<p>CHALHOUB IMPACT</p>our sustainability strategy

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CHALHOUB IMPACT
- Group Executive Chairman message
  
  As I transition from my role as Group President to that of Executive Chairman, I would like to take this opportunity to reflect on the past year—a year marked by many challenges and exhilarating achievements—and to extend a warm welcome to Michael Chalhoub, our newly appointed Chief Executive Officer as he embarks on an exciting new chapter of leadership.
  
  Over the past year, our region has undergone profound transformation and development. Yet, we faced numerous array of geopolitical uncertainties, unrest, and hardship. We extend our deepest sympathy and unwavering support to all those affected.
  
  In the luxury sector, we encountered specific challenges—from global economic volatility to a compression of spending to an evolving regulatory landscape, yet through unwavering resilience, responsible business practices, and steadfast commitment to our core values, we navigated through complexities and identified meaningful opportunities and achieved a reasonable growth.
  
  Our long-term investments in Saudi Arabia have delivered outstanding results, while our operations in the UAE have continued to show consistent momentum. Latin America has emerged as a key driver of our business expansion, and our e-commerce channels have recorded significant growth. These successes are the result of operational excellence, disciplined cost control, and our unwavering focus on customer experience.
  
  Looking ahead, we have outlined a ten-year vision towards 2033—“Bridging Horizons.” This forward-looking roadmap, alongside groundbreaking initiatives such as “Transform Chalhoub,” reflects our commitment to building a resilient, forward looking organisation.
  
  Sustainability is not merely a guiding principle—it lies at the heart of our long-term business strategy. On the road ahead, we remain committed to engaging meaningfully with stakeholders and partners to embed sustainable practices that ensure the Group’s smooth progression into the future, while enhancing the well-being of the communities we serve.
  
  At the core of all our efforts is a simple yet powerful belief: our people are our most valuable asset. Fostering an inclusive, empowering, and healthy culture is essential to providing a nurturing environment and unlocking the full potential of our teams. We are devoted to cultivating a dynamic, diverse, and continuously evolving workplace where everyone feels valued and inspired.
  
  Integrity, transparency, and strong governance are the pillars and hallmarks of our operations. We uphold the highest ethical standards to ensure our actions remain aligned with our principles. Giving back to society is central to our identity, and we take immense pride in advocating for more equitable and sustainable development through social responsibility and environmental stewardship.
  
  As I pass the torch to our new Chief Executive Officer, I have full confidence in his vision, leadership, passion for innovation, and commitment to our core values. I look forward to embrace together the opportunities ahead, shaping a path of sustained progress guided by our values and united by our purpose, driving the company to even greater heights.
  
  Thank you all for your continued trust and support. I am energised and excited to begin this new chapter, and to witness every step of the extraordinary journey ahead.
  
  PATRICK CHALHOUB
  Executive Chairman
As I transition from my role as Group President to that of Executive Chairman, I would like to take this opportunity to reflect on the past year—a year marked by many challenges and exhilarating achievements—and to extend a warm welcome to Michael Chalhoub, our newly appointed Chief Executive Officer as he embarks on an exciting new chapter of leadership.

Over the past year, our region has undergone profound transformation and development. Yet, we faced numerous array of geopolitical uncertainties, unrest, and hardship. We extend our deepest sympathy and unwavering support to all those affected.

In the luxury sector, we encountered specific challenges—from global economic volatility to a compression of spending to an evolving regulatory landscape, yet through unwavering resilience, responsible business practices, and steadfast commitment to our core values, we navigated through complexities and identified meaningful opportunities and achieved a reasonable growth.

Our long-term investments in Saudi Arabia have delivered outstanding results, while our operations in the UAE have continued to show consistent momentum. Latin America has emerged as a key driver of our business expansion, and our e-commerce channels have recorded significant growth. These successes are the result of operational excellence, disciplined cost control, and our unwavering focus on customer experience.

Looking ahead, we have outlined a ten-year vision towards 2033—“Bridging Horizons.” This forward-looking roadmap, alongside groundbreaking initiatives such as “Transform Chalhoub,” reflects our commitment to building a resilient, forward looking organisation.

Sustainability is not merely a guiding principle—it lies at the heart of our long-term business strategy. On the road ahead, we remain committed to engaging meaningfully with stakeholders and partners to embed sustainable practices that ensure the Group’s smooth progression into the future, while enhancing the well-being of the communities we serve.

At the core of all our efforts is a simple yet powerful belief: our people are our most valuable asset. Fostering an inclusive, empowering, and healthy culture is essential to providing a nurturing environment and unlocking the full potential of our teams. We are devoted to cultivating a dynamic, diverse, and continuously evolving workplace where everyone feels valued and inspired.

Integrity, transparency, and strong governance are the pillars and hallmarks of our operations. We uphold the highest ethical standards to ensure our actions remain aligned with our principles. Giving back to society is central to our identity, and we take immense pride in advocating for more equitable and sustainable development through social responsibility and environmental stewardship.

As I pass the torch to our new Chief Executive Officer, I have full confidence in his vision, leadership, passion for innovation, and commitment to our core values. I look forward to embrace together the opportunities ahead, shaping a path of sustained progress guided by our values and united by our purpose, driving the company to even greater heights.

Thank you all for your continued trust and support. I am energised and excited to begin this new chapter, and to witness every step of the extraordinary journey ahead.

PATRICK CHALHOUB
Executive Chairman
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- Group Chief Executive Officer message
  
  As we mark 70 years since my grandparents, our founders, Michel and Widad Chalhoub opened their first boutique in Damascus, we find ourselves standing at a pivotal moment in Chalhoub Group’s journey. Our legacy, shaped by a deep sense of purpose and resilience, has guided us through decades of innovation, growth, and commitment to excellence.
  
  This past year marked the transition of leadership within our Group, with my father, Patrick Chalhoub stepping into the role of Executive Chairman and myself stepping into the role of CEO. I am both humbled and inspired to carry forward this extraordinary legacy. As we chart the path ahead, we do so grounded in the principles of servant leadership, empowering our people, fostering collaboration, and always leading with empathy and integrity.
  
  In 2024, despite geopolitical challenges and global market shifts, our Group remained steadfast in our values. We achieved 6.2% growth, expanded into new markets, and strengthened our portfolio through innovative brand launches and operational excellence. Yet beyond financial success, we remained deeply committed to our people and communities, offering unwavering support amid regional conflicts, prioritising wellbeing, and building an inclusive, high-performing culture.
  
  Sustainability remains at the heart of our vision. With the launch of Vision 2033: Bridging Horizons and the enhancement of our Chalhoub Impact framework, we reaffirm our commitment to driving positive environmental and social outcomes across our eight operating countries. We made tangible progress: accelerating our Net Zero roadmap, enhancing emissions tracking, integrating circularity and biodiversity into our value chain, and promoting women in leadership.
  
  As luxury consumers increasingly seek meaning, craftsmanship, and purpose, we must remain bold in our ambitions and authentic in our actions. Through operational excellence, innovation, and the power of our people, we will continue to bridge cultures and inspire dreams, building a more sustainable, inclusive, and impactful future for all.
  
  With the launch of Vision 2033: Bridging Horizons and the enhancement of our Chalhoub Impact framework, we reaffirm our commitment to driving positive environmental and social outcomes across our eight operating countries.
  
  MICHAEL CHALHOUB
  Chief Executive Officer
As we mark 70 years since my grandparents, our founders, Michel and Widad Chalhoub opened their first boutique in Damascus, we find ourselves standing at a pivotal moment in Chalhoub Group’s journey. Our legacy, shaped by a deep sense of purpose and resilience, has guided us through decades of innovation, growth, and commitment to excellence.

This past year marked the transition of leadership within our Group, with my father, Patrick Chalhoub stepping into the role of Executive Chairman and myself stepping into the role of CEO. I am both humbled and inspired to carry forward this extraordinary legacy. As we chart the path ahead, we do so grounded in the principles of servant leadership, empowering our people, fostering collaboration, and always leading with empathy and integrity.

In 2024, despite geopolitical challenges and global market shifts, our Group remained steadfast in our values. We achieved 6.2% growth, expanded into new markets, and strengthened our portfolio through innovative brand launches and operational excellence. Yet beyond financial success, we remained deeply committed to our people and communities, offering unwavering support amid regional conflicts, prioritising wellbeing, and building an inclusive, high-performing culture.

Sustainability remains at the heart of our vision. With the launch of Vision 2033: Bridging Horizons and the enhancement of our Chalhoub Impact framework, we reaffirm our commitment to driving positive environmental and social outcomes across our eight operating countries. We made tangible progress: accelerating our Net Zero roadmap, enhancing emissions tracking, integrating circularity and biodiversity into our value chain, and promoting women in leadership.

As luxury consumers increasingly seek meaning, craftsmanship, and purpose, we must remain bold in our ambitions and authentic in our actions. Through operational excellence, innovation, and the power of our people, we will continue to bridge cultures and inspire dreams, building a more sustainable, inclusive, and impactful future for all.

With the launch of Vision 2033: Bridging Horizons and the enhancement of our Chalhoub Impact framework, we reaffirm our commitment to driving positive environmental and social outcomes across our eight operating countries.

MICHAEL CHALHOUB
Chief Executive Officer
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- Group Chief Sustainability Officer Message
  
  At Chalhoub Group, we remain steadfast in our commitment to driving meaningful change through our sustainability strategy, grounded in listening, learning, and adapting. This year, we have refined the Chalhoub IMPACT framework, reflecting over a decade of corporate sustainability experience and the invaluable input of our stakeholders. This evolution allows us to create lasting value for our people, partners, and the planet, ensuring our efforts are not only impactful but deeply integrated across all levels of our organisation.
  
  Our People pillar captures the spirit of empowerment and inclusion that defines Chalhoub Group. We have made significant strides, increasing the representation of women in senior leadership to 40%, expanding paternity leave across eight countries, and earning the Parent-Friendly Label, in addition to our year-on-year recognition as a Great Place to Work across the region. Our enduring commitment to community impact is reflected in initiatives like the Gift of Giving, which has supported over 169,000 students since its inception. Our humanitarian support in Gaza and Lebanon has reached over $1.3 million through contributions from Chalhoub Group and its team members. Moreover, our community engagement and philanthropy efforts have positively impacted over 1.1 million lives across the region.
  
  The launch of Planet 2.0 reflects our elevated environmental ambitions, setting a robust framework for impactful action across our value chain. Aligned with our Net Zero by 2040 roadmap and supported by our cross-functional Environmental Taskforce, we have assigned Stream Leaders to drive accountability and measurable progress across emissions reduction, circularity, and biodiversity impact. We have reduced our Scope 1 emissions by 12% through optimisation efforts and by transitioning 11% of our B2C fleet to electric vehicles. Our Brand Partner Engagement Programme has been pivotal in fostering collaborative strategies with key partners to optimise emissions reduction efforts.
  
  We have expanded the boundaries of retail sustainability through leading projects, targeting Zero Waste to Landfill by 2030. Swarovski's Rental Programme – the first ever global implementation of this initiative, launched by our Group – and the Level Shoes Pre-Loved Buyback Programme launch in KSA are setting new standards for scalable circularity in the luxury industry.
  
  This year, our ecological efforts extend to understanding and enhancing our impact on biodiversity. We have completed the Group’s first FLAG assessment, identifying high-impact materials in our value chain. Complementing this, we launched our first reef restoration sponsorship. This initiative is our first step toward our 2030 goal to restore at least 500 hectares of Life on Land and 500m² of Life Under Water.
  
  Collaboration continues to drive our progress. Through the Unity for Change – أفق initiative, we have established a transformative partnership with leading retailers and developers. This collaboration has resulted in unified sustainability targets for retail and developer spaces, focusing on energy efficiency, waste management, and eco-design. We have developed and deployed a joint eco-checklist to standardise and guide all upcoming retail developments, ensuring alignment with collective goals. We are committed to redefining sustainability practices in the region and leading the industry towards measurable environmental progress.
  
  Governance is a cornerstone of our sustainability strategy. This year, we reached significant milestones in terms of ethics, accountability and transparency. We achieved a 96% completion rate for Code of Ethics Training, introduced our Conflict of Interest Training with a new digitalised reporting mechanism, and performed Anti-Corruption and Human Rights Training for senior leaders. Our Speak Up platform has expanded to include Christofle, our own brand, ensuring that employees across the Group have a reliable channel for reporting and feedback.
  
  As we look to the future, we are inspired by the shared purpose of our teams, partners, and communities. Together, we will continue to elevate Chalhoub Group’s sustainability ambitions, ensuring our business remains a force for good and a driver of meaningful impact. We extend our heartfelt gratitude to our dedicated team at Chalhoub Group, whose unwavering commitment and hard work are the driving force behind our sustainability achievements.
  
  FLORENCE BULTE
  Chief Sustainability Officer
At Chalhoub Group, we remain steadfast in our commitment to driving meaningful change through our sustainability strategy, grounded in listening, learning, and adapting. This year, we have refined the Chalhoub IMPACT framework, reflecting over a decade of corporate sustainability experience and the invaluable input of our stakeholders. This evolution allows us to create lasting value for our people, partners, and the planet, ensuring our efforts are not only impactful but deeply integrated across all levels of our organisation.

Our People pillar captures the spirit of empowerment and inclusion that defines Chalhoub Group. We have made significant strides, increasing the representation of women in senior leadership to 40%, expanding paternity leave across eight countries, and earning the Parent-Friendly Label, in addition to our year-on-year recognition as a Great Place to Work across the region. Our enduring commitment to community impact is reflected in initiatives like the Gift of Giving, which has supported over 169,000 students since its inception. Our humanitarian support in Gaza and Lebanon has reached over $1.3 million through contributions from Chalhoub Group and its team members. Moreover, our community engagement and philanthropy efforts have positively impacted over 1.1 million lives across the region.

The launch of Planet 2.0 reflects our elevated environmental ambitions, setting a robust framework for impactful action across our value chain. Aligned with our Net Zero by 2040 roadmap and supported by our cross-functional Environmental Taskforce, we have assigned Stream Leaders to drive accountability and measurable progress across emissions reduction, circularity, and biodiversity impact. We have reduced our Scope 1 emissions by 12% through optimisation efforts and by transitioning 11% of our B2C fleet to electric vehicles. Our Brand Partner Engagement Programme has been pivotal in fostering collaborative strategies with key partners to optimise emissions reduction efforts.

We have expanded the boundaries of retail sustainability through leading projects, targeting Zero Waste to Landfill by 2030. Swarovski's Rental Programme – the first ever global implementation of this initiative, launched by our Group – and the Level Shoes Pre-Loved Buyback Programme launch in KSA are setting new standards for scalable circularity in the luxury industry.

This year, our ecological efforts extend to understanding and enhancing our impact on biodiversity. We have completed the Group’s first FLAG assessment, identifying high-impact materials in our value chain. Complementing this, we launched our first reef restoration sponsorship. This initiative is our first step toward our 2030 goal to restore at least 500 hectares of Life on Land and 500m² of Life Under Water.

Collaboration continues to drive our progress. Through the Unity for Change – أفق initiative, we have established a transformative partnership with leading retailers and developers. This collaboration has resulted in unified sustainability targets for retail and developer spaces, focusing on energy efficiency, waste management, and eco-design. We have developed and deployed a joint eco-checklist to standardise and guide all upcoming retail developments, ensuring alignment with collective goals. We are committed to redefining sustainability practices in the region and leading the industry towards measurable environmental progress.

Governance is a cornerstone of our sustainability strategy. This year, we reached significant milestones in terms of ethics, accountability and transparency. We achieved a 96% completion rate for Code of Ethics Training, introduced our Conflict of Interest Training with a new digitalised reporting mechanism, and performed Anti-Corruption and Human Rights Training for senior leaders. Our Speak Up platform has expanded to include Christofle, our own brand, ensuring that employees across the Group have a reliable channel for reporting and feedback.

As we look to the future, we are inspired by the shared purpose of our teams, partners, and communities. Together, we will continue to elevate Chalhoub Group’s sustainability ambitions, ensuring our business remains a force for good and a driver of meaningful impact. We extend our heartfelt gratitude to our dedicated team at Chalhoub Group, whose unwavering commitment and hard work are the driving force behind our sustainability achievements.

FLORENCE BULTE
Chief Sustainability Officer
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- OUR COMMITMENT TO sustainability
  
  We strive to create a positive impact on our People, our Partners, and our Planet in the 8 countries where we have a direct presence to contribute to national and global agendas to help meet local environmental and societal needs. This is our Chalhoub Impact.
We strive to create a positive impact on our People, our Partners, and our Planet in the 8 countries where we have a direct presence to contribute to national and global agendas to help meet local environmental and societal needs. This is our Chalhoub Impact.
powering A sustainable future
- Community Engagement & philanthropy
  
  At Chalhoub Group, our commitment to making a tangible difference goes beyond business success. Through our Impact Leaders Programme, we have cultivated a culture where workforces are empowered to take ownership of sustainability goals and drive meaningful change in their communities.
OUR SUSTAINABILITY journey