Responsible organisation

Transparent communication of our ESG progress

New policies for suppliers

We want the process of making products to have no negative impact on forests, soils, waters or animals, and that those employed in production are treated in a way that respects human rights by providing decent working conditions and preventing child labour.

We have taken steps to minimise the ecosystem impact of our own brand products, including coffee, tea, cocoa, soya, fish and seafood across our own brands ranges. Therefore, we implemented an Animal Welfare Policy and Policy of Sustainable Harvesting of Plant Raw Materials and Sustainable Fishing of Fish and Seafood. We have eliminated palm oil from our own brand products and in accordance with our Sustainable Palm Oil Policy - from 1 January 2023, 100% of producers brand products contain only palm oil from certified sources. We implemented Water Policy that sets out the rules relating to the reduction of water use and the protection of water resources and Waste Management Policy, by which we aim at reducing the amount of waste that is sent to landfills. We are conducting an analysis of our own operations to limit the risks of operational activities in areas in close proximity to critical biodiversity of global or national importance, which will See our policies conclude as Biodiversity Policy in 2023.

Our "Convenient and Responsible" report among the best sustainable development reports in the world

The "Convenient and Responsible" report for the year 2022 is already our fifth Responsibility Report prepared by us. The information found within presents a summary of selected actions implemented by the Żabka Group as part of our Responsibility Strategy. The report has been prepared in accordance with the latest non-financial reporting standard, the Global Reporting Initiative (GRI Standards), Sustainability Accounting Standards Board (SASB), and has undergone independent external verification.

The competition that assesses sustainable development reports is organized by Hallbars, an international organization that brings together talents from Europe and Asia, focusing on promoting readership of such reports. Over 1,500 sustainable development reports were submitted by companies and organizations from 94 countries. In 2023, particular emphasis was placed on the food and beverage sector. Out of 294 submissions from 51 countries, the best reports in the world were selected. The reports were evaluated based on their content, readability, and production quality.

We are the first Polish organization to receive the Gallup Exceptional Workplace Award

The Gallup Institute is the world's oldest institute for public opinion research. The award is preceded by a comprehensive analysis that includes data from over 2 million employees employed in 276 organizations across 54 industries and 96 countries. Award recipients are organizations that create exceptional workplaces. According to institute data, as many as 72% of employees in award-winning organizations are engaged, while the global average reaches only 21%.

For the past five years, we have regularly measured the engagement and satisfaction of our employees. According to the latest Gallup Institute survey results, Żabka is among the top 23% of companies worldwide with the most engaging organizational culture, ranking at the 77th percentile among companies worldwide.

Engagement drives concrete business indicators. According to Gallup, organizations with high engagement also experience 41% less absenteeism, 59% lower employee turnover, and 10% higher customer engagement scores. Engagement levels also impact workplace safety. Companies that maintain high levels of engagement report up to 70% fewer safety-related incidents.

The Gallup survey is anonymous and includes all employees and associates of Żabka. The participation rate in the latest survey reached a record-breaking 92%.

Measuring engagement and inclusivity across the group

According to Gallup Institute, our employee’s engagement level is five times higher than the average Polish company.

Behind our business success are several thousand committed employees, and franchisees. Together we have created an organisation based on standards of equal treatment and transparency, where every employee, co-worker and franchisee has equal opportunities and can openly talk about and implement their ideas. Achieving this requires an appreciation of many different needs and points of view, which is why we conduct the Gallup Q12 (measuring engagement level of employees) and Gallup Inclusion Index survey.

The Gallup questions are a framework for us to know how to create and improve our working environment. We analyse the data and prepare action plans to address issues that have impact on engagement and inclusion of our employees. As a result, we create a unique organisational culture, able to recognise the potential of everyone, while creating an environment for open collaboration and sharing experiences.

Żabka with EQUAL-SALARY certification

Żabka has become the first Polish company to receive certification from the EQUAL-SALARY Foundation, confirming that gender has no role to play in determining how much employees are paid.

The certification is based on UN guidelines and recognised by the EU. The awarding body is the Swiss EQUAL-SALARY Foundation, an independent non-profit organisation formed in 2010 to take a science-based approach to the inspection and certification of organisations’ payroll policies. As well as auditing salary data, the inspectors ran focus groups where employees could openly discuss their perceptions of equal pay. The certification therefore confirms the Żabka’s credibility in the eyes of the workforce as a true equal-pay employer. Żabka is naturally pleased with this recognition, as its values-based Payroll Policy is designed to ensure that employee remuneration depends entirely on an individual’s skills, the results they achieve and their impact on the organisation. The requirement for certification to be renewed after three years means the Group needs to continuously monitor and improve its salary processes.

We have received two CSR Leaves of a magazine “Polityka” and an award for good practices

For another consecutive year, the weekly magazine "Polityka" has awarded us the Golden CSR Leaf. Żabka has also received the Green CSR Leaf for the second time, which has been awarded since last year to companies whose key actions focus on reducing their negative impact on the climate. We were also recognized for our good practices in stores related to closing the resource loop. Only 5 organizations, including Żabka, out of 127 submissions, received all three awards combined.

The organizer once again appreciated the fact that we actively and consistently strive to minimize our negative impact on the environment by working on reducing the energy intensity of our operations, seeking low- and zero-emission energy sources, testing innovative green technologies, and encouraging consumers to make planet-friendly choices.

The Golden, Silver, and White CSR Leaves by "Polityka" have been awarded for the twelfth time based on the analysis of a survey filled out by companies, developed according to the guidelines of the ISO 26000 standard on the basic principles of social responsibility, and in reference to the European Standards for Sustainable Development Reporting and the latest ESG trends.

ESG-linked financing

Modern business must be credible and transparent in its operation, and responsibility and trust are currently the most valuable assets.

Our goal is to plan the development of our entire organisation in a responsible manner. We have already signed six agreements related to sustainable finance instruments, and we are actively cooperating with other market participants in this matter. Financial instruments based on ESG goals are an additional motivation for us to meet our commitments and proof that we take these commitments seriously. All agreements contain the company’s commitments related to the implementation of selected, measurable ESG goals, consistent with the Responsibility Strategy announced by Żabka Group in 2021. The first aspect is decarbonisation with goals validated by Science Based Target Initiative, the second one related to good nutrition area, where we support our customers to make more informed choices. The progress in achieving the objectives set out in the agreement will be verified after the end of a given financial year by an independent assurance provider. If we fail to achieve specified targets within an agreed timescale, we will provide additional funding for activities supporting United Nations Sustainable Development Goals (SDGs).

Our commitment to transparent reporting

Reporting on our ESG performance is a key aspect of our stakeholder communications and an essential way of building the credibility of the Żabka Group.

To ensure the highest standards of disclosure, we have prepared this, our fifth Responsibility Report, according to the latest Global Reporting Initiative Standards and the requirements of the Sustainability Accounting Standards Board (SASB). To ensure compliance and data reliability, we have procured an independent external verification in accordance with ISAE (International Standard on Assurance Engagements) 3000.

Having in 2020 become one of the first companies in Poland to publish a Climate Report, we have included this as part of this Responsibility Report, setting out our decarbonisation plan and reporting on progress against our science-based targets. Our approach has been rewarded in the past by prestigious awards. Our 2021 report was selected in the Hallbars Awards 2022 as one of the five best such disclosures in Central Europe.

Verification and certification of ESG activities

In 2021, we underwent the external EcoVadis certification process again. After receiving the medal last year, we developed a remediation plan aiming to make our undertakings more professional. The said plan has been successfully implemented throughout the organisation. It has resulted in a significant increase of scores in all areas subject to assessment. Twenty-one criteria divided into four categories are taken into consideration during the certification process: human and employee rights, the environment, ethics and sustainable procurement. As a result of the assessment, we have received the highest possible distinction — a platinum medal. This ranked us among 1% of companies globally that are most successful in integrating ESG aspects into their strategies and operations. Additionally, we received the highest possible score (“best in class”) for managing our carbon footprint. This was possible thanks to implementing a system for measuring, monitoring and reporting emissions and thanks to setting reduction targets approved by SBTi.

Promoting equity

The commitment to implement a culture of equal opportunities and an inclusive organisational culture is expressed in the Equity Policy we have adopted. Its implementation, communication and monitoring are the responsibilities of the Equity and Inclusive Organisational Culture Manager. That is how we guarantee that decisions are taken without prejudice, based on competence, experience and the work results achieved. The Żabka Group is open to people with different identities, experiences, competences and prospects, and that is the spirit we desire to build our teams on. The positive results of our activities are confirmed by the outcome of the pulse survey. This year, its scope was expanded to include questions about diversity and inclusive organisational culture: “the company is open to diversity among employees” and “I am treated equally in the company, regardless of who I am”. The aim of those questions was to verify whether employees have a sense of equal treatment and whether the Żabka Group, as an organisation, is open to diversity. The study participants assessed both statements as highly accurate: on a scale from 1 to 10, the score regarding the first question equalled 8.7, and in the other, it amounted to 9.1.

Caring for our employees’ growth

Żabka Academy is a platform offering a series of training programmes and development activities tailored to the needs of employees, as well as our co-workers and franchisees. We offer on-boarding, specialist and managerial training. The Academy also conducts unique projects designed in cooperation with schools or universities, such as doctorate theses implementing specific solutions. All employees can also benefit from subsidies for English language courses — group or individual classes are offered, and the courses are supplemented by access to an e-learning platform. In 2021, a new module Logistics Manager Academy was introduced in response to the development needs of personnel performing logistics-related tasks. We have also ensured that managerial competences were strengthened. The management staff commenced a dedicated Senior Leader Development Programme. The most experienced managers participate in a diagnostic programme leading to the development of growth programmes tailored to their individual needs. The most talented in the organisation are able to boost their qualifications through training sessions organised by INSEAD, Stanford University, Yale and other institutions. All those activities gradually bring us closer to achieving the strategic objective. In 2021, the average time spent by each employee on their development equalled 22 training hours, without the mandatory OHS training considered.

Code of ethics and conduct for franchisees

We are concentrating on building a complex ethical system that covers all of our operations. In order to do this, apart from Code of Ethics for our employees and business partners, we have also implemented the Code of Ethics and Conduct for our franchisees. To date, nearly 97% of franchisees have signed it and more than 60% have completed the associated e-learning course. The document is aimed at supporting franchisees and their employees in making decisions that comply with the ethical standards adopted by Żabka. It therefore addresses aspects such as the need to operate in compliance with the law, respect for human rights, principles of fair competition, conflict of interest, environmental protection, working and pay conditions or relations with the environment. In order to check franchisees’ compliance with the Code, Żabka reserves the right to external verification. The franchisee is obliged to report any violations through the whistleblowing platform or in writing, by sending a letter addressed to the Żabka headquarters and in in case of any questions concerning the provisions of the Code, the Compliance Department is there for a help. We guarantee a full anonymity to a person who reports any violation.

We have adopted the Code of Conduct and Ethics for Employees

The document supports our employees whenever they face an ethical dilemma. It is applied throughout the entire value chain, referring both to relationships existing within our organisation and to those with external stakeholders. Provisions reminding about ways of reporting any violations of the Code, as well as about other applicable policies and procedures constitute a key element of the Code. The strengthening of ethical standards is supported by two mandatory annual training programmes focusing on compliance issues and on the Code of Ethics. In 2021, 90% and 77% of our employees completed those programmes, respectively. We are continuing our efforts to increase the share of those trained in the coming years. By expanding our employees’ knowledge, we also ensure more efficient management of the whistleblowing process. In 2021, we received four reports about potential violations of the Code. They were all subjected to internal investigations performed by the Ethics Committee and were deemed justified. They Approximately 190 suppliers generating more than 30% of our total turnover are being assessed in the pilot phase of the project. In the process, we use the global SMETA platform, developed to exchange information on production standards within the supply chain. Suppliers are evaluated in five areas, and the verification results in an assessment of the risk of cooperation with a given company. included allegations of discrimination and corruption, but the investigations failed to confirm any of those accusations. We have taken steps to prevent the similar situations from occurring in the future, in accordance with the procedures in effect.

We have implemented the Code of Conduct for Business Partners

The document is based on key international and national legislation. Its provisions cover the full spectrum of business activity – from ethical business management and respect for workers’ rights, through the quality of products and services offered, to environmental and climate impacts. We build our business relationships based on mutual trust. That is why the Code identifies channels for reporting potential violations of its provisions and clearly presents mechanisms for handling these. We require all business partners to confirm, with their signature, that they have read and understood the document. We also work on introducing a system for verifying our business partners and for analysing supply chain risks. Approximately 190 suppliers generating more than 30% of our total turnover are being assessed in the pilot phase of the project. In the process, we use the global SMETA platform, developed to exchange information on production standards within the supply chain. Suppliers are evaluated in five areas, and the verification results in an assessment of the risk of cooperation with a given company.