TO THE FORE
OF OUR BRANDS’ CLOTHES
IN 2021 WERE PART OF
ECO AWARE COLLECTIONS
WOMEN WE EMPLOY
AT MANAGERIAL LEVEL
AT LPP HEADQUARTERS
OF OUR BRANDS’ CLOTHES
IN 2021 WERE PART OF
ECO AWARE COLLECTIONS
WOMEN WE EMPLOY
AT MANAGERIAL LEVEL
AT LPP HEADQUARTERS
Since 2017, we have published comprehensive annual reports in which we explain our objectives and commitments. In them, we also show financial results and describe the environmental and social impacts of our activities. Each report is a compendium of knowledge about LPP, our business model and the impact we have on the lives of our employees, members of local communities and the environment. It is also an excellent basis for verifying our progress in achieving the objectives we have adopted. This year’s report formula is contained in 3 documents: the Sustainability Report, the ESG Fact Sheet containing a summary of the most important figures on the LPP Group and the Climate Report prepared using the TCFD recommendations.
Today nearly one third of transactions at LPP brands are online purchases. Over the year we have consistently improved our technological and logistical solutions to meet customer expectations. Regardless of the pace of change, we did not let up on implementing our business strategy and sustainable development. We knew that consistent and successive development in the spirit of the omnichannel model, with full development of the digitalisation of our business and with respect for the LPP’s immediate and distant surroundings, is a good and sure signpost on the road to further growth.
After a difficult 2020 and numerous lockdowns, customers were eager to visit our shops – both brick and mortar, as well as online. We have almost halved our distribution network. We launched further projects to build logistics facilities. We separated a distinct IT company from our structures – Silky Coders. We also introduced the first Reserved mobile application for our customers, and at the beginning of the year we accelerated the implementation of RFID technology in the Mohito, Cropp and House brands.
3 design offices in Poland
(Gdańsk, Cracow, Warsaw)
Over 300 designers,
5 diverse brands
from Asia and Europe
2 representative offices in Asia
(Shanghai and Dhaka) to support
the manufacturing process
Ca. 7% of LPP collections are
produced in our close neighbourhood,
while ca. 93% are produced in Asia
We do not own any
371 thous. m2 of combined
Distribution Centres in Poland
Over 41m e-commerce orders
fulfilled in the reporting year
Our collections are available
in 39 countries on 3 continents
(at physical stores and online)
2,244 stores with the combined
space of 1,888,000 m2
across 26 countries
Online sales in 33 countries
Almost 412m items of
clothing sold annually
In the financial year 2021/2022, we underwent a deep technological, logistic and sales transformation. The strategy of empowering an omnichannel organization is an effective response to the challenges of doing business in post-covid times, as evidenced by our results.
LPP’s good practices and initiatives for responsible business are recognised in numerous competitions and rankings. We regard the awards and distinctions we have been granted both as recognition of our efforts and motivation to continue working towards implementing the highest standards of sustainable development in our organisation and value chain. We are proud to present the results of the competitions and rankings in which LPP was awarded in the 2021/22 financial year.
The Company Climate Awareness Survey is designed to assess the awareness of large and medium-sized companies regarding their impact on climate change. The analysis covers information from annual reports of companies listed on the Warsaw Stock Exchange. Only a few companies manage to meet the requirements which will apply to all enterprises after the EU Corporate Sustainability Reporting Directive (CSRD) enters into force.
The ‘Silver CSR Leaf’ – a distinction awarded based on an assessment of such areas of an organisation’s activity as: corporate governance, human rights, behaviour towards employees, environmental protection, customer care, business honesty and social involvement.
The Best Office in the Tri-City title in the Office Superstar competition for the new LPP office building in Gdańsk. The jury appreciated, among others, the combination of tradition and modernity in architecture, as well as the use of elements supporting employee welfare and user experience, spatial and material-related solutions implemented in the building.
Distinction in the “Innovation and Technology” category of the Office Superstar competition for the new LPP office building in Gdańsk. The jury appreciated the pro-environmental solutions applied in the building.
The oldest and at the same time the most prestigious ranking on the Polish capital market evaluates companies based on the criteria of ‘main ranking and investor relations’.
The title of the Climate Aware Company in the 3rd edition of the survey by the Association of Stock Exchange Issuers, the Reporting Standards Foundation and Bureau Veritas Polska.
In the CDP Climate Change 2020 study conducted by the international organization Carbon Disclosure Project, LPP received a high “B−” rating.
Sustainable fashion, reducing environmental impact and social responsibility – these are the key words that guide us when we plan and make decisions – from the micro to the global ones. At every step we take care to act fairly, which is appreciated by our employees, co-workers, contractors and customers. But most of all, we want our planet to feel the difference.
In 2021, we joined two important initiatives working to reduce negative environmental impacts in the supply chain:
Our climate management and carbon footprint reduction initiatives were recognised with a high score in the international CDP Climate Change 2020 ranking.
product and production
plastics under control
in LPP buildings in Poland
Thanks to the Control Tower project, we implemented the carton standardization process. We have reduced the consumption of collective packaging and its reuse in the process of distributing goods to stationary stores. The reusability of cardboard boxes has increased from 10% to 50%. In the last six months alone, we have thus recovered nearly 900,000 jobs. cardboard boxes, thus saving 17,000 trees from felling.
Our stakeholder map allows us to implement diverse forms of stakeholder engagement. Dialogue with each of them is important to us and significantly influences ESG decision-making processes and the non-financial reporting process. In the area of customer care, we outsource production to carefully selected suppliers, taking particular care to respect ethics and human rights at workplaces. We have implemented numerous regulations and procedures in our companies to ensure a single standard for hiring and building relationships with employees. We also continuously take care of our social involvement through numerous activities of the LPP Foundation, which provides real help to people in difficult life situations and socially excluded youth. At the same time, the Foundation coordinates numerous voluntary grassroots activities and implements projects for the benefit of the local community as well as ecology and environmental protection.
We have been developing for years based on cooperation with proven and trustworthy suppliers. The framework of our partnership is governed by the LPP Quality Guidebook, which defines the quality standards of our products, and the proprietary LPP Code of Conduct, which sets health and safety standards.
Each supplier is obliged to comply with the guidelines of the Code. The document takes into account the International Labour Organisation conventions and the Universal Declaration of Human Rights. It also obliges the suppliers to care for the environment. We take care of the quality of cooperation with our partners by introducing control solutions in the supply chain. We pay particular attention to disseminating our standards among suppliers and verifying their compliance with them.
The year 2021 was a time of intensive growth for the LPP Group, which necessitated recruitment on a huge scale. We also conducted a significantly higher number of internal recruitments than ever before in our history. Our employees took part in recruitment for all levels of positions – from specialist to director.
The dynamics of changes taking place in organisational structures resulted in a number of actions to maintain the efficiency of recruitment processes, employee induction and development, as well as team building and management.
We know that the answer to rapidly changing conditions is only continuing education that develops employee potential and supports their motivation. Effective training is that which responds directly to the current problems and challenges faced by teams.
LPP Foundation carries out projects in 3 key areas: prevention of social exclusion and activities for the local community, health care, ecology and environmental protection.
The main beneficiaries of the Foundation’s social activities include children and young people from children’s homes, people threatened with social exclusion, the sick or disabled, people in crisis of homelessness, victims of disasters or natural disasters.
We also support social projects organised in the immediate vicinity of LPP. In 2021, the LPP Foundation made donations totalling over PLN 1.6 million. This amount includes financial donations, donations in kind, employee volunteering (including the mini-grant competition), substantive partnerships or original social programmes. Every year the scope and range of support provided by the LPP Foundation is growing.
For the LPP Group, the year 2021 was a time dedicated to actions ordering our approach to ESG. As a result, the CEO of LPP is directly responsible for setting climate action and targets, approving projects and initiatives to reduce greenhouse gas emissions and defining the work of the ESG department. Risk assessment, including ESG risks, in particular those related to climate, is under the responsibility of the Vice President of the LPP Board.
In addition, board members participate in regular briefings on ESG and sustainability issues, prepared on behalf of LPP by expert external entities. Board representatives are also actively involved in the development of the ESG management approach. As a result, the Supervisory Board receives regular and comprehensive information from the Management Board on the company’s ESG-related activities and can issue an opinion on them.
Seeing the enormity of the challenges that still lie ahead in the implementation of the sustainability strategy and the implementation of the ESG model, in December 2021 the LPP board created the position of Director of Procurement and ESG. His/her responsibilities include planning and coordinating the implementation of responsible business standards in the LPP Group, developing and implementing guidelines in all three ESG pillars: environmental, social and corporate governance.
The Director of Procurement and ESG reports directly to the CEO of LPP. Supporting the Board and the Director of Procurement and ESG in defining ESG objectives and policies is the ESG Committee, which includes, for example, the directors of our company’s key business units.
We strive to ensure transparency in our operations and clear communication with all our stakeholders. The activities of LPP SA, which is the parent company of the LPP Group, are regulated by a number of documents. For example, we comply with the new principles of corporate governance, entitled The ‘Code of Best Practice for WSE Listed Companies 2021’ (DPSN, Principles of Corporate Governance), which the WSE announced in 2021. The activities of LPP SA, which is our parent company in the LPP Group, are regulated in particular by:
The LPP Integrated Reports, which present non-financial and financial results for LPP SA and the LPP Group, have been produced since 2017 and initially cover the calendar year. In 2019, data, as an exception, came from 13 months (from 1 January 2019 to 31 January 2020). The 2020 report covers the period from 1 February 2020 to 31 January 2021.
The switch in reporting from the calendar year to the financial year, which ends on the last day of January, increases the usefulness of the reports as this treatment better captures the seasonality of the business. Accordingly, the latest report for 2021 also covers the financial year, i.e. the period from 1 February 2021 to 31 January 2022.