Sustainable Corporate Governance
Our sustainability strategy
The principle “We are aware of our responsibility and act sustainably” has been part of our corporate mission statement since 2008. Our guideline on sustainable business practices specifies sustainability as a key element of our company’s strategy: We take responsibility for our employees, respect human rights in the supply chain and ensure fair treatment with partners and suppliers, promote more sustainable product ranges, act in an environmentally and climate-conscious manner and are committed to a sustainable society. With our sustainability management, we also contribute to the 17 Sustainable Development Goals (see Sustainable Development Goals) of the United Nations.
Our strategy is based on four pillars and their areas of action:
- Green Products:
People, animals, environment, and nutrition - Energy, Climate and Environment: Energy efficiency, climate-relevant emissions, and conservation of resources
- Employees: Values and culture, training and development, health and safety, career and life stages, diversity, and equal opportunities
- Social Involvement: Conscious nutrition and exercise, opportunities for children and young people, conscious approach to food, biodiversity, and environmental protection
In this report, we present our commitment1 in cross-pillar focus topics.
We integrate sustainability into all business processes
Overall responsibility for sustainability lies at the highest level with CEO Lionel Souque. In 2023, the HR & Sustainability Management Board department was created, further strengthening sustainability. Since then, the department has been headed by our Chief People and Sustainability Officer, Dr. Daniela Büchel. Cross-sales line working groups help to integrate the four pillars of sustainability of our strategy into all business processes. REWE and PENNY in Germany, the REWE Group in Austria2, Lekkerland, toom Baumarkt DIY store and the DERTOUR Group set strategic priorities depending on the business model.
We exchange ideas with our stakeholders
When implementing our sustainability strategy, we engage in intensive dialogue with our stakeholders such as suppliers, consumers, business partners, politicians, authorities, scientists, non-governmental organisations (NGOs), employees, the works council, executives and independent retailers. Improvements can only be achieved by working together.
To advocate for our perspective, we actively initiate necessary debates at the local, national, and European level through our Public Affairs department.
Our Sustainability Advisory Board
An important organ of our stakeholder dialogue is the Sustainability Advisory Board. It consists of five independent experts and representatives of non-governmental organisations and is involved in the development, evaluation, and implementation of the sustainability strategy at REWE and PENNY in Germany. The Advisory Board continuously scrutinises the sustainability measures of the REWE Group, and is a source of ideas, a co-developer, and a communication partner.
Highlights of our stakeholder communication 2024:
- Dialogue Forum – At our Dialogue Forum at the NRW State Representation in Berlin in April 2024, we sought dialogue with about 70 stakeholders from society, politics and business. This year’s keynote speech was given by economist Ottmar Edenhofer from the Potsdam Institute for Climate Impact Research, professor at the TU Berlin and director of the Berlin climate research institute MCC. Here we discussed our climate strategy and possible measures to achieve our goal of achieving net zero emissions as a group by 2050. Another topic in the dialogue was the innovative pilot project “Forestguard”, which was carried out by the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) in cooperation with the Fraunhofer Institute. This project aims to ensure deforestation-free supply chains and thus implement the legal requirements of the EU Deforestation Regulation (EUDR). Together with the Fraunhofer Institute for Material Flow and Logistics IML and Schirmer Kaffee GmbH, we are developing an open source solution, initially as an example for tracking the coffee supply chain. The solution combines blockchain technology with other technologies such as artificial intelligence, the Internet of Things and geographic information systems.
- Grüne Woche (Green Week) – With the Competence Centre for Agriculture founded in 2023, we want to create not only concrete projects but also greater recognition for domestic agriculture and its products, thus moving from a pure value chain to an “appreciation chain”. At Green Week fair in early 2025, we presented the “Agricultural Academy” initiative. The programme brings trainees, employees from stores and administration, top management, and young retailers into various modules on farms to intensively engage with the practical day-to-day operations and challenges of local producers (see focus topic Biodiversity).
We keep an eye on opportunities and risks
By investing in transformation and innovation, we can contribute to greater sustainability and, at the same time, offset the expected costs of the negative impact of climate change. We therefore see it as an opportunity to act sustainably.
As an international trade and tourism company, we are furthermore exposed to a wide range of risks, including the following climate-related risks:
- physical risks such as storms, droughts, or floods, which can have a negative impact on raw material production and thus on costs in the food and beverage sector. They can also threaten our locations and travel and tourism destinations such as islands, coastal regions, or ski resorts.
- transitory risks such as the requirements of the EU Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the German Climate Protection Act.
With our risk management, we address all risks whilst creating space for positive developments. For more information, see the Group Management Report for the business year 2024.
Our Sustainability-Linked Bond Framework connects our financing strategy with our sustainability strategy. In 2023, we became the first German food retailer to issue a Sustainability-Linked Bond of 900 million euros on the capital market, the terms of which are directly linked to the achievement of our climate targets. The focus is on reducing environmentally harmful greenhouse gas emissions at REWE and PENNY in Germany. Our first progress report was published in 2024.
We take responsibility
As an international trade and tourism company, acting sustainably also means always acting in compliance with the law. Price fixing, the exploitation of market power against suppliers, bribing employees and taking personal advantage can also lead to claims for damages, criminal prosecution, or loss of reputation. Compliance is therefore a basic prerequisite for our sustainable economic success at the REWE Group.
We have anchored integrity and fairness in our business transactions and in our treatment with one another as fundamental values in the REWE Group Mission Statement. In our Supplier Code of Conduct, we have defined standards of behaviour that are accountable for all employees working on behalf of the REWE Group.
More information on the risks in the supply chain and legal compliance with the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) can be found in the chapter Supply Chain.
Our Compliance Management System (CMS) prevents violations of legal and internal company regulations. We have also created a compliance programme that includes preventative measures such as risk assessments, whistleblower management systems, business partner audits and training on topics such as compliance, antitrust law, and ethics. In 2024, 37,844 (2023: 23,597) employees were trained.
We listen to your compliance alerts
We have various processes and communication channels for critical requests, concerns, grievances, reports, or hints. We have special grievance mechanisms for the relevant supply chains, in particular for focus raw materials and production sites in analysed risk countries. Also see the Supply Chain and Human Rights focus topic chapters.
- Violations of legal requirements or internal regulations, for example, in relation to corruption, can be reported via our group-wide whistleblower system Hintbox (also anonymously), as well as to an external ombudsperson.
- Internally, decentralised Compliance Officers (DCO) and Compliance Delegates are available to employees for compliance issues.
- For information on topics such as respectful behaviour, equal treatment or diversity and equal opportunities, our employees can contact their managers or ombudspersons and the HR department, the Compliance department, the works council, the representatives for people with disabilities and the company’s internal LGBTIQ network “di.to”. There are also special contact persons for cases of discrimination in all sales lines.
In the event of a suspected compliance case, the issue is investigated by Auditing, Market Auditing, external lawyers or the internal compliance organisation, the results and measures are communicated to the Governance & Compliance department and implemented by the operating units. Whistleblowers receive confirmation of the conclusion .
