25 September 2023

X5’s Supervisory Board approves Sustainable Development Strategy to 2025

Moscow, 25 September 2023 – X5 Group’s Supervisory Board has approved an updated Sustainable Development Strategy, setting out the Company’s sustainability targets to 2025.

X5 aims to reduce greenhouse gas (GHG) emissions (Scope 1 and 2) by 15%[1] through improved energy efficiency; increase the share of renewable and low-carbon energy used in its operations to 5%; and increase the share of private-label goods that use more environmentally friendly packaging to at least 60% by 2025. The Company also seeks to maintain an Employee Net Promoter Score (eNPS) of at least 40 p.p., increase sales of healthy lifestyle products, and develop its programme to deliver healthy lifestyle lessons for school students.

The updated Strategy places a greater emphasis on social programmes: X5 plans to increase the number of beneficiaries of its food aid projects by 10% annually, scale up its food-sharing initiative, and increase the number of Local Community Centres at its Pyaterochka stores by expanding this programme to more regions. The Strategy’s new goals include promoting inclusion through more accessible stores and services.

Metrics to measure the Company’s progress towards achieving its targets will also include customer feedback about X5 Group’s initiatives.

“X5 not only remains committed to its sustainability agenda but also drives the continuous improvement of its internal processes, launching new projects to meet and exceed its strategic goals. We will report on progress against our 2023 targets next year, but our team has already set itself ambitious new targets. In addition to metrics updates, the Company also updated its sustainability strategy with new goals, such as reducing other indirect (Scope 3) emissions and improving water efficiency. A particular emphasis was placed on social initiatives, which include building inclusion, expanding food aid programmes, promoting healthy diets among school students, and more. And, of course, the Company remains committed to promoting the well-being of its people by focusing on employee engagement, professional development opportunities and workplace safety,” said Ekaterina Lobacheva, X5 Group President.

[1] Per 1 sqm of selling space compared with 2019.