Letter from the CEO

Dear Readers,

We are happy to observe ESG issues become increasingly important globally. Responsible corporate governance as well as conscious social and environmental impact management are no longer an option and are becoming a necessity. Here at the Allegro Group, we understand it perfectly and have been consistent in making our responsibility a priority for years, tying our everyday business decisions to sustainability and ESG. We operate according to a specific plan, setting our sights on long-term priorities in line with Allegro’s CSR & Sustainability Strategy for 2020–2023.

Today, our international platform allegro.com and the merger with the Mall Group increasingly position us as an international organization that operates not only in Poland but also across the whole European Union. The Allegro Group already includes a range of popular regional brands such as Mall, WE|DO, mimovrste, CZC.cz and, naturally, Allegro, Ceneo and eBilet, with more than 7,150 experts focused on e-commerce innovation making up a single international team with vast experience. As you can see, we keep raising the bar in terms of both our business and its responsible impact!

While we have already done a lot, we are also aware of the challenges facing our company going forward. Our environmental efforts extend to the entire value chain, across both our operations and the operations of our business partners. We are reducing the environmental footprint of order deliveries to our customers, including by developing sustainable delivery methods such as Allegro One; we create low-carbon logistics centres for Allegro merchants and support the circular economy through certified recycled packaging and eliminating plastic from our logistics centres.

In 2021, we joined the world’s largest initiative for sustainable business, the UN Global Compact, reaffirming our commitment to meeting the 2030 Agenda for Sustainable Development. In October 2021, we implemented our Diversity & Inclusion Declaration, initiating in-house education to raise the awareness of employees in these areas. We also adopted the Human Rights Policy that builds on our previous social impact efforts.

We also set ambitious decarbonization goals as we joined the global Science Based Targets Initiative in September 2021, which brings together companies that seek to reduce emissions in line with climate science. That way, we joined the effort to meet the ambitious targets of the Paris Agreement and limit global warming to 1.5°C. Our climate goals are to reduce our carbon footprint in three areas by 2030 and reflect our willingness to act.

We are pleased to see that our efforts in corporate governance, data privacy and security as well as human resources management were recognized by independent experts, including investors. In September 2021, Allegro.eu moved up as many as two spots in the MSCI rating, from BB to A. Far from being complacent, we have set a goal to ensure at least a majority of independent members on the Board of Directors by 1 September 2026.

While this report is about the year 2021, it would be difficult not to address the situation that has dominated the beginning of 2022. The invasion of the Russian armed forces and war in Ukraine is an event without precedent in the modern history of Europe. Here at Allegro, we stand with Ukraine. In the very first days of the Russian aggression, we made monetary and in-kind donations and organized aid on the Charytatywni Allegro.pl platform, supporting many organizations and aid efforts (such as PCMP, Forum Migracyjne, PAH, Fundacja Świętego Mikołaja, etc.). However, we did not forget about our employees, to whom we also extended our help. Due to the attack on Ukraine, we decided to block new listings from Russia and Belarus as well as stop sales and shipments to those countries. We also launched Allegro.pl in Ukrainian.