Sustainability Report 2010

Sustainability report 2010
ABOUT THIS REPORT
ABOUT THIS REPORT

This first sustainability report produced by KiK Textilien und
All qualitative and quantitative statements contained in
Non-Food GmbH attests to the commitment the company
this report have been approved, following careful review and
has made to sustainability during 2009 and 2010. Where
checking of the data, by the relevant departments within KiK.
available, data from 2007 to 2009 has also been included in
In addition, two independent, expert consultants have revie-
quantitative statements.
wed and evaluated the content of the report. The results of
This report is limited to the activities of KiK Textilien und
this review can be found on page 90 of this report. Having
Non-Food GmbH Deutschland, KiK Logistik I GmbH, based
consulted the G3 grid of the Global Reporting Initiative,
in Bnen and European subsidiaries outside Germany. In
these external consultants have given the content of this
accordance with the Global Reporting Initiative (GRI) indi-
report an A+ rating.
cator protocol, companies that fall within the scope of the
In its present form, the report is intended for interested
report are referred to as significant locations of operation.
consumers, NGOs active in the fields of environment and
The report boundary is mainly relevant to the action areas of
social issues, decision makers from politics, legislation and
Employees and Locations.
suppliers, as well as other statutory bodies and associations.
Given the indirect yet significant impact of KiKs operations
It is published in German and English. To communicate di-
on suppliers and importers, the nature of these commercial
rectly with our customers on the issues addressed in this
relationships is also explained and documented. The report
report, we will shortly be publishing an abridged version. To
boundary therefore includes extended supply chains. These
make the report easier to read, the masculine form is gene-
are principally relevant in terms of the Supplier and Pro-
rally used when referring to people. In all such instances, we
duct strategic action areas.
are referring to both men and women.
The origin and definition of the four key action areas are
Our plan is to issue reports every two years. The next sus-
explained in full in the Strategy and management section,
tainability report will be published in 2013, covering the years
taking into account the three dimensions of sustainability.
2011 and 2012. The deadline for information included in the
One section of the report is devoted to each area, detailing
current report was 30 September 2011.
what we have done operationally to promote sustainability.

Throughout, we directly address critics of our company.
Each of the four main sections of this report concludes with
an overview of the actions we intend to take in the short and
medium-term. In addition, the report details the overarching
strategic goals we are pursuing in our efforts to ensure sustainability and in doing so sketches out the way forward.
The 2010 KiK Textilien und Non-Food GmbH sustainability
report has been put together by the companys Corporate
Social Responsibility (CSR) department, taking into account
information provided by all other parts of the company. To
facilitate comparison, we have adhered to the current Global Reporting Initiative (GRI) guidelines in gathering the data
and establishing the content and structure of the report. The
editorial content of the report and the preparation of the data
has been the subject of close consultation between our CSR
and Communications departments.
K IK SUSTAINABILIT Y REPORT 2010
About this report

Publisher:
KiK Textilien und Non-Food GmbH
Dr. Michael Arretz
Managing Director CSR, Communications, Quality
Siemensstrasse 21
59199 Bnen
Phone: (+49 0) 2383 95 49 01
michael.arretz@kik-textilien.com
Contact:
Petra Katzenberger
Head of CSR
Siemensstrasse 21
59199 Bnen
Phone: (+49 0) 2383. 95 41 43
petra.katzenberger@kik-textilien.com
This report has been printed by Drucktechnik Altona using solvent-free printing colours on Enviro Top Recycling, Blue Angel-accredited recycled paper.
All printing was CO2 neutral.
Photography: Jochen Rolfes
Design: Elbe 17 Ulrich Mevs Kommunikationsdesign
Legal disclaimer:
This sustainability report contains statements about future developments that are based on assumptions. We can issue no guarantees as to whether these
assumptions will prove to be correct. KiK Textilien und Non-Food GmbH assumes no liability and issues no guarantee in respect of any variations that may occur
or for potential editorial errors. In the event of a discrepancy between the German and English versions of this report, the German version shall prevail.
CONTENT S
CONTENTS
About this report
Section 1 Company profile
Page 3
KiK an idea that works

Page 8
Foreword by Stefan Heinig

Page 6
Foreword by Dr. Michael Arretz
Section 2 Strategy
Page 7
and management
What we understand by
sustainability
Page 12
Section 3 Open dialogue
Were being open and
reporting on our activities
Page 18
Section 4 Suppliers
Our partners
and sustainability
Page 22
Section 5 Products
Efficiently packaged
and shipped
Page 34
Section 6 Sites
Facts and figures
From our European
Page 60
headquarters to point of sale

Page 44
GRI Content Index

Page 82
Section 7 Employees
Glossary, abbreviations
Motivated and well trained
and external sources
Page 52
Page 88
Independent auditors
report
Page 90
FORE WORD BY STEFAN HEINIG
DEAR READER,
I am delighted and proud to present our sustainability report
our sustainability programmes plus a mid-term plan with 13
for the year 2010.
overarching aims. In addition, we have adopted a long-term
For the first time in the history of our young company, we are
vision that, among other things, involves developing premi-
giving you a comprehensive insight into how we approach
um suppliers in the markets where we source our goods.
and deal with the issues of sustainability in our business. We
We work with these suppliers on key points such as reducing
are doing this to show that the world of discount clothing
pollutants, exploring the potential for energy savings in ma-
despite what many of its critics might say is compatib-
nufacture, and developing wage settlements that are above
le with responsible corporate practice in respect of people
the minimum legal wage.
and the environment. We also want to show that our com-
We do everything in our power to develop and implement in-
mitment to sustainability is more than just an exercise in da-
itiatives at all three levels in as straightforward and solution-
mage limitation, and that we are working constructively and
driven way as possible. We wont deny that this is an enor-
proactively to raise social standards in a global context, be
mous challenge for us. We also wont deny that were close
as economical in possible in our use of raw materials and re-
to the limits of what we can do. This spirit of openness is
sources and to do everything we can to reduce greenhouse
combined with a desire to objectify the debate instigated by
gas emissions.
critics of the textile chain, including retail and the influence
When we set up KiK in 1994, we were not only founding a
they may have, often unjustifiably.
new company we were inventing a new retail format. Our
In our 2010 sustainability report, employees, colleagues and
aim was to make everything as simple and compact as pos-
members of the management board speak out on behalf of
sible from procurement to sales. Ensuring that all our busi-
all members of our staff: young, highly motivated people,
ness processes are in line with this strategy has proven to be
seasoned and experienced professionals all of whom work
the key to our success.
with us in an environment in which team spirit and fair play
We take the same approach to sustainability. Given the chal-
are key, and each and every one of them demonstrates their
lenges presented by the global economy dwindling resour-
dedication and commitment to the company. The success
ces, rising energy prices, the growing gap between the de-
of KiK is down to the efforts of all these people, and I would
veloped and emerging world paying proper attention to the
like to take this opportunity to express my sincere gratitude
issue of sustainability has become socially, ecologically and
for that!
economically essential. We introduced our first initiatives in

2006 and, by setting up a department for Corporate Social
Responsibility in the following year, under the leadership of
our head of procurement, established the issue as key to our
interests as a company. In 2010, we created a standalone
management arm for the areas of CSR, Communications
Stefan Heinig
and Quality, becoming the first to do so in our industry. Em-
CEO and Chairman of the Board
bedding sustainability as an issue among our companys top

managers ensures that our sustainability strategy is implemented with the force and support of all management-level
decision makers. We pursue a range of short-term goals to
achieve these we have developed 111 initiatives as part of
FORE WORD BY MICHAEL ARRE T Z
DEAR READER,
Can discount retail ever be sustainable? Can selling low-
be pleased to receive any suggestions, ideas or tips that you
priced consumer goods be compatible with ecological, eco-
may feel appropriate. Write to us at csr@kik-textilien.de.
nomic and social responsibilities? For me, this question isnt

easy to answer. On the one hand, the principles of efficiency
We look forward to hearing from you.
that are key to the discount business, the art of cutting out
unnecessary cost, allow for potential savings at all levels. We
use as little packaging material as possible, consume energy as sparingly as we can, use transportation by sea vessels
and go without extravagant fixtures and fittings in our stores
meaning that we use fewer resources, save energy and, at
Dr. Michael Arretz
the same time, emit fewer greenhouse gases.
Managing Director CSR, Communications, Quality
Thats a good starting point for creating sustainable business processes. But doing business sustainably means a lot
more than that: we also consider the people who, directly
or indirectly, work on our behalf. We constantly refine our
ranges to ensure that we are offering our customers even
better products.
To achieve, maintain and improve results under such circumstances, a discount business needs to have clear goals, efficient processes, well-defined responsibilities and meaningful performance indicators in order to measure its success.
The way we approach these challenges at KiK is detailed
here, in our first sustainability report. At the centre of the report is an extensive stock-take where we provide information
about all our operational goals and the measures we have
put in place to achieve them. We tell you about what we have
achieved so far, and what we have yet to achieve. We sketch
out plans and ideas. And we do all this in an open, honest
and transparent manner.
Almost 20 years after the world summit took place, in Rio in
1992, the realisation that environmental problems and social
issues cannot be viewed separately from each other has lost
none of its relevance. In the face of disappearing animal species worldwide, climate change, the inequitable distribution
of wealth and the growing scarcity of resources, consideration of this paradigm has become a pressing task with farreaching consequences. Thats why it is so important for us
to constantly improve, in everything we do. We will therefore
KiK an idea that works

The creation of Germanys first discount clothing retailer, 17 years ago, under the
motto KiK Kunde ist Knig (KiK where the customer is king) saw the
first strategic application of the principles of discount retail to the textiles and clothing
industry. And the beginning of the success story that is KiK.
KiK Textilien und Non-Food GmbH was founded in 1994
Textilien und Non-Food GmbH. There are no other opera-
by the Tengelmann group and Stefan Heinig as a retail
ting companies or joint ventures.
chain selling low-priced clothing. Tengelmann holds a

majority stake in the company.
Until 2010, KiK was headed by a four-man management

board under the leadership of Stefan Heinig. In 2010, a
In 1998, KiK expanded into Austria, in 2007 to the Czech
fifth management division was added to deal with the
Republic and Slovenia and in 2008 to Hungary and Slo-
CSR, Communications and Quality departments. Based
vakia. Its first Croatian stores opened in September 2011.
at the companys European headquarters, the manage-
Expansion into Denmark started in the year 2000 but en-
ment board oversees all activities of KiK Textilien und
ded two years later, the business model having failed to
Non-Food GmbH, including all its subsidiaries.
establish itself in the Danish market.
Management meets once a month. All key decisions
The foreign companies in these countries, and KiK
reached by simple majority are communicated to staff by
Logistik GmbH, based in Bnen, are subsidiaries of KiK
the individual managing directors, via the divisional and
1 compan y PROFILE
Subsidiaries of KiK Textilien und Non-Food GmbH
KiK Logistik l GmbH,

Germany
KiK Textil und Non-Food

spol. s r.o.
Slovakia
KiK Textilien und Non-Food

Ges m.b.H.
Austria
KiK Textil s Non-Food Kft.

Hungary
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Slovenia
KiK Textil Sp. z o.o.

Poland
KiK Textil und Non-Food

spol. s r.o.
Czech Republic
KIK TEXTILIEN
UND NON-FOOD d.o.o.
Croatia
departmental heads. Staff suggestions and ideas are

also communicated to the board via the departmental
and divisional heads.
The sale of textiles makes up approximately 75% of
KiKs overall turnover. Alongside many items that form
part of the basic range, KiK also sells fashionable clothing
for men, women and children. Non-food products such
as gift items, toys, accessories and household textiles
account for around 25% of sales. The range includes a
total of 285 product categories. Categories are defined
as all products with a common characteristic; it is impossible to put a figure on the number of individual products.
In 2010, sales amounted to 1.66 billion euros, equivalent to an increase of 2.1% (or a currency-adjusted 1.9%)
versus 2009. This lower growth compared to the previous
KiK Textilien und Non-Food GmbH with its subsidiaries
year can principally be put down to the financial and economic crisis affecting central European countries (Slovenia, the Czech Republic and Hungary) and negative
conditions in the source market from the second half of
in Germany, as well as a minimum full-time basic wage
the year. Poor harvests and a sharp increase in the price
of 1,500 euros per month, also affected earnings before
of raw materials led to bottlenecks in the availability of
taxes.
goods and, as a result, a shortfall in sales. Nevertheless,
Substantial sales growth was achieved as a result of
KiK was able to achieve solid earnings before taxes for
store expansion in Hungary (+1.7%), Slovenia (+12.8%),
the 2010 financial year. It should be mentioned that the
the Czech Republic (+23.2%) and Slovakia (+101.8% all
introduction of a minimum wage of 7.5 euros per hour
figures currency adjusted).
Stefan Heinig
CEO/Chairman of the Board
Heinz Speet
HR
Mechthild Gottkehaskamp
Procurement
Darius Kauthe
Finance/Administration
Dr. Michael Arretz

CSR/Communications/
Quality
Steffen Rosenbauer
Sales/Marketing/
Expansion/Foreign Sales
The management board of KiK Textilien und Non-Food GmbH
Sales (in million euros)

Stores
Employees
Germany
Austria
Czech Republic
Slovakia
Slovenia
Hungary
Total
1,346.70
191.4
54.2
22.2
31.8
17.9
1,664.20
2517
250
120
42
41
55
3025
16,980
1393
777
273
223
363
20,009
3,025 stores and 20,009 employees, generating sales of 1.66 billion euros
KiK is a conventional retail company that acts as an
nine months before they are required, giving suppliers
intermediary between its retail partners and the end con-
the opportunity to make better use of free capacity in
sumer. The majority of the goods we sell around 70%
their factories.
are purchased and imported by us from the countries
The fact that most of our goods are also imported
in which they are manufactured, principally China and
directly, without the intervention of intermediaries, is a
Bangladesh. Alongside local suppliers, our retail part-
further part of our strategy to help keep down costs.
ners also include importers that deliver goods free to our

doors.
An economical packaging policy that focuses on using

as few resources as possible, in addition to a transport
KiK ranks as one of the ten largest operators in Ger-
strategy based almost exclusively on importing goods
man retail and is one of the countrys biggest sellers of
from Asia by sea, also generating cost benefits. At the
discount clothing.
same time, the consistent use of shipping, as opposed to

transport by aircrafts, helps us significantly reduce our
THE DISCOUNT BUSINESS MODEL
CO 2e emissions.
Last but not least, in all our stores, the focus is on pre-
When the company was founded, the idea was to trans-
sentation of the products. Only in exceptional cases
fer the principle of discounting already applied in food
such as with American t-shirts and vests do we use
retail to the textile industry, to be able to offer quality
product packaging. Most of the items we sell are pre-
clothing at similarly low prices. KiK was conceived as a
sented hanging on stands. The stores themselves are
local, basic clothing supplier, designed for anyone who
designed according to a simple, practical and functional
needed or wanted to spend their money carefully, close
concept that we are currently in the process of discreetly
to where they lived. With over 2,500 stores in Germany,
upgrading.
we are well on our way to achieving that goal.

We offer our clothing and non-food ranges at everyday
EXPANSION AND STORE DEVELOPMENT
low prices: to this day, customers can come out of a KiK

store with a new outfit for less than 30 euros. Thanks to
Many factors must come together to be able to offer
consistent application of the discount business model,
good quality at relatively low prices in the clothing retail
this pricing policy allows for:
business. KiKs success can be put down to the expert
A range of which around 70% is basic items in standard
way in which it has transferred the rules of discount retail
sizes and colours, available all year round. These items
to clothing. The success of our company is proven by its
are manufactured in large quantities and ordered up to
dynamic growth since it was founded 17 years ago. We
10
Number of stores
1 compan y PROFILE
3.500
3.000
2.500
2.000
1.500
1.000
10
20
09
20
/0
08
07
/0
/0
06
/0
05
/0
04
/0
03
/0
02
01
/0
/0
0
/0
99
00
9
/9
98
8
97
/9
/9
96
/9
95
94
93
/9
/9
500
Continuous store expansion, a hallmark of KiK
opened our first store in Dsseldorf-Gerresheim on 10
training programme with us. Over 49% of these trainees
March 1994 with over 100 further openings during the
remain active in the company to this day, around 900
first year of business. Since then the company has conti-
of them in management positions. Fundamentally, as a
nued to grow, with a new KiK store opening almost every
trainer and employer, we see our task as offering oppor-
day somewhere in Europe.
tunities to those already working with us and those who
Whilst closing 105 stores, we succeeded in expanding
apply to work for us. By way of certified training program-
our network by 130 stores in six European countries du-
mes, we empower our employees to develop their career
ring 2010. By 2015, we plan to expand the network to
at KiK and progress to more senior positions.
include over 4,000 outlets.

For more information about our company, see the Facts and
A PROVIDER OF WORK AND OPPORTUNITIES
figures appendix in section 1, figures 1, 2, 4, 43, 44 and 73,

plus tables 17 and 18.
Our European headquarters are located in Bnen,

in North Rhine-Westphalia. It consists of our administration departments and central warehouse, from which
products are delivered to all our stores. 1,014 of a total 16,980 employees in Germany are employed at our
headquarters, 602 of them in administration and 412 in
warehouse logistics. By far the majority of our staff, however, are employed in our stores: 15,966 people at yearend 2010.
Taking into account those employees in the six European countries where we are represented, over 20,000
people currently have a recession-proof job with us.
In addition, KiK is a committed provider of training for
19 different occupations. Since 1994, 2,873 young men
and women have successfully completed a 23 year
11
As proud as we are of our success, our sights

remain firmly set on the future. KiK wouldnt be KiK
if we didnt recognise our potential and actively
seek to make changes. All of us work together to
deliver quality, at every level. We see it as our task
to continuously develop our business processes
and procedures to make them more sustainable.
Stefan Heinig, CEO and Chairman of the Board
12
2 STR ATEGY AND MANAGEMENT
WHAT WE UNDERSTAND BY SUSTAINABILITY
management, warehouses and stores, cause significant

greenhouse gas emissions. The manufacturing process
As a retailer that imports its products directly, we initiate,
can lead to the production of pollutants that affect ground
organise and oversee the flow of goods between Asian
water and, in certain circumstances, may be harmful to
production sites and our stores in Europe. We commis-
the health of employees. As well as good working condi-
sion the manufacture and production of goods, organise
tions and a decent wage, health and safety in the work-
their transport and operate over 3,000 stores in six Eu-
place need to be ensured for all staff whose efforts are so
ropean countries, in addition to our European headquar-
key to our companys success.
ters and central warehouse. We are responsible for more
At the end of the day, everything we do as a business
than 20,000 employees in Europe, people who we employ
must help ensure our long-term success. It is therefore
directly, as well as those workers involved in producing
logical and economically prudent for us to design pro-
goods ordered by us in their respective countries. Eve-
cesses that make the best possible use of resources, to
rything we do as a business has an impact on the peo-
define social and ecological standards, and adhere to
ple and environment around us. For example, we consu-
them, and also to assume social responsibility above and
me raw materials, water and energy. The manufacturing
beyond our core business activities. Thats what we un-
and transport of goods, and operational processes in
derstand by sustainability.
Production
sites
> 1,000
Goods received
Procurement
Outgoing goods
Employees
20,000
Consumer goods industry

employees
Influence
Stores
> 3,000
Sales
The illustration shows the focus of our direct-import business and the degree of potential influence on these areas.
The degree of direct influence is highest in sales
13
Economy
Ecology
Social
Turnover
Climate - energy consump

tion (electricity, heat, fuel)
Wages and salaries
Income/efficiency
Use of resources
(water and wood)
Health and safety
Pollutant emissions
(toxicology)
Employment and human

rights
Biodiversity
The three dimensions of sustainability, with their most important issues
THE RELEVANCE OF SUSTAINABILITY
In the third step of the process, we assign these performance indicators to four core areas where all processes
Points of economic, environmental or social relevance

can be found across the value chain.
within our company can reasonably be integrated. For

each of these areas, we then analyse the key task. Eco-
The key aspects identified by us have been assigned to
nomic indicators directly or indirectly influencing these
the three traditional dimensions of sustainability (see the
areas are not shown. Similarly, legislation on occupatio-
above illustration).
nal safety and data protection, anti-competitive behaviour

and corruption, product liability and labelling rules and
rules relating to environmental law are not listed. In each
can only influence indirectly. Taking into account the most
case, adherence to all rules and regulations is checked by
important sustainability criteria, as defined by the GRI, we
the department charged with doing so. Due to the com-
have developed the classification system shown below.
plexity of manufacturing pathways and testing processes,
INDIRECT AREAS OF INFLUENCE
DIRECT AREAS OF INFLUENCE
In the second step of forming our strategy, we distinguish

between the areas we can influence directly, and those we
Economy
Economic performance and market presence in
Germany and other European locations
Ecology
Energy and water consumption, use of materials,
influence on biodiversity, causing emissions, waste
water and other waste through administrative,
warehouse, retail and transport operations
Working practices and employment
Ensuring fair and just working relationships at all German and European sites, taking into account equality of
opportunity and appropriate remuneration, the range of
training and career development opportunities offered
Economy
Indirect effects on socio-economic development in the
countries where our products are manufactured
Ecology
Energy and water consumption, the use of materials,
influence on biodiversity, emissions, waste water
and other waste from the manufacture of textiles and
non-food items commissioned by KiK, as well as
emissions caused by transport companies working
for importers
Society
Maintaining healthy relationships in the regional
surroundings of the European headquarters, dialogue
with key stakeholders
Product responsibility
The definition of minimum product requirements to
exclude potentially dangerous or harmful materials,
development of quality assurance systems to
ensure that standards are maintained, observation
of labelling requirements, suitable product advertising,
protection of customer data
Human rights
Adhering to employment practices, taking into account
the key standards recognised by the International
Labour Organisation (ILO) and defined in the Code of
Conduct
Observing minimum product requirements
The three dimensions of sustainability, classed as direct or indirect areas of influences
14
Suppliers
Social standards
Environmental
performance
Products
Quality
Range
Sites
Stores
Administration
Packaging
Logistics goods received
Employees
Logistics outgoing goods
Training and career

development
Communication,
information,
co-determination
Wages and salaries
The four strategic areas of action at KiK, with their key sub-topics
in isolated cases irregularities occurred in product quali-
sustainability strategy is described in detail in sections 4
ty, which have resulted in a fine.
to 7 of this report. At the end of each section you will find
By assigning the key performance indicators for sustainability to the core areas of our business activity and
the actions we are taking to achieve our goals, in the form

of tables.
developing corresponding tasks, the process of forming a

strategy results in the definition of four strategic areas of
OVERARCHING STRATEGIC GOALS
action, each of them with three sub-topics. These are the

focus of sustainability management at KiK (see the above
illustration).
In addition to the various operational measures that

form an integral part of our day-to-day business proces-
For each action area, we have formed concrete goals to
ses and gradually help us optimise them from a sustai-
measure ourselves against. In the area of ecology, we fol-
nability perspective, we are also pursuing broader, over-
low the pyramid principle of avoiding, reducing and sub-
arching goals. With these, we turn our gaze to the future
stituting. In terms of social issues, we focus on coopera-
and are targeting results that we aim to achieve over the
tion, certification and partnership with our suppliers. Our
long term with the constructive support of joint-venture
Procurement
Supplier
We ensure that basic rights of employment are respected
in the manufacture of goods sold by KiK
We work continuously to improve our suppliers environmental performance
We ensure that only high-quality products are manufactured
Product
We reduce emissions caused by the transport of goods
We reduce the amount of resources used for product
packaging
We offer an optimised range in terms of environmental
standards
Sites
We are optimising operation of our stores in respect of
energy efficiency and the reduction of emissions
We are optimising the working environment, reducing
environmental pollution and increasing biodiversity at our
European headquarters
In logistics, we are reducing emissions caused by traffic
and transport
Employees
We offer attractive training and career development
opportunities
We have an efficient communications, information and
co-determination system
We pay appropriate salaries and wages
Influence
Influence
Sales
The four strategic action areas, assigned to Procurement and Sales, and how able we are to influence them
15
Management sets strategic goals for the relevant sustainability issues
sustainable product range and product environment
sustainable supplier development
sustainable development as an
employer
sustainable site design
Divisional and departmental heads develop actions/initiatives to achieve our goals
Quality
Social
standards
Environment
Product
range
Packaging
Transport
Stores
Administration
Logistics
Training and
career development
Communication,
information
and codetermination
Wages and
salaries
Coordinators determine the relevant measures
Sustainability management involves three different agents at different levels, all with specific tasks
partners and the systematic development and integration

Advice in planning
and implementation
of stakeholder dialogue:
process
Status reports
Manage the coordination
Coordinators report on the implementation

status of individual initiatives
The development of premium suppliers to help us

become more sustainable in terms of

- pollutant reduction, through the joint production
of risk assessments for colour chemicals and textile
auxiliaries
- energy savings in terms of electricity and heat
Departmental and divisional heads

summarise the status reports
- progressive, positive wage development, above the

minimum legal wage

25% reduction in site-related CO 2e emissions for
Status reports on all sustainability goals
KiK Germany by 2015, while planning for company

growth of 20%
the exclusive use of recycled paper by 2014 in all
CSR department receives all status reports

on sustainability goals
packaging, across all ranges and in all advertising,
marketing and office material
MANAGING SUSTAINABILITY
Overall sustainability report
All strategic and overarching goals of our sustainability

activities are defined by company management. The deManagement
finition of objectives and implementation of sustainable

corporate processes are therefore borne, accompanied
and supported by the very highest levels of management
within KiK. Based on the standards defined by manage-
Updated goals and standards
ment, divisional and departmental heads develop sustainability programmes and submit proposals as to how the
companys objectives can be met. Each goal and measu-
The implementation of sustainability programmes
re is signed off by the relevant member of management,
is constantly monitored and reported on
committing the company to its achievement.
16
A coordinator is then appointed for each area with
on the progress of all sustainability programmes. The re-
responsibility for ensuring that initiatives are followed
levant directors can then update sustainability goals and
through in day-to-day operations.
standards on the basis of this report.
The coordinators report regularly on the status of each
To enable us to consistently and systematically go
initiative to the divisional and departmental heads. Indi-
about our business from a sustainable point of view, we
vidual status reports are then compiled by divisional and
apply key indicators as instruments of measurement and
departmental heads in CSR to create a status report for
control for almost all our companys processes and pro-
all sustainability programmes across the company. Whe-
cedures. We are just at the beginning of what is a complex
re necessary, the CSR department can provide advice
and ongoing task, but are certain that it will enable us to
and guidance in terms of implementation of initiatives,
identify potential for improvement, form goals and assess
and ultimately present management with an overall report
developments.
KiK Europe
KiK Germany
KiK
administration
KiK logistics
KiK stores
Key performance
indicator
2009
2010
Target for 2015
Figure
Transport emissions
39.99g CO2e/
product
40.9g CO2e/
product
Stabilisation of transport-related emissions based

on 2009
28
Transport packaging
46.27g/product
39.42g/product
Reduction of 25% in transport packaging
25
Product packaging
9.75g/product
9.45g/product
Reduction of 15% in product packaging
27
Primary energy
consumption
110.81 kWh/m2
112.02 kWh/m2
Reduction in electricity consumption of 25%
CO2e emissions
0.06 tonnes/m2
0.06 tonnes/m2
Reduction in total emissions of 25%
55
Electricity consumption
3,573.8 kWh/MA
3,327.1 kWh/MA
Reduction in relative electricity consumption of 15%
65
CO2e emissions
2.66 tonnes/MA
2.45 tonnes/MA
Reduction in relative CO2e emissions of 85%
66
Water consumption
11.90 m3/<A
9.87 m 3/MA
Reduction in water consumption of 25%
38
1.25 kWh/pallet
1.27 kWh/pallet
Stabilisation of electricity consumption at 1.25 kWh
67
CO2e emissions
0.93 kg/pallet
0.94 kg/pallet
Reduction in relative CO2e emissions of 85%
68
Water consumption
1.98 m3/MA
6.68 m3/MA
Creation of transparency about our

water consumption
38
39,323.98 kWh/
store
40,099.28 kWh/
store
Reduction in electricity consumption of 20%
69
CO2e emissions
29.26 tonnes/
store
29.83 tonnes/
store
Reduction in site-related CO2e emissions of 25%
70
57/58
Emission factor 744 g CO2e/kWh
Controlling the use of resources and energy based on key indicators
17
Were being open

and reporting on our
activities.
Thomas Schwarz, Head of International Communi-
No longer can the success and competitiveness of a

company be defined purely by growth and productivity.
Dealing responsibly with people and the environment has
become a key factor in doing business successfully. We
have learned how important it is to make it clear and transparent to any interested audience that we take our corporate responsibility seriously. By talking to people, prejudices can be addressed and the justified expectations of
cation at CARE Deutschland-Luxemburg e.V., talks to
critics made clear, enabling them to be incorporated in the
Dr. Michael Arretz
decision-making process.
For a retailer that imports its products directly, this is
all the more important because we have to satisfy, on the
18
3 OPEN DIALOGUE
when it comes to ensuring environmentally-friendly product ranges and a socially responsible retail policy.
By publishing this sustainability report we want to reach
out to and inform all those stakeholders who place certain
expectations on what we do. These might be individuals,
our employees, but also any customer or consumer interested in the subject. Were looking to reach companies,
industry associations and bodies that shape the socio-political discussion. And we are also using this report to talk
to political decision-makers, in particular at a local and
community level.
As evidence of our intentions to be transparent and
open, we invited Thomas Schwarz, Head of International
Communication at CARE Deutschland e.V., to take part in
a debate with Dr. Michael Arretz. Their exchange shows
that even a discussion led by controversy can turn out to
be a cons tructive process, bringing closer two apparently
disparate points of view.
Dr. Michael Arretz: Mr. Schwarz, Im delighted that you
have accepted our invitation to talk to us and look forward
to the controversial issues that will surely come up. After
all, friction creates energy! And, on that note, may I just
confirm that it wasnt exactly an easy decision for you to
choose KiK as a cooperation partner.
Thomas Schwarz: Youre right. The decision to accept financial support for our projects from KiK, and in doing so
accept the company as a cooperation partner, was definitely not easy for us. Reports about the poor working conone hand, customers desire for a hassle-free shopping
ditions in Germany, criticisms of the conditions in which its
experience and, on the other hand, justified expectations
goods are produced in Bangladesh, the companys public
that we will do business in a way that is socially and en-
image and the narrow focus of discount retailers on achie-
vironmentally responsible. As part of the development of
ving growth at all costs all those things meant KiK wasnt
the global textile and consumer good industry, peoples
exactly a dream partner for us. Our impression was that
expectations have changed in terms of both sustainab-
corporate social responsibility wasnt high on the agenda
le product quality and the conditions in which goods are
at KiK.
manufactured. Taking that into account is one of our key
Dr. Michael Arretz: Yes, thats a perception I come up
tasks. Were therefore happy to talk to the media, and also
against time and time again when talking to journalists.
to address the concerns of critics such as ROBIN WOOD
The discount clothing business model is viewed extremely
or CARE Deutschland-Luxemburg e.V. Understandably,
critically, particularly KiKs business practices. Of course
they all have a special interest in our business activities
we polarise opinions: we are big, have 3,000 stores and
19
our advertising focuses heavily on price. Our stores are
gladesh. We have a systematic approach involving audits
best described as practical, with no distinctive feel-good
and certification to ensure that minimum social standards
factor.
are observed.
Thomas Schwartz: Dr. Arretz, please excuse me if I cant
Thomas Schwarz: Consumers and a critical public are
sympathize. Real mistakes have been made while, at the
entitled to an insight into what a company does. At CARE
same time, your company has made a lot of money. So
Deutschland-Luxemburg e.V., we want to be kept inf ormed
there are some very good reasons why you have such a
too: one of our key demands was to be able to accompany
poor public image.
you to the factories currently making clothes for KiK, at
Dr. Michael Arretz: I agree. KiK is a young company and,
any time. You agreed to that demand.
over the course of our growth, errors were made. Manage-
Dr. Michael Arretz: We have entered into a constructive
ment acknowledged this and set a large number of chan-
partnership with CARE, and openness forms a key part of
ges in motion.
that. However, we also know that CARE understands the
Thomas Schwarz: Without this turnaround, there could
complexity of change processes from its own day-to-day
never have been a firm alliance between CARE Deutsch-
work. You know how long it can take to reach a consensus
land-Luxemburg e.V. and KiK. So its all the more im-
about standards and ensure that they are applied. And to
portant that you now convince us and those interested,
do that while taking into account social and political re
through facts, and document and prove the seriousness
alities that may be very different from our own. For CSR to
of your efforts.
work well, you need to take a long-term view fundamen-
Dr. Michael Arretz: Thats what we aim to do. But Id also
tal change can never be achieved overnight.
like to add that weve already made some progress: since
Thomas Schwarz: Of course, change processes are
2007, for example, weve adhered to the Code of Conduct
subject to complex conditions. But a lot can and must
based on the international labour standards established
be changed for the better overnight. Wages, for example.
by the ILO and we require our suppliers to do the same,
How can it be so hard to increase the wages of your female
a fact that we check very carefully. Here in Germany, all
employees? Manufacturing costs account for just 1% of
our employees receive at least the minimum wage. Apart
the price of the finished product! And if fresh water is not
from that, KiK is the first and, so far, only discount clothing
available somewhere, or ventilation and air conditioning
retailer to have set up standalone management to oversee
are lacking in a facility, it shouldnt take longer than a day
CSR activities.
to put that right.
Thomas Scharz: The Clean Clothes Campaign justifiably
Dr. Michael Arretz: Changing things like that is simp-
proved, once more, that a Code of Conduct, audits and
le and it annoys me time and time again when it doesnt
checks only really work if they lead to tangible improve-
happen. But applying a wage rate that for example, as
ments for employees. Until you can ensure that, it will re-
in Bangladesh is outside the countrys own regulations,
main a purely cosmetic initiative.
is a lot more complicated. Our suppliers are independent
Dr. Michael Arretz: We are fully familiar with the demands
companies, all of which also manufacture for other retail
of the campaign for example, the desire for transparen-
partners. If the various employers each impose a different
cy. Which is what were trying to provide now. Were being
wage, should an employee earn more one day because
open and reporting on our activities, and listening to the
shes stitched a t-shirt for KiK, and then less on the next
views of critical stakeholders: from the very beginning,
because another employer pays differently? Its not an
weve been working on our on-site CSM commitments, to-
easy problem to solve. We are committed to ensuring that
gether with NGOs and trade union representatives in Ban-
anyone working in a factory producing our goods receives
20
3 OPEN DIALOGUE
at least the legal minimum wage. In the long term, how
at KiK. In a Forsa survey, one in two respondents admitted
ever, we are looking to increase wages above the mini-
to shopping at KiK occasionally.
mum required by law.
Thomas Schwarz: But customers dont just want cheap
Thomas Schwarz: Its a fact that every company is al-
clothes, they also expect social and environmental res-
ways both part of the problem and part of the solution to
ponsibility. I personally see it as an interesting challenge
it. There are some excellent examples of how things can
to accompany KiK on its path to becoming a socially res-
work differently. For example, the patchwork rug project
ponsible company, while providing a critical point of view.
developed by our CARE colleagues in Bangladesh, which
Dr. Michael Arretz: I am certain that with partners such
you initially supported as a business partner and are now
as CARE Deutschland-Luxemburg e.V., were on the right
continuing with some success, shows that, in some cir-
track.
cumstances, a global economy can also very easily be

socially compatible.
Dr. Michael Arretz: We have understood that and thats
why were continuing the work we began with the rugs and
seaweed baskets. However, away from such projects, its
also legitimate in the spirit of division of labour that businesses use the north-south divide. Only that way, through
all countries participating in the worldwide flow of goods,
Thinking globally also sometimes means providing

fast, local support. In 2010, a large donation was
made to CARE Deutschland-Luxemburg e.V. to provide aid in the areas of Pakistan most severely affected by flooding.
can an appropriate level of wealth be achieved everywhere, ensuring education and development.
Thomas Schwarz: To hear that might make someone
think youre a charity dedicated to bringing prosperity to
See section 11 of Facts and figures in the appendix to this
poor countries and, at the same time, providing socially
report to find out more about our social commitments.
disadvantaged families in Europe with affordable clothing.

Dr. Michal Arretz: No, KiKs aim is to be the lowest-priced
clothing retailer. Thats a strategic decision to transfer the
idea of food discounting to the clothing industry. The fact
that were so successful has to do with the fact that, in
Germany, there are increasing numbers of people with
less money to spend. As has been proven in food retail, as
long as your products are high-quality, you can gain wide
acceptance in society. Thats what were working towards
21
K iK Sustainabilit y REPORT 2010
As one of KiKs directors, Im responsible

for buying department and therefore
travel abroad a lot. When Im visiting our
manufacturers in different countries,
I dont just consider our companys
relationship with them, I also think about
the people who live and work there,
who have to put food on their families
tables sometimes under highly difficult
conditions. Thats why its so important
to me that we work in a spirit of partnership with our producers and suppliers
to improve local working and living
conditions.
Mechthild Gottkehaskamp,
Procurement Director
22
4 SUPPLIERS
23
Our sustainability strategy has implications for our retail
ternational (SAI), a multi-stakeholder body. As part of the
partners in terms of their quality, social and environmen-
programme, our CSR department works closely on site
tal standards.
with Consulting Service International (CSI).
Our internal quality assurance department, which ce-
In order to provide powerful support and to manage our
lebrated its tenth anniversary in 2011, serves as guaran-
qualification programme. We need in-depth knowledge of
tor of the quality of our products. The 30 plus employees
how processes are audited in our factories. To this end,
working in this department advise our procurement ma-
two of our CSR employees have successfully gained cer-
nagers, develop requirement profiles for products and re-
tification as a basic auditor in accordance with the SAIs
view these in terms of their physical and chemical parame-
rigorous SA8000 standard.
ters in in-house laboratories. We dont just limit ourselves

to checks, however, but actively work together with our
suppliers on all issues relating to quality. Thats why our
SOCIAL STANDARDS: OUR CODE OF

CONDUCT
employees also develop and manage training programmes for them. For more information about our quality assurance activities, see section 5 of this report.
As an international retail company, we maintain business contacts with local manufacturers in many coun-
Our CSR department, which reports directly to the
tries especially in China and Bangladesh, where we
board of directors, also has a key role when it comes to
procure the majority of our goods. Like most retailers, we
our suppliers social standards. The departments ten em-
dont operate our own factories, but work with local ma-
ployees manage initiatives to improve working conditions
nufacturers and suppliers. Thats why we are determined
at production sites. These supplier and agency qualifica-
to ensure that anyone who, through their work, contribu-
tion programmes are based on audits conducted regularly
tes to our success, does so in appropriate conditions and
in the factories on our behalf by companies accredited by
with full access to their rights. To create a binding basis
the internationally recognised Social Accountability In-
for all our commercial relationships, in 2006 we develo-
The KiK Code of Conduct (CoC) differs from the
of the KiK CoC therefore match those of BSCI, but
Business Social Compliance Initiative (BSCI) code
do not include any demands for a management
of conduct and SA8000 standard in that it places
system compliant with the DIN standard ESP 9001,
no particular requirements on supplier management
or SA8000. The KiK Code of Conduct, like that of the
systems, environmental protection or safety issues.
BSCI, requires payment of the minimum wage and
Within our code of conduct, we exclude such de-
aspires to a wage that enables people to live comfor-
mands in order to focus on ensuring appropriate wor-
tably. To view the full KiK CoC, visit:
king conditions in factories. Naturally, however, when
http://www.kik-textilien.com/unternehmen/
we conduct inspections in the factories, aspects
verantwortung/lieferanten/
such as management and environmental protection

are also taken into account. The audit requirements
24
4 SUPPLIERS
ped an international Code of Conduct, aligned with SAIs
make it necessary to terminate the business relationship,
recognised SA8000 standard and comparable with the
we take immediate action. Relationships with some sup-
BSCI code of conduct.
pliers have been discontinued, as they showed no wil-
The requirements and minimum standards described
lingness to improve their working conditions.
in our Code of Conduct are based on the ILO constitution and the relevant standards of the United Nations, en-
SUPPLIER AUDITS
suring that the labour guidelines we establish are valid

worldwide.
Not all suppliers can meet the demanding requirements
We are conscious of the fact that our business partners
of our Code of Conduct right away. Thats why we offer
live and work in cultural and political environments that
suppliers and agencies in countries where our goods are
are different to ours. This makes it all the more important
manufactured workshops and training sessions on topics
that we respect universal human rights, which should be
such as working conditions, product quality and, in the
respected and protected at all times. The KiK Code of
near future, environmental issues in particular the use
Conduct requires compliance with minimum standards in
of energy, water and packaging materials. How closely
the factories where our goods are produced. It includes
we work together with our suppliers to forge a solid, long-
a ban on child labour, a ban on forced labour or discri-
term business relationship with them is made clear by the
mination, maximum working hours, health and safety
following description of how an audit and qualification
standards for the workplace, information and reporting
programme is carried out in Bangladesh.
standards for suppliers, as well as employees freedom

of association.
We usually make initial contact with suppliers via an

agency. As part of a pre-scan, an agencys specially
Our suppliers are informed about the content of our
trained employees review social standards in the rele-
Code of Conduct, which forms part of our basic business
vant production facilities using a checklist that they send
terms and conditions and is therefore a key part of any
to us, accompanied by photos of the factory. Our CSR
contract, and about the resulting requirements. Every
department then analyses the reports and makes a re-
one of our partners undertakes to respect and protect
commendation to Procurement.
the provisions in the Code of Conduct, on behalf of all its

employees and those of its sub-contractors.
If the supplier seems suitable, we then send them our

supplier registration documents, made up of our General
But our responsibility doesnt end once the contract is
Terms and Conditions of Business, our Code of Conduct,
signed. For us, its extremely important to view suppliers
a supplier presentation, minimum quality requirements
as business partners with whom we can work together to
and a CSR package, which features an audit guide and
achieve defined goals.
special conditions applicable to certain product compo-
Of course, any breach of the CoC that is brought to our
nents.
attention is sanctioned using the means available to us.
In return, the potential supplier describes its offering,
However, we consider it a matter of fairness and in the
names its production sites and sub-contractors, at the
spirit of partnership to give them adequate time to resol-
same time undertaking to inform KiK of any change in
ve any problems. At times, the exchange of knowledge
these, and agrees to a social audit.
and information is all thats required. In the case of more
Once all the documentation is available, signed by the
complex problems, we closely monitor the change pro-
supplier and checked by the CSR and Procurement de-
cess over a longer period, until improvements are made.
partments, the supplier is accepted into the system and
Should a serious breach on the part of the supplier
sent a trial order.
25
Within four to six weeks, the first social audit takes
The audit company informs suppliers, the agency
place. To ensure maximum possible transparency, au-
and our CSR department of the result of the initial au-
dits are conducted by independent institutions such as
dit. If a supplier is rated as good, our CSR depart-
Specialised Technology Resources Inc. (STR). Generally
ment supports its further development and a re-audit
speaking, the specially trained auditors are locals with
is conducted around two years later, at the latest. If the
extensive experience in auditing factories. They check
supplier passes this one too, it joins the ranks of our
all relevant documents, visit the company premises and,
preferred suppliers.
most importantly of all, conduct interviews with manage-
If the results of this initial audit prove unsatisfacto-
ment and staff to get an accurate insight into conditions
ry, a corrective plan is established with an appropria-
at the factory.
te timeframe. Based on this plan, which is constantly
What exactly is checked during an audit varies according to the legislation of the country in question. In total,
around 175 points are assessed, usually falling into one of the following categories:
Workplace health and safety
http://www.kik-textilien.com/unternehmen/
Fire prevention measures
verantwortung/lieferanten/
First aid facilities

Machine safety
Documentation
Proof of employee age/identification papers
Time-keeping
Wage slips
Pay
Payment of the minimum wage
Payroll deductions
The prompt payment of wages
Working time
Overtime
Days off
Communication
Employee suggestion scheme
Employee representation
Environment
Disposal of waste water and other waste
Waste water disposal permits
26
Join Molla Meher Nawroz on a factory audit at
Personal protection equipment
4 SUPPLIERS
updated by the agencies, the CSR department reviews
suppliers the opportunity to improve their performance
developments at the supplier. Selected suppliers are in-
through qualification programmes. We firmly believe that
tegrated in a qualification programme financed by KiK.
social standards and environmental performance can
The qualification programme consists of multiple modu-
only be improved by working together, as partners. So
les, with workshops on topics such as child labour, social
since 2008, certain suppliers we work with have been
standards in manufacturing or monitoring sub-contrac-
included in our qualification programme , managed by
tors.
international consultancies specialising in this area, such

as CSI, and financed by KiK.
REGULAR SHORT VISITS
Agencies play an important role in the auditing and

qualification programmes. If an agency suggests wor-
As part of our qualification programme , announced
king together with a particular supplier, the first thing that
and unannounced visits are made to closely monitor,
happens is that the suppliers social and environmen-
support and extensively document the change proces-
tal standards are reviewed thoroughly by the agencys
ses underway. Furthermore, employees from our CSR,
specially trained staff. Thanks to the on-site presence of
Procurement and Quality Assurance departments regu-
agencies, we are always fully informed of important de-
larly make on-site visits to suppliers to provide them with
velopments in the marketplace or at individual suppliers.
the best possible support. Following conclusion of the
We also offer customised training to agencies. The
development process, an unannounced re-audit is per-
CSR employees of all 15 agencies that were currently
formed.
partnered with, across the globe, participate in these trai-
If the re-audit finds that no improvement has been
ning programmes.
achieved, the supplier is given a warning. The agency
In 2010, 20 suppliers in Bangladesh took part in quali-
and our Procurement department will be informed of this.
fication programmes. Ten of these completed it success-
Should the supplier express a strong interest in impro-
fully, three opted out of the process before it had finished
ving and maintaining its business relationship with KiK,
and, as of 31 December 2010, seven remained in the pro-
they can be given another opportunity to make further
gramme. The findings, which to a varying degree show-
improvements and undergo another audit. If the planned
ed room for improvement, covered workplace health and
improvements are not implemented, the business relati-
safety, pay, working hours, working environment and the
onship may be terminated. If a significant improvement
provision of all relevant documentation.
is observed, we will continue to work with the supplier in

question.
Among suppliers who successfully completed the programme, the compliance rate was 83%. Compared to
We started our supplier audits in 2007 and by year-
the previous year, when the rate was 62%, that signals
end 2010, we had carried out over 1,000 audits, most of
a clearly positive development in the improvement pro-
them in Bangladesh and China. In Bangladesh, each of
cess.
the factories we work with has been audited.
In China, 16 suppliers took part in the qualification

programmes, four of which completed them successfully
SUPPLIER CERTIFICATION
in the same fiscal year. Two left the programme and ten
were still enrolled at 31 December 2010. On average, the
Carrying out audits to ensure compliance with codes
compliance rate was 70%.
of conduct is standard practice, across all industries.
In both countries, two factors have proven to be key
However, we take things a step further by giving selected
to the change process. The first is the belief of manage-
27
ment in the relevance of the targets and measures. The
By sharing knowledge and its beneficial effects on
key to the success of our qualification programmes is the
manufacturing and production, we have abandoned the
inclusion and commitment of management in the change
conventional ways of retail and gone far beyond our origi-
processes. The second factor is time. Experience has
nal role as a broker in the flow of goods. We firmly believe
shown that no company could immediately put right its
that sustainable change in the consumer goods industry
failings during a single qualification programme . Conti-
can only be achieved by working together in this way. By
nued, close support for suppliers is therefore required to
developing premium suppliers, we are creating role mo-
achieve comprehensive, lasting improvements in quality
dels for other suppliers and references for the industry
and social standards.
as a whole.
PREMIUM SUPPLIERS
desh, to closely support all our suppliers in the country.
In 2011, we opened our own office in Dhaka, BanglaThe offices duties include supporting quality certificaAlongside our qualification programmes, we are aiming
tion measures in respect of social and environmental
to set new standards in key areas of textile and clothing
standards in factories, as well as improving production
production such as reducing pollutants, exploring the po-
and product quality. In future, this office will also help
tential for energy savings in manufacture, and developing
us select potential companies for the premium supplier
wage settlements that are above the minimum legal wage.
programme.
To achieve these objectives, we are developing certain

suppliers that we have enjoyed a good business relation-
GIVING EMPLOYEES A VOICE
ship with over a number of years into premium suppliers.

A premium supplier meets our social standards and works
When visiting production facilities, our auditors regu-
to continuously reduce negative effects of clothing manu-
larly speak with the people who work in them to find out
facture on people and the environment. This extends to
how satisfied they are with their working conditions, if
including the pre-production processes such as the pro-
their superiors treat them fairly and whether management
curement of raw materials, fabric manufacture and colou-
comply with our Code of Conduct. But we wanted to get
ring in the analysis and improvement process.
first-hand evidence of the conditions in which people work
We will continue to support our suppliers in this by de-
in clothing factories in Bangladesh. To do this, we com-
veloping tools and procedures, together with trusted part-
missioned the Awaj Foundation, a non-profit organisation
ners, specifically tailored to the needs of our suppliers.
based in Bangladesh, working together with the consul-
These are designed to help suppliers use water, energy
tancy CSI, to conduct a survey among male and female
and raw materials as efficiently as possible and reduce
employees in various clothing factories in Dhaka. Between
or completely cut out pollutants. In terms of reducing pol-
February 2009 and August 2010, 708 women and 226 men
lutants, for example, we have worked with a partner with
were surveyed in the offices of the Awaj Foundation. The
proven expertise in the area of colorants to develop a pre-
foundations employees carried out the survey, which con-
ference list for dye usage, tailored to a suppliers specific
tained over 30 questions, orally in their native language.
manufacturing conditions.
Some of the questions related to personal information
In terms of social issues, it is important to address the
and attitudes, such as where they came from, education,
complex issue of pay together with our suppliers and
family status and the number of children they have, ac-
NGOs, with a view to achieving a level above the minimum
commodation and personal interests/activities, in addition
wage.
to their hopes for the future. The second part of the ques-
28
4 SUPPLIERS
Bangladesh is one of the poorest

countries in the world and is just starting to develop industrially. One
of the main goals of our CSR strategy
is to commit ourselves to improving
living conditions in the country.
Petra Katzenberger,
Head of CSR
tionnaire was about work, specifically pay and working
When raised, the issue of timely payment was there-
hours, their position in and time at the company, as well as
fore responded to positively by only a minority of those
work-related illnesses and accidents.
surveyed. Around a quarter of those surveyed conside-
The majority of those surveyed (84%) were aged bet-
red the factory to be a pleasant working environment,
ween 20 and 30, half of them married, the other half single.
women above all on account of its cleanness and secu-
Around half of respondents had children, most of them no
rity. But the behaviour of management was often viewed
more than two.
negatively, in terms of the way they spoke to staff and
Close to half of the women had gone to school for between four and six years, half of the men for seven to nine
years. A total of 83% questioned gave financial reasons
when asked why they had left education.
The majority of those surveyed share a home with other
also internal rules, such as the ban on going home in the

event of illness.
These answers show that the definition of employee
rights in the Code of Conduct is just as important as regularly auditing factories.
people that do not form part of their immediate family or
The results of our survey serve as an important basis
group of friends, paying between ten and twenty euros
for developing further improvement measures and will be
rent per month for living space of a size between 5.7m 2
fed into future decision making. As a first step, following
and 13.9m 2. In most cases rent is payable by the 10th or
responses to the issue of workplace safety, we have pro-
15th of the month, however in most cases wages are not
duced an employee training handbook together with the
paid until the end of the next month, causing financial pro-
Awaj Foundation.
blems for those involved.
29
Funded projects that work:

collaborating with CARE to help
those in need
trained and then employed, on full salary. The women

can pay part of their income into savings, helping them
earn interest. This means the women are better equipped
to deal with economic crises and natural disasters, and
This fiscal year, working together with CARE Bangladesh, we are involved in a number of initiatives designed
gives them a secure livelihood for themselves and their

children over the long term.
to help the poorest regions in the north of the country:

In the districts of Lalmonirhat and Rangpur we are aiming to improve the food supply by working with local
smallholders. Through training, they gain access to new
PROJECTS THAT MAKE A DIFFERENCE: BASIC MEDICAL CARE, CHILDRENS DAYCARE

AND SCHOOLS
technologies and knowledge, helping them increase

their income. By developing agricultural markets and an
Medical care in the textile hubs of Bangladesh is in-
infrastructure to transport produce, around 10,000 small-
adequate, and hygiene can often be poor. Thats why,
holders will be in a position to sell their produce via this
working together with the Awaj Foundation, we have de-
channel. In addition, 32 women are being trained and
veloped a project to deliver basic medical care. One day
provided with start-up capital so they can set up market
a week, across a range of locations in Dhaka, employees
stalls.
and their children are offered the chance to consult a mo-
To support women in Bangladesh particularly affected
bile doctor who, in addition to treating acute complaints,
by poverty and social exclusion, craft production facili-
also provides advice and clarification on general health.
ties were set up in which, initially, 200 women can be
Also in conjunction with the Awaj Foundation, female

workers in Rangpur and in two factories in Dhaka producing KiK goods are provided with subsidised sanitary
products, to prevent the risk of infection.
Together with the NGO Phulki, we also build daycare
REFORESTATION
facilities for employees children. By year-end 2010, eight

childrens nurseries were in operation where children can
In China, one of our main source markets, we sup-
be dropped off in the morning and looked after until the
port the non-profit organization Heroes2 which,
end of the day. For women, in particular, this makes it
in conjunction with the Guangdong Academy of
easier to earn an adequate wage. At the same time, their
Forestry, initiated a reforestation programme in
children receive pre-school care in the centre, delivered
2010. Only trees native to China are included in
in a fun and engaging way. While the laws of Bangladesh
the sustainable replanting of forests and the local
require every factory to operate a childrens daycare fa-
population is closely involved in the project. We
cility, in reality few do. By funding daycare facilities, our
financed the planting of 10,000 trees in the pro-
aim is to counter this situation.
vince of Guangdong, making an active contribu-
As a principle, we reject child labour of any type. We
tion to reducing CO 2e emissions and maintaining
make our suppliers undertake to do the same and per-
the variety of tree species in China.
form strict checks on this as part of our social audits. But

thats not enough. The best way to prevent child labour
over the long term is education. Only those who can read
and write well have a genuine chance of going on to gain
30
4 SUPPLIERS
skilled, better-paid work but less than half of the population of Bangladesh can do so. Education is compulsory,
but many families simply do not have enough money to
afford the necessary school materials. Instead of going
to school, around seven million children in Bangladesh
must make a key financial contribution to the survival
of their families. To break this vicious circle of poverty
and lacking education, and effectively exclude the use of
child labour in the clothing industry, we support a local
schooling project run by the NGO Gonoshahajjo Sangstha (GSS). GSS runs approximately 350 schools across
Bangladesh for children whose families are particularly
affected by poverty. All of the education, including the
teaching materials, is funded by donations. Through our
support alone, 1,920 children were receiving education
in six schools at year-end 2010.
For more information about how we work together with suppliers, read Facts and figures in section 3, figures 4-19 and
tables 2-8, plus section 11.
31
SUSTAINABILITY PROGRAMMES FOR SUPPLIERS

The aim: to optimise our clothing range based on quality criteria
Action
Deadline
Revise the minimum requirements for clothing
06/2011
Define suppliers meeting the minimum requirements for buttons, care labels and labels in Bangladesh, in accordance with
the minimum requirements and Oeko-Tex standard 100 for all product groups, in all markets
06/2013
Log all components (buttons, zipper, neckbands etc.) and definition of suppliers in accordance with the minimum requirements and Oeko-Tex standard 100 for the childrens and baby collection in Bangladesh and other markets
12/2012
Establish a service unit in Bangladesh with three to five employees to advise agencies and suppliers
10/2011
Provide visibility into quality-related performance of all producers in all clothing areas
ongoing
Establish a supplier management system to select and support suppliers in the certification of their specific services and
capabilities
03/2012
Introduce a sample-picking process for textiles in Bangladesh, conducted by independent third parties and/or
KiK employees
06/2012
The aim: to optimise our non-food range based on quality criteria

Action
Deadline
Revise the minimum requirements for selected non-food ranges
12/2011
Provide visibility into supplier error rates in the production of selected non-food items
12/2011
10
Introduce a sample-picking process for non-food products in China, conducted by third parties and/or KiK employees
06/2012
11
Pilot project: expand random order sampling in selected product groups (batch marking)
06/2011
12/2011
32
4 SUPPLIERS
The aim: to improve social standards

Action
Deadline
12
Audit suppliers according to the Code of Conduct, re-audit performed every two years
ongoing
13
Audit 100% of clothing suppliers in Bangladesh
ongoing
14
Certify suppliers to improve compliance rates in Bangladesh and China. In Bangladesh, increase improvement rate from
83% (2010) to 90%, and from 69% (2010) to 80% in China
12/2012
15
Establish a short-visit programme with three campaigns in 2011 and five in 2012, to address issues such as fire prevention,
minimum pay and improving the quality of drinking water in Bangladesh
12/2012
16
Set up a system to log the production sites of textile importers
12/2011
17
Perform random auditing of production sites in accordance with our Code of Conduct at least five to 10 clothing suppliers 12/2012
in 2011 and 15 in 2012
18
Expand audits on never-out-of-stock suppliers with production in the Far East to 100%
12/2011
19
Certify five selected suppliers
12/2011
20
Log all importers and sample audits of seven to 10 suppliers in the non-food sphere
12/2011
The aim: to improve suppliers performance in relation to the environment

Action
Deadline
21
Capture the energy consumption in five factories in 2011, based on documentation, then in at least one factory using a
smart meter; balancing of CO2e emissions
12/2012
22
Develop an action plan to reduce energy consumption in at least one factory
06/2012
23
Develop a questionnaire to determine a range of environmental parameters: water, waste water, waste, paper
06/2012
24
Carry out an audit in eight to 15 factories
06/2012
25
Determine the carbon footprint of two to three products
12/2011
26
Establish at least five premium suppliers, with complete transparency into their use of resources, energy and water consumption
12/2012
27
Perform an environmental audit, focusing on waste water in India, to provide visibility into the volume and treatment of
waste water in dye works
06/2012
33
K IK SUSTAINABILT Y REPORT 2010
34
5 PRODUCT S
Customers are demanding

more and more in terms
of quality and fashion and
in terms of how clothes
are produced. We want to
help our customers in achieving that new look. Thats
why part of our range also
reflects the latest fashions.
Sustainable product quality,
of course, has to be part
and parcel of that.
Stefanie Artmann,
Manufacturing Director
35
OUR RANGE
Tex 100 standard and by TV Rheinland. Like the Oeko

Tex label, TVs label attests that a product presents
Increasing numbers of consumers are making their
no known danger to its wearer based on the very latest
purchasing decisions based on price, meaning that the
evidence. Even after the label has been awarded to a pro-
number of people looking to dress fashionably but pay
duct, random checks are carried out to ensure continued
less is also rising. As a provider of basic clothing, KiK
compliance.
enjoys a supported awareness rate of 83% in Germany,
We will step up our work with accredited testing institu-
according to the results of an omnibus survey conducted
tes in the future with a view to significantly increasing the
by TNS Infratest. And we continue to work on making our
number of certified products in our range.
ranges even more attractive.
In addition, since 2009, we have been offering a com-
Clothing makes up the largest part of our range. We
plete range of babywear made from organic cotton, pro-
offer a wide selection of fashionable, timeless clothing
duced according to the Global Organic Textile Standard
for men, women and children, all at a very high quality
(GOTS). This is available in selected stores on a promo-
and comparatively low prices. The range is based on ba-
tional basis. Going forward, part of our childrens collec-
sic items of clothing such as jeans and American-style t-
tion will also be made up of organic blend cotton.
shirts. We focus in particular on the latest fashions. Since

March 2010, for example, we have regularly offered a Verona Pooth collection featuring fashionable womens ou-
PRODUCTS THAT HELP: PATCHWORK RUGS

AND SEAWEED BASKETS
terwear, expanded in the spring of 2011 to include trendy

maternity wear. Our range of clothing is completed by a
Every year, thousands of people leave the rural regi-
wide range of garments in large sizes for both men and
ons of Bangladesh looking for work in the capital city of
women, as well as underwear and hosiery. Following our
Dhaka, a city that is already home to 14 million people
acquisition of the prestigious Ergee brand in January of
and counting. While poor districts continue to form in
2009, we also now offer brand-name products. Ergee
Dhaka and other industrial hubs, rural regions lacking in
clothing is characterized by good quality, premium mate-
structure are left desolate. Rangpur, located in the north
rials and modern design.
of Bangladesh, is one such region. Frequent floods can
Around a quarter of our range is non-food products
completely or partially wipe out smallholders crops, in
such as toys, office materials, drugstore goods, home
a region largely dominated by agriculture. The result: an
textiles, household goods, accessories and gifts.
inadequate food supply and extreme poverty.
Over the past year, we have continuously increased the
To prevent more people from moving to the large in-
number of environmentally friendly products in our ran-
dustrial centres, and the impoverishment that comes with
ge. By environmentally friendly we mean any item that is
it, it is particularly important to help people to help them-
optimized in terms of pollutants, raw material or resource
selves.
consumption, or production-related emissions.
Thats why, working together with CARE Bangladesh
In 2010, 18% of our menswear, 13% of our womens
and a local company, in June of 2008, we began to revive
outer garments, 18% of our childrens clothing, 34% of
a traditional technique of carpet manufacture. Cotton left
our underwear, 59% of hosiery and 63% of home textiles
over from the manufacture of clothes, bearing an Oeko-
were checked for potentially harmful toxins and certified
Tex certificate, is brought to Rangpur and turned into
accordingly.
patchwork rugs in a range of styles.
The review was performed according to the Oeko-
36
These purely recycled products are now manufactured
5 PRODUCT S
When youre pregnant, its not that easy to find clothes that are
fashionable yet, at the same time, so comfortable that they meet your exact
needs. Thats why I teamed up with my promotional partner, KiK, to
design the Trendy Mama range. It was important to me that the individual
items of clothing be easy to combine, colourful, casual and yet, thanks
to stretch fabric, adapt to your figure. Pregnancy is a wonderful time,
one that every woman should enjoy and theres no reason the stomach
shouldnt look good too!
Verona Pooth
at twelve production sites in the north of Bangladesh.
addition, the relevant production facilities have helped
With a workforce that is 75% female, the project supports
strengthen rural regions lacking in structure.
women in particular, who in turn are able to support their
In the future, we plan to expand our non-food range
families. Their pay is on a par with the legal minimum
with similar products. We have therefore created a new
wage in Bangladesh, but for many of them it is higher.
position within our Purchasing department focused so-
The creation of secure jobs has given the entire Rang-
lely on the procurement of sustainable products.
pur region a boost. In addition, locals are receiving training on subjects such as family planning, pregnancy and
PRODUCT CARBON FOOTPRINT
healthcare.
As a retail partner, KiK guaranteed to buy all the carpets
To help reduce the CO 2e emissions of our clothing and
produced. And with great success: to this date, around
non-food ranges, we have produced a product carbon
1,500,000 rugs have been sold across all our European
footprint for various goods that we sell in large quanti-
stores. In 2009, the number was more than 400,000 and,
ties such as patchwork rugs and five-pocket jeans. This
in 2010, around 830,000. Given the resounding success
details all CO 2e emissions resulting directly and indirect-
of the project, a new production facility was set up based
ly from the manufacture of a product, across the entire
on the same model in Bogra in June 2009. The facilitys
supply chain, and is therefore an important tool when it
150 employees make baskets out of seaweed.

Any money earned from the sale of the rugs and baskets is channelled into the diverse social and ecological
projects we fund.
In our rugs and seaweed baskets, we have added a
new segment to our non-food range: sustainable products. They are sustainable because they are made from
leftover production materials/renewable raw materials,
In February 2010, Public Affairs Asia recognized CARE

Bangladesh with the Gold Standard Award for its rug
project (run in conjunction with KiK and CSI) in the Sustainability category of its annual awards scheme.
by hand, leading to relatively low CO 2e emissions. In
37
comes to reducing emissions. During its lifecycle, the
QUALITY ASSURANCE
patchwork rug, measuring 60 x 90 cm and weighing 865

grams, causes the emission of 1.79 kilograms of CO 2e.
At KiK, the customer is king. We therefore place great
In total, 65% occurs during production. Having sold 830
value on the quality of our products. As early as 2001, we
patchwork rugs in 2010, this means their manufacture
set up an internal Quality Assurance department in our
alone led to the emission of no more than 0.97 kilotonnes
European headquarters which has been equipped with
of CO 2e around 7% of KiK Europes total emissions in
its own laboratory since 2006. The 38 employees who
2010. The patchwork rugs carbon footprint also tells us
work there have a range of qualifications. They include
that around 18% of the products emissions result from
graduates in clothing technology, chemistry and food
transport. Usage-related emissions cannot be reported
chemistry, laboratory assistants and specialists in toy
here as no data can be gathered in this respect.
safety. They all spend their entire time ensuring that sup-
Jeans weighing around 640 grams cause greenhouse
pliers comply with and implement our quality standards.
gases of approximately 6.89 kilograms. Most of these
Many of the products are tested during development.
emissions are caused during the cotton harvesting and
Our quality assurance system defines which legally re-
manufacturing processes, closely followed by the thread
quired markings need to be carried on a product such
manufacture. By comparison, far fewer emissions occur
as usage instructions, warnings, the country of manu-
during transport.
facture and the contractor and determines the further
In over 40 products or product categories, our annu-
scope of testing.
al sales extend into the millions. In fiscal 2010, 41 dif-
Before finished goods are sent to us, our Quality As-
ferent products were classified as million sellers, with
surance department receives a sample. The suppliers
total sales of 117,556,000 items. These included socks,
test reports that accompany it are checked to ensure
mens and womens jogging bottoms, babywear, fleece
they refer to the correct product, and are accurate and
blankets, fitted sheets and childrens bubbles. Determi-
complete, and the sample is put through a second series
ning the carbon footprints of selected million-sellers will
of tests in the laboratory. Shipping of the goods is only
quickly and effectively help us improve the environmen-
approved once a product has passed these tests. After
tal quality of our range. Because we sell so many of these
the goods have been received at our main warehouse,
products, this approach will help us achieve the biggest
samples of the shipment are checked again by our Qua-
possible impact in terms of saving resources and envi-
lity Assurance department.
ronmental protection.
In addition to physical checks to test the durability of
Testing institutes we currently work with for quality control:
38
SGS Institut Fresenius
Eurofins Consumer Product Testing GmbH
Bureau Veritas Consumer Products Service GmbH
LABTECH Prfungsgesellschaft GmbH
TV Rheinland LGA Products GmbH
Hansecontrol GmbH
STR Testing & Inspection AG
Umweltlabor ACB GmbH
Labor Dr. Graner & Partner GmbH
WESSLING Laboratorien GmbH
5 PRODUCT S
Its important to us that, as well as being attractive, our product ranges

impress people with their quality. Thats why we measure, test and record
everything in our laboratories time and time again.
So its all the more annoying if we miss something. Thats what drives us
on to continue getting better.
Christian Deese, Head of Quality Assurance
Find out more about our work by watching this film on our website:
http://www.kik-textilien.com/unternehmen/presse/informationsmaterial/
filmmaterial/
products, goods are also tested to ensure they meet le-
a fashionable, slightly worn look. However, if suitable
gal and in-house requirements in terms of pollutants. In
protective measures are not taken during this process,
2010, our employees conducted close to 77,000 tests in
inhalation of the silica dust can lead to severe, irreversi-
the Quality Assurance departments laboratories.
ble lung damage, sometimes fatal. The special rules ap-
In addition to conducting checks on samples, shipping
plicable to such products/product categories form part
samples and upon receipt of goods, our in-house Quality
of the CSR package that each of our business partners
Assurance employees or independent testing institutes
agrees to and signs.
carry out random checks at suppliers, even during production. In doing so, we work closely with leading testing
TRANSPORT
institutes in Germany and abroad. Furthermore, our internal Quality Assurance department develops programmes
The transportation of goods from Asia or Europe, car-
to improve the quality of the products we buy and trains
ried out by or on behalf of KiK, led to greenhouse gas
its procurement colleagues, agencies in the source mar-
emissions of 25.7 kt in 2010. One of the main aims of our
kets, suppliers and importers.
climate protection strategy is to reduce that figure. Thats

why weve introduced a far-reaching scheme to balan-
DELISTING
ce out the emissions caused by the import and delivery

of goods, and contracted the independent consultancy
Products with components that do not adhere to legal
ECOFYS Germany GmbH to evaluate the report on the
standards or our own CSR guidelines are not accepted
greenhouse gas emissions of KiK Textilien und Non-Food
into our ranges. For that reason, we require our suppliers
GmbH.
not to use cotton sourced from Uzbekistan, as we know
In our calculations, we distinguish between direct and
that we cannot be certain that child labour wasnt used
indirect transport. Direct transport is when we import the
in its harvesting. To protect tropical forests, no paper
goods ourselves. Indirect transport is defined as all deli-
products from Indonesia or other questionable sources
veries made by importers. These are made free of charge
may be used. We have also placed a ban on the use of
to our main warehouse.
sandblasting. This procedure involves spraying products
The vast majority of goods, 71% in the 2010 fiscal year,
such as jeans with sandblast at high velocity to give them
are transported directly. As a result, the majority of our
39
Goods received
Transport from production sites to the port/airport within Asia

Truck
Transport from Asia to Europe

Ship
Plane
Forwarding of sea containers to the central warehouse in Bnen

Combined transport
Outgoing goods
Rail
Inland vessel
Truck
Distribution of goods to 3,000 stores in all European countries

Truck
Return of packaging materials
Means of transport used for shipping goods in and out
overall emissions, namely 16 kilotonnes in 2010, was due
close to 100% sea freight, we have attained a leading po-
to direct transport.
sition among retailers in terms of reducing CO 2e emissi-
Indirect transport mostly comprises the transporta-
ons caused by transport.
tion of goods from European countries to our central
This transport leads to the emission of 15,454 tonnes
warehouse in Bnen. Given that we are not responsible
of CO 2e every year. For the onward transportation of
for this transport, no data is available. For the purpose of
goods from the ports of Hamburg, Rotterdam and Ant-
our calculations, we have assumed that these take place
werp to our central warehouse in Bnen, 91% of delive-
within Europe purely by truck. Indirect transport therefo-
ries are made using the environmentally friendly means
re led to CO 2e emissions of nine kilotonnes, thats 36% of
of rail and inland vessels. Just 9% of goods are trans-
total emissions. This is over proportional given the volu-
ported to our Bnen warehouse by truck. Nevertheless,
me of goods transported using this method.
this method of transportation causes the majority of our
Lastly, we examined both modes of transport in detail.
emissions (46%).
Direct transport can be broken down into overseas im-
This demonstrates the potential for improving our car-
ports by ship or plane to Europe, and then the final leg
bon footprint. We will therefore be continuing our measu-
from the major European ports to our main warehouse in
res to further reduce greenhouse gas emissions caused
Bnen by inland vessel, rail and truck.
by the use of trucks in direct and indirect transport.
In 2010, just 24 of the 12,400 deliveries from Asia arri-
However, our CO 2e calculations also clearly show that,
ved by air corresponding to just 0.19% of total delive-
particularly when it comes to transport, the discount pro-
ries and causing just 2.5% of overall emissions. By using
curement strategy has a reduced impact on the environ-
40
5 PRODUCT S
ment thanks to efficient logistics and strict cost manage-
As a matter of principle, we do not use outer packaging
ment. By almost exclusively using ships to transport our
as well as product packaging. This helps save resources,
goods between Asia and Europe, plus the use of rail and
saves space during transport and associated energy,
inland vessel, we significantly reduce our greenhouse
and reduces otherwise avoidable waste.
gas emissions.
Since 2009, silica gel packets can only be used to absorb moisture during the transportation of goods with
PACKAGING
prior special approval. As a result, our use of it fell from

25 tonnes in 2009 to 10 tonnes in 2010. As part of KiKs
To ensure those products that have passed our se-
paper strategy, paper and cardboard are to be replaced
lection criteria and strict quality assurance checks also
by an appropriate recycled product wherever this has not
arrive at our stores undamaged, they need to be well
yet happened.
packaged for transportation. Cardboard is by far the
In 2010, the plastic shopping bags available in stores
most widely used packaging material for transporting
were also replaced with bags made from recycled plas-
our goods, though other materials are also used, such
tic.
as wood or film. Because we take care to use as much

packaging as necessary but as little as possible, we save
For more information about our products, see Facts and
on costs and materials.
figures in section 2, figures 2-3, section 4, figures 20-23,
For all stores within a 300 km radius of our Bnen

warehouse, transport packaging is transported back
section 5, figures 24-27 and section 6, figures 28-33, plus

tables 9-11.
to the warehouse once the goods have been delivered,

using our own fleet of trucks, and sold on as recycled
material. In our other German and European stores, the
transport packaging is collected by the shipping company and sold by them as recycled material.
Based on the data from approximately 1,000 stores
where transport packaging is returned to Bnen, its possible to roughly calculate the total amount of transport
packaging used by all stores. In fiscal 2010, 24.6 kilotonnes of transport packaging was used, of which 19.6
kilotonnes was cardboard. That amounts to 39.4 g of
transport packaging per product a 7 g or 15% reduction
on the previous year.
In addition to transport packaging, some products are
also protected by product packaging made, for example, from paper, plastic or film, that must be removed and
disposed of by the customer before product use. We also
succeeded in reducing the volume of product packaging
we used in 2010 over the previous year, by 0.19 kilotonnes. This corresponds to a packaging reduction per product of 3%.
41
SUSTAINABILITY PROGRAMME FOR PRODUCTS

The aim: reduce transport-related emissions based on 2010 figures
Action
Deadline
28
Keep air freight emissions to below 5%
ongoing
29
Create visibility into goods shipped to Europe via specific routes and means of transport from Asia
10/2011
30
Produce an emissions balance sheet for Asia-Europe goods transport based on specific means of transport
2012
31
Provide visibility into goods received via specific routes and means of transport from the ports of Hamburg, Rotterdam and 12/2011
Antwerp to Bnen
32
Calculate emissions for transport from the ports of Hamburg, Rotterdam and Antwerp to Bnen
2012
33
Test the expansion of the various emissions calculations to include NOx, SO2 and particulates
06/2012
34
Establish a CO2e reduction target by 2015 for goods received
12/2011
The aim: save resources in packaging

Action
Deadline
35
Develop shipping specifications for suppliers in terms of transport packaging for the key ranges of clothing and toys based 05/2012
on the principle of reduce, reuse, recycle
36
Create transparency in respect of transport packaging material, quantities, procurement and disposal
12/2011
37
Calculate the type and quantity of carrier bags and replace 25% with environmentally friendly alternatives in 2011 and 50%
in 2012
10/2011
The aim: increase use of eco-friendly materials in our clothing range

Action
Deadline
38
Continue the baby organic cotton collection, in accordance with GOTS standards
12/2011
39
Check the use of organic-mix cotton in our children's collections
06/2011
40
The offering of 4-8 Toxproof-certified products
06/2012
42
5 PRODUCT S
The aim: improve product safety based on 2010 figures

Action
Deadline
41
Women's clothing: increase the proportion of Oeko-Tex standard 100 products to at least 25%
06/2013
42
Men's fashion: increase the proportion of Oeko-Tex standard 100 products to at least 40%
06/2013
43
Children's and baby clothing: increase in the proportion of Oeko-Tex standard 100 products to at least 30%
06/2013
44
Underwear: increase the proportion of Oeko-Tex standard 100 products to at least 40%
06/2013
45
Hosiery: increase the proportion of Oeko-Tex standard 100 products to at least 60%
06/2013
46
Home textiles: increase the proportion of Oeko-Tex standard 100 products to at least 65%
06/2013
47
Test a control system for enforcing the ban on sandblasting
12/2011
The aim: make our noon-food range more environmentally friendly

Action
Deadline
48
Categorize the entire range according to specific hazards and risks; develop criteria for at least four categories (including
toys and household goods)
complete
49
Introduce minimum standards for products containing paper and/or wood
12/2010
50
Create transparency in respect of products containing paper and/or wood: writing materials (notepads, greeting cards)
12/2011
51
Writing materials: test sales of 'Blue Angel' label recycled materials and replacement of products following a successful
test phase
05/2012
52
Create transparency in respect of the origin and manufacture of products containing wood and/or paper in two further
categories
12/2011
53
Carry out of a chain-of-custody wood audit
02/2012
54
Expand conversion of orders of products containing wood and/or paper to FSC, FSC-mix or recycled products, to go on
sale starting winter 2012
09/2012
The aim: develop fully sustainable product ranges carrying the slogan Products that help
Action
Deadline
55
Create a new sustainable products procurement position
12/2011
56
Expand the existing range of patchwork rugs and seaweed baskets
12/2011
57
Establish one to two new products
12/2012
43
44
6 SITES
Closely aligned processes and efficient

transport logistics, where goods are
transported to our stores in an
eco-friendly way, are a key expression
of our sustainability strategy.
Burkhard Schltken, Managing Director of KiK Logistik I GmbH
45
EUROPEAN HEADQUARTERS
All KiK Textilien und Non-Food GmbH business processes are managed from our headquarters in Bnen. This is
also where the headquarters of KiK Logistik I GmbH and
our main warehouse are located.
Day-to-day processes in management, stores and the
warehouse call for the use of large amounts of energy.
We distinguish between the direct use of primary energy namely natural gas, heating oil, petrol, diesel and
gas for our fleet of cars and trucks and the indirect use
of electricity, district heating and fuel by our forwarders.
Natural gas used for heating purposes is by far the biggest contributor to our use of primary energies. In terms
of indirect energy consumption, electricity is the most
important factor. Because we are continuously growing
as a company, our energy consumption also tends to rise
slightly year on year. In 2010, we began to supply some
of our stores in Germany with green energy. This led to a
significant reduction in electricity-related emissions in
total, greenhouse gas emissions fell by 15.4 kilotonnes
across Germany.
Our on-site sustainability strategy is aimed at reducing
or avoiding the use of non-renewable resources such
as electricity, paper and water, or replacing them with a
more eco-friendly alternative.
Using the environmental management system, we have
In 2009, we started to introduce an environmental ma-
been able to define six relevant environmental aspects at
nagement system for our European headquarters. The
our European headquarters: natural gas, electricity, wa-
system was fully implemented in 2010 and, in January
ter, paper, office materials and waste. For each of these
2011, was certified by TV Nord according to the DIN EN
aspects, we have developed a strategy to improve our
ISO 14001:2009 standard.
environmental performance. We collect data and make
The DIN EN ISO 14001:2009 standard is the basis for

setting up, introducing, managing and developing envi-
assessments on an ongoing basis to enable us to review

our change processes.
ronmental management systems. Through application
The parameters relevant to operational environmental
of the standard, environmental protection becomes so
protection are documented in an environmental hand-
embedded in the management of a company that envi-
book available to all employees at our Bnen site.
ronmental factors are taken into account in all day-to-day
Since the environmental management system was in-
tasks and decisions. The company has an effective tool
troduced, and with the help of key performance indica-
for capturing its environmental impact and can strategi-
tors, the average electricity consumption and average
cally manage its environmental performance.
CO 2e emissions per administrative employee have been
46
6 SITES
Open spaces around KiKs European headquarters

have been transformed into a near-natural biotope
gas emissions per employee fell significantly in 2010

compared to the previous year.
Paper usage in day-to-day office activities at our European headquarters is on a par with the size of the workforce there. In 2009, around 122 tonnes of paper was
used in fiscal 2010, this was reduced to 81 tonnes.
Until year-end 2008, only paper from fresh fibre was
used. Starting in 2009, however, this has been gradually phased out and replaced by recycled paper. By
2010, we had reduced our use of non-recycled paper
calculated. Similar key indicators for consumption and
to 25%. Thanks to our increased use of recycled paper,
emissions per pallet have been introduced in logistics.
production-related electricity consumption was reduced
In 2010, electricity consumption per administrative em-
by 391,680 kWh in 2010, and production-related water
ployee was reduced by around 7%. Average greenhouse
consumption by 1,902 m 3 . In addition, the environment
GreenBuilding is a programme run by the European Commission to improve

energy efficiency and promote the use of renewable energies in non-residential buildings. The aim of the programme is to drive investment in energy efficiency and
renewable energies, as well as to increase security of supply and climate protection in
the European Union.
47
was spared 10.4 tonnes of CO 2e emissions. With double-
dispatch gates on the south side of the warehouse for
sided printing, we reduced the volume of paper used by
delivery to specific stores.

The companys own fleet comprises 20 trucks, which
more than 30%.

The transition to 100% environmentally friendly office
deliver goods to all our stores within a 300 km radius
materials at our headquarters and in our stores will be
of the warehouse. All other deliveries from our main
complete by late 2011.
warehouse is handled by a range of regional forwar-
From January 2013, only recycled paper bearing the
ders. To reduce the CO 2e of goods transport from the
Blue Angel label, or at least FSC-certified paper, will be
warehouse to our stores, we aim to have developed a set
used for advertising materials. Currently, the percentage
of mandatory specifications and a training programme
of recycled paper used in our sales brochures is 79%.
for our transport providers by mid-2012.
By designing all the green spaces around our Euro-
We are currently conducting an inventory of our entire
pean headquarters to look like natural habitats, we al-
company fleet. As part of this, parameters such as trans-
low our employees to experience the integration of envi-
port performance and fuel consumption will be determi-
ronmental aspects into our business activities. Working
ned for each vehicle. This data will serve as the basis to
together with the Karl Kaus foundation and local tree
further reduce CO 2e emissions related to the transport
nurseries and gardening firms, we have developed the
of goods.
approximately 1,500 square metres of land surrounding

our headquarters to create homes for small mammals,
OUR STORES
insects and birds. The walls of our high-bay warehouse

are just the right height for nesting, in particular for swifts
and bats.
Due to the large number of stores we operate, our electricity consumption is by far the greatest in this area. During 2010, this amounted to a total 100.93 million kWh for
LOGISTICS
our 2,500 stores across Germany. Compared to the previous year, that represents a slight increase in average
Our subsidiary KiK Logistik I GmbH maintains one of
electricity consumption per store of around 2.5%.
the most modern high-bay warehouses in Europe. Total
However, thanks to our conversion to green power in
storage space amounts to 65,000m , and is divided into
2010, we significantly reduced CO 2e emissions. A total
a flat shelf store of 57,300m 2 and approximately 23,000
of 19,370 carbon dioxide equivalents were prevented, re-
pallet spaces, as well as a 7,700m 2 high-bay storage
sulting in an 11.8% fall in CO 2e emissions compared to
area. The high-bay storage area is structured in the way
2009.
of 14 picking lines measuring 120 metres long and 32
In 2009, KiK became the first European clothing dis-
metres high, and can accommodate around 40,000 pal-
counter to partner the European Commissions Green-
lets. Compared to the previous year, average electricity
Building programme, designed to improve energy effici-
consumption per pallet remained the same in 2010, as
ency. So far, we have built 15 new stores according to the
did average CO 2e emissions per pallet.
GreenBuilding standard and had them certified. These
Around 120 deliveries are made via the 51 receipt gates

every day. In 2010, 680,000 pallets were unloaded.
stores have optimised cladding and an innovative ventilation system. Heating is provided by an energy-efficient
Each KiK store receives deliveries of new goods once
thermal heat pump. In these stores, we have achieved
a week. On a daily basis, 150 trucks are loaded at the 72
average energy savings of 50% and reduced CO 2e emis-
48
6 SITES
When getting our environmental management system off the ground, the
successful integration of our employees at our European headquarters
in Bnen was particularly crucial. Their marked environmental awareness is
proven by the range of projects currently being implemented or in planning to improve our environmental
performance across the supply chain.
Khalid Doukkali, Cert Auditor TV Nord
sions by 40%. We plan to set up a further 15 GreenBuil-
For more information about our headquarters and stores, see
ding stores each year.
Facts and figures in section seven, figures 34-46 and tables
To make our existing stores more energy-efficient as

well, we introduced a smart metering project in January
11-13, section 8, figures 47-53 and tables 13-14, section 9,

figures 54-70 and tables 15-16.
2011 in conjunction with Tengelmann Energie and Deutsche Telekom. During the one-year pilot scheme, electricity consumption in 53 KiK stores will be measured at
various points in the building every 15 minutes. This will
enable us to identify time periods and devices that see
a lot of electricity is used, and help us reduce electricity
consumption by up to 25%.
KiK is a funding partner of the German Environmental Management Association (B.A.U.M. e.V), the largest
business environmental initiative in Europe. The aim of B.A.U.M. is to raise awareness about the
principles of sustainability among companies, associations and institutions, and support them in implementing
preventative company management systems and introducing measures and initiatives to support
environmental and sustainability management.
49
ON-SITE SUSTAINABILITY PROGRAMMES

The aim: reduce environmental pollution caused at our sites
Action
Deadline
58
Send post via "GoGreen"
06/2011
59
Create transparency and use 100% environmentally friendly office materials made from paper and cardboard in our European headquarters and stores
12/2011
60
Provide visibility into the number and types of office equipment used and implement a programme to reduce energy consumption caused by use of office equipment
12/2012
61
Replace the paper-based advertising materials we use with 'Blue Angel' label recycled papers or, if that is not possible, to
FSC-quality, 45% in 2011, > 70% in 2012
12/2012
62
Replace our advertising brochures with 'Blue Angel' recycled material or, if not possible, to FSC-quality, 20% in 2011, >
70% in 2012
12/2012
63
Trial the conversion of business cards to white and 'Blue Angel' label material or, if not possible, to FSC-certified material
12/2011
64
Replace the cleaning materials we use at our headquarters and in our stores with more environmentally friendly alternatives (where, possible, bearing the 'Blue Angel' seal)
06/2012
65
Replace the toilet paper we use with toilet paper made from recycled materials
12/2010
66
Replace the copy paper we use with 'Blue Angel' and FSC-quality recycled paper
12/2010
67
Raise awareness among employees about how to conserve resources through paper usage in their day-to-day work
ongoing
68
Trial the use of automatic systems to improve air conditioning at our European headquarters
06/2011
69
Equip all taps at our European headquarters with water-saving aerators
03/2011
70
Provide visibility into electricity consumption caused by lighting and the European data centre
12/2011
71
mobil&Job campaign: pilot project to reduce use of personal vehicles
06/2012
The aim: improve the working environment to increase employee motivation

Action
Deadline
72
Modernize kitchens, canteens and showrooms
10/2011
73
Redesign the canteen's outdoors area and transform the lawn
09/2011
74
Select three designated smoking areas
07/2011
The aim: increase biodiversity around sites

Action
Deadline
75
Redesign three open spaces into a quasi-natural habitat
12/2012
76
Provide homes for different species of animals
10/2011
50
6 SITES
The aim: reduce environmental pollution caused at our sites

Action
Deadline
77
Convert our German stores to 100% green energy
01/2011
78
Trial to convert to 100% green energy in Austria, followed by implementation
12/2012
79
Build 15-20 new stores according to the EU's GreenBuilding standard in 2011 and 2012
ongoing
80
Pilot project: convert the lighting in selected stores from T8 to T5
10/2011
81
Replace the lighting in 150 stores with more energy-efficient alternatives in 2011, and in 300 stores in 2012
2012
82
Reduce electricity consumption by 10% in 2011 and 15% in 2012 in converted stores
12/2012
83
Renovate at least 70 stores annually
12/2012
84
Develop a concept for the design of social spaces
12/2011
85
Gradually replace in-store refrigerators with A+ refrigerators
12/2013
86
Pilot project: participate in a smart metering programme with 50 stores, to optimise our use of energy
09/2011
87
Trial replacement of the company fleet for departmental heads and management executives with more energy efficient
alternatives, with a view to reducing CO2 emissions
12/2011
88
Pilot project with natural gas-powered vehicles to determine ranges, consumption and costs
10/2011
The aim: provide visibility into our vehicle fleet

Action
89
Deadline
Identify and record the entire KiK truck fleet since 2005
ongoing
annually in August
The aim: reduce environmental pollution and transport-related emissions

Action
Deadline
90
Capture and calculate the volume of fuel used across our entire truck fleet
ongoing
91
Calculate the CO2e emissions of the KiK truck fleet and expand calculations to include NOx, SO2 and particulates
06/2012
92
Trial procurement options for a vehicle with bi-fuel or gas drive for the KiK truck fleet
ongoing
93
Trial rolling resistance-optimised tyres and low-viscosity engine oils
ongoing
94
Develop a driver training programme
complete
95
Define a CO2 reduction target for 2015
12/2011
96
Develop environmentally relevant requirements for logistics providers; workshops with selected partners
06/2012
97
Calculate the transport volume and impact in tonnes per regional forwarder
ongoing
annually in January
98
Calculate total emissions and emissions per regional forwarder
10/2012
51
52
7 EMPLOY EES
Working at KiK means laying

the foundation for a successful
career, accepting responsibility and a good work-life
balance. We are proud of how
motivated our employees
are and the way they take
advantage of these opportunities as the staff campaign we
launched in September so
impressively shows!
Heinz Speet,
Managing Director, HR
53
ATTRACTIVE JOBS HAPPY EMPLOYEES
ployees have to move when they take a job with us.
We provide over 20,000 jobs in Europe, and many more
person the applicant is. What matters most is the perso-
will be added in the years to come. As one of the fastest
nal impression a candidate makes on us. Certificates or
growing retail companies in Europe, we offer recession-
a spotless CV are of less importance. All this means we
proof jobs with a future. Our HR strategy gives every
have a very diverse workforce; in Germany alone, people
employee the opportunity to develop their career at KiK
from 76 nations work for us.
When recruiting staff, it all comes down to what kind of
through training and qualification programme s.

In addition, the fact that we are represented across
Germany guarantees maximum flexibility. Hardly any em-
At 16 years old, our youngest employee is still in education while, at the age of 78, our oldest is a pensioner
and works part-time in one of our stores.
Ive been working at KiK for 14 years now and I still

enjoy every minute. The atmosphere in our stores is just
great! Youre always busy and every day theres a new
surprise, and that helps keep me in shape.
Heinrich F., part-time employee, 78 years old
Because I married very young and had two children,

it was difficult for me to get professional training. As a
team leader at KiK, I was offered the chance to qualify
as a regional manager and, in doing so, get the training
I needed. Within one-and-a-half years, I had successfully completed my training as a retail saleswoman and
currently work as a regional manager. The opportunities
you get at KiK arent on offer at every company just
working here is brilliant!
Kiriaki K., regional manager, 41 years old
54
7 EMPLOY EES
At year-end 2010, 16,980 people were working for us

in Germany in an even split of full and part-time jobs.
25% of our employees are on part-time contracts with a
gross monthly salary of no more than 400 euros and/or
temporary contracts.
Our figures are particularly strong when it comes to
putting women in management: 58% of our management
executives are women. They work in second and third-
Im from Kazakhstan, where I was a teacher and
tier management roles, such as department or regional
studied accounting. While I was waiting for my de-
management, but also in senior management positions.
grees to be recognised here, I started working part-
One of the main aims of our HR strategy is to keep the
time at KiK. I liked it so much that, at the age of 43,
number of women in management above average and,
I decided to start training again at KiK. Im now wor-
where possible, keep improving it.
king towards becoming a regional manager.
The proportion of women in our workforce 92% is
Evgenia Z., part-time employee, 45 years old
high for the industry. So weve come up with a few ideas

to help mothers: if a woman gets pregnant during her
training, she can continue it on a part-time basis. And
after the birth of a child, once the maternity/paternity leave has ended, employees can take on part-time employment and flexible working hours.
COMMUNICATION AND CO-DETERMINATION

The working environment in our company is based on
trust, fairness, openness and a mutual appreciation and
respect of one another. Thats why its important to us
that all employees be able to approach management directly if they have any concerns or difficulties.
With this in mind, we developed what we call our worry
letter. This can be sent to senior management or any
other superior. Every message is dealt with on a confi-
Ive been working for KiK for almost six years
dential basis and answered directly by the person to
now, and Ive had two children during that time.
whom it is addressed.
That was only possible because I was able to
And thanks to the introduction of an internal sugges-
continue my training as part of a part-time arran-
tion scheme, employees can communicate suggestions
gement. My managers have always been very
and proposals internally using an idea letter. Usually,
understanding and always supported me.
the idea letter is addressed to the store management
Stefanie W., HR development, 26 years old
department, and the employee who sends it receives

feedback from that department over the phone.
Of course, management also seeks to inform all em-
55
ployees about any relevant decisions or changes at the

company as soon as possible. In our European head-
Management meets regularly at scheduled times to

share information.
quarters, this usually happens through meetings with
We have had initial experiences in terms of co-deter-
management, as well as by email. For longer-term an-
mination with the works councils in our subsidiaries KiK
nouncements, we use our employee magazine. Shorter-
Logistik I GmbH and KiK Austria
term announcements are made by posting them in display cabinets. In addition, headquarters and individual
PAY AND SALARY
stores can also communicate with staff by placing letters

and other inserts in the envelopes with their wage slips.
When it comes to wages, we set a clear example for
Our general employee newsletter is published once a
the clothing industry when we became the first clothing
quarter, in the style of a magazine. It provides in-depth
discounter to introduce a basic wage on 1 October 2010.
information about key issues, as do our manuals, the
Since then, every employee in Germany has received an
Leitlinien (guidelines) publication and Der Rote Faden
hourly wage of at least 7.50 euros. In particular, that is
(the key issue) information brochure.
an improvement for part-time workers in regions with a
JOBS REQUIRING FORMAL TRAINING AT KIK IN 2011

Stores
Logistics
Certified retail assistant (m/f)
Bachelor of Arts Logistics (m/f)
Certified retail expert (m/f)
Forwarding and logistics services agent (m/f)
Retail sales assistant (m/f)
Warehousing logistics specialist (m/f)
Salesperson (m/f)
Warehouse operator (m/f)
Headquarters
Bachelor of Arts Retail (m/f)
Architectural draughtsman (m/f)
Business economy expert/Bachelor of Arts (m/f)
Office administrator (m/f)
Laboratory assistant (m/f)
IT specialist in application development (m/f)
IT specialist in systems integration (m/f)
Property agent (m/f)
Wholesaling and foreign trade agent (m/f)
Marketing communications officer (m/f)
HR services officer (m/f)
56
7 EMPLOY EES
Good work deserves to be well paid. Thats why HDE calls for a minimum
wage for all retail staff.
By implementing a basic wage of 7.50 euros per hour, discount clothes retailer
KiK has sent out the right message to its employees, but also to the entire
industry. We are delighted that our commitment to a minimum wage has been
boosted by KiK. But collective bargaining and remuneration are just one
aspect: in the controversy-fuelled political debate, its important to remember
that only those companies that succeed in attracting and retaining well
trained, motivated employees will succeed in the retail sector in the long term. And to do that, they need to
pay them appropriately! As an employer, KiK has taken this on board.
Stefan Genth, CEO of the German Retail Federation (HDE).
poor infrastructure even before the introduction of the
each month. There is also a staff discount of 15% on all
minimum wage, higher hourly rates were paid in major
purchases from our stores and, for new parents, a star-
cities and catchment areas. Trainee pay was also increa-
ter package containing the basic equipment to help them
sed across all areas of the business by an average 9% in
care for their baby. For our staff in sales management,
2010, taking it up to around 600 euros per month initially
performance-related pay is governed by bonus agree-
and then 800 euros in the last year of training.
ments, while all other employees are offered bonuses
In addition to pay, we offer employees a capital-for-
for outstanding performance. A bonus is also awarded
ming savings scheme once they have been with us for
to anyone who brings a new colleague into the team. The
one year, as well as numerous bonuses and social be-
same applies when one of our employees helps us to lea-
nefits. We support our employees with a company pen-
se a new commercial property.
sion plan, contributing 10% of the value of their salary
help and hope Foundation

We firmly believe that everyone deserves the chance to have a future with prospects, regardless of their background,
so the support of socially disadvantaged children and teenagers forms one of the most important aims of our social
commitments. In 2005, the charitable foundation help and hope was set up by Stefan Heinig and other companies
committed to the cause. The foundation works in Germany and internationally to help disadvantaged children, and
operates its own care centre in Herne, North Rhine-Westphalia.
57
In Germany, someone is diagnosed with leukaemia

every 45 minutes and many patients can only be
helped through stem cell donation. Thats why we
support the German bone marrow donor registry
(DKMS) by calling on employees and customers to
PROMOTING YOUTH: THE KIK TRAINING

MODEL
register themselves as donors. KiK covers the costs

of registration for each employee prepared to donate. Since the campaign started, over 250 KiK em-
Training our young employees, supporting them and
ployees have already registered as potential bone
helping them achieve management positions is a princip-
marrow donors and, in October 2010, our colleague
le that we have pursued since we went into business. We
Sabine Zwang from Bad Hersfeld, was given the op-
place great importance on the quality of the training we
portunity to save someones life.
offer, given that our success as a company depends on

the strengths and potential of our employees.
In fiscal 2010, we awarded 544 training places in Germany. In 2011, around 750 places will be offered for 19
different positions. It is important to note that there is no
upper age limit for people to start training at KiK.
With around 10% of our workforce made up of trainees,
we rank among the top German companies, and our acceptance rate in 2010 was clearly above the national average, at 74%.
Since the company was founded in 1994, 2,873 people
have successfully completed their training at KiK, and we
are proud of the good records of our former trainees: to
The entire process was straightforward and pain-
date, 49% remain at the company.
less. Id donate again whenever its needed. Alt-
The success of our HR strategy in terms of training is
hough you dont know the person youve donated
demonstrated by the fact that 873 of all former trainees
to, you know that you may have saved someones
still with the company work in management positions.
life. That feels really good.
In terms of internal training, we offer all sales and pro-
Sabine Z., team leader, 26 years old
curement employees the opportunity to gain certification. The courses consist of 15 different modules, including seminars and practical workshops, that take place
over the course of a year. Since 1998, close to 1,000 employees have taken part in these programmes. Sales assistants with good/very good results can apply to take a
Our training offering is rounded out by seminars on
trainer aptitude test. This training, which concludes with
project and time management, plus English lessons.
the award of an AdA certificate, is obligatory for all team

leaders. In addition, we offer team leaders training on
For more information about our current employee campaign,
KiKs management guidelines.
visit our website: http://www.kik-textilien.com/unternehmen/
In 2009 and 2010, 10.2% of all employees underwent
de/karriere/kik-der-chancengeber/
such training. In staff management seminars, those in

management positions are shown how to evaluate em-
For more information about our employees, see Facts and
ployees and produce agreements on targets and objec-
figures, included as an appendix to this report in section 10,
tives.
figures 71-78 and tables 17-24.
58
7 EMPLOY EES
sustainability programmes for employees

The aim: make KiK more attractive as a modern employer
Action
Deadline
99
Maintain the proportion of women in management at more than 50%
ongoing
100
Plan, develop and introduce a 'new mother programme' with a starter package
06/2011
101
Plan, develop and introduce a package for retirement arrangements
10/2011
The aim: increase the proportion of employment relationships subject to insurance contributions to more than 75%
Action
102
Deadline
Develop and introduce an indicator per sales manager/region to show the proportion of employment requiring payment of
national insurance
12/2011
The aim: transform and expand employee communications systems

Deadline
Action
103
Further develop the worry letter and ideas letter employee complaints/suggestion systems
12/2011
The aim: make KiK more attractive as a trainer

Action
Deadline
104
Document all training in the 19 jobs starting from 2000, taking into account training for young mothers and training with
no age restrictions, among others
06/2011
105
Plan, develop and implement a training programme for unskilled workers/employees who did not complete their school
education
08/2011
106
Plan, develop and introduce an extra-occupational training programme in our commercial departments
10/2011
107
Plan, develop and introduce a training and qualification programme accessible to all store workers
01/2012
108
Maintain the training rate at 10% in 2011, with the plan to increase it to 11% in 2012
12/2012
109
Maintain the number of trainees taken on permanently at 61%, above the national average
ongoing
110
Keep the proportion of former trainees who stay with us for at least three years at 50%
ongoing
111
Lead more than 55% of trainees to management positions, including team leadership
ongoing
59
Appendix
Facts and figures
Glossary, abbreviations,
Page 60
external sources
Page 88
GRI Content Index
Independent auditors report
Page 82
Page 90
1. Company
2. Quality
FIGURE 1: THE GROSS TURNOVER OF KIK TEXTILIEN UND
FIGURE 2: IN 2010, 2,658 PRODUCTS WERE PICKED BY
NON-FOOD GMBH HAS INCREASED CONTINUOUSLY
ADMINISTRATIVE BODIES AS SAMPLES AND TESTED

ACCORDING TO A WIDE RANGE OF CRITERIA. JUST 29 OF
checked products
1.60
product
complaints
1.40
1.20
Number of products
Turnover [billion euros]
THESE TESTS RESULTED IN A COMPLAINT

1.80
1.00
0.80
0.60
0.40
0.20
3,500
3,000
2,500
2,000
1,500
10
20
*
09
20
500
20
08
/2
00
00
07
/2
20
20
06
/2
00
1,000
2006
* 2009: short fiscal year (May to December)
2007
2008
2009
2010
In 2009, the fiscal year was aligned with the calendar year.
FIGURE 3: A COMPLAINT RATE OF 1.1% MEANS THAT
The short fiscal year only ran for eight months, from May to
98.9% OF THE PRODUCTS TESTED BY ADMINISTRATIIVE
December 2009, which explains the lower turnover.
BODIES PASSED THAT TEST. IN FIGURES: 2,629 OF 2,658
TABLE 1: THE SHARE OF NON-FOOD PRODUCTS ROSE BY

3.4% IN 2010
Textiles
Non-food*
2009
77.8 %
22.2 %
2010
74.3 %
25.6 %
Complaints [%]
PRODUCTS TESTED PASSED THEIR TESTS

8
7
6
5
4
3
* The non-food range consists of party products, cleaning agents, accessories, decorations, household products, home textiles, food, toys, office
materials, petcare and drugstore products
60
2
1
2006
2007
2008
2009
2010
9 Daten und Fakten
3. Social standards
TABLE 3: IN AN AUDIT, SUPPLIERS ARE TESTED ON
INCREASED TO 71%
FIVE KEY POINTS
Imports [%]
FIGURE 4: IN 2010, DIRECT IMPORTS WERE
Depending on the country and its specific laws, more than 175 points are
checked during an audit. These can be broken down as follows:
100
80
indirect imports
Area of focus
Abbreviation
Explanation
Health & safety
H&S
Personal protection equipment

Fire prevention measures
Accident first aid
Emergency planning
Machinery safety
Documentation
Docmtn.
Proof of age
Time keeping
Payroll
Wages
Wages
Wage deductions
Minimum wage
Delayed wage payment
Overtime
Overtime
Overtime
Days off
Communication
Comms.
Suggestion scheme
Worker representation
direct imports
60
40
20
2009
2010
FIGURE 5: AT 60%, CHINA IS OUR BIGGEST SOURCE

MARKET FOR DIRECT IMPORTS
Direct imports [%]
1
China
Bangladesh
1
4
India
Phillippines
Pakistan
FIGURE 6: SINCE 2007, 1,180 AUDITS AND RE-AUDITS

HAVE BEEN CONDUCTED
20
60
Audits [number]
Taiwan
Others
400
300
200
100
TABLE 2: EXPLANATION OF AUDIT aND RE-AUDIT

Audit
Re-audit
- checking production sites social and environmental

aspects, based on the requirements of the KiK Code
of Conduct
- announced visits carried out by accredited and
independent external auditing companies
- like an audit, but unannounced and performed at
regular intervals depending on the suppliers performance
- ensures improvement measures are being implemented, while also capturing a companys current social
and environmental performance
2007
2008
2009
2010
Since 2007, most of our suppliers have been checked for

compliance with our Code of Conduct as part of the auditing
programme. Currently, 92% of active direct suppliers have
been audited.
FIGURE 7: IN THE FIRsT AUDIT, MOST OF OUR ACTIVE SUPPLIERS SHOW SIGNIFICANT ROOM FOR IMPROVEMENT
Suppliers [%]
5
20
critical
needs improvement
good
75
61
TABLE 4: CATEGORISATION OF RESULTS

critical
FIGURE 11: SINCE 2007, 45 WORKSHoPS HAVE BEEN
Factory has serious failings which must be quickly and

demonstrably corrected.
HELD ON THE TOPICS OF SOCIAL STANDARDS, AUDIT

PROCEDURES AND FACToRY CHECKS
needs improvement Factory has failings that need to be demonstrably

corrected within a certain timeframe.
Factory has no failings or only slight failings, which
need to be demonstrably corrected within a certain
timeframe.
FIGURE 8: IN BANGLADESH, ALL ACTIVE SUPPLIERS
Workshops +
participants [number]
good
Workshops
200
Participants
150
100
50
HAVE BEEN AUDITED

2007
Suppliers [%]
5
15
2008
2009
2010
Supplier certification
Bangladesh
Employees of Consulting Service International (CSI) offer qualification programmes for suppliers in China and
critical
needs improvement
good
Bangladesh. These qualification programme s begin with

an initial visit (quick scan) and end with a final visit. The
programmes take an average of 4-6 months to complete,
during which time suppliers make improvements based on
a correction plan, with ongoing, professional support from
CSI, who also manage and check on progress. In 2010, 20
80
suppliers from Bangladesh and 16 from China took part in

qualification programme s.
FIGURE 9: AFTER THE RE-AUDIT, THE NUMBER OF
SUPPLIERS CLASSIFIED AS GOOD INCREASES
TABLE 5: EXPLANATION OF QUICK SCAN
Suppliers [%]
Quick Scan
15
24
Bangladesh
- review of production sites for social and environmental

aspects, based on the requirements of the KiK Code of
Conduct
- performed announced, by independent auditors
- in addition, a subjective assessment is made of the
status quo and the partner's potential for development
critical
needs improvement
good
FIGURE 12: AT 50%, THE SUCCESS RATE IN OUR

Qualification programme IN BANGLADESH IS TWICE
61
FIGURE 10: THE PURCHASING VOLUME SOURCED FROM
Success rate [%]
AS HIGH AS IN CHINA
75
Bangladesh
50
China
AUDITED, ACTIVE SUPPLIERS IN OUR KEY MARKETS IS 80%
100
80
completed
successfully
60
40
62
not audited
an
w
Ta
i
an
ki
Pa
in
pp
ili
Ph
audited
st
es
a
di
In
hi
C
Ba
na
20
n
de gla
sh -
Purchasing volume [%]
25
programme ongoing
ended prematurely
Fact s and figures
FIGURE 13: ON FIRST-TIME VISITS, NO SUPPLIERS WERE
FIGURE 16: THE COMPLIANCE RATE IN BANGLADESH
RATED AS GOOD
INCREASED TO 83% DURING 2010

2010
2009
Evaluation [%]
60
Bangladesh
critical
needs improvement
Compliance rate [%]
Bangladesh
40
100
80
60
40
20
H&S
Docmtn.
Wages
Overtime
Comms
TABLE 6: THROUGH CERTIFICATION, THE COMPLIANCE

FIGURE 14: ON FIRST-TIME VISITS, ALL SUPPLIERS
RATE INCREASES MOST SIGNIFICANTLY IN TERMS OF
SHOWED ROOM FOR IMPROVEMENT
OVERTIME
Evaluation [%]
50
50
Bangladesh
China
critical
needs improvement
FIGURE 15: AT 60%, THE HIGHEST NON-COMPLIANCE
Category
2009 correction
rate in %
2010 correction
rate in %
Improvement
in %
H&S
68,1
79,8
+11,7
Docmtn.
78,9
88,9
+10,0
Wages
72,2
80,8
+8,6
Overtime
12,5
80,0
+67,5
Comms.
78,6
88,1
+9,5
Total
62,1
83,5
+21,42
RATE IS IN THE AREA OF HEALTH AND SAFETY

FIGURE 17: THE CORRECTION RATE CLIMBED
Non-compliance rate [%]
TO 70% IN 2010
5
8
60
H&S
Docmtn.
2009
Wages
Overtime
Comms
16
Correction rate [%]
11
2010
China
100
80
60
40
20
H&S
Docmtn.
Wages
Overtime
Comms
The majority of non-compliance was in the area of health and

safety as this covers off many more criteria than the other
areas. Further critical areas include Documentation and
Wages and salaries.
63
TABLE 7: THROUGH qualification, THE COMPLIANCE
FIGURE 18: IN THE KPI PROGRAMME, SIGNIFICANT IM-
RATE INCREASES MOST SIGNIFICANTLY IN TERMS OF
PROVEMENTS WERE MADE ON ALL 5 PARAMETERS
OVERTIME
does not exist
good
needs
improvement
68,9
+11,1
Wages
36,4
41,7
+ 5,3
Overtime
14,3
86,7
+72,4
Comms.
25,0
66,7
+41,7
Total
37,7
69,3
+31,6
60
40
20
Timely
payment
Key performance indicators
Contract
ID
after
57,8
before
Docmtn.
80
after
+27,7
before
82,5
after
54,8
before
H&S
100
after
Improvement in %
before
2010 rate in %
after
2009 rate in %
before
Category
Correction rate [%]
Bangladesh
China
Drinking
water
Manual
The introduction of key performance indicators (KPIs) represents an intensification of our qualification programmes.
FIGURE 19: THE DRINKING WATER KPI HAS SHOWN THE
With the aid of KPIs, areas requiring specific attention can be
MOST IMPROVEMENT
identified more quickly and actions implemented in a more

strategic way. The definitions of the six KPIs detailed below
not available
have been developed in conjunction with stakeholders from
needs
improvement
Documentation
Contract
Employment contract contains all

the necessary data and information
Documentation
Identification
ID card for all employees
Documentation
Manual
Service book prepared by BGMEA/

BKMEA. One manual must be
maintained per employee. Applies to
Bangladesh only
Documentation
Maternity leave
Respect for and the correct calculation of parental leave, which

can be ensured using the manual
mentioned above
Health & safety
Drinking water
Adequate supply of drinking water

and drinking water tests
BGMEA = Bangladesh Garment Manufacturers and Exporters Association

BKMEA = Bangladesh Knitwear Manufactures & Exporters Association
Industry associations representing the countrys manufacturers of woven
goods, knitwear and sweater exports
64
40
20
Timely
payment
Contract
ID
after
The timely payment of wages to all

employees
before
Timely payment
after
Wages
60
before
Explanation
after
KPI
before
Area
80
after
TABLE 8: OUR KPIs EXPLAINED
China
100
before
and China.
Correction rate [%]
a range of NGOs and other interested bodies in Bangladesh
good
Drinking
water
Fact s and figures
4. Product ranges
FIGURE 20: THE PROPORTION OF OEKO-TEX PRODUCTS
FIGURE 22: THE SALE OF ORGANIC COTTON PRODUCTS
IN ALL OUR TEXTILE RANGES HAS BEEN SIGNIFICANTLY
FELL BY 7% IN 2010
100
Organic cotton products

[by thousand units]
Proportion of Oeko-Tex [%]
IMPROVED
2009
2010
80
60
160
2010
2009
140
120
100
80
60
40
40
20
20
s
ck
So
W
om
W
om
en
s
c
lo
th
in
to g /
en
ps
s
cl
o
bo thi
t to n g
m /
s
M
en
Ch
sw
ild
ea
re
r
n
sc
lo
th
in
g
Ba
by
cl
ot
hi
ng
Ho
m
e
te
xt
ile
s
Un
de
rw
ea
r
Baby clothes
Underwear
Total
All products were certified to the Global Organic Textile Standard (GOTS).
FIGURE 23: IN 2009 AND 2010, ONE MILLION PATCHWORK
The percentages relate to the total order volume. Products

were checked according to the Oeko-Tex standard 100. In
2010, 60 out of 100 orders in the division socks were assigned the Oeko-Tex 100 standard. In 2009, the number was
just five.
FIGURE 21: IN 2010, THE PROPORTION OF OEKO-TEX
1.6
cumulated amount sold
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Proportion of Oeko-Tex [%]
ay
0
Ju 9
n
09
Ju
l0
Au 9
g
Se 0 9
p
O 09
ct
N 09
ov
D 09
ec
Ja 0 9
n
Fe 10
b
M 10
ar
Ap 10
r
M 10
ay
1
Ju 0
n
1
Ju 0
l1
Au 0
g
Se 10
p
O 10
ct
N 10
ov
D 10
ec
10
PRODUCTS INCREASED FROM 3% TO OVER 30%
Rugs [by million units]
RUGS WERE SOLD AS PRODUCTS THAT HELP
35
30
25
2009
20
2010
15
10
5
65
5. Packaging
BY 3% IN 2010
Product packaging [kilotonnes]
FIGURE 26: PRODUCT PACKAGING WAS REDUCED
FELL BY 15% IN 2010 (EXTRAPOLATION*)
30
25
2009
2010
20
15
2010
2009
6
5
4
3
2
er
al
at
To
t
ia
ls
ss
la
G
pl
at
in
um
Ti
iu
tic
as
at
ur
al
Al
Pl
.
tc
Pa
pe
r,
e
lm
10
Fi
Transport packaging [kilotonnes]
FIGURE 24: THE VOLUME OF TRANSPORT PACKAGING
Film
Wood
Others
Total
* The extrapolation was performed based on the disposal of transport packaging in 1,000 German stores. During 2010, KiK disposed of 6,492.2 tonnes
of cardboard, 419.4 tonnes of film, 48.7 tonnes of wood, plus 1,232.2 tonnes of
other materials.
FIGURE 25: TRANSPORT PACKAGING WAS REDUCED
Transport packaging [g/product]
BY 7 GRAMS PER PRODUCT IN 2010
66
50
2009
40
30
20
10
2010
FIGURE 27: PRODUCT PACKAGING WAS REDUCED

BY 0.3 GRAMS PER PRODUCT IN 2010
Product packaging [g/product]
Cardboard
11
10
9
2009
2010
7
6
5
4
3
2
1
Fact s and figures
6. Transport of goods received

TABLE 10: PRODUCT ORDERS BY MEANS OF TRANSPORT
TABLE 9: TRANSPORT TYPES COMPARED
FROM ASIA TO EUROPE AND IN FORWARDING* IN 2010
Explanation
(DIRECT TRANSPORT)
direct transport
transport carried out by KiK FOB (free on board)
indirect transport
goods delivered by an importer (free delivery)
FIGURE 28: CO2e EMISSIONS* CAUSED BY DIRECT AND
CO2e [kilotonnes]
INDIRECT TRANSPORT REMAIN THE SAME

2009
30
Number
CO2e (tonnes)
Sea transport
12.380
99,81
15.454
Onward forwarding*
12.380
100
536
Air
24
0,19
408
Total
12.404
100
16.398
2010
* Transport from destination port to Bnen (see Figure 31).
25
20
15
FIGURE 30: IN DIRECT TRANSPORT, ONLY 9% OF THE
10
GOODS BY WEIGHT WERE FORWARDED BY TRUCK. THIS
5.
FORM OF TRANSPORT CAUSES ALMOST HALF OF OUR

Europe
Overseas
EMISSIONS
Total
* CO2e is the abbreviation for carbon dioxide equivalents and is the internationally recognised measure for the environmental impact of greenhouse
gases.
CO2e [t]
Inland vessel
121
Rail
Truck
In terms of direct transport, more than 99% of orders from

the Far East were transported by sea.
248
FIGURE 29: EMISSIONS FROM DIRECT AND INDIRECT

TRANSPORT
CO2e [kilotonnes]
167
20
2009
15
2010
FIGURE 31: 91% OF OUR TRANSPORTED GOODS ULTIMATELY REACHED BNEN BY INLAND VESSEL AND RAIL
10
[%]
5
54
direct transport
indirect transport
37
67
TABLE 11: PRODUCT ORDERS BY MEANS OF TRANSPORT
7. Sites
FROM ASIA TO EUROPE IN 2010 (INDIRECT TRANSPORT)

%
CO2e (tonnes)
Transport by sea
52
4.840
Trucks (Europe)
46,3
4.307
Forwarding
1,7
160
Total
100
9.307
Due to the free delivery condition, no data can be sourced
TABLE 12: USE OF SPACE AT KIKS EUROPEAN HEADQUARTERS

Areas
m2
Total site space
160.22
Proportion of built-on space
75.094
Proportion of sealed space
58.551
Proportion of green space
26.575
from primary sources. When establishing our CO2e emissiFIGURE 34: SINCE 2001, OFFICE SPACE HAS
Europe are transported by truck.
INCREASED BY 64%
FIGURE 32: EMISSIONS FROM FORWARDING OF

INDIRECT TRANSPORT
CO2e [t]
Inland vessel
40
Office space [tm2]
ons, it was therefore assumed that all goods from continental
Rail
68
14
12
10
8
6
4
Truck overseas
2001 - 2005
from 2006
FIGURE 35: SINCE 2001, THE AMOUNT OF SPACE USED
52
Warehousing 0.1
Transportation 17.8
Packing 4.9
Production 65.1
Figures provided by Tengelmann Energie GmbH
65.1% corresponds to 1.16 kg of CO2e
68
09
20
m
f ro
-2
00
9
20
05
-2
00
5
00
00
20
20
01
-2
99
9
-1
99
19
96
94
1.79 kg CO2e
19
Stores 9.8
-1
Waste disposal 2.3
10,000
[CO2e emissions as a %]
30,000
00
0
WORK RUGS
50,000
-2
THE MAJORITY OF THE CARBON FOOTPRINT OF PATCH-
70,000
19
99
FIGURE 33: AT 65%, PRODUCTION ACCOUNTS FOR
Logistics space [tm2]
FOR LOGISTICS HAS INCREASED to 65,000 m2
Fact s and figures
FIGURE 36: IN 2010, A TOTAL OF 835 TONNES OF WASTE
FIGURE 39: SINCE 2006, OUR USE OF NATURAL GAS HAS
AND RECYCLABLE MATERIALS WERE PRODUCED AT OUR
INCREASED CONTINUOUSLY*
EUROPEAN HEADQUARTERS IN BNEN (IN ADMINISTRA-
Natural gas [million m 3]
Waste + recyclable materials [t]
TION AND LOGISTICS)

900
800
700
600
0,6
0,5
0,4
0,3
0,2
0,1
500
06 / 07
400
07 / 08
09
08 / 09
10
* The causes for this increase are currently being investigated
300
FIGURE 40: USE OF NATURAL GAS PER EMPLOYEE ROSE

200
al
To
t
er
th
O
en
tl
am
ca
tri
ec
ps
l
ee
St
Fl
uo
re
sc
El
re
cy
cl
ab
Re
si
du
al
w
as
te
le Da
p a yt
ck o ag da
in y
g
ss
la
G
Pa
pe
100
FIGURE 37: SINCE 2006, DRINKING WATER CONSUMP-
Use of natural gas [m3/employee]
BY 600
65% OVER 2009
500
400
300
200
100
TION HAS RISEN BY 31%. IN 2010, IT ROSE BY 19% OVER
2009
2010
2009
FIGURE 41: IN 2010, WE REDUCED OUR USE OF A4
Logistics
Total
10.000
BY MORE THAN EIGHT MILLION SHEETS
8.000
30
6.000
2009
4.000
2.000
2006
2007
2008
2009
2010
FIGURE 38: DRINKING WATER CONSUMPTION PER
14
2009
12
25
2010
20
15
10
5
EMPLOYEE ROSE BY 11% OVER 2009
Drinking water [m3/employee]
PRINTING AND COPY PAPER* ACROSS THE COMPANY
Paper [million sheets]
Drinking water [m3]
Administration
2010
10
8
Recycled paper
(Blue Angel label)
Fresh fibre paper
Total
* We started to use recycled paper in 2009. In 2010, we reduced our

paper consumption by 8 million sheets and increased the share of recycled
paper to 73%.
In total, this led to savings of over 30,000 euros.
6
4
2
Administration
Logistics
Total
69
FIGURE 45: SINCE 2008, THE NUMBER OF
WERE ENVIRONMENTALLY FRIENDLY
GREENBUILDING STORES HAS RISEN CONTINUOUSLY
60
Number of GreenBuilding
stores
Office material [%]
FIGURE 42: IN 2010, 99% OF OUR OFFICE MATERIALS*
50
40
30
20
10
10
8
6
4
2
2008
Blue Angel
Recycled
Fresh fibre
2009
2010
KiK is the first discount clothing retailer Europe-wide to

participate in the European Commissions GreenBuilding
programme. Through greater investment in construction,
FIGURE 43: IN 2010, WE OPENED STORE NUMBER 3,000
operated a total of 11 GreenBuilding stores.
energy consumption post-build is reduced. In late 2010, KiK
FIGURE 46: THE 8,232 TONNES OF PAPER WE USED FOR
3,500
SALES FLYERS WAS MADE UP OF 80% RECYCLED PAPER
3,000
2,500
Type of paper [%]
Number of stores
* Office materials include envelopes, note pads, flipchart pads, hanging file
folders etc., dividers, folders, spine labels
2,000
1,500
1,000
90
116 t
8,232 t
80
Fresh fibre
Recycled
70
FSC / FSC mix
60
50
40
30
500
20
93
/9
94 4
/9
95 5
/9
96 6
/9
97 7
/9
98 8
/9
99 9
/0
00 0
/0
01 1
/0
02 2
/0
03 3
/0
04 4
/0
05 5
/0
06 6
/0
07 7
/0
08 8
/0
20 9
09
20
10
10
FIGURE 44: IN 2010, OUR TOTAL STORE SPACE
Store space [m2]
AMOUNTED TO 1.5 MILLION SQUARE METRES
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
93
/9
94 4
/9
95 5
/9
96 6
/9
97 7
/9
98 8
/9
99 9
/0
00 0
/0
01 1
/0
02 2
/0
03 3
/0
04 4
/0
05 5
/0
06 6
/0
07 7
/0
08 8
/0
20 9
0
20 9
10
200,000
In 2010, the average size of a KiK store was 520 m2.
70
Marketing material*
Sales flyers
* Marketing material: Ergee brochure, postcards, flyers, customer magazine,

employee magazine, CSR brochure, company guidelines, company presentation, posters, crowners and inserts, stand-up displays, back panels, ceiling
decorations, leaflets
Fact s and figures
8. Transport of outgoing goods

TABLE 13: THE KiK FLEET
FIGURE 48: THE CO2e EMISSIONS OF KIKS FLEET OF

TRUCKS are LOWER THAN THOSE OF OUR FORWARDERS
Truck fleet in 2010
19
Fuel
Diesel
Fuel consumption in litres
418,000
Average litres consumed per 100 km
25
CO2e [tonnes/truck]
2009
Number of vehicles
2010
70
60
50
40
30
20
10
FIGURE 47: 2010 SAW AN INCREASE IN THE NUMBER OF

EURO 5 VEHICLES
Forwarders
2010
FIGURE 49: KiKS TRUCKS HAVE 20% LOWER CO2e

EMISSIONS PER KILOMETRE
20
15
CO2e [kg/km]
Trucks [number]
2009
25
KiK truck fleet
10
5
Euro 3
Euro 4
Euro 5
Total
2009
1
0,9
0,8
0,7
0,6
0,5
0,4
0,3
0,2
0,1
2010
Forwarders
KiK truck fleet
TABLE 14: THE KIK FLEET IN EUROPE COMPRISES 331 VEHICLES

Number
Germany
Austria
Hungary
Czech Republic
Slovenia
Slovakia
Total
Diesel vehicles
230
49
13
17
13
326
Petrol vehicles
Natural gas vehicles
Total
233
49
13
17
13
331
Each vehicle meets at least the Euro 4 standard, though a large number of our vehicles are also Euro 5 compliant.
71
FIGURE 50: EMISSIONS PER CAR FOR DIESEL VEHICLES
FIGURE 52: CO2e EMISSIONS ARE AROUND 22% LOWER

FOR BI-FUEL VEHICLES
2010
0,25
0,2
*
**
0,15
0,1
CO2e [g/km]
CO2e [kg/km]
2009
e
ag
Petrol
er
en
ov
Sl
Natural gas
Av
ia
y
an
m
er
G
un
Re Cz
pu e c
bl h
ic
ga
ry
ria
st
Au
Sl
ov
ak
ia
0,05
Diesel
200
175
150
125
100
75
50
25
Diesel fleet
Natural gas-fuelled
vehicle (bi-fuel)*
* VW Passat 1.4 ECOfuel with a mileage of 30,000 km
FIGURE 51: EMISSIONS PER CAR AND KILOMETRE IN CO2
FIGURE 53: FUEL COSTS ARE FOUR CENTS LOWER
KILOGRAMS (NATURAL GAS-FUELLED CARS)
PER KILOMETRE
Tonnes of CO2e per natural gas-fuelled car

Kilograms of CO2e per km
0.25
14
12
0.2
10
8
0.15
0.1
10,0
Diesel
7,5
Natural gas
Petrol
5,0
2,5
Diesel fleet
4
0.05
2009
72
Fuel costs [cents/km]
* new registrations 2010 diesel D: 0.150 kg/km (manufacturer data)

** EU threshold from 2015: 0.120 kg/km
2010
Natural gas-fuelled
vehicle (bi-fuel)*
*VW Passat 1.4 ECOfuel with a mileage of 30,000 km
Fact s and figures
9. Emissions of KiK Textilien und Non-Food GmbH

The calculation of the greenhouse gas emissions of KiK Tex-
25.7 kilotonnes CO2e in 2010. Around 63% of these emissi-
tilien und Non-Food GmbH, as well as the underlying metho-
ons were caused by transport that is the full responsibility of
dology, were once again certified in 2010 by Ecofys Germa-
KiK Textilien und Non-Food GmbH. The remaining 37% of
ny GmbH. The organisational and operational calculation of
emissions were due to imports where either the importer or
direct and indirect emissions was carried out by Tengelmann
manufacturer was liable.
Energie GmbH (TEG), in accordance with the international

standards and requirements of Greenhouse Gas Protocol
A Corporate Accounting and Reporting Standard (Revised
FIGURE 54: OVER 50% OF GREENHOUSE GAS EMISSIONS
Edition).
IN FISCAL 2010 WERE CAUSED BY HEATING
The following greenhouse gas emissions were calculated:
[%]
6 Trucks (external
providers)
Emissions from the use of fuels to heat stores and other

properties
Emissions from the use of fuels to operate company vehicles
0 Refrigerants
1 Trucks
(own fleet)
Scope 1 :
4 Cars
4 Heating oil
35 Electricity
8 District
heating
Emissions from refrigerants (no quantitative data for NH3)

112.8 kt CO2e
used for air conditioning in vehicles

Scope 2:
Emissions caused by power plants producing electricity
42 Gas
purchased by KiK Textilien und Non-Food GmbH (Scope 2)

Emissions from the use of district heating to heat stores
and other properties
TABLE 15: CO2e EMISSIONS FELL BY 9% IN 2010
Scope 3:
2009 [CO2e
in kilotonnes]
2009 [CO2e
in kilotonnes]
in %
KiK sites total

(Scope 1, 2, 3a)
98.8
87.1
11.84
Goods received
(scope 3b)
25.1
25.7
2.4
Total KiK Europe
123.9
112.8
8.9
Emissions from deliveries between distribution centres

and stores, carried out by third parties (a)
Emissions from deliveries from the country of origin to the
distribution centres (b)
Emissions caused earlier in the supply chain, for example from exploration through to delivery to the combustion
site, are not calculated. Given the complexity of calculating
upstream emissions, the GHG Protocol Initiative is currently
developing a new methodological standard for Scope 3. In
fiscal 2010, KiK Textilien und Non-Food GmbH was responsible for CO2e emissions of approximately 112.8 kilotonnes
in the above areas (Scopes 1-3). Green energy/green energy
certificates are accounted for within this. Compared to the
previous year, CO2e emissions fell by approximately 11.1 kilotonnes. Greenhouse gas emissions caused by imports plus
the inland deliveries (Scope 3 b) amounted to approximately
73
FIGURE 55: THE USE OF GREEN ENERGY ALONE LED
TABLE 16: KiK GERMANYS TOTAL CO2e EMISSIONS FELL
TO A 12% REDUCTION IN CO2e EMISSIONS IN 2010
BY 13% IN 2010
CO2e [kilotonnes]
CO2e emissions of KiK Germany in kilotonnes

120
98.792
87.116
106.485
100
+8 %
-12 %
80
60
40
2009
2010
in %
German sites
(Scope 1, 2, 3a)
84.9
69.5
18.14
Goods received
(Scope 3b)
25.1
25.7
2.4
Total
110
95.2
13.45
20
2009
2010
FIGURE 57: DIRECT PRIMARY ENERGY CONSUMPTION AT
Emissions including green energy
KiK GERMANY ROSE IN 2010
Grey electricity factor: 0.403 CO2e/kWh
In calculating the reduction in CO2e emissions caused by

renewable energy certificates, irrespective of their quality or
how much they add, emissions of 0 t CO2e per kWh have been
d.PE* [million kWh]
Emissions excluding green energy
165
160
155
150
assumed in accordance with the World Business Council for
145
Sustainable Development/World Resources Institute Green-
140
house Gas Protocol. Based on this, emissions fell by 12%.

Without the use of green energy, they would have risen by 8%.
170
06/07
07/08
2008
2009
2010
* d.PE = direct primary energy consumption (natural gas, heating oil, petrol,
diesel)
FIGURE 56: KiK GERMANY REDUCED CO2e EMISSIONS

COMPARED TO 2009
100
d.PE* [million kWh]
FIGURE 58: USE OF NATURAL GAS ROSE IN 2010
TONNES
CO2e [kilotonnes]
CAUSED BY ELECTRICITY CONSUMPTION BY 15.4 KILO-
2009
90
2010
80
70
60
50
40
135.34 139.62
2009
140.00
2010
120.00
100.00
80.00
60.00
30
40.00
20
al
g
lin
oo
To
t
ty
ar
-p
ird
tru
ck
ck
tru
Th
ar
K
Ki
oi
g
ea
tin
at
H
he
ct
tri
is
D
g
in
as
G
ty
ci
tri
ec
El
13.83 13.53
8.87 11.05
0.15 0.14
20.00
10
74
160.00
Natural gas
(heating)
Heating
oil
Petrol
0.06 0.05
Diesel
Natural gas
(company
(cars)
trucks + cars
Germany/abroad)
Fact s and figures
FIGURE 59: THE INDIRECT PRIMARY ENERGY CONSUMP-
FIGURE 62: MOST OF KiKS ELECTRICITY COMES FROM
TION OF KiK GERMANY HAS GROWN CONTINUOUSLY
RENEWABLE ENERGIES (54%)
i.PE* [million kWh]
SINCE 2008
Electricity production mix [%]
140
120
Coal
100
80
54
60
Natural gas
25
Oil
Nuclear
40
Renewable
20
7
06/07
2008
07/08
2009
2010
Waste
* i.PE = indirect primary energy consumption

13
FIGURE 60: THE INCREASE IN INDIRECT PRIMARY

ENERGY CONSUMPTION AT KiK GERMANY IS MAINLY
DUE TO ELECTRICITY USAGE
FIGURE 63: KIK GERMANY USED GREEN ENERGY FOR
120.00
99.11 104.28
2009
2010
100.00
80.00
60.00
40.00
18.77 18.97
58
56
54
52
50
48
46
7.05 7.79
20.00
Electricity [million kWh]
i.PE* [million kWh]
THE FIRST TIME IN 2010
44
Electricity
District heating
Third-party
trucks
(Germany and
abroad)
* i.PE = indirect primary energy consumption (electricity, district heating,

forwarders trucks)
Total: 2009 = 124.92 million/kWh, 2010 131.04 million/kWh
42
Grey energy
Green energy*
* Green energy refers to electrical energy obtained from renewable sources

(e.g. wind, hydroelectric power)
When sourcing electricity in Germany, KiK Textilien und NonFood GmbH relies on a portfolio of suppliers, starting with
FIGURE 61: IN FISCAL 2010, WE STARTED TO CONVERT
the groups own energy company (GrnhausEnergie GmbH)
OUR GERMAN STORES TO GREEN ENERGY
and expanding out to suppliers such as Lichtblick and Na-
i.PE* [million kWh]
turEnergie. The electricity products we purchase come with

120.00
different labels, from TV Nord certificates, to the ok-Power
100.00
label to the Grner Strom gold label. This has enabled us
80.00
to significantly reduce CO2e emissions by approximately

19,370 tonnes.
60.00
40.00
20.00
06/07
07/08
2008
2009
2010
75
REMAINED UNCHANGED AT 1.2 kWh
120
2009
2010
100
Electricity [kg/pallet]
FIGURE 67: ELECTRICITY CONSUMPTION PER PALLET
OF OUR ELECTRICITY CONSUMPTION (97%)
Electricity [million kWh]
FIGURE 64: OUR STORES ACCOUNT FOR THE MAJORITY
80
1,5
0,5
60
2009
40
2010
FIGURE 68: AVERAGE CO2e EMISSIONS PER PALLET

ALSO REMAINED THE SAME
Administration
Logistics
CO2e [kg/pallet]
20
Stores
1.50
1.00
FIGURE 65: IN ADMINISTRATION, THE AVERAGE ELECTRICITY CONSUMPTION PER EMPLOYEE* FELL BY AROUND
0.50
4.000
2009
2010
3.000
2009
2010
2.000
FIGURE 69: ELECTRICITY CONSUMPTION IN STORES

ROSE BY 2.5% IN 2010
1.000
* The average electricity consumption per employee serves as a key

performance indicator for strategically managing and reducing electricity
consumption in administration, as does the average CO2e emissions per
employee. In warehouse logistics, these have been replaced by average
electricity consumption per pallet and average CO2e emissions per pallet.
For our stores, average electricity consumption per store and average CO2e
emissions per store have been raised.
Electricity [MWh/store]
Electricity [kWh/employee]
7% IN 2010
40
30
20
10
FIGURE 66: CO2e EMISSIONS PER EMPLOYEE WERE RE2009
2010
FIGURE 70: CO2e EMISSIONS PER STORE ROSE BY 3.4%
3,0
2,5
CO2e [t/store]
CO2e [tonnes/employee]
DUCED BY 7.4%
2,0
1,5
1,0
0,5
35
30
25
20
15
10
2009
2010

2009
76
2010
Fact s and figures
10. Employees
TABLE 17: 94% OF ALL KIK EMPLOYEES WORK IN OUR
FIGURE 73: ALMOST HALF OF TRAINEES WHO HAVE
STORES
COMPLETED THEIR TRAINING AT KIK SINCE 1994 ARE

Stores
Administration
Logistics
Total
Number
15.966
602
412
16.980
Proportion in %
94
3,6
2,5
100
STILL WITH THE COMPANY

Number of trainees [%]
62
FIGURE 71: IN 2010, 76% OF employment requiring

51
payment of national insurance

Employment relationship [%]
2.873
49
Insurance required
38
Low-income/short-term
employment (insurance
not required)
24
trainees who have left the company
former trainees
former trainees now in
management
76
TABLE 19: THE NUMBER OF NEW MOTHERS ROSE
FIGURE 72: 58% OF KIK MANAGEMENT EXECUTIVES ARE
Employees [%]
FEMALE*
100
2009
2010
Headquarters
15
Logistics
Sales
214
287
Total*
231
295
* Employees, including part-time workers

Male
80
Female
60
TABLE 20: 5,014 OF KIKS FEMALE EMPLOYEES HAVE
40
CHILDREN
20
Total employees (16,990)
Employees in management
(366)
* Regional managers, sales managers, department managers, division

managers, store managers
Headquarters
95
Logistics
26
Sales
4,893
Total
5,014
TABLE 18: THE PROPORTION OF TRAINEES AND APPRENTICES IN OUR WORKFORCE IS 10%
Trainees and apprentices
% proportion in the
workforce
10
Total
1,678 trainees including apprentices
Of which are women with children
136
77
FIGURE 77: AROUND 75% OF EMPLOYEES IN STORES PAY
MID-THIRTIES
SOCIAL SECURITY AND TAX
8,000
Employment relationship [%]
[Employees]
FIGURE 74: THE AVERAGE AGE OF KIK EMPLOYEES IS
7,000
6,000
5,000
4,000
3,000
2,000
60
payment of social security required

payment not required
40
20
1,000
< 20
20-30
31-40
41-50
> 50
Kapovaz*
FIGURE 75: THE AVERAGE AMOUNT OF TIME KIK EMPLO-
Permanent
Part-time
workers
Trainees and
apprentices
*Variable working hours based on capacity
YEES HAVE BEEN WITH THE COMPANY IS 3.5 YEARS

TABLE 21: EXPLANATION OF EMPLOYMENT CONDITIONS
> 10 years
5%
< 1 year
27%
5-9.9 years
21%
3-4.9 years
21%
1-2.9 years
26%
FIGURE 76: STAFF TURNOVER IS HIGHEST IN SALES,

AT AN AVERAGE 36%
Administration
Number
Proportion in %
Kapovaz:
part-time workers, employment
relationship requiring the payment of
social insurance and tax
6,664
39
Permanent:
full-time employees, employment
social insurance and tax
4,395
26
Mini-jobber: part-time workers with

a maximum gross salary per month
of 400 euros and/or on a temporary
contract
4,193
25
Trainees/apprentices:
full-time workers, employment
social insurance and tax as part of
the training
1,678
10
Other part time:

flexible, part-time employment
relationship
50
<1
Total
16,980
100
Logistics
Turnover [%]
Sales
4
3
2
r
be
r
D
ec
em
be
er
ov
em
ob
N
ct
be
st
pt
em
ly
gu
Au
Se
ne
ay
Ju
Ju
ril
ch
Ap
ry
ar
M
ar
br
nu
Fe
Ja
78
ua
Fact s and figures
TABLE 24: THE NUMBER OF WORRY LETTERS (FORMER-
COMPANY PENSION PLAN
LY KNOWN AS SOS LETTERS) FELL IN 2010
Employees [number]
FIGURE 78: 194 EMPLOYEES HAVE SIGNED UP TO THE
Number
150
Pension fund
2009
106
2010
78
Direct insurance
120
90
60
30
Headquarters
Logistics
Sales
Total
TABLE 22: THE NUMBER OF OCCUPATIONAL ACCIDENTS

HAS INCREASED YEAR ON YEAR
2009
2010
Number
Proportion
Number
Proportion
Trainees
69
8.78 %
152
15.14 %
Logistics
41
5.22 %
101
10.06 %
Sales
670
85.24 %
734
73.11 %
Headquarters
0.76 %
17
1.69 %
Total
786
1004
TABLE 23: THE AVERAGE NUMBER OF DAYS OFF

FOLLOWING AN OCCUPATIONAL ACCIDENT FELL IN 2010
2009
2010
Trainees
Logistics
11
Sales
13
11
Headquarters
13
13
Average days
11.5
9.25
79
11. Society
Cooperation
partner
Project name
Location
Project description
Details 2009
Details 2010
Awaj Foundation
Basic medical
care
Bangladesh
One doctor works at three

doctor's clinics to facilitate
affordable healthcare for
female workers in the textile
industry. Financial support
from KiK
Three doctors clinics, of

which two opened in 2008
Around 130 patients are treated

by each clinic each month
Awaj Foundation
Health prevention
and advice
Bangladesh
Training and advising on

health and safety at work with
the aim of reducing the number of accidents, promoting
the use of protective equipment, training in first aid,
educating people about HIV
and raising overall awareness
overall. Costs for the training
programmes borne by KiK
1,000 female textile employees were offered four

training units each
1,000 female textile employees

were offered four training units
each. An additional training
module on labour law was
offered.
GSS (Gonoshahajjo Sangstha)
School project
Bangladesh
Children from impoverished areas offered school

education. Financial support
from KiK
KiK provided support for

three schools
By supporting six schools, a total of 1,920 pupils were reached
Phulki
Hygiene project
Bangladesh
Provision of sanitary napkins

and instruction on how to use
them to prevent infection
Two suppliers and all rug

production sites are participating
Two suppliers and all rug

production sites are participating
Phulki
Employee-employer dialogue
Bangladesh
Improvement of working
conditions by encouraging
communication between
employees and management.
Financed by KiK
Nine employee-employer
dialogue meetings took place
A further three employeeemployer dialogue meetings

have been organised
Phulki
Children's daycare centres
Bangladesh
Employees' children aged

between 2 and 5 years old
are looked after by trained
caretakers and their development is promoted. KiK
finances openings, rental
payments, procurement and
makes donations
Six child care centres financed by KiK, approx. 60-70

children
Eight child care centres financed

by KiK, approx. 105 children
CARE
Bangladesh
Health camps
Bangladesh
Running of 40 health camps

for employees in the rug
production sites in Rangpur.
Health education and care,
advice on nutrition, family
planning, behavioural
training. Financed by KiK
Heroes2
Reforestation
China
Reforestation project
DKMS
Bone marrow
donation in
Germany
Germany
Registration of stem cell

donors among employees,
cost of registration assumed
by KiK
80
Project started in September

2010. The first healthcare centre
opened in January 2011
KiK assumed the costs of planting 5,000 trees annually

Approx. 270 registered stem cell
donors recorded among KiK
employees
Fact s and figures
Cooperation
partner
Project name
Location
Project description
Details 2009
Details 2010
help & hope
Germany
Commitment to supporting
children in need at a national
and international level
Financial support since 2001
Gesicht Zeigen!
e.V.
Germany
Campaigns and initiatives to

counter racism and support
civil courage
Regular financial support since July 2007
Pro Ruhrgebiet
Germany
Support for structural change

in the Ruhr area of Germany
by promoting culture, science
and sport
Regular financial support since July 2007
Emission factors (country-specific)

Electricity 2010* g/kWh
District heating** g/kWh
Germany
404
404
Austria
214
214
Slovakia
223
223
Slovenia
332
332
Czech Republic
527
527
Hungary
344
344
* 2009 is identical
** As no utility-specific data is available, electricity emissions factors have been selected to ensure consistency. The division of emissions from cogeneration
into heat and power is methodically inconclusive.
Emission factors (material specific)

kg/litre
2.78
kg/kWh
0.22
kg/kg
3.27
Petrol
kg/litre
2.15
Diesel
kg/litre
2.78
Overseas
g/tkm
13.66
Inland vessels
g/tkm
15.66
Rail
g/tkm
17.31
Air
g/tkm
664.90
Heating oil
Gas
Natural gas (vehicles)
Emission factors (by mode of transport)
81
GRI CONTENT INDEX

The KiK Textilien und Non-Food GmbH sustainability report is based on the guidelines of the Global Reporting Initiative (GR)
and fully meets the criteria of Application Level A.
In the following table, we make reference to the Facts and figures section of this report plus its graphics, which provide information about the various performance indicators. In addition, the table contains information or comments on those indicators
that have not explicitly been referenced in other parts of this report.
Strategy and analysis

1.1
Statement from the most senior decision-maker of the organization
Complete
Foreword by Stefan Heinig
1.2
Description of key impacts, risks, and opportunities
Complete
Foreword by Dr. Michael Arretz and section 2
Organization profile
2.1
Name of the organization
Complete
Section 1
2.2
Primary brands, products and/or services
Complete
Sections 1 and 5
2.3
Operational structure of the organization, including main divisions, locations of

operations, subsidiaries and joint ventures
Complete
Section 1
2.4
Headquarters of the organization
Complete
Section 1
2.5
Number of countries in which the organization operates and the names of countries
in which key operating sites are based or which are particularly relevant to the sustainability issues covered in the report
Complete
Sections 1 and 4
2.6
Ownership structure and legal form
Complete
Section 1
2,7
Markets served (including a breakdown by regions, industries and customer structure) Complete
Section 1
2.8
Size of the reporting organisation
Complete
Section 1
2.9
Key changes in the organization's size, structure or ownership during the reporting
period
Complete
There were no such changes during the reporting period
2.10
Awards received during the reporting period
Complete
Section 5
Report parameters
3.1
Reporting period (e.g. fiscal/calendar year) for information provided
Complete
About this report
3.2
Publication of the most recent previous report, if any
Complete
There was no previous report
3.3
Reporting cycle
Complete
About this report
3.4
Contact for questions about the report or its contents
Complete
See About this publication and the foreword from Dr. Arretz
3.5
Process for defining report content
Complete
About this report
3.6
Boundary of the report
Complete
About this report
3.7
Specific limitations on the scope or boundary of the report
Complete
About this report
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities and outsourced
operations and other entities that can significantly affect comparability from period to
period and/or between organizations
Complete
KiK and its subsidiary KiK Logistik I GmbH are active in no joint ventures, do not
lease plant or outsource activities or other units
3.9
Basis for capturing and calculating data used as indicators and other information in
the report, including the assumptions and techniques underlying estimates
Partially complete Appendix: overview of external sources
3.10
Explanation of the effect of any re-statements of information
Complete
With this document we are reporting on sustainability for the first time
3.11
Significant changes from previous reporting periods in reporting scope, boundary, or

measurement methods
Complete
With this document we are reporting on sustainability for the first time
3.12
Table identifying the location of the standard disclosures in the report
Complete
Appendix: indicator protocol/list of contents
3.13
Policy and current practice with regard to confirmation of the report by a third party
Complete
Appendix: independent auditors report
82
GRI CONTENT INDE X
Governance, commitments and engagement

4.1
Management structure of the organization
Complete
Sections 1 and 2
4.2
Information as to whether the chairman of the highest governance body is also the
managing director
Complete
Section 1
4.3
Number of members of the highest governance bodies who are independent or do not Complete
have a seat on the board
Section 1. There are no independent members of the highest management

bodies.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body
Complete
Sections 1 and 7
4.5
Link between compensation for members of the highest governance body, senior
managers, and executives (including gratuities), and the organizations performance
(including social and environmental performance)
Complete
Remuneration is at the standard market levels, contains variable aspects,

takes into account individual performance and the success of the company.
No differentiation is made as yet between business, social and environmental
performance.
4.6
Processes in place for the highest governance body to ensure conflicts of interest
are avoided
Complete
As the company is at least part-owned by its senior management, there are no

conflicts of interest as referred to here. Votes are conducted among the board
and co-owners.
4.7
Process for determining the qualifications and expertise of the members of the highest Complete
governance body for guiding the organizations strategy on economic, environmental,
and social topics
All board members must have sufficient professional experience. A separate

management committee for CSR ensures that strategy is guided in the areas of
the environment and social responsibility.
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of
their implementation
Complete
Sections 2, 4 and 5
4.9
Procedures of the highest governance body for overseeing the organizations

identification and management of economic, environmental, and social performance,
including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles
Complete
Sections 2 and 4
4.10
Procedure for highest governing body to evaluate its own performance, in particular
with regard to its economic, environmental and social performance
Complete
Such a procedure does not exist
4.11
Statement as to whether and how the organization takes precautionary measures to

reduce its environmental impact
Partially complete Sections 4, 5 and 6
4.12
Externally developed economic, environmental and social arrangements, principles

or other initiatives that the organization has signed up to, agreed to or where the
organization is represented
Partially complete Sections 2 and 6
4.13
Membership in associations and/or national/international interest groups where

the organization a) plays a leading role in office b) participates in projects or sits on
committees c) makes significant financial contributions , above and beyond regular
member contributions or d) the membership has some special strategic importance
for the organization
Complete
4.14
List of the various stakeholder groups involved by the organization
Partially complete Section 3
4.15
Basis for selecting stakeholders that should be involved
4.16
Approaches for stakeholder inclusion, including frequency of inclusion by type and

stakeholder group
Partially complete
4.17
Significant questions and issues raised by stakeholder inclusion and information as to Complete
how the organization responded to these, including within the scope of reporting
In Facts and figures. The company's membership of HDE and BGCCI are both
of strategic importance. KiK sits on the project committees for environment,
communications, staff development and HR. These involve neither a leading role
in office nor significant financial contributions.
Section 3
Section 3
Management approach
All management approaches are explained in section two, across all strategic areas of action. Targets and initiatives in these areas of action are described in detail in sections 4-7.
Economic performance indicators

EC1
Direct economic value generated and distributed, including revenues, operating

costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments (taxes)
Partially complete Section 1 plus Facts and figures
EC2
Financial implications of climate change for the organizations activities, and other
risks and opportunities associated with climate change
Complete
EC3
Coverage of the organizations defined benefit plan obligations
Partially complete KiK has operated a company pension plan since 2004. Since July 2011, KiK has
also increased its monthly contributions by 10%. The initiative is mentioned in
section 7 of this report.
EC4
Significant financial assistance received from government
Complete
Section 6. An estimate of the consequences of climate change taking into

account financial aspects has not been made.
No financial assistance of this kind was received during the reporting period.
83
EC5
Range standard entry level wage compared to local minimum wage at significant
locations of operation
Complete
The European headquarters and all subsidiaries of KiK Textilien und Non-Food
GmbH are all considered key business sites. All employees in our German
stores receive a basic wage, all employees in Austria are paid according to the
applicable tariff and come under collective agreements. In all other European
subsidiaries, at least the applicable legal minimum wage is paid.
EC6
Business policy, practices, and proportion of spending on locally-based suppliers at

significant locations of operation
Complete
There is no express business policy in respect of the selection of local suppliers

from the direct surroundings of our key business sites and corresponding
expenditure has not been recorded separately.
EC7
Procedures for local recruitment and proportion of senior management hired from the
local community at significant locations of operation
Complete
At all our key business sites, we employ mainly local people/people from the
region. In recruitment, precedence is given to motivation and qualifications.
EC8
Development and impact of infrastructure investments and services provided primarily Partially complete Sections 6 and 7, plus Facts and figures
for public benefit through commercial, in-kind, or pro bono engagement
EC9
Understanding and description of the type and scope of significant indirect economic
impacts
Complete
Sections 2, 3, 4 and 5
Environmental performance indicators

EN1
Materials used by weight or volume
Complete
Sections 4 and 5, plus Facts and figures. The total weight of the materials
used is only recorded for packaging. In packaging, we do not yet use recycled
materials.
EN2
Percentage of materials used that are recycled materials
Complete
In Facts and figures. Recycled material is only used in office materials, paper
products and marketing materials
EN3
Direct energy consumption by primary energy source
Complete
In Facts and figures
EN4
Indirect energy consumption by primary source
Complete
EN5
Energy saved due to environmentally-aware usage and efficiency improvements
Complete
During the reporting period, no data was gathered about energy saving
initiatives and information on energy savings can therefore not be included in
this report. This data will be recorded starting from 2011 and included in the
next report.
EN6
Initiatives to provide energy-efficient or renewable-energy based products and services, and reductions in energy requirements as a result of these initiatives
Complete
Section 4
EN7
Initiatives to reduce indirect energy consumption and reductions achieved
Complete
Section 6
EN8
Total water usage by source
Complete
In Facts and figures. All key business sites are connected to the public water
supply network. Our sources are therefore local municipal water companies.
EN9
Water sources significantly affected by water usage
Complete
No enquiries were made into the sources of the respective water suppliers at our
key business sites.
EN10
Percentage and total volume of water recycled and reused
Complete
At our key business sites, household-like waste water is produced which is

channelled to the public sewage system. No water is therefore reclaimed or
reused.
EN11
Location and size of land in or bordering protected areas, or in or near to areas of high Complete
biodiversity value
None of the buildings used by KiK at its key business sites are located in or
on plots bordering protected areas. Only the site of our European headquarters
and central warehouse are located in a water protection area, of the lowest
grade. This has no consequences for our operations.
EN12
Description of significant impacts of activities, products, and services on biodiversity

in protected areas and areas of high biodiversity value outside protected areas
Complete
None of the buildings used by KiK at its key business sites are located on plots
adjacent to protected areas.
EN13
Habitats protected or restored
Complete
Sections 4 and 6
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity
Complete
For our key business sites, in the reporting period there was no strategic
management of the effects on biodiversity. In 2011, an initiative was introduced
on the grounds of our European head office.
EN15
Number of IUCN Red List species and national conservation list species with habitats
in areas affected by operations, by level of extinction risk
Complete
No species are threatened by our key business sites that are on the IUCN Red
List or other national lists.
EN16
Total direct and indirect greenhouse gas emissions by weight
Complete
Sections 5 and 6, plus Facts and figures
EN17
Other relevant indirect greenhouse gas emissions by weight
Complete
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved
Complete
EN19
Emissions of ozone-harmful substances by weight
Complete
We have no emissions of this type
EN20
NOx, SO2, and other significant air emissions by type and weight
Complete
These air emissions have not been recorded during this reporting period, but
will be taken into account in our 2011 calculations.
EN21
Total water discharge by quality and destination
Complete
Waste water produced by all our key business sites is channelled towards public
sewage systems.
84
GRI CONTENT INDE X
EN22
Total weight of waste by type and disposal method
Complete
A breakdown of waste is being undertaken for our key business sites and a
uniform waste balance sheet prepared which will be included in our next report.
EN23
Total number and volume of significant environmentally-harmful releases
Complete
No major substance releases are caused by the trading activities of KiK.
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous under Complete
the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of waste
transported internationally
No waste of this type was produced during the reporting period.
EN25
Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organizations discharges of water and
runoff
Complete
There are no concerns of this type.
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of

impact mitigation
Complete
Section 5 plus Facts and figures
EN27
Percentage of products sold and their packaging materials that are reclaimed by
category
Complete
The textiles sold by KiK are mostly sold without packaging. In our non-food
ranges, we take care to use as little packaging as possible. The small amount of
packaging we receive back is not recorded separately.
EN28
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with environmental laws and regulations
Complete
No fines were incurred during the reporting period for such violations.
EN29
Significant environmental impacts of transporting products and other goods and

materials used for the organizations operations, and transporting members of the
workforce
Complete
Section 5 plus Facts and figures. Only CO2 emissions are currently accounted
for when calculating the environmental impact of transport. In 2011, the scope
will be extended to include NOx, SO2 and particulates, and business trips will
also be included.
EN30
Total environmental protection expenditures and investments by type
Complete
Our environmental protection expenditure is not fully recorded across all

relevant departments.
Employment practices and the working environment

LA1
Total workforce by employment type, employment contract and region
Partially complete Sections 1 and 7, plus Facts and figures
LA2
Total staff turnover and as a percentage by age, gender and region
Complete
Section 7, plus Facts and figures. A breakdown of staff turnover by age , sex
or region would provide us with no learnings relevant to our HR strategy and is
therefore not performed.
LA3
Benefits provided to full-time employees that are not provided to temporary or parttime employees, by major operations
Complete
Section 7. Occupational benefits are not broken down by operating site/type of

employment.
LA4
Percentage of employees covered by collective bargaining agreements
Complete
In our Austrian subsidiary, all employees are covered by collective agreements.

This corresponds to 6.96% of our total workforce.
LA5
Minimum notice period(s) regarding operational changes, including whether this is

specified in collective agreements
Complete
Section 7. Neither notice periods nor channels of information are established in

the collective agreement.
LA6
Percentage of workforce represented in formal joint managementworker health and

safety committees that help monitor and advise on occupational health and safety
programmes
Complete
84.9% of our workforce is represented in health and safety committees.

In Germany, the area of health and safety is governed by law and applied
correspondingly by KiK. For subsidiaries, the same is true, taking into account
the respective national laws. The implementation and maintenance of legally
prescribed health and safety programmes is managed by external specialists in
our subsidiaries.
LA7
Injury, occupational illness, lost days, and absenteeism, and number of work-related
fatalities by region
Partially complete In Facts and figures. The information relates to our key business sites and is not
broken down by region. No work-related deaths occurred during the reporting
period.
LA8
Education, training, counselling, prevention, and risk-control programmes in place to

help staff, their families or members of the local community with serious illnesses
Complete
The following tests are offered to our employees at European headquarters and
the central warehouse: test G37 computer eye strain, test G25 driving and operating machinery, training in hazardous substances for laboratory workers, test
G40.5 - blood test for laboratory workers. Training for employees in procurement
in respect of travel vaccinations.
LA9
Health and safety topics covered in formal agreements with trade unions
Complete
Health and safety issues are not dealt with under such agreements.
LA10
Average number of training hours by employee category per year
Complete
In 2010, full-time staff in Germany received an average 14 hours of training. The

number of trainees was 1,602, not counting interns. These were trained full time
for 40 hours a week, resulting in an average number of hours of 2,232 in 2010.
LA11
Programmes for knowledge and skills management and lifelong learning that support
the continued employability of employees and also assist them when it comes to
leaving the company
LA12
Percentage of employees receiving regular performance and career development

reviews
Complete
LA13
Composition of governing bodies and breakdown of employees per category according to gender, age, ethnic minority and other indicators of diversity
Partially complete Section 7, plus Facts and figures. Employees are broken down by gender only.
LA14
Relationship between the basic salary of male staff to that of female staff, by employee category
Complete
Each employee has one performance review a year with their immediate
superior. This includes the agreement of a development plan.
There is no difference in pay on the basis of gender.
85
Human rights
HR1
Percentage and total number of significant investment agreements that include human Complete
rights clauses or that have undergone human rights screening
During the reporting period, there were no such investment agreements.
HR2
Percentage of significant suppliers and contractors that have undergone screening on Complete
human rights and actions taken
In Facts and figures, plus section 4
HR3
Total hours of employee training on policies and procedures concerning aspects

of human rights that are relevant to operations, including the percentage of total
employees trained
Partially complete In 2010, 9.4% of employees in administration received training on human rights,
corresponding to 85.5 hours in total.
HR4
Total number of incidents of discrimination and actions taken
Partially complete Section 4, plus Facts and figures. Incidents of discrimination are recorded at
supplier level through audits. No incidents of discrimination were reported at our
key business sites during the reporting period.
HR5
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights
Partially complete Sections 4 and 7, plus Facts and figures. Employee representation is captured
at a supplier level during audits. KiK has a works' council in its subsidiary KiK
Logistik, as well as works' councils in its Austrian subsidiaries.
HR6
Operations identified as having significant risk for incidents of child labour, and
measures taken to contribute to the elimination of child labour
Complete
Section 4
HR7
Operations identified as having significant risk for incidents of forced or compulsory

labour, and measures to contribute to the elimination of forced or compulsory labour
Complete
Section 4
HR8
Percentage of security personnel trained in the organizations policies or procedures

concerning aspects of human rights that are relevant to operations
Complete
KiK does not employ its own security personnel.
HR9
Total number of incidents involving a violation of the rights of indigenous people and
actions taken.
Complete
There were no incidents of this type during the reporting period.
SO1
Nature, scope, and effectiveness of any programmes and practices that assess and
manage the impacts of operations on communities, including the entry, implementation and exit of business operations in an area
Partially complete Section 5, plus Facts and figures
SO2
Percentage and total number of business units analyzed for risks related to corruption
Complete
SO3
Percentage of employees trained in organizations anti-corruption policies and

procedures
Partially complete All employees in the Audit department possess specialist knowledge on the
issue of corruption, obtained from specialist literature or training. This specialist
knowledge is applied in the fields of activity concerned and also passed on to
management personnel in their area of responsibility.
SO4
Actions taken in response to incidents of corruption
Complete
The acceptance of payments worth over 50 euros given by superiors or management as a gift and thus approved is permitted. All other incentives to which
this rule does not apply lead to prompt termination of the employment contract
and claims for compensation, where applicable. No cases of corruption were
reported during the reporting period.
SO5
Political positions and participation in political decision-making and lobbying
Complete
KiK is not active in this area.
SO6
Total value of financial and value-in-kind contributions to political parties, politicians,

and related institutions by country
Complete
KiK donates neither to parties nor political institutions.
SO7
Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly
practices and their outcomes
Complete
During the reporting period, one complaint was made on account of design
patent violation, one on account of copyright violation and one regarding an
infringement of trademark rights. No information is provided on the outcome of
these complaints.
SO8
Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with laws and regulations
Partially complete During the reporting period, a fine was paid to the Unna office due to the placing
on the market of potentially harmful materials. No information is given as to the
monetary value of that fine.
Society
86
The issue of corruption in the sense of accepting payments from other

business partners is governed contractually with all employees working in
procurement. All individual business divisions are systematically checked, on
average every four years, by external auditors and KiK's Audit department.
In addition, our companies abroad and in Germany are checked annually by
appropriate external auditors.
GRI CONTENT INDE X
PR1
Stages over the lifecycle of a product or service in which its assessed whether their
impact on health and safety can be improved, and percentage of total products and
services categories subject to such procedures
Complete
Section 5, plus Facts and figures
PR2
Total number of incidents of non-compliance with regulations and voluntary codes

of conduct concerning health and safety impacts of products and services, by type
of outcome
Partially complete During the reporting period, there were 38 product recalls in Europe. In Germany, nine new products were recalled in 2009 and three in 2010.
PR3
Type of product and service information required by law, and percentage of significant Complete
products and services subject to such information requirements
PR4

of conduct concerning product and service information and labelling, by type of
outcome
Partially complete During the reporting period, there were 24 incidents.
PR5
Practices related to customer satisfaction, including results of surveys measuring

customer satisfaction
Partially complete A customer survey is conducted in our stores once a year, as well as a daily
evaluation of our Brand Index. In addition, the Customer Service department
deals with problems and enquiries from KiK customers on a daily basis.
Customer Service can be contacted by phone, via the online form on the KiK
website or by mail.
PR6
Programmes for ensuring compliance with laws, standards and voluntary codes of
conduct related to marketing communications, including advertising, promotion and
sponsorship
Complete
Such programmes do not exist. A voluntary undertaking in respect of advertising is to be developed by 2012.
PR7

of conduct around marketing communications, including advertising, promotion and
sponsorship, by type of outcomes
Complete
There were no such incidents during the reporting period.
PR8
Total number of substantiated complaints regarding breaches of customer data

protection and the loss of such data
Complete
There were no such complaints during the reporting period.
PR9
Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services
Complete
The value of fines is not given. Please see the note against performance
indicator SO8.
Sections 2 and 5
87
GLOSSARY
Million seller
Product range with annual sales of more than 1 million
Audit
Announced review of factories by accredited, independent, external auditing company covering social and environmental aspects, based on the requirements of
the KiK Code of Conduct
B.A.U.M. e.V.
Bundesdeutscher Arbeitskreis fr umweltbewusstes Management e.V. With a current total of over 500 members, B.A.U.M. e.V. is the largest business environmental
initiative in Europe.
Organic blend cotton
Mix of organic and standard cotton
Organic cotton
Cotton awarded the seal of the Global Organic Textile Standard (GOTS)
Blue Angel
Blue Angel (Blauer Engel) is a quality seal for products and services that are environmentally friendly. It was introduced in 1978.
BSCI
The Business Social Compliance Initiative (BSCI) is a non-profit organisation based in Brussels which works to improve social standards in the worldwide retail
supply chain.
CAPA
Corrective plan in which all findings of an audit are entered and an appropriate timeframe for action is set. Based on this corrective plan, which is constantly updated
by the agencies, the CSR department subsequently checks the further development of the supplier.
CARE Bangladesh
Care Bangladesh is a Bengali non-profit organisation which provides development and emergency aid. It belongs to the CARE International network.
CARE Deutschland-Luxemburg e.V.
CARE Deutschland-Luxemburg e.V. is a German NGO which provides development and emergency aid, worldwide. Together with eleven sister organisations, it
forms part of the CARE International network, the general secretariat of which is based in Switzerland
CARE International
The Cooperative for Assistance and Relief Everywhere is among the largest aid organisations currently operating, with a presence in many countries and with many
regional offices.
Chain of Custody
Product chain
Code of Conduct
KiK has developed an internationally applicable Code of Conduct, which corresponds to the code of conduct of the Business Social Compliance Initiative (BSCI)
and is guided by the internationally accepted SA8000 standard of Social Accountability International (SAI). It contains all the standard conventions of the International Labour Organization (ILO), ensuring that working guidelines drawn up by KiK are applicable everywhere.
Corporate Social Responsibility
Describes the activities of companies, other organisations and institutions that voluntarily assume social responsibility beyond the degree that they are required to
by law.
CSI
Consulting Service International (CSI) is a consultancy with which KiK has been working for some years now in the area of supplier certification.
DKMS
DKMS Deutsche Knochenmarkspenderdatei gemeinntzige Gesellschaft mbH was founded over 20 years ago, with the aim of identifying cell stem donors for
leukaemia patients.
ECOFYS GmbH
ECOFYS Germany GmbH is an independent consultancy that works across Europe with experts in verifying greenhouse gases in European emissions trading.
Ergee
Austrian hosiery brand popular across Europe. At the beginning of 2009, clothing discounter KiK acquired this well-established brand.
FSC
The Forest Stewardship Council (FSC) is an international, independent, non-governmental and non-profit organization. The FSC label certifies that wood or paper
products originate from responsibly managed forests. Products certified by the FSC are guaranteed to have come from woods managed in accordance with the
social, economic and ecological needs of the generations of today and tomorrow.
GoGreen
Environmentally friendly shipping service offered by DHL, where associated CO2 emissions are calculated according to a procedure based on the principles of the
ISO 14064 standard. In line with the terms of the Kyoto Protocol, these emissions are balanced out by environmental protection projects.
Gold Standard Award
The Gold Standard Award is a prize for exemplary PR work in Asia. It is awarded in 11 categories by the association Public Affairs Asia.
GOTS
The Global Organic Textile Standard (GOTS) seal guarantees that, with garments made from natural fibres (e.g. cotton, linen, silk) and throughout the entire production chain, no hazardous chemicals are used in fibre preparation and garment finishing. The social standards of the International Labour Organization (ILO) are
taken as minimum requirements.
GreenBuilding
European Commission programme to improve energy efficiency and the use of renewable energies in non-residential buildings.
Greenhouse Gas Protocol (GHG Protocol)
The Greenhouse Gas Protocol is an internationally recognised tool for quantifying and managing greenhouse gas emissions. It lays down specifications for
organisation-wide calculations of greenhouse gas emissions and for the implementation of projects to reduce emissions.
Handelsverband Deutschland (HDE)
Handelsverband Deutschland e.V. - Der Einzelhandel (HDE) is the leading organisation of the German retail trade for around 400,000 independent companies with
a total of 2.9 million employees and annual sales of over 400 billion euros. As an employer and trade association, it represents the interests of the retail industry in
Germany and the European Union.
help and hope Stiftung
Since it was founded in 2005, the help and hope foundation has dedicated itself to aiding children in need at a national and international level. Its aim, through
support programmes for socially disadvantaged children, is to help them to help themselves and give them the promise of the life they themselves want.
Heroes2
Heroes2 is a non-profit organisation which, working together with the Guangdong Academy of Forestry, introduced a reforestation programme. The goal is to
ensure the sustainable planting of forests based on environmental criteria.
ILO
The International Labour Organization is a UN specialized agency tasked with promoting social justice, as well as human and labour rights.
Karl Kaus Stiftung
Non-profit foundation for the protection of wild animals and sustainable protection of their habitat
NGO
Non-governmental organisation - association dedicated to social and environmental intervention
Non-food products
Our non-food range consists of party goods, cleaning materials, accessories, decorations, household products, home textiles, food, toys, writing materials, petcare
and drugstore products.
DIN EN ISO 14001:2009 standard
International environmental standard for companies and organisations. The ISO combines efficiency with environmental protection. ISO 14001 helps in the setting up
of an effective environmental management system.
Principles and general requirements for an environmental balance sheet
Summary of ISO 14040 to ISO 14043 in ISO 14044
NOS
Never out of stock - products that are a constant feature of our range
Oeko-Tex standard 100
The Oeko-Tex standard 100 is a consistent, worldwide testing and certification system for raw, intermediate and final textile products, across all stages of manufacture. The hazardous substance tests cover substances regulated and forbidden by law, chemicals that are hazardous to the health and parameters in respect of
healthcare.
PAS 2050:2008
PAS 2050 is the first standard of this kind and was produced by the BSI Group (a British standards and regulations body) and Defra (the UKs Department for
Environment, Food and Rural Affairs).
Pre-scan
A pre-scan is a prior check conducted on a supplier before a first order is placed. It is carried out by specially trained employees of an agency. Social standards in
the production facilities are checked, based on a checklist.
Product carbon footprint
The product carbon footprint refers to the greenhouse gas emissions produced throughout a product's entire lifecycle for a defined use and in a defined usage unit
Products, that help
Environmentally optimised products; all income derived from their sale is channelled exclusively into social and environmental support projects.
Public Affairs Asia
Asian press association
88
GLOSSARY/ABBRE VIATIONS/E X TERNAL SOURCES
Quick scan
The checking of production facilities in respect of social and environmental aspects, based on the requirements of the KiK Code of Conduct.
Re-audit
Unannounced check conducted at regular intervals on the performance of a supplier. The re-audit checks whether points for improvement from the first audit are
being addressed and records current social and environmental performance.
ROBIN WOOD
ROBIN WOOD e.V. Gewaltfreie Aktionsgemeinschaft fr Natur und Umwelt is a German environmental and nature protection organisation.
SA8000
SA8000 is an international standard that has the goal of improving the working conditions of employees.
SAI
Social Accountability International (SAI) is an international NGO based in New York (US).
Smart meter
An intelligent energy meter that shows the actual energy consumption of the relevant user and at what time it was used.
STR Inc.
STR Inc. (Specialised Technology Resources): independent auditing institute
Sustainable products
Sustainable economically, ecologically and socially
Systain Consulting GmbH
Consultancy specialising in Corporate Social Responsibility
TOXPROOF
TOXPROOF certificate meaning that a product has been tested for the absence of hazardous substances by TV Rheinland
Greenhouse gas
Greenhouse gases are gaseous substances in the air that influence radiation, contribute to the greenhouse effect and can have both a natural and an anthropogenic
origin.
TV Nord Cert GmbH
The certification company TV NORD CERT assesses and certifies that legal regulations and voluntary standards are being met.
TV Rheinland
The TV Rheinland group is a leading international services company that works to ensure safe and sustainable solutions in terms of people, the environment and
technology.
Environmental audit
Complete audit including the testing and monitoring of waste water disposal, operating material consumption and waste disposal.
Environmentally friendly product
All products that have been optimised in terms of hazardous substances, use of raw materials and resource and/or in terms of production-related emissions.
ABBREVIATIONS
BGCCI
Bangladesh German Chamber of Commerce and Industry
CO2e emissions
Carbon dioxide equivalents (greenhouse gas) emissions
ct
Cent
d. PE
Direct primary energy
Gram
GRI
Global Reporting Initiative
IUCN
International Union of Conservation of Nature
i. PE
Indirect primary energy
kg
Kilogram
km
Kilometre
kt
Kilotonne
kWh
Kilowatt hour
m2
Square metre
m3
Cubic metre
Million
bn
Billion
MWh
Megawatt hour
NOx
Nitrous oxide
SO2
Sulphur dioxide
ton
EXTERNAL SOURCES
CSI
Market report
Product Carbon Footprint Jeans
Tengelmann Energie
Emissions report 2009

Emissions report 2010
GRI performance indicators handout for KiK overall
GRI performance indicators handout for KiK Germany
Product Carbon Footprint: patchwork rugs
KiK
Environmental management system

Code of Conduct
CSR brochure
89
Awarded an A+
The development of our first sustainability report has been led by a desire to provide openness and transparency. A key indicator of
this is the independent verification of the reports contents, a task for which we commissioned two prestigious consultants. As part
of their audit of the report, they evaluated compliance with the guidelines formulated by the Global Reporting Initiative. The results
were detailed in an extremely comprehensive, critical review, and are summarized in the following general assessment. You can
read the full critical review online at www.kik-textilien.com. In light of the balance struck between fully reported and partially reported
indicators, the independent consultants found that the report satisfies the requirements of GRI Application Level A+.
General
KiK Textilen und Non-Food GmbH has produced its 2010 sustainability report in-house. This sustainability report is the
first to be presented by KiK Textilien und Non-Food GmbH. Dr. Christian Gressner of fjol GmbH, Mnster, and Dr. Ulrike
Eberle of corsus corporate sustainability, Hamburg have been asked to critically evaluate the report. They have conducted their review based on the G3 guidelines for sustainability reporting of the Global Reporting Initiative (GRI).
With a particular view to facilitating comparison, this KiK GmbH sustainability report has been compiled according to
the specifications of the GRI 3.0 guidelines. Checking the accuracy of the primary data collected by KiK did not form part
of the critical review.
Any suggestions from the reviewers as to how the report might be improved will be incorporated in future editions. In
particular, these suggestions had to do with the make-up of the report, precise presentation of facts and coverage of the
GRI indicators.
The following areas have been identified as having room for improvement: it would be good, in the next report, to close
any small gaps that may exist in reporting on indicators, specifically social indicators. Furthermore, the relevant target
year must be stated for all quantitative goals. However, on the whole, the report satisfies the criteria:
Relevance: Within the legal boundaries of the report, information is given on the environmental impact of business
operations. Actions and measures for issues identified as relevant have been developed.
Completeness: All management strategies and all 121 GRI indicators are reported, 99 of them in full and 22 of them
partially.
Consistency: Definition of the four action areas in the context of sustainability is clear and conclusive. The accompanying measures/actions and KiKs strategic goals appear to be consistent.
Accuracy: The indicators are largely reported on accurately.
Transparency: The report is transparent and inherently consistent.
A sustainability report documents a companys own view of what is a learning process. Against this background, the
representation of stakeholder management is key to successful sustainability reporting. It is important to take a step-bystep approach in convincing critics of the credibility of ones commitment to sustainability and to involve these groups in
future strategy development.
In this context, this publication can be considered a good, committed and ambitious first report, which deals extensively
with the controversy around discount clothing and KiKs responses. The environmental protection goals and development
of premium suppliers, such as those in Bangladesh, are to be particularly commended.
Dr. Ulrike Eberle
Dr. Christian Gener
corsus corporate sustainability, Hamburg
fjol GmbH, Mnster
www.corsus.de
www. fjol.de.
90
KiK Textilien und Non-Food GmbH

Siemensstrasse 21
59199 Bnen
Germany

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Sustainability report 2010

ABOUT THIS REPORT

ABOUT THIS REPORT

All qualitative and quantitative statements contained in

Non-Food GmbH attests to the commitment the company

this report have been approved, following careful review and

has made to sustainability during 2009 and 2010. Where

checking of the data, by the relevant departments within KiK.

available, data from 2007 to 2009 has also been included in

In addition, two independent, expert consultants have revie-

wed and evaluated the content of the report. The results of

This report is limited to the activities of KiK Textilien und

this review can be found on page 90 of this report. Having

Non-Food GmbH Deutschland, KiK Logistik I GmbH, based

consulted the G3 grid of the Global Reporting Initiative,

in Bnen and European subsidiaries outside Germany. In

these external consultants have given the content of this

accordance with the Global Reporting Initiative (GRI) indi-

cator protocol, companies that fall within the scope of the

In its present form, the report is intended for interested

report are referred to as significant locations of operation.

consumers, NGOs active in the fields of environment and

The report boundary is mainly relevant to the action areas of

social issues, decision makers from politics, legislation and

Employees and Locations.

suppliers, as well as other statutory bodies and associations.

Given the indirect yet significant impact of KiKs operations

It is published in German and English. To communicate di-

on suppliers and importers, the nature of these commercial

rectly with our customers on the issues addressed in this

relationships is also explained and documented. The report

report, we will shortly be publishing an abridged version. To

boundary therefore includes extended supply chains. These

make the report easier to read, the masculine form is gene-

are principally relevant in terms of the Supplier and Pro-

rally used when referring to people. In all such instances, we

duct strategic action areas.

are referring to both men and women.

explained in full in the Strategy and management section,

tainability report will be published in 2013, covering the years

taking into account the three dimensions of sustainability.

2011 and 2012. The deadline for information included in the

One section of the report is devoted to each area, detailing

current report was 30 September 2011.

what we have done operationally to promote sustainability.

K IK SUSTAINABILIT Y REPORT 2010

About this report

About this report

Section 1 Company profile

KiK an idea that works

Foreword by Stefan Heinig

Facts and figures

From our European

headquarters to point of sale

GRI Content Index

Motivated and well trained

and external sources

FORE WORD BY STEFAN HEINIG

our sustainability programmes plus a mid-term plan with 13

for the year 2010.

overarching aims. In addition, we have adopted a long-term

vision that, among other things, involves developing premi-

giving you a comprehensive insight into how we approach

um suppliers in the markets where we source our goods.