REWE Group strives to create a balance among the economic, environmental and social impacts of its business operations wherever possible. In this process, it continuously measures its own performance and progress. When different goals come into conflict with one another, the company calls on experts from its own ranks and from external stakeholder groups.
As an international trade and tourism company, REWE Group faces a number of economic risks related to its business activities. These risks include logistics risks, price trends, and amended laws and regulations that occasionally may have short reaction times. Uniform risk management successfully addresses these risks and ensures long-range opportunities. The company’s management and supervisory bodies are informed annually about the combine’s current risk situation in a standardised report. In inventories, risk managers report to the combine about relevant individual risks from the risk areas at a specific closing date. Risks with similar content and causes are subsequently aggregated at the combine level into risk categories and classified as high, medium or low, based on the threat potential to the company’s business activities, financial position, results of operations, cash flows and REWE Group’s image.
For more information about risk management, see the Combined Management Report for the 2018 Business Year, pages 25–35.
To implement the topic of sustainability in the supply chains, REWE Group works in Germany with a due diligence approach that is based on the OECD guidelines for responsible agricultural supply chains. The process includes five levels: Management system, risk analysis, strategy, review and reporting. For further information on the analysis of the social and ecological risks in the supply chains, see the Product-related risk analysis section.