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SUSTAINABILITY REPORT 2014

UN Global Compact Communication on Progress (CoP) 2014

Tchibo joined the United Nations Global Compact (UNGC) on 18 November 2009, and thus expressly commits to the ten UNGC principles concerning human rights, labour standards, environ­mental protection and anti-corruption, and their imple­men­tation in its business processes. We advocate a credible and sustainable corporate policy. Our CEO, Dr Markus Conrad, confirms this stance in his foreword to Tchibo GmbH’s Sustain­ability Report 2014.

The United Nations Global Compact is an inter­na­tional strategic initiative that has united business, politics, workers' organi­za­tions and civil society since its estab­lishment in 2000. If companies commit to aligning their business activ­ities and strategies to ten univer­sally accepted principles in the areas of human rights, labour standards, environ­mental protection and anti-corruption, the public sector can help to ensure that the devel­opment of markets and trade relation­ships, of technology and finance benefits all economic regions and societies in the course of global­ization.

The ten principles are based on:

  • The Universal Decla­ration of Human Rights
  • The Inter­na­tional Labour Organ­i­sation’s Decla­ration on Funda­mental Principles and Rights at Work
  • The Rio Decla­ration on Environment and Devel­opment
  • The United Nations Convention on Corruption.

2012 marks the first time that Tchibo is reporting to meet the UNGC Advanced Level, meaning we now go beyond the minimum require­ments and provide infor­mation on how we comply with the best practices outlined in the 21 ‘GC Advanced’ criteria. The Commu­ni­cation on Progress is based on the Tchibo Sustain­ability Report 2014. The following table shows our policies and systems, the measures we have taken, and the progress made.

Strategy, gover­nance and engagement

Criterion 1
Mainstreaming into corporate functions and business units

 

Criterion 2
Value chain imple­men­tation

Policies, systems and measures

  • Key strategic objective: ‘Tchibo on its way towards a 100% sustainable business’
  • Integrated system of goals comprises key objec­tives and sub-goals for all fields of action
  • Corporate Respon­si­bility department: Coordi­nation with the depart­ments, review of targets/goals and annual reporting to the CEO and the full board
  • Tchibo Social and Environ­mental Code of Conduct (SCoC) applies to all consumer goods suppliers and partners
  • Integrated risk management addresses company risks
  • Sustainable devel­opment of the coffee sector through cooper­ation with all inter­na­tionally accredited standards organ­i­sa­tions, partners and via our own programmes (Tchibo Joint Forces!®)
  • To guard against supply chain risks, social and environ­mental require­ments are integrated in the purchasing processes
  • Quali­fi­cation of consumer goods suppliers as part of our WE programme (Worldwide Enhancement of Social Quality)
  • Compliance with the SCoC in the Consumer Goods value chain is reviewed as part of our supplier monitoring

Links

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

Policies, systems and measures

  • Code of Conduct (CoC) for Tchibo employees and SCoC for consumer goods suppliers and partners are based on the principles of the Inter­na­tional Labour Organ­i­sation (ILO)

  • Regular Code of Conduct training for all Tchibo employees

  • All suppliers receive the Code of Conduct as part of the contract

  • Employees can report misconduct and breaches via the whistle­blowing hotline, works council, legal department, Group audit, other audits and projects and programmes carried out by Tchibo and its partners

  • Estab­lishment and expansion of socially compatible coffee culti­vation through own programmes, continued and inten­sified collab­o­ration with all inter­na­tionally accredited standards organ­i­sa­tions, and involvement in initia­tives at regional and national level

  • As part of our WE programme we support strategic producers in complying with funda­mental human rights

  • The obser­vance of funda­mental human rights by our producers is reviewed as part of our supplier monitoring

 

Links

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
Effective management systems to integrate the labour principles

 

Criterion 8
Monitoring and evalu­ation mecha­nisms for labour principles integration

Policies and systems and measures

  • Our Code of Conduct (CoC), based on the principles of the Inter­na­tional Labour Organ­i­sation (ILO), defines the values and mandatory behaviour for the company as a whole as well as for each individual employee and formu­lates our under­standing of fairness, ethical business, culture of diversity and equal oppor­tu­nities

  • Regular Code of Conduct training for all Tchibo employees

  • 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

  • No cases of discrim­i­nation during the reporting period

  • We give our employees the oppor­tunity to actively shape Tchibo’s devel­opment via the statutory codeter­mi­nation bodies (works council and the Super­visory Board)

  • The social require­ments are based on the core labour standards of the Inter­na­tional Labour Organ­i­sation (ILO) and the UN Universal Decla­ration of Human Rights, and refer to the "Base Code" of the Ethical Trading Initiative (ETI) and the SA8000 standard. The SCoC is mandatory for all our suppliers and business partners

  • As part of our WE programme, we support strategic producers in achieving the obser­vance of human rights and the lasting improvement of social and environ­mental condi­tions at the production sites

  • Compliance with social and environ­mental standards will be reviewed in the course of our supplier-monitoring

  • Together with other well-known brands, factories and retailers, and the inter­na­tional trade union confed­er­ation Indus­triALL Global Union, we are involved in the ACT (Action, Collab­o­ration, Trans­for­mation) Initiative for industry-wide wage negoti­a­tions. The aim of this initiative is to introduce a process whereby industry-wide collective bargaining between unions and employer repre­sen­ta­tives are linked with high production standards and respon­sible buying practices

Links

 

Environ­mental protection
Principle 7: Support a precau­tionary approach to environ­mental challenges
Principle 8: Undertake initia­tives to promote greater environ­mental respon­si­bility
Principle 9: Encourage the devel­opment and diffusion of environ­men­tally friendly technologies

Criterion 9
Robust commit­ments, strategies or policies in the area of environ­mental stewardship

 

Criterion 10
Effective management systems to integrate the environ­mental principles

 

Criterion 11
Effective monitoring and evalu­ation mecha­nisms for environ­mental stewardship

Policies and systems and measures

  • Environ­mental experts, coordi­nated by the Direc­torate Corporate Respon­si­bility, manage imple­men­tation in the depart­ments

  • Environ­mental guide­lines were added in 2010 to our CoC

  • We contin­u­ously reduce our CO₂ emissions caused by trans­portation with the “LOTOS” (“Logistics Towards Sustain­ability”) programme

  • Supply of energy for all German Tchibo sites with ok-power certified electricity from renewable sources only

  • At our roasting plants we have intro­duced an energy management system in accor­dance with ISO 50001

  • As part of our company-wide fleet strategy, we set annually reduced CO₂ emission limits for newly purchased vehicles

  • Our Packaging Strategy, developed in early 2015, sums up measures to reduce packaging-related paper and cardboard consumption

  • Grievances in connection with environ­mental protection can be reported via the whistle­blowing hotline, works council, legal department, group audit, other audits and projects and programmes carried out by Tchibo and its partners

  • In cooper­ation with initia­tives such as Coffee & Climate we help farmers to adapt to the reper­cus­sions of climate change

  • The Tchibo Social and Environ­mental Code of Conduct (SCoC) defines mandatory environ­mental require­ments that apply to the production of our entire consumer goods assortment

  • Since 2014 targeted audits of factories are conducted to ensure compliance with standards

  • As part of our WE programme, we support producers in reducing CO2 emissions

  • In 2014 we signed the ambitious Detox Commitment with the aim to exclude hazardous chemicals from the textile supply chain by 2020

Links

Anti-corruption
Principle 10: Work against corruption in all its forms, including extortion and bribery. 

Criterion 12
Robust commit­ments, strategies or policies in the area of anti-corruption

 

Criterion 13
Effective management systems to integrate the anti-corruption principle

 

Criterion 14
Effective monitoring and evalu­ation systems for the integration of anti-corruption

Policies and systems and measures

  • CoC includes a clear prohi­bition of corruption and granting or accepting advan­tages

  • The Tchibo Compliance Programme is comprised of various policies that regulate cross-sector and cross-company processes via proce­dural and organ­i­sa­tional instruc­tions

  • Our managers are regularly trained in the appli­cation of our Code of Conduct and are obliged to explain the Code of Conduct to their employees

  • Anti-corruption training is contin­u­ously conducted for employees in relevant depart­ments, such as Procurement and Sales

  • As part of risk assessment by maxingvest ag’s group auditing department, all business units are contin­ually reviewed for risk of corruption

  • 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

  • Any reports are forwarded to the Ombudsmen Council under strict confi­den­tiality

  • In 2014 no incidents were reported or uncovered in connection with corruption

Links

Broader UN goals and issues

Criterion 15
Core business contri­bu­tions to UN goals and issues

 

Criterion 16
Strategic social invest­ments and philan­thropy

 

Criterion 17
Advocacy and public policy engagement

 

Criterion 18
Partner­ships and collective action

Policies and systems and measures

  • Tchibo joined the UN Global Compact on November 18th 2009

  • To promote sustainable, yield-increasing farming practices we work with coffee farmers and standards organ­i­sa­tions

  • Tchibo promotes educa­tional projects to help ensure better living condi­tions for coffee farmers and their families

  • We have increased the share of validated and certified green coffee processed by us to around 35% in 2014

  • We approach cross-sector collab­o­ration with relevant stake­holders to address and solve struc­tural challenges

  • Gradual transition to respon­sibly-sourced resources and materials for our consumer goods

  • We work with the Aid by Trade Foundation to promote sustainable cotton farming in sub-Saharan Africa and we support the children of African cotton farmers with educa­tional and career-oriented projects

Links

Corporate sustain­ability gover­nance and leadership

Criterion 19
CEO commitment and leadership

 

Criterion 20
Board adoption and super­vision

 

Criterion 21
Stake­holder engagement

Policies and systems and measures

  • Confir­mation of the commitment to sustainable business conduct and to the UN Global Compact by Dr Markus Conrad in the foreword to the Sustain­ability Report 2014

  • Key strategic objective: ‘Tchibo on its way towards a 100% sustainable business’

  • Integrated system of goals comprises key objec­tives and sub-goals for all fields of action

  • The management of Tchibo GmbH regularly and promptly informs the Super­visory Board of all matters relevant to the devel­opment of the company, its value, and its risk situation

  • The company’s strategic direction is coordi­nated with the Super­visory Board

  • The Direc­torate of Corporate Respon­si­bility coordi­nates company-wide and department-specific stake­holder management

  • To cope with struc­tural challenges in our value chains, we cooperate with partners in the public and private sectors, in science and academe, and in civil society

  • 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

Links

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