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

CHALHOUB IMPACT
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CHALHOUB IMPACT
- Group President message
  
  As we reflect on the past year and set our sights on the future, it becomes increasingly evident that sustainability is imperative in today’s business landscape. Despite the flourishing luxury goods market in the Middle East, with staggering growth projections, we cannot overlook the environmental toll it takes, especially for industries like fashion, which contribute approximately 10% of global C02 emissions. At Chalhoub Group, we are committed to aligning our strategy with the UN Sustainable Development Goals and the UN Global Compact principles, emphasising collaboration and partnership to drive meaningful change.
  
  In 2023. we proudly celebrated remarkable double digit growth compared to 2022, with an impressive surge in E-commerce. Despite facing hurdles, our collective efforts yielded commendable performance, leading us to a cautiously optimistic outlook.
  
  We recognise the significance of understanding and adapting to the geopolitical landscape and regional instabilities. Challenges such as increased costs of doing business, high-interest rates, and elevated inventory levels impacted our profitability in 2023, despite strong turnover growth. However, we have learned from our mistakes, swiftly rectifying, and implementing measures of rationalisation and efficiency. including reviewing our organisational design and structure for optimisation.
  
  In 2023, we enhanced our governance landscape, welcoming a new Group Advisory Board and transitioning to a more diverse Executive Committee, which ensures longterm business continuity and resilience. In addition, our recent collaborative efforts to scrutinise costs enhance efficiency, and fortify organisational structures instill confidence and make us more agile, leaner, and stronger in the coming year.
  
  Several significant achievements were accomplished. In a strategic move to support our sustainability goals, Chalhoub Group secured sustainability-linked loans in collaboration with leading banks in the UAE. We signed ‘Unity for Change’ consortium attesting to the power of collective action towards a common goal. We received certification as a Great Place to Work across all the GCC and India. We launched our ‘Circular Fashion Potential in the GCC’ report, providing insights into consumer attitudes and behaviours, revealing a promising re-commerce market. As luxury brands and retailers adopt circular business models, we recognise our role and the opportunity to lead consumer needs towards a more circular and sustainable future.
  
  Looking ahead to 2024, despite global uncertainties, we anticipate positive developments in the Middle East, driven by solid oil prices, ambitious government plans, favourable demographics, and robust tourism forecasting high single-digit growth.
  
  Our aspiration is to fulfil our commitment to be a responsible business on its way to being Net Zero by 2040 and achieve 40% women in leadership by 2030. Ultimately, our biggest aspiration is to have peace in the region and a bright future for all.
  
  PATRICK CHALHOUB
  Group President
As we reflect on the past year and set our sights on the future, it becomes increasingly evident that sustainability is imperative in today’s business landscape. Despite the flourishing luxury goods market in the Middle East, with staggering growth projections, we cannot overlook the environmental toll it takes, especially for industries like fashion, which contribute approximately 10% of global C02 emissions. At Chalhoub Group, we are committed to aligning our strategy with the UN Sustainable Development Goals and the UN Global Compact principles, emphasising collaboration and partnership to drive meaningful change.

In 2023. we proudly celebrated remarkable double digit growth compared to 2022, with an impressive surge in E-commerce. Despite facing hurdles, our collective efforts yielded commendable performance, leading us to a cautiously optimistic outlook.

We recognise the significance of understanding and adapting to the geopolitical landscape and regional instabilities. Challenges such as increased costs of doing business, high-interest rates, and elevated inventory levels impacted our profitability in 2023, despite strong turnover growth. However, we have learned from our mistakes, swiftly rectifying, and implementing measures of rationalisation and efficiency. including reviewing our organisational design and structure for optimisation.

In 2023, we enhanced our governance landscape, welcoming a new Group Advisory Board and transitioning to a more diverse Executive Committee, which ensures longterm business continuity and resilience. In addition, our recent collaborative efforts to scrutinise costs enhance efficiency, and fortify organisational structures instill confidence and make us more agile, leaner, and stronger in the coming year.

Several significant achievements were accomplished. In a strategic move to support our sustainability goals, Chalhoub Group secured sustainability-linked loans in collaboration with leading banks in the UAE. We signed ‘Unity for Change’ consortium attesting to the power of collective action towards a common goal. We received certification as a Great Place to Work across all the GCC and India. We launched our ‘Circular Fashion Potential in the GCC’ report, providing insights into consumer attitudes and behaviours, revealing a promising re-commerce market. As luxury brands and retailers adopt circular business models, we recognise our role and the opportunity to lead consumer needs towards a more circular and sustainable future.

Looking ahead to 2024, despite global uncertainties, we anticipate positive developments in the Middle East, driven by solid oil prices, ambitious government plans, favourable demographics, and robust tourism forecasting high single-digit growth.

Our aspiration is to fulfil our commitment to be a responsible business on its way to being Net Zero by 2040 and achieve 40% women in leadership by 2030. Ultimately, our biggest aspiration is to have peace in the region and a bright future for all.

PATRICK CHALHOUB
Group President
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- Message from our Chief Sustainability Officer
  
  At Chalhoub Group, we are committed to being part of the solution, proudly sharing our advanced vision to mitigate the impact of climate change. Our efforts are focused on mobilising our resources towards commitments for People, Partners, and Planet, demonstrating our leadership in sustainable practices.
  
  The year 2023 has been pivotal for Chalhoub Group, marking a period of systems strengthening towards our sustainability commitments. It has been a year dedicated to building up and reinforcing both existing and new policies and processes. This foundational work sets the stage for the following year, which will be a year of stabilisation. During this time, we will evaluate the adoption of policy changes and initiatives by our team, suppliers, and partners, ensuring that our sustainability efforts are deeply integrated and effectively implemented across the board.
  
  In 2023, we consolidated our governance structure by the establishment of the ESG and Remuneration Committee which acts as a sounding board to challenge assumptions and provide valuable external perspective.
  
  We have established an Environmental Task Force, composed of dedicated stream leaders with clearly defined objectives closely aligned with our science-based carbon reduction targets. Simultaneously, the Diversity, Equity, and Inclusion (DEI) Group Priority Task Force has concentrated on advancing diversity and inclusion, significantly bolstering ourorganizational culture. Both cross-functional bodies play integral roles in further embedding our strategy, actively engaging internal stakeholders, and holding them accountable.
  
  In addition to these efforts, in the realm of ethics, we conducted 29 ‘Speak Up’ road shows across the region to ensure comprehensive coverage and awareness, and we extended the reach of Speak Up to Christofle globally. Furthermore, our progress in DEI initiatives has been notable, as we successfully achieved our target of having 32% women in leadership roles.
  
  During COP28, our Group led the way with impactful initiatives that included forging the “Unity for Change”, a partnership with major retailers and developers to drive collective environmental objectives and targets. We signedsustainability-linked loans with major banks in the UAE and launched a supplier engagement programme to tackle scope 3 emissions.
  
  We are transitioning towards a ‘value-chain’ approach to corporate sustainability. This approach moves beyond control-focused strategies, pushing our boundaries to encompass broader impacts. The supplier engagement program will target our highest emitting and highest expense suppliers through training modules, data collection, and analysis across scope 3 emissions, which include goods and services, capital investments, commuting, and other categories. This initiative reflects our commitment to leading a Net-Zero future across all our supply chain.
  
  Our achievements within Chalhoub Impact this year underscore our dedication and strides in sustainability. We extend heartfelt gratitude to our partners and suppliers for their unwavering collaboration and commitment to our sharedsustainability endeavours. A special appreciation goes out to our dedicated team at Chalhoub Group, whose tireless efforts form the backbone of our sustainability accomplishments.
  
  FLORENCE BULTE
  Chief Sustainability Officer
At Chalhoub Group, we are committed to being part of the solution, proudly sharing our advanced vision to mitigate the impact of climate change. Our efforts are focused on mobilising our resources towards commitments for People, Partners, and Planet, demonstrating our leadership in sustainable practices.

The year 2023 has been pivotal for Chalhoub Group, marking a period of systems strengthening towards our sustainability commitments. It has been a year dedicated to building up and reinforcing both existing and new policies and processes. This foundational work sets the stage for the following year, which will be a year of stabilisation. During this time, we will evaluate the adoption of policy changes and initiatives by our team, suppliers, and partners, ensuring that our sustainability efforts are deeply integrated and effectively implemented across the board.

In 2023, we consolidated our governance structure by the establishment of the ESG and Remuneration Committee which acts as a sounding board to challenge assumptions and provide valuable external perspective.

We have established an Environmental Task Force, composed of dedicated stream leaders with clearly defined objectives closely aligned with our science-based carbon reduction targets. Simultaneously, the Diversity, Equity, and Inclusion (DEI) Group Priority Task Force has concentrated on advancing diversity and inclusion, significantly bolstering ourorganizational culture. Both cross-functional bodies play integral roles in further embedding our strategy, actively engaging internal stakeholders, and holding them accountable.

In addition to these efforts, in the realm of ethics, we conducted 29 ‘Speak Up’ road shows across the region to ensure comprehensive coverage and awareness, and we extended the reach of Speak Up to Christofle globally. Furthermore, our progress in DEI initiatives has been notable, as we successfully achieved our target of having 32% women in leadership roles.

During COP28, our Group led the way with impactful initiatives that included forging the “Unity for Change”, a partnership with major retailers and developers to drive collective environmental objectives and targets. We signedsustainability-linked loans with major banks in the UAE and launched a supplier engagement programme to tackle scope 3 emissions.

We are transitioning towards a ‘value-chain’ approach to corporate sustainability. This approach moves beyond control-focused strategies, pushing our boundaries to encompass broader impacts. The supplier engagement program will target our highest emitting and highest expense suppliers through training modules, data collection, and analysis across scope 3 emissions, which include goods and services, capital investments, commuting, and other categories. This initiative reflects our commitment to leading a Net-Zero future across all our supply chain.

Our achievements within Chalhoub Impact this year underscore our dedication and strides in sustainability. We extend heartfelt gratitude to our partners and suppliers for their unwavering collaboration and commitment to our sharedsustainability endeavours. A special appreciation goes out to our dedicated team at Chalhoub Group, whose tireless efforts form the backbone of our sustainability accomplishments.

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
  
  The Group is committed to identifying the socio-economic needs of the societies where we operate so that we can engage our team members in meaningful & charitable initiatives that not only serve humanity, but contribute beyond relieving negative impact, aiding in crisis relief, medical research and supporting the sustainable development of our communities.
OUR SUSTAINABILITY journey