REWE Group Sustainability Report 2018

Biodiversity

REWE Group is a trade and tourism company whose business operations have a broad impact on biodiversity. In addition to direct effects at the company’s business locations and regarding the transport of goods, the key areas are primarily the upstream and downstream stages of the value chain. The impact here is created by the non-sustainable use of natural ecosystems in such areas as the mining of natural resources, the manufacture of products and activities for tourists.

To permanently integrate sustainability into its company processes, REWE Group has developed an all-encompassing sustainability strategy that is made up of four main pillars: Green Products; Energy, Climate and the Environment; Employees; and Social Involvement. The Green Products Strategy 2030 was adopted in 2017 in a move to more strongly anchor sustainability within procurement processes. In the action areas of ethical business practices, animal welfare and conservation of resources, the trade and tourism company designs effective measures to reduce environmental and social impacts as part of the Green Products commitment. Biodiversity has been defined as a focus topic within the area of action of conservation of resources. The trading company’s goals are to conserve natural resources and protect and promote biodiversity along its supply chains.

GRI 304: Biodiversity

Management Approach

In the Guideline for Sustainable Business Practises, REWE Group has made a firm commitment to preserving and protecting natural ecosystems. The company has also endorsed the objectives of the UN Convention on Biological Diversity. In addition, as part of the Biodiversity in Good Company initiative, REWE Group has pledged to integrate protection and sustainable use of biodiversity in to the company’s sustainability management.

Maintaining biodiversity is an important criterion used to design more sustainable product ranges. Biodiversity criteria can be addressed through systems of standards like Bio, Fairtrade, the Forest Stewardship Council (FSC®), UTZ, the Rainforest Alliance and the Marine Stewardship Council (MSC). They are also used in the Guidelines the REWE Group has drawn up for such raw materials as palm oil, fish and cocoa. Impacts on biodiversity are examined as well during product-related hot spot analysis conducted in the PRO PLANET programme. This allows identifying negative impacts on biodiversity and measures to be taken for preserving and promoting biodiversity (for more details see the section PRO PLANET).

REWE Group works in alliances to advance biodiversity with the help of partners. The company promotes projects that address biodiversity in agriculture with the help of its strategic partners: German environmental organisation NABU, the Lake Constance Foundation and several cultural landscape foundation partners.

To promote biodiversity, the REWE Group has adopted as its objective to have all of its regional outdoor fruit and vegetable produce come from biodiversity-enhancing farming by 2025.

GRI 304-2:

Significant impacts of activities, products, and services on biodiversity

REWE Group’s store-brand production is the area where the company has its greatest opportunity to protect biodiversity. The following projects illustrate the focal points of the company’s activities during the reporting period. Progress and impacts are evaluated on a project basis and described within the context of the projects being presented.

Conservation and Agriculture: Working Hand-in-hand With the PRO PLANET Apple Project

This project is being conducted jointly with the Lake Constance Foundation, the German environmental organisation NABU and the Rhine Region Cultural Landscape Foundation with the goal of increasing the biodiversity of apple orchards by forming an alliance between farmers and environmental protection groups. Since the project was launched in 2010, the number of participating apple farmers has increased to over 300. The project has been running successfully for several years, and in 2018 was recognised as a UN Decade Project for Biodiversity, while in 2016 it received the German CSR Prize.

The project is having a broad range of positive effects: Since 2010, a total of 10,130 bushes, trees and shrubs have been planted throughout Germany (2018: 4,570). Roughly 440 hectares of flowering strips and wide-ranging forms of structural enhancements like dry stone walls and small bodies of water have been created (2018: 140 hectares). Another focus of this work is bees. A wild-bee monitoring programme conducted in 2017 found that the variety of bees had grown significantly in orchards. Compared with 2010, the variety had increased by about 100 per cent from 56 to 117 species of wild bees, including 25 endangered species (2010: five). In addition, since 2010, around 8,525 nesting boxes and nesting aids have been set up for birds, bats and insects (2018: 1,885). All these many nesting boxes, nesting aids and species protection measures are having the desired effect, as in 2018, 82 young falcons were counted for 22 breeding pairs in the southern Rhineland region.

In 2015, the measures were monitored by the University of Bonn applying a point-based system for evaluating the suitability of the measures for promoting biodiversity. In 2016 and 2017, pilot projects in vegetable and potato farming were planned and conducted on the basis of evaluations of the measures of the apple project. The objective is to integrate additional cultures into biodiversity projects. In 2018, projects focused on broccoli, Chinese cabbage, iceberg lettuce, romaine lettuce, carrots and potatoes were rolled out. The products from these projects have since been awarded the PRO PLANET label. REWE Group has arranged for various cultural landscape foundations to advise potato producers about potato-specific biodiversity-promoting measures on their farmland.

Projects in Banana-growing Areas to Improve Environmental and Social Conditions in Central America

Since 2008, REWE Group has been striving to improve the environmental and social conditions of banana farming in Central America. Working with the banana producer Chiquita and the German Corporation for International Cooperation (GIZ), REWE Group conducted the Tropical Project in banana-growing regions of Panama from 2009 to 2013. In addition to environmental protection measures, the project focused on winning the support of the local population.

Thanks to environmental training and improved economic outlooks, members of the local population were taught to use valuable ecosystems more carefully and to maintain biodiversity over the long term.

Based on the positive results, the Tropical Project was expanded to other banana-growing areas, for example Costa Rica. Over 3.5 million euros were provided for this effort by the REWE Group Central America Fund – aka the Banana Fund – between 2013 and 2018. The fund is designed for local organisations whose project ideas compete to win financial support. The GIZ coordinates the project applications and monitors local project implementation. The funding is approved by a board of trustees on which representatives of Chiquita, Dole, Fyffes, Greenyard, Caritas and REWE Group serve.

The measures are complemented by strict production requirements. All farms that grow bananas to be sold by the sales lines of REWE Group in Germany must be certified by the Rainforest Alliance or according to Bio guidelines to ensure that social standards are followed and to keep negative environmental impacts to a minimum. The bananas of the store brand REWE Beste Wahl also have been awarded the PRO PLANET label of REWE Group. This means that they also meet sustainability criteria that exceed the basic requirements of the Rainforest Alliance.

To heighten transparency in supply chains, REWE Group is introducing a QR code for REWE store brand bananas that allows customers to trace bananas back to the producer.

Insect Protection Fund With the NABU to Promote Biodiversity in Agriculture

Poorly conceived structures and the use of pesticides on farmland have caused a sharp decline in the population of flying insects over the last few decades. Thus, in mid-2018, REWE contributed 300,000 euros to an Insect Protection Fund formed by the company’s long-standing strategic partner NABU. The funds will make possible the nationwide implementation of broad insect protection measures to counteract the dramatic decline in insect populations over a twelve-month period.

The Insect Protection Fund is helping buy land which is to be developed and secured as a species-rich habitat for insects over the long term. In 2018 a total of 166,134 square metres of land were acquired. For example, 76,084 square metres of conventionally farmed land were purchased and farming there was ceased in order to implement development measures for insect diversity. Forest areas, water bodies and open land were also acquired and placed under protection.

Promoting Domestic Species Diversity Through the Environmental Protection Programme “Blooming Austria”

In 2014, REWE International AG began to work in a project called “Blühendes Österreich” (Blooming Austria), cooperating with the nature protection organisation BirdLife Österreich to create environmental habitats. The initiative provides funding for use in preserving and maintaining endangered natural areas and extensive agricultural sites as well as projects for environmental and sustainability training, thus promoting domestic biodiversity.

In 2015, REWE International AG converted the initiative into a charitable private foundation. As an independent organisation with its own staff and clearly regulated financing, the foundation represents a long-term commitment and credibility to customers. The foundation’s financing and project activities have been linked to certain products. It receives one cent from every sold product in the store brands “Da komm ich her” (I’m from Here) (available at BILLA, MERKUR, ADEG and AGM), “immer grün” (Always Green) (MERKUR), bi good (BIPA) and “Ich bin Österreich” (I Am Austria) (PENNY). As a result, customers of the trade companies are actively integrated into project support. In addition, conscious buying decisions are encouraged. The foundation’s budget totals about one million euros.

In 2017, the foundation’s environmental protection strategy for 2018–2022 titled “Anchoring Sustainability: Living Austria’s Diversity” was finalised. The aim is to protect a total of 1,000 hectares of endangered environmental areas by 2022. In 2018 more than 130 farms participated in the FLORA programme aimed at supporting farmers and organisations in order to preserve biodiversity. As a result, 570 hectares of ecologically valuable land were preserved.

REWE, PENNY and toom Baumarkt Stores Focused on Peat-free Soil

To harvest peat, centuries-old moors were and are drained. The process destroys the habitat of animals and plants. It also releases the carbon trapped in the moors as climate-killing carbon dioxide. For this reason, in 2016 toom Baumarkt DIY stores became the first German DIY store chain to decide to convert its entire line of soils, both store brands and branded products, to peat-free alternatives by no later than 2025. The store brand range of peat-free soils was expanded to a total of eight products in 2018. The peat-free soil products bear the PRO PLANET label and the Bio-Grünstempel® organic seal. In addition to expanding the number of peat-free products, toom Baumarkt DIY stores will gradually increase the amount of peat-replacement materials from renewable resources in all soils they sell. In taking these steps, toom Baumarkt DIY stores are fighting climate change and fostering biodiversity. The REWE and PENNY sales lines have also added peat-free and peat-reduced alternatives to their seasonal range of soils.

Systematic Reduction of Pesticides and Elimination of Glyphosate at toom Baumarkt DIY Stores

Glyphosate, the most widely used pesticide in farming around the world, is the target of continuous criticism. A widely read study done by the International Agency for Research on Cancer (IARC) concluded in 2015 that glyphosate was probably carcinogenic to humans. The improper use of the pesticide can also pose a threat to the environment, particularly for bodies of water and the organisms that live in them. In light of this risk to humans and the environment, toom Baumarkt DIY stores became Germany’s first DIY store chain in 2015 to drop products containing glyphosate from its product range. The company took this decision even though it was generating annual revenue of 2.1 million euros (2014) with this pesticide.

In addition, the sale of pesticides that are particularly harmful to bees and their use in the production of the plant assortment of toom Baumarkt DIY stores was also restricted. In order to actively contribute to protection of bees and the environment, toom Baumarkt DIY stores have tightened requirements for their ornamental plant suppliers, and in 2017 became the first DIY store chain in Germany to begin exclusively selling ornamental plants produced without the use of these pesticides classified as particularly harmful to bees by Greenpeace. This is also reflected in the area of chemical pesticides. Since 2015, toom has completely stopped selling products that contain substances which, according to a Greenpeace study, are particularly harmful to bees.

In addition to protecting insects by eliminating usage of specific active agents and pesticides, toom Baumarkt stores have been continuously expanding their range of bee-friendly plants since 2016. In 2018 nearly 200 plant products were offered under the slogan Bee Friends, offering vast amounts of nectar and pollen for insects.

Pesticide Blacklist for Conventionally Farmed Fruit and Vegetables
For information on pesticide use in conventional fruit and vegetable farming, see the section Environmental Issues in the Supply Chain.

Further topics in this area:

Product-related Risk Analyses

GRI 102-11

Regional Products

GRI 204-1

Raw Materials in Focus – Food

GRI FP1

Raw Materials in Focus – Non-food

GRI FP1

Organic

GRI FP2

PRO PLANET

GRI FP2

Packaging

GRI 301

Ecological Impacts
Within the Supply Chain

GRI 308

Social Issues
in the Supply Chain

GRI 412, 414

Customer Health
and Product Safety

GRI 416

Promoting Sustainable Consumption

GRI 417

Animal Welfare

FP10

Child Labour
and Forced Labour

GRI 408, 409

Livestock Farming Conditions

FP10

Nutrition

FP10