X5 ESG Portal

X5 SUSTAINABLE
DEVELOPMENT
STRATEGY

Primary
and secondary
Goals
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship
30×30
X5 Retail Group Strategic Goals
by 2030
Our goal: 30% by 2030
Planet
30%
reduction of GHG emissions (Scope 1 + Scope 2)
30%
share of renewable energy
used in X5 operations
30%
reduction in ratio of waste
generated to retail sales
Health
Promote responsible programmes
and principles across the supply
chain
Expansion of healthy lifestyle
assortment*
* Healthy lifestyle assortment includes: gluten free, no added sugar, organic, fresh from farm, natural ingredients, high protein, low calories, vegan
Communities
up to30%
Increase of the growth rate of number of families receiving Basket of Kindness per year
Employees
#1
Employer in ranking of Russian
food retailers
Organisation of healthy and safe
workplace for all employees
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship
Planet
up to10%
GHG emissions by 2023*
2019 vs 2018: –3%
Renewable energy used by
X5 operations
2019: 0%
* Target reduction in СО2 equivalent per sq m of retail space
Planet
up to10%
reduction in waste generation
coefficient (volume of waste
generated / retail sales) by 2023
2019: Pyaterochka 0.58, Perekrestok 1.84
up to95%
of recyclable waste* from X5
operations to be sent for
recycling by 2023
2019: Pyaterochka 94%, Perekrestok 69%
up to40%
of non-expired food waste
to be reprocessed by 2023
2019: Pyaterochka 6%, Perekrestok 5%​
* Recyclable solid waste: plastics, cardboard, film, banana boxes, wooden pallets, tires, scrap metal, etc.
Planet
5
sustainable supply chain
At least every 5th supplier
promotes sustainable
packaging*
2020: 16% of purchasing turnover
50%
Share of private label
assortment that uses
sustainable packaging
2020: 48%
* In line with X5 Retail Group
recommendations for
suppliers
Planet
sustainable supply chain
Promote sustainable sourcing programmes and priciples
across the supply chain
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship
Health
up to50%
share of fresh and fruits &
vegetables in assortment by 2023
2020: Pyaterochka 44%, Perekrestok 50%
Expansion of healthy lifestyle assortment*
* Healthy lifestyle assortment includes: gluten free, no added sugar, organic, fresh from farm, natural ingredients, high protein, low calories, vegan
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship
Communities
100%
families receiving Basket of Kindness help by 2023
2019: 19,200 families received
support from Basket of Kindness.
Since 2015 Basket of Kindness has
provided more than 600 tonnes
of food aid to 60,000 families
all stores engaged in Help for
Lost People programme by 2023
2019: All Pyaterochka stores
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship
Employees
75%
employee engagement
by 2023
2018: 49% employee engagement
#1
employer in ranking
of Russian food retailers
Organisation of healthy
and safe workplace
for all employees
Implementation of standards at 100%
of company's facilities by 2023
Positive Dynamics in Key Ratings
MSCI ESG
Rating
B
2019
BB
2020
Sustainalytics
Risk Rating*
24.2
2019
20.4
2020
SCALE 1 TO 100
with 100 = worst, 1 = best
Bloomberg ESG
Disclosure Score
40.5
2019
43.8
2020
RobecoSAM
Score
22
2018
26
2019
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship

PROGRESS
AGAINST
STRATEGIC
GOALS

PLANET: PROGRESS AGAINST STRATEGIC GOALS IN H1 2020
Promote responsible
consumption and
resource use
Reducing volume of waste sent to landfills
  • Conducted as-is analysis of waste management in retail chains and other business units, maturity assessment vs benchmarks, calculated waste weight and quantification of relevant metrics and targets
  • Implemented Waste Minimisation Policy and Waste Management Procedure
  • Designed waste management training for relevant company employees
  • Increased the amount of solid waste recycled by 35%
  • Tripled food waste used for animal feed
  • Perekrestok.ru launched plastic bag
    collection     to be recycled
  • Introduced a requirement to use recycled plastics in manufacturing baskets and bags for Perekrestok and Pyaterochka stores
Promote responsible
consumption and
resource use
Support sustainable consumption
  • An interactive online course on sustainable consumption was launched jointly with UNITAR (United Nations Institute for Training and Research) and Danone
  • Promotion of reusable bags (two million sold in 6 months) and mesh bags for fruits and vegetables that can be purchased in stores
Energy consumption reduction
  • Conducted a quantitative assessment of Scope 1 and 2 GHG footprint in 2018 and 2019 in accordance with the GHG Protocol
Responsible supply chain
  • Based on the supplier survey, research analysis and public expert hearings, corporate packaging and certification recommendations for suppliers, and updated procurement policies were developed
  • Training in sustainability was launched for business partners and the commercial function
HEALTH: PROGRESS AGAINST STRATEGIC GOALS IN H1 2020
PROMOTE HEALTHY LIFESTYLE.
ENSURE THE AVAILABILITY OF
QUALITY AND HEALTHY PRODUCTS
  • Developed criteria for classification of healthy lifestyle products, the functionality for which is being implemented on the supplier portal. In accordance with those criteria, relevant targets for increasing the share of healthy products in our assortment were set
  • Perekrestok launched the Nutritious Food Basket project
  • Perekrestok launched the Route of Healthy Habits in store project
EMPLOYEES: PROGRESS AGAINST STRATEGIC GOALS IN H1 2020
ENSURE DECENT WORKING CONDITIONS AND EQUAL OPPORTUNITIES FOR ALL EMPLOYEES
  • Launched sustainable development training for 95% of active employees
  • Introduced a system of grades and bands, updated remuneration programmes for in‑store staff
  • Updated the approach to designing and arranging the staff break-out areas
  • During the COVID-19 outbreak, 95% of office employees were provided with technical means to work remotely
  • Launched a Home Office project enabling employees to combine work in the office and work from home
  • During the COVID-19 equipped all in-store staff with PPE (masks, gloves)
COMMUNITIES: PROGRESS AGAINST STRATEGIC GOALS IN H1 2020
SUPPORT
LOCAL
COMMUNITIES
  • Development of “Basket of Kindness” and “Help for Lost People” projects
  • Special support measures implemented for pensioners and medics
    during the COVID-19 pandemic
PLANET
Promote rational use of
resources and sustainable
consumption
Goal 2030 Goal 2023 Progress 2020
COMMUNITIES
Support local communities through
increased social investments and
charitable programmes
Goal 2030 Goal 2023 Progress 2020
HEALTH
Promote healthy lifestyle and ensure
the availability of quality and healthy
products
Goal 2030 Goal 2023 Progress 2020
EMPLOYEES
Ensure decent working
conditions and equal
opportunities for all employees
Goal 2030 Goal 2023 Progress 2020
X5's sustainable development priorities also contribute
to the Russian Federation's National Development Goals
National goal
Comfortable
and safe living
environment
National goal
Preservation of the
population, health
and well-being of
people​
National goal
Preservation of the
population, health
and well-being of
people
National goal
Decent, efficient
work and
successful
entrepreneurship