for everyone sustainability report 2016 what our products are made of • natural resources and raw materials • animal welfare table of contents • packaging 1. foreword 2. results 2016 3. HEMA in brief 4. truly HEMA how our products 2 5. sustainability at HEMA are made • supply chain transparency 6. the right focus • working conditions at producers’ facilities 7. in dialogue with the world around us • transport and energy 8. HEMA’s world 9. what our products are made of 10. how our products are made 11. our role in society 12. definitions our role in society • social engagement • good employment practices Sustainability has a natural match with our brand, and our customers almost take it for granted that we offer sustainable products. I am happy about this, because it is very important to me that our products and services are produced and provided in a sustainable manner. In my view, sustainability is an inextricable part of HEMA’s overall strategy. I am convinced that sustainability is one of the key drivers to build HEMA as a brand that can face the future with confidence. For We aim to better integrate sustainability in all our operational processes, and we are currently laying the foundations to be able to realize this ambition. Over the everyone past year, we once again took a number of important steps. The subject has our full attention and commitment. Sustainability is definitely also about entering into new We have grown our sustainability team which has partnerships with other parties in the sector – so that Looking back on 2016, I feel optimistic. About HEMA as allowed us to launch a number of projects that will help together, we can make a difference. A fine example is the a whole, because we have been able to continue the us to measure the sustainability of our products more International Corporate Social Responsibility (IMVO) positive trend in the present year. And specifically effectively and report in more detail on our achievements. Covenant* for sustainable clothing and fabrics, a wonderful about sustainability. One of our key focus areas in 2016 initiative by Minister Ploumen to improve the sustainability was embedding sustainability in our organisation. We In HEMA’s complex environment, realising this ambition is of the textile industry. In addition, we have started working 3 had already taken a major step in this area in 2015, by far from straightforward. We sell over 32,000 products – together with the Children’s Council and met with the pupils integrating this subject in our ‘HEMA Heart’*. And we ranging from fashion to food, from beauty products to of IKC Noordrijk primary school and Princess Laurentien, to continued on this course in 2016. stationery. We source them from locations all over the discuss the next generation’s perspectives on sustainability, world and sell them in seven countries. This report will and what they expect from us. provide a closer look into HEMA’s world, by means of illustration, we have chosen three sustainable products to 2016 was also a joyous year for us, as we looked back on illustrate our supply chains. These products will highlight 90 years of HEMA. And we celebrated our anniversary the three pillars of our sustainability policy. This visual in style, with numerous festive events for both our staff presentation is an example of how we strive to keep and customers. For example, we collaborated on a great making our communication more transparent. feature with Linda. Magazine, which featured interviews of different generations of customers. And you can Tjeerd Jegen, CEO of HEMA In 2017, sharing the stories behind our products will play increasingly see this ambition – to be there for everyone – 23 May, Amsterdam an even bigger role in our communication. We will be in all our communications. During the festivities, we asked putting more emphasis on communication and sharing our customers to put their ‘Christmas wish’ for someone else more information about our products with our customers. in one of the Christmas trees in our stores, after which we Customers will be able to see improved communication in made their wishes come true. A heart-warming experience. our stores and online. This will make it easier for customers to choose from our range of sustainable products – in line I am convinced that in the year ahead, we can once with our ambition to bring sustainable products within again take important steps in achieving a higher level everyone’s reach. Of course, there’s more to sustainability of sustainability. For now, I hope you will enjoy reading Favourite sustainable product: than simply addressing these issues internally. our report on 2016. oatmeal 553 employees participated in training social key and educational programmes 232 figures audits in 2016 results 4 2016 70,000 economic environmental transport kilometres saved key figures key figures 15 new European stores opened €1,193.2 million net turnover* 600 products with Forest Stewardship Council ® (FSC) * financial year: 1 February 2016 up to and including 31 January 2017. certification the essence optimistic unique HEMA clear reliable in brief accessible The Hollandsche Eenheidsprijzen Maatschappij Amsterdam, or typically Dutch H.E.M.A., opened its first department store in Amsterdam on 4 November 1926. Founders Leo Meyer and Arthur Isaac wanted to open a department store for ‘ordinary people’. HEMA was the first Dutch department store of its kind. Products cost 10, 25 or 50 cents. From day one, HEMA was recognised as optimistic, unique, transparent, reliable, accessible and typically Dutch. 5 Today, we have more than 700 stores in seven countries, with over 18,000 employees. HEMA has around 32,000 products, sold through our stores and online via our web store in all the countries we operate in. We serve six million consumers on a weekly basis. our most important categories In recent years, we have strengthened our focus on the sustainability based on net turnover 2016 of our products and activities. HEMA is there for everyone. In 2017, we will 36% hard goods continue to communicate this sentiment in our client communication, by home and bedroom, beauty and emphasising sustainability. We believe that sustainable choices must be health, school and office, party within reach of a wider public and we try to achieve this by making and gifts, hobby and leisure sustainable products affordable and accessible. 37% fashion and underwear HEMA B.V. has been a part of Lion Capital since 2007. In 2016, we achieved women, men, baby and children’s a net turnover of €1,193.2 million. fashion 24% food and drink retail, hospitality, take away 3% services tickets, photo service, insurances and notary services stores and employees number of employees* Netherlands 1,847 male 545 stores 7,698 female 8,203 employees* 9,545 total Belgium 96 stores support office Amsterdam 897 employees number of employees: 227 male France 399 female 6 53 stores 626 total 426 employees distribution centre Utrecht Germany number of employees: 10 stores 397 male 107 employees 99 female UK 496 total 7 stores 74 employees bakeries Spain 179 male 41 female 5 stores 62 employees 220 total Luxembourg Purchasing offices 4 stores Shanghai, Hong Kong, Dhaka 27 employees * these are our own employees, excluding our franchise stores in the Netherlands. Including franchise stores, we have more than 18,000 employees. five priorities • truly happy truly HEMA customers HEMA looks for the optimum balance between • employees who quality, design and price. We achieve this through continuous innovation in all our product categories. are proud of HEMA We aim to be the number one choice for everyday products that make the lives of our customers easier 7 • simplifying and and more fun. improving our The HEMA heart and our values are central to our activities strategy. Our core values serve as a guide for how we work, with our business partners and in our • sustainable business communities. They help us come up with unique and operations reliable products and services for our customers. We pursue five priorities: truly happy customers, employees • achieving healthy who are proud of HEMA, simplifying and improving our activities, sustainable business operations and financial results achieving healthy financial results. sustainability at HEMA “Sustainability is important for HEMA, and although we have been doing a lot of work behind the scenes, our communication has always been limited. Our HEMA wants to make sustainable products normal and affordable for everyone. customers have been increasingly curious about From the moment we design a product, we start thinking about the sustainability sustainability. Expect to hear a lot more from us this of the materials we are going to use and the conditions in which it will be made. year. We hope to inform customers better about what Step by step, we integrate sustainability into the quality and unique design of our we do and the sustainability of the products that we products, while keeping prices affordable. offer. Although there is still work to be done, we have taken some great steps. Take our range of sustainable cleaning products. A wonderful example of how daily sustainable products don’t need to be expensive.” 8 Everywhere we operate, both in the Netherlands and agents. For the success of our approach, it is essential globally, we strive to give our employees, suppliers and that we have the support of our employees. their employees the best possible conditions to work in and we try to minimise our environmental impact. To incorporating sustainability Eva Ronhaar, achieve this, we work closely with other parties. Only into the organisation Head of Sustainability through cooperation with other parties in our sector and in the production chain* can we raise sustainability to a Sustainability and our role in society is one of the higher level.