Worldwide environmental strategies
Dufry operates over 2,400 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 please refer see here. All the stores operated can be categorized into one of five types, which are explained here.
Considering that the vast majority of our shops is located in premises and buildings owned by third party landlords such as airports or seaports, ships, train stations, and downtown resorts, one of our key environmental strategies is to support and align with our landlords in the implementation of their initiatives to protect the environment.
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, pallets used to transport products as well as office supplies and carrier bags given to customers with every sale.
Dufry is committed to implementing the precautionary principle in activities that may pose an average negative environmental impact and to promote initiatives that respect the environmental balance, and has the ambition that the environment is a collective concern involving both managers and employees. In this regard, especially in the area of development of shops, Dufry seeks innovative solutions that use less energy thus contributing to the fight against climate change and safeguarding biodiversity. We also work to continuously optimize the supply chain to reduce transport of goods and thus contribute to reducing our CO2 footprint.
Streamlining distribution and transportation
During 2019, and as key element of our Business Operating Model, Dufry completed the process to further improve its organization of the supply chain with the implementation of One Order. One Order is an internal procedure which aims to simplify our supply chain by further centralizing logistics and warehousing. This process is permitting Dufry to benefit from reduced operating costs and administrative tasks and to reduce the environmental impact of the supply chain and distribution processes. Dufry now operates four major warehouses located in Barcelona (Spain), serving Europe, Africa, the Middle East and Russia; Runnymede (United Kingdom) for the UK market; Hong Kong, serving Asia and Australia, and a forth one in Miami for our operations in the US, Canada as well as in Central and South America. These main logistics centers receive main shipments and further distribute products to different operations. 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 the concerns of Dufry. Whenever possible, the freight is carried by sea, and we aim to consistently select the most efficient means of transport in terms of CO2 emissions.
Through the reconfiguration of products in our Distribution Centers’ global and regional logistics platforms, we reduce inter-company transports to the minimum. Distribution to individual stores is generally carried out by road, and Dufry outsources transport logistics to national and international specialized partners, some of which have implemented their own environmental strategies.
Among other actions to reduce CO2 emissions in the area of business, we advise our employees to consider alternatives to travel, such as the use of virtual meeting systems (videoconferences, teleconferences, computer live meetings, Skype for business etc.) or reducing travel frequencies by optimizing each trip. In addition, Dufry encourages employees to use public transportation not only for business, but also for their daily trips to and from work. In specific locations, the company provides contributions to employees who use public transport for commuting.
According to the association Airport Carbon Accreditation, the airport industry accounts for approximately 5 % of total carbon emissions from the sector of air transport. The organization, launched in 2009, currently has 288 airports accredited to the program, distributed in 70 countries worldwide, representing 42.5 % of the global air passenger traffic.
Airport Carbon Accreditation has 4 levels of accreditation (Mapping, Reduction, Optimization & Neutrality), depending on the efforts carried out by airports. In order to achieve the Optimization accreditation, airports need to actively engage with airport stakeholders, as they need to develop a more extensive carbon footprint to include specific scope 3 emissions and the formulation of a Stakeholder Engagement Plan to promote wider airport-based emissions’ reductions. In many cases this involves Dufry as we are the operator of airport stores.
In 2019, according to background information from Airport Carbon Accreditation, 54 of these airports, including some prominent airport hubs, have achieved the optimization level and 61 airports, representing 10.2 % of the global air passenger traffic, achieved the highest accreditation (carbon neutrality), which requires offset of CO2 emissions. Considering both of the groups – Optimization and Carbon Neutrality – Dufry operates stores in 38 of the 115 airports, including Zurich, London Heathrow, London Gatwick, Abidjan, Dallas Fort Worth, Stockholm and Queen Alia Airport in Amman, Jordan.
Supporting ACI Europe’s Climate Task Force
To align its internal ESG strategy and initiatives, with the efforts undertaken by the airport industry, Dufry has joined the ACI Europe Climate Task Force created in 2019 and actively participates in the development of related strategies, goals and initiatives.
Waste and Recycling. Circular economy
Avoiding any waste in the first place or recycling it, if it occurs, is an effective way to save valuable resources. In our warehouses, packaging materials, which mainly consist 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. In other operations, such as Spain, we are taking measures to reduce single-use plastics and we have started to replace the roll containers used to move products from warehouses to the stores – which have a metal base and two metal sides needing plastic shrink wrapping for the safe movement of goods – with new models that include closures on four sides and top, hence drastically reducing the consumption of the plastic film needed for the covering. Although there is not a common process across the locations, in our largest operations, the recycling process is normally outsourced to specialized service providers.
With regard to cartons and pallets used to transport and protect products, Dufry guarantees that these are reused as much as possible and consequently consumption of new resources is also reduced.
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 at all. Dufry increased its bag assortment to several sizes so that packaging relevant to the size of the products purchased is used, thus reducing overall plastic consumption. As a result, we have observed a decrease in the number of bags used per transaction in our main operations in recent years. Investigating alternatives to reduce the number of bags and the impact of each individual bag is however an ongoing improvement objective for Dufry. In this regard, Dufry is in compliance with different regulations to reduce the consumption of plastic bags, especially in our European Union operations which prohibit the free of charge distribution of plastic bags to consumers in retail outlets.
Lastly, in our 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 Dufry Connect, which is being rolled-out to staff across all locations, is also helping to reduce the amount of paper used in the day-to-day work of our staff.
For the most part our travel retail shops are operated in premises and buildings owned by third party landlords such as airports or seaports, ships, train stations, and downtown resorts. 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 the latest energy- efficient technologies also applies for our Basel headquarters, division offices and the regional operation centers.
- Create a sustainable and profitable company.
- Foster customer satisfaction and shopping experience to trigger their recognition.
- Support local economies by buying local goods and services, paying local taxes and employing local staff.
- Minimize our environmental impact by operating an integrated and efficient logistics chain to transport products.
- Reduce our waste and energy consumption.
- Support our landlords in their initiatives to protect the environment.
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