Three Global Distribution.

As a pure retailer, the company does not have any production sites. However, Dufry consumes materials in several parts of its supply chain, from the materials used to build stores and the boxes and pallets used to transport products, to office supplies and the carrying bags given to its customers with every sale.

Transportation

Our main logistics operations (Global Distribution Centers) are centralized in 3 major platforms: Oftringen (Switzerland), mainly serving Division 1 (Southern Europe and Africa), Division 2 (UK and Central Europe) as well as Eastern Europe and The Middle East; Hong Kong (China) serving Division 3 (Asia and Australia); Montevideo (Uruguay) attending Division 4 (Latin America) and Division 5 (North America). These main distribution centers receive the long-haul and major shipments and organize the further dispatch of the goods to the local entities at country and shop level. Through the high efficiency in our logistics chain, we ensure that the environmental impact of transporting the goods is kept low. Moreover, the World Duty Free operations in Spain and the UK started their integration in the Dufry supply chain.

CO2 emission

Reducing CO2 emissions is one of Dufry’s concerns. Whenever possible, transports of goods are done by shipping containers on sea-ships, thereby choosing the most CO2-efficient way of transportation. Through reconfiguration of goods in our Global Distribution Centers and regional logistics stations, we reduce intercompany transportation of the goods to a minimum. The distribution to the individual shop locations is usually done by road whereby Dufry outsources the transportation to specialized national or international logistics partners, who partly have their own environmental strategies in place. 

Dufry has operations in 15 of the world’s 37 carbon neutral airports worldwide.

Further actions to reduce the CO2 emissions are in the area of business travel: We advise our employees to consider alternatives to traveling such as the use of virtual meeting systems (video conferencing, conference calls, computer live-meetings, Skype-for-business) or reducing travel frequencies by optimizing each trip. In addition, Dufry employees are also encouraged to use public transport systems not only for business trips but also for their daily journeys to and from work. In specific locations the company grants contributions to employees using public transport for commuting.

According to Airport Carbon Accreditation (airportcarbonaccreditation.org), the airport industry accounts for about 5 % of the air transport sector’s total carbon emissions. The organization, launched in 2009, currently has 211 accredited airports in its program, which are spread across 61 countries worldwide. In 2017, based on information by Airport Carbon Accreditation 67 of these airports have actively reduced the CO2 emissions under their direct control, and 37 airports have achieved carbon neutrality. Dufry has retail shops in 20 of these 37 carbon neutral airports, including Dallas Fort Worth, Athens, Antalya, London-Gatwick, Helsinki, Milan-Malpensa, Manchester and Stockholm airports just to name a few. 

Waste and Recycling

Avoiding any waste in the first place or recycling it, if it occurs, is an effective way to save valuable resources. The European Distribution Center is outsourced and run by a specialized logistics company and packaging material which mainly consists of cardboard, paper, plastic film, wood as well as electronic and plastic consumables such as neon lamps and PET are sorted out in different containers and sent for recycling. The recycling process is outsourced to specialized service providers. If these providers have a climate program in place, Dufry’s Swiss logistics provider supports their program by paying a surcharge on the transports, which is devolved to “myclimate” (www.myclimate.org).

In the shops, the waste produced by our operations is mostly packing material handled through the landlord’s waste disposal system and recycled accordingly where possible. Dufry actively collaborates with the airport’s sustainability teams where possible, as is the case at Heathrow airport in the UK, to contribute to further improve recycling systems and reduce energy consumption.

We have observed a decrease in the number of bags used in the last years in main operations.

The reduction in the consumption of shopping bags is another area where Dufry is seeking sustainable solutions by replacing traditional plastic bags with reusable bags and/or advising its retail staff to ask customers if they need a bag and by increasing its bag assortment to several sizes so that packaging relevant to the size of the products purchased is used with less plastic waste. As a result, we have observed a decrease in the number of bags used per transaction in the last years in our main operations. Investigating alternatives to reduce the number of bags and the impact of each individual bag is however an ongoing improvement objective for Dufry.

Regarding cartons and pallets used to transport and protect products, Dufry ensures these are reused as much as possible and therefore consumption of new resources is also reduced. 

Lastly, in the offices, the reduction of paper consumption is one of our biggest challenges. Dufry has put in place local initiatives to reduce paper and other office material consumption, including tips to reduce the amount of paper used such as printing double sided, avoiding printing of the legal text on the bottom of emails, and encouraging people only to print when necessary.

Energy consumption

For the most part our travel retail shops are operated in premises and buildings such as airports or seaports, ships and downtown resorts, which are owned by third party landlords. Thus, a large portion of the utilities consumption, such as energy or water sourcing and usage in the shops cannot be directly changed or influenced by Dufry as these factors are predetermined by the landlords and the building construction. The highest influence in energy efficiency can be taken when Dufry is designing or re-designing stores. The main focus thereby is on substituting traditional lighting for more energy-efficient lighting systems (e.g. LED) on ceiling and furniture displays, and on using A-rated electronic devices (e.g. air conditioning, refrigerators) in our stores. The same concept of using latest energy-efficient technologies also applies for our Basel headquarter, division offices and the regional operations centers.

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