Resource Use and Circular Economy

TKM Group reduces the environmental impact of its operations by applying circular economy principles.

The focus is on improving the recyclability of products and packaging, reducing the use of virgin raw materials, and preventing waste generation already at the design stage. Kaubamaja´s business model supports the principles of slow fashion by emphasising quality and product durability, while the retail segment is gradually moving toward mono material and more easily recyclable packaging solutions.

The Group is a major placer of packaging on the market, particularly in the supermarket segment, where single use plastic plays an important role in ensuring food safety. Therefore, the Group continuously balances food safety, customer convenience, and environmental responsibility.

Private label packaging breakdown in 2025:
• Total packaging: 389 tonnes
• Recyclable packaging: 256 tonnes (66%)
• Packaging made from recycled materials (e.g. rPET): 111 tonnes (28%)
• Composite material packaging: 22 tonnes (6%)

Packaging and waste related initiatives

• 100% of paper and plastic packaging waste generated in Selver stores is directed to recycling.
• Selver and Kulinaaria use the Bepco crate system to reduce transport packaging.
• Shopping bags at I.L.U., Selver, and Kaubamaja are made from 90–100% recycled materials.

• Selver Kitchen salad containers are produced from 100% recycled plastic.
• Customers at Selver and Kaubamaja can purchase ready made food using their own reusable containers.
• In addition to the digital Partner Card, customers can purchase a digital Partner Gift Card, helping reduce hard to process PVC waste.
• Selver courier deliveries can be made using returnable deposit bags.
• At I.L.U. stores, customers can return empty packaging of products purchased there.

Customers and Consumers

TKM Group creates value for customers through high quality and safe products, responsible marketing practices, and a product assortment that supports health and well being. The Group develops services that make everyday life more convenient, including e commerce, courier services, and flexible payment solutions. For example, the Partner Card app can be used as a shopping scanner, to view personalised offers, manage purchase receipts, and track accumulated bonuses.

Key risks relate to product safety and personal data protection, as any breaches could affect customer well being and the Group’s reputation. To mitigate these risks, the Group applies strict quality controls, regular testing, robust data protection measures, and clear processes for handling customer enquiries.

The Group’s objective is to ensure that private label products meet high safety and quality standards so that customers receive only compliant and safe products.

Trust, transparency, and data protection are at the core of customer relationships.

Key indicators for 2025:
• 69 product recall cases, of which 65 were identified before products reached the market and 4 involved products sold to customers
• 0 recalls of private label products
• 0 human rights violations involving consumers or end users
• 916 tonnes of food donated

Supporting Culture and Communities

TKM Group consistently contributes to charity, culture, and community development. In 2025, the Group and its subsidiaries allocated 1.5% of profit, amounting to €374,249, to charitable and sponsorship projects.

Cultural and community-related activities:
• Selver is a supporter of the Farmer of the Year competition.
• For 23 years, Selver has organised the charitable initiative Koos On Kergem (“Together It’s Easier”), raising funds for children’s and maternity wards in hospitals.
• In cooperation with Uuskasutuskeskus, permanent collection points for used clothing and footwear have been established in Kaubamaja stores to support reuse.
• Kaubamaja has long cooperated with MTÜ Minu Unistuste Päev, bringing joy to children in greatest need.
• Through the Back to School campaign, Kaubamaja collects school supplies and financial support for large families in Estonia.
• Kaubamaja supports youth fashion events, is the main sponsor of the Kuldnõel (Golden Needle) fashion award and Tallinn Fashion Week, and features a dedicated area for Estonian fashion designers in its Tallinn department store.
• Kaubamaja, Selver, and Partner Card support around 100 cultural projects annually via their marketing channels, mainly theatre performances, concerts, and summer events outside major cities.
• KIA Auto and Viking Motors support Estonian athletes.