LPP scores high rates in CDP Climate Change 2020 report

In the latest edition of the CDP Climate Change 2020 study, conducted by the international organisation Carbon Disclosure Project, LPP received a high “B” grade, i.e. higher than the industry, European and global average. This serves to confirm the significant role of climate policy in the Gdańsk-based company’s business strategy.

The Carbon Disclosure Project is an international non-profit organisation that has been studying the level of climate awareness among companies, cities and regions for years. It provides reliable and verified information on the environmental impact of individual institutions, thus aiming to motivate them to change their attitude and build a sustainable economy with a long-term positive impact on people and the planet. CDP invites to participate in the programme and makes an assessment based on the answers to questions that are grouped under as many as 11 criteria. The information obtained helps to identify growing challenges and indicate new, feasible initiatives that are increasingly demanded by investors and customers today. CDP is seen globally as the gold standard for environmental reporting. The data are currently used by over 500 investors worldwide.

The organisation runs reporting programmes in areas such as supply chain, climate change and water and forest management, among others. In this year’s edition of the programme in the area of climate change, almost 10 thousand companies from all over the world were analysed. Only 24 out of 70 Polish companies listed on the Warsaw Stock Exchange were invited to report. The evaluation methodology is based on a nine-grade alphabetical scale, starting from “A” to “F”*, which, within 11 groups of criteria, shows the level of climate awareness of the company and the degree of implementation of measures in the management processes. The Polish clothing manufacturer received a “B” grade, thus joining the international group of 36% of companies with such a promising score. The company ranked not only above the European average, but also above the world’s retail industry average of “B minus”. – We are very pleased with the result of this year’s CDP report and the fact that we ranked among the companies that, just like us, take coordinated action for the environment in their daily business. We are particularly proud of the fact that LPP scored higher than the industry average and even the European average. This confirms our consistency in the pursuit of sustainable development – comments Przemysław Lutkiewicz, Vice-President of the Management Board, LPP.

The report findings are compiled on the basis of forms provided by the companies. Out of 11 evaluated areas, LPP’s final very good overall result was influenced by obtaining “A” grade in as many as 3 categories: Scope 3 emissions, climate issues management and initiatives aimed at reducing carbon footprint. The company’s risk transparency, Scope 1 and 2 emissions (direct and indirect energy-related greenhouse gas emissions), as well as its involvement in the value chain and its climate goals were also rated very highly.

– It is worth noting the high “A” grade awarded to LPP in the criterion “Scope 3 emissions”. The company undoubtedly stands out against the retail sector worldwide, for which the average is a “D”. In CDP nomenclature, this means that the industry recognises the challenges and writes about them explicitly in the report, but does not take action in this area. – says Michał Stalmach, Sustainable Development Manager, Bureau Veritas Polska. – Scope 3 emissions are very important, but also extremely difficult and time-consuming to calculate. The analysis requires calculating the carbon footprint from the company’s activities along the entire value chain, i.e. not only from the production or growing of raw materials, production of clothes, transport, but also from the phase when the products are used by customers. LPP knows that this is where the most challenges arise and has focused its efforts on this area. This, in turn, demonstrates not only the company’s high climate awareness, but above all the scale of the effort put into calculating emissions in this area – adds Michał Stalmach.

LPP has been increasing the scope of its efforts to reduce its negative impact on the environment for years. However, as part of its new sustainable development strategy for 2020-2025, the Polish family company has made a fundamental change in its approach to doing business, making this issue an integral part of its development strategy. – The results of the CDP report undoubtedly give us yet another reason to be proud. Despite a difficult year for business sustainability in 2020, we have continued our “green shift” in business strategy, the effects of which are already being recognised by a range of independent experts. – concludes Przemysław Lutkiewicz. – Non-financial reporting and thus the transparency of companies is becoming increasingly important not only for the capital market and investors, but also for customers. This perspective is slowly becoming part of our environment and is gaining in importance every year – he adds.

*RATING EXPLAINED:

• “A” and “A minus” (Leadership) – implementation of best practices,
• “B” and “B minus” (Management) – taking coordinated action on climate issues,
• “C” and “C minus” (Awareness) – awareness of impacts, knowledge on climate issues,
• “D” or “D minus” (Disclosure) – no action, but awareness of climate issues,
• Where there is no response to the invitation to report, the entity receives a grade of “F”.

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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 over 25 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 over 1.3 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP also plays an important role as it employs over 24 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.