Magnit is Russia’s largest retail chain, serving most of the country’s population. We are committed to sustainability. Our priority is to provide customers with accessible, high-quality food and non-food staples. Magnit’s extensive track record, particularly in economy class and discounter formats, is evidence of our commitment to helping everyone in society.
Magnit is a signatory to the UN Global Compact and the Social Charter for Russian Business. Our Sustainability Strategy is derived from the 10 principles of the UN Global Compact and 17 UN Sustainable Development Goals (SDGs). The scale of our operations ensures we make a sizeable contribution towards these Global Goals. Our stakeholder engagement is underpinned by a respect for human rights – something we communicate to our employees, suppliers and partners every day.
Our focus is to drive environmental protection and social responsibility. As Magnit’s operations expand, we aim to contribute to the development of Russian regions and foster positive social change. For over 28 years we have provided local communities with quality and affordable products, promoting customer health and well-being. Our stores create jobs and support over 6,000 suppliers, from large corporations to local manufacturers and farmers.
Our 2025 Sustainability Strategy seeks to transform sustainability in the food retail industry, responding to people’s most pressing needs. Despite external challenges, Magnit continues to make every effort to remain a socially and environmentally responsible business. This is an integral part of the Company’s development and a condition for its profitable growth.
Magnit’s Sustainability Strategy is focused on five key areas: environmental stewardship, responsible supply chains, employees, local communities, and healthy lifestyles and well-being. We have set quantitative and qualitative targets for 2025 for each area. Magnit aims to become the industry’s leader in reducing the impact on our environmental, create a 100% responsible supply chain, continue delivering positive impact on the quality of life of all people in Russia, and become the number one employer in retail. We have already made significant progress towards a number of goals defined in the Sustainability Strategy.
Our strategic goals to 2025
A leader in reducing the impact on our environment
The Company’s retail, production and agricultural facilities consume a significant amount of resources. Nevertheless, by reducing GHG emissions, improving energy efficiency, and promoting recyclable packaging, we are a leader in reducing adverse impact on the environment.
The Russian Federation’s 2030 National Development Goals:
Comfortable and safe environment
National projects
Environment
Goal to 2025
2022 performance
50% of private label and own production packaging to be recyclable, reusable or compostable
78% of the Company’s own production packaging is suitable for recycling, with 32% fully recyclable and 46% potentially recyclable
68% of private label packagingIn 2022, the Company conducted a packaging assessment focused on the body of packaging items only. is suitable for recycling, with 24% recyclable and 44% potentially recyclable (recycling infrastructure for some components is limited)
100% of recyclable plastics used in Magnit’s operations to be collected and recycled
>99% total plastic generated by the logistics unit is sent for recycling
50% reduction in specific food waste generation
147.04 kg / RUB mln (–52.5% vs base year 2019)
30% GHG emissions reduction
2.28 tonnes of CO2 eq / RUB mln
(–26.7% vs the 2019 base year)
25% water and energy consumption reduction
2.3 cbm /RUB mln (–55.5% vs the 2019 base year)
1,690.60 kWh / RUB mln (–16% vs the 2019 base year)
Building a fully responsible supply chain
Magnit is incorporating ESG principles through all levels of its value chain. We carefully select the sources of our products and raw materials. By maximising in-house production, we have better oversight of the production chain, and ensure better quality and availability of products in our stores. We adhere to the highest standards at our production and agricultural facilities, implement an array of assessment tools and conduct audits of our suppliers. We maintain a high share of regional and local producers’ products on our shelves by streamlining local supply chains and leveraging local sourcing effectively.
The Russian Federation’s 2030 National Development Goals
Comfortable and safe environment
Decent, effective jobs and successful entrepreneurship
National projects
Environment
Small and medium-sized enterprises
Goal to 2025
Progress in 2022 (vs base year 2019)
100% responsible sourcing for socially important product categories
Supplier quality audits
Increase in the share of private labels in the Company’s socially important product mix by up to 65% in certain categories
Preparing to relaunch a project for independent ESG assessment of new Russian suppliers
100% responsibility for own production and agriculture
Development of private labels
Implementation of lean production techniques across the Company’s own facilities
Lab product tests
Supplier quality audit
Online monitoring of ready-to-eat food production and temperature requirements
Shipment and inventory accounting efficiency
Implementation of the Voluntary Sustainable Packaging Standard jointly with other private label producers
Magnit’s goods awarded 78 accolades at the 2022 International Quality Assurance contest
Partnership programmes for local suppliers and farmers
Streamlined supply chain of Russian agricultural products to the Company’s stores
Development of effective tools for working with domestic producers (agricultural contracts)
+19.3% increase in turnover with Russian suppliers
95% share of Russian-made products in Magnit
905 Russian suppliers became new partners of Magnit
Pilot project launched – an aggregator for centralised supply of farm products to the chain’s stores
The industry’s leading employer
People are the foundation of our business. We always respect employees’The first corporate survey was conducted in 2020. rights, provide them with decent salaries, safe and comfortable working conditions, deliver training and develop their talents and competencies.
The Russian Federation’s 2030 National Development Goals
Decent, effective jobs and successful entrepreneurship
Self-fulfilment and unlocking talent
National projects
Education
Goal to 2025
2022 performance
70% employee satisfaction rate
79.8% employee satisfaction (72.1% in 2021)The first corporate survey was conducted in 2020.
50% reduction of lost time injury frequency rate, zero fatalities
LTIFR of 0.5
FAR of 0.009Since 2022, the Magnit Group has used LTIFR (Lost Time Injury Frequency Rate) and FAR (Fatal Accident Rate) to measure its injury rates.
(Injury frequency rate of 0.79 in 2019)
40% maximum turnover rate
55.4% turnover rate (64.6% in 2020)
Positively impacting on the whole population’s quality of life
As one of the largest retail chains in Russia, Magnit plays a part in developing the regions where it operates. We strive to provide local communities with equal opportunities and ensure fair access to quality and affordable products. We pay taxes to regional budgets, create jobs, and offer social and charitable support.
The Russian Federation’s 2030 National Development Goals
Protecting the population’s health and well-being
Comfortable and safe environment
National projects
Demography
Healthcare
Culture
Education
Housing and urban environment
Goal to 2025
Progress in 2022 (vs base year 2019)
Community programmes for all our regions of operation
All our regions of operation benefit from Magnit social projects
10% employees volunteering
7.7% employees volunteering (1.1% in 2020)Collection of data about the number of volunteering employees commenced in 2020.
Improving the quality of life for consumers and local communities
We seek to help our customers opt for healthy, safe and quality products. To this end, we promote healthy lifestyles and disseminate information about healthy nutrition, increase the share of healthy products in the assortment of our private labels and that of the products we buy from our suppliers.
The Russian Federation’s 2030 National Development Goal
Protecting the population, health and well-being
National projects
Healthcare
Demography
Goal to 2025
Progress in 2022 (vs base year 2019)
Information about healthy lifestyles and nutrition available to all customers.
Steps taken to promote healthy lifestyle principles as part of the United for Healthier Future initiative
The Healthy Lifestyle Marathon initiative, a healthy lifestyle club for Magnit’s mobile app users, launched
A healthy lifestyles online media platform developed jointly with the Gastronom magazine
Healthy products available to all customers
27% share of healthy products sold under private labels
476 merchandise and display units for healthy products in place (up from 228 in 2021)
