Magnit is a leading Russian retailer with almost 27000 shops in just under 4000 cities and towns in Russia. We have millions of daily touchpoints with our stakeholders: customers, employees, suppliers, authorities and of course investors. It makes an enormous difference how we operate and conduct our business.
We have always tried to operate as a responsible corporate citizen and conduct our operations in a sustainable way. In 2019 we launched a project to systemize this approach and started developing a comprehensive Sustainability strategy, which allowed us to improve on these issues and measure ourselves in a more efficient way against best industry standards.
Our sustainable strategy "Retail with purpose" is firmly based on the 10 principles of the UN Global Compact and their 17 Sustainable Development Goals as well as stakeholder expectations which we always take into consideration in sustainability management.
We have set ourselves an ambitious goal of embedding sustainability into every aspect of the business and its processes, having it motivate our employees and inspire our customers, help us develop the communities where we operate and set an example for the industry. We look forward to building a vast network of partners from all areas of our stakeholders as much more can be achieved with effective partnering than with any entity working in isolation in achieving the ambitious goals we have set.
We have set ourselves an overall target that is to become the #1 Retailer with Purpose in Russia.
We have adopted 5 key Ambitions that will guide our work, goals and commitments:
We have drafted and are now implementing a whole new set of policies and statements that govern our sustainability approach, each of which regulates the procedures for Magnit’s interaction with stakeholders within a specific subject area.
We have identified 5 different focus areas for our work, each of which have multiple working streams and include target indicators we will undertake to achieve by the end of 2025 compared to the base year 2019. The focus areas are:
The sustainability work is monitored by the Board of Directors with regular reporting to the Strategy and Capital Markets Committees as well as the Board of Directors in whole.
We have established a Sustainability Steering Committee, which is headed by our CEO and has all key business area heads represented. This Committee will coordinate Magnit’s sustainability activities including the interaction with stakeholders as well as make recommendations on the strategic direction for improving long term business sustainability in response to the social, environmental, resource and energy challenges. The Committee reports to the Board of Directors. Under the supervision of this Committee there are 16 working groups building a sustainable business model in all areas of our operations; retail, production, sourcing and logistics.