Sustainability

The companies of the TKM Group consider the introduction of the principles of responsible entrepreneurship important in their daily activities. Through several support projects, various areas of Estonian life are promoted and contributed to the development of the community and the improvement of people’s quality of life.

In planning its activities, the Group is guided by four main directions that support the fulfilment of the United Nations Sustainable Development Goals. The 169 sub-objectives of the Sustainable Development Goals have been taken into account in determining the focus topics, in particular by contributing to the goals for which the impact of the activities of the group companies is significant.

Ecological environment

TKM Group values ​​the principle that environmentally friendly activities are the basis for creating an efficiently functioning environment and a sustainable society. The Group’s long-term goal is to coordinate the ecological footprint of its operations with the Paris Climate Agreement.

CO2 footprint

 

Group carbon footprint, absolute emissions 2018

basal year

 2022

 

 2023

 

 2030

goal**
Scope 1, tons of CO2* 11 600 15 800 17 600 -60%
Scope 2, tons of CO2* 83 200 29 100 24 700 -75%
Total, tons of CO2* 94 800 44 900 42 300 -73%

 

Group carbon footprint intensity: scope 1, 2 2018
basal year		 2022

 

 2023

 

 2030
goal**
tons of CO2*/  per number of employees 21,73    9,56 8,95    6
tons of CO2*/ m2    0,41    0,18 0,17    0,11

 

Group carbon footprint, waste 2022
basal year		 2023 2030
goal**
Scope 3  waste , tons of CO2* 2300 1965 -7%

*CO2 equivalent
** compared to the base year

  • Direct emissions from companies have been measured according to the GHG Protocol standard and an action plan to achieve carbon neutrality is being prepared.
  • To reduce the carbon footprint, the primary focus will be on reducing direct emissions, or scopes 1 and 2 – vehicle fuels, refrigerant leakage, heating and electricity.
  • Scope 3 or indirect emissions – waste, products bought and sold, logistics, business travel, etc. – are gradually added to the calculations.
  • From September 2021, 100% of electricity produced from renewable sources will be consumed in the Group’s retail, storage and production facilities.
Renewable energy proportion of Tallinn Kaubamaja Group 2018
basal year		 2022 2023  

2030
goal

 
Proportion of electricity from renewable sources (%)* 0% 44% 50,55%*   55%

*2022 renewable sources, 2023 nuclear energy

Waste and materials

  • 100% of the paper and film packaging waste generated in the Selver chain store is recycled. Selver uses a Bepco box system to reduce transport packaging. In order to reduce transport packaging, Selver and Kulinaaria use the Bepco crate system.
  • I.L.U., Selver and Kaubamaja shopping bags are made of 90-100% recycled materials.
  • Kulinaaria uses rPET salad boxes made from 100% recycled plastics, reducing the amount of plastic in primary production by nearly 50 tons per year.

Supply chain

  • When purchasing products and services, the principles of environmentally friendly procurement are followed, if possible, Estonian products are preferred.
  • In 2022, the Group had a total of 2808 suppliers. 42% of the goods were of Estonian origin, and the corresponding figure for food products was as high as 60%.
  • The Group’s own-brand products accounted for 0.92% of the product portfolio, of which 0.01% was purchased from countries with high social risk.

Social environment

TKM Group apprehends its role and responsibility as an entrepreneur and is aware of the impact of its activities on society. The Group’s shopping centres and stores are important community centres around which a number of important services to society are concentrated. The purpose of the Group’s personnel policy is to value, develop and retain the Group’s employees in accordance with uniform principles, which include personnel management and planning, a well-thought-out recruitment and selection process, and subsequent purposeful and motivating development. It is based on the principle that success is based on loyal, committed, ethical and results-oriented employees, and it is considered important to create a supportive work environment.

Supporting sports

  • Selver supports the football club FC Flora, the Estonian Ice Hockey Association and the ice hockey club Tornaado, and is the name sponsor of the volleyball club Selver Taltech.
  • Viking Motors supports biathletes Kalev Ermits and Regina Oja, tennis player Maria Lotta Kaul, shot putter Jander Heli, disc golf player Rasmus Metsmaa, as well as the ORU RC model track and AT Sports Club.
  • – Kia Auto supports the sports and recreational activities of the Haapsalu Children’s Home through the NGO Spordiselts Haapsalu, as well as the extreme sports competition Simple Session, where the world’s top skaterboarders and BMX riders compete, ski jumper Arti Aigro, disc golf player Kristo Raik, rower Liisa Marie Lääne and decathlete Janek Õiglane.
  • Viimsi Centre is a long-term supporter of Viimsi / Sportland Basketball Club, Viimsi Football Club, Viimsi Martin Reim Football School and CFC Sports Club

Valuing Estonian culture

  • Kaubamaja supports the organizing of youth fashion events by helping to fill the prize tables and is the main sponsor of Estonia’s most prestigious fashion design award Kuldnõel and Tallinn Fashion Week. Kaubamaja’s Tallinn store in the Naistemaailm (Women’s World) has a special section dedicated to Estonian fashion designers.
  • Kaubamaja, Selver and Partner Card support almost a hundred cultural projects every year through their marketing channels – mainly theatre performances, concerts and summer events outside the big cities.
  • The department store is a long-term supporter and cooperation partner of KUMU.
  • Selver supports cultural projects and community events mainly outside big cities, with Selver’s grants in 2022 amounting to more than €250 thousand.

Welfare of workers

  • Kaubamaja’s in-house training offers high-level service and teamwork training.
  • Kaubamaja and Selver joined the Diversity Agreement in 2012 and Kaubamaja has the Family-Friendly Employer label and Kaubamaja has been awarded the Silver Level of Family Friendly Employer.
  • In order to train new employees and increase the efficiency of the induction period, the Group has established training programs conducted by long-term specialists. A mentor is assigned to new leaders and a mentoring system is in place to support them. The development and motivation of employees is ensured by an assessment system of competence levels that is in line with the core values ​​of the companies and the competence models of the positions.

Contributing to the development of Estonian society

  • Taxes paid by the Group’s companies to the state and local governments in 2022 totalled 78.2 million euros.
  • Selver has been organizing the charity project Koos On Kergem for 20 years, in the framework of which money is donated to support the children’s and maternity departments of hospitals.
  • In cooperation with the Recycling Centre, stationary collection points for used clothes and shoes have been opened in Kaubamaja to recycle items.
  • Selver is a supporter of the Farmer of the Year competition.
  • The department store has been actively cooperating with the NGO My Dream Day for years to offer joy to the children who miss it the most.
  • Kia Auto cooperates with Viljandi Vocational Training Centre, providing various automotive equipment units for training.
  • Culinary works closely with the Astangu Coping Centre to increase the employment of people with special needs.
  • Selver cooperates with many small Estonian producers and offers them marketing assistance.
  • Tartu Kaubamaja has supported the renovation of a children’s playground in the centre of Tartu and has supported the support campaigns of the University of Tartu Children’s Fund, providing the foundation with permanent advertising space in the centre.
  • Viimsi Centre has long-term cooperation with the Estonian War Museum, Viimsi Youth Centre and the Viimsi JazzPopFest Festival, and also supports local sports clubs and hobby schools and cultural groups by offering free advertising space, performance opportunities and supporting various projects and events.
  • I.L.U. has supported various projects related to the well-being of people with special needs and difficulties in coping. Cooperation with the charity fund “For a Smile” to support the dental care of women victims of intimate partner violence. We also co-operate with beauty brands in selling charity products in their stores.

Healthy food and food donation

  • Selver has cooperated extensively in recent years. with charities Shalom, the Food Bank, the SAK Foundation and church congregations to donate food to families in need. Selver consistently supports the Alaveski animal parks and Tartu animal shelter. In 2022, Selver donated a total of around 730 tons of food.
  • In cooperation with the Food and Fermentation Technology Development Centre, Culinary created soups that support health and are enriched with useful nutrients and vitamins

Development and innovation

In order to promote development and innovation, the companies of the TKM Group cooperate with various universities and organizations. The principles of automation and smart house, creating comfortable solutions for customers and improving the quality of products are important.

  • In Kaubamaja and Selver, it is possible to waive the paper sticker when weighing fruits and vegetables and use a self-service remote to store information from the screen of the scales. All purchases of Partner Card customers are stored in a self-service system that allows customers to opt out of paper receipts.
  • A completely modernized culinary production system has introduced a new packaging system that increases the shelf life of products without the need to add preservatives.
  • Viking Motors has introduced a service solution that allows customers to receive cars from service or repair without contact at any time.
  • The Partner Card comes with the Partner Card app, which can be used as a shopping remote, view personalized discounts, keep track of shopping vouchers, view shopping bonuses and much more.

Management

TKM Group operates in accordance with the Financial Supervision Authority’s Corporate Governance Code, the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

  • The Group has a Code of Ethics for the Group.
  • It is based on ethical, fair and transparent business conduct and measures are taken to facilitate it (procedures, guidelines, agreements, declarations, etc.). The Group’s internal audit department monitors the transparency and compliance of activities.
  • In order to raise awareness, the Group regularly conducts both internal and external trainings to raise the awareness of both members of the Management Board, management, and employees about the prevention and avoidance of corruption.

TKM Group Sustainable Development Strategy 2023-2030

  • To manage sustainability, the Group has a Sustainable Development Strategy 2023-2030, which sets focus and long-term measurable objectives to ensure synergy between business success and the natural and social environment.
  • The strategy document is the guiding document that is used as a basis for both short- and long-term decisions. Sustainable development issues are discussed quarterly by the Group’s Supervisory Board and the strategy is monitored by the Group’s Internal Audit department.