THE BEST PLACE TO LIVE

THE BEST PLACE TO LIVE

Finland is an amazing country. We are among the best countries in the world in many respects. We are doing pretty well, but there is still work to do.

S Group is doing its part to help Finland become an even better place to live. As a major operator, our impact on the present and on the legacy we leave for future generations is considerable. That is why we must set our sights farther ahead.

Our mission is to produce benefits and services that generate well-being for our owners – in other words, our customers. However, well-being does not mean just economic well-being. Together with our co-op members, we perform concrete acts for the good of society, for the circular economy, against climate change, and in order to improve our operating culture and human rights and to promote well-being and health.

Whether our acts are large or small – we perform them together.

We take
responsibility

We create
well-being

We create
jobs

1

We take responsibility We take responsibility for consumers and the viability of the Finnish food product chain both nationally and locally.

We are expanding the Kotimaista
We are expanding the Kotimaista line.

WHY?

Why is S Group expanding its Kotimaista line of Finnish products?

THAT IS WHY

We are a consumer cooperative, and our task is to offer affordable, Finnish food products to our customers. That is why we expand the Kotimaista line.

We provide services locally
We offer retail services through the most extensive network of stores in Finland.

WHY?

Why does the S Group have the most extensive network of stores in Finland?

THAT IS WHY

As a consumer cooperative, it is our task to offer products and services close to our customers. That is why we have the most extensive network of stores in Finland.

All meat served in the ABC restaurants originates from Finland
All meat served in the restaurants of the ABC service station stores is 100 per cent Finnish.

WHY?

Why does S Group only serve meat of Finnish origin in the restaurants of the ABC service station stores?

THAT IS WHY

Our customers value the domestic origin of products. As a Finnish consumer cooperative, we want to support domestic demand and production. That is why we only serve Finnish meat in all restaurants of the ABC service stations stores.

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2

We create well-being We create well-being by investing in and buying local and domestic products and services.

We monitor how we create value for society
We will develop indicators and a monitoring model to measure the creation of value in society by the end of 2018.

WHY?

Why does S Group measure the value it creates in society?

THAT IS WHY

Our mission is to produce benefits and advantages for our co-op members. As the major operator in Finland, we influence Finland and its residents. That is why we must know what social value we can increase.

We keep local products on display
We promote the sales of local products by means of the Kotoisat (‘Locally produced') lists displayed in S-markets. These lists highlight the best local products we offer, provided by the best local providers.

WHY?

Why does S Group highlight locally produced food products by means of the Kotoisat lists in S-markets?

THAT IS WHY

Our customers value local products. We bear the responsibility for the vitality of the entire domestic food product chain. That is why we highlight local products in the stores.

We showcase Finnish design
We introduce new Finnish designers and highlight Finnish design in our pop-up stores and through communications.

WHY?

Why does S Group highlight the work of new Finnish designers and Finnish brands in its pop-up stores and communications?

THAT IS WHY

Our customers are interested in Finnish products. It is our task to listen to our customers and offer them what they want. That is why we highlight the work of Finnish designers and Finnish brands.

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3

We create jobs We are an important Finnish employer and taxpayer.

We are a significant payer of corporate tax
We report our tax footprint annually.

WHY?

Why does S Group report its annual tax footprint?

THAT IS WHY

In 2015, S Group's tax footprint amounted to €1.7 billion. We recognize our corporate responsibility and pay our taxes to Finland. That is why we announce our tax footprint annually.

We employ young people
We are Finland's largest private provider of summer jobs and trainee positions to young people.

WHY?

Why does S Group continue to be the largest provider of summer jobs and trainee positions to young people?

THAT IS WHY

In 2016, S Group had 12,000 summer employees and trainees. The first jobs give young people a basis to stand on as adults and to become active members of society. That is why offer employment to young people.

We are increasing opportunities to work across sector boundaries
By 2020, S Group will have implemented a system that will support employees' opportunities to work across sector boundaries while optimizing their working hours.

WHY?

Why will S Group implement a system by 2020 that supports the employees' opportunities to work across sector boundaries and optimize their working hours?

THAT IS WHY

The opportunity to gain diverse work experience work is more significant and important to many people. That is why we will create a system that supports our employees' opportunities to work across sector boundaries if they want to.

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Solutions for sustainable consumption

Reducing the impact on the environment

Sustainable production and raw materials

1

Solutions for sustainable consumption We offer co-op members solutions for reducing emissions and for sustainable consumption.

We offer guidance in waste reduction
We help our customers to reduce food waste.

WHY?

Why does S Group help customers to reduce food waste?

THAT IS WHY

Reducing the waste benefits both the economy and the environment. In Finland, 35 per cent of food waste is generated by households. That is why S Group helps customers to reduce food waste.

We are piloting the recycling of textiles
We are piloting the recycling of textiles in the Sokos chain.

WHY?

Why is S Group piloting the recycling of textiles?

THAT IS WHY

We are one of the largest retail operators. That is why we can promote recycling and considerably reduce textile waste.

We help motorists reduce emissions
We help motorists reduce emissions form driving by encouraging them to install the flex fuel conversion kit in their vehicles and to use Eko E85 fuel. We also offer an extensive network of charging stations for electric cars.

WHY?

Why does S Group help customers reduce emissions of driving?

THAT IS WHY

Emissions from traffic are one of the key factors that are accelerating climate change. That is why we help our customers who drive to reduce their emissions.

We increase the use of waste in biofuels
We continuously increase the use of raw materials based on domestic waste and scraps in biofuels.

WHY?

Why does S Group increase the use of raw materials based on domestic waste and scraps in biofuels?

THAT IS WHY

There is demand for new ways to reuse domestic raw materials based on waste and scraps. That is why S Group increases the use of raw materials based on domestic waste and scraps.

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2

Reducing the impact on the environment We look for the best solutions to reduce the impact that our own operations have on the climate and environment.

We use energy more smartly
We will increase the efficiency of our use of energy by 30 per cent compared to the 2015 level by 2030.

WHY?

Why will S Group improve its energy efficiency by 30 per cent?

THAT IS WHY

Energy consumption is one of the key factors in the retail sector's environmental load. We are one of the ten largest consumers of electricity in Finland. That is why we will improve our energy efficiency.

We make considerable investments in renewable energy
We will generate 80 per cent of the electricity consumed by S Group from renewable energy by the end of 2025. We will invest in both solar and wind energy in the coming years.

WHY?

Why will S Group invest in its own renewable energy?

THAT IS WHY

By the end of 2016, as much as 50 per cent of the electricity consumed by S Group was produced using the Group's own renewable energy. As the largest retail sector operator, we have a major impact on the emissions in Finland. That is why we will generate 80 per cent of our electricity from our own renewable energy by the end of 2025.

We reduce food waste
We will reduce food waste generated by S Group's own operations by 15 per cent by the end of 2020.

WHY?

Why will S Group reduce food waste generated by its own operations by 15 per cent?

THAT IS WHY

Reducing food waste benefits both the economy and the environment. That is why we will reduce food waste generated by our operations by five million kilograms.

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3

Sustainable production and raw materials We look for ways to develop sustainable production and raw materials.

We only sell fish from sustainable stocks
The fish and shellfish we sell originate from sustainable stocks only.

WHY?

Why does S Group sell fish and shellfish from sustainable stocks only?

THAT IS WHY

Many of the world's stocks of fish are threatened due to overfishing, for example. By only selling fish and shellfish originating from sustainable stocks we ensure that our operations do not further jeopardise the existence of threatened species. That is why we sell fish and shellfish from sustainable stocks only.

We are switching to using certified palm oil
We will use only physical Certified Sustainable Palm Oil in our private label food products and oil used in deep-frying in restaurants by 2021.

WHY?

Why will S Group use only physical Certified Sustainable Palm Oil in our private label food products and oil used in deep-frying in restaurants by 2021?

THAT IS WHY

Palm oil is the most commonly used vegetable oil in the world. The production of palm oil is associated with issues such as deforestation, which threatens the diversity of nature and the habitats of threatened animal species and the local population. That is why it is important that we commit to using only responsibly produced palm oil.

We ensure responsible production of coffee
Our goal is for our private-label coffees and coffee sold in restaurants and hotels to be 100 per cent certified or verifiably responsible* by the end of 2019.

WHY?

Why does S Group work to procure certified and verifiably responsible private-label coffee, tea and cocoa?

THAT IS WHY

Coffee, tea and cocoa are considered risk raw materials. The procurement and, in particular, primary production of risk raw materials are associated with specific challenges in terms of traceability and human rights risks to employees. Responsibility certifications and third-party audits are ways to ensure that the social responsibility requirements that we set for our suppliers are met in practice. That is why we work to procure certified and verifiably responsible private-label coffee, tea and cocoa.

*Verifiably responsible refers to third-party audits in the procurement chain, extending all the way to primary production.

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Openness, transparency and responsibility

Human rights

Diversity

1

Openness, transparency and responsibility Openness, transparency and responsibility are part of our operating culture.

We indicate the country of production
We indicate the country of production of the main ingredients in private-label food products.

WHY?

Why does S Group indicate the country of production of the main ingredients in private-label (e.g. Rainbow and X-tra) food products?

THAT IS WHY

Our customers require transparency concerning the country of production and the origin of the ingredients. That is why we indicate the country of production of the main ingredients in private-label food products.

We publish the factory details
We publish annually the factory details of S Group's private labels and textiles that we import.

WHY?

Why does S Group annually publish the factory details of its private labels and textiles that it imports?

THAT IS WHY

Our customers are increasingly interested in knowing the country of manufacture and origin of the products. By openly providing the details of the factories that manufacture the textiles, we ensure that customers have sufficient information about the products. That is why we publish the factory details annually.

We educate our personnel on ethical operations
We are increasing our personnel's competence in human rights and ethics.

WHY?

Why is S Group increasing its personnel's competence in human rights and ethics?

THAT IS WHY

Human rights and ethics are matters that concern the work of each S Group employee. It is important to learn to identify situations in which these matters are involved. That is why we increase our personnel's competence in these matters.

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2

Human rights We promote human rights in our supply chains.

We place risk countries under scrutiny
We will create a model to promote human rights in high-risk countries by the end of 2019, in addition to supplier audits.

WHY?

Why will S Group create a model to promote human rights in high-risk countries, in addition to supplier audits?

THAT IS WHY

Inspections, or audits, carried out by an independent party are an obvious necessity to ensure responsible production. Together with them, models are needed for strengthening the realisation of labour laws and human rights. That is why we will create a model to promote the realisation of human rights in high-risk countries.

We educate our partners on ethical operations
In order to realise human rights and an ethical operating culture, we will provide training for our partners by the end of 2019.

WHY?

Why does S Group educate its business partners about human rights and ethical operating methods?

THAT IS WHY

Businesses are obligated to ensure that human rights and ethical operating methods are realised, both in their own operations and in their supply chains. That is why we educate our business partners.

We promote workers' freedom of association in risk countries
We will launch a cooperation project to promote workers' freedom of association in high-risk countries by the end of 2018.

WHY?

Why will S Group launch a cooperation project to promote workers' freedom of association in high-risk countries?

THAT IS WHY

Workers' freedom of association is a foundation for the promotion of human rights and rights at work. That is why we will launch a cooperation project to promote freedom of association.

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3

Diversity We promote diversity.

We promote accessibility
We will conduct an accessibility survey and draw up an accessibility programme for S Group by the end of 2019.

WHY?

Why will S Group conduct an accessibility survey and prepare an accessibility programme for S Group?

THAT IS WHY

Everybody should have equal access to and equal opportunities to work at S Group. We are working to ensure the realisation of this by conducting the accessibility survey and preparing the related programme. That is why we carry out the survey and prepare the accessibility programme.

We promote diversity
We promote diversity by means of communication.

WHY?

Why does S Group promote diversity, such as equality and multiculturalism, by means of communication?

THAT IS WHY

Promoting diversity benefits both the employer and the working community. Different viewpoints and ways of working enrich working communities and society alike. That is why we promote diversity.

We support employment among immigrants
We are supporting employment among immigrants by investing (via FIM) one million euros in a fund set up to boost employment.

WHY?

Why does S Group support the prerequisites of employment for immigrants?

THAT IS WHY

Employment is key to the integration of immigrants. That is why we want to promote employment of immigrants.

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We help make healthy choices

We take care of our personnel

1

We help make healthy choices We offer products and service solutions that increase health and well-being and help our customers to make healthy choices.

We encourage the consumption of vegetables
S Group is challenging all Finns to make use of vegetables in a versatile way and offering new, healthful alternatives.

WHY?

Why is S Group challenging all Finns to make use of vegetables in a versatile way and offering new, healthful alternatives?

THAT IS WHY

From a public health standpoint, Finns should increase their consumption of vegetables. Less than 10 per cent of Finns eat the recommended five portions of vegetables, fruit and berries per day. That is why we challenge Finns to use more vegetables and offer new, healthy alternatives, for instance, for the use of seasonal vegetables.

We provide children with opportunities to be physically active
We will increase the opportunities of children and young people to exercise by building 100 outdoor sports fields (‘Ässäkenttä') by 2020. The Ässäkenttä fields will be built in cooperation with municipalities and the Football Association of Finland.

WHY?

Why will S Group build 100 Ässäkenttä fields by 2020?

THAT IS WHY

The foundation of a physically active lifestyle is laid during childhood. Sports and physical activities are an important factor in the everyday life and well-being of children and young people. We provide sports grounds that can be used free of charge to promote physical activities among children and young people. That is why we will build 100 Ässäkenttä fields.

We participate in the Kannustajat programme
Our cooperatives support the operations of local associations in an open and transparent manner through the Kannustajat (‘Supporters') programme.

WHY?

Why does S Group participate in the Kannustajat programme?

THAT IS WHY

The Kannustajat programme is a way for the cooperatives to provide transparent support for the hobbies and activities of children and young people. Co-op members can join as supporters and influence the target and amount of the support the cooperative pays. That is why we participate in the Kannustajat programme.

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2

We take care of our personnel We take care of our personnel's well-being.

We encourage employees to walk or cycle to work
We are testing different ways to encourage employees to walk or cycle to work and to use public transportation.

WHY?

Why is S Group testing different ways to encourage employees to walk or cycle to work and to use public transportation?

THAT IS WHY

As a major employer, we want to encourage our personnel to use transport that generates lower emissions. An active lifestyle also supports coping at work. That is why we encourage employees to walk or cycle to work and to use public transportation.

Our goal is personnel satisfaction
In S Group's work community survey, our goal is to achieve a total result that exceeds the general norm in Finland by a minimum of five points.

WHY?

Why does S Group aim to achieve a total result that exceeds the general norm in Finland by a minimum of five points in its work community survey?

THAT IS WHY

The work community survey measures employee satisfaction. Personnel well-being is a key objective. That is why in the work community survey, our goal is to achieve a total result that exceeds the general norm in Finland by a minimum of five points.

We want young people to have meaningful jobs
We will establish a ‘Nuori mieli' (‘Young Mind') programme in order to increase young employees' work motivation and enable them to feel valued in their jobs. At the same time, we will seek new ways to promote good mental health among the young.

WHY?

Why will S Group promote the ‘Nuori mieli' programme?

THAT IS WHY

We will establish a ‘Nuori mieli' (‘Young Mind') programme in order to increase young employees' work motivation and enable them to feel valued in their jobs. At the same time, we will seek new ways to promote good mental health among the young. Our future lies with the young, and we want to do our part to ensure a future that is as bright as possible. That is why we support the ‘Nuori mieli' programme.

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