UN Global Compact and SDGs

Communication on the ALDI SOUTH Group's progress report concerning the United Nations Global Compact

In August 2017, the ALDI SOUTH Group signed the United Nations Global Compact (UNGC) and thereby committed to integrating the ten universal sustainability principles from the areas of human rights, labour, environment, and anti-corruption within its corporate strategy and to implement these principles within the scope of its daily business operations. The below table shows how we implement the ten UNGC principles and indicates which passages of the report contain which information.

Human rights

1. Businesses should support and respect the protection of internationally proclaimed human rights; and

Measure	Evaluation of the results	Relevant passage within the 2017 report
CR Principles Code of Conduct ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises	Suppliers key figures	CR strategy Suppliers Key figures

2. make sure that they are not complicit in human rights abuses.

Measure	Evaluation of the results	Relevant passage within the 2017 report
CR Principles Code of Conduct ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises	Suppliers key figures	CR strategy Suppliers People Key figures

Labour

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Measure	Evaluation of the results	Relevant passage within the 2017 report
ALDI Management System ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises Social Monitoring Programme	Suppliers key figures	Suppliers Key figures

4. the elimination of all forms of forced and compulsory labour;

Measure	Evaluation of the results	Relevant passage within the 2017 report
ALDI Management System ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises Social Monitoring Programme	Suppliers key figures	Suppliers Key figures

5. the effective abolition of child labour; and

Measure	Evaluation of the results	Relevant passage within the 2017 report
ALDI Management System ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises Social Monitoring Programme	Suppliers key figures	Suppliers Key figures

6. the elimination of discrimination in respect of employment and occupation.

Measure	Evaluation of the results	Relevant passage within the 2017 report
ALDI Management System ALDI “Social Standards in Production” based on the ILO standards, the UN's Universal Declaration of Human Rights, the UN Conventions on the Rights of the Child, the UN Convention on the Elimination of All Forms of Discrimination against Women, and the OECD Guidelines for Multinational Enterprises Social Monitoring Programme	Suppliers key figures People key figures	CR strategy Suppliers People Key figures

Environment

7. Businesses should support a precautionary approach to environmental challenges;

Measure	Evaluation of the results	Relevant passage within the 2017 report
Calculation of the Company Carbon Footprint since 2012 International climate strategy since 2014; goal: to reduce GHG emissions per m² of sales floor Climate-neutral national business operations within the ALDI SOUTH Group: Germany, Austria, Switzerland, Slovenia International strategy on efficient waste management since 2015; a waste monitoring system is currently being established Certification of buildings in accordance with/based on green building standards Implementation of an energy management system in all stores Use of modern refrigeration technologies in all stores and regional distribution centres Use of logistics vehicles which comply with the most current emission standards Environmental compliance measures within the area of textiles (Detox) Measures within the area of resources (e.g. Soy Footprint)	Resources key figures Environment key figures Detox key figures	Resources Suppliers Environment Key figures

8. undertake initiatives to promote greater environmental responsibility and

Measure	Evaluation of the results	Relevant passage within the 2017 report
Calculation of the Company Carbon Footprint since 2012 International climate strategy since 2014; goal: to reduce GHG emissions per m² of sales floor Climate-neutral national business operations within the ALDI SOUTH Group: Germany, Austria, Switzerland, Slovenia International strategy on efficient waste management since 2015; a waste monitoring system is currently being established Certification of buildings in accordance with/based on green building standards Implementation of an energy management system in all stores Use of modern refrigeration technologies in all stores and regional distribution centres Use of logistics vehicles which comply with the most current emission standards Environmental compliance measures within the area of textiles (Detox) Measures within the area of resources (e.g. Soy Footprint)	Resources key figures Environment key figures Detox key figures	Resources Suppliers Environment Key figures

9. encourage the development and diffusion of environmentally friendly technologies.

Measure	Evaluation of the results	Relevant passage within the 2017 report
Calculation of the Company Carbon Footprint since 2012 International climate strategy since 2014; goal: to reduce GHG emissions per m² of sales floor Climate-neutral national business operations within the ALDI SOUTH Group: Germany, Austria, Switzerland, Slovenia International strategy on efficient waste management since 2015; a waste monitoring system is currently being established Certification of buildings in accordance with/based on green building standards Implementation of an energy management system in all stores Use of modern refrigeration technologies in all stores and regional distribution centres Use of logistics vehicles which comply with the most current emission standards Environmental compliance measures within the area of textiles (Detox) Measures within the area of resources (e.g. Soy Footprint)	Resources key figures Environment key figures Detox key figures	Resources Suppliers Environment Key figures

Anti-Corruption

10. Businesses should work against corruption in all its forms, including extortion and bribery.

Measure	Evaluation of the results	Relevant passage within the 2017 report
Code of Conduct Compliance management (incl. training measures) Risk management Alert lines and Counsels of Trust	Internal audits for verifying the implementation of anti-corruption measures Internal reporting on the use of complaints mechanisms	Compliance and risk management

ALDI SOUTH and the UN's Sustainable Development Goals

On 1 January 2016, the 17 goals for sustainable development (Sustainable Development Goals, SDGs) of the United Nations became effective with the publication of the United Nations Agenda 2030 for Sustainable Development. The aim of these goals is to improve sustainable development at economic, social, and ecological level by 2030. Companies are requested to be involved in the implementation of these global goals. The ALDI SOUTH Group is aware of its responsibility in this area and describes the measures taken in order to achieve these goals within the CR Report 2017.

The table below indicates those passages of the report which reference the SDGs.

Chapter

Customers

12 Responsible consumption and production

Customers

Supply chain

9 Industry, innovation and infrastructure

16 Peace, justice and strong institutions

Resources

Suppliers

People

Community

Environment

Environment