Sustainability report
Since 2017, we have published comprehensive annual reports in which we explain our objectives and commitments.
human rights audits
of the boxes being reused in Distribution Centres in Pruszcz Gdański and Brześć Kujawski
Our reports
Each report is a compendium of knowledge about LPP, our business model and the impact we have on the lives of our employees, members of local communities and the environment.
It is also an excellent basis for verifying our progress in achieving the objectives we have adopted.
1. Business model
We founded our strategy on three pillars: the omnichannel model, digitisation and sustainable development. The achievement of strategic objectives was not disrupted by the difficult FY2022, so heavily dominated by the war in Ukraine. Our business response is the decision to quickly enhance the availability of what the LPP brands offer in the countries of Western and Southern Europe — both in stores and through online shopping.
President of the Management Board, LPP
"In 2023, decarbonisation was our priority. In order to increase the efficiency of the actions that reduce our carbon footprint, we decided to structure them and develop decarbonisation strategy objectives that have been scientifically verified and approved by the Science Based Targets initiative (SBTi)".
3 design offices in Poland
(Gdańsk, Cracow, Warsaw) and 1 office in Spain (Barcelona)
Over 300 designers, 5 diverse brands
1 660 suppliers from Asia and Europe
We do not own any manufacturing facilities
Global supply and distribution network with:
4 Distribution Centres and 4 Fulfillment Centres
nearly 500 thous. m2 of combined warehouse space
Availability of our brands in stationary stores in nearly 30 countries.
2275 stores with the combined
space of 1 993 thous. m2
employees worldwide, including 16 686 in Poland
stores in nearly 30 countries on 3 continents
sales area
Awards and rankings in the reporting period
A CSR Golden Leaf for overall efforts and a CSR Green Leaf for reducing the impact of the negative climate.
LPP received the Gold Award for its polyester textile recycling technology project, which allows used clothes to be reused as a raw material for new fibres.
First place in a survey of investor relations in WIG30 companies.
2. Environmental impact
At LPP, year after year we have been changing and improving the standards of clothing production and the way we sell the garments. We are consistently meeting targets to reduce the climate and environmental impact of our value chain. Our transport, logistics and our offices and warehouses are also changing.
Awards and rankings in the reported period
We continued our work with the Polish startup: Use Waste. By the end of 2023, we had allocated one million zloty for this purpose. Works have led to the development of an original concept and a raw material that is going to serve for the production of a polyester yarn of unimpaired quality. Ultimately, textile-to-textile recycling will enable the closing of the textile cycle and a simultaneous limitation in the exploitation of primary raw materials in the production process of our collections.
We have extended the collection of second-hand clothes to the whole of Poland, and now in 2024 also to our first countries abroad. The programme is our response to the need for closing the textile cycle and extending the life of clothes, shoes and accessories that our customers no longer need. It is also a way to reduce textile waste while supporting social initiatives.
Our decarbonisation goals have been scientifically verified and approved by the international Science Based Targets (SBTi) initiative. They include a plan for reducing greenhouse gas emissions by 2030 in categories that most significantly contribute to our carbon footprint.
We have run the campaign “Look after your clothes. Read. Check. Care.” On the www.dbajoubranie.pl website, we have provided practical information on the methods related to washing, drying and ironing clothes, which reduce their wear and tear. We have also included a special emission calculator, which helps to understand the way these actions reduce CO2 emissions into the atmosphere.
of the polybags, in which we receive goods from suppliers, are recycled.
of LPP brand clothing made in Bangladesh and 92% in Pakistan are compliant with the ZDHC standards
cartons reused
3. Social impact
We have implemented numerous regulations and procedures in our companies to ensure a single standard for hiring and building relationships with employees. Our stakeholder map allows us to implement diverse forms of stakeholder engagement. Dialogue with each of them is important to us and significantly influences ESG decision-making processes and the non-financial reporting process. In the area of customer care, we outsource production to carefully selected suppliers, taking particular care to respect ethics and human rights at workplaces.
We have implemented numerous regulations and procedures in our companies to ensure a single standard for hiring and building relationships with employees.
We also continuously take care of our social involvement through numerous activities of the LPP Foundation, which provides real help to people in difficult life situations and socially excluded youth. At the same time, the Foundation coordinates numerous voluntary grassroots activities and implements projects for the benefit of the local community as well as ecology and environmental protection.
Supply chain
We continue the activities conducted as part of international associations and initiatives, including International Accord for Health and Safety in the Textile and Garment Industry, Cotton Made in Africa, Zero Discharge of Hazardous Chemicals.
In 2023, in accordance with the OECD guidelines for multinational enterprises, we updated the map of the most significant risks connected with human rights and employment rights. We conducted a survey regarding the risks, remedial and corrective actions on human rights and employment rights among suppliers in India, Pakistan and Bangladesh.
All factories and suppliers who wish to cooperate with LPP are obliged to accept and implement the “LPP Code of Conduct”. The document precisely defines our requirements regarding social working conditions and human rights.
Compliance with the code is regularly audited by our offices or independent auditing companies – in FY2022 we conducted 719 audits in the area of human rights.
In 2023, we joined EuroCham Myanmar, i.e. the European Chamber of Commerce in Myanmar, whose role is to monitor the employees’ situation and develop solutions eliminating abuse and promoting running a business in accordance with well-defined standards that guarantee respect for human rights.
We also started working with BRAC, the largest international non-governmental organisation in Bangladesh, which creates system solutions on the labour market. Since 1972, it has helped over 100 million people living in poverty and suffering from inequality, offering them opportunities for development and social change.
quality checks in 2023
of our children’s collection garments are inspected with special metal detectors – thus eliminating the risk of leaving parts of sewing needles
audits in China and Bangladesh in terms of humidity
QAS audits in the year 2023
Workplace
In 2023, the LPP Group employed 33,556 people in Poland and abroad, a 12.1% increase on the previous year. In our offices, shops and warehouse facilities, we have built up a team of outstanding experts, talented professionals and people who are just making their first steps in their professional career.
In 2023, we implemented a new formula for staff-leadership meetings: Town Hall Meeting. The goal is to discuss important issues affecting the company while fostering dialogue and the exchange of views. We met online for the first time in spring 2023 on the day that the 2022 financial statements and sustainability report were presented. Nearly 70% of those invited attended. Another meeting was held in the autumn with similar attendance, so we plan to continue these meetings in 2024.
Our staff training and upskilling strategy includes a system of training tailored to the needs and requirements of the various areas of our business, from management to sales and technical services. We regularly monitor whether the training is achieving the desired results by seeking feedback from the participants and adjusting the programmes to meet the changing needs of the labour market and the company.
In 2023, our staff and their relatives had a chance to take part in the “heLPP” programme, which is designed to provide additional support for daily challenges, protecting mental health and ensuring a work-life balance. By January 2024, we had registered 647 requests from people who wanted to use our support, with a total of 3,161 uses of the heLPP service since its launch.
total training hours in the LPP Group
participants in “heLPP” webinars
Town Hall Meetings
LPP Foundation
The LPP Foundation manages social engagement of the LPP Group and carries out projects in three key areas: preventing social exclusion and supporting local communities, health protection, ecology and environmental protection. The beneficiaries are primarily children and young people from children’s homes, people at risk of social exclusion, victims of catastrophes and natural disasters.
The Foundation also provides assistance to community service projects carried out in LPP’s closest neighbourhood.
In 2023, the LPP Foundation, in partnership with the FOSA Foundation, the city of Gdańsk and the Metropolia Gallery, launched psychological support and assistance for teenagers. “Niebieskie Trampki w Metropolii” (Blue Sneakers in the Metropolis) is a club entirely funded by the LPP Foundation to provide young people with the necessary support in crisis situations and to give them an opportunity to spend their free time in a creative way, under professional care. Every year, we are also a partner of a concert celebrating the first day of spring: “Niebieskie Trampki – kroki ku życiu” (“Blue Sneakers – steps towards life”), during which young people can take part in creative workshops and consult psychologists.
Since 2019, we have run six editions of Minigrants, involving 185 employees in 44 projects. Total co-financing amounted to nearly PLN 220,000.
We convert kilometres into money. In 2023, 182 cyclists and 99 joggers from among LPP staff ran a distance of 19,174.96 km and cycled the incredible number of 163,692.81 km.
As a result, PLN 31,000 each was donated to the “Dom na Skraju” Association in Gdańsk, the “180 STOPNI” Association in Gdańsk, the “MROWISKO” Environmental Prevention Association in Gdańsk and the Rupert Mayer Children's Aid Foundation in Kraków.
4. Corporate governance
LPP’s corporate governance model underpins successful governance, effective oversight, transparent company-market communication and respect for shareholder rights. The implemented policies form an integral part of our operating system, enhancing its transparency and balancing the interests of all capital market participants.
At LPP, we implement a human and labour rights due diligence process in business relationships and across the value chain. The purpose of the process is to continuously identify the impact we exert, counteract and minimize the risks associated with it by implementing appropriate remedial and corrective actions. We monitor their effectiveness, stay in touch with stakeholders affected by the business activities of the LPP Group and provide a mechanism for reporting irregularities. The implementation of the due diligence process is overseen by a dedicated team established in 2023 within the ESG Committee.
In December 2023, as required by the OECD Guidelines for Multinational Enterprises, we updated, through a workshop, the map of the most significant human and labour rights risks. The key goal of this initiative was to evaluate the risks associated with the company's staff, employees working in the value chain, communities affected by our impact and end consumers and users, considering people or stakeholders from particularly vulnerable groups.
At LPP, we manage ESG issues in a centralised manner, working out environmental, social and corporate governance solutions that are consistent across all touchpoints in the organisation. In 2022, we initiated our efforts that will allow us to fully comply with the new EU Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards (ESRS).
The Director of Procurement and ESG reports directly to the CEO of LPP. Supporting the Board and the Director of Procurement and ESG in defining ESG objectives and policies is the ESG Committee, which includes, for example, the directors of our company’s key business units.
Corporate governance
We strive to ensure transparency in our operations and clear communication with all our stakeholders. The activities of LPP SA, which is the parent company of the LPP Group, are regulated by a number of documents. For example, we comply with the new principles of corporate governance, entitled The ‘Code of Best Practice for WSE Listed Companies 2021’ (DPSN, Principles of Corporate Governance), which the WSE announced in 2021. The activities of LPP SA, which is our parent company in the LPP Group, are regulated in particular by:
Discover our reports
Here you will find our latest report and all previous publications. Check LPP's progress, learn about our environmental, social and business results.
The LPP Integrated Reports, which present non-financial and financial results for LPP SA and the LPP Group, have been produced since 2017 and initially cover the calendar year. In 2019, data, as an exception, came from 13 months (from 1 January 2019 to 31 January 2020). The 2020 report covers the period from 1 February 2020 to 31 January 2021.
The switch in reporting from the calendar year to the financial year, which ends on the last day of January, increases the usefulness of the reports as this treatment better captures the seasonality of the business. Accordingly, the latest report for 2022/23 also covers the financial year, i.e. the period from 1 February 2023 to 31 January 2024.