Recommendations for suppliers
One of the X5's sustainable development goals is to create a responsible supply chain, increasing the proportion of goods on shelves that are produced (both the goods themselves and their packaging) in a responsible manner. We understand that achieving our Sustainable Development Goals is possible for us only if we move in this direction together with our partners. Therefore, we are establishing a dialogue with our suppliers on certification, packaging, etc., and working on joint programs in the field of sustainable development.
X5 Group presented general recommendations for suppliers in the field of sustainable development in 2020. The document was developed based on an analysis of best practices in the field of ESG in the grocery retail sector, as well as on the basis of data obtained from a survey of X5 suppliers, which was attended by 30 of the company's largest partners. The analysis of the practices used by FMCG leaders in the Russian market was complemented by the findings of international modern scientific research in the field of ecology and expert opinions.
In 2024, X5 Group updated its recommendations for suppliers in the field of sustainable packaging, adding the ready-to-eat category, industry expertise, and detailed recommendations for suppliers interested in moving to more sustainable packaging. The recommendations are developed based on an analysis of the best practices of companies from the food retail sector, international guidelines and adapted to the specifics of Russian business.
Recommendations
We have developed our own Sustainability Recommendations for Suppliers and have updated our procurement policies in line with the sustainability principles. This is an important milestone for us in achieving our goal of promoting responsible consumption and use of resources. To develop the policies, we relied on a review of ESG best practices in the food retail sector, environmental research, and survey results of X5’s largest suppliers.
The document contains a list of voluntary environmental and social certifications, along with our vision of sustainable packaging, including renewability of the packaging material, its recycling potential in Russia, the use of mono-materials and recycled materials, reusable packaging and lean design to reduce its size. It specifies the most and least preferred raw materials for packaging.
The recommendations are not mandatory, but the Company will consider it a strong advantage if products or practices of potential suppliers meet them when a decision on partnership is made.
Supplier policy
We have also updated X5 Retails Group’s Supplier Policy in accordance with our sustainability principles. We apply the same principles to our internal processes and business units. The updated Supplier Policy seeks, inter alia, to achieve our sustainable development goal of responsible consumption and use of resources, on which our responsible procurement framework relies. Among other things, the Policy includes our Sustainability Recommendations for Suppliers.
Information brochure
We have developed a special information brochure on sustainability for our suppliers. This brochure is designed to help our partners explore the topic of sustainability in general, give an overview of X5's strategic goals in the realm of sustainability, programmes and guidelines, and provides examples of potential partnerships in line with our strategy.