Our Approach to Sustainability
Our mission is to create an omni-channel retail network that creates optimal conditions for society to make safe, high-quality, long-term investments in the younger generation. Since its foundation, Detsky Mir has been guided by the principle that has become the Company’s motto: “A happy childhood for all!”
Our Approach to ESG
For more than 70 years we have worked to ensure that families with children have access to a wide assortment of quality children’s products. In line with principles of sustainability (ESG) and responsible business conduct, Detsky Mir focus in particular on corporate governance and environmental issues, social responsibility, and charitable initiatives.
The Company’s approach to doing business responsibly is becoming more systematic and structured. Understanding the strategic importance of these aspects throughout the Company allows us to deliver consistently high growth rates from year to year and strengthen our leadership in the children’s goods market.
The Management Board and Board of Directors regularly review issues relating to responsible business conduct and sustainability. Sustainability is overseen by the Board of Directors, while sustainability initiatives are led by the Working Group on Sustainability, which comprises experts in the field and is chaired by the CFO.
2020 Key Achievements
- Creation of the Working Group on Sustainability – a single coordination council for the Company’s sustainability activities
- Update to the Charter of the Committee on the Strategy and Sustainability at Board of Directors level
- ESG analysis followed by development of a roadmap to further integrate ESG into the Company’s business model and strategy
- Launch of a training program on responsible personal and corporate data handling for all Company employees
- Preparation of the debut report on greenhouse gas emissions (calculation of figures for scopes 1, 2 and 3)
- Environmental campaigns at Detsky Mir offices and stores including collections to recycle clothing and footwear, used household appliances and batteries, as well as waste paper
- Increased energy efficiency at our distribution centers and in stores
- Establishment of environmental requirements concerning transport and fuel for logistics companies
- Updated sustainability goals to align with the United Nations Global Compact and contribute to the achievement of its agenda
- Development and integration of Supplier Code of Conduct (100% of suppliers signed the declaration) into business processes
- Development of the Sustainability Strategy and approval by the Board of Directors
- Integration of Sustainability Strategy KPIs into the management incentive program
- Improvement of ESG ratings (current rating from MSCI of “B”)
- Conducting a debut audit of suppliers for compliance with sustainability principles
- Development of long-term partnerships and joint initiatives in the of environment and responsible waste management
- Economical resource usage: calculation of greenhouse gas emissions and analysis of reduction potential, implementation of energy efficiency, waste disposal and recycling programmes
- In-depth analysis of IT system vulnerabilities
- Participation in international associations and initiatives including BCI (Better Cotton Initiative) and ZDHL (Zero Discharge of Hazardous Chemicals)
Our achievements would have been impossible without dialogue with key stakeholders, which is a core focus for Detsky Mir. Key stakeholders include buyers, employees, investors, suppliers, industry organizations and local communities.
Constant and open dialogue with all key stakeholders gives us 360-degree visibility of our business and allows us to fully reflect all risks and opportunities in our strategy and daily operational decisions, while maintaining our long-term sustainable growth trajectory for the benefit of all stakeholders.