Why is this important?
According to experts, non-financial reporting becomes a tool that is necessary for the further development of modern capital markets. The increasing number of regulations in this area, the gradual orientation of global financial flows towards sustainable investment, as well as social pressure are all factors that contribute to a systematic increase in awareness of sustainable development issues and reinforce the importance of standardised disclosures of issues related to environmental protection, social impacts and governance (ESG). Supplementing financial reporting schemes with non-financial data disclosures allows to obtain a full picture of the management process, monitor results and increase the accuracy of business decisions made. In the Żabka Group, we undergo external certification processes and comprehensively report non-financial issues in order to provide stakeholders with transparent information on how we manage our social, environmental and economic impacts and how we implement the priorities defined in the Responsibility Strategy.
Reporting in accordance with the best practices
We aim to report externally in accordance with the best practices, taking into account international standards.
The Żabka Group will publish an integrated report, from 2022 onwards, in accordance with the guidelines of the International Integrated Reporting Council (IIRC).
We will continue the EcoVadis certification initiated in 2020.
We will enhance our transparency by regular external verification of selected ESG aspects and undergoing selected ESG reviews since 2021.
We disclose non-financial and financial information in a transparent and reliable manner. We are transparent about the results of the activities undertaken and the degree of fulfillment of the obligations arising from the Responsibility Strategy. According to its assumptions, we publish data and management practices relevant to many groups of our stakeholders. We value the opportunity to exchange experiences with other companies – we want to inspire them to take ESG-related action, are willing to share our knowledge and are open to feedback. We also value opportunities to compare ourselves with other companies and to perform independent and objective assessments of our progress. That is why we regularly review our approach to managing ESG issues, including through participation in sustainable development reviews and ratings, as well as through independent audits. Transparency of our activities is also the foundation for cooperation with institutional stakeholders, including financial institutions. Thanks to our obligations under the Responsibility Strategy, we are gaining access to capital available to sustainable enterprises.
What have we done so far?
We are pursuing the strategic objective of the Żabka Group, meaning we make sure that our external reporting complies with the best practices and takes into account applicable international standards. We use proven standards and guidelines in our sustainable development activities, relying on the latest GRI (Global Reporting Initiative) standards, United Nations Global Compact principles, recommendations published by the World Economic Forum – “Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation” and guidelines of the Sustainability Accounting Standards Board (SASB). We have also drawn up a second Climate Report using guidelines of the Task Force on Climate-Related Financial Disclosures (TCFD). In the report, we clearly communicate the risks and opportunities associated with climate change and the objectives and effects of our decarbonisation plan, as approved by the Science-Based Targets Initiative (SBTi). In 2021, we also concluded the first financial agreement based on ESG objectives resulting from the Responsibility Strategy, with the margin of the said instrument depending on progress in implementing our strategic commitments. Our ESG-related activities have been positively verified by EcoVadis, an international sustainability rating agency. We have received the highest possible distinction, a platinum medal, thus joining 1% of companies in the world which are successfully integrating non-financial factors in their strategies and operations.
We treat reports as one of the key communication channels with our stakeholders and as an element of building the company’s credibility. In order to ensure the highest quality of the disclosures, we decided to publish the 2021 report according to the latest GRI Standard, formally entering into effect in 2023. The compliance with GRI Standard and the reliability of data presented in the Responsibility Report are assured by an external verification performed in accordance with ISAE3000. The high quality of our reporting was appreciated by independent experts: the 2020 “Conveniently and Responsibly” Report received the main prize in the Sustainable Development Reports contest organised by the Responsible Business Forum and Deloitte. An independent jury has praised us for drawing up a well-structured and comprehensive report which clearly shows our mission, development vision, the company’s ESG strategy, precisely defines the business model and contains a practical executive summary. We are also aware of the growing importance of climate disclosures and that is why we decided, as one of the first companies in Poland, to prepare a Climate Report devoted, among other things, to analysing climate risks, in accordance with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. The publication presents our decarbonisation plan, together with a report on the achievement of SBTi objectives.
Financing based on ESG targets
We have entered into the first credit agreement and a factoring agreement which are based on the achievement of ESG targets, including those relating to the company’s decarbonisation plan. The values of the credit margin and the factoring margin, respectively, depend on the progress in fulfilling our obligations arising from the Responsibility Strategy. Such a financing method not only makes our commitments more reliable, but it also shows our declarations are backed by specific activities. The financing project was implemented thanks to close cooperation with the Santander Group, which actively supports entrepreneurs on their green transformation journeys. The solution made available is unique in the entire business sector and will also have a positive impact on the environment — it will be used to finance an automated and low-carbon distribution centre built in the town of Radzymin. Its launch is planned for the second half of 2022.
of ESG activities
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.