Clear guidance: Our sustainability management system
We follow three principles in the sustainable design of our products and processes at our company and in our supply chains:
Our Code of Conduct forms the ethical ‘basis for doing business’ for all employees, no matter their hierarchy. In it, among other things we commit to full compliance with the law and transparency, as well as to continuously improve the ecological, social and societal aspects of our business processes.
Building on this, in the Tchibo DNA we make the following pledge: we take responsibility for the ecological and social repercussions of our actions.
In putting the guidelines into practice in our operations, we concentrate on the products and processes that have the biggest impact on people and the environment, and where our company is most able to exert influence.
For employees: Code of Conduct (CoC)
The Tchibo Code of Conduct (CoC) contains the guiding principles that govern our business activity. It is binding for all employees of Tchibo GmbH and the international business units, and also governs our dealings with business partners and customers. The CoC is based on the following international guidelines and standards:
- the UN Guiding Principles on Business and Human Rights
- the United Nations (UN) Declaration of Human Rights
- the conventions of the International Labour Organisation (ILO)
- the United Nations (UN) Convention on the Rights of the Child
- the guidelines of the Organisation for Economic Cooperation and Development (OECD) for multinational enterprises
The CoC prohibits all employees from engaging in any forms of corruption, and granting or accepting of an undue advantage. If an employee violates any of the principles, they face sanctions under labour law. In 2017, we updated the Code of Conduct to help employees better understand its underlying guidelines, and make them easier to apply.
For suppliers and business partners: Social and Environmental Code of Conduct (SCoC)
The Tchibo Social and Environmental Code of Conduct (SCoC), which we developed in cooperation with stakeholders, forms the basis of work with Non Food business partners. It mandates lawful and ethical conduct for our suppliers, business partners and service providers. Among other things, it defines minimum requirements for working conditions and environmental standards in the production of our consumer goods, and is the basis of all purchasing contracts. In 2016, we revised and supplemented the SCoC to reflect our increased environmental requirements as well as various voluntary commitments. These include our Detox Commitment and our participation in the Partnership for Sustainable Textiles.
In the preamble of our SCoC, we have expanded the principles we orient ourselves by: besides the Rio Declaration of 1992 and the United Nations Guiding Principles on Business and Human Rights, we explicitly recognise the ILO Declaration of Principles on Multinational Enterprises and Social Policy, the principles of the United Nations Global Compact, and the OECD Guidelines for Multinational Enterprises. We share the vision of a sustainable future as set out in the United Nations 2030 Agenda for Sustainable Development, and are working to implement social and environmental standards in our supply chains.
Since 2006, the SCoC has codified the ban on child labour as defined by the ILO conventions. In 2016, we intensified the requirements our suppliers must meet in the event of impermissible child labour: if impermissible child labour is detected at a factory, the supplier is required to take remedial measures and preventive measures, and to document them in a traceable manner for future reference.
With regard to our Detox Commitment, we have added an environmental requirement to the SCoC: All factories that produce consumer goods for Tchibo must have an effective Chemicals Management System (CMS) in place. It must document the entire lifecycle of chemicals, including their purchase, storage, transportation, use, safe disposal, and release of chemicals respectively.
Firmly anchored: responsibilities, key objectives and topic management
Sustainability management is integrated into all departments and anchored at all levels in our company. Its overall coordination and management is in the hands of the Corporate Responsibility directorate, which was created in 2006. Our Corporate Responsibility Director reports directly to the Chairman of the Board and, together with her employees, supports the departments in implementing and further developing their sustainability goals. The Corporate Responsibility directorate also coordinates higher-level and department-specific stakeholder management.
Keeping in mind the overall strategic goal of ‘Tchibo on the way towards becoming a 100 % sustainable business’, the departments develop guidelines for necessary processes of ecological and social transformation. To achieve these key objectives, each department formulates sub-goals and develops measures for their implementation. Integrated into the company-wide target system, the departments’ key objectives and sub-goals and their fulfilment also affect the fixed and variable components remuneration of employees across all hierarchical levels.
Each year, the Corporate Responsibility directorate checks the extent to which the departments’ sub-goals have been achieved, and reports the results to the Chairman of the Management Board (CEO) - after consultation with the departments. If necessary, the targets for the following business year are adjusted, and new targets are adopted.
By continuously collecting and evaluating key performance indicators in our sustainability management system, we can systematically manage our sustainability efforts across all departments.