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NON-FINANCIAL REPORT CCC GROUP FOR JANUARY 1ST 2020 – JANUARY 31ST 2021 NON-FINANCIAL REPORT CCC GROUP FOR JANUARY 1ST 2020 – JANUARY 31ST 2021 NON-FINANCIAL REPORT CCC GROUP for January 1st 2020 – January 31st 2021 The CCC Group’s research and development activities conducted by the Research and Development Centre (RDC) in Pol- kowice, contribute towards the achievement of our emissions reduction targets. This is where our teams work on a range of innovations that support footwear manufacture, distribution and sale, and help to optimise materials use and reduce waste. We continue to strengthen our position in the FashionTech market, consistently implementing latest technologies. Our ambition is to drive growth of the footwear industry in Europe, while improving our organisational culture, search- ing for improvements and groundbreaking ideas and initiating grassroots initiatives that could be implemented across the organisation. We know how important our employees are in the process of change. Therefore, in 2020 we provided them with a multidimensional space for development and acquisition of new competencies and made sure the epidemiological situation did not interfere with the process of acquiring the necessary knowledge and skills by new hires and long-standing employees. FROM THE PRESIDENT Responsibility towards our employees is one of the pillars of the GO.22 Sustainable Development Strategy. We want everyone, regardless of their position, to be aware of where we are headed as an organisation and what goals we have set ourselves. We OF THE MANAGEMENT BOARD strive for equal development and promotion opportunities for all, therefore we set Gender Pay Gap Ratio and Glass Ceiling [GRI 102-14, 102-26, 102-32] Ratio reduction targets in the Sustainable Development Strategy. Letter Team diversity is crucial to us. It is a source of competitive advantage, and confrontation of different views, opinions, work Ladies and Gentlemen, styles, skills and experiences produces new quality and creates conditions leading to even stronger business performance. In order to create a friendly workplace and build a strong organisational culture based on diverse teams, we have put a diversity policy in place. We believe this will help every employee to fully develop their potential. It is the fourth time we present to you the CCC Group’s Sustainability Report. This past year was an extraordinary period that presented us with numerous challenges. Although it was a time of hard work, Our transition would not be possible without feedback from our customers, who are increasingly conscious in making their purchasing decisions. They expect us to manufacture products with no damage to the environment and with due respect to change and unexpected events, we have come out stronger, with new knowledge and experience that we worker rights. We want to be a company that supplies customers with quality footwear, apparel, bags and other accessories as share in this report. well as a valuable insight into environmental protection and sustainable development issues. Therefore we listen closely, share experience and expertise and offer sought-after solutions, including our special line of green products Go For Nature. Sustainability is at the core of our business and one of the pillars of the GO.22 Business Strategy we unveiled in late January Although last year was different and more challenging than the preceding one, there were many things we are proud of. The 2020. It is an integral part of our business, which is why we stepped up efforts to deliver on our sustainability commitment effectiveness and efficiency of our efforts were confirmed by the awards and accolades won by the CCC Group for its ESG despite the difficult pandemic reality and implemented the Group’s first ever Sustainable Development Strategy a few months performance. In 2020, we secured an ‘A’ rating from MSCI, we took 11th place in general and second place in our industry later. The Strategy sets forth clear goals, with our activities split into four areas: responsible product, environmental responsi- in the global Refinitiv diversity and inclusion index, and we received a ‘C’ CDP Climate Change rating (on a six-point scale bility, responsibility towards employees, and responsibility towards society. of A–F, where ‘A’ is the highest rating). We are proud of these achievements, which demonstrate we are headed in the right In line with the Strategy, over the past year we sought to further tackle climate change, use resources responsibly, improve direction. We are also the first Polish company to join the UN Fashion Industry Charter for Climate Action and become one of energy efficiency, and reduce greenhouse gas emissions. A vital element of our activities was also effective supply chain man- the 100 top global fashion brands committed to a collective effort aimed at protecting the environment and the climate. agement and building lasting relationships with partners, which are a guarantee we provide customers with safe and good In this report, we have the pleasure to present to you the results of our previous efforts and the goals we will work towards in quality products that are manufactured, sold and used responsibly. the coming years. Our plans are ambitious and require the involvement of many parties. Therefore, we take this opportunity We are aware that our actions have an impact on the entire ecosystem, therefore we monitor and assess them on a regular to thank all those who contribute to growing the CCC Group in line with the principles enshrined in the GO.22 strategy on basis, revising strategic goals accordingly and monitoring our environmental and social impacts. We require our business a daily basis. partners to commit to doing the same – all of them have signed the CCC Group’s Supplier Code of Conduct. The document We believe that through dialogue and mutual understanding we can work out even better solutions that will strengthen CCC’s sets out the standards of conduct for CCC’s partners with respect to human rights, labour rights, environmental protection position as a leader of this fast-changing market. and principles of business integrity. In addition to the Supplier Code of Conduct, we also expect adherence to the ‘Policies and good practices of cooperation with suppliers of the CCC Group’, which clearly defines the rules of conduct during the process of selecting new collections and regulates issues related to the ban on using real fur in production. Yours faithfully, Responsible use of raw materials is a priority for the CCC Group. In 2020, we began implementing the principles of circular economy across our organisation. They specify what and how raw materials are used in our footwear manufacturing pro- cesses, how they are processed, and what we should do to make our products durable or easily convertible at the end of life. The principles of circular economy are applied to products as well as packaging. We have withdrawn plastic bags from our brick-and-mortar stores in favour of recycled paper packaging, and online orders are delivered in recycled cardboard boxes. We aim to reuse our materials as much as possible. We expect that in 2021 70% of our internally made packaging will be from recycled materials, and by 2022 80% of the packaging will be recyclable. Marcin Czyczerski Mariusz Gnych Karol Półtorak Adam Holewa We are also working to improve the energy efficiency of our operations. We have enhanced smart management systems in our CEO and President Vice President Vice President Vice President buildings, helping to reduce energy consumption. Our stores account for the most part of our energy usage. The pandemic re- of the Management Board of the Management Board of the Management Board of the Management Board strictions enacted last year and our efforts to increase the efficiency of our store operations led to a 25.3% reduction in annual energy consumption per square metre of retail space, down to 8.19 kWh/m2/year. Starting from 2021, we have committed to purchase electricity only from renewable sources (small hydropower plants and wind power). Energy efficiency measures helped us to reduce our greenhouse gas emissions (scope 1+2) by 19.1% over the past year, exceeding the target set in the Sustainable Development Strategy. 2 3 NON-FINANCIAL REPORT CCC GROUP for January 1st 2020 – January 31st 2021 Section 0. TYTUŁ ROZDZIAŁUContents SUMMARY CONTENTS OF NON-FINANCIAL INFORMATION 1. CCC GROUP 6 1.1. BUSINESS MODEL 8 FOR THE FINANCIAL YEAR 2020/2021 1.1.1. CCC Group overview 8 1.1.2. Market position 12 1.1.3. CCC Group Brands 13 1.1.4. Value chain 14 1.1.5. Product life cycle 16 YEAR 2020/21 IN THE CCC GROUP ARE: 1.1.6. Calendar 2020/2021 18 1.1.7. Membership of organisations and associations 19 1.2. STRATEGY AND BUSINESS MODEL 20 1.2.1. Business strategy 20 44.8 million pairs of shoes sold 1.2.2. Sustainable Development Strategy 21 1.3. PERFORMANCE INDICATORS 30 1.8 million pairs of shoes made PLN 5.8 billion in revenue 1.4. CORPORATE GOVERNANCE 33 1.4.1. Structure of the CCC Group 33 52,511.6 Mg CO2e (Scope 1+2) 139,897.7 MWh of electricity used 1.4.2. Governance structure of CCC S.A. 36 1.5. ETHICS AND HUMAN RIGHTS AT THE CCC GROUP 42 1.5.1. Ethical values 42 68,389.1 m3 of water used 6,869.7 Mg of waste generated 1.5.2. Misconduct reporting and handling system 48 1.6. MANAGEMENT SYSTEM AND SIGNIFICANT MANAGEMENT RISKS 50 1.6.1. The risk management system of the CCC Group 52 1.6.2. Material management risks 54 2. RESPONSIBLE PRODUCT 58 AVERAGE PAIR OF SHOES • consumed: 3.1 kWh 2.1.

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