Our Approach to Sustainability

Our Mission

Our mission is to create an omnichannel retail chain that creates optimal conditions for society to make safe, highquality, long-term investments in the younger generation. Since its foundation, Detsky Mir has been guided by the principle that has become the Company’s motto: “A happy childhood for all!”

Our Approach to ESG

For more than 70 years, we have worked to ensure that families with children have access to a wide assortment of quality children’s products. In line with principles of sustainability (ESG) and responsible business conduct, Detsky Mir focuses in particular on corporate governance and environmental issues, social responsibility, and charitable initiatives.

The Company’s approach to doing business responsibly is becoming more systematic and structured. Understanding the strategic importance of these aspects throughout the Company allows us to deliver consistently high growth rates from year to year and strengthen our leadership in the children’s goods market.

The Management Board and Board of Directors regularly review issues relating to responsible business conduct and sustainability. Sustainability is overseen by the Board of Directors, while sustainability initiatives are led by the Working Group on Sustainability, which comprises experts in the field and is chaired by the CFO.

2021 Key Achievements

  • Developed and approved the Sustainability Strategy to 2025
  • Conducted a debut supplier audit on compliance with sustainability principles
  • Efficient use of resources: we calculated our GHG emissions and assessed the potential to reduce them, as well as implemented an energy efficiency and waste disposal and recycling program
  • Conducted an in-depth analysis of IT system vulnerabilities
  • Continued to participate in international associations and initiatives, including BCI (Better Cotton Initiative) and ZDHС (Zero Discharge of Hazardous Chemicals), as well as to develop long-term partnerships and joint initiatives in the fields of the environment and responsible waste management
  • Maintained the Working Group on Sustainability – a single coordination council for the Company’s sustainable development activities

2022 Targets

  • Increase the share of private labels with recyclable packaging in the Apparel and Footwear as well as FMCG categories
  • Continue sending all consumption waste from distribution centers, including cardboard, pallets and film, for recycling, and increase the recycling rate
  • Develop a course and provide training on changes in supplier selection and engagement for all current and new procurement function employees, as well as conduct regular sustainability workshops for suppliers and implement an ESG risk map broken down by supplier category
  • Increase the volume of recyclable materials collected as part of the apparel and footwear recycling project and involve more stores in this initiative
  • Lower the intensity of Scope 1 and 2 GHG emissions and reduce energy consumption in own operations
  • Decrease the lost time injury frequency rate (LTIFR)
  • Increase employee engagement, attract and retain the best talent by providing ample opportunities for personal and professional development (a qualitative KPI)
  • Increase internal and external funding for Detsky Mir’s charitable initiatives targeting children in need and stray animals
  • Involve more employees in the Company’s volunteering programs
  • Maintain a high level of personal data security for Detsky Mir’s customers
  • Increase the share of cotton products with Better Cotton Initiative (BCI) certification procured for the Company’s own apparel and footwear collection
  • Increase the share of polyester products made from recycled materials procured for the Company’s own apparel and footwear collection
  • Engage suppliers that adhere to the Company’s list of prohibited chemicals when manufacturing products intended for Detsky Mir’s stores
  • Conduct ethics, social, and/or environmental audits for all suppliers of the Company’s private labels

Stakeholder Engagement

Our achievements would have been impossible without dialogue with key stakeholders, which is a core focus for Detsky Mir. Key stakeholders include buyers, employees, investors, suppliers, industry organizations and local communities.

Constant and open dialogue with all key stakeholders gives us 360-degree visibility of our business and allows us to fully reflect all risks and opportunities in our strategy and daily operational decisions, while maintaining our long-term sustainable growth trajectory for the benefit of all stakeholders.