Annex III: Global Compact Progress Report 2004

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PROGRESS REPORT 2004
Global compact principles Plans for action Ind. Evidence
Human Rights 1
Companies must support and respect the protection of international human rights
THE EROSKI GROUP is committed to the protection of human rights and states the priority of the same in its Code of Ethics, endeavouring to defend the rights of its workers, consumers and suppliers and those of society. HR 1 The EROSKI GROUP's commitment to Social Responsibility is one of the five principles of its Code of Ethics, which is the framework for the development of its strategy. It is therefore a member of forums of recognised prestige on a national and world level which regulate companies' compliance with social responsibility, such as the Global Compact and the Spanish Ministry of Labour and Social Affairs' Forum of Experts, and it is committed on an international level to defending human rights and protecting the Environment in accordance with guidelines such as the Millennium Development Goals and Sustainable Development, as defined in the Brundtland Report.
HR 2 Policy for the selection of suppliers and sub-contracted companies subject to the signature of a Social Responsibility Commitment for the defence and promotion of human rights in the carrying out of its activities.
HR 3
HR 4
• Audit for SA 8000:2001 Standard certification at its central offices, applicable to all suppliers, with a gradual requirement programme being established prioritising nonconformities by importance.
• Establishment and monitoring of an Ethical Management System implemented by the EROSKI GROUP's management, for controlling the respect for the human rights of its workers, consumers and suppliers.
Human rights 2
Companies must not be complicit in human rights abuses
Protocol of conformity of suppliers and sub-contracted companies taken on from the central offices of the EROSKI GROUP, promoting and complying with the requirements of the SA:8000 Standard in their activities. HR 2 • A Social Responsibility Commitment is required from all suppliers and sub-contracted companies in order to enter into any collaboration agreement.
• Suppliers and sub-contractors are classified according to their commitment to their workers' human rights. The specific requirements and deadlines for taking measures for improving conditions inside and outside their work installations are then defined.
• An Occupational Risk Prevention Commitment is required from all the suppliers and sub-contracted companies so that their work centres comply with the minimum legal requirements, and they must also collaborate on improving respect for human rights over and above these safety standards.
Programme of audits on the highest risk suppliers to ensure compliance with SA:8000 Standard criteria and commitment to 15 years of conformity with these requirements. HR 2 • A Social Responsibility Commitment is required from all suppliers and sub-contracted companies in order to enter into any collaboration agreement.
• Suppliers and sub-contractors are classified according to their commitment to their workers' human rights. The specific requirements and deadlines for taking measures for improving conditions inside and outside their work installations are then defined.
• An Occupational Risk Prevention Commitment is required from all the suppliers and sub-contracted companies so that their work centres comply with the minimum legal requirements, and they must also collaborate on improving respect for human rights over and above these safety standards.
Design and plan for the launch of socially responsible products with a certified guarantee of compliance with the human rights of all the workers involved in all stages of the production process. HR 3 The suppliers must have an increasing quantitative and qualitative commitment to observance of the criteria of the SA 8000:2001 Standard as regards protection and defence of the human rights of their workers.
The EROSKI GROUP uses certification by means of an external audit to guarantee respect for the human rights of all the workers involved in all the stages of the production process for socially responsible products.
Labour regulations 3
To respect freedom of association and the effective recognition of the right to collective bargaining
The EROSKI GROUP respects freedom of association and aims to take its workers into account in the management authorities' decision-making process and for them to participate in the capital, management and profits, on the basis of a cooperative model that acknowledges people as partners and key figures. Therefore, on the path towards this achievement, it dedicates resources to training its staff to take on responsibilities, and to the Empowerment Programmes at its centres. HR 5 The EROSKI GROUP endeavours for its workers to actively participate on committees and forums created to encourage contribution and proposals for improving working conditions. The staff departments of each centre encourage and organise the holding of such meetings in addition to the meetings required by the business activity itself for the treatment and consideration of the working atmosphere and conditions.
LA 3 The EROSKI GROUP encourages its workers to actively participate in the cooperative area with an increase in worker members and through formulas of capital contribution to the private company GESPA in the non-cooperative sphere, created to respond as far as possible to the company structure.
4
The elimination of all types of forced or compulsory labour
The EROSKI GROUP has never tolerated any type of forced or compulsory labour within its organisation and carries out an internal audit in compliance of the SA:8000 Standard on the Group's suppliers with the highest risk of failing to comply with this point, to avoid any such practices throughout the production chain. HR 7 The EROSKI GROUP has a growing commitment to quantitative and qualitative compliance with the requirements of the SA 8000:2001 Standard regarding its suppliers' respect of human rights.

PROGRESS REPORT 2004
Global compact principles Plans for action Ind. Evidence
Labour regulations 5
The effective abolition of child labour
The EROSKI GROUP does not tolerate child labour within its organisation and carries out an internal audit in compliance with the SA:8000 Standard on the Group suppliers with the highest risk of failing to comply with this point, to prevent any such practices occurring throughout the production chain. HR 6 The EROSKI GROUP has a growing commitment to quantitative and qualitative compliance with the requirements of the SA 8000:2001 Standard regarding its suppliers' compliance with human rights.
6
The elimination of discrimination in respect of employment and occupation
The EROSKI GROUP does not tolerate any discriminatory practice and coexists with different socio-demographic realities which it integrates within its culture with a view to tolerance and enrichment of its values. The diversity of the organisation itself, due to its particular nature and the integration of these realities, forms the basis of a philosophy free from discriminatory practices and with equality of professional opportunities. HR 4 • Policies for customers and workers' accessibility to the installations, and recruitment of people with disabilities and groups with different needs.
• Policies for conciliating work and personal life.
LA 10 • Policies for customers and workers' accessibility to the installations, and recruitment of people with disabilities and groups with different needs.
• Equality of wage conditions at equal levels of responsibility.
• Equality of conditions for common-law and marital unions.
LA 11 Policies for conciliating work and personal life such as the provision of 20 and 28 hour weeks for persons in posts of responsibility so that they may reconcile different individual circumstances with executive or management tasks.
The Environment 7
To support a precautionary approach to environmental challenges
The EROSKI GROUP has developed an ambitious Environmental Management Plan (ECOPLAN) for 2004-2008, in which it specifically undertakes to:

1. Support a precautionary approach to environmental challenges.

2. Take initiatives for promoting greater environmental responsibility, and

3. Encourage the development and diffusion of environmentally friendly technologies.

3.13 The EROSKI GROUP has defined the impact of its activities with regard to climate change, protection of natural resources, waste reduction and management and preservation of biodiversity, and has developed a system of control and minimising of consequences on the basis of this.
EN 1 Programme for the rational use of raw materials and reduction of their consumption through initiatives such as the introduction of the consumer portion to reduce packaging, and methods for using fewer t-shirt bags and optimising their production from an environmental perspective, in addition to the provision of re-usable bags (made from 15% recycled material) for customers.
EN 2 Promotion of campaigns for recycling office material such as cardboard, paper, toners and batteries in all the EROSKI GROUP centres.
EN 3 Pilot tests have been carried out and later extended to the commercial network for systems optimising power consumption, such as separate lighting in different areas and time zones, and programmes for extending the lifetime of the lighting installations.
8
To undertake initiatives to promote greater environmental responsibility
EN 5 Implementation of water consumption saving measures such as shower-type hoses and fitting timers to washroom taps throughout the commercial network.
EN 8
EN 10
Development of a Green Transport Project put into practice by the EROSKI GROUP management, fitting a controller cabinet with indicators of the reduction of the emission of significant gases into the air.
EN 11 Diagnosis of waste management and prioritising of action with regard to paper and cardboard, wood, meat waste, soft or bulky plastics and electrical and electronic appliances throughout the commercial network, in order to reduce generation of the same and optimise the efficiency of their processing.
EN 14 • Inclusion of the environmental variable as a definitive factor in the development of EROSKI GROUP own brand products.
• Programme for e+5 environmental classification of suppliers and sub-contracted companies in collaboration with Fundación Entorno, to improve environmental behaviour throughout the supply chain and study improved production practices.
PROGRESS REPORT 2004
Global compact principles Plans for action Ind. Evidence
The Environment 8
To undertake initiatives to promote greater environmental responsibility
The EROSKI GROUP also carries out numerous training activities for its workers for awareness and use of better practices in carrying out their duties, and for society in general for encouraging healthy and environmentally friendly habits which will improve their quality of life and protect the environment for future generations. 1.1 • Education and information for EROSKI GROUP consumers on environmentally friendly habits, e.g. recycling mobile phones through the ASIMELEC (TRAGAMOVIL) project, recycling glass in collaboration with ECOVIDRIO, campaigns for environmentally friendly driving with the RACC and Energy saving programmes and "S.O.S. Save our Planet" with the WWF/ADENA, amongst others.
• Sponsorship of the VII National Environment Congress (CONAMA): the "Sustainable Development Summit" organised by the CONAMA Foundation in 2004.
• Educating the workers on the impact that the EROSKI GROUP's activity could have with regard to climate change, protection of resources, waste reduction and management and preservation of biodiversity.
9
To encourage the development and diffusion of environmentally friendly technologies
Initiatives for the use of renewable power sources and energy-efficient practices. EN 17 Incorporation of renewable power sources, consisting of photovoltaic panels to complement the needs of the commercial network.
Anticorruption 10
Companies must work against corruption in all its forms, including extortion and bribery
The EROSKI GROUP, right down from its Code of Ethics to its internal regulations, proposes and encourages ethical, transparent practices in the carrying out of duties at all hierarchical levels of the organisation. SO 2

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