Climate Change Data

MÁDARA Cosmetics

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:177,264.36 tCO2e (Scope 2) 14,340.48 tCO2e (Scope 1)
Scope 1 Emissions:14,340.48 tCO2e/year
Scope 2 Emissions:177,264.36 tCO2e/year
Renewable Energy Share:47%
Total Energy Consumption:499,694.88 MWh/year
Water Consumption:860,130.30 m3/year
Waste Generated:105,888 tons/year

ESG Focus Areas

  • Our People (Employees)
  • Our Customers
  • Our Supply Chain
  • Our Communities
  • Our Environment

Environmental Achievements

  • More than 70% of total waste recycled
  • More than 47% of electricity consumed from renewable sources
  • 100% of T-MARKET stores powered by renewable energy

Social Achievements

  • ~ EUR 72 million of employee benefits provided
  • Launched "Speed Board" talent program
  • 44% women in highest management positions
  • MAXIMA Latvia received Platinum Rating in the Sustainability Index

Governance Achievements

  • Established a working group (IMPACT+) to develop sustainability goals
  • Created a unified internal CSR reporting system
  • Joined the United Nations Global Compact

Climate Goals & Targets

Medium-term Goals:
  • Achieve 100% recyclable private label packaging by 2025 (MAXIMA Lithuania)
  • Replace all plastic carrier bags with sustainable materials by 2025 (MAXIMA Latvia)
Short-term Goals:
  • Reduce water consumption
  • Reduce food waste by 30% by 2025 (MAXIMA Lithuania and MAXIMA Latvia)
  • Reduce plastic consumption by 30% by 2025 (MAXIMA Lithuania)

Environmental Challenges

  • Supply chain disruptions due to COVID-19
  • Increased employee salaries and costs
  • Newly introduced retail tax in Poland
  • Competitor expansion and COVID-19 restrictions impacting market share
  • Increased energy prices
  • Russia's military invasion of Ukraine
Mitigation Strategies
  • Continued maintaining day-to-day business while navigating COVID-19
  • Redeveloped MAXIMA formats for increased efficiency and sustainability
  • Remodeling business processes and strengthening IT
  • Unified approach to real estate management
  • Successful Commercial Paper offering
  • Removed goods of Russian and Belarusian origin from stores
  • Provided humanitarian aid to Ukraine

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
  • Heavy rain
  • Floods
  • Wildfires

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 9001 (MAXIMA Lithuania and MAXIMA Latvia), ISO 14001 (MAXIMA Lithuania), ISO 50001 (MAXIMA Latvia)

Awards & Recognition

  • Best Buy Award (MAXIMA Lithuania, MAXIMA Latvia, MAXIMA Estonia)
  • Most Loved Retailer in Latvia and Baltics (MAXIMA Latvia)
  • Top Partner in Polish Business Awards (BARBORA Poland)
  • Latvian E-commerce Award 2021 for Food (BARBORA Latvia)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:114 tCO2e/year (HQ)
Water Consumption:1.94 m3/m2/year (all premises)
Carbon Intensity:Reduced from 97 to 80 gCO2/km (target).

ESG Focus Areas

  • Responsible lending
  • Climate change mitigation and adaptation
  • Employee growth and well-being
  • Responsible access to finance
  • Responsible business conduct
  • Financial literacy

Environmental Achievements

  • Became Carbon Neutral Certified by offsetting 114 tCO2e from HQ operations through projects in Kenya and Uganda.
  • Launched OX Drive, an electric car-sharing service in Latvia.
  • Launched an e-motorcycle financing project in Kenya.
  • Reduced average CO2 intensity of the Group’s vehicle portfolio by 3.1%.

Social Achievements

  • Launched a financial literacy project aiming to educate over 500,000 consumers.
  • Ranked 15th in the “Top Employer in Latvia 2022” research.
  • Implemented a re-onboarding plan for colleagues returning from parental leave.
  • Promoted 135 staff members.

Governance Achievements

  • Updated Anti-fraud, Anti-bribery, and Anti-corruption Policy.
  • Adopted a new Business Code of Conduct and Ethics.
  • Joined the “Zero tolerance against corruption” initiative in Latvia.
  • Streamlined the whistleblowing system by introducing the TrustLine webform.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2025 (administrative operations).
Medium-term Goals:
  • Grow net loan portfolio and revenue by 15-20%.
  • Achieve climate neutrality of administrative operations.
  • Assess all key suppliers according to ESG criteria.
Short-term Goals:
  • Maintain organic growth in existing markets.
  • Increased focus on client retention.
  • Launch and scale-up of near-prime car leasing product (Primero).
  • Promote e-boda financing product in Kenya.
  • Scale-up of electric car-sharing service in Latvia.

Environmental Challenges

  • Geopolitical uncertainty and war in Ukraine.
  • Economic downturn and changing moods in capital markets.
  • Need to reduce portfolio exposure in Belarus and Ukraine.
  • Difficulty in estimating taxonomy alignment for climate targets.
Mitigation Strategies
  • Re-evaluated business in some markets and re-adjusted growth plans.
  • Focused on portfolio quality and operational efficiency.
  • Tightened underwriting policies.
  • Diversified funding sources (bonds, P2P, bank loans, third-party borrowings).
  • Reduced administrative costs.
  • Developed alternative sourcing strategies (local bond issuance in Kenya).

Supply Chain Management

Responsible Procurement
  • Screening suppliers against sanctions lists, sanity checks (tax debts, reputation), assessment of supplier codes of conduct.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, floods
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products, e-mobility financing.

Reporting Standards

Frameworks Used: GRI

Certifications: Carbon Neutral Certified

UN Sustainable Development Goals

  • 3, 4, 5, 8, 9, 12, 13, 15

Initiatives contribute to these goals through responsible lending, financial literacy, employee well-being, green mobility, and sustainable business practices.

Sustainable Products & Innovation

  • OX Drive electric car-sharing, e-motorcycle financing, eco leasing.

Awards & Recognition

  • Nasdaq Baltic Awards: Best Investor Relations on the First North Bond List

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:148.70 tCO2e/year
Scope 1 Emissions:148.70 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Renewable Energy Share:100% electricity from renewable sources
Total Energy Consumption:45036.2 m3 gas/year
Water Consumption:8878 m3/year
Waste Generated:96.5 tonnes/year
Carbon Intensity:0.008 kg CO2 per 1 euro of turnover

ESG Focus Areas

  • Environmental Sustainability
  • Social Responsibility
  • Corporate Governance

Environmental Achievements

  • Launched Retinol Alternative Serum with plant-based ingredients, minimizing environmental impact.
  • Improved packaging sustainability for 5 existing products, using more recycled materials and making packaging 100% recyclable.
  • Reduced gas consumption by 28.8% compared to 2022.
  • Switched to 100% green electricity, resulting in zero Scope 2 GHG emissions.
  • Reduced CO2 intensity per 1 euro of turnover by 9%.

Social Achievements

  • Improved customer service response times significantly.
  • Maintained a high TrustPilot rating of 4.7.
  • Implemented symbolic cost for product samples, reducing sachet usage by 50% in Q4 2023.
  • Received the official status of "Family friendly company" in Latvia.
  • Named the Greenest Brand in the Baltics and best employer in Latvia's manufacturing sector.

Climate Goals & Targets

Short-term Goals:
  • Further improve packaging sustainability by 2025 (phasing out hot foil stamping and aluminium caps).

Environmental Challenges

  • Shorter shelf life of natural ingredients compared to synthetic ones.
  • Consistency challenges with natural ingredients due to climate and soil factors.
  • Greenwashing in the cosmetics industry.
  • High employee turnover rate (29.4% in 2023).
Mitigation Strategies
  • Prioritizes scientific validation and third-party certifications.
  • Collaborates with researchers to develop sustainable formulations.
  • Focuses on transparency in ingredient sourcing and labelling.
  • Implemented exit interviews, pulse surveys, and retention strategies to address employee turnover.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: COSMOS standard by ECOCERT Greenlife

Certifications: COSMOS, ISO GMP

Third-party Assurance: ECOCERT Greenlife, Bureau Veritas Latvia SIA, Deloitte Audits Latvia SIA

Sustainable Products & Innovation

  • Retinol Alternative Serum
  • SOS+ Sensitive line

Awards & Recognition

  • Greenest Brand in the Baltics
  • Best employer in Latvia's manufacturing sector