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SUSTAINABILITY REPORT 2014

Verifiable results serve as both validation and motivation

Sustain­ability has been an integral part of Tchibo’s business strategy since 2006. On our way to a 100% sustainable business, we are committed among other things to exacting, inter­na­tionally recog­nized environ­mental and social standards in our coffee and consumer goods supply chains. Beyond this, it is a priority for Tchibo to step up its protection of the climate and conser­vation of resources: in our value chains, at our sites, and during transport. By doing so, we simul­ta­ne­ously safeguard the future viability of our family business.

Coffee value chain

Our Insights

To improve the ecological and social impact in the growing regions, sustainable product devel­opment based on standards should be comple­mented by measures in the economic and social environ­ments of green coffee producers, who are generally smallhold farmers. Our Tchibo Joint Forces!® quali­fi­cation program was developed for this purpose.

Consumer Goods value chain

Our Insights

Processing sustainably grown cotton is (still) a differ­en­ti­ating quality criterion in market compe­tition as well. In particular, organic cotton is self-explanatory and is partic­u­larly well received by our customers. This explains the rapid devel­opment of our product ranges made from or with cotton, in particular organic cotton.

Our Insights

A continuous increase in the use of the FSC® standard for the wood from which our wood and paper products are manufac­tured remains an essential goal in our commitment to respon­sible forest management. Here we will also and partic­u­larly advocate the increased FSC® certi­fi­cation of German forests and woodlands.

Our Insights

Sustain­ability in complex global supply chains starts in one’s own company. Exacting standards can only be imple­mented across all major stages of a value chain if the latter is trans­parent. The fewer the suppliers and longer-lasting the business relation­ships, the easier it is to create trans­parency, the greater the trust, and the faster the standards can be success­fully imple­mented.

Our Insights

Audits provide a snapshot of the degree to which social and environ­mental standards have been imple­mented at a given producer, but are not suitable for initi­ating and maintaining a process of continuous improvement. The best way to achieve this are quali­fi­cation programs that focus on partnership with the producers and dialog between the producers’ staff and management and the trading companies’ buyers.

Environ­mental protection in our opera­tions

Our Insights

All successes aside, the continuous reduction of average CO2e emissions in our transport processes remains a major challenge. The further we progress with this, the more demanding it becomes. This  makes it all the more necessary to come up with innovative, pioneering solutions for the trans­portation of goods to our sales outlets and customers.

Our Insights

We have been able to contin­u­ously reduce the CO2 emissions of our fleet by resolutely imple­menting our ambitious fleet policy. In the years ahead, progress will depend on how strongly the manufac­turers advocate the devel­opment of environ­men­tally friendly models that are also suitable for the day-to-day business.

Our Insights

Sourcing electricity from certified renewable energy sources (ok power) is one of the essential pillars of our efforts to curb climate change. We remain committed to this in the future.

Other results in our key action areas

  • Tchibo is currently the third-largest vendor of organic cotton worldwide. This is the conclusion reached by the non-profit organi­zation Textile Exchange in its ‘Organic Cotton Market Report’ published in 2015. In 2014, our suppliers processed nearly 6,000 tons of organic cotton for our textile products – equiv­alent to around 75% of our textiles.
  • 60% of our viscose products are by Lenzing (Tencel / Modal). The pulps used for producing the fibres are obtained in accor­dance with environ­men­tally friendly standards.
  • 98% of our leather products are tanned without chrome.
  • Based on our animal welfare policy, we haven’t offered any real fur (not even as trim) for more than nine years, and no products made from or with angora since 2014. We exclude goose down and feathers obtained through live plucking from our ranges.
  • In 2014 we incor­po­rated Green­peace’s stringent DETOX Standard in our product devel­opment, so that we can guarantee the exclusion of hazardous chemicals in our global production and refining processes within just five years.
  • We use only environ­men­tally friendly ecorepel® to render our outdoor products water and dirt repellent.
  • Around 75% of our purchasing volume for textiles was manufac­tured by producers from risk countries who partic­ipate in the WE program.
  • The CO2 emissions of the Tchibo fleet are decreasing contin­u­ously, and are currently at 119 g CO2 /km. In 2014, we were recog­nized for the third consec­utive year with the German Environ­mental Aid Associ­ation’s (DUH) ‘Green Card for Credible Environ­mental Awareness’
  • We regularly and system­at­i­cally involve our customers in our efforts through special promo­tions. As part of our “Genießen und Gutes tun [Enjoy and do good]” promotion, sales of our Privat Kaffee coffees have generated more than 2.4 million euros for our education project in Guatemala since 2013.
  • In 2010, Tchibo was certified by Hertie Foundation’s berufund­familie gGmbH as a ‘family-friendly company’. In 2013, we were recer­tified through 2016.

Status quo 2014 and Goals for 2015

Coffee value chain
Sub-goals 2014Status quoRemarks
Project level
Carry out further Tchibo Joint Forces!® projects in East Africa, Colombia and South America (Rainforest Alliance and possibly Fairtrade certi­fi­cation)fully achieved

Tchibo Joint Forces!® was expanded to include:

  • a project in Tanzania (Rainforest Alliance)
  • a project in Colombia (Rainforest Alliance)
  • two projects in Honduras (4C)
  • a project in Papua New Guinea (4C)
Initiate a project for the European coffee sector to partic­ipate in the EU’s ‘Product Environ­mental Footprint’ pilot projectfully achievedThe project has been initiated. Goal: review the possi­bility of devel­oping a ‘product category rule’ and draw up an easily under­standable consumer commu­ni­cation.
After final­ising the devel­opment of a product category rule for the carbon footprint, the basics for calcu­lating a water footprint for green coffee are to be developed in 2015.not achievedThe project was not realised. Instead, as part of our partic­i­pation in the EU’s Product Environment Footprint pilot project, we are working on devel­oping a Product Environ­mental Footprint (PEF) for green coffee.
Product level
Strengthen cooper­ation with Fairtrade and increase the percentage of Fairtrade-certified green coffee in the Cafissimo Rangepartly achievedImple­men­tation was postponed to 2015
Increase the share of green coffee covered by our sustain­ability concept to 35%fully achievedWe increased the share of validated and certified green coffee we processed to 34.3%. Due to this minimal deviation, we regard our target of 35% as having been achieved.
Education projects in the source countries
Continue the day-care project in Huehue­te­nango with Coffee Care; expand the teen project to all six sitesfully achievedThe project was continued and expanded.
Expand the promotion project in Guatemala by another three day-care facil­ities in the coffee region of Huehue­te­nangopartly achievedIn 2014, prepa­ra­tions were made for constructing another three day-care facil­ities in Huehue­te­nango. Completion is scheduled for 2015.
Sub-goals 2015
Project level
Continue all existing Tchibo Joint Forces! ® projects
Tchibo Joint Forces!® project in Huehue­te­nango, Guatemala (Rainforest Alliance)
Tchibo Joint Forces!® project in Minas Gerais, Brazil (Fairtrade)
Continue devel­oping Tchibo Joint Forces®: Start integrating optimised tools for impact assessment and trans­parency in the supply chain
Product level
Increase the share of the green coffee volumes covered by our sustain­ability concept from roughly 35% in 2014 to 40%
Education projects in the source countries
Continue the project and the Kita-teen project with our partner Coffee Care in the region of Huehue­te­nango (Guatemala) at six locations
Continue the Guatemala-Children project with our project partners Save the Children in probably nine day-care (CAIs) in the coffee regions Huehue­te­nango and Chiquimula
Construction of a new education project in Tanzania with our project partners with two educa­tional prior­ities: 1. Creation of training oppor­tu­nities and 2. Improving the quality of primary school in the project region at Mbozi

Consumer Goods value chain
Sub-goals 2014Status quoRemarks
Integrated/holistic supplier management
Continue rolling out the WE programme across the value chain: 320 strategic suppliers / production sites are either under­going or have completed WE quali­fi­cation.achieved320 strategic suppliers / production sites are either under­going or have completed WE quali­fi­cation.
Carry out pilot project on wages in the supply chain.achievedImple­mented as part of the WE quali­fi­cation programme at one producer each in Bangladesh and Ethiopia
Sustainable resources
75% of the cotton products purchased for 2015 are sustainable (Organic, Organic Blend, CmiA, Better Cotton Initiative, etc.).achieved

The target was exceeded: 85 % (HVK 2015)

 

50% of the products containing man-made cellulose fibres (e.g. viscose) sourced for the 2015 selling year are obtained by environ­men­tally friendly standards in cooper­ation with Lenzing AG.achieved

The target was exceeded: 61 % (HVK 2015)

 

60% of the wood products purchased for 2015 are FSC® certified (except for products manufac­tured in Germany).partly achieved

The target was not fully achieved: 40% (HVK 2015)

Many of our products have regional / European origins. FSC® certi­fi­cation is not widespread in these regions. We have verified the acceptable origin of these products through our Forest Tracing System (FTS).

50% of the leather products purchased for 2015 are tanned without chrome.achieved

The target was exceeded: 98,9 % (HVK 2015)

 

Production ecology
Integrate environ­mental aspects in all audit tools and in the WE quali­fi­cation programme, as well as selected other factories in CPI2achievedMinimum environ­mental standards were integrated into the audit tools, and their verifi­cation made an integral part of the monitoring process. The CPI2 pilot project was carried out at selected WE suppliers in China and Bangladesh in 2014. Submitted ‘Detox Commitment’ to eliminate hazardous chemicals from the textile supply chain
Education projects in the source countries
School project in Benin: construct two additional schools. Electrify schools with solar lamps.achievedThe project was success­fully completed in 2014: A total of five schools were built. A recent needs assessment had revealed that the planned construction of two more schools is no longer relevant. In addition, a total of 18 schools were equipped with solar energy.
School project in Zambia: Complete four more new school buildings and two renova­tions. Install solar systems at all schools. Continue renewal of old wells, build new ones.achievedSince the project was initiated, Tchibo and its project partners have built a total of five school buildings. Each school complex is equipped with its own well and solar instal­lation. The completion of the project is about one year behind schedule.
Sub-goals 2015
Fair wages and trade union rights

Continue the ACT (Action, Collab­o­ration, Trans­for­mation) initiative efforts, together with the Indus­triALL Global Union (inter­na­tional feder­ation of trade unions), for industry-wide wage bargaining between equal social partners.

Develop a concept to further strengthen the right to organise, as part of the WE program.

WE programme coverage/ risk markets
80 % of products / purchasing volume in risk markets are to be covered by WE producers in future
Sustainable resources and products
90% of cotton products purchased for sale in 2016 are sustainable (Organic, Organic Blend, CmiA, Better Cotton Initiative, GOTS).
70% of products with man-made cellulose fibres (e.g. viscose) sourced for sale in 2016 are to be obtained in accor­dance with eco-friendly standards in cooper­ation with Lenzing AG.
60% of wood products purchased for sale in 2016 are certified according to the criteria of the FSC® (Forest Stewardship Council).
100% of leather products are tanned without chrome.
First-time sales of products made from / with recycled materials in 2016
Education projects in the source countries
Zambia: Complete the project

Environ­mental protection in our opera­tions
Sub-goals 2014Status quoRemarks
Climate protection
Further develop our LOTOS (Logistics towards Sustain­ability) programme incl. defining a new target and a Roadmap 2020fully achievedAmbitious roadmap has been adopted through 2020, stipu­lating a 30% reduction in relative emissions in g CO2/ton-kilometre by 30% compared with 2006.
Develop and relaunch our offer of climate-friendly energyfully achievedOffer was further developed and relaunch performed
Further expand energy efficiency measures at the sites in Germanyfully achievedSavings of 500,000 kWh of electricity / year through increased efficiencies at logistics centre in Bremen
Energy consumption at our coffee roasting plants is signif­i­cantly influ­enced by the workload, outside temper­a­tures, product ranges, catalyst temper­a­tures and any signif­icant construction projects. As part of our DIN 50001-certified energy management system, we will attempt to evaluate these factors during 2014.fully achievedIn 2014, the specific energy consumption (per ton of roasted coffee) was reduced by 2.3% compared to 2013 (Hamburg and Bremen roasting plants), thanks to technical and organi­za­tional measures taken as part of the energy management system
Resources
Complete the changeover to recycled and FSC® qualities for in-house consumption and adver­tising materials at all inter­na­tional business units where this is relevantfully achievedPaper consumption in admin­is­tration and Tchibo Shops has been fully switched to recycled and/or FSC® paper. The switch to recycled and / or FSC grades for promo­tional materials has been completed at all relevant inter­na­tional business units.
Further develop our Non Food packaging strategy incl. a roadmap for 2014 and the following yearsfully achievedThe Roadmap was developed and in 2014 and adopted in 2015.
Sub-goals 2015
Climate protection: Roadmap 2020
Further 1.5% reduction in specific CO2 emissions per ton of roasted coffee at the roasting plants by reducing energy consumption and optimising processes
Reduce energy consumption at the warehouses in Gallin and Neumarkt: reduce relative warehouse emissions by 15%
Cut savings as part of the logistics strategy (Clean Cargo Working Group / Clean Cargo Scorecard): reduce relative transport-related CO2 emissions by another 10% (total reduction 2006-2020: 30%)
Reduce average emissions of our vehicles in accor­dance with the EU regulation for manufac­turers’ fleets, to below 95g CO2/km by 2020
Resources
Conserve resources in cardboard and paper by optimising sales packaging (the best possible share of recycled content) and increase share of FSC®-certified sales packaging to 30%
Increase resource efficiency by taking further steps on the path to closed-loop / circular economy
Switch Cafissimo capsules to recyclable foil and interior coating (in accor­dance with the dual systems) in 2016
Biodi­versity
Revise and adopt the Biodi­versity Strategy for 2020

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