Part of the Neighborhood
2021 highlights
Financial and operating performance
International ESG ratings
Sustainable development
Our employees
Material topics
and decent working conditions
Priority SDGs
2021 highlights
- In 2021, we developed and launched our HR Strategy, with the main purpose of becoming the private employer of choice in the Russian retail sector.
- Setting the priorities in the corporate culture including care for colleagues, teamwork, flexibility and openness to change.
- Development of hybrid work options following a survey of over 7,000 employees on their preferred format.
- Successful completion of an employee engagement survey that covered over 71% of the total headcount.
- Corporate Academy saw the launch of new faculties and educational programmes, offering additional competency building opportunities to employees.
- Retail with Purpose, Magnit’s digital ESG training course, has been successfully completed by more than 17,400 employees and will become mandatory for new hires.
- Magnit spent a total of RUB 994 mln on employee benefits and other allowances in 2021.
Safe working environment
2021 highlights
- Over 80,000 of Magnit employees completed training in a range of occupational health and safety programmes.
- Over 400 of Magnit’s local regulations on occupational health and safety updated in accordance with the revised labour laws of the Russian Federation.
- Heads of units charged with more obligations and responsibilities related to occupational health and safety.
Over 80,000
of Magnit employees completed training in a range of occupational health and safety programmes.
Climate change and environmental stewardship
Material topics
Priority SDGs
2021 highlights
- In 2021, Magnit assessed the amount of refrigerant emissions and included them in total direct emissions (Scope 1).
- During the year, there were improvements across all our strategic indicators, including GHGs, use of energy and heat, water consumption, and waste management.
- 64% of all transportation was done using medium-duty trucks to reduce the environmental impact.
- The start of the Waste Morphology project consisting in an environmental audit of waste accumulating in containers used by Magnit’s stores.
- Magnit’s headquarters in Krasnodar levelled up its Green Office certificate, which confirms the Company’s adherence to sustainable development principles.
7 power generation centres
is planed to commission by 2025.
by 8%
reducred energy consumption since 2019
Sustainable sourcing
2021 highlights
- Pilot project for ESG certification of suppliers developed.
- Cooperation with local suppliers and farmers extended.
- In 2021, we held about 50 procurement sessions with suppliers from various regions.
- In 2021, we started testing a vendor-managed inventory system providing large suppliers with information on the current inventory.
The shares of Russian-made products in socially important categories:
Health and well-being
2021 highlights
- Establishment of an international coalition with eight major FMCG producers under the United for Healthier Future Initiative to improve the quality of life for consumers and local communities.
- Launch of the ‘Raising Responsible Consumers Together’ joint project with Nestlé aimed at fostering a nutrition culture among schoolchildren.
- Partnership with the Federal Research Centre of Nutrition, Biotechnology and Food Safety.
- Beginning of My Magnit magazine’s transition to publish content about healthy lifestyles, nutrition and products available in Magnit stores, and tap into new audiences.
- In 2021, Magnit scrutinised its private label assortment to increase the share of healthy products in its own production..
RUB 41,487 mln
Sales of private label health products
Contacts
Abouth the Report
We are happy to present Magnit's third Sustainability Report. Each year, we strive to enhance the quality of our non-financial reporting by demonstrating our commitment to sustainable development across all our business processes.
In the reporting year, we introduced an overview of the progress towards our goals under our Strategy 2025 broken down by priority area. Our reporting now covers our management approach to a wider range of topics, including health and safety, information security and human rights.
In our reporting, we aspire to expand the scope of applicable standards, disclosing SASB industry metrics and taking into account the TCFD recommendations. In 2021, we focused on analysing our contribution to the UN Sustainable Development Goals and scrutinised all our projects and initiatives for their compliance with each SDG target.
As at the date of publication, we are witnessing growing geopolitical and economic risks that may have an impact on the business of Magnit and its suppliers. The supply of food, hygiene products and home essentials for the needs of consumers has always been and will be our top priority. We will do everything in our power to keep the supply chain resilient and support our suppliers, including a significant number of local producers. Our long track record in the market proves that we remain a reliable employer and business partner in the most challenging situations thanks to the existing infrastructure and resources, responsible business practices and robust corporate governance.
Disclaimer
The Sustainability Report should be read as a whole taking into account the content of all sections as well as the notes and the explanations herein, including the information set forth in this section.
The Sustainability Report was prepared based on the information available to Magnit and the Group as of 31 December 2021, unless otherwise implied by the meaning or content of the information provided. When using the information in this Sustainability Report, please note that the information on S&P and MSCI sustainability ratings assigned to Magnit is given as of 31 December 2021, whereas as of the date of actual publication of the Sustainability Report such ratings have been revised due to the general change/withdrawal of ratings of Russian issuers and entities.
Forward-looking statements are not based on actual circumstances and include all statements concerning the Company’s intentions, opinions, or current expectations regarding its performance, financial position, liquidity, growth prospects, strategy, and the industry in which Magnit operates. By their nature, such forward-looking statements are characterised by risks and uncertainties since they relate to events and depend on circumstances that may not occur in the future. .
Such terms as “assume,” “believe”, “expect”, “predict”, “intend”, “plan”, “project”, “consider” and “could” along with other similar expressions as well as those used in the negative usually indicate the predictive nature of the statement. These assumptions contain risks and uncertainties that are foreseen or not foreseen by the Company. Thus, future performance may differ from current expectations, therefore the recipients of the information presented in the Sustainability Report should not base their assumptions solely on it.
Since February 2022 we are witnessing growing geopolitical tension and certain countries have announced and imposed and subsequently expanded various sanctions against the Russian Federation's sovereign debt, certain Russian banks, organizations and individuals. The Russian Federation has taken a number of retaliatory measures, including those drastically changing the regulation of Russian business compared to what it was as of 31 December 2021. These events, separately or jointly with other known and unknown circumstances, including those arising after 31 December 2021 in terms of changes in the conditions for the functioning of international businesses in the territory of the Russian Federation, may affect the Company's strategy, plans, ongoing projects and partnerships in the field of sustainable development.
In addition to official information on the activities of Magnit, this Sustainability Report contains information obtained from third parties and from sources which Magnit finds to be reliable. However, the Company does not guarantee the accuracy of this information, as it may be abridged or incomplete. Magnit offers no guarantees that the actual results, scope, or indicators of its performance or the industry in which the Company operates will correspond to the results, scope, or performance indicators clearly expressed or implied in any forward-looking statements contained in this Sustainability Report or elsewhere. Magnit is not liable for any losses that any person may incur due to the fact that the above person relied on forward-looking statements. Except as expressly envisaged by applicable law, the Company assumes no obligation to distribute or publish any updates or changes to forward-looking statements reflecting any changes in expectations or new information as well as subsequent events, conditions, or circumstances.