Migros Annual Report 2018

About this report

As a large group of companies and service providers, Migros is in constant contact with people and its environment in various ways.

In addition to Migros' economic performance and its asset, financial and earnings position, this report also highlights its roots in the natural and man-made environment and its interactions with society and various stakeholders. Migros has a clear concept of value creation and manages the company accordingly.

Financial reporting

These Migros Group financial statements have been prepared in accordance with the provisions of the law and the Swiss GAAP FER financial reporting standards. With the aim of ensuring maximum transparency for the reader, the Migros Group has decided in many areas to impose stricter reporting and disclosure requirements than those stipulated by Swiss GAAP FER. Swiss GAAP FER provides a framework for financial reporting that is as transparent as possible, clearly comprehensible and geared towards the needs of the reader.

The main accounting principles can be found in the PDF Migros Group Financial Report. The financial reports of the Migros Group are available in English, German and French. The German version is authoritative.

Governance

The information about governance describes the overall organisational and contextual structuring of the management and supervision of Migros, a cooperative structure. The Federation of Migros Cooperatives is committed to responsible, purposeful and integrated governance. It therefore voluntarily adheres to the provisions of economiesuisse's Swiss Code of Best Practice for Corporate Governance, to the Corporate Governance Directive of the SIX Swiss Exchange (DCG) and, where appropriate, to the federal ordinance against excessive pay (VegüV). Any deviations from these provisions are referred to in the report.

Sustainability reporting

Sustainability reporting is an integral part of the Annual Report. Migros describes its main sustainability efforts in the reporting year in accordance with the guidelines of the Global Reporting Initiative. This Annual Report also serves as a progress report (Communication on Progress) within the meaning of the United Nations Global Compact (UNGC). The GRI Content Index provides information on the fulfilment of the ten principles of the UNGC.

Global Reporting Initiative (GRI)

The Migros Group bases its sustainability reporting on the guidelines of the Global Reporting Initiative (GRI). Since the 2018 reporting year, it has applied the GRI standards with the option "comprehensive" and the additional guidelines for the food processing industry.

Global Reporting Initiative (GRI)

The Migros Group bases its sustainability reporting on the guidelines of the Global Reporting Initiative (GRI). Since the 2018 reporting year, it has applied the GRI standards with the option "comprehensive" and the additional guidelines for the food processing industry. The reporting option "comprehensive" ensures that all implementation indicators are reported on for all relevant issues, along with the company's internal structures and processes. The GRI Content Index can be found here.

Determination of the relevant issues

To determine the relevant sustainability issues, Migros relies on regular dialogue with its main stakeholder groups.

Determination of the relevant issues

To determine the relevant sustainability issues, Migros relies on regular dialogue with its main stakeholder groups: customers, employees, Cooperative members, business partners, politicians, non-governmental organisations (NGOs), media professionals and scientific institutions. Detailed information can be found in the section In Dialogue with Migros and on the Generation M website.

In the reporting year, the ISS oekom rating and WWF's retailer and wholesaler rating provided valuable ideas for improvements, such as in relation to introducing environmental requirements in the supply chain. Migros used the rating results to identify future issues, make progress on ongoing projects and initiate new ones.

On the basis of the GRI standards and the supplementary guidelines for the food processing industry, the results of Migros' dialogue with the stakeholder groups was prioritised according to their relevance. The United Nations Sustainable Development Goals and the principles of the Sustainability Accounting Standards Board (SASB) for the food industry (Food Retailers & Distributors) were also taken into account when selecting the key issues.

Migros reports comprehensively on all aspects that are considered relevant from both an internal and external perspective (overlap). Other topics – such as biodiversity – are included selectively and covered in varying degrees of detail in the reporting.

Independent review

The statements and key figures in the Annual Report are reviewed by an independent auditor.

Independent review

The statements and key figures in the Annual Report are reviewed by an independent auditor. In particular, the processes and the published figures are assessed in terms of their accuracy, verifiability and traceability.

The key indicators for CO2 emissions and energy efficiency are assessed annually by the independent Energy Agency for the Economy (EnAW). For these indicators, target agreements have been concluded with the Federal Office for the Environment (FOEN), the Federal Office of Energy (SFOE) and the cantons.

In the Environment and Products sections, the previous year's figures are adjusted each year as a result of improved underlying data. Therefore, the values in this report may deviate from those in previous years' reports.

The editorial deadline for the key indicators was 19 March 2019. As some environmental key indicators had not been finalised at that point, some selective updates may be made after the Annual Report is published online on 26 March 2019. Updated key indicators will be highlighted accordingly.

Reporting limits

The details relate generally to the entire Migros Group, except where otherwise stated. The sustainability reporting focuses on the strategic business units (SBUs), Cooperative Retailing (core business) and Industry & Wholesaling.

The strategic business units Commerce, Financial Services and Travel are partially covered in the sustainability reporting. Selected figures for individual Migros Group companies, such as those relating to the basic requirements for suppliers and product range, or to selected milestones for individual 2020 objectives, are taken into account. The published figures on energy consumption and greenhouse gas emissions for the Migros Group are based in part on estimates for the SBUs Commerce, Financial Services and Travel. Due to the basic requirements for corporate environmental protection, the underlying data is becoming more complete and precise.

The sustainability reporting covers the following issues and business units:

Further articles

Sustainability Management

Sustainability is part of the Migros culture and an integral component of Migros' corporate activity. The economic, social and ecological objectives are implemented along the entire value-added chain.

Board of Control

Based on the proposal of the Board of Directors, the Assembly of Delegates elects an independent auditing company as the external Board of Control. The Board of Control is appointed for a term of office of two years, and may be reappointed.

Balance sheet

The Financial Services sector has had a considerable impact on the balance sheet of Migros Group. Compared to the previous year, the balance sheet total rose by CHF 2.0 billion to CHF 66.6 billion, much of which can be attributed to the increase in mortgage and other customer receivables, customer deposits and liabilities as well as issued debt instruments.