Our approach to sustainability management

The Company fully complies with Russian laws and international human rights protection standards as well as labour standards set out in the following documents:

• International Bill of Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work
• European Convention on Human Rights
• UN Convention on the Rights of the Child
• Convention on the Elimination of All Forms of Discrimination against Women
• Guiding Principles on Business and Human Rights.

The Company’s by-laws comply with international human rights protection standards and principles.

The Company is committed to respecting and protecting employees’ rights to form, join or refuse to jo as in a trade union or other organisations at their discretion well as to conduct collective bargaining to support mutual interests, without fear of punitive actions such as intimidation, harassment or dismissal. The Company recognises officially registered trade unions and is prepared for a fair and constructive dialogue with their representatives.

We operate a policy of zero tolerance towards forced labour in any form, including forced, bonded and slave labour. Employees should be allowed to move freely and leave their workplaces after the end of their working day. The Company opposes human trafficking and undertakes to inform the relevant authorities about any known cases of such illegal activities.

The Company has zero tolerance for child labour. The minimum age of a Company employee is 15 years, which corresponds to the minimum age provided by laws for entering into an employment contract. The Company does not hire employees under the age of 18 for high-risk positions that may pose a threat to health, safety or morals.

The Company does not tolerate discrimination against any of its employees on the basis of:

• race
• colour
• sex
• language
• religion
• political or other beliefs
• caste
• ethnic or social origin
• property
• place of birth
• affiliation to unions or associations
• sexual orientation
• age
• disability
• other distinctive characteristics.

Any decisions on employment, from hiring to termination of employment and retirement, should be based solely on appropriate and unbiased criteria as part of generally accepted business practices.

Target 2.1 By 2030, end hunger and ensure access by all people, in particular those with lower incomes and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.

Target 2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.

Target 2.5(c) Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility.

• Offering our customers affordable and quality foods
• Using our own production facilities, including in agriculture
• Developing initiatives to increase the affordability of our own and third-party products for all Russians
• Taking all possible steps to curb excessive food price volatility, particularly for socially important product categories
• Implementing agricultural practices that increase yields while preserving ecosystems

• We voluntarily reduced the markup on a number of socially important goods by up to 5% to mitigate inflationary pressure on customer incomes.
• In April, our facilities operated at the peak of their capacity, with food output rising by 31.6%.
• We invested RUB 13 bln in a set of initiatives designed to assure the quality of our products, services and customer experience.
• We expanded the My Price soft discounter chain, making food more accessible for our lower-income customers.
• We launched a food sharing programme, under which we donated 20 tonnes of food products near their expiry dates to vulnerable population groups.

• We started installing separate display units for balanced diet and healthy eating products in our convenience stores.
• We added a Healthy Nutrition section in our delivery app.
• We increased sales of gluten-free products and sports food by 85% and 142% respectively.
• We expanded gross sales of healthy lifestyle products by 16% and LFL sales by 11.5%.
• We launched a Magnit of Habits healthy lifestyle marathon for our customers.
• We held a series of webinars on good nutrition for our employees.
• We expanded the scope of voluntary health insurance to cover additional health services.

• Saving energy
• Developing energy efficiency projects

• We installed energy-efficient LED lighting in our stores.
• We reduced heat loss thanks to the use of gas generator sets installed in power generation centres that capture heat energy and transmit it through the heating network to our facilities.
• We installed new refrigerated cabinets in our sales areas to reduce energy loss and energy consumption.
• A 16% decrease in specific energy consumption.
• A 23% decrease in heat energy consumption.

• Creating new jobs
• Providing decent and safe working conditions
• Offering our employees opportunities for training and professional development

• We launched retraining with subsequent employment for those who have lost their jobs.
• We work together with Moscow Employment Centre to create a recruitment centre to find staff for Magnit.
• We offer decent and competitive compensation and social benefits to our employees.
• We provided HSE training to more than 131,000 employees.
• We hired 1,690 migrant workers in strict compliance with the labour and migration legislation and human rights regulations.

• Reducing waste generation
• Building a sustainable supply chain by introducing supplier assessment tools and embracing best practices for our business processes

• Magnit and the Russian Environmental Operator began the development of a mechanism to sell expired products for subsequent recycling and the preparation for the launch of a special section on the recyclables trade platform.
• We joined the Towards Zero Loss! voluntary initiative aimed at boosting the recycling of organic waste in Russia and reducing food losses.
• Together with major suppliers and manufacturers of ad packaging we launched a project to develop a voluntary standard for recyclable environmentally friendly pre-packsPre-packs are cut-case displays and various retail fixtures to attract a customer’s attention in offline stores..
• Magnit and its private label suppliers proceeded with the implementation of the Voluntary Sustainable Packaging Standard.

• Reducing GHG emissions
• Reducing water and energy consumption
• Reducing food waste

• We cut food waste (per unit of turnover) by 15% thanks to, among other things, our food sharing programme.
• We joined project to use unmanned logistics corridors aimed at reducing emissions and fuel consumption of vehicles.
• We increased the share of local supplies by 5 p.p., which contributed to shorter logistics chains and lower fuel consumption.

Target 17.10. Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the World Trade Organisation, including through the conclusion of negotiations under its Doha Development Agenda.

Target 17.16. Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilise and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries

• Taking a responsible approach to selecting our suppliers
• Developing local communities in the regions where we operate

• We adopted a new procedure for working with suppliers while taking responsibility for some logistics related activities.
• We launched partner programmes with suppliers for the benefit of our customers.
• We have been working to provide more options for cooperation with agricultural producers that are unique for Russian retail, and providing support across the entire chain from field to shelf.
• We increased the supply and presence of Russian products in our stores.
• We embarked on projects to promote economic inclusion: supporting small and local producers, increasing the offering of local products and providing effective support to the smallest producers across Russia.
• We promote sustainability principles through partnerships with the brands that we sell.
• Magnit is now a member of the League of Green Brands.
• We participated as experts in a project to develop a single Russian standard for assessing businesses’ ESG performance and a project aimed at the standardisation and end-to-end integration of sustainability principles into supply chains.