X5 Retail Group Commits to Sustainability

YANA SYNESIOU

Director of Sustainability X5 Retail Group

X5 RETAIL GROUP COMMITS TO SUSTAINABLE PRACTICES

As key players in the food ecosystem, retailers are indispensable in promoting sustainable practices to address the effects of global climate change. X5 Retail Group, the largest food retailer in Russia and one of the largest in the world, is actively developing and supporting sustainable practices both within the grocery industry and in the broader community.

In December, X5 committed to the global Science Based Targets initiative (SBTi) and set emissions reduction targets according to what climate scientists say is needed to meet the common goal of limiting global warming to below 2°C versus pre-industrial levels. We are one of the first Russian companies to join the UN Global Compact on sustainable development and are proud to join the SBTi alongside more than 1,000 leading global companies. These commitments are part of our long-term sustainable development strategy adopted in December 2019, which is based on the 17 Sustainable Development Goals (SDGs) outlined by the United Nations.

In addition to our carbon-free initiative, X5’s sustainable development is structured within a “30x30” framework of strategic targets for 2023 and 2030. These include achieving a 30% reduction in GHG emissions, a 30% reduction in the ratio of generated waste to retail sales, and reaching a 30% share of renewable energy sources in all X5 operations. We have also developed guidelines for our suppliers around sustainable packaging, and are increasing the share of sustainable packaging used in our own private label products to 50% by 2023.

In parallel, we are helping our customers and employees become responsible consumers. Recycling is a relatively new practice in Russia, and we are supporting the region’s progress by making it quick and convenient. For instance, X5 customers can recycle plastic bottles using reverse-vending machines installed in our stores or return plastic bags used for home deliveries from our online hypermarket Perekrestok Vprok, which sent around 125 thousand bags for recycling in the first 10 months of 2020. We also have reduced the use of plastic in our own operations, with our Pyaterochka proximity stores and Perekrestok supermarkets using plastic bags made of 20% and 35% recyclable materials, respectively.

Education is another key factor in promoting responsible resource use among consumers and employees. We developed and delivered online sustainable development training for all X5 employees, and for our customers, we launched an interactive online course on responsible consumption that was developed jointly with the United Nations Institute for Training and Research (UNITAR). Customers who complete the course receive a discount on instore purchases. In addition, this fall we launched an eco-website that offers recycling information and tips as part of the “Green Store” pilot project at our Pyaterochka stores.

Although sustainable development has only recently become a rising issue on Russian company agendas, X5 has already made significant progress in embedding sustainable practices into our business strategy. By joining with international partners and promoting sustainable initiatives, food retailers have tremendous power to advance global efforts to create a more sustainable world.

Yana Synesiou, Director of Sustainability, X5 Retail Group. Yana oversees sustainable development at X5 Retail Group, the largest food retailer in Russia. She is responsible for the implementation of the company’s sustainable development strategy as well as coordination of various ESG pilots and initiatives. Prior to joining X5 in 2016, Yana spent over 10 years working in the United Kingdom, where she primarily focused on corporate and functional strategy development for the retail and consumer goods sector. She holds economics degrees from the London School of Economics and the University of Warwick.