X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 17

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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RATIONAL CONSUMPTION OF RESOURCES

130

Developing a responsible supply chain

In June 2020, X5 Group developed and published 
sustainability recommendations for suppliers based 
on an analysis of publicly available research; materials 
from government, public and environmental 
organisations; a supplier survey; and the results 
of open expert hearings.

In 2021, X5 published detailed recommendations on 
sustainable packaging for 13 product categories; we 
worked on the recommendations with manufacturers, 
suppliers, industry associations and the expert 
community, and we received feedback from 23 
partners and 16 experts in total. We also held an open 
discussion of the project that was attended by over 
100 stakeholder representatives. The document 
includes specific examples of both the most and least 
preferred raw materials for packaging. We continue to 
work on refining the recommendations and are open 
to dialogue with all partners in order to share our 
experience for the benefit of the entire market.  

X5 updated its procurement policies in line with its 
sustainability recommendations for suppliers. In 
August, we developed a special training course on the 
topic of sustainable development for X5’s suppliers, 
which is publicly available on the Company’s website. 

X5 Group will keep a record of suppliers that follow its 
sustainability recommendations via a dedicated survey 
on its Supplier Portal (the Company’s official interface 
for supplier relations) and will also focus on raising 
supplier awareness and improving feedback collection 
in relation to sustainability. Going forward, the 
Company plans to verify suppliers’ ESG performance 
on a selective basis by reviewing their public reporting 
and interacting directly with suppliers. In addition, X5’s 
sustainability recommendations are being 
incorporated into joint marketing programmes with 
suppliers.  

We also added mandatory sustainability fields to our 
Supplier Portal. The fields contain information on 
packaging as well as voluntary certification. 

The recommendations do the following:

establish a list of voluntary environmental and social 
certifications for different product categories to 
inform consumers of responsible production 
practices

reflect X5’s vision for sustainable packaging, 
including reusable packaging material, its potential 
to be recycled in Russia, the use of mono-materials, 
reusable packaging and lean design

specify the most and least preferred raw materials 
for packaging

Plans for 2022

In 2022, Pyaterochka will continue to use the smart store 
system in its new stores while upgrading existing stores 
and improving its monitoring of heat and electricity 
consumption. In addition, we will start using a more 
environmentally friendly refrigerant that is slated to replace 
refrigerants based on hydrofluorocarbons (HFCs). In terms 
of energy generation, we are going to prepare a feasibility 
study for the installation of biogas generators at DCs and a 
number of large supermarkets, and we are also going to 
continue developing the use of alternative energy sources, 
including the installation of solar panels.  

We continue to look for ways to introduce greener 
transportation methods across X5. We are converting 
vehicles to natural gas alternatives based on infrastructure 
capacity. We have begun a pilot programme of electric 
and hydrogen-powered trucks, and we have started 
purchasing light trucks in line with our Decarbonisation 
Plan aimed at reducing GHG emissions. 

Concerning waste management, Pyaterochka will continue 
to automate its monitoring of food waste while also 
reducing the overall volume of food waste by increasing 
the amount of non-expired food sent for recycling by 15% 
year-on-year. In addition, we will promote recycling among 
customers by carrying out eco-projects in our stores. 
We will also continue using bags made of at least 35% 
recycled plastic and carrying out our work to introduce 
sustainable/recyclable packaging for private label 
products.  

Perekrestok will also continue its pilot project to convert 
non-expired food into animal feed. The recycling of store 
waste through DCs will continue, and we have already 
introduced a mandatory requirement for all suppliers 
to use recycled plastic for bags.  

In March 2021, after the announcement of sustainable 
packaging guidelines, we began work to introduce these 
guidelines for our private label goods and promote them 
among suppliers. In 2022, we will continue working in this 
direction. 

For consumers, the further rollout of reverse vending 
machines, containers and battery collection points will 
facilitate recycling.   

In 2022, we will continue to educate and enlighten our 
customers about eco-friendly habits. Perekrestok will 
introduce a single collection platform at its stores, as well 
as bins for sorting waste at 400 Perekrestok supermarkets. 
In addition to promoting eco-friendly habits, we plan to 
launch programmes to develop food sharing together with 
partners. Food sharing will support X5’s waste reduction 
and waste management efforts and offers a sustainable 
solution to saving unsold food.   

Looking ahead, we remain committed to expanding the 
use of renewable energy sources in our operations and 
continuing work with partners to reduce Scope 3 GHG 
emissions. 

Reducing consumption 
of disposable plastic

We are implementing a project to promote reusable 
bags and weighing sacks for fruits and vegetables. 
Pyaterochka encourages its customers to buy 
eco-bags made of raw cotton and to use reusable 
weighing sacks for fruits and vegetables by crediting 
double bonus points to their loyalty cards. This is the 
first such circular economy initiative in Russia. 
Pyaterochka and Perekrestok updated the 
requirements for all plastic bags sold at their checkout 
counters, making it compulsory to use a high 
percentage of recycled materials. All of Pyaterochka’s 
new-concept stores have started using shopping 
baskets made of recycled plastics, and all 
new-concept stores will use such baskets from 2020 
onwards. Perekrestok’s transition to similar baskets 
is in progress. Using recycled plastic in baskets is now 
a mandatory requirement for manufacturers engaged 
by all our retail chains. 

In addition to introducing reusable sacks for weighing 
fruits and vegetables and lamps made from recycled 
materials, Pyaterochka has launched a marketing 
campaign conducted in tandem with the Russian pop 
singer the Russian pop singer Glukoza called “Going 
Green Is Easier than It Seems” – the campaign 
encourages the purchase of eco-products, such as 
food containers made from recycled plastic as well as 
water bottles. 

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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HEALTH

131

Perekrestok expanded its Green 
Line by 

 items. The Green Line 

range offers products that help 
customers lead a healthy lifestyle 
with foods like gluten-free bread 
and meat alternatives.

121

We promoted healthy lifestyles 
to customers during our Healthy 
Lifestyle Festival, where we 
introduced customers to a 
variety of products in the healthy 
lifestyle category.

Healthy corners and healthy 
shelves can be found at both 
Perekrestok and Pyaterochka 
stores.

1 The healthy lifestyle assortment includes gluten-free, sugar-free, organic, farm-based, natural, 

high-protein, low-calorie and vegan products

2021 highlights

Health

In line with our sustainable development 
strategy, promoting healthy lifestyles has 
become a key part of our retail formats’ 
CVPs.  

This includes increasing the share of healthy 
foods in our assortment and implementing 
specific measures to attract customers’ 
attention to healthy options in stores. These 
initiatives are described in greater detail in 
the Pyaterochka and Perekrestok 
performance review sections (pages 51–57 
and 58-64, respectively) and will be included 
in X5 Group’s 2021 Sustainability Report. 

Medium-term goals for 2023 

50

%

Share of fresh products 
and fruits and vegetables 

UP TO

Expansion of the healthy 
lifestyle assortment¹

Long-term 30x30 goals 

Expand the healthy 
lifestyle assortment

Promote responsible 
programmes and 
principles across the 
supply chain

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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PEOPLE REVIEW

132

People review

Supporting change 

2021 highlights

X5 Group celebrated its 15th anniversary in 2021, which was 
another year of transformation and renewal. Emphasising 
its transition from retail to food, the Company updated its 
name and changed its logo as an indication of the 
importance of sustainability and caring for the community. 
The well-being of staff – health and safety, improved working 
conditions, development and career growth – remains a 
priority for management and HR, in addition to supporting 
the transformation of the organisation’s management 
model.  

The Company is focused on bolstering collaboration 
and synergies among its divisions, improving internal 
efficiency and creating an entrepreneurial environment 
through the expansion of powers and responsibilities 
at all levels of management. Digital tools, ongoing 
automation and advanced HR analytics increased 
the organization’s flexibility and speed in decision-making 
and supported the personalisation of X5’s interaction with 
each group of employees – run, change and disrupt.   

X5’s HR processes are focused on managing the employee 
experience: by identifying needs, providing feedback, 
conducting research and testing hypotheses, we are moving 
towards the high-quality results our workforce expects.   

By taking a systematic, integrated approach to team 
management, applying best Russian and international 
practices and paying careful attention to our people and 
their needs, X5 has become an HR trendsetter and is on 
its way to becoming the best-possible employer for its staff. 

The transition to a new management operating 
model continued to improve the speed and 
precision of operational decisions, both at the level 
of X5 as a whole and in the Group’s individual 
assets. 

X5’s HR function supported the Company’s 
expansion through successful staff acquisition 
and retention in the face of growing competition 
for talent and the restructuring of the labour market. 
In line with its strategy, the Company established 
the new businesses X5 Media and X5 Bank, 
transitioned Chizhik from a project to a retail format 
and integrated Mnogo Lososya into its operations. 

All X5 assets are systematically improving working 
conditions and constantly monitoring market wages 
for line personnel in order to ensure that X5’s offer 
remains competitive. Flexible systems of incentives 
are being developed for various categories 
of employees, and a wide range of benefits 
are available to staff. For example, the retail staff 
of the Pyaterochka and Perekrestok retail formats 
have access to a new benefit: telemedicine.

X5 Group fully adapted its processes in line with 
COVID-19-related working conditions. 

Measures to ensure the safety of employees 
evolved into comprehensive support for the health 
and well-being of staff. The Company has a system 
in place for monitoring the health of employees: 
a set of processes that enables it to receive rapid 
updates about sick employees and their condition 
in every business, region and site. In 2021, 
vaccination data was added to this. 

Thanks to a large-scale vaccination campaign, 
the percentage of X5 staff vaccinated against 
COVID-19 continues to grow. By taking a proactive 
approach to the health of its workforce, X5 was able 
to achieve a lower rate of COVID-19 infection 
among its employees than in the country 
as a whole. 

82.5

%

Employee engagement 

compared with 77.7% in 2020

29.2

%

Net promoter score (eNPS) 
in 2021

rose from 25.4% in 2020

This means that there are more 
people in the Company who see it 
as a good place to work compared 
with those who are not prepared 
to recommend the Company
as a potential employer. 

36

%

Staff turnover 

decreased by 2 p.p.

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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PEOPLE REVIEW

133

2021 highlights

71

%

Share of vacant 
management-level positions 
within X5 Group that were 
filled by internal candidates 
in 2021

43

%

Share of X5 managers 
who are women

men and women follow the same paths 
in terms of career progression

Equal 

Opportunities Policy

In accordance with its 

, X5 guarantees 

employees equal treatment regardless 
of gender.

A pilot programme encouraging entrepreneurship 
was launched for the managers of Pyaterochka 
and Perekrestok stores. The development of an 
entrepreneurial approach aligns the potential 
and interests of store managers with X5 Group’s 
development goals.

X5’s methodology for succession and talent 
development was updated.

To support internal career growth, a page showing 
all vacancies open to X5 Group employees was 
launched on the X5 corporate portal, and 
programmes for the development of a candidates 
pool for all personnel categories continued. 

A single methodology concerning X5’s talent pool 
was put in place for personnel committees. 
Its introduction enables the Company to enhance 
the internal exchange of promising employees 
and to bring to light the potential of top talent 
within X5 Group. 

The Company is making a systematic effort 
to improve the efficiency of the HR function: 
it is automating and simplifying processes, 
switching to electronic personnel document 
management, transferring HR services to a digital 
format and providing platforms and mobile 
applications, and making services available to every 
employee. 

The Company is putting in place a tech-based 
HR platform that makes it possible to quickly reuse 
developments and services from various Group 
divisions. This is how we are creating a single digital 
space with solutions available to functions and 
employees.

HR analytics is becoming more diverse and 
in-depth both at the Group level and across divisions. 
This is helping us improve the quality and impact 
of our decisions. For example, our HR monitoring 
product – a payroll management system based 
on real-time data on the labour market – has been 
incorporated at both Pyaterochka and Perekrestok. 
Analytical tools are being made available to more 
and more managers. For example, our Clue product 
(data-driven personnel management) is already 
available at 100% of Perekrestok stores.  

A joint educational programme called “Innovations 
in Retail” was launched by the National Research 
University Higher School of Economics and 
X5 Group; X5 opened a Retail Data Analysis 
Department in the Phystech School of Applied 
Mathematics and Informatics at the Moscow 
Institute of Physics and Technology.  

In 2021, the Company was, according to Forbes, 
one of 11 platinum employers in Russia; it was also 
among the top 20 most attractive companies 
for IT specialists in the Changellenge rating, 
and in the top 30 employers in the “Best 
of the Best” rating by Future Today. Х5 Group, 
Pyaterochka and Perekrestok took first, second 
and third place, respectively, among grocery 
retailers in HeadHunter’s rating of the best 
employers in Russia.  

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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PEOPLE REVIEW

134

Management model

Declaration on Human Rights 
Protection

Incentives, fair remuneration and working conditions

Every X5 business has its own HR function, which 
reports directly to the respective managing director. 
The work of new businesses is supported by the 
business partnership model. In addition to recruitment 
and onboarding, evaluations, compensation and 
benefits management, as well as personnel training 
and development, the HR function is responsible 
for organisational design, HR brand development 
and internal communications. 

The central offices of X5’s retail formats carry out 
strategic management of HR processes and shape key 
HR planning for their businesses. In 2021, the Company 
continued the trend towards augmenting the powers 
of regional divisions by expanding the range of HR 
processes in their area of responsibility. 

X5 Group has a remuneration and incentives system 
in place that outlines general corporate rules; 
at the same time, the system takes into account the 
specifics of the Company’s retail formats, digital 
businesses and developing assets.   

In the context of our Equal Opportunities Policy, 
we are committed to always ensuring that employees 
are treated equally as well as to providing fair 
remuneration in accordance with qualifications, skills, 
effort and time spent, the complexity of the work 
performed, and the quantity and quality of labour 
invested. Compensation does not depend on age, 
gender, race, religious beliefs, sexual orientation 
or physical abilities. Company-wide guidelines and 
approaches to staff remuneration are set out 
in the X5 Policy on Remuneration.  

In 2021, X5’s retail formats began developing 
entrepreneurial incentive programmes for store 
managers. Entrepreneurial managers have more 
authority and greater opportunities in terms of how 
they manage standard processes. The incentive 
component, which calls for additional remuneration 
in the event the respective store’s financial results 
exceed targets, applies to both entrepreneurial 
managers and store employees. The development 
of an entrepreneurial approach aligns the potential 
and interests of store managers with X5 Group’s 
development goals. 

X5’s Declaration on Human Rights Protection defines 
principles and rules in respect of compliance with 
and promotion of high international standards for 
the protection of human rights at every level of the 
Company’s operations:

As a complement to the Code of Business Conduct 
and Ethics, the Declaration on Human Rights 
Protection is a binding document for all X5 employees.

Prohibition of discrimination and forced labour 

Prohibition of harassment 

Respect for cultural diversity and values

Respect for the right to freedom of assembly 
and association

Occupational health and safety

Code of Business Conduct 
and Ethics

The Company is building a corporate culture based 
on shared values, adherence to ethical standards, 
mutual respect and compliance with legal 
requirements. Our corporate values are respect, 
customer-centricity, honesty and integrity, as well 
as a commitment to excellent performance. These 
values and principles are reflected in the Code 
of Business Conduct and Ethics (the "Code"), related 
policies and procedures, as well as training, evaluation 
and development programmes. The Code of Business 
Conduct and Ethics sets standards of conduct that 
employees are expected to strictly observe in relations 
with customers, suppliers and other employees, as well 
as a set of basic principles that guide our business 
practices.

The HR function supports the Company’s transition 
to a new management operating model: X5’s 
Business Support department set up a dedicated 
Legal Support Centre and established an HR unit, 
a finance unit and a non-commercial procurement 
management unit; the centralisation of HR 
processes at the multifunctional shared service 
centre in Nizhny Novgorod is ongoing.  

Corporate culture and values 

In support of the Group’s strategy, the Company’s 
management model is evolving towards a less 
hierarchical one that provides more freedom and 
authority to X5’s businesses. Based on a common 
strategy, mission and values, X5’s corporate culture 
supports the Company’s evolution. In 2021, the agenda 
for development, incentives, training and 
entertainment programmes and activities included 
the issues of partnership, the quality of collaboration 
between the Group’s divisions, entrepreneurship 
and operating efficiency. 

X5 supports a systematic approach to 
communicating with and informing staff about 
changes and the Company’s operations through 
all available channels. In 2021, COVID-19 vaccination 
as well as support for the transformation of X5’s 
management operating model were key topics 
of communication. 

During the year, the Company conducted a 
communications campaign dedicated to X5 Group’s 
15th anniversary, called “The First 15”. Mindful 
of working in a pandemic, it focused on the health 
and well-being of staff, as the health of the business 
depends on employees’ energy and engagement. 
Another theme of the anniversary year was the 
recognition of employees who have spent at least 
15 years working for X5. 

The X5 Home Office programme for remote and hybrid 
work is being developed: a tool for organising remote 
work on the part of MS teams was launched, as 
was a service for reserving workplaces and meeting 
rooms. The Company began delivering equipment and 
souvenirs to employees from its online store to parcel 
lockers through its 5Post logistics service. The hybrid 
online–offline format opened up new opportunities 
to engage more employees in X5’s traditional 
operations. 

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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PEOPLE REVIEW

135

Plans for 2022

In 2022, the Company will continue to transform its 
management model, including by developing its Board 
of Directors, amending the powers of its collegial 
management bodies and expanding the powers 
of on-site managers.  

X5 will improve its business management flexibility, 
process adaptability and service personalisation 
for both customers and employees. In 2022, the HR 
function will focus on the development of flexible 
resource planning tools, including work with shift 
schedules for various employee groups, the ongoing 
transition to electronic document management, 
the digitalisation of services and process automation, 
and the enhancement of HR analytics.   

Retaining staff and increasing their engagement 
through comprehensive work in all HR areas, from 
improving working conditions to personalised 
onboarding and training programmes, will remain 
a priority for the function. Work will continue on staff 
well-being as part of the Company’s efforts to look 
after its employees and their health. Career 
opportunities will be expanded within various 
X5 assets by means of internal transfers.   

Occupational health and safety is one of the 
most challenging and most important aspects 
of creating a healthy workforce, since the 
average employee spends eight hours a day 
at work.

We are constantly focused on identifying and implementing 
measures to improve our occupational health and safety (OHS) 
practices to create a sustainable culture of safety. In order 
to achieve this, we adhere to the following principles: 

Occupational 

health and 

safety

Approach to occupational health and safety 

1

Be a leader: X5 managers at all 
levels pay special attention to 
OHS issues and set an example 
for employees by adhering to the 
principles of a sustainable safety 
culture; employees are actively 
involved in improving 
occupational health and safety, as 
well as personal and public safety 
at work and at home. 

2

Identify dangers: we seek to 
identify hazards, regularly assess 
occupational risks and analyse 
the causes of and circumstances 
surrounding accidents. 

3

Set goals: we develop action 
plans to mitigate risks to the life 
and health of employees, as well 
as the risks of property damage. 

4

Improve the OHS management 
system: our OHS management 
system complies with national 
standards and practices; we have 
a process in place aimed at the 
continuous improvement of the 
system. 

5

Ensure a safe working 
environment: our equipment, 
premises and workplaces comply 
with current national OHS 
standards. 

6

Improve qualifications: we 
monitor the qualifications of every 
employee to ensure that they are 
in line with their duties; we also 
strive to ensure that employees 
continue to develop their 
professional skills and 
OHS-related knowledge. 

7

Invest in personnel: we incentivise 
employees to comply with OHS 
requirements and to play a role 
in improving the OHS 
management system. 

8

Focus on safety: our employees 
behave responsibly in respect of 
their own life and health and the 
life and health of those around 
them in the workplace. 

Managers at all levels play a leading role in these activities.  

X5 has adopted an OHS Policy. As a responsible employer, we guarantee 
every employee the right to a favourable work environment that meets 
state OHS regulations. Aware of our responsibility to create and maintain 
safe working conditions and to protect the life and health of our employees, 
X5 is committed to carrying out OHS-related activities; in doing so, it is 
guided by the following principles: 

complying with legal requirements 

prioritising the life and the health of employees

continuously developing a culture of safety 

creating and ensuring a safe working environment for suppliers

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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OCCUPATIONAL HEALTH AND SAFETY

136

STRATEGIC REPORT

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SUSTAINABLE DEVELOPMENT

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OCCUPATIONAL HEALTH AND SAFETY

137

Health and Safety 
Manager 

Pyaterochka

(distribution 
centres)

OHS specialists 

Regional OHS 
specialists

Head of Health 
and Safety

Perekrestok

(distribution 
centres)

OHS specialists 

Regional OHS 
specialists

Health and Safety 
Manager 

Agro-Avto 

(transportation)

(transport service)

OHS specialists 

Head of Health 
and Safety

Perekrestok Online 

(online stores)

OHS specialists 

Chief Health and 
Safety Specialist

Perekrestok Vkusov

Senior Health 
and Safety Engineer

 RVI 

(imports)

(hubs)

OHS specialists 

Lead Health and 
Safety Specialist

X5 Technologies

 (IT) 

Other subsidiaries 

Chief Health and 
Safety Specialist

Karusel, Chizhik, X5 
Hyper 

Lead Health 
and Safety 
Specialist

5Post

Head of Health 
and Safety

Synergia 

Head of Health 
and Safety for X5

X5’s OHS organisational chart