Eurocash Group

Social Responsibility Report

for 2020

Sustainable Development Strategy of Eurocash Group 2020+

We know that – especially in times of crisis - the huge responsibility of fuelling the country’s economic power and supporting society rests on the shoulders of local Entrepreneurs. It fills me with pride that for the past 26 years, Eurocash Group has supported Polish entrepreneurship. Giving Entrepreneurs the power to act is our priority in implementing Eurocash Group’s Sustainable Development Strategy 2020+

Pedro Martinho

Member of Eurocash Group’s Management Board,
responsible for managing sustainable development

A sustainable and responsible approach to our daily business activity determines the impact we make on our economic, social and natural surroundings. We are Poland’s seventh-largest employer with 21,277 employees. We work with over 91,500 Customers, supporting them in their entrepreneurship growth and reaching millions of Poles, both through our Customers and directly, when they purchase goods from our distribution offer. As a FMCG and leading logistics operator we also have significant influence on the natural environment around us.

Our approach to sustainable development is outlined in the Sustainable Development Strategy of Eurocash Group 2020+ that we adopted in 2019. Its four pillars relate to our most important stakeholders, namely our employees, Entrepreneurs and Poles who stock up in our stores. Furthermore, we care for the local environment and work to reduce food waste.

The Sustainable Development Strategy is viable thanks to a responsible approach to management processes. Its implementation is overseen by Eurocash Group’s Management Board Member and managers who lead the efforts on each of the strategy pillars. Since 2018, the Marketing Manager of the Group has been appointed the person in charge for the area of sustainable development. In 2019, Eurocash Group appointed a CSR manager responsible for the strategy’s execution.

Sustainable Development Strategy of Eurocash Group 2020+

Pillar I. Entrepreneurship Development

Key topics Our ambitions Sustainable Development Goals
  • Providing businesses with purchasing power, retail concepts and development tools
  • Supporting succession and young Entrepreneurs, increasing the number of people employed in trade
  • Increasing the role of Entrepreneurs in society by promoting their activities for society
  • Creating conditions for developing innovative solutions for small and medium-sized enterprises
Building responsible entrepreneurship, which ensures sustainable development of society and economy of the whole country
Strategic Key Performance Indicators [KPI]
Project: Everyday Business Activity Project: Eurocash Academy of Skills
I.1. Independent market share in the entire Polish market I.2. Total value of income generated in the economy from the Eurocash Group activities (direct impact, indirect impact, induced impact) I.3. Total added value generated in the economy (GDP) from the Eurocash Group activities (direct impact, indirect impact, induced impact) I.4. Percentage of customers using the eurocash.pl platform I.5. Number of Entrepreneurs and employees who participated in the initiatives of the Eurocash Academy of Skills
RESULTS:
Value of the Small Format channel (small-format trade <300m2)
2020 2019
FOOD 37.6% 39.4%
DRUG 47.7% 49.0%
Tobacco products 89.0% 89.1%
FOOD + DRUG 39.3% 41.1%
Total FMCG 46.4% 47.9%

Source: Eurocash after NielsenIQ: Retail Trade Panel, share value of the Small Format channel in Total Poland market; food, drug and tobacco categories 2020 vs 2019.

RESULTS:
2019*
PLN 840 mln

* Data collected in a 3-years cycle

RESULTS:
2019*
PLN 4.1 bln
RESULTS:
2020 2019
Percentage value 17% 10%
Number of Customers 15,549 10,401
RESULTS:
2020 2019
Number of participants 33,000 people 29,977 people
from the foundation of the Academy 112,000 people 79,000 people

Pillar II. Uncompromising Quality for Everyone

Key topics Our ambitions Sustainable Development Goals
  • Providing top quality products
  • Ensuring product safety
  • Providing consumers with products that are always good quality, safe and at an affordable price
  • Building a responsible supply chain
  • Ensuring supply chain continuity
Delivering safe, high-quality food to every Customer (who owns the store) and to the widest possible range of consumers throughout Poland
Strategic KPI
Project: Culture of Quality Project: Responsible Buyer, Responsible Seller
II.1. Number of customer complaints on fresh products II.2. Volume of losses in products (in tonnes) due to their freshness or failure to meet the safety criteria in relation to the volume of products sold (in tonnes) II.3. Percentage of suppliers that have been certified to comply with their own declarations on social and environmental approach
RESULTS:
2020 2019
0.035% 0.04%
RESULTS:
2020*
0.004 tonne

* Data collected since 2020

RESULTS:
2020*
8.7% of active suppliers

* Data collected since 2020

Pillar III. We use less, we don’t waste!

Key topics Our ambitions Sustainable Development Goals
  • Reducing CO2 emissions by reducing fuel and energy consumption
  • Reducing food wastage
Reducing food wastage and CO2 emissions
Strategic KPI
Project: Green Infrastructure Project: Green Fleet Project: We don’t waste
III.1. Energy consumption per m2 (reported per building category) III.2. Average CO2 emissions per km driven (reported per category of vehicles and type of fuel used) III.3. Percentage of food wasted (ratio of food wasted to sold)
RESULTS:
(kWh/m2) 2020 2019
Stores 261 267
Offices 40 54
Distribution centres 145 149
Reloading centres 102 101
Warehouses/storage facilities 65 65
RESULTS:
CO2 emissions g/km (in tonnes)
PB 95 Diesel
Vehicles > 3,5 t 259.89 417.18
Vehicles ≤ 3,5 t 122.90 168.15
RESULTS:
2020*
0.40%

* Data collected since 2020

Pillar IV. Employee Safety and Commitment

Key topics Our ambitions Sustainable Development Goals
  • Ensuring safety in the workplace
  • Empowering employee growth and commitment
Creating the best working conditions for everyone
Strategic KPI
Project: Safety – a Common Cause Project: Commitment
IV.1. Work-related injury rate (number of injuries / number of hours worked x 1000) IV.2. Employee commitment rate
RESULTS:
2020 2019
Indicator 14.6 24.8
Number of employees 17,166 18,099
RESULTS:
2020 2019
42% 36%

We are transparent in the way we share data related to our non-financial activity: the second edition of our Corporate Social Responsibility Report has been prepared in line with the GRI Standard. Additionally, 2021 saw the implementation of an internal reporting system that aims to keep employees updated on Eurocash Group’s CSR pursuits.

Our CSR activity is reinforced by educational campaigns related to sustainable development that we offer to our employees and Entrepreneurs. Responsible communication further strengthens our social advocacy. In 2020, we ran public campaigns aiming to make Poles aware of the role that local Entrepreneurs – Everyday Heroes - play in the fight against COVID-19 and in this way we wanted to encourage safe and local shopping behaviour in stores run close to our homes by our neighbours - all of paramount importance during an epidemic. We thus strived to keep our Consumers safe as well as to support local entrepreneurship.