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LPP S.A. Press room Let’s get to know each other better – the debut of the integrated LPP report

Let’s get to know each other better – the debut of the integrated LPP report

22.05.2018

LPP, the largest Polish clothing producer with Reserved, Mohito, Cropp, House and Sinsay fashion brands in its portfolio, has just published the first integrated report in the history of the company titled ‘Let’s get to know each other better’. It is a summary of the most important information in the field of sustainable business and social responsibility of the Gdańsk company, which, apart from the development of the Polish clothing industry, have been a significant area of LPP activity for years. A lot of space in the report is devoted to the supply chain, in which activities in the field of sustainable development are undertaken at every stage of design, production, distribution and sales. The report also presents activities in the area of work culture and social activity of the company.

LPP means over 25 years of experience in the industry, over 1,700 stores present in 20 countries on 3 continents. IT is a Polish family company that with its activity has for years been making a statement that a wide range of clothing brands can effectively reach millions of customers around the world without losing the sense of responsibility for the environment.

In this year’s integrated report, the Gdańsk manufacturer emphasizes the basic values that guide the creation of the collection. LPP explains how the entire range of factors and processes affects the final shape of the offer of its clothing brands, but also shows the degree of involvement in social activities at every stage of the company’s activity.

Responsibly, from the design to the showroom

In a simplified way, the process of creating a collection can be divided into design, sewing, distribution and sale. At each of these stages, LPP is guided by a responsible approach.

Step 1: We design

Over 700 experts work on collections for five brands of the company, creating around 40,000 new projects annually. Sustainable design is not just training courses for designers. It is primarily the selection of natural resources from sustainable sources. Therefore, customers in the collections of the Gdańsk company can find more and more clothes from organic cotton. Last year, LPP produced half a million pieces of clothing using it. The offer also includes products with lyocell – an ecological material made of wood cellulose.

As of 2014, LPP has stopped using wool from rabbit fur (angora) in its projects. In 2016, an agreement was concluded with the “Open Cages” organization, under which the company gave up the use of natural fur and thus joined the international Fur Free Retailer initiative. In addition, Mohito supports the Responsible Down Standard organization, making sure that down in each of the jackets produced by the brand comes from a certified source.

Step 2: We sew

The next stage of production is the sewing of designed collections by LPP business partners operating in Poland as well as in Europe and Asia. By entering into cooperation, each supplier signs the LPP Code of Conduct, that is clearly defined standards, compliance with which is a requirement, and without which cooperation with the company is impossible. The contents take into account the key provisions of the International Labor Organization conventions and the provisions of the Universal Declaration of Human Rights.

Work safety and observance of the rights of people producing brand collections is an absolute priority for the company. Therefore, in 2013, LPP was the only Polish company to sign the international ACCORD agreement. As a result, 86% of the originally identified threats have already been leveled. In 91% of the factories, electrical installations were replaced or modernized, in 78% of the entities additional fire protection was installed, and in 66% of the facilities, the construction of buildings was reinforced as recommended. For the parties to the agreement, the education of employees in the field of work safety is particularly important. As part of the “Safety Committee Training” program, by the end of 2017, 72,000 employees of Bengal factories were trained. LPP allocated PLN 16 million for the control of the supply chain in 2013-2017, and the budget for this purpose in 2018 is PLN 5 million. This year in January, the successful cooperation with ACCORD also resulted in the extension of the contract with the organization for the next 3 years.

Step 3: We distribute

Distribution is one of the key elements in the production process. That is why LPP puts a lot of emphasis on minimizing the negative impact on the environment and looks for solutions to minimize its contribution to generating pollution. The issues of packaging used in distribution are not without significance. Hence, 30% of the cartons that ship the products are used again. The remaining part is supplemented with cardboard boxes produced from reliable sources, which ensures the FSC (Forest Stewardship Council) certificate.

Step 4: We sell

LPP is also an extensive sales network – the company has over 1700 stores in 20 countries. At this scale, any apparently unnoticeable savings have an impact on environmental protection and sustainable development. All showrooms use modern energy-saving LED screens. Also, automatic lighting management systems have been introduced that significantly reduce the use of energy. In the latest concept of the Reserved brand showrooms, a remote light management system was introduced, thanks to which the energy demand of showrooms decreased by 18% for the same retail space. The LPP brand showrooms also use systems that reduce the power consumption of the air conditioning, using the free cooling method, i.e. cooling with outside air.

Clothing production is a complex process. The Gdańsk company makes every effort to introduce solutions reducing negative impact on the natural environment at every stage, as well as ensuring safety and decent working conditions for its employees and suppliers.

The LPP company is also thousands of people who, in addition to their passion for fashion, derive energy from social activities. Social sensitivity manifests itself in numerous projects implemented for the most needy. Only in 2017, LPP donated financial and material resources worth over PLN 2 million to charity in Poland.

All information on corporate social responsibility carried out by LPP is available at www.lppsa.com/odpowiedzialnosc-csr. More information on non-financial activities can be found in the integrated report on the company’s website www.lppsa.com.

Download integrated report (EN)

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LPP SA, is one of the most dynamically developing clothing companies in the region of Central and Eastern Europe. For over 25 years, the company has been consistently operating in Poland and abroad, achieving successes in the demanding clothing market. LPP SA manages 5 fashion brands: Reserved, Cropp, House, Mohito and Sinsay. The company has a network of over 1700 showrooms and on-line stores of all of its brands, and creates jobs for approx. 25,000 people in offices and sales structures in Poland, Europe, Asia and Africa. Currently, LPP stores are already operating in 20 countries, and online sales take place in 11 countries. LPP SA is listed on the Warsaw Stock Exchange as part of the WIG20 index and belongs to the prestigious MSCI Poland index.