Annual Report2013

4.5 // Sustainability

Committed to the environment and community development

Year after year DIA is advancing on its sustainable development model, an environmentally-friendly and transparent business model engaged with society’s development. In May 2013, the Board of Directors made this commitment official by enacting the group’s Corporate Social Responsibility Policy.This policy has materialised in multiple initiatives designed to minimise the impact of DIA’s activities on its surroundings and to make a positive contribution to wealth creation and general wellbeing.

DIA’s Board of Directors approved the group’s high-level corporate social responsibility policy on 6 May 2013. This policy is articulated around eight core lines of initiative:

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In 2013, DIA’s CSR policy materialised in a series of initiatives which go to the heart of the company’s various pledges: commitment to society, respect for the environment and exemplary corporate governance.

4.5.1. Engaged in giving back to society

Job creation

DIA is an engine for wealth and job creation in all its operating markets. In 2013 its worldwide headcount surpassed the 46,500 mark. The store-based headcount rose to 34,878; the number of people working in the group’s warehouses increased to 6,354; while the number of office staff climbed to 5,271.

The company is committed to the provision of stable employment and goes to lengths to identify, nurture and retain talent. Experience and length of service are valuable assets for DIA, especially in terms of its most senior positions: at year-end, the average length of service of its executives exceeded 17 years.

According to the employee satisfaction survey conducted in Spain, Portugal and Argentina in 2013, 84% of employees like their work at DIA and 89% identify with the company’s values

The organisation has proven its ability to accompany its international expansion with successful human capital management. Accordingly DIA upholds its professionals’ individual and collective rights, in compliance with prevailing labour legislation in each of its operating markets, albeit framed by universal guidelines which it applies to all its employees.

In Spain, Argentina and Portugal, the company conducted its first employee satisfaction survey since the spin-off from Carrefour. The success of DIA’s human resource management strategy is evident in the fact that 84% of those polled said they liked their jobs. This survey revealed the workforce’s strong sense of belonging to the company: 89% of those taking the survey claimed to identify with the company’s values, 93% use DIA-branded products and 97% believe they have the energy needed to carry out their daily work.

Quality pledge

DIA guarantees the quality and safety of its products, whether name brands or private label, by means of an advanced quality management program which affects every link in the supply chain.

The company carries out exhaustive audits at its warehouses and in its stores in order to oversee and assess aspects such as hygiene and tidiness, preservation of the cold chain and sufficient restocking of perishables.

Local development

DIA fosters self-employment and entrepreneurialism in all of its operating markets by means of its burgeoning franchise regime and reliance on local suppliers for the provision of fresh products and for the creation of products sold under its private labels.

Of the 4,816 suppliers the company worked with in 2103, 83.5% were local companies that sell their products directly to one or other of DIA’s national divisions.

The company seeks to maintain supplier relations based on mutual trust and collaboration and is convinced that staying in tune with this stakeholder group translates into more benefits for both parties and a better end product.

Community work

On the community work front, the company works on three different lines of initiative: food access, food safety and child protection. To this end, the group collaborates with various associations, NGOs and other charitable entities to carry out projects across a number of countries.

With this goal in mind, it has an ongoing agreement with the Spanish federation of food banks which entails regular food donations in most of its operating markets. DIA hit another food donation record in 2013, delivering a total of 2.85 million kilograms (2,850 tonnes) of food, year-on-year growth of 185%. France was the biggest giver, delivering 1.2 million kilograms (+873%), followed by Spain, at 1.1 million kilograms (+123%), and Portugal, at 375,000 kilograms (+39%).

The procedure used by DIA to fight food waste by directly involving the food banks was named the best practice for representing the retail sector at the most recent ECR Europe congress.

In a pioneering initiative in the retail sector, DIA made its in-house flash sales platform (www.oportunidades.dia.es) available to NGOs and non-profit organisations for the sale of charity hampers at the end of the year. UNICEF, Ayuda en Acción, OXFAM and Médecins Sans Frontières were some of the charities that took part in this initiative.

DIA donated 2.85 million kilograms of food to food banks in its operating markets in 2013, 185% more than in 2012

In 2013, the group’s community work materialised in different campaigns in each country. In Spain the company extended its collaboration with several organisations such as the FEDER, Spain’s rare disease federation. In Portugal, DIA celebrated its anniversary in the market by rolling out 20 charitable initiatives with 20 different non-governmental organisations under the slogan “20 good years, 20 good causes”. In Argentina, in order to mark Children’s Day, the company’s employees organised a toy collection drive dubbed “Donate smiles” for in-patients at the Garrahan Children’s Hospital, participated in a campaign to protest against the government’s plans to shut down public schools and got involved in the donation of emergency kits for the victims of the flooding in La Plata. In Brazil the company organised another drive to collect winter clothes and shoes under the slogan “Don’t let the cold freeze your heart” and toy and blood donation campaigns as well as participating in a Christmas charity drive to collect food, clothing, footwear and toys for various children’s charities. Lastly, in France, DIA’s employees expressed their support for breast cancer by participating in a 6K charity run.

4.5.2. Respect for the environment

Respect for the environment and adequate management of limited resources fall under the umbrella of DIA’s CSR policy. The hallmark lines of initiative in this respect include the efforts underway to reduce the consumption of energy and plastic bags, design innovative product packaging and minimise the company’s environmental footprint.

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DIA’s engaged effort to conserve its natural surroundings is evident in its recent membership of the Spanish Energy Efficiency Business Platform. This platform is an initiative formed by major companies that lead their respective segments; by forming part of this initiative, member companies commit to lead by example in terms of energy efficiency and reducing their carbon footprints. This pledge takes the form of an official commitment at the senior management level and materialises in the development of value-adding proposals designed to foster energy efficiency in society at large.

Energy savings

With the aim of maximising its energy efficiency, the company is gradually implementing next-generation systems and devices for reducing power consumption across its stores and warehouses, increasing the use of renewable energy sources across its establishments and negotiating bulk energy purchases in order to reduce overall costs. In 2013, the company completed the installation of 320,000 LED tubes in Spain and Portugal as part of a project that will help cut carbon emissions by 20,800 tonnes and will be rolled out to France and Brazil next. In addition, the group invested around €5 million to install doors on its refrigeration cabinets in 1,150 stores in Spain as part of an initiative that will translate into energy savings of over 21 million KWh.

Logistics management

With a view to continually improving every link in its supply chain, in 2013 the company forged ahead with its efforts to streamline its logistics processes as well as analysing the environmental footprint of nine warehouses as the first step in a program that will entail the environmental assessment of all of the group´s facilities and operations.

The development of new high-capacity transport formats, the use of boats and trains as alternative sources of transportation and the optimisation of delivery trips to pick up supplier merchandise (back hauling) led to a significant reduction in greenhouse gas emissions.

Reduction in emissions, material consumption and waste

Driven by the conviction that efficient environmental management is a source of competitive advantage, DIA continued to apply eco-design criteria to its product packaging, while fostering reuse and recycling over the use of landfills. It implemented a confidential documentation destruction system in its head offices that increases the percentage of paper recovered for recycling purposes.

Implementation of a waste sorting system in order to facilitate waste management meant that all of the group’s plastic, board and paper waste was recycled in 2013. In addition, high percentages of its scrap (94%), toner (82%) and timber waste (64%) were recycled or reused, thereby preventing the use of landfills.

Credits

Edit:
DIA, S.A.
Parque empresarial de las Rozas - Edif. TRIPARK
C/ Jacinto Benavente 2 A 28232 Las Rozas. Madrid - España

Production and coordination:
DEVA | Comunicación financiera y sostenibilidad

Design:
STROCEN.COM | New Corporate Design

Web development:
efe6 <Rebuilding ideas/>

Translation:
Tara O’Donoghue

Photography:
Jesús Umbría / DIA

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