Our 2021 Guidelines

The strategic corporate sustainability plan set forth the priority themes for the sustainable development of the business over the coming five years, according to the demands and perspectives of our internal and external audiences.

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GENERATION OF SHARED VALUE

Due to the size and relevance of our network of suppliers, we rely on two departments dedicated to the management of the relationship with this audience: management of resale suppliers (products sold at stores) and management of administrative suppliers (service providers in the “intermediate activities”). Lojas Renner S.A., considering its potential to positively influencing said partnerships, conducts several processes and initiatives that encourage the adoption of good sustainability practices.

The Company has a Code of Conduct for suppliers intended to align this audience to the principles relevant to the relationship between both, and which sets forth the conduct expected in its operations. Learn below about the main highlights of each department and obtain more details on their work in the three management steps in our Annual Reports.

ADMINISTRATIVE SUPPLIERS – BUILDING WITH SUSTAINABILITY

Lojas Renner S.A. has a specific assessment process for companies providing civil construction services, with the purpose of mitigating socio-environmental risks and encouraging the adoption of good practices in occupational safety, the environment, and social responsibility. Since 2015, the Management of Civil Construction Suppliers engages, monitors, and audits (through third parties) all domestic suppliers involved in our store expansion plan.

RESALE SUPPLIERS

Chain liability.

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The textile sector production chain is complex and involves several links: from the production of raw materials, to the manufacturing of items and their sale. Therefore, the Company believes that it is crucial to ensure, in partnership with suppliers, that the path traveled by the product respects the environment, as well as human and labor rights, generating value to all those involved with as little risks and negative impacts as possible.

All domestic resale suppliers of garments, accessories, and shoes are certified by ABVTEX (Brazilian Association of Textile Retail), which assesses adherence to good corporate practices in social responsibility and the environment. In this link, you can access the full list of suppliers certified by this organization.

ATTENTION TO EVERY DETAIL

Lojas Renner S.A. relies on a manual that gives guidance on the relationshiop with resale suppliers and their contractors, as well as defines the minimum product supply requirements. The relationship cycle includes specific actions in each one of the following pillars: Homologation (documentary assessment, and technical visits by a specific field team), Monitoring and Control (technical on-site and follow-up visits, by a specific team), Development (initiatives and programs to support development, monitored by the Supplier Global Performance Index), and Quality (activity in development, production, and post-production, including specific ABNT manuals and tests to maintain the standard and quality required by the Company and standardization). Learn more about our work regarding each one of these aspects, as well as our supply network management principles.

Lojas Renner S.A. seeks excellence in environmental management processes and practices, following modern women who are more and more demanding and conscious in their buying decisions. We believe in the importance of reducing the negative impacts that our business may eventually generate to the environment, in order to ensure:

ENERGY CONSUMPTION REDUCTION AND EFFICIENCY

The Energy and Asset Management Project uses technological intelligence to identify opportunities to reduce consumption in a simple and innovative manner. As a result, facilities have been modernized with more efficient lamps and air-conditioning equipment, including the monitoring of the operation and energy consumption of all facilities, as well as the standardization and automation of the stores’ systems, such as the escalator and lighting systems.

PRIORITIZING CLEAN SOURCES

Lojas Renner S.A. is developing projects to prioritize, over the coming years, the consumption of energy generated from cleaner sources.

FIGHT AGAINST CLIMATE CHANGES

In line with the increasing need to fight climate changes through a reduction in the emission of greenhouse gases (GHGs), since 2010, Lojas Renner S.A. has been committed to monitoring, managing, disclosing, and mitigating emissions associated with its operations.

Lojas Renner S.A. takes part in B3’s Carbon Efficient Index (IC02), voluntarily answers the Carbon Disclosure Project (CDP) questionnaire, and every year, publishes its inventory in the online platform of the Brazil GHG Protocol Program. Since 2014, the inventory of Lojas Renner S.A. has been assessed by an independent third party, and was awarded the Gold Seal of the GHG Protocol. On a yearly basis, the Company neutralizes its emissions of GHGs regarding the previous year, through the purchase of certified carbon credits. Click here and learn about the emission reduction and performance of Lojas Renner S.A.

MANAGEMENT OF OPERATION RESIDUES

Since 2010, Lojas Renner S.A. relies on the Solid Residue Management Program, in line with the national policy, which purpose is to: - mitigate generation of residues; - adapt its segregation at the origin; - ensure correct handling, packaging, and final disposal of the residues; - encourage recycling; - conduct the integrated management of solid residues, controlling and reducing the risks to and negative impacts on the environment.

EFFICIENT STORES

Since 2015, two stores in Fortaleza and one in São Paulo were opened, as well as the new head office* in Porto Alegre, considering that all of them were built in a sustainable manner, within the premises of the LEED (Leadership in Energy and Environmental Design)—a recognized international system for environmental certification and guidance on building. During the building phase until their effective use, all constructions abide by several strategies to mitigate environmental impact. After that, they become a benchmark for the Company’s Architecture and Engineering department to give guidance on new constructions and renovations. The LEED (Leadership in Energy and Environmental Design), created by the U.S. Green Building Council, is the most internationally recognized seal that is most widely used worldwide.

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*The Renner store at Riomar Shopping Fortaleza has already received the LEED certification. Other mentioned stores and the head office building are in process of certification.

MANUFACTURING PROCESS

The jeans production chain is the one that generates most environmental impacts, due to its intense water and energy consumption, use of chemicals, and generation of effluents. Therefore, since 2013, Lojas Renner S.A. has been developing sustainability projects across the entire chain, in order to reduce impacts and eliminate the risks involved. Jeans resale suppliers are educated and guided on the adoption of the best practices, such as the availability of natural resources and the conscious and efficient consumption of water in the production process.

The adaptation of effluent treatment stations, the appropriate management of residues, the reduction in the consumption of electric power, and the elimination of wastes are among the benefits achieved by suppliers.

LIFE CYCLE ANALYSIS (ACV)

Since 2015, Lojas Renner S.A. has invested in the Life Cycle Analisys (ACV, Análise do Ciclo de Vida) of jeans, in partnership with the GVces (Center for Sustainability Studies of the Fundação Getúlio Vargas School of Management). The study consists of the measurement of its “environmental footprint” through the impacts generated from extraction of raw materials to final destination, including the production, distribution, consumption, and disposal steps. The carbon footprint of a pair of womens’ jeans was analyzed in 2015, and in 2016, the Life Cycle Analysis (ACV) project was conducted based on the “water footprint” of the same pair of jeans.

Considering the behavior of the user in three different scenarios, the study concluded that, for both the water footprint and the carbon footprint, the step involving the use of the pair of jeans is that which generates most environmental impact, with the possibility of representing up to 92% of total water consumption along the life cycle of a pair of jeans. This information is already being used in tags attached to Youcom’s jeans articles, and must be notified to Renner’s customers as well. In addition, Lojas Renner S.A. has invested in research to innovate in raw materials and make manufacturing processes more sustainable. Always in synergy with resale suppliers in adopting the best processes and practices.

TRANSITION TO CIRCULAR ECONOMY

Lojas Renner in partnership with USP—both, in turn, associated to the Ellen MacArthur Foundation—are developing a project involving manufacturing processes in six resale suppliers of the textiles and jeans chains. Which represents the effort in completing the transition to circular economy.

The project will adopt a cleaner production (P+L) approach to reduce the textile residues generated in the production processes of suppliers and Lojas Renner, as well as will utilize leftovers in the production of fabrics for new articles. The medium- and long-term goal is to close the cycle with the recycling of 100% of textile residues in new collections.

CULTURE OF DELIGHTFULNESS

“Delight all with our achievement.” The culture of delightfulness is present in all that we do to continuously exceed the expectations of our collaborators, customers, and all our audiences. Therefore, Lojas Renner S.A. promotes engagement with its values, principles, and activity on a continuous basis. In line with one of the guidelines of the sustainability strategic planning, said engagement intends to sensitize customers and collaborators in order to multiply their delightfulness with an even more responsible fashion.

CUSTOMERS

The level of customers’ delightfulness is measured by Lojas Renner on a daily basis. Therefore, for 20 years, we have had a “Delightometer” at the entrance of all stores, which is a trailblazing initiative in Brazil, which today is reproduced by companies in different retail sectors.

The “Delightometer” is a continuous and relevant indicator of sustainability, as it has already become a part of the daily routine of our customers, who, by the end of their buying experience, indicate their satisfaction at our stores (Very Satisfied, Satisfied, or Unsatisfied).

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In addition, in order to continue delighting its customers, Lojas Renner has been offering more and more products and services with information on sustainability, in addition to disclosing on a yearly basis its performance in this theme.

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Click here to see the special version of the last Annual Report summarized to customers.

SOCIETY

Instituto Lojas Renner: Lojas Renner believes that it has great potential, responsibility, and opportunity to generate development and wellbeing to society, by reaching millions of people. Therefore, in 2008, it created Instituto Lojas Renner, with the purpose of management social investment.

Mission: to promote the economic and social empowerment of women in the textile value chain.The Institute acts in support of projects for the generation of employment and income for women in the textile chain, in line with the 5th among the Sustainable Development Goals (SDG) of the United Nations Organization (UNO)—“Achieve gender equality and empower all women and girls”—and with the Principles for the Empowerment of Women of UNO Women. The funds invested are obtained through Renner’s Mais Eu Campaign, which returns to the Institute, on a yearly basis, 5% of the net sale, free of taxes, during four days after Fathers’ Day. Learn about the latest of the Institute’s projects in our Annual Report and on the Instituto Lojas Renner website.

Lojas Renner has been offering to its customers a choice of products and services with sustainable attributes and environmentally proper solutions that promote social development, from planning and production to the disposal of products.

RAW MATERIALS

Investment in research is continuously made to innovate the identification of the most sustainable raw materials. Currently, three raw materials include such characteristics:

• Lyocell: a fiber of renewable origin extracted from wood pulp through processes that are more efficient in using natural resources with less environmental impact.

• Recycled Thread: a fabric created from recycled textile material and/or plastic (PET).

• Responsible Cotton: By 2021, 100% (one hundred percent) of cotton sourced by Lojas Renner will be "Responsible Cotton". This means that we will source all our cotton according to requirements based on social and environmental responsibility. We consider "Responsible Cotton": Better Cotton (BCI), Responsible Brazilian Cotton (ABR seal - Abrapa), Recycled Cotton and Organic Cotton.

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In 2017, Youcom introduced a capsule collection of parts produced with recycled fabric. This is a movement started by the brand to show that “small actions could change the world”: each part arrived to the stores containing special tags made of seed paper, which contain tips for its customers on daily actions to mitigate environmental impacts and improvements in their quality of life, in addition to the possibility of planting the tag paper. Youcom’s capsule collection comprised pants, jackets, dresses, skirts, and shorts produced with raw materials created from recycled textile materials and/or PET. These fabrics are produced with renewable raw materials that require neither chemical processes, nor the use of water, and deliver zero carbon emissions. In addition, each pair of jeans receives a tag that includes tips on how to use it—washing and drying—with the purpose of warning customers of the mitigation of environmental impact during this phase of the jeans’ “life”. This information was based on a study conducted by the Company on the jeans’ LCA mentioned in EcoEfficient Management/Manufacturing Processes.

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In addition, within the scope of Youcom and Renner sotres, curtains and bags (for use within the stores) are in process of renewal, and little by little, will be replaced with curtains and bags produced with recycled fabric.

RESPOSIBLE COTTON

By 2021, 100% (one hundred percent) of cotton sourced by Lojas Renner will be "Responsible Cotton". This means that we will source all our cotton according to requirements based on social and environmental responsibility. We consider "Responsible Cotton": Better Cotton (BCI), Responsible Brazilian Cotton (ABR seal - Abrapa), Recycled Cotton and Organic Cotton.

PERFUMERY

In the beauty sector, Renner has its own brand of products with environmental criteria: Alchemia, a body line. It includes items containing natural actives and planned based on the concept of comprehensive sustainability. Biodegradable products do not contain petroleum byproducts and come in packaging units produced with paper certified by the Forest Stewardship Council (FSC).

POST-USE OF PRODUCTS

Lojas Renner S.A. promotes sustainability in a product’s entire life cycle, seeking impact reduction alternatives also upon disposal of the products.

With the slogan “A beleza fica com você, a embalagem com a gente” (“You keep the beauty, we keep the packaging” – free translation from Portuguese), EcoEstilo is the main project in Renner’s Solid Residue Management Program. Since 2011, all stores make available collectors in the perfumery department for customers and collaborators to dispose of the packaging units and bottles of perfumery and beauty products purchased or not at Renner stores. This material has an environmentally correct destination. In 2016, EcoEstilo was extended to a reverse logistics project for clothes, which is already being tested in 15 Renner stores, in 5 different capitals: Porto Alegre, Florianópolis (and São José), São Paulo, Rio de Janeiro, and Salvador.

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The project provides for the receipt of disused clothes, purchased at Renner or not, which could have three different destinations according to the condition of the part: • NEW USEFULNESS: clothes that will be given to social organizations. For each part delivered, Renner donates another in consideration. • NEW PRODUCT: clothes that will be transformed into new parts or products, based on the concept of upcycling, by groups consisting of women qualified with the support of Instituto Lojas Renner. • NEW USEFULNESS: clothes that will be transformed into threads (shredding) to be used again in the production of new fabrics. Upcycling is the process of transforming residues or disused products and disposed of into new materials or products with higher value, use, or quality.

At Youcom, the Jeans for Change project, started in 2014 as a pilot project, was created with the purpose of reframing the use of jeans and transforming it into a new product, thus increasing its shelf life cycle. The pilot project, in partnership with a social company, promoted the work of female artisans from vulnerable communities in Porto Alegre.

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In the first action, the donation of each pair of jeans resulted in a discount on the purchase of a new pair of Youcom jeans. The donations generated raw materials for the production of ecobags sewn by local social organizations and distributed to customers through a buy-and-win promotion. The project, well succeeded among Youcom customers, was reshaped in 2015, and after the creation of the YoucomLab platform, attempted to obtain further integration by young individuals in building the brand’s identity, thus encouraging new talents and providing visibility to their work. The first initiative of the platform was the 2015 Jeans for Change contest: fashion, design, and advertising students were encouraged to create the design of the bags that would be manufactured by female artisans from vulnerable communities. The wining ideas, selected by a judging committee consisting of representatives of the partner company and of Youcom’s Marketing and Style department collaborators, were utilized to produce the bags. The products returned to ten of the brand’s stores, were they were distributed to customers through a buy-and-win promotion. The project is currently being expanded. After collecting two thousand pairs of jeans during an event referred to as “Se essa rua fosse minha” (“If this street were mine” – free translation from Portuguese), in São Paulo, Jeans for Change is in the process of planning its 3rd cycle, as Youcom’s major post-consumption project.

PRODUCT LIFE CYCLE ANALYSIS

CARBON FOOTPRINT OF THE JEANS

The Life Cycle Analysis (LCA) of a product is the measurement of its “environmental footprint” through a comprehensive study of the impacts from the extraction of the raw material to its final destination, going through the stages of production, distribution, consumption and disposal. In 2015, Lojas Renner held a pilot project in partnership with the GVces (Sustainability Studies Center of the Getúlio Vargas Foundation’s Business Administration School), which calculated the carbon footprint, from the “cradle to the grave” of a basic women’s jeans sold in its stores.

For usage stage, 3 different scenarios were calculated taking into consideration the user behavior.

We can conclude that, regarding the jeans’ carbon footprint, the usage stage is the one that generates more environmental impacts, and that a small change in the end consumer behavior can significantly reduce this impact.

Carbon Footprint

The analysis considers the stages of obtaining materials and pre-processing, production, distribution and storage, and usage and end of life, as well as the transport in each of the stages. The functional unit of the jeans considered a woman wearing it twice a week and washing it once a week for one year.

WATER CONSUMPTION FOOTPRINT

In 2016, we conducted the Life Cycle Analysis of the “water consumption footprint” for the same item of apparel (basic women’s jeans).

Considering user behavior in 3 di­erent scenarios, we concluded that the usage stage from the point of view of water and carbon footprints is the one that generates the greater environmental impacts and could represent as much as 92% of total water consumption during the life cycle of a pair of jeans.

Hence, small changes in the way the end consumer uses the product can significantly reduce environmental impact.

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*The Complete Life Cycle considers the stages of obtaining the raw materials and pre-processing, production, distribution and storage, usage and end of life (landfill), considering the jeans are worn for one year.

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