Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Responsibility
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Reduced energy consumption per square meter in Lindex stores in Sweden by 7% in 2009.
• Achieved 92% recycling efficiency rate for waste in Finnish operations.
• Seppälä switched to recycled plastic carrier bags, made of 100% recycled material.
• Stockmann Delicatessen in Finland only sells organic and free-range eggs.
• Lindex introduced a new environmental code classifying suppliers based on their environmental performance.

Social Achievements

• Launched a major program for improving customer service quality at the Helsinki department store.
• Lindex started a program with the Swedish My Life charity to support immigrant girls.
• Seppälä held a T-shirt design competition for young people, donating proceeds to charity.
• Lindex collected SEK 6.3 million for the Pink Ribbon campaign.
• Stockmann participated in projects supporting children’s schooling in China and Bangladesh.

Governance Achievements

• CEO Hannu Penttilä was chosen as ‘Best IR Communicator’ in the IR Nordic Markets comparison.
• Stockmann is included in the Kempen SNS Smaller Europe SRI sustainable development index.
• Stockmann adheres to the principles of responsible import trade as set out by the International Association of Department Stores (IADS).

Climate Goals & Targets

Environmental Challenges

• Economic downturn impacting recruitment and leading to job losses.
• Variations in waste management practices across different business locations.
• Limited data on waste management outside Finland.
• Environmental and water pollution caused by the textile industry in Bangladesh.
• Lack of written guidelines and treatment of hazardous waste in some supplier factories.

Mitigation Strategies

• Adjusted working hours in line with declining demand.
• Implemented new working procedures to make savings.
• Set annual targets for waste management and monitored results regularly.
• Introduced a new environmental code for Lindex suppliers with a classification system.
• Started a joint training project with suppliers to address common deficiencies.

Supply Chain Management

Responsible Procurement

• Code of Conduct for suppliers, including requirements for waste handling, water treatment, and chemical handling.
• Regular checks in factories, training events on improving working conditions and environmental matters.
• BSCI membership.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Sustainable Products & Innovation

• Organic and Fair Trade products
• Environmentally labelled products
• Recycled plastic carrier bags

Awards & Recognition

• BGMEA award for Lindex's work in Bangladesh

Environmental Metrics

ESG Focus Areas

• Personnel
• Products
• Environment
• Financial Responsibility

Environmental Achievements

• All Stockmann department stores in Finland have a certified ISO 14001 environmental system
• Recycling efficiency rates for waste at department stores in Finland improved by 4 percentage points in 2011
• Lindex’s new store concept takes environmental impacts into account
• 93% of waste generated by the Department Store Division’s functions in Finland was either recycled or converted into energy

Social Achievements

• Department store managers received more than 400 days of training
• All of Lindex’s managers participated in management training
• Seppälä began to implement its Seppälä Simply Stronger strategy
• Lindex sold 5 million products manufactured from responsible materials
• Seppälä introduced products manufactured from organic cotton to its selections
• The organic food selection at Stockmann Delicatessens grew approximately 20%
• 626 Group employees received a medal for long service

Governance Achievements

• Stockmann joined the United Nations Global Compact in January 2011
• Stockmann is listed on the Kempen SNS Smaller Europe SRI and OMX GES Finland Sustainability indexes
• Stockmann complies in full with the Finnish Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Revenue growth did not cover the costs and depreciation caused by major expansion, especially in the first quarter of 2011
• Profitability did not meet the target in 2011
• Uncertain market conditions due to the European debt crisis weakened consumer confidence
• Weak demand for affordable fashion in Sweden throughout the year

Mitigation Strategies

• The situation improved towards the end of the year, with fourth-quarter operating profit clearly topping that of the previous year
• Aiming for considerable improvement in profitability in the long term
• Focusing on improving energy efficiency in retail premises
• Lindex strengthened its market position in all its countries of operation during 2011

Supply Chain Management

Supplier Audits: 199 BSCI audits (2011)

Responsible Procurement

• BSCI Code of Conduct
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001

Sustainable Products & Innovation

• Products manufactured from organic cotton, recycled fabric or Tencel fabric (Lindex)
• Organic cotton collection (Seppälä)

Environmental Metrics

ESG Focus Areas

• Personnel
• Products and Supply Chain
• Environmental
• Financial

Environmental Achievements

• Achieved top ranking in the Nordic Consumer Discretionary sector of the Carbon Disclosure Project (CDP) survey.
• Finnish department stores complied with the ISO 14001 system for 10 years.
• Waste sorting rate target of 95% reached in Finnish department stores.
• Total waste decreased by 2% compared to 2011 in Finnish department stores.
• Lindex reduced energy consumption by around 8% per store square meter over two years.

Social Achievements

• Over 500 long-serving employees awarded medals of merit.
• Department store supervisors received over 600 days of coaching.
• Lindex launched HER project focusing on young women’s health and well-being in Bangladesh and Pakistan factories.
• Lindex donated EUR 1.8 million to fund breast cancer research (almost double from 2011).
• Seppälä launched a new baby clothing collection using eco-friendly materials.

Governance Achievements

• Full compliance with the Finnish Corporate Governance Code.
• Issued a corporate bond, expanding financing sources and attracting new investors.
• Increased number of shareholders due to loyal customer share options.

Climate Goals & Targets

Environmental Challenges

• Uncertain economic situation and difficulty in predicting the outlook.
• Slackening economic growth putting pressure on cost reduction.
• Growing customer expectations regarding product selection and services.
• Long-term risks associated with climate change (energy prices, raw material availability).

Mitigation Strategies

• Launched a major cost savings program.
• Focusing on expanding the range of responsible products and online stores.
• Constantly developing climate-positive operations and seeking cost-effective solutions for improving energy efficiency.
• Close cooperation with brand designers and purchasing offices to minimize environmental impact of materials and production.

Supply Chain Management

Supplier Audits: 343 (173 external BSCI audits and 170 own inspections)

Responsible Procurement

• Supplier Code of Conduct based on BSCI principles.
• Prohibition of child and forced labor.
• Compliance with international treaties and conventions.

Climate-Related Risks & Opportunities

Transition Risks

• Increases in energy prices and the availability of raw materials

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001 (Finnish department stores), ISO 22000 (central kitchen), MSC (Stockmann Delicatessen fresh fish counters)

Sustainable Products & Innovation

• Products made from organic cotton, recycled fiber, and Tencel; MSC-certified fish; BCI cotton; eco-friendly baby clothing.

Awards & Recognition

• First place in Nordic Carbon Disclosure Leadership Index (Consumer Discretionary series)
• Second best reputation in Finnish retail sector (TNS Gallup)
• Fourth place in Universum’s Finland’s Ideal Employers 2012 survey (economics students)
• Hobby Hall: Best contact centre in Finland (2012)

Environmental Metrics

ESG Focus Areas

• People (social responsibility)
• Planet (environmental responsibility)
• Profit (financial responsibility)

Environmental Achievements

• Waste sorting target for Finnish department stores exceeded with 96.2% (vs. 95% target)
• Department stores in Finland joined the Finnish retail sector’s energy efficiency agreement scheme.
• Lindex launched LXM range of men’s products manufactured using 95% environmentally friendly materials.
• Over 12 million products made from organic cotton, recycled or Tencel fibre or from Better Cotton were on sale.

Social Achievements

• New Code of Conduct implemented.
• 378 factory inspections carried out in own brand fashion product supply chain (186 external BSCI audits and 171 Stockmann inspections).
• Signed the Accord on Fire and Building Safety in Bangladesh.
• Published a list of main suppliers of own fashion brands on website (Lindex and Stockmann, Seppälä to follow).

Governance Achievements

• Stockmann’s Board of Directors discussed responsibility of supply chain at meeting in Turkey.
• Board of Directors visited a factory of one of Stockmann’s clothing suppliers.

Climate Goals & Targets

Environmental Challenges

• Challenging year on main markets in Finland and Russia.
• Radical changes in the retail sector leading to personnel reductions.
• Need to improve cost structure.

Mitigation Strategies

• Launched a cost savings programme.
• Implementing structural changes.
• Introduced lay-offs of 12 working days for most personnel in Finland.

Supply Chain Management

Supplier Audits: 378 (2013)

Responsible Procurement

• Supplier Code of Conduct based on BSCI principles.
• Requirements related to animal rights, chemicals and environmental matters.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001, ISO 22000, MSC

Sustainable Products & Innovation

• LXM range of men’s products (Lindex)
• Products made from organic cotton, recycled or Tencel fibre or from Better Cotton

Awards & Recognition

• Stockmann’s Helsinki city centre department store’s facade lighting won the Outdoor lighting project of the year award.
• Lindex received the Fashion Chain of the Year award.
• Stockmann rated as the company with the second best reputation in the retail sector.

Environmental Metrics

ESG Focus Areas

• Financial profitability
• Corporate Governance
• Customer orientation
• Employment & wellbeing
• Products & product safety
• Responsible supply chain
• Energy & material efficiency

Environmental Achievements

• 99.2 per cent of waste from department stores in Finland was utilized as material or energy
• Set internal targets for CO2 reduction for 2015
• Lindex increased its use of less environmentally harmful raw materials by 31 per cent compared to the previous year, to 16.3 million garments (22% of all garments)

Social Achievements

• Completed and approved a group-wide Code of Conduct and group-wide anti-corruption policy
• Disclosed the suppliers and factories for the Group’s own fashion brands
• Enforced inspections in Bangladesh according to the Accord on Fire and Building Safety
• Added country of origin labels to Stockmann’s own fashion brands
• Revitalized Lindex values with employee involvement
• Renewed Seppälä values with employee involvement
• Launched a new bra range, with models chosen from Lindex employees
• Improved customer service by centralizing it under one roof
• Collected EUR 1.4 million for the Pink Ribbon charity through customer participation
• Reduced personnel turnover in Finland to 13% (significantly lower than the retail sector average)

Governance Achievements

• Implemented a new Group-wide Code of Conduct
• Implemented a group-wide anti-corruption policy
• Prepared an e-learning programme for implementing the Code and the anti-corruption policy

Climate Goals & Targets

Environmental Challenges

• Weak retail market conditions across main geographical markets, significantly affecting profitability
• Difficult economic situation requiring difficult decisions and restructuring
• Need to increase operating efficiency to secure long-term profitable growth
• Challenges in the supply chain, including improving working conditions in suppliers’ production facilities

Mitigation Strategies

• Launched a strategy reassessment process to improve long-term competitiveness and profitability
• Restructuring into three divisions: Stockmann Retail, Real Estate, and Fashion Chains
• Personnel reduction and working hour reduction
• Increased transparency of the supply chain by publishing a list of factories used for own-brand fashion products
• Commitment to international initiatives like Global Compact, BSCI, and Bangladesh Accord

Supply Chain Management

Supplier Audits: 216 BSCI audits; 205 Stockmann audits; 125 Accord inspections in Bangladesh

Responsible Procurement

• Supplier Code of Conduct incorporating BSCI Code of Conduct
• Supplier scorecard for evaluation
• Requirements for labour practices, human rights, and environmental actions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001 (Stockmann department stores in Finland), ISO 22000 (Stockmann central kitchen)

Sustainable Products & Innovation

• Organic cotton garments
• Pure Waste t-shirts
• Products made from recycled materials

Environmental Metrics

ESG Focus Areas

• Customers
• Personnel
• Products
• Environment
• Finance and Governance

Environmental Achievements

• Reduced total greenhouse gas emissions by 8%
• Reduced heating and cooling emissions by 21%
• Reduced electricity emissions by 9%
• Increased use of sustainable materials in Lindex garments by 50% to 36% of product range
• Reduced food waste in Stockmann Delicatessens through expanded charity collaboration
• Reduced total waste in Finland by approximately 15%

Social Achievements

• Published a new e-learning programme introducing Stockmann’s Code of Conduct (35% completion by year-end)
• Trained 130 managers and supervisors in the ‘Strategy into Action’ programme
• Revisited Stockmann’s values with employee involvement
• Conducted 349 audits in suppliers’ factories
• Launched a new own fashion brand, cut & pret, emphasizing responsible supply chain
• Improved cooperation with charity organizations for food donation

Governance Achievements

• Published the Group’s first report based on the Global Reporting Initiative (GRI) G4 Guidelines for 2014 (received honorary citation)
• Developed CSR strategy for 2016-2018
• Introduced a group-wide whistleblowing reporting channel

Climate Goals & Targets

Environmental Challenges

• Weak general economic situation and changes in consumer behaviour
• Loss of Russian department store business (EUR 86.1 million loss in 2015)
• Human rights risks in the supply chain (child labor, incorrect wages, excessive overtime)
• Environmental challenges in the supply chain (water scarcity, water treatment)

Mitigation Strategies

• Launched an efficiency programme targeting EUR 50 million in annual cost savings
• Implemented a responsible supply chain strategy including audits, training, and remediation for violations
• Engaged in various international initiatives to improve water management and reduce environmental impacts in the supply chain
• Improved energy efficiency through monitoring, optimization of building systems, and use of renewable energy

Supply Chain Management

Supplier Audits: 349 audits (overall); 142 BSCI audits, 116 Stockmann audits, 91 Accord inspections in Bangladesh

Responsible Procurement

• Stockmann Code of Conduct (incorporates BSCI Code of Conduct)
• Supplier scorecard
• Remediation for human rights violations
• Ban on unauthorized subcontracting in Bangladesh
• Environmental code for water treatment, chemicals handling, waste treatment, and emissions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines, UN Global Compact

Certifications: ISO 14001 (Stockmann department stores and support functions in Finland), ISO 22000 (Stockmann central kitchen), LEED Gold (new distribution centre)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Garments made from organic cotton
• Denim styles made from organic cotton with water-efficient washing processes

Awards & Recognition

• Honorary citation in Sustainability Reporting Award Finland 2015

Environmental Metrics

ESG Focus Areas

• Climate
• Circularity
• Human Rights

Environmental Achievements

• Submitted a science-based climate plan to SBTi aiming to reduce climate emissions by 42% by 2030 (compared to 2022).
• Lindex: 42% of the assortment contained at least 15% recycled materials.
• Lindex: 78% sustainably sourced materials (at least 50% more sustainable materials).

Social Achievements

• Lindex: 100% of Lindex’s top 30 suppliers calculated living wages and conducted self-assessments.
• Lindex: Donated EUR 1.61 million for cancer research through the Pink Ribbon project.
• Stockmann: 93% of personnel completed Code of Conduct training.
• Stockmann: Emotional Value Index (EVI) increased to 62 (from 58).

Governance Achievements

• Preparations for CSRD reporting regulation: gap analysis and double materiality analysis including a stakeholder survey for both divisions.
• Zero customer privacy breaches in 2023.
• No confirmed cases of corruption in 2023.

Climate Goals & Targets

Environmental Challenges

• Unstable geopolitical situation leading to inflation and supply chain disruptions.
• Reducing Scope 3 emissions and obtaining accurate environmental data from the supply chain.

Mitigation Strategies

• Exploring new approaches to support sustainable development and reduce negative social and environmental impacts in sourcing regions.
• Improved sustainability data management to comply with CSRD.
• Close cooperation with supply chain to ensure responsible business conduct.

Supply Chain Management

Supplier Audits: 120 SMETA audits (Lindex); 51 Amfori BSCI audits (Stockmann); 55 Accord inspections (Stockmann Group)

Responsible Procurement

• Supplier Code of Conduct
• Sedex standard
• amfori BSCI operating principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (Stockmann Finland), LEED Gold (Stockmann distribution center), BREEAM Very Good (Stockmann Tallinn department store)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 5 (Gender equality)
• 6 (Clean water and sanitation)
• 8 (Decent work and economic growth)
• 12 (Responsible consumption and production)
• 13 (Climate action)
• 17 (Partnerships for the goals)

The Group has identified six SDGs to which it can best contribute and focus its efforts.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed