is also used to provide
important consumer-relevant information about the product. Our goal is to make packaging as resourceefficient as possible, to avoid waste, and to return materials to the raw materials cycle.
Our packaging is made from various materials, mainly paper, carton or cardboard, plastic, wood or glass. We’ve
developed a packaging guideline that forms the basis for designing all packaging for Tchibo products. It specifies
quality as well as environmental requirements. For instance, it stipulates that all plastics used must be labelled
so that they can be recycled as secondary materials. We do not use PVC in our packaging, adhesive tapes and
labels. For printing, only inks free of solvents and heavy metal may be used. All of our packaging must be
recyclable, so that it can be returned to the raw materials cycle.
As part of our packaging specifications, we require all of our suppliers to comply with our packaging guidelines.
This code of conduct, which forms the basis of our supplier relationships, specifies binding social standards as
well as environmental protection guidelines. When our buyers select suppliers they always ensure that companies
are able to meet our environmental standards.
Switching to recycled paper
For several years we have increasingly used recycled paper for our packaging. We already contractually exclude
the use paper or cardboard made from mixed tropical hardwood in our packaging. Since March 2013, the burden
of proof has also been legally enshrined in the EU Timber Regulation. In 2013, we will review the conversion of
the low share of virgin fibre used in our packaging to FSC®.
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Eco-friendly packaging design
We are aware that we can and must make our packaging more environmentally friendly. We are therefore working
on further material savings and are continuously rethinking the individual packages. For example, the increased
use of blister packs, in which we use cellophane from renewable raw materials and parts of the product are
visible, fulfils this requirement: we save materials and improve the environmental characteristics of each package.
We also give our customers a better (pre-)view of our products.
In our coffee packaging, there is less scope for ecological optimisation than in consumer goods. The packaging
directly influences the quality of our coffee, protecting it from oxygen and light that would otherwise damage the
delicate aroma of our coffee. It is also important that the packaging be suitable for the technical filling process
and ensures good protection during transport across the entire supply chain to the end customer. But even here,
we are continually examining ways to ecologically optimise the packaging.
Recycling waste
Recycling can make an important contribution to protecting the environment. We use this instrument in several
ways. For instance, as part of the implementation of the German Battery Act, customers can hand in their
batteries to us in Tchibo shops. To ensure professional recycling, we work with the Stiftung Gemeinsames
Rücknahmesystem Batterien (GRS).
We also take back electrical equipment within the framework of warranty fulfillment. It goes without saying
that we comply with the requirements of the EU Waste Electrical and Electronic Equipment and Restriction
of Hazardous Substances directives. Both are designed to reduce the volume of electrical and electronic
waste, and the amount of hazardous substances in electrical equipment.
Reusing secondary materials
Coffee roasting produces waste, too – mainly the remnants of packaging materials, but also ‘coffee bean chaff’,
the silvery skins shed by the beans as they are roasted. To better handle this type of waste, we condense it into
pellets by adding water. At this time, our disposal service providers compost it or sell it as heating fuel.
Focus on: expanding climate protection
Protecting the environment is an ongoing task for Tchibo, and keeps raising new challenges. Though
we are already putting many climate protection and resource conservation measures into practice, we
still need to expand our efforts to maintain an intact natural world.
Climate change is one of the biggest challenges that we face today. Extreme weather events such as droughts
on the one hand and excessive rainfall on the other are the tangible effects of global warming. These weather
changes directly affect our core business. For example, eroded or arid soil leads to reduced coffee and cotton
crop yields. In view of these developments, we must work continuously and urgently to reduce our CO2 emissions across all our business activities. Our stakeholders expect this from us as well. Cooperating with other
protagonists to reach further necessary climate protection targets is of great importance for us. Because the
transport of our goods contributes a significant proportion of the company’s CO2 emissions, the task at hand is to
make it even more climate-friendly. There is also further potential for savings in the area of mobility, which we will
realise in future. We are continuing to develop our system of recording energy consumption with the upcoming
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implementation of the energy management system at our sites. On this basis, we can increase energy efficiency.
An important variable in resource conservation and waste reduction is the packaging of our weekly changing
ranges of consumer goods. We are aware that we can still achieve further improvements in this area by changing and reducing the materials used.
► Goals for 2012/2013
Goals 2012/2013
Key objective climate protection:
By 2015, we will have reduced our transport-related CO2 emissions by at least 30% compared to the reference
year 2006 (the year of Tchibo’s first carbon footprint).
Key objective resources (wood and pulp):
By 2015, 100% of the wood and pulp we use will fulfil our own FTS standard (Forest Tracing System – validated
sustainable). Tropical and boreal hardwoods as well as magazine and other high-end graphic papers used for
advertising materials, flyers etc. will meet the requirements of the FSC® (Forest Stewardship Council). Office
papers will consist of recycled paper bearing the Blue Angel eco-seal (certified sustainable).
Status quo
Remarks
In 2011, the foundations were laid for
implementing energy management
systems. Due to ongoing construction work, their implementation was
delayed to the year 2012.
partly
achieved
In 2012, we pushed forward with the development
and implementation of an energy management
system (EMS) at the Head Office in Hamburg, the
two roasting plants, and the central warehouse in
Gallin. We will implement the EMS as a recording
and evaluation tool at our two roasting plants in 2013.
Draw up and coordinate/approve a
comprehensive climate protection
concept for Tchibo GmbH.
Adopt the climate protection concept
and launch its implementation.
partly
achieved
Due to the complexity of creating a comprehensive
stocktaking and concept, which results from the
multifaceted nature of our business: systematic
development of the programmes and reduction/
remedial measures in our individual ranges and
processes. E.g. membership in the CPI2 initiative,
increased the share of sustainably cultivated varieties in coffee, cotton and wood; continued the
LOTOS (Logistic towards sustainability) logistics
programme; membership in the Coffee and Climate
initiative, etc.
Climate protection
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Status quo
Remarks
Switch all magazine-grade papers to
100% FSC® quality. Make prepa
rations for switching office papers
(business stationery, notepads,
business cards).
fully achieved
Since 2012, all of the paper used in our offices is
100% from sustainable sources: for in-house printing
and copying we only use recycled paper bearing
the ‘Blue Angel’ seal, or FSC®-Mix grades if this is
necessary for technical reasons. All invoices to our
mail-order customers are printed on FSC®-certified
paper, as are our notepads and business cards.
Also since 2012, all Tchibo customer magazines,
catalogues and advertising materials in Germany,
Austria and Switzerland have been printed on FSC®certified paper.
Develop and implement a system
for forward and backward tracing of
the paper and cardboard packaging
of our consumer goods, to create
transparency and rule out the use of
paper/pulp from overexploitation.
partly
achieved
In 2012 we started building and implementing the
system for forward and backward tracing of the
paper and cardboard packaging of our consumer
goods and. We have codified the exclusion of wood
from overexploited areas, known as ‘Mixed Tropical
Hardwood’, in our contracts. We also supported our
key strategic packaging suppliers in gaining FSC
certification and have carried out initial tests to verify
the origins of the paper. In 2013, we will expand our
activities ensure legal sources and rule out undesirable
source.
Resources (wood and pulp)
Sub-goals 2013
Climate protection
Set up an energy management system in accordance with ISO 50001 at our roasting plants.
Obtain our first energy management certification for a site.
Continue to develop our range of climate-friendly energy.
Further develop our LOTOS (Logistics towards sustainability) logistics programme incl. defining a new target
for 2015 and a ‘Strategy 2020’.
Evolve the fleet policy into a long-term strategy.
Resources
Continue to step up the use of wood and paper from responsible sources.
Further develop the packaging concept for our consumer goods with the aim of increasing its ecocompatibility.
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Tchibo Sustainability Report 2012 | Services for employees
Services for employees
Passionate employees for long-term success
As a family-owned business we have a strong corporate culture, because we realise that well-qualified,
passionate and motivated workers are the foundation of our long-term success. We expect a high level
of performance from our employees. To enable this, we create an environment which our employees
enjoy working in and where they find ways to achieve a good work-life balance.
Whether in coffee, consumer goods or services – Tchibo keeps coming up with surprising new ideas that we
ultimately bring to customers through the hard work and passionate commitment of our employees. The diversity
of our product range is produced in an equally diverse work environment that allows our employees to realise
their full potential. We foster a corporate culture of appreciation and dialogue, and promote the personal and
professional development of our employees. We create family-friendly jobs by being flexible about working hours
and workplaces, providing childcare services for our employees, and finding individual solutions for employees
with family members requiring care. As part of our company health management system, we help our employees
stay healthy and fit for work. Ergonomic workplace design, extensive counselling services, and sport and fitness
opportunities are investments in a working environment that is conducive to health. Appropriate compensation
and voluntary social benefits distinguish us as an employer. And because our commitment goes beyond the daily
business routine, we also include our employees in social activities.
Our commitment is already generating positive attention: in external studies and in an external survey, young
professionals with up to eight years of work experience once again ranked Tchibo among Germany’s 100 most
desirable employers.
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Far-sighted and close to our employees
Our company’s most important resource is its staff. We are equally convinced about this today as
Tchibo founder Max Herz was back in 1949. Attracting them to the company, maintaining their motivation, providing them with opportunities for further development and retaining them in the company for
the long-term are key concerns of Tchibo on our way towards a 100% sustainable business. In addition,
we strive to attract new and talented professionals to Tchibo. We restructured our Human Resources
department in 2012 to even better meet the demands of the changing world of work and the needs of
employees.
The world of work has changed radically in recent years – and with it the challenges that companies face in their
HR policies. Issues such as lifelong learning, flexible working hours and the increasing competition for the right
talent are increasingly the focus of attention. As part of the ongoing transformation of the world of work, these
and other trends must be identified early on and suitable measures derived and implemented.
Strategically anchored: Human Resources in changing work environments
Tchibo tackles these challenges at a strategic and operational level. Our top priority is to fulfil the diverse needs
of employees, managers and potential candidates as best we can. As part of the ongoing transformation of the
world of work trends must be identified early on and suitable measures derived and implemented.
HR work at Tchibo therefore covers a broad spectrum. The Human Resources department controls Group-wide
HR processes and advises managers. Employees can come here to talk about personal matters, and we also
handle operational work processes here, such as payslips and contracts. The Tchibo Campus, which opened in
2012, and our Management Dialogue are examples of the use of modern HR tools designed to further develop
employees, managers and the company as a whole. We also use a wide range of channels to search for
interesting candidates whom we hope to get excited about our company.
A future-proof setup: the new HR structure
To better reflect the diversity of HR-related issues, we introduced a new organisational structure based on six
units for our Human Resources department on 1 August 2012. Each unit has clear responsibilities and concen
trates on its core tasks. The new structure will allow us to be even closer to individual employees and to provide
the best possible support to them in their personal development. Employees and managers each have a contact
person for their specific needs. At the same time, the new setup allows us to meet the challenges of the changing world of work even more effectively and adapt our work models to this change. The individual units regularly
exchange information and contribute their specialist knowledge on handling employee concerns, (employment)
market requirements, and professional issues to the development of viable solutions. The key elements of the
new structure are:
• Marketing and Recruitment
The Marketing & Recruiting team is mainly responsible for marketing Tchibo as an attractive employer and
recruiting suitable employees: by approaching candidates on various target-group-specific channels and
through a professional recruitment processes.
• Service team
The Service team handles all personal concerns of the back office, sales and Tchibo shop staff. For example,
it answers questions about employment contracts, makes sure the necessary certificates are issued, and
advises on issues such as part-time work, parental leave, and returning to work.
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• Business Partners
The Business Partners team is in charge of advising managers on all management-related topics – from
salary increases for employees and staff development to improving their organisational structures and office
routines.
• Talent Management and Staff Development
The Talent Management and Personnel Development team’s work focuses on the ongoing development of our
staff and the systematic promotion of talented young managers. Adapting to current challenges safeguards the
effectiveness of teams, executives and employees, and facilitates career paths.
• Controlling and Compensation
The Controlling and Compensation team develops standards and controls processes that ensure transparent,
fair and motivating compensation for employees in Germany and internationally. It supports employees who go
abroad for Tchibo in all administrative and tax-related matters. This team is also in charge of personnel cost
planning.
• Facility Management
Adapting work environments to the needs of present and future employees is one of the tasks handled by
Facility Management. The team develops solutions for designing an appropriate working environment. Quiet
rooms for concentrated work are given consideration, as are communication areas where employees can
interact and exchange ideas.
► Corporate culture and values
Being considerate and learning from each other
We want motivated employees who enjoy working at Tchibo, treat each other with honesty and openness, and always represent the values of the company, both inside the company and to the outside.
That is why our corporate culture promotes open dialogue: we welcome employees’ ideas, suggestions
and constructive criticism and take them seriously. We host joint dialogue formats across various
hierarchical levels. In 2012, we conducted an employee survey in Germany for the first time, with the
assistance of the consulting firm Aon Hewitt, to gauge the degree of employee engagement and identify
areas in need of improvement.
„
Well-qualified, passionate and motivated employees are the foundation of our long-term success“ - this insight
is codified in our Tchibo DNA. Published in 2011, it describes the factors that determine our success, including
our corporate culture. The Tchibo DNA is complemented by our Code of Conduct, which defines the values and
modes of conduct for the day-to-day business, and applies to all employees at all hierarchical levels. It formu
lates fairness and ethical business practices as well as the self-evident compliance with all laws, privacy
protection, and environmental and social responsibility.
Our aspiration: good leadership motivates and supports
Motivation, passion and the enjoyment of one’s work are significantly influenced by the atmosphere in the team
and the supervisor’s leadership. At Tchibo, good leadership includes communicating clear goals and pointing up
ways to achieve them, giving constructive feedback, appreciating people’s work, and supporting individuals in
developing their potential. Our expectations of managers are defined in the ‘Management Guidelines’, which we
communicate in various tutorials that are mandatory for new managers. When we hire new managers or promote
staff, existing management and social skills are important selection criteria.
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In dialogue: systematic exchange between managers and team
In 2011 we established the Management Dialogue to
ensure a regular and systematic exchange of ideas about
leadership and the quality of teamwork. In a first step, staff
submit an anonymous assessment of their supervisor and
the cooperation on their team, which is evaluated by an
external service provider. This is followed by a dialogue
workshop in which the managers and their teams engage
in a constructive discussion, on request with the support of
an external moderator and - if necessary - jointly develop
measures to strengthen cooperation. These are recorded
in writing.
Always in the picture: information and open exchange
We place a great priority on open and honest communication within the company. We keep all employees
informed about important developments via the intranet, company brochures and the staff magazine ‘smile’ –
and thereby create transparency.
We foster dialogue and promote an open exchange across hierarchical levels to involve employees in the
company‘s development. An anonymous forum is available for this on the intranet. In addition, we have developed various dialogue formats – such as our roundtable, which offers the opportunity to work together to find
answers to questions that are relevant for the company. In the first half of 2013, for example, 12 employees met
for three roundtable discussions with Tchibo CEO Dr Markus Conrad to discuss values-driven behaviour and
unresolved issues regarding employees and service providers. They jointly developed specific measures that led
to executive board decisions. It was decided, for example, that the existing structures for occupational health
management (Betriebliches Gesundheitsmanagement) would be systematically expanded, and that jointly
defined core measures would be implemented across all divisions in a timely manner.
Another example of how we involve our employees is our ‘Kolibri’ ideas management system, which translates
to ‘hummingbird’ and stands for ‘Kollegen liefern brillante Ideen’ (colleagues supply brilliant ideas). We encourage
our staff to contribute their own suggestions for innovative products, simplif ying in-house processes, or ecofriendly practices. The Tchibo ideas manager in the HR department manages the evaluation process;
expert assessments are carried out in the departments. The best ideas are rewarded and put into action.
Exercising influence: codetermination in the company
We also give employees the chance to actively shape the company and influence business decisions through
their participation on the works council and supervisory board. Based on the requirements of the German Works
Constitution Act (BetrVG) and Co-Determination Act, the works council consists of 35 members, six of whom
belong to the trade union ver.di. In 2012, the works council held more than 150 meetings and mainly dealt with
the topics of the employee survey, occupational health management, management behaviour and training. The
works council contributes to the company’s development in close coordination with the supervisory board, which
consists of equal numbers of employees and shareholders, and the executive board.
Measuring engagement: employee survey 2012
How willing are employees to speak positively about Tchibo, to devote their energy to the company and to work
for us long-term? In September 2012, we explored these questions in an employee survey with the support of
the external company Aon Hewitt. Nearly 4,000 people, including a representative sample of 1,000 Tchibo shop
staff, were interviewed on their commitment to Tchibo and on their work environment. With a participation rate of
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63%, we achieved a very response. But the result is not satisfactory, because the commitment rating for Tchibo
GmbH is 50% – the average score for German companies. The comparable results at our Eastern European
subsidiaries were between 33% and 72%.
We also paid attention to identif ying specific strengths and weaknesses at divisional level and across Tchibo.
The findings: all divisions gave positive ratings for aspects like customer focus, job tasks, and opportunities for
training and development. However, there was criticism of the cooperation between the different divisions and
with the management, and of the (lack of) opportunities for professional development. Communication and
information are seen as not purposeful enough and not timely enough. These results show us there is a clear
need for action.
We are working on two levels in this connection. Within the divisions, executives and employees have already
drawn up individual improvement measures in conjunction with the HR department’s Business Partners unit. In
order to develop purposeful company-wide approaches as well, we are deepening our understanding, conducting
interviews and organising focus groups with managers and employees. The findings will be translated into
concrete measures by the executive board and divisional directors.
► Corporate culture and values ► Diversity and equal opportunity
Promoting diversity, offering equal opportunity
Tchibo is characterised by a culture of diversity in which there is no place for discrimination. Regardless of age, gender, race, sexual orientation, religious belief, physical constitution, or any other personal
characteristics, at Tchibo all employees have the same opportunities. Each individual contributes to
Tchibo’s success with their individuality.
We have enshrined the importance of diversity and equality in our Code of Conduct and practice it every day.
All Tchibo employees receive regular training on the Code of Conduct – including, of course, new hires. It goes
without saying that our measures to strengthen diversity and equality correspond to Germany’s General Equal
Treatment Act (AGG), also known as the Anti-Discrimination Act.
Job evaluation: Hay Group system ensures fair salaries
Equal opportunity also applies to our salary system. To ensure comparable compensation for administrative,
sales and production employees, we have used the Hay Job Evaluation system since 1996. A job description
documents the key responsibilities of a position and gives an overview of the tasks and requirements. The job is
then evaluated using standardised, comparable criteria to make the requirements quantifiable. The criteria are:
‘know-how’, ‘problem-solving’ and ‘accountability’.
Support for workers with disabilities
Our culture of diversity also includes employees with disabilities, of course. We give them professional support
in establishing or maintaining a balance between the demands of working life and their personal resources.
In cooperation with the NetO project, which is supported by the European Social Fund (ESF) and Hamburg’s
Integration Office, we offer targeted soft skills training to help employees with disabilities make their daily work
routine more effective, more successful and less stressful. The seminars cover topics including time management,
communication strategies and relaxation techniques, and are free for employees.
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Anonymous point of contact: the Whistleblowing Hotline
We want to give our employees the opportunity to report or express concern or doubt about their own or others‘
wrongdoing or misconduct, including with regard to equality and diversity, without putting themselves at risk.
So in 2009 we set up a Whistleblowing Hotline: an anonymous point of contact where employees, suppliers
and customers can blow the whistle on violations of the Code of Conduct or suspicious conduct involving, e.g.
infringements of the law, financial misconduct, endangerment of people or the environment, or unethical behaviour.
The Whistleblowing Hotline is operated by an independent company, is multilingual, and is open 24/7. Its staff
are sworn to absolute secrecy and confidentiality. If further investigation is necessary, the information is anonymised
and submitted to the Ombudsman Council. The ombudsman council is our internal investigation committee
consisting of various executives from maxingvest ag and Tchibo GmbH, as well as the works council chairman.
Since 2009, the Whistleblowing Hotline has received 19 reports of possible violations of the Code of Conduct,
eight of which were from Germany. In general, most of them were tip-offs from head offices and varied greatly
in terms of quality and depth. Where there was indeed misconduct, the investigations have already led to
consequences.
In some areas of our logistics processes, we work with subcontractors. In this connection, we introduced a
comprehensive program to ensure that the contractual arrangements we sign with our subcontractors regarding
working conditions and wages are actually put into practice. We are also developing and implementing new
processes to monitor the actual conditions on site.
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► Training and development
Key to success:
investing in the development of employees
Qualified staff and talented young people play a crucial role in our long- term success. To secure these
human resources, we invest in the vocational and further training of our workforce and offer a variety of
individual oppor tunities for development.
The competition of the future will be decided in the personnel markets. In times of demographic change and
scarcity of adequate manpower, Tchibo has once again significantly expanded its recruiting and continued-training
activities. It is important to win next-generation talent at an early stage and let them know about attractive future
prospects within the company.
Recruiting: meeting young target groups, providing career guidance
We exhibit at regional and national trade fairs to introduce motivated interns, trainees and direct starters to
Tchibo as a potential employer. We deliberately choose a variety of job fair formats, such as the Graduate
Congress in Cologne. Since 2011 we have also focused on in-house events to give future workers specific
insights into our company. In 2013, our Chief HR Officer presented our company to 60 students during the
Hamburg Company Tour, which gives students the opportunity to get to know about a dozen companies in
a single day. And as part of our cooperation with the Catholic University of Eichstätt-Ingolstadt, ten students
were invited to a hands-on day at head office. They worked on a case study under the guidance of the
Corporate Management department.
Since 2013, we have used another novel method of recruiting: our recommend-a-friend programme
‚Network‘ actively involves our employees in the process. They can propose candidates for advertised
positions.
First insights into the world of work: from the classroom to junior employee
In 2012 Tchibo participated in Girls and Boys Day for the twelfth time: 40 boys and girls in years 5 to 10 accepted
the invitation to visit their parents’ workplace to see what they do. On ‘JungsTag’, a campaign run by the Mecklenburg-Vorpommern state government to help boys with choosing a career and planning their lives, 13 pupils
aged 11 to 14 visited the Tchibo logistics centre in Gallin.
Career entry with prospects: internship,
(dual-track) vocational training and trainee program
The company offers junior employees who want to start their careers at Tchibo a wide range of career
opportunities – from internships and a trainee program to (dual-track) vocational training.
Tchibo values the commitment and potential of its interns and as a member of the Fair Company initiative
organised by karriere.de is committed to ‘fair’ internships. This means that the jobs they are given correspond
to the students’ qualifications and expectations and they receive appropriate compensation.
Tchibo offers a variety of full apprenticeships in commercial and technical-industrial professions, with a focus
on commercial professions.
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Apprenticeships at Tchibo
Commercial apprenticeships:
• Bachelor of Science/Business IT
• Bachelor of Arts/Business Administration, Commerce
• Bachelor of Arts/Commercial management
• Visual marketing designer
• Industrial manager
• Wholesale and export trader
• Office communications manager
Technical and industrial occupations:
• Warehouse specialist
• Warehouse logistics specialist
• Industrial mechanic
• Mechatronics technician
• Food engineering specialist
• Chef
In 2012, 52 young people started apprenticeships at Tchibo. In total, there were 158 apprentices at our companies, of which 69 successfully completed their training in 2012. Back office trainees get to know Tchibo particu
larly well, because they are posted to different positions and departments where they are trained in key skills
such as a sense of responsibility, customer focus, and team spirit. For example, retail sales apprentices indepen
dently run a Tchibo shop for a week. During this time, their superiors are only reachable by phone and they get
first-hand experience of the daily work routine and interacting with customers. To promote a sense of camaraderie among the apprentices, we organised a joint sailing event in 2012.
As a general rule, apprentices who score an average grade of 2.0 (B) or better are offered a permanent full-time
position at Tchibo after completing their training.
In 2012, twelve trainees also familiarised themselves with the workaday routine at Tchibo – six of them started
that year. We took our trainees on a sailing trip in 2012 as well, to strengthen their team spirit.
Continual input: development and training at Tchibo
We see targeted and individual staff development as part of a corporate culture that
values its employees. In 2012, under the heading ‘zusammen. weiter. wachsen.‘
(‘continuing. growth. together’) we opened the Tchibo Campus, a place of devel
opment, learning and networking. It replaces the previous ‘Bohnaparte’ (Beana
parte) training program and offers a wide variety of opportunities for training and
development. The Tchibo Campus is aimed equally at employees and executives,
and answers such questions: “How do I turn an idea into a coherent concept?” or
“How do I strengthen my leadership?” The Tchibo Business School, which is part of the Tchibo Campus, regularly
hosts expert presentations on topics such as improving self-management or preventing psychological stress.
HR Development offers an extensive programme of seminars for the ongoing personal development of our
staff. In 2012, we added topics like ‘concept creation’ and ‘storytelling’ to the range. The portfolio also includes
seminars on staff management– e.g. on good leadership – and ‘coffee expertise seminars’. At these one-day
training courses, offered monthly, employees can learn all about coffee, including sustainability and social
commitment. For new employees, we also regularly host the ‘Tchibo stellt sich vor’ (Presenting: Tchibo) intro
ductory seminar.
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In 2012 we added online tutorials to our continuing-training activities. For example, once a year all employees
take a tutorial on data protection/privacy. For Tchibo shop employees we offer training at the point of sale. In
coaching sessions, presentations and supplementary information materials, we show them how they can best
answer customers’ questions about the origin and manufacture of our products, and about sustainability at Tchibo.
International postings: gaining intercultural experience
We want our employees to benefit from the international nature of our business, too, and get to know the daily
business routines at places far away from their usual jobs. Tchibo offers three different deployment programmes.
The first programme provides short-term secondments of four to twelve months, usually tied to specific projects
or a particular requirement in a local market. A second posting scheme is part of the trainee programme, and the
third is a long-term posting under the DRIVE (DRiving International development Via Exchange) development
programme. The latter serves to systematically advance the professional and personal skills of Tchibo ‘talents’
through long-term postings abroad. In 2012, a total of 14 employees were sent abroad within our international
markets, eleven of them from the company’s head office in Hamburg.
Management programme: staying in touch with the basis
In 2011 we launched the new ‘Tchibo Triathlon +1’ management programme. It involves the Executive Board and all
members of senior management spending time in the three
sales divisions – Filiale (Tchibo shops), online on www.tchibo.
de and supermarket Depots – and our B2B business Coffee
Service division, all within a year, so that they can experience
the business operations first-hand and have direct contact
with the customer. In the spirit of our Tchibo DNA, the idea is
to hone customer focus and appreciation of the protagonists
at the various points of sale, and to get to know the processes that are essential to our company’s success first-hand
and on the ground.
► Work-life balance
Integrated in our HR management:
family-friendly offers
Tchibo is one of the most family-friendly companies in Germany. We help our employees maintain a
healthy work-life balance by offering flexible solutions for the workaday routine.
In August 2010, Tchibo became the first retail company in Germany to be certified as a
‘family-conscious employer’ by berufundfamilie gGmbH – an initiative by the Hertie
Foundation. Its accredited seal for family-friendly HR policies is valid for three years at
a time. As part of the certification process, we have agreed goals in eight fields of
action. An external auditor monitors the degree to which they have been fulfilled. In
2012, we decided to seek re-certification for another three years in 2013.
The audit is also an incentive for us to further improve the work-life balance in our
company, because integrating family concerns in our HR policy helps to safeguard the future of our business
- especially in view of demographic change. In 2010 we developed a ‘master plan’ defining objectives and
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projects to be implemented by August 2013. The first year was mostly about planning, brainstorming, analysing
requirements and developing concepts. In 2011 the focus was on implementation and communication, and in
2012 it was time to evaluate the measures.
Being flexible: new working time models
As part of the master plan, we revised the company agreements on ‘Working hours’ and ‘Part-time employment’
for all employee groups, and added a ‘Work-life balance’ section. The revised agreements give executives the
option to work part-time as well, and employees can work from home some days. Information about such ‘home
office’ arrangements is posted on the intranet. Tchibo has also launched its first job-sharing models, and staff
can also apply for a sabbatical if they want to take extended time off from work.
In a pilot project at our Gallin Logistics Centre, we have broken down the usual shift plans to meet employee
requirements. There are 43 different working time models that enable employees to work permanent morning
shifts, for example, or individually choose pure day-shift models with varying starting and finishing times. It is
also possible to work full-time for three weeks and then spend the fourth week with family members requiring
care, for example. This flexibility has led to a high rate of employee satisfaction and low staff turnover. Tchibo
entered this pilot project in the ‘Erfolgsfaktor Familie 2012’ (‘Family – Factor of Success 2012’) company
contest sponsored by the Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ),
and was among the 42 finalists from more than 530 applicants.
Chancellor Dr Angela Merkel and Federal Family Minister Dr Kristina Schröder together with the 42 finalists. Tchibo was represented by Yves Müller.
Staying in touch: employees on parental leave
To help employees on parental leave stay in touch with the company and facilitate their return to work, for more
than two years we have successfully implemented our ‘connection concept’, whereby ‘buddies’ ensure that the
parents are kept abreast of all the important information, and at-home access to the intranet is provided. When
the child is born, we present them with a gift: the children‘s book „Bei Tchibo sind die Löwen los“ (The Lions Are
Loose At Tchibo). It was developed by Tchibo employees for Tchibo staff families and describes the company
and the various jobs of its employees in a child-friendly, entertaining way. During their parental leave, we invite
mothers and fathers to a get-together where the Work-Life Balance coordinator, Business Partners from the HR
department, and managers provide updates about company-related topics and people have an opportunity to chat.
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Well taken care of: childcare
A good work-life balance requires reliable childcare. Since
2006, Tchibo has cooperated with the ‘Elbkinder’ association
of Hamburg childcare centres. At the City North childcare
centre, in the immediate neighbourhood of the Hamburg
headquarters, 33 places are reserved for the children of
Tchibo employees. Since 2012, another ten places have
been available at other nearby childcare centres. Tchibo
also provides care services during the holidays. Since 2011,
children of employees in Hamburg have been eligible to
participate in the ‘kidz playground’ holiday day-care programme. Similarly, the ‘pme Familienservice’ offers holiday
care for the children of company employees all over Germany.
Tchibo has been cooperating with this independent consulting
and recruitment service since 2009. It helps families to successfully combine their work and private lives. pme
Familienservice also offers seminars, workshops and events providing advice about family issues. Since 2012,
we have extended the cooperation by an important offer: life coaching, including an emergency hotline.
If the child minder doesn’t turn up or a child is sick – Family Services helps out by providing short-notice care for
unforeseen situations. Our employees in Gallin and all German Tchibo shops have also had access to its
services since 2010. In 2012, a baby changing room was installed at the Hamburg headquarters following a
suggestion from our ‘Kolibri’ ideas management system (Colleagues supply brilliant ideas).
Fully informed: the intranet and staff appraisals
In 2011 we added a Work-Life Balance section to our intranet. It gives all staff access to resources such as the
‘Our Extras For You’ brochure, which provides information about all the ways we help employees juggle their
work and personal requirements. To ensure the issue becomes a given in everyday business, it must also be
reflected in the management culture – so we have integrated it into our management training.
Digging deeper: our employee survey
Do employees feel well informed about work-life balance offers? And how much do they use them? We received
answers to these questions in the 2012 employee survey. Where employees still felt insufficiently informed a
year earlier, they now rated the information situation as good. However, they do not yet use our services to the
extent we envisioned. So during the follow-up audit for ‘berufundfamilie’ (Work-Life Balance) certification, we will
have to critically examine the extent to which the measures actually meet employees‘ needs, and where could be
improved. To prepare for re-certification, in 2013 workshops will be held with the executive board, managers and
employees, and new goals derived from them – because we plan to further the work-life balance and sharpen
Tchibo’s profile as a family-friendly company. This will increase employee loyalty and retention in our company,
and Tchibo’s attractiveness in the competition for specialists and trainees.
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► Health management and occupational safety
Health as a success factor: motivated and fit at work
Healthy, motivated – and therefore productive – employees are the basis for our company’s success.
We therefore pay great attention to the physical and mental health of our workforce, and embrace a
variety of measures to safeguard the general wellbeing of our employees and maintain a safe and
healthy working environment.
Our employees live up to exacting demands every day - from career starters to seasoned managers. The flat
hierarchies at Tchibo are accompanied by an early assumption of responsibility, and the demands placed on
managers are on a steady rise. Tchibo is aware of its high standards and takes this into account through
employee benefits, family-friendly offers, and a healthy working environment. To safeguard the fitness of our
staff - and thus the profitability of Tchibo – we rely on a health management system that is tailored to the needs
of the company and the target group.
Structured health management, long-term fitness
Tchibo has invested in a healthy working environment for many years. This includes ergonomically designed
workstations, balanced meals in the staff restaurant, an extensive health-promoting sports programme, and free
health checks including flu vaccinations. We added another important component in 2012: stress prevention.
In 2012, we also gradually integrated existing and new measures and developed them into a comprehensive
health management system, which is anchored at executive board and senior management level via the steering
committee. With this approach, we seek to develop our work setting beyond ‘traditional’ matters of health, for a
working routine that promotes health and empowers employees to take action for their own health. This means
including all operational processes and structures as well as departments in the health management system.
The system is supported in its respective functions by the Human Resources department, the company doctor,
the occupational health and safety specialist, the representative for employees with disabilities, and the Corporate Responsibility and Corporate Communications departments. A close and targeted cooperation with the
works council is maintained at both the staff and the management levels. Thus Tchibo’s efforts to promote the
wellbeing of its employees go beyond the statutory requirements.
We further expanded our workplace health management
structures in 2012 by adding specific measures with a focus
on the prevention of mental stress – this especially with the
ongoing heated public debate about ‘burnout’ in mind. For
instance, there were workshops to build awareness among
managers, and various follow-up seminars, newly integrated
into the Tchibo Campus, for executives (‘Healthy management’), and employees (‘Staying stable during change’). In
addition the Tchibo Business School organised internal
events on mental health, and seminars were hosted for
selected employees, including HR and works council staff, on how to conduct initial consulting sessions with
colleagues affected by psychological stress. At the same time, pme Familienservice’s life coaching hotline was
added to the consultation portfolio as a nationwide service for Tchibo employees seeking advice. So prevention
is a clear priority in our catalogue of measures to combat psychological stress. The step-by-step reintegration
of employees who were ill for extended periods is also one of the measures provided by company health management. A cross-divisional project team is advancing the further expansion of stress prevention measures in close
consultation with the executive board, senior managers, and the works council.
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To help employees quickly find what they are looking for, we have listed all occupational health management
measures, including contact persons and contact details, in a clear and structured sub-section of our Tchibo
intranet.
As a next step in the evolution of our health management system, we plan to develop target group-specific
measures. We have established interdisciplinary project teams for various topics and areas of the company,
whose managers are coordinating closely with the executive board and senior management. In 2013 we plan to
focus our work on the four areas of Tchibo shops (Filiale), Depots, the head office in Hamburg, and the supply
chain (logistics and production). By 2015, we aim to systematically group the individual measures into the five
topics of occupational safety, exercise, nutrition, medical advice and mental health.
A safe working environment
Workplace safety is not only closely related to promoting health, it is actually integrated into our company health
management. The idea is to prevent accidents and work-related illness and provide ergonomically designed,
safe workplaces that meet the legal requirements. To ensure this, we constantly monitor work-environment
factors such as air conditioning, office lighting and noise, which could affect the performance of employees.
Workplace safety at Tchibo is determined by legal requirements. Objectives and responsibilities are clearly
defined in our occupational health and safety guidelines. Our workplace safety is decentralised, meaning that
there are separate workplace safety structures in place for the various locations – such as the head office,
Tchibo shops, logistics, and roasting plants – which correspond to their respective circumstances. We have set
up local workplace safety committees, and train safety experts in-house. Our workplace safety requirements
also extend to the Planning and Sourcing departments. For example, safety checks are performed when
upgrading Tchibo shops or when purchasing workplace equipment and work materials. While this process has
already been completed for our roasting plants, and is set to be expanded to other areas. All Tchibo employees
are collectively insured against accident at work.
Minimising hazards, providing information about risks
One of the key measures in 2012 was a fire drill, in which our
evacuation officers participated. During the course of this it was
made clear that escape routes must not be obstructed during
the daily routine, and fire doors must not be wedged open. In
addition, B•A•D GmbH, an independent workplace safety
service provider, visited 110 Tchibo shops as part of our company medical care. Based on a checklist developed by Tchibo,
possible dangers were assessed and – where necessary – measures were proposed to eliminate them. Tchibo GmbH’s workplace safety officer carried out a statistical analysis of the visits.
For 2013, we plan to publish a health and safety manual that includes a fire safety handbook. We will present
these manuals during an information event as part of building management awareness.
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► Compensation and voluntary employee benefits
Letting employees share in the company‘s success,
providing fair pay
Tchibo places high demands on its employees. In return, they can count on appropriate recognition
through an attractive and fair compensation commensurate with their performance, as well as a variety
of employee benefits provided voluntarily by the company.
Our employees largely determine the success of our company. For this they not only receive our appreciation,
but also suitable, competitive compensation. To maintain neutrality and transparency in our compensation system,
we have used the Hay Group’s job evaluation system since 1996. Since 2009, Hay Job Evaluation has also
applied for international locations. Each job is objectively assessed in terms of its requirements and assigned to
one salary bracket according to a standardised procedure. For each pay grade, salary ranges are set, in which
the individual salaries of employees can develop from one salary round to the next, depending in particular on
their performance.
For the employees at our Tchibo shops, we take our cue from collective agreements for the retail trade. In 2012
we introduced a bonus for the shop managers, to strengthen their sense of responsibility and reward them for
the successful management of the shop under their supervision. We are only affected by the issue of low wages
in the area of services such as stocking shelves or working on the Coffee Bars in our Tchibo shops. We do not
currently pay less than EUR 8.31 per hour, or EUR 8.73 per hour if paid holiday and Christmas bonuses are included.
Additional company benefits for employees
We provide monetary rewards for outstanding performance in the form of bonuses and premiums. They also
serve as an incentive for employees who fall within and outside the scope of collective wage agreements to
continue to pursue ambitious goals. In addition, Tchibo granted special allowances such as Christmas and
holiday bonuses, which were paid in 2012, including voluntary, not collectively agreed shares.
Healthy and well-adjusted employees are also part of a good corporate culture. We therefore invest in compre
hensive package of voluntary social benefits. This allows our employees in Hamburg, for instance, to take part in
over 30 different types of sport, use an on-site swimming pool and gym for a small contribution. Employees living
outside of Hamburg often have the opportunity to use gyms at special rates thanks to works council agreements.
We also offer discounts on Tchibo products.
Here is an overview of our current benefits package:
•
•
•
•
•
•
•
•
•
•
•
Flexible working hours models such as trust-based working hours, flextime, part-time and work from home
Preventive/pension benefits (such as group accident insurance, company pension)
Anniversary gifts
Preventive healthcare
Employee discounts and a monthly coffee allowance
Public transport subsidies
Employee canteen and cafeteria, coffee kitchens on all floors with a range of coffee, tea, cocoa and mineral
water, free to employees
Facilities at the Sports and Leisure Centre
A company sports programme
Reserved places at the City Nord children’s daycare centre in Hamburg
Children‘s events
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•
•
•
•
Events for retired employees
A Christmas roast
Christmas and Easter gifts
Organisation of parties and celebrations (e.g. summer party)
Pension provisions: investing in the future
Apart from a good working environment, we want to offer our employees prospects for their future: For over
ten years, we have offered all employees of Tchibo GmbH and its domestic subsidiaries a company pension
scheme. The capital payment amount is based on the employees’ contractual position and how long they have
worked for the company. As part of the ‘wage agreement-related and statutory pension scheme’, all Tchibo
employees also have the option of accumulating an additional pension pot through payments that are exempt
from taxes and social security contributions. We also offer direct insurance, and for our managers optional
deferred compensation, as further private pension plans. Our HR department advises employees personally
so that they can find the best retirement provision tools for themselves.
Corporate citizenship
Tchibo sees itself as an active member of society and – together with its employees – takes responsibility. As
part of our commitment to the region, we donate roasted coffee and food to neighbourhood initiatives, charities
and Germany’s food banks. A raffle at the Christmas bazaar organised for Tchibo employees in 2012 raised EUR
2,675 for the City Nord daycare centre.
In the ‘Spende deine Hände’ (Lend a Hand) campaign organised by the youth organisation Schüler Helfen Leben
e.V., pupils in year 5 or higher can help out at one of our Tchibo shops for a day. Participating schoolchildren
donate their ‘pay’ for the day – 50 EUR per child – to a project of their choice that benefits disadvantaged
children and youth in southeastern Europe. In 2012, 13 children exchanged their classrooms for a large office
at Tchibo’s headquarters.
New worlds of work require new solutions
The business markets are changing at an accelerating pace, labour markets are becoming tighter, and
the world of work is changing dynamically. Against this backdrop, attracting and retaining qualified
professionals is a challenge for which we need to develop new solutions.
When choosing a new employer, the next generation of well-educated professionals is looking more and more
at opportunities for personal development, a flexible and healthy working environment, and the ability to balance
their career with their family or private life. In the competition for talent, which has intensified in light of skilledlabour shortages and demographic change, we intend to keep positioning ourselves as an attractive employer.
At the same time, it is crucial to retain employees, offer them career opportunities, and prepare them for the
future challenges of the working world.
We must continue our work towards achieving these goals – as shown among other things by the Aon Hewitt
Staff Survey conducted in 2012. Tchibo’s employee commitment score was merely average at 50%. We intend
to improve it by tackling the key control levers we identified in the survey.
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Strengthening cooperation, enhancing communication
We also see a need for action in the cooperation between the departments, and with the company’s management, and in communication within the company. More than half of all employees felt that in-house communica
tions is not effective enough, nor are relevant changes communicated quickly enough. To gain a better under
standing of the issues that came under criticism, we have set up deep-dive focus groups and are carrying out
interviews. The insights gained in the process are being incorporated into the development of targeted measures. The executive board and senior management plan to present these measures in the second half of 2013. In
another survey in 2014, we will check whether they have managed to increase employee commitment, motivation, and long-term staff retention.
Putting health management into practice
In 2012 we consolidated our previous health offer into a company health management system and anchored it
at the highest level. We are now working intensively with all stakeholders to design the whole working environment in the company so as to help prevent physical and mental health issues. This also requires ensuring good
leadership in the company. For this reason, management training will in future be compulsory for newly hired
executives even if they already have management experience. Until now, only managers we developed and
promoted internally were obligated to take part. As part of our company health management we also plan to
introduce an improved process for monitoring key HR indicators in this connection.
Reviewing working conditions
By 2014, audits to monitor compliance with legally and contractually regulated working conditions will be carried
out with relevant service providers in the fields of warehouse merchandising, logistics and call centres. This is to
ensure that our standards for a healthy and socially responsible work environment are being put into practice by
our service providers, too.
As part of our programme launched in 2012 to ensure contractually agreed working conditions and wages for our
indirect employees, various measures will need to be taken in 2013 as well. We are, however, confident of being
able to report a range of improvements in 2013.
Increasing the flexibility of working models
Flexible hours and ways of working are becoming more and more important. We already offer flexible working
hours and the option for employees to do some of their work from home. In 2011, we codified this offer in a
company directive. At the Gallin Logistics Centre, we also recorded the individual employees’ wishes regarding
working hours and used them to develop 43 different working time models, which are now in use there. Based
on its success, the pilot project shows potential for being extended to other sites.
Breaking new ground in the digital world
We are currently working on a concept in which employees can use their own laptops and other devices for work –
whilst still fulfilling the company’s security requirements. ‘Generation Y’ in particular, i.e. those born after 1985,
are specifically demanding these new ways of working. They want, for example, to use social media on the job
as well, because they organise part of their work via these networks.
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► Goals for 2012/2013
Goals 2012/2013
Key objectives:
1. To further develop and strengthen our corporate culture, we will continue to promote the further training and
professional development of all our employees.
2. By 2015, the work-life balance for all Tchibo employees will improve further, for instance with regard to
childcare, but also in connection with caring for dependents requiring special care (eldercare etc.).
3. We are determined to ensure that our voluntary employee benefits are maintained even if the economic
situation deteriorates, to recognise the remarkable dedication, motivation and performance of our employees.
Sub-goals 2012
Status quo
Remarks
Prepare evaluation of work-life balance related offerings. Carry out a company-wide employee survey in 2012/2013 to gain insights
into their general level of satisfaction and any
areas where action is still required.
fully
achieved
The employee survey was carried out in 2012.
Our employees feel well informed about the
services on offer, but do not yet use them to
the intended degree. As part of the recertifi
cation, we will develop specific measures to
improve this.
Expand services offered to young families, as
well as ‘Eldercare– when parents grow older’
measures and address challenges in health
management.
fully
achieved
The work-life balance related offerings were
expanded.
Specific measures have already been put
into service as part of the company health
management scheme.
Decision to seek (work-life-friendliness)
recertification by Stiftung berufundfamilie
gGmbH.
fully
achieved
We have decided to obtain recertification for
another three years.
Establish an integrated talent management system to safeguard in-house succession planning
and benefit from existing potential.
fully
achieved
The Talent Management and Staff Devel
opment unit has handled employee perfor
mance charting and career paths since 2012.
Specify and implement measures related
to the focus topics of ‘management devel
opment’ and employer branding as part of our
vocational and continued training.
fully
achieved
Measures related to the focus topics of ‘management development’ and employer branding as part of our vocational and continued
training have been specified.
Professionalise our change management
focusing on the central question of “How will
Tchibo deal with outside conditions that are
changing at an ever-accelerating pace”?
fully
achieved
By introducing the new HR structure in 2012,
we laid the cornerstone for systematically
tackling the challenges of a changing working
world and for adapting our working models to
this change.
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Sub-goals 2013
Further mainstreaming of a healthy work-life balance into our corporate culture.
Working hours, organisation of work, and workplace: Working time models such as part-time/flex-time,
job-sharing, home office and sabbaticals, and places of work are to be designed in a flexible way, to support
work-life balance in practice. Specifically, we are working on creating the necessary conditions for longerterm unpaid leaves such as sabba¬ticals. Beyond this, we want to learn from each other – for instance, the
Filiale Sales unit serves as a good model for the back office when it comes to creating flexible part-time
models.
Information and communication: We want to keep all of our employee groups – from executives, to sales
and back-office employees, to shop and production staff – regularly informed and involved in our work-life
balance related offerings. For example, we are currently working to integrate ‘work-life balance’ as a permanent item on the agenda for such bodies and events as ‘Infokreis’ meetings, regional sales conventions and
works meetings. In addition, we will step up our use of the existing media to reach all employees.
Management: Managers are among the most powerful influencers for continued positive development. One
important task will be to keep executives up to date about existing instruments and options, and encourage
their use. One idea is to make a point of integrating family-friendly leadership into our management seminars.
Beyond this, we plan to review the extent to which family-friendly leadership can be measured, e.g. by recording KPIs (Indicators) in a management scorecard.
Staff development: We must and wish to adapt to the changing environment and the expectations of our
present and future employees, in order to remain an attractive and desirable employer. We intend to further
improve our concept for staying in touch with employees on parental leave and the reintegration rate of parents following their parental leave. Also, we will give more consideration to e.g. the requirements of modernday fathers. Plans include offering continued training during parental leave.
Service for families/Eldercare: In the past three years, the focus has been on young families. We will continue our tried and tested facilities and measures such as day-care and holiday care. In addition to this, we
plan to go into more detail about the issue of eldercare as a fixed element in our goal setting.
Employee survey
Deal in greater detail with the results of the employee survey carried out in 2012, through cross-departmental
focus groups and numerous one-on-one interviews. The Management Board and executives have discussed
specific measures for individual areas of the business. The ideas and insights gained in this way will be
translated into useful measures and put into practice.
Occupational health management
Develop a company health management scheme for Tchibo that meets the target group’s needs. Define focus areas and specify select measures for the four areas Filiale (Shops), Depot (concession) Sales, Hamburg
Head Office, and Supply Chain. By 2015, systematic integration of packages of measures in the five areas of
Occupational Safety, Exercise, Nutrition, Medical Consultation and Mental Health.
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Tchibo Sustainability Report 2012 | Facts & Figures
Facts & Figures
Facts and figures on sustainability at Tchibo
Tchibo presents its sustainability-related efforts and achievements in a transparent, factual way. In this
chapter, you learn more about the structure of our report. To ensure comparability, we have based it on
well-established sustainability standards and guidelines. A table showing our key performance indicators (KPIs) provides information about our progress on the way towards a 100% sustainable business.
You will also find a list of our memberships and cooperations, prizes and awards, and the certificate
showing that our sustainability report has been reviewed and audited by an external party.
► About this report
About this report
In the Tchibo Sustainability Report 2012, we provide our external and internal stakeholders and the
interested public a transparent and comprehensive accounting of our economically, ecologically and
socially responsible actions.
Since 2006, sustainability has been an integral part of Tchibo‘s corporate strategy. In 2011, ‘100 % sustainable
business operations’ was added to the business strategy as a clear sustainability target. On its way towards a
100 % sustainable business, Tchibo is continuously improving its products and processes. With the integration of
sustainability into all organisational units and across all processes, sustainability has become an integral part of
Tchibo’s product and process quality.
Contents of the report
We embrace a holistic view of sustainability – which is reflected in the selection of topics covered in this report.
The activities presented here represent the areas of our business where we have the greatest leverage for
exerting influence: for the benefit of people and the environment, in terms of what we can do, and where we do
it. Regular dialogue with our stakeholders provides us with valuable input in the process. In 2012, we conducted
a comprehensive materiality analysis; its findings were incorporated into the preparation of this report.
148
The report covers the following fields of action: sustainability management; the coffee value chain; the consumer
goods value chain; customers and products; environmental protection at our sites and during transport; and what
we do for our employees. Because our efforts in the source countries are directly related to our core business,
the topic has been integrated into the chapters on value chains. Each chapter contains information on our
strategic approach, priorities, measures, and future challenges as well as an update on our goal attainment.
The Sustainability Report is available online in German and English and may be downloaded as a PDF document.
Global Reporting Initiative (GRI) and the UN Global Compact
Tchibo’s Sustainability Report 2012 is written in accordance with the internationally recognised Global Reporting
Initiative (GRI) guidelines. It also takes into account the additional protocol for the food industry and, for the first
time, the new, pilot version of additional industry-specific key indicators for the apparel and footwear industry.
These guidelines (version G3.1) ensure that we present our activities on all the relevant sustainability issues. We
place a priority on credibility and transparency. The GRI reviewed our report in August 2013 and confirmed that it
meets the highest application level, A+. This means that we address all of the standard disclosures and key
indicators defined by the GRI, and provide the necessary background information along with reliable figures.
This sustainability report also contains the Advanced Level Communication on Progress to the UN Global
Compact, which we joined in 2009 and to whose ten principles we have been committed ever since.
External review by auditing firm
The Tchibo Sustainability Report 2012 was audited by the PricewaterhouseCoopers auditing firm. The audit was
performed for the 2012 fiscal year, taking into consideration the AA1000 AccountAbility Principles and selected
quantitative sustainability-related information in the 2012 Sustainability Report of Tchibo GmbH. Tchibo GmbH
selected the following quantitative sustainability-related information for the 2012 fiscal year from the 2012
Sustainability Report, which were reviewed by the auditing firm and are additionally labelled with an ( ) symbol
in the Sustainability Report:
•
•
•
•
Supply chain: Coffee
Supply chain: Consumer goods
Sustainable wood
CO2 emissions from electricity consumption
The full audit certificate can be found here (Certificates).
Timeframe and geographical scope
Tchibo published its first sustainability report in 2008. The present (fifth) Tchibo Sustainability Report focuses on
the year 2012 (1 January to 31 December 2012). It also includes supplemental information on major activities
that took place before and after the reporting period, up until the copy deadline in July 2013. In this way, we hope
to ensure a complete understanding of our efforts and an up-to-date report.
All the information in this report refers to the sustainability-relevant business activities of Tchibo GmbH, its
subsidiaries and sites in Germany. Our international subsidiaries are covered wherever they rely on centralised
processes. We also report on the sustainability commitment in Austria and Switzerland as well as in Eastern and
South-eastern Europe. If these national companies are mentioned, this is noted accordingly.
Reporting cycle
The Tchibo Sustainability Report is completely revised at two-year intervals. The next report is scheduled for
publication in summer 2015. An update on the key measures, results, and indicators for the year 2013 will be
published in the second half of 2014.
149
Collecting the data
To date, Tchibo has used various data management systems to collect the data in the individual divisions. In
future, we want to ensure a consistent and comprehensive collection, analysis and monitoring of our sustain
ability-related data. With this in mind, we will review the need for an electronic data management system, and
decide on whether to introduce and implement such a system.
Contact
You have any questions or suggestions regarding the sustainability report or on corporate responsibility at
Tchibo? In the chapter Contact us you can find our contact person.
Note from the editors
Thank you for understanding that, for the sake of readability, we have used only the male form in this report.
Naturally, the information refers equally to both sexes.
► KPIs (Indicators)
Key performance indicators
We report our sustainability performance in a transparent and fact-based manner. This section presents all key indicators from our fields of action. The figures for 2010 to 2012 each apply to the calendar
year and relate to Tchibo GmbH, its subsidiaries and sites in Germany. The main annual sales figures
(ASF) were used for the consumer goods section. Other areas of application are noted accordingly. All
the figures have been rounded, which may lead to slight variations in the totals. Indicators for the 2012
calendar year that were audited by an independent auditing firm are marked with a
.
Economy
Unit
Revenue
€ billion
Supply chain: Coffee
Unit
Sustainable Coffee1
%
Unit
2010
2011
2012
3.4
3.5
3.6
2010
2011
2012
9.6
12.5
2010
2011
27.3
2012
Producers
Producers total
Number
930
806
810
WE producers in ASF2
Number
68
91
162
Supplier Chain3
Number
-
-
20
150
Unit
2010
2011
2012
Production countries (Share based on Number of purchasing projects)
China
%
-
-
66.6
Germany
%
-
-
7.1
Turkey
%
-
-
4.8
Bangladesh
%
-
-
3.7
Vietnam
%
-
-
3.3
Other4
%
-
-
14.5
Strategic approach5 (Share based on Number of purchasing projects)
Direct-to-customer business
%
44.6
48.9
50.5
WE projects6
%
22.0
30.6
45.0
• China
%
26.4
40.9
58.5
• Bangladesh
%
92.7
90.0
90.4
• Laos
%
77.8
100.0
92.3
• India
%
-
-
37.8
Core suppliers
%
-
-
19.3
WE country coverage
Audits
Social audits by audit type
Total
Number
390
207
78
• Biannual
Number
57
23
15
• Follow-up
Number
188
103
14
• Initial
Number
145
81
49
Total
Number
390
207
78
• Bangladesh
Number
21
6
5
• China
Number
321
149
35
• India
Number
7
9
9
• Thailand
Number
12
6
3
• Turkey
Number
13
12
3
• Vietnam
Number
7
18
15
• Other7
Number
9
7
8
Social audits by country
151
Unit
2010
2011
2012
Audits (Resumption of the page before)
Results of the initial and biannual audits
Total
Number
202
104
64
• In compliance
Number
2
0
1
• Minor concerns
Number
24
11
6
• Major concerns
Number
156
82
31
• Zero tolerance8
Number
14
11
25
• Audit denied
Number
6
0
1
Status of auditing, certification and measures at companies producing for Tchibo in each year9 (Share
based on number of producers bought from during that year)
Signed SCoC
%
100.0
100.0
100.0
Production plant appraisal
%
78.2
79.2
77.8
Tchibo Social Audit
%
49.5
51.4
36.4
SA-8000 certificate
%
2.0
3.0
2.1
Other accredited audits (e.g. BSCI
with the result ‘good’)
%
14.1
20.1
14.3
Participation in the WE programme
%
7.3
11.3
20.0
• FSC®10
Number
30
42
44
• FTS
Number
24
84
141
• Conventional
Number
65
81
24
Responsibly produced cotton11
Selling units in
millions
3.4
8.5
12.7
Customers
Unit
2010
2011
2012
Sustainable resources
Sustainable wood
Customer contacts by phone directed to customer service by phone
Orders processed
Number
1,450,000
1,100,000
914,000
Customer care before and during product
purchase
Number
1,600,000
903,000
787,000
Customer care after product purchase
Number
295,800
243,100
211,000
Customer contacts by email, letter and fax
Orders processed
Number
213,000
504,500
279,000
Customer care before and during product
purchase
Number
1,573,000
1,191,800
809,000
Customer care after product purchase
Number
150,000
132,200
107,000
152
Customers
Unit
2010
2011
2012
196,000
151,000
152,000
Number of contacts and processing times in technical service centres
Complaints
Number
Of these, repairs/replacement parts
%
60
53
54
Average processing time (working days)
Working days
4.5
4.4
4.2
Environment
Unit
2010
2011
2012
CO2 emissions resulting from Tchibo product transport (not adjusted for quantity)12
Total
t
94,489
78,828
69,922
• Seagoing vessels
t
71,136
57,212
52,170
• Trucks
t
19,463
17,930
15,343
• Rail
t
2,423
2,422
1,234
• Air
t
1,355
1,192
1,080
• Inland waterways
t
112
72
95
Percentage of Tchibo product transport-related CO2 emissions by mode of shipping
Seagoing vessels
%
75.3
72.6
74.6
Trucks
%
20.6
22.7
21.9
Rail
%
2.6
3.1
1.8
Air
%
1.4
1.5
1.5
Inland waterways
%
0.1
0.1
0.1
Electricity purchased by Tchibo13
Total
MWh
63,673
61,390
59,962
• Tchibo Shops
MWh
28,214
26,710
24,368
• Roasting facilities
MWh
22,427
21,961
23,311
• Warehouses
MWh
6,773
6,577
6,875
• Administration (offices)
MWh
6,259
6,142
5,408
CO2 emissions from electricity consumption14
Total
t
36,611.99
34,746.74
34,553.66
• Tchibo Shops
t
16,223.05
15,117.86
14,035.97
t
12,895.53
12,429.93
13,442.11
• Warehouses
t
3,894.48
3,722.58
3,960.58
• Administration (offices)
t
3,598.93
3,476.37
3,115.01
153
Environment
Unit
2010
2011
2012
Electricity obtained from renewable energy sources
Tchibo Shops
%
100
100
100
Roasting facilities
%
100
100
100
Warehouses
%
100
100
100
Administration (offices)
%
100
100
100
Energy consumption at Tchibo Head Office15
Electricity
MWh
6,259
6,142
5,408
District heating
MWh
2,096
1,792
5,018
District cooling
MWh
1,011
923
1,017
Electricity
MWh
6,773
6,557
6,876
Gas
MWh
6,755
5,150
5,311
Electricity
MWh
22,427
21,961
23,337
Gas
MWh
30,260
28,214
31,144
Energy consumption at warehouses
Energy consumption at roasting plants
Distance covered for business travel
Total
km
39,463,655
37,543,980
37,542,394
• Car (company cars)
km
20,689,722
21,997,560
22,411,688
• Air
km
15,999,435
12,586,675
12,032,335
• Rail
km
2,112,136
2,428,230
2,718,565
• Car (rental cars)
km
662,362
531,515
379,806
Total
t
6,682.87
5,907.13
5,144.34
• Car (company cars)
t
3,841.20
3,647.42
3,608.66
• Air
t
2,645.57
2,081.25
1,375.05
• Car (rental cars)
t
102.00
79.81
49.79
• Rail
t
94.10
98.65
110.84
3,841
3,647
3,609
144
131
124
1,476
1,396
1,380
m3
24,866
23,864
23,894
m3
7,316
7,496
9,069
CO2 emissions related to business travel
Fuel consumption of the Tchibo fleet and associated CO2 emissions
CO2 emissions
t
CO2 emissions (average)
g/km
Fuel consumption
1,000 l
Water consumption at administrative sites (offices)
Total
Water consumption at warehouse sites
Total
154
Environment
Unit
2010
2011
2012
Packaging material used
Total
t
21,333
19,622
19,279
• Paper/cardboard
t
15,775
14,243
14,159
• Plastic
t
2,716
2,674
2,347
• Composite packaging
t
2,428
2,171
2,354
• Glass
t
392
490
368
• Aluminium
t
8
12
6
• Tin
t
2
24
21
• Others
t
12
8
24
Total
t
9,770.72
12,632.61
11,514.68
• Paper/cardboard
t
7,385.00
9,039.82
8,120.00
• Municipal waste
t
925.61
1,313.81
1,318.00
• Waste from the production and
processing of food n
t
681.06
1,513.20
1,529.10
• Mixed foil
t
404.60
332.08
217.18
• Plastic waste
t
244.07
203.32
96.90
• Bulky waste
t
67.31
47.14
38.50
• Wood
t
49.70
117.68
181.50
• Glass
t
7.52
27.50
2.70
• Used appliances
t
2.51
19.12
5.50
• Hazardous waste (as defined in the
Waste Catalogue Ordinance)
t
1.68
17.46
3.10
• Waste from construction and demolition
t
1.66
1.48
2.20
Waste at Tchibo locations
Waste at warehouse locations operated by service providers16
Total
t
8,621.00
10,855.47
9,758.78
• Paper/cardboard
t
7,122.00
8,639.13
8,276.00
• Municipal waste
t
978.24
1,910.24
1,097.60
• Mixed Foil
t
414.49
32.22
227.20
• Plastic waste
t
74.41
230.72
3.48
• Bulky waste
t
0
0
0
• Wood
t
29.38
35.96
132.00
• Waste from construction and demolition
t
1.07
0
0
• Ceramic
t
0
1.44
19.60
• Glass
t
0.71
5.76
0
155
Environment
Unit
2010
2011
2012
Waste at warehouse locations operated by service providers16 (Resumption of the page before)
• Waste from the production and
processing of food
t
0.70
0
2.90
• Used appliances
t
0
0
0
• Hazardous waste (as defined in the
Waste Catalogue Ordinance)
t
0
0
0
Hazardous waste (total)
t
-
-
3.10
Non-hazardous waste (total)
t
-
-
21,253.86
• Composted (total)
t
-
-
1.187
• Recycled (total)
t
-
-
18,826.86
• Incinerated (total)
t
-
-
1,102
• Landfill (total)
t
-
-
138
Total18
t
13,233.33
15,767.00
17,406.25
• Conventional paper
t
12,174.56
14,196.00
1,920.43
• Recycled and FSC® paper
t
1,058.77
1,571.00
15,485.82
Employees19
Unit
2010
2011
2012
Total
Number
8,272
8,475
8,550
• Women
Number
6,789
6,926
6,942
• Men
Number
1,483
1,549
1,608
Trainees
Number
10
12
12
• Women
Number
7
9
8
• Men
Number
3
3
4
Apprentices
Number
143
171
158
• Women
Number
102
124
98
• Men
Number
41
47
60
Tchibo shops
Number
5,393
5,454
5,460
• Women
Number
5,311
5,367
5,354
• Men
Number
82
87
106
Back office
Number
2,287
2,410
2,477
• Women
Number
1,375
1,448
1,469
• Men
Number
912
962
1,008
Waste by type and disposal method17
Use of paper at Tchibo offices and shops
Employees by field of activity
156
Employees19
Unit
2010
2011
2012
Employees by field of activity (Resumption of the page before)
Sales
Number
401
417
418
• Women
Number
83
91
99
• Men
Number
318
326
319
Roasting facilities
Number
191
194
195
• Women
Number
20
20
20
• Men
Number
171
174
175
Employees by type of employment
Part-time
%
65.8
65.5
65.7
• Women
%
96.9
96.6
96.4
• Men
%
3.1
3.4
3.6
Full-time
%
34.2
34.5
34.3
• Women
%
53.5
53.5
52.1
• Men
%
46.5
46.5
47.9
Employees by type of employment contract
Open-ended
%
83.0
83.0
81.0
• Women
%
80.0
80.0
80.0
• Men
%
20.0
20.0
20.0
Temporary
%
17.0
17.0
19.0
• Women
%
90.0
89.0
89.0
• Men
%
10.0
11.0
11.0
Distribution of salary levels (as defined in the Hay Group method)
Salary bracket 1–7 (total)
%
58.8
58.3
56.4
• Women
%
57.3
58.4
57.3
• Men
%
42.7
41.6
42.7
%
30.7
31.1
32.7
• Women
%
45.9
47.2
50.1
• Men
%
54.1
52.8
49.9
%
9.3
9.5
9.9
• Women
%
29.9
30.0
31.5
• Men
%
70.1
70.0
68.5
Higher (total)
%
1.1
1.1
1.1
• Women
%
0.0
4.0
8.0
• Men
%
100.0
96.0
92.0
157
Employees19
Unit
2010
2011
2012
< 30 years (total)
%
16.7
16.9
16.9
• Women
%
83.4
81.8
80.6
• Men
%
16.6
18.2
19.4
30–50 years (total)
%
57.1
57.1
55.6
• Women
%
80.7
81.2
80.6
• Men
%
19.3
18.8
19.4
> 50 years (total)
%
26.2
26.0
27.5
• Women
%
84.2
82.8
82.8
• Men
%
15.8
17.2
17.2
German nationals
%
95.20
94.8
95.1
EU citizens
%
2.30
2.3
2.3
Non-EU citizens
%
2.50
2.9
2.6
Average share
%
4.93
5.40
4.85
Tchibo Manufacturing
%
9.65
10.51
10.11
Tchibo GmbH
%
4.50
4.62
4.67
Tchibo Coffee Service
%
2.95
3.12
4.77
Tchibo direct 21
%
2.61
3.30
-
Number
1,126
1,566
1,542
• < 30 Years
Number
488
671
636
• 30-50 Years
Number
573
812
778
• > 50 Years
Number
65
83
128
Age structure
Nationality
Employees with disabilities20
New hires
Total
By age group
By gender
• Women
%
87.2
86.2
86.8
• Men
%
12.8
13.8
13.2
• Tchibo shops
Number
924
1,210
1,262
• Back office
Number
175
295
242
• Sales
Number
22
56
31
By operational area
158
Employees19
Unit
2010
2011
2012
New hires (Resumption of the page before)
By operational area
Number
5
5
7
New apprentices
Number
42
51
52
New trainees
Number
6
12
6
Staff turnover at Tchibo GmbH in Germany22
Total
%
10.2
9.5
11.5
• Women
%
9.4
9.9
12.3
• Men
%
13.8
8.0
7.8
• Tchibo shops
%
9.8
11.5
14.7
• Back office
%
12.5
6.0
5.9
• Sales
%
5.1
8.1
7.9
%
1.5
1.5
1.5
Notice by employee
%
56.2
70.8
68.3
• Women
%
85.4
88.5
88.9
• Men
%
14.6
11.5
11.1
Amicable departure
%
37.9
19.3
24.6
• Women
%
63.2
83.1
86.0
• Men
%
36.8
16.9
14.0
Job-related incapacity
%
1.0
1.4
1.8
• Women
%
100.0
100.0
89.5
• Men
%
0.0
0.0
10.5
Death
%
1.5
0.6
0.7
• Women
%
100.0
60.0
71.4
• Men
%
0.0
40.0
28.6
Notice without reason
%
3.4
7.9
4.7
• Women
%
77.4
64.7
77.6
• Men
%
22.6
35.3
22.4
By operational area
Staff turnover, by reason for departure
159
Employees19
Unit
2010
2011
2012
Education and training
Total23
Hours
-
-
81,177
• Administration
Hours
-
-
37,785
• Tchibo shop employees and apprentices
Hours
-
-
43,392
Investment in education and training in
the areas of administration (offices) and
Tchibo shops in Germany24
€
4,796,000
5,063,000
3,891,000
Parental leave25
End of full parental leave (Total)26
Number
-
-
144
• Tchibo shops
Number
-
-
80
• Back office
Number
-
-
60
• Sales
Number
-
-
4
Number
-
-
0
Integration Total27
%
-
-
72.0
• Tchibo shops
%
-
-
71.0
• Back office
%
-
-
78.0
• Sales
%
-
-
0
%
-
-
0
Number
26
23
20
Number
10.1
10.7
10.9
• Women
Number
10.5
11.2
11.6
• Men
Number
8.3
8.4
7.8
• Tchibo shops
Number
11.0
11.7
12.4
• Back office
Number
8.7
9.0
8.4
• Sales
Number
6.9
7.1
6.4
Number
12.1
12.5
11.5
%
4.0
4.2
4.2
• Tchibo shops (Women)
%
4.3
4.5
4.8
• Tchibo shops (Men)
%
4.5
3.9
4.5
Workplace accidents per 1,000 employees28
Total
Absent days29
Total
By gender
By operational area
Absence rate30
Total
By operational area and gender
160
Employees19
Unit
2010
2011
2012
Absence rate30 (Resumption of the page before)
• Back office (Women)
%
4.2
4.5
4.3
• Back office (Men)
%
3.4
3.5
3.1
• Sales (Women)
%
4.4
4.4
3.2
• Sales (Men)
%
2.3
2.6
2.6
• Roasting facilities (Women)
%
6.0
5.3
4.6
• Roasting facilities (Men)
%
4.9
5.1
4.8
0
0
0
2010
2011
2012
950
1,150
650
Work-related deaths
Total
Number
Society
Unit
Donations to the ‘Schüler Helfen
Leben’ (Schoolchildren Help with Life)
organisation
€
Footnotes
1 . Percentage of raw coffee included in the Tchibo sustainability concept in the total amount of raw coffee
delivered to Tchibo roasting plants and third party roasting plants for production in the reporting period.
2 . By the end of 2012, 200 production plants in the fields of textiles, household goods, decorative items and
jewellery had participated in the qualification program in China, Bangladesh, India, Ethiopia, Laos and Thailand.
Of these, 162 factories carried out orders for Tchibo in 2012. Due to our system of ‘changing ranges’, not all
qualified producers can be used continuously. Also, as part of concentrating on our best and most important
producers, we have ended the purchasing relationship with some of our producers under socially acceptable
conditions.
3 . There have been key suppliers with framework agreements since 2012.
4 . 34 countries: AL, AT, BA, BE, BG, CZ, EG, ES, ET, FR, GB, GR, HU, ID, IL, IN, IT, KH, KR, LA, LB, LT, LV,
MD, MY, NL, PK, PL, PT, TH, TN, TW, UA, XS
5 . Strategic approach refers to the development of strategic partnerships, the qualification of partners and
strengthening the direct-to-customer business.
6 . The core of our activities in the consumer goods supply chain is the WE qualification programme, in which
we will include all of our strategically important production sites.
7 . Other 2010: Denmark, Laos, Pakistan, Czech Republic.
Other 2011: Cambodia, Pakistan.
Other 2012: Indonesia, Cambodia, Sri Lanka, Pakistan, Malaysia.
8 . In 2012, we adjusted our rating scale. Deficiencies in fire protection were rated more stringently than in the
previous year. This contributed significantly to the increase in the zero tolerance ratings.
9 . The recording method has changed: for 2012, only the measures carried out in the last four years (01 Jan
2009 to 31 Dec 2012) were taken into account. In the past, earlier measures were also included.
10 .Number of wood products with FSC® certification in the total number of wood products sold (solid wood and
mixed products) in the reporting period. Based on the different numbers of items. An item number corresponds
to a precisely specified product version (e.g. ‘garden table large, item no. 123456’).
11 .Number of textiles selling units made from/with environmentally and socially responsibly grown cotton (‘Organic
Cotton’ and ‘Cotton made in Africa’).
12 .The emission values for 2012 were calculated based on a new emission factor taken from the following source:
CO2 Berechnung in der Logistik, published by Andre Kranke, Martin Schmied and Andrea Dorothea Schön,
Verkehrsrundschau im Verlag Heinrich Vogel – Springer Fachmedien GmbH Munich, 1st edition 2011.
161
13.Electricity purchased by Tchibo in megawatt hours, broken down overall by administration, Tchibo shops,
Tchibo’s own warehouses, and roasting plants.
14.CO2 emissions caused by electricity consumption in Germany (based on the calculation of environmental
factors by Germany’s Federal Environmental Agency for the German electricity mix) in tons, shown as total
and broken down by administration (offices), Tchibo shops, Tchibo’s own warehouses, and roasting plants.
15.Energy consumption of Tchibo Head Office in Hamburg in megawatt hours, broken down by district heating,
„
district cooling and electricity Calculation: CO2 emission factors based on the item CO2 emission factor
„
electricity mix“ as defined in Development of carbon dioxide emissions within the German electricity mix
1990 to 2012“. UBA 7/2013. Calculation: electricity (see cell code). The German Federal Environmental
„
Agency’s specifications for Initial estimate 2012 CO2 electricity mix” were used for 2012.
16.Scope: Tchibo GmbH has subsidiaries in Germany and locations of logistics service providers.
17.Recording of the index since 2012.
18.In 2012, we converted all advertising material to FSC® paper. Changes in the purchasing system means
additional advertising material can also be recorded.
19.The figures shown refer to full- and part-time employees, not including interns, employees outside the scope
of continued pay, and employees on maternity or parental leave.
20.The average proportion was recalculated for 2012. The prior-year values were not adjusted.
21.Tchibo direct GmbH merged with Tchibo GmbH in 2012.
22.The basis of calculation changed in 2012. The previous years‘ figures have been adjusted accordingly.
23.Recording of training and continuing education hours since 2012.
24.The values for 2010 and 2011 also included the national subsidiaries in Austria, Switzerland and Eastern Europe
as well as Coffee Service Non Germany und Non Germany others. The 2012 figure refers only to Germany.
25.Recording of indicators for parental leave since 2012.
26.Full parental leave = parents without concurrent part-time employment. Of the 144 persons, one was male.
27.Integration = 3 months active (and not released from work) after at least 3 months of parental leave.
28.Not including minor accidents.
29.Calculated as follows: paid ‘sick days’ / average no. of employees.
30.Calculated as follows: sum of paid ‘sick hours’ (12 months) / total target number of working hours (12 months).
162
► GRI Index
GRI Index
The Tchibo Sustainability Report 2012 is based on the internationally recognised guidelines of the
Global Reporting Initiative (GRI), taking into account the Additional Protocol for the food industry and,
for the first time, the pilot version of the industry-specific additional indicators for the apparel and
footwear industry.
The GRI guidelines (version G3.1) ensure that we present our activities related to all the major sustainability issues. Credibility and transparency are our priority. The GRI reviewed our report in September 2013 and confirmed
that it meets the highest application level A+. This means that we address all the standard disclosures and key
indicators specified by the GRI, and provide the necessary background information and reliable indicators.
The following tables contain detailed information about our compliance with each GRI indicator.
Index on GRI (G3.1)
In the reference column you find underlined hyperlinks which indicate to the part of the web report, where the
indicators are answered.
Strategy and analysis
Indicator
Status
Reference
1.1 Statement from the most senior
decision-maker of the organization.
Fully
• CEO statement
1.2 Statement from the most senior
decision-maker of the organization.
Fully
•
•
•
•
•
•
•
•
•
Indicator
Status
Reference
2.1 Name of the organization.
Fully
Tchibo GmbH
2.2 Primary brands, products, and/or
services.
Fully
About Tchibo
2.3 Operational structure of the organi
zation, including main divisions, operating companies, subsidiaries, and joint
ventures.
Fully
About Tchibo
2.4 Location of organization‘s headquarters.
Fully
Hamburg
CEO statement
Strategic approach (Sustainability management
Fields of action
Compliance
Risk management (Sustainability management)
Goals 2012/2013 (Coffee)
Goals 2012/2013 (Consumer goods)
Goals 2012/2013 (Customers and products)
Goals 2012/2013 (Environmental protection at
sites and during transport)
• Goals 2012/2013 (Services for employees)
Organizational profile
163
Organizational profile
Indicator
Status
Reference
2.5 Number of countries where the
organization operates, and names of
countries with either major operations
or that are specifically relevant to the
sustainability issues covered in the
report.
Fully
•About Tchibo
•National subsidiaries
2.6 Nature of ownership and legal form.
Fully
•About Tchibo
2.7 Markets served (including geographic
breakdown, sectors served, and types of
customers/beneficiaries).
Fully
•About Tchibo
•National subsidiaries
2.8 Scale of the reporting organization.
Fully
•About Tchibo
•maxingvest ag Annual Report 2012,
p. 54f. (Consolidated balance sheet)
Consumer goods: approx. 50 products per week,
grouped around a common weekly theme. Due
to the weekly changing product ranges, no exact
amount can be specified.
Coffee: approx. 30 coffee products. Due to regularly changing product ranges such as Raritäten
and Frische Ernte and range adjustments during
year, Sortimentsumstellungen no exact amount
can be specified.
2.9 Significant changes during the reporting period regarding size, structure,
or ownership.
Fully
p. 66ff. (Consolidation)
During the reporting period, there were no major
changes with regard to size, structure or ownership.
2.10 Awards received in the reporting period.
Fully
•Prizes and awards
Indicator
Status
Reference
3.1 Reporting period (e.g., fiscal/calendar
year) for information provided.
Fully
•About this report
3.2 Date of most recent previous report
(if any).
Fully
3.3 Reporting cycle (annual, biennial, etc.)
Fully
3.4 Contact point for questions regarding
the report or its contents.
Fully
•Contact
3.5 Process for defining report content.
Fully
•Fields of action
•Stakeholdermanagement
Report parameters
164
Report parameters
Indicator
Status
Reference
3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facil
ities, joint ventures, suppliers). See GRI
Boundary Protocol for further guidance.
Fully
3.7 State any specific limitations on the
scope or boundary of the report (see
completeness principle for explanation of
scope).
Fully
3.8 Basis for reporting on joint ventures,
subsidiaries, leased facilities, outsourced
operations, and other entities that can
significantly affect comparability from
period to period and/or between organi
zations.
Fully
p. 24ff. (Corporate structure and strategy)
3.9 Data measurement techniques and
the bases of calculations, including
assumptions and techniques underlying
estimations applied to the compilation of
the Indicators and other information in
the report. Explain any decisions not to
apply, or to substantially diverge from, the
GRI Indicator Protocols.
Fully
3.10 Explanation of the effect of any
re-statements of information provided in
earlier reports, and the reasons for such
re-statement (e.g.,mergers/acquisitions,
change of base years/periods, nature of
business, measurement methods).
Fully
Since the previous report, there have been no
major changes in the statement of information.
3.11 Significant changes from previous
reporting periods in the scope, boundary,
or measurement methods applied in the
report.
Fully
Since the previous report, there have been no
major changes in the scope, boundary or measurement methods applied in the report.
3.12 Table identif ying the location of the
Standard Disclosures in the report.
Fully
•GRI Index
3.13 Policy and current practice with
regard to seeking external assurance for
the report. If not included in the assurance report accompanying the sustainability report, explain the scope and
basis of any external assurance provided.
Also explain the relationship between the
reporting organization and the assurance
provider(s).
Fully
•Certificates
165
Governance, Commitments, and Engagement
Indicator
Status
Reference
4.1 Governance structure of the organi
zation, including committees under the
highest governance body responsible for
specific tasks, such as setting strategy or
organizational oversight.
Fully
•Mainstreaming and organisation
p. 7 (Boards of maxingvest ag)
p. 24ff. (Corporate structure and strategy)
4.2 Indicate whether the Chair of the
highest governance body is also an executive officer.
Fully
The highest governance body of Tchibo GmbH
has long been called the ‚Management Board‘
within the company.
To monitor its business operations, Tchibo GmbH
has a supervisory board with equal representation
in accordance with the Codetermination Act. In other
words, six each of its twelve members are appointed
by the employer side and the employee side.
4.3 For organizations that have a unitary
board structure, state the number and
gender of members of the highest gover
nance body that are independent and/or
non-executive members.
Fully
Not relevant, since there is a supervisory board
(see 4.2).
4.4 Mechanisms for shareholders and
employees to provide recommendations
or direction to the highest governance
body.
Fully
•Corporate culture and values
4.5 Linkage between compensation for
members of the highest governance
body, senior managers, and executives
(including departure arrangements), and
the organization‘s performance (including
social and environmental performance).
Fully
The overall compensation is based on what is
customary in the market and, due to the integration of sustainability in the business strategy
and in the personal target-setting is also linked to
societal/social and ecological performance.
4.6 Processes in place for the highest
governance body to ensure conflicts of
interest are avoided.
Fully
•Compliance
4.7 Process for determining the compo
sition, qualifications, and expertise of the
members of the highest governance body
and its committees, including any consid
eration of gender and other indicators of
diversity.
Fully
Employee representatives and shareholder
representatives have equal representation on the
supervisory board.
Management Board members promptly disclose
any conflicts of interest to the supervisory board
offen. Supervisory board members disclose to
the shareholder meeting any potential conflicts of
interest due to consultative or Board activities for
other companies.
Supervisory board members must possess the
necessary skills and expertise as well as the necessary professional experience to be able to fulfil
their statutory obligations and their duties.
166
Governance, Commitments, and Engagement
Indicator
Status
Reference
4.8 Internally developed statements of
mission or values, codes of conduct, and
principles relevant to economic, environ
mental, and social performance and the
status of their implementation.
Fully
•Compliance
4.9 Procedures of the highest gover
nance body for overseeing the organi
zation‘s identification and management
of economic, environmental, and social
performance, including relevant risks and
opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
Fully
•Risk management (Sustainability management)
4.10 Processes for evaluating the highest
governance body‘s own performance,
particularly with respect to economic,
environmental, and social performance.
Fully
The performance of all governance bodies are
evaluated once a year following the end of the fiscal
year, based on the agreed targets and their indicators
(KPIs). The Corporate Responsibility department is in
charge of this. The governance bodies are notified of
the results and new goals and targets are set.
4.11 Explanation of whether and how the
precautionary approach or principle is
addressed by the organization.
Fully
•Compliance
4.12 Externally developed economic,
environmental, and social charters,
principles, or other initiatives to which the
organization subscribes or endorses.
Fully
•UN Global Compact
•Memberships and co-operations
4.13 Memberships in associations (such
as industry associations) and/or national/
international advocacy organizations in
which the organization: * Has positions
in governance bodies; * Participates in
projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as
strategic.
Fully
4.14. List of stakeholder groups engaged
by the organization.
Fully
4.15 Basis for identification and selection
of stakeholders with whom to engage.
Fully
4.16 Approaches to stakeholder engagement, including frequency of engagement
by type and by stakeholder group.
Fully
4.17 Key topics and concerns that have
been raised through stakeholder engagement, and how the organization has
responded to those key topics and concerns, including through its reporting.
Fully
•Fields of action
167
Economic performance indicators
Indicator
Status
Reference
Economic – Management approach
Fully
•Strategic approach (Sustainability management)
EC1 Direct economic value generated
and distributed, including revenues, operating costs, employee compensation,
donations and other community invest
ments, retained earnings, and payments
to capital providers and governments.
Fully
•About Tchibo
p. 53ff. (Consolidated financial statement)
•KPIs Society
EC2 Financial implications and other
risks and opportunities for the organi
zation‘s activities due to climate change.
Fully
•Climate protection
Climate protection is a focus in our efforts to
ensure sustainable development. Due to the
complexity of the topic, we are unable to pinpoint
the financial implications for our activities due
to climate change. Tchibo carries out numerous
projects and activities to protect the climate.
EC3 Coverage of the organization‘s defined benefit plan obligations
Fully
p. 86ff. (Pension provisions and employee
benefits)
•Compensation and voluntary employee benefits
EC4 Significant financial assistance
received from government.
Fully
During the reporting period, we received no
financial assistance from the government.
The government owns no shares in the organisation.
EC5 Range of ratios of standard entry
level wage by gender compared to local
minimum wage at significant locations of
operation.
Partially
EC6 Policy, practices, and proportion
of speding on locally-based suppliers at
significant locations of operation.
Fully
•Strategic approach (Coffee)
•Strategic approach (Consumer goods)
•Production
EC7 Procedures for local hiring and
proportion of senior management hired
from the local community at significant
locations of operation.
Fully
•Diversity and equal opportunity
EC8 Development and impact of infras
tructure investments and services provided primarily for public benefit through
commercial, in-kind, or pro bono engagement.
Fully
•Educational projects in the source countries
(Coffee)
(Consumer goods)
EC9 Understanding and describing
significant indirect economic impacts,
including the extent of impacts.
Regular market comparisons ensure that our
compensation structures are appropriate.
One of the goals of this report is to elaborate on
the indirect economic impact of our business activity.
One example for this is our commitment to helping
coffee farmers become and stay competitive.
•Sustainable development of the coffee sector
168
Environmental Performance Indicators
Indicator
Status
Reference
Environmental – Management approach
Fully
•Strategic approach (Environmental protection)
•Integrated range management: UmweltPlus
•Resource conservation
•Biodiversity (Coffee)
•Biodiversity (Consumer goods)
•Goals 2012/2013 (Environmental protection at
sites and during transport)
EN1 Materials used by weight or volume.
Partially
•Environmental indicators,
see packaging materials used
In collecting the data, we strive for a consistent, comprehensive and integrative recording,
evaluation and monitoring of our sustainabilityrelated data and work continuously on optimising
our collection processes. With this in mind, we
are reviewing the benefits of an electronic data
management system. Since its introduction would
be associated with high costs and far-reaching
process adjustments we are giving ourselves until
2015 to reach a final decision.
EN2 Percentage of materials used that
are recycled input materials.
Partially
see Paper consumption
EN3 Direct energy consumption by primary energy source.
Fully
see Energy consumption
Nearly 100% renewable fuels.
Please note: 1 Megawatt hour (MWh)=
3.6 Gigajoule (GJ)
EN4 Indirect energy consumption by
primary source
Fully
see CO2- emissions from electricity consumption
100% of the secondary energy we consume comes from renewable sources.
Please note: 1 Megawatt hour (MWh)= 3.6 Gigajoule (GJ)
EN5 Energy saved due to conservation
and efficiency improvements.
Fully
•Production
•Energy consumption
EN6 Initiatives to provide energy-efficient
or renewable energy based products
and services, and reductions in energy
requirements as a result of these initia
tives.
Fully
•Environment and climate
•Production
•Sustainable ranges
169
Indicator
Status
Reference
EN7 Initiatives to reduce indirect energy
consumption and reductions achieved.
Fully
•Sustainable ranges
•Mobility
EN8 Total water withdrawal by source.
Fully
•Water
•Environmental indicators, see Water consumption
This is a secondary issue at Tchibo‘s sites, where
the water used by our employees accounts for
most of the water withdrawal. We have calcu
lated it for our administrative offices and for the
warehouses we run.
Water consumption at the individual Tchibo shops
is not material, because Tchibo is not a waterconsuming company in the sense of an industrial
company that requires large amounts of water for
production and maintaining its business.
The roasting process is terminated by adding
water, but the water volume required for this is a
trade secret - this is common across the industry.
EN9 Water sources significantly affected
by withdrawal of water.
Fully
None.
EN10 Percentage and total volume of
water recycled and reused.
Fully
The water used at our sites by our employees and
in coffee roasting water is not suitable for reuse,
so this indicator is not relevant for Tchibo.
EN11 Location and size of land or waters
owned, leased, managed in, or adjacent
to, protected areas and areas of high
biodiversity value outside protected
areas.
Fully
Our sites in Germany have no significant impact
on biodiversity, as our properties are neither in nor
near protected areas. We, do however, take biodi
versity into account in our activities to make the
value chains of our products sustainable.
EN12 Description of significant impacts
of activities, products, and services on
biodiversity in protected areas and areas
of high biodiversity value outside protected
areas.
Fully
EN13 Habitats protected or restored.
Fully
EN14 Strategies, current actions, and
future plans for managing impacts on
biodiversity.
Fully
170
Indicator
Status
Reference
EN15 Number of IUCN Red List species
and national conservation list species
with habitats in areas affected by opera
tions, by level of extinction risk.
Not
-
EN16 Total direct and indirect green
house gas emissions by weight.
Fully
•Transport and shipping
•Mobility
•Environmental indicators, see CO2-emissions
EN17 Other relevant indirect greenhouse
gas emissions by weight.
Fully
None except those listed under EN16.
EN18 Initiatives to reduce greenhouse
gas emissions and reductions achieved.
Fully
•Mobility
•Local actions
EN19 Emissions of ozone-depleting
substances by weight
Fully
Tchibo‘s sites in Germany don‘t generate ozonedepleting substances.
EN20 NOx, SOx, and other significant air
emissions by type and weight.
Fully
Since we switched our roasting plants in Germany
to gas firing, Tchibo sites no longer generate any
NOx, SOx or other significant air emissions.
EN21 Total water discharge by quality
and destination.
Fully
Our business activity does not generate signif
icant water discharge at our sites in Germany. The
water discharge corresponds to the social water
supply at our sites.
EN22 Total weight of waste by type and
disposal method.
Fully
•Environmental indicators, see Waste
EN23 Total number and volume of signif
icant spills
Fully
None except those listed under EN16.
EN24 Weight of transported, imported,
exported, or treated waste deemed
hazardous under the terms of the Basel
Convention Annex I, II, III, and VIII, and
percentage of transported waste shipped
internationally.
Fully
Tchibo does not import or export any waste
deemed hazardous under the terms of the Basel
Convention.
EN25 Identity, size, protected status, and
biodiversity value of water bodies and
related habitats significantly affected by
the reporting organization's discharges of
water and runoff.
Not
-
EN26 Initiatives to mitigate environmental
impacts of products and services, and
extent of impact mitigation.
Fully
•Production
•Sustainable resources
•Water
•Packaging and waste
171
Indicator
Status
Reference
EN27 Percentage of products sold and
their packaging materials that are reclaimed by category.
Fully
In Germany the reclaiming and recycling of packaging is regulated by law. The Packaging Ordinance stipulates that all sales packaging, i.e. that
incurred by the end consumer, must be licensed
to the ‚Duales System‘. This guarantees and funds
a nationwide reclaiming of end consumer packaging, convenient and close to all households.
Tchibo fulfils this statutory obligation, licenses all
the packaging it brings into circulation and thereby
ensures that 100% of the packaging used can be
disposed of by the consumer via the designated
‚yellow bags‘, the recycling bin or their recycling centre, conveniently and free of charge. For that reason,
we do not actively offer reclaiming at the POS.
EN28 Monetary value of significant fines
and total number of non-monetary sanctions for non-compliance with environ
mental laws and regulations.
Fully
During the reporting period there were no incidences
of non-compliance with environmental laws and
regulations.
EN29 Significant environmental impacts
of transporting products and other goods
and materials used for the organization‘s
operations, and transporting members of
the workforce.
Fully
•Mobility
EN30 Total environmental protection
expenditures and investments by type.
Not
-
Indicator
Status
Reference
Labor practices – Management approach
Fully
•Strategic approach (Employees)
•Goals 2012/2013
Labor practices and decent work
There is a regular dialogue between the management and the works council, even beyond the
statutory requirements.
LA1 Total workforce by employment type,
employment contract, and region, broken
down by gender.
Fully
•Staff KPIs
LA2 Total number and rate of new employee hires and employee turnover by age
group, gender, and region.
Partially
•Staff KPIs, see New hires
•Staff KPIs, see Fluctuation
No further breakdown by age group, as this would
not result in significant value-add for under
standing Tchibo‘s sustainability performance.
172
Indicator
Status
Reference
LA3 Benefits provided to full-time employees that are not provided to temporary
or part-time employees, by major opera
tions.
Fully
LA4 Percentage of employees covered
by collective bargaining agreements.
Fully
In the benefits we voluntarily provide to employees, we do not distinguish between full-time and
part-time employees, permanent and temporary
employment contracts, or different sites.
At Tchibo GmbH in Germany, 100% of all employees
are covered by collective bargaining agreements.
LA5 Minimum notice period(s) regarding
significant operational changes, including
whether it is specified in collective agree
ments.
Fully
LA6 Percentage of total workforce
represented in formal joint managementworker health and safety committees that
help monitor and advise on occupational
health and safety programs.
Fully
LA7 Rates of injury, occupational
diseases, lost days, and absenteeism,
and number of work-related fatalities by
region and by gender.
Partially
Staff codetermination at Tchibo is based on statutory requirements. The most important organ is
the workers council, which is in constant, mutually
trustful dialogue with the management. This is true
in particular regarding business decisions on the
development and future of the company and of jobs.
By law, information on significant operational
changes has to be communicated comprehen
sively and in good time. Also, negotiations must
be possible.
•Health management and occupational safety
At Tchibo in Germany, 100% of the workforce is
represented in occupational safety committees
•Staff KPIs, see Absence rates
•Staff KPIs, see Workplace accidents
•Staff KPIs, see Absent days
•Staff KPIs, see Work-related deaths
There are no work-related diseases at Tchibo.
LA8 Education, training, counseling,
prevention, and risk-control programs in
place to assist workforce members, their
families, or community members regarding serious diseases.
Fully
LA9 Health and safety topics covered in
formal agreements with trade unions.
Fully
Occupational safety is regulated by law in Germany
and is put into practice in accordance with the
requirements. In addition, the company works with
the workers council to develop company agree
ments or organisational guidelines on occupa
tional health topics.
173
Indicator
Status
Reference
LA10 Average hours of training per year
per employee by gender, and by employee category.
Partially
Staff KPIs, see Education and training
LA11 Programs for skills management
and lifelong learning that support the continued employability of employees and
assist them in managing career endings.
Fully
•Training and development
•maxingvest ag Annual Report 2012, p. 86ff.
(Pension provisions and employee benefits)
LA12 Percentage of employees receiving
regular performance and career devel
opment reviews, by gender.
Fully
•Training and development
LA13 Composition of governance bodies
and breakdown of employees per employee category according to gender, age
group, minority group membership, and
other indicators of diversity.
Fully
•Staff KPIs, see Total
•Staff KPIs, see Age structure
•Staff KPIs, see Employees with disabilities
•Staff KPIs, see Distribution of salary levels
LA14 Ratio of basic salary and remuner
ation of women to men by employee
category, by significant locations of
operation.
Fully
LA15 Return to work and retention rates
after parental leave, by gender.
Partially
•Staff KPIs, see Parental leave
Indicator
Status
Reference
Human rights – Management approach
Fully
HR1 Percentage and total number of
significant investment agreements and
contracts that include clauses incorpo
rating human rights concerns, or that
have undergone human rights screening.
Fully
•Compliance
HR2 Percentage of significant suppliers,
contractors and other business partners
that have undergone human rights screening, and actions taken.
Fully
•Compliance
•Integrated supplier management
HR3 Total hours of employee training
on policies and procedures concerning
aspects of human rights that are relevant
to operations, including the percentage of
employees trained.
Partially
•Compliance
HR4 Total number of incidents of discrim
ination and corrective actions taken.
Fully
To our knowledge, there were no incidents of
discrimination during the reporting period.
Human rights
174
Human rights
Indicator
Status
Reference
HR5 Operations and significant suppliers
identified in which the right to exercise
freedom of association and collective
bargaining may be violated or at signif
icant risk, and actions taken to support
these rights.
Fully
•Risk management (Consumer goods)
identified as having significant risk for incidents of child labor, and measures taken
to contribute to the effective abolition of
child labor.
Fully
identified as having significant risk for
incidents of forced or compulsory labor,
and measures to contribute to the elimi
nation of all forms of forced or compulsory
labor.
Fully
identified as having significant risk for incidents of forced or compulsory labor, and
measures to contribute to the elimination
of all forms of forced or compulsory labor.
Fully
Social and Environmental Code of Conduct is part
and parcel of all contracts with our service providers. Our HR service providers commit in writing
to act in accordance with the principles set out in
the Tchibo Code of Conduct and to instruct their
employees accordingly. This applies also and in
particular for our security personnel.
HR9 Total number of incidents of viola
tions involving rights of indigenous people
and actions taken.
Fully
We are not aware of any such incidents.
HR10 Percentage and total number of
operations that have been subject to
human rights reviews and/or impact
assessments.
Partially
•Compliance
HR11 Number of grievances related to human rights filed, addressed and resolved
through formal grievance mechanisms.
Fully
Indicator
Status
Reference
Society – Management approach
Fully
•Fields of action
•Strategic approach (Sustainability management)
•Responsible business conduct
Society
175
Society
Indicator
Status
Reference
SO1 Nature, scope, and effectiveness of
any programs and practices that assess
and manage the impacts of operations on
communities, including entering, operating, and exiting. Percentage of opera
tions with implemented local community
engagement, impact assessments, and
development programs.
Fully
(Coffee)
(Consumer goods)
SO2 Percentage and total number of
business units analyzed for risks related
to corruption.
Fully
•Compliance
As part of group auditing by the maxingvest ag
auditing department, all business units are contin
ually reviewed for corruption risks. This review
was carried out in 2012 as well.
SO3 Percentage of employees trained
in organization‘s anti-corruption policies
and procedures.
Fully
•Compliance
Anti-corruption is part of our Code of Conduct,
which is binding for all employees. It has been
communicated to every staff member and to every
employee at the managerial level and was part of
the training and further education programme in
FY 2012, too.
SO4 Actions taken in response to incidents of corruption.
Fully
In FY 2012, five incidents were reported to the
Ombud office. None of them involved employees
being fired or subjected to disciplinary measures
due to corruption, or contracts with business
partners not being renewed for corruption-related
violations. During the reporting period, there were
no (ongoing or completed) court actions related
to corrupt practices brought against the reporting
organization or its employees, nor were there
results from any such court actions.
SO5 Public policy positions and partici
pation in public policy development and
lobbying.
Fully
As part of our memberships, we also take part in
public policy development and lobbying.
SO6 Total value of financial and in-kind
contributions to political parties, politi
cians, and related institutions by country.
Fully
During the reporting period, no financial or in-kind
contributions were made to political parties, politi
cians or related institutions.
SO7 Total number of legal actions for
anti-competitive behavior, anti-trust, and
monopoly practices and their outcomes.
Fully
The antitrust review begun in 2009 has not been
completed by the courts yet.
SO8 Monetary value of significant fines
and total number of non-monetary sanctions for non-compliance with laws and
regulations.
Fully
During the reporting period no significant fines or
non-monetary sanctions were imposed on Tchibo.
176
Society
Indicator
Status
Reference
SO9 Operations with significant potential or actual negative impacts on local
communities.
Fully
•Compliance
SO10 Prevention and mitigation measures implemented in operations with signif
icant potential or actual negative impacts
on local communities.
Fully
•Compliance
Indicator
Status
Reference
Product responsibility – Management
approach
Fully
•Strategic approach (Customers and products)
•Quality and safety
•Consumer-oriented communication
•Privacy / Data Protection
•Compliance
PR1 Life cycle stages in which health
and safety impacts of products and
services are assessed for improvement,
and percentage of significant products
and services categories subject to such
procedures.
Fully
•www.tchibo.com/content/311648/-/en/quality.html
PR2 Total number of incidents of noncompliance with regulations and voluntary codes concerning health and safety
impacts of products and services during
their life cycle, by type of outcomes.
Fully
PR3 Type of product and service infor
mation required by procedures, and
percentage of significant products and
services subject to such information
requirements.
Fully
Legal requirements regarding our products are
posted at www.tchibo.com/content/311648/-/en/
quality.html.
PR4 Total number of incidents of noncompliance with regulations and voluntary codes concerning product and
service information and labeling, by type
of outcomes.
Fully
There were no such incidents at Tchibo during the
period under review.
PR5 Practices related to customer
satisfaction, including results of surveys
measuring customer satisfaction.
Fully
•Customer focus
PR6 Programs for adherence to laws,
standards, and voluntary codes related
to marketing communications, including
advertising, promotion, and sponsorship.
Fully
•Consumer-oriented communication
Product responsibility
During the reporting period, there were 16
incidents of suspended sales, of which twelve
products could be sold again after a reworking.
177
Product responsibility
Indicator
Status
Reference
PR7 Total number of incidents of noncompliance with regulations and voluntary
codes concerning marketing communi
cations, including advertising, promotion,
and sponsorship by type of outcomes.
Fully
There were no such incidents at Tchibo during the
period under review.
PR8 Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data.
Fully
During the reporting period, Tchibo had two cases
of substantiated complaints regarding breaches of
customer privacy.
PR9 Monetary value of significant fines
for non-compliance with laws and regula
tions concerning the provision and use of
products and services.
Fully
No significant fines were imposed during the
reporting period.
Indicator
Status
Reference
Supply Chain – Management approach
Fully
Animal Welfare – Management approach
Not
Tchibo does not produce or sell meat and/or fish
products, so this indicator is not applicable for us.
FP1 Percentage of purchased volume
from suppliers compliant with company‘s
sourcing policy.
Fully
•Indicators, see Sustainable coffee
FP2 Percentage of purchased volume
which is verified as being in accordance
with credible, internationally recognized
responsible production standards, broken
down by standard.
Fully
•Indicators, see Sustainable coffee
FP3 Percentage of working time lost due
to industrial disputes, strikes and/or lockouts, by country.
Fully
During the reporting period, there were no strikes
at Tchibo.
FP4 Nature, scope and effectiveness
of any programs and practices (in-kind
contributions, volunteer initiatives, knowledge transfer, partnerships and product
development) that promote healthy
lifestyles; the prevention of chronic
disease; access to healthy, nutritious and
affordable food; and improved welfare for
communities in need.
Fully
FP5 Percentage of production volume
manufactured in sites certified by an
independent third party according to
internationally recognized food safety
management system standards.
Fully
Our German roasting plants are certified according to the International Food Standard (IFS).
Sector Supplement Food Processing
178
Indicator
Status
Reference
FP6 Percentage of total sales volume of
consumer products, by product category,
that are lowered in saturated fat, trans
fats, sodium and sugars.
Fully
In approx. 180 of our roughly 700 Shops (500 with
Coffee Bar), we will use low-fat milk (1.5 percent)
for preparing our coffee specialities in our Coffee
Bars if the customer requests it. In 2014 we plan
to introduce this at approx. 250 other Tchibo
Shops featuring a Coffee Bar.
FP7 Percentage of total sales volume of
consumer products, by product category sold, that contain increased fiber,
vitamins, minerals, phytochemicals or
functional food additives.
Fully
The sale of diet products, nutritional supplements
and the like was not material for Tchibo in 2012.
FP8 Policies and practices on commu
nication to consumers about ingredients
and nutritional information beyond legal
requirements.
Fully
We comply with all legal disclosure requirements
regarding ingredients. Beyond this, upon request
our Shop staff provide information to our customers about the ingredients and nutritional value of
the beverages and baked goods we serve.
FP9 Percentage and total of animals
raosed and/or processed, by species and
breed type.
Fully
FP10 Policies and practices, by species
and breed type, related to physical alter
ations and the use of anaesthetic.
Fully
For our coffee bars, we buy conventionally produced long-life milk, coffee cream and whipped
cream. With purchase prices and available quantities in mind, we periodically assess the conversion of our coffee bars to organic milk. To date,
however, this option has not been economically
viable for us.
In addition, the baked goods we sell, which are
sourced from suppliers, also contain animal products such as eggs.
We can make no statements about the feed and/
or veterinary medications used in our suppliers‘
production facilities beyond referring to the statutory requirements.
FP11 Percentage and total of animals
raised and/or processed, by species and
breed type, per housing type.
Fully
179
Indicator
Status
Reference
FP12 Policies and practices on antibiotic,
anti-inflammatory, hormone, and/or
growth promotion treatments, by species
and breed type.
Fully
For our coffee bars, we buy conventionally produced long-life milk, coffee cream and whipped
cream. With purchase prices and available quantities in mind, we periodically assess the conversion of our coffee bars to organic milk. To date,
however, this option has not been economically
viable for us.
In addition, the baked goods we sell, which are
sourced from suppliers, also contain animal products such as eggs.
We can make no statements about the feed and/
or veterinary medications used in our suppliers‘
production facilities beyond referring to the statutory requirements.
FP13 Total number of incidents of noncompliance with laws and regulations,
and adherence with voluntary standards
related to transportation, handling, and
slaughter practices for live terrestrial and
aquatic animals.
Fully
Sector Supplement Apparel and Footwear
Indicator
Status
Reference
Supply chain standards and practices –
Management approach
Fully
AF1 Code of Conduct - Code of conduct
content and coverage.
Fully
AF2 Audit Process - Parties and personnel engaged in code of conduct compliance function.
Fully
•Supplier qualification
AF3 Audit Process - Compliance audit
process.
Fully
AF4 Grievance Procedures - Policy and
procedures for receiving, investigating,
and responding to grievances and complaints.
Fully
AF5 Capacity Building - Strategy and
scope of efforts to strengthen capacity
of management, workers and other staff
to improve in social and environmental
performance.
Fully
180
Indicator
Status
Reference
AF6 Business Integration - Policies for
supplier selection, management, and
termination.
Fully
AF7 Code of Conduct - Number and
location of workplaces covered by code
of conduct.
Fully
•KPIs (Indicators), see Producers
To date, we do not systematically record the
number of workers in the production countries in
our value chain. We are working on a new data
system that would allow for recording this indicator in the future.
Estimate: 800,000 jobs that are subject to the
SCoC (810 producers x 1,000 jobs on average)
AF8 Audit Process - Number of audits
conducted and percentage of workplaces
audited.
Fully
•KPIs (Indicators), see Social audits
AF9 Non-compliance findings - Incidents
of non-compliance with legal require
ments or collective bargaining agree
ments on wages.
Fully
Audits are a snapshot of the situation and often
only uncover very visible violations. They therefore do not supply a comprehensive picture.
Besides, the individual types of infringement are
often interconnected. That is why we do not break
down the infringements by ‘type’. Instead, we use
our WE approach to work towards comprehensive
and integrative improvement of social standards in
the factories.
AF10 Non-compliance findings - Incidents of non-compliance with overtime
standards.
Fully
See response to AF9
AF11 Non-compliance findings - Incidents of non-compliance with standards
on pregnancy and maternity rights.
Fully
See response to AF9
AF12 Non-compliance findings - Incidents of the use of child labour.
Fully
See response to AF9
AF13 Non-compliance findings - Incidents of non-compliance with standards
on gender discrimination.
Fully
See response to AF9
AF14 Non-compliance findings - Incidents of non-compliance with code of
conduct.
Fully
•KPIs (Indicators), see Results of Initial and
Biannual Audits
AF15 Non-compliance findings - Analysis
of data from code compliance audits.
Fully
•Future challenges
AF16 Remediation - Remediation practices to address non-compliance findings.
Fully
AF17 Business Integration - Actions to
identify and mitigate business practices
that affect code compliance.
Fully
181
Indicator
Status
Reference
AF18 Materials - Programmes to replace
organic-based adhesives and primers
with water-based adhesives and primers.
Fully
Not relevant, as Tchibo does not fall under the shoe
products industry.
AF19 Materials - Practices to source
safer alternative substances to those on
the restricted substances list, including
description of associated management
systems.
Fully
AF20 Materials - List of environmentally
preferable materials used in apparel and
footwear products.
Fully
AF21 Energy - Amount of energy consumed and percentage of the energy that is
from renewable sources.
Fully
•KPIs (Indicators) Umwelt, see Energy consumption
AF22 Employment - Policy and practices
regarding the use of employees with nonpermanent and non-fulltime status.
Fully
AF23 Employment - Policy regarding the
use of home working.
Fully
The Tchibo Social and Environmental Code of
Conduct (SCoC) does not differentiate between
permanent, temporary and part-time workers.
The Tchibo Social and Environmental Code of
Conduct (SCoC) does not differentiate between
home workers and other workers. Home workers
can also be integrated in the WE programme as
needed; at the moment, home working is not an
issue in the WE factories.
AF24 Employment - Policy on the use
and selection of labour brokers, including
adherence to relevant ILO Conventions.
Fully
All of the listed violations are prohibited as per
our SCoC. If we encounter infringements during
audits or during our WE programme, we demand
that they be rectified.
AF25 Wages and hours - Policy and
practices on wage deductions that are
not mandated by law.
Fully
•Production
Wage deductions are prohibited as per our SCoC.
If we encounter infringements during audits or
during our WE programme, we demand that they
be rectified.
AF26 Wages and hours - Policy on
working hours, including definition of
overtime, and actions to prevent excessive and forced overtime.
Fully
•Tchibo Social and Environmental Code of Conduct
We primarily address this issue through our
WE programme, as audits alone do not lead to
improvements.
182
Indicator
Status
Reference
AF27 Diversity and Equal Opportunity Policy and actions to protect the pregnancy and maternity rights of women
workers.
Fully
AF28 Employment - Percentage of foreign migrant workers as a portion of total
workforce, broken down by region.
Not
We do not record this indicator.
AF29 Labour/Management Relations Percentage of workplaces where there is
one or more independent trade union(s),
broken down by:
• Workplaces with a collective bargaining
agreement
• Workplaces without a collective bargaining agreement
Also provide information broken down by
country.
Partially
AF30 Labour/Management Relations
- Percentage of workplaces where, in
the absence of a trade union, there are
worker-management committees, broken
down by country.
Partially
AF31 Occupational Health and Safety Initiatives and programmes to respond
to, reduce, and prevent the occurrence of
musculoskeletal disorders.
Fully
AF32 Diversity and Equal Opportunity Actions to address gender discrimination
and to provide opportunities for the
advancement of women workers.
Fully
• Supplier qualification
AF33 Community Investment - Priorities
in community investment strategy.
Fully
AF34 Community Investment - Amount of
investment in worker communities broken
down by location.
Not
-
We primarily address this issue through our
WE programme, as audits alone do not lead to
improvements.
At least one factory has a collective bargaining
agreement in place.
As a result of our WE programme, working committees have already been set up in numerous
factories. We are working on determining the
exact number in future.
The risk analysis found that in comparison with
other occupational health and safety issues such
as silicosis and fire prevention, musculoskeletal
disorders are a relatively low- priority issue in the
supply chain. Therefore, we have no programmes
to address this issue.
183
► UN Global Compact
UN Global Compact Communication on Progress
(CoP) 2012
Tchibo joined the United Nations Global Compact (UNGC) on November 18th 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 2012.
The United Nations Global Compact is an international strategic initiative that has
united business, politics, workers‘ organizations and civil society since its estab
lishment 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 Global Compact essentially pursues two complementary goals:
•• To make the ten principles an integral part of business conduct around the world
•• To initiate actions that support the broader objectives of the United Nations, e.g.
the Millennium Development Goals (MDGs).
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 2012.
The following table shows our policies and systems, the measures we have taken, and the progress made. The
Communication on Progress 2013 will be published the 4th quarter of 2014.
184
In the reference column you find underlined hyperlinks which indicate to the part of the web report, where the
indicators are answered.
Strategy, governance and engagement
Criterion 1
Mainstreaming into
corporate functions
and business units
Criterion 2
Value chain
implementation
Policies and systems
• Key strategic objective: ‘Tchibo on its way to becoming a 100% sustainable business’ in accor
dance with The Management Board resolution
of 30 Aug 2011
• Integrated system of goals: Key objectives and
sub-goals for all fields of action; are an integral
element of the personal target-setting of the
department staff and their supervisors; goal
attainment is linked to remuneration of employees at all levels of the hierarchy
• Corporate Responsibility department: Coordi
nation with the departments, review of targets/
goals and annual reporting to the CEO and the
full Board
• Integrated Risk management
• Binding Code of Conduct for all Tchibo employees, based on the principles of the International
Labour Organisation (ILO)
• Binding Code of Conduct (Tchibo Social and
Environmental Code of Conduct) for all consumer
goods suppliers, based on ILO core labour
standards
Links
•• Strategic approach
(Sustainability management)
•• Mainstreaming and
organisation
•• Stakeholdermanagement
•• Risk management
•• Sustainable development
of the coffee sector
•• Integrated supplier
management
Measures and progress
• Step-by-step progress towards environmentally
and socially compatible design of all products
and business processes
• Stakeholder survey 2012 on the materiality of
sustainability-related issues and how far Tchibo
has progressed on them
• Coffee value chain: Sustainable development
of the coffee sector through cooperation with all
internationally accredited standards organisations,
partners and via our own programmes
• Consumer goods value chain: qualification of
suppliers as part of our WE programme (Worldwide Enhancement of Social Quality); expansion of the programme: by the end of 2012,
200 production sites were covered; systematic
social audits for the selection and inspection of
producers
• Awards for our Engagement (including DNWE
Corporate Ethics Award in 2012, the German
government’s CSR Award and European CSR
Award in 2013)
185
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
• Binding Code of Conduct for all Tchibo employees, based on the principles of the Interna
tional Labour Organisation (ILO)
goods suppliers, based on the ILO’s core labour
standards
• Commitment to the most important international
agreements (e.g. the accord on fire prevention
and building safety for Bangladesh)
Links
(Sustainability management)
•• Compliance
•• Integrated supplier management
•• Production
•• Future challenges
•• Memberships and
cooperations
• Qualification of suppliers as part of our WE programme; expansion of the programme, by the
end of 2012, 200 production sites were covered
• Joined the Accord on Fire Prevention and
Building Safety for Bangladesh in 2012
• Opened an office in Dhaka in 2012 to closely
oversee the production sites in Bangladesh
• Systematic social audits for selecting and
inspecting producers
• 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
• Regular Code of Conduct training for all
Tchibo employees
• Memberships in initiatives to uphold
human rights
• Addressing of unresolved challenges such as
living wages, e.g. as part of our WE programme
and multi-stakeholder initiatives
186
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,
strategies or policies in
the area of labour
Criterion 7
systems to integrate
the labour principles
Criterion 8
Monitoring and evalu
ation mechanisms
for labour principles
integration
goods suppliers, based on the ILO core labour
standards
• Corporate culture of diversity and equal
opportunity
• Employee co-determination on the Tchibo GmbH
workers council and supervisory board
• Transparent job rating system to ensure
comparable compensation
• Commitment to the most important international
agreements
Links
•• Sustainable development of
the coffee sector
•• Educational projects in the
source countries
•• Integrated supplier
management
•• Corporate culture and
values
•• Diversity and equal oppor
tunity
co-operations
• 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
• Realignment of the buying strategy in consumer
goods: more direct sourcing, fewer production
sites, expansion of strategic partnerships
• Qualification of suppliers as part of our WE programme; expansion of the programme; by the
end of 2012, 200 production sites were covered
• Systematic social audits for the selection and
inspection of producers
• Establishment and expansion of preschool care
for children of migrant workers and harvest
hands in Guatemala
• Regular training of all Tchibo employees on the
Code of Conduct
• Executive programme ‘Tchibo Triathlon +1’
• Dialog formats for employees, e.g. intranet
forum and Round Table discussions
• Share of employees with severe disabilities at
Tchibo GmbH during the reporting period: 4.67%
• Employee Survey 2012: survey of nearly
4,000 Tchibo GmbH employees in Germany;
high response rate of 63%
187
Labour
• No cases of discrimination during the reporting
period
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
systems to integrate
the environmental
principles
Criterion 11
and evaluation mecha
nisms for environ
mental stewardship
• Binding Code of Conduct for all Tchibo employees, to which environmental guidelines were
added in 2010
• Appointment of environmental officers for integrating/mainstreaming environmental aspects
into the business operations
• Annual agreement of environmental targets
for managing employees in the departments
• Develop and implement energy management
systems (EMS) at the German sites (Head
Office, roasting plants, central warehouses)
• Integrated ‘UmweltPlus’ concept to continually
reduce the environmental impact of our
consumer goods
• 30% reduction in CO2 emissions across the
procurement and transport chain between 2006
and 2011
• Membership in sector initiatives including the
SAI Platform, the Sustainable Coffee Program
and the Initiative Coffee & Climate, to reduce
CO2 emissions in coffee cultivation
• Supply of energy for all German Tchibo sites
with ‚ok-power‘ certified electricity from renewable
sources only
• Efforts to further minimise CO2 emissions in the
consumer goods supply chain include co-founding the ‘Carbon Performance Improvement
Initiative’ (CPI2) in 2011 and support for the
‘Business Environmental Performance Initiative’
(BEPI) since 2012
• Joined the ‘Better Cotton Initiative’ and the
‘Biodiversity in Good Company’ initiative in 2012
Links
(Environmental protection
at sites and during transport)
•• Climate protection
•• Transport and shipping
•• Energy consumption
•• Mobility
•• Local actions
•• Resource conservation
•• Environment and climate
•• Biodiversity
•• Integrated range management: UmweltPlus
•• Sustainable ranges
188
• All post and package consignments have been
sent using Deutsche Post DHL’s ‘GoGreen’
programme since 2012
• Complete conversion of the sales fleet to more
fuel-efficient models in 2011; this reduced the
average emissions to 124 g CO2 /km
(as of: year-end 2012)
• Energy-saving and resource-conserving measures in the everyday business routine, e.g. switch
in lighting technologies at Head Office
• Build employee awareness at our German sites
through specials like Climate Ambassadors,
Climate Day and Climate Dish
• All magazines, catalogues and promotional
materials have been printed exclusively on
FSC®-certified paper since 2012
• Further advancement of UmweltPlus: Definition
of product ecology requirements at five stages
of development for all product groups; documen
tation in product profiles, and integration in
Tchibo Quality Manual
• Increased the share of sustainably grown raw
coffees (Rainforest Alliance, Fairtrade, UTZ
Certified, Bio or 4C) to about 27% in 2012
(2011: 13%)
• Increased the share of textiles containing
responsibly produced cotton (Organic Cotton,
Cotton made in Africa) to 12.7 million selling
units in 2012 (2011: 8.5 million selling units)
• Contributed to the shift to renewables by selling
‘green’ services such as certified green electricity, climate-friendly gas and energy concept
houses
• Won the Sustainability in Logistics Award in
2013 and the ‘Green Card for Credible Climate
Awareness’ in 2012 and 2013
189
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
systems to integrate the
anti-corruption principle
Criterion 14
and evaluation systems
for the integration of
anti-corruption
Richtlinien und Systeme
Labour Organisation (ILO); includes a clear prohi
bition of corruption and granting or accepting
advantages
goods suppliers, based on the ILO core labour
standards
Links
•• Responsible business
conduct
•• Compliance
• Communication of the Code of Conduct to
every staff member and every employee in
management; the Code of Conduct is also an
integral element of our training and continuing
education programme
• Development of a compliance management
system, aligned to the IDW PS 980 standard
• As part of risk assessment by maxingvest ag’s
Group auditing department, all business units
are continually reviewed for risk of corruption;
this review was also carried out in 2012
• External review of Group auditing (maxingvest
ag) at the end of 2009/beginning of 2010
• Anonymous whistleblowing hotline for reporting
violations; it forwards any reports to the Ombudsman Council under strict confidentiality
• In FY 2012, no incidents were reported to the
ombudsperson – no employees were dismissed
or subjected to disciplinary measures in connection with corruption, nor were any contracts with
business partners discontinued due to corruptionrelated violations
• During the reporting period, no financial or
in-kind contributions were made to political
parties, politicians or related institutions.
190
Broader UN goals and issues
Criterion 15
Core business contri
butions to UN goals
and issues
Criterion 16
Strategic social invest
ments and philanthropy
Criterion 17
Advocacy and public
policy engagement
Criterion 18
Partnerships and
collective action
• Key strategic objective: ‘Tchibo on its way to
becoming a 100% sustainable business’ in
accordance with The Management Board
resolution of 30 Aug 2011
• Joined the UN Global Compact
November 18th 2009
• 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 2012
• Improvement in the living conditions of people
in developing and emerging countries through
our own projects and partnerships in the countries
where our products originate
• Participation in activities of the German Global
Compact network
• Participation in conferences, discussion forums
and Round Tables
• Memberships and cooperations with numerous
organisations to jointly work on solutions to the
challenges associated with our business.
Links
•• CEO Statement
source countries
source countries
cooperations
191
Corporate sustainability governance and leadership
Criterion 19
CEO commitment
and leadership
Criterion 20
Board adoption
and supervision
Criterion 21
Stakeholder
engagement
• Key strategic objective: ‘Tchibo on its way to becoming a 100% sustainable business’ in accor
dance with The Management Board resolution
of 30 Aug 2011
• Integrated system of goals: Key objectives and
sub-goals for all fields of action; are an integral
element of the personal target-setting of the
department staff and their supervisors; goal attainment is linked to remuneration of employees at
all levels of the hierarchy
• Corporate Responsibility department: Coordi
nation with the departments, review of targets/
goals and annual reporting to the CEO and the
full Board
• Integrated Risk management
• Systematic Stakeholder management in accor
dance with the requirements of the Account
Ability 1000 (AA1000) standard
Links
•• CEO Statement
•• Mainstreaming and
Organisation
•• Corporate culture and
values
cooperations
• 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 2012
• Stakeholder survey 2012 on the materiality of
sustainability-related issues and how far Tchibo
has progressed on them; incorporation of the
results in the company’s strategic direction and
corresponding measures
• Employee Survey 2012: Survey of nearly
4,000 Tchibo GmbH employees in Germany;
high response rate of 63%
• Memberships and cooperations with numerous
organisations to jointly work on solutions to the
challenges associated with our business.
192
► 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 Development (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.
http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/cb/955036/data/-/DeclarationofConformancewiththeGermanSustainabilityCode.pdf
► Memberships and co-operations
Advancing social development
Making change happen is often impossible on one’s own. We have teamed up with a number of organisations
to develop forward-looking solutions to the environmental and social challenges associated with our
business. We are in dialogue with relevant stakeholders, participate in various bodies, and have trusting
working relationships with strong cooperation partners.
In dialogue with other trading companies, experts, NGOs, government bodies and development organisations,
we put sustainability issues on the agenda worldwide and create impetus for/initiate processes for social devel
opment. To do so, managers and representatives of our Corporate Responsibility and Vendor Relations depart
ments take part in such things as conferences, forums and round tables. In addition, Tchibo also sits on various
bodies and committees in order to lobby for the assertion of environmentally and socially responsible business
practices at a political level as well. Together with partners from business, politics, science and civil society,
we also implement specific projects that we would not be able to realise alone. The following table provides an
overview of our current memberships and cooperations (the organisations are shown in alphabetical order).
193
Our memberships:
Logo
Organisation and purpose
Year joined and
Tchibo‘s role
Außenhandelsvereinigung des Deutschen
Einzelhandels e.V. (AVE)/Foreign Trade
Association (FTA)
The AVE (Foreign Trade Association of the
German Retail Trade) represents the interests
of retailers who import directly into Germany
and Europe. The FTA is its European umbrella
organisation.
2009,
Member;
Collaboration in the CPI2 und
BEPI initiatives
Better Cotton Initiative
The Better Cotton Initiative is a multi-stakeholder
organisation that unites NGOs like WWF with
textile suppliers and cotton producers. Its aim is
to promote the sustainable production of cotton.
2012,
Member; Tchibo boosts the
demand for Better Cotton by
using it in its cotton range.
Biodiversity in Good Company
Biodiversity in Good Company is an association
of companies that jointly advocate the protection
of biological diversity – in the interests of business
and society.
2012,
Member
Bundesdeutscher Arbeitskreis für Umweltbe
wusstes Management e.V. (B.A.U.M.)
BAUM is a politically independent, private-sector
environmental initiative. Its objective is to make
companies, institutions, government and people
more aware of the problems and opportunities of
environmental protection, and issues of sustainable
development.
2008,
Member
Bundesverband des Deutschen Versand
handels e.V. (bvh)
bvh is the trade association for interactive (online
and mail-order) retailers. In addition to representing
the interests of its members to the legislature and
political and economic institutions, it provides
information about the latest developments and
trends, and promotes the mutual exchange of
experience.
1971,
Member of the Sustainability
work group
Business Environmental Performance Initiative (BEPI) of the Foreign Trade Association
(FTA)
BEPI was launched in 2013 under the umbrella
of the European Trade Association FTA. The initiative helps companies to improve their environ
mental compatibility at the production stage of
their supply chains. The system is being tested
for the first time in 2013.
2013,
Member of the pilot group
194
Logo
Year joined and
Tchibo‘s role
Coffee & Climate
Coffee & Climate is an initiative by companies in
the coffee sector and development organisations
that is investigating – for a period of three years
until August 2013 (an extension until the end of
2015 is being prepared) – climate change and
how coffee farmers can best adapt to its local
impact.
2010,
Founding member,
Member of the Steering
Committee
Cotton made in Africa (CmiA) initiative of the
Aid by Trade Foundation
The Aid by Trade Foundation, together with
various partners from trade, politics, science
and civil society, contributes to the fight against
poverty and for environmental protection in devel
oping countries, particularly in Africa. The CmiA
initiative established by the Foundation aims to
promote ecologically and socially responsible as
well as economically viable cotton cultivation in
Africa – thereby improving living conditions for
small farmers and their families.
2007,
Member of the Cotton made
in Africa initiative’s Advisory
Council
CPI2 Carbon Performance Improvement Initiative
The Carbon Performance Improvement Initiative
(CPI2) was founded in 2011 by nine major German
retail and brand-name companies. The initiative
is supported by Germany’s Federal Environment
Agency (UBA) and Deutsche Investitions- und
Entwicklungsgesellschaft mbH (DEG). CPI2 seeks
to make a significant contribution to protecting
the climate by building a global network between
factories and brand-name manufacturers. The
goal is to save several million tons of CO 2 per
year. CPI2 offers a comprehensive management
tool, individual recommendations and practical
support.
2011,
Founding member,
Member of the Advisory
Council
Deutscher Kaffeeverband e.V.
The Deutsche Kaffeeverband e.V (German Coffee
Association) is the umbrella lobby organisation of
the German coffee industry..
1951,
Member
Deutsche Stiftung Verbraucherschutz (DSV):
Bündnis für Verbraucherbildung
The Bündnis für Verbraucherbildung (Alliance for
Consumer Education) is a group of protagonists
from civil society, business, politics and science
that was initiated and is headed by the German
Foundation for Consumer Protection (DSV). The
Alliance was founded in March 2013 to jointly
promote the consumer and life skills of children,
adolescents and adults.
2013,
Member, Advisory Council
member
195
Logo
Year joined and
Tchibo‘s role
Ethical Trading Initiative (ETI)
ETI was founded in 1998 by companies, unions
and NGOs to develop and disseminate best practices for implementing fair labour practice codes.
ETI‘s aim is to harness the combined power of its
members in order to push for compliance with
international labour standards and respect for
human rights along the entire supply chain –
tackling issues that individual companies would
not be able to address alone.
2010,
Member; Tchibo is active in
work groups, e.g. on fire protection and building security
in Bangladesh, and the right
to form unions
Forest Stewardship Council® (FSC®)
The non-profit organisation Forest Stewardship
Council® (FSC®) awards an accredited label for
wood and paper products that come from respon
sibly managed forests. Independent institutes
check to make sure every company along the
value chain (chain of custody) complies with the
strict FSC® standards.
2010,
Member of the FSC®‘s German chapter; Tchibo boosts
the demand for FSC® wood.
4C Association
The 4C Association is a global association of coffee
producers, trade, industry and other members
from various areas of society. Its aim is to improve
social, environmental and economic conditions
for those whose livelihoods depend on working
with coffee.
2004,
Founding member,
Member of the Council
Global Forest and Trade Network (GFTN)
The WWF set up the Global Forest and Trade
Network (GFTN) to support the timber industry
in becoming more sustainable. The network is
now active in more than 25 countries and regions
around the world. The GFTN’s more than 300
members have signed an agreement with WWF
that they will increasingly sell and/or buy more and
more FSC-certified goods while also actively
taking steps to eliminate timber obtained by illegal
logging and clear-cutting.
2011,
Member
Handelsverband Deutschland (HDE e.V.)
HDE is the umbrella organis ation for German
retailers. It represents the concerns and interests
of the retail industry across all sectors, at all locations and for all company sizes.
1974,
Tchibo is an active member of
the Environment, Energy and
Non Food committees
196
Logo
Year joined and
Tchibo‘s role
Initiative nachhaltiger Handel (IDH):
Sustainable Coffee Program
In the Sustainable Coffee Programme, which
is supported by the IDH – a Dutch organisation
to promote sustainable trade –coffee-sector
businesses, industry associations, and trade and
export partners work together with civil society,
governments and standards organisations with
the aim of increasing the proportion of sustainable
and competitive coffee production worldwide.
2012,
Founding member,
Committee
Initiative Pro Recyclingpapier (IPR)
The IPR is an initiative of companies in various
indust ries. The IPR’s aim is to increase the
acceptance of recycled paper (bearing the Blue
Environment Angel seal) and to lead by example.
Important partners are the Federal Ministry for
the Environment, the German Foundation for the
Environment (DBU), as well as consumer and
environmental organisations such as the National
Consumer Advice Centre (vzbv) and the Nature
and Biodiversity Conservation Union (NABU).
2008,
Member
Institute for Scientific Information on Coffee
(ISIC)
The non-profit organisation ISIC was founded
in 1990 and is committed to scientifically researching coffee and its effects on health.
1998,
Member
In 2001, the Neumann Kaffee Gruppe teamed
up with leading European coffee roasters and
formed the International Coffee Partners (ICP)
initiative to promote sustainability in the coffee
sector. ICP‘s mission is to develop best-practice
projects in partnership with small farmers around
the world, implement them and expand them.
2001,
Founding member,
Committee
Round Table on Codes of Conduct
Companies, trade associations, trade unions,
NGOs and Federal Ministries are represented at
the Round Table on Codes of Conduct. Its aim is
to assert social standards in developing countries.
2007,
Member;
Tchibo participates in the
ongoing dialog. In 2012 we
were particularly active in the
‘Living Wages’ workgroup.
197
Logo
Year joined and
Tchibo‘s role
Social Accountability International (SAI)
Social Accountability International (SAI) works to
promote labour rights and social standards all over
the world. The Social Management and Certifi
cation System developed by SAI, with its interna
tionally 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 longlasting 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. Its aim is to support the
worldwide development of and dialogue about
sustainable agriculture, preferably involving all
relevant stakeholders in the food chain.
2005,
Member of the Coffee
Working Group
Textile Exchange
Textile Exchange is a non-profit organisation
that primarily works to promote the cultivation of
organic cotton and consumer demand for it. Its
long-term aim is to increase the market share of
organic cotton to 50% worldwide.
2005,
Member; Tchibo boosts the
demand for Organic Cotton.
UN Global Compact, Netzwerk Deutschland
The Global Compact is the corporate social
responsibility network of the United Nations. The
Global Compact unites nearly 7,000 companies
around the world. They volunt arily commit to
adhering to ten principles related to human rights,
labour standards, environmental protection and
fight against corruption, and to integrate them into
their business processes.
2009,
Member
198
Our partners:
Logo
Beginning of the
partnership
Fairtrade
We work with Fairtrade to promote the interests of small
holder coffee farmers in the Fairtrade network. In this
way, Tchibo takes responsibility and helps to improve the
farmers’ living and working conditions. The independent
FAIRTRADE certifi c ation assures our customers that
products bearing the seal meet international standards
for fair trade. Tchibo has held a licence since 2008.
2008,
Product Advisory
Council Coffee
Institut für Markt-Umwelt-Gesellschaft (imug)
Tchibo cooperates with the Institute for Market, Environment
and Society (imug) in the field of consumer protection. imug
is a University of Hannover spin-off that specialises in
surveys and company evaluations in the areas of sustain
ability and consumer protection. imug will examine selected
Tchibo offers as needed to make sure they are in line with
consumer protection guidelines before they are introduced
to the market.
2007
Platform for Climate Compatible Consumption
Tchibo is a corporate partner of the Platform for Climate
Compatible Consumption Germany, a follow-up project to
the German Product Carbon Footprint project. The platform
is coordinated by Germany’s Öko-Institut e.V., the Potsdam
Centre for Climate Impact Research (PIK) and THEMA1.
The project gives companies a reliable framework for
discussing the calculation and reporting of product- and
consumption-related CO2 emissions – and a way to jointly
contribute to promoting climate-compatible consumption.
2010
Rainforest Alliance
The Rainforest Alliance Certified™ seal stands for a safe
and intact habitat for people and nature. The Rainforest
Alliance is committed to advancing environmentally friendly
use of land and socially responsible management. This
includes protecting animals and plants as well as providing
appropriate living and working conditions for indigenous
people. Tchibo has held a licence since 2006.
2006
UTZ Certified
UTZ Certified is a programme and quality seal for the
sustainable cultivation of coffee, cocoa and tea. The organ
isation, which changed its name from UTZ Kapeh to UTZ
CERTIFIED in 2007, supports coffee farmers with training
in business administ ration, socially compatible working
conditions and environmental management. It helps coffee
farmers to work more effectively and achieve higher income
through higher yields. Tchibo has held a licence since 2011.
2011,
Product Advisory
Council Coffee
199
► Prizes and awards
Kudos for our commitment
Major awards in 2012 confirm that we have once again made good progress towards a 100% sustainable
business. At the same time, the awards encourage us to continue working hard to achieve our goals.
Awards in 2012
Tchibo received the following prizes and awards during the reporting period:
• Tchibo a finalist in the ‘Erfolgsfaktor Familie’ company competition
(February 2012)
Sponsored by the Federal Ministry of Family Affairs, Senior Citizens, Women and Youth (BMFSFJ, the
‘Erfolgsfaktor Familie 2012’ (‘Family as Success Factor 2012’) competition for companies recognises
Germany’s most family-friendly companies. Tchibo’s logistics site in Gallin reached the final round with its
flex-time pilot project: a total of 43 flexible working time models take into account the needs of employees
at Gallin, and help them to achieve a healthy work-life balance.
• Award for Tchibo Ökostrom green electricity
(March 2012)
In the ‘Electricity Providers 2012’ study by the German Institute for Service Quality (DISQ) and the news
channel n-tv, Tchibo Ökostrom won first prize for the best website of all nationwide providers, while its customer
service earned a ‘Good’ quality rating.
• Green Card for credible climate awareness
(July 2012)
The German environmental organisation Deutsche Umwelthilfe e.V. awarded Tchibo a ‘Green Card’ for its
resolute fleet policy focused on reducing greenhouse gas emissions. Especially by switching our entire sales
fleet to more fuel-efficient models in 2011, we were able to reduce average emissions to 124 g CO2 /km, putting
us well below the EU climate target of 130 g CO2 /km.
• Most Trusted Brand
(September 2012)
In the annual Reader‘s Digest magazine survey in 2012, Tchibo was named the most trusted coffee brand for
the sixth time. In the represent ative survey, German consumers rate brands for their quality, image and
price-performance ratio.
• German Business Ethics Network (DNWE) Business Ethics Award
(November 2012)
The German Business Ethics Network (DNWE) is a coalition of representatives from science and academe,
business and associations. Its goal is to strengthen the role of ethics in business. Every two years since 2000,
it has presented its Business Ethics Award to exemplary initiatives. In 2012, Tchibo won the award for its
commitment to the way towards a 100% sustainable business, especially in the area of consumer goods. The
award was given in particular for our WE programme, an innovative approach to asserting socially responsible
production in developing countries .
200
Awards in 2013
Our efforts in 2012 were also honoured at the beginning of 2013 (Note: the editorial deadline for this report was
July 2013):
•• Supply Chain Sustainability Award
(March 2013)
Our commitment to sustainability and climate protection across the value chain – from resource use and
production through to disposal – won the Supply Chain Sustainability Award 2013 administered by the German
Logistics Association and its Austrian counterpart (BVL Germany and BVL Austria).
•• Second place in the WWF ‘Wood & Paper’ company survey
(April 2013)
Since 2003, WWF has regularly surveyed large companies about the origins of their wood products. Tchibo
came second in the ‘mail order retailers’ category for its use of certified wood and paper products last year (2012).
•• German Federal Government’s CSR Award
(April 2013)
In 2013 the German federal government presented its first CSR Award under the patronage of Federal Labour
Minister Ursula von der Leyen. The award recognises exemplary and innovative companies that strive to make
their business 100% socially, environmentally and economically compatible or can demonstrate that they are
making progress towards this goal. Among the participating companies Tchibo came first in the category of
companies with more than 5,000 employees. We were recognised for already fully aligning our business
towards sustainability and social responsibility, taking the entire value chain into consideration in the process.
•• European CSR Award
(June 2013)
As one of the four winners of the German Federal Government’s CSR Award, in 2013 the European Commission honoured Tchibo at the first presentation of its European CSR Awards. This award creates a link between
the national CSR awards and highlights the European dimension of corporate responsibility.
•• Green Card for credible climate awareness
(July 2013)
The German environmental organisation Deutsche Umwelthilfe e.V. awarded Tchibo its ‘Green Card’ for
serious commitment to climate protection for the second consecutive year.
► Certificates
External auditing of the report’s contents
The independent auditing firm PricewaterhouseCoopers AG audited our Sustainability Report 2012 for
compliance with the AccountAbility principles AA1000 as well as select quantitative sustainability-related
information. The certificate may be viewed here.
http://www.tchibo-nachhaltigkeit.de/csrweb/servlet/cb/955022/data/-/TchiboCertificate.pdf
201
Tchibo Sustainability Report 2012 | Service Bar
► About Tchibo
About Tchibo
Founded in 1949 by Max Herz, Tchibo has been synonymous with freshness and quality in the coffee
market for over 60 years. Originally a coffee mail-order firm, it has evolved into an international company
and operates in many more business sectors than the traditional selling of coffee. Over the years, Tchibo
has systematically expanded its range and distribution paths, ensuring diversity and quality the world
over with strong brands.
Tchibo stands for a unique business model. In eight countries, Tchibo operates more than 1,000 Tchibo Shops,
approx. 30,000 Depots at third-party retail outlets, and national online shops. The company uses this multi-channel
distribution system to offer coffee and the Cafissimo single-serve system, along with weekly changing non-food
ranges and services including travel, mobile and green energy.
Tchibo and its 12,300 employees worldwide generated revenues of 3.6 billion EUR in 2012. The company is the
roasted coffee market leader in Germany, Austria, Poland and the Czech Republic, and one of the leading
e-commerce companies in Europe.
Its sustainable business policies have earned the family business, which was founded in Hamburg in 1949,
multiple awards including the award for Corporate Ethics and the Environmental Logistics Award in 2012, and
the Federal Government’s CSR Award in 2013.
202
Markets
In 1955 the first Tchibo store opened its doors in Hamburg – the cornerstone for our success story.
In 2012, Germany is still by far our most important market, but the international business is becoming
more and more important.
Some 40 years after the company was founded, in the early 1990s Tchibo made the leap from a national to a
successful multinational company. Within a few years Tchibo grew – through determined expansion in Central
and Eastern Europe – into one of Europe’s leading coffee providers. Tchibo has subsidiaries in Austria, Switzerland, Slovakia, Poland, Hungary, Czech Republic, Russia, Romania and Turkey, and exports coffee to over
40 countries around the world.
Core sales markets
Our core sales markets are Germany, Austria and Switzerland. Around 90% of our more than 1,000 Tchibo
shops are located in these countries. Our home market Germany alone accounts for some 750 Tchibo shops.
Tchibo/Eduscho entered the Austrian market in 1969. Today, Vienna-based Eduscho Austria leads the market
with its two brands Tchibo and Eduscho, and offers an extensive range of roasted coffee, consumer goods and
Coffee Bars. Distribution is handled by the around 150 Tchibo/Eduscho shops, supermarkets and specialist
retailers, and on the Internet.
In 2001, Tchibo entered the direct-to-customer market in German-speaking Switzerland: Tchibo‘s range of
consumer goods was initially offered on the Internet and via the catalogue magazine. In 2002, we opened
our first Tchibo shops in Lucerne, Winterthur and Basel, and now the Tchibo triplet is offered in 40 Tchibo
shops across Switzerland.
Growth markets
Beyond our core sales markets, we also do business in eastern and southeast Europe. This region will be
an important growth driver for us in the years ahead.
Since 1991, we have operated Tchibo shops in Hungary, Czech Republic and Slovakia as well, while our
coffee is mainly distributed through wholesalers and retailers.
In 1992, Tchibo entered the Polish market, and quickly attained a significant market position by swiftly and
systematic ally establishing its sales and distribution network. After two years of successfully developing the
Polish market, Tchibo opened its own coffee-roasting plant in Marki in 1994. In 1999, it introduced a second
brand on the Polish market: Gala. More than 30 Tchibo shops have been opened to establish the stationary
business system in Poland. In addition, Tchibo Coffee Service has supplied coffee and coffee products to
hotels and offices since 1994. And since the beginning of 2008, Tchibo‘s local Web Shop has allowed
customers to order consumer goods and coffee online.
In 1994, Tchibo opened its first Russian branch in St. Petersburg, followed a year later by the second branch
in Moscow. Within just a few years, Tchibo had achieved a high recognition rate in Russia and is now developing
into one of the country‘s leading coffee vendors. We have also operated a branch in the Romanian capital
Bucharest since 2001 and have a nationwide retail presence with coffee compositions reflecting the country‘s
specific taste profile across all segments of the roasted and instant coffee market.
Tchibo entered the Turkish market with the opening of a Tchibo shop in Istanbul in 2006. Following our successful
market entry, distribution was rapidly extended to more than 30 Turkish branches. Further Tchibo shops are
planned.
203
Lines of business
Tchibo has a diverse product range, with its origins in the world of coffee. Whether for B2C or B2B
customers: we stand for top-notch coffee quality and first-rate service. In the B2C business, we also
offer a whole new world of consumer goods and services each week – full of surprises and of the
highest quality.
Unique coffee enjoyment
Since its earliest beginnings, Tchibo has been synonymous with supreme coffee quality and unique coffee enjoyment.
Customers have always associated our brand with extraordinary coffee expertise, and they give us their trust.
Following its successful launch with the ‘Gold-Mocca’ brand, by 1958 the company was number one in the German
coffee market. In the following years, Tchibo opened up more and more market segments with momentous coffee
innovations. With the acquisition of Eduscho, Tchibo added the Gala von Eduscho brand to its coffee range and
became a full-range coffee provider. Today, Tchibo has a market presence across all classic roasted coffee
segments, from decaf to strong espresso.
For Tchibo, it is important not only to offer top-notch coffee grades, but also to preserve the natural habitat of the
coffee-growing regions. We work to ensure that they are sustainably protected for present and future generations.
Tchibo Coffee Bars: Come in and feel at home
Tchibo Coffee Bars have a long tradition: after six years of mail-order coffee sales, in 1955 Tchibo opened its
first shop with coffee tasting. We systematically developed this idea and tailored it to our customers’ wishes.
Today we offer selected coffee specialities and snacks for our customers to enjoy at over 500 of the 750 Tchibo
shops in Germany.
Consumer goods: varied and useful
The structure of our ranges has evolved considerably over the years. By the early 1970s, Tchibo had already
started expanding its range to include a few choice consumer goods. Today, under the heading ‘Only at Tchibo’,
Tchibo offers its customers a weekly changing range of about 50 products revolving around a central topic.
We’ve also made a name for ourselves in the past few years as a seller and broker of travel, services, mobile
communications and energy products: they have become a fixed element in our business model.
204
Tchibo Coffee Service: strong brands and an extensive range
Tchibo Coffee Service, founded in 1972, is the expert for professional out-of-home coffee supply – at offices,
hotels and restaurants, in company canteens, hospitals, nursing homes, and catering and operating companies.
Tchibo Coffee Service offers bespoke concepts for reliable, economical coffee enjoyment. Offering a great diversity
of choice coffee compositions and added ranges in combination with proven training and promotional services
help to increase our customers’ added value. In the past few years we have grown our customer base considerably
and now have four subsidiaries doing a successful business in Austria, Czech Republic, Poland and Britain.
Tchibo also has a close-knit network of distributors in countries outside Europe.
Strategy
As one of Germany’s biggest international consumer goods and retail companies, Tchibo takes responsi
bility for people and the environment. Sustainability has been an integral element in our corporate strategy
since 2006. As a family business, this is the only way we can continue to offer our customers what
makes the Tchibo brand unique: top-notch roasted coffee expertise with a weekly changing variety of
consumer goods.
Our goal is a 100% sustainable business – we take responsibility for our actions. First because we can make
a difference, internationally and across several sectors and regions, due to our business model: in the growing
and processing of coffee, cotton and wood. And second, because future business success will depend quite
crucially on consumer trust and confidence, high-quality products, business partners with a long-term approach
and a sense of responsibility, and dedicated employees. That is why we continually review and optimise our
products, our processes and our system of values.
In 2012, Tchibo made further progress on its path to becoming a 100% sustainable business. In November
2012, the German Business Ethics Network (DNWE) acknowledged our initiatives for putting corporate social
responsibility into practice by awarding Tchibo its Corporate Ethics Prize. In 2013, we also won the German
government’s CSR Prize.
205
► Executive Summary
Key facts at a glance
In keeping with Hanseatic merchant tradition, Tchibo takes responsib ility for its actions. Only if we
consider the impact of our business activities on people and the environment worldwide do we live up
to our responsibility to society while also securing our business success long-term. Sustainability has
therefore been an integral component of our corporate strategy since 2006.
On our way towards a 100% sustainable business, we continuously optimise our products and processes, focusing
on areas where we can make a difference by exerting direct influence. With the integration of sustainability into
all organisational units and across all processes, sustainability has become a part of Tchibo’s product and
process quality. We want the Tchibo brand to stand for sustainability, and for this to be perceived accordingly
by our stakeholders.
Below we provide an overview of our most important activities in the following fields of action:
•• Coffee value chain
•• Consumer goods value chain
•• Customers and products
•• Environmental protection at locations and on the move
•• Employee benefits
Coffee value chain:
We want to continue to offer our customers top-of-the-line Tchibo coffee quality. That is why our medium-term
goal is to exclusively offer coffee whose cultivation complies with environmental, social and economic requirements,
and therefore provides coffee farmers with an enduring livelihood. We are committed to further developing our
supply chain as well as the coffee industry as a whole. For instance, we are systematically developing our supply
chains the comprehensive Tchibo Joint Forces!® training programme, complemented by long-term purchasing
agreements. Another important element is cooperation with all internationally accredited standards organisations
for the validation and certification of environmentally and socially responsible coffee production. In 2012, more
than 25% of our processed raw coffee fulfilled the requirements of our sustainability concept. In other words, they
came from cultivation that meets our standards (certified or verified sustainable). Beyond this, we help coffee
farmers’ families in the coffee-growing countries by carrying out our own educational and vocational projects.
Consumer goods value chain:
Our goal is to ensure fair and environmentally friendly production conditions in the manufacture of our consumer
goods. The basis for our cooperation with business partners and suppliers is the Tchibo Social and Environmental
Code of Conduct (SCoC). Our activities in the production plants centre on the ‘WE’ (Worldwide Enhancement of
Social Quality) qualific ation programme, in which we will eventually integrate all of our strategic producers. By
the end of 2012, about 200 were already included, rising to 225 in the first half of 2013. We also work with other
relevant protagonists to ensure the right to form trade unions and negotiate collective agreements; living wages
for workers in the Asian employment markets; as well as fire and building security. In the area of ecology, our
UmweltPlus concept provides a comprehensive, integrative approach to ensuring an environmental, resourceconserving and recycling-friendly product design for our consumer goods. We are focusing our social commitment
in the regions where we source our raw materials: we support education-oriented projects for the children of
cotton farmers in Africa.
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Customers and products:
Our customers’ trust is the foundation for our success. On our way to becoming a brand that stands for sustain
ability, we want to not only maintain this trust, but strengthen it further. Comprehensive customer focus is the
basis for this. It revolves around excellent service, effective complaints management and professional customer
relationship management. For instance, in future customers can make their shopping experience flexible and
unique by linking the various sales channels. Tchibo also sets the highest standards when it comes to quality.
Quality tests are constantly carried out at the various production stages of coffee products and consumer goods
– both by Tchibo itself and by independent testing institutes. Our mission is to promote sustainable consumption.
Therefore, we are continuously expanding our range of environmentally and socially responsible products, and
communicate this in an increasingly targeted way. We plan to signific antly step up our communic ations at the
point of sale in particular. By joining the Alliance for Consumer Education founded by the Federation of German
Consumer Organisations in early 2013, Tchibo is also involved in a wider social discourse on the topic.
Environmental protection at our sites and during transport:
A healthy environment is essential to the future of our business. Therefore, climate protection and resource
conservation is our primary goal. We review all our business processes and control them using an environmental
management system based on the guidelines of the ISO 14001 standard. In doing so, we focus on the root
causes and in particular on areas that we can influence directly: energy and resource efficiency, transport and
shipping, our fleet of vehicles and business travel, as well as employee motivation. For instance, we work at our
locations to continuously reduce energy and water consumption and only buy energy from certified renewable
sources. The complete conversion of our sales fleet to more fuel-efficient models has reduced our average
emissions to 124 g CO₂/km. Since 2012, we have shipped all mail and parcels using Deutsche Post DHL’s
‘GoGreen’ programme. During the same period, we switched to printing all of our magazines, catalogues and
advertising material on FSC®-certified paper. In order to increase our engagement for biodiversity, we joined
the Biodiversity in Good Company initiative in 2012.
Employee benefits:
As a family-owned business we have a strong corporate culture. Well-qualified and engaged employees are the
basis of our success. We maintain friendly, open working relationships characterised by appreciation and dialogue.
Motivated and capable employees ensure our future. Therefore, we invest in the vocational and further training
of our workforce. Tchibo is one of the most family-friendly companies in Germany. We are constantly working to
ensure a healthy work-life balance for our staff. This applies to the care of children and dependent relatives, as
well as for flexible working hours and places of work (home office etc.). Tchibo has invested in a comprehensive
company health management system for many years. Measures include ergonomic workplace design as well as
well-balanced meals in the staff restaurant and a sports programme to promote health. In 2012, the prevention
of mental/psychological stress was added as a new element. Our employees not only receive recognition for
their achievements, but also get attractive, performance-based compensation and numerous voluntary social
benefits. This too is an expression of a corporate culture based on appreciation.
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► Contact us
Contact us
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
Director Corporate Responsibility
Monika Focks
Category Leader CR
Tchibo GmbH
Corporate Responsibility (CR)
Überseering 18
D-22297 Hamburg
Tchibo GmbH
Corporate Responsibility (CR)
Überseering 18
D-22297 Hamburg
Tel. +49 (0)40 63874839
Fax +49 (0)40 63874445
Tel. +49 (0)40 63873566
Fax +49 (0)40 638753566
E-Mail: corporateresponsi[email protected]
E-Mail: corporateresponsi[email protected]
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► Downloads
Downloads
In this section, we have compiled some information that pertains to our sustainability efforts.
The underlined hyperlinks lead on to the respective PDF files.
Sustainability reports and brochures
Position papers and statements
Tchibo Sustainability Report 2012 (9,7 MB)
Accord on Fire and Building Safety in Bangladesh
(0.3 MB)
Tchibo Sustainability Report 2011 (3.3 MB)
Position paper on sandblasting (0.1 MB)
Asia Floor Wage statement (0.1 MB)
Information on the coffee price increase
of December 2010 (0.5 MB)
Our responsibility – Sustainability at Tchibo 2012
(1.6 MB)
Corporate responsibility at Tchibo 2009 (3.6 MB)
Tchibo Logistics – Acting with responsibility 2013
(2.2 MB)
Evaluation of the Stakeholder Survey 2012 (0.3 MB)
Codes of Conduct
maxingvest ag Annual Reports
Tchibo Code of Conduct (2.2 MB)
maxingvest ag Annual Report 2012 (0.7 MB)
Code of Conduct for Suppliers in German (0.1 MB)
Code of Conduct for Suppliers in English (0.1 MB)
Code of Conduct for Suppliers in Chinese (0.2 MB)
Code of Conduct for Suppliers in Bengali (1.2 MB)
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► Glossary
Glossary
A
4C Association/4C standard
The 4C Association is a global association of coffee producers, retailers, industry and further members from
various areas of society. The association is committed to a continuous process of improving social, environmental and economic conditions for people whose livelihoods depend on work involving coffee. The 4C Association
also defines the baseline standards for responsible coffee cultivation.
Acceptable Quality Level (AQL) procedure
The Acceptable Quality Level (AQL) procedure is a statistical procedure to monitor the quality of product
deliveries using random sampling.
AccountAbility 1000 (AA1000)
The AccountAbility 1000 (AA1000) standard is a globally applicable set of rules for reviewing sustainability
management and sustainability reports. It was developed by the AccountAbility Institute of Social and Ethical
Accountability. The AA1000 review is based on three principles: inclusiveness (targeted and systematic involvement of stakeholders), materiality (identification of relevant issues together with the stakeholders), and reactivity
(systematic response to stakeholders’ input).
Aid by Trade Foundation
The Aid by Trade Foundation works with various partners from industry, politics, science and academe, and civil
society to contribute to fighting poverty and protecting the environment in developing countries, especially in Africa.
Asia Floor Wage (AFW)
The Asia Floor Wage (AFW) campaign is a syndicate of over 70 unions and labour rights organisations, mostly
from Asia. Together, they pursue the aim of calculating and implementing a minimum living wage for the region’s
textile-exporting countries. The calculation takes regional differences in the cost of living into account and
includes every necessary expense that a household or family has to pay. These include expenditure on food,
rent, clothing, pension contributions, childcare and education. The basic wage calculated in this way is intended
to provide a basis on which wages can be negotiated.
Audit
An audit is a review procedure that serves to ensure compliance with standards and guidelines.
B
Better Cotton Initiative (BCI)
The Better Cotton Initiative (BCI) is a multi-stakeholder organisation that unites non-governmental organisations
like the WWF with textiles retailers and cotton producers. Their shared goal is to promote sustainable cotton
production.
Biodiversity
Biodiversity is the term used to describe the full range of life on Earth. Biodiversity encompasses three levels:
the diversity of ecosystems, which also includes biological communities, habitats and landscapes; the diversity
of species; and the genetic diversity within species.
Biodiversity in Good Company
Biodiversity in Good Company Initiative e.V. is an association of companies that jointly advocate the protection of
biological diversity – in the interests of business and society.
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Bionic Finish ECO
Bionic Finish ECO is an environmentally friendly waterproofing that repels both water and dirt. Modelled on the
branching structure of a feather, it uses polymers whose high density makes them as good as impenetrable for
liquids. Tchibo uses Bionic Finish ECO to waterproof its rain apparel.
Bio-Siegel (Eco-seal)
Since 2001, the hexagonal ‘Bio’ seal has served as Germany’s umbrella label for products from organic agriculture.
It stands for controlled organic cultivation according to the EU’s Organic Farming Directive. The European Bio seal
has now been added to the German seal, based on the same controls and directives. It serves to identify products
from controlled organic cultivation across Europe.
Blue Angel
The Blue Angel has been used to label eco-friendly products and services since 1978. This voluntary environmental certification procedure is administered by an independent panel of judges based on fixed criteria. The
‘Blaue Engel’ seal is governed by the Eco-Label Jury, the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, Germany’s Environment Agency and the Ecolabel Licensing Office (RAL gGmbH).
Boreal
The boreal (subarctic) zone is a cold climatic zone located between approximately the 50th and 70th lines of
latitude on Earth’s northern hemisphere. It includes parts of Russia, Scandinavia and Canada.
Business Environmental Performance Initiative (BEPI)
The Business Environmental Performance Initiative (BEPI) came into being in 2013 under the umbrella of the
European Foreign Trade Association (see also FTA). The initiative supports companies in improving the environmental scorecards in the production of their supply chains. The system is being tested for the first time in 2013.
Business Social Compliance Initiative (BSCI)
Founded in 2002, the BSCI is a non-profit organisation based in Brussels. The BSCI’s principal aim is to
safeguard social responsibility standards in global supply chains.
C
Carbon Performance Improvement Initiative (CPI 2 )
The Carbon Performance Improvement Initiative (CPI2) was founded in 2011 by nine major German retail and
brand-name companies. The initiative is supported by Germany’s Federal Environment Agency (UBA) and
Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG). CPI 2 seeks to make a significant contribution
to protecting the climate by building a global network between factories and brand-name manufacturers. The
goal is to save several million tons of CO2 per year. CPI2 offers a comprehensive management tool, individual
recommendations and practical support.
Certifica Minas Café
Certifica Minas Café is a certification programme for responsible coffee farmers in the Brazilian state of Minas
Gerais, one of Brazil’s biggest Arabica coffee-growing regions. It was initiated by the local government, which
makes it one of the world’s first programmes established by a regional government.
Child Care Center (CAI)
A Child Care Center (CAI) is a facility where children are given preschool care. Six CAIs are being set up at
schools near the coffee plantations in Guatemala’s Chiquimula region. Children aged 2 to 13 will be given an
age-appropriate care and educational programme, a balanced diet and monthly medical checkups.
Clean Cargo Working Group (CCWG)
The Clean Cargo Working Group (CCWG) is a worldwide Business-to-Business (B2B) initiative founded by
leading transport companies and their clients. It works towards an improvement in the ecological scorecard of
container transport by measuring, evaluating and reporting on emissions.
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Clean Clothes Campaign (CCC)
Since 1989, the Clean Clothes Campaign (CCC) has worked worldwide to promote fair working conditions in the
production of clothing and sport apparel. The CCC is a syndicate of organisations in 15 European countries,
including businesses and NGOs. The campaign mobilises consumers, stakeholder groups and governments to
jointly bring about improvements. It also supports production workers in standing up for their rights.
Code
A code is a set of conventions or moral principles governing behaviour in a particular sphere.
Code of Conduct
The Code of Conduct consists of standards and values for ethical business practices and good corporate conduct.
It serves to convey these practices and principles to all company employees, who should therefore feel committed
to conducting business ethically, behaving fairly and complying with all laws.
Coffee & Climate
Coffee & Climate is an initiative by coffee companies and development organisations that is – for a period of
three years through August 2013 – investigating climate change and how best coffee farmers can adapt to its
local impact. Tchibo is a founding member of this initiative, along with four other internationally operating coffee
companies and the Hanns R. Neumann Stiftung.
Compliance
Compliance is the state or fact of according with or meeting rules or standards. The term refers to compliance
with laws, directives, and guidelines at companies, as well as to compliance with voluntary codes.
Cooperative
In the coffee industry, a cooperative is a group of coffee farmers who aim to jointly operate as a single enterprise.
Activities include reciprocal support in coffee cultivation, processing and joint marketing. Cooperatives are
characterised by support for their members, self-help, responsibility for their own affairs and autonomy.
Corporate governance
Corporate governance refers to the management and monitoring processes used at a company, and how they
are organised. The fundamental rules abided by in this process can stem from legislation, result from collective
agreements or become applicable when the company joins an association.
Cotton made in Africa (CmiA)
Founded by the Aid by Trade Foundation (see also Aid by Trade Foundation), the CmiA initiative aims to promote
ecologically and socially responsible as well as economically viable cotton cultivation in Africa – thereby
improving living conditions for small farmers and their families.
Cross-channel activities
A company’s cross-channel activities link several distribution channels and communication paths, so that customers
can switch between them according to their individual needs.
Customer Relationship Management (CRM)
At the heart of customer relationship management is a resolute alignment of all business activities to customer
needs and requirements with the aim of keeping customers happy and loyal to the company. Accordingly, CRM
encompasses the planning, management and execution of all customer-related processes.
D
DISQ - German Institute for Service Quality
The DISQ (German Institute for Service Quality) is an independent market research institute specialising in
improving service quality. DISQ’s assessment procedures are based on mystery tests, which are carried out
without the knowledge of the company under examination.
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Drum Roaster
In a drum roaster, the green coffee is roasted in a rotating drum. Because the procedure keeps the beans constantly
in motion, they are mostly suspended in the air. This gives them time to develop all the flavours and reduces
undesirable acids and bitter substances.
E
Endosulfan
Endosulfan is a pesticide that was used in agriculture to protect the plants against pests (insects) in coffee
cultivation as elsewhere. Due to its toxicity, which makes it harmful to humans and the environment, the production
and use of Endosulfan has been prohibited worldwide since April 2011.
Energy management system (EMS)
An energy management system refers to the systematic coordination of energy consumption (sourcing, distribution
and use), taking environmental and economic factors into consideration.
Environmental auditing/environmental scorecard
These terms refer to a comprehensive concept for summarising and evaluating the effects on the environment
associated with companies, products and production processes, such as greenhouse gas emissions, acidification,
and cumulative energy expenditure.
Ethical Trading Initiative/ETI Base Code
The Ethical Trading Initiative (ETI) was founded in 1998 by companies, unions and NGOs to develop and
disseminate best practices for implementing fair labour practice codes. The ETI’s aim is to harness the combined
power of its members in order to push for compliance with international labour standards and respect for human
rights along the entire supply chain – tackling issues that individual companies would not be able to address alone.
Based on the conventions of the International Labour organisation (ILO), the ETI Base Code lays down basic rules
for hiring and treatment of employees.
EU Directives “Waste Electrical and Electronic Equipment” (2002/96/EG) and “Restriction of Hazardous
Substances” (2002/95/EG)
In effect since January 2003, Directive 2002/96/EC concerning electric and electronic devices aims to reduce the
increasing quantity of electronic waste. Among other things, the directive stipulates that countries should establish
a national collection system for electronic devices. Aiming to eliminate problematic component parts from electronic
devices, Directive 2002/95/EC regulates the use of hazardous substances in appliances and parts.
F
Fairtrade
The FAIRTRADE seal stands for fair trading practices aimed at improving the living and working conditions for small
farmers in countries where crops are cultivated. In particular, this involves paying a minimum price to small farmers
as well as a premium to be spent on community projects. Fairtrade also promotes sustainable cultivation methods.
Fluid bed roaster
Fluid bed roasters are roasting machines that roast coffee beans in batches, with jets of hot air. The beans are
kept suspended in the air and their entire surface is roasted. Fluid bed roasters make for a particularly gentle
roast, which allows the coffee’s flavour and body to develop fully, while undesirable acids are eliminated.
Foreign Trade Association (FTA)
The Foreign Trade Association (FTA) is the association of European and international trade. The FTA brings
together retailers, importers, brand-name manufacturers and national associations to improve the political and
legal framework for trade in a responsible manner.
Forest Stewardship Council® (FSC®)
The FSC® is a non-profit organisation which advocates sustainable forest management. The FSC® certification
label on wood and paper products indicates that the product originates from responsible forestry.
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Forest Tracing Standard (FTS)
In 2008, Tchibo developed the Forest Tracing Standard (FTS) with the support of the WWF environmental
foundation. It stipulates that Tchibo’s suppliers must be able to prove the origins of their wood. The idea is to
ensure that no wood from clear-cutting, ruthless exploitation or protected timber species is used.
G
GHG footprint
The GHG footprint describes the volume of greenhouse gases that a company discharges within a specified
time period and scope of activity.
Global Compact / United Nations Global Compact
The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations
and strategies with ten universally accepted principles in the areas of human rights, labour, environment and
anti-corruption. With some 7000 participating companies, the Global Compact is the world’s largest and most
important network for corporate social responsibility (CSR). It promotes dialogue with government and
non-governmental representatives, initiates voluntary partnerships, and develops feasible approaches for a
fairer globalisation process.
Global Forest and Trade Network (GFTN)
The WWF set up the Global Forest and Trade Network (GFTN) to support the timber industry in becoming more
sustainable. The network is now active in more than 25 countries and regions around the world. The GFTN’s
more than 300 members have signed an agreement with WWF that they will increasingly sell and/or buy more
and more FSC-certified goods while also actively taking steps to eliminate timber from illegal logging and
clear-cutting.
Global Organic Textile Standard (GOTS)
The Global Organic Textile Standard (GOTS) is a seal for textiles that has provided a standard certification
procedure in the production of organic fashions since 2008. The idea is to establish a worldwide controllable,
social and ecological standard that makes it possible to track the entire production chain of natural fashions.
Global Reporting Initiative (GRI)
The Global Reporting Initiative (GRI) is a non-profit foundation established in the United States in 1997 by
CERES and the United Nations Environment Programme (UNEP). It facilitates sustainability reporting at all
organisations. GRI has developed a comprehensive framework for sustainability reporting that is used worldwide.
This reporting framework sets out the principles and indicators that organisations can use to measure their
economic, environmental and social performance.
Green Economy
A green economy is an environmentally and socially compatible economy that is also profitable and competitive.
GRS – Stiftung Gemeinsames Rücknahmesystem
A foundation that organises a standard, Germany-wide system for consumers to return used batteries. The
foundation was set up by leading battery manufacturers and the Zentralverband Elektrotechnik- and Elektronikindustrie (German central association for the electrical and electronics industry) and is funded by its users: the
manufacturers and importers pay disposal cost contributions for the foundation’s services, according to the
number and type of batteries they sell.
H
High-visibility packaging
High-visibility packaging lets the consumer see the item inside the package. High-visibility packaging often consists
of thermoformed plastic components (blisters), which are combined with other materials, such as cardboard.
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Human Resources and Employment Operational Programme
The EU‘s ‘Human Resources and Employment Operational Programme’ works to reduce unemployment in several
EU countries, including the Czech Republic. The focus is on developing the labour market and the workforce.
I
ICA International Cotton Association
The International Cotton Association (ICA) is the world‘s leading cotton company and arbitration institution.
It has 500 members from across the supply chain. The ICA provides expert arbitration as well as coaching,
trade and networking events, cotton testing and research.
IDH Sustainable trade initiative
The IDH is a Dutch organisation to promote sustainable trade. It focuses on promoting cooperation between
businesses, civil society, politics and other stakeholders. To achieve this, it develops and organises programmes
in 18 product sectors, including the coffee sector.
IDW PS 980 compliance standard
To be able to audit compliance management systems (CMS) using consistent criteria, Germany’s Institute of
Public Auditors (IDW) introduced the PS 980 standard in April 2011. It defines the elements of a CMS and
provides a framework for auditing it.
Initiative Pro Recyclingpapier (IPR)
The IPR is an initiative of companies in various industries. Its goal is to further increase acceptance of the use of
‘Blauer Engel’-labelled recycled paper and to lead by example. Its key partners are Germany’s Federal Environment
Agency (UBA), the German Federal Environmental Foundation (DBU), and consumer and environmental
organisations such as the Federation of German Consumer Associations (vzbv) and the Germany’s Nature
Conservancy (NABU).
Intermodal transport
Intermodal transport refers to transport processes involving at least two different modes of transport, for example
ships and trucks.
In 2001, the Neumann Coffee Group teamed up with leading European coffee roasters and formed the International
Coffee Partners (ICP) initiative to promote sustainability in the coffee sector. ICP‘s mission is to develop bestpractice projects in partnership with small farmers around the world, implement them and expand them.
International Financial Reporting Standards (IFRS)
The International Financial Reporting Standards are issued by the International Accounting Standards Board (IASB).
In conjunction with the International Accounting Standards (IAS) and the rules of interpretation, they form the basis
of international accounting.
International Food Standard (IFS 5)
The International Food Standard is a quality and food safety standard for trade brands. The IFS is used for a
consistent review of producers’ food safety and level of quality at all stages of production and processing. IFS
was developed by member companies of the Association of German Retailers (HDE), the Fédération des
Entreprises du Commerce et de la Distribution (FCD) and the Italian retail associations CONAD, COOP and
Federdistribuzione.
International Organization for Standardization (ISO)
The ISO is an international association of national standards bodies. Each of the 150 member states is currently
represented by one ISO member. The ISO develops technical standards which apply throughout the world as
well as procedural standards, for example in quality and environmental management.
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Issues management
Issues management refers to the way in which an organisation systematically addresses the demands and
issues posed by its environment.
L
LED
LEDs are semiconductor devices that light up as soon as they are connected to an electrical current. Thanks to
their comparatively long lifespan and low energy consumption, LEDs are replacing conventional light bulbs in
many areas of application.
Lifecycle analyses
Lifecycle analyses consider the environmental aspects and potential environmental impacts of a product over its
entire lifecycle, that is: from extraction of the raw materials, to production, to the product’s utilisation and subsequent recovery/recycling or final disposal.
Living Document Process
The Living Document Process is used to continually develop Tchibo‘s UmweltPlus management tool and make
sure that the UmweltPlus profiles are up to date.
M
Materiality matrix
A materiality matrix clearly maps how important individual factors of a company‘s sustainability performance are,
for the company itself and for its stakeholders.
Multi-channel system
A multi-channel system encompasses several parallel distribution channels that are available to a company‘s
customers.
Multi-stakeholder (processes)
Multi-stakeholder processes are joint actions by a company with several other institutions.
N
Nongovernmental Organisation (NGO)
A non-governmental organization, often referred to as an NGO, is an advocacy group born of civil society that is
not profit oriented and based on voluntary work. NGOs work at local, national or international level to advance
socially relevant issues such as human rights, environmental protection or health.
O
Occupational Health Management (system)
An Occupational Health Management system encompasses the control and integration of all of a company’s
processes designed to promote its workers’ health and wellbeing and safeguard workplace safety.
Ombud Council
The Ombud Council is an in-house investigation committee at Tchibo composed of various department heads
from maxingvest ag and Tchibo GmbH, and the Works Council chairman.
Organic cotton
Organic cotton is produced under conditions that meet internationally recognised standards for controlled
organic cultivation.
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P
Pellets
Pellets are small, compressed, usually round or cylindrical bodies made of a particular material (such as wood,
metal or fodder). Pelleting makes it easier to handle and transport the material.
Poly- and perfluorinated chemicals (PFCs)
Poly- and perfluorinated chemicals (PFCs) are carbon-fluorine (organofluorine) compounds, and are produced
industrially. They are used especially often in outdoor clothing – such as rain gear – because they are greaseand water-repellent, breathable and very stable. However, because PFCs are suspected of being harmful to
health, Tchibo no longer uses PFC in textiles.
Product Carbon Footprint (PCF)
The (product) carbon footprint refers to the total greenhouse gas emissions caused by an individual during a
specific time or a product during its entire lifecycle. Companies can use the carbon footprint to identify and utilise
potential for reducing emissions.
Production ecology
The term covers all environment-related impacts from the process of manufacturing textiles and consumer goods.
Public Private Partnership
Public Private Partnership is the term for the mobilisation of private capital for state purposes. This can give rise
to long-term cooperation between the public and private sectors.
PVC
Polyvinyl chloride (PVC) is a plastic that can be moulded into a different shape within a certain temperature
range. Adding plasticisers and stabilisers makes PVC pliable and therefore very suitable for technical applications.
R
Rainforest Alliance
The Rainforest Alliance is especially committed to promoting environmentally friendly land use and socially
responsible business practices. These include the protection of animal and plant life, as well as decent living and
working conditions for the local people, i.e. the workers on the coffee farms, their families, and other members of
the local community. Products from farms that fulfil the organisation’s requirements are awarded the Rainforest
Alliance CertifiedTM seal. Tchibo has been a license holder since 2006.
Raw materials cycle
A raw materials cycle is the term for the cyclical reintegration of production waste into the production process.
REACH regulation
REACH is a European Community regulation on chemicals that has governed the Registration, Evaluation,
Authorization and Restriction of Chemicals since June 2007.
Renewable resources
Renewable resources are organic materials that stem from forestry or agricultural production.
Round Table on Codes of Conduct
Businesses, trade associations, trade unions, NGOs and Federal Ministries are represented at the Round Table
on Codes of Conduct. They share the aim of asserting labour and social standards in emerging and developing
countries.
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S
SA8000
The SA8000 standard is designed to improve the working conditions of employees of all kinds, including
temporary staff and workers). The standard is administered by the New York-based organisation Social Accountability International (SAI). Based on guidelines issued by the ILO and the United Nations; SA8000 stipulations
include the following: prohibition on child labour, prohibition on forced labour; occupational health and safety
standards; right to freedom of assembly and association and to collective bargaining; prohibition of discrimination, prohibition of physical or psychological punishment; limits on weekly working hours; assurance of acceptable
wage levels; and the incorporation of management systems to continue developing the standards set.
Social Accountability International (SAI)
SAI works to promote compliance with labour and social rights around the world. The SAI’s social management
and certification system based on the internationally applicable SA8000 standard (also see SA8000), along with
training and verification programs (Corporate Involvement Programme - CIP), is designed to help companies in
developing and developed countries to permanently implement social standards.
Soil erosion
Soil erosion occurs when wind and water constantly wear away soil. This leads to soil depletion (a shortage of
nutrients) and soil destruction.
Stakeholders
Stakeholders are groups of people who have a claim or expectation of any kind on a company or organisation;
the term encompasses both those within the organisation and those outside it.
Supply Chain Management
Supply chain management refers to the planning, management and control, across companies, of all logistical
tasks (material and information flows) in a value chain – from raw material supplier to end customer.
Sustainable Agriculture Initiative (SAI) Platform
The Sustainable Agriculture Initiative (SAI) Platform is a food industry initiative with about 40 member companies.
Its goal is to promote the global development of and dialogue on sustainable agriculture, involving all relevant
stakeholders groups in the food chain. Tchibo has been a member of its Coffee Working Group since 2005.
Sustainable Agriculture Network (SAN)
The Sustainable Agriculture Network (SAN) is an association of environmental organisations that uses social
and environmental standards to promote efficient, productive agriculture, biodiversity, and a sustainable development of society. It uses the Rainforest Alliance Certified™ seal as well the Sustainable Agriculture Standard
developed by the SAN itself.
Sustainable Coffee Program
The Sustainable Coffee Program, which is supported by sustainable trade initiative IDH (also see IDH sustainable
trade initiative) is an syndicate of companies in the coffee industry, trade and export partners, civil society,
governments and standards organisations. The aim is to increase the share of sustainable and competitive
coffee production around the world.
Sustainable Management Services Ltd (SMS)
Sustainable Management Services Ltd (SMS) is part of the ECOM Coffee Group. Founded in Kenya in 2007,
SMS today supports approximately 160,000 coffee farmers in Kenya with improving their economic situation and
their living conditions and to improve the sustainability of coffee cultivation. In this context, SMS also carries out
on-site projects in partnership with non-governmental organisations, customers and other companies, and
initiates multi-stakeholder initiatives.
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T
Tchibo Certified Merchandise (TCM)
Tchibo consumer goods and textiles carry the ‘Tchibo Certified Merchandise’ (TCM) quality seal. It guarantees
excellent product quality, careful selection, and exclusive production.
Tchibo Joint Forces!®
Tchibo Joint Forces!® is a programme developed by Tchibo to promote the sustainable development of the
coffee sector. In Tchibo Joint Forces!®, and the Tchibo coffee farmers work together closely and also involve all
relevant stakeholders across the value chain. The programme consists of five modules to increase sustainability
that can be applied to individual countries, regions and projects.
Textile Exchange
In October 2010, Organic Exchange was renamed Textile Exchange. Textile Exchange is an internationally
operating non-profit organisation dedicated to promoting the cultivation of and demand for organic cotton.
Its long-term goal is to increase the worldwide market share of organic cotton to 50%.
U
Universal Declaration of Human Rights
The Universal Declaration of Human Rights explicitly states the United Nations’ commitment to the principles of
human rights. It was adopted on 10 December 1948 with the UN General Assembly Resolution 217 A (III). The
declaration is made up of a total of 30 articles on the rights that every human is entitled to – regardless of their
skin colour, gender, language, religious affiliation, opinions, social or economic status, birth or nationality.
UTZ Certified
UTZ Certified is a programme and quality seal for the sustainable cultivation of coffee, cocoa and tea. The
organisation, which changed its name from UTZ Kapeh to UTZ CERTIFIED in 2007, supports coffee farmers
with training in business administration, socially compatible working conditions and environmental management.
It helps coffee farmers to work more effectively and achieve higher income through higher yields. Tchibo has
been a license holder since 2011.
W
Water footprint
A water footprint refers is the amount of water that an individual, company or country consumes directly or
indirectly. A water footprint can also be calculated for a given product, summarising the amount of water used
in its agricultural or industrial production.
Whistleblower
Generally, a whistleblower is someone who draws attention to malpractice in an organisation at the risk of negative
consequences for him- or herself. Tchibo has a whistleblowing hotline run by an independent organisation, as an
anonymous way to report suspected infringements and violations.
219
Tchibo Nachhaltigkeitsbericht 2012 | Imprint
► Imprint
Tchibo Sustainability Report 2012 - Imprint
Responsible:
Tchibo GmbH
Corporate Responsibility
Phone: +49 (0)40 63870
Überseering 18
22297 Hamburg
E-mail: corporateresponsi[email protected]
Commercial register: Amtsgericht Hamburg HRB 43618
VAT number: 811164447
Management board: Holger Bellmann, Yves Müller, Peter Rikowski, Patrick Raming, Dr Sven Groos
Chairman of the board: Dr Markus Conrad
Director Corporate Responsibility: Achim Lohrie
Category Leader CR Corporate Communication & Stakeholderreporting: Monika Focks
Note:
Wherever we have used masculine pronouns only, this has been done solely for reasons of readability.
All descriptions refer to both genders.
220

Tchibo Sustainability Report 2012 - tchibo

Transcription

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