Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable fashion
• Environmental protection
• Human rights
• Employee well-being
• Community engagement

Environmental Achievements

• All LPP brands marketed Eco Aware collections (8.2% of total collections)
• Reduced use of single-use plastic film in online orders and retail samples
• Collected used clothes in 50 stores and donated them to charity
• Implemented RFID tags in all Reserved stores in Poland
• Increased use of maritime transport for imports (85.09%)
• Over 25% of energy used by stores came from renewable sources

Social Achievements

• Launched Mohito Cares campaign, planting trees for each item sold with the campaign logo
• Improved working conditions in Bangladeshi factories (92% of irregularities amended)
• Joined the UN Global Compact
• Joined the New Plastics Economy Global Commitment
• LPP Foundation committed over PLN 2.8m in monetary and in-kind assistance
• Implemented StartUp on-boarding program for new employees
• Organized summer camp for children of employees
• Ran workshops on healthy lifestyles, cancer prevention, and mindfulness

Governance Achievements

• Implemented The LPP Principles (ethics code) and whistleblowing system
• Conducted regular audits and inquiries to prevent corruption
• Complied with corporate governance rules of the Warsaw Stock Exchange

Climate Goals & Targets

Environmental Challenges

• Sunday trading ban in Poland
• Increased competition
• Rising consumer expectations
• Climate change
• Supply chain disruptions due to epidemics
• Fluctuations in currency exchange rates

Mitigation Strategies

• Developed omnichannel strategy to integrate physical and online sales
• Expanded international retail network and e-commerce sales
• Implemented cost management policies
• Developed Sustainable Development Strategy for 2020-2025
• Implemented RFID technology to improve inventory management
• Developed alternative sourcing strategies
• Implemented savings program and used government support schemes to maintain stability and save jobs

Supply Chain Management

Supplier Audits: 1,564 audits in 10 countries

Responsible Procurement

• LPP Code of Conduct
• LPP Quality Guidebook
• Regular audits by independent auditors (SGS)
• Eco Aware Production standard

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core level)

Certifications: BREEAM, LEED, FSC, RDS

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contribute to these goals through job creation, sustainable fashion practices, and carbon footprint reduction

Sustainable Products & Innovation

• Eco Aware collections
• Products made from recycled materials (organic cotton, recycled polyester, etc.)

Awards & Recognition

• Best integrated report in a 2019 sustainable development and corporate social responsibility report competition
• Warsaw Stock Exchange Award
• Honorable mention from the Journalists’ Jury

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 26% of clothes offered by all LPP brands are Eco Aware collections (7% increase YoY), 38% by Reserved (6% increase YoY)
• 100% of products containing down with RDS certification
• 70% of LPP garments produced in Bangladesh and Pakistan compliant with ZDHC’s sustainable chemical safety standards
• 50% of packaging recovered
• Only recycled plastics used in e-commerce packaging of House, Cropp and Sinsay orders
• 4,000 photovoltaic panels on the roof of the LPP Distribution Centre in Brześć Kujawski
• Signing a Power Purchase Agreement with Figene Energia securing the energy needs of the majority of LPP office buildings in Poland and the Distribution Center in Pruszcz Gdański for the period of 10 years

Social Achievements

• Launched the “Fashion for a Better Start” project supporting children’s homes
• Joined Cotton made in Africa initiative improving social conditions of farmers in Sub-Saharan Africa
• Implemented HR Charter to improve store personnel management
• Employed 325 people with disabilities
• Provided a 10% pay rise to all LPP central headquarters employees

Governance Achievements

• Established the position of procurement and ESG director
• Implemented a secure and anonymous whistleblowing option
• Appointed ethics officers at Silky Coders and LPP Printable
• Followed the new rules of corporate governance announced by Warsaw Stock Exchange in 2021

Climate Goals & Targets

Environmental Challenges

• Pandemic disruptions
• Disrupted supply chains
• Difficulties in sourcing raw materials
• War in Ukraine
• Suspension of operations in Russia

Mitigation Strategies

• Improved technological and logistical solutions
• Expanded distribution network
• Launched further logistics construction projects
• Designated a separate IT company (Silky Coders)
• Accelerated implementation of RFID technology
• Focused on EU markets

Supply Chain Management

Supplier Audits: 609/year

Responsible Procurement

• LPP Code of Conduct
• Eco Aware Production standard
• ZDHC membership
• Cotton Made in Africa partnership
• Canopy partnership

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core level), AA1000SES, TCFD

Certifications: BREEAM, LEED, RDS, RWS, FSC, OCS, GOTS, EU Ecolabel, RCS, GRS

Third-party Assurance: Deloitte Audyt sp. z o.o. sp.k. (Limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco Aware collections

Awards & Recognition

• Climate Aware Company
• Silver CSR Leaf
• Best Office in the Tri-City
• Distinction in the “Innovation and Technology” category of the Office Superstar competition

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Chemical safety
• Water impact
• Human rights
• Labor rights
• Diversity & Inclusion
• Product quality & safety
• Customer satisfaction

Environmental Achievements

• Reduced greenhouse gas emissions by 8% year-over-year (excluding Russia)
• Reduced plastics consumption by 567 tons
• 10% reduction in energy consumption in stores
• Offices, distribution centers, and selected stores powered by wind energy
• 80% of LPP garments produced in Bangladesh and 70% in Pakistan compliant with ZDHC’s sustainable chemical safety standards
• Increased use of more sustainable materials (19,569 tons in 2022/2023 vs 13,362 tons in 2021/2022)

Social Achievements

• Launched "heLPP" wellbeing program providing access to psychologists, financial advisors, and lawyers
• Adopted "Policy aimed at diversity management, equality and building an inclusive culture"
• Employed 381 people with disabilities (56 more than in 2021/2022)
• Ran "Look after your clothes" campaign to educate customers on environmentally friendly clothing care
• Donated nearly PLN 20 million in financial and in-kind assistance to those affected by the war in Ukraine

Governance Achievements

• Developed Risk Management Procedure
• Adopted new Human Rights Policy
• Joined amfori BSCI initiative
• Submitted decarbonization targets to SBTi for verification

Climate Goals & Targets

Environmental Challenges

• Limited availability of raw materials and increasing prices due to climate change
• Disruption to production processes due to extreme weather events
• Limited availability of sustainably produced or recycled materials
• Pandemic risk
• Geopolitical risks (war in Ukraine)
• Human rights and/or labor ethics violations in the supply chain
• Need to adapt quickly to regulations related to sustainable development
• Risk of negative image due to insufficient pro-environmental measures
• Talent acquisition and retention risks

Mitigation Strategies

• Monitoring raw material prices and adjusting sales prices
• Increasing the range of sustainable raw material sources
• Diversifying production markets
• Developing alternative sourcing strategies
• Developing polyester recycling technology
• Maintaining liquidity position during crises
• Operating in multiple markets
• Limiting exposure to single countries
• Developing the Human Rights Policy
• Strengthening ESG structures
• Implementing consumer education programs
• Investing in employee training and development
• Nurturing an ethical and inclusive working environment

Supply Chain Management

Supplier Audits: 719 audits in 2022/2023

Responsible Procurement

• LPP Code of Conduct
• Supplier sustainability requirements
• ZDHC Roadmap to Zero
• amfori BSCI

Climate-Related Risks & Opportunities

Physical Risks

• Limited availability of raw materials due to climate change
• Disruption to production and logistics due to extreme weather events

Transition Risks

• Increased energy prices
• Increased costs of marine logistics
• Increased demands for non-financial reporting

Opportunities

• Increased demand for sustainable products
• Increased access to finance for companies with defined climate objectives
• Improved logistics efficiency and reduced emissions

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Third-party Assurance: Deloitte Audyt sp. z o.o. sp. k.

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Initiatives to reduce greenhouse gas emissions, transition to renewable energy, promote circular economy

Sustainable Products & Innovation

• Garments made from recycled and organic materials

Awards & Recognition

• Golden Leaf and Green Leaf in "CSR Leaves" poll
• Best WIG20 index company in "Bulls and Bears" competition
• Best exporter and employer in "TOP 100 POMORSKIE" ranking
• First place in investor relations survey
• New Warehouse of the Year 2022 award
• Golden Clips award for "Look after your clothes" campaign

Environmental Metrics

ESG Focus Areas

• Decarbonisation
• Circular Economy
• Human Rights
• Employee Well-being
• Supply Chain Sustainability

Environmental Achievements

• 63.8% tCO2e reduction in own operations (scope 1 and 2, compared to the 2021 base year)
• Energy consumption reduced by approx. 18% y/y in stores thanks to implementation of a telemetry system
• Developed polyester recycling technology with Use Waste, awarded Gold Award in ESG Innovator competition
• All LPP's traditional stores in Poland accept clothing for recycling and donation.

Social Achievements

• Launched "ESG Academy" training program for strategic suppliers in Poland
• Became a member of several organizations promoting business standards guaranteeing compliance with human rights worldwide
• Implemented programs to optimize working conditions and professional training opportunities for employees

Governance Achievements

• Conducted a dual materiality analysis process in line with ESRS guidelines
• Appointed a Compliance Officer for the LPP Group
• Updated the risk book, including ESG risks

Climate Goals & Targets

Environmental Challenges

• Reducing scope three emissions across the entire value chain
• Supply chain disruptions due to extreme weather events
• Limited availability and increased prices of sustainably produced materials
• Dissemination of false information by third parties

Mitigation Strategies

• Raising standards of cooperation and involving partners and suppliers in decarbonisation efforts
• Developed alternative sourcing strategies
• Increased product prices or reduced the number of models using sustainable sources
• Developed a temperature and weather analysis system for planning deliveries
• Expanded portfolio of near-shore suppliers
• Issued current reports and took preventive measures in response to false allegations

Supply Chain Management

Supplier Audits: 998 human rights audits/year

Responsible Procurement

• LPP Code of Conduct
• Supplier sustainability requirements
• ZDHC membership
• Cotton made in Africa partnership
• amfori BSCI collaboration

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting production and logistics
• Limited availability and increased prices of raw materials due to climate change
• Water stress affecting cotton crops

Transition Risks

• Increased costs of sustainably produced materials
• Increased electricity prices
• Increased costs of maritime logistics
• Increased requirements for non-financial reporting

Opportunities

• Increased demand for sustainable products
• Better access to funding for companies with high ESG ratings
• Improved logistics efficiency and reduced carbon footprint
• Efficient management of raw materials

Reporting Standards

Frameworks Used: GRI, ESRS, TCFD, TNFD, UNGC

Certifications: ISO 9001:2015, FSC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through decarbonization efforts, sustainable supply chain practices, responsible resource management, and employee well-being programs.

Sustainable Products & Innovation

• Use of Cotton made in Africa, recycled polyester, and certified cellulose fibres

Awards & Recognition

• CSR Golden Leaf
• CSR Green Leaf
• Gold award in ESG Innovator competition
• Special Award for Sustainability Report in The Best Annual Report competition
• Distinction in the best report on operations in The Best Annual Report competition
• Second place in the Ranking of Responsible Companies
• Distinction for the best project in the Polish Logistics Association Awards
• Distinction in the sustainability reports category of the Sustainability Reports competition
• Silver award in the Effie Awards competition
• Investor Relations Leader
• Special award of the PAIH President in the ESG Innovator competition
• MTA Grand Prize for the Sinsay app
• Investor without borders
• ESG Eagles