Climate Change Data

Environmental Metrics

ESG Focus Areas

• Pets and their parents
• Employees
• Communities
• Responsible supply chain
• Reducing environmental impact
• Good governance and high ethics

Environmental Achievements

• Reduced logistics emissions by -6% compared to FY20 (but +10% compared to FY19) in relation to net sales
• Achieved 100% renewable energy sources in Nordic operations (warehouses)
• Reduced packaging material by 2.7% in relation to net sales compared to 2019 in warehouses
• Recycled 115 metric tons of carton and paper and 22 metric tons of plastic in the central warehouse

Social Achievements

• Improved Net Promoter Score (NPS) to 77 (from 79 in 2020)
• Employee turnover of 15% (14% in 2020)
• Great Place to Work employee satisfaction rate of 73% (76% in 2020)
• Offered three days’ paid pet parental leave
• 95% of suppliers in high-risk countries passed an amfori BSCI audit (82% in 2020)

Governance Achievements

• 100% of key product suppliers signed the updated Code of Conduct
• 53% of employees completed the Code of Conduct e-learning course (72% in 2020)
• No reported cases of misconduct through the whistleblowing channel

Climate Goals & Targets

Environmental Challenges

• Decreased recycling rate in warehouses due to incorrect waste separation (13% reused or recycled in 2021 vs 100% in 2020)
• High employee turnover in the retail industry
• Potential risks related to social matters (weak customer acceptance, poor product quality)
• Potential climate risks (increasing distribution costs, failure in reducing waste)

Mitigation Strategies

• Corrective measures started to improve waste separation and recycling in warehouses (clearer communication, training)
• Investment in employee well-being and satisfaction (job rotation, flexible working conditions, occupational health services)
• Comprehensive quality monitoring, close work with suppliers, customer feedback collection
• Environmental targets to reduce emissions and improve recycling and waste management (e.g., using EURO 6 trucks, increasing consignment size)

Supply Chain Management

Supplier Audits: 95% of tier one suppliers in high-risk countries audited by the end of 2021

Responsible Procurement

• Musti Group Supplier Code of Conduct
• amfori BSCI Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• Gaia brand with products made of recycled, organic, or environmentally sustainable materials

Environmental Metrics

ESG Focus Areas

• Pets and their parents
• Employees
• Communities
• Responsible supply chain
• Reducing environmental impact
• Good governance and high ethics
• Customer privacy
• Transparency of supply chain

Environmental Achievements

• 31% of packaging materials reused or recycled (up from 13% in 2021)
• Reduced CO2 emissions from IT equipment by 5,344 kg by extending the life cycle of used IT devices and partnering with a certified recycling partner.
• 100% renewable energy consumption at warehouse operations and operations in Sweden (where the electricity contract is directly influenced by the company).

Social Achievements

• Employee turnover at 17% (2021: 15%)
• Employee satisfaction index at 81% in 2022 (using a new internal survey)
• Launched Musti Pawcademy, a new competence development academy
• Offered three days’ paid pet parental leave (“pawternity leave”) to employees with new pets.

Governance Achievements

• 60% of employees completed the Code of Conduct e-learning course (up from 53% in 2021)
• Renewed whistleblowing channel to comply with new requirements; no cases of misconduct reported in 2022.
• Improved information security processes and strengthened internal and external capacity to manage information security and data protection.

Climate Goals & Targets

Environmental Challenges

• 5.5% increase in packaging material in relation to net sales compared to 2019 levels (though plastic use was reduced by 5.3% compared to 2021)
• High employee turnover typical of the retail industry
• Potential risks related to product safety, supply chain quality, customer data breaches, and reputational damage.

Mitigation Strategies

• Corrective measures taken to increase recycling at the central warehouse (clearer communication, waste separation training)
• Investment in employee well-being and satisfaction
• Continuous development approach to information security management, including annual planning, identity management, auditing, and training.
• Strict supplier selection process, including audits and adherence to codes of conduct.

Supply Chain Management

Supplier Audits: 100% of tier one suppliers in high-risk countries audited in 2022 (amfori BSCI)

Responsible Procurement

• Musti Group Supplier Code of Conduct
• amfori BSCI Code of Conduct (for high-risk countries)
• Supplier visits to ensure compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in consumer behavior towards climate-friendly consumption

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: WWF Green Office (Head Office)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SMAAK product range (locally produced with renewable energy and locally sourced raw materials)
• Gaia Accessories brand (natural, recycled, and organic raw materials)
• Resploot Accessories brand (recycled PET bottles)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Pets and their parents
• Employees
• Communities
• Responsible supply chain
• Reducing environmental impact
• Good governance and high ethics

Environmental Achievements

• 100% of Musti Group’s electricity consumption at warehouse operations and operations in Sweden came from renewable sources.
• Specific energy consumption of warehouses decreased by approximately 22.8% compared to the previous year.
• Central warehouse recycling rate was 65%, recycling 388 tonnes of cardboard and paper and 84 tonnes of plastic.
• Reduced the use of plastic bags in Finland stores from 1.1 million per year to 0.53 million per year.

Social Achievements

• Employee turnover was 16.7% (FY2022: 17%).
• Employee satisfaction index raised to 83% (FY2022: 81%).
• Fairness Index was 70.7% favorable.
• 164 Musti Group employees took Pawternity leave (FY2022: 34).

Governance Achievements

• Achieved an AA rating in the MSCI ESG Rating Index.
• 76% of all employees had completed the Code of Conduct e-learning course (FY2022: 60%).
• No reported cases of misconduct (FY2022: 0).

Climate Goals & Targets

Environmental Challenges

• High employee turnover in the retail industry.
• Long-term sickness and absence from work.
• Potential risks related to employee matters (treatment of young workers, discrimination, harassment, accidents).
• Reducing emissions from own operations and supply chain.
• Reducing waste and improving recycling.
• Ensuring supplier compliance with Musti’s requirements on responsible business practices.

Mitigation Strategies

• Supporting job rotation and flexible working conditions.
• Investing in employee well-being and satisfaction.
• Implementing work plans and monitoring and assessment systems to foster equality and inclusion.
• Setting targets to reduce CO2 emissions and have significant suppliers set their own emission reduction targets.
• Improving recycling rate at the central warehouse.
• Implementing a new way of collecting customer feedback data at the stores.
• Requiring suppliers to meet the provisions of the Musti Group Supplier Code of Conduct and amfori BSCI.

Supply Chain Management

Supplier Audits: 100% of tier one suppliers in risk countries audited by amfori BSCI in FY2023.

Responsible Procurement

• Musti Group Supplier Code of Conduct
• amfori BSCI Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Increasing distribution costs due to use of fossil fuel
• Failure in reducing waste
• Changes in consumer behavior towards climate-friendly consumption

Opportunities

• Increased demand for locally and sustainably produced pet food

Reporting Standards

Frameworks Used: Non-Financial Reporting Directive (NFRD), Finnish Accounting Act, EU Taxonomy Regulation, UN Global Compact

Certifications: FSSC 22000, ISO 14001, WWF Green Office

Sustainable Products & Innovation

• SMAAK brand (locally produced, renewable energy, locally sourced raw materials)
• Gaia brand (natural, recycled, and organic raw materials)
• Resploot Accessories brand (recycled PET bottles)