ESG management

Sustainability management takes into account interdependencies between economic, environmental, social and corporate-governance-related aspects. The Management Board of METRO AG is involved in the work related to the topics presented here. As part of the Commercial Board, it is regularly informed about work progress and is involved in decision-making on a case-by-case basis. Since May 2023, these duties have been carried out by the ESG Peer Group, which functions as the replacement of the former Sustainability Committee. In addition, the long-term component of the remuneration system for the Management Board and senior management (below the Management Board) is coupled with the achievement of the sustainability targets of reducing CO₂ emissions and reducing food waste. The ESG Peer Group enables the top levels of management to engage in dialogue on topics related to sustainability. This body defines the strategic framework as well as objectives which apply throughout the group and submits them to the Commercial Board for informational purposes or for a decision. The ESG Peer Group is comprised of top representatives of the core functions of Corporate Responsibility, Corporate Legal Affairs & Compliance, Purchasing, Global Offer Processes & Master Data Management, Quality Assurance, Human Resources, Treasury, Accounting and Controlling, Investor Relations and Strategy, Internal Audit, Communication and Energy Management/Real Estate Sustainability, as well as representatives from METRO companies.

To adequately respond to the specific market and customer requirements, the METRO companies manage the operational implementation of overarching sustainable development goals within this framework. They are responsible for working on the relevant sustainability issues, for defining and implementing specific targets and measures and for monitoring their success.

METRO analyses non-financial risks along the material non-financial matters. In the reporting period, METRO focused in particular on risks in the areas of human rights as well as environmental and social issues in order to implement new regulatory requirements. In addition, sustainability risks are being gradually integrated in our opportunities and risk management. Due to the risk analyses carried out, the Management Board is able to identify, evaluate and control deviations from the sustainability goals and the associated opportunities and risks. An analysis of potentially reportable risks in connection with the non-financial aspects was carried out. After applying the net method and considering the risk mitigation measures, it did not reveal any material risks as defined in § 289c Section 3 Sentence 1 Nos. 3 and 4 of the German Commercial Code (HGB) with a likely or definitely serious negative impact on the aforementioned aspects. For more detailed descriptions of this system, we refer to the section on environmental and social risks in chapter 4 – opportunities and risk report.

Our stakeholders evaluate all sustainability measures implemented, for example through ratings. These assessments by independent third parties show us progress and potential for improvement in our actions and are thus an important motivation and management tool for us.