SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY REPORT TABLE OF CONTENTS CEO Message 4 Highlights 2019 6 Awards 7 The Group at a glance 8 Our Values 9 Our Mission 9 Milestones in the Group’s history 10 Our business model 12 Our supply chain 15 Our Group’s memberships 16 Sustainable Development and Corporate Responsibility at our Group 18 Social Responsibility Division Message 20 Social Responsibility Division 2 1 United Nations Global Compact 22 The UN Sustainable Development Goals (SDGs) 22 Sustainable Development Goals and FOURLIS Group 23 Our stakeholders 23 Materiality analysis 26 Our material topics for 2019 28 ESG Strategic goals 33 For our People 34 Employment creation 36 Protection of human rights in the workplace 44 Investing in employee training and education 46 Protection of employee health, safety and well-being 50 For the Society 54 Active and responsible social contribution 56 For the Market 68 Creation and distribution of direct economic value to stakeholders 70 Regulatory compliance & business ethics 72 Protection of customer and visitor health and safety 78 Product compliance, labeling and responsible communication 80 For the Environment 84 Responsible energy management and reduction of GHG emissions 86 Proper waste management and responsible materials selection 90 Responsible water consumption 93 Offering of products that contribute to a more sustainable lifestyle 94 About the Report 95 Appendices 96 Communication on Progress Table – United Nations Global Compact 96 GRI Content Index 97 ESG Guide Content Index 99 4 CEO MESSAGE CEO Message GRI 102-14 We are very proud to present to you the 11th Sustainable Development and Social Responsibility Report of FOURLIS Group for the financial year 2019. This Report reflects our contribution to sustainable development, through the responsible management of the material topics concerning the Group and our stakeholders. SUSTAINABLE DEVELOPMENT We implement, whenever necessary, an emergency AND BUSINESS ETHICS plan aiming at our smooth operation and the Sustainable development is an integral part health and safety of our employees, customers of our business strategy and our day-to-day and partners, always in compliance with the operations. In the Group, we work and operate applicable laws. In this context, we monitor -on a responsibly based on the Group’s Values for daily basis- the developments of the pandemic, Integrity, Respect and Efficiency, aiming to in order to adapt to the new conditions. As the create the conditions for a better life for all. In phenomenon is in full swing, its quantitative this regard, for another year we adhered to our and qualitative impacts on the operation of the commitment to the UN Sustainable Development Group and its Companies are being evaluated Goals and we strictly applied the 10 Principles and will be presented at a later stage. of the UN Global Compact, thus, sealing our responsible business operation. This Report FOR OUR PEOPLE has been prepared in accordance with the GRI FOURLIS Group is its people, all those who Standards (2016 edition) and in the following support its operation on a daily basis. For this pages we present our most important economic, reason, our goal is to create the conditions for social and environmental practices, as well as a better life for our employees. Creating and their results for 2019. safeguarding jobs, safe working conditions, meritocracy and personal development, respect MOST IMPORTANT CHALLENGES for human rights, but also the provision of In 2020, we are all experiencing an unprecedented equal opportunities for training, assessment challenge, the coronavirus pandemic, with and reward for all, are the focus of our Group’s multidimensional impacts that affect us both as philosophy and the practices we apply. a Group and as social beings. SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY REPORT 2019 5 FOR THE MARKET FOR THE FUTURE In 2019, we managed again to increase the Group’s Given the challenges facing in 2020, due to the sales by 4%, which now amount to €466.3 million, coronavirus pandemic, and despite the fact compared to €448.5 million in 2018. For the that we do not know the exact evolution and Group, its successful economic course is always the potential financial and social impacts of the accompanied by a corresponding increase in its pandemic, we are optimistic about the future positive economic and social impacts. This is and prove it in practice, by setting specific short- due to the creation and distribution of economic term and long-term goals. value in the countries where we operate, through the cash flows we generate for our stakeholders, In this context, we will continue the unhindered such as wages and benefits to employees, effort to increase our socio-economic footprint, direct and indirect state taxes, dividends to and to create and distribute value to our shareholders and payments to our partners and stakeholders through a multidimensional social suppliers. In addition, the direct jobs in the Group program and the expansion of its activities, with reach almost 4,200, while through our operation the ultimate goal of benefiting as many social thousands more jobs are created in the whole groups as possible. spectrum of our supply chain. For our people, our goal is to increase their FOR THE SOCIETY number, always according to our business plans, At FOURLIS Group we work every day to create to ensure their health and safety, to defend those conditions aiming at ensuring a better their human rights and continuous education life for the societies in which we operate. The and development in order to improve their responsible management of social issues by the knowledge, skills and abilities, both for their Group, presupposes continuous engagement and personal development and for achieving the then the appropriate evaluation, prioritization, Group’s goals. planning and implementation of programs and actions to meet real needs. Our actions At a governance level, our commitment to zero aim to create partnerships for the Sustainable tolerance for fraud or corruption as well as the Development Goals, through which we focus full compliance with regulations and voluntary on eliminating poverty and hunger, providing codes concerning the labeling and responsible quality education, improving infrastructure, communication of our products and the health ensuring good health and prosperity, reducing and safety of customers and visitors, is self- inequalities, ensuring sustainable cities and evident. communities, as well as combatting climate change. FOR THE ENVIRONMENT At FOURLIS Group, as is the case every year, this year we increased our positive environmental footprint through the adoption of actions aimed Enjoy your reading, at continuous monitoring and mitigation of the negative effects of the Group’s activities, Apostolos Petalas saving natural resources and raising employee CEO awareness on environmental issues. FOURLIS GROUP 6 HIGHLIGHTS 2019 Highlights 2019 Photovoltaic “FTANOUME PANTOU” system operation (REACHING EVERYWHERE) PROGRAM Total annual production 9th year 1,436 ΜWh Donation of sports equipment to 14 Public Primary Schools in affected areas of Greece for more than 3,500 AVERAGE children TRAINING HOURS PER EMPLOYEE Men Women 13.4 12.2 “STATIONS OF JOY” PROGRAM Greece Cyprus - 7th year - - 3rd year - Avoidance of the usage of approximately Refurbishment of Refurbishment of 140,000 6 3 paper boxes due to municipal public replacing them with nurseries and community reusable plastics and kindergartens kindergartens for the transport of goods for more than for approximately from the central warehouse (TRADE LOGISTICS) 380 70 to stores in children children Attica and Thessaloniki SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY REPORT 2019 7 Awards HR Awards 2019 BUSINESS AWARDS TRUE LEADERS Awards (Boussias Communications) HRIMA 2019 (ICAP) GOLD First award in True Leader 2018 “FOURLIS Group Internal Corporate Governance 2019 (The award was presented Communication Application: at a ceremony held in 2019) Friend2Friend (F2F)” Section: Technology, e-learning & Integrated HR MIS Category: Most Innovative use of Technology in HR PEAK SOCIAL MEDIA RetaIL BUSINess Awards 2020 Awards 2019 Awards 2019 (by Direction) GOLD SILVER GOLD IKEA New Catalog Category: Best of Facebook Category: RETAIL CAMPAIGN Lower Prices 2018 Campaign Family of Apps – Innovation (#piopolla) Category: Best Performance in Home, Furniture & DIY GOLD GOLD Category: Best of Facebook Category: SOCIAL MEDIA RETAIL GOLD Family of Apps - Communication STRATEGY (#piopolla) IKEA New Catalog Lower Prices 2018 Campaign, category Best GOLD BRONZE Digital Multi-Channel Campaign for goals Category: Best of YouTube – Innovation Category: CSR RETAIL STRATEGY (Stations of Joy) achievement, combining one TOP 25 finalist or more online channels in all EMEA in the category SILVER YouTube for Action Category: Best Video Campaign, for the E-VOLUTION Awards 2020 effective use of advertising solutions in INTERIORS Awards 2020 digital video platforms (Boussias Communications) GOLD Category: Electronic BRONZE SILVER Business Innovation Category: Best Display Campaign Section: 1.Retail, Category:1.2. Retail chain stores, GOLD SILVER Nomination title: Category: Redesign - Category: Best Paid Search Renovation of Bedroom Relaunch (Website) Campaign, awarded for the effective Department - use of possibilities offered ΙΚΕΑ Kifisos Store GOLD by search engine advertising Category: Customer Support GOOGLE PREMIER PARTNERS GOLD Awards 2019