Measurement and calculation methods

Hakon Invest acquired Ahold’s shares in ICA AB in spring 2013 and changed its name to ICA Gruppen on 20 May. The report covers all companies within ICA Gruppen, except the portfolio companies.

ICA Sweden, ICA Norway and Rimi Baltic use a common IT system to collect data on sustainability issues. The system supports continuous reporting with the aim of ensuring the long-term quality of the indicators included in ICA’s continuous monitoring and reporting of the sustainability work. The company in each country reports data according to the Group’s definitions and routines for sustainability reporting. ICA’s calculation and reporting parameters are described in detail below.

Charitable contributions

Include voluntary donations from ICA Sweden, as well as donations from customers, employees and suppliers collected through ICA in Sweden. The recipients are charitable organisations and NGOs.

Energy

Includes stores and warehouses, as well as offices belonging to logistics departments.

To calculate electricity consumption in Swedish and Norwegian stores a sampling of stores in each format is used. Their actual consumption is then extrapolated in order to report the total energy consumption at the end of the reporting period.

To calculate energy consumption per square metre in warehouses and stores the area of the stores and warehouses in operation at the end of the measurement period is used.

Goods transportation and climate impact

Include goods transportation between stores and ICA’s warehouses. Transportation by suppliers to warehouses is not included.

For ICA Sweden all the hauliers report actual transport data, for both diesel and alternative fuels.

For ICA Sweden, both total fuel consumption and the part included in ICA’s climate goal are reported.

The transports moved from suppliers to be owned by ICA are not included in ICA's climate goal. From the forth quarter 2012, carbon dioxide emissions associated with these transports are identified and therefore will be reported separately in addition to the total amount of carbon dioxide emissions.

Diesel consumption for transport vehicles leased by Rimi Baltic is calculated based on distances driven and average fuel consumption. Diesel consumption for ICA’s own goods transportation in ICA Norway and Rimi Baltic is obtained directly from the diesel supplier. Leased transportation between warehouses and stores in Norway is estimated based on distance travelled and average diesel consumption for ICA’s own transportation.

Cooling agents

Include cooling agent refills in all warehouses and Rimi Baltic’s stores. Stores in Norway and Sweden are not included. Data on ICA Sweden’s warehouses is based on official coolant reports.

Business travel

Includes business travel by air booked through ICA’s central travel agency for employees of ICA Norway and ICA in Sweden. ICA has been buying carbon offsets for air travel since 2008.

Includes business travel by rail by employees in Sweden booked through ICA’s central travel agency or directly through travel providers using ICA’s customer number.

Includes business travel by car by employees in Sweden.

Climate impact

2006 represents the base year for ICA's climate target and hence has this year been chosen as the base year for emission factors. For any new energy- and fueltypes that will be introduced after 2006 emission factors will be set in accordance with the IPCC's recommendation. Since Q1 2013 the target figure for reducing the Group’s direct greenhouse gas emissions has been reported as direct climate impact per square metre of sales area in stores. This is in order to improve transparency and accuracy, since the outcome will follow changes in ICA’s operations (i.e. store mergers and divestments will not in themselves affect the result of the climate target).

Reporting in accordance with GHG Protocol has been added in GRI G4. Reporting starts 2013 and historical data is not reported.

The following factors are used to calculate carbon dioxide emissions:

  • Emissions factor for 2006 Nordic electricity mix for conventional electricity in Sweden and Norway.
  • Supplier-specific emissions factor for units that have signed ICA’s central electricity agreement.
  • The International Energy Agency’s average for the years 2000–2005 for electricity production in each Baltic country.
  • The Swedish Society for Nature Conservation’s specific emissions factor for Good Environmental Choice electricity.
  • Swedish average for district heating from the Swedish Energy Agency (as recommended by the GHG Protocol).
  • Emissions factor for diesel and ethanol from Nätverket för Trafik och Miljö (NTM).
  • Global Warming Potential (GWP) for each type of cooling agent according to the Montreal Protocol and IPCC.
  • Carbon dioxide emissions from air and rail travel are obtained from ICA’s carbon offset suppliers or the travel provider.
  • The GHG Protocol’s emission factor for business travel by car.
  • Alternative fuels from the haulage company concerned, base year 2012.

Waste

Includes all warehouses, as well as ICA Norway’s and Rimi Baltic’s stores. Soft plastics from stores are not included for the Baltic countries, but are included for Sweden and Norway since this type of waste is returned from stores to warehouses.

National laws and regional waste management systems define the types of waste included.

Information on waste management methods and amounts is obtained from waste contractors.

Waste volumes in ICA Norway stores are based on actual waste amounts collected during the year for a significant part of the stores. Generated waste is extrapolated using the number of stores at year-end.

Rimi Baltic’s waste is based on actual waste data extrapolated by the number of stores at year-end. Waste from outsourced warehouses in Estonia is excluded.

Waste reported for Rimi Baltic also includes packaging waste for products that Rimi Baltic introduces on the market.

Compostable waste comprises biodegradable organic waste, i.e. waste sorted as compostable and 90% of organic waste fractions with packaging.

Combustible waste comprises combustible waste fractions and 10% of organic fractions with packaging. In Norway, 75% of unsorted production waste is included as well.

Recycled/reused waste includes glass, metal, wood, plastics and other non-landfill waste. ICA Norway also includes 10% of unsorted production waste in recycled/reused fractions and 15% in landfill waste fractions.

For categories where ICA acts on producer responsibility, such as pharmaceuticals, batteries, electronic products and packaging, handling occurs in accordance with applicable legal requirements and any permits required. The waste under ICA's producer responsibility is not included in the reported waste volumes.

ICA seeks to reduce waste to landfill and increase the prospects for sorting and recycling of waste.

Supplier-related data

GFSI-certified suppliers comprise ICA’s corporate brand suppliers approved according to one of the quality standards approved by the Global Food Safety Initiative (GFSI).

Information on socially audited suppliers refers to active suppliers in high-risk countries whose production units have been socially audited in an ICA Social Audit and/or in any of the third party audit schemes accepted by ICA.

The definition of a high-risk country is based on a combination of the UN Development Programme’s (UNDP) Human Development Index and the ILO’s Economic Security Index. A country is considered a high-risk country if it scores <0.85 in the Human Development Index and <0.50 in the Economic Security Index. If the two index levels are not consistent, the Human Development Index is decisive in the assessment of a country’s level of risk.

Sales trends and number of products

Includes sales from Swedish and Norwegian ICA and Rimi stores. In Sweden, only ICA Sweden’s central range of the products described below is included.

The number of products corresponds to the total number of unique EAN codes for ICA’s range of food intolerance products and those labelled as Fairtrade (not reported for ICA Norway), Keyhole or organic (KRAV/Debio, EU organic).

Keyhole-labelled products and food intolerance products are available in Swedish and Norwegian ICA stores.

Quality work and product safety

Recalls comprise all recalled products from warehouses and/or stores. Recalls that are considered a risk to human health or the environment are public recalls, i.e. the public is informed via a press release or by other means.

Tests comprise the number of internal and external product tests on ICA’s private label products (both new and existing products).

Quality in stores

Certified stores in Sweden refers to stores approved and certified by a third party in accordance with the Swedish standard for food handling in stores.

Stores that have implemented the food safety standard refers to Swedish ICA stores that apply the standard but have not been certified by a third party.

Hygiene inspections comprise the number of inspections performed by ICA Norway’s own employees at ICA and Rimi stores in Norway.

Employees

Comprises personnel employed by the Group, i.e. including employees in stores owned by ICA.

The number of full-time equivalents (FTE) comprises permanent employees, probationers and temporary employees hired for longer than three months.

Employee turnover is calculated as the number of individuals who leave during the year in relation to the average number of probationers and permanent employees.

Sick leave is calculated as the number of hours of sick leave in relation to scheduled working hours.

The gender distribution at management level refers to all management levels within the Group and is based on the number of full-time equivalents (FTE).

Store robberies include robberies or attempted robberies of merchandise or money from stores or store employees, as well as physical violence or threats of physical violence.

Significant changes since the previous reporting period

Compared to previous years, the following changes were made in the reporting and calculation principles in 2013:

Goods transportation and climate impact

For ICA Sweden all the hauliers report actual transport data, for both diesel and alternative fuels.

For Sweden, both total fuel consumption and the part included in ICA’s climate goal are reported.

Climate impact

Since Q1 2013 the target figure for reducing the Group’s direct greenhouse gas emissions has been reported as direct climate impact per square metre of sales area in stores. This is in order to improve transparency and accuracy, since the outcome will follow changes in ICA’s operations (i.e. store mergers and divestments will not in themselves affect the result of the climate target).

Reporting in accordance with GHG Protocol has been added in GRI G4. Reporting starts 2013 and historical data is not reported.

Significant changes in coming reporting periods

Climate impact

At the beginning of 2013 it was announced that ICA Norway and Norgesgruppen were entering into a cooperation agreement within sourcing and distribution. The Norwegian Competition Authority gave an advance ruling in the beginning of Febuary 2014 that it will not approve ICA Norway's cooperation with Norgesgruppen. ICA is looking into hte ruling and the consequences it may have for operations in Norway. The measurement and calculation methods will change if the cooperation comes about.

Business travel

From 2014, carbon offsetting from business travel by air will end.

Supplier-related data

Starting in 2014 ICA will also accept local standards as quality standards for local suppliers, such as IP Sigill in Sweden (in addition to GFSI-approved standards).

Starting in 2014 high-risk countries will be identified based on the BSCI definition.

Other

ICA Gruppen was formed in May 2013. This will affect the scope of reporting and the measurement and calculation methods in future years. The extent of this is not yet clear.