X5 Retail Group

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
X5 Retail Group discloses objectives covering sustainability topics related to the three benchmark measurement areas of environment, nutrition and social inclusion, as well as its process for identifying and prioritising its most relevant sustainability topics. The company uses the UN Sustainable Development Goals as its framework, alongside a materiality analysis, for identifying and prioritising the topics. However, no clear time-bound targets for its most relevant sustainability topics, and reporting against them, were found in the public domain.

Governance and accountability for sustainable development
X5 Retail Group has a dedicated sustainability team that implements the company’s strategy and monitors its goals and commitments. This team reports directly to the board. While the company links elements of its remuneration policy to its sustainability strategy, its does not disclose its decision-making process and oversight responsibilities for the overall sustainability strategy, presenting an opportunity for the company in future reporting.

Stakeholder engagement
X5 Retail Group discloses that it undertakes stakeholder engagement activities and provides an overview of the issues raised via these activities. The company also reports on how it identifies and engages with stakeholders across its value chain, as well as the outcomes of its stakeholder engagement and their integration into its sustainability strategy. However, there remains an opportunity for the company to disclose how its stakeholder engagement activities align with all three measurement areas of the benchmark in environment, nutrition and social inclusion.

Scope 1 and 2 greenhouse gas emissions
X5 Retail Group has recently identified its scope 1 and 2 GHG emissions and discloses that it is looking into opportunities for improving operational efficiency and setting annual targets for reducing emissions by 2023. This includes setting a target to reduce scope 1 and 2 emissions and reporting progress against the target through a sustainability dashboard. However, the target is not yet aligned with a 1.5-degree scenario, though the company states that it is looking to set this in the near future through engagement with the Science Based Targets initiative.

Protein diversification
While the company discloses that it is diversifying its protein portfolio by offering more meat alternatives, it has an opportunity to strengthen its commitment by setting targets to increase the production or consumption of alternative proteins.

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

Availability of healthy foods
The company does not disclose a commitment or activities to increase the availability of healthy and nutritious foods.

Clear and transparent labelling
X5 Retail Group has a commitment to comply with national regulations regarding labelling as well as to provide information on key relevant nutrients through its responsible marketing policy. However, it has an opportunity to make nutritional information more visible to consumers through the adoption of front-of-pack (FOP) labels, or any other consumer-facing nutrition label.

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, nor an effective food safety certification scheme.

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 not to restrict workers’ freedom of movement.

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.

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.

X5 Retail Group discloses a commitment to respect human rights. However, it could strengthen its commitment by extending this to its workers through an official policy document rather than its sustainability report. Moreover, the company confirms it has a grievance mechanism for both its workers and external stakeholders. Nonetheless, the company does not provide sufficient disclosure across multiple human rights issues, including a human rights due diligence process that covers the identification, assessment and action plan for the salient human rights risks in its operations and supply chain.

X5 Retail Group commits to health and safety, collective bargaining, workforce diversity and gender equality but lacks disclosure on their implementation and monitoring. Regarding health and safety, the company can improve by disclosing data on work-related injuries within its operations and supply chain. Meanwhile, regarding collective bargaining, the company can report on how it works to support the practices of its supply chain partners in relation to freedom of association and collective bargaining. Moreover, there is a lack of information on regulating working hours and ensuring a living wage for its own workers and workers in its supply chain.

X5 Retail Group discloses information across all indicators concerning acting ethically as a business, including comprehensive disclosure on anti-bribery and anti-corruption measures through its code of business conduct and ethics. However, the company can increase disclosure on the other three indicators. For example, the company can disclose a commitment to responsible lobbying and political engagement by codifying in an official document that third-party lobbyists must also comply with its lobbying and political engagement policy.