GRI 303

Water

Brief Overview:

The REWE Group aims to ensure the sustainable and efficient use of the natural resource of water. The company

provides in its Guideline on Sustainable Business Practices, for all business relationships, guidelines for the efficient use of natural resources such as water. The Group has summarised its measures and targets with a view to reducing water consumption and water pollution in the Guideline on Water Protection;
in its Supplier Code of Conduct obligates its suppliers throughout the entire supply chain, to avoid or continuously reduce the environmental impact of water consumption or emissions to soil and water;
has identified the topics of water use and water pollution in raw material cultivation and production in risk analysis and hotspot analyses as key issues.

The activities of the REWE Group in the area of Water come under the Environment area of action within the Green Products pillar. It covers the use of water in the supply chains of food and non-food products. Measures for operational water use of the REWE Group are outlined in the section Operational Water Consumption

GRI 303: Water and Effluents

Management Approach

Effect

The REWE Group is aware of the impact of its products, services and activities on water: Along the supply change water is consumed and may be polluted, for example, through pesticides or fertilisers in agricultural production or chemicals in textiles. Moreover, the company deals with goods which require water for growing but originate from regions where water is scarce. Empty packaging may also be disposed of as plastic waste in the ocean. Especially in the supply chains of its private labels, the REWE Group can, in cooperation with suppliers and standards, exert great influence to avoid and reduce their negative impact on the natural resource of water. With its measures and activities, the company can have a positive influence on the consumption of essential resources.

Principles

The Guideline on Sustainable Business Practices applies to all business relationships of the REWE Group. It also contains guidelines for the efficient use of natural resources such as water. These apply to the REWE Group’s own business processes as well as to those of its business partners and suppliers. In the event of deliberate gross disregard of the values described in the guideline, the REWE Group reserves the right to impose sanctions.

In addition, in October 2022, the REWE Group updated its Supplier Code of Conduct for corporate due diligence in the supply chain. It applies as of 1 January 2023 and outlines the minimum standards that suppliers must observe and adhere to in their business transactions with companies of the REWE Group. The Supplier Code of Conduct also takes into account the requirements of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG). For suppliers, it is important to avoid and continuously reduce the environmental impact of water consumption or emissions to soil and water throughout the entire supply chain.

For suppliers, it is important to avoid and continuously reduce the environmental impact of water consumption or emissions to soil and water throughout the entire supply chain.

In its Guideline on Water Protection in the Supply Chain published in 2020, the REWE Group summarises its measures and objectives with a view to reducing water consumption and water pollution for the private labels sold at REWE, PENNY and toom Baumarkt DIY stores in Germany. It defines a binding framework and aims to raise awareness among employees and partners of the importance of the efficient use of water in the supply chains.

Strategic Approach

As part of a risk analysis carried out in 2017 for REWE and PENNY in Germany and other individual hotspot analyses, the topics of water use and water pollution in raw material cultivation and production were identified as key issues. In the supply chains high use of water can occur in particular in connection with the extraction of wood, cotton and natural stone as well as in the cultivation of fruit and vegetables. Additionally, the production of paper is associated with high and in parts inefficient water consumption. Water pollution mainly occurs in the cultivation of ornamental plants, in the cultivation of fruit and vegetables as well as in fish farming. The use of environmentally harmful chemicals in textile production also pollutes waterways and can result in serious environmental damage.

As part of a risk analysis carried out in 2017 and other individual hotspot analyses, the topics of water use and water pollution in raw material cultivation and production were identified as key issues.

Microplastics and dissolved, liquid and gel-like polymers enter inland waters or the oceans through the wastewater and therefore represent a risk for the resource of water. The situation is similar with disposable plastics or plastic packaging, which can decompose to microplastics.

With regard to the use of water and water pollution, REWE and PENNY in Germany have defined the following focus product groups and/or raw materials:

In order to promote the use of water along the entire supply chain, the REWE Group and PENNY in Germany have adopted the overarching four-stage management approach for responsible supply chains (see also Management Approach Green Products (see section Ecological Aspects in the Supply Chain).

Objectives

With their measures, REWE and PENNY in Germany are striving to reduce the use of water in supply chains and increase water efficiency. They also aim to prevent water pollution and ensure effective treatment of water.

In 2022, the objective of 100 per cent cotton textiles certified in accordance with Cotton made in Africa and GOTS for the private labels of REWE and PENNY in Germany and toom Baumarkt DIY stores by 2025 was achieved ahead of schedule. Furthermore, the gap to 100 per cent cosmetic products free of focused synthetic and semi-synthetic polymers that appeared in 2021 was closed again. The objective of no microplastics in the recipes of all private label cosmetic products of REWE and PENNY in Germany by the end of 2020 was achieved.

Therefore, both sales lines contribute to the reduction in the use of water and water protection with regard to the textiles of the private labels.

Objective	2020	2021	2022
100 per cent of cosmetic products without microplastics as per the understanding defined in the guidelines by the end of 2020 guidelines by the end of 2020	100 %	100 %	100 %
100 per cent of cosmetic products without focused synthetic and semi-synthetic polymers in dissolved/gel/liquid form as per the understanding defined in the guidelines (if this is possible without loss of performance) by the end of 2020	100 %	99.89 %	100 %
100 per cent cotton textiles certified in accordance with Cotton made in Africa and GOTS for the private labels of REWE and PENNY in Germany and toom Baumarkt DIY stores in Germany by the end of 2025	91 %	98 %	100 %
Implementation in progress Target achieved Not available Target not achieved

Scope: The scope covers the private labels of the sales lines of REWE and PENNY in Germany, deviations are explicitly mentioned.

On the way to achieving the targets, the impact of products, services and activities was found to be strongest in raw material cultivation and the upstream supply chain. Therefore, promotion and cooperation with suppliers and standard organisation is of particular importance.

Responsibility and Resources

Implementation of strategies and measures regarding water is the responsibility of dedicated teams and departments in the respective sales line. For more information, please refer to Management Approach Green Products.

Implementation

Since the REWE Group is a member of the amfori Business Environmental Performance Initiative (BEPI), it is supported in the identification of environmental hotspots in their supply chains, in comparing the data across the entire global supply chain and in formulating specific measures on the basis of the new insights. In this way, the progress can be monitored and measured in order to achieve the envisaged improvements and the REWE Group can effectively reduce the negative impact on the environment in its supply chain.

In order to reduce the use of water in the production of raw materials and of its private label products at REWE and PENNY in Germany, the REWE Group cooperates with certification systems which require its producers to use water resources in a sustainable manner in their processes. These comprise, for instance, Rainforest Alliance, Fairtrade, Cotton made in Africa, Naturland, GLOBALG.A.P. SPRING., the Blue Angel or EU organic standards.

When it comes to water protection, the REWE Group also works together with certification organisations such as Rainforest Alliance, QS Qualität und Sicherheit and GLOBALG.A.P. In addition to their own chemical residue monitoring, these organisations implement extensive preventive measures for water protection. In fish farming, the REWE Group attaches importance the ASC standard, which requires regular water quality checks and treatment of wastewater produced.

As part of the Green Production Programme (for more information about this see Ecological Aspects in the Supply Chain), since June 2020 all products have presented an ISO 14001 certificate or undergo a self-assessment that also contains information about water consumption). As an alternative to ISO 14001 certificate, textile producers can also present an OEKO TEX STeP certificate or a Higg FEM Verification. Producers for strategic suppliers that have a high risk in this respect are subsequently supported in training and consulting projects to achieve water savings. None of the 23 production plants was assessed as high risk between 2018 and 2022.

Involvement of Stakeholders

The protection of water stressed areas was assessed as relevant by the stakeholders of the REWE Group in the Materiality Analysis They are informed annually about the effectiveness of measures taken in the Sustainability Report and in various dialogue formats (see Stakeholder Dialogue). This exchange allows stakeholders to provide important input on the issue.

Customers, suppliers, partners and other stakeholders can submit their grievances or comments. For this purpose, the REWE Group has established reporting and grievance mechanisms. For more information, please refer to the Compliance section.

Measures and Projects

With the projects and measures described below, the REWE Group intends to reduce the negative impact from the use of water and from water pollution: For the year under review, these are, sorted thematically by:

Use of Water

Initiative for the survival of the Spanish World Heritage site Doñana Highlight

In Spain‘s oldest national park and UNESCO World Natural Heritage site, the wetlands of Doñana, currently unapproved areas are being used to cultivate strawberries and other berries and are being irrigated with over 1,000 illegal wells. The Court of Justice of the European Union (CJEU) convicted Spain in this regard following legal action in June 2021 by the WWF over excessive extraction of groundwater. Despite this, the Andalusian government plans to legalise this agricultural use of 1,900 hectares in the region of Huelva. The European Commission, international organisations (UNESCO, Ramsar and IUCN), scientists, environmental groups and the Spanish government also oppose these plans.

Therefore, on World Water Day in March 2022, the WWF launched an initiative for the survival of the Spanish World Natural Heritage site of Doñana and asked the Regional Government of Andalusia to stop the damage to the World Natural Heritage site caused by fruit growing. The REWE Group has signed the letter. Food retailers from Germany also involved are Aldi Nord, Aldi Süd, EDEKA, Kaufland, Lidl and Netto Marken-Discount. Germany is the most important customer country for early strawberries from the region. The UNESCO World Natural Heritage site of Doñana has been protected since 1969. This illegal use threatens the habitat of migratory birds and rare animal species such as the Iberian lynx.

For berries from Spain, the REWE Group requires from 2023 GlobalG.A.P. SPRING certification for the sales lines REWE and PENNY in Germany. The standard promotes sustainable water use in farming. The company is also reviewing whether water standards will also be required in future for further fruit and vegetable products from water risk regions, in order to contribute to the minimisation of water risk.

Pollution of Water

Support of suppliers in their wastewater management

The REWE Group is contributing with its Green Production Programme to a reduction in water pollution. Producers of selected suppliers are supported in their wastewater management with training and advice – including analyses of existing potential for improvements, measures to reduce pollutants in wastewater or progress monitoring.

In the period under review one factory with potential to save water was identified and provided with advice. The potential saving totalled 6,600 m³ of water per year. In addition, in the BEPI assessments one factory with a water pollution risk was identified. The measures necessary to reduce the risk were implemented.

Reduction of chemicals through Detox Programme

In order to counteract water pollution across its textile supply chains, the REWE Group has set up a Detox Programme for clothing, shoes and home textiles in its private labels for the sales lines REWE and PENNY in Germany and toom Baumarkt DIY stores. In this programme, water pollution caused by chemicals will be reduced in a targeted manner (for more information, see Ecological Aspects in the Supply Chain).

Requirements for the use of pesticides

The REWE Group is setting requirements for the use of pesticides in the cultivation of fresh fruit and vegetables as well as in the growing of ornamental plants which go far beyond statutory requirements. According to these requirements, critical substance classes may not be used here. In addition, the REWE Group is limiting the sum of all pesticide residues in the growing of fruit and vegetables, thereby eliminating negative additive effects that might result from the use of different active ingredients. Furthermore, the “acute reference dose” is limited which refers to the maximum acceptable daily intake of pesticide residues defined by the World Health Organisation. Moreover, suppliers of fruit and vegetables to the REWE Group must adhere to specific nitrate levels. Compliance with these requirements is checked on a regular basis by the REWE Group by means of a residue monitoring.

The REWE Group in Austria developed a Pesticide Reduction Programme in 2003. Its limits, which in most cases are well below the maximum levels allowed by law, are mandatory for suppliers. Random samples are tested regularly and on a risk-oriented basis in order to monitor adherence to the required residue levels.

Microplastic-free products through recipes, seals or reduction in the use of plastic

Microplastics as well as dissolved, gel-like or liquid polymers are used in the formulations of cosmetic products. For this reason, in the Guideline on Microplastics in Cosmetic Products sold by REWE and PENNY in Germany requirements and measures for the use of these substances in cosmetic products are recorded and objectives are set. The objective of no microplastics in the recipes of all private label cosmetic products of REWE and PENNY in Germany by the end of 2020 was achieved. In addition, the gap to 100 per cent cosmetic products free of focused synthetic and semi-synthetic polymers that appeared in 2021 was closed again. In close coordination with suppliers, the company continuously checks its entire private label product range in the area of cosmetics to ensure that new formulations are developed without the use of microplastics. In this way, REWE and PENNY in Germany managed to free all private label cosmetic products of microbeads, which are used as friction bodies in exfoliators, for example, in 2014.

In order to make it easier for consumers to find their way around, REWE and PENNY have developed their own seal. It is used to identify private label cosmetic products which are free from microplastics – according to the REWE Group‘s understanding of this term – and free from the focused-on dissolved, gel-like and liquid polymers.

Plastic in packaging is also a source of microplastics, which can pollute the environment and waterways. Therefore, the REWE Group wants to use less plastic in the future by avoiding, reducing and improving packaging. In its three-pronged approach for more environmentally friendly packaging, the REWE Group is aiming to reduce plastic in private label packaging (REWE and PENNY in Germany) by 20 per cent by the end of 2025. In addition, further specific objectives for the private label products of REWE and PENNY in Germany have been specified. For more information, please refer to section on Packaging.

Further measures and projects in this area are:

Ocean bracelets for less plastic in the oceans (Sustainability Report 2021, page 194)
Combating marine waste in the Maldives (Sustainability Report 2021, page 194)