Risk management

Although e-commerce is more green than traditional forms of retail, we are aware that the Group’s operations pose a negative environmental impact (e.g. CO2 emission, packaging waste). The growth of our business, without implementing carbon emission and energy reduction programmes, as well as sustainability initiatives, could result in a negative environmental impact. The new regulatory framework related to the EU Green Deal and environmental transition may imply further obligations on retailers and possibly on other entities. The ongoing climate changes have the potential to generate substantive changes in operations, revenue or expenditure. Carbon-neutral initiatives and sustainable technology solutions, e.g. sustainable packaging, may increase the costs of our operations.
 

More about risk management in section The environment and climate

 
Read more about TCFD in the Risk Management, or Climate under Control section.

The Group's brand may be adversely affected if its public image or reputation is tarnished by negative publicity. Product recalls, product liability claims, breaches of corporate social responsibility, the presence of counterfeit goods that violate the Group's terms and conditions or other fraudulent activity in the Group's e-commerce marketplace that is not detected by its anti-fraud technology could significantly harm the Group's reputation and business. User complaints or negative publicity about the Group’s websites, products, delivery times, returns processes, the working conditions of its employees (or those of the employees of any of its subcontractors or suppliers), user data handling and security practices or customer support, including on internet-based platforms such as blogs, online ratings, review services and social media websites, could have a significant negative impact on the Group's reputation and on the popularity of the Group's websites.
 

More about risk management in section Customers at the centre of attention

The control and prevention mechanisms of the Group's compliance structure might not be sufficient to adequately protect the Group from all human rights violations such as unequal employee treatment (hiring, remuneration, training and promotion, etc.) or other violations involving third-party partners and suppliers
 

More about risk management in section Human rights

The loss of qualified personnel, high employee turnover or persistent difficulties in filling job vacancies with suitable applicants could have a material adverse effect on the Group's ability to compete effectively in its business and considerable expertise could be lost by the Group or access thereto gained by the Group's competitors. In addition, to attract or retain qualified personnel, the Group might have to offer increased compensation packages and other benefits which could lead to higher personnel costs. Any failure to attract, train, motivate or retain skilled personnel at reasonable costs could result in a material adverse effect on the Group's business, financial condition and results of operations.
The work-related hazards and hazardous situations and the risk of a work-related injury or ill health, including accidents and occupational diseases could also materially adversely affect the Group's business.
The COVID-19 pandemic has profound implications for employees who are required to continue operating in the workplace (especially at the warehouse). Employees working remotely may not have ergonomic and appropriate workspaces at home.
 

More about risk management in sections: Employees or Diversity and inclusion.

The Group may be exposed to incidents of corruption or bribery (kickback, facilitation payment, payment extortion, cyber extortion), conflicts of interests or other inappropriate behaviour, as well as failure to adequately protect customers’ personal data.

More about risk management in section Ethics and Compliance

The Group relies on third-party data centre providers, whose facilities could suffer as a result of a cyberattack. Cybersecurity, private data management and ensuring a sufficient level of security for our infrastructure are important parts of our operations.

More about risk management in section Cybersecurity and personal data protection