A
-
Average OIC
Average OIC (Operating invested capital) is a finance metric that includes the average of the following headings in a given period: Goodwill, Net fixed assets, Working capital and Financial investments.
B
-
B4SI
B4SI stands for Business for Societal Impact. It is a framework to help companies measure and manage their social impact. The B4SI framework enables companies to understand the difference their contribution makes to both their business and society by focusing on three key pillars: inputs, outputs and impacts.
-
Backhauling
After delivering products to the stores, the return route of the company's trucks includes stopping by the facilities of suppliers to pick up goods and take them to the distribution centre.
-
Biodiversity
The variety of life on Earth, including plants, animals, fungi, bacteria and other organisms. This diversity sustains the planet's natural processes and is essential for a healthy, sustainable future.
C
-
CapEx - Capital expenditure
The funds a company invests in acquiring, upgrading and maintaining physical assets such as property, plants, buildings, technology and equipment. These investments are often made to fuel growth, increase efficiency or launch new initiatives.
-
Carbon dioxide (CO₂)
A greenhouse gas linked to global warming although it is only a minor fraction of Earth's atmospheric composition (approximately 0.03%). It is produced in the combustion of carbon-containing substances, fermentation processes and in the respiration of animals. It is a substrate used by plants for photosynthesis, a fundamental biological process.
-
Carbon dioxide equivalent (CO₂e)
A metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential, by converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential.
-
Carbon emissions
The discharge of greenhouse gases or the precursors thereof into the atmosphere within a designated area and timeframe. Carbon dioxide emissions originate mainly from the burning of fossil fuels. This encompasses carbon dioxide released during the utilization of solid, liquid and gaseous fuels, as well as the practice of gas flaring.
-
Carbon footprint
The total greenhouse gas emissions resulting from an individual's or organisation's activities.
-
Carbon neutrality
When an entity offsets its carbon dioxide emissions by removing an equal amount of carbon dioxide from the atmosphere.
-
Carbon sequestration
The process of capturing and storing atmospheric carbon dioxide and is is a crucial method for reducing the amount of CO₂ in the atmosphere, which helps mitigate climate change. There are two main types of carbon sequestration: (i) biological sequestration, involving the absorption of CO₂ by plants, soils, and oceans (e.g., trees and plants absorb CO₂ during photosynthesis and store it as carbon in their biomass and soil); (ii) geological sequestration, which involves capturing CO₂ from industrial processes and injecting it into underground geological formations, such as depleted oil and gas fields or deep saline aquifers, where it can be stored.
-
Certified products
Items that have been assessed and approved by a recognised certification body to meet specific standards. These standards can cover various aspects such as quality, safety, environmental impact and ethical practices. Certification assures consumers that the product meets certain criteria and has been produced according to specific guidelines. Some of the most common are Organic Certification, Fair Trade Certification, Non-GMO Certification, Food Alliance Certification, UTZ, Dolphin Safe, FSC, RSPO and WelfairTM.
-
Circular economy
An economic model designed to minimise waste and maximise the ongoing use of resources. Unlike the traditional linear economy, which operates on a "take, make, dispose" approach, the circular economy focuses on sustainability and resource efficiency.
-
Click and collect
A service that enables customers to order products online and collect them in-store. It combines the convenience of online shopping with the immediacy of in-store pickup.
-
Climate action
The efforts and initiatives to address and mitigate the impacts of climate change. These activities include reducing greenhouse gas emissions, promoting renewable energy, protecting and restoring ecosystems, and adapting to climate impacts. Adaptation strategies involve adjusting to the effects of climate change, such as rising sea levels, extreme weather events, and changing agricultural conditions.
-
Climate adaptation
The development of strategies to adjust to the effects of climate change, such as rising sea levels, extreme weather events and changing agricultural conditions. The goal is to reduce vulnerability and enhance resilience to the impacts of climate change.
-
Climate change
An increase in global temperatures caused by man-made emissions of gases such as carbon dioxide and methane, known as greenhouse gases.
-
Climate mitigation
Efforts to reduce or prevent the emission of greenhouse gases, aimed at limiting the extent of climate change. Key strategies include promoting renewable energy, enhancing energy efficiency and implementing carbon sequestration techniques.
-
Composting
An eco-friendly method to recycle organic waste and enhance soil health. It involves breaking down organic materials like food scraps and garden waste into nutrient-rich compost through the natural decomposition process carried out by microorganisms, such as bacteria and fungi, under controlled conditions.
D
-
Decarbonisation
The process of reducing or eliminating carbon dioxide (CO₂) and other greenhouse gas (GHG) emissions from human activities. The primary goal is to achieve net zero emissions by 2050, which means balancing the amount of GHGs emitted with the amount removed from the atmosphere.
-
Deforestation
The extensive clearing of forests. This can happen for several reasons, such as creating farmland for crops and livestock, logging for timber, and developing infrastructure like roads and urban areas.
-
Direct support
Donations of food, money or time directly to local charities and non-profit organisations that support causes such as education, health and social services. In the case of Jerónimo Martins, direct donations must focus on charities that help the most vulnerable in society, the elderly and disadvantaged children and young people.
-
Double materiality
A concept used in sustainability reporting that considers both the financial and impact materiality of sustainability topics on a company's activities. Undertaking a double materiality assessment is mandatory for all large companies and all listed companies (except listed micro-enterprises) reporting under the Corporate Sustainability Reporting Directive (CSRD).
E
-
E-commerce
E-commerce, or electronic commerce, is the buying and selling of goods and services online. The internet has revolutionized trade, enabling individuals and companies to transact physical products, digital downloads and services online.
-
Ecosystem conservation
The safeguarding and maintenance of natural environments to preserve their health, biodiversity and functionality. This ensures that ecosystems can continue to offer vital services like clean air and water, climate regulation and habitats for wildlife.
-
Ecosystem regeneration
The process by which natural environments recover and restore themselves after being disturbed or degraded. This can happen through natural processes or with human intervention.
-
Ecosystem services
The benefits humans receive from natural ecosystems. These can be divided into four main types: provisioning services (e.g., food, fresh water, timber, fiber and medicinal resources), regulating services (such as climate regulation and flood control), cultural services (including recreation and aesthetic experiences) and supporting services (essential processes like soil formation, photosynthesis and biodiversity maintenance that enable the production of other services).
-
Electronic shelf labels
An electronic shelf label (ESL) is a technology system used by retailers to display product prices, typically on the front edge of retail shelves, that can automatically be updated or changed by a central computer server.
-
Enteric emissions
The methane produced during the digestion of ruminant animals such as cows and sheep. This methane production happens through a process called enteric fermentation, where microorganisms in the animals' stomachs break down food, resulting in methane as a byproduct.
-
ESRS
ESRS stands for European Sustainability Reporting Standards. These standards are part of the European Union's efforts to enhance and standardise sustainability reporting across companies. The ESRS provide detailed guidelines for reporting on environmental, social, and governance (ESG) topics, ensuring transparency and accountability in corporate sustainability practices
F
-
Farm-to-Table
A movement that promotes selling locally produced fresh products at food stores and supermarkets. It emphasizes fresh, seasonal and sustainably sourced ingredients.
-
Food basket
A food basket usually refers to the collection of food items commonly consumed by a particular population or region.
-
Food security
The state of having reliable access to a sufficient quantity of affordable, nutritious food. It is a key aspect of public health and well-being.
-
Food service
A specialised delivery operation, with dedicated platforms, mainly serving HoReCa customers.
-
Fossil fuels
Natural resources formed from the remains of prehistoric plants and animals that have been buried and subjected to heat and pressure over millions of years. The main types of fossil fuels are coal, oil and natural gas. Fossil fuels are a major source of energy worldwide, but their combustion releases significant amounts of carbon dioxide and other greenhouse gases, contributing to climate change.
-
Fronthauling
After delivering products to the client’s distribution centers, the suppliers' vehicles return to their facilities by stopping at the client’s stores to deliver goods.
G
-
Gearing
Gearing is the amount of debt a company uses to finance its operations versus equity. The ratio is obtained by dividing Net Debt by Shareholders Funds (Non-controlling interests, Share capital and Retained earnings) from the Balance Sheet.
-
Gender pay gap
Salary difference between women and men, based on comparable realities. It is expressed considering women’s average salary as a percentage of men’s average salary, where 100% is the pay ratio that represents full pay equity.
-
Global Warming Potential (GWP)
A measure used to compare the impact of different greenhouse gases on global warming over a specific period, usually 100 years. GWP indicates how much heat a greenhouse gas traps in the atmosphere compared to carbon dioxide (CO₂), which has a GWP of 1. For example, methane (CH₄) has a GWP of about 27-30 over 100 years, meaning it is 27-30 times more effective at trapping heat than carbon dioxide.
-
Global warming
The long-term rise in Earth's average surface temperature, mainly caused by human activities that emit greenhouse gases. These gases trap heat in the atmosphere, resulting in a "greenhouse effect" that increases temperatures.
-
Greenhouse gases (GHG)
A group of gases contributing to global warming and climate change. The Kyoto Protocol, an environmental agreement adopted by many of the parties to the UN Convention on Climate Change in 1997 to curb global warming, covers seven greenhouse gases: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆) and nitrogen trifluoride (NF₃).
-
GRI
The Global Reporting Initiative (GRI) is an independent, international organisation that provides a framework for sustainability reporting. The GRI Standards cover a wide range of economic, environmental and social topics, enabling organisations to report comprehensively on their sustainability performance and impacts.
H
-
HoReCa
HoReCa is an acronym for Hotel, Restaurant and Café/Catering. It refers to sectors of the hospitality industry that serve food, beverages and provide accommodation.
I
-
ILO
The International Labour Organization (ILO) is an agency of the United Nations, founded in 1919, whose main mission is to promote social and economic justice by helping to establish balanced and inclusive labour policies and standards.
-
In & Out
In-and-out products in retail are temporary items, not regularly stocked, that are available for purchase for a specific period.
-
Indirect support
In the case of Jerónimo Martins, indirect support means participating in campaigns to collect food and other items to support the work of charities that fight hunger and malnutrition among the most vulnerable populations. Most of these campaigns take place in the Group's stores, where the charities can appeal to customers for support.
L
-
Like-for-like (LFL)
Sales made by stores and E-commerce platforms that operated under the same conditions and compared in one period with those of the previous period. Excludes stores opened or closed in one of the two periods. Sales of stores that underwent profound remodelling are excluded during the remodelling period (store closure).
-
Loyalty programme
A rewards programme offered by retailers to encourage customers to return to their stores. Typically, customers can earn points or discounts for their purchases.
M
-
Markdown
Markdowns are used to clear out inventory and attract customers while offering better deals, by a reducing the original selling price of a product. In food retail, markdown is often used when a product is reaching its expiration date.
-
Meal Solutions
In Jerónimo Martins's case, meal solutions are a strategic pillar of differentiation and include the delivery of ready-to-eat meals and a wide range of packaged meals sold over the counter in stores.
-
Micro-fulfilment centres
A micro-fulfillment centre (MFC) is a small-scale warehouse or storage facility located close to consumers. These centres are designed to fulfill online orders quickly and efficiently, often within a few hours.
-
Microplastics
Small plastic particles less than 5 millimeters in size. They come from the breakdown of larger plastic items like bottles and bags, and from products containing microbeads, such as certain cosmetics and cleaning products. These tiny plastic pieces are a major environmental concern because they can be ingested by marine life and enter the food chain, potentially affecting ecosystems and human health.
N
-
Natural refrigeration gases
Substances used in refrigeration systems that naturally occur in the environment. They are seen as more environmentally friendly alternatives to synthetic refrigerants due to their lower global warming potential (GWP). Common natural refrigerants include ammonia (NH₃), carbon dioxide (CO₂), hydrocarbons (e.g., propane, isobutane), water (H₂O) and air.
-
Nature restoration
Also known as ecological restoration, involves helping degraded, damaged, or destroyed ecosystems recover. This process includes activities like reforestation and the restoration of wetlands, grasslands and rivers. The aim is to enhance biodiversity, improve ecosystem services and increase resilience to climate change.
-
Non-perishable goods
Products that have a long shelf life and do not require refrigeration, for example, canned foods, grains, beverages and dried goods.
O
-
Omnichannel
A strategy aimed at providing a seamless shopping experience across all channels, including in-store, mobile and online. This means that a customer can start a purchase on one channel, like a website or an app, and finish it on another, like a brick-and-mortar store, without any interruption or inconsistency.
-
OpEx - operating expenses
The costs incurred by a business in the course of its normal operations. These expenses, which are distinct from CapEx (capital expenditure) and financing costs, encompass a wide range of items, including rent, utilities, salaries, marketing, and research and development.
P
-
Paris Agreement
A legally binding international treaty on climate change, adopted by 196 parties at the UN Climate Change Conference (COP21) in Paris in December 2015. Its main goal is to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit the increase to 1.5°C. To achieve this, countries commit to reducing their greenhouse gas emissions and enhancing their climate resilience.
-
Perishable goods
Products with a limited shelf life and that require proper storage to prevent spoilage, for instance, fresh fruits, vegetables, ready-to-eat food, meat and fish sold at the counter and dairy products.
-
Pre-tax ROIC
Pre-Tax ROIC (Return on Invested Capital) is a financial metric that assesses a company's profitability and capital efficiency obtained by multiplying the EBITA (Earnings before interest, taxes and amortization) margin by the Capital turnover (which is the last 12 months Sales divided by the Average OIC).
-
Private brand
Products manufactured by one company for sale under another company's brand. Retailers often use private brands to offer exclusive products and to widen their assortment.
-
Product category
A group of related products that are typically shelved together or managed as a single unit. Dairy products, fresh produce, baked goods and frozen foods, for instance, are all distinct product categories.
Q
-
Q-commerce
Q-commerce, also known as quick commerce, is an e-commerce model that offers quick delivery times, typically within an hour or less. This model leverages technology-driven solutions, including advanced order management systems and efficient logistics networks, to fulfill customer orders promptly.
R
-
Recyclable
Items that can be collected, processed and transformed into new products instead of being discarded as waste. Common recyclables include paper and cardboard, glass, metals, plastics, electronics and textiles.
-
Recycling
The collection and processing of materials that would otherwise be discarded as trash and converting them into new products. This process conserves natural resources, reduces pollution, saves energy and decreases the amount of waste sent to landfills.
-
Refrigeration gases
Refrigeration gases, or refrigerants, are substances used in refrigeration and air conditioning systems to transfer heat and create cooling. These gases change phases from liquid to gas and back, absorbing and releasing heat in the process. Common types of refrigeration gases include chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), and natural refrigerants.
-
Renewable energy
Energy generated from sources that are naturally replenished and sustainable over time. Unlike fossil fuels, which can deplete and harm the environment, renewable energy sources are cleaner and more sustainable. Common types of renewable energy include solar, wind, hydropower, biomass and geothermal.
-
ROIC
Return on Invested Capital (ROIC) assesses a company's ability to generate profits from its capital investments. A higher ROIC means a better capital allocation and stronger financial performance.
-
Rollout
A product or a service rollout is the process of introducing a new product or service to the market, involving strategic planning, marketing and distribution. Rollout usually refers to the launch phase.
-
RSPO
The Roundtable on Sustainable Palm Oil (RSPO) is a global non-profit organisation established in 2004 to promote the growth and use of sustainable palm oil products. The RSPO brings together stakeholders from across the palm oil supply chain, including producers, processors, traders, consumer goods manufacturers, retailers, banks, investors and non-governmental organisations (NGOs). The RSPO aims to minimise the negative environmental and social impacts of palm oil production.
S
-
Science Based Targets (SBT)
Science-based targets offer companies a clear roadmap to reduce greenhouse gas (GHG) emissions in alignment with the latest climate science, showcasing their dedication to ambitious climate action. These targets are crafted to achieve the goals of the Paris Agreement.
-
Scope 1 emissions
Emissions from sources that an organisation owns or controls directly (such as GHG emissions from company vehicles and equipments).
-
Scope 2 emissions
Indirect emissions from energy purchased directly by the reporting company (e.g., energy purchased from utilities).
-
Scope 3 emissions
Indirect emissions generated by third-party companies throughout the reporting organisation's value chain (e.g., transport and purchased goods and services).
-
SDGs
The Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure peace and prosperity for all by 2030. There are 17 SDGs, each addressing a different global challenge.
-
Self-checkouts
A self-checkout is a computerised checkout system that allows customers to scan and pay their own items without the assistance of a cashier. This technology has become increasingly common in retail stores, like supermarkets, and it is intended to minimise queues and maximise speed particularly for clients with few items in their basket.
-
SKU (Stock Keeping Unit)
A unique identifier for each product in a retailer's inventory. It helps track stock levels and sales.
-
Sourcing
Sourcing refers to the process of identifying, selecting and procuring products from suppliers.
-
Supply chain
A network of organisations, people, activities, information and resources involved in moving a product or service from suppliers to customers. It covers everything from the production of raw materials to the delivery of the final product to the consumer. The main elements of the supply chain include manufacturers, suppliers, distribution centers, stores and customers.
-
Sustainable finance
Includes climate, green and social finance, but also adds broader considerations of the environmental, social and governance (ESG) practices embedded in the investment decisions of the organisations being funded.
T
-
Taxonomy
In the context of sustainable finances, the classification system identifying activities, assets, and/or project categories that deliver on key climate, green, social or sustainable objectives with reference to identified thresholds and/or targets.
-
Trading-down
Consumer trading-down refers to a shift in consumer behaviour where individuals opt for lower-priced products or services in response to economic pressures, such as inflation, unemployment or reduced income.
V
-
Value chain
The full range of activities that companies undertake to bring a product or service from conception to delivery and beyond. The ultimate goal is to create value that exceeds the cost of providing the product or service, thereby generating a profit. It includes everything from design and production to marketing, distribution and after-sales service.
W
-
Water security
The reliable availability of an adequate quantity and quality of water for health, livelihoods and production at an acceptable level of risk. It covers key aspects such as access to safe water, protection from water-related hazards, sustainable water management and conservation of ecosystems. Water security is critical to achieving broader goals of sustainability, development and human well-being.
-
Write-off
A write-off is a sudden and significant reduction in asset value. Unlike depreciation, a write off typically occurs due to unforeseen events like obsolescence, damage or impairment, where the asset's value falls significantly.
Z
-
Zero carbon (or net zero carbon)
A state where the amount of carbon dioxide (CO₂) emissions released into the atmosphere is balanced by an equivalent amount of carbon dioxide removal or offset. This can be achieved through a variety of methods, including emission reductions, carbon offsets and more sustainable practices.