Climate Change Data

Environmental Metrics

ESG Focus Areas

• Leadership
• People
• Planet
• Partners
• Impact

Environmental Achievements

• Reduced scope 2 emissions by 12.3% against 2019
• Increased electricity consumption from renewables by 17.6%
• Reduced paper consumption per employee by 28.5% from 2019
• Reduced electricity consumption from the grid by 11.9% against 2019
• Installed over 4MW of solar panels, with over 30% of electricity in 2 sites being renewable

Social Achievements

• Launched Speak Up platform to create a safe space for employee voices
• Increased maternity leave to 90 days
• Increased paternity leave to 14 days
• Achieved zero recordable injuries
• Supported healthcare workers and donated meals through various initiatives
• Donated funds to relieve people impacted by the Lebanon explosion

Governance Achievements

• Expanded stakeholder dialogue and scope of sustainability focus areas
• Ensured strategy alignment with partner and supplier values
• Conducted employee training on Code of Ethics and cybersecurity

Climate Goals & Targets

Environmental Challenges

• Economic crisis brought by lockdown
• Pandemic-related disruptions

Mitigation Strategies

• Agility in serving customers through e-commerce
• Implementation of digital technologies for efficiency and sustainability
• Shift to remote working policy and e-learning tools

Supply Chain Management

Supplier Audits: 577 suppliers assessed with CSR Scorecard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Women Empowerment Principles (WEPs), Pearl Initiative business pledge

UN Sustainable Development Goals

• SDG 12

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Partners

Environmental Achievements

• Reduced GHG emissions by 2,697 tCO2e
• Installed 3,549 KWp of solar capacity, meeting 34% of electricity demand at four buildings through solar energy
• Recycled 502 tons of waste (47% increase vs. 2020)
• 91% of stores opened in 2020 are STEP certified

Social Achievements

• Achieved zero recordable injuries in logistics operations in UAE
• Increased women representation in middle management to 47% and senior management to 30%
• Hired 13 People of Determination
• Certified as a ‘Great Place to Work’ in five countries (UAE, KSA, Kuwait, Bahrain & Qatar)
• 92,323 people impacted through various employee engagement initiatives
• 13,573 volunteer hours contributed

Governance Achievements

• Released a Partner Code mandated for all new and existing partners and suppliers
• 93% of Speak Up cases resolved
• 90% completion of Code of Ethics training

Climate Goals & Targets

Environmental Challenges

• Limited availability of electric vehicles in the Middle East
• Increasing water consumption due to ecommerce business growth

Mitigation Strategies

• Modernizing fleet with low-emission vehicles (minimum EURO III, EURO IV where possible)
• Optimizing transportation routes using FarEye tool
• Installing sub-meters to monitor water efficiency
• Exploring EV replacement for administrative cars as a pilot project

Supply Chain Management

Supplier Audits: 100+ suppliers screened in 2021

Responsible Procurement

• Supplier Scorecard (mandatory for new suppliers and contract renewals)
• Partner Code (2022)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Modernist platform (modest fashion)

Awards & Recognition

• Dubai Chamber CSR Label (Advanced level)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Health, Safety, and Wellbeing
• Ethical and Responsible Business Practices
• Circular Economy
• Youth Empowerment
• Community Engagement

Environmental Achievements

• Aligned GHG reduction targets to the IPCC's pathway to keep global temperature rises well below 1.5°C.
• Developed a complete Scope 1, 2, and 3 GHG inventory.
• Reduced electricity consumption by 1.3 million kWh, avoiding approximately 530 tCO2 emissions.
• Increased recycling quantity in UAE offices to 44% from 2019 baseline.
• Shifted 23 Chalhoub Group managed brands from bubble wrap to kraft paper, resulting in 67 tonnes of CO2 savings annually.

Social Achievements

• Launched Women in Leadership (WiL) Programme.
• Increased women representation in senior management to 31%.
• Launched ‘Two Days Off’ scheme for store teams in UAE and KSA.
• Launched Chalhoub Group Wellbeing Academy.
• Launched Empowered to Work Programme (EWP) for People of Determination.
• Increased the number of people supported by Chalhoub Impact volunteering and philanthropic initiatives to 87,798.

Governance Achievements

• Implemented robust governance policies and frameworks.
• Mandated Servant Leadership training in all leadership programmes.
• Recorded zero confirmed incidents of corruption.
• Launched Third-Party Partner Code.

Climate Goals & Targets

Environmental Challenges

• Lack of EV infrastructure and unavailability of EV trucks and vans in the region.
• Managing Scope 3 emissions (99% of total emissions).
• Barriers within individuals’ mindsets and within the Group preventing the transformation to Servant Leadership.

Mitigation Strategies

• Developing a roadmap for complete transition to EVs by 2030.
• Improving Scope 3 calculation methodology.
• Identifying decarbonization opportunities within “Investments” and “Goods and Services”.
• Running roadshows to identify obstacles in the transformation journey to Servant Leadership and developing action plans to overcome them.

Supply Chain Management

Supplier Audits: 24% CSR Scorecard completion rate

Responsible Procurement

• Third-Party Partner Code
• Group’s official procurement policy mandating compliance with sustainable procurement principles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme flooding, wildfires, and droughts

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Expansion into the wellness market

Reporting Standards

Frameworks Used: GRI Standards (June 2022), UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 45001, ISO 14001 (in Logistics operations)

Third-party Assurance: Independent third-party assurance

UN Sustainable Development Goals

• Not disclosed

The report demonstrates alignment with the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Clean beauty products
• Refilable La Bouche Rouge products
• Hikaya furniture from recycled materials

Awards & Recognition

• 'Great Place to Work®' in UAE, KSA, Kuwait, Bahrain, and Qatar

Environmental Metrics

ESG Focus Areas

• People
• Partners
• Planet

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 2.8% compared to 2022 (8,660 tonnes of CO2e)
• 4 owned sites have solar panels, contributing to over 30% of total energy consumption in the UAE.
• 92% of waste from UAE premises recycled.
• Reduced electricity consumption by 22.2% between 2021 and 2022.
• Tanagra shifted to 100% plastic-free, recyclable and biodegradable e-commerce packaging.

Social Achievements

• Achieved gender pay parity based on years of service.
• 32% women representation in Executive Leadership.
• 84% employee well-being score.
• More than 8,800 training sessions conducted, averaging 12.5 training hours per team member.
• Launched RAEDA program in KSA to empower women in leadership.

Governance Achievements

• Established ESG and Remuneration Committee.
• Established an Environmental Task Force.
• Established a Diversity, Equity, and Inclusion (DEI) Group Priority Task Force.
• Secured sustainability-linked loans with Mashreq Bank and Emirates NBD Bank.
• Introduced new policies to strengthen ethical and governance framework (Philanthropy Policy, Conflict of Interest Policy, etc.).

Climate Goals & Targets

Environmental Challenges

• Increased costs of doing business, high-interest rates, and elevated inventory levels impacting profitability.
• Regional geopolitical volatility.
• Complexity of calculating and managing Scope 3 emissions.

Mitigation Strategies

• Implementing measures of rationalisation and efficiency, including reviewing organisational design and structure.
• Securing sustainability-linked loans to incentivize ESG targets.
• Developing a 38-page ESG guide for business units and brands.
• Adopting a hybrid methodology for Scope 3 emissions calculation.
• Launching a supplier engagement program to address Scope 3 emissions.

Supply Chain Management

Supplier Audits: 1686 sustainability scorecards completed; 30% of suppliers screened.

Responsible Procurement

• Third-Party Partner Code
• Sustainability Supplier Scorecard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core Option, UNGC, SBTi

Certifications: ISO 45001

Third-party Assurance: Impartial third-party review and validation

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 17

The report details how Chalhoub Group's initiatives contribute to these goals.

Sustainable Products & Innovation

• House of Wisdom (wellness products)
• The Abaya Lab (on-demand tailoring)
• SOL3MATES (web3 sneaker label)

Awards & Recognition

• Inclusion Trail Blazers Award
• Silver Stevie® Award for Great Employers
• Great Place to Work® certification