INTEGRATED REPORT FOR 2020/21 - Responsible decisions in a new reality - LPP S.A.
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INTEGRATED REPORT
FOR 2020/21
Responsible decisions in a new reality
TIMELINE
May Start of the construction
2020 Publication of the Integrated of the Distribution Centre in
Report for 2019/20. Brześć Kujawski is confirmed.
February
LPP sales hit a new all-time
End of the spring lockdown. Presentation of the benefits
high: the company’s 2019
Gradual reopening of psychical of investing in the development
sales reach PLN 9bn, while
stores in different markets. of the omnichannel model at
its contribution to the Polish
LPP during the 5th edition of
government budget exceeds
June the Made in Poland conference.
PLN 1bn.
LPP is awarded the Silver
CSR Leaf by the editorial LPP’s Integrated Report wins
The extension of the
board of Polityka magazine. the main prize in the Social
Distribution Centre in Pruszcz
Reports 2020 competition.
Gdański is completed.
Reserved, Mohito and Cropp
donate over PLN 240,000 from Reserved opens a 1,400 m2
March
the sales of their Eco Aware store in Dubai’s largest
Lockdown caused by the
and Joyful collections to hos- shopping centre, Dubai Mall.
pandemic. Restrictions on
pitals in the Tricity and Cracow
operations and closures of
to help purchase the necessary November
almost all LPP physical stores
equipment. Conclusion of the LPP wins the Rzeczpospolita
in Poland and abroad.
first edition of #LPPhelps. Total daily’s Eagle of Innovation
assistance provided reaches award in the Corporate catego-
The Union of Polish Retail and
PLN 5.7m. The campaign has ry for the implementation of the
Services Employers (ZPPHiU)
benefited 300 entities. RFID technology by Reserved.
is founded with the aim to
save Polish firms during the
July The company is awarded the
pandemic crisis.
LPP’s new fulfillment centre Green Eagle (the first prize
opens in Slovakia to cover in the Corporate category)
The largest charity campaign
the region of Central Europe. by the editorial board of the
in the company’s history,
Rzeczpospolita daily as part
#LPPhelps, is launched to sup-
Successful implementation of their Walka o Klimat
port the medical services fight-
of the PayPo service that (The Cilmate Fight) project.
ing with the COVID-19 pandemic.
allows customers to postpone
payment for their online
purchases.
August
LPP joins the global initiative
Zero Discharge of Hazardous
Chemicals.
September
The company becomes
a member of the Polish Plastics
Pact.
December
Summary of the first year of the
LPP is named a Climate Aware
new sustainable development
Company in the 2nd edition of
strategy’s implementation.
Reserved debuts its new col- a study carried out by the Stock
lection Joyful #EcoAware made Exchange Issuers Association,
Relaunch of the #LPPhelps
entirely of organic and recycled Reporting Standards Founda-
campaign: hospitals in Pomera-
materials. tion and Bureau Veritas Polska.
nia and Cracow receive in-kind
and monetary assistance worth
April The LPP Foundation wins
PLN 1.2m.
The beginning of an effort that the title of Benefactor of the
will result in the production Year awarded by the Academy
of 750 thousand face masks by for the Development of Philan- 2021
Polish sewing plants collaborat- thropy in Poland.
ing with LPP. The masks will be January
donated by LPP to the Industri- October The first new building of the
al Development Agency which The Semper Simul Foundation expanded LPP Fashion Lab
will distribute them to those acquires the majority stake in complex opens. The office
who needed them most. LPP which guarantees stability space of LPP’s central head-
at the company’s helm and the quarters in Gdańsk doubles
LPP’s ultra modern office implementation of its strategy. in size.
building for Mohito and House
designer teams in Cracow
is completed.
01
LPP. INTEGRATED REPORT FOR 2020/21
CONTENTS
THE PRESIDENT’S MESSAGE | 4
1
LPP PROFILE AND
2
CREATION,
3
PARTNERSHIP
4
#LPPHELPS | 128
5
RESULTS | 142
6
BACKSTAGE: HOW
BUSINESS MODEL | 4 PRODUCTION AT WORK | 96 4.1. LPP social engagement OUR ECONOMIC,
THIS REPORT WAS
1.1. About the company | 8 AND SALES OF OUR 3.1. Our style of working | 98 | 130 ENVIRONMENTAL
PREPARED | 160
1.2. Our Business Model | 18
COLLECTIONS | 46 3.2. Work during the COVID-19 AND SOCIAL IMPACT | 144 6.1. Approach to reporting
2.1. Our brands | 48 4.2. Neighbourly relationships
1.3. The organisation’s external pandemic | 107 | 162
| 138 5.1. Contributions to the Polish
environment | 37 2.2. Sustainable fashion priorities 3.3. Human rights and diversity budget | 146 6.2. Indices and tables | 164
| 58 | 112 4.3. Education for Sustainability
1.4. LPP in the face of the
2.3. The Eco Aware standard in Fashion | 140 5.2. Key non-financial
COVID-19 pandemic | 40 3.4. Workplace principles | 116
disclosures | 147
| 69 3.5. Development at LPP | 118
2.4. Design and production 5.3. Financial results | 152
3.6. Occupational health
| 76 and safety | 124 5.4. Comments on the financial
2.5. Omnichannel: Logistics results | 158
and Sales | 83
2.6. Consumer satisfaction | 91
EXTERNAL
ASSURANCE | 175
LET’S STAY
IN TOUCH | 180
02 03
LPP. INTEGRATED REPORT FOR 2020/21 | THE PRESIDENT’S MESSAGE
able development strategy. In the midst of started running low on equipment, PPE and
RESPONSIBLE a struggle for survival, prolonging store closures
and general uncertainty and instability, many
would probably decide to give up on them.
spare clothing for the personnel. We received
more requests for assistance each day. Could
we have stayed indifferent in the face of this
DECISIONS We chose to stand up to the difficult challenge.
As a consequence, 2020 brought us many
reasons to be proud: despite the crisis we
tragedy? We were under no illusion that a fight
for what is most important to us was unfolding
before our eyes. Without a moment’s hesitation,
IN A NEW REALITY managed to fulfil some of the targets to
a greater degree than we originally planned.
Throughout the last years we gradually
we launched the biggest social campaign in our
history, #LPPpomaga (#LPPhelps). In total, we
provided assistance to as many as 300 facilities
increased the proportion of eco-friendly across Poland thanks to the largest employee
collections in the our brands’ portfolio. volunteering effort in our history. We distributed
Currently almost 19 % of the garments they PPE among hospitals and non-medical facilities,
Last year, unexpectedly, we have found our- nel. And what are positive buying experiences if offer have the Eco Aware label; in the case while the hears of our staff glowed with
selves in a new reality in which we gave voice not satisfaction with the product, its availability, of Reserved as many as one in three items the will to help those in need. They sewed
to the word “social sensitivity” more often than alignment with customer expectations or speed are made in a sustainable manner. scrubs and face masks. Each day, new shipments
ever before. The pandemic triggered in us the of service. We could make it all happen thanks We did not falter in our enthusiasm to limit were sent to those who needed them most.
need to become more responsible in many to the innovativeness, talent and experience of the use of plastics in our retail and distribution We made donations to help buy the most vital
aspects of our everyday work: more responsible our employees whose ambition and fire did not networks. Mohito and Reserved completely equipment needed to fight the consequences
for our company in order to ensure its safety falter for a moment through that difficult time. eliminated plastics from their online orders of the pandemic. Overall, the assistance we
and stability, more responsible for our workers Our teams fought simultaneously on a few packaging. The other brands used recycled provided amounted to a few million Polish zloty.
in order to protect their jobs, and more respon- fronts. The logistic team focused on adjusting plastic film only. This way, in the course of Today I know and can proudly state that we
sible for our business partners who were strug- our distribution network to the modified sales 12 months we saved another 300 tonnes did the almost impossible. Our energy, ambi-
gling to survive in the face of the pandemic. model. Practically overnight, they adapted our of single-use plastics. This doubled our 2019 tion and the strength of our teams bore fruit.
During those first, tremendously dangerous physical sales distribution centre to service record and amounts to as many as 570 tonnes We managed to save our company and almost
months of lockdown, I kept asking myself: where online shopping. At the same time, our IT of plastic saved in our logistic processes during all jobs. We completed projects that make our
in all this is social responsibility which many specialists worked to increase the capacity the last 4 years. business even more sustainable, while helping
businesses simply could not afford. Can you of our Internet platforms which were experien- This difficult time also saw us join inter- hundreds of institutions fight what took control
remain a responsible and sustainable business cing an embarrassment of riches when our national and national initiatives for closed- of our world – the pandemic. This is a com-
while you are fighting to survive? This difficult stores remained closed. Here, technology came -loop economy and chemical safety. We were pletely new reality which none of us could have
year was a true test for people and companies. to our aid. We moved our platforms into a cloud the first Polish company to become a part expected. How responsible were our actions and
That is why, in what is our fourth integrated to achieve better flexibility and scalability. We of Zero Discharge of Hazardous Chemicals, could we have acted differently? You can find
report we decided to talk how much we value bolstered up our customer service by imple- an international initiative aiming to reduce the that out in our report “Responsible decisions
social sensitivity in unpredictable times and how menting a chatbot which was able to quickly negative impact of the global clothing industry in a new reality”. I am certain that it will provoke
responsible our last year’s decisions had to be. handle all inquiries. We fitted our warehouses on the natural environment and ridding it a lot of thought in every reader and, most of all,
For years we have talked about LPP values with AI solutions to achieve make the fulfilment of hazardous substances. A month later we show you a new perspective of looking at the
being supported by 4 pillars: energy and inner of online orders as fast as possible. joined the Polish Plastics Pact, a multisectoral world around, at us and at our wonderful teams,
fire which fuels us to act (fire-fuelled), ambition On a different front, our sales and design platform of collaboration between companies which I can unashamedly call the heroes of the
that drives us to become better and better teams analysed how the pandemic affected and organisations acting to change the current previous year. Thank you for all you achieved.
(ambition-driven), responsibility for ourselves the preferences of our customers who modified model of plastics use in packaging in the Polish
and our environment (socially-responsible) and their lifestyle and, consequently, their manner market and moving towards a closedloop cycle. Marek Piechocki
team spirit (team-oriented). None of us could of dress overnight. Our efforts were noticed. We were proud to
have imagined that all of these values would Each day was bringing new information be named the second most climatically aware
be confronted with such a gruelling test last and the reality was surprising us constantly. company in Poland in September 2020. This
year. Today, I can proudly say that we passed We knew one thing – we had to survive and shows that our actions are seen, and that they
it despite all the unknowns. save as many jobs as possible. As the Manage- are needed and appreciated. We know that it
In the face of the pandemic which froze ment Board, we were faced with the extremely is just the beginning of our long way to achieve
physical sales – the pillar of LPP’s operations – difficult decision of reducing the salaries of our the next targets in our strategy but fighting
for a part of the year, our teams put up a tough employees who were so bravely fighting for the for the society and our planet are becoming
and responsible fight to save our company. company. Me and other members of the Board, an important element of our strategy today.
We secured the effectiveness and elasticity we gave up our salaries altogether. What Despite the difficult test we were put to by
of the e-commerce channel which absorbed is more, for the first time in 10 years we did not fate, never did we forget about the world around
most of our clients while our physical stores pay dividend to our shareholders: could you us. Our struggle to save our company was
were closed. This required a significant trans- have made a different decision when our sur- unfolding in the shadow of a ranging pandemic.
formation in terms of organisation, processes, vival was at stake? Healthcare workers were fighting to save our
logistics, technologies and sales. We decided to This was not the last of the dilemmas we lives, nongovernmental organisations were bat-
[GRI 102-14]
speed up LPP’s shift into a fully omnichannel faced, though. All this time, we were aware that tling to save the people in their care, children’s
organisation which prioritises creating positive only a few months before, we had adopted new, homes were finding it impossible to obtain
buying experiences regardless of the sales chan- ambitious targets as part of our latest sustain- enough tools for remote learning, hospitals
04 05
LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1
LPP PROFILE
AND BUSINESS
MODEL
UN Sustainable Development Goals:
In this chapter you will find out:
– how we operate in Poland and abroad,
– how we changed our business model and transformed into a fully omnichannel organisation,
– what is our business strategy and how we fulfil the Sustainable Development Goals,
– what was our economic and social impact in the face of the COVID-19 pandemic.
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LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
LPP in the Polish market and vis a vis the top international clothing-retail companies
Leader in the Polish clothing
7,848.1
market
Revenue in PLN m 5,615.5*
* 13-month financial year 853,4
** Estimations
1.1. 405,7
ABOUT THE COMPANY
205,3**
103,6**
LPP vis a vis the top 44,651.0
international clothing-
-retail companies 20,402.0
Revenue in EUR m
17,795.4
15,852.6
12,017.3
11,648.4
7,982.0
3,722.7
3,517.9
1.1.1. 1,746.3
LPP: KEY FACTS
We are a Polish family company operating in
the clothing industry which was set up 30 years
ago in the region of Pomerania. Ever since its
founding, the LPP has been growing dynamically, The speed and agility with which we work, on the Worker Rights Consortium (WRC) list of this purpose. As a result, faced with the new
increasing its presence in more and more foreign short decision-making processes, openness companies that meet their obligations towards retail reality that followed the outbreak of the
markets and effectively implementing Polish to experimenting and a perspective of suppliers. pandemic, we were able to effectively react to
creative ideas wherever we sew and sell the looking that goes beyond the upcoming In the process of devising our collections, the changing buying habits and fully integrate
collections of our five diverse fashion brands: quarter – all of these allowed us to shift our we would normally attend fashion weeks and our sales channels and the structures that
Reserved, Cropp, House, Mohito and Sinsay. approach to business in a quick and effective follow street fashion in the world’s fashion support them.
Today we operate as the LPP SA Capital Group manner. Today, it is a customer who decides capitals: Paris, New York, Seoul, Tokyo. We We consistently work to fulfil the objectives
(“LPP Group”) consisting of 31 companies. where they want to spend their money, and were forced to modify this approach when of our 2019 sustainable development strategy
LPP products are available to our customers we are determined to offer them products the COVID-19 pandemic broke out and lock- “For People For Our Planet”. We increase the
in 38 markets, and more than a half of the they need and the quality of service they down made it impossible for our experts to proportion of eco-friendly collections, strive
PLN 7,8 bn of our revenue is generated by for- expect regardless of the preferred channel travel. Our designers still draw inspiration from to achieve full chemical safety in production,
[GRI 102-1], [GRI 102-2] [GRI 102-3]
eign sales. Yet, it is in Poland where we develop they choose. Thanks to the full integration runway shows, which nevertheless moved online, eliminate non-recyclable plastic packaging and
our brand concepts and make all the strategic and harmonisation of our sales channels and and explore the preferences of consumers by implement ecologically-sound solutions in the
decisions. Our main headquarters are located in the structures that support them, we were interacting with them on social media. As well buildings of our central headquarters and the
Gdańsk and so are the design departments of able to stand up to the challenges posed as being active in the fields of fashion, art and retail network.
Reserved, Cropp and Sinsay. Mohito and House by the new reality, which at LPP we call the beauty, we are a Fashion Tech company that You will read more about our business model,
collections are devised in LPP’s offices in Cracow. omnichannel. possesses its own analytical resources and an strategy and scale of operations later in this
We are a stable employer and a reliable busi- information technology team the size of those chapter.
ness partner. We employ nearly 22,000 people Marek Piechocki, seen in the largest IT companies in Poland. We
and cooperate with 1,108 suppliers. We were president of LPP have been investing in new technologies for
one of the first clothing producers to make it years. Since 2016 we have spent PLN 180m for
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LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.1.2. 1.1.3.
KEY PERFORMANCE THE LPP GROUP GLOBALLY
INDICATORS
Physical locations and online sales
Physical locations only
Online sales only
[GRI 102-7] [Own measure: Store count and YoY increase for the whole Group.] [Own measure: The Group’s net sales revenue in the reporting year and increase YoY]
PLN
1,856 21,977 7,848m
stores across 25 countries employees all over the world the Group’s net sales
on 3 continents (including 11,578 in Poland). revenue in 2020/21
(6% increase YoY). (-14,9% change YoY).
[Own measure: Retail space in sq. meters for the whole Group and the percentage increase YoY]
Net increase in store
openings
(minus store closures).
1,435,000 PLN
m2 28.4% 2,229m
proportion of e-commerce e-commerce revenue
combined retail space of the
sales in 2020/21. in 2020/21
LPP Group (17% increase YoY).
(106,3% increase YoY).
Table 1.
PLN Nearly
Sales channels across the world (as of 31 Jan. 2021)
Sales channels No. of Markets
233m 826m 93m
markets
[GRI 102-2], [GRI 102-6]
Physical locations 17 Poland, Czech Republic, Slovakia, Hungary, Lithuania, Latvia, Estonia, Russia,
items of clothing and online sales Ukraine, Romania, Croatia, Slovenia, Germany, UK, Finland, UAE, Israel
total investment in the retail transactions in 2020/21.
sold annually.
2020/21 reporting year Physical locations 8 Belarus, Kazakhstan, Bulgaria, Serbia, Bosnia and Hercegovina, Egypt,
(CAPEX). only Kuwait, Qatar
Online sales only 13 Ireland, Denmark, Sweden, Austria, the Netherlands, Belgium, Luxembourg,
Italy, France, Greece, Spain, Portugal, Saudi Arabia
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LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.1.4. 1.1.5.
AN OMNICHANNEL AT THE HELM OF LPP
ORGANISATION
The 2020/21 reporting year saw us becoming Members of the Management Board and their scope of responsibilities in the organisation
a fully omnichannel organisation that harmoni-
ously combines its two sales channels: an inter-
Marek Piechocki
national retail network and dynamically grow- PRESIDENT OF THE MANAGEMENT BOARD, CREATOR AND COFOUNDER OF LPP
ing e-commerce. We managed to successfully
implement original solutions for the optimisation Supervision over the Management Board’s operations Communications
of the processes of managing product availability HR Procurement and sustainable development
and customer orders. Our brands are currently Example product price: Reserved, Cropp, House, Mohito, Sinsay – brand Oversight and development of sales operations
available in 38 markets in Europe, the Asian part development, product development, omnichannel sales
PLN 123
of Russia and in the Middle East. Over 50% of
our sales revenue is generated outside of Poland.
Production cost
Our physical retail network grows systematical- (incl. factory workers’ pay)
ly. The COVID-19 pandemic delayed our debut in PLN 43.1
North Macedonia which will eventually take place
in the 2021/22 reporting year. Yet, our combined
retail space in the other markets increased by 17%
as compared year over year. As of the end of the Store maintenance
reporting period, Reserved stores were present in PLN 36.2
Distribution and
25 countries, including Belarus, where set up our transport PLN 6.1
own stores again. Przemysław Lutkiewicz Jacek Kujawa Sławomir Łoboda
The brand’s
In selected markets (in the Middle East and VAT profit PLN 5.3 VICE-PRESIDENT OF THE MANAGEMENT BOARD VICE-PRESIDENT OF THE MANAGEMENT BOARD VICE-PRESIDENT OF THE MANAGEMENT BOARD
PLN 23
on a smaller scale in Poland) we use franchise Design and
agreements. In the Middle East this is due to administration PLN 4.6 Reporting and taxes IT Lease and expansion
local laws or restricted access to real proper- Corporate Operational controlling Logistics Legal matters
Income Tax PLN 2.5
ties in attractive locations. The franchise stores Financial controlling Administration Market analyses
Tariffs PLN 2.2
meet the same standard and follow the same Shared Services Centre Investment
procedures as LPP’s own stores. In the franchise Management of foreign subsidiaries Data science
markets marketing activities are undertaken Internal audit Customer Service Centre
in line with the global recommendations of our
Investor relations Cyber security
brands, yet with respect for each nation’s culture. We are a driving force of Polish exports.
Office of business travel
We continue to dynamically develop our In the reporting period they were worth PLN
e-commerce operations. In the reporting period, 4.5m. We invest systematically in the company’s
the revenue generated by the channel doubled further growth. We spent PLN 826m on the
as compared to the previous year and amounted development of our retail and office space,
to over PLN 2bn. Our customers may shop for logistics (including the extension of the Distribu- LPP Supervisory Board
our products online in 30 markets, including in tion Centre in Pruszcz Gdański) and new tech-
Western Europe, where we do not have physical nologies in the reporting cycle. Miłosz Wiśniewski
stores. INDEPENDENT PRESIDENT OF THE SUPERVISORY BOARD
Wojciech Olejniczak
VICE-PRESIDENT OF THE SUPERVISORY BOARD
Piotr Piechocki Magdalena Sekuła Antoni Tymiński
Table 2.
MEMBER INDEPENDENT MEMBER INDEPENDENT MEMBER
LPP brands across the world (as of 31 Jan. 2021)
OF THE SUPERVISORY BOARD OF THE SUPERVISORY BOARD OF THE SUPERVISORY BOARD
Reserved Cropp House Mohito Sinsay
The composition of the Supervisory Board
No. of countries: 38 18 18 19 19
physical stores and online sales
changed early in 2021. Jerzy Lubianiec was
[GRI 102-18] [GRI 102-18]
the president of the Supervisory Board until
Physical stores count 440 369 332 278 434 30 December 2020.
New stores count 17 25 24 11 116
Retail space in thousands m2 675 166 147 115 330
[GRI 102-7]
Change in retail space 1.5% 12.3% 15.2% 3.2% 90.3%
as compared to 2019/20
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LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.1.6. Europe, the Balkans and the Middle East. Foreign
LPP SUBSIDIARY COMPANIES subsidiaries are mostly companied responsible
for the distribution of Reserved, Cropp, House,
The LPP Group is formed by 31 companies: Mohito and Sinsay products outside of Poland.
the parent company, LPP SA; 5 Polish subsid- The reporting period saw one change in our
iaries and 25 foreign subsidiaries. LPP SA is in group’s organisation, that is the incorporation We operate on foreign markets through local
charge of the design and distribution of clothing in Poland of LPP Logistics Sp. z o.o. to manage Anna Betlej, companies headed by Country Managers.
in Poland as well as Central, Eastern and Western the logistics for our integrated sales channels. international This way we are closer to our customers
business director and employees in the country in question.
Table 3.
LPP subsidiaries
Name Registered offices Stock
owned
1 LPP Retail Sp. z o.o. Gdańsk, Poland 100% Inese Lebedeva Seija Leppihalme
2 DP&SL Sp. z o.o. Gdańsk, Poland 100%
3 IL&DL Sp. z o.o. Gdańsk, Poland 100% Irina Gromova Kaidi Kask
4 LPP Printable Sp. z o.o. Gdańsk, Poland 100%
5 LPP Logistics Sp. z o.o. Gdańsk, Poland 100%
6 LPP Estonia OU Tallin, Estonia 100% Martin Kanngiesser Natalia Kurishko
7 LPP Czech Republic s.r.o. Prague, Czech Republic 100%
8 LPP Hungary KFT Budapest, Hungary 100%
9 LPP Latvia Ltd Riga, Latvia 100%
Corinne Facey Anna Pilyugina
10 LPP Lithuania UAB Vilnius, Lithuania 100%
11 LPP Ukraina AT Peremyshliany, Ukraine 100%
12 LPP Romania Fashion SRL Bucharest, Romania 100%
13 LPP Bulgaria EOOD Sofia, Bulgaria 100% Tomasz Kucharczyk Aigerim Kalieva
14 LPP Fashion Bulgaria EOOD Sofia, Bulgaria 100%
15 LPP Slovakia s.r.o. Bratislava, Slovakia 100%
16 RE TRADING OOO Moscow, Russia 100%
Patrik Canecky Yarema Ivakhiv
17 Gothals LTD Nicosia, Cyprus 100%
18 LPP Croatia DOO Zagreb, Croatia 100%
19 LPP Deutschland GmbH Hamburg, Germany 100%
Kaja Mežnar Alina Bistreanu
20 IPMS Management Services FZE Ras Al Khaimah, UAE 100%
21 LPP Reserved UK LIMITED Altrincham, UK 100%
22 LLC Re Development Moscow, Russia 100% Ana Babic Asen Dinolov
23 LPP Reserved DOO Beograd Belgrade, Serbia 100%
Aleksandar Jovanović Gabriella Bato
24 P&L Marketing&Advertising Agency SAL Beirut, Lebanon 97,3%
Stevan Miljković
25 LPP BH DOO Banja Luka, Bosnia and Hercegovina 100%
26 LPP Kazakhstan Almaty, Kazakhstan 100%
27 Reserved Fashion, Modne Znamke DOO Ljubljana, Slovenia 100%
28 LPP Finland OY Helsinki, Finland 100%
29 OOO LPP BLR Minsk, Belarus 100%
30 LPP Macedonia DOOEL Skopie, North Macedonia 100%
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LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.1.7. Principles of Corporate Governance). You may 1.1.9. LPP was named a Climate Aware Company
CORPORATE GOVERNANCE find out more about the recommendations AWARDS AND RANKINGS in a Corporate Climate Awareness Study
and detailed principles we follow as well as carried out for the second time in Poland
LPP SA, the parent company in the LPP Group, exclusions in the “Consolidated Annual Report LPP’s good practices and initiatives for respon- by the Stock Exchange Issuers Association,
is listed on the Warsaw Stock Exchange (WSE). of the LPP SA Corporate Group for 2020/21” sible business win numerous competition awards Reporting Standards Foundation and
The company is included in the WIG, WIG20, available on www.lppsa.com in the “Investor and score high on ranking lists. We take these Bureau Veritas Polska. The ranking is based
WIG30, WIG-odzież, WIG-ESG and WIG-Poland Relations” section. distinctions and accolades as a recognition for on a study of 151 reports of large and
indices, as well as MSCI Poland, CECE Compos- our efforts and motivation to continue to imple- middle-sized companies as regards
ite EUR and FTSE Russell, which are important ment the highest standards of sustainable devel- transparent disclosure of information on
for international investors. 1.1.8. opment in our organisation and value chain. We an organisation’s climate change impacts
The basic documents governing LPP SA’s SHAREHOLDER STRUCTURE are proud to present LPP’s 2020/21 competition and incorporation of these issues into the
operations are: and high ranking achievements. management processes. LPP ranked second
• “The Articles of LPP SA”, LPP is a Polish family company which, as Just as in the previous years, our sustainable on the list which proves how important
• “The Internal Rules and Regulations provided for by its founders, will never be development practices were featured in a report a role conscious climate policies play in
of the Management Board of LPP SA”, divided or sold. The controlling interest is owned of the Responsible Business Forum, “Respon- the company’s business strategy and how
• “The Internal Rules and Regulations by two foundations: the Semper Simul (Always sible Business in Poland 2020: Good Practices”. transparent our communications regarding
of the Supervisory Board of LPP SA”, Together) Foundation, which which is closely our proenvironmental projects are.
• “The Internal Rules and Regulations of the linked to Marek Piechocki1, and the Sky
General Shareholder Meeting of LPP SA”. Foundation, which is closely linked to Jerzy
We apply due diligence to make our opera- Lubianiec2. Based on a conditional contract
tions transparent and communicate with the all between the shareholders made in October Awards in the reporting year
the players on the capital market in a clear and 2020, Semper Simul transferred a block of
open manner. In the 2020/21 reporting year LPP ordinary shares to the Sky Foundation and for LPP Shopping Center Forum 2020 Polityka Magazine’s
SA followed the rules of corporate governance acquired a block of preferred registered shares, WNP Awards 2020 Exhibition Awards CSR Leaves
attached to the Resolution of the Board of the becoming the majority shareholder in LPP. The (WNP/PTWP) (Shopping Center Forum / Evigo) (Polityka)
Warsaw Stock Exchange No. 26/1413/2015 operation proves the firmness of LPP’s the long- “For creating a Polish global “Retailer of the Year” “Silver CSR Leaf”
of 13 October 2016 titled “2016 Code of Best terms business intentions and facilitates better brand and actively working
Practice for WSE Listed Companies” (COBP, conditions for its development in the years to for the benefit of the natural Social Reports for the LPP Foundation
come. environment.” (Responsible Business Forum Benefactor of the Year
and Deloitte)
(Academy for the Development
Eagle of Innovation “Integrated report” of Philanthropy in Poland)
(Rzeczpospolita)
“Corporate foundation”
Shareholder structure
“Company” Digital Excellence Awards
(CIONET Polska for the Reserved brand
Voting share at the Stock ownership and Digital Excellence)
Rzeczpospolita’s Green Eagle KTR Competition 2020
General Shareholder Meeting “Digital Capabilities” (Ad Creators’ Club, KTR)
(Rzeczpospolita)
“Firm” “Best of Craft”
32.5% 59.5% 29.0%
Other Semper Simul Semper Simul
shareholders Foundation Foundation
Rankings in the reporting year
1st place / Survey of Investor 2nd place and the title Score B overall and A as
8.0% 14.1%
Relations in WIG 30 of Climate Aware Company / regards: Scope 3 emissions,
Sky 56.9% Sky
Other Foundation Companies Corporate Climate Awareness environmental management
Foundation
shareholders (Polish Chamber of Brokerage Houses) Study and initiatives for carbon
“Best investor relations among
[GRI 102-12] [GRI 102-5] [GRI 102-10]
(Stock Exchange Issuers Association, footprint reduction / CDP
Reporting Standards Foundation,
WIG30 companies according Climate Change 2020
and Bureau Veritas Polska)
to institutional investors” “Company ranking”
(Carbon Disclosure Project)
“Survey of climate awareness
6th place / Corporate Register 8th place / Listed Company among companies, cities, and
Reporting Awards 2020
of the Year regions: on a scale of A (highest
(Corporate Register)
(Puls Biznesu)
score) to F (lowest score)”
“Best Integrated Report” “Main ranking and investor
relations”
1
Article 3(1)(26)(d) of the Market Abuse Regulation.
2
Article 3(1)(26)(d) of the Market Abuse Regulation and Article 4 (15) of the Polish Act on Public Offering.
016 017LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
number of customers walking through our door. up to 100,000 items of clothing daily, while the
People were switching to online shopping out capacity of LPP’s logistics increased by 300%
of necessity or fear for their safety. In the first at the time.
months of the pandemic, we recorded three- In parallel, we launched the implementation
digit growth rates in e-commerce sales, which of strategic Mustang (Multichannel Stock
sometimes were fivefold higher than at the same Management) software and its key element,
time last year. the Defrost project, which makes it possible to
The new reality gave us an impulse to imple- free up store stock for regular online sales. We
ment a range of innovations and greatly sped up want the clients who order online choosing to
1.2. changes we had been intending to introduce in
our company. In the course of three weeks we
collect their purchases in store to know that the
products are ready for pick-up before they shut
OUR BUSINESS MODEL effectuated a transformation planned to unfold
in… three years. As a result, we became a fully
omnichannel organisation that brings together
down their computer. Thanks to Defrost, we can
make better use of the stores when it comes to
filling online orders, drive our last mile delivery
physical sales and e-commerce, while offering costs down at the last mile and attract more
its customers a unique buying experience. people to the stores.
Our first response to the unprecedented We would not have been able to adjust our
grow in online orders was to remodel the Dis- business model to the new COVID-19 retail
tribution Centre in Pruszcz Gdański which to reality in such as smooth and swift manner if we
date had handled bulk deliveries to our stores had not been a Fashion Tech company. For years
into a facility fulfilling individual orders from now, LPP has been consistently investing in
online customers. The adaptation, which took advanced technologies and building its inhouse
just three weeks to complete, included, among IT team, which now compares in size to Poland’s
others, the integration of two WMS platforms biggest information technology companies. We
[Reporting topic: new business model and omnichannel development] [GRI 103-1] [GRI 103-2] [GRI 103-3] [GRI 102-7]
and modification of our stock allocation sys- have developed our own tailor-made solutions
tems. The adjustments allowed us to dispatch that we know inside out.
Since 2016 we have spent over PLN 180m
on IT projects and solutions that support the
key areas of our operations: we implemented
3 weeks – the implementation time
the RFID technology in Reserved, cloud
solutions in online stores and an original logistic
of the transformation platform that integrates the different systems
used by independent shipping companies.
300% – the growth
This way, we built solid foundations for our
successful transformation into an omnichannel
of our logistic capacity organisation. We intend to continue to invest
in advanced technologies and innovations: by
1.2.1. Over PLN 180m 2023 we will have spent another PLN 600m for
this purpose.
GROWTH THANKS TO – our investments in IT projects
OMNICHANNEL APPROACH and solutions since 2016
PLN 600m
– further investments in advanced
technologies and innovations by 2023
Our results:
Jacek Kujawa,
vice-president
of LPP
The COVID-19 pandemic dramatically tipped
PLN PLN PLN
the balance between the sales channels.
Lockdowns were introduced in almost all the
7,848m 3,068m 7,285m
markets where our stores are located. Even in the Group’s net sales revenue equity in the 2020/21 set aside for long-term
in the 2020/21 reporting year reporting year and short-term reserves
places where physical retail outlets remained
and liabilities in the 2020/21
open for the entire time – that is Finland and
reporting year
Belarus – we saw a significant drop in the
018 019LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
Our business model
Our business model is defined by 4 steps:
STEP 1: STEP 2: STEP 3: STEP 4:
DESIGN PRODUCTION DISPATCH AND LOGISTICS SALES
3 design offices in Poland Over 1,100 suppliers from 253,000 m2 of combined
Our collections are available
(at physical stores and online)
38
(Gdansk, Cracow, Warsaw) Asia and Europe warehouse space
Nearly 300 designers
2 representative offices in Asia Distribution centres in Poland and abroad
in countries on 3 continents
1,856
(Shanghai and Dhaka) that support (Russia, Romania, Slovakia)
the manufacturing process
5 diverse brands
stores with the combined
space of 1,435,000 m2 across 25 countries
9% 23m online orders fulfilled
Our designers follow the latest shows in
international fashion capitals (held online
Ca. of our brands’ garments
are manufactured in our close neighbourhood,
while 91% are produced in Asia
in the reporting year
30
Online sales in countries
during the pandemic) and they watch the Apart from appealing collections, customers
developments in streetwear on a continuous
basis. That is how our original collections come We do not own manufacturing plants.
these days pay significant attention to the
quality of logistic service. That is why, we sys-
Almost 233m
sold annually
items of clothing
into being, creatively fusing the season’s trends tematically develop our distribution network.
(colours, patterns and cuts) and the needs of Our collections are sewn by external partners. The Distribution Centre in Pruszcz Gdański is
our customers. We work together with carefully selected one of the most advanced facilities of its kind Seeing as we are a shift in consumer preferenc-
manufacturers in Asia and Europe that produce in this part of Europe. Our other warehouses es and behaviours, as well as universal digitisa-
given designs with the utmost attention are located in Stryków in central Poland, tion and transformation of retail, we are opting
to quality. We pay attention to sustainable Gdańsk, Brześć Kujawski (under construction), for omnichannel. We take a holistic approach
development in the supply chain. Our suppliers and abroad, in Russia, Romania and Slovakia. to both of our sales channels, physical sales
are carefully audited and receive human and We also invest in advanced technologies that and e-commerce, and offer our products
employee rights training. We pay attention to facilitate the process of distributing our prod- through a constantly growing retail network
our suppliers’ environmental impacts. In Asia ucts to our stores and online customers. and online shops. We strive for the highest
we operate through our representative offices. quality of service and introduce advanced
fashion tech solutions to provide it.
Different modes of transport used in the 2020/21 reporting year:
Imports Exports
(shipments to stores and online customers)
Railways Air transport Air transport
2.2% 1.0% 0.6%
Roads
10.9%
Roads
Maritime 99.4%
transport
85.9%
020 021LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.2.3. In the course of three weeks we effectuated
OUR BUSINESS STRATEGY a technological, logistic and retail transformation
planned to unfold in three years! We gave
In 2020/21 we sold The 2020/21 reporting year a new focus to our business strategy for after
was marred by considerable the pandemic. Despite the challenges of the
98,5% market uncertainty caused
by the COVID-19 pandemic.
pandemic, we continued to meet subsequent
targets of our sustainable development strategy
of the collections The world economy, markets “For People For Our Planet”. Sustainable
we marketed.
and supply chains ground to development in line with the principles of
a halt. Thanks to flexible actions, valiant deci- corporate social responsibility remains a priority
sions and financial reserves, the LPP Group suc- of LPP’s business operations.
cessfully managed to adapt to the new reality.
LPP’s paths of development in 2020–2023
1.2.2.
OUR VALUES
Thoughtful Continued Reinforcement and Products that
investments in the digitisation aimed further development fulfil customer
LPP is a Polish family company which has been
development of to support of omnichannel expectations.
creating and selling unique fashion collections
the physical retail omnichannel organisation.
for 30 years now. We are present in 38 markets
network. operations.
in Europe and the Middle East. Our portfolio
consists of five brands, each dedicated for Business foundation: sustainable development
a different group of customers: Reserved,
Cropp, House, Mohito and Sinsay. Our busi-
ness operations rest on lasting values which
help us continuously grow and respond to our
stakeholders’ needs. Challenges:
Our advantages:
• Effective organisational culture: speed and • Economic changes and shifts in customer
Mission Vision agility of operations, short decision-making- buying power as a result of the COVID-19
processes, opens for experimenting and pandemic.
To help our customers to express their emotions Passion drives us forward, making our company taking risks. • New, post-COVID, model of consumer
and realise their dreams through the way they the best fashion retailer in the world. • Omnichannel organisation: full integration behaviour.
look. of the sales channels and the structures • High rates of USD and EUR, and low rates
that support them. of RUB.
• Incorporation of ESG elements into
• Long-standing investments into the develop-
the company’s business strategy.
Our values ment and implementation of advanced tech-
nologies: over PLN 180m invested since 2016,
an IT team of more than 400 professionals Plans for the 2021/22 reporting year:
F A S T who devise innovative solutions for our online
and physical stores. • Double-digit growth in retail space.
FIRE- AMBITION- SOCIALLY- TEAM- • An in-house team of designers and produc- • RFID implementation by other brands:
-FUELLED -DRIVEN -RESPONSIBLE -ORIENTED tion technology specialists and effective Cropp, House, Mohito.
We are full of energy. We seek new We care for our The opinion of each analytical resources: excellent ability to spot • Dynamic rise in online sales.
We are passionate challenges every day closer and further team member is equally megatrends and respond to customer needs. • Further investments: CAPEX estimated
about our business, and strive to be the surroundings. important. We treat • Optimisation of many areas of the company’s at PLN 1,100m.
our brands and our best. We dare for We support our everyone the way we operations and financial reserves that result • Remaining in a secure financial position.
customers. We are more. We expect employees and would like to be treated in a sense of security.
proud to be part of LPP. the unexpected. partners. We listen ourselves. Our actions
to their needs to act are guided by honesty,
in harmony with nature. respect, fairness and
[GRI 102-16]
[GRI 102-15]
tolerance. You will read more about our brands and
sales channels in Chapter 2: “Creation,
production and sales of our collections”.
022 023LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.2.4.
CREATING VALUE MODEL
ASSETS Our results in the 2020/21 reporting year STAKEHOLDER VALUE
LPP VALUES Reduction of negative
Natural 911,560 GJ 16 factories environmental impacts.
capital Fire-fuelled Ambition-driven Socially-responsible Team-oriented of energy used covered by
the Eco Aware
A step towards delaying climate
including raw materials Production scheme
used to produce fabrics BUSINESS SUSTAINABLE DEVELOPMENT 1,295,340 change.
and natural resources, STRATEGY STRATEGY TCO2E
of carbon dioxide Support offered to suppliers
such as energy and
emitted with regards to managing their
water.
environmental impacts and
increasing their competitive
Eco Aware – product, Chemical safety advantage.
production, sales in production
Financial
capital PLN 3,068M PLN 7,285M More innovation and better
namely equity equity set aside for long-term access to advanced technologies
Packaging Aware – Sustainable development
and liabilities. plastics under control in the buildings of the and short-term reserves in the fashion industry.
central headquarters and liabilities in the
and retail network
2020/21 reporting year
Assistance for local communities
and the society at large.
STEP 1: STEP 2: STEP 3: STEP 4:
Human and
intellectual
DESIGNING SEWING SHIPPING SELLING 21,977 1,108 Opportunities for employees
capital employees of suppliers on three
to develop professionally
the LPP Group continents
and improve their skills.
meaning the contribution
of our employees and INTERNAL RISKS EXTERNAL RISKS
suppliers into the creation, Help offered to suppliers
Business model risks Macroeconomic risks with regard to working conditions
development and produc-
tion of our collections, Reputation damage risks Epidemic and pandemic risks and human rights protection.
their distribution and sales. Involvement in the
Employee risks Technological progress 2 partnerships establishment of
and innovation risks for sustainable
Collection risks
development goals
1 industry initiative: Elimination of harmful chemical
Climate risks Union of Polish Retail substances and plastics from
Social and relational Product quality risks joined: Zero Discharge the environment.
and Services Employers
capital Weather risks of Hazardous
Supplier reliability risks (ZPPHiU)
Chemicals (ZDHC)
and dependence Environmental risks Support for the industry
in other words the inspira- and Polish Plastics Pact
on a single supplier in the fight with the consequences
tions and growth which Rising costs of products risks
of the pandemic.
we owe to our relations Corruption risks
Increased competition risks
with investors, business and
Ineffective logistics risks
social partners, customers Currency risks
Product availability matching
and other stakeholders. Inaccurate pricing policy risks
Regulatory change risks current customer needs regardless
Concentration on one market 233M items 1,435,000 M2 of the sales channel.
segment risks of clothing sold of combined retail space
annually
Wrong store location risks 490,833: Wider choice of products that
Manufactured
capital
18.6% proportion the highest number are less harmful to the natural
Customer migration from of Eco Aware of garments in online environment to facilitate more
that is products, their traditional outlets to online stores products in our orders fulfilled in a day ecologically-sound consumer
distribution and sales. risks brands’ collections decisions.
024 025LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
Pillar of the strategy Targets met in the 2020/21 reporting year Long-term goals to be reached by 2025
CHEMICAL We joined Zero Discharge of Hazard- • 2021: 100% products containing
SAFETY ous Chemicals (ZDHC), an initiative wool or down with RDS or RWS
that strives for the elimination of haz- certification.
IN PRODUCTION ardous chemical substances from the
supply chain in the clothing industry. • By 2025 we will have reached full
conformity with ZDHC standards.
We got involved in the adoption
of ZDHC Manufacturing Restricted
Sub-stances List (ZDHC MRSL),
a regularly updated list of banned
substances.
We began the process of sharing
our knowledge with our partners.
23 factories in Pakistan and 42 in
Bangladesh produced our collections
in line with the ZDHC standards.
PACKAGING Complete removal of plastic from • 2021: 100% plastic-free price tags.
1.2.5. the packaging of Reserved and Mohito
SUSTAINABLE DEVELOPMENT AWARE – • 100% cardboard boxes with FSC
online orders, which resulted in the
PLASTICS UNDER certification or recycled.
STRATEGY FOR 2020–2025 elimination of another 300 tonnes
CONTROL of the material. • 2023: 100% recycled packaging
at the stores.
Sustainable development is an important factor We used recycled plastic film in 100%
in our planning and decision-making process- of House, Cropp and Sinsay orders. • 2025: 100% of the plastic
es. We always try to act fairly, guided by the packaging can be reused, recycled
Reduction of plastic packaging used
or composted.
standards of corporate social and environmental to ship samples by 50% – another
responsibility. We rise up to the global climate 5 tonnes of plastic saved.
challenges and strive to reduce our environmen- We joined the Polish Plastics Pact,
tal impacts. Despite the COVID-19 pandemic a national initiative for closing the
affecting the operations of our company, we loop for plastic waste.
consistently work to fulfil the objectives of our
2019 sustainable development strategy “For
SUSTAINABLE We began the implementation of the • 2021: All our servers and online shops
People For Our Planet” as regards ecological- Eco Aware Stores programme at our will excessively use renewable energy.
DEVELOPMENT
ly-sound production, chemical safety in manu- stores, as part of which we will, for
IN THE BUILDINGS • 2023: All new buildings with eco
facturing, elimination of open-loop packaging example optimise the operations of
OF THE CENTRAL certification (BREEAM or LEED).
and eco-friendly solutions in the buildings of the the HVAC systems and replace all
HEADQUARTERS lights with energy-saving LED lamps. • 2025: 100% of stores covered
central headquarters and the retail network.
AND RETAIL Whenever we were in the position to by the Eco Aware Stores programme.
[Reporting topic: Sustainable Fashion] [GRI 103-1] [GRI 103-2] [GRI 103-3]
NETWORK choose the energy provider, over 25%
Pillar of the strategy Targets met in the 2020/21 reporting year Long-term goals to be reached by 2025 of the energy consumed by our stores
came from renewable sources (mostly
ECO AWARE – We began the implementation of • 2021: 25% of all clothes produced by wind and water).
PRODUCT, the Eco Aware Production scheme LPP are Eco Aware In selected stores, we started testing
in the field of water management telemetry systems for the monitoring
PRODUCTION, • 2021: 30% factories in Asia are part
and energy supply. Because of the and management of electricity use.
SALES of the Eco Aware Production scheme.
COVID-19 pandemic the programme
was redesigned for the purposes • 2023: 100% denim factories are part Some of our outlets were fitted
of remote audits. of the Eco Aware Production scheme. with the SolarCool technology that
uses solar energy to cool the air-con-
18.6% of the products offered by LPP • 2023: Collection of used clothes
ditioning system.
brands and 32.4% Reserved products in 100% stores.
are Eco Aware collections. 88 of our stores are located in shop-
• 2023: PLN 1m invested in new
ping centres with BREEAM certifica-
We launched a series of consultations technologies of recycling textile
tion; one in a shopping centre with
with 40 suppliers from Southeast waste.
LEED certification.
Asia to bring their operations into • 2025: 50% of all Reserved
conformity with the Eco Aware garments are Eco Aware.
Production standard. As a result,
already 16 factories produce • 2025: Our carbon footprint
collections in this standard, is reduced by 15%.
and more are preparing for it.
We reduced our CO2 emissions
by 14%.
026 027LPP. INTEGRATED REPORT FOR 2020/21 | LPP PROFILE AND BUSINESS MODEL ABOUT THE COMPANY | OUR BUSINESS MODEL | THE ORGANISATION’S EXTERNAL ENVIRONMENT |
LPP IN THE FACE OF THE COVID-19 PANDEMIC
1.2.6.
UN SUSTAINABLE DEVELOPMENT
GOALS 2015–2030
• LPP is a fully omnichannel organization • We work for the development of Gdańsk, • We work to achieve the ambitious goals of our
As LPP, we contribute to the achievement
that successfully integrates the physical Cracow, and the city districts where our offices sustainable development strategy “For People
of selected goals of the 2030 Agenda for
and e-commerce channel. are located. For the Planet”, which include increasing the
Sustainable Development adopted by the UN
• Since 2016 we have invested PLN 180m • We respond to the needs of the communities share of more ecologically-sound collections
General Assembly in 2015. We identify areas of
into fashion tech, including the introduction where we operate. (Eco Aware), limiting our use of plastics or
our impact and take actions that are consistent
of RFID hard tags. • LPP is an active participant in the life reducing our carbon footprint.
with our business activity and our approach to
• We are developing an advanced and diverse of Brześć Kujawski, focusing on supporting • We completely ended the use of non-recycled
social involvement.
logistic capacity that includes a network of the education of the youngest residents poly mailers in e-commerce packages.
Distribution Centres and Fulfillment Centres of the commune.
OUTCOMES IN 2020/21:
in strategic locations in Poland and abroad.
OUTCOMES IN 2020/21: • Reduction of total GHG emissions
OUTCOMES IN 2020/21:
• 98.9% online orders
• PLN 6.9m in assistance
provided as part of the #LPPhelps campaign
per item sold for the LPP Group
2.2%
by
• Our employees are offered numerous develop-
•
delivered on time
23m online orders filled
• 43 organizations supported by the LPP
Foundation
• Reserved and Mohito online orders
100% free from single-use plastics
ment programs and training opportunities.
• Working in collaboration with colleges and
universities, we support the education of
• 259m items of clothing • 115 LPP employees sewing face masks • 300 tonnes
young designers and make it possible for them
to gain work experience.
distributed annually
59
and employees involved in other
volunteering projects
of plastic saved
• We help to improve the quality of education
provided to children and young people
in the areas where we invest.
OUTCOMES IN 2020/21:
• Diversity is a priority in our company.
• Nearly 71,000 hours of training
provided to the LPP Group employees
• Over a half of all managerial positions
in our company are filled by women. • The share of more ecologically-sound fabrics
• LPP is a member of the United Nations Global
Compact, the world’s largest initiative that
in our collections grows constantly. bright together companies working towards
• We employ people with disabilities and offer
• Constant collaboration with 8 colleges them professional development opportunities.
• We support employee volunteering.
• We implement the Eco Aware Production
programme in the field of water manage-
sustainable development.
• We joined the Zero Discharge of Hazardous
ment and energy supply. We carry out quality Chemicals (ZDHC) aimed to eliminate hazard-
• Our suppliers are required to protect human
checks along the supply chain. ous chemical substances from the clothing
rights, employee rights and safety standards.
• Having joined the Zero Discharge of Hazard- industry value chain.
• Through the LPP Foundation, we support
ous Chemicals (ZDHC), we became involved in • We signed the Polish Plastics Pact that work
people facing social exclusion.
the adopting of a list of hazardous substances towards closing the loop for plastics.
• LPP is one of the largest taxpayers in Poland OUTCOMES IN 2020/21: that are banned in clothing manufacturing.
and the largest private taxpayer on the Polish
coast of the Baltic. We support the develop- • Over 60% of women in managerial
and executive positions at the LPP central
• In Poland we collect used garments and give
a second life to them by donating them to
people in need.
OUTCOMES IN 2020/21:
• 23 factories in Pakistan and 42
ment of local businesses.
• Nearly 22,000 people is on our payroll
in Poland and abroad. headquarters and over 93% in LPP
Retail, hold managerial and director positions
OUTCOMES IN 2020/21:
in Bangladesh where our collections are
manufactured are now part of the ZDHC.
• We implement good practices in the supply
chain, promoting human rights, employee
rights and improved safety in our Asian • 235 employees with disabilities
• 18.6% – the share of Eco Aware
products in all LPP collections
suppliers’ factories. at the LPP Group
OUTCOMES IN 2020/21: • The LPP Foundation donated more than
• 17,977 all quality checks (including
[GRI 102-12] [GRI 102-13]
remote ones) carried out by LPP in factories and
• 197 audits focusing on occupational PLN 353,000 the distribution centre
health and safety, working conditions and
human right in our suppliers’ manufacturing
to support local communities and projects
preventing social exclusion • 5.3 tonnes of clothes
collected and donated since 2018
plants
• 5% gender pay gap (compared to
the 19.9% national average in Poland,
according to state statistics)
028 029You can also read
