Sustainability report 2023
Foreword
In the face of the most pressing challenge of our time, the imperative for action on climate change and sustainability has never been more urgent. As we navigate the complex landscape of environmental degradation and global warming, it becomes increasingly apparent that the future of our planet hinges on our ability to strike a balance between economic growth and environmental stewardship.
This report serves as our compass, guiding us through the labyrinth of challenges and opportunities in our journey towards a sustainable future. It underscores the importance of mitigating the effects of climate change, not only for the sake of our planet but for the well-being of present and future generations.
However, we cannot overlook the inherent tensions that exist between business growth and sustainability. In a world driven by profit margins and market dynamics, the transition towards sustainable practices can often seem like an uphill battle. It is imperative to recognize that true prosperity lies in harmonising economic progress with environmental responsibility. By embracing sustainable business models, we not only safeguard the health of our planet but also foster innovation, resilience, and long-term value creation.
One of the greatest challenges we face in this endeavor is the task of accurately measuring and
reducing Scope 3 emissions (see page 16) throughout the supply chain. The interconnected nature of modern economies means that a significant portion of emissions occurs beyond the direct control of our organisations. Addressing Scope 3 emissions requires collaboration, transparency, and a concerted effort to trace and mitigate environmental impacts across the entire value chain.
Navigating the complexities of Scope 3 emissions necessitates a multifaceted approach that encompasses technological innovation, policy reform, and engagement with our suppliers, customers and partners. It demands a paradigm shift in how we conceptualize value creation, moving away from a linear, extractive model towards a regenerative, circular economy.
The pursuit of sustainability is not a zero-sum game. It is a collective endeavor that requires the active participation of businesses, governments, civil society and individuals alike. Together, we can shape a future where economic prosperity is inextricably linked with environmental stewardship, where every decision we make today reverberates with the promise of a better tomorrow.
Vesa Punnonen Chairman of the board Kaupmees Grupp
We cannot overlook the inherent tensions that exist between business growth and sustainability.
In a world driven by pro t margins and market dynamics, the transition towards sustainable practices can often seem like an uphill battle.
Purpose of the report and executive summary
This 2023 sustainability report is the second consolidated report for Kaupmees Grupp. It aims to integrate overall business and sustainability performance, data and context, outlining our journey towards sustainable business practices. As measuring the environmental impact of our operations is an evolving and learning process, the goals going forward are continuously being updated.
Kaupmees Grupp’s sustainability goals are part of the sustainability goals of our mother company, Transmeri Group, which defined its sustainability goals based on the United Nations 17 Sustainable Development Goals (SDG) and sees its impact most effectively in three SDGs:
8. Decent work and economic growth: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
13. Climate action: Take urgent action to combat climate change and its impacts
17. Partnerships for the goals: Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development
Transmeri Group’s sustainability goals are described as the active reduction of emissions from facilities, transportation and mobility, offsetting remaining emissions by 2035. The previous claim of carbon neutrality has been changed, as the claim cannot be made before all Scope 1, 2 and 3 emissions have been calculated. Today, we know that some Scope 3 emissions are not calculated thus the claim of neutrality is not truthfull.
At Kaupmees Grupp the sustainable development goals were agreed on a board level in 2021, taking into account both the goals of the Transmeri Group as well as the UN SDGs. The sustainability goals of Kaupmees Grupp are within three categories:
3. Good health and well-being: sustainable and healthy work environment; supporting local communities; ethical business practices; reducing illness related costs in society.
9. Industry, innovation and infrastructure: responsible logistics chain; digitisation of business systems.
13. Climate action: using renewable energy; climate neutral refrigeration systems; improving energy efficiency of systems; reducing carbon footprint.
In line with Transmeri Group, the goal of Kaupmees Grupp is to actively reduce carbon emissions by 2035. During 2023 the primary initiatives to reduce emissions has been the replacement of freon based cooling systems with much more efficient CO2 based systems, moving the administrative business functions to a new LEED (Leadership in Energy and Environmental Design) gold level building, reducing both emissions and improving shared services productivity as well as investing in own logistics, for more fl exible cold-chain deliveries. The latter, however, works against our Scope 1 emissions.
As a distribution business sourcing thousands of products locally and from across the world and delivering them to our customers, our logistics chain has a considerable impact on our natural environment. Better and faster service to our customers will continously be competing with the goal of reducing the impact of delivery services.
People need to eat and producing and delivering food is not something that can be done without an environmental impact. However, choosing what to eat and where that food comes from, are decisions that affect the wellbeing of our planet profoundly. Kaupmees Grupp plays an important role in reducing this impact through sourcing, logistics and packaging decisions.
Kaupmees Grupp at a glance (2023)
Scope 1 and 2 emissions 65% reduction 2021 vs 2022 and 8,5% reduction 2022 vs 2023
Purchase of own trucks to improve cold-chain logistics
Digitisation of shared services to improve efficiency and eliminate duplication
Installation of solar panels, decreasing grid dependance
Continous upgrade of cooling systems to reduce energy consumption Improving logistics planning and synergy between group companies
Professional People are a Practical Partner
Our core values are professionalism, our people, practicality and focus on partnerships.
Professional: everything we do, we do well. We base our actions on facts. We don’t do things by halves and we continually educate ourselves to provide the best service.
People: we do the work we enjoy doing. We respect, support and trust each other. We understand that cooperation delivers results and we work as one team.
Practical: we always find the right solution. We are not stuck in the old way of doing things, but use our extensive experience to inform our decisions. We are open to new solutions and don’t let technical difficulties stop us. We offer good and reasonable cooperation opportunities to our partners.
Partner: we believe in win-win solutions. Together with suppliers and customers we seek the best solutions that help both us and our partners to ful fil their goals.
We follow the Transmeri Group code of ethical conduct. It clearly defines respect for dignity and human rights; zero tolerance for illegal conduct; zero tolerance for any form of child or forced labour within Kaupmees Grupp or our suppliers and partners; support for fair wages and right to organised labour; a non-discriminatory workplace; a safe and supportive working environment; protection of the environment and reduction of environmental impact; protection of personal data and following ethical business practices.
Tridens: With Dignity and Spirit
Changing climate and customer demands are encouraging Tridens to find new and more sustainable brands among the world’s many wineries. After all, a glass doesn’t have to come with a climate hangover.
Corporate governance and our commitment to sustainability
On a board level sustainability is addressed on a quarterly basis with HR being primarily responsible. Information and communication about sustainability is shared with all staff through the internal newsletter. Yearly, Kaupmees Grupp reports progress on scope 1, 2 and 3 to Transmeri Group.
Kaupmees Grupp is an administrative unit of 22 people responsible for shared services of group companies, to grow inter-company cooperation and raise efficiency. On the group level sustainability issues are addressed by the CEO and head of HR, with targets and accountability delegated to each business unit to reach individual goals.
e-Commerce
Implementation of a competitive and ethical strategy for e-commerce. Development of eKaupmees, eTridens webshop as well as other digital channels and ensuring their operation. Continuous analysis of customers' purchasing
preferences and habits and planning of new functionalities and e-products.
Logistics
Profitable management of sustainable supply chain and logistics operations. Development of a distribution and storage system and organisation of freight transport. Management of central warehouse activities. Planning and carrying out activities to reduce the CO2 footprint.
IT
Developing information technology and economic software strategy that supports the company's business processes and goals, ensuring competitiveness, its effective development and management. Ensuring the availability of IT tools, responsible disposal and renewal.
Finance and accounting Management of the company's resources and risks and the budget process. Timely organisation of accounting records.
Preparation and submission of the annual report nancial report. Ensuring ethical
Administration
Maintenance and preservation of the company's real estate and equipment, concluding maintenance contracts and ensuring execution; administrative, mobile and fuel cost management and analysis. Developing and implementing measures aimed at CO2 reduction according to the resources provided by the company owners and the agreed schedule.
HR
Ethical, legally compliant HR and salary policy management. Analysis of work processes, labour needs and costs. Training and development activities. Recruitment of personnel. Ensuring working time and holiday records. Coordinating the activities of a responsible company. Organisation of internal communication. Management of occupational health and safety activities.
On a company level, purchasing, sales and marketing department responsibilities vary somewhat according to the specifics of each business. Sales and purchasing departments are responsible for the application of the code of ethics for both suppliers, customers and partners.
Sales
Development of sales to warehouses and goods delivery networks. Creating and developing ethical and responsible relationships with customers. Increasing the customer base by fi nding new customers. Identifying customer needs, fi nding solutions, consulting, ensuring peace of mind, increasing sales.
Purchasing
Assortment design and development. Pricing and Sourcing. Development of general principles for displaying goods in warehouses. Managing ethical and responsible cooperation with suppliers.
Marketing
Managers look for synergy in projects that offer opportunities for cooperation. When planning marketing activities and ordering marketing materials, the sustainability and environmental footprint of the created solutions are considered. A priority is increasing recognition in priority target groups while focusing on how to better support our
loyal customers and consumers. When choosing partners and brands for the product portfolio, an important consideration is the sustainability of the stakeholder group.
From our partner survey
In response to our own survey, a retail bank quoted research that they had done among Estonian consumers, asking them to rate their understanding of sustainability and their willingness to make purchasing decisions based on it. From that research they concluded, that food products are the first place where consumers consider sustainability as part of their purchasing decision.
“Therefore, it is very important that a company like Kaupmees guides and makes it easier for the consumer to make sustainable choices through its product selection. In the future sustainable choices should ideally be better priced for the consumer and vice versa. This would support the making of sustainable choices and the transition to a sustainable society possible.”
- Swedbank
In preparation for 2026: CSRD
CSRD refers to the European Union’s Corporate Sustainability Reporting Directive and is the framework under which companies declare their sustainability initiatives and environmental impact by 2026. Within this framework we are also beginning a double materiality assessment (DMA). The DMA directs companies to not only consider how their activities across the entire value chain impact people and the environment, but also how sustainability issues and the environment can affect the company financially in the short-, medium-, and longterm.
For us the goal of the assessment is to identify the most essential sustainability themes from those outlined in the directive.
Our sustainability goals are primarily in three areas:
Good health and well-being
3. Health and well-being
Our staff and the communities in which we operate are our most valuable asset. We invest continuously, to ensure that we provide an inspiring and safe working environment, that we contribute and support our local communities and that both our partners and suppliers follow the same ethical principles as we do.
3.1. A sustainable and healthy working environment
Employee health and well-being are crucial to the success of Kaupmees Grupp. To help our people to take better care of themselves we’ve introduced health insurance for all employees that allows for quicker access to specialists and care including dental care. As part of supporting the health of our staff, we are also beginning to address mental health, which has become a societal topic over the past few years. Management received training in better mental health care and this information is being continuously dessiminated throughout the organisation engaging all employee groups.
We are continuing to support our staff’s sports initiatives such as the Kaupmees & Ko’s football team, the step counting challenge which attracted participants from across the Baltic companies, as well as running and bowling groups.
To reduce the risk of workplace accidents annual audits are performed to update our risk analysis and workplace safety guidelines. We continuously track employee sickness and accident data as well as employee turnover. In 2023 Kaupmees & Ko experienced one workplace accident and labour turnover has been reduced by 1%. Workplace diversity is reflected by the fact that over half of staff have over average tenure in Kaupmees Grupp.
Employees are reminded of the Kaupmees Grupp’s ethical code of conduct through the internal organisation newsletter and it forms an important aspect of onboarding for new employees.
3.2. Supporting the community
We continue to donate food items approaching the best before date to the Food Bank. The value of items donated in 2023 exceeded €61,000. Our long term cooperation with the Estonian Chefs’ Association continued and Kaupmees & Ko was the main sponsor of the Chef of the Year 2023 competition as well as supporting the Young Chef 2023 winner’s participation in the EuroSkills 2023 competition in Gdansk, Poland. Kaupmees & Ko also helped support the head chef’s teams’ preparation for the IKA Culinary Olympics taking place in early 2024.
Supporting Ukrainian resilience
companies have stopped selling all Russian and
helping Ukrainian refugees as well as making donations to organisations active in Ukraine.
From our partner survey
Immediately, we see four areas of opportunity in cooperation to secure a sustainable supply chain: Digitisation - the possibility for full electronic data exchange. Logistics - certain types of trucks and fuel. Products - reliable and high-quality data about the product including packaging and materials (in relation to singleuse plastic). Employees - motivation and support, which ensures better quality of deliveries (fewer mistakes in order assembly). There are likely even more and we value openness to discuss various topics, to generate new ideas.
- Selver
3.3. Ethical business
Kaupmees Grupp upholds ethical and responsible business practices, expecting all employees and partners to adhere to these principles. In 2022, the company distributed its code of ethics, aligned with its core values, via intranet, newsletters, seminars, and new employee on-boarding. This process continues. The code forms the basis of our operations, guiding all training and events. Additionally, our ethical business principles, initiated in 2021, will be provided to partners as a contract addendum on all new and existing contracts. We ensure equal development opportunities for all employees and encourage applicants with special needs to apply for vacancies, and do our utmost to adapt working conditions, if at all possible, to those needs.
What will we do in 2024?
We are implementing the "Whistleblowing Channel". It allows any employee to report harassment, unethical or disturbing behaviour anonymously.
We will bind cooperation partners to the principles of ethical behaviour using Transmeri Group’s Supplier Code of Conduct, which is based on UN, ILO and OECD recognised principles. A reference will be added to supplier contracts, where parties
agree to be guided in their activities by these codes of ethical conduct.
3.4. Reducing the costs of illness in society
In 2021 and 2022, we modernised our risk analysis, conducted employee guidance regarding biological and psychological risk factors and the risks of working in home offices. We will continue to update the risk analysis of the working environment. In cooperation with working environment commissioners and heads of units, the working environment management matrix is continuously updated to better manage risks and danger factors.
All occupational safety manuals have been updated. Commissioners have been trained and internal inspection is carried out twice a year and the situation is mapped and analysed by the commissioners and the work environment specialist, and the necessary improvements are planned.
We arrange flu vaccination both for staff and their family members.
All employees have had the opportunity to participate in first aid courses.
We monitor the amount of sick hours, we enable employees to pay more attention to health through our employee health insurance plan, which started in April 2023.
Lindström on Kaupmees Grupp
Lindström's business model has sustainability ingrained by its very nature. We make sure that thread becomes textile and textile becomes thread again with as little environmental impact as possible, keeping in mind the circular economy. When companies committed to sustainability work together, it further enhances the green mindset, and that's nothing but good.
We have developed a number of expectations and requirements when choosing suppliers and other partners. Our assumption is that partners are reliable and economically stable companies that operate within laws and agreements, respect human rights and pay special attention to environmental protection in their activities.
As the operator of an extensive sales network, Kaupmees Grupp has the opportunity to similarly influence its own suppliers as well, choosing as partners companies based on the principles of social and environmental responsibility.
- Lindström
3.1. Sustainable and healthy work environment
3.2. Supporting the community
Equal opportunity employment opportunities in a wholesome work environment
Employee satisfaction measures
3.3. Ethical business practices
0 work accidents and no more than 3% sick days
Wholesome and healthy work environment, health and safety training
Ensuring stable and reliable employment opportunities
Working with local communities, donations to food banks
Supporting education
Supporting important community initiatives through sponsorship
Equitable and sustainable business practices
Honest and ethical partnerships
3.4. Reducing costs related to illnesses in society
Improving the health and wellbeing of employees
Equal opportunities, providing a whistleblowing platform
Supporting healthy and active lifestyles, health insurance to staff
Safe work environment
Estonian Chefs’ Association. Photo: Lauri Laan
Kaupmees women’s running team
Industry, innovation and infrastructure
9. Industry, innovation and infrastructure
We are continuing the digitisation of processes and systems in an effort to increase synergy and savings in the cooperation between different group companies. Digitisation improves the fi nancial efficiency of the organisation throughout the value chain as well as reducing the environmental impacts of product logistics from the producer all the way to the end customer. In addition to the large scale initiative to increase the sustainability of the whole logistics chain, Kaupmees Grupp also moved its offices to a LEED Gold certified office building on the Ülemiste City campus, which supports closer cooperation between over 110 specialists from all group companies.
The goal with digitisation is to completely eliminate paper documentation from receipt of a customer order to delivery confirmation and invoicing. The digital process flow encompasses entering the order, order fullfilment in the warehouse, staging, loading, electronic bill-of-lading forwarding to the customer, delivery tracking, delivery and confirmation receipt, transport package collection and package deposit credit invoicing.
Strength in cooperation
Online sales are increasing. Kaupmees Grupp companies are combining their experience to
provide customers with a common digital experience (each with their unique face) in order to save on costs while providing a best-in-class user experience. The goal of the development process is to enable all group companies to offer sales to both business and private customers. Separate platforms for each company would be prohibitively expensive and labour intensive, thus realising savings through shared services contributes both to fi nancial savings and sustainability through lower waste.
Unified ERP for Kaupmees Grupp
We are continuing on the set path to implement one single ERP system for the whole group. Already introduced for Kaupmees & Ko, warehousing and Tridens, the turn has come to Vegelog, Karisma and Jahelogistika. The benefits of a common ERP improves cooperation as all group companies have access to timely and accurate business intelligence. It also enables the introduction of standardised processes leading to resource optimisation, better reporting and supervision as well as reduced costs through the automation of many processes.
Employee data has been moved to a cloud based self-service environment, providing greater transparency for both staff and managment of working schedules.
SDG Actions
9.1 Digitisation of systems Growing of e-business
Intranet development
Modernisation, coordination and digitisation of similar work processes in group companies
9.2. Responsible supply chain
Working time, salary selfservice system to the cloud
Designing unified logistics centre
Digitisation of purchase invoices and receipt of goods by scanner
Logistics App / solution: digital delivery / receipt of goods by the customer, return of tare, claims and return of goods
Automation of ordering system
New cash & carry concept: self scan app, digital displays etc
Climate action
13. Measures against climate change.
The aim is to reduce the group’s energy consumption by improving efficiency, increasing own energy production and purchasing energy only from renewable sources. In 2023, Kaupmees Investeeringud AS, the group's real estate management company, installed solar parks on the roofs of warehouses in Pärnu, Tartu and Kadaka in addition to the previous one in Kivilinna. As a result of the investments, Kaupmees & Ko covers at least 10% of its energy needs with self-produced renewable energy.
Lighting solutions are continuously being optimised to reduce electricity consumption. The Freon-based refrigeration systems in Kaupmees & Ko’s warehouses are gradually being replaced by environmentally safe CO2 cooling systems.
13.1. Using renewable energy
Since October 2021, we only buy electricity produced with renewable energy solutions. In 2023, we installed an additional three solar power plants with a total capacity of 350kW. Today, the total capacity of Kaupmees & Ko’s solar power plants is almost 550MWh, which theoretically saves 232 tons of shale oil and reduces CO2 emissions by 275 tons every year. In 2024, we will build another 100 kW solar power plant, bringing total annual production
to around 650 MWh while reducing CO2 emissions by approximately 325 tons per year.
13.2. Climate neutral refrigeration
Over the past three years, we have installed CO2 refrigeration systems in Narva, Pärnu and Tartu Kaupmees & Ko warehouses, eliminating nearly 900 kg of Freon gas with a GWP number of 3922 from our facilities.
In essence, we have prevented the equivalant release of 3592.8 tonnes of CO 2 into the environment through the renewal of cold stations. Instead, we have put 450 kg of CO2 gas in the "can", which today does the same job in our refrigeration equipment with 30% less energy consumption. The amount of heat energy obtained in the CO2 cooling system is much larger and with a higher efficiency than in the Freon gas system. The residual heat efficiency of Freon systems is 15%. In the case of CO2 systems, it is up to 80%, and we direct this thermal energy to heat buildings, which in turn increases energy independence and reduces the environmental impact of heat production.
13.3. Energy efficient devices
In combination with the upgrading of cooling systems, the installation of solar power generation on the roof’s of warehouses and the exchange of
ICE vehicles with hybrid one’s, we are on track to reduce our CO2 emissions.
13.4. Reducing the carbon footprint
Reliable emissions calculations are the foundation for effective climate effect mitigation efforts. Transmeri Group is responsible for the group’s emissions calculations and constantly updating the calculations based on current guidleines and best practice.
The emission calculation was expaned in 2022, when Scope 3 emissions were first included in its entirety for the first time. In order to be able to monitor the development of emissions, the figures for 2019 through 2021 were reassessed based on updated calculation principles and more available data, which is why the fi gures for the years 2019-2021 differ from those previously reported.
Scope 1, 2, 3 emissions for Kaupmees Grupp companies in 2023
SDG Principles Actions
13.1. Using renewable energy Reduced use of non-renewable energy source Solar panels on warehouse rooftops 13.2. Climate neutral refrigeration Eliminating harmful chemicals in the cooling systems, increasing efficiency and reduction of energy use Replacing freon-based cooling units with environmentally friendly systems Reusing residual heat
13.3. Energy ef devices Increasing Reducing 13.4. Reducing carbon footprint
From freon… old cooling system
Saving energy and reducing GWP from 1,17 million kg to 150kg!
The food cold chain is crucial to feeding the uorinated gases (f-gases) changed how and what we eat, by enabling a constant cold chain, from producer to home. However, f-gases are potent greenhouse gases and were tightly regulated already through the Montreal and Kyoto protocols (1987 and 1992 respectively).
In Europe we are subject to the f-gas directive of 11.03.2024, which severely limits their use. As of 2030, the production of cooling systems relying on gases with Global Warming Potential (GWP) of over 150 times the potential of CO2 will be prohibited and by 2050 the EU will need to be f-gas free.
…to CO2 new cooling system
As reference, the GWP of CO2 (cooling agent R744) is 1. Today’s cooling agent, R404A has a GWP of 3922. That is, 1kg R404A = 3922kg of CO2. Change from R404A to CO2 means that we have a long-term viable cooling system which is energy efficient, saving 20-30% over the old system while 80% of residual heat can be diverted to heating the building. And the GWP, for example for Tartu, is reduced from 1,17 million kg to 150kg. That is cool!
Alari Maavere Property manager
Kaupmees Grupp emissions 2023
We share the ambition set by our parent company: to actively reduce carbon emissions in buildings, transportation and freight by 2035. We have contacted all our transportation and logistics partners. In the current sustainability report, only about 25% of transportation emissions data has been received from carriers on their CO2 emissions. Updating this data is a continuous process for Kaupmees Grupp as well as for our freight partners and we are all making strides to ensure that a complete picture of our Scope 3 emissions can be reliably reported in the coming years.
Reporting standards
Kaupmees Grupp follows the reporting guidelines of Transmeri Group within the categories of ethical business, sustainable procurement, workplace safety, occupational health, employee well-being and climate change.
Ethical business: The Code of Conduct, reflects the percentage of the group's active employees who have received training and have committed to complying with the group's new ethical operating principles.
Sustainable procurement: The measure is the coverage of our partner's ethical guidelines, i.e. the Supplier Code of Conduct, as part of procurement and cooperation agreements.
Coverage is described by the percentage of contracts signed that also include references to ethical guidelines or similar operating principles to be adhered to by partner companies.
Workplace safety: All accidents reported to the insurance company are taken into account in the calculation, regardless of the cause of the accident.
Employee well-being: The measure will be obtained from the regularly organised personnel survey, which will gauge the commitment of employees to the company and their satisfaction with the organisation, amongst other things.
Climate change: The Transmeri Group follows the calculation principles of the Greenhouse Gas protocol. The operational delimitation of the emissions calculation currently includes scope 1 and 2 emission categories according to the GHG protocol, as well as emissions from the scope 3 categories of travel to work, business travel, and transportation and distribution.
Scope 3 emissions
Calculating Scope 3 emissions is a complex task. Kaupmees Grupp’s companies each have a spiders-web of suppliers and customers. Complexity increases from diverse geographic locations, operational structures and emission profiles of each entity involved. Gathering this data entails navigating a labyrinth of sources, ranging from supplier reports to customer usage patterns. Additionally, variability in emission calculation methodologies across regions and industries makes it even more complex. Ensuring accuracy requires a robust veri fi cation and validation process, which considering the sheer volume of data involved, is already daunting.
Establishing transparent communication channels and fostering collaboration with suppliers and customers is essential to obtaining accurate data. Across the world, which means across our supply chain, the
urgency of climate change and meeting climate targets is felt differently. Consequently, we often also find ourselves in the position of being one of the first to inform partners, that such calculations are even necessary and required. Scope 3 is a work in progress. We are working on it and taking it very seriously. But it will take time before we can confidently state the exact environmental footprint of Kaupmees Grupp.
For example, a wine supplier: located in a different region from us and our customers. Calculating the emissions associated with transporting the wine from the supplier to us involves considering various factors such as distance traveled, mode of transportation (e.g., road, air, sea), vehicle efficiency, and packaging materials. Then comes our distribution of the wine to hundreds of customers across a wide geographic area. Accounting for the emissions associated with delivering individual orders to each customer becomes intricate, requiring data on delivery distances, routes, and vehicle types. Even a single aspect of the supply chain, such as transportation, can introduce complexities when calculating Scope 3 emissions.
The big picture
We don’t like it hot
According to Copernicus, a European Earth observation programme for monitoring our planet and its environment, 2023 was the hottest year on record and 1,5C above pre-industrial levels.
Notably, 2023 was the first year that every day was at least 1C hotter than the pre-industrial era of 1850-1900. Almost 50% of the days were hotter than 1,5C and two days in November were more than 2C hotter than pre-industrial period.
Earth overshoot day
Earth Overshoot Day marks the date when humanity’s demand for ecological resources and services in a given year exceeds what Earth can regenerate in that year. We maintain this deficit by liquidating stocks of ecological resources and accumulating waste, primarily carbon dioxide in the atmosphere.
For Estonia, overshoot day arrived already on March 8, 2023. For Latvia on March 12 and Lithuania on March 26.
The Baltic Sea affects us all
The Baltic Sea coast region is highly vulnerable to climate change. Flooding and storms with heavy rains and strong winds are recurring with more frequency and severity. Sea level rise will lead to
considerable changes in coastal ecosystems and likely cause flooding of coastal areas, erosion of sandy beaches and the destruction of harbours and other coastal constructions.
Co-current extreme weather events
In Latvia, in August 2023 a storm drove through with huge hailstones and strong winds causing destruction. For farmers that was another catastrophe on top of a poor harvest year. Electricity distribution networks said, that as a result of the thunderstorm, the number of simultaenously disconnected customers exceeded 421 thousand at one point.
Lithuania was gripped by a lack of rain and toxic dust contaminated with carbon particles and microplastics, whipped through the streets of Vilnius, while the ground turned to ash in parts of the country. Lower crop yields exacerbated inflation, which was raising the risk of more social problems, as people grapple with the increased cost of living.
In Estonia the predictions on surrounding the combination of rising sea levels, extended ice-free periods, and more frequent storms will increase the annual number of days that coinciding circumstances may result in floods.
Building up resilience
Lithuania, obtains its drinking water entirely from underground sources, with less than half of those available currently being exploited. This will help ensure availability even as the climate dramatically warms. However, as irrigation becomes an issue for farmers, who until now have been able to rely on the weather, the drain on underground sources will increase considerably.
Tallinn has built a “pollinator highway” in the city. The Pollinator Highway is a species-rich meadowlike natural environment, a green corridor and a movement corridor for green mobility that passes through 6 districts. The Pollinator Highway runs along a former railway dam and today's highvoltage power line corridor.
The Rail Baltica being built to connect Tallin, Riga, Vilnius and Warsaw aims to use 100% renewable energy, projecting a reduction in CO2 emissions exceeding 150,000 tCO2e per year of operation in 2030 and over 400,000 tCO2e per year of operation by 2050.
Climate change is ongoing. And mitigation is ongoing. We all are in this together.
Sustainability report 2023