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SUSTAINABILITY REPORT 2014

GRI-Index

In our sustain­ability reporting we have used, since 2008, the Global Reporting Initiative (GRI) guide­lines as an inter­na­tionally recog­nised basis for compa­ra­bility and trans­parency. In producing the Sustain­ability Report 2014 we used the GRI G4 standard for the first time. It will completely replace all previous GRI versions from 2016. Based on our 2014 analysis of the G4 require­ments, in our initial appli­cation of the new standards we focused on our material issues and partic­u­larly meaningful indicators, so our report corre­sponds to the G4 ‘Core Level’. Beyond this, we also take into account the GRI additional protocol for the food industry and the industry-specific supple­mentary indicators for the clothing and footwear indus­tries contained in the pilot version. Infor­mation that has been verified by an independent auditing company is indicated with a certi­fi­cation mark ().

GRI Content Index (G4)

Strategy and analysis
IndicatorLink and comments
G4-1 Statement from the most senior decision-maker of the organi­zation.
G4-2 Description of key impacts, risks, and oppor­tu­nities.

Organ­i­sa­tional profile
IndicatorLink and comments
G4-3 Name of the organi­zation.
G4-4 Primary brands, products, and/or services.

G4-5 Location of organi­zation's headquarters.

 

G4-6 Countries where the organ­i­sation operates
G4-7 Nature of ownership and legal form
G4-8 Markets served
G4-9 Scale of the reporting organ­i­sation
G4-10 Total workforce

 

At our distri­bution centres in Gallin and Neumarkt, temporary workers accounted for 44% and 64% of the staff, respec­tively, during the reporting period (as at 31 Dec 2014). The share of temporary workers results from the strong seasonal fluctu­a­tions in staff needs in supply chain management / logistics – especially during the Christmas season. The occupa­tional health and safety actions taken apply both for Tchibo employees and for temporary employees.

G4-11 Employees covered by collective bargaining agree­mentsCollective agree­ments apply for all employees of Tchibo GmbH in Germany, except the Managing Directors of Tchibo GmbH.
G4-12 Supply chain of the reporting organ­i­sation

 

Source countries for raw coffee by purchased quantities, in descending order: Brazil, Vietnam, Honduras, Colombia, India, China, Peru, Papua New Guinea, Guatemala, Ethiopia, Kenya, El Salvador & Tanzania.

G4-13 Signif­icant changes during the reporting period regarding size, structure, or ownership

 

G4-14 Expla­nation of whether and how the precau­tionary approach or principle is addressed by the organ­i­sation
G4-15 External agree­ments, principles and initia­tives
G4-16 Membership in associ­a­tions and/or advocacy organi­za­tions

Material aspects and bound­aries
IndicatorLinks and Comments
G4-17 Scope of consol­i­dation in annual financial statement
G4-18 Process for defining report content
G4-19 Material aspects
G4-20 Material aspects within the reporting organ­i­sation
G4-21 Material aspects outside the reporting organ­i­sation
G4-22 Re-state­ments of infor­mation provided in earlier reports
G4-23 Changes in the scope and boundary of the reportThere were no material year-on-year changes to the boundary of the report.

Engagement of stake­holders
IndicatorLinks and Comments
G4-24 List of stake­holder groups engaged
G4-25 Basis for identi­fying and selecting stake­holders with whom to engage
G4-26 Approaches to stake­holder engagement
G4-27 Key topics and concerns raised by stake­holders engaged, and response of the reporting organ­i­sation

Report param­eters
IndicatorLinks and Comments
G4-28 Reporting period
G4-29 Date of most recent previous report
G4-30 Reporting cycle
G4-31 Contact point for questions regarding this report or its contents
G4-32 “In accor­dance with” option, GRI Content Index, Reference to external audit report
G4-33 External Verifi­cation/Confir­mation of the report

Corporate Gover­nance
IndicatorLinks and Comments
G4-34 Management structure of the reporting organ­i­sation

Ethics and Integrity
IndicatorLinks and Comments
G4-56 Inter­nally developed state­ments of mission or values, codes of conduct, and principles

Economic perfor­mance indicators
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach
Aspect: Economic perfor­mance
G4-EC1 Direct economic value generated and distributed
Aspect: Indirect economic impacts
G4-EC7 Devel­opment and impact of invest­ments in infras­tructure

Ecological perfor­mance indicators
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach
Aspect: Materials
G4-EN2 Percentage of secondary materials in total materials used
  • Indicators, see Paper consumption at offices and Tchibo Shops

 

Currently there are no products in the product range with recycled content. In future an increased use of secondary materials is planned. The recycled content of packaging materials brought into circu­lation by us is not recorded at present. We are reviewing the cost and benefit of doing this in future.

Aspect: Energy
G4-EN3 Energy consumption within the reporting organ­i­sation
  • Indicators, see Energy consumption at the roasting plants , Energy consumption at sites and Fuel consumption of the Tchibo company fleet

 

The measurement of gas and fuel consumption, like the measurement of electricity and the reading of the district heating/ district cooling metre, is performed by a third-party service provider.

Aspect: biodi­versity
G4-EN13 Habitats protected or restored

As part of the Sustainable Agriculture Network (SAN) certi­fi­cation programme, measures to protect the environment are used on over 170,000 farms with more than 427,000 hectares of land. The SAN programme also supports the protection and restoration of natural habitats. Examples include the preser­vation of 31,000 hectares of land in the Madre de Dios region of Peru, the sustainable forest management of 877,251 hectares of land in various regions of Gabon and the restoration of eroded landscapes in Oaxaca, Mexico through climate-friendly farming practices.

 

For more infor­mation, see the websites of the standards organ­i­sa­tions Tchibo works with.

Aspect: Emissions
G4-EN16 Indirect energy-related THG emissions (Scope 2)

Indicators, see CO2 emissions from electricity consumption at sites see CO2 emissions from gas, district heating and district cooling consumption at sites

 

We rely on third-party service providers for compiling parts of this infor­mation, but some of the data is also collected based on our own systems. The base year for Scope 2 THG emissions is 2014, as the emissions were recal­cu­lated for the switch to GRI G4.

Aspect: Products and services
G4-EN28 Percentage of products sold and their packaging materials that are reclaimed, by category

 

In Germany, the law regulates the return and recycling of packaging. Tchibo fulfils this legal obligation, licenses all packaging it brings into circu­lation, and thus ensures that 100% of the packaging used can be recycled by consumers via their household waste or recycling centre free of charge with little effort.

.

Aspect: Compliance
G4-EN29 Monetary value of signif­icant fines and total number of non-monetary sanctions for non-compliance with environ­mental laws and  regula­tions In the reporting period, there were no infringe­ments of ecolog­i­cally relevant laws or other regula­tions.
Aspect: Transport
G4-EN30 Signif­icant environ­mental impacts of trans­porting products and other goods and materials used for the reporting organ­i­sation’s activ­ities, and trans­porting members of the workforce
Aspect: Screening of suppliers with regard to ecological aspects
G4-EN32 Percentage of new suppliers who were reviewed using ecological criteria
Aspect: Complaints procedure in connection with ecological aspects
G4-EN34  Number of complaints in connection with environ­mental impacts that were submitted, processed and solved via formal channels

Green­peace’s Detox campaign

 

 

PETA campaign against animal cruelty at Asian angora farms

 

Labour practices and decent work
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach
Aspect: Employment
G4-LA3 Return to work and retention rate after parental leave
  • Career & family
  • Indicators, see Employees on parental leave, Post-parental leave integration after three months and Post-parental leave integration after more than twelve months
Aspect: Labour/management relations
G4-LA4 Minimum notice periods regarding signif­icant opera­tional changes

 

 

Aspect: Occupa­tional health and safety
G4-LA6 Rates of injury, occupa­tional diseases, lost days and absen­teeism, and number of work-related fatal­ities by region and gender
  • Indicators, see Workplace accidents, absentee rate and work-related fatal­ities

 

Nearly 100 % of workplace accidents occur in connection with the movement of merchandise by our employees. The most common injuries are bruises and sprains, broken bones and cuts. There were no incidents of occupa­tional diseases.

Accidents involving temporary workers are documented by the temporary employment agencies, and reported in accor­dance with the legal require­ments. Regardless of the type of employment of the affected employees, Tchibo carefully reviews all work-related accidents in order to minimize any causes of hazards.

Aspect: Education and training
G4-LA10 Knowledge management and lifelong learning to support continued employ­a­bility of employees
Aspect: Diversity and equal oppor­tunity
G4-LA12 Compo­sition of gover­nance bodies and breakdown of employees according to indicators of diversity
Aspect: Equal wages for women and men
G4-LA13 Ratio of basic salary remuner­ation to male and female employees
Aspect: Screening of suppliers with regard to labour practices
G4-LA14 Percentage of new suppliers that have undergone screening with regard to their labour practices
Aspect: Complaints procedure with regard to labour practices
G4-LA16 Number of grievances related to labour practices that were filed, addressed and resolved through formal grievance mecha­nismssee G4-HR6

Human rights
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach
Aspect: Invest­ments
G4-HR1 Investment  agree­ments that take human rights into account
Aspect: Equal treatment
G4-HR3 Incidents of discrim­i­nation and actions taken 
Aspect: Freedom of assembly and collective negoti­a­tions
G4-HR4 Activ­ities where freedom of assembly and collective negoti­ation is at risk, and actions taken
Aspect: Child labour
G4-HR5 Activ­ities where a risk of child labour exists, and actions taken

With regard to the production of our consumer goods, Section 2 of the SCoC explicitly states that Tchibo will not tolerate child labour. All suppliers commit to comply with this requirement when they sign a contract. Tchibo uses various instru­ments to reduce the risk of child labour in the production of consumer goods: we run audits to check whether children are working at factories. In the WE Programme, the WE trainers support the factory management in building reliable management systems that prevent the hiring of children. In the rare cases where unacceptable child labour is discovered, the children are to be removed immedi­ately from production, asked to attend school where schooling is compulsory, and unemployed family members to be employed in their place, or similar compen­satory measures taken. This process is closely monitored by Tchibo. If the measures are not followed through with, the decision to terminate the business relationship is considered as a last resort. At the suppliers and producers of our consumer goods – the first and second tier of our supply chain - child labour is not such a widespread problem anymore; here, the most commonly reported form of child labour is the hiring of 15-year-olds in China, who have already completed their education. Under Chinese law, young people may only pursue full-time employment from the age of 16, which is why these cases are documented as child labour. During the reporting period, there were a few such incidents, where we initiated the process described above.

Coffee is grown primarily in devel­oping and emerging countries. Despite intensive efforts, child labour continues to be a problem there. A ‘mild form of child labour’ is tolerated by legis­lators and inter­na­tional devel­opment and standard organi­za­tions, depending on the children’s age and taking the state of devel­opment of a given country into consid­er­ation. Unfor­tu­nately, it does happen quite frequently that children are used for heavy or dangerous work during school hours. The elimi­nation of all forms of child labour will only have a chance if parents can send their children to school and age-appro­priate care services are available for their children during school breaks. That is why, since 2011, we have sponsored education projects and childcare options for children in various regions of Guatemala.

 

Aspect: Forced or compulsory labour
G4-HR6 Activ­ities where a risk of forced and compulsory labour exists, and actions taken

 

With regard to the production of our consumer goods, Section 1 of the SCoC explicitly states that Tchibo will not tolerate forced or compulsory labour. All suppliers commit to comply with this requirement when they sign a contract. If Tchibo becomes aware of incidents of forced or compulsory labour at existing supplier factories, we work with the management to initiate corrective measures and monitor their imple­men­tation with follow-up measures. If the corrective measures are not put into action, Tchibo will terminate the business relationship. During the reporting period, there were three incidents where forms of forced labour at producers were reported to Tchibo: in Thailand, Malaysia (withholding of employees’ passports) and China (compulsory overtime). We dealt with them using the above-described process.

 

In the green coffee supply chains from which Tchibo buys its coffee, there are no known cases of forced or compulsory labour.

 

Aspect: Rights of the indigenous population
G4-HR8 Cases involving infringement of rights of the indigenous population

We know of no such cases.

                                             

Aspect: Screening of suppliers with regard to human rights
G4-HR10 Percentage of new suppliers screened according to human rights criteria
Aspect: Grievance mecha­nisms for viola­tions of human rights
G4-HR12 Number of grievances related to human rights impacts that were filed, addressed and resolved through formal grievance mecha­nismsSee G4-HR6

Social
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach

 

Aspect: Anti-corruption measures
G4-SO5 Confirmed cases of corruption and actions taken in response

In the reporting period, no cases involving corruption were reported or disclosed.

                                                                                                                                              

Aspect: Anti-compet­itive conduct
G4-SO7 Total number of legal actions for anti-compet­itive behaviour, anti-trust, and monopoly practices and their outcomes

There were no ongoing legal actions during the reporting period.

 

Aspect: Compliance
G4-SO8 Monetary value of signif­icant fines and total number of non-monetary sanctions for non-compliance with laws and regula­tionsDuring the reporting period, no signif­icant fines were imposed.
Aspect: Screening of suppliers with regard to social impacts
G4-SO9 Percentage of new  suppliers that were screened using criteria for impacts on society
Aspect: Complaints procedure with regard to social impacts
G4-SO11 Number of grievances related to impacts on society that were filed, addressed and resolved through formal grievance mecha­nismsNo grievances were filed.

Product respon­si­bility
IndicatorLinks and Comments
G4-DMA Disclosure on Management Approach

 

Aspect: Customer health and safety
G4-PR1 Impacts of the products on human health and safety
Aspect: Labelling of products and services
G4-PR5 Measurement of customer satis­faction and results
Aspect: Marketing
G4-PR7 Non-compliance with regula­tions and voluntary codes concerning marketing and adver­tising commu­ni­ca­tionsDuring the reporting period, there were no incidents of this type at Tchibo.
Aspect: Customer privacy
G4-PR8 Substan­tiated complaints regarding breaches of customer privacyDuring the reporting period, ten customer privacy-related complaints were made against us. We inves­ti­gated the causes and corrected the systems and processes in question. However, we did not learn of any leakage, theft or other losses of data.
Aspect: Compliance
G4-PR9 Monetary value of signif­icant fines for non-compliance with laws and regula­tions concerning the provision and use of productsDuring the reporting period, no signif­icant fines were imposed.

Supple­mentary indicators for the food processing industry
IndicatorLinks and Comments
FP1 Percentage of purchasing volumes from suppliers in accor­dance with our Procurement Guideline
FP2 Percentage of the purchasing volumes that verifiably complies with credible, inter­na­tionally accredited standards for sustainable production, by norm
FP3 Percentage of working time lost due to indus­trial disputes, strikes and/or lock-outs, by countryDuring the reporting period, there were no strikes at Tchibo.
FP4 Type, scope and effec­tiveness of all programmes and methods (in-kind donations, volun­teering, knowledge transfer, mentor­ships and product devel­opment) to promote access to a healthier way of life, prevent chronic diseases, promote access to healthy, nutri­tious and affordable food, and increase the prosperity of people in need
FP5 Percentage of the production ­volume produced at sites certified by an independent insti­tution according to inter­na­tionally accredited standards for food safety management systems
FP6 Percentage of total revenues from consumer goods with reduced content of saturated fats, hydro­genated fats, sodium and added sugar, by product categoryIn more than half of the 500 Tchibo Shops with Coffee Bar in Germany, we use low-fat milk (1.5 percent) to prepare the coffee special­ities at our Coffee Bars upon the customer’s request.
FP7 Percentage of total revenues from consumer goods with extra fibre, vitamins, minerals, phyto­chem­icals and functional nutri­tional supple­mentsTchibo had negli­gible sales of diet products, nutri­tional supple­ments and the like in 2014.
FP8 Guide­lines and methods to provide consumers with infor­mation about ingre­dients and nutri­tional value beyond the statutory require­mentsWe comply with all statutory infor­mation obliga­tions with regard to ingre­dients. Beyond this, upon request our Shop staff will provide customers with infor­mation about the ingre­dients and nutri­tional details of the beverages and baked goods we serve.
FP9 Percentage and total number of livestock bred and/or processed, by species and breedTchibo does not produce and sell any meat and/or fish products. Accord­ingly, this indicator is not relevant for us.
FP10 Guide­lines and methods regarding physical changes and the use of anaes­thetics, by species and breedSee response to FP9
FP11 Percentage and total number of livestock bred and/or processed, by species and breed, by farming methodSee response to FP9
FP12 Guide­lines and methods regarding treatment with antibi­otics, anti-inflam­ma­tories and hormones and/or growth-enhancing measures, by species and breedApart from noting that the legal require­ments have been met, we can make no statement about the feed and/or veterinary medica­tions used at our suppliers’ production plants.
FP13 Total number of the incidents of non-compliance with laws and regula­tions; Compliance with voluntary codes regarding transport, transhipment and slaughter of live terres­trial and aquatic speciesSee response to FP9

Supple­mentary Indicators for the textiles, apparel and footwear industry
IndicatorLinks and Comments
AF1 Code of Conduct - Code of conduct content and coverage.          

 

The Tchibo Social and Environ­mental Code of Conduct (SCoC) is a binding part of the contract in any and every supplier relationship. Our business partners, their producers and subcon­tractors are to have this Code on display in all relevant work depart­ments, freely acces­sible to and for the infor­mation of all employees.

AF2 Audit Process - Parties and personnel engaged in code of conduct compliance function.
AF3 Audit Process - Compliance audit process.

 

Producers who aren’t integrated in our supplier training programme WE, are screened at least every three years by means of a social and environ­mental audit. In cases of zero-tolerance viola­tions, corrective action must be taken within four weeks. Other viola­tions must be elimi­nated within five months.

AF4 Grievance Proce­dures - Policy and proce­dures for receiving, inves­ti­gating, and responding to grievances and complaints.If a violation remains undetected, the workers in the factories also have the option of contacting Tchibo directly. They can send an anonymous email to blow the whistle on deficiencies or discrim­i­nation. There is the option of talking to the WE trainers or to confide in an NGO. We are aware that this requires a lot of courage and prior knowledge – e.g. about their rights or the commu­ni­cation paths – on the part of the employees to contact Tchibo directly on these channels. In 2014, Tchibo received two external complaints about producers in the consumer goods value chain (India, Turkey).
AF5 Capacity Building - Strategy and scope of efforts to strengthen capacity of management, workers and other staff to improve in social and environ­mental perfor­mance.
AF6 Business Integration - Policies for supplier selection, management, and termi­nation.
AF7 Code of Conduct - Number and location of workplaces covered by code of conduct.
AF8 Audit Process - Number of audits conducted and percentage of workplaces audited.
  • Indicators, see Social and environ­mental audits by type of audit
AF9 Non-compliance findings - Incidents of non-compliance with legal require­ments or collective bargaining agree­ments on wages.Audits represent a snapshot and often only reveal visible viola­tions. They therefore provide an incom­plete picture. The various types of viola­tions are often inter­con­nected in terms of their substance, so we do not specify infringe­ments by ‘type’. Instead, our WE approach pursues a holistic, integrative improvement of social standards at the factories.
AF10 Non-compliance findings - Incidents of non-compliance with overtime standards.See response to AF9.
AF11 Non-compliance findings - Incidents of non-compliance with standards on pregnancy and maternity rights.See response to AF9.
AF12 Non-compliance findings - Incidents of the use of child labour.See response to AF9.
AF13 Non-compliance findings - Incidents of non-compliance with standards on gender discrimi­nation.See response to AF9.
AF14 Non-compliance findings - Incidents of non-compliance with code of conduct.
  • Indicators, see Social and environ­mental audits by results
AF15 Non-compliance findings - Analysis of data from code compliance audits.
AF16 Remedi­ation - Remedi­ation practices to address non-compliance findings.
AF17 Business Integration - Actions to identify and mitigate business practices that affect code compliance.
AF19 Materials - Practices to source safer alter­native substances to those on the restricted substances list, including description of associated mgmt. systems.
AF20 Materials - List of environ­mentally preferable materials used in apparel and footwear products.
AF21 Energy - Amount of energy consumed and percentage of the energy that is from renewable sources.
  • Indicators, see “Electricity obtained from renewable sources”
AF22 Employment - Policy and practices regarding the use of employees with non-permanent and non-fulltime status.

 

The Tchibo Social and Environ­mental Code of Conduct (SCoC) makes no distinction between permanent, temporary and part-time employees.

AF23 Employment - Policy regarding the use of home working.

 

The Tchibo SCoC makes no distinction between homeworkers and other workers. Homeworkers can be integrated into the WE Programme as needed, as is currently the case at a supplier in Vietnam.

AF24 Employment - Policy on the use and selection of labour brokers, including adherence to relevant ILO Conven­tions.

 

AF25 Wages and hours - Policy and practices on wage deduc­tions that are not mandated by law.

 

Wage deduc­tions are prohibited as per our SCoC. If and when we encounter them during audits or as part of our WE Programme, we demand their remedi­ation.

AF26 Wages and hours - Policy on working hours, including definition of overtime, and actions to prevent excessive and forced overtime.

 

We mainly address the issue of excessive overtime with our WE Programme, as audits alone do not bring improve­ments. One WE workshop deals specif­i­cally with the points of working hours, wages, produc­tivity and overtime. In our SCoC the subject of working hours is regulated in Section 7.

AF27 Diversity and Equal Oppor­tunity - Policy and actions to protect the pregnancy and maternity rights of women workers.

 

Section 4 in our Social and Environ­mental Code of Conduct (SCoC) draws attention to the particular vulner­a­bility of pregnant employees.

AF28 Employment - Percentage of foreign migrant workers as a portion of total workforce, broken down by region.This infor­mation is not system­at­i­cally collected to date. However, given the increasing refugee and migrant movements in several parts of the world, we are consid­ering collecting relevant data for our supply chain in future.
AF29 Labour/Management Relations - Percentage of workplaces where there is one or more independent trade union(s).

 

This infor­mation is not system­at­i­cally collected to date; a survey of the producers integrated in the WE Programme is planned for 2016.

AF30 Labour/Management Relations - Percentage of workplaces where, in the absence of a trade union, there are worker-management committees, broken down by country.The estab­lishment of management-labour committees is an integral part of the WE Programme; a quanti­tative assessment is planned for 2016/2017.
AF31 Occupa­tional Health and Safety - Initia­tives and programmes to respond to, reduce, and prevent the occur­rence of muscu­loskeletal disorders.Compared to other occupa­tional health and safety issues such as silicosis or fire protection, risk analysis showed that muscu­loskeletal disorders are a relatively low priority issue in the supply chain. We therefore have no programmes to address this issue.
AF32 Diversity and Equal Oppor­tunity - Actions to address gender discrim­i­nation and to provide oppor­tu­nities for the advan­cement of women workers.

We mainly address the issue of discrim­i­nation in our WE Programme and have one workshop that is dedicated exclu­sively to the topic. In our Social and Environ­mental Code of Conduct (SCoC), the issue is regulated in Section 3.

AF33 Community Investment - Prior­ities in community investment strategy.
AF34 Community Investment - Amount of investment in worker commu­nities broken down by location.Our community investment in the Consumer Goods value chain is concen­trated on cotton production. Tchibo has made educa­tional infras­tructure invest­ments by supporting educa­tional projects in the African cotton-growing regions Benin and Zambia with a total of €400,000.

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