To our stakeholders and general public:

I am pleased to confirm that TSUM Kyiv supports the Ten Principles of the United Nations Global Compact on human rights, labor, environment, and anti-corruption.
With this communication, we express our pledge to implement those principles. TSUM Kyiv is committed to making the UN Global Compact and its principles part of the strategy and day-to-day operations in the company.

We recognize that a key requirement for participation in the UN Global Compact is the annual submission of a Communication on Progress (COP) to describe the company’s efforts to enact the Ten Principles. We support public accountability and transparency and therefore commit to report on progress according to the UN Global Compact COP policy. This includes:

• CEO statement expressing continued support for the UN Global Compact and renewing our ongoing commitment to the initiative and its principles.
• A description of practical actions (i.e., disclosure of any relevant policies, procedures, activities) that the company has taken to implement the UN Global Compact principles in each of the four-issue areas: human rights, labor, environment, anti-corruption.

Sincerely yours,

Evgeniy Mamay

CEO

TSUM Kyiv

We are committed to supporting and respect of internationally proclaimed Human Rights and freedoms, and equal treatment of all, regardless of race, color, sex, language, religion, political or another opinion, physical or mental disability, familial status, sexual orientation, age, national or social origin, property, birth or another status.

• Action 1

Health emergencies like COVID-19 pose a life risk to the global society and under such conditions, businesses face the need to address the human right to life (Article 2, Human Rights Act).

TSUM Kyiv complies with all the mandatory restrictive measures of the National Ministry of Health Protection and applies additional solutions like providing employees with a sufficient quantity of free COVID-19 tests (PLR, IFA, and Express testing) and conducting vaccination events in the office for the employees, their families, and friends.

From mid-2020 to December 2021 TSUM Kyiv provided 802 free check-ups (PLR – 391, IFA – 76, Express testing – 335). During the same period, 1197 people were vaccinated.

• Action 2

According to the Universal Declaration of Human Rights, everyone has the right to education. As it is stated in Article 26 (UDHR), technical and professional education shall be made generally accessible. Our team agrees that professional knowledge must be well articulated and available to the public.

In 2021 TSUM Kyiv launched the educational project TSUM Kyiv Academy, which provides insights and fashion retail expert experiences. At the moment, the project is at the piloting stage. 138 employees are enrolled and testing the online platform.

TSUM Kyiv recognizes the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work and implements of all related principles responsibly.

In the light of recent events, we have revised working conditions and adapted them to the new environment. As working from home helps to prevent the spread of COVID-19, TSUM Kyiv allowed employees to work remotely, if their activity does not require a mandatory presence in the Department Store.

In sustainability development, environmental responsibility is considered equivalent to social. TSUM Kyiv complies with the need to address human and ecological wellbeing and drives innovations as well as best industries practices to reduce Scope 1 emissions.

• Action 4

Fashion Industry Charter for Climate Change (UNFCCC) recommends shifting to electric vehicles to decrease direct emissions produced by sources controlled or owned by a company.

In 2020 in partnership with BMW Ukraine, TSUM Kyiv has launched CO2-free delivery across Kyiv. Delivering goods from the online store on BMW i3 electric vehicle has enabled us to cast aside the fuel transport that the company previously used. We continue to use this CO2-free delivery up to this day.

• Action 5

TSUM contributes to the creation of the necessary infrastructure to make the use of electric vehicles more convenient for the residents of our city. In January 2021, on the second parking level of the Central Department store, we introduced 4 charging lots for electric vehicles which are free to use by the customers of parking.

• Action 6

Planetary boundaries require us to rethink how we consume natural resources. TSUM Kyiv prevents valuable materials from ending up in landfills by applying a waste collection system for recycling. Presently, we sort for recycling 5 categories of recyclable materials. We believe that our actions can inspire clients as well. In order to attract our customers to more conscious consumption, from March to April we held a partnership campaign with a startup Ecola, which provides a recycling service.

Our joint action with Ecola worked as an incentive mechanism for more informed customers who buy sustainable brands. When clients bought items with a lower ecological footprint, they’ve received a discount on the collection of sorted recyclables right from their door.

• Action 7

To spread the ideas of sustainable development TSUM Kyiv created an educational coloring book that gives a description of new terms like greenwashing, UN SDG, upcycling, responsible consumption, etc. The book is aimed at children, but we expect it to be enjoyable for parents as well.

In 2021, we released a pilot version, which we gifted to the children of our employees. Also, we’ve distributed these books across the holding company to which the company belongs. In 2022 this book will be adapted for sale and a wider audience.

• Action 8

The sustainability executive developed the assessment tool so that we can highlight sustainable brands. The rating system is based on 10 indicators: commitments, brand reporting, climate action, animal welfare, transparent supply chain, materials and certifications, circularity, partnerships for sustainability, and extra initiatives. More than 200 brands from own-buy were studied using this rating system.

• Action 9

We have improved the system for highlighting sustainable brands, which was previously focused on e-com. In 2021, we launched “Responsible labels” to make it easier for customers to define sustainable items. We plan to use these labels in 2022.

As stated by UN Global Compact, businesses should work against corruption in all its forms, including extortion and bribery. TSUM Kyiv agrees that corruption is an obstacle to economic and social development. Thereby, we conduct the following measures to protect our company we implemented the Compliance Policy, the Code of Ethics and the mechanism of transparent and independent reaction to the requests and/or statements from employees, customers or partners if the information about violations occurs.

• Action 10

We stand for fair competition; therefore, we choose our counterparties on tender terms. TSUM Kyiv Tender Committee serves as a body for transparency and transactions regulation.