Climate Change Data

Otto Group

Climate Impact & Sustainability Data (2013-03 to 2015-02, 2021-2024, 2023-24)

Reporting Period: 2013-03 to 2015-02

Environmental Metrics

Total Carbon Emissions:248,101 tCO2e/year (absolute); 224,149 tCO2e/year (adjusted)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:281,178 MWh/year
Water Consumption:208,265 m3/year
Waste Generated:35,018 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Resource conservation
  • Labor standards
  • Supply chain transparency
  • Diversity & Inclusion

Environmental Achievements

  • Increased share of sustainable cotton to 11% (from 7% in 2013)
  • Increased share of FSC-certified timber in furniture to 33% (from 26% in 2013)
  • Increased share of FSC-certified gravure print paper to 18% (from 8% in 2013)
  • Reduced adjusted CO2 emissions by 24% versus 2006 baseline

Social Achievements

  • Expanded Social Programme to include more suppliers and factories
  • Integrated 17% of suppliers into the Social Programme (aiming for 100% by end of 2015)
  • Launched 'Boost Your Career' development program for female talent
  • Improved Health Index to 64 (up 1 point from previous year)

Governance Achievements

  • Established Sustainable Supply Chain Management Board in 2014
  • Linked Executive Board remuneration to CR Strategy 2020 target achievement

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 100% sustainable cotton in own and licensed brands by 2020
  • Achieve 100% FSC-certified furniture by 2020
  • Achieve 50% FSC-certified paper for catalogues by 2018
  • Reduce CO2 emissions by 50% by 2020 (vs. 2006 baseline)
Short-term Goals:
  • Integrate 100% of suppliers with factories in risk countries into the Social Programme by end of 2015

Environmental Challenges

  • High ecological impacts and social risks in raw materials processing
  • Complexity and opacity of global supply chains
  • Limited influence over upstream suppliers
  • High social risks in final production, particularly in risk countries
  • Need to improve transparency and data collection across the supply chain
  • Balancing sustainability goals with cost and customer price sensitivity
Mitigation Strategies
  • Implementation of impACT sustainability management process
  • Development of Textile, Furniture, and Paper Strategies
  • Implementation of the Social Programme
  • Climate Strategy to reduce CO2 emissions
  • Development of Supply Chain Database
  • Collaboration with industry initiatives (BSCI, CPI 2, Bangladesh Accord)
  • Use of Eco Facts labels to improve product transparency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Group Directive Sustainability in Procurement
  • Codes of Conduct for Merchandise and Non-Merchandise Goods and Services
  • BSCI membership

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, crop failures, raw material scarcity
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 (Core option), UN Global Compact

Certifications: ISO 14001 (at some locations), TIP (Hermes)

Third-party Assurance: PricewaterhouseCoopers (PwC)

Sustainable Products & Innovation

  • Energy-efficient appliances
  • FSC-certified furniture
  • Sustainable cotton textiles

Awards & Recognition

  • German Federal Government's CSR Award (2014)

Reporting Period: 2021-2024

Environmental Metrics

Total Carbon Emissions:9.4 million metric tons CO2e (FY 2021/22)
Scope 1 Emissions:68,528 tonnes CO2e (FY 2021/22)
Scope 2 Emissions:116,147 tonnes CO2e (FY 2021/22)
Scope 3 Emissions:7,378,760 tonnes CO2e (FY 2021/22)

ESG Focus Areas

  • Climate
  • Sustainable Materials
  • Supply Chain
  • Circularity
  • Empowered Employees
  • Conscious Customers
  • Digital Responsibility

Environmental Achievements

  • 100% sustainable packaging by 2023 (extended until 2024)
  • Circular solutions implemented for 15.6 million products in 2023

Social Achievements

  • Successful validation of near-term Science Based Target (SBT) by SBTi in February 2024
  • Initiated climate protection projects “Scalezero” and “Clean by Design” in the supply chain in 2023

Governance Achievements

  • Executive Board members’ variable remuneration linked to sustainability goals since 2014/15 financial year
  • Established a Sustainability-Linked Finance Framework aligned with SLBP and SLLP

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions along the entire value chain by 2045
Medium-term Goals:
  • Absolute scope 1 and 2 GHG emission reduction by 42% by the end of FY 2030/31
  • At least 50% third-party brands and marketplace partners by spend covering purchased goods and services set science-based target by the end of FY 2027/28
Short-term Goals:
  • 65% "preferred fibers" by 2025
  • 100% FSC®-certified furniture products by 2025
  • 100% sustainable catalog paper, of which at least 70% FSC® by 2025

Environmental Challenges

  • Supply chain related emissions are the largest source of total emissions and are the most challenging to reduce due to indirect control
  • Achieving targets requires constant engagement with suppliers, especially 30,000 marketplace partners
  • Limited direct influence on marketplace partners and product production
Mitigation Strategies
  • Constant supplier engagement
  • Increasing supplier awareness and knowledge of scope 3 GHG emissions via trainings, e-learning and guidance
  • Collaboration with suppliers and support through action plans, capacity building, training programs
  • Monitoring progress and establishing reward systems
  • Reinforcing suppliers by steering of their portfolio and brands, preferred onboarding, setting minimum requirements, incentivizing SBT partners via better placements on platform

Supply Chain Management

Responsible Procurement
  • Compliance with legal requirements
  • Socially responsible and resource-efficient production
  • Respecting human rights
  • Use of Higg FEM questionnaire for strategic textile suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Increased cost of raw materials
  • Increased carbon prices
  • Risk of license losses for suppliers

Reporting Standards

Frameworks Used: GHG Protocol, Science Based Targets initiative (SBTi), Sustainability-Linked Bond Principles (SLBP), Sustainability-Linked Loan Principles (SLLP)

Third-party Assurance: External assurance provider (specified in annual report)

Reporting Period: 2023-24

Environmental Metrics

Total Carbon Emissions:9.4 million metric tons CO2e (2021/22)
Renewable Energy Share:41% globally, 65% in Germany (2023)

ESG Focus Areas

  • Climate
  • Sustainable Materials
  • Supply Chain
  • Circularity
  • Empowered Employees
  • Conscious Customers
  • Digital Responsibility

Environmental Achievements

  • Increased share of more sustainable packaging from 78% in 2022 to 94% in 2023.
  • Increased share of preferred fibers in textiles from 55% in 2022 to 59% in 2023.
  • Achieved 100% sustainable cotton target in own and licensed brands (97% in 2023).
  • Converted all OTTO shipping bags to Wildplastic®.
  • Hermes Germany achieved zero-emission deliveries in Hamburg.
  • Recycled more than 43,000 tons of used electronic equipment.

Social Achievements

  • Launched second-hand online shop at Limango.
  • Introduced “Fits Me Guarantee” at Sheego for exchanging clothes.
  • Implemented DigiPac project, eliminating 7.7 million printed delivery slips.
  • Provided occupational safety training to employees of final production manufacturers in Bangladesh and Pakistan.
  • Participated in the Partnership for Sustainable Textiles’ “Living Wage Lab”.

Governance Achievements

  • Executive Board members’ variable remuneration linked to sustainability goals since 2014/15.
  • Extended remuneration structure adjustment to Hermes Fulfilment Executive Board.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions throughout the value chain by 2045.
Medium-term Goals:
  • Achieve climate neutrality by 2030 for own locations, transportation, etc.
  • Increase traceable cotton to 25% at Bonprix by 2025.
Short-term Goals:
  • Reduce adjusted CO2e emissions by 40% by 2025 (compared to 2018).
  • Achieve 65% “preferred fibers” by 2025.
  • Achieve 100% FSC®-certified furniture products by 2025.
  • Achieve 100% sustainable catalog paper by 2025.
  • Achieve 100% sustainable packaging by 2024.
  • Deliver parcels without local emissions in 80 German cities by 2025.

Environmental Challenges

  • Supply chain disruptions and geopolitical conflicts impacting human rights and environmental performance.
  • Decreasing availability of FSC®-certified wood in some EU countries.
  • Complexity of supply chains and business models in relation to the German Supply Chain Due Diligence Act (LkSG).
  • Uncertainty and ambivalence among customers regarding sustainability in fashion.
Mitigation Strategies
  • Increased transparency in supply chains.
  • Collaboration with business partners and stakeholders.
  • Development of pilot projects like “Scalezero” and “Clean by Design”.
  • Implementation of the German Supply Chain Due Diligence Act (LkSG).
  • Regular customer insights and communication to address customer concerns.

Supply Chain Management

Responsible Procurement
  • Group Guideline on Sustainability in Purchasing
  • Business Partner Declaration on Sustainability
  • amfori BSCI Code of Conduct
  • Code of Conduct for services and non-merchandise
  • Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased cost of raw materials
  • Higher CO2e prices
  • Risk of losing licenses from suppliers
Opportunities
  • Development of energy-efficient products
  • Increased energy efficiency
  • Switch to green electricity
  • Shifting transport from air to rail and sea

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, Science Based Targets initiative (SBTi)

Certifications: SA8000, amfori BSCI, FSC®, EU Ecolabel, Blue Angel, Nordic Swan, GOTS, Weeelabex

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy use, sustainable materials, waste reduction, and climate protection measures.

Sustainable Products & Innovation

  • Circular Collections
  • Products with sustainable materials (organic cotton, recycled materials, etc.)
  • Home compostable shipping bags (Traceless®)

Awards & Recognition

  • German Sustainability Award (Furniture and Electrical Retail category)