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Finnish retail giant Kesko doesn’t kid around when it comes to sustainability.
While the EU’s recent declaration of war on plastic waste has seen corporations rushing to outdo each other with recycling and reusable packaging, the Finnish retailer has been ahead of the curve for years.
The retailer recently ranked 31st on the 2018 ‘Global 100 Most Sustainable Corporations in the World’ list, a yearly grade of the world's most sustainable firms, produced by 'clean capitalism' body Corporate Knights.
In retail terms, Kesko was the highest-ranking trading sector company on the list, and remains the only Finnish business to have featured every year since the rankings began in 2005.
In addition, in autumn of last year, the retailer also increased its standing on the Dow Jones Sustainability Indices DJSI World and DJSI Europe, while it is also listed on the FTSE4Good Index, the CDP Climate A- List and the STOXX Global ESG Leaders Index.
Kesko forms part of K Group, the third largest retailer in the Nordic region, with sales totalling at €13 billion and boasting approximately 45,000 employees. Its president and CEO, Mikko Helander, has been a vocal proponent of sustainable retail for years.
“We wish to make sustainable choices easier for the consumers,” he says. “We firmly believe that welfare in the society around us also means welfare for the K Group.”
Targeting Sustainability
Last June, the retailer became Finland’s first company to adopt the targets of the Science Based Targets initiative (SBTi), committing to reducing its emissions by 18% by 2025.
The SBTi is a collaboration of several global organisations, including the UN, to allow companies to set a commitment to the target of below 2°C global warming, as per the Paris Climate Agreement.
To achieve its targets, the company boosted its range of hybrid and electric cars and introduced remote-monitored LED lighting, lids and doors into its refrigerator fixtures.
It has also published a three-pronged plastic policy, which centres around packaging and manufacturing materials, distribution and trade as well as the recovering and recycling of plastic waste.
Thinking Sustainably
Elsewhere, while other retailers around the world have introduced plastic bag levies to curb waste, Kesko has been transforming its carrier bags through the use of sustainable materials.
One year ago, the retailer introduced its Pirkka Essi bags made from plastics recycled by households, the first of its kind in Finland. The Pirkka Essi bags have proved to be a successful addition to Kesko’s existing range of sustainable bags, which include cotton, jute and paper bags.
As Børge Kvamme, CEO of Amerplast, which produces the Pirkka Essi bags, “Finns can now leave traditional plastic bags in the past."
In a country where fish is an essential element of the local cuisine, Kesko’s introduction of wood fibre-based packaging for fresh fish has also been a game changer.
The EcoFishBox, produced by Finnish packaging company Stora Enso, has replaced styrofoam as the commonly used packaging for transporting fresh fish.
Healthy Diversification
This feeling of goodwill has also been extended to its brand positioning, with the retailer recently announcing a new health, beauty and wellness collaboration with local pharmacy chain Oriola-KD.
The new 'Hehku' store-in-store concept has opened in two outlets already and Kesko plans to expand it to 30 stores by the end of the year and 100 stores in the years ahead.
Kesko is hopeful that the concept will provide a novel template for combining retail with the health and wellness sector while maintaining the principles of a circular economy.
Given its performances in this area to date, it's likely to mark another progressive step for Finland's champion of sustainability.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
