LPP publishes latest sustainable development report for 2021/22

• 26 percent of all clothes sold uner all brands of the company come from the Eco Aware line, i.e. products that are more environmentally friendly, whilst under the flagship Reserved brand it is as high as 38%.
• Last year, the company eliminated 445 tons of disposable plastic, which means a reduction in the amount of this raw material in LPP packaging by a total of 1,015 tons from 2017.
• For the first time the company has independently calculated the carbon footprint in all 3 ranges and categories in accordance with the GHG Protocol guidelines in order to develop a detailed decarbonisation policy in 2022.
• 30 percent of all sewing factories for LPP in South Asia are covered by the program of more sustainable clothing production – Eco Aware Production.
• Already 70 percent of LPP clothing produced in Bangladesh and Pakistan complies with ZDHC chemical safety standards.
• Last year the company allocated PLN 5.6 million to improve the safety and production conditions in suppliers’ factories.
• LPP was awarded the title of the Climate Conscious Company in the third edition of the survey conducted by the Association of Stock Exchange Issuers, the Reporting Standards Foundation and Bureau Veritas Polska.

The past financial year 2021/22 was financially successful for LPP, which translated into a significant economic contribution to the Polish economy. The Polish clothing manufacturer provided the national budget with tributes worth nearly PLN 1.6 billion. Record-breaking results and the realization of the company’s business ambitions went hand in hand with consistent work to achieve the next goals set out in the sustainable development strategy “For People For Our Planet”. The successive implementation of subsequent commitments is LPP’s response to contemporary climate challenges and market expectations towards the company.

– In the era of growing climate awareness and the growing importance of business activities for the environment, a sustainable approach to development is now becoming an obvious requirement for entrepreneurs. At LPP, we have been operating for a long time on the basis of a comprehensive strategy covering all processes in the company included in the framework of four pillars: design and production, plastic management, chemical safety of production and ecological buildings. Realizing that currently ESG activities are becoming more and more important, we also attach importance to the proper measurement and reporting of the goals and results of environmental and social activities undertaken – notes Dorota Jankowska-Tomków, Purchasing and ESG Director at LPP.

In the area of product and production, the Polish company significantly increased the share of more environmentally friendly collections in all brands last year.

– Products marked with the Eco Aware label, made of more environmentally friendly materials or produced in a sustainable process, already accounted for 26 percent of the entire offer, thus fulfilling our goal set for 2021. In the youngest brand – Sinsay – already one fifth of the collection, and in the flagship Reserved – every third item of clothes sold are more sustainable collections – explains Dorota Jankowska – Tomków.

The company wants to constantly increase the share of environmentally friendly products in its collections, including those made of cellulose. Searching for good practices in this area, in mid-last year, LPP joined the Canopy initiative for the sustainable use of forest resources. Appreciating the opportunities offered by international partnerships supporting the implementation of the sustainable development goals, LPP has also joined the group of partners Cotton made in Africa (CmiA) – a world-recognized standard for sustainable cotton cultivation in Africa. As a result, in 2023, 20 percent of the collection of LPP brands planned for sale will be made of sustainably sourced cotton, but also with the appropriate work standards of farmers or cotton processing workers who grow it. Last year, the company contracted the purchase of cotton compliant with the CmiA standard, the quantity of which will allow for the production of as many as 60 million products with a composition of 95 to 100 percent share of this raw material.

In 2021, the company continued the development of the Eco Aware Production program. Currently, 30 percent of South Asian sewing factories for LPP were included in this program and underwent a detailed environmental audit. Among others, verified compliance of the production activities of the plants with the requirements of LPP in the field of water and energy resources limitation in the production of clothing.

By developing practices aimed at the safety and protection of water resources, last year the company continued the implementation of obligations under the international agreement Zero Discharge of Hazardous Chemicals, which was the first Polish company to join in 2020. As part of this initiative, LPP supports its suppliers in their efforts to eliminate harmful substances from their factories in production processes and to properly dispose of waste, such as sewage and post-production water.

– At the end of 2021, almost 60 percent of factories sewing clothes for us in Bangladesh and over 82 percent of jeans suppliers in Pakistan are members of the ZDHC. This means that the plants associated with us under the agreement are currently responsible for 70 percent of our production in these countries. We strive for full compliance with ZDHC standards in the textile supply chain of LPP by 2025 – points out Dorota Jankowska-Tomków.

The company is also consistently active in the area of plastic reduction and since 2017 has reduced its consumption in packaging by a total of 1,015 tons. In 2021 alone, after the complete elimination of foil from price tags, as well as the complete abandonment of plastic in online shipments of the Reserved and Mohito brands, LPP managed to reduce the use of this material by 445 tons.

– Recognizing the importance of the problem, we work intensively to eliminate disposable plastic and aim to use only reusable, recyclable or compostable packaging by 2025. To this end, we engage in circular economy initiatives, but we look even wider, striving to save raw materials in the production of packaging. Thus, as part of the Control Tower logistics project, we developed a carton standardization process, which allowed us to reduce the consumption of collective packaging and re-use it in the process of distributing goods to stores. The reusability of cardboard boxes increased in this way from 10 percent. up to 50%, which translates into real changes in the reduction of the use of trees and their raw materials for the production of our collective packaging – says the director of purchases and ESG at LPP.

The company also focuses on increasing the energy efficiency of shops, offices and warehouses. On the one hand, through the use of modern, pro-ecological solutions in showrooms as part of the Eco Aware Stores program, which includes, among others, assembly of telemetry installations in stores. On the other hand, it subjects its new logistics infrastructure to BREEAM certification, including The Distribution Center in Brześć Kujawski or the Fulfillment Center in Podkarpacie. An important step in the emission reduction plan was also the signing of a contract with Figene Energia for the supply for a period of 10 years to most office buildings of LPP in Poland and the Distribution Center in Pruszcz Gdański, energy coming exclusively from RES.

– In line with our strategy, we invest in solutions limiting greenhouse gas emissions related to our operations. Increasing the share of renewable energy sources is part of the overarching goal of LPP – reducing CO emissions ₂ . In 2019, we calculated our carbon footprint relating to the entire life cycle of our products. In the past year, while performing our own measurements, for the first time we took into account all the ranges and all categories defined according to the GHG Protocol method. We already know that adjusting the indicators and GHG counting standards to the specifics of a specific business allows for the correct indication of goals and their effective implementation. Therefore, in 2022, we plan to revise our strategy and specify LPP’s goals for minimizing greenhouse gas emissions – says Dorota Jankowska-Tomków, Purchasing and ESG Director at LPP.

LPP’s good practices and initiatives for responsible business have been appreciated in numerous rankings, both Polish, such as the Companies Climate Awareness Survey or the Benchmark of Climate Strategies and international ones, such as the Carbon Disclosure Project – Climate Change, in which the Gdańsk company also received high marks.

– Treating the awards as an expression of recognition for our efforts, we also derive motivation to continue working on the implementation of the highest standards of sustainable development in our organization and value chain, not only in the climate, but also in the social area. Last year, while continuing our commitment to improve the safety and conditions of production in suppliers’ factories, we allocated PLN 5.6 million for this purpose. From the beginning of the activities undertaken in this direction, we have already invested nearly PLN 35 million. We understand that as an industry leader on the Polish market, we are committed to setting a path on the path of sustainable development and creating a model for responsible fashion also in Poland. We are all the more pleased that in 2021 we managed to meet all the goals set for this year – says Dorota Jankowska-Tomków.

In addition to environmental activities, social initiatives are also an important area of involvement of the Polish clothing company. By implementing them through its Foundation, LPP focuses on providing assistance in areas such as counteracting social exclusion, environmental protection and supporting local communities. In 2021, 374 volunteers of the LPP Group were involved in helping those in need. As part of all social activity, a total of over PLN 6.7 million was donated, which went to over 160 charity organizations. This amount included financial aid, including projects supporting health and environmental protection, as well as substantive partnerships, proprietary social programs targeted at people at risk of social exclusion, and material support.

– Despite the pandemic, the LPP Foundation actively supports those in need, primarily in places where LPP offices and warehouses are located in Poland. In Pomerania and Małopolska, we have been a regular partner for many non-governmental organizations for several years. An example of projects that have become a permanent part of our activities for the benefit of the local community is the “First-year layette” and English lessons or additional classes for 8th grade students, carried out in cooperation with the Brześć Kujawski Commune, where our new Distribution Center is located . A special project for us is also the pilot program “Fashion for a better start”, which was launched last year, addressed to residents of Tri-City children’s homes. Thanks to our support in the amount of a quarter of a million zlotys, from September 2021 to January 2022, a total of over 3,000 hours of educational, therapeutic and development activities were carried out. The success of the program meant that we decided to continue it also in 2022, this time allocating another half a million zlotys for this purpose – says Patrycja Toreniewska, president of the LPP Foundation.

More information on social and environmental activities can be found in the full version of the LPP sustainable development report for 2021/22, available at https://www.lppsa.com/zrownowazony-rozwoj/raporty . This year’s edition has been additionally enriched with an extract of the most important ESG data and the first climate report in the company’s history prepared in accordance with the TCFD guidelines.

First Published: May 10, 2022

Source: LPP Press Office