SUSTAINABILITY REPORT
2016

UN Global Compact
Communication on Progress (CoP) 2016

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 Thomas Linemayr confirms this stance in his foreword to Tchibo GmbH’s Sustain­ability Report 2016.

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 Tchibo Sustain­ability Update 2015, and the Tchibo Sustain­ability Report 2016. The following table shows our policies and systems, as well as the measures 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, measures, and advances

  • Respon­sible corporate gover­nance has been integrated in the business strategy since 2006
  • 2011 formu­lation of the 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
  • Integrated risk management addresses company risks
  • Sustainably advance the devel­opment of the coffee sector through cooper­ation with all inter­na­tionally accredited standards organ­i­sa­tions, partners and via our own programmes (Tchibo Joint Forces!®). In 2016, we began measuring the effec­tiveness of Tchibo Joint Forces!® to determine what measures best help the farmers
  • Systemic and struc­tural challenges are effec­tively addressed in conjunction with other protag­o­nists. Tchibo has been a member of the Global Coffee Platform since 2015 and sits on its steering committee. Signing of a memorandum of under­standing with the umbrella trade union Indus­triALL to improve salary setting processes in Cambodia and Bangladesh.
  • 2016 partic­i­pated in founding the Global Coffee Platform (GCP)
  • Tchibo Social and Environ­mental Code of Conduct (SCoC) applies to all consumer goods suppliers and partners
  • To guard against supply chain risks, social and environ­mental require­ments are integrated in the purchasing processes
  • Quali­fi­cation of consumer goods producers 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: No 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 the 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
  • The framework for socially respon­sible conduct in the Consumer Goods supply chain is formed by the United Nations Guiding Principles on Business and human rights, as well as the principles of sustainable devel­opment based on the 1992 Rio Decla­ration
  • 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
  • Joint engagement with employers, unions, policy­makers and other trading companies in initia­tives that advocate for an industry-wide improvement in the situation of factory workers

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: No 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, 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 the 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)
  • In Guatemala, creation of alter­na­tives to prevent imper­mis­sible child labour by providing education and care to children of migrant workers and harvest workers
  • 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. In 2016, we revised and amended the SCoC, taking into consid­er­ation our increased environ­mental require­ments and various voluntary commit­ments.
  • 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
  • In 2016, Tchibo became the first German trading company to sign an inter­na­tional framework agreement with the global umbrella trade union Indus­triALL Global Union. In its ACT initiative, we also work in concert with the umbrella union and other inter­na­tional trading companies to ensure living wages and industry-wide collective bargaining between equal social partners in the global apparel industry.
  • Tchibo has been a member of the Alliance for Sustainable Textiles since 2014
  • Syrian refugees in the Turkish textile industry: SCoC applies for suppliers in Turkey as well – child labour, discrim­i­nation and sub-living wages are prohibited; contracts must be trans­lated into Arabic.

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, 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 operate an energy management system in accor­dance with ISO 50001. In 2016, the energy management system was success­fully recer­tified in accor­dance with ISO 50001.
  • As part of our company-wide fleet strategy, we set annually reduced CO₂ emission limits for newly purchased vehicles. Tchibo received its fifth consec­utive "Green Card for credible environ­mental awareness" from the Deutsche Umwelthilfe (DUH), a German environ­mental organ­i­sation.
  • 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 the 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
  • Tchibo has been a member of the cross-industry initiative Biodi­ver­sitity in Good Company since 2012
  • In 2014 we signed the ambitious Detox Commitment with the aim to exclude hazardous chemicals from the textile supply chain by 2020
  • In Germany, no more free plastic bags have been given out since January 2016. To further reduce plastic waste, we give out disposable cups only on express request, and partic­ipate in initia­tives for the systematic estab­lishment of reusable cups.

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, 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 the 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, 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 works with the world’s largest children’s rights organ­i­sation Save the Children on educa­tional projects to help ensure better living condi­tions for coffee farmers and their families
  • The share of validated and certified green coffee was 36.3% in 2016
  • 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. Maintained the proportion of textiles made from and with organic cotton at around 80%. Offer of GOTS-certified textiles since 2015.
  • Estab­lished separate sponsorship for sustainable cotton projects: Appachi Eco-Logic project in South India
  • 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
  • Commitment to refugee aid under the umbrella of the “Wir zusammen – Integra­tions-Initiative” (We Together - Integration Initiative) platform through cooper­a­tions and corporate volun­teering, employment, and needs-based in-kind donations.

Links

Corporate sustain­ability gover­nance and leadership

Criterion 19

CEO commitment and leadership

 

Criterion 20

Board adoption and super­vision

 

Criterion 21

Stake­holder engagement

Policies, systems and measures

  • Confir­mation of the commitment to sustainable business conduct and to the UN Global Compact by Tchibo GmbH CEO Thomas Linemayr in the foreword to the Sustain­ability Report 2016
  • 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 the projects and programmes carried out by Tchibo and its partners
  • Alignment of our business activity to economic, ecological and social criteria by involving our stake­holders. In 2016, we again conducted extensive, targeted stake­holder dialogues and stake­holder surveys, which will feed into the further devel­opment of our focus topics.

Links