Hagar, a leading retailer in the Icelandic market

Hagar is a leading retailer in the Icelandic market and operates 38 stores within 2 grocery retail chains as well as 2 warehouses. Furthermore, Hagar operates through Olís 26 gas stations throughout the country, as well as 43 ÓB stations. Hagar's companies are all operated as individual businesses and therefore have diverse operating models and cultures. Hagar's core activities are in the grocery sector and the company owns two of the country's largest grocery retailers, Hagkaup and Bónus, as well as support service companies in the fields of purchasing and distribution. In addition, Hagar operates a specialty product division within Hagkaup and the ZARA clothing store in Smáralind.

Why Klappir?

Hagar and its subsidiaries have for many years been among the leading companies in the country when it comes to environmental issues. In Hagar's retail chains, further progress was made in reducing food waste, increasing waste sorting, reducing plastic use and reducing energy consumption in general. Greenhouse gas emissions decreased during the year, but all emissions caused both directly and indirectly by the company's operations are carbon offsets in collaboration with Kolvið and Landgræðslan.

In 2018 Hagar decided to start focusing on the environmental factors within their operation but like many other companies, were lacking overview of all emission factors within their operation. Like other companies in the sector Hagar wanted to know how they could reduce their environmental impact to be able to improve on it.

New goals were subsequently set for the company's operations, but they are related to its most important stakeholders, ie. customers that Hagar promises will always bring more for less, employees to create a desirable workplace and shareholders that will get a fair return on investment. Finally, goals were set for Hagar's operations to contribute to a better society in a broad sense, from the environmental footprint or collaboration with suppliers and manufacturers.

Needing to improve on something that is vague is challenging, that is where Klappir Sustainability Platform enters the equation, bringing automatic collection of data from service suppliers, from waste, fuel, heating, water and more. The first year is always regarded as a baseline year, and then the improvements can start in earnest. Subsequently, Hagar has now published their Sustainability statements for the year 2019 and 2020.

Results

Hagar has a clear ambition to continue to be a strong driving force towards a better society. In the last two years, Hagar has taken decisive steps to further define Hagar's social priorities, in particular in relation to responsible consumption, sustainability, the promotion of innovation and equality, as Hagar are anchored in the United Nations' global goals.

The total carbon footprint of the Hagar Group for the year 2020 is 4,402.2 tonnes of CO2, compared to 4,535.8 tonnes of CO2 in 2019, which is equivalent to a decrease of 2.9% between years.

The carbon offsets are now balancing the group's operations for the second time, a total of 4,402.2 tonnes of CO2, i.a. with the planting of 20,222 trees. Countervailing measures with forestry are carried out in collaboration with Kolviður and all of the Group's business units, with the exception of Olís, have agreed with Kolviður on soil binding and enrichment of vegetation ecosystems through forestry. Olís' mitigation measures are carried out in collaboration with Landgræðslan, and this cooperation first began in 1992. These mitigation measures aim to stop soil erosion and restore disturbed ecosystems, such as natural forests, drained wetlands, etc.

Testimonial

"Hagar has been using the measurements from Klappir’s Sustainability Platform since 2018 with great results. The platform enables us to gather the information we need to publish the NASDAQ ESG guidelines in a secure and simple way, but furthermore the platform is the basis for us to set measurable goals when it comes to reducing waste in the operation, e.g. waste in energy, water, heating or fuel. Our collaboration with Klappir has been successful and the service is exemplary."
Guðrún Eva Gunnarsdóttir, CFO of Hagar hf.

Sustainability statement

Sustainability statement 2020(IS)

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