Leading The Field: Gebr. Heinemann And Sustainability. Saskia Möller Interviewed.
12 minutes read
Introduction by: Peter Marshall
It would not be unfair to say that Gebr. Heinemann is a clear pioneer and industry leader when it comes to sustainability in Travel Retail. I recently spoke with Saskia Möller,Gebr. Heinemann’s Director Legal, Compliance and Sustainability on everything the company is currently doing and its future actions – all relevant and ambitious.
It is an all-embracing interview and acts as an excellent benchmark for the industry. No corporate puff, no greenwashing, just straight speaking from a company that is genuinely walking the talk.
Peter Marshall (PM): So, Saskia, welcome to TRunblocked.com. To start our conversation, it’s well worth reminding our audience of Heinemann’s core sustainability objectives as a business.
Saskia Möller (SM): Sure, Peter. We have defined four key pillars of sustainability that go beyond the traditional and well-known ESG framework – environment, social and governance. We’ve added a fourth dimension: the responsible value chain, which reflects our position in the middle of the value chain. This pillar encompasses cross-functional cooperations with customers and suppliers and includes our sustainable product assortment.
In terms of the environmental pillar, we’ve committed to the 1.5 target of the Paris Agreement. Specifically, we aim to reduce our Scope 1 and Scope 2 emissions to net zero by 2030 and Scope 3 by minus 50% by 2030. It’s an ambitious target and even harder to achieve as it sounds. Scope 1 and Scope 2 are relatively manageable through measures like photovoltaic systems or district heating. But Scope 3 is more complex, as it includes emissions from products and logistics, which represent a significant share of our footprint.
We also focus on sustainable shop designs. For example we have sustainability-certified shops in Norway or other locations already and every new shop we build follows high sustainability standards, such as BREEAM or LEED. Even if we don’t certify every shop, we apply the same principles using smart lighting, reusable furniture and sustainable construction methods. We also try to align with airport partners when new contracts are signed.
PM: Are the airports learning from what you’re doing?
SM: I believe they are. As usual, innovation often starts in the Nordics and spreads across Europe, and beyond. Currently, especially in Turkey we see a lot of progress, for instance the lighting has changed to LED or social initiatives have been initiated.
Airports are increasingly integrating sustainability into their tender processes. This trend is growing globally. At the same time, we rely on airports to provide us with data – such as energy consumption or waste figures – which is often challenging to obtain. This is especially true in open shop environments.To meet CSRD (Corporate Sustainability Reporting Directive) requirements, we need solutions like smart meters to accurately measure and report environmental data.
So yes, it’s a mutual learning journey between us and the airports.
PM: Well, I think sustainability is certainly embedded in Nordic culture, isn’t it? It’s good to hear that Turkey is doing a number of things as well.
SM: Absolutely. For example, we have learnt a lot from our global diversity, equity and inclusion program from our colleagues in Istanbul. For instance, female employees returning from maternity leave sometimes face challenges regarding working hours. To support them, we’ve tested remote-controlled robots with screens, allowing them to advise customers from home when needed. This also benefits disabled employees who may not be able to access physical shop spaces. It’s a pilot initiative, but it shows how we’re exchanging ideas and solutions across regions.
Of course, sustainability culture varies across regions, and yet there is still work to be done. But many airports are adapting quickly.
PM: How does Heinemann ensure that suppliers and business partners consistently meet your high environmental and social standards across your global network?
SM: We approach this through partnership. First, we have a Supplier Code of Conduct, which is, of course, a common industry practice to define key requirements – ones we expect from our partners, just as we hold ourselves to the same standards. In addition, we assess our suppliers using the EcoVadis, Sedex or B-Corp rating system. Around 70% of our suppliers have already completed this process, which is a prerequisite for being part of our sustainable product portfolio.
Beyond that, we engage in ongoing dialogue. It’s all about working together to raise standards. Initially, we were the first in our industry to introduce external ratings. Even before that, we had developed a supplier questionnaire internally in 2021 to start a first inquiry to better understand what was happening on the supplier side with regard to sustainability. The launch of the questionnaire required explanation, of course – we held numerous meetings to clarify our goals and approach. In some cases, these conversations even led to our first sustainability partnerships.
For example, we work with Tony Chocolonely, and we aim to establish partnerships across all product categories. Even in eyewear, we’re now working with Luxottica and are in conversations with other key players in travel retail as well.
As mentioned earlier, we’re also working intensively on the reduction of transport-related emissions with suppliers.
PM: Yes, transport is so much a part of your business – you’ve got a huge global distribution business.
SM: Exactly. That’s why we have developed a sustainable logistics plan. We’ve already transitioned 60 upstream suppliers and aim to shift them to sustainable transport modes over the next five years.
This process is already underway. We’re actively engaging all logistics partners along the value chain to find joint solutions. Just recently we hosted a “Sustainable Supply Chain Forum” in Hamburg. The event focused on our inbound logistics – the delivery of goods to our logistics centers – where we do not control the transport directly. The goal was to bring all stakeholders together, learn from each other, and develop concrete measures to reduce emissions.
Of course, switching to sustainable transport involves initial investments, and sometimes route adjustments, for example, shifting from road to rail or sea freight. But the long-term benefits are clear and measurable.
PM: I think it’s the price of doing business with you now.
SM: Yes, and we apply the same approach to downstream emissions. We’re working on using local hubs and alternative fuels wherever possible.
PM: Okay, so what happens in a scenario where suppliers consistently fall short of your expectations and your sustainability criteria?
PM: Let’s just say it’s a big player, a big supplier. What do you do?
SM: In such cases, we escalate the issue and initiate a dialogue. Depending, on the supplier, of course, I’ll speak with the respective Purchasing Director and we’ll engage in joint discussions. There’s usually a reason behind the shortfall and in most cases, we can resolve it together. Last year, we had two such instances , and both were successfully addressed through collaboration.
Of course, as an ultimate course of action, we can decide not to list a supplier anymore. But our preference is always to work together and improve.
PM: So what else are you looking for when it comes to your suppliers ? What are the deliverables that you would like in an ideal scenario?
SM: First and foremost, we want them to align with our sustainability strategy, especially regarding human rights standards. I’ve mentioned the external rating earlier. That’s the first piece. For products, there are certain criteria depending on the product category and a minimum threshold they must meet to qualify for the sustainable product portfolio.
We began this process in 2021 with our Future Friendly portfolio, which initially applied general sustainability attributes across categories. Now we’ve refined it to be category-specific for beauty, for spirits, fashion and so on. We now have 12 criteria in total.
For example, fashion items typically involve less packaging at the POS, whereas beauty and spirits products often have more. So, we ask suppliers to provide data on packaging, ingredients, and whether products are vegan, among other things
Once we have the data – and that can be a cumbersome process – we score and rate the products. Those that meet the standards become part of our Responsible Choice assortment, which we launched this year.
Beyond that it would be amazing to have one global standard for the product carbon footprint data. But that is material for another interview.
PM: Is there anything else in terms of your agenda that you want to see brought into your sustainability criteria when it comes to beauty, for example?
SM: In beauty, we’re currently waiting for the Eco Beauty Score. You may have heard of this initiative. Once a product has a good Eco Beauty score, we can use it as a positive criteria in our Responsible Choice assortment. It’s a clear indicator that the product meets high sustainability standards.
We’d love to see similar initiatives in other categories but that’s still evolving. Let’s see what the future brings.
PM: So are there specific measurable KPIs that Heinemann employs to track progress of your sustainability goals?
SM: Absolutely. As you know the Corporate Sustainability Reporting Directive (CSRD) requires us to report on these metrics. Thanks to recent EU reforms the process is somewhat easier.
We currently track over 200 KPIs, covering emissions, social indicators like diversity, equity and inclusion and governance. These KPIs are also used internally to monitor progress. We’ve aligned our tracking with the reporting requirements to avoid duplication efforts – our teams are already busy collecting data, so we didn’t want to add another layer.
We also rely on supplier data, some of which is included in our annual report. So, we use what’s already available to ensure consistency and efficiency.
PM: So you mentioned Oslo and Istanbul earlier. Can you give us some other clear examples, substantial examples of your sustainable actions where they’re physically taking place at the moment?
SM: Yes, Copenhagen is another great example. We’ve developed a joint Green Business Plan together with the airport, which is particularly exciting because they are very ambitious. Starting this year, they’ll produce their own energy using wind power, which is impressive.
Copenhagen was also one of the first locations where we launched our sustainable product portfolio – a perfect match given the airport’s strong sustainability focus. We’re equally ambitious and proud to collaborate with them.
Another example is Keflavik Airport in Iceland, where we just started operations. I was involved in the tender presentations, and they asked very pointed questions – not just about sustainability goals, but about our specific KPIs, how we track progress, where we currently stand and where we expect to be in two to five years? Their interest was very serious and encouraging.
PM: I filmed there last year. One of the things that they focused on strongly was local products and local sustainable products. Now, having also been to Oslo quite recently, here you talk about the range of sustainable products you have. But it’s really only a very small space that actually gets allocated to maybe 30 products or so on a podium – a sustainable podium. Aren’t you going to give the products that meet your criteria more space when it comes to how your retail evolves in the coming years?
SM: Absolutely. We’re planning to expand the space dedicated to sustainable products. Our new concept will be rolled out in 30% of our outlets initially, and we aim to reach 70% within two years, and 100% by the end of 2030.
We are moving away from mixed displays now, customers will find Responsible Choice products directly on the shelf, along with information tags, QR codes, and links to our website for those who want to learn more. We’re committed to increasing visibility for our top sustainable products.
PM: So we’ve covered Copenhagen. Istanbul and Oslo. What about Sydney?
SM: Yes, there’s progress too, especially around energy consumption. As you can imagine, they’ve traditionally relied heavily on coal, but we are working on changing that in the coming years. Sydney was also one of the first locations to adopt sustainable local products.
PM: So, have there been clear examples of where you’ve made major business decisions where social risks or environmental issues have actually outweighed financial gain. Or, to put it another way, is sustainability integrated into every single business decision that this company takes?
SM: I wouldn’t say it’s fully integrated into every single decision yet, but it’s definitely considered and getting more embedded. I can’t recall a case where we decided against something because of sustainability concerns. In fact I’d say it’s the opposite – sustainability has encouraged us to move forward. Some tenders, for example, are only accessible if we meet certain sustainability criteria.
We’ve learned a lot over the years. Heinemann originally approached sustainability from a corporate social responsibility angle but we’ve since shifted toward a rather KPI-driven model that’s measurable and competitive.
PM: I firmly believe that you are taking a major lead within the travel retail community. Others can see what you’re doing and learn.
SM: I hope so! It’s great to see others following the same path, and if we can inspire them, I’m happy.
PM: Well, this links well with the next question. You currently operate in over 100 countries, and we all recognize that retailers and brands alike operate at different speeds. There are different cultures by country, different climates, different regulations. How do you adapt to deal with these challenges across continents where you operate?
SM: We always aim to act locally, even though we have a global strategy. I mentioned earlier our Sustainable Minds ambassador network, which is a key part of this. Our ambassadors are our eyes and ears in each region. They share ideas and best practices – whether it’s about diversity, packaging, refill systems, or other sustainability topics.
We also have a global sustainability committee, which includes managing directors and CEOs from our largest locations, as well as members from our executive board and from our supply chain, people & culture, and sales teams.
Further, we have established sub-steering committees focused on the environment, the responsible value chain and the social dimension. These include colleagues from Australia, Singapore, Oslo, Istanbul to only name a few – wherever someone is able to contribute.
PM: So, it is real collaboration. It advances the knowledge base across the entire business.
SM: Definitely. I’m often amazed by the ideas that come up from our teams. It’s a two-way exchange – we bring global strategy into the committees, and the other way round, too.
PM: Okay, let’s move on. B2B is one thing. Communicating sustainability to your customers is really quite another. What do you do here? And, perhaps a slightly more contentious issue, do you actually think that it makes a difference when it comes to purchasing? Do you think consumers actually care?
SM: It depends – on the consumer, the region, and even the generation. I’d say Gen Z and Millennials are more conscious of sustainability, but we’re also seeing growing interest across other customer groups.
Of course, price still plays a major role, but we also believe in educating our customers. That’s why sustainable impact is one of our six core value propositions. We’ve introduced a Promise Month in most of our outlets and also ran sales challenges focused on sustainable products – so it’s not just our employees who learn, but our customers as well.PM: So you use the loyalty scheme, Heinemann and Me, to advance the cause as well?
SM: Yes, we do. It’s another channel through which we promote sustainability.
PM: Well, Heinemann’s sustainability strategy is arguably both ambitious and relevant. I guess it also has to be agile. Sustainability isn’t a fixed item, the goalposts are moving all the time. Where do you see the greatest challenges currently?
SM: One challenge is the growing skepticism in certain regions especially due to political developments – for example, what we’re seeing in the U.S. Sustainability is being questioned more than before and we need to convince more people and ensure it remains high on the agenda.
From an environmental perspective, meeting the 50% reduction target for Scope 3 emissions is extremely challenging. It’s not easy to achieve but we’re committed.
We don’t need to change strategy fundamentally, but as you said, our approach must remain agile – and it will. Getting everyone on board is one of the major challenges we face. If we can unify efforts globally and clearly communicate the benefits of sustainable action, I believe we’ll succeed. Sustainability is a long-term commitment – it won’t be “done” in 2030. It’s something we need to pursue for future generations, something we’ve neglected for generations before. It’s more than a mega trend, and we will continue to keep it on the agenda.
PM: And what of the future? What further innovations and initiatives will Heinemann be taking? What can the industry actually learn from you?
SM: One key area is cooperation. As I mentioned, we work closely with suppliers but also with distribution downstream. There’s more to come. We’re currently working on a circular economy plan for Heinemann. Though as you can imagine, implementing that looks very different in Germany than it does in India.
PM: So, Saskia, if there are three things that you want to say to the trade right now, what would they be?
SM: First, start now. Don’t wait for the perfect solution or 100% readiness. Just begin and at the same time, think long-term. As I said, it’s not reaching a goal by 2030 and stopping there. We need to use new technologies, look at the best practices from other industries and adapt smart solutions. We don’t need to reinvent the wheel, but we need to act.
Second: Collaborate. We’ve had great experiences with cooperations across all areas of our business, and sustainability is part of that.
PM: And third?
SM: Be credible.
PM: It’s got to be authentic – sustainability and no greenwashing.
SM: Exactly. There are plenty of examples of greenwashing, and you can debate them endlessly. But the key is to do something real, even if it’s not perfect. If you can prove you have taken action, you can build on that and improve over time.
PM: Got it. Very valid and valuable answers, Saskia. Thank you so much for your time.
SM: My pleasure, Peter.
