About the Report

The ESG Report for 2021 is our fifth report where we present our sustainability approach and practices at Allegro. The previous document (ESG Report for 2020) was published in 2021 and covered the year 2020. The report was prepared by a dedicated project team. The content of the report is approved by CEO and the audit of the report by the Audit Committee.

Our ESG Report for 2021 was drafted in line with the Global Reporting Initiative (Core option) standard. In addition, the Report contains TCFD (Task Force on Climate-related Financial Disclosures) and SFDR (Sustainable Finance Disclosures Regulation) indicators as well as in-house indicators. The Report also contains references to the Warsaw Stock Exchange ESG Reporting Guidelines and the European Bank for Reconstruction and Development (EBRD). The Report also lists examples of compliance with and implementation of the Ten Principles of the UN Global Compact and references to the Sustainable Development Goals (SDGs). The Report takes into account all entities taken into account in the Allegro.eu Consolidated Annual Report, i.e. Allegro.pl, Ceneo.pl, eBilet.pl, Allegro Pay and Allegro Finance. The reports are prepared annually. The information in this report covers the period from 1 January 2021 to 31 December 2021 and refers to the year end (in isolated cases indicated in the report, they refer to another period). The data we collected come from all offices in which we operated in 2021, namely Poznań, Kraków, Wrocław, Warsaw and Toruń as well as the warehouses in Adamów in Błonie.

The ESG Report for 2021 contains the following changes from the Report for 2020:

1. The Employees chapter: the number of total employees in 2020 has been retrospectively adjusted to include 130 temporary agency workers in the Błonie warehouse (previously excluded from the headcount of 3,159 reported in 2020).
2. The Environmental Impact chapter: * Please note that in order to be fully compliant with SBTi requirements (Allegro joined the organization in 2021), Allegro supplemented its GHG calculation by the following categories of Scope 3: Purchased Goods and Services (cat. 1), Capital Goods (cat. 2), Downstream Transportation and Distribution (cat. 9) and Employee Commuting (cat. 7) using Screening approach – the methodology adjustment for 2020 was also implemented.

Besides the above, there were no significant report changes from previous reporting periods in the list of material topics and topic boundaries.

When preparing the report for 2021, we used the findings of the project team responsible for the 2020 report. We held two workshops within the organization, attended by more than 30 people.

The participants indicated:

• key Allegro stakeholders
• key issues for Allegro. Key issues were defined in reference to two dimensions:
  • impact: the impact Allegro’s operations have on an issue
  • significant: how significant an issue is for Allegro’s operations

The report contains references to the Sustainability Strategy for 2020–2023, with individual significant issues being described in all parts of the report.

The Allegro Group’s CSR and Sustainability Strategy was created in 2020 as part of wide dialogue and engagement from top management and managers responsible for individual areas. While we were working on the strategy, we held wide-ranging consultations, including meetings with representatives of various business areas. Our strategy is regularly monitored, and its effects are presented to the Board of Directors. The results are presented in annual reports that contain information on sustainability. The strategy was discussed and adopted by the Allegro.eu Board of Directors at the meeting attended by CSR & Sustainability team members.

When creating the strategy, Allegro aimed to organize internal activities and set the course of action and targets for the near future as well as join the efforts to execute the environmental transformation plan announced as part of the European Green Deal and meet the Sustainable Development Goals. Our strategy also supports customers in making responsible choices and merchants in sustainability-related issues. In the document, we also commit to educate current and future entrepreneurs and support SMEs as well as introduce the climate agenda in the supply chain and product deliveries.

We created the sustainability strategy taking into account significant issues for Allegro stakeholders that involve problems identified for both the retail sector and the technology industry.

Based on analyses, we created the significance matrix taking into account both significant challenges for Allegro as well as threats and opportunities arising from economic, environmental and social trends and changes that have an impact on the company’s competitive position as well as economic, environmental and social dimensions that are important to stakeholders, including investors.

Based on significant issues identified by the stakeholders and issues defined as significant in the creation of the Allegro’s CSR & Sustainability Strategy for 2020–2023, we defined a list of significant subjects that should be considered in the report: