Climate related risks
METRO conducted an initial scenario analyses (as recommended by Task Force on Climate-related Financial Disclosures TCFD) and identified the following risks in our business operations as well as in our supply chain:
- Physical risks resulting from extreme weather events and water damage (scarcity or flooding)
- Risks from business disruptions due to extreme weather events and due to declining economic power for our customers’ businesses and thus for our sales
- Transition risks such as rising prices for CO2 emissions (with short-term impact on costs and product prices)
- Risks of resource scarcity and associated price increases (e.g. for agricultural products over the next 5 to 10 years)
- Risks from higher investments in new technologies (carbon-neutral cooling units planned worldwide until 2030) and from investments in the generation of renewable energies (extensive installation of solar systems planned until 2030)
We consider these risks in our medium-term risk review and assess risks for revenues and costs based on rising prices and decreasing availability of resources, whereby we also include social impacts.
Managing resources responsibly
METRO conserves natural resources, for example in its use of refrigerants and paper, its facilities management, and the running of its logistics fleet. The METRO environmental guidelines form the basis for our actions.
The METRO Water Policy outlines the overall strategy to protect water as a resource, the related METRO Water Action Plan puts the policy into implementation with actions including supply chain initiatives and detailed targets on water stewardship for our own operations.
Water protection target
In connection with the METRO Water Initiative, the goal was set to save 5% of water by 2025 compared to the base year 2016/17. In 2019, we were able to reduce the consumption in our METRO wholesale stores by 6% calculated per square metre of net operating area compared to the previous year. Since the greatest impact for water is also in the supply chain, we use the CDP Supply Chain Programme to recognise potential opportunities and risks with our suppliers at an early stage.