BestSecret Group SE

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:624,714 tCO2e

Scope 1 Emissions:1,500 tCO2e

Scope 2 Emissions:1,324 tCO2e

Scope 3 Emissions:621,890 tCO2e

Renewable Energy Share:86.4%

Total Energy Consumption:21,530 MWh

Waste Generated:2,687 tons

ESG Focus Areas

Reduce the number of discarded fashion items
Improve the sustainability of our supply
Promote human rights in our community
Minimize waste per shipment
Reduce operational greenhouse gas emissions
Care for our talent

Environmental Achievements

Expanded our product take-back program by 50%
Launched a pre-loved second-hand product category
Decreased wood waste to almost zero by reusing and selling all intact wood pallets
Switched to renewable electricity in Spain
Moved to shipping tariffs in Germany that finance climate projects
Improved emission data collection
Conducted a scope 3 assessment of our most relevant emission categories

Social Achievements

Implemented a risk management system for human rights and environmental risks pursuant to the German SCDDA
Established an electronic whistleblowing and complaints mechanisms for SCDDA-related risks
Updated our company Code of Conduct
Donated to the victims of the earthquakes in Turkey and Syria
Introduced LinkedIn Learning and O’Reilly as on-demand learning platforms
Implemented a Competency Framework
Launched a junior leadership development program
Strengthened our performance review process
Introduced a gender-inclusive language resource document
Updated our job descriptions with more inclusive and gender-neutral language
Analyzed our gender pay gap

Governance Achievements

Conducted a materiality assessment based on the European Sustainability Reporting Standards (ESRS)

Climate Goals & Targets

Medium-term Goals:

Expanding online pre-loved offering and including more product categories
Ensuring compliance with sustainable product labeling requirements
Continuing to strategically increase the use of more sustainable materials in Private Label women’s fashion apparel and shifting more production from China to Europe
Analyzing article portfolio in more detail in line with preparations for the CSRD
Evaluating options to switch to renewable electricity for new facilities
Working on a plan to install solar panels on the roof of our logistics centers
Continuing to roll out LED lighting in our stores
Further analyzing our scope 3 emissions and how to reduce them
Ensuring compliance with the European Corporate Sustainability Reporting Directive (CSRD) on climate change (including all scope 3 categories)
Launching dedicated leadership programs
Initiating growth conversations based on new Competency Framework
Creating learning collections with BestSecret-specific content for LinkedIn Learning
Introducing external keynote speakers in virtual brown bag session

Short-term Goals:

Expanding pre-loved offering
Continuing product take-back programs
Improving waste data collection and reporting
Optimizing waste separation in offices and stores
Analyzing the use of reusable shipping boxes
Continuing to test a dimensioning device
Ensuring compliance with and further strengthening approach regarding the German SCDDA
Building a more diverse and inclusive model cast
Introducing regular employee pulse surveys
Improving onboarding journey
Defining Corporate Values
Improving information channels to reach all employees
Implementing inclusive hiring training for managers
Increasing female representation on hiring panels
Supporting parental leavers
Working on initiatives to close the gender pay gap
Improving data collection and reporting in line with the CSRD requirements
Conducting internal audits to assess the status quo of occupational H&S and fire protection at all locations
Fully implementing the certifiable system environment H&S program based on DIN45001 for our operations in Germany
Updating and intensifying training in occupational H&S and fire protection
Further increasing the size of our team H&S organization

Environmental Challenges

Increased energy consumption and scope 1 and 2 greenhouse emissions in 2023 due to opening a large logistics center and new offices to accommodate business growth
Differences in waste management systems between logistics centers requiring adjustments to waste reporting
Need to optimize waste separation at some offices and retail stores
Limited control over the production practices and sustainability of the materials used to manufacture the overstock items sold
Difficulty meeting the detail and documentation requirements of the EU’s Green Claims Directive for sustainable product labeling
Excessive packaging and numerous returns in online shopping
Maintaining a sense of belonging among mostly remote employees

Mitigation Strategies

Investigating the small increase in packaging usage per shipment to identify if additional efficient packing training measures are needed
Improving waste data collection and reporting in line with preparations for the CSRD
Optimizing waste separation in offices and stores
Analyzing the use of reusable shipping boxes
Continuing to test a dimensioning device to automatically suggest the most efficient packaging container
Charging for bags in retail stores and donating proceeds to charity
Increasing the share of more sustainable materials in Private Label women’s fashion apparel and shifting more production from China to Europe
Developing a sustainable sourcing guide for textiles and conducting workshops for buyers
Ensuring compliance with sustainable product labeling requirements
Investing in DHL’s GoGreen solutions and Hermes CO2-neutral shipments
Reducing returns by preventing those due to incorrect product descriptions or product damage
Improving overall product presentation and sizing information
Evaluating options to switch to renewable electricity in new facilities
Working on a plan to install solar panels on the roof of logistics centers
Continuing to roll out LED lighting in stores
Further analyzing scope 3 emissions and how to reduce them
Ensuring compliance with the CSRD on climate change
Holding regular Town Hall meetings
Celebrating company events
Conducting a company-wide employee survey
Launching the “Something special” award
Introducing regular employee pulse surveys
Improving onboarding journey
Defining Corporate Values
Improving information channels to reach all employees
Implementing inclusive hiring training for managers
Increasing female representation on hiring panels
Supporting parental leavers
Working on initiatives to close the gender pay gap
Improving data collection and reporting in line with the CSRD requirements
Conducting internal audits to assess occupational H&S and fire protection at all locations
Fully implementing the certifiable system environment H&S program based on DIN45001 for German operations
Updating and intensifying training in occupational H&S and fire protection
Further increasing the size of the H&S team

Climate Change Data