Finland: Kesko among the world's leading companies in sustainable development

Kesko's sixth Corporate Responsibility Report, published today, is a comprehensive, established package of information on the Group's performance in economic, social and environmental responsibility. The report now includes more accurate information about the breakdown of economic benefits generated by Kesko and K-retailers by country and Finnish region. For the first time, there are also key indicators of environmental responsibility available on the Group subsidiaries outside Finland. As in previous years, independent assurance has been provided for the report.

Performance for 2005 mainly good

Kesko's good economic performance contributed to the wellbeing of its employees, suppliers, shareholders and public authorities in Finland and Kesko's other market areas. Economic benefits generated in Finland totalled EUR5.5 billion (of which EUR2.5 billion outside the Uusimaa region), compared with EUR770 million in the Baltic countries and EUR500 million in the other Nordic countries.

In the area of environmental responsibility, proportion of renewable energy of all electricity purchased increased to over 50%, relative transportation-related emissions decreased and the waste recovery rate remained high. Specific consumptions of electric and heat energy per square metre increased, and foreign companies generated considerably more waste ompared with the volume of operations than the Finnish ones.

The average number of employees during the year increased by a fifth or 4,075 over 2004 - in Finland the increase was 945. The proportion of fixed-term and part-time employees continued to decrease in Finland and throughout the Group. Job satisfaction remained unchanged in Finland and Sweden, improved in Estonia and Latvia, and decreased in Lithuania. The number of sick days per employee decreased. The number of training days increased, but money spent on training decreased.

Kesko among top-of-the-world companies in sustainable development

Kesko was named by Dow Jones the leading company in the world in the retailing sector in its sustainability index for 2006 and listed among the Global 100 Most Sustainable Corporations by the World Economic Forum in January 2006. The Innovest Strategic Value Advisors Inc, which prepared this assessment, also rated Kesko Food Ltd the best company in its global analysis of food and drug retailers. Kesko also continued to be included in other corresponding index listings revised during the year.

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