PLN for pandemic relief
we committed as part of
the #LPPpomaga
campaign
of the women we employ
hold managerial
positions at the LPP
Headquarters
Since 2017 we have been publishing comprehensive annual reports to explain our goals and commitments. The annual reports also disclose our financial results and describe the environmental and social impacts of our operations. Each report is a compendium of information about LPP, our characteristic business model and the impact we have on the life of our workers, members of local communities and the natural environment. It is also an excellent basis for verification of the progress we make when it comes to achieving the goals we set for ourselves.
The pandemic triggered in us the need to become more responsible in many aspects of our everyday existence: more responsible for our company in order to ensure its safety and stability, more responsible for our workers in order to protect their jobs, and more responsible for our business partners who were struggling to survive in the face of the pandemic.
Since the outbreak of the pandemic, each day we had been learning of new developments and watching the world around change like an ever-shifting kaleidoscope. From the first days of the lockdown, we decided to stand firmly on the values of LPP and act. Our Energy fuelled further bold decisions. Thanks to the ambition of our teams, we set the bar high despite the pandemic. Responsibility for our employees and the spirit of cooperation allowed us to keep our eyes on our organisation’s goals.
The first and most fundamental task we faced was to ensure of employment continuity and protect jobs, as well as to keep our workers safe in all locations. Our second goal was to maintain accounting liquidity and adapt our operations in order to function in the face of the international market freeze and unpredictability along the supply chain. Despite the difficulties and the deepening global crisis, we have decided to continue implementing our sustainability strategy. We also brought off the largest social campaign in the company’s history, #LPPpomaga (#LPPhelps). Thanks to flexible actions, valiant decisions and financial reserves, the LPP Group successfully managed to rise up to the challenges of the new reality.
In 2019 we set the targets of a new strategy for sustainable development for 2000–2025. The strategy guides LPP to aft in four main spheres: environmentally friendly production, chemical safety of products, elimination of non-recyclable packaging and implementation of ecologically sound solutions in the buildings of the LPP Headquarters and retail network. We have done everything to ensure that, despite the pandemic, the struggle for the future of our company, or the prolonged closures of our stores, do not stop us from achieving our strategic objectives.
Despite the crisis:
The new economic and social reality gave us an impulse to implement a range of innovations, thanks to which we have successfully responded to the changing shopping habits of our customers. In the course of three weeks we effectuated a transformation planned to unfold in three years! As a result, we became a fully omnichannel organisation that brings together physical sales and e-commerce. . We are the first Polish retail company of this size which decided to undertake so dynamic a change.
3 design offices in Poland
(Gdańsk, Cracow, Warsaw)
Almost 300 designers,
5 diverse brands
Over 1 100 suppliers
from Asia and Europe
2 representative offices in Asia
(Shanghai and Dhaka) to support
the manufacturing process
Ca. 9% of LPP collections are
produced in our close neighbourhood,
while ca. 91% are produced in Asia
We do not own any
manufacturing facilities
235 tys. m2 of combined
warehousing space
Distribution Centres in Poland
and abroad (Moscow, Romania, Slovakia)
23 mln e-commerce orders
fulfilled in the reporting year
Our collections are available
in 38 countries on 3 continents
(at physical stores and on-line)
1 856 stores with the combined
space of 1,435,000 m2
across 25 countries
Online sales in 30 countries
Almost 233 mln items of
clothing sold annually
In the 2020/21 reporting year we combined the structures of our retail network and dynamically growing e-commerce. We managed to successfully implement original solutions for the optimisation of the processes of managing product availability and customer orders. Our smooth transformation into a fully omnichannel organisation allowed us to maintain financial stability.
LPP’s good practices and initiatives for responsible business win numerous competition awards and score high on ranking lists. We take these distinctions and accolades as a recognition for our efforts and motivation to continue to implement the highest standards of sustainable development in our organisation and value chain. We are proud to present LPP’s 2020/21 competition and high ranking achievements.
Recognition for “For creating a global Polish brand and actively working for the benefit of the natural environment”. The award is granted to people, institutions and enterprises that have a significant, ground-breaking impact on positive transformations in various segments and sectors of the economy and indicate the directions of its development by implementing activities that fit in with the positive trends shaping the future.
Awarded in the “Company” category for the implementation of the radio-frequency identification (RIFD) technology in the Reserved retail network.
“Silver CSR Leaf” is awarded based on an organisation’s record as regards corporate governance, human rights, relations with employees, environment protection, customer care, business integrity and social involvement.
The main prize in the “Integrated report” category for an excellently prepared report that addressed all the key topics; for a clear and precisely-worded social message that communicated the values the company cherishes, important commitments for the future and, above all, for maintaining a very high standard of reporting.
Award for “Digital Capabilities” – the jury appreciated the significant change in the functioning of LPP’s international retail network and innovative use of advanced technological solutions to improve organisation, logistics and e-commerce.
Awarded in the “Firm” category for a long-standing and consistent incorporation of climate and environmental issues in business operations.
Awarded in the “Corporate foundation” category for the Foundation’s over 20 years of involvement in charity work that has benefited over a thousand of community service organisations across Poland. The foundation was nominated by the Aid Society St. Brother Albert for many years of material support for the wards of the organization, donating them to clothes collected as part of a public fundraising campaign and donating gift cards for the purchase of protective clothing for street workers working for the organization.
The Kendall Jenner x Reserved advertising campaign received the Best of Jury award in the “Best of Craft” category. It also won golden awards in the following subcategories: “Production Excellence”, “Casting”, “Color Correction”, and a bronze award for “Online Video”. The brand was also successful in the “Photography” category: it won gold for the Re.Design campaign photographed by Bartek Wieczorek, silver for the Reserved feat. Hoffland, which supported the Hoffland exhibition at the Museum of the City of Gdynia and was photographed by Zuza Krajewska, and bronze for the digital session Twin Room.
The ranking reflects the results of a survey of investor relations in WIG30 companies according to institutional investors.
Corporate Climate Awareness Study
The ranking is based on a study of 151 reports of large and middle-sized companies as regards transparent disclosure of information on an organisation’s climate change impacts and incorporation of these issues into the management processes.
A global competition to identify and highlight reports that comprehensively present not only financial but also non-financial aspects of your business.
The oldest and the most prestigious Polish capital market ranking. It evaluates companies using the criteria of the “main ranking and investor relations”.
In categories: scope 3 emissions, environmental management and initiatives for carbon footprint reduction.
The Carbon Disclosure Project ranking is based on a survey of climate awareness among companies, cities, and regions: on a scale of A (highest score) to F (lowest score).
For years now we have been growing our business relying on well-tested and trustworthy suppliers. Our partnerships are governed by the LPP Quality Guidebook, which defines our product quality standards, and our original LPP Code of Conduct, which focuses on occupational health and safety principles.
Each of our suppliers needs to meet the requirements of the LPP Code of Conduct. The document incorporates the provisions of the International Labour Organisation conventions and the Universal Declaration of Human Rights. It also requires that the suppliers take care of the natural environment. We care about the quality of cooperation with our business partnerships by introducing control mechanisms along the supply chain. We are especially keen to spread our standards among the suppliers and carefully verify their implementation.
“We really appreciate the support we have received from the LPP team both locally and in Poland. I am pleased to express my gratitude to LPP management for taking full responsibility of confirmed
orders and accepting shipments during the difficult time of the COVID-19 pandemic. It proves high ethical standards and commitment which LPP maintains in relations with its supplier partners.”
“In the past months, business has been challenging for Renaissance Group as it has been for all organisations and all industries. We have struggled operationally, there has been a business decline, and our expansion plans were put to a halt. With the help of our customers’ cooperation, our colleagues’ consideration and our government’s support, we are hoping to have left behind the past and moving forward to a better season. We would like to especially mention LPP’s support and cooperation throughout the past years and during the COVID-19 situation. We have always received your guidance, cooperation and hand-holding in all aspects of technical know-how, business growth and sustainability. And for this reason, LPP is now our second biggest customer and we expect on-going future business growth and partnership.”
Together with employees from 25 countries, we were tested on an unprecedented scale in the year of the pandemic.. Following the introduction of COVID-19 restrictions, in just a few days, LPP closed its nearly 1,700 retail locations. The company’s revenues dropped by 90%. With our employees facing loss of income, unpredictable future and a state of suspension, we were forced to verify the way we thought and acted so far. In the end, our energy, ambition and the strength of our teams bore fruit. We managed to save our company and almost all jobs.
LPP employees passed the pandemic test with flying colours. They proved once again that their ability to adapt to changing conditions and responsibility for oneself and one’s environment, including the company we are all a part of, enables it to survive tumultuous times.
We know that the only good answer to quickly changing conditions is ongoing education that unlocks the employees’ potential and boosts their motivation. For training to be effective, it has to specifically address the problems and challenges faced by the teams at a given moment in time.
Sustainable fashion, reducing our environmental impacts and social responsibility – these are our mottos when drafting all our plans and making all our decisions, from the micro to the global scale. Every step we take, we make sure to act fairly, something our employees, collaborators, business partners and customers greatly appreciate. First and foremost, however, we want our efforts to be felt by our planet.
In 2020 we joined two important initiatives working to limit negative environmental impacts along the supply chain:
Our climate management actions and initiatives aimed at reducing the carbon footprint scored high on the CDP Climate Change 2020 list.
product and production
in production
plastics under control
in HQ’s and retail network buildings
(*where there is an option to choose your provider)
We continually strive for our clothes and accessories to be made of materials that are of good quality, safe and produced in a way that is more aligned with the Eco Aware standard. For this reason, we try and introduce more environmentally friendly materials into LPP collections. These include organic cotton, which is grown with the use of ecologically-sound methods and plant protection products while conserving water; other organic fibres, such as linen or hemp, which are sourced from certified producers; a range of wood cellulose fibres, such as TENCEL™, REFIBRA™, ECOVERO™, MODAL™; as well as recycled fibres.
3 categories of materials:
1. 100% organic cotton
2. 95% organic cotton at the minimum[1]
3. 50% organic cotton at the minimum.
Grown with the use of natural plant protection products and fertilisers only; without genetically modified seeds or synthetic growth stimulation. Organic cotton farming helps maintain soil fertility and protect biodiversity.
Organic fibres used to make Eco Aware products have been certified by independent institutions in line with the leading international standards such as Organic Content Standard (OCS) and Global Organic Textile Standard (GOTS). Our employees verify each certificate and complete documentation that confirms that the material is complies with our requirements. As compared with conventional agriculture, organic farming has a far smaller impact on the natural environment.
1] The composition of organic cotton most often used in our collections.
50% organic linen at the minimum
Linen is a natural fibre characteristic for its high durability and tensile resilience which means clothes made of this material can last for many seasons. It is a perfect choice for hot days. Organic linen is sourced from plants grown with the use of natural plant protection products and fertilisers only, and without genetically modified seeds.
Organic fibresused to make Eco Aware products have been certified by independent institutions in line with the leading international standards such as Organic Content Standard (OCS) and Global Organic Textile Standard (GOTS). Our employees verify each certificate and complete documentation that confirms that the material is complies with our requirements. As compared with conventional agriculture, organic farming has a far smaller impact on the natural environment.
30% LENZING™ ECOVERO at the minimum
Environmentally friendly viscose produced by Lenzing from certified wood cellulose sourced from sustainably managed forests that guarantee reforestation. The fibre is produced in a closed-loop cycle and makes it possible to generate up to 50% less CO2 emissions. It also produces less water contamination as compared to conventional viscose. LENZING™ ECOVERO™ is certified by the international EU Ecolabel as compliant with strict environmental standards in its production processes, from the sourcing of raw materials to distribution and disposal.
Cellulose fibres are biodegradable and do not contaminate water with plastic particles, that is why they are an eco-friendly alternative to synthetic materials such as polyester.
30% TENCEL™ Lyocell at the minimum
A biodegradable cellulose fibre, sourced mainly from eucalyptus wood from sustainably managed forests that guarantee reforestation. Its production is environmentally friendly thanks to the use of a closed-loop cycle in which more than 99% of the solvent used is recovered and returned to the system for reuse, thus reducing energy and water consumption. TENCEL™ Lyocell is internationally certified with the EU Ecolabel.
Cellulose fibres are biodegradable and do not contaminate water with plastic particles, that is why they are an eco-friendly alternative to synthetic materials such as polyester.
The emergence of COVID-19 has focused our efforts on tackling the impact of the pandemic. We first responded to the urgent need to support our business and social partners abroad.
In cooperation with Polish diplomatic missions in Shanghai, Guangzhou, Chengdu, Hong Kong and Beijing, we distributed 500,000 masks to employees of these institutions and Polish communities and companies.
When the epidemic threat also emerged in Poland, we started supporting hospitals, health care facilities, ambulance stations, medical care centres and other organisations with personal protective equipment.
LPP’s integrated reports presenting the non-financial and financial results of LPP SA and the LPP Group have been published since 2017. Initially, each covered a calendar year. The 2019 report included data for the thirteen months from 1 January 2019 to 31 January 2020. The latest report concerns the period starting on 1 February 2020 and ending on 31 January 2021.
The transition from calendar year to reporting year was made to better reflect the seasonal nature of the business and thus increase the utility of the reports.
The full report for 2020/21 can be found here:
Download the report
