Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics and Transparency
• Customer Focus
• Employee Development
• Socially Responsible Supplier Relations
• Community Education Support
• Environmental Impact Mitigation

Environmental Achievements

• Reduced energy consumption by 1% compared to the previous year.
• 10 LEED-certified stores and 25 eco-friendly stores.
• Implemented a waste management system.
• 56% of non-hazardous solid waste recycled.

Social Achievements

• Launched the "Banco de Talentos" program, with 104 employees promoted.
• Implemented policies to support working mothers.
• Inclusion program for people with disabilities.
• Supported over 82,000 children through the "Haciendo Escuela" program.
• 17,000+ hours of employee volunteer work.

Governance Achievements

• Adherence to the UN Global Compact principles.
• Implemented an ethics system with a confidential reporting channel.
• Training on ethics, human rights, and fair competition.

Climate Goals & Targets

Environmental Challenges

• High employee turnover rate (46%).
• Supply chain disruptions (implied).

Mitigation Strategies

• Implemented the Net Promoter Score (NPS) to improve customer service.
• Improved online platform and Click & Collect model.
• Implemented LEAN management model for efficiency.
• Supplier audits under the SMETA protocol.

Supply Chain Management

Supplier Audits: 94% of Asian suppliers and 92% of local suppliers audited under SMETA.

Responsible Procurement

• SMETA protocol
• Vendor Compliance code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Essential Conformity), UN Global Compact

Certifications: LEED (10 stores)

Awards & Recognition

• Inclusion in the Dow Jones Sustainability Index (DJSI) for Emerging Markets

Environmental Metrics

ESG Focus Areas

• Transparency, ethics, and integrity
• Customer experience
• Health, well-being, and occupational safety
• Privacy and cybersecurity
• Commitment, diversity, and inclusion of employees
• Human rights
• Climate change strategy
• Operational eco-efficiency
• Circularity
• Conscious offerings and brands
• Relationship and impact on local communities
• Responsible supplier management
• Labor relations and freedom of association

Environmental Achievements

• Launched +Verde, a comprehensive environmental sustainability strategy aligned with the UN Sustainable Development Goals.
• Recycled 13.2 million hangers in Chile and Colombia.
• Achieved carbon neutrality certification for the third consecutive year in Colombia.
• 95% of waste generated during the construction of the Falabella Parque Arauco store was recycled.
• Americanino recycled 4,265 kilos of jeans in 2021 (double the amount in 2020).

Social Achievements

• Launched "Diseño Latino," a collection showcasing Peruvian, Chilean, and Colombian talent, creating over 40,000 garments.
• Implemented the "Talento Local" program, supporting over 100 emerging artists.
• The Haciendo Escuela program impacted 81,000 children in 99 vulnerable schools across Chile, Peru, and Colombia.
• Nearly 9,000 volunteer hours contributed by employees in Chile, Colombia, and Peru.
• 43% of managerial positions held by women.

Governance Achievements

• Implemented a corporate integrity model and code of conduct.
• Developed a data protection program.
• Strengthened cybersecurity infrastructure.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global issues.
• Increased costs of raw materials.
• Difficulty accessing samples due to global supply chain problems.
• Cybersecurity threats.
• Pandemic-related challenges impacting operations and employee well-being.

Mitigation Strategies

• Flexible policies and innovative solutions for supplier management.
• Digitalization of sample development processes.
• Strengthened cybersecurity measures and employee training.
• Covid-19 protocols and support for employee well-being.
• Implementation of a comprehensive data protection program.

Supply Chain Management

Supplier Audits: 532 audits in total (45 in Chile, 45 in Colombia, 46 in Peru, 396 in Asia)

Responsible Procurement

• SMETA audits
• Sustainable sourcing requirements for +Verde products
• Supplier training programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, LEED (for some buildings)

Third-party Assurance: External audit

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• +Verde product line

Awards & Recognition

• US Green Business Council Leadership Award 2021
• Merco 2021 awards (Retail category)
• Great Place to Work awards
• Lealtad del Consumidor award (Chile)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Community Investment
• Supplier Sustainability
• Employee Well-being

Environmental Achievements

• Achieved 5% reduction in carbon footprint in Peru.
• Received third star from Peru's Carbon Footprint Peru platform.
• Received Seal of Excellence from Chile's Huella Chile program for the fourth consecutive year.
• All Sodimac Colombia stores and distribution centers recertified under ISO 14001:2015.
• Sodimac became the first retailer in Latin America to obtain FSC certification for responsible management of its Timbermac brand of wood.
• Achieved goal of ensuring all packaging and packing of own-brand products is recyclable (excluding minimal exceptions).

Social Achievements

• Launched 'Para volver a construir' (To build again) campaign in Chile, lowering and freezing prices of over 1,000 products.
• Trained over 120,000 tradesmen and tradeswomen in Chile through the Great Training Fair and Tradesmen’s Circle.
• Peru's Great Digital Training Fair attracted 27,000 people.
• Provided over 330,000 hours of training for construction professionals in Colombia.
• Launched 'Juntos por tu Hogar' (Together for Your Home) initiative in Colombia to improve employee homes.
• Implemented Silent Hour initiative in Chile to welcome people on the autism spectrum.
• Boosted social investment programs, assisting families affected by emergencies.

Governance Achievements

• Strengthened corporate governance and Corporate Integrity System.
• Implemented a second Human Rights and Business Due Diligence process in Chile.
• Global Compact Chile recognized Sodimac's Due Diligence program.

Climate Goals & Targets

Environmental Challenges

• Reduction in household consumption and construction activity in Latin America.
• Economic difficulties faced by consumers.
• Managing high inventories due to pandemic-related supply chain disruptions.
• Weak activity in the new construction sector and slow replacement market in some regions.

Mitigation Strategies

• Launched initiatives to support consumers (price freezes, campaigns).
• Strengthened e-commerce and logistics capabilities.
• Opened new stores and remodeled others.
• Implemented efficiency plans to reduce spending.
• Optimized product mix and strengthened own brands.
• Implemented innovative initiatives to find business opportunities.

Supply Chain Management

Responsible Procurement

• Responsible Trade Policy
• Supplier Ethical Data Exchange (Sedex) guidelines
• Requirements on compliance with regulation, workplace safety, product labeling, and environmental care.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (flooding, rains)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals (SDGs), ILO's Principles concerning Multinational Enterprises and Social Policy, UN Guiding Principles on Business and Human Rights, UN Global Compact, ISO 26000

Certifications: ISO 14001:2015 (Colombia), FSC (Timbermac brand)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Over 12,000 sustainable products marketed.
• Timbermac brand with FSC certification.

Awards & Recognition

• Dow Jones Sustainability Index (DJSI) ranking.
• MSCI ESG ratings improvement.
• IPSA Ranking of Companies’ Sustainability.
• Gender Benchmark of the World Benchmarking Alliance.
• Various Merco, Cadem, and GFK rankings.