Cencosud

No leading practices were identified for the company in the governance and strategy measurement area.

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.

Sustainable development strategy
In its 2019 Integrated Annual Report the company discloses that it undertakes a materiality process to identify and prioritise its most relevant sustainability topics. The company describe how it has integrated its material issues into the company’s strategy, but could improve its performance by including topics from all three of the benchmark dimensions in the materiality process and by setting time-bound targets against material issues.

Governance and accountability for sustainable development
The company does not disclose the governance structure for the implementation of its sustainable development strategy or targets, such as the person, team or committee that holds ultimate responsibility for its implementation.

Stakeholder engagement
While the company has conducted stakeholder engagement activities and discloses an overview of the issues raised via these activities, it has an opportunity to disclose how it identifies its most relevant stakeholders, along with information on how the outcomes of the engagement process are integrated into the company’s sustainable development strategy.

Scope 1, 2 and 3 greenhouse gas emissions
The company discloses quantitative evidence to demonstrate that it is reducing its scope 1 and 2 greenhouse gas (GHG) emissions. The company discloses segments of scope 3 emissions in the 2019 Annual Integrated Report but is yet to demonstrate quantitative reductions. The company has an opportunity to improve its performance by setting time-bound targets which cover scopes 1, 2 and 3 and align with a 1.5-degree scenario.

Sustainable fishing and aquaculture
While the company has a commitment to sustainable sourcing of seafood and aquaculture feed ingredients, as the company is aiming for 20% of sales to come from goods with certifications such as MSC and ASC, it has an opportunity to strengthen its commitment by setting targets and reporting against them.

Food loss and waste
While the company is addressing food loss and waste in its own operations, through activities such as its membership of Argentina’s “Let’s Value Food” food loss and waste reduction programme, it has an opportunity to set time-bound targets to reduce food loss and waste across its own operations and supply chain and report against these targets.

Plastic use and packaging waste
The company has set two time-bound targets in relation to plastic use and packaging waste in its Responsible Packaging Commitment. The company’s targets for 2025 are that “100% of our stores have single-use packaging from our own-made sections that are recyclable, compostable, refillable and / or reusable” and “that 60% of the Own Brand products that we make available to our clients have recyclable packaging.” The company could improve by setting clearer targets in relation to plastic use and packaging waste and by reporting progress against targets.

Animal welfare
The company does not disclose that it is addressing key animal and aquatic welfare issues for its relevant key species in its supply chain. It has an opportunity to disclose a commitment that addresses key issues for animal and aquatic welfare across its relevant species, geographies and products.

Antibiotics use and growth-promoting substances
The company does not disclose that it is reducing or prohibiting the prophylactic use of antibiotics and growth-promoting substances for aquatic and farm animals relevant to the company. It has an opportunity to disclose a commitment on antibiotics which addresses the topic across its relevant species, geographies and products.

Availability of healthy foods
The company does not provide evidence of improving the nutritional quality of its products and of proportionally increasing the sales of healthy and nutritious foods.

Accessibility and affordability of healthy foods
The company does not disclose a commitment and activities to improve the accessibility and affordability of healthy foods for vulnerable groups.

Clear and transparent labelling
While the company discloses that it complies with national regulations regarding labelling, and commits to making nutritional information available for all consumers, it has an opportunity to make nutritional information more visible to consumers through the adoption of front-of-pack labels. Currently the company is only committed to front-of-pack labelling for products sold in Chile.

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

Workforce nutrition
The company does not disclose sufficient evidence of having any workforce nutrition programmes.

Food safety
The company does not disclose evidence of ensuring safe food for consumers through compliance with national regulations or the Codex General Principles of Food Hygiene for 100% of operations in all geographies.

Child labour
While the company commits to prohibiting child labour in its own operations and requires its suppliers to adhere to the same standard, it has an opportunity to disclose a policy requiring its suppliers to have an age-verification system in place.

Forced labour
While the company 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 and restricting workers’ freedom of movement.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
The company does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Farmer and fisher productivity and resilience
The company does not disclose a commitment or examples of activities to support the resilience, productivity and access to markets for farmers, fishers or small-scale producers in its supply chain.

Land rights
The company does not commit to recognising and respecting the legitimate tenure rights related to the ownership and use of land of local communities.

Cencosud has a public commitment to respect human rights and the ILO core labour rights, and has a publicly available statement of policy that expects its supply chain partners to commit to respecting the ILO core labour rights. However, the company lacks disclosure of a due diligence process that identifies and assesses human rights risks in its own operations and supply chain. In addition, it does not disclose on how it takes action on salient human rights risks. Finally while Cencosud does provide a grievance mechanism for stakeholders to report human rights issues, it lacks disclose on how it engages with stakeholders whose human rights have been affected.

Cencosud has committed to respecting the health and safety of all workers. In addition, the company has committed to gender equality and women’s empowerment, and discloses on workforce diversity using two different diversity indicators. The company discloses some information in relation to regulating working hours and collective bargaining, but the information does not account for Cencosud’s entire workforce. There is no information in the public domain in relation to the company paying a living wage, which highlights the topic as an area for Cencosud to increase disclosure.

Cencosud has only committed to protecting the personal data of certain groups of people and its privacy statement does not cover its global operations. Moreover, the company does not disclose their tax strategy or their approach to lobbying and political engagement. However, Cencosud does have a publicly available policy statement prohibiting bribery and corruption and provides a mechanism for stakeholders to raise bribery and corruption issues.