Metro AG

Sustainable development strategy
METRO demonstrates leadership in this topic by sharing its materiality process. It discloses objectives which address the three measurement areas under assessment in the benchmark (environment, nutrition and social inclusion) as well as its process for identifying and prioritising its most relevant sustainability topics through a materiality matrix. Moreover, the company discloses time-bound targets for its most relevant sustainability topics and reports progress against them. These topics and targets cover the entire value chain of the company.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Governance and accountability for sustainable development
METRO discloses having committees within the company that are responsible for the implementation of its sustainable development strategy. It also discloses that accountability for and oversight of its sustainability strategy lies with the highest governance body. Moreover, the company provides an overview of its decision-making process as well as its highest governance body’s remuneration policy regarding sustainability. Nonetheless, the company could improve further by linking all three benchmark measurement areas to its remuneration policy.

Stakeholder engagement
METRO discloses some stakeholder engagement activities. However, the company does not provide an overview of the issues raised via these activities per stakeholder group, the means of engagement or how it has identified and chosen the stakeholders it engaged.

Scope 1 and 2 greenhouse gas emissions
METRO has a target to reduce scope 1 and 2 GHG emissions by 60% per square metre sales and delivery area by 2030, compared to a baseline year of 2011. The target is consistent with the reductions required to keep warming to well below 2 degrees and is approved by the Science Based Targets initiative (SBTi). The company also reports progress against the target annually. Nevertheless, it could improve by updating its target to align with a 1.5-degree trajectory.

Plastic use and packaging waste
METRO has time-bound targets to reduce plastic use, including phasing out PVC, PVdC and EPS in its own-brand packaging and reducing use of conventional packaging by 2023. It also provides examples of efforts to reduce plastic use in its operations. However, no quantitative evidence of progress against the targets was found in the public domain, presenting an opportunity for the company in future reporting.

Animal Welfare
METRO has an animal welfare policy that addresses animal welfare issues and applies to all geographies, products and relevant species, including for the company’s supply chain. Moreover, the company has time-bound targets that addresses specific animal welfare issues per key species within its business. However, the company does not currently report progress against these targets and does not provide sufficient evidence on implementing its third party auditing or certification process, providing an opportunity for the company for future reporting.

Availability of healthy foods
METRO reports that it is improving the nutritional quality of its products by reducing the sugar and fat content and provides quantitative reporting of progress against a target year. However, the company can improve its performance by setting a percentage target for healthy foods in its portfolio and providing a clear definition of how it defines healthy food.

Clear and transparent labelling
While METRO is active in the food retail segment and thus has an important role in ensuring clear and transparent communication regarding product information, it does not disclose that it provides nutritional information through clear, transparent and accurate labelling.

Responsible marketing
The company does not disclose a responsible marketing policy, nor specific guidelines for marketing to children.

Child labour
METRO indicates it will not use child labour in its own operations or supply chain. The company also requires its supply chain partners to verify applicants’ eligibility to work and comply with national legislation. Moreover, the company shares its monitoring process for its supply chain partners. However, it could improve by disclosing the monitoring process for its own operations as well.

Forced labour
While METRO commits to prohibiting forced labour in its own operations and supply chain, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents.

Living wage
METRO states that its ambition is to pay a living wage by 2030, and it prefers the Anker Methodology when defining a living income. However, it is not clear whether this ambition covers the full supply chain. Moreover, no time-bound target or commitment to pay a living wage across the company’s operations was found. METRO has an opportunity to strengthen its ambition by setting a clearer target and further defining its scope.

METRO provides a grievance mechanism for workers and external parties and publicly commits to respecting both human rights and the rights of workers in its own operations and supply chain. However, the company does not provide sufficient disclosure on the remaining indicators related to respecting human rights. These include identifying and assessing human rights risks and impacts and disclosing how the company integrates and acts on these as well as the process for engaging with affected and potentially affected stakeholders.

METRO provides public disclosure on most indicators related to providing and promoting decent work. This includes disclosing a publicly available guidance document regarding working hours, health and safety fundamentals, collective bargaining arrangements for workers and statements on gender equality. However, the company could improve its performance by increasing its level of disclosure on key metrics, including expectations for its suppliers to respect working hours and detailing the main types of work-related injuries in its operations and supply chain. Lastly, while the company demonstrates how it determines a living wage, it does not disclose sufficient information concerning workforce diversity.

METRO discloses public information across most indicators related to ethical business conduct. However, it could improve by increasing the level of disclosure on key metrics. Regarding tax, the company could increase the level of disclosure on taxes paid in the relevant jurisdictions in which it operates. Regarding data protection, it could extend the coverage of its data privacy policy. Moreover, the company could increase its disclosure on which stakeholders its grievance mechanism is accessible to when bribery and corruption are found. There is also insufficient public information available regarding responsible lobbying practices, notably policy statements or policies setting out the company’s lobbying and political engagement approach.