Our goals for 2011

Target

To develop and implement national management systems, we will create sustainability teams in the following sales markets by 2005 and provide them with training: Poland, Hungary, Czech Republic, Slovakia, Turkey, Russia and Romania. These teams will work with our corporate responsibility department at our Hamburg HQ to create and implement country-specific sustainability programmes with targets and activities for continuously improving the company’s range of sustainable services.

These will be in force either throughout the entire Tchibo Group or will be added to the targets and activities that Tchibo puts together for the separate national markets. The national sales organisations will develop their own targets and activities for certain issues, in particular ones that relate to their own countries.

Subgoals for 2011

• Nominating and training key contacts in Turkey, Russia and Romania.

• Formation of sustainability teams in Poland, Hungary, Czech Republic and Slovakia.
• Development of national sustainability programmes in all our sales subsidiaries in Eastern European countries.
• Certification of all Eastern European sales subsidiaries for coffee products in line with the standards laid out by Rainforest Alliance, Bio, Fairtrade and UTZ CERTIFIED.
• Membership in or cooperation with at least one national NGO involved in sustainability issues: this will strengthen stakeholder dialogue and the exchange of experience between sectors.

Target

We are working towards a complete changeover from conventionally to sustainably produced coffee. 100 per cent of the raw coffee we use in our products should have transparent origins and be traceable right back to the field it was grown in. At the very least, this raw coffee should be validated in line with the 4C basic standard (Common Code for the Coffee Community) or with other comparable models (certified sustainability), and/or it should meet the requirements of the standards organisations Fairtrade, Rainforest Alliance, Bio or UTZ CERTIFIED (certified sustainability).In aiming for this ambitious target, we want to achieve the first milestone in 2015. We are also defining annual partial goals to be reached in the meantime.

Subgoals for 2011

For projects (Smartsource)

• Complete the Smartsource project in Kenya with certification, so that at least 30 per cent of the beans we use for our African Blue Privat Kaffee variety come from Rainforest Alliance Certified^TM sources again as of end 2011. Since 2009, the necessary quantities were unavailable.
• Complete our two ongoing Smartsource projects in Guatemala: certification is the objective. As of 2012, 100 per cent of the beans we use for our Guatemala Grande Privat Kaffee variety should come from Rainforest Alliance Certified^TM sources. This will be a huge increase: the figure is currently 30 per cent.
• Start an additional Smartsource project in Kenya to increase use of Rainforest Alliance Certified^TM sources. The objective is to make a full changeover for our African sources of required raw coffee.
• Start a Smartsource project in Vietnam to increase use of 4C-validated sources. The objective is to generate sources of raw coffee so that we can make a full changeover from conventionally to sustainable produced coffee.

For products

• Changeover to coffee that is certified as 100 per cent sustainable for our Cafissimo range.
• Changeover of Privat Kaffee varieties to coffee from 100 Rainforest Alliance Certified^TM sources. Due to a shortage of the necessary raw coffee from Africa, our African Blue, Vulkan and Perl products will initially contain a 30 per cent share of beans from Rainforest Alliance Certified^TM sources.

Subgoals for 2011

• Roll out the WE programme along the value chain: 75 strategic suppliers and production sites in Bangladesh and China are in the process of WE qualification.
• Social management system: finalising the concept for the issues of ethical wages and working from home. Taking up an initiative proposed by H&M, we will work with other retail companies to produce films explaining fire safety and what to do in the event of fire to workers and owners of textile plants in Bangladesh. These will be shown during special training courses at Tchibo suppliers’ production sites.
• Implement a multi-stakeholder process with the objective of creating a backdrop of trust for joining unions and negotiating wages at production sites in Bangladesh. The following groups will be included: producers, national trade unions, employee associations, NGOs, the international umbrella organisation ITGLWF and Tchibo purchasers.
• Ethical wages: an analysis of possible effects on purchase and sales prices, purchase quantities and our position vis-à-vis competitors if we adjust pay to ethical levels.

Target

We will continue to do everything we can to strengthen our customers’ trust in our company by means of focusing more on our customers’ needs, delivering the very best in product quality and maximising consumer rights. We will engage in continuous dialogue with our customers so that we can address their needs and, as far as possible, adjust our activities accordingly. Tchibo supports climate-friendly and sustainable consumption. Transparent communication with consumers is a factor in this work, and we want to increase this further.

Subgoals for 2011

• Customer service: we will create a systematic and regular customer satisfaction survey on a national and international level in 2011. We will use this survey to identify issues we want to address and develop appropriate measures.
• Assessment of FCSR (First Contact Solution Rate) on a national and international level. We want to ensure that at least 90 per cent of all customer queries are resolved during the first contact.
• Data protection: expansion of our international data protection management system and incorporation of Eastern European sales subsidiaries.
• Launch online training programme for staff at Tchibo GmbH and German subsidiaries to generate awareness for responsible handling of personal data. All employees should have taken part in the course by 2013.
• Shops: modernise 53 of our approx. 800 Tchibo shops around Germany. We plan to start rebuilding all our German shops in 2012.
• Develop a training programme to enhance the advice skills of our shop staff in Germany.
• Customer dialogue and information: create and use selected social media platforms to encourage honest and constructive interaction with interested and critical end consumers.
• Expand communication and information for customers regarding sustainably manufactured products and all of Tchibo’s main activities relating to sustainability.

Targets

Climate protection

• By 2015, we want our transport-related, tonnage-adjusted CO2 emissions to be at least 30 per cent lower than the baseline figure from 2006 (Tchibo’s first CO2 reading) on a like-for-like basis.

Resources (cotton, wood and woodpulp)

• By 2015, a significant share of the cotton we use in our products should have transparent origins and be traceable right back to the field it was grown in. It should meet at least one basic sustainability standard, e.g. Cotton made in Africa, BCI (Better Cotton Initiative) or a comparable model (possibly still to be developed) such as BMP (Better Management Practices), IPM (Integrated Pest Management – certified sustainability). In annually selected products, the cotton will meet high multi-stakeholder standards, such as Organic Cotton, GOTS (Global Organic Textile Standard) and Naturtextil (certified sustainability).We cannot further specify this target at present, as the amount of sustainably produced cotton in the market is limited. Against this backdrop we are focusing on procuring more sustainably produced cotton and processing it in our products, contributing to encourage supply.

• By 2015, 100 per cent of the wood and woodpulp we use will meet our own FTS standard (Forest Tracing System – certified sustainability). Tropical and boreal hardwoods, magazine and other high-quality paper varieties, e.g. for advertisements, flyers etc., will meet the requirements of the FSC® (Forest Stewardship Council). Office paper will be made from recycled sources and bear the Blue Angel seal (certified sustainability).

Products and processes

• By 2015, 100 per cent of the products in our other ranges of consumer goods will meet the basic profiles laid out in Tchibo Umweltplus. Our Tchibo Umweltplus guideline uses five steps (from basic profile to innovations) to depict the integration of environmental requirements and Tchibo’s quality standards. 

Subgoals for 2011

Climate protection

• Goods transport: further development of the roadmap to reach our CO2 reduction goal of 30 per cent ahead of schedule in 2012 (adjusted for sales and tonnage).
• Business trips: complete the changeover to fuel-efficient vehicles in our car fleet (including VW BlueMotion), thereby cutting the fleet’s average CO2 figure to a value below 130 g/km.
• Energy management systems: creation and implementation of energy management systems at three sites in Germany – at our HQ City Nord in Hamburg, at our roasting plants and at our logistics centre in Gallin.
• Continue existing projects (e.g. BIONOS) and implement new projects such as CPI2 (Carbon Performance Improvement Initiative) and Coffee & Climate to further improve climate friendliness in Tchibo’s value chains.

Resources (cotton, wood and wood pulp)

• Despite a sharp increase in prices for unprocessed cotton, we will maintain 2010’s level of validated and sustainability-certified cotton products: 3.39 million sold units that use Cotton made in Africa and Organic Cotton.
• Create our own system, e.g. CTS (Cotton Tracing System), for more transparency regarding unprocessed cotton’s sources.
• Further specify our target for using cotton produced under ecologically and socially responsible conditions.
• Develop a 2015 roadmap for successively changing over from conventionally to sustainably produced cotton.
• Apply the FTS standard to all wood products.
• Join the Global Forest & Trade Network of the WWF (World Wide Fund For Nature)
• .Create the foundations for fully changing magazine paper to FSC®-approved sources (Forest Stewardship Council) and changing office paper to recycled paper with the Blue Angel seal in 2012.

Products and processes

• Finalise our Tchibo Umweltplus requirement profiles for improving the environmental qualities of our other products and processes; start integration with Tchibo’s quality standards.

Target

1. We want to strengthen and develop our corporate culture, and we will therefore continue to support the career development of all our employees and programmes to raise their skills levels. The Human Resources Development unit was set up in HR at the beginning of 2011. It aims to promote personnel development and training.

2. Since 2010, we have been the first nationwide retail company in Germany to receive certification as a family-friendly company from the berufundfamilie foundation. We agreed a plan of action with the foundation and have since then been implementing it step by step. By our target year 2015, we will improve the work-family life balance for all Tchibo employees regarding issues such as childcare and caring for family members.

3. We will support the retention of voluntary social programmes even if the economic climate deteriorates – it is our way of acknowledging the work and commitment of our employees.

Subgoals for 2011

• Employee engagement: prepare an employee survey we want to carry out in 2012.
• Introduce Tchibo’s management dialogue to help managers establish systematic interaction with their staff and develop pragmatic solutions to improve their management skills and strengthen cooperation.
• Workplace safety: We will create an occupational safety handbook for our City Nord location.
• Expand targeted, health-promoting measures to further advance a comprehensive health management system at Tchibo. Integrate measures relating to the prevention of burnout and raise management’s awareness of this condition.
• Career and family: we will continue to support working parents, for instance by creating ten more children’s daycare places at playschools run by Hamburg’s daycare association, Vereinigung Hamburger Kindertagesstätten. The first places will be available as of January 2012. We will also promote the compatibility of family and career in other areas: There will be a substantial improvement regarding care for family members who require attention – we will create a concept that includes key information about care for the elderly, legal issues associated with healthcare provision, care services, jobsharing, part-time managerial positions, sales rep work and part-time work.
• Part-time managerial positions: introduce part-time work for management staff as part of a company agreement.
• Social benefits: We want to retain our voluntary social benefit schemes even if the economic environment should deteriorate.
• Internal social responsibility: revise the framework and extent of our corporate retirement provisions. We plan to launch this in 2012.

Target

As part of our activities within the changeover from conventionally to sustainably produced coffee and cotton production, we want to launch at least 20 education projects.

Subgoals for 2011

• Continue the schools project we began in Benin in 2010 as part of our Cotton made in Africa activities. At least 30,000 school uniforms and 10,000 books for primary school children will be provided by 2013. Other measures include the construction of six new schools, installing electrical connections or solar energy at ten schools, and creating and fitting out ten school canteens, complete with their own vegetable gardens and wells for drinking water so students have a good nutritional supply.
• Start a collective project in Kenya as part of our Smartsource activities for developing and procuring raw, Rainforest Alliance CertifiedTM coffee. The project will strengthen the role played by farming women in society, especially by means of educational opportunities and helping them access additional sources of income.
• Continue our project in Guatemala as part of our Smartsource activities for developing and procuring raw, Rainforest Alliance CertifiedTM coffee. The project focuses on age-appropriate care and educational opportunities, in particular for migrant labourers’ children. This will give them an alternative to helping their parents on the coffee harvest and contribute to implementing the ILO’s key work standards (ILO = International Labour Organization).