Communication on Progress Report

UN GLOBAL COMPACT 2021

ALDI SOUTH Group 07/2022

 2 Communication on Progress Report: UN Global Compact 2021

FOREWORD
Dear Reader,
The ALDI SOUTH Group is one of the world’s most successful retailers
because of the daily commitment shown by our employees and business
partners. Our joint efforts provide us with the potential to make real and
lasting change across markets and within our supply chains.
In 2021, we announced our new International Corporate Responsibility
(CR) Strategy, with its 2030 Vision of “Making sustainability affordable to
our customers”.
We know that by embedding sustainability across all aspects of our
business, our organisation will have a more positive impact in tackling
global challenges relating to the critical areas of respecting human rights,
improving resource efficiency, realising zero carbon emissions and being
an employer of choice.
Our international strategy continues to build on our previous
achievements and commitments. It also supports the ten UN Global
Compact (UNGC) Principles in the key areas of human rights, labour,
environment, and anti-corruption.
Our report shows that we are continuing to progress towards bringing
our Vision 2030 to life and that our everyday actions are helping deliver
positive change to social and environmental challenges.

I hope you find this report interesting and informative,

Ankle Ehlers
Managing Director Corporate Responsibility
International (CRI) on behalf of the national
organisations of the ALDI SOUTH Group

ALDI strives to support its customers in

making sustainable choices and brings
sustainable and responsibly sourced
products onto everybody’s plate.
3 Communication on Progress Report: UN Global Compact 2021

THE PRINCIPLES
HUMAN RIGHTS
Principle 1: Businesses should support and respect the protection of
internationally proclaimed human rights.
Principle 2: Businesses should make sure that they are not complicit in
human rights abuses.

LABOUR
Principle 3: Businesses should uphold the freedom of association and the
effective recognition of the right to collective bargaining.
Principle 4: Businesses should uphold the elimination of all forms of forced
and compulsory labour.
Principle 5: Businesses should uphold the effective abolition of child labour.
Principle 6: Businesses should uphold the elimination of discrimination in
respect of employment and occupation.

ENVIRONMENT
Principle 7: Businesses should support a precautionary approach to
environmental challenges.
Principle 8: Businesses should undertake initiatives to promote greater
environmental responsibility.
Principle 9: Businesses should encourage the development and diffusion
of environmentally friendly technologies.

ANTI-CORRUPTION
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.
4 Communication on Progress Report: UN Global Compact 2021

HUMAN RIGHTS
APPROACH
ALDI is committed to respecting human rights and improving
living and working conditions throughout its supply chains.
Together with a wide range of partners, ALDI can improve
the working and living conditions of workers and their
families.

HIGHLIGHTS
Human Rights •
March 2021: ALDI announces its International Corporate Responsibility » More
Strategy and Vision 2030 of “making sustainability affordable to its customers”.
• May 2021: With its Vision 2030 roadmap, ALDI has set itself ambitious long- » More
term goals in the areas of human rights, resource efficiency and zero carbon.
• July 2021: ALDI has set the ambitious 2025 goal of increasing the number of » More
sustainable products in its range by an additional 10%.
• September 2021: With the disclosure of Tier 1 food suppliers for bananas » More
& pineapples, coffee, and fish & seafood, ALDI takes a further step towards
transparency.
• November 2021: ALDI updates its “International Policy Statement for Human » More
Rights”.
• December 2021: The publication of ALDI’s first three Human Rights Impact » More
Assessments (HRIA) for avocados, Brazil nuts and coffee, represents an
important step to bringing ALDI’s Vision 2030 on human rights to life.
Equality • April 2021: ALDI GB/IE signs the UN Women’s Empowerment Principles. » More

• November 2021: ALDI publishes its first “International Policy on Gender » More
Equality for ALDI’s supply chains”.

Living Wages & • January 2021: As part of the German Retailer “Working Group on Living Wages » More
Living Incomes and Living Income”, ALDI is implementing a joint pilot project to promote a
decent standard of living for banana farm workers, starting in Ecuador.
• April 2021: ALDI launches a new, responsibly sourced chocolate bar – the » More
Choceur CHOCO CHANGER – that goes beyond certification. Our customers’
choice is empowering cocoa farmers in West Africa to earn a living income.
• May 2021: ALDI publishes its “International Position Statement on Living » More
Wages and Living Incomes”.
• July 2021: ALDI kicks off a four-year project in Honduras helping to reduce the » More
living income gap of coffee farmers.
• October 2021: ALDI participates in the Partnership for Sustainable Textiles » More
“Living Wage Lab” to achieve living wages for garment textile workers.
• December 2021: ALDI SÜD Germany commits to implement living wages for » More
at least 50% of bananas sold by 2025, and 100% in the long-term.
Supply chains • July 2021: ALDI commits to the Sustainable Coffee Challenge to have over » More
50% of its coffee products certified by 2025.
• October 2021: ALDI supports sustainable fish and seafood in the European » More
Union and signs a statement calling for robust fisheries control mechanisms.

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

5 Communication on Progress Report: UN Global Compact 2021

LABOUR
APPROACH
ALDI has always believed that its people drive its success.
Because of this, ALDI has established practices which best
enable its employees and leaders to fulfil their potential
and achieve great business outcomes by delivering the
best value for its customers. By understanding, respecting,
and valuing the uniqueness of its employees, ALDI wants to
provide a great place to work in an inclusive environment
©HOFER
and be an employer of choice in the retail sector.

HIGHLIGHTS
Employee • Based on the results of the previous global Employee Engagement Survey from 2019,
Engagement ALDI has implemented concrete global actions in different focus areas like leadership,
Survey communication, and development.
• In the 2022 Employee Engagement Survey, ALDI will be measuring its progress in
established focus areas and gathering additional insights on key topics like Diversity &
Inclusion.
• In the future, all ALDI countries will be collecting data on ethnicity (or cultural minority)
as a part of the 2022 Employee Engagement Survey.
• The global Employee Engagement Survey is complemented by national pulse surveys
to gain deeper understanding on ALDI’s employees’ experience.
Health & • ALDI provides and actively develops Health & Wellbeing programmes for its colleagues
Wellbeing in each ALDI SOUTH Group country. It is committed to create a positive working
environment and offer programmes that support employees’ mental, emotional, and
physical wellbeing.
• With a global remote-work-framework, new ways of working were established to
provide important flexibility and support for employees during the COVID-19 pandemic
and beyond.
Diversity & • ALDI believes that understanding, respecting, and valuing the uniqueness of its people
Inclusion and customers makes them stronger. That’s why we are committed to build an inclusive
culture that values diversity in all its forms. Our core value of responsibility ensures that
people, customers, and partners are treated fairly, in the pursuit of its core purpose. As
a global retailer, ALDI strives to represent and serve the needs of the communities they
operate in and to improve the world in which we live.
• A global commitment on ambitions and metrics was agreed to accelerate ALDI’s path
towards a more diverse workforce and a more inclusive culture. This development is
supported by dedicated global and local resources.
Learning & • In all ALDI SOUTH Group countries, an ALDI Academy has been implemented with tailored
Development training and development programmes to ensure colleagues receive the opportunity
to grow and develop within their roles.
• To support employees in times of continued transformation, ALDI has committed itself to
building change management capabilities across the business.

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

6 Communication on Progress Report: UN Global Compact 2021

LABOUR
APPROACH
Sustainable buying practices are essential for the long-
term success of ALDI’s business. ALDI’s aim is that all its
products are made or grown in a responsible way and that
sustainability criteria are considered in its global supply
chains – from raw materials to final production.

HIGHLIGHTS
Labour Rights • March 2021: ALDI and the “Partnership for Sustainable Textiles” develop » More
training together that highlights the impact of purchasing practices on
working conditions in the supply chain and practical ways to improve them.
• April 2021: The “Business & Human Rights Resource Centre (BHRRC)” ranks » More
ALDI in their 2021 survey as one of the top five global retailers due to its
approach to human rights in the canned tuna supply chain.
• April 2021: ALDI is ranked sixth out of 36 retailers in the annual Easter » More
Chocolate Scorecard. Retailers from around the world were assessed on their
contribution to driving positive change in the cocoa industry.
• August 2021: ALDI successfully completes the ALDI Factory Advancement » More
Project in Bangladesh and recognises significant improvement in workplace
cooperation between workers and managers.
• August 2021: Together with the “Issara Institute”, ALDI pilots a project on » More
grievance mechanisms in Thailand.
• October 2021: ALDI pilots amfori’s “Speak for Change” grievance mechanism » More
programme to support workers’ rights.
• November 2021: After having started to monitor the working conditions and » More
livelihoods of local cocoa farmers in Côte d’Ivoire in 2020, the first impact
report “Building Trust. Creating Impact” has been published.
Forced Labour • February 2021: ALDI publishes its “International Policy on Forced Labour” to » More
promote fair and safe workplaces.
• June 2021: ALDI Australia and ALDI GB/IE publish their annual Modern Slavery » More
Statements.
Child Labour • June 2021: ALDI signs a joint pledge by “The Centre for Child Rights and » More
Business” to emphasise the importance of the elimination of child labour.

Health & Safety • March 2021: ALDI signs an open letter from the “Ethical Trading Initiative » More
(ETI)” to urge the implementation of a global occupational health and safety
(OHS) roadmap.
• September 2021: ALDI signs the new “International Accord for Health and » More
Safety in the Garment and Textile Industry” to increase worker safety in
Bangladesh.

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

7 Communication on Progress Report: UN Global Compact 2021

ENVIRONMENT
APPROACH
ALDI’s business activities have a significant impact on climate
and the environment. ALDI’s aim is to minimise the ecological
footprint of all its activities by lowering greenhouse gas
emissions and ensuring that the products ALDI offers do not
have a detrimental impact on the environment.
ALDI is committed to using resources wisely and protecting
ecosystems by not only concentrating on sustainable
sourcing, good water stewardship and deforestation-free
supply chains, but also on reducing food and operational
waste across its whole business and tackling plastic and
packaging.

HIGHLIGHTS
Chemicals in • June 2021: ALDI is featured in the “Better Lives through Better Business” » More
Production campaign presented by The Consumer Goods Forum. The film shows the
success of ALDI’s work in reducing the negative impacts of chemical-based
production processes used in the textile and footwear industry since 2015.
Climate Protection • February 2021: Seven out of the eleven ALDI countries already operate » More
climate neutral. This is achieved through a reduction of greenhouse gas
(GHG) emissions, the use of renewable energy, and the funding of certified
carbon offsetting projects.
• June 2021: As of 2021, all ALDI countries are procuring green electricity » More
with ALDI Australia achieving its commitment to power its operations with
100% renewable electricity, and ALDI China also committing to 100% green
electricity.
• October 2021: The “Progress Report on Climate Protection 2020” shows that » More
ALDI is already exceeding its science-based reduction target for operational
emissions and is making good progress regarding its supplier engagement
goal to set Science-based Targets.
Plastics & • June 2021: To reduce the use of raw materials in plastic packaging and to » More
Packaging promote a circular economy, ALDI is committed to using an average of 30% of
recycled content in plastic packaging across the Group by 2025.
• September 2021: ALDI SÜD Germany starts a strategic partnership with » More
Interseroh+ and in October. ALDI’s sorting instructions on packaging “Tipps
für die Tonne” is one of the finalists for the German Sustainability Award
Design 2022.
• October 2021: HOFER Austria receives an international packaging award for » More
sustainable fruit baskets.
• November 2021: ALDI Ireland receives a national environmental award for its » More
work in reducing plastic and packaging waste.
• December 2021: ALDI Australia achieves a 10% reduction in plastics across its » More
fresh produce in just one year.
• December 2021: ALDI Italy receives a national packaging award for its » More
innovative fruit and vegetable packaging made of Social Plastic®.
• December 2021: ALDI US removed all Styrofoam packaging from produce » More
items, and sponsored the development of a national Sustainable Packaging
Playbook through The Food Industry Association (FMI).

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

8 Communication on Progress Report: UN Global Compact 2021

ENVIRONMENT
HIGHLIGHTS
Responsible • February 2021: ALDI completes a smallholder palm oil farmers project in Cote » More
Sourcing d’Ivoire, paving the way for more sustainable practices and forest restoration.
• May 2021: ALDI partners with the “Global Tuna Alliance” to support the » More
sustainable development of supply chains and ensure the highest standards
of environmental performance and social responsibility.
• June 2021: ALDI joins the North Atlantic Pelagic Advocacy Group (NAPA) to » More
advocate for effective international agreement and drive sustainability in
fisheries.
• June 2021: ALDI advocates for the protection of the Amazon and supports a » More
European legal framework against deforestation.
• July 2021: ALDI SÜD Germany publishes requirements for deforestation-free » More
soy in meat and egg supply chains.
• July 2021: ALDI achieves a great ranking in the “Textile Exchange’s Material » More
Change Index (MCI)” and is seen as a leader for cotton.
• September 2021: ALDI becomes a member of Donau Soja and promotes » More
sustainable and deforestation-free soy cultivation in Europe.
• November 2021: ALDI UK signs up to the UK Soy Manifesto. » More

Water • March 2021: ALDI publishes requirements for the responsible use of water in » More
Stewardship its top selling fresh fruit and vegetable supply chains.

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

9 Communication on Progress Report: UN Global Compact 2021

ANTI-CORRUPTION
APPROACH
The ALDI SOUTH Group and our employees are obliged to
comply with the respective laws of all the countries where
we operate. In addition to the requirements of national and
international law, we commit ourselves to our own ethical
values and standards defined in the “International ALDI
SOUTH Group Code of Conduct”. It defines our expectation
of integrity and legal compliance and sets the minimum
standard for the national Codes of Conduct, which provide
guidance for our employees worldwide.

HIGHLIGHTS
Compliance • Across the ALDI SOUTH Group, compliance organisational teams are tasked with
implementing the Compliance Framework prioritising anti-corruption and building a
strong culture of compliance.
• National Compliance Officers in all ALDI countries are the point of contact regarding
anti-corruption topics.
• ALDI has put group-wide anti-corruption measures in place and monitors these.
Compliance culture is fostered through continuous training and communication.
• AlertLines and Counsels of Trust are used as channels to anonymously report any
instances of potential non-compliance issues.
Social Auditing Social Monitoring Programme (SMP): » More
• Since 2018, all high-risk non-food supply chains, including garment and
household textiles, are integrated into the Social Monitoring Programme
(SMP).
• Since 2020, additionally all high-priority food supply chains of the ALDI SOUTH
Group (excluding China), including fish and seafood, oils and condiments
and processed produce are covered by the ALDI SMP.
ALDI Social Assessments (ASAs) and ALDI Producer Assessments (APAs): » More
• ALDI conducts 260 ALDI Social Assessments (ASAs) in non-food production
facilities.
• ALDI conducts 53 Producer Assessments (APAs) on banana and pineapple
farms and plantations to evaluate the compliance with ALDI’s CR Requirements
and “ALDI Social Standards in Production”.
Corporate Responsibility Supplier Evaluation (CRSE) » More
• In 2020, ALDI integrated shoe business partners into the Corporate
Responsibility Supplier Evaluation (CRSE).
• The evaluation of garment textile business partners is now in its sixth year.
• In addition to evaluating international banana suppliers since 2019, ALDI
expanded the food CRSE to include international pineapple suppliers in 2020
and conducted a pilot CRSE for the ALDI canned tuna supply chain in 2021,
with plans for further roll-out to other high-risk food supply chains.

SUPPORTING THE SUSTAINABLE DEVELOPMENT GOALS

10 Communication on Progress Report: UN Global Compact 2021

FURTHER INFORMATION
PROGRESS
By measuring our corporate responsibility performance
on a regular basis, we are continuously validating the
effectiveness of our actions and highlight the areas where
we are already making strong progress as well as other
areas where further action is still required.
» More
©HOFER

MEMBERSHIPS &
PARTNERSHIPS
We believe the best way to protect the people and the planet
is through joint initiatives and partnerships. For this reason,
we engage in multi-stakeholder initiatives.

» More

LIBRARY

CR Principles Code of Conduct ALDI Social Standards Human Rights Policy Policy on Child Labour
in Production Statement

Policy on Forced Policy on Gender Position on Human Position on Living

Labour Equality in Supply Rights Due Diligence Wages & Living
Chains Legislation Incomes

Policy on Sustainable Position on Animal Position on Supply ALDI’s International

Cotton Welfare Chains free from Recyclability
Deforestation and Guideline
Conversion
11 Communication on Progress Report: UN Global Compact 2021

WORK IN ACTION
FOCUS AREAS

Vision 2030 Human Rights Resource Efficiency Zero Carbon Supply Chain

SUPPLY CHAINS

Cocoa Coffee Cotton Fish and Seafood Nuts

Palm Oil Textiles Tropical Fruit

ENVIRONMENT

Chemicals in Forest Protection Packaging

Production
HOFER Kommanditgesellschaft
Global Sourcing & Corporate Responsibility International
Alte Bundesstraße 10
A-5071 Wals
VAT Reg. No.: ATU24963706
Commercial register: FN 26451z, Regional Court of Wels

On behalf of the national organisations of the ALDI SOUTH Group.

First Edition: 07/2022

The reporting period is 1 January to 31 December 2021.

Contact:
Corporate Responsibility International (CRI)
[email protected]

Please see cr.aldisouthgroup.com for more information on

our international corporate responsibility activities.