Magnit Sums Up the Results of its Work in Sustainability for 2020

DJ Magnit Sums Up the Results of its Work in Sustainability for 2020

MAGNIT PJSC (MGNT) 
Magnit Sums Up the Results of its Work in Sustainability for 2020 
27-Apr-2021 / 09:59 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
 
 
 
MAGNIT SUMS UP THE RESULTS OF ITS WORK IN SUSTAINABILITY FOR 2020 
 
Krasnodar, Russia (April 27, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, 
has published its annual sustainability report. The Company has significantly reduced greenhouse gas emissions, waste 
production and water consumption, as well as implemented major social initiatives in the regions of its operation. 
This is the second non-financial report of the Company, and the first since Magnit has adopted a sustainability 
strategy called "Retail with Purpose" (the Strategy) in 2020. The Strategy is based on 17 UN Sustainable Development 
Goals and sets up quantitative and qualitative indicators for the Company by 2025. In particular, Magnit undertakes to 
ensure that 100% of plastic used in its own operations to be collected and recycled, while reducing waste production, 
greenhouse gas emissions, as well as water and power consumption by 50%, 30%, and 25%, respectively. 
The sustainability report for 2020 was made in accordance with the GRI Standards. The Company has released more 
non-financial metrics this year, striving to meet stakeholder expectations, and refined historical data on 
environmental indicators. Also, the quality of disclosure was improved thanks to the development of internal data 
collection processes. 
Key Achievements in 2020 
Within the Strategy, Magnit has singled out five priority areas to focus its efforts in: Environment, Sustainable 
Sourcing, Employees, Communities, Health and Wellness. Last year, despite all pandemic-related challenges and 
constraints, the Company showed progress in all areas of the Strategy. 
The ?ompany's main achievements in sustainability have become: 
 - Greenhouse gas emissions reduced by 6.9%; 
 - Procurement from local producers increased by 5.4%; 
 - High rate of employee satisfaction - 72.6%; 
 - All the regions of the Company's presence are encompassed with social programs, including MagnitCare; 
 - Healthy lifestyle magazine called "My Magnit" was launched. 
COVID-19 
The Company established an anti-crisis office to promptly solve the pandemic-related issues. Magnit took measures to 
protect health of its employees and customers, substantially immediately, when the threat of mass infection became 
known. The Company also employed 2.5 thousand workers of the companies, which were forced to suspend their business due 
to the COVID outbreak. Additional personnel employed by Magnit helped ensure the uninterrupted operation of stores and 
the service level in difficult conditions, while the employees of other companies were able to retain a source of 
income. Also, the Company granted a 10% discount to volunteers and social workers who bought goods for elderly people 
during self-isolation regime. 
Environment 
Greenhouse gas emissions reduction was one of Magnit's key priorities in 2020. The Company continued to modernize its 
vehicle fleet with medium-duty trucks (Euro 5), which enabled optimizing fuel consumption. In addition, Magnit started 
testing trucks running on NGV and the first Russian electric truck to explore a possible reduction of emissions while 
maintaining delivery efficiency. 
In 2020, Magnit also devoted much attention to recycling, as well as to collection of used plastic and reduction of its 
consumption. The Company partnered up with Procter&Gamble to launch the project called "Give Plastic a Second Life", 
which saw 40 reverse vending machines (fandomats) for plastic packaging collection installed in Moscow and Krasnodar, 
and 40 more will come in 2021. 
In addition, the Company switched to using bags with 30% recycled plastic content. 
Also, leveraging the optimized parameters of individual packaging enabled Magnit to reduce the total consumption of 
packaging materials at its own production facilities by 9.5% in 2020. 
In the reporting period, Magnit's HQ in Krasnodar was certified according to the EcoGreenOffice standard, which saw 
separate waste collection established and an optimal resource consumption system implemented. The Company installed 
additional 120 bins in its HQ to ensure collection of plastic, glass, metal packaging, and paper waste. 
Sustainable Sourcing 
As of the end of 2020, Magnit had over 5.8 thousand suppliers in Russia and abroad. During the reporting period, the 
Company continued to develop responsible sourcing tools, joint projects related to the eco-friendly goods production 
and the use of green packaging, as well as implement social and charity projects. 
Magnit continued to focus on expanding the pool of local suppliers. In 2020, the Company saw 5.4% increase in 
procurement from local producers, while expanding the number thereof from 2,371 to 2,422. Last year, Magnit also 
launched the project called "Farmer's Yard" - a dedicated zone in the stores of the chain to gather the local 
suppliers' goods in. In addition, Magnit and Rosselkhozbank signed an agreement aimed at supporting and promoting farm 
goods in the Company's stores. 
Communities 
In the midst of the COVID pandemic, Magnit launched a social program called MagnitCare. Within the initiative, the 
Company provided 350 thousand free food packages to socially vulnerable citizens in 24 regions of Russia. In addition, 
Magnit issued over 150 thousand special discount loyalty cards granting increased cashback accrual to medical workers 
in all regions of the country and supported over 100 thousand medical professionals with delivery of tea and coffee 
gift boxes to the hospitals. Three thousand five hundred employees of the Company completed training to become 
volunteers and help elderly people during self-isolation regime. 
Employees 
While many companies had to cut staff during the pandemic, the number of Magnit employees increased by 2% and amounted 
to 316 thousand people in 2020. The employee engagement survey showed that 72.6% of employees were satisfied with their 
work in the Company, despite the ongoing business transformation program, and their level of engagement was 84.2%. 
Staff turnover in the reporting period decreased significantly - by 15.6 percentage points. 
Health & Wellness 
Magnit cares about health and well-being of its customers, providing them with access to healthy and balanced goods and 
supporting initiatives aimed at promoting an active and healthy lifestyle. In 2020, the Company significantly increased 
sales of fruits and vegetables, and also launched the "Healthy Lifestyle Cubes" project in hypermarkets to offer 
natural foods, sugar and gluten-free products, as well as superfoods on a special rack. In addition, exclusively for 
its customers Magnit started publishing a magazine called "My Magnit", dedicated to a balanced diet and a healthy 
lifestyle. 
Sustainability Focus Areas for 2021 
In 2021, Magnit will focus on the implementation of programs aimed at healthy lifestyle promotion, reduction of waste 
production and greenhouse gas emissions, building a sustainable supply chain and increasing the share of local 
suppliers, greening the packaging of private label goods, as well as initiatives to involve customers in taking care of 
themselves, their loved ones and the environment. 
 
« 
 
Jan Dunning 
       "Despite the turbulent 2020, Magnit managed to lay the foundations for a systematic approach to 
Magnit's   sustainable development. We have analyzed and launched the transformation of business processes taking 
President and into account the ESG principles, audited corporate governance, industrial safety and labor protection 
CEO      systems, conducted the first employee satisfaction survey and implemented several important social 
       projects. We continue to work on all focus areas of the Strategy and feel quite confident in achieving 
»       our strategic goals by 2025". 
 

The full version of Magnit 2020 sustainability report can be found here:

https://www.magnit.com/en/sustainable-development/non-financial-performance-indicators/

For further information, please contact: 
 
       Dmitry Kovalenko 
       Director for Investor Relations 
       [e-mail] 
       Office: [phone] 
 
       Dina Chistyak 
       Director for Investor Relations 
       [e-mail] 
       Office: [phone] x 15101 
 
       Media Inquiries          Twitter 
       [e-mail]          @MagnitIR 
 
       Note to editors 
 
       Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is 
       headquartered in the southern Russian city of Krasnodar. As of December 31, 2020, Magnit operated 38 
       distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) 
       in 3,752 cities and towns throughout 7 federal regions of the Russian Federation. 
       In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion 
       and an EBITDA of RUB 178.2 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) 
       and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's 
       of BB. 
       Forward-looking statements 
 
       This document contains or may contain forward-looking statements that may or may not prove accurate. For 
       example, statements regarding expected sales growth rate and/or store openings are forward-looking 
       statements. Forward-looking statements involve known and unknown risks, uncertainties and other important 
       factors that could cause actual results to differ materially from what is expressed or implied by the 
       statements. Any forward-looking statement is based on information available to Magnit as of the date of 
       the statement. All written or oral forward-looking statements attributable to Magnit are qualified by 
       this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement 
       to reflect any change in circumstances. ----------------------------------------------------------------------------------------------------------------------- 
ISIN:      US55953Q2XXX 
Category Code: MSCU 
TIDM:      MGNT 
LEI Code:    2534009KKPTVL99W2Y12 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:  100681 
EQS News ID:  1188431 
 
End of Announcement EQS News Service 
=------------------------------------------------------------------------------------
 
Image link: 
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1188431&application_name=news 
 

(END) Dow Jones Newswires

April 27, 2021 02:59 ET (06:59 GMT)