EBRD supports Fozzy Group one of the largest grocery retailers in Ukraine

EBRD supports Fozzy Group
one of the largest grocery retailers in Ukraine

A $ 60 million loan provides for retail development and
opening of a green supermarket

EBRD has supported the expansion of Fozzy Group and provides a $ 60 million loan for retail development and opening of a green supermarket. As part of the project, AVGroup supporting company with the implementation of occupational road safety management and environmental management systems according to ISO 39001 and ISO 14001 standards. How is the project going now?

According to this project with EBRD Fozzy Group is developed and implementing integrative management system. The main aim of this initiative is to reduce road traffic collisions, improve passenger experience and increase efficiency of road traffic safety management, generate, and establish waste minimization program, improve energy and resources efficiency.

Fozzy Group is one of the largest trade industrial groups in Ukraine and one of the leading Ukrainian retailers, with over 700 outlets all around the country. Besides retail, the Group has business interests in food production, bank business, IT, logistics, and restaurants. By investing in its business processes improvement, the group has achieved leading positions in the retail market.

SUCCESS FACTORS OF INTEGRATIVE MANAGEMENT SYSTEM

Defining gaps in the company

In August 2020 Fozzy Group started implementing the core elements of a road safety management system that aligns with ISO 39001.

“The project consisted of three stages: initial audit and production processes assessment, action plan development of road safety management system and its further integration,” says Alina Sokolenko, CEO of AV Group consulting company.

The results of the audit:

  • Lack of RTS procedures and policies in the company.
  • Absence of separate structural subdivisions on RTS in Silpo-Food LLC and Fora LLC (which are part of Fozzy Group).
  • Lack of necessary staff on RTS issues and, accordingly, advanced courses and training.
  • Technical inspections of vehicles and medical support for drivers are carried out formally. And the investigation of accidents conducted by the RTS department is selective.

The EMS audit findings are:

  • There’re no environmental policies and procedures.
  • Lack of defined and quantitative environmental goals and programs of their realization.
  • Hazardous waste and materials management system absence.
  • Lack of GHG emissions control and management system (there’s no information about Scope 1, 2 and 3 during the recent 3 years).

It’s been developed Project road maps (consist of 99 actions) for the Road safety and Environmental management systems for “Silpo-Food” LLC and “Fora” LLC according to the audits results and experts’ recommendations.

Implementing positive changes


ROAD SAFETY MANAGEMENT SYSTEM

From December 2020 to March 2021:

  • 22 representatives of the company successfully passed two trainings: “Building a traffic safety management system in the company based on international experience”, “Implementation of reactive RTS management measures in the company”.
  • Improved organizational structure regarding RTS that currently includes 11
  • Developed a number of documents: RTS policies, annual work plans, regulations on the RTS department, accident registration procedure, regulations on the official investigation of road accidents. Additionally, created a register of normative legal acts.
  • Since January 2021, regularly conducted official road accident investigations. Based on the collected materials, specialists develop specific eliminating measures.

Besides, there were no deaths or injuries due to road traffic accidents during the first two months of the Road map implementation. And only one accident occurred due to the fault of the company’s driver.

ENVIRONMENTAL MANAGEMENT SYSTEM

Within recent 4 months Fozzy Group team:

–         Established sustainability, environmental and road safety policies.

–         Defined and approved quantitative goals in the integrated management system frames.

–         75 participants joined and passed the training “ISO 14001: Environmental management system”.

–         25% of the EMS Road map has been executed.

–         Defined and approved integrative management system organization structure.

Next steps

These are only intermediate results of the implementation of the road safety system in Fozzy Group. The next steps will be implemented according to Road Map are following:

  • prevention of mistakes and unreasonable expenditure of finances and time;
  • providing management with sufficient arguments for decision-making,
  • maximum risk reduction, especially at the decision-making stage, in particular:
  • obtaining knowledge by employees of legislation, rules, norms, and standards relating to road safety, as well as testing their knowledge;
  • improvement of instructions system on road safety issues for drivers;
  • ensuring the constant functioning of the office (class) for road safety and medical support for drivers;
  • providing internships for drivers and control over vehicles` operation, their compliance with the work and rest regimes, and requirements of traffic rules;
  • improvement of technical condition check system for transport in operation;
  • assessment of RTS level at the company for a certain period;
  • analysis and forecasting of RTS level at the company;
  • implementation of the risk management concept;
  • analysis of violations and road accidents for identifying factors that contribute to their occurrence and preventing the occurrence of these factors in the future;
  • generalization and analysis of the causes of accidents, providing recommendations and suggestions for their elimination and prevention;
  • providing information to structural subdivisions of the company regarding RTS issues;
  • inspection of activity in structural subdivisions of the company on providing RTS measures, including medical support of drivers, an inspection of technical condition of motor transport;
  • conducting official investigations of all road accidents involving company`s transport;
  • measurement of RTS efficiency indicators.

According to EMS Road Map:

  • Provide gap analysis according to the national legislative compliance.
  • Develop and implement internal standards and procedures.
  • Minimize waste, energy, and resources consumption.
  • Provide GHG emissions (Scope 1) monitoring.
  • Improve hazardous management system.
  • Develop and implemented sustainable procurement management system.
  • Establish automatic monitoring data system.
  • Enhance employees’ competency in EMS issues.
  • Provide internal audits of integrative management system (IMS).

Effective analysis approach of IMS performance and improvement.

What the company representatives say

«I learned a lot about training opportunities for staff, how and where to go, what to do. Marked many previous goals for myself, – said Eduard Lapin, Head of transport department “Silpo-food”.

 

«During this initiative, we gained invaluable experience and discovered working areas where we will move forward. We will work to reduce accidents, tragic cases with human casualties and raise the level of culture of our drivers. I’m confident that it will give us a lot of improvements and results», – added Oleg Isidorov, Head of control service and road safety at “Silpo-food”.

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