Report on compliance with the RSPP recommendations
Compliance with RSPP recommendations set out in the Opinion of the RSPP Council on Non-Financial Reporting, ESG Indices and Sustainability Ratings on Magnit’s 2021 Sustainability Report for the purposes of public assurance
| RSPP recommendation | Compliance | Report section |
|---|---|---|
| To disclose targets for the reporting period, show performance results vs said targets, and disclose planned targets for the next reporting period | Magnit has set strategic sustainability goals that are to be met by the end of 2025. The base year is 2019. The Report discloses 2022 indicators and compares them to the base year of 2019 and the 2025 targets. Magnit has no interim annual targets as our strategy focuses on organic expansion and targeted market share increase driven by M&A opportunities such as the DIXY consolidation in 2021. Since industry players differ in the extent to which sustainability agenda is integrated into their operations, opportunities for setting annual targets and delivering against them are limited. Interim and annual progress against the Company’s Sustainability Strategy is reviewed by the Sustainability Steering Committee, which approves an action plan whenever Magnit is lagging behind in any of the Strategy’s core areas and goals. | Sustainability Management |
| To benchmark the Company's results and major projects against Russia’s national projects to which Magnit is a strong contributor | The Report’s key sections contain references to respective national projects and also list key metrics in the areas that fall within the scope of said projects. | Responsible Business Sustainable Sourcing Our Employees Environmental Stewardship Engaging with Local Communities |
| To take into account the Social Charter of the Russian Business when describing the Company’s business practices | The Report’s key sections contain references to respective principles of the Social Charter of the Russian Business that the Company adheres to. | Responsible Business Sustainable Sourcing Our Employees Environmental Stewardship Engaging with Local Communities |
| To expand the list of disclosed metrics and show data on labour productivity and both specific and gross environmental metrics | The Report discloses gross environmental metrics (emissions of greenhouse gases, pollutants and ozone-depleting substances, water consumption and discharge, and waste generation and disposal). Disclosure on personnel management was expanded. | Our Employees Appendix to the Our Employees section Environmental Stewardship |
| To apply the disclosure approach that shows changes for at least three past years to all key indicators of core operations, and include comments to explain the changes | Key indicators are shown for three years, with their changes explained. | Responsible Business Sustainable Sourcing Our Employees Environmental Stewardship |
| To have links to the Company’s website added to the list of documents shown in the Report | Links to the Company’s key publicly available documents are given in each section. | Sustainability Management Responsible Business Sustainable Sourcing Our Employees Environmental Stewardship Engaging with Local Communities |
| To include in the Report information on the control procedures the Company uses to assess suppliers’ compliance with requirements regarding business practices and implementation of sustainability principles and on the results of said procedures; to disclose information on actions taken by the Company following such assessment; to expand disclosure on procurement management | The Report describes control procedures and the audit process for suppliers’ production conditions, contains a reference to a pilot project on independent ESG assessment of suppliers, and lists ways of interaction with suppliers to build a sustainable supply chain. The Report also contains a separate section on how Magnit cooperates with local producers. | Sustainable Sourcing |
| To add information on social investment volumes and a description of how projects are selected and evaluated. | The key project selection and evaluation principles are described in Magnit’s Charity, Sponsorship and Volunteer The Report discloses the amount of expenditures allocated to social and charitable projects, describes priorities in supporting local communities (creating an inclusive environment and aiding vulnerable population groups) and provides data on the results of our social projects (number of people receiving our support, volumes of product shipments, amounts collected for charity foundations, etc.). | Engaging with Local Communities |
| To add feedback from stakeholders and to disclose how the Company responds to such feedback and comments | The Report contains a detailed description of the way the Company interacts with customers, processes and responds to feedback, and improves customer experience. The Report also includes information on the Company’s handling of reports filed by its employees on corporate ethics matters, and on the results of investigations. A special focus is on employee engagement surveys, which show an increase in the employee loyalty metric. The Company’s relevant business units carefully consider and respond to any feedback received from suppliers. The principles and results of the Company’s government relations are described in the Engaging with Local Communities section and the Stakeholder Engagement Appendix. The Report contains information on how the Company responds to stakeholders’ recommendations regarding non-financial reporting (this Report on Compliance with Recommendations). | Stakeholder Engagement Appendix Engaging with Local Communities Responsible Business Our Employees |