Worldwide environmental strategies
Dufry operates over 2,300 retail stores across 65 countries, where it sells products sourced from over 1,000 suppliers. For information on our divisional structure, countries and major locations covered by each Division see here. All the stores operated can be categorized into one of five types, which are explained here.
As a pure retailer, the company does not have any production sites. However, Dufry consumes materials in several parts of its supply chain, from materials used to build stores and boxes and pallets used to transport products, to office supplies and carrier bags given to customers with every sale.
Three Global Distribution Centers.
As part of the strategic priorities set for the year with the roll-out of the Business Operating Model, Dufry has further improved its supply chain organization with the implementation of One Order. As described in more detail in the Suppliers and Strategy sections, One Order principally aims to simplify our supply chain by further centralizing logistics and warehousing, hence, reducing operational costs and administrative tasks and ultimately our impact on the environment. As a result of this process, our three Distribution Centers (Switzerland, Uruguay and Hong Kong) operate 3 major warehousing centers: Barcelona (Spain) serving 81 delivery points in Division 1 (Southern Europe & Africa) and Division 2 (UK & Central Europe) with the exception of UK – served by Runnymede – and some countries from Division 3 (Eastern Europe, Asia, Middle East & Australia); Hong Kong (China) serving most countries from Division 3 (Eastern Europe, Asia, Middle East & Australia); and Miami (US) serving Division 4 (Latin America) and partially Division 5 (North America). These three main logistics centers receive the long-haul and major shipments and organize the further dispatch of the goods to the retail entities. Through the high efficiency in our logistics chain, we ensure that the environmental impact of transporting the goods is kept to a minimum.
Reducing CO2 emissions is one of Dufry’s concerns. Whenever possible, the transport of goods is done by shipping on sea, thereby choosing the most CO2-efficient means of transportation. Through the reconfiguration of goods in our Global Distribution Centers and regional logistics platforms, we reduce intercompany transportation of the goods to a minimum. 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 retail shops in 22 of 44 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 249 accredited airports in its program, which are spread across 68 countries worldwide. In 2018, based on information by Airport Carbon Accreditation 71 of these airports have actively reduced the CO2 emissions under their direct control, and 44 airports have achieved carbon neutrality. Dufry has retail shops in 22 of these 44 carbon neutral airports, including Dallas Fort Worth, Athens, Antalya, London-Gatwick, Helsinki, Milan-Malpensa, Manchester and Stockholm airports just to name a few. Queen Alia in Amman, Jordan, and London Stansted airports, where Dufry is the main retail operator, joined the carbon neutral airports list in 2018.
Waste and Recycling
Avoiding any waste in the first place or recycling it, if it occurs, is an effective way to save valuable resources. In the European Distribution Center 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 into different containers and sent for recycling. The recycling process is outsourced to specialized service providers.
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 London Heathrow airport, to contribute and further improve recycling systems and /or reduce energy consumption.
We have observed a decrease in the number of bags in main operations last years.
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 our main operations in the last years. 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 ongoing 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 the printing of the legal text on the bottom of emails, and encouraging people only to print when necessary. The adoption of IT solutions, such as the Dufry Connect, which is being rolled-out to staff across all locations, is also helping to reduce the amount of paper used in day-to-day work of our staff. Local initiatives, including the Dufry Award for the Best Initiative in Division 1, where the Turkish team developed an induction app for new joiners also work on that objective of reducing paper consumption.
For the most part our travel retail shops are operated in premises and buildings such as airports or seaports, ships, train stations, 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. As public spaces, airports have to provide well-lit facilities and naturally this is a substantial part of their energy consumption. 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, resulting in a significant drop in the energy consumption (and associated CO2 emissions). The same concept of using latest energy-efficient technologies also applies for our Basel headquarters, division offices and the regional operations centers.
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