Press-Release | Krasnodar | June 23, 2020
Magnit Presents Sustainability Strategy and Commitments up to 2025
Krasnodar, June 23 2020: Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, has developed a sustainability strategy, which covers all business areas of the Company https://www.magnit.com/en/sustainable-development/our-approach/. Magnit has singled out five priority areas and, for the first time in Russian retail, has set up quantitative and qualitative targets and criteria of their implementation by 2025.
Ten principles of the UN Global Compact and seventeen global goals for sustainable development of the United Nations form the basis of Magnit strategy called "Retail with Purpose". Striving to become a leading Russian retailer in sustainability, Magnit has set ambitious goals that include leadership in the environmental impact reduction in the retail sector, having positive impact on the quality of life of the Russian consumers, becoming a number one employer in the industry, as well as creating a 100% responsible supply chain and the "best in class" Corporate Governance.
Magnit will focus its efforts in five key areas: mitigating environmental impact, developing a responsible supply chain, taking care about employees, supporting local communities and promoting a healthy lifestyle. Each area implies quantitative and qualitative goals up to 2025 and long-term action plans with respect towards all stakeholder groups. Within its sustainability strategy, Magnit will become the first retailer in the Russian market to declare commitments and target indicators. Having achieved those, Magnit is expected to increase the efficiency of the business processes, and have a positive social, economic and environmental impact on society.
Commitments by 2025:
Environment[1]
- 30% greenhouse gas emissions reduction;
- 25% reduction of water and energy consumption;
- 50% food waste reduction;
- 50% private labels and own production packaging are recyclable, reusable or compostable;
- 100% recyclable plastics in own operations is recovered and recycled.
Sustainable Sourcing
- Responsible sourcing for commercial and non-commercial purchases;
- 100% responsible sourcing for socially important product categories;
- 100% responsible own production and agriculture;
- Increase of green packaging;
- Development and partnership programs for local suppliers and farmers.
Employees
- 70% rate of employee satisfaction;
- 50% lost time incidents rate reduction and zero fatalities;
- Max 40%turnover rate.
Communities
- 10% employee volunteers;
- Community programs for all the regions of the Company's presence.
Health and Wellness
- Information about healthy lifestyle and nutrition is available to all our consumers;
- Health related products are available to all our consumers.
The sustainability strategy of the Company rests on fair business principles, environmental stewardship, diversity and inclusion, respect for human rights, partnerships, and responsible marketing.
The Company has published a set of corporate regulatory documents that declare Magnit's main principles and approaches to different areas of sustainable development https://www.magnit.com/en/sustainable-development/policy-and-documents/. Thus, for example, the Company's Policies in the area of charity, quality, human rights and other basic documents are now available for public access. A special Sustainability Steering Committee, consisting of representatives of all key units of the retailer, will be established in Magnit in order to manage sustainable development.
Together with the strategy, Company has presented first Magnit PJSC 2019 SUSTAINABILITY Report made in accordance with the GRI international standards https://www.magnit.com/en/sustainable-development/non-financial-performance-indicators/. The Document describes non-financial activities of the chain and a set of events implemented within the reporting period. The Company plans to issue non-financial reports annually.
"Magnit is one of the largest Russian retailers with close to 21,000 stores located in more than 3,700 localities and employing about 300,000 people across the country with almost 16 m customers every day. The huge scale of our business and its impact on the society make sustainability an extremely important part of our long-term business strategy. We are ready to improve our efficiency in order to achieve positive changes and unite our efforts with our industry partners, suppliers and experts in order to share best practices for the benefit of our consumers, employees and the society in general," - commented Jan Dunning, President and CEO of Magnit.
For further information, please contact:
Dmitry Kovalenko
Director for Investor Relations
Email: dmitry_kovalenko@magnit.ru
Office: +7 (861) 210-48-80
Dina Chistyak
Director for Investor Relations
Email: dina_chistyak@magnit.ru
Office: +7 (861) 210-9810 x 15101
Media Inquiries
Email: press@magnit.ru
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2020, Magnit operated 38 distribution centres and 20,860 stores (14,594 convenience, 472 supermarkets and 5,794 drogerie stores) in 3,718 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS results for FY 2019, Magnit had revenues of RUB 1,369 billion and an EBITDA of RUB 147 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.
Forward-looking statements:
This document contains forward-looking statements that may or may not prove accurate. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.
