Sustainable Value Creation model

At METRO we aim to measure and understand the impact our business activities have on the value chain. For years, as part of our materiality analysis, and in consultation with our stakeholders, we have been investigating to what extent we are working on the issues that our internal and external stakeholders view as material, that impact our business the most and that we can influence.

In order to obtain a complete overview of the impacts of our business activities and to be able to keep improving the value we bring to society, we are now going a step further. In 2018 for the first time, we conducted a sustainability balance for financial year 2016/17, adding a new approach to our concepts for analysing risks and opportunities. Using our Sustainable Value Creation model, we examined the economic, environmental and social impacts of METRO Wholesale’s business along the value chain and gave them a monetary value. This allows us to compare the significance of the impacts directly and to point up interrelationships.

Activities and outcome

Sustainable Value Creation Model (graphic)
Figures are based on financial year 2016/17, which was the base for the impact assessment too, and only refer to the business of METRO Wholesale.

By conducting such a holistic analysis we go beyond looking at standard key financial indicators as METRO. The results of the sustainability balance show us where negative impacts can be mitigated and positive impacts enhanced. This approach therefore supports our sustainability strategy, creates a nuanced basis for strategic decisions and helps secure our company’s long-term competitiveness.

Our sustainability balance is based on the guidelines of the Natural Capital Protocol and the Social Capital Protocol and encompasses

  • upstream processes, such as agricultural production,
  • METRO Wholesale’s own operations in stores, logistics and warehouses and
  • the downstream operations of METRO Wholesale’s wholesale customers.

The results of the analysis illustrate the key importance of METRO’s supply chain and customer relations. In future, we will therefore be increasing our focus on these areas without losing sight of our commitment to our employees and our own business.

Our next step is to carry out a detailed analysis of the supply chain. The aim is to identify specific weak points and areas for improvement in order to facilitate concrete measures.