CCC Experience
Non-financial Report of the CCC Group for year 2018 2 Non-financial Report of the CCC Group for year 2018 3
with innovative solutions, products and services Financial support for UNICEF programs will help in Letter that meet their even the most specific needs. Last saving and improving children’s living conditions, year, we focused on further development of om- while our activities will also aim to involve clients, nichannel, expanded our offer with brand footwear supporters, employees and other stakeholders, of President and a portfolio of brands dedicated to various age as well as educate and raise awareness about segments. The CCC Group has offered its clients the needs and conditions of children in different esize.me scanners, which thanks to advanced tech- parts of the world. nology, are able to perform an accurate 3D foot model. Thanks to this, the system can recommend As a company whose mission is to respond best the customer the right size for any brand or type to the expectations of the industry, customers and Dear Sir or Madam, of footwear. Esize.me is another idea of eobuwie. local communities, we need to bear in mind the pl S.A., which wants to combine online sales and problems and needs reported by all stakeholders. I am very pleased to present the next CCC offline sales. It is them who know the most important areas for Group’s Sustainable Development Report, improvement, which is why we have a permanent presenting our activities in 2018, as well as In addition, in accordance with the assumed objec- dialogue with them. Just like in previous years, in the challenges we face and adopted strategic tives, we support employee initiatives in the field of 2019 a dialogue session will also be held, thanks directions within which we pursue our ambitions employee volunteering, under which supported in to which we have the opportunity to gain valuable in the area of CSR. 2018 were numerous initiatives related to educa- comments as well as expectations of our tion, culture, sport, safety and environmental care. stakeholders. We strive to become a leader in sustainable devel- We have also adopted the first „Clean Footprint” opment in the retail industry and contribute to its Environmental Strategy in the Group’s history, Last year brought us many reasons to be proud in promotion and increase of awareness in this field. which defines significant environmental areas on the form of distinctions for successes in CSR areas. Acting responsibly, we support the development of which the Group operates and specific indicators In the Report, we present a balance of achieve- local communities, not only within the Company’s that we will achieve in order to minimize our nega- ment of goals set for ourselves in the previous headquarters. We are aware of the wider spectrum tive impact. two years and we also present goals that will be of impact and thanks to the strength of the CCC at the center of our interest in the near future. Group present in 23 countries and the growing The year 2018 was also the year in which we The challenges ahead of us are for us mobilization international success, we are able to respond to the focused our activities on increasing responsibility to even harder work and for improving our activi- needs of not only the local community, but also to in the supply chain through, among others, imple- ties in building a sustainable future. Current and help globally. mentation of the Code of Conduct, which includes future achievements would not be possible without key social and environmental obligations, conduct- cooperation with our stakeholders, therefore I The CCC Group continues the implementation of ing audits that check compliance with the prin- would like to thank you for sharing your sugges- the sustainable development strategy, and is cur- ciples contained in the Code and implementing tions and remarks so far and I encourage you to rently doing so as an important aspect of its opera- more stringent regulations on the use of chemicals continue the dialogue with the CCC Group so tions and further development. A crucial element in the production of goods offered for sale. that we can jointly undertake actions for sustain- of our sustainable development strategy are the able development. following priorities: #go for more - brand promise My greatest reason to be proud is entering into an is the customer experience; #more opportunities extremely important partnership for the implemen- Yours sincerely, - development of the organization’s potential and tation of global goals of sustainable development Dariusz Miłek, #more trust - good and effective management. with the largest humanitarian and development President of the Management Board of CCC S.A. These are our basic principles and challenges, as organization working for children. CCC as the first well as the CCC’s contribution to the implementa- global partner of UNICEF from Poland and Central tion of the global goals of UN sustainable develop- and Eastern Europe, continues the mission of the ment. It is customer satisfaction, the work comfort Polish doctor - Dr. Ludwik Rajchman, who was the of our employees and satisfaction from the coop- founder and co-founder of UNICEF and supports eration of our suppliers and all other stakeholders, those programs of the organization whose goal which is the most important for us. is to help every child in the world develop their potential, their dreams and passions. Our activi- The most important element of our sustainable de- ties will have a business and sports measures, and velopment strategy is focusing on clients and their the activities will be conducted, among others needs. By constantly observing the market and in our shoe stores, as well as by the CCC Team prevailing trends, we strive to provide our clients cycling team taking part in races around the world. III. Customer experience Table Characteristics 58 challenges / riskS 59 responsibility 60 of content Innovations 65 the environment 66 further commitments 69
I. Company IV. Employee experience
Characteristics 72 challenges / riskS 74 responsibility 75 Innovations 90 the environment 91 further commitments 93
II. Supplier experience V. Community experience
Characteristics 42 Characteristics 96 Challenges / riskS 44 challenges / riskS 96 responsibility 45 responsibility 97 Innovations 51 Innovations 109 the environment 52 the environment 110 further commitments 55 further commitments 113 Company 8 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 9
Production Business own factory + import + 255 mln Distribution visitors to CCC stores model CCC, Karl Vögele, eobuwie.pl, DeeZee About in 2018
Market position And Recognizability company profile >11 mln visitors to eobuwie.pl CCC SA is one of the largest footwear manufacturers platforms per month # # # # and one of the fastest growing footwear companies 1 2 1 2 in Europe. Poland, Czech Republic, Slovakia Hungary Central-East Europe Switzerland
Through its subsidiary - eobuwie.pl SA, 19.75% CCC offline stores eobuwie.pl platform Vögele Shoes offline stores the CCC Group is also a leader in e-commerce on of shares in e-commerce the footwear market in Central and Eastern Europe. revenue
one of the largest employers CHAIN REACH own chain franchise chain eobuwie.pl chain ESTONIA SWEDEN 23 countries +15.000 LATVIA employees in all companies of the CCC Group worldwide LITHUANIA RUSSIA 996 CCC offline stores
POLAND
GERMANY CZECHIA UKRAINE 9 eobuwie.pl offline stores SLOVAKIA MOLDOVA The first global FRANCE AUSTRIA HUNGARY UNICEF partner SLOVENIA CROATIA ROMANIA SERBIA from Poland ITALY 197 BULGARIA Vögele Shoes offline stores
SPAIN GREECE social responsibility
CCC is part of the index of socially responsible companies of the Warsaw Stock Exchange 10 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 11
History
HISTORy 2005 CCC SA is one of the largest footwear manufacturers and one of the fastest growing footwear companies for the first time in the company‘s in Europe. history, the production of shoes in the Polkowice factory reaches Through its subsidiary - eobuwie.pl SA, the CCC Group 1 million pairs. is also a leader in e-commerce on the footwear market in Central and Eastern Europe. 2016
2010 acquisition of 74.99% of shares in eobuwie.pl The Company recorded S.A., thanks to which the 2000 1 billion in revenues from sales. CCC Group becomes commencement of the largest online basketball and cycling footwear distributor in sponsorship. Poland. In the same year, 2004 2011 CCC becomes a majority shareholder in the On December 2nd CCC Completion of the largest Russian company CCC makes its debut on the investment in the history Russia Sp. z o.o. Warsaw Stock Exchange. of the company, the (with 75% of shares). 2001 * Immediately after the construction of the Logistics 1996 1999 stock exchange debut in Centre located in the LSEZ the company‘s headquarters Prague, Czech Republic, in Polkowice. Firma Handlowa Miłek registration of CCC Sp. z and a new warehouse the first foreign com- (Miłek Trading Company) o.o., which on the basis of base in the Legnica pany of CCC begins its 2017 is established, dealing its own Cena Czyni Cuda ( Special Economic Zone activity. Adoption of the with wholesale and retail ang. Price Makes Miracles) in Polkowice are put into * From December 19, CSR Strategy and sale of footwear. In the commercial concept, begins operation. At the same 2015. CCC S.A. belongs 2012 commencement same year, the company cooperation with over 100 time a shoe factory under to the elite group of the beginning of dynamic of activities towards opens its first franchise newly acquired franchisees. the CCC Factory Sp. z o.o. companies from the expansion into new omnichannel stores under the name Their number is growing company is also being built WIG20 index on the foreign markets development. Żółta Stopa (Yellow Foot). rapidly. there. Warsaw Stock Exchange.
2012 2013 2014 2016 Slovakia Croatia, Bulgaria Serbia, at the same time and Slovenia, continuing franchise Hungary Germany development. 12 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 13
BUSINESS The most important trends MODEL shaping retail Key events in 2018
01 Being aware of the changes • conclusion of an agreement on the sale of CCC products occurring in sales methods and in 6 countries of the Middle East region the upcoming changes in retail, 02 the CCC Group has adapted • reorganization of the CCC Customer Service Office its business model to 03 these changes. Offline stores Online stores Mobile • release of the first ever Non-financial Report of the CCC Group 04 • finalization of the agreement on the acquisition of the franchise sales network in Romania 05 • opening of a flagship store with an area of 2500 m2 in the most Customization A.I. Social Media prestigious location in Poland - Wars Sawa Junior department store in Warsaw • adoption of the CCC Group Supplier Code of Conduct 06 • acquisition of the second largest player on the Swiss market - Voegele Shoes • joining the partnership for the implementation of SDGs 07 • acquisition of majority shareholding in DeeZee Sp. z o.o. CCC Vision • conclusion of a sponsorship agreement under which CCC will 2020 In the coming become a sponsor of one of the best cycling teams in the world 5-10 years trade 08 will change more than in • making the Reserve and Collect service available CCC - the winner in last 100 years. to CCC customers all over Poland market transformation 09 • joining the Strategic Partners of the Responsible Business Forum 10 1 • launching the CCC Research and Development THE MOST RESPONSIBLE Centre in Polkowice retail company in Poland • launch of the esize.me project run by eobuwie.pl SA 11 • establishment of a global partnership with UNICEF as the first Polish company in history • conclusion of an agreement with Hamm Reno Group GmbH, 2 3 which will result in the sale of the subsidiary CCC Germany CUSTOMER EXPERIENCE HIGH GmbH to the HR Group and the acquisition of a minority LEADER PROFITABILITY shareholding in the HR Group. through omnichannel 12 • joining the Respect Index on the Warsaw Stock Exchange • adoption of the Environmental Protection Policy and Strategy and update of the HR Policy 4 5 12 of 19 HEALTHY AND DYNAMIC GROWTH key events is PROGRESSIVE in numerous related to CSR BALANCE SHEET business models 14 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 15
STRUCTURE OF THE CCC CAPITAL GROUP On 18 June 2018, in the performance of a conditional sale agreement, the subsidiary NG2 Suisse GmbH with its registered office in Zug purchased from KAVO-Holding AG with its registered office in Zug The dominant entity in the CCC Capital Group is CCC S.A. (Switzerland) a majority shareholding of 1,400 shares in Karl Voegele The company‘s headquarters is in Polkowice, AG with its registered office in Uznach (Switzerland). and the Regional Office is located in Warsaw. On 29 June 2018, CCC S.A. and Adler International spółka z ograniczoną odpowiedzialnością spółka komandytowa (Limited Manufacturing Distribution E-commerce Other CompaLimited Partnership) with its registered office in Dąbrówki, activity activity activity activities Czarna commune, Łańcut concluded an annex to the conditional CCC S.A.
CCC Factory CCC.eu sp. z o.o. CCC Obutev d eobuwie.pl S.A. NG2 Suisse S.a.r.l. agreement obliging to sell an organized part of the enterprise of 11 Sp. z o.o. 100% Poland o.o. 74,99% Poland 100% Switzerland April, 2018 and a promised agreement, on the basis of which the 100% Poland 100% Slovenia Issuer purchased an organised part of the enterprise covering the CCC CCC Slovakia DeeZee Sp. z o.o. CCC management of footwear retail stores, marked with the „CCC” logo, Germany GmBH s.r.o. 51% Poland Isle of Man Ltd. 100% Germany [1] 100% Slovakia 100% Isle of Man that form the sales network organized by CCC in Poland.
CCC Czech s.r.o. CCC Shoes CCC Shoes and 100% Czech Ayakkabicilik Bags sp. z o.o. On 24 November 2018, the Company concluded a conditional Republic Ticaret Limited 100% Poland Sirketi agreement on the sale of shares in HR Group Holding S.à r.l. with 100% Turkey its registered office in Luxembourg, which will result in the sale of a CCC CCC Eobuwie.pl Austria Ges.M.b.H Hungary Shoes Logistics Sp. z o.o. subsidiary CCC Germany GmbH to the HR Group and the acquisition 100% Austria Kft. 100% Poland of a minority shareholding in the HR Group. 100% Hungary
CCC CCC Shoes & Eschuhe.de UG Hrvatska d o.o. Bags d.o.o. 100% Germany 100% Croatia Beograd-Novi Beograd 100% Serbia
CCC Russia Karl Voegele AG Branded Sp. z o.o. 70% Switzerland Shoes&Bags GINO ROSSI 75% Russia Sp. z o.o. 100% Poland
CCC Shoe Express S.A. Shoes Bulgaria 100% Romania 100% Bulgaria Due to the difficult liquidity situation of Gino Rossi, the CCC Group
[1] In 2018, CCC SA concluded a conditional agreement on the sale of CCC Germany to the HR Group decided to support it and decided to issue a tender offer for 100% of the Company’s shares.
2018 was an important year for the Group in terms of structuring its sales At the same time, CCC signed the agreement on the purchase network, consistent organic growth in the region and acquisitions in of existing loan receivables of the Company. CCC hopes that developed markets. the announced tender offer, the acquisition of Gino Rossi’s loan receivables and the constructive attitude of the other creditors On 17 January 2018, CCC.eu Sp. z o.o., a subsidiary of the Issuer, of the Company will allow to secure the further functioning of concluded a franchise agreement with Apparel FZCO with its registered the company. CCC Group intends, together with Gino Rossi’s office in the United Arab Emirates, providing for cooperation between the management, to improve the financial situation, increase the entities in the sale of CCC footwear and other products of CCC brands company’s capacity utilization in its factories in Poland, maintain in the territory of 6 countries of the Middle East region, i.e. Saudi Arabia, current jobs and strengthen the brand and the company. United Arab Emirates, Kuwait, Oman, Qatar, Bahrain.
On 25 April 2018, a subsidiary CCC Shoes & Bags Sp. z o.o. with its registered office in Polkowice acquired 100% of shares in Shoe Express S.A. with its registered office in Bucharest. Shoe Express S.A. previously acquired from Peeraj Brands International SRL an organized part of the enterprise covering the operation of all stores under the CCC brand in Romania. These stores have so far been operated by Peeraj Brands International SRL under a franchise agreement with CCC S.A. 16 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 17
Points of sale
Number of CCC stores Status by Number of eobuwie.pl S.A. Status by /points of sale 31.12.2018 points of sale 31.12.2018 own chain Number of CCC POLAND 466 Number of eobuwie.pl 9 stores - own stores POLAND stores franchise chain
Number of CCC CZECH 93 eobuwie.pl online platforms eobuwie.pl chain stores - own stores POLAND Number of CCC SLOVAKIA 51 stores - own stores CZECH REPUBLIC ESTONIA Number of CCC HUNGARY 76 SLOVAKIA SWEDEN 3 stores stores - own stores GERMANY RUSSIA Number of CCC AUSTRIA 49 HUNGARY stores - own stores ROMANIA Number of CCC SLOVENIA 14 LATVIA stores - own stores LITHUANIA 7 stores
Number of CCC CROATIA 25 SWEDEN stores - own stores LITHUANIA BULGARIA 4 stores Number of CCC GERMANY 77 35 stores stores - own stores UKRAINE
Number of CCC BULGARIA 11 GREECE stores - own stores FRANCE Number of CCC SERBIA 11 stores - own stores ITALY
Number of CCC RUSSIA 35 SPAIN stores - own stores POLand Number of CCC ROMANIA 62 466 stores stores - own stores Number of Voegele Shoes Status by points of sale 31.12.2018 77 stores Number of CCC LATVIA 7 stores - franchise stores Number of Voegele 197 germany CZECHia UKRAINE SWITZERLAND stores Number of CCC UKRAINE 11 93 stores stores - franchise stores 11 stores Number of CCC LITHUANIA 4 SLOVAKIA 51 stores stores - franchise stores MOLDOVA
1 store Number of CCC ESTONIA 3 AUSTRIA FRANCE 49 stores stores - franchise stores HUNGARY Number of CCC MOLDOVA 1 76 stores SLOVENIA stores - franchise stores 14 stores CROATIA ROMANIA 25 stores 62 stores TOTAL number of CCC 996 SERBIA stores
11 stores ITALY
BULGARIA 11 stores
SPAIN GREECE 18 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 19
Value chain
1 2 3 4 5 Design and order Production Logistics Retail sales After-sales service
CCC Factory Sp. z o.o. has its own Offered products come from the Before shipment to CCC stores, The CCC Group strongly focuses From 2018, consumers can use the Design Department, where projects CCC Group factory in Polkowice, the products go to the Logistics on omnichannel. Currently, sales are modernized Customer Service CCC, of footwear produced in the factory located in the Legnica Special Eco- Center in Polkowice, one of the larg- carried out both at stationary points which was created on the basis in Polkowice are created. nomic Zone and from domestic and est facilities of this type in Europe. of sale and online platforms. In 2018, of a new IT system. Thanks to the foreign suppliers. The complex in Polkowice is able to new solutions aimed at integrating changes, the employees responsible Before placing an order for the entire accommodate 23 million pairs the channels and helping customers for customer contact are able to batch of footwear, the so-called con- Before shipment to CCC, suppliers of footwear. reach the products were introduced. approach customers in a personalized firmation pattern is assessed in terms are obliged to provide a set of docu- and appropriate way. of compliance with the previously ments confirming compliance with Orders placed on eobuwie.pl plat- At the end of 2018, the CCC Group adopted arrangements and design. quality standards and lack of chemi- forms are processed and shipped consisted of 996 CCC stores, In 2018, Customer Service accepted cal substances in products - this is a directly from the Distribution Centre 9 eobuwie.pl stores, 197 Voegele over 30 thousand consumer At this stage, the quality of materials, condition for accepting the delivery. in Nowy Kisielin / Zielona Góra. Shoes stores, 1 CCC platform with notifications. This is about 3 times colors, and sewing and assembly Ultimately, the Distribution Centre the Reserve & Collect service, more than the number of submissions techniques used is also controlled, Suppliers are selected in accordance will support eobuwie.pl, CCC, Dee- 14 eobuwie.pl regional platforms, in 2017 - 10.7 thousand. as well as the passivity and stability with strictly defined criteria, such as Zee and Voegele e-commerce. 1 Voegele platform, 1 DeeZee plat- of the footwear. conducting business activities with form, 33 maintenance-free esize.me the respect for human rights and points located outside stores. social standards concerning many aspects, including working condi- tions and pay. 20 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 21
Awards and Membership distinctions of associations in 2018 and organizations
Responsible Business Polish Association LSEZ’s Lower Silesian Forum [FOB] of Listed Companies Educational Cluster CCC S.A. awards
CCC joined FOB as a Strategic CCC SA acts in the organization Lower Silesian Educational Cluster Partner. The Forum is a think-and- as a supporting member. in the Legnica Special Economic Friend of the Consumer Management Board’s Responsible Companies do-tank organization, which remains Zone was established in 2015 • The title „Friend of the Competences Ranking the initiator and partner in business Polish Association of Listed in order to facilitate forecasting Consumer“ awarded by Office • The second place in the • 6th place in the general activities strategic for Polish CSR. Companies cares about the the labour market demand for of Competition and Consumer Management Board’s classification More about FOB at: development of the Polish capital specific skills, occupations and to Protection in the large companies Competences category in the • 3rd place in the industry http://odpowiedzialnybiznes.pl/ market and represents the interests increase the availability of practical category ranking of Puls Biznesu „2017 Stock classification of the Responsible of companies listed on the Warsaw vocational training. The organization Exchange Company of the Year“ Companies Ranking Stock Exchange. Existing since coordinates operation of schools and Best Investor Relations The Convention of Jan 1993, SEG provides the issuers’ companies so that they can establish • The prime award in the category SCF Retailers’ Awards Orzeł Wprost 2018 Wyżykowski University community with knowledge and cooperation in creating vocational Best Investor Relations in • Retailer of the Year [The „Wprost” Eagle 2018] (UJW) in Polkowice advice in the field of stock market training classes and developing the the Stock Exchange Company • Business Leader regulation and the rights and idea of dual education system for the of the Year 2017 Ranking Business Sharks obligations of the participating needs of enterprises. • The prime award in the Business The prize awarded by The CCC Group is represented companies. More about LSEZ’s Lower Silesian The Stock Exchange Sharks competition in the the newspaper „Dziennik in it by Marcin Czyczerski, Vice- More about SEG at: Educational Cluster at: http://lsse. Company of the Year Company of 2017 category Gazeta Prawna” as part President of the Management Board http://seg.org.pl eu/dolnoslaski-klaster-edukacyjny/ • The second place in the ranking of the 6th edition of the of CCC S.A. and Mariusz Gnych, of Puls Biznesu „2017 Stock CEE Capital Markets & FinTech „There is no future without President of the Management Board Exchange Company of the Year“ Awards entrepreneurship“ project of CCC Factory Sp. z o.o. The UJW amfori BSCI Executive Club • Best Overall Listed Company • Polish Brand Convention is an opinion-forming of the Year - Poland and advisory body supporting the development as well as didactic, One of CCC’s subsidiaries, Karl Executive Club is a business orga- scientific and organizational activities Voegele AG is a member of amfori nization associating representatives of the University. Employers BSCI, a leading global association of top management of the most eobuwie.pl awards operating in the Convent have a real of entrepreneurs in the field of open important Polish and international impact on the curriculum and the and sustainable trade, bringing companies. Starting from 2005, quality of education of their potential together more than 2,000 retailers, the Club brings together business employees. importers, brands and associations leaders with an established position SCF Retailers’ Awards Imagine Excellence 2018 ORŁY RZECZPOSPOLITEJ 2018 More about the UJW from over 40 countries. who, through their actions, set di- • Online Fashion Store • The Most Innovative [THE EAGLES OF THE REPUBLIC Convention at: rections for the development of the of the Year Customer Experience OF POLAND 208] http://ujw.pl/index.php/ Polish economy. • The prime award in the category wspolpraca/konwent-uczelni/ More about Executive Club at: of trade and non-financial services http://executive-club.com.pl/ 22 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 23
Selected data from the consolidated The Management Board of CCC S.A. statement of profit or loss and other Selected comprehensive income for period fromJanuary to December 2018 DARIUSZ MIŁEK financial data CORPORATE GOVERNANCE Financial activity PLN million Since 2004 has been serving the function Sales revenues 4 943,6 of the President of the Management Board Poland 2 060,0 of CCC S.A. Founder of F.H. Miłek, and then CCC is a public company Central and Eastern Europe 1 035,4 CCC Sp. z o.o., which transformed into CCC S.A. listed on the Warsaw Stock Western Europe 430,8 Exchange, which for years Other countries 112,7 has been building its value in Retail 3 638,9 an open manner, sharing key E-commerce 976,8 mariusz gnych information with stakeholders. Wholesale 108,9
Production 0,5 The Company makes every Other - Since 2004 the Vice President of effort to comply with the Gross profit (loss) 2 369,9 the Management Board of CCC S.A. principles of corporate Gross margin on sales 47,9% Associated with the Company governance, which is a set since 2000. of rules of conduct of the Segment results: Company, as well as its Poland 292,3 supervisory board, manage- Central and Eastern Europe 109,6
Western Europe (72,4) marcin czyczerski ment board and sharehold-
Other countries (2,3) ers, in all of its activities.
Retail 327,2 The principles of corporate
E-commerce 99,9 Since 1 January 2017 governance are defined in
Wholesale 27,9 the Vice President of the Management the document „Best Practice
Production (0,3) Board of CCC S.A. of GPW Listed Companies
Operating profit 372,5 2016”. CCC adheres to all the
Profit before income tax 256,4 rules contained therein.
NET PROFIT 223,5 ADJUSTED NET PROFIT 84,1 karol półtorak A full statement on the ap- plication of „DPSN 2016” Fixed assets 3 574,1 can be found on the website, Current assets, including: 3 161,9 Since 1 December 2016 in the section dedicated to Stock inventory 1 806,1 Cash 375,8 the Vice President of the Management corporate governance: TOTAL ASSETS 6 736,0 Board of CCC S.A. https://firma.ccc.eu/ lad-korporacyjny Long-term liabilities, including: 2 650,9 Debt liabilities 210,0
Short-term liabilities, including: 2 937,3 Debt liabilities 806,8 TOTAL LIABILITIES 5 588,2 Members of the Management Board of CCC S.A. are appointed and dismissed by the Supervisory Board. EQUITY 1 147,8 The competences and principles of operation of the Management Board of CCC S.A. have been defined in:
• The Commercial Companies Code; • The Articles of Association, available on the website (https://firma.ccc.eu/lad-korporacyjny); • The regulations of the Management Board, available on the website (https://firma.ccc.eu/lad-korporacyjny); • Scheme of division of responsibility for individual areas of the company‘s activity among members of the Management Board (https://firma.ccc.eu). 24 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 25
Ownership structure of CCC S.A. The Supervisory Board of CCC S.A. THE BOARD
Shareholder Number % of par- Number % of share in the of shares ticipation of votes at number of votes owned in share the General at the Gen- capital Meeting of eral Meeting of 100% Wiesław Oleś Shareholders Shareholders of men ULTRO S.a.r.l. 11.060.000 26,86% 16.520.000 34,55% Audit Committee (a subsidiary of Dariusz Miłek) Chairman of the Supervisory Board Leszek Gaczorek 2.000.000 4,86% 3.040.000 6,36% 47 years AVIVA OFE* 2.975.150 7,23% 2.975.150 6,22% since 2 June 2016 until now. The first-term Audit Committee was average age Nationale-Nederlanden OFE* 3.429.086 8,33% 3.429.086 7,17% In the Supervisory Board of appointed in the Company on 2nd Other investors** 21.703.764 52,72% 21.853.764 45,70% CCC S.A since 2015. June 2016, but due to the end of TOTAL 41.168.000 100% 47.818.000 100% the term of office of the Supervisory * data from the annual information on the structure of the Fund’s assets as of 31/12/2018 8 years Board and appointing at the Ordinary ** Other investors holding less than 5% of votes at the General Meeting of Shareholders average time of performing Marcin Murawski General Meeting of Shareholders the function of a Management (hereinafter: „AGM”) on 8th June Board Member 2017, for the next term of office (term Member of the Supervisory Board 2017-2019), the Supervisory Board Changes in the organization of CCC Group since 2012 until now. at the next meeting after the AGM, within the period covered by the report 16 resolutions on 17th August 2017, appointed the Management Board Audit Committee of the second adopted in 2018 term of office from among the On 31 January 2018, Mr. Marcin Pałażej submitted his resignation Jerzy Suchnicki members of the Supervisory Board, from the position of the Vice President of the Management Board in accordance with the requirements of CCC S.A. with effect as of 31 January 2018. Supervisory Board of the Act as of 11th May 2017 on Member of the Supervisory Board statutory auditors, audit firms and As of 25 July 2018, 4,000 series E shares with a nominal value since 2015 until now. public supervision. of PLN 0.10 each were introduced to stock exchange trading as a result of exercising by the entitled person the right to convert 100% As part of the existing Audit subscription warrants to shares as part of the Incentive Scheme for of men Committee, Mr. Marcin Murawski is a 2013-2015. Waldemar Jurkiewicz member with knowledge and skills in accounting or auditing, while Mr. Piotr On 3 December 2018, as a result of a cross-border merger of a 52 years Nowjalis has knowledge and skills in subsidiary of Dariusz Miłek ULTRO S.à r.l. with its registered office average age Member of the Supervisory Board the field of the Company industry. in Luxembourg and a subsidiary of Dariusz Miłek Ultro sp. z o.o. since 2 June 2016 until now. with its registered office in Polkowice, as a result of which ULTRO For independent members of the S.à r.l. assumed all rights and obligations of Ultro sp. z o.o. and by 3 years Audit Committee, in accordance with law took over all of its assets and liabilities, including the shares of Average time as a Member the provisions of the Act on Auditors, the Company and thus ULTRO S.à r.l. became a direct shareholder of the Supervisory Board PIOTR NOWJALIS Audit Firms and Public Supervision of the Company, share of Ultro Sp. z o.o. in the total number of vo- and Schedule II to the Commission tes at the General Meeting of Shareholders fell below 5%, i.e. to 0% Recommendation of 15th February and the share of ULTRO in the total number of votes at the General 5 Member of the Supervisory Board 2005 on the role of non-executive Meeting of Shareholders increased above 33% and 33 1/3%. Number of the Supervisory since 10 January 2017 until now. directors or supervisory board Board meetings in 2018 members of listed companies On 23 October 2018, the Issuer’s subsidiary - eobuwie.pl S.A. and on the (supervisory) board commenced initial preparations for the first public offering (IPO) of committees; requirements specified eobuwie.pl S.A. shares and the admission of the company’s shares 92% in the Code of Best Practice for to trading on the regulated market operated by the Warsaw Stock Attendance of Members of WSE-listed Companies, Mr. Marcin Exchange. The IPO is being considered in order to obtain funds by the Supervisory Board at Murawski and Jerzy Suchnicki were eobuwie.pl S.A to finance further development of the company’s meetings recognized. operations. 26 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 27
Ethical system in the CCC Capital Group
One of the CCC objectives on the road to success is to take into account sustainable development efforts as well as to understand the needs of stakeholders.
This approach involves building an organisational culture based on internal values, honesty, respect and observing the rules of law and applicable standards. The foundation for creating such an organizational culture is the CCC Group Code of Ethics, which has been in force since 2014. In 2018, it was updated in such a way that both the company and the employees shared the same values.
The Code of Ethics formulates the highest values that strengthen the process of shaping an ethical environment and mutual trust in CCC. The CCC Group Code of Ethics presents the attitude of the employees of the companies from the CCC Capital Group and describes the obligations and guidelines concerning the standards of conduct, regardless of the area of business activity and the scope of responsibility in CCC.
This Code also compliments legal regulations, defining frameworks and standards of behaviours aimed at ensuring functioning of the organization in a way that adds to the reputation and goodwill of the CCC Capital Group.
Values of the CCC Group 1. DEVELOPMENT 2. ENTREPRENEURSHIP 3. RELIABILITY 4. RESPONSIBILITY
• optimal use of knowledge and • innovation and dynamism • openness and reliability • awareness of our actions and competences in the actions in communication consequences of our decisions • being a specialist in your field • achieving ambitious goals • fulfilling our commitments • care for the safety of employees • continuous skills and • recognizing and using • collaborative partnership • attention to processes safety competences developments opportunities • authenticity in actions • ensuring the expected product • promoting engagement and • expansiveness and creativity safety and quality effectiveness in developing new procesess 28 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 29
Week of Values
In order to ensure efficient communication within the Group, in 2018, on the occasion of updating internal values and the Code of Ethics, the Week of Values was held in order to emphasize the shared values of the organisational culture.
During the Week, each of the values was communicated separately, along with a description and expected attitudes of the employees. In addition to the values of the CCC, anti-corruption rules, rules on accepting and giving gifts, conflict of interest and ways of reporting violations were also communicated. The Week of Values was addressed to all companies in the Group and was simultaneously conducted on the Polish and foreign markets.
The Code is supplemented by anti-corruption procedures, which together with it constitute a set of ethical principles applicable in the CCC Group.
In 2018, two new regulations were introduced, i.e. The CCC Group Anti-Corruption Code and Procedures for reporting violations in the CCC Capital Group. 30 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 31
The CCC Group strives to ensure that its dealings with employees and third parties are characterised by Dedicated channels of The CCC Group compliance with national laws and regulations, taking into information exchange include: account cultural circumstances. • contact form available on the Company’s Anti-Corruption Code website at: responsibility/ethics; At the same time, it makes every effort to create • dedicated e-mail address for reporting all an environment conducive to open and honest the abuses and violations: [email protected].; communication. In the event of a suspicion of a • direct contact with the Internal Auditor; violation of the rules of law or of the principles • under justified circumstances, direct The CCC Capital Group takes outlined in the Code of Ethics or the Anti-Corruption contact with a Management Board Member a zero-tolerance policy against corruption In accordance with the provisions of the Code, each person (regardless of whether they are of CCC S.A. in all areas of its operation. Code, all employees are obliged employees or third parties) may use the available to apply the following rules: information tools in order to report a violation / irregularity. Reporting any conflict or difficulty The main purpose of The CCC Group Anti- • not offering to give or giving any material is the appropriate behaviour. Corruption Code, applicable to CCC S.A. or personal benefit; and its subsidiaries is to prevent corruption • not accepting any kind of material In 2018, the CCC Group focused on raising All issues raised by an employee, regardless and bribery behaviors undertaken by any of personal benefit; employees’ awareness of the applicable of the form of contact, shall be treated person acting in the name of or on behalf of • refusing to accept any material ethical principles and possibilities of reporting confidentially and handled with the CCC CG. of personal benefit; violations. due diligence. • not soliciting to give any material or personal benefit; Every employee is guaranteed full • promoting ethical behaviors and transparency anonymity, unless they decide to disclose among associates and business partners; their personal information. The CCC • not taking any actions which expose a Company In 2018, no corrupt practices were Group also ensures that no retaliatory from the CCC CG to the risk of non-compliance identified in the CCC Group. action will be taken. with anit-corruption laws; • reporting any suspicions or indications of committing an act of corruption.
Percentage and total number of business units analyzed The Code also regulates matters of accepting and for corruption risks and risks identified offering business gifts. Any case of a business Total number of business units 20 of the organization gift acceptance shall be without prejudice to the Total number of business units analyzed 20 following rules: for corruption risk Percentage of business units analyzed 100% for corruption risk • its value is less than PLN 100 per a calendar year (gifts of small value); • it cannot be given in the form of cash or its equivalent (e.g. shares, vouchers, sodexo coupons, prepaid cards); Potential corruption mechanisms constituted one of • it is not given pending a favourable business decision the elements of the risk analysis carried out by the (acceptance of a tender); Internal Audit. • it is not given in response to Employee’s request; • disclosure of its acceptance could result in Company or Employee reputational damage. Due to the fact that most of the CCC Group processes are centralised, the greatest risks related to corruption have been identified in CCC S.A. and CCC.eu Sp. z o.o. In other companies, the risk is negligible, and therefore actions have been targeted at companies generating the greatest risk. 32 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 33
The identified areas of increased corruption risk include: Employees, in particular managers of Risk organisational units in CG CCC subsidiaries The objective of the systemic are obliged to identify current bribery and approach to risk management • Accepting or giving business gifts and other corruption risks within the scope of their Management adopted in CCC S.A. is to: tangible or intangible benefits in order to actions, thorough internal control and develop and maintain business relations; ensuring transparency of processes and • increase the possibility of achieving • Selection of a service / commodity provider; activities performed in terms of preventing System Company’s objectives, increase • Drawing up or participation in tenders; corruption and promoting ethical behaviours the effectiveness of process • Incurring liabilities and purchasing in the name among associates. As part of strengthening implementation, ensure safety through of or on behalf of the Company; the ethical system and counteracting meeting requirements in terms • Entering into significant transactions due to the corruption in the CCC Group in 2018 and in The CCC has clearly defined risk management rules that allow of technical safety; nature of transaction or an entity entering into connection with the risk analysis carried out, for effective minimization of negative internal events and • reduce the frequency of negative transaction, e.g. rental agreements; anti-corruption clauses covering investment counteracting the effects of adverse external circumstances. events occurrence, as well as to ensure • Making payments on behalf of the Company; orders were implemented. Each order is As a result, the security of the Company‘s operations, better preparation for such events and • Relations with business partners, including accompanied by a standardized clause, which the effectiveness of the decisions made and the implementation reduce losses resulting from them in commercial goods suppliers; includes a description of the CCC approach of the objectives outlined in the Strategy are assured. the situation when such events occur; • Obtaining permissions and favourable clerical to corruption, as well as the ways of reporting • support better utilization of the decisions both domestic and foreign; irregularities or violations. organization’s resources and promote • Audits performed by state institutions, continuous improvement. regulatory authorities; In 2018, no anti-corruption training was Strategy implementation risks • External audit; conducted. In 2019, online trainings in this area will be conducted for all employees.
Area of risk Risk description Actions taken For employees in areas of increased Between 2018 and 2019, the Group plans to increase the In order to minimize risk in the area of strengthening own corruption risk, additional training courses will commercial space of CCC stores by 210,000 m2: sales network, the Group implemented the following solutions: be prepared, covering the issues related to the If the objectives are not achieved, the Group may lose • monitoring competitors activities, Strengthening own sales its market share to the benefit of competitors, which will • monitoring the situation in the industry, network risks they may face. translate into lower revenues. At the same time, the Group • monitoring of the macroeconomic situation, may incur costs higher than planned and necessary, in • creation of a detailed plan and setting up the team the event of network development inconsistent with the responsible for achieving the objectives related to market demand. the development of own sales network.
The increase of brand recognition and its value, con- In order to ensure further development of brand recognition, tributes to retaining regular customers, as well as to the the Group has taken the following actions: systematic attraction of new ones. As a result, this will lead Actions aimed at increasing • introduction of appropriate advertising and promotional to an increase in market share and revenues. In the event brand recognition and value instruments, of a decrease in brand recognition and its value, there • introduction of an interesting decor of the stores, may be an outflow of customers and a decrease in market • placing the stores in prestigious location. share and, consequently, in revenues.
The location of commercial units is an important factor determining the attractiveness of the brand for consum- ers. Inadequate choice of location may lead to low In order to ensure choosing the appropriate location of com- profitability per m2 of space and, consequently, to lower Location of commercial mercial units, the Group thoroughly analyzes locations before profitability of the entire Group. Strengthening the posi- units deciding to sign the lease agreements, and bases its decisions tion on the market through the dynamic development of on historical data. a chain of commercial units may be associated with the risk of an unsuccessful location of a store, as well as with a limited number of new, attractive locations.
Internal risks
Type of risk Description of risk Actions taken
The source of this risk is uncertainty whether and when the receivables will be settled. As part of wholesale, • In order to minimize the credit risk, the Group has sales are also carried out with a deferred payment date, taken the following actions: whereby the Capital Group CCC S.A. is exposed to the • constant verification of the financial situation of Credit risk risk of financing the recipients. In order to maintain its contractors, leading position on the footwear market, the Capital • constant examination of the history of cooperation Group CCC S.A. uses a trade credit instrument, addition- with contractors ally increasing the attractiveness of the company for wholesale contractors. 34 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 35
External risks CSR Strategy
Type of risk Description of risk Actions taken
Exchange rate risk Companies of the Capital Group CCC S.A. records reve- In order to minimize the exchange rate risk, the Group has taken nues in PLN, EUR, CZK, HUF, HRK, BGN, RSD, RUB, CHF. the following actions: Strategic CSR assumptions Most of the costs are incurred in foreign currencies. Con- • constant monitoring of changes in exchange sequently, the exchange rates of CZK, HUF, HRK, BGN, rates significant for the Group, of the CCC Group for 2017-2019 RSD, RUB, CHF, USD and EUR (practically all imports are • implementation of a natural hedging strategy. denominated in USD and EUR, and a large percentage of space lease costs in EUR) will affect the Group’s income and costs structure. The main supply market for the Capi- tal Group CCC S.A. is the Chinese market and, as a result, Our mission is sustainable development based on three key In order to increase the effectiveness the exchange rate of the Chinese CNY in relation to major world currencies may also have a significant impact on strategic areas. These are our ambitions and, at the same time, of the efforts we make, we have set the Group’s costs. The appreciation of CNY may worsen the import conditions and, consequently, result in higher the contribution of our Group to the three global Sustainable out three priorities for each of the costs for consumers. Development Goals (SDG’s) defined by the UN regarding: three strategic areas within which we The risk of changes The Capital Group CCC S.A. is exposed to the risk of In order to minimize the risk of changes in interest rates, in interest rates changes in interest rates, in connection with the con- the Group has taken the following actions: responsible consumption and production, gender equality implement our projects and activities. cluded credit agreements. These loans bear interest at a • diversification of sources of capital raising, and climate action. variable interest rate based on WIBOR or BLR. An increase • monitoring the most important interest rates in interest rates will have an impact on the amount of interest paid on loans.
The risk of general The Capital Group CCC S.A. conducts its business activity • In order to minimize the risk of general economic situation, economic situation primarily on the Polish, Czech, Hungarian and Slovakian the Group has taken the following actions: markets, hence the purchasing power of consumers and • diversifying operations in terms of the countries in which propensity to consume are important for the Group. De- the Group operates (reducing the correlation of the eco- terioration of the economic situation may have a negative nomic situation between countries), impact on the results of operations and financial situation • monitoring the economic situation in the world and in of the Group. The CCC Group also operates on several the countries important for the Group, and adjusting the other foreign markets (e.g. Germany, Austria, Croatia, Group’s strategy accordingly, Slovenia, Bulgaria, Serbia, Russia). • monitoring important economic indicators in selected countries (unemployment rate, GDP per capita, CPI).
Seasonal sales and Sales and the value of inventories depend on the sea- The factor allowing to reduce the vulnerability of the Capital weather conditions sonality of demand (the peak demand falls in spring and Group CCC S.A. to seasonal and weather conditions is the autumn). Disturbances in weather conditions may result possession of own production capacities. The Group is able to in customers postponing their purchasing decisions or in rapidly adjust production and deliver goods to stores that are in shortening the peak sales season. line with expectations and current weather conditions. #GO FOR MORE #More opportunities #More trust Trends in fashion and The Capital Group CCC S.A. is exposed to the risk of The factor allowing to reduce this risk is the long-term market missed collections missed footwear collections. experience of the dominant entity and constant observa- tion of trends in European and world fashion (participation in international footwear fashion fairs, including Milan, Garda and Brand promise is Developing Good and effective Dusseldorf). customer’s experience organizational potential management
Ambition I Ambition II Ambition III Following the leading global corporate The risk management process supports building the CCC increases the value of the CCC provides dynamic CCC operates on a strong models and in response to the expecta- corporate governance in CCC S.A. The effect of its brand by consciously shaping the development on the Polish and ethical basis, improves its tions of stakeholders, CCC S.A. decided introduction is the standardization of solutions used for experience of customers and their international market based on management process, taking to implement a risk management system risk management, so that the Management Board of the involvement in all sales channels. a cohesive organisational culture, into account social risks in the covering all areas of the Company’s activity. Company, as well as other stakeholders have up-to-date, It offers products that are safe, respect for diversity, cooperation supply chain, and undertakes Risk management is a part of the company’s credible, aggregated and structured knowledge about of good quality, manufactured and employee commitment actions aimed at cost and management system, it is a key element of threats and opportunities for the Company‘s operations with the awareness of the origin as well as implementation of environmental efficiency. sustainable protection and building its va- and methods of utilizing them. of materials, with care for the innovative development projects. lue. It concerns both threats to the business environment, and sold in Priorities: operations, bringing solely adverse effects The risk management system implemented in CCC S.A. a responsible manner. Priorities: 7. We are a company with and a potential decrease in its value (nega- was designed using the guidelines of the international ISO 4. In the era of strong foreign high ethical standards tive risks), as well as risks related to the im- 31000:2012 standard „Risk Management - principles and Priorities: expansion, we build 8. We build a responsible plementation of the strategy and processes guidelines“. This standard sets out principles which must be 1. We provide high quality and a cohesive organizational supply chain and accompanying development opportu- followed in order for risk management to be effective and it safety of the products culture based on values and 9. We minimize the impact nities (positive risks - opportunities). also recommends organizations to continuously improve the 2. We care about positive commitment of employees of the company‘s Risk management is conducted at each framework structure of risk management. The fundamental experience and relationship at all levels operations on the level of managing the organization. assumption of risk management under this standard is the with the customers 5. We care about the safety natural environment integration of the risk management process in different 3. Through the brand, we give of employees areas of the organization‘s operation and with the overall our customers „something 6. We share knowledge corporate governance. more“ 36 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 37
Current status of implementation of the CSR Strategy for 2017-2019
9 priorities were set within the strategy, with 51 key actions assigned to them, Implementation of the CSR Strategy also having an impact on the achievement involves appropriate management of key areas of the goals set. and implementation of appropriate policies and procedures.
• 32 - implemented In 2018, 10 internal regulations concerning significant • 8 - in progress areas of CSR were introduced/updated. The following • 11 - before starting chapters of the Report describe the risks, the results of the implemented policies and internal procedures, and the actions taken.
In accordance with the Strategy and the expec- tations of our stakeholders, in 2018 we achieved Issues Selected, applicable internal regulations
the defined goals in relevant areas of CSR. Employee-related • The HR Policy • Recruitment Procedure • Data Protection Policy • Occupational Health and Safety Policy, Fire Protec- tion Instructions, Procedure for Occupational Health Commitment from the 2017 Non-financial Implemen- and Safety Training (and other detailed procedures) Report of the CCC Group tation • Work Regulations • Remuneration Rules Developing a system of responsible supply chain → Page 46 • Employee Benefit Fund Rules management and implementation of the Code • Professional Development Procedure of Ethics for suppliers; • Diversity policy in corporate governance and top Strenghtening the ethics management system; → Page 26 management • Periodic appraisal system procedure for employ- Supporting employee’s initiatives as part of → Page 98 ees in administrative and office positions and in volunteering and community involvement; warehouses
Raising the level of innovation within our Research → Page 51, anti-corruption • Code of Ethics and Development Center; 65 • Anti-Corruption Code • Procedures for reporting violations Development of internal communication → Page 78 with employees; respect for • The CCC Group Suppliers Code of Conduct human rights • Chemicals Management Policy Improving dialogue with the customers. → Page 62 • Restricted Substance List (RSL) • Regulations for counteracting discrimination and mobbing in CCC S.A.
natural • Environmental Protection Policy environment • Environmental Strategy
social • Sponsoring Policy • Employee Volunteering Regulations • Grant Program Policy
consumer-related • Complaint procedure for customer goods in stationary CCC stores • Responsibility and contacts – Complaints Department • Regulations of return of goods in CCC S.A. • Customer service standards in offline stores • Regulations of the CCC Shoes&Bags website • Regulations of the CCC Club loyalty program
*The regulations introduced in 2018 are marked in orange 38 CHAPTER I | COMPANY Non-financial Report of the CCC Group for year 2018 39
Key stakeholder expectations Dialogue with stakeholders 1. Responsible product and responsible sales Responsibility Discussion of care Company‘s activities in standards in the for the quality of the field of informing manufactured products Key stakeholders of the CCC Group are all supply chain customers about → PAGE 46 and services provided entities that have a significant impact on The last meeting with stakeholders was held on the conditions of the functioning of the organization and on 4 July 2017 in Polkowice. The dialogue session → PAGE 47 production, quality which CCC has an impact by operating in the was attended by representatives of key external and manner of footwear Presentation of the business and social space. Their identification stakeholders, such as: use, mechanisms for company‘s relations Presentation of anti- allowed CCC to select appropriate forms of reporting complaints with subcontractors corruption methods stakeholder engagement and stakeholder • Consumer Federation → PAGE 62 and partners → PAGE 30 relations management. • Ministry of Economic Development → PAGE 45 • LSSE S.A. • „Eudajmonia” Foundation In order to understand the expectations of its • „Kupuj Odpowiedzialnie” Foundation stakeholders, CCC holds a dialogue session • University of Economics in Wrocław 2. Friendly workplace every two years. The next stakeholder panel • The Witelon State University of Applied Sciences is scheduled for 2019. in Legnica Recognition of CCC Overview of how Description of the working • The International University of Logistics and Trans- as a significant player the company conditions offered port in Wrocław in the labor market ensures employee → PAGE 78 • Jan Wyżykowski University in Polkowice → PAGE 72 safety • Citi Handlowy S.A. → PAGE 82 • Sitech Sp. z o.o. Presentation • Cetus-Project Sp. z o.o. Presentation of of the company‘s • KGHM Polska Miedź S.A. the CCC employees The company‘s involve- approach to involvement in ment in the training of employing In addition, employees and customers were intervie- company life future employees foreigners wed about the perception of CCC as a responsible → PAGE 90 → PAGE 87 → PAGE 89 company and the expectations and important issues that the Group should address as part of sustainable development. The surveys will be conducted in parallel 3. Environmental impact to the dialogue session.
Description of the The issue of packaging Addressing the issue of company‘s activities and its impact on the used footwear disposal in the field of environment and activities in the con- environmental protection → PAGE 51 text of circular economy → PAGE 52, 66, 91, 110 → PAGE 54 Stakeholders constitute an important element in the implementation of the CCC Group CSR Strategy, since thanks to them and through joint initiatives it is 4. Social engagement of the CCC Group possible to successfully implement projects that meet the expectations and needs of various entities. This Presentation of the Commentary on Appreciation of concept has also guided preparation of this report, company‘s social the company‘s the company‘s which shows the practices of CCC from engagement activities for employee commitment to sport the perspective of individual key stakeholders. activities volunteering → PAGE 104 → PAGE 102 → PAGE 97 Supplier Experience 42 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 43
Characteristics SUPPLIERS MAP
In order to build the position of the poland most responsible retail company germany
austria
romania serbi italy in Poland, the CCC Group is aware a of interdependencies and a wider china spectrum of influence, not only through its presence on 25 markets, but also india through cooperation with suppliers. hong kong
Effective management of the supply chain Locating production in Poland has been bangladesh and relations is of great importance for an immensely important issue for the CCC the entire CCC Group. Cooperation with Group since the beginning of its operation.
suppliers is based on mutual trust and In 2018, the company’s own factory in brasil long-term relations. Thanks to suppliers Polkowice and other domestic suppliers who share the Group‘s goals and values, delivered goods with the highest share – CCC can develop its business alongside over 30% - in value of all purchases. Asia the development of its partners. accounts for over 60% of the value of the footwear purchases value. The main import Each party benefits thanks to building market is China, with shares in the Group’s partnership relations and implementation entire shopping basket of approximately of detailed standards and requirements - 25%. CCC minimizes operational and reputation risk and has the ability to exert a positive CCC strives for positive relations with influence globally, while suppliers are able suppliers during cooperation. That is why to improve the living conditions of their CCC engages in an ongoing dialogue with employees and the local community and them, visits their factories, talks about improve the efficiency of the processes the problems that have arisen, and invites carried out. them to the Company’s headquarters in Polkowice. Products offered in CCC stores come both from the Group‘s Polkowice factory In some Asian factories there are also su- located in the Legnica Special Economic pervisors from CCC, who keep track of the Structure of purchases, Zone (CCC Factory Sp. z o.o.), and from production process and are able to prevent by value, in % domestic and foreign suppliers. potential emergency situations. Effort put into building long-term relations with suppli- ers enables the development of standards of Footwear All conduct they should follow. goods Poland 35% 33%
China 25% 26%
India 21% 20%
Bangladesh 11% 10%
Hong Kong 6% 8%
Other 3% 3%
Total 100% 100% 44 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 45
Responsibility
1. Selection of a supplier | 2. Cooperation with the supplier | 3. Monitoring and assessment of the supplier | 4. Logistics
1. Selection of a supplier Prior to commencing cooperation, the supplier shall meet the requirements Long-term relations with partners enable CCC to in such areas as: develop common standards of cooperation, which translate into meeting high requirements concer- • Price; where CCC.eu, when choosing a ning product quality and safety, timeliness of pro- footwear/bag supplier, pays attention to duction and delivery, as well as respect for human the level of price, responsibility for deliv- rights and observance of social and environmental ery and transport costs; criteria. • Production quality and timeliness, which are one of the key factors taken into ac- CCC.eu Sp. z o.o. based in Polkowice, as a count when choosing a supplier. CCC contracting entity of products for the entire cooperates only with reliable suppliers Group, sets binding standards and guidelines to be who are able to meet all the requirements implemented by suppliers, so that each product concerning product safety and quality. offered to customers meets their expectations and Suppliers are obliged to provide the best is safe to use. quality of the product so that it meets On the basis of a risk assessment carried out in all the required standards and does not Challenges 2017, CCC identified the most significant risk of CCC.eu Sp. z o.o. builds a base of footwear pose any threat to the health and life of damage in the supply chain and assigned ap- suppliers on the basis of clearly defined rules that consumers; propriate risk levels to suppliers, namely: low, me- meet the internal requirements of cooperation. • Potential, which considers the production /risks dium, high. Factors that were taken into account capacity of a plant, factory; included: factors related to producer countries - • Service, that is offered by the supplier to geographical location of suppliers, factors related the Company CCC.eu in the production to the supply model - cooperation with the agent and delivery of goods. The quality of The nature of the CCC Group’s business and and direct producers, factors related to the busi- machinery and equipment as well as the the dispersion of its supply chain can result in ness model - number of sub-suppliers and their Over 15 years experience of the supplier in cooperation an increased risk in terms of labour and human location, factors related to products - production of cooperation - 9 suppliers: 5 from with European customers are of great rights. Key sectoral risks in the footwear indus- of leather and synthetic footwear. Poland, 2 from China, 1 from Italy, 1 from importance. try include child labour, forced labour, violation Bangladesh of fundamental labour rights, non-compliance The challenge that remains is to enforce suppliers’ In addition, each supplier is informed with minimum wage regulations, use of hazard- compliance with the Code of Conduct, to obtain about the detailed requirements for the ous chemicals, environmental pollution, bribery information on the origin of raw materials, and to production of footwear as well as labor and corruption. develop an audit system to enable dialogue with and environmental standards. local employees and other stakeholders, such as 10-14 years trade unions. of cooperation - 19 suppliers: 4 from Poland, 8 from China, 7 from India Suppliers are not selected for a single season, and The Company plans to introduce formal those who can meet the requirements and develop regulations to enhance security supervision in together are sought after. For many years CCC has the supply chain, as well as to take actions that been cooperating with a base of factories, and the will constitute the Company‘s commitments for Over 130 direction which CCC wants to follow is long-term co- the coming years. in 2018 the Company cooperated with operation, production in Poland, factories producing over 130 suppliers from Poland and other exclusively, supervision of CCC employees on site countries and regular visits to foreign factories. 46 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 47
The first version of the Code of Conduct was By the time this Report was drawn up, Responsibility prepared in 2017, when suppliers were consulted approximately 30% of suppliers had committed
1. Selection of a supplier | 2. Cooperation with the supplier | 3. Monitoring and assessment of the supplier | 4. Logistics on individual provisions. The Code was accepted to fully comply with the new requirements, and handed over to suppliers in 2018. The majo- while the others were in the process of self- rity of suppliers obliged themselves to apply the assessment or verification of compliance with provisions. the guidelines set out in the Code.
2. Cooperation with the supplier Due to having their own social standards in According to the provisions made, suppliers The supplier shall be obliged to: the supply chain, 10 suppliers decided not to shall ensure that none of the goods supplied sign the Code. All of them are international contains restricted substances and pollutants or The cooperation between CCC and the supplier • implement the standards of the Code in their manufacturers of third-party brands, with their exceeds the limit values. The supplier shall test is based on placing an order for a ready-made own business operations and those of their own extensive ethical systems and supply chain each colour-model of manufactured footwear product. Important documents in the procurement sub-contractors, monitoring tools. CCC signed separate arrange- and all components by the approved testing process are: quality and safety requirements, • identify and manage risks in relation to the ments within the scope of the Code. laboratories and carry out all tests on pollutants. procedures, schedule and the Supplier matters addressed by the Code, Code of Conduct, along with • continuous improvement and In December 2018, the Code was supplemented CCC will not accept products that fail to comply the Restricted Substance List. implementation of possible corrective by a list of restricted chemical substances (RSL) with the applicable RSL. Before shipping the actions, together with a specification of the substances finished product, each supplier is obliged to • immediately report to the CCC Company and acceptable limits and a list of accredited provide laboratory tests for the content of The standards to be met by the supplier with any events resulting in violations of the Code. laboratories in which suppliers can perform che- chemical substances. regard to labour and human rights are outlined in mical tests. the Code of Conduct, which covers the following four thematic areas:
In 2018, control bodies did not find any deficiencies in terms of safety and content of hazardous substances prohibited for use in any RESPECT JUSTICE RESPECT FOR SAFETY of the CCC Group companies, THE ENVIRONMENT thus no sanctions were imposed on this account. • Prohibition • Work time lawfully • Employee safety, of child labour, allowed, • Water and wastewater • Employee health, • Prohibition • Decent pay on time, management, • Product safety. of forced labour, • Freedom • Chemical substances’ • Prohibition of of association and management, discrimination, collective bargaining, • Air emissions harassment and • Counteracting management, violence. corruption and • Environmental bribery. protection, • Restricted substances. 48 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 49
Responsibility
1. Selection of a supplier | 2. Cooperation with the supplier | 3. Monitoring and assessment of the supplier | 4. Logistics
3. 3. Monitoring and assessment The selection of suppliers is a very important is- The situations described above occur incidental- of the supplier 15 employees sue for CCC and it is subject to constant assess- ly, but are nonetheless relevant to the supplier‘s exercise regular on-site supervision ment. Following this assessment and in the event assessment through warning them, monitoring in Asian factories. of any irregularities, corrective or preventive them and raising their awareness of the conse- The main tools for monitoring and assessment action is taken together with the supplier on the quences of such an incident. If the supplier dem- of suppliers include.: basis of the analysis performed. onstrates commitment to product quality • Employing CCC personnel permanently and safety, the cooperation is continued. residing in Asian factories and responsible In case of suspicion or confirmation that the prod- Where justified, CCC reserves the right to for the production process and inspection of 20 factories uct fails to meet the safety requirements, CCC withhold or discontinue cooperation. conditions in individual factories. produce exclusively for takes appropriate action to clarify the situation • Regular visits of the company’s headquarters CCC with the supplier of the goods. Suppliers verify employees to the factories. information on deficiencies and take action to • Social compliance audits of suppliers. check causes of the irregularities found. In addi- tion, suppliers contact sub-suppliers to control the quality of materials used in production. In case of In 2018, the Company verified some of its approx. 60 days the aforementioned situation, suppliers are obliged suppliers in terms of the number of audits in 2018 Employees of the Purchasing to initiate corrective and remedial actions in order performed. A number of suppliers were also Division spent about 60 days visiting to prevent such events in the future. audited to verify compliance with the provisions factories in China. These are 6 persons of the Code of Conduct with respect to social and who, interchangeably, supervise environmental issues. the standards several times a year.
Tools to manage, monitor, evaluate and audit the supply chain are continuously being developed and improved. In 2019, suppliers will be qualified for audits based on the type of procurement.
Two companies in which CCC acquired shares in 2018: Karl Voegele AG and the HR Group are members of the BSCI amphora organization, whose mission is to enable each member to increase people‘s well-being, use natural resources responsibly and trade openly all over the world. It was agreed that audits of CCC suppliers will also be performed in accordance with BSCI amphora standards. 50 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 51
Responsibility Innovations In 2018, a device for erecting and 1. Selection of a supplier | 2. Cooperation with the supplier | 3. Monitoring and assessment of the supplier | 4. Logistics sealing shoe packaging - a cartoner - was implemented, which automated warehouse processes. The device will be used for assembling corrugated cardboard boxes As part of the Research and Development Centre and will simultaneously fold the bottom and 4. Logistics opened in 2018, works on the development of lid of the same packaging. product distribution technology in the CCC network are in progress. The research area At a later stage, an optimal action plan will CCC suppliers provide orders to two locations In 2018, eobuwie.pl also commenced works includes: be developed to reduce the consumption of - the CCC Logistics Centre in Polkowice and on constructing the largest logistics centre in the cardboard. Measurable, target results of in Zielona Góra, which is currently under Poland (in terms of total area), which will be built • Research on modelling and optimizing the research and development works in this scope development. in Zielona Góra. Warehouse space will ultimately distribution processes of the CCC network will be: amount to approx. 150,000 m2. The expansion products; • development of the footwear distribution In 2018, another advanced high-bay warehouse will contribute to the creation of over 1,000 new • Development of an IT tool supporting sales technology, was opened in the vicinity of the existing facilities workplaces. The employees will be supported in and logistics; • minimizing waste generation, of the CCC Company. The new 22-metre-high efficient handling of tens of thousands of orders a • Development of an optimal operational • minimizing packaging costs and negative structure increased the storage area of the CCC day by the state-of-the-art warehouse automation scheme limiting the consumption of environmental impact. logistics complex by an additional 18.5 thousand solutions, including autonomous machinery. cardboard and ensuring efficient use of m2, reaching a total of 110 thousand m2 and the resources - with a particular focus on storage capacity of CCC S.A. at the level of 23 The new logistics centre will support eobuwie.pl reducing operating costs and negative impact million pairs of shoes. e-commerce platform as well as CCC, Voegele on the natural environment; Shoes and DeeZee.pl online shops. • Durability tests of new types of packaging >100 tonnes The facilities of CCC (warehouses and Research according to ECT, BCT norms or aging of annual savings on cardboard and Development Centre) are characterized by packaging materials; with the implementation of intelligent and environmentally friendly industrial • Works in the field of new commodity coding an innovative case packer automation solutions compatible with the BMS system - RFID - study of the impact of RFID building management systems such as: DALI technology on the security, efficiency and LED lighting, heating and ventilation control and reliability of supply processes along the entire charging stations for VNA forklift trucks. These logistics chain organized by CCC Group trucks are equipped with lithium-ion batteries. companies; CCC is one of the first companies in Poland that • Research on the testing robot, including: decided to adopt this environmentally friendly platform modelling, design of robotic sensor technology in system forklift trucks, contributing systems, navigation and communication
to the reduction of CO2 emissions (no need to systems, design of control system build a battery charging room). Moreover, the improvements and algorithms, experimental trucks are economically efficient and can be verification of selected functional modules, recharged during breaks. design; • Development and creation of the so-called In 2017, the first units of transport forklift trucks „Interactive Mirror” with functionalities were ordered, and due to the satisfactory results, adjusted to the needs of end users. the company decided to continue orders in 2018 and to develop the technology in the system trucks as well. Eventually, all forklift trucks will be replaced by Li-Ion forklifts. 52 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 53
Raw materials and Raw materials and consumables The consumables used in CCC S.A. used in CCC Factory Sp. z o.o.
Raw materials/con- Total consumption Raw materials/con- Total consumption sumables used by (weight / volume) sumables used by (weight / volume) environment weight weight 2018 2018
natural gas (m3) 449872 natural gas (m3) 191791
diesel oil (l) 123190 diesel oil (l) 9841
petrol (l) 156562 petrol (l) 1235 The environmental goals that CCC paper (t) 378,63 leather (m2) 685575 promotes among its suppliers are: paper, including card- 895,18 board (kg) • in terms of water and wastewater Raw materials and consumables management - minimizing water con- used in eobuwie.pl S.A. and sumption in the production process eobuwie.pl Logistics Sp. z o.o. Raw materials and and efficient management of water companies. consumables used resources, in CCC.eu Sp. z o.o. Raw materials/con- Total consumption • in terms of discharging post-production sumables used by (weight / volume) weight Raw materials/con- Total consumption tannery wastewater - proper treatment sumables used by (weight / volume) of wastewater before discharge, 2018 weight natural gas (m3) 120365 • in terms of emissions to the atmos- 2018 diesel oil (m3) 54,10 phere - monitoring the level of emis- diesel oil (l) 136807 petrol (m3) 36,58 petrol (l) 49804 sions to the environment and concern paper (t) 62,98 for the protection of employees and wood (t) 730,26 local society against the harmfulness of such an impact. Total water intake in CCC S.A. and the CCC Group by source
Raw materials/consumables CCC S.A. CCC Factory eobuwie.pl S.A. Total All suppliers shall be obliged to comply used by weight Sp. z o.o. eobuwie.pl Logistics Sp. with applicable environmental regulations z o.o.
and to use resources sparingly. Suppliers The total volume of water Total volume (m3) collected by the Company by strive to ensure that die-cutting generates source (in m³)
minimum waste. The material scraps that water supply from the 20356,718 4680,22 5155 30191,938 remain after the cut-outs are still used municipal network for all sorts of decorative elements (e.g. a zip puller tag, etc.).
In the CCC Group, raw materials and con- Additional measures implemented in One of the elements analyzed sumables are mainly used in production the supply chain include ecological when deciding upon selection of a and logistics processes. management of own transport, as transport service provider are envi- well as of transport service provi- ronmental aspects, e.g. compliance ders, through: with the Euro 5 and 6 standards, which determine the acceptable • selection of means of transport pollutant emission levels of vehicles. appropriate to the routes and type of cargo, Warehouses are equipped with • optimization of the vehicle’s car- innovative, energy-saving LED go space, which reduces lighting. Storage facilities have also
CO2 emissions into the been equipped with many other so- atmosphere. lutions to reduce energy consump- tion, such as air curtains, automatic blinds and windows limiting the penetration of solar radiation. 54 CHAPTER II | Supplier experience Non-financial Report of the CCC Group for year 2018 55
An important aspect of the environmental impact of CCC’s operations is the waste generated. The main sources of waste are generated in con- nection with production, logistics and wareho- The using works. The largest percentage of waste is cardboard packaging, plastic packaging, environment and footwear production waste.
>90% of our waste is recycled or subject to other recovery processes.
Where possible, CCC strives to reuse packaging and prevents packaging waste through: limiting the repacka- ging of post-seasonal footwear (e.g. in cases of: damage to individual packaging). Collective packaging is a material used repeatedly during storage and distribu- tion as well as after-season goods transportation to the headquarters or storage of goods in deposit wareho- uses. Damaged cartons, for which reuse is not possible, are recycled. Before the secondary raw material is handed over to authorised recyclers, cartons and paper are sent to balers, which optimise the waste space and transport costs.
Specific Objective All waste that is not prevented from being generated of the Environmental Strategy: is stored selectively and handed over to companies with Reduction of the environmental appropriate permits for the management of a specific indicator by 5% by 2021 type of waste. In 2019, the CCC commits itself to introduce in relation to the average Further formal regulations to enhance supply chain security indicator for 2015-2017 supervision, including the qualification of suppliers for audits and the implementation of tools to commitments manage, monitor, evaluate and audit the Waste by type of waste and treatment method supply chain.
eobuwie.pl SA, eobuwie.pl CCC S.A. CCC Factory Sp. z o.o. The need to verify the origin of raw materials and Logistics Sp. z o.o. consumables, especially leather, will also be Total weight of hazardous and 2018 2018 2018 of importance for CCC in the future. non-hazardous waste by method non-hazardous hazardous non-hazardous hazardous non-hazardous hazardous of treatment waste waste waste waste waste waste Recycling [Mg] 2993,76 149,38 935,01 Being aware of more than just the need to ensure product Landfill storage [m3] 16,03 159,90 1247,98 safety, CCC aims to educate its suppliers on human, Recovery [Mg] 183,51 17,12 labour and environmental rights issues. Reuse [Mg] 497,27
On-site storage [Mg] 0,77
TOTAL 3009,79 332,89 177,02 920,91 Customer Experience 58 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 59
Characteristics Challenges /risks Invincibly, CCC and Lasocki are the most recognizable footwear brands in Poland. 255 mln The awareness of the CCC brand is high and stable customers visited offline CCC among Polish customers - over 90% of Poles are stores in Poland and other The essence of the activities performed by familiar with the CCC brand, 70% have once bought countries in 2018 the CCC Group is following the customers‘ shoes, while for nearly 50% it is a regular place to needs, listening to them intently and buy footwear.1 responding to their expectations.
Customers include a wide variety of age groups. 39,5 mln Nearly 60% of Poles take into consideration The largest group of customers is people aged customers purchased from purchasing CCC footwear which is between 25-49. The brand also has relatively good CCC in 2018 a significant increase compared to 2017 (42%). brand awareness indicators in the 18-24 age group. In connection with the ongoing changes in In both age groups, the brand recorded a significant the retail sector and growing expectations, increase in recognisability, thus strengthening CCC opens up to new concepts and its position. challenges.
The image of CCC is strong and stable - the main The current revolution in trade, which focuses attributes of the brand appreciated by customers are: on digitalization and changing the model of a wide range of products, fashionable design and making purchases, increases complexity of attractive price. Moreover, the most valuable Polish the whole purchasing process, but at the same footwear brand, and also one of the most valuable time individualizes it. The customer no longer trademarks of Polish origin1 - the Lasocki brand is has to adjust to shop opening hours. They can appreciated for its high quality leather shoes. make purchases in the most convenient ways for themselves, from any place and at any time, and simultaneously check the availability of the offer, product reviews and compare prices.
The pace of change is not slowing down, and it certainly is a challenge to match the offer to customers who are active both online and offline, while still meeting their expectations regarding price, product quality and safety, service standards, availability and convenience of shopping. At the same time, one must not forget about the risks, which have accompanied the industry for many years, i.e. seasonality of sales, weather conditions or unsuccessful collections.
1 Based on our own research conducted among IQS clients, November 2018 2 Rzeczpospolita Ranking of the most valuable Polish brands – 23 February 2018 60 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 61
Responsibility
1. Searching for footwear | 2. First impression | 3. Sales and products | 4. Customer service | 5. After-sales service
1. Searching for footwear 2. First impression
Sales are currently evolving, shopping must be The attention of the customer is first attracted by Customers shopping in stationary eobuwie.pl Another one is the pick-up and storage area. simple, comfortable and enjoyable. The main the interior design and furnishing - architecture, stores are welcomed in a store with apparently Behind the counters, you can see the whole open incentive to buy footwear is the change in weather atmosphere and displays play an important no shoes, and only with touchscreens. warehouse with tens of thousands of shoes. conditions, but also special offers and current role in the customer‘s perception of the brand. The area of the sales room is about 300m2, trends. As a result, companies have to constantly An important aspect is also the systematic There are about 50 screens, without with about 1700 m2 of warehouse space. monitor the situation and react and adjust their improvement of the quality of service - by shoe displays in the store. sales channels to customers‘ expectations. providing appropriate staff assistance and The customer can easily search for shoes by The offer of the CCC Group entities is not satisfying expectations. With a larger and well- The store is divided into three sections. The first category, purpose, size or color, just like online. competitive, but rather complementary. arranged store, it is possible to display more one is a fast track, where you can place an order The difference is that the customer does not have Both traditional and online sales operate in parallel assortment and give customers a better navigation using tablets. Then, there is a comfort zone, to wait a whole day for delivery, but only and complement each other. to products they are interested in, so that they do where you can sit back on sofas and browse 3 minutes when the footwear is being moved from not waste time on unnecessary activities. through the offer. the warehouse to the store. This is the exact time Traditional sales of the CCC Group include 1201 between placing an order and having shoes to try on. stores in 18 countries under the names of CCC, eobuwie.pl and Voegele, while online sales are conducted in 14 countries through the CCC, In order to improve the quality of customer eobuwie.pl, DeeZee, and Voegele platforms. service and optimize the work, the CCC The above concept is introduced in sales room space is divided into functional new CCC stores, and these changes are zones: also made when relocating, enlarging Advertising is an important carrier of information or remodelling. It is also introduced on about products. The CCC Group strives to ensure • entrance, foreign markets, where CCC is present. that the marketing message is reliable, honest and • the centre of the sales room, At the end of 2018, the number of stores informative about product prices and promotion • counter, in the new space arrangement reached rules. In the case of sales and products at discount • service point (optional). 150 stores. prices, special attention is paid to the correct price and discount. Regardless of the functional zones, there is also a division into product sections in the sales room. In addition, there are detailed regulations A central aisle with linear lighting allows custom- for the sale. ers to pass through the space divided into sepa- rate „rooms” in the store. Such a system facilitates space organization and directing customers to In 2018, there were no cases of non-compliance the products they are looking for. The following with regulations and voluntary codes regarding exemplary sections are individually identified for marketing communication or the principles each store: of free competition and monopolistic practices in the CCC Group. • women’s footwear • men’s footwear • kids’ footwear • sports footwear • bags / handbags. 62 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 63
Responsibility issues adressed by
1. Searching for footwear | 2. First impression | 3. Sales and products | 4. Customer service | 5. After-sales service customers of csc in 2018 The scale of contacts with customers has increased significantly since the previous year. In 2018, the CSC | Reservations - accepted over 30,000 consumer notifications. questions about the process This is approximately 3 times more than the number | Product complaints of notifications in 2017 - 10.7 thousand. | Item availability 3. Sales and products 4. Customer service | CCC club - inquiries | others
The main product that customers buy in CCC Knowledge of the specific rules of conduct of All changes were aimed at improving the quality stores is footwear, which accounts for 83.47% employees in the store testifies to professionalism, of service, customer satisfaction and the ability of the sales structure. CCC offers both own and commitment and kindness. Developed Customer to direct adequate communication to callers. The foreign (sports) brands. Service Standards apply to all salespersons in CCC In any situation, regardless of the number new version of the Customer Service Office, apart stores. The uniform standards of conduct specified of customers and the tasks assigned, from the initial support for customers, has also are aimed at standardizing the personnel‘s behavi- the following rules must be observed to become an important support for stores since Sales structure in 2018 ours and ensuring maximum customer satisfaction ensure a high level of satisfaction with the June 2018 as part of the „Order online, collect at while shopping. atmosphere in the store and the assistance the store“ process. provided. These include the following
Category Share in sales While the concept of stationary sales in the CCC issues: Apart from the Customer Service Centre located
footwear 88,4% network is based on self-service, a store employee in Poland, in 2018 local offices were opened in the
bags 5,9% is at customer‘s disposal at any time and should • greeting and welcoming each client Czech Republic, Croatia, Slovenia, Slovakia and
cosmetics 1,4% initiate direct contact, if the customer expresses entering the store; Hungary. other 4,3% interest in buying or the need for help. • the customer always meets a smiling, TOTAL 100,00% courteous and helpful employee; Customer Service Offer receives 98% of calls +17.000 • the store is orderly, making it easier for initiated by customers. 9 out of 10 calling customers to make their choices; customers connect with a CSC employee in the the number of incoming calls The CCC sales network offer is democratic and • he salesperson is visible to all customers first 25 seconds. At the same time, thanks to from external customers targeted at the entire socioeconomic cross-sec- who may need assistance; the current operational activities and growing
tion of consumers. The perception of CCC varies • each customer who expresses competences of the BOK team, according to the age of the customers. +6.000 a need for help should be noticed the average time of the call with the customer was the number of outgoing calls by the staff; reduced from 476 seconds in the first quarter Therefore, in addition to a comprehensive offer, • each customer requesting assistance to 113 seconds in the fourth quarter. CCC introduces footwear for each of the target 12.000 must be serviced by the staff; groups in order to best fit the needs of various the number of responses to inquiries • making the customer leave the shop An important element of CSC‘s daily work is the age groups. sent by the form and e-mail with a positive impression support of the „Order online, collect at the store“ after the purchase. process. Still, for every 1000 orders placed, about 30 require the support of the Customer Service Price Price [PLN] CCC today [PLN] CCC Tomorrow Office. A similar number of contacts for every 1000 orders is also initiated by the customers 300 300 GINO ROSSI themselves ROBERTO SANTI AND OTHERS SPORTS At each stage of purchase, customers can use to inquire about certain issues. & STREETWEAR the support offered by the Customer Service LASOCKI BRANDED LASOCKI Office (CSC), which was reorganized in February An important element of CSC‘s work is the 200 # 200 # GO SOFT SPRANDI 1 1 2018. In addition to new telephone numbers and registration of all calls that were initiated to SPRANDI e-mail address, CCC has introduced advanced the Helpline and that could not be answered systems that allow for maximum personalization (too many calls in one time or calls out of JENNY FAIRY JENNY FAIRY CLARA BARSON CLARA BARSON 100 100 DEEZEE of customer contact, e.g. through the CSC‘s working hours). Each person making an BASSANO/VIA RAVIA BASSANO/VIA RAVIA functionality of assigning a „favourite“ agent, unsuccessful attempt to contact the Customer recognizing the customer by phone number, Service Office is called back by an employee at entering comments on preferences, and credible the earliest convenience or at the beginning of the
10 20 30 40 50 60 Target group 10 20 30 40 50 60 Target group measurement of indicators. following working day. [Age] [Age] 64 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 65
Responsibility Innovations Innovative (product and process) solutions 1. Searching for footwear | 2. First impression | 3. Sales and products | 4. Customer service | 5. After-sales service planned to be developed within the framework of R&D work include:
• Development of the Lasocki brand on In 2018, the Research and Development Centre began the basis of extending the life cycle of 5. After-sales service its operation. The vast majority of R&D works to be footwear, including health prevention; implemented are characterised by a potentially world- • Development of an authorial, custom- class level of innovation of products created as a result. made solution in the form of a sales Complaint of goods purchased in a offline store assistant - intelligent mobile robot; of the CCC network can be reported by the client • Creation of a knowledge-sharing platform in any offline store of the CCC network in Poland. The unit will deal with 4 research areas, 3 of which are / interaction design in the field of decision- According to the Act of 30 May 2014 „Consumer directly related to customers: making processes and customer needs; Rights Act“, the client should be informed about the complaint handling procedure applied by the • Research on the development of the CCC Group’s entrepreneur. Information on this subject has been product offer - development of the Lasocki brand made available on the website is provided directly (Comfort Line in particular) towards innovative by the sellers and posted on information leaflets products with a particular focus on health- for customers. The complaint forms also include a oriented solutions; provision informing about the possibility of using • The area of neuromarketing research – out-of-court methods of handling complaints and understanding customer needs – a model store asserting claims. (Customer Innovation Center); • The area of analytical research (CCC analytics).
As a result of the implementation of R&D works in the area of product innovation, solutions such as footwear with extended life cycle, innovative shoe constructions CCC S.A. consents to out-of-court settlement of and materials facilitating convalescence processes, consumer disputes, which aims to amicably end the constructions increasing the comfort and safety of use dispute between the customer and the seller. by people after injuries will be developed. The procedure, introduced by the Act on out-of-court settlement of consumer disputes, is aimed at faster, New product solutions are aimed at increasing often free of charge and much less formalized settle- the innovativeness of the Lasocki brand in terms ment of the case than in the proceedings before the of materials, construction, utility (especially in the common court. Independent experts, such as media- context of safety of use and consideration of health tors, help to reach an agreement. aspects) and even higher quality, as an expression of The esize.me scanner is able to capture our responsibility towards customers and their needs. an accurate 3D foot model, including Poles willingly use the possibility of amicable the length, width, height and girth of resolution of consumer disputes (ADR). Last year, For those who are afraid of online shopping, the foot. The 3D image and precise foot they submitted a total of 18,123 ADR applications. especially the mismatch of size, eobuwie.pl has dimensions are displayed on a touch- Most frequently they requested assistance in resolving implemented esize.me - an original system of foot screen device, where you can see the a dispute over a complaint about shoes and financial scanning in 3D technology. Thanks to this ground- detailed model and dimensions data. services.4 breaking technology, each customer can perform a The scanning process takes a few free foot scan in a few seconds, and the system will seconds and is free of charge In 2018, CCC, as one of three entities in Poland, recommend shoes matched to the individual shape received the title of Amicus Consumentium awarded of the customer‘s foot. The entire process is possible to companies that promote the idea of amicable dis- thanks to artificial intelligence. This scanner allows customers to choose the pute resolution. The title was established by the Office footwear that fits their footprint, resulting in fewer of Competition and Consumer Protection (UOKiK) to- returns, which translates into benefits for both the 4 http://polubowne.uokik.gov.pl/komunikaty,143,pl.html gether with the Senate Team for Consumer Protection. customer and the company itself. 66 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 67
Another advantage of this solution is the long lifetime of the technology, The environment up to 50 000 hours of LED lamp operation, and thus the lack of frequent replacement of lighting and less waste, which generates additional benefits.
Furthermore, LED lamps guarantee good quality light, so that both customers IIntensive development of the CCC stores and employees can feel comfortable in the store, as the technology does not network encourages paying close attention to strain the sight, is friendly to the human eye and does not produce harmful environmental issues, including taking concrete UV radiation. actions and developing a thoughtful, sustainable and economically justified approach to designing The changes implemented in the field of lighting allowed to reduce sales stores. the consumption of electricity. Works on new solutions to reduce power consumption by LED screens are also in progress. Modern technologies and screen management will allow for achieving measurable benefits linked As a result of work carried out by CCC, to the operation of screens. environmentally friendly solutions are implemented to the stores, which at the same time reduce the costs Detailed information on environmental activities was included in the of energy, maintenance or replacement of equipment, Environmental Protection Policy adopted in 2018, on the basis of which furnishings and marketing materials. the Environmental Strategy for 2019-2021 was implemented.
Work on the development of an optimal model for managing energy parameters in showrooms started Measures towards energy in 2018. This model was developed through a test efficiency in the stores measurement of all areas of electricity consumption in a designated group of model stores. This will allow locating energy loss areas and eliminate them in the Years Measure Saving future. 2019-2021 Further replacement of LED lighting with • 36,8 MWh / 1 store / year energy saving
more modern and less energy-consuming • 32310 kg / 1 store / year CO2 saving These actions are aimed at eliminating all unnecessary 2019 - 2021 Development and implementation of an • 32 MWh / 1 store / year energy saving optimal energy management model • 28096 kg / 1 store / year CO saving sources of energy consumption and stopping 2 all devices from operating in „stand by“ mode except for server circuits. Reducing the excessive number of consumption sources is to be ensured by The format of eobuwie.p offline stores allows to provide more services and implementing an optimized management model in meet customers‘ expectations faster (e.g. Same Day Delivery, reserve & try the stores and eliminating unnecessary receivers. on). As a result, the time of delivery to customers in agglomerations where The application of these solutions is expected to bring shops are located (from 24 hours to 3 hours) has also been shortened. results in the field of energy efficiency. In the following Deliveries are made using electric cars, which are characterized by low years, research on the test model will be continued. operating costs and are in line with the policy of sustainable use of resources. In 2018, works related to the elimination of metal- halide lighting, which started in 2015, were continued. The main advantage of changing the technology is optimal use of energy.
LED lamps do not generate thermal losses to the environment when converting energy into light, thereby not overloading the air-conditioning systems of the facility, while the metallohalogens used only half of the energy consumed, converting the rest into waste heat released to the environment. 68 CHAPTER III | CUSTOMER experience Non-financial Report of the CCC Group for year 2018 69
Further commitments
The year 2019 also includes further projects in the area of broadly understood customer service. Along with the development of Internet sales, CCC focuses on a more comprehensive customer service.
Therefore, in the coming months, intensive works will be carried out on:
• implementation of a tool for electronic communication with customers (chatbot), which will shorten the time of waiting for an answer regardless of the place of inquiry initiation (website, Facebook, mobile application). • implementation of tools to monitor customer satisfaction with the quality of products and service in CCC (CSC, shops). • development of tools supporting customers in obtaining feedback independently (shipment location, complaint status). • optimization of the complaint process. Employee Experience 72 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 73
Characteristics Employment Structure of CCC S.A. Number of employees Number of employees Number of employees Total number of employees 2018 (per person) by type of 2018 by gender and region: employment: Women Men Total Women Men Total CCC consistently builds the image of an attractive and permanent 3419 352 3771 full-time 3475 472 3947 employees desirable employer guided by its values, i.e. development, part-time 2507 98 2605 fixed-term 2563 218 2781 entrepreneurship, credibility and responsibility. The CCC employees Total 5982 570 6552 Group is keen for its employees to find their own path of Total 5982 570 6552 development and boldly go for more, discovering new Number of employees Number of employees and career opportunities. associates (per person) 2018 divided into: Women Men Total The CCC Group employs more than 15,000 people, Employment structure in employees under contract of 5 5 10 mandate including over 8500 people working in Poland, where the the CCC Group headquarters is located as well as the factory and the Logis- tics Centre in Polkowice and a chain of 466 CCC stores.
DeeZee Sp. z o.o. with its registered office Number of employees Number of employees Number of employees Total number of employees CCC S.A., which houses administrative, storage and sales in Kraków employs 44 people under 2018 (per person) by type of 2018 by gender and region: employment: premises, employs nearly 6600 people, a significant part of employment contracts. Women constitute Women Men Total Women Men Total
which are women employed in sales - 84%. . 63.6% of the employees. permanent 8793 1097 9890 full-time 7922 1521 9443 employees part-time 5848 333 6181 fixed-term 4977 757 5734 CCC.eu Sp. z o.o. employs 407 people, half of whom are Over 7,000 people work in subsidiaries employees Total 13770 1854 15624
women - 49%. operating abroad. Total 13770 1854 15624
CCC Factory Sp. z o.o., footwear manufacturing company, Number of employees Number of employees and employs 712 people - 79% of whom (i.e. 560 employees) associates (per person) 2018 divided into: are women. Women Men Total employed under 1215 229 1444 a contract of mandate All employees of CCC Factory are employed under em- employed under 1 0 1 ployment contracts, while in CCC S.A. and CCC.eu Sp. z a contract for specific work o.o. the indicator is nearly 100%. self-employed 1 6 7 supervised workers 63 104 167 and/or seasonal workers The company eobuwie.pl S.A. with its registered office in Total 1280 339 1619 Zielona Góra employs 627 people under employment con- tracts. The majority of the Company‘s employees are wo- men. Contracts of mandate were signed with 171 persons, 133 of whom are women.
The company eobuwie.pl Logistics Sp. z o.o. employs Jednostka Total number Number Percentage organizacyjna of senior of senior of senior 175 people, half of whom are women. 4.6% of all employees management management management work part-time. staff staff from the staff employed local market from the local market
CCC S.A. 4 4 100%
CCC.eu Sp. z o.o. 4 4 100%
CCC Shoes & Bags 2 2 100% Sp. z o.o.
eobuwie.pl S.A. 3 3 100%
eobuwie.pl 1 1 100% Logistics Sp. z o.o.
CCC Factory 1 1 100% Sp. z o.o.
DeeZee Sp. z o.o. 4 4 100%
Foreign 24 11 40% subsidiaries 74 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 75
Challenges Work satisfaction in CCC S.A. and CCC.eu Sp. z o.o., Responsibility in percentage and areas for improvement: 1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management /risks • overall job satisfaction – 81,5 • CCC as an employer – 80,5 • cooperation with the superior – 79,9 • working conditions – 78,9 1. Recruitment The presence of committed and competent • relations with co-workers – 77,3 employees determines the success of • incentive and bonus system – 73,6 the entire Group, hence CCC pays great • communication within the company – 71,8 In order to reach potential candidates with a job The objective of recruitment activities is to fill attention to strengthening its corporate • professional development – 71,5 offer, CCC uses a number of activities that go particular positions so that tasks assigned to them culture, communication, increasing job • organization of work – 65,7 beyond the standard recruitment advertisement, can be performed efficiently, as well as to acquire satisfaction and employee development. including establishing cooperation with employees with competences that will allow us to universities all over Poland, participation in „go for more“ together. job fairs, recruitment campaigns in social media, searching and contacting potential CCC focuses primarily on the internal development Currently, the CCC Group is facing typical candidates directly (direct search), use of mobile of its employees. Each recruitment process is first labor market risks, i.e. recruitment of applications for recruitment or cooperation with started internally and communicated to employees qualified employees and their retention in employment offices, local websites and of the sales network, warehouses and office the company. An additional aspect related to the press. administration. External recruitment starts when retail sales is the pressure on remuneration there are no persons meeting the job requirements and providing employees working in sales The Employee Referral Program was also launched among the staff. with working conditions stimulating them in 2018, as CCC strongly believes in its effective- to perform their professional duties with ness, commitment of our employees in recruitment The Company also promotes the education commitment. activities and rewarding them. In order to ensure of young people starting their professional careers. the best possible communication with candidates The internal internship program „I‘m going for CCC S.A. periodically conducts job in the recruitment processes in CCC, the Applicant more with CCC“ was prepared in order to attract satisfaction surveys in order to identify areas Tracking System (ATS) was introduced, which young, ambitious people who have the status of in which efforts aimed at improving the allows for efficient management of the recruitment a student / graduate and to build a positive image satisfaction and involvement of employees process starting from the creation of an advertise- of CCC as a reliable employer. should be intensified. Based on the results ment to the selection of the best candidate. obtained, action plans for continuous Building a positive image among future interns improvement of motivation are prepared. In 2018, the career website goformore.ccc.eu is the role of the Ambassador of the CCC brand. The last survey was conducted in 2017. The was also updated, allowing potential candidates Appointment of the Ambassadors of the CCC average satisfaction rate in nine different to easily find a job offer they are interested in, as brand is intended to establish cooperation areas was 76%. The highest score was found well as to get acquainted with the values that are between the academic community in selected for the area where overall job satisfaction is appreciated by employees in the CCC Group. cities in Poland and the HR Department. The aim measured (81,5 % satisfaction). The lowest of the project is to build a positive image of CCC score was found for work organization The recruitment policy is conducted on a non- as an attractive employer at selected universities. (65.7%). The challenge is to implement -discriminatory basis. The recruitment process activities in a manner that job satisfaction guarantees equal opportunities for participants CCC continues to collaborate with Employment increases alongside the expansion and and objective assessment of candidates through Offices all over Poland in organizing internships. development of the company. the use of appropriate selection tools tailored to In 2018, 154 applications for organizing internships the position. As a socially responsible company, for the unemployed were submitted to the store CCC is open to employing people with disabilities. structures, with 68 of them being approved. For more information, see the Diversity Manage- 9 internship applications were submitted to ment section. Polkowice headquarters, resulting in 7 interns starting cooperation. 76 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 77
CCC S.A. Newly hired employees Responsibility 1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health Number of Number Percentage of employees of newly newly hired 5. Competency development | 6. Diversity management (per person) hired employees Number of Number of Percentage Total number of employees employees employees newly hired of newly (per person) by age group: (per person) Total number of (per person) employees hired per group employees (per employees person) divided into: (per person) 2018 2018 <30 3110 3259 104,79% 2. AdaptaTion Women 5982 3812 63,72% 30-50 3215 946 29,42%
Men 570 457 80,18% >50 227 64 28,19%
Total 6552 4269 65,16% Total 6552 4269 65,16% In 2018, the new employee onboarding process in both administrative and store structures was standardized.
CCC S.A. EMPLOYEE DEPARTURES The project assumes that a newly-hired employ- ee remains in the structures much longer if the Number of Number of Percentage employees employee of employee (per person) departures departures onboarding process is carried out properly in the Total number of departures (per person) in Number of Number of Percentage (per person) by age group: the respective initial period of employment. Its aim is to shorten Total number of employee employees employee of employee age group (per person) departures departures the time for an employee to acquire full ability to departures (per person) (per person) 2018 divided into: perform their duties and to smoothly engage them 2018 <30 3110 3350 107,72% in collaboration with other employees. In order to Women 5982 4422 73,92% 30-50 3215 1343 41,77% minimize problems in the initial phase of employ- Men 570 379 66,49% >50 227 96 42,29% ment, employee adaptation programs have been Total 6552 4801 73,28% Total 6552 4789 73,09% developed.
As part of the process, the following programs were implemented: the onboarding program de- dicated to administrative structures - „Welcome to the team” and the „ACCCtion Adaptation” project The CCC GROUP Newly hired employees dedicated to store structures.
Number of Number Percentage of employees of newly newly hired An important element of each of them is to (per person) hired employees Number of Number of Percentage Total number of employees employees emphasize the responsibility of the superior for employees newly hired of newly (per person) by age group: (per person) Total number of (per person) employees hired per group each acquired employee. Properly personalized employees (per employees person) divided into: (per person) 2018 programs for each position are the key to the 2018 <30 7131 6096 85,49% success of effective employee onboarding. The onboarding process for office administration Women 13770 7750 56,30% 30-50 7363 2647 35,95% employees, apart from the training in their own area, Men 1854 1271 68,41% >50 1130 278 24,60% also assumes the participation of each new employee Total 15624 9021 57,74% Total 15624 9021 57,74% in the store training, where they learn about the key processes for the CCC business „from within“.
The effectiveness of the process is measured by analyzing the results of the „Stay Interview“ survey, THE ccc GROUP Employee departures conducted within approximately 2 months from the Number of Number of Percentage employees employee of employee date of employment. (per person) departures departures Total number of departures (per person) in Number of Number of Percentage (per person) by age group: the respective Total number of employee employees employee of employee age group The aim is to get to know the opinions and impres- (per person) departures departures departures (per person) (per person) 2018 divided into: sions of a new employee within the first months of 2018 <30 7131 6274 87,98% work. This is the moment when it is possible to verify Women 13770 8570 62,24% 30-50 7363 3132 42,54% whether and to what extent the arrangements made Men 1854 1141 61,54% >50 1130 417 36,90% during the recruitment process are, in the employee’s Total 15624 9711 62,15% Total 15624 9823 62,87% opinion, implemented. 78 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 79
Responsibility
1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management
3. Working environment
The Group has a multi-channel communication system, thanks to which employees are informed about ongoing changes and the Group‘s development plans. In addition, a job satisfaction survey is conducted once every two years, enabling the iden- tification of employees‘ needs and elimination of reported irregularities, which results in an increase of employee en- gagement and strengthening our market position.
An important step in the communication development within the company was the introduction of Intranet for CCC employees in 2018. The Intranet standardized communication with employees and became a focal point for the information exchange concer- ning various business areas. One of the Intranet components is a training platform where an e-learning series of training on sales and recruitment standards has been launched.
The business success of the company depends on the motiva- tion of employees and their engagement. In order to meet the challenges in this field, employees can benefit from a number of solutions: non-financial incentives include: training (on soft and hard skills, foreign language course), succession planning, employment stability. As part of financial incentive, the company offers additional bonus systems (e.g. sales bonus, performance bonus, attendance bonus), as well as other wage supplements (e.g. agglomeration bonus, internship bonus, jubilee bonus).
In order to ensure an attractive workplace, the employees of The CCC Factory Sp. z o.o. manufacturing company offers CCC S.A. and CCC.eu Sp. z o.o. are offered the following benefits: the employees its own benefits package, which includes:
• Unlimited, free access to private medical care for employees and their families in the LUXMED or • co-financing of commuting to work in the amount of 90% of incurred costs; Medicus network; • medical care provided on the premises of the factory - a nursing practice open daily • the possibility of joining group life insurance in the PZU Group; and the possibility of a medical visit twice a week; • Multisport package or OK System sports package; • twice a year, Christmas and Easter holiday packages; • co-financing for education; • subsidized holidays for children up to 80% of the costs; • discount cards for CCC stores and eobuwie.pl online store; • possibility to buy tickets to the aquapark in Polkowice at preferential prices. • prepaid cards for holidays; • English language course for office administration employees; • tickets to sport games (e.g. basketball matches). 80 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 81
Responsibility
1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management
CCC Factory Sp. z o.o. is also friendly for women and families - work takes place from Monday to Friday, while Saturdays and Sundays are free. The work is organized in a two-shift system, without night shifts. Benefits offered to employees of eobuwie.pl Working hours of shifts are set as in companies include: the other companies in the LSEZ, so that employees can use transport with employees from other companies • Multisport cards, which may be granted for a token monthly fee. in the zone. Employees’ working Employees can also buy cards for members of their families time is planned in such a way as to • Luxmed private medical care for employees and their families enable them to enjoy the so-called • life insurance long weekends. Each year, during the • discount cards for CCC stores and eobuwie.pl online store summer holidays, when all production • co-financing for English language courses as part of a course is stopped, employees take a 4-week offered at the company’s premises holiday leave - this facilitates the orga- nization of childcare during holidays, and employees can use their holidays Company of the the ratio of WOM- the ratio of MEN’S Foreign the ratio of WOM- the ratio of MEN’S in a period that is attractive to them. CCC Group EN’S remuneration remuneration at subsidiaries EN’S remuneration remuneration at at lower employ- lower employ- at lower employ- lower employment ment levels to the ment levels to the ment levels to the levels to the mini- minimum wage minimum wage minimum wage mum wage In CCC Factory, in addition to con- CCC S.A. 1,43 1,51 Austria 1,38 1,82 stant access to the assistance of CCC.eu Sp. z o.o. 1,33 1,55 Bulgaria 1,57 1,57 a nurse and a doctor, every year a CCC Factory Sp. z o.o. 1,25 1,2 Croatia 1,22 1,22 Medical Action is organized. Within eobuwie.pl S.A. 1,39 1,37 Czech Republic 1,24 1,24 its framework, employees may use eobuwie.pl Logistics Sp. z o.o. 1,52 1,6 Germany 1,17 1,21 specialist medical examinations. The DeeZee Sp. z o.o. 1,32 1,43 Hungary 1,01 1,01 examinations include: blood screening DeeZee Sp. z o.o. 4 4 Switzerland* 1,04 1,04 analysis, within the framework of Romania 1,08 1,05
which cancer antigens 125 (ovarian Russia 1,59 1,42
cancer) and PSA (prostate cancer) as Serbia 1,44 1,44
well as breast, thyroid and abdominal Slovakia 1,32 1,32
USG are screened. The offered me- Slovenia 1,00 1,00
dical examination package is altered *The statutory minimum wage does not apply in Switzerland. each year. The calculations are based on the recommendations of the “Schuhschweiz”.
Over 80% of CCC Factory employees benefited from the Medical Action in 2018. 82 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 83
Responsibility
1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management
4. Occupational Safety Total number of days of incapacity for work and Health due to work-related accidents (LDR)** / Lost Day Rate (LDR)
Ensuring health and safety at work is one of the Jednostka organizacyjna Kobiety Mężczyźni Ogółem CCC Group‘s priorities. The investments made CCC S.A. 3,07 13,92 3,87 allow employees to work in modern facilities. In CCC.eu Sp. z o.o 0 0 0 addition, regular measures are taken against the CCC Factory 205,7 113,2 186 eobuwie.pl S.A. 6,98 0 6,98 reported needs to improve safety. eobuwie.pl Logistics Sp. z o.o. 23,44 9,65 33,1
DeeZee Sp. z o.o. 0 0 0 All workstations in the CCC Group meet the OHS and fire safety standards. The number of work- related accidents is marginal for the entire Group. Accident severity rate***
Jednostka organizacyjna Kobiety Mężczyźni Ogółem
CCC S.A. 27,3 69 32,5
CCC.eu Sp. z o.o 0 0 0
CCC Factory 72 10,75 41,37
eobuwie.pl S.A. 10 0 10 Number of work-related accidents eobuwie.pl Logistics Sp. z o.o. 11,33 7 9,6
DeeZee Sp. z o.o. 0 0 0 Jednostka organizacyjna Kobiety Mężczyźni Ogółem
CCC S.A. 7 1 8
CCC.eu Sp. z o.o 0 0 0 Absenteeism rate (AR)**** The total number of all accidents in 2018 Due to the nature of the production, in the CCC CCC Factory 4 4 8 amounted to 24, of which 8 took place in CCC Factory solely 33 employees are exposed to work eobuwie.pl S.A. 3 0 3 Jednostka organizacyjna Kobiety Mężczyźni Ogółem S.A., the remaining 8 in CCC Factory and 8 in in conditions of increased noise and 24 to the eobuwie.pl Logistics Sp. z o.o. 3 2 5 CCC S.A. 4,06 1,88 3,88 eobuwie.pl and eobuwie.pl Logistics. All of them risk of vibration. In order to minimize the risk of DeeZee Sp. z o.o. 0 0 0 CCC.eu Sp. z o.o 4,31 1,49 2,86 were of minor nature. occurrence of particular occupational diseases, CCC Factory 5,12 2,8 4,62 a Program of organizational and technical eobuwie.pl S.A. 5,06 5,63 5,21 Incident Frequency Rate (IR)* No fatal accident was recorded and the severity measures aimed at limiting the exposure to noise eobuwie.pl Logistics Sp. z o.o. 8,31 3,16 4,78 of events that took place in 2018 was low in the and mechanical vibrations of employees of CCC DeeZee Sp. z o.o. 1,15 1,36 1,23 Jednostka organizacyjna Kobiety Mężczyźni Ogółem entire Group, both among women and men. Factory sp. z o.o. in Polkowice was developed. CCC S.A. 1,13 2,02 1,19
CCC.eu Sp. z o.o 0 0 0 Occupational disease In CCC S.A., CCC.eu Sp. z o.o. and CCC Factory In 2018, the Health and Safety and Fire CCC Factory 14,3 52,6 22,5 detection rate (ODR)***** Sp. z o.o. there are Health and Safety Committees, Protection Department organized numerous eobuwie.pl S.A. 6,67 0 4,71 which examine, for instance, issues in the field of exercises in the field of practical verification eobuwie.pl Logistics Sp. z o.o. 11,2 7,4 18,65 Jednostka organizacyjna Kobiety Mężczyźni Ogółem technical safety at work. Their tasks also include of evacuation organization and evacuation DeeZee Sp. z o.o. 0 0 0 CCC S.A. 0 0 0 the development of preventive measures and conditions. The exercises were carried out CCC.eu Sp. z o.o 0 0 0 solutions to improve working conditions. H&S in several CCC facilities located in the LSEZ * IR, calculated as the number of persons injured to the number of employees CCC Factory 0 0 0 Committees are made up of 5 persons each, their in Polkowice. In total, nearly 350 people ** LDR, calculated as an indicator of the total number of days lost to the number of eobuwie.pl S.A. 0 0 0 planned working hours member is also a doctor appointed by the entity practised the scenario of a trial evacuation. eobuwie.pl Logistics Sp. z o.o. 0 0 0 *** Accident severity rate, calculated as the number of days of inability to work due to that the company has an agreement with for the The exercises took place with the participation an accident to the number of accidents DeeZee Sp. z o.o. 0 0 0 provision of medical services. of the National Fire Service from Polkowice. **** AR, calculated as the total number of hours of absence due to sick leave or sick- ness and accidents at work to the number of planned working hours of employees
*****ODR, calculated as the number of cases of occupational disease to the total number of hours worked by all employees 84 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 85
Responsibility Number of training hours per employee 1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management Total number of training hours Total number of training hours by gender by gender
CCC S.A. 2018 CCC Group 2018
Women Men Total Women Men Total 5. Competency development Total number 15195 1333 16528 Total number 61454 9768 71222 of training hours of training hours by gender by gender
Number of employees 5982 570 6552 Number of employees 13770 1854 15624 (values identical to GRI (values identical to GRI The primary objective of the development policy 102-8 data) 102-8 data)
is to strengthen the competences of employees, Average number 2,54 2,34 2,52 Average number 4,46 5,26 4,56 of training hours of training hours the process of knowledge sharing and linking by gender by gender training activities to specific business needs,
as well as to bridge the competence gaps Total number Total number Average num- Total number Total number Average num- of employees of training ber of training of employees of training ber of training among employees in all areas of the company‘s CCC S.A. by employ- hours by hours by CCC Group by employ- hours by hours by ment structure employment employment ment structure employment employment operations. structure structure structure structure
Employment structure 2018 Employment structure 2018
Employees constantly improve their competences Executives 72 1315 17,77 Executives 346 6823,97 19,72 and benefit from development programs through Administrative staff 248 6927 27,82 Administrative staff 1251 16580,01 13,25 participation in training, conferences, symposium, Warehouse employees 791 3650 4,60 Warehouse employees 1098 4662,51 4,22 seminars, workshops and studies financed or Sales network employees 5441 3594 0,66 Sales network employees 12351 44938,5 3,66 co-financed by the employer. In 2018 The CCC Production employees 578 144,5 0,25 S.A. Capital Group also benefited from training subsidized by the National Training Fund. Within the framework of the project, subsidies for the organization of 200 hours of didactic training were obtained, with 82 employees taking part in them. As part of the training, the employees gained new or expanded their existing skills in the following ar- eas: design, accounting and taxation, legal aspects of complaints; currency risk management, settle- ment of business trips, operation of machinery and equipment, material science.
Additionally, in response to the need to improve Support in competence development is soft skills, an internal training project „Let‘s CCCo- based on the 60:40 Development model: operate effectively“ was launched. It is carried out in the form of workshops run by internal trainers. • 60% - On the job development - The scope covers the development of soft compe- participation in projects, job rotation, tences such as: cooperation, communication and management by objectives and feedback. In 2018, a total of 202 employees were coaching&mentoring; trained as part of the project, during 25 training • 40% - Formal development - training sessions. workshops (internal and external), language courses, e-learning. Due to the high opinion of the participants, the project will be further developed in 2019 and extended by new areas of competence. 86 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 87
SyResponsibilitystem OCEN OKRESOWYCH Collaboration with 1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health universities 5. Competency development | 6. Diversity management For many years CCC has been actively cooperating with universities in order to effectively implement the internship The periodical appraisal system program „I‘m going for more with CCC“. HIGH A the po- in the CCC S.A. Capital Group is tential for The program was developed to establish promo- 1A 2A dedicated to personnel employed tion is 3A cooperation with ambitious, young people. New in Increasing star con- Top talent in administrative, office, store and firmed the role (1-2 years) The programme assumes entering into warehouse positions permanent cooperation in the form of an employment contract. AVER- B AGE The main objective of the periodical the po- CCC regularly participates in academic life tential for 1B 2B 3B promo- Potential A reliable Highly appraisal is to raise employees’ aware- tion is through dedicated lectures given by CCC CG endangered specialist effective ness of their strengths and weaknesses, provable employees, post-graduate studies, internships thereby strengthening positive areas for students and thematic workshops.
and reducing competence gaps. In LOW C Companies from the Group cooperate the this way, it is possible to increase the potential 3C with student organizations by effectively is fully 2C Recommended effectiveness and quality of actions achieved 1C supporting selected projects dedicated to Increasing specialist / personal aspirations / willingness to develop / willingness to aspirations personal Ineffective taken by employees to achieve the ob- / promotion to learning / ability - fast potencjał specialist key students. knowledge jectives, as well as the implementation of a development plan which defines CCC also participates in fairs and industry 1 2 3 the specific actions and stages of their events. It has won numerous awards, including implementation. those which confirm its effectiveness as an below according to above the expectations expectations expectations attractive employer. Employee appraisal is carried out in competence / qualifications / In March 2018, the third edition of post- accordance with the „9 boxes” princi- skills / achievement of goals graduate studies was launched, this time ple, the aim of which is to build a link under the name „Management of Sales between the effectiveness and potential Development and Foreign Expansion“. The of employees. vertical / horizontal monitoring the monitoring the revision studies are a joint project realized by Wrocław horizontal promotion development of development of (release/chance) promotion competences potential University of Economics and the CCC Capital Group. This innovative project was addressed to people starting their professional life, as Succession planning in the subor- well as to those who were interested in an dinate area is the responsibility of international career. each manager. In 2018, the CCC Group did not conduct Furthermore, in 2018 the Company a formal employee appraisal process. The conducted an educational project in In 2019, the successors will take part in appraisal is conducted every two years and cooperation with the Witelon State University the development program, which will therefore the next one is scheduled for 2019. of Applied Sciences in Legnica and Oracle include participation in Development and Accenture companies. The project Center sessions and building individual included a series of meetings with lecturers- development paths for employees. practitioners and included classes in the area of IT, innovation, technology and solutions In order to ensure constant develop- for sales, and was concluded by student ment of the managerial staff and ef- internships in the company. fective use of their potential, a series of coaching sessions has been scheduled for them. 88 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 89
Responsibility THE CCC GROUP CCC S.A. 1. Recruitment | 2. Adaptation | 3. Working environment | 4. Occupational Safety and Health 5. Competency development | 6. Diversity management
Percentage of employees Total per- Percentage of employees Total per- in each category in 2018 in centage of in each category in 2018 in centage of Employees by age relation to the total number of employees Employees by age relation to the total number of employees and diversity employees in the organization in each and diversity employees in the organization in each group group Women Men in 2018 Women Men in 2018
<30 years of age 39,60% 6,40% 45,99% <30 years of age 42,45% 5,02% 47,47% 6. Diversity management 30-50 years of age 42,17% 4,85% 47,02% 30-50 years of age 45,53% 3,54% 49,07% >50 years of age 6,54% 0,61% 7,16% >50 years of age 3,30% 0,17% 3,47%
Total % by gender 88,3% 11,9% 100,0% Total % by gender 91,3% 8,75% 100,00% The diversity policy of the CCC Group The CCC Group emphasizes its openness to the Foreigners 11,65% 1,96% 13,6% Foreigners 0,24% 0,56% 0,80% is implemented in the following ways: employment of people with disabilities, as well as making every effort to support employees with Percentage of employees in each age Total per- Percentage of employees in each age Total per- Employees accord- group in 2018 in relation to the total num- centage of Employees accord- group in 2018 in relation to the total num- centage of ber of employees in the organization employees ber of employees in the organization employees 1. in the area of primary identity (race, disabilities and strengthen internal integration. ing to employment in each ing to employment in each structure <30 years 30-50 ye- >50 years group structure <30 years 30-50 ye- >50 years group nationality, ethnic group, gender, of age ars of age of age in 2018 of age ars of age of age in 2018
age, sexual orientation, disability) As of 31/12/2018, the employees with disabilities Executives 0,28% 1,71% 0,32% 2,31% Executives 0,02% 1,05% 0,06% 1,13%
the company: employed by the Group constituted approx. Administrative 3,24% 4,39% 0,46% 8,09% Administrative 1,04% 2,58% 0,17% 3,79% • creates diverse teams in terms of gender 5,11% of all employees. The majority of disabled staff staff Warehouse 3,14% 3,43% 0,48% 7,05% Warehouse 5,39% 6,19% 0,49% 12,07% and age, which enables a broader employees are employed in Poland and constitute employees employees
perspective in the problem-solving about 69,8% of all disabled persons employed in Sales network 38,82% 34,87% 5,25% 78,94% Sales network 41,03% 39,23% 2,75% 83,01% process, a better working atmosphere, the CCC Group. employees employees Production 0,58% 2,22% 0,90% 3,70% higher team creativity and the possibility of employees Percentage of employees in each Total per- knowledge transfer; Companies with the highest percentage of category in 2018 in relation to the centage of Employees according to total number of employees in the employees • promotes behaviors that respect employment of people with disabilities: Percentage of employees in each Total per- employment structure organization in each category in 2018 in relation to the centage of group diversity and support charity CCC Factory Sp. z o.o. – 6,88%, Employees according to total number of employees in the employees Women Men in 2018 employment structure organization in each initiatives; CCC Hungary Kft. – 6%, group Executives 0,56% 0,56% 1,13% Women Men in 2018 Administrative staff 3,01% 0,78% 3,79% • provides training for executives and CCC S.A. – 5,78%, Executives 1,31% 0,91% 2,22% Warehouse employees 7,20% 4,87% 12,07% their teams in working with people with CCC Slovakia sro – 5,22%. Administrative staff 5,37% 2,62% 7,99% Sales network employees 80,52% 2,49% 83,01% disabilities; Warehouse employees 4,12% 2,93% 7,1%
• supports the work-life balance through: Due to the high employment rate of people with Sales network employees 74,40% 4,81% 79,25% The % breakdown for each Total percent- Composition of the Supervisory category in 2018 age of each the possibility of early exit from work in disabilities, the CCC Factory Sp. z o.o. has been Production employees 3,08% 0,61% 3,70% Board by age and diversity group in the SB family emergencies and trouble-free leave exempt from payments to PFRON (State Fund of Women Men in 2018 in emergencies; Rehabilitation for Disabled People) since 2016. <30 years of age 0,0% 0,0% 0,0% • actively counteracts discrimination and 30-50 years of age 0,0% 40,0% 40,0% harassment in the workplace. At present, mainly local measures are undertaken, In 2018, the company continued its >50 years of age 0,0% 60,0% 60,0% Total % by gender 0,0% 100,0% 100,0% depending on the needs and situation, including: program, thanks to which the people 2. in the area of secondary and organizational • cooperation with Employment Offices (e.g. with hearing loss and deafness became Composition of the Man- The % breakdown for each Total percent- identity (level of education, place of residence, publication of job advertisements with the employees of CCC stores. category in 2018 age of each agement Board by age and group in the family status, work experience, job position, ON (persons with disabilities) mark and infor- diversity Women Men MB in 2018 sector, etc.) the company: mation that the job offer is addressed to such The CCC S.A. CG deliberately met the <30 years of age 0,0% 0,0% 0,0% • builds an organizational culture based on persons); expectations of deaf people by offering 30-50 years of age 0,0% 50,0% 50,0% the values of the CCC S.A. CG; • cooperation with local foundations, e.g. them employment in CCC Group stores, >50 years of age 0,0% 50,0% 50,0% • ensures equality in terms of access to ɰɰ the Aktywizacja Foundation - Bydgoszcz thus breaking the communication barrier. Total % by gender 0,0% 100,0% 100,0% promotions and training; Branch, After conducting training for the store • ensures equal access to the benefit system ɰɰ Wielkopolskie Forum Organizacji Osób teams, a number of persons were employed, (including the bonus system) within the job z Niepełnosprawnościami Foundation some of whom are still employed today, groups. (Greater Poland Forum of Organizations of e.g. in the flagship CCC store in Wars Sawa Collective labor agreements People with Disabilities), Junior department store in Warsaw. These were not adopted in the CCC ɰɰ the AKME foundation in Szamotuły, employees are distinguished by characteristic Group companies. ɰɰ and other that support the employment of information on shirts. people with disabilities. 90 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 91
Innovations The environment
From 2018, employees can actively participate in the One of the measures carried out in 2018 was implementation of innovative solutions in the company INNOVATION DAY the implementation of electronic document thanks to the „Innovation Action“. flow. On the one hand, this measure was aimed at improving office processes, but on the other In 2018, the employees also had the hand, at making employees aware of the envi- It is a competition in which, using the Ideas opportunity to take part in the Innovation ronmental benefits associated with it. Box on the Intranet, it is possible to submit Day organized on the premises of the CCC innovative projects improving everyday work Research and Development Center. within 8 categories: Each year, employees receive compensated The idea was to familiarize employees with knowledge about taking actions in their • our Employees; interesting solutions and stimulate them workplace that would result in environmental • our Client; to innovate in their daily duties through benefits. • our Logistics; access to expert knowledge, passion and • our IT; creativity that are typical for start-ups. It is The company provides its employees with collec- • our products; also an incentive to ask questions and try to tive transport, thanks to which the number of cars • our stores; experiment. is limited and the use of other means of transport is • other Departments; promoted, e.g. by providing bicycle parking stands • any other business. During the Innovation Day, the companies on the premises of CCC facilities. Employees also selected in the Retail aCCCelerator voluntarily undertake environmental actions, e.g. program as well as other start-ups through commuting together with private cars. presented their ideas. The area of The competition will be continued and held presentation and discussion included, inter One of the objectives of the adopted periodically at quarterly intervals. Each round of the alia, new solutions in retail, data collection, Environmental Strategy is also the implementation competition will see the implementation of the 10 best activities to support work organization. of a series of training courses for employees deal- ideas and prizes for the winners. ing with such issues as conscious and responsible consumption, waste segregation and recycling, In 2018, 193 ideas were submitted, 10 of which were limiting waste production or reducing energy selected (9 awarded employees). and water consumption.
The implemented ideas are related to, e.g. improvements in the store system, improvement of communication among employees, new solutions in the CCC loyalty program. 92 CHAPTER IV | EMPLOYEE experience Non-financial Report of the CCC Group for year 2018 93
Further commitments
Implementing the personnel policy assumptions, in 2019 CCC will continually support the development of the competences of its employees through development programs, projects and trainings, including dedicated activities for the sales network. The goal of the CCC Group is to strengthen the position of CCC on the market as a reliable and attractive employer, therefore one of the challenges will be to further implement the Employer Branding strategy, thanks to which the Group employs the best candidates ready to go with CCC for more. Continuously caring for employees‘ satisfaction, activities will also be focused on continuous improvement of processes to influence work efficiency, build commitment and motivation, and at the same time maintain the role of business partner for the organization.
In the near future, the CCC Group plans to implement a comprehensive approach to diversity management, starting with the adoption of a diversity policy, which hitherto has been an element of other documents, such as the HR Policy, the Recruitment Procedure, the Code of Ethics.
In 2019, it is to become binding in the form of a separate document, which will comprehensively define the approach to diversity and the most important aspects related to it.
In 2019, the company intends to further address the needs of students and will cooperate with student organizations, including the Business Education Forum at the Wrocław University of Economics. The purpose of cooperation with student organizations is to conduct Employer Branding and PR activities and to establish contacts with future potential employees of CCC. Moreover, the company is well aware that cooperation with universities from the local market is another important aspect. This year the company planned to launch a series of workshops under the CCC brand, which will be followed by paid internships for the best students. Community Experience 96 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 97
Characteristics Responsibility
1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport 4. Global activity CCC wants to share its success, have a positive impact on its immediate social environment, demonstrate opportunities and support local development. 1. Employee volunteering Under the grant program, projects can be submitted in the following areas: Thanks to the fact that CCC operates in 23 markets, An important part of the CSR Strategy is the establish- it can be influential in a larger scale, implementing ment of an employee volunteering scheme, which CCC • Helping people in need, especially the CSR strategy throughout the CCC Group. intends to successively develop. Participation in vol- children and the youth, Correspondingly to the scope of its activity, CCC unteering initiatives is an opportunity for CCC - and its • Support for people with disabilities, engages in projects for local communities near employees to prove themselves in a new situation, an • Environmental protection activities, Polkowice, where its headquarters are located, opportunity to acquire new skills to be used in every- • Promoting a healthy lifestyle nationwide charity actions and global help for day work and an element of integration with other asso- and physical activity, the most needy. ciates or the local community, since a well-functioning enterprise is based on a well-coordinated team. Social engagement is a significant area of CCC activity. In 2018, the Company responded to stakeholders‘ CCC supports the commitment of its employees to 5. Project implementation expectations from the dialogue session by improving local initiatives. In 2018, a grant program dedicated communication and presenting forms of implementing to administrative and office employees and sales actions for sustainable development. outlets in Poland was launched. The main objective of introducing volunteering in the CCC Group is the integration of employees around common values and the involvement of as many employees as possible. Thanks to this, CCC volunteers can support local 4. Receiving communities, create a positive corporate image and the grant Challenges/risks improve their competences. award decision
It certainly is a challenge for CCC to enter into valuable intersectoral partnerships and to direct assistance to those who need it most. CCC deals with numerous requests for help and cooperation, in 5 steps to help supporting and engaging in activities that are in line with the grant The grant contest is held twice a year, the spring/ with the Group‘s objectives and values. program 3. Submitting a request on the summer edition and the autumn/winter edition. Detailed information is Another challenge for the Group is to strengthen the provided via employee involvement of employees in volunteering projects 2. Forming a team Intranet and e-mailing. and to raise their awareness of local communities‘ of at least 3 CCC employees needs. CCC supports its employees in reporting Grant contests Edition I/2018 Edition II/2018 their own grassroots initiatives and implementation Number of applications submitted 13 4 of these. The risks that remain include lack of interest Number of grants awarded 5 3
on the part of employees, local communities and Number of localities 5 3 discrepancies between the objectives set by CCC and 1. Finding an Number of CCC volunteers 21 projects are the needs and proposals of volunteers. This may lead currently Number of hours worked as part 268 in realisation institution or of volunteering to a reduction in the number of employees engaging organization in social programs. Number of beneficiaries 562 98 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 99
Responsibility 3. SKILL UP COMPETENCE RELAY
1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport As part of the grant, theatre workshops were held for 12 4. Global activity junior high school students participating in the „Projekt Mokotów” Foundation project, which is addressed to children coming from smaller and medium-sized towns or from less affluent families whose parents or custodians Projects implemented within the framework do not have the means, opportunities or time to support of the grant programme in Edition I/2018: their children in their education and development. The workshops took place in the Słupsk Cultural Centre, which cooperates with the local theatre – „Rondo”. During the series of workshops the play „Career of the 1. REVITALIZATION OF THE „OSTOJA PRZYRODY” villain” was prepared. PARK AT THE PRIMARY SCHOOL IN STRACHOCIN The project carried out by CCC volunteers covered 2 elements: Clean-up and maintenance works in the Ostoja Przyrody Park, during which plant care works were made, new vegetation was planted and elements of small architecture in the park were waterproofed. The second stage was the organization of the Family Festival, which aimed at promoting CCC and the school as institutions actively supporting environmental protection. It was an enormous satisfaction to observe the involvement of primary school children in the work of volunteers. Thanks to this, the park gained a new quality, but also the children raised their knowledge and awareness in the field of environmental protection.
4. REVITALIZATION OF THE GARDEN NEAR THE MUNICIPAL KINDERGARTEN IN ŁÓDŹ CCC volunteers decided to turn the grey, unattractive garden near the Kindergarten into a colourful and 2. OPEN UP TO AUTISM pleasant place to play and rest for children and their The „Open Up to Autism” grant program organized carers. The kindergarten is located in the city centre, in order to increase public awareness of autism. CCC therefore each additional planted shrub and plant volunteers from Gdańsk organized an „Open Day”, (especially in the area surrounding children) affects during which a fundraising for therapeutic classes not only the aesthetics, but also the air quality. As part for 7-year-old Julia was carried out. of the project, the volunteers undertook the following tasks: planting more than 60 shrubs, installing 2 city Our employees prepared perfectly for the event, benches, sowing a new lawn, installing a bird feeder. first by talking to Julia’s mother about the needs and necessary therapies. Among other things, a photo shoot of the girl was organised (the photos 5. CHILDREN’S DAY IN NOWA HUTA were then put up for auction, which took place As part of the event, CCC volunteers participated in three during the Open Days), a charity candy shop, a chil- stages of the „Ukryte Skrzydła” Foundation work - they dren’s corner and an educational corner dedicated took part in the design, preparation and organization of to disorders of autism spectrum. The employees integration games for children and teenagers. They were genuinely put their hearts into organizing the event carried out during the „Magiczny czas...” festival, which and encouraging as many people to participate as took place on 1 June 2018. The event was held on 1 June possible (including preparing information brochu- 2018 outside the Ludowy Theatre in Nowa Huta in Kra- res, sending out invitations, hanging up posters). ków. During the Children’s Day we managed to provide various attractions for over 300 people. 100 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 101
Responsibility VOLUNTEERING ABROAD 1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport 4. Global activity The employees of the CCC Czech subsidiary focused on three areas of charity. The employees of the head CCC is proud of the involvement of its employees not only in volunteering, office in Prague, as every year, supported children from but also in widely understood social initiatives. the Kangurek orphanage, run by an organization for children at risk. The employees of the stores organized a fundraising campaign for Kangurek in Litoměřice, „WOŚP” – THE GOCCC a small town in northern Czech Republic, where chari- FOUNDATION „NOBLE GIFT“ „THE GIFT OF A GOOD HEART” ties and sponsorship are even more difficult to find. Children from this orphanage had a huge, unfulfilled dream - equipment for playing table tennis. Stores • CCC employees also actively • In December, CCC employees • Each year before Christmas, from across the Czech Republic teamed together and participate in other voluntary joined in the preparation of employees of the Sales Division raised an impressive amount of money for which it was activities. In 2018, they donated the Noble Gift for selected organize „The Gift of a Good He- possible not only to buy a table tennis table, but also to items for auction in the Polkowice families. For one of them, art” campaign. In 2018, thanks to provide a stay in a sanatorium for children in need. CCC headquarters of the Great the Investment Department the money raised, it was possible additionally joined as a donor and each of the children Orchestra of Christmas Charity. undertook to renovate the flat, to buy a steam iron, a carpet or could choose shoes for themselves. The Management Board of the even though it was not on the clothes for the children from the Company also donated one of the list of needs. Over 100 parcels orphanage in Mroczków Gościnny. Stores in North Moravia also initiated their project, CCC city bicycles on the GOCCC included necessities requested which they called „Heart on the sleeve”. They sup- auction platform. The bicycle was by families as well as Christmas ported an animal shelter in Olomouc with funds raised used by the ambassadors of CCC, gifts. Traditionally, all packages and additionally donated canned and dry pet food, who, spreading positive energy, contained shoes, which were „CHARITY IS NOT FATTENING“ treats for pets, towels, toys and many other things for travelled through Polish cities in contributed by CCC. abandoned animals. order to promote the CCC brand and the opening of new sales • One of the actions organized in CCC Slovakia repeated last year’s successful fundrais- stores. the Company was the „Charity is ing for children and their mothers in a difficult life situ- not fattening” action, during which ation, associated in the „Szansa” („Chance”) organiza- employees brought cakes and the tion. On Mother’s Day and Children’s Day mothers and donations for them were handed children were invited to our stores, where they could over to a colleague from the IT choose shoes according to their needs. Employees Department for medical treatment. of Slovak stores additionally organized collections of clothes, sweets, books and toys.
EMBLEM OF CCC VOLUNTEERS
The emblem that accompanies our volunteers was designed by an employee of one of CCC stores in Szczecin - Aneta, as part of the contest organized by the Company for the logo of the CCC volunteering.
In order to familiarize volunteers with employee activities and initiatives, the Company created a Facebook profile and regularly publishes information on the employee intranet. 102 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 103
Responsibility COOPERATION WITH PARTNERS 1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport 4. Global activity
Association for Children Legnica Special CSR Fair and Young People Economic Zone 2. Partnerships and support „CHANCE“ based in Głogów for local communities In April 2018, the CSR Fair was CCC, besides being a member of the held - an event organised by the In 2018, one of the organizations that Educational Cluster of the Legnica Responsible Business Forum, which IN-KIND AND FINANCIAL DONATIONS received support from CCC was the Special Economic Zone, is also annually attracts about 70 exhibitors In 2018, the Company, following its CSR Association for Children and Young involved in joint projects of the LSEZ. and 2000 visitors. This year’s Fair was The basic form of financial support of CCC for local strategy and designated directions of People CHANCE in Głogów, involved In 2018, together with the LSEZ, held under the banner of „Business communities are grants awarded by our volunteers assistance, provided donations in the in working for the benefit of children, it participated in the Bike Marathon, in cooperation”, thus for CCC as an within the framework of grant contests. CCC also very following forms: young people and their families. Last during which, in a specially prepared exhibitor it was a perfect opportunity frequently supports various institutions and organiza- year, the Association launched a Chil- zone, one could actively spend time to acquaint the visitors not only with tions, as well as individuals directly through donations financial donations, e.g. to: dren’s Aid Centre (CPD). This is one with their families and take part in the the principles of cooperation with of footwear, which is particularly important in autumn- • Association for the Development of the of four such places in Poland where competition. NGOs and current partners, but also -winter season. In 2018 nearly 1500 pairs of shoes Witelon State University of Applied Sciences a child, together with parents and https://facebook.com/ to exchange experiences with other were donated. In various unforeseen circumstances or in Legnica, known as the „Academic carers, will receive comprehensive as- LSSElegnica/videos/ CSR experts. in support of the activities of non-governmental orga- Community”; sistance, as well as an interdisciplinary 1839196496162975/ nizations (NGOs), it is possible to provide the stakehol- • Charity Association „Żyć Godnie” diagnosis and intervention. The CPD ders with a financial donation. The terms of providing based in Polkowice; has a hearing room where children Partnership for the
assistance in such cases will be regulated in the Policy • Association for Children and Young People can be questioned by the court in Participation in conferences implementation of SDGs of granting material and financial donations by CCC „CHANCE” based in Głogów; friendly and safe conditions. CPD is a S.A., which will be officially implemented in 2019. place for children who suffered vio- in-kind donations, e.g. lence, were sexually abused, for those CCC representatives were also The CCC Group joined the for the benefit of: in acute crisis, manifesting suicidal actively involved in nationwide partnership for the implementation • Educational Care Center Group behaviors or for children engaged in conferences covering CSR issues. of the UN Sustainable Development in Bielsko-Biała; legal procedures. Goals (SDGs) during the „National • Educational Care Center Group in Strzelin; In 2018, these included, inter alia.: Agenda Forum 2030 Agenda”. • The Patriotic Association „Kresy” CCC started permanent cooperation • Responsible business - CCC transferred an individual As part of a joint initiative with AmRest volunteers, in Częstochowa; with SZANSA. Apart from being Chil- Responsible development. commitment in which it confirms the 100 pairs of footwear were donated for the homeless • The „Hobbit” Foundation based in Wrocław; dren’s Aid Center, SZANSA is a space Due diligence in supply chains. implementation of specific activities in the Market Square, Wrocław. for young people, where they can Standards and practice; / projects, which are part of the realize their passions, develop talents • Non-financial reporting as a way achievement of selected sustainable and skills, work on changing their to the RESPECT Index; development objectives adequate Every Sunday, a group of about 100 homeless people, behavior, but also to get involved to • Responsible Business to the company’s operations. which once numbered less than 20, gathers in Plac help others or do some useful work Laboratory conference. Woloności (Freedom Square) in Wrocław. The gathe- for their local community. One of the red people await volunteers from „Zupa na Wolności” directions of work with children and During panel discussions, CCC (The soup on freedom square), who give out warm youth is to encourage them to be employees had the opportunity to meals. active and to demonstrate their own share their knowledge, exchange initiative. There are many examples of experiences and communicate the The initiative was extended by the support offered by such youth initiatives, and employees CCC activities among recipients CCC in the form of donating winter footwear to those who themselves received support interested in the CSR issues. in need. In this way, a small grassroots initiative of a from SZANSA in the past also partici- socially engaged employee could flourish with the pate in their implementation. help of businesses. https://facebook.com/ More: https://www.facebook.com/zupanawolnosci/ SzansaGlogow/videos/ videos/2259760367614154/ 314659449159318/ 104 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 105
Responsibility CCC-Liv TEAM
1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport CCC Development Team (in 2018 CCC 4. Global activity Sprandi Polkowice) seeks to make its fans CCC-Liv Team is the first women’s cycling team spon- smile not only through sports results, but sored by CCC. It is a world-class group, which will also through various types of meetings. appear on the routes of Women’s World Tour races, 3. Involvement through sport a series of the major competitions in women’s road In December, cyclists of the CCC Development cycling. Team together with the Polkowice Commune https://www.liv-cycling.com/pl/ organized an exceptional cycling competition #RideForMore teams-and-riders/ccc-liv-team/207 „Cyklomaniak” in two primary schools. Three of the orange” - Michał Paluta, Patryk Stosz and Involvement in sport is a part of building the com- Piotr Brożyna hosted the event. They played the pany’s value for its stakeholders. Athletes who role of judges and coaches, cheering students promote the orange colours of CCC are among the CCC DEVELOPMENT TEAM and giving them valuable tips. best, not only in Poland, but also worldwide. Young cycling enthusiasts had to face an obsta- In 2018, CCC revised its sports sponsoring strategy CCC Development Team is a continental group affilia- cle course race to be overcome on two wheels and strengthened its previous activities related to ted with the UCI World Tour team, the CCC Team. and also tested their skills on a cycling trainer. cycling by becoming the titular sponsor of three teams The professional cycling group of the CCC Develop- Participants from 13 different grades gave their - the CCC Team, belonging to the UCI World Tour ment Team is a titled Polish cycling group which aims best and all of them could come back from series, with the Olympic champion, Greg Van Aver- to develop future champions. these competitions as winners, additionally maet; the CCC-Liv Women’s Team, which will include https://cccsport.eu/ receiving a gift. Marianne Vos as the leader; and the continental team, the CCC Development Team. Representatives of the CCC Development Team, Mateusz Taciak and Adam Pluciński, also visited the children’s ward of the Regional CCC TEAM Health Centre in Lubin in 2018. The meeting with children undergoing treatment there was held under the slogan „Polkowice sports - to CCC Team is a cycling group with a Polish licence in strengthen hearts”. Young cycling fans and UCI World Tour. The team was formed through the bicycle enthusiasts could learn about the life of transformation of BMC Racing Team. It is the first a professional cyclist. team with its seat in Poland, a Polish sponsor and a number of Poles on the team roster and in the mana- Cyclists are also eager to talk about their pas- gement board. Thanks to the shirts with the UNICEF sion and work on the occasion of children from logo, the cyclists of the CCC Team proudly present kindergartens visiting the headquarters of the their cooperation with UNICEF. CCC Development Team, where they can see https://www.facebook.com/ bicycles, cars, trucks and other vehicles, which CCCProTeam/ during the season are used by team members and the staff, travelling all over Europe and beyond. 106 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 107
Responsibility PROMOTING SPORTS AMONG
1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport CHILDREN AND THE YOUTH 4. Global activity
Sponsoring of MKS Polkowice Partnership with the Michał Basketball TRIATHLON Kwiatkowski Academy Copernicus
CCC supports MKS Polkowice, which is the CCC also continues the sponsorship of the women’s One of the best athletes in this discipline, Krzysztof largest club in Poland specializing in training At the end of 2018, a strategic partnership between basketball team. CCC’s involvement and common Augustyniak, competes in orange colours. children and youth in road and mountain cycling. CCC and the Academy of Michał Kwiatkowski experience with basketball began in 2000. In that He represents Poland at the European Championships In 2015, MKS Polkowice took first place in the Copernicus was announced. CCC and the most titled same season, the basketball players were promoted in Triathlon, and in 2018 he won the silver medal Polish MTB Cycling Schools Championships Polish cyclist Michał Kwiatkowski, teamed together in to the first division. Since 2014 the club has been at the Polish Championships in Triathlon at the team standings. Miejski Klub Sportowy order to support and promote talented cyclists of the representing Polish basketball on the international IRONMAN distance. Polkowice is an organizer of cycling events for young generation. Michał Kwiatkowski and his team arena, competing against the best teams of women’s https://www.facebook.com/ children from primary schools under the name of coaches and social activists from Toruń have been basketball in Europe. In 2018, the CCC Polkowice Krzysztof.Augustyniak.Triathlon/ of MTB Cycling Schools League of the Copper creating a club for 5 years, which over the course of team won the Polish Championship for the second Belt. In the 2018 season, the cyclists competing several seasons has become one of the most success- time (2012/2013). in the national competitions stood 31 times on ful Polish youth teams. http://kosz.mkspolkowice.pl/ the podium (15 times taking first places, 9 times second and 7 times third place on the podium). Throughout 5 seasons, Copernicus team members The Group’s sponsoring policy is consistent Currently, about 60 boys and girls aged 9 to 20 stood on the podium of national races more than with strategic and marketing objectives. take part in trainings systematically. Classes are 1000 times, won over 200 Polish Championship CCC is involved in projects that help to achieve held six days a week in four age groups. medals, as well as medals of the European and World the objectives set at the local, national and http://kolarze.mkspolkowice.pl/ Championships. The club from Toruń is currently international level. When selecting sponsoring training over 100 players in four age categories - from activities, it is significant whether the nature of juvenile to junior. The next step in the development the project is consistent with the area of interest will be regular starts abroad. Increasing the budget of the CCC, as well as the experience and good and cooperation with other teams sponsored by CCC reputation of the organizer. will facilitate the completion of the race participation schedule mainly in Belgium, Holland and Italy. In ad- dition, a new training and start base will be created in Belgium and Italy in the spring, as most of the impor- tant spring races take place in these countries. The partnership agreement was signed for 3 years. 108 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 109
Responsibility Innovations 1. Employee volunteering | 2. Partnerships and support for local communities | 3. Involvement through sport 4. Global activity
4. Global activity CCC together with its partners launched The projects will be filtered and selected with the the Retail aCCCelerator, an acceleration assistance of CCC Partners and companies submitting platform dedicated to young and them will have the opportunity to test their ideas with GLOBAL PARTNERSHIP WITH UNICEF innovative companies developing new specialists cooperating with CCC, confront them with the solutions for retail. This is an opportunity customers and to track their market entry time. CCC has always supported chari- for the best teams to accelerate their table activities, and, thanks to the development and adapt to real market The first 5 selected start-ups had the opportunity to strength of its brand and increasing conditions. present themselves during the Innovation Day organized international success, has decided to at the headquarters of the Company. partner with the UNICEF - the larg- The aim is to accelerate the development est humanitarian and development of innovative ideas and products for organization supporting children. customers and retailers.
The CCC Group was the first Polish company to become a global partner of UNICEF. Over the course of three years, CCC will provide funds to help children around the world. UNICEF is a humanitarian and development or- ganization supporting children. It op- erates in small villages and alongside governments because it believes that every child, regardless of birthplace, skin color or religion, has the right to a healthy and safe childhood.
The partnership will be communicated in CCC footwear stores in 21 coun- tries, including Poland, the Czech Republic, Germany, Austria, Switzer- land and Hungary. Cycling team of CCC Team was also included in the partnership. The shirts of the cyclists will be labeled with the UNICEF logo. Thus, the cycling group which belongs to CCC will proudly present the partnership with UNICEF and the company’s involvement in efforts for the benefit of children during races all over the world. 110 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 111
New investments, both at the design and implementation stage, take into account The Environment the use of energy-saving technologies. The implemented measures include the transition to energy-efficient, sensor-controlled solutions for managing energy con- sumers in facilities.
Popularizing ideas and shaping environ- In the commissioned facilities of the Research and Development Center, the mental habits and pro-environmental energy consumption reduction is ensured by an advanced BMS system, which is attitudes is the major driver of changes designed to manage the building‘s lighting intelligently. The system is equipped taking place in society at every level. with sensors which, depending on the level of sunlight in the building, automati- In 2018, CCC together with its partner - cally adjust its illumination. a waste recycling organization organized eobuwie.pl SA lessons on recycling for primary school Energy consumption in the Group’s major CCC Factory eobuwie.pl companies (with the largest impact on energy CCC S.A. children of the 1st - 3rd grade. The aim Sp. z o.o. Logistics consumption) of the classes was to build children’s at- Sp. z o.o. Total energy consumption from non-renewable titudes and environmental awareness in resources (own or purchased) by type of resource Amount (MWh)
cooperation with local educational insti- Natural gas 4651,516 1710,1 1066,93
tutions. The workshops were attended by Total energy consumption from renewable resources a total of 74 young participants. (own or purchased) by type of resource Amount (MWh) Solar energy 78,434
Total consumption of energy generated or purchased Amount (MWh) divided into: electrical, thermal
Workshops and environmental education Electricity 6070,333 1659,743 1271,41
are one of the core elements of the Environ- Total energy consumption 10800,283 3369,843 2338,34 mental Strategy implemented in 2018. In the following years, similar initiatives will be continued. A further step to minimize the negative environmental impact is the modernization Other priorities within the Environmental of the existing car fleet. In 2017, CCC began to replace the fleet with hybrid ve- Strategy are: minimizing the business activity hicles by purchasing the first 20 cars of this type, which accounted for about 20% impact on the natural environment and re- of the fleet, while in 2018, the replacement of 70 more cars was consistently conti- ducing energy consumption and greenhouse nued in order to reduce operating costs as well as to reduce greenhouse gases. gas emissions. At the end of 2018, hybrid cars accounted for 40% of the entire fleet.
CCC aims to reduce energy consumption In the following years, the company also plans to purchase electric cars to move and greenhouse gas emissions through, for around the company‘s premises in Polkowice and its immediate vicinity. example: the use of energy from renewable Greenhouse gas emissions CCC CCC.eu CCC Factory ebuwie.pl S.A. sources, including own solar energy. A pho- eobuwie.pl S.A. Sp. z o.o. Sp. z o.o. Logistics Sp. z o.o. tovoltaic farm located on the building of one Direct emissions Greenhouse Greenhouse Greenhouse Greenhouse of the warehouses in Polkowice generates gas emissions gas emissions gas emissions gas emissions [tCO2e] [tCO2e] [tCO2e] [tCO2e] annual benefits from energy savings and CO2 Emissions from electricity 4370,397 1194,949 emissions reduction.
Emissions from natural gas 811,559 345,986 124,61 combustion The main areas of consumption, and thus The main energy consumers at the Emissions from the transportation 671,407 447,869 26,586 225,034 energy savings as part of the activities per- Company‘s headquarters are: of materials, products and waste
formed at the CCC headquarters are deter- Total direct emissions 5853,363 447,869 1567,521 349,65 mined through the operation of a modern, in- • ventilation and air-conditioning tegrated ZENON power grid control system. systems for office spaces, • warehouse space lighting This comprehensive software implemented in connection with the 3-shift by us for improved supervision of the power operation system, infrastructure of the facilities allows for ef- • compressor system operation, ficient monitoring, analysis and reporting • automated storage and retrieval In 2018, the companies of the CCC Group were not subject to any penalties of data in area of energy. system operation in the AWS facility. related to environmental protection. 112 CHAPTER V | COMMUNITY experience Non-financial Report of the CCC Group for year 2018 113
Further commitments
The Company maintains its decision to continue the dialogue with stakeholders in order to obtain information on stakeholder needs in the following areas: responsible product and responsible sales, workplaces, environmental impact, social engagement of the Group.
CCC appreciates the reported expectations towards future actions. At the same time, the Company undertook to communicate and present its activities in sustainable development both locally and in a broader scope. The Company plans to conduct another stakeholder panel in the first half of 2019. In 2019, it is also planned to implement formal regulations under which the Company will provide in-kind and financial support, as well as undertake sponsorship activities
The priority in the field of environmental protection are
measures aimed at reducing CO2 emissions by increasing the consumption of energy from renewable resources in the Group‘ overall energy balance.
Renewable energy sources such as solar energy, geothermal energy, wind farms, energy from biogas and biomass combustion are the sources of „cleaner, greener“ energy, which is the most environmentally friendly. The generation of such energy does not pollute the atmosphere. By 2021, it is planned to increase the share of renewable energy sources in the total energy consumption to 50%. Such a share of green energy would
reduce annual CO2 emissions by about 13,000 tonnes per year.
Another measure to reduce CO2 emissions is forest planting, jointly with the local Forest Districts. It is the most effective way to offset carbon emissions from economic activity. The solution is environmentally friendly and of great educational value. 114 Non-financial Report of the CCC Group for year 2018 115
The process of reporting non-financial data was List of key topics for the CCC Capital Group About The Report carried out in accordance with the principles from the perspective of sustainable develop- defined in GRI Standards, thus: ment and responsible business - topics indicated as important by the organization and its stake- • Steps of identification, prioritization and holders: validation have been carried out. In order to define the issues important for the organiza- Market responsibility tion in the field of sustainable development [Topics particularly relevant to customers, suppli- The non-financial report includes The non-financial report keeps the consistency of economic and responsible business the following has ers and subcontractors] data for the period from January 1 entities included in the consolidated financial statements. been made: internal analysis and analysis • Safety and quality of the product to December 31, 2018. Some subsidiaries have not been covered by the consolida- of the business environment. To this end, in • Customer relationship (including service tion due to the immateriality of the data. 2017, a survey was conducted among 295 standards) employees and customers representatives • Responsible sales in CCC stores In accordance with good international Data regarding: energy consumption, water consumption, and a dialogue session based on the interna- • Transparency in the product development cy- practice and the Polish market, the waste size do not contain information about other subsidia- tional standard AA1000SES dialogue. cle and accountability standards in the supply publication was created in accordan- ries and stores, due to the media coverage in the price of The session was attended by 17 external ex- chain (including counteracting human rights ce with the standards of the Global renting m2 of space. perts - representatives of public administra- violations) Reporting Initiative (GRI Standards) tion, consumer organizations, financing in- • Process and production innovation in the Core option. The requirements stitutions, non-governmental organizations, of the EU Directive 2014/95 and business partners, universities and neigh- Responsibility at workplace the resulting changes introduced to Entity Type of activity Scope of the CCC bours - with the participation of a member [Topics particularly relevant to current and poten- Group’s non-financial the Accounting Act regarding the report of the CCC Group Management Board. The tial employees of the factory, stores, office and disclosure of non-financial data have CCC S.A. spółka management yes assumptions of the Report, relevant topics administration] dominująca also been met. Non-financial report and indicators have been accepted by the • Conditions of employment and relations CCC Factory Sp. z o.o. manufacturing yes coverage includes CCC S.A. and the managerial staff. Opinions and expectations with employees eobuwie.pl S.A e-commerce yes CCC Capital Group. of stakeholders were taken into account in • Occupational Health and Safety DeeZee Sp. z o.o. e-commerce yes the previous report and in this non-financial • Staff development CCC.eu Sp. z o.o. distribution yes In accordance with the regulatory report for 2018. The next dialogue session • Equal opportunities (diversity) CCC Germany GmbH distribution yes requirement, the financial data are will be held in 2019, in accordance with the • Ethics (including counteracting corruption and CCC Czech s.r.o distribution yes presented separately in consolidated Company’s decision to conduct the dialogue bribery, discrimination) CCC Austria Ges.M.b.H. distribution yes form and for CCC S.A. The report has at two-year intervals. CCC Hrvatska d o.o. distribution yes not undergone external verification. • Consistency with 10 GRI principles has been Responsibility towards the social environment CCC Russia Sp z o.o. distribution yes In subsequent years, responding to maintained regarding content definition [Topics particularly relevant to the local commu- CCC Shoes Bulgaria distribution yes the requirements of the Accounting EOOD (materiality, sustainability context, stake- nity, beneficiaries of actions and employees] Act (UoR), the report will be publi- CCC Obutev d o.o. distribution yes holder coverage, completeness) and quality • Sponsoring and philanthropic activities shed on an annual basis. CCC Slovakia s.r.o. distribution yes of the data presented (balance, reliability, • Employee social involvement CCC Hungary Shoes distribution yes comparability, accuracy, timeliness, trans- Kft. The previous non-financial report parency). Responsibility towards the environment CCC Shoes & Bags distribution yes covering the period from January 1 to d.o.o. Beograd — Novi • In accordance with GRI requirements in the [Topics particularly relevant to clients, employees December 31, 2017 was published on Beograd Core option, profile indicators and selected and the local community] March 26, 2018. In relation to it, signi- Karl Voegele AG distribution yes detailed indicators have been reported • Implementation of environmentally friendly ficant changes in this report relate to Shoe Express S.A. distribution yes within relevant topics. The list of indicators technologies in the production process and the scope - in the reporting period, CCC Shoes distribution no is presented in the GRI Index. logistics Ayakkabıcılık Ticaret the CCC Group acquired 100% shares Limited Sirketi • Reducing the negative impact of the company in Shoe Express S.A., 70% shares in Eobuwie.pl Logistics other activity yes in the office and shops Sp. z o.o. Karl Voegele AG and 51% shares in Eschuhe.de UG other activity no DeeZee Sp. z o.o. Branded Shoes&Bags other activity no Sp. z o.o. CCC Isle of Man Ltd. other activity no We are open to your questions or opinions. Please address them to Magdalena CCC Shoes and Bags other activity no Kaźmierczak (CSR Coordinator) and Anna Natanek (Manager of the Organization Sp. z o.o and Investor Relations Office) to the email address: [email protected]. NG2 Suisse S.a.r.l. other activity no 116 Non-financial Report of the CCC Group for year 2018 117
GRI INDEX
Indicator Required at the Indicator Required at the Number of GRI Standard Indicator title Page Number of GRI Standard Indicator title Page number CORE level number CORE level
Assumptions and basics of reporting GRI 102 102-53 Contact details CORE 115
GRI 101 Assumptions and basics of reporting CORE 114 GRI 102 102-54 Indication whether the report was prepared in accordance with the GRI Standard CORE 114 in the Core or Comprehensive option Profile indicators GRI 102 102-55 GRI index CORE 116 Profile of organization GRI 102 102-56 Policy and current practice in the field of external verification of the report CORE 114 GRI 102 102-1 The name of the organization CORE 8 Management approach GRI 102 102-2 Description of the organization's activities, main brands, products and / or services CORE 8 GRI 103 103-1; Management approach and its elements in the area of CORE 31 GRI 102 102-3 Location of the organization's headquarters CORE 14 103-2; Compliance with laws and regulations 103-3 Evaluation of management approach in a given area GRI 102 102-4 Location of operating activity CORE 14 GRI 103 103-1; Management approach and its elements in the area of CORE 72 GRI 102 102-5 Form of ownership and legal structure of the organization CORE 25 103-2; Employment GRI 102 102-6 Served markets CORE 16 103-3 Evaluation of management approach in a given area
GRI 102 102-7 Scale of activity CORE 16 GRI 103 103-1; Management approach and its elements in the area of CORE 84 103-2; Education and training GRI 102 102-8 Data regarding employees and other persons providing work for the organization CORE 73 103-3 Evaluation of management approach in a given area
GRI 102 102-9 Description of the supply chain CORE 42 GRI 103 103-1; Management approach and its elements in the area of CORE 82 103-2; Occupational health and safety GRI 102 102-10 Significant changes in the reporting period regarding the size, structure, ownership CORE 25 103-3 Evaluation of management approach in a given area form or value chain GRI 103 103-1; Management approach and its elements in the area of CORE 88 GRI 102 102-11 Explanation of whether and how the organization applies the precautionary prin- CORE 33 103-2; Diversity and equal opportunities ciple 103-3 Evaluation of management approach in a given area
GRI 102 102-12 External, adopted or supported by an economic, environmental organization CORE 21, 103 GRI 103 103-1; Management approach and its elements in the area of CORE 30 103-2; Anti-corruption GRI 102 102-13 and social declarations, rules and other initiatives CORE 21 103-3 Evaluation of management approach in a given area
Strategy GRI 103 103-1; Management approach and its elements in the area of CORE 47 103-2; Health and consumer safety GRI 102 102-14 Statement by the top management CORE 2 103-3 Evaluation of management approach in a given area GRI 102 102-15 Description of key influences, opportunities and risks 33 GRI 103 103-1; Management approach and its elements in the area of CORE 58 Ethics and integrity 103-2; Marketing and labeling of products and services 103-3 Evaluation of management approach in a given area GRI 102 102-16 Organization values, Code of ethics, rules and norms of behaviour CORE 26 GRI 103 103-1; Management approach and its elements in the area of CORE 42 GRI 102 102-17 Internal and external mechanisms to obtain advice on behaviour 31 103-2; Respect for Human Rights on ethical and legal issues and matters related to the integrity 103-3 Evaluation of management approach in a given area of the organization GRI 103 103-1; Approach to management and its elements in the area of CORE 48 Corporate governance 103-2; social Assessment of suppliers 103-3 Evaluation of management approach in a given area GRI 102 102-18 The supervisory structure of the organization together with the committees CORE 24 subordinated to the highest supervisory body GRI 103 103-1; Management approach and its elements in the area of CORE 52, 66, 103-2; environmental impact (including energy management, 90, 110 GRI 102 102-22 Number and gender of members of the highest supervisory/management 25 103-3 emissions, water, resource use, waste) body and its members Evaluation of management approach in a given area
Stakeholder commitment GRI 103 103-1; Management approach and its elements in the area of CORE 96 103-2; social impact GRI 102 102-40 List of stakeholder groups engaged by the reporting organization CORE 38 103-3 Evaluation of management approach in a given area GRI 102 102-41 Employees covered by collective agreements CORE 89 Thematic indicators GRI 102 102-42 Basis for identifying and selecting stakeholders engaged by the organization CORE 38 Economic topics GRI 102 102-43 An approach to engaging stakeholders including the frequency of involvement by CORE 38 Economic results type and group of stakeholders GRI 201 201-1 Direct economic value generated and divided (including revenues, operating 22 GRI 102 102-44 Key topics and problems raised by stakeholders and the response from the organi- CORE 39 costs, employee remuneration, subsidies and other investments for the benefit zation, including by reporting them of the community, undivided profits and payments to owners of capital and state Reporting practice institutions)
GRI 102 102-45 Recognition in the report of economic entities recognized in the consolidated CORE 114 Market presence financial statements GRI 202 202-1 The remuneration of employees at the lowest level by gender in relation to the 81 GRI 102 102-46 The process of defining report content and the boundaries of aspects CORE 115 minimum wage on a given market in the main locations of the organization
GRI 102 102-47 Significant topics identified CORE 115 GRI 202 202-2 The percentage of top management gained from the local market in major 73 locations GRI 102 102-48 Explanations regarding the effects of any adjustments to information contained in CORE n.d. previous reports, giving reasons for their introduction and their impact (e.g. merg- Indirect economic impact ers, acquisitions, change in the year / base period, nature of operations, measure- GRI 203 203-1 Contribution to infrastructure development and provision of services to the public 96 ment methods) through commercial activities, transfer of goods and pro bono activities. GRI 102 102-49 Changes in reporting CORE 114 The impact of these activities on society
GRI 102 102-50 Reporting period CORE 114 GRI 203 203-2 Identification and description of significant indirect economic impact along with 108 distinguishing the scale and scope of impact GRI 102 102-51 Date of publication of the last report (if published) CORE 114 Procurement practices GRI 102 102-52 Reporting cycle CORE 114 GRI 204 204-1 The share of expenditure on services / products of local suppliers in the main 42 118 Non-financial Report of the CCC Group for year 2018 119
GRI INDEX CONTINUED
Indicator Required at the Indicator Required at the Number of GRI Standard Indicator title Page Number of GRI Standard Indicator title Page number CORE level number CORE level
Counteracting corruption Marketing and labelling of products and services
GRI 205 205-1 Percentage and total number of business units analyzed for risk related to corrup- 31 GRI 417 417-3 Cases of non-compliance with regulations and voluntary codes in marketing com- 60 tion and identified risks munications
GRI 205 205-2 Communication and training in the organization’s anti-corruption policies and 32 Compliance with socio-economic regulations procedures GRI 419 419-1 Non-compliance with legal regulations and socio-economic regulations 47 GRI 205 205-3 Confirmed cases of corruption and actions taken in response to them 31
Violation of the rules of free competition
GRI 206 206-1 Total number of legal actions taken against the organization regarding cases of 60 violations of free competition rules, monopolistic practices and their effects
Environmental issues
Materials
GRI 301 301-1 Used raw materials / materials by weight and volume 53 Requirements of the Accounting Act regarding
Energy the publication of non-financial data
GRI 302 302-1 Energy consumption by the organization, taking into account the type of raw 111 materials
GRI 302 302-4 Reduction of energy consumption 110 The chapter in which we present Regulatory requirement GRI Indicators GRI 303 303-1 Total water collection by source 53 the required content
Emissions Description of the business model of the entity Chapter „Company” GRI 102-2, 102-6, 102-7, 201-1, 102-15 and key performance indicators GRI 305 305-1 Total direct greenhouse gas emissions 111 Description of the risks identified as significant Chapter „Company” GRI 103-1, GRI 103-2, GRI 103-3 - Management approach and its GRI 305 305-5 Reduction of greenhouse gas emissions 111 and their management elements in the area of Compliance with laws and regulations. GRI 102-11, 102-15, 419-1, 307-1 Sewage and waste Description of policies, due diligence proce- Chapter „Company” GRI 103-1, GRI 103-2, GRI 103-3 - Management approach and its GRI 306 306-2 Total weight of waste by type and disposal method 54 dures and results related to the entity's activities elements in the area of Anti-corruption GRI 307 307-1 Monetary value of fines and total number of non-monetary sanctions for non- 111 in relation to counteracting corruption and GRI 102-16, 102-17, 205-1, 205-2, 205-3 compliance with laws and / or regulations regarding environmental protection bribery
Social issues Description of policies, due diligence proce- Chapter „Supplier Experience” GRI 103-1, GRI 103-2, GRI 103-3 - The approach to management dures and results related to the entity’s activities and its elements in the area of Respect for human rights, including Employment with respect to respect for human rights. social assessment of suppliers.
GRI 401 401-1 Newly employed employees and leavings 76 We define human rights as: the right to protect GRI 412-3, 406-1; Own indicators including own data on the sup- private life, freedom from humiliating treatment, ply chain of the CCC Group GRI 401 401-2 Additional benefits provided to full-time employees that are not available 78 the right to non-discrimination to temporary or part-time employees Description of policies, due diligence proce- Chapter „Customer Experience” GRI 103-1, GRI 103-2, GRI 103-3 - Management Approach and its Occupational Health and Safety dures and results related to topics relevant for elements in the area of Health and consumer safety, Marketing and GRI 403 403-1 Percentage of the total number of employees represented in formal committees 83 the CCC sector in terms of customer relation- labelling of products and services (which include management and employees) for occupational health and safety, ship, service quality, responsible sales GRI 416-1, 416-2 which advise on health and safety programs at work and monitor such programs Description of policies, due diligence proce- Chapter „Employee Experience” GRI 103-1, GRI 103-2, GRI 103-3 - Management approach and GRI 403 403-2 The rate of injuries, occupational diseases, lost days and absences from work and 82 dures and results related to the entity's activities its elements in the area of employees, including (Employment, the number of work-related fatalities in relation to employee issues Education and training, Diversity and equal opportunities, Health and safety at work). GRI 403 403-3 Employees particularly exposed to diseases related to the workplace 83 GRI 405-1, 102-41, 202-1, 401-2, 401-1, 403-2, 403-1, 403-3, 404-2, 404-3 Education and training Description of policies, due diligence proce- Chapter „Supplier Experience” GRI 103-1, GRI 103-2, GRI 103-3 - Management approach and its GRI 404 404-2 Management and managerial education development programs that support 84 dures and results related to the entity's activities Chapter „Customer Experience” elements in the area of Environmental impact (including energy continuity of employment and facilitate the process of retirement in relation to the natural environment Chapter „Employee Experience” management, emissions, water, resource use, waste) Chapter „Community Experience” GRI 301-1, 302-4, 302-1, 303-1, 305-1, 305-5, 306-2 GRI 404 404-3 Percentage of employees subject to regular assessment of job quality and career 74 development reviews by gender and employment category Description of policies, due diligence proce- Chapter „Community Experience” GRI 103-1, GRI 103-2, GRI 103-3 - Management approach and its dures and results related to the entity's activities elements in the area of Social impact Diversity and equal opportunities in relation to social issues GRI 203-1, 202-2 GRI 405 405-1 Composition of supervisory bodies and staff, broken down by categories of em- 89 ployees by sex, age and other diversity indicators
Counteracting discrimination
GRI 406 406-1 Total number of incidents of discrimination and corrective actions taken in this 31 matter
Assessment of respect for human rights
GRI 412 412-3 Percentage and total number of important investment contracts and contracts 45
Customer health and safety
GRI 416 416-1 Assessment of the impact of relevant categories of products and services on health 47 and safety
GRI 416 416-2 Cases of non-compliance with regulations and voluntary codes regarding the 47 impact of products and services on health and safety Design and publishing: Piotr Kita, Studio KREATON