LPP chosen as a runner-up in the Climate Strategy Benchmark study

In the ‘Climate Strategy Benchmark’ study, conducted by ESG experts and practitioners from the UNEP/GRID-Warszawa Centre and Go Responsible Polska, the clothing company LPP secured a place among the leaders in the best reporting on climate issues. The evaluation of the strategy of companies from the WIG20 and mWiG40 groups took into account, among others, the companies’ climate policy and goals, emissions and climate partnerships. LPP’s second place in the ranking, following the survey of Climate Aware Companies, is yet another high rating of the company’s environmental impact reporting.

ESG experts and practitioners from the UNEP/GRID-Warszawa Centre and Go Responsible Polska published the results of the first edition of the “Climate Strategy Benchmark” ranking, in which they assessed listed companies from the WIG20 and mWIG40 indices and their climate impact reporting. The companies were evaluated in 14 categories in terms of creating, implementing, managing, measuring and reporting on climate-environmental issues.

Particular attention was paid, among others, to companies’ climate policies and their goals, the scope of activities, but also to the issue of measuring CO2 emissions or managing climate risks. The study also assessed the companies’ general awareness in terms of climate goals and policies, through the integration of business strategy with them. The companies’ activities aimed at including specialised organisations in environmental initiatives or implementing partnerships for climate and environmental goals were also appreciated.

The authors of the study sought to assess in detail the companies’ climate policies, especially in terms of their precision, but also the difficulty and quantifiability of the goals set for the coming years. Such areas as energy efficiency and plans for using renewable energy sources were also taken into consideration.

As a result of the assessment, the Polish clothing company received 18 points out of 23, which allowed it to land a high – second place in the general classification of the ranking of companies reporting best on climate issues.

The “Climate Strategy Benchmark” is the second independent study this year, in which the Polish clothing manufacturer was rated so high as regards reporting of climate issues and the impact of the company’s activities on the environment. In September this year, LPP was awarded the title of Climate Conscious Company in the second edition of the study conducted by the Polish Association of Listed Companies, Foundation of Reporting Standards and Bureau Veritas Polska.

As the organisers of the “Climate Strategy Benchmark” assure, the study is a reliable and comprehensive analysis of the market in terms of climate strategies and a presentation of the best practices in this field that stand out on the market. It also offers comprehensive knowledge on the most effective tools for mitigating climate and environmental risks.

More information about the ranking is available at: https://goresponsible.pl/2021/11/24/wyniki-pierwszej-edycji-benchmarku-strategii-klimatycznych/

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collections on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.6 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP Kraków headquarters with BREEAM certificate

The Kraków headquarters of LPP, which houses the design offices of the House and Mohito brands, has passed the BREEAM certification requirements – one of the most widely used methods for assessing buildings in terms of their compliance with environmental standards. The sustainable construction solutions implemented in the facility are one of the elements of the company’s “For People For Our Planet” strategy for 2020-2025 which provides that all new LPP buildings will be BREEAM or LEED certified by 2023.

From the outset, the design of the Kraków headquarters of LPP, commissioned in 2020, was consistent with the idea of implementing more environmentally-friendly solutions. This is one of the elements of the Gdańsk company’s actions within the framework of its Sustainable Development Strategy “For People For Our Planet” for 2020-2025, adopted in 2019, in which it had committed itself to successively reducing its impact on the environment. Not only does LPP pursue its objectives by increasing the share of more and more environmentally friendly collections in its offer, or by producing clothes while maintaining a model based on reducing water and energy resources in the manufacturing process, but it also plans to completely eliminate single-use plastic from packaging, maintain chemical safety in production, as well as implement sustainable development in its buildings and sales network.

– In order to respond to the climate challenges of today, we cannot focus solely on one area of our business – so we have also included an action programme focused on our own infrastructure in our sustainability strategy. We want our buildings, both office and warehouse facilities, and our sales network to be more environment-friendly, less energy-consuming and at the same time equipped with solutions ensuring their low-emission character – explains Łukasz Piwoński, Administrative and Technical Director, LPP.

The Polish clothing manufacturer has implemented a number of state-of-the-art sustainable construction solutions in the Kraków building, including a recuperation system for heat recovered from exhaust air, and a system for the elimination of so-called particulate matter, which is one of the most harmful atmospheric pollutants. Care has also been taken to reduce the building’s energy consumption by equipping it with a Building Management System (BMS) which allows for a full implementation of the building’s energy management system. The system controls the operating parameters of individual devices, reduces energy consumption and, at the same time, ensures full comfort of use of the building. Care has also been taken to eliminate excessive consumption of water resources by installing specialised fittings in toilets in order to control water outflow.

– The construction of the Kraków headquarters was one of our first experiences with sustainable construction. We wanted the building not only to meet environmental requirements, but also to be a friendly, functional and comfortable workplace for our people. For that reason, we equipped it with spacious, conference rooms and relaxation areas with state-of-the-art design. The employees may also enjoy a restaurant and a cafeteria area and the whole is complemented by a rich sports infrastructure – a mini gym, a basketball court and a beach volleyball court – points out Łukasz Piwoński.

The Kraków headquarters of LPP is already the second office building of the Polish manufacturer to obtain a BREEAM certificate. In January this year, the company commissioned a new office building in the Fashion Lab complex in Gdańsk, which passed the certification and will additionally be powered by wind energy as of 2023. At the beginning of 2022, the company also plans to obtain BREEAM for its new Distribution Centre in Brześć Kujawski, where a number of sustainable construction solutions have been applied, including a photovoltaic installation that will power the building with solar energy.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collections on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.6 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP buildings to be powered by green energy

As of January 2023, the Polish clothing manufacturer will be using only energy from renewable sources in most of its office buildings and in the Distribution Centre in Pruszcz Gdański. The agreement signed with FIGENE Energia secures the company’s total energy needs for the next 10 years. In accordance with the objectives of the Sustainable Development Strategy for 2020-2025, the resignation from non-ecological power sources is yet another step towards reducing the company’s impact on the environment.

Under the agreement, starting from 1 January 2023, FIGENE Energia will supply green energy to the majority of LPP office buildings in Poland and the Distribution Centre in Pruszcz Gdański for the next 10 years. The estimated volume of energy necessary to meet the company’s needs in this period is 358 000 MWh. The signed agreement provides for a possible extension the contract for an additional period of 5 years.

– The contract signed with FIGENE Energia is our next step in implementing the objectives adopted in our Sustainable Development Strategy for 2020-2025. We are committed to gradually neutralising our impact on the environment, taking into account all areas of activity. A few weeks ago, we completed the installation of photovoltaic panels on the LPP Distribution Centre under construction in Brześć Kujawski. There, we decided to use solar power. This time, having signed a contract with Figene, we decided to rely on wind energy – explains Łukasz Piwoński, Administrative and Technical Director, LPP.

In line with the 2020-2025 Sustainable Development Strategy “For People For Our Planet”, LPP’s implementation of environmentally friendly solutions covers not only its production processes, logistics and sales network, but also the facilities where the company operates. In addition to the decision to power its own offices and buildings with RES, LPP is also introducing green energy solutions in its stores Whenever there is a choice of a supplier, due to lease conditions, the company uses renewable sources – in 2020, 25% of the energy consumed by the stores was generated from RES. The company’s long-term goal in terms of sustainability at its headquarters and sales network buildings is to have all new facilities covered by BREEAM or LEED environmental certificates. Actions taken in all areas of the strategy, in turn, are to bring about a 15% reduction in CO2 emissions by 2025.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collections on 26 stationary markets, including in such prestigious capitals as London, Helsinki, Tel Aviv or Moscow. The online offer is available on 31 markets. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 2000 stores with the total area of over 1.6 million sq.m. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP among the leaders of the corporate Climate Crisis Awareness study

LPP was awarded the title of Climate Conscious Company in the second edition of the study conducted by the Polish Association of Listed Companies, Foundation of Reporting Standards and Bureau Veritas Polska. Another year in a row, the Polish clothing manufacturer remains in the lead of companies in terms of reporting the impact of their activities on the environment. The group of leaders in the survey included seven entities selected from 153 listed companies.

The Corporate Climate Awareness study carried out in Poland for the third time, seeks to assess the awareness of large and medium-sized companies regarding their impact on climate change. Publicly reported results provide investors, customers and all stakeholders with reliable, comparable information about the sustainability of companies and the extent to which they integrate environmental considerations into their management processes.

– Assessing companies’ performance in terms of reporting their environmental impact is becoming increasingly important in the eyes of analysts and investors. Competitiveness in the area of climate awareness is proving to be as important as the product itself and economic issues. It is becoming one of the conditions for building an advantage – whether in terms of human resources, sales, finance or investments. In this context, being among the leaders of climate-conscious companies is a great honour for us. It also confirms that the sustainable development strategy may not be just an add-on, but an integral element of business activities, clearly defined and reliably implemented. Transparency and care for proper communication with the capital market, in turn, are key to building trust and position among investors – comments Przemysław Lutkiewicz, Vice-President of LPP.

The analysis covered information from the annual reports of companies listed on the Warsaw Stock Exchange. This year, the average score of 153 companies assessed in the survey was 1.79 out of 10 possible points and was 0.08 points lower than last year. The Polish clothing manufacturer scored highest in 7 out of 10 criteria, achieving a total of 8.08 points and taking the third position on the podium. The highest rated company received 8.5 points.

According to the authors of the survey, only 38% of the assessed companies take climate issues into account in their management processes, despite the tightening market and regulatory trends. Only a few to a dozen companies manage to meet the requirements which will apply to all enterprises after the entry into force of the EU CSRD (Corporate Sustainability Reporting Directive).

– The Climate Crisis Awareness study is one of the few tools available on the market for maintaining standards in environmental reporting. It is also a reliable point of reference for capital market reviewers. As one of the leaders among listed companies, not only do we feel honoured, but we are also obliged, in the years to come, to raise these standards and inspire other market participants to make changes – concludes Przemysław Lutkiewicz.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 26 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. As at the end of 2020, the company had a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 31 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

Four thousand photovoltaic panels on the roof of the LPP Distribution Centre in Brześć Kujawski

Finishing works on the new LPP Distribution Centre in Brześć Kujawski are underway. As part of implementing environmentally friendly solutions, four thousand photovoltaic panels have been installed on the roof of the building. The installation with a total power of 1,5 MWh and an area of over seven thousand square metres is one of the largest green projects in the region. In line with the sustainable development strategy, the new LPP logistics facility is expected to meet high environmental standards – the Polish manufacturer focuses, among others, on solar energy, reduction of emissions and employee comfort.

In January this year, LPP – a Polish clothing manufacturer – began the construction of its largest logistics investment: the Distribution Centre in Brześć Kujawski which is scheduled to start operating in the first quarter of 2022. The schedule of works includes the implementation of a number of solutions aimed at reducing the environmental impact of the centre’s operations, including the installation of photovoltaic panels.

– Harvesting solar energy for the needs of the distribution centre is a pioneering project for LPP. We want our logistic facilities to be friendly not only for the employees, but also for the environment and local communities; therefore we are equipping them with more and more advanced CO2 reduction systems as well as solutions limiting water and energy consumption. We hope that during the operation of the installation we will get to know its advantages in practice and we will be able to decide on implementing similar solutions in our future facilities. We also do not rule out further expansion of the photovoltaic installation in the newly built Distribution Centre in Brześć Kujawski – comments Łukasz Piwoński, Administrative and Technical Director, LPP.

The photovoltaic panels have topped one third of the roof of the new LPP logistics facility. They currently cover an area of over seven hectares. The remaining part of the roof is prepared for possible further expansion of the PV installation. – In single-family houses there are usually about 20 photovoltaic panels installed. There are 4,000 of them on our building – it is as if 200 households in the region started using green energy, thus reducing its consumption from less ecological sources – adds Łukasz Piwoński.

The energy potential of the panels on the premises of the LPP investment in Brześć Kujawski is over 1500 megawatt hours a year. This means that such an installation could meet the annual energy needs of around 800 households. The installation of the Polish clothing manufacturer will be a source of renewable energy for the facility, while the surplus energy will feed the power grid.

In the LPP Distribution Centre located in the Brześć Economic Zone, the company also plans to introduce other environmentally friendly solutions, such as a recuperation system in the office premises, which will allow up to 95% heat recovery. The building will also feature an advanced BMS (Building Management System), which allows for the functional integration of automation modules, elements for monitoring equipment operation and energy consumption, as well as technical installations of the facility: lighting, heating, air-conditioning and ventilation. The facility will also be equipped with a progressive LED lighting system adjusting light intensity to weather conditions and time of day – so as to ensure comfort of work inside while reducing energy consumption to the maximum.

Currently, the company is in the process of BREEAM certification, which is one of the most widely used methods in Europe for assessing buildings in terms of their compliance with modern, environmentally-friendly building standards. In line with LPP’s sustainable development strategy, the clothing manufacturer wants all its new construction facilities to be BREEAM-certified by 2023.

1Source: Central Statistical Office figures: In 2019, electricity consumption per one consumer (household) in Poland was 1,963.9 kWh.

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ABOUT Brześć Kujawski Distribution Centre

The construction of the Distribution Centre in the Brześć Economic Zone is the next step in the development of the LPP’s supply chain. The state-of-the-art facility will enable the diversification of logistics operations and will strengthen the currently available capacities of the supply and distribution network of the Gdańsk-based company. Its area will comprise 75 thousand m2. The centre will support the operation of LPP’s brick and mortar stores in 25 markets, with distribution of up to 8 million pieces of clothing and accessories per week. In the first phase of its operation, the facility will employ about 500 people. The launch of the Distribution Centre in Brześć Kujawski is planned for the first quarter of 2022.

LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. As at the end of 2020, the company had a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP Foundation supports Children’s Homes in Malbork

LPP Foundation and employees of the Polish clothing company supported 2 Children’s Homes in Malbork which are part of the “Rodzinny Gdańsk” Foundation. In just one week, it organised a complete renovation of the rooms for 28 children and equipped them with new furniture. The youngest brand of the Polish manufacturer, Sinsay, also joined the campaign and provided children with additional home decor accessories. This is another charity action of the company, which demonstrated the power of the company’s employee volunteer work and the sense of helping.

LPP and the “Rodzinny Gdańsk” Foundation have been cooperating since 2013. Since then, the Polish clothing manufacturer has repeatedly supported the foundation financially, subsidised holiday trips and, together with its employees, helped to equip the first four homes for children in foster care.

“For 8 years now, LPP has consistently shown us that we can always count on their help and invaluable support from the company’s employees. Without them, our institutions would not exist and today would not be home to so many wonderful young people who suffered at the hands of fate. We knew we could count on their help again this time and we were not disappointed. The scale of support exceeded our wildest expectations”, says Rafał Tomaszewski, director of the “Rodzinny Gdańsk” Foundation.

In May this year, two Children’s Homes in Malbork joined the “Rodzinny Gdańsk” Foundation at the request of the Malbork District. The condition of the facilities required immediate renovation, replacement of furniture and retrofitting. LPP Foundation quickly organised and funded a construction team to carry out the necessary work and provided funds to purchase furniture for the rooms.

“As soon as we received a message from the “Rodzinny Gdańsk” Foundation about the need to support their 2 newly acquired facilities, we immediately started to act. Also, we did not have to heavily persuade our employees, who, as always, declared their willingness to help. In total, 25 volunteers assembled furniture for all 14 rooms in just one Saturday”, says Patrycja Zbytniewska, President of the LPP Foundation.

The Polish clothing manufacturer, in addition to financing the renovation of the rooms in both facilities, purchased a total of 28 beds for children, 14 wardrobes, desks and chests of drawers. The youngest LPP brand, Sinsay, also joined the campaign. It decided to donate bedding, blankets, towels and other home decor accessories to the children in both homes, so that each room would be even more cosy and, apart from standard furnishings, give the children a bit of joy.

“Our employees show an enormous amount of kindness. When the information about the action to support the Malbork institutions spread internally, the Sinsay brand immediately declared its willingness to join the project. Since recently, its range has also included interior design elements that have been popular with young people. They are colourful, pleasant to look at and give the interior what is most important – cosiness. They are a perfect complement to the rooms of the two facilities”, adds Patrycja Zbytniewska.

Thanks to efficient cooperation, the renovation and assembly of the furniture was completed in just one week, when the children were on holiday.

“The children’s reactions touched our hearts, the smiles and surprise on their faces were priceless – this is a driving force for our further activities and explains the sense of helping others”, concludes the President of the LPP Foundation.

The LPP Foundation has been working since 2017 mainly for people in need of support and at risk of exclusion in Pomorze and Małopolska. It helps children and young people in a difficult life situation and people with illnesses. It also supports health care facilities and works for the environment and environmental protection. Last year, it carried out the biggest charity action in its history #LPPhelps, which aimed to combat the effects of the Covid-19 pandemic. The amount of support reached nearly PLN 7 million at that time. More about the LPP Foundation at https://www.lppsa.com/en/lpp-foundation-supports.

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LPP is a Polish family company, and one of the fastest growing in the clothing industry in Central and Eastern Europe. For 30 years, it has been successfully operating in Poland and abroad, selling its collections in 25 markets, including such prestigious capitals as London, Berlin, Tel Aviv and Moscow. LPP manages 5 clothing brands: Reserved, Cropp, House, Mohito and Sinsay. At the end of 2020, the company had a network of over 1,800 showrooms with a total area of 1.4 million m2. The brands’ online collection is available in 30 markets. Based on a global supply network, the Polish clothing manufacturer distributes more than 259 million garments annually across 3 continents. LPP also plays an important role by creating jobs for nearly 22,000 people in offices and sales structures in Poland, Europe, Asia and Africa. It is listed on the Warsaw Stock Exchange as part of the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP as a partner of the 7th edition of the Development Initiation Fund

It is the fifth time that LPP – a Polish clothing company – has supported the social and environmental initiatives within the framework of the Development Initiation Fund. It is the only support programme of such comprehensive nature in Pomorskie Voivodeship aimed at cross-sectoral cooperation. This year’s grant competition is a response to the challenges identified in the UN 2030 Agenda. Projects may be submitted by 30 July this year.

The Development Initiation Fund is dedicated to cross-sectoral initiatives, i.e. projects implemented by NGOs in cooperation with business and local government, which respond to contemporary social and ecological challenges. The winners will be offered the Accelerator of Cross-sectoral Innovations, which combines financial support of up to PLN 25,000 with substantive and organisational assistance, help of mentors and expert support in the implementation of a crowdfunding campaign.

– As a company, we operate on many foreign markets, but our heart has always been here in Pomerania. This makes us even more keen on projects that involve the local community. We have observed and actively supported this competition almost from the very beginning due to the fact that its implementation formula is a cross-sectoral one. Such partnerships sometimes bring about ground-breaking ideas, and often offer just a fresh viewpoint as regards the social challenges we face every day. Where an idea meets business, the idea acquires a practical approach which is necessary for it to become a reality – comments Patrycja Zbytniewska, coordinator for social projects at LPP – Main Partner of the Foundation and the Development Initiation Fund.

The aim of the grant competition is to select projects which will implement at least one of the 17 sustainable development goals set out in the UN 2030 Agenda. They constitute an attempt to respond to global challenges such as climate change, excessive energy consumption or social exclusion. 193 countries, including Poland, have committed themselves to their implementation. Although they have a global dimension, meeting them requires initiatives on many levels – also on a local or business level.

– From the perspective of a company involved in the production of clothing, many of the problems identified in the UN 2030 Agenda are particularly close to us. It was the starting point for developing our sustainable development strategy for 2020-2025. The goals we have adopted there correspond directly with the challenges identified by the UN. We are very much hoping among the application there is a proposal that for an initiative that focuses on our industry and one of its most important aspects – recycling of materials. We have a special prize envisaged for such a project – announced Patrycja Zbytniewska.

It is the fifth time for LPP as a partner of the grant competition. This year, the company decided to extend its support and become a patron not only of the competition itself, but also of all the initiatives carried out as part of the Development Initiation Forum.

Details about the competition may be found at www.forumrozwoju.org.pl.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. As at the end of 2020, the company had a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP awarded with the CSR Silver Leaf

For the second time now, LPP has received the CSR Silver Leaf – an award granted by the editors of the Polityka weekly to companies implementing the best practices and solutions in the field of corporate social responsibility and sustainable development. This year’s jubilee edition of CSR Leaves brought a record number of applications, evaluated by a jury in such areas as corporate governance, human rights, employee development activities, ethics, environmental protection and social involvement as well as good business and market practices.

In the competition organised for the tenth time in Polityka weekly, in cooperation with the Responsible Business Forum and Deloitte, LPP was one of 24 companies awarded with the CSR Silver Leaf from among 124 entries.

– We are glad that the competition jury appreciated LPP’s actions aimed at sustainable development of our company, which has been an integral part of our business plans for several years now. This award also serves to confirm that companies aware of their responsibility for the environment in which they operate are able to effectively achieve their goals, even in the face of the crisis. For many businesses, last year was not only a test of their economic standing, but also – or perhaps primarily – a test of their social and environmental responsibility. As LPP, being aware of how much depends on the survival of the company, we have taken actions to meet the challenges of the new reality. We have done this mainly with our employees and long-standing business partners in mind, not forgetting our environmental commitments – comments Sławomir Ronkowski, Director of Internal Communication and CSR.

Despite the crisis of 2020, the company has consistently fulfilled the commitments adopted in the framework of the sustainable development strategy called “For People For Our Planet” by meeting all the objectives set for this year, and some of them even to a greater extent than expected. At the same time, the company organised assistance directed to nearly 500 medical institutions, social welfare homes, children’s homes and foundations caring for people at risk of social exclusion, providing in-kind and financial support worth PLN 9 million.

– What we found particularly important was to be able to continue projects supporting people in need. The fact that the crisis did not prevent us from implementing the biggest aid campaign in the history of the company – without abandoning the statutory activities of our LPP Foundation – is our greatest success and reason to be proud. We would not have been able to achieve this without the enormous support and commitment of our employees – adds Sławomir Ronkowski.

1. LPP wyróżnione srebrnym Listkiem CSR

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

LPP has started cooperation with Canopy – an international organisation for forest protection

LPP, as the first Polish company, has started cooperation with Canopy – an organisation whose operations aim at developing business practices among entrepreneurs for the sustainable use of forest resources worldwide by implementing changes in the area of purchasing paper, packaging and pulp fabrics. By joining the international initiative, the Polish clothing company has expressed its commitment to, among other things, supporting the idea of forest protection both as regards its packaging policy and the use of more environmentally friendly cellulose-based materials.

As a non-profit organisation, Canopy has been engaged in protecting endangered forests for over 20 years, working with more than 750 major forest resource companies and forest-based product suppliers. It engages with printing companies, packaging manufacturers and leading fashion brands and designers. The organisation helps shape their purchasing practices and create sustainable supply chain solutions for their purchases of paper, packaging and pulp fabrics. By undertaking these efforts, it aims to preserve 30-50% of the world’s primary and endangered forests by 2030. At the same time, it is helping to protect human health, biodiversity, freshwater systems and stabilise the climate. LPP, starting its cooperation with Canopy in June this year, is the first Polish business to have joined these actions.

– For us, this cooperation constitutes one of the elements of implementing our sustainable development strategy, in which environmental issues related to circular economy have been a key focus for a long time – elimination of plastics, responsible packaging management, or using more environmentally friendly fabrics. The collaboration with Canopy is therefore in line with our plans and will support, in particular, the move away from single-use plastics and the search for substitutes for them. We are aware that this may involve an increase in demand for forest products, which is why we want to take an approach to purchasing pulp, paper, packaging and fabrics that will allow us to protect primary and endangered forests at the same time – says Dorota Jankowska-Tomków, Sustainable Development and Purchasing Director, LPP.

By cooperating with Canopy, the company will use forest resources in a sustainable manner, including controlling its supply chain in terms of methods of obtaining and using pulp materials.

– We will accompany our suppliers in developing solutions to avoid using materials from sources that threaten forests and related ecosystems in production, both as regards packaging and fabrics, requiring that these be sourced from responsibly managed locations. We will focus on implementing further environmental standards in our operations and supporting the development of innovative, environmentally neutral sourcing. If we discover that any of our products have been manufactured using raw materials from endangered forests or illegal logging, we will engage our suppliers to change their practices and eliminate these materials – adds Dorota Jankowska-Tomków.

As part of the cooperation with Canopy – initiated in June, this year – LPP will be expressing preference for buying cellulose fabrics that contain at least 50% of recycled fibres or agricultural residues. LPP is keen to use innovative, recycled and closed-loop materials in its Eco Aware collections. Therefore, it will now also develop an order target for such viscose materials until 2025.

This year will also be marked by preparation of a strategy for reducing and reusing paper and packaging. In recent years, the company has undergone a real revolution in this area, including changing the design and durability of packaging, which has contributed to extending its life cycle, and using recycled paper in its packaging. LPP has also standardised the dimensions of bulk boxes. Thanks to this, the company has reduced their consumption by recovering almost 900,000 boxes over the last six months– thus saving 17,000 trees from being cut down.

As part of its cooperation with Canopy, the company will continue to work on implementing best practices for a circular economy and improving the environmental quality of packaging and paper. It will also develop the practice of using reusable shipping boxes in both the company’s external and internal operations. To reduce the use of paper and corrugated cardboard, it will also implement e-commerce, shipping, display and packaging systems that minimise paper consumption and increase the use of digital communication, marketing and accounting systems. Furthermore, it will also review all of the company’s paper and packaging use policies on an annual basis to identify areas where its use can be made more efficient or weight can be reduced. Also, it will target a high degree of recycled content, especially post-consumer waste or alternative fibres, in the selection of paper and paper products.

LPP will also encourage its suppliers to continuously improve and increase the availability of recycled fibre content in paper and packaging, and support research and development of pulp production from alternative fibres on a commercial scale. The aim is to achieve an average recycled fibre content of at least 50% in LPP papers and packaging within three years.

– Forests play a vital role in maintaining climate stability – both as carbon stores and as systems for regulating the water cycle – at a local and global level, which in times of environmental change is extremely important, not least in terms of human health and safety. Protecting the world’s limited forest resources is therefore of paramount importance today. In that regard, bearing in mind the wellbeing of future generations and the environment they will live in, through the cooperation with Canopy and our suppliers we want to support the preservation of intact forests and their functions in the ecosystem – explains Dorota Jankowska-Tomków from LPP.

Detailed information on the cooperation between LPP and Canopy can be found on the website: https://www.lppsa.com/en/sustainable-development/environment/lpp-has-started-cooperation-with-canopy.

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.

Time of responsible decisions in the new reality. LPP sums up another year of implementing the sustainable development strategy.

• Almost every fifth item in the offer of all the company’s brands comes from the Eco Aware line of more environmentally friendly products, and in the flagship Reserved it is already every third garment.

• All online orders of the LPP brands offer are already free of single-use plastics. In 2020, the company eliminated a total of 300 tonnes of the plastics.

• Last year, the Gdańsk-based company implemented the Eco Aware Production programme and joined the ZDHC international organisation with a view to implementing best practices in chemical safety throughout the supply chain.

• In 2020, the company recorded a 2.2% decrease in CO2 emissions per item of clothing sold.

For the entire market the past year was marked by difficulties resulting from the pandemic. For LPP too – it was a time of great challenges. However, despite the crisis and the struggle for survival, the company consistently continued to fulfil the commitments it made in the framework of the sustainable development strategy “For People For Our Planet”, planned for the years 2020-2025. In parallel, the ESG standards for non-financial assessment of companies are becoming increasingly important in the market.

– The idea of evaluating companies that assumes the need to conduct business with concern not only for economic interests, but also for social and environmental ones, has been implemented in LPP for years. We announced our first sustainable development strategy – “LPP More” – in 2017 and two years ago another one, “For People For Our Planet” as our response to global climate and social challenges. Today, our focus is on four pillars: design and production, plastics management, chemical safety of production and green buildings. This is a comprehensive approach to our business. Our sustainability strategy is an integral part of the company’s business plans and is in line with today’s reality that is increasingly subject to ESG standards. We can see that social and environmental issues are becoming increasingly important for all market participants – customer awareness is growing, and we are also experiencing the requirements of investors and financial institutions which expect companies to meet climate-related standards. On the one hand, this motivates us to implement further positive changes, on the other hand, it requires consistency in pursuing goals. That is why we can proudly say that in 2020, despite the difficulties caused by the pandemic, we managed to meet all the goals set for this year, and some of them even to a greater extent than we had originally planned – says Przemysław Lutkiewicz, Vice-President of LPP.

Successively implementing the idea of sustainable fashion last year, the Polish company significantly increased the share of more environmentally friendly collections – up to 19% in all its brands. In the flagship Reserved, clothes labelled Eco Aware already accounted for 32% of the total. According to the company’s plans, by the end of this financial year, the share of Eco Aware in the offer of all the brands in its portfolio will have increased to 25%.

More environmentally friendly fashion is not only about ecological raw materials but also a sustainable process of clothing production. That is why in 2020 LPP initiated the Eco Aware Production programme for its suppliers by starting consultations with 40 producers from South-East Asia. As part of the programme – which aims to reduce water and energy consumption in the clothing manufacturing process – quality and environmental standards were developed, such as using energy recovery systems in the factories or introducing closed-loop cycles of water circulation. Currently, 16 factories are already producing LPP collections according to this standard, and others are preparing to follow in their footsteps. According to the assumptions, this year the programme will cover 30% of South Asian factories sewing for the company.

Cooperation with suppliers in the area of sustainable fashion also concerns the chemical safety of production. Intensifying its activities in this respect, in August last year, LPP – as the first Polish company – joined the international Zero Discharge of Hazardous Chemicals initiative, supporting its suppliers in their efforts to eliminate harmful chemicals from the production processes applied in their factories. As a result, already 23 factories in Pakistan and 42 in Bangladesh, which sew the collections of LPP brands, are associated within the framework of this initiative, and it is planned to ensure complete compliance with ZDHC standards in the entire LPP textile supply chain by 2025.

While developing standards for sustainable production, the company also supports the idea of responsible consumption among customers by collecting used clothing in its stores.

– Over the last two years, since the launch of the action, we already collected and handed over 5.3 tons of clothes, which are distributed through St. Brother Albert’s Aid Society to people in need all over Poland. In 50 selected Reserved, House and Mohito stores located in most large cities in Poland, we accept donations of clothes with any label, thus giving them a second life and reducing the amount of textile waste, while supporting people affected by the homelessness crisis. Our plan is to have our second-hand clothing collection system operating in the entire LPP sales network by 2023 – says Patrycja Zbytniewska, President of the Management Board of the LPP Foundation.

The company, committed to the ideas of circular economy, acting within such organisations as the New Plastics Economy Global Commitment or the Polish Plastics Pact, continued the process of eliminating single-use plastics in 2020. At that time, the company removed 100 percent of this raw material from the packaging used to ship online orders of Mohito and Reserved brands, while in the remaining ones – only recycled film is used. LPP also diversified the size of parcels, which – in addition to minimising the use of raw materials for packaging – made it possible to eliminate artificial fillers, but also to optimise the size of courier shipments and reduce the number of trips to customers. As the reduction in disposable film also applies to the supply chain, the company asked its contractors to do away with plastics when packaging commercial samples, reducing this issue by 50%.

– By successively implementing further measures in the area of plastics management, we managed to reduce the consumption of this raw material by as much as 300 tonnes – therefore doubling the 2019 result. In total, over the past four years, this already amounts to 570 tonnes less single-use plastics in our packaging. Thanks to all the actions we have undertaken, by 2025 we want to be using only reusable, recyclable and compostable packaging – concludes Sławomir Ronkowski, Director of Internal Communication and CSR, LPP.

The sustainable development strategy which drives LPP’s operations, encompassing the entire value chain of the company, also applies to the headquarters buildings or the sales network. This is why all newly constructed office buildings, such as the latest building in the LPP Fashion Lab complex, meet the requirements of BREEAM certification. Moreover, currently, already 88 LPP stores are located in shopping centres with such certificates. Last year, the company also began implementing the Eco Aware Stores programme which involves optimising HVAC and lighting installations. Where the company could choose the supplier, 25% of the energy consumed by LPP stores came from renewable sources. Last year, at selected locations, the company also introduced SolarCool technology which uses solar energy in the cooling system of air-conditioning equipment.

As a result of all the measures taken by LPP last year, the company managed to reduce CO2 emissions by 2.2% year-on-year per item of product sold. In 2019, the company, as the only one in the clothing industry in Poland, calculated its carbon footprint based on the volume of goods sold, taking into account, among others, the process of manufacturing or growing raw materials, production of clothes, transport or emissions at the sales stage, as well as the phase of use of products by customers.

– Based on this data, we set a target for 2025 to reduce GHGs by 15%. It is true that in 2020 we recorded a reduction of GHG at the level of 14%, and by 2.2% per item of clothing sold; however, we know that this record result was mainly influenced by the closure of stores due to the COVID-19 pandemic. Therefore, we are aware that we still have a lot to do in this area – remarks Sławomir Ronkowski.

The past year was a difficult time of enormous challenges – both in the business and social dimensions, where responsibility for people and the environment gained particular significance. Also for LPP employees, who were involved in bottom-up aid actions.

– The very first lockdown mobilised our employees to support both local communities and national beneficiaries – from the production of masks and protective aprons to meals for senior citizens or employee volunteering programmes. We are very pleased with this attitude of the teams and it gives us energy to engage in further activities – emphasizes Patrycja Zbytniewska, President of the Board of the LPP Foundation.

In 2020, despite the crisis and the ongoing struggle for the company’s survival, LPP and the LPP Foundation carried out the biggest aid campaign in its history – #LPPpomaga. The Foundation also carried out projects as part of its statutory activity. In total, last year nearly 500 medical institutions, social welfare homes, children’s homes and foundations caring for people at risk of social exclusion received in-kind and financial support worth PLN 9 million.

Full version of the LPP’s integrated report for 2020/21 financial year is available at

https://www.lppsa.com/en/sustainable-development/annual-report

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LPP is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For 30 years it has been successfully operating in Poland and abroad, offering its collection in traditional stores already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1800 stores with the total area of 1.4 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 259 million pieces of clothing to three continents. LPP plays another important role as it employs nearly 22 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.