2013 Sustainability Report 4 Sustainability Report 2013 Contents
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2013 SUSTAINABILITY REPORT 4 SUSTAINABILITY REPORT 2013 CONTENTS INTRODUCTION Highlights 8 Chairman’s letter to the Stakeholders 11 Guide to the Report 12 YOOX Group Sustainability Policy 15 Targets for improvement 17 1. IDENTITY 1.1 YOOX Group’s profile and its activities 22 1.2 Mission, values and principles 30 1.3 Reference market 32 1.4 Key sustainability issues and relations with Stakeholders 33 1.5 Corporate governance 36 2. MARKET 2.1 Economic performance 46 2.1.1 Economic and financial highlights: key aspects 46 2.1.2 Creating and distributing value 48 2.2 Customer relations 50 2.2.1 Managing Customer relations 50 2.2.2 Services designed to provide an innovative and exclusive 54 shopping experience 2.2.3 Focus on the Customer in the shopping process 61 2.3 Partners 68 2.3.1 Managing relationships with mono-brand online store Partners 68 2.4 Suppliers 70 2.4.1 Sustainability of Suppliers’ relationships 70 2.4.2 Focus on product quality and sustainability 71 2.5 Shareholders and Lenders 73 2.5.1 Protection of Shareholders and the financial community 73 2.5.2 Relations with Lenders 83 SUSTAINABILITY REPORT 2013 5 3. PEOPLE 3.1 YOOX People 86 3.1.1 Human resources management 86 3.1.2 Breakdown of workforce 87 3.1.3 Hiring policies 89 3.1.4 Diversity and well-being 92 3.1.5 Compensation policy and incentive and appraisal schemes 94 3.1.6 Development and training policies 97 3.1.7 Workplace Health and Safety 100 3.1.8 Industrial relations 102 3.1.9 Internal communication 102 4. COMMUNITY 4.1 The Community, the Local Area and Government Authorities 106 4.1.1 YOOX and its relations with the Community 106 4.1.2 Relations with Organisations, Institutions and Industry Associations 111 5. PLANET 5.1 YOOX and the Environment 116 5.2 Energy Management 118 5.2.1 Energy consumption and atmospheric emissions 118 5.2.2 Energy efficiency and reducing consumption 120 5.3 Environmental policy and sustainable conduct 126 5.3.1 Environmental impacts of mobility 127 5.4 Management and use of resources 129 5.4.1 Purchasing and consumption of paper 129 5.4.2 Water consumption 130 5.4.3 Waste 130 5.5 YOOXYGEN and Eco-mmerce: the environmental responsibility drive 131 ANNEXES Index of GRI indicators 137 External Auditors’ Report on the Sustainability Report 145 6 SUSTAINABILITY REPORT 2013 SUSTAINABILITY REPORT 2013 7 INTRODUCTION 8 SUSTAINABILITY REPORT 2013 HIGHLIGHTS More than 100 11 COUNTRIES SERVED LANGUAGES 7 6 LOCAL OFFICES IN ITALY, USA, JAPAN, FRANCE, LOCAL CURRENCIES MANAGED AT 31 DECEMBER 2013, SPAIN, CHINA AND HONG KONG 1O CURRENCIES IN 2014 1.1 million 7 ACTIVE CUSTOMERS IN 2013 CUSTOMER CARE CENTRES 2.8 million 713 ORDERS IN 2013 EMPLOYEES (+20% COMPARED WITH 2012; +52% OVER THE LAST 3 YEARS) 1 order every 11 seconds ORDER FREQUENCY 226 EMPLOYEES HIRED IN 2013 99.4% 32 OF DELIVERIES ON TIME EMPLOYEES’ AVERAGE AGE SUSTAINABILITY REPORT 2013 9 87% 860 t OF EMPLOYEES ON A PERMANENT CONTRACT OF PAPER AND CARDBOARD CONSUMED IN 2013 56% 2,069 t OF EMPLOYEES ARE FEMALE OF CO2 EMISSIONS FROM CONSUMPTION OF ELECTRICITY AND NATURAL GAS IN 2013 38% 4.5 million KWh OF EXECUTIVES AND MIDDLE MANAGERS ARE FEMALE OF ELECTRICITY CONSUMED IN 2013 15,469 49% HOURS OF TRAINING IN 2013 ENERGY CONSUMPTION FROM RENEWABLE SOURCES 16,117 100% APPLICATIONS RECEIVED IN 2013 COMPANY CARS ARE HYBRID VEHICLES 10 SUSTAINABILITY REPORT 2013 SUSTAINABILITY REPORT 2013 11 CHAIRMAN’S LETTER TO THE STAKEHOLDERS Dear Stakeholders, home-working, which are particularly designed to meet the needs of the increasing number of mothers employed at this growing company. 2013 was a record-breaking year for YOOX, with the Group not Significant performances were achieved in the area ofenvironmental only enjoying significant financial results, but also achieving its sustainability: not only did YOOX obtain ISO 14001 environmental Sustainability goals, as shown by the achievement of application certification, it was also included in the most authoritative climate level A+ for this third Sustainability Report, the maximum possible change report, the Carbon Disclosure Leadership Index Italy under the guidelines of the Global Reporting Initiative. 100. YOOX was ranked among the top three leading businesses in Italy and was the only e-commerce fashion company to feature in the The heartbeat of YOOX is made up of the people who work for it, index. Increasingly careful day-to-day management of resources was their hearts, talents and minds drive the Group: a team of over 700 introduced, including the choice of renewable energy for almost young people with an average age of 32, comprising 34 different 50% of total consumption and a fleet of company vehicles entirely nationalities and 56% women, all working passionately to comprising hybrid cars. achieve excellent results each and every day. We believe long-term investment in our Employees is important, which is why YOOX has On Earth Day 2014, YOOXYGEN - the environmental sustainability given permanent contracts to 87% of the workforce. YOOX is programme - will celebrate its fifth birthday. Five intense years of special constantly looking to nurture young talent: 16,117 job applications partnerships with international organisations, designers and celebrities were received worldwide in 2013 alone, from which 226 new staff to raise awareness of environmental issues among the millions of were chosen to join the YOOX team, 50% of whom were under 30. users that browse the YOOX site each month. The 2013 protagonist of Furthermore, 2014 saw the unveiling of the YOOX Stage Programme, YOOXYGEN was top model Amber Valletta, who launched the Master the Group’s first structured on-the-job training programme for new & Muse project in the yoox.com “Eco-mmerce” section: today this online graduates. space offers over 100 sustainable brands from all over the world. Employee development has always been and remains a priority for YOOX would like this Sustainability Report to be a further invitation YOOX: in 2013, the numerous initiatives included some 15,469 hours to all to continue striving day in, day out, through initiatives large and of training and the introduction of smart working practices, such as small, to help build a more sustainable future for everybody. Chairman of the Board of Directors Federico Marchetti 12 SUSTAINABILITY REPORT 2013 GUIDE TO THE REPORT By publishing this latest edition of the Sustainability Report Initiative (GRI) in 2006 (G3), which currently represent the leading (hereafter also referred to as “the Report”), the YOOX Group international standard for sustainability reporting. (hereafter also referred to as “the Company”, “the Group” or The principles set out by the GRI were used as a reference when “YOOX”) is pursuing its commitment to reporting on its social, drawing up the document, defining its content and determining the environmental and economic performance. materiality of various issues, with the involvement of the heads of The document provides a description of the values and rules of the various corporate departments. conduct that guide the Group’s strategy, with a view to initiating The importance of the information included in the Report was and encouraging an open, transparent dialogue with all defined in view of the Group’s economic, social and environmental its Stakeholders. impacts and responsibilities, the applicable regulatory framework and the specific features of the sector in which it operates, as well The YOOX Group Sustainability Report, which is published as the requirements and expectations of its Stakeholders. The annually, has achieved a rating of A+ in its application of the Group is committed to broadening its discussions and involvement Sustainability Reporting Guidelines issued by the Global Reporting with Stakeholders concerning sustainability issues. REPORT APPLICATION LEVEL C C+ B B+ A A+ OUTPUT REPORT ON: REPORT ON ALL CRITERIA LISTED SAME AS REQUIREMENT FOR 1.1 FOR LEVEL C PLUS: LEVEL B 2.1 - 2.10 1.2 G3 PROFILE DISCLOSURES 3.1 - 3.8, 3.10 - 3.12 3.9 - 3.13, 4.1 - 4.4, 4.14 - 4.15 4.5 - 4.13, 4.16 - 4.17 G3 DISCLOSURES ON MANAGEMENT APPROACH MANAGEMENT APPROACH MANAGEMENT NOT REQUIRED DISCLOSURES FOR EACH DISCLOSED FOR EACH APPROACH INDICATOR CATEGORY INDICATOR CATEGORY REPORT FULLY ON A REPORT FULLY ON A MINIMUM OF RESPOND ON EACH CORE AND Report Externally Assured Report Externally Assured Report Externally Assured STANDARD DISCLOSURES STANDARD MINIMUM OF ANY 10 ANY 20 PERFORMANCE INDICATORS, SECTOR SUPPLEMENT* INDICATOR G3 PERFORMANCE PERFORMANCE INDICATORS, AT LEAST ONE FROM EACH OF: WITH DUE REGARD TO THE INDICATORS & SECTOR INCLUDING AT LEAST ONE ECONOMIC, ENVIRONMENT, HUMAN MATERIALITY PRINCIPLE BY SUPPLEMENT FROM EACH OF: SOCIAL, RIGHTS, LABOUR SOCIETY, PRODUCT EITHER: A) REPORTING ON THE PERFORMANCE INDICATORS ECONOMIC, AND RESPONSABILITY. INDICATOR OR B) EXPLAINING THE ENVIRONMENT. REASON FOR ITS OMISSION. * Sector supplement in final version SUSTAINABILITY REPORT 2013 13 The data and information included in the Report refer to the financial year ended 31 December 2013 and to certain significant MARKET projects launched in the first few months of 2014. Unless This section lists the main performance data and otherwise indicated, the scope of the Report corresponds to that of the most significant information concerning: the Report on Operations and Consolidated Financial Statements for 2013, from which the economic and financial data and • Customers and services provided information included in the Report are taken. • Management of relations with Brand-Partners • Procurement policies and relations with Suppliers In order to ensure that the information given is as reliable as • Shareholder protection and transparency with regard to the possible, priority has been given to directly measurable quantities.