The Otto Group becomes a Founding Member of the climate-protection initiative ‘CPI2

26.01.2012 | Hamburg

The retail sector aims to eliminate several million tonnes of CO2 emissions from the international supply chain. The Carbon Performance Improvement Initiative (CPI2), to which eight large German retail companies and brand manufacturers including the Otto Group belong, has developed a management tool for CO2 reduction at suppliers. As a Founding Member of the Initiative, the Otto Group is thus once again among the thought-leaders in global climate protection.

Under the umbrella of the Foreign Trade Association of German Retailers (AVE), eight large German retail companies and brand manufacturers (HSE24, KiK, Otto Group, QVC, Reno, s.Oliver, Tchibo and Tom Tailor) have launched a climate protection initiative: the objective of CPI2 is to cut millions of tonnes of CO2 emissions from the global import supply chain.

Up to 30 percent of CO2 emissions in the lifecycle of consumer goods are not caused in Germany but during manufacture, for instance in China, India, Bangladesh or Turkey. At the same time, there is still tremendous scope for reducing climate-damaging CO2 emissions, especially in threshold and developing countries. The causes are often simple ignorance of the issue and a lack of energy-efficiency know-how at the manufacturing companies. For this reason, the Initiative has developed a management instrument for manufacturers, above all for those in threshold and developing countries. The Initiative’s easy-to-use online tool provides suppliers with an instrument enabling them to evaluate their own energy consumption themselves, in all areas of their business. Based on these results, suppliers receive a Gold, Silver or Bronze rating as well as specific action proposals for saving energy.

These proposals range from measures that are simple, rapid and inexpensive to implement, to more complex medium and long-term processes. Suppliers can implement the simpler measures themselves; for longer-term measures, CPI2 provides know-how and specialist support. Besides specific CO2 reduction measures, the transfer of energy-saving know-how is also a key objective . Since the autumn of 2011 the management tool has been tested in a pilot phase at 15 suppliers in China and Bangladesh, and has already achieved initial successes. Wider-scale implementation at the Founding Members’ suppliers is planned for the middle of this year.

CPI2 is accompanied by specialists from the German Federal Environment Agency and the German Society for Investment and Development (DEG), and receives funds from the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) programme ‘Climate partnerships with the private sector‘. The BMU supports the programme within the framework of the International Climate Initiative. The development work and implementation are carried out by the company consultancy Systain Consulting GmbH. The Initiative was presented yesterday at a press conference in Düsseldorf, Germany. The Founding Member companies have combined annual sales of around 20 billion euros.

For the Otto Group, CPI2 is not the first approach to combatting the challenges of globalisation. Back in 1996 the company committed to the development of a globally certifiable Social Standard. On the Otto Group’s initiative, in 2001 a worldwide solution for establishing minimum social standards was produced under the umbrella of the Foreign Trade Association of German Retailers (AVE). In this effort, an entire economic sector reached agreement on upholding specific standards, below which competition on price should no longer take place. Since the end of 2004, this model has been operated under the auspices of the FTA (Foreign Trade Association) and a new name, Business Social Compliance Initiative (BSCI). Since then, the BSCI has gained the commitment of over 700 companies.


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