Annual Sustainability Report - Portal

Transcription

2012
Annual
Sustainability Report
Contents
04 | Message from Management
06 | Report Building Process
10 | Overview
24 | Corporate Governance
46 | Operating, Business and Financial Performance
56 | Managing Sustainability
102 | Social Balance Sheet Ibase + NBCT 15
107 | Index
116 | Corporate Information
2012 ANNUAL SUSTAINABILITY REPORT
3
Message
from Management
GRI 1.1 | 1.2
We have ended 2012 with a number of achievements to
2012. This unit is the first important facility in support of
celebrate and disclose. The Brazilian economy, though
our growth, and for the coming years we have already
having grown insufficiently, was much encouraged by
planned two additional distribution centers.
consumer spending during the year, which has boosted our performance. Lojas Renner was able to drive its
Another relevant project in support of our growth is the
growth in the industry further by virtue of the solid base
planning of the Shared Services Center (SCS). Created
previously built and in constant development.
in 2012, its implementation will take place over the next
two years, and once concluded it will provide efficiency
An essential aspect in this regard is our attitude,
gains and a greater strategic focus. With support ac-
which is a daily practice among our staff members
tions concentrated in one sole area, our staff members
by means of our Enchantment Philosophy. Having
will be able to drive all of their efforts to the business,
the right people in the right places, always willing to
strategic goals and planned activities.
exceed, to overcome challenges and achieve excellence, enchanting everybody who participates in our
Preparing for the future is already part of our attitude
world, this is essential. This is what defines us, much
and that is why we reap good results from our work
beyond distinguishing us from our competitors, mak-
year after year. In 2012 we achieved 19.3% in sales
ing us a unique company.
growth and 20.6% in operating cash generation. On
the other hand, the investments that maintained this
We also have the Lojas Renner brand, considered the
solid operation rose to R$382.3 million over the year.
most valuable in the retail trade and ranked no. 11 in
Our financial services rose by 19.0%, we obtained the
Brazil by Interbrand. A brand recognized for its close
lowest ever loss rates and increased the Private Label
relation with present-day women, providing quality and
and Meu Cartão card base.
style at competitive prices. And progressively more
widely known and admired by our customers, through
A further highlight of the year and worthy of mention are
the Company’s ongoing expansion. We opened 35
the efforts in integrating Camicado, acquired in 2011.
stores in 2012 only, among Renner, Blue Steel and
Very much in line with the Renner attitude, it adopted
Camicado, most of these in shopping malls.
important differentials in its activities, with personalized
services, a philosophy of excellence in it wares and a
4
This expansion, a part of the Company’s growth strat-
countrywide leader in wedding lists. All of these factors
egy, is supported by other important in-house actions.
favored the acquisition of Camicado by Lojas Renner
Among these we may stress the new fully automated
and expedited the integration process now under way.
distribution center we organized in Rio de Janeiro in
The existing mismatches were already detected and
are being closely monitored by our teams. We hope
to see tangible results in this operation’s synergy and
efficiency during the second half of 2013.
All of these advances and achievements are sanctioned by the Lojas Renner corporate governance. This
responsible and transparent business management is
one of our commitments, and we have therefore adopted the country’s highest level of corporate governance, and we are a part of the São Paulo Stock Ex-
Preparing for the future
is part of our attitude
and that is why we reap
good results from our
work year after year
change’s (BM&FBovespa) Novo Mercado since 2005.
Through our motivation for greater and better performance, we have systematically and continuously improved our structure and practices. In this regard, we
We believe that our market will grow briskly over the
may highlight the creation in 2012 of the Audit and Risk
coming years, not merely because of the country’s
Management Committee, which jointly with the existing
economic activity and the population’s increased earn-
Sustainability and People Committees are advisors to
ings, but also due to the activity’s consolidation. This
the Board of Directors. The committees are extremely
movement in the fashion trade involves chiefly less in-
important as they allow us to detail discussions of rel-
formality and fragmentation. We have before us a very
evant Company topics and to more easily match stra-
important window of opportunity to increase business,
tegic and operating topics.
with clothing purchases in 2013 estimated by Ibope at
R$129 billion.
In our relations with our stakeholders, our attitude is
reflected in our Enchantment Philosophy. Through its
We will continue resilient and committed with our
exercise we are enabled to convert our customers,
growth strategy, as we are certain that it is taking us in
suppliers and staff members into true stakeholders in
the right direction, and we also envisage in the future
the Lojas Renner scenario. This Philosophy permeates
a likely leadership in the activity. Each one of our staff
our relationships and spreads out our Values and the
members, customers and stakeholders is essential to
Company’s commitments among our stakeholders.
achieve the targets that we aspire, and we trust that we
will achieve them with the same determination that has
In this regard, we are fully focused on qualifying and
brought us so far.
managing our suppliers, ensuring that our sustainability
vision and our defense of human rights are also adopted by the Lojas Renner value chain. Among the actions
put in place to ensure this alignment are the Suppliers
Relations Policy, the Suppliers’ Qualifying Program by
Associação Brasileira do Varejo Têxtil (ABVTEX) and
restructuring of Administration Suppliers’ Management
area, started in 2011 and concluded in 2012.
José Galló
Chairman
Claudio Thomaz
Lobo Sonder
Chairman of the
Board of Directors
5
Report
Building
Process
Lojas Renner submits its 2012 Annual Sus-
Some of the information shown here is differ-
tainability Report in which it discloses its
ent from that reflected in the previous report,
achievements and results to its staff members,
chiefly owing to the inclusion of Camicado’s
customers, shareholders, investors, suppliers,
social and environmental indicators, which
society, government and the press. This re-
was acquired in 2011. Should this be the
port includes Lojas Renner plus the Blue Steel
case, explanatory notes will appear in the text,
and Camicado units, as well as Instituto Lojas
tables or graphs regarding such changes.
Renner throughout the country, for the period
GRI 3.10 | 3.11
from January 1 to December 31, 2012. GRI 2.7 |
3.1 | 3.6 | 3.7 | 3.8 | 4.14 | 4.15
With this report Lojas Renner intends above all
to reassert its commitment of depicting to its
The annual sustainability report is published
stakeholders a story of enchantment, to share
since 2010 and serves as a communica-
achievements and to prepare continuously for
tions channel with our relationship publics,
future challenges. To this end, your assistance
and which stresses the Company’s culture,
is always important: send your queries, sugges-
achievements and differentials. In order to en-
tions and comments to relatorio@lojasrenner.
sure a relevant and transparent submission of
com.br or call (51) 3272-2577. The Sustainability
accounts, this publication adopts Global Re-
team will be pleased to provide further informa-
porting Initiative (GRI), version G3.1 interna-
tion or explanations. GRI 3.4
tional guidelines, pursuant to application level
B and the criteria by Associação Brasileira
Materiality Matrix
das Companhias Abertas (Abrasca) and by
This report’s contents is a picture of the Com-
Comitê de Orientação para Divulgação de
pany’s sustainability management and focus-
Informações ao Mercado (Codim). Social and
es on 11 priority topics, jointly defined by Lojas
environmental information are currently sub-
Renner and its strategic stakeholders in 2011
mitted to external examination. Therefore, only
based on the materiality principle.
the financial statements were audited.
3.3 | 3.9 | 3.13
6
REPORT BUILDING PROCESS
GRI 3.2 |
GRI 3.5 | 4.15 | 4.16 | 4.17
The selection of priority topics involved sectoral
3,00
SOCIETY (EXTERNAL)
and comparative studies among companies in the
fashion trade and materiality tests with representatives of our relationship publics. The materiality
test started with 34 topics in line with GRI indicators and proposed as priorities by the stakeholders surveyed. The survey took the form of online
questionnaires that were returned by 564 people.
2,00
The stakeholders with which Lojas Renner has relations was selected based on queries in the Company’s internal areas. Among the criteria employed for
this survey, are the intensity of stakeholder relations
and the impact that the latter may bring about in
conducting business, as well as the influence of op-
1,00
erating activities on these stakeholders. Based on
this database, Lojas Renner invited stakeholder representatives to interviews and round tables in order
to discuss relevant topics and to point out concerns
and suggestions to improve management.
The ensuing materiality matrix was organized in two
COMPANY (INTERNAL)
0
1,00
2,00
3,00
axes. The first was external and consolidated assessments of external stakeholders and comparative and sectoral studies. On the other hand, the
Priority subject 1: Employment
number of workers, turnover,
benefits
Priority subject 7: Child
labor or that analogous to
slave labor
management assessments on the materiality test.
Priority subject 2:
Training and education
Lojas Renner expects to update the matrix in 2013
Priority subject 3: Investment,
purchase practices – contractual
clauses regarding human rights
Priority subject 8: Products
and services – impacts,
reduced impacts, recovered
products and packages
internal axis was based on surveys with staff members, an interview with the chairman and senior
and every two years from then on, save for significant changes in the economic or business scenario, when the survey may be held every year. Always
seeking to improve its practices, the Company intends to go deeper into this commitment process,
including person-to-person surveys in meetings or
panels during the 2013 edition. GRI 4.16
Priority subject 4: Materials used,
conservation of resources, efforts to reduce,
savings in use of materials/recyclables
Priority subject 5: Economic performance
as created distributed value
Priority subject 6:
Emissions, effluents and residues
Priority subject 9:
Occupational health
and safety
Priority subject 10:
Management of impacts
by Company operations
on the community
Priority subject 11:
Diversity and equal
opportunities
7
Commitment by Strategic Stakeholders
Stakeholders
Shareholders, investors and
market analysts
Customers
Professional Staff
Environment
8
REPORT BUILDING PROCESS
GRI 4.14 | 4.15 | 4.16
Detailing
Forms of commitment
5,549 shareholders
Management Report, Institutional Overview, Quarterly Financial
Information, Shareholders' Meeting Attendance Manual,
meetings with shareholders, disclosure of results, Renner Day,
Investor Relations Website, Speak with IR (Lojas Renner site),
Carbon Disclosure Project (CDP)
Women from 18 to 39
years in medium/high
consumer classes
Enchantmeter, Lojas Renner site, Customer Assistance (through
Lojas Renner site), Renner magazine, social networks and
mobile application, Renner Clube das Vantagens, sponsorships
in fashion and cultural events, satisfaction surveys and focal
groups, Eco Estilo project, Mais Eu campaign
14,915 staff members
Ethics and Conduct Code, Renner Welcome Program, Trainee
Program, Fundamental Leadership Program, Learning Managers,
High Performance Group, Renner Academy, Renner University,
in-company MBA, Executive Leadership Program, Internal
communications channels (Canal Renner, Planeta Renner, Planeta
Informa, Vitrine, Líder@Renner, Café com a Diretoria, Reunião de
Ponto de Partida, Palavra do Presidente), in-house campaigns,
incentive campaigns, Enchantment Stories Program, Accident
Prevention Internal Committee (Cipa), SIPAT, 5S Program, HR
Website, Speak to Us (through the HR Website), Relationship
Guidelines, Climate Survey, 360º Assessment, Management
Assessment, benefits and profit sharing
Over one thousand ton
of residues gathered and
correctly disposed, and
575 tCO2e neutralized
Alchemia Bio Line, Solid Residue Management program, Eco
Estilo project, Greenhouse Gas Emissions Inventory
and neutralizing emissions, Efficient ICO2, public
registration of emissions
Detailing
Forms of commitment
Suppliers
636 resale suppliers and
1,481 administration
suppliers
Resale suppliers: Ethics and Conduct Code, Renner Supplier
Relations Policy, Responsible Conduct Commitment Statement,
Agreement, Supplier Relations Website, technical visits, audits,
Crescendo Juntos program, Escola de Costura
Renner program (through Instituto Lojas Renner),
Administration suppliers: Responsible Conduct
Commitment Statement, Agreement
Press and opinion formers
Magazines, newspapers,
TV, radio, online vehicles
Renner Preview, fashion production for editorials,
interviews, releases, press kit
Federal, state and
municipal governments,
associations with focus
on business
Associations: Instituto para o Desenvolvimento do
Varejo (IDV), Associação Brasileira do Varejo Têxtil (ABVTEX),
Carbon Disclosure Project (CDP), Grupo de Institutos,
Fundações e Empresas (GIFE), Pacto Global, Pacto Nacional
pela Erradicação do Trabalho Escravo, Princípio do
Empoderamento de Mulheres. Governments: Rede Parceria
Social, Rouanet Law, Sports Law, Funcriança, Fundo do
Idoso, clothing donations to state and municipal governments
Stakeholders
Government and associations
Communities and social
organizations
Social organizations
supported by Instituto
Lojas Renner and
communities in which the
Company is present
Announcement of support to social projects,
Programa Escola de Costura Renner, Rede Parceria Social,
Programa Escola de Varejo, Projeto Pescar,
Rede Bom Jesus, Programa Estilo Solidário, Rede Parceria
Social, Funcriança, Fundo do Idoso,
Instituto Lojas Renner website and social networks
9
Overview
10
OVERVIEW
With 232 stores and over 14 thousand
employees, the Company is the country’s
second largest fashion retailer
About the Company GRI 2.1 | 2.3 | 2.6 | 2.7 | 2.8 | 3.11 | 4.8
Renner Attitude
Lojas Renner S.A. is the second largest fash-
The Enchantment Philosophy based on three
ion retailer founded in Brazil, active in the re-
pillars (see table in page 13) goes much be-
tail trade since 1965. Known for its pioneering
yond overcoming customer expectations, it
spirit and quality, as well as for its Enchant-
permeates Lojas Renner’s relations with all of
ment Philosophy in customer assistance, it is
its stakeholders. The Renner attitude is applied
one of the fastest growing companies in its
every day by all staff members and in every ac-
field. Its background is marked by a passion
tivity, from managing human resources to the
for overcoming challenges and making things
business and operating areas, also including
happen, an obsession for growth, ethics and
support activities such as IT and Investor Rela-
entrepreneurship and respect for all those
tions. This common view of principles between
which participated in it growth.
employees and the Company is a business differential, as it ensures that efforts are placed to
The Company has been listed in the stock mar-
fulfill the Mission and Vision.
ket for 45 years and since 2005 its equity capital is widely dispersed, with roughly 100% of its
Employees are encouraged to share their en-
shares free floating in the BM&FBovespa Novo
chantment stories by means of a specific in-
Mercado. By late 2012 it had 232 stores under
ternal channel. Since this action was created,
the Renner, Blue Steel and Camicado names,
over 620 thousand stories have been received.
and three distribution centers. Among the di-
The best are selected for the “Enchantment
versity of people and styles that can be found
Stories” book, the second edition of which was
among its over 14 thousand staff members, it
published in early 2013 with 100 stories dating
is easy to recognize a feature in common: the
back to the period between 2006 and 2011.
wish to enchant and to be enchanted.
With 22 thousand copies printed, the book will
be handed out to all current employees and to
new ones during the integration period. The first
“Enchantment Stories” edition was launched in
2006 and contained experiences by employees
since the program’s beginning to 2005. Several
of these stories can also be found in this report,
in the course of its text.
11
Family Management (1912-1965)
1912 Antônio Jacob Renner,
1922 After the First World War, fashion
entrepreneur and innovator, founded a
textile company in Porto Alegre (RS) and
a product that made history in its day, the
Capa Ideal.
and habits changed. It was under these
circumstances that Renner founded his first
point of sales in the capital city of Rio Grande
do Sul, to sell textile goods.
The 1940s With the growing popularity of
electrical appliances and the cinema’s golden
age (which broadened women’s references on
fashion), the Renner company expanded its
product mix and became a department store.
Family and Professional Management (1965-1997)
The 1960s
The 1970s and 1980s
Early 1990s
During the period under the dominance of the spirit of
liberation, with the introduction of the birth-control pill
and the mini-skirt, Renner was also emancipated: in
1965 it became an independent company and two years
later it went public in the Stock Exchange.
The Company opened its first
branches and pioneered by
opening a unit in a shopping
mall and automating its stores.
A new concept marked by a reference to the beauty of top models,
freedom of choice with globalization and less time available for purchases
owing to increased daily working hours and traffic, led to the Company’s
overall restructuring and the adoption of professional management, now
operating as a department store specialized in fashion.
J.C. Penney Management (1998-2005)
1998 J.C. Penney, one of the largest
Early 2000s
retail networks in the United States,
acquired Renner’s equity control in
December of this year, which contributed
to the Company’s large growth.
Committed to developing a close relation with present-day women, the Company started to display
its goods in a coordinated manner, easing choices and optimizing customer time, and tuned to the
movement of universal fashion. This style was refined in 2002 with the Lifestyle concept whereby
collections were according to lifestyle and composed of house brands.
Corporation
(as of July 1, 2005)
2005 On July 1st Renner became
the country’s first company to have
its equity capital widely dispersed,
with roughly 100% of its shares free
floating, following a public offering of
shares owned by J.C. Penney.
12
OVERVIEW
2006 a 2009
2010 The co-branded
Family purchasing power is on
the upswing. Renner is enabled
to intensify its expansion plan
and opens it first stores in the
Northeastern and Northern
regions, in addition to organizing
its Financial Services area.
Mastercard and Visa cards
were launched (the first
Brazilian non-financial
institution to have its private
label card), e-commerce and
new brands.
2011 Keeping up with women in the new millennium –
who require things closer, more practical and quickly – the
Company breaks a record by opening up 30 stores. The
expansion strategy is driven with the opening of specialized
stores, Internet sales and acquisition of the Camicado
network. During the same year Renner is elected Brazil’s
11th most valuable brand by Interbrand, and the best retail
trade in customer assistance by Instituto Ibero-Brasileiro de
Relacionamento com o Cliente (IBRC).
TIMELINE
Renner’s background of events
1996 Inauguration of the
1997 Driven by its Enchantment
Enchantmeter in its stores
in order to monitor quality
in customer assistance and
degree of satisfaction.
Philosophy, Renner expanded its
operations by starting business
in the state of São Paulo, the
country’s chief business region.
Pillars of the
Lojas Renner
Enchantment
Philosophy
Investing and
developing talents
Staff members are being constantly prepared and
encouraged to act independently, to resolve any
problems right away and to ceaselessly seek
to enchant customers.
Customer focus
Customer purchase experience should be unique, which
involves among other aspects store layout, intelligent
assistance avoiding the formation of lines, displaying
goods according to lifestyle for customers to easily find
what they are looking for, the store’s environment and
of course the Enchantmeter (read more in the chapter
on Sustainability/Customer Management in page 84).
Putting the Enchantment
Philosophy into practice
2012
In order to provide support to the Company’s expansion plan,
the Shared Services Center (CSC) and Supply Chain projects
are kicked off, with the inauguration of Rio de Janeiro’s new
Distribution Center. Other highlights are the new web platform
and revamping of the Cartão Renner card.
The Enchantment Stories Program acknowledges and
awards staff members who practice the Enchantment
Philosophy. In addition, the Company’s birthday
is commemorated as Enchantment Day, when
Management employees exchange their office routine
for the store and experience enchantment in direct
customer contact.
13
Mission
GRI 4.8
To be biggest and best department store in the Americas for the middle/high income consumer
segments with different styles, always in the forefront of fashion, quality, competitive prices and
excellence in services rendered, by enchanting and innovating.
Vision
Enchanting everybody is our fulfillment.
Renner Values
Enchantment is Our Fulfillment
People
We put ourselves in the place of our
We hire, develop and retain the best
for the long-term future of Renner, prin-
customers, doing everything for them
staff – staff that like people, who have
cipally through attitudes and examples:
that we would like to be done for us.
a passion for what they do and a shine
an example worths more than a thou-
We must understand their desires and
in their eyes. We work as a team and
sand words.
needs, exceed their expectations and,
our staff have the authority and respon-
so, enchant them. We are not simply
sibility to take decisions. We provide the
Determination to Achieve
employees, but rather enchanters of
same ladder to all our employees so
Exceptional Results
customers. We do not have a Customer
they can rise in the company at a pace
We are responsible for achieving results
Service Desk, because each one of us
equal to their talents, efforts and results.
– not just good ideas. Results are what
is a Customer Service Desk: there’s a
problem – we solve right there and then.
guarantee our investments, give a return
Owners of the Business
to our shareholders, pay our salaries
We think and act as owners of our busi-
and make our growth and long-term
Our Way
ness units, being rewarded as such.
continuity a reality.
We are a cheerful, innovative, ethical,
We have a sense of urgency, attitude
austere, open doors company where
and aggressiveness in seeking the best
Quality
communication is easy and transparent.
practices, constantly alert to all the op-
We develop and implement standards
We do things in a simple and responsive
portunities in the market. We take deci-
of excellence in all that we do, since
way, with much enthusiasm and pas-
sions, running risks with responsibility;
there is room for improvement in all that
sion. Our business is driven by persis-
we accept the errors that come from
we do. Our products and services enjoy
tence, creativity, and optimism, always
moving up the learning curve, not seek-
the highest levels of quality: this is writ-
very close to the market: we adopt a get
ing to blame but to identify causes that
ten into our DNA.
up and go attitude.
must be corrected. We are responsible
We adore challenges: impossible is not a word in our vocabulary,
we just get on and do it.
14
OVERVIEW
THE BEST 2012 ENCHANTMENT STORY
Enchanting any time
On August 9 I was arriving at the store for the opening and noticed a couple talking to the
caretaker of the neighboring building. The caretaker asked at what time the store would
open for business, and when I informed 9 AM, I saw the couple’s frustrated expression.
Questioned on the reason for the inquiry, Karine explained that she and her husband
Alexandre had traveled all night from São Paulo state to Belo Horizonte, as he had passed
in an admission test and had arrived in the city to start working. However, when arranging
their luggage in the car, they had forgotten to load Alexandre’s suitcase, whose only
clothes were those he was wearing, – t-shirt and jeans – and his appointment was just
one hour away. I quickly thought of a way to help this couple. I asked them to wait and
went to my supervisor Luiz Eduardo, to tell him of my wish to enchant them. He readily
agreed to help me. I returned to see the couple and gave them the news: we would
open the store solely for them to do their shopping. Karine and Alexandre looked at each
other with excitement and followed me inside the store. I took them to the Preston Field
sector where they were marveled with the models and they soon selected a look for the
occasion. Alexandre had to leave the store dressed, but the new shirt was wrinkled and
couldn’t let him leave like that. So I decided to iron the shirt. He said that he had never
expected such a special treatment, chiefly at 6 AM. Before departing, Karine thanked me
and regretted that she lived in a small town where there is no Lojas Renner, and said that
she would soon be back at the store.
Denize de Paula da Silva | Store inspector | Shopping Bahia (MG)
ENCHANTMENT STORIES
Market Presence GRI 2.2 | 2.3 | 2.4 | 2.7 | 2.8
Lojas Renner is the country’s second largest
Its activities focus on women from 18 to 39
fashion retailer in terms of gross billings, with
years in population’s medium/high consumer
188 Renner, 4 Blue Steel and 40 Camicado
classes. With its vocation of close relations
stores, a network acquired in May 2011. With
with present-day women and with the slogan
headquarters located in Porto Alegre, state of
“You have your style. Renner has them all.”,
Rio Grande do Sul, over 90% of its stores are in
it provides collections with the most recent
shopping malls, making life easier for custom-
fashion trends, with quality and at competitive
ers with quick access and closeness of other
prices. GRI 2.7
services. Street stores are located in central
urban areas, with an expressive influence and
circulation of consumers. GRI 2.7 | 2.9
15
Lojas Renner
in Brazil
North
GRI 2.5 | 2.7
AMAZONAS
PARÁ
RONDÔNIA
TOCANTINS
ACRE
2
2
1
1
1
Northeast
BAHIA
PERNAMBUCO
CEARÁ
SERGIPE
PARAÍBA
RIO GRANDE DO NORTE
ALAGOAS
MARANHÃO
8
6
2
2
1
2
1
1
Center-West
DISTRITO FEDERAL
MATO GROSSO
GOIÁS
MATO GROSSO DO SUL
6
2
6
2
Southeast
1
1
SÃO PAULO 62
RIO DE JANEIRO 20
MINAS GERAIS 13
ESPÍRITO SANTO 4
Lojas Renner
Lojas Blue Steel
South
Camicado
Distribution Center
16
OVERVIEW
RIO GRANDE DO SUL 23
PARANÁ 13
SANTA CATARINA 10
1
5
3
2
1
2
1
21
4
2
1
1
1
Lojas Renner:
Lojas Renner markets a product mix of 25
thousand item consisting in house brands,
Brazil’s 2nd largest
fashion retailer
third-party brands, licensed goods and imported goods. The 19 house brands include
exclusive apparel items (with 16 brands), foot-
192 stores
wear, toiletry and beauty accessories (each
one of one brand).
GRI 2.2
Among the 16 apparel house brands, 6 represent different lifestyles. Clothing, footwear
and accessories are displayed in the stores
grouped under specific styles: casual, young
188
4
look, neo-traditional, fashion or contemporary.
This model created in 2002 makes selecting
easier when purchasing and provides a practical and pleasant store environment. GRI 2.2 | 2.8
4.7 billion
Brazilian reais in gross revenues for 2012
Stocking the right goods, in the correct
amounts and at the correct time in the right
stores is a challenge overcome by the Company’s integrated and flexible logistics. In addition
to the two Distribution Centers (CDs) existing in
Santa Catarina and São Paulo, in 2012 Renner
20.8 million
cards issued
inaugurated a new CD in Rio de Janeiro in order to comply with its expansion plan. Located
in venue close to important highways and areas that concentrate suppliers, this logistics
structure is supplemented by an outsourced
93%
of its stores in
shopping malls
fleet of vehicles specialized in the retail business, which is a competitive differential.
361.3 thousand m
2
is the total sales area
78 thousand m
2
is the total area of the three
distribution centers
17
Diversification
in specialized
stores,
e-commerce
platform and
acquisitions
contributes to
Renner’s growth
18
OVERVIEW
Ease of purchase terms and specific installment options are assured
over 39 years by means of the Cartão Renner, bringing customers even
closer to the Company and encouraging purchases. The creation of the
Financial Services area back in 2006 intensified Lojas Renner’s activities in this field. In the course of the years, financing sales was supplemented by the provision of personal loans, insurance and capitalization
bonds, by means of the Realize Soluções Financeiras brand and business partners.
Blue Steel is the first Lojas Renner house
brand to have specialized stores. In 2012 a
fourth pilot store was opened in São Paulo
(three others were opened in 2011 in the cities of São Paulo, Belo Horizonte and Porto
e
v
i
t
i
t
e
p
m
o
C
advantages
GRI 1.2
Alegre). This model has been well accepted by
customers and should be expanded in 2013
with the opening of at least ten youth fashion
stores. The YOUCOM brand is scheduled for
launching still this year, replacing Blue Steel as
an independent company. GRI 2.2
Another Lojas Renner growth front has no
frontier restrictions: the e-commerce platform
was completely restructured in 2012, with a
modern layout, improved browsing and the
provision of online services. The product mix
is at the reach of a click, easy exchanges in
the physical stores, discounts and exclusive
purchase terms.
The same diversification and growth logic led
the Company in 2012 to return to the household and decorations area, with the acquisition of Camicado in 2011. The company has
Complete apparel collections
at competitive prices
Coordinated and frequently renewed clothing,
accessories and footwear contribute to a
differentiated customer perception of Renner.
Pleasant and convenient
consumer experience
Brands displayed in stores according to styles make
purchases quicker and more comfortable, helping
customers to select the style that they wish and
encouraging them to come back for new purchases.
Focus dedicated to customer assistance
Cares for a pleasant purchase experience go
beyond customer satisfaction, surprising and
enchanting them.
the largest portfolio in this segment and a style
A solid corporate culture
that is in agreement with Lojas Renner: per-
Principles and value found in day-to-day routine
and in each gesture by staff members are
supplemented by a solid Human Resources policy,
valuing a pleasant environment and a commitment
with team development.
sonalized assistance and a pleasant environment for it customers to experience unforgettable consumer moments. Tuned in to world
trends, it has a product mix with over eight
thousand items and is a leader in wedding list
services. GRI 2.2
Attractive credit options
Special payment terms are provided by Cartão
Renner and other market means of payment,
such as cash, checks, credit cards, and are widely
accepted in the stores.
19
Brands, Goods and Services GRI 2.2
All the brands and goods displayed in the
gether a complete wardrobe in a practical and
stores comply with the Lifestyle concept, house
quick manner, in accordance with their style.
brands meet different lifestyles and regardless
of the collection’s topics, trends in fashion are
The diversity in models and constant renewal
examined and adapted to different lifestyles.
of collections are also part of this enchant-
The brands displayed in a coordinated manner
ment process, embodying international fashion
in the stores is essential to ensure a pleasurable
trends adapted to each lifestyle and to the pref-
consumer experience. Customers may put to-
erences of Brazilian consumers.
The Lojas Renner range of apparel is
organized into 16 house brands, and 6
of these represent different lifestyles:
Youth fashion
(male and female)
Trendy
Attitude
Youth
Connected
20
OVERVIEW
Casual
(male and female)
Neo-traditional
(female)
Casual
Frugal
Practical
Relaxed
Sophisticated
Modern
Cosmopolitan
Professional
Advantages of the Renner Lifestyle...
...to customers
...to the Company
Ease in selecting items
Increase in cross-sales opportunities
Better use of purchase time
Greater inventory turnover without overlapping
of goods
Store with goods for the entire family
Display of footwear and accessories
to complement each style
Less need to reduce prices
Opportunities for increased margins
PREVIEW RENNER
Neo-traditional
(male)
Tailor-made
Traditional
Classic
Tidy
Fashion
(female)
Youth
Sensual
Fashion
Sociable
Contemporary
(male)
Tuned
Modern
Contemporary
Urban
21
Alchemia Bio
line goods
reflect concern
with the
environment
Among other house brands, Alchemia is the Company’s perfume and toiletry brand, with a portfolio for a complete beauty ritual to bring about well
being and self-esteem in women. There are 86 items in this line, in addition to limited editions for commemorative dates and coordinated with
apparel brands intended chiefly fort customers between 26 and 45 years.
Fine perfumes are inspired by the Alchemia Notes line, developed by international specialists in perfume and consisting in three perfumes, which
combine with three apparel Lifestyles. Besides being sophisticated, the
proposal is practical: the perfumes come in 20 milliliter flasks – small,
delicate and ideal for carrying in the purse.
22
OVERVIEW
On the other hand, Alchemia Bio is a distinc-
Personal loans: available since 2006, these
tive line with a touch of sustainability. All of its
are one more example of Lojas Renner’s willing-
goods reflect the concern with the environ-
ness to provide convenience to its customers,
ment when they were created with natural
by meeting their specific needs of small sums.
plant ingredients, with bio-degradable for-
The source is a master agreement with Finan-
mulas and packaged in recyclable materials,
ceira Alfa S.A. and they are provided through
with water-based dyes and Forest Steward-
the Realize Soluções Financeiras brand.
ship Council certification. These goods are not
tested on animals. GRI EN6
Insurance: Jointly with Porto Seguro S.A.,
there are a number of classes such as con-
The target public are mindful women who de-
sumer credit insurance, unemployment, per-
fine their choices to make themselves feel well
sonal loan, card loss and theft, and Seguro
and to benefit society and the environment.
Pessoal Viver Bem. Available in the store net-
There are 17 items dedicated to women’s mo-
work, the policies entitle holders to participate
ments of well being and beauty, including exfo-
in draws for capitalization bonds by means of
liants, moisturizers, body oils, liquid soap and
the Federal Lottery.
invigorating fragrances. In 2012 a special home
line was launched and in 2013 a new refreshing
Capitalization bonds: in a partnership with
fragrance, Verbena, was launched.
Icatu Seguros, these have a 60-month effective
period. Customers save from R$40 to R$400
Financial Services GRI 2.2
per month during 12 months, in addition to run-
Cartão Renner: for 39 years a part of every-
ning in weekly draws of as much as R$1 million.
day life by customers, this card provides five
www.clubedevantagensrenner.com.br/
interest-free installment payments or 8 interest-
Camicado
bearing installments. With it, the Company re-
Camicado is a leading company in Brazil in
mains even closer to its customers by providing
wedding lists and has a complete household
an increase in the number of purchases and the
and decorations product mix. There are a
sum spent in fashion, by virtue of the distinctive
number of items in the bedroom, tableware,
payment terms and participation in the Renner
bath, household utensils and appliances lines,
Clube de Vantagens (Advantages Club).
among which exclusive items. With 40 stores
and one distribution center in São Paulo, the
Meu Cartão: launched in 2010 jointly with
company has a market differential in its excel-
Mastercard and Visa, this card issued by
lent customer assistance and the pleasant en-
Renner Administradora de Cartões de Crédito
vironment in its stores, which provide a plea-
is one further differential. It is accepted in Lo-
surable consumer experience to customers.
www.camicado.com.br
jas Renner, Blue Steel, Camicado and every
store that accepts credit cards, and provides
payment options such as invoices or booklets.
23
Corporate
Governance
24
CORPORATE GOVERNANCE
Lojas Renner belongs to the
BM&FBovespa Novo Mercado and has
100% of its equity capital widely dispersed
Relations based in ethics and respect, this proposition
Instituto Brasileiro de Governança Corporativa (IBGC).
served as guidance to Lojas Renner ever since its first
Moreover, it is a part of the São Paulo Stock Exchange’s
years of activities and has let its imprint in its business
(BM&FBovespa) Novo Mercado, which includes compa-
governance. Always seeking to exceed and to serve as a
nies with Brazil’s highest governance level, besides a
reference, the Company has refined its practices in this
number of market ratios (read more in the table).
field since 1967, when it became a public company in the
Stock Market. In 2005 Lojas Renner had its equity capital
A number of policies and guidelines ensure dissemina-
widely dispersed and became the country’s first company
tion of a transparency, financial discipline, internal control
with roughly 100% of its shares free floating.
and professional culture in its stakeholder relations. These
guidelines are based on Corporate Foundations and con-
The Company systematically adopts transparency, equal-
tribute to apply Values on employees’ daily routines. All
ity, accountability and responsibility principles from
of these differentials are shown in the topic that follows.
Number of
shares
% of equity
capital
17,858,786
14.38
BlackRock Inc.
8,999,153
7.25
TRowe Price
6,872,800
5.53
Schroder Investment Management Limited
6,167,300
4.97
Other
84,272,026
62.52
Total
124,170,065
100.00
Equity breakdown on Dec. 31, 2012
(shareholders with over 5% of Company shares)
Aberdeen Asset Management PLC
25
The Code of
Ethics and
Conduct is a
reference for
sustainable
management
Corporate Governance Practices GRI 4.9 | 4.11
The Code of Ethics and Conduct
Each staff member’s conduct is guided by the Code of Ethics and Conduct Created in 2009, it is a reference in the ethical and sustainable management of business, which stresses the Company’s commitment in establishing real partnerships when addressing staff members, suppliers,
customers, government, society, the community and shareholders. The
Code’s review is scheduled for 2013, making it the sole guideline for Lojas
Renner, YOUCOM and Camicado.
Disclosure Policy
Defines guidelines that ensure disclosure of consistent and equalitarian
information in line with best corporate governance practices and trans-
26
parency, and in compliance with provisions in
Brazilian legislation and those by Comissão de
Valores Mobiliários (CVM). Based on this policy,
the Investor Relations area defines relationship
practices with the capital market.
Relevant Event Disclosure Policy
Aspects that materially affect business, such
as Shareholders’ Meeting resolutions and
those by governance bodies, and exceptional
Key
Corporate
Governance
Practices
political or financial and economic conditions,
should be informed quickly and clearly to the
market. The Relevant Event Disclosure Policy
Novo Mercado
ensures that this should occur, when it defines
100% free float
rules and criteria for this kind of situation. The
Investor Relations area is responsible for implementing these guidelines.
Majority of independent board
members (75%)
Board of Directors Committees
Arbitration Clause
Arbitration Chambers are a much more agile
mechanism to resolve conflicts than lawsuits
in a common court of law. A number of legal
provisions and market entities regulate actions
by these Chambers. The Lojas Renner Bylaws provides for adopting this mechanism, by
means of the Novo Mercado Arbitration Chamber, which fact provides greater reliability and
peace of mind to shareholders.
Financial Management Policy
A Financial Policy is being prepared for the
subsequent approval by the Board of Directors, formalizing guidelines that will protect the
Company’s income figures and assets. Once
it is approved, this document will reinforce the
Renner culture regarding responsibility and
concern in managing liquidity and loans, with
a view to preserving the financial health of
Management Committees
Different executives in the office
of chairman of the Board
Permanent Board of Inspectors
Manual for Attendance at
Shareholders’ Meetings
Share Options Purchase Plan
Internal regulations for Boards
and Committees
Formal assessment of the Board
of Directors
Secretaries for Boards and
Committees
Board of Directors Website
Reporting channels
business and improving practices and procedures in this regard.
27
Governance, Risk and Compliance Policy
With publication expected for 2013, a resolution by the Company’s Executive Committee, the Audit and Risk Management Committee and the Board
of Directors is being reviewed. This policy will cover the Governance, Risk
and Conformity (GRC) model, detecting opportunities for gains and reducing
the loss likelihood and/or impact. By exceeding compliance with regulatory
requirements, this model will support decision making by the executive committee in order to progressively improve the Company’s performance. GRI 4.9
Information Security Policy
Policies and
guidelines
ensure a
culture of
transparency
28
Information is a highly valuable asset, which should be employed and protected
appropriately. Lojas Renner has an Information Security Policy (PSI) since 2009,
with the most recent update going back to 2012. The PSI is intended to protect
the confidentiality, integrity and availability of information against a number of
different threats, minimizing risks and ensuring business continuity.
Sustainability Policy
DMA EN
Audit Policy
DMA HR | DMA SO
Under study by the Sustainability Committee
The Audit Policy lists the objectives, attributions
for the subsequent examination by the Execu-
and scope of the Internal Audit department. Lo-
tive Committee and the Board of Directors, the
jas Renner is backed by an internal audit struc-
Sustainability Policy will provide guidelines for
ture and an external audit firm, both of which
managing environmental indicators, sustain-
act independently and are accountable directly
ability commitment by suppliers and improved
to the Audit and risk Management Committee.
relations with staff members and communities.
The Company extends its concern with this veri-
The policy enhances the Company’s vision of
fication to its suppliers, holding regular audits on
the future, acting currently in order to grow
topics such as social responsibility, process and
more and more in the fashion market.
sub-contractors (read more in the Sustainability/
Supplier Chain Management chapter).
GRI 4.11
Supplier Relations Policy
DMA HR | DMA SO
Reporting and Opinion Channel
GRI 4.4
To encourage sustainability in the supply chain,
Renner asserts its commitment with the search
avoid conflicts of interests and define limits and
for excellence and transparency with its stake-
criteria for a fair selection of suppliers. These are
holders, by maintaining a specific channel for
a few of this policy’s objective principles that
anonymous and confidential reporting of inap-
govern the relationship with suppliers, in par-
propriate situations related to bookkeeping and
ticular during the selection process. Conformity
non-bookkeeping aspects, loss prevention,
reduces risks for Lojas Renner, creates benefits
human resources, legal topics, compliance and
for the area and stresses responsibility and
ethics. The competent areas are activated to
transparency in management. Renner also relies
take the required steps. This channel is open to
on the Lojas Renner Suppliers’ Manual and the
everybody and may be accessed for:
supplier relations guide.
Non-bookkeeping topics:
0800 702 0130 (Lojas Renner)
and 0800 077 0077 (Camicado)
Bookkeeping topics:
0800 702 0740 (assistance
is provided by the Audit
Manager or electronically,
not allowing tracing the call
or the reporting party)
Correspondence (care of the
loss prevention manager for nonbookkeeping topics, or the audit
manager for bookkeeping topics):
Lojas Renner S.A.
Avenida Joaquim Porto
Villanova, 401
Postal Code 91410-400
Jardim Carvalho
Porto Alegre (RS) | Brasil
[email protected]
and [email protected]
29
Commitments Assumed
Stakeholder
Performance 2012
Commitment 2013
Shareholders
and investors
Achieved
Operations begun
on Aug. 27.
Stabilizing and migration
of a larger amount of items
(1000% increase) to this unit.
Inauguration of 30 stores, chiefly in the
states of São Paulo and Rio de Janeiro,
and Northern and Northeastern regions
Shareholders and
investors
Partial
24 stores were opened, in
compliance with geographical
priority. The greatest difficulty
was the postponing of
shopping malls.
Opening 26 new Renner
stores and at least 10
Blue Steel stores.
Monitoring performance of three
Blue Steel pilot stores
Shareholders and
investors
Achieved
Besides the three pilot stores
in activity, Renner inaugurated
the fourth specific Blue
Steel store.
Rollout and development
of the youth fashion chain
with a new banner.
Customers
Not achieved
The item’s average price was
much above that of other
t-shirts of the same brand.
Development of a product
line with organic certification
(including organic cotton) for
launching in 2014.
Customers
Achieved
The satisfaction rate of very
satisfied or satisfied customers
in the Enchantmeter survey
was 96.6%.
Maintaining the rate of very
satisfied or satisfied customers
above 96%.
Customers
Achieved
On average 99.4%
of outstanding tickets
in the channel were
answered within 72 hours.
Maintaining 2012 performance,
monitoring commitment
of employees in charge of
managing the Speak to Us
program by concluding tickets.
Staff Members
Achieved
The course was launched
and included in the integration
program for the Procurement
area’s employees.
Continuity of the virtual
course in the Renner
Academy and University.
Target
Inauguration of a new distribution center
in Rio de Janeiro with a total area of 50
thousand square meters
Launching of an organic cotton t-shirt
line of the Blue Steel brand
Raising the level of customer satisfaction
Committing 85% of employees in charge
of managing the Speak to Us program to
meet the customer reply maximum term
of 72 hours
Launching of virtual course for the
Procurement division on the Supplier
Relations Policy
30
GRI 4.17 | SO1 | DMA SO
Stressing its transparency in accountability and the ongoing search for greater and better
performance, Lojas Renner discloses in its Sustainability Report every year the targets and
commitments assumed by the Company. The following is a description of the performance
and outlook for the targets mentioned in the 2011 report.
Target
Development of a course on the
Consumer Defense Code for store
employees
Holding of virtual training for cashiers to
detect counterfeit bills
A 5% reduction in the occupational
casualty and illness rate
Holding of awareness campaigns in
diversity and actions to prepare staff
members to receive and live with diversity
in the work environment
Working jointly with suppliers in order to
improve production and subcontractors
and to seek approval in the Retail
Suppliers Qualification Program
Having 100% of São Paulo suppliers
qualified by the end of the year in the
Associação Brasileira do Varejo Têxtil
(ABVTEX) program
Stakeholder
Performance 2012
Commitment 2013
Staff Members
Achieved
The course was provided
for all Renner stores and held
for 540 employees.
A 50% increase in the number
of participants.
Staff Members
Partial
The contents were defined
but the course is still
to be developed.
Disclosure of course in the first
half of 2013.
Staff Members
Not applicable
Changes in the calculation
methods of these rates
from 2011 to 2012 made
comparisons difficult.
A 5% reduction in the
occupational casualty and
illness rate.
Staff Members
Partial
Five of the nine regional areas
held the training course for
Godparents of Diversity and
trained 80 godparents.
Training of Godparents
of Diversity in all the regional
areas and ensure the
preparation of every employee,
in particular in administration, to
encourage diversity.
Resale suppliers
Achieved
Two live events were held
focused on an Associação
Brasileira do Varejo Têxtil
(ABVTEX) program, with
resale and apparel suppliers,
in addition to visits to resale
suppliers, guidance by email
and notices on the program
and its merits.
Maintaining visits to apparel
resale suppliers and monitoring
qualification of the latter and
pending subcontractors.
Resale suppliers
Achieved
In São Paulo, 69 apparel resale
suppliers were qualified (100%
of this state's active suppliers)
concluding a commitment
process started in 2010.
Maintaining Supplier qualification
in the state of São Paulo
and expanding it to 100% of
suppliers and subcontractors in
other states in Brazil.
31
Target
Ensuring that suppliers exempt
from ABVTEX social responsibility
audits should hold process audits by
an external firm based on three criteria:
purchase volume, score obtained and
date of last audit
Maintaining a specific social
responsibility audit in workshops
Monitoring pre-selected supplier
performance by means of the
Supplier Performance General Indicator
(IDGE), which embodies in its score 25%
in social responsibility
Developing a ratification process
for suppliers of consumables
Increasing by 30% the amount
of recycled residues
Increasing by 20% the collection of
residues in the EcoEstilo project
32
Stakeholder
Performance 2012
Commitment 2013
Resale suppliers
Achieved
138 resale suppliers held
a process audit during the
year, of which 105 were
Approved, 29 Approved with
Restriction and 4 Failed. The
latter are blocked in the Renner
system and cannot receive
new orders.
Maintaining the 2012 target –
audits comply with the Lojas
Renner Supplier Audit Policy.
Resale suppliers
Achieved
During the year 290
workshops were audited,
50 more than in 2011.
Audits in 670 workshops,
covering 100% of those in
the state of São Paulo and 25
located in other states in Brazil.
Resale suppliers
Achieved
The 25 strategic suppliers
selected in 2011 (based on
significance of purchase
volume) were monitored and
reflected IDGE progress from
21.09 points in January to
22.05 at the year's end.
Expanding IDGE monitoring
to 30 suppliers.
Administration
suppliers
Partial
Process defined based on
technical, commercial and
social and environmental
assessment metrics for
suppliers. The GFA held
discussions on scale for 2013,
resulting in R$4.7 million in
reductions with
ratified suppliers.
Developing new suppliers
and implementing
performance assessments
for non-resale suppliers.
Environment
Partial
Lojas Renner obtained an
18% increase in residues
sent to recycling.
Increasing by 10% commitment
by stores in the Solid Residue
Management Program.
Environment/
Customers
Achieved
Awareness campaigns
and the increase in numbers
of stores contributed to
achieve the target.
Increasing by 10% the
collection of residues in the
EcoEstilo project.
Stakeholder
Performance 2012
Commitment 2013
Environment
Partial
The program was developed
and is in the internal
approval stage for future
implementation.
Putting the program
into practice.
Environment
Not applicable
The inclusion of Camicado
in the 2012 greenhouse gas
emissions inventories did
not allow a comparison of
performance from 2011 to
2012 – due to the difference in
emissions standards from one
year to the other.
Based on the results of the
2012 inventories, we will
maintain the 2% reduction
target for the performance
indicator (emissions per m² of
sales area).
Environment
Not applicable
Owing to changes in the
logistics of goods with the
new Rio de Janeiro distribution
center, and the inclusion
of Camicado in the GHG
emissions inventory, it was
decided not to work in 2012
with logistics operators before
stabilizing routes and suppliers.
Developing a management plan
for GHG emissions.
Community
Partial
3 Sewing Schools
were added and 849 women
were trained.
Maintaining 3 units and opening
6 new ones (4 of which being
opened), and training 1000
people.
Supporting at least one job and
income creation project in each of the
states where Lojas Renner has stores,
through Instituto Lojas Renner
Communities and
social organizations
Partial
Instituto Lojas Renner
supported projects in 17 states
and in Brasilia, and had
no project enrollment in
other states where the
Company is active.
Improving performance of
projects supported by Instituto
Lojas Renner, working in a proactive manner and proposing
new units of Escola de Varejo
and Escola de Costura.
Placing 100% of Projeto Pescar
pupils in the labor market, preferably
in Lojas Renner, or motivating them to
enroll in the university
Community
Achieved
100% of young employees.
Maintaining training of
100% of young people for the
Lojas Renner units.
Target
Developing a specific residue
management program for
refurbishing of stores
Reducing emissions in the
performance indicator (emissions
per m² of sales area) by 2%
Maintaining actions focused
on logistics operations
Having 10 Sewing Schools and training
800 people by the end of 2012
33
Governance Structure
GRI 4.1 | 4.7 | 4.10
Renner’s governance structure is based on clearly defined composition attributions and criteria, in which
each body works with a view to ensure the Company’s sustainability and value creation for shareholders.
The governance body is highly qualified and broadly experienced in the market in order to define strategies and ensure the Company’s good performance regarding social, environmental and social and
economic aspects.
To read more on qualifications, see the Reference Form in www.lojasrenner.com.br/ir.
Shareholders’
Meeting
Board of Inspectors
Board of Directors
People
Committee
Sustainability
Committee
Audit and Risk
Management
Committee
External Audit
Internal Audit
Compliance
Chairman
Loss Prevention
Administration
and IR Officer
HR Officer
Procurement
Officer
Executive
Group
34
IT and
Management
Officer
Operations
Officer
Shareholders’ Meeting GRI 4.4 | 4.7 | 4.9 | 4.10
The Shareholders’ Meeting is an important
corporate governance instrument and defines,
among others, the election of Board of Directors
The Boards
GRI 4.2 | 4.3 | 4.7 | 4.10
and Board of Inspectors members, allocation of
the fiscal year’s profits and dividends payouts.
Board of Directors
The Common Shareholders’ Meeting is held
The Board of Directors provides guidance for
once per year and its resolutions depend on the
business strategy, elects and monitors the
absolute majority of votes. Every shareholder
Executive Committee, decides on calling the
has equal voting rights.
Shareholders’ Meeting and defines and selects independent auditors. All of these func-
Lojas Renner practices for calling this meeting
tions are intended to preserve a body inde-
exceeds legal requirements. Besides calling them
pendent from executive activities to guide the
from 30 to 45 days in advance – the legal require-
Company’s strategy in the long run and ensure
ment being 15 days – the Company provides a
the working order of the management control
Shareholders’ Meeting Attendance Manual. The
and accountability mechanisms.
manual provides guidance for attendance by
shareholders, describing the topics subject to
Its regulations provide for holding at least six
resolution and anticipating explanations.
meetings per year. Nonetheless, this body met
13 times in 2012 and closely monitored the
The manual also contains a draft of a power-of-
company’s management.
attorney, in case a shareholder should need to
appoint a representative. This publication was
Currently six of its eight members are inde-
a market pioneer in 2006, clearly demonstrat-
pendent. This presence of board members
ing the desire to exceed shareholders’ expecta-
not related to the Company is highly relevant
tions. Its creation led to Lojas Renner’s acknowl-
in avoiding conflicts of interest and in allow-
edgement in 2007 by means of the Corporate
ing a diversity of visions and contributions to
Governance IBGC Award.
the Board’s activities. Also in line with good
market practices, the chairman of the Board
of Directors cannot accrue the office of CEO.
The Board of Directors
has six out of eight
independent members
35
Board of Directors Members on December 31, 2012
Name
Age
Office
Date of first election
Claudio Thomaz Lobo Sonder*
70
Chairman of the Board of
Directors
04/02/2007
Egon Handel*
73
Vice Chairman of the Board of
Directors
04/30/1991
José Galló
61
Board Member
04/26/1998
Pedro Pezzi Eberle*
64
Board Member
04/02/2007
Deborah Patricia Wright*
55
Board Member
03/31/2008
José Carlos Hruby
68
Board Member
04/11/2011
Flavia Buarque de Almeida*
45
Board Member
10/26/2011
Osvaldo Burgos Schirmer*
62
Board Member
04/20/2012
* Independent member.
The committees that advise the Board contribute for discussions to
be more greatly focused and structured. Hence, the interface between
strategic and operating topics is better coordinated, as each committee specializes and refines discussion on topics such as management,
contributing to excellence in governance practices. The Audit and Risk
Management Committee was created in 2012, which expedites discussions on related subjects and provides guidance to internal and
external audits and the Compliance area. In addition to this one, the
Company has a People Committee and a Sustainability Committee.
Committee Members on December 31, 2012
36
Audit and Risk Management Committee
Osvaldo Burgos Schirmer (chairman),
José Carlos Hruby and Flavia Buarque de Almeida
People Committee
Egon Handel (chairman), Pedro Pezzi Eberle and
Claudio Thomaz Lobo Sonder
Sustainability Committee
Deborah Patricia Wright (chairwoman),
José Carlos Hruby and Clarice Martins Costa
Board of Inspectors
GRI 4.6
The Board of Inspectors is one more monitoring instance for the Company’s
management, with the chief purpose of ensuring the ethical conduct of business and the scope of the established plans. It is bound to report its activities
to the Shareholders’ Meeting, and in order to inspect other governance bodies it cannot be formed by Board of Directors members, Executive Committee officers or other Renner staff members. It met nine times during 2012.
Board of Inspectors Members on December 31, 2012
Name
Age
Office
Date of first election
Francisco Sérgio Quintana da Rosa
68
Chairman of the Board of
Inspectors
09/01/2005
Helena Turola de Araujo Penna
38
Board Member
09/01/2005
Isabel da Silva Ramos Kemmelmeier
38
Board Member
03/21/2006
Ricardo Gus Maltz
54
Substitute
04/22/2010
João Luiz Borsoi
75
Substitute
04/15/2009
Roberto Frota Decourt
40
Substitute
04/22/2010
Executive
Officers serve
as examples
in encouraging
Renner Values
Executive Committee
The Executive Committee is empowered to manage the Company.
Much more than defining plans for putting in practice the guidelines
established by the Board of Directors, it works very closely with staff
members. The executive officers are accessible and promote Renner
Values by means of examples. Hence, they are the first ones to do their
best for the Company to achieve everything that it has planned.
As in the Board of Directors, the Executive Committee is advised by
committees that qualify resolution and expedite decision making. Currently there are the following Committees: Losses, Real Estate, Corporate Ethics and Executive.
37
Breakdown of Executive Committee on December 31, 2012
Name
Office
Age
José Gallo
Chairman (since 1991)*
61
Clarice Martins Costa
Human Resources Officer (since 2006)
59
Haroldo Luiz Rodrigues Filho
Procurement Officer (since 2008)
51
Paulo José Marques Soares
Operations Officer (since 2010)
44
Adalberto Pereira dos Santos
Administration and Financial Officer (since 2010)
52
Emerson Silveira Kuze
Information Technology Officer (since 2012)
40
* Elected Lojas Renner’s superintendent on September 30, 1991 and elected CEO on March 15, 1999.
Management Compensation GRI 4.5
The Company’s compensation is based on the
On the other hand, the Executive Committee’s
following assumptions: the creation of sustain-
compensation is defined by the Board of Direc-
ability and long-term values, business goals and
tors supported by the People Committee, the
strategies, best market practices, Vision, Mis-
floating portion is directly related to achieving pre-
sion, and Renner Values. These foundations are
viously established goals, and total compensation
intended to ensure a policy to attract profession-
also includes a benefits package and the Stock
als with competencies and values in line with the
Option Purchase Plan. Hence, compensation for
Company, and to motivate them to develop their
performance by executive officers is closely relat-
careers in recognition of individual performance.
ed to the objectives created for the year (goals) as
well as longer term ones (action plan). The Board
The Board of Director members’ compensation
of Inspectors members have a fixed compensa-
includes a fixed portion that is competitive with
tion base on that of executive officers.
market practices and a floating portion, encouraging their effective participation.
Shares in possession of Renner board members
and executive officers on December 31, 2012
Board of Directors
Executive Committee
Board of Inspectors
Total
38
Number of
shares
% of equity
capital
76,001
0.06
407,000
0.33
0
0.00
483,001
0.39
Renner seeks
the creation of
sustainable and
long-term value
To read more on Lojas Renner’s corporate governance bodies, such how
it operates and breakdown, see the Reference form and the By-laws at
www.lojasrenner.com.br/ri
www.lojasrenner.com.br/ir.
Strategy and Management
GRI 1.2 | 4.7 | 4.10
Committed to constantly overcoming chal-
the Internal Audit, Compliance and Loss Pre-
lenges and achieving exceptional outcomes,
vention areas, the Company retains external
Lojas Renner devises its strategies in line with
audit services. All the efforts in order to detect
the Values and principles that served to guide
and mitigate risks likely to harm Lojas Renner
it throughout its existence. Simplifying opera-
are coordinated by the Audit and Risk Man-
tions, valuing its internal stakeholders, training
agement Committee, created in 2012.
new leaders, adjusting to consumer requirements in order to enhance the purchasing ex-
Prosperity of Company business depends on
perience, strengthening the supply chain and
consumers’ buying power. Hence, market risks
increasing productivity are some of the Com-
likely to affect the pace of the economy and
pany’s objectives.
availability of income by the population, are the
most relevant to management. These include,
GRI 1.2
for example, instability in the Brazilian reais vs.
A cross-functional structure is in charge of risk
US dollars exchange rate, restrictions on over-
management at Lojas Renner. In addition to
seas remittances, government interference in
Risk Management
39
the domestic economy that may upset vari-
stakeholders; creation of open conflicts (with
ables such as interest rates, inflation and taxes,
customers, officials, suppliers, journalists,
changes in regulations for extending credit,
community, investors, etc.); exposure of con-
among other.
tradictions between Values and a practical
stance; financial losses; depreciation of assets
In 2012 the Information Security (IS) area was
and of shares; lawsuits claiming indemnities.
restructured and assumed a managerial position in the Company, with structure apart from
Business Continuity Management
the Information Technology area. The IS area’s
GRI EC2 | DMA EC
mission is to protect company information, man-
Business Continuity Management (GCN) is dedi-
aging security risks by maintaining them within
cated to detecting potential threats to the avail-
acceptable levels.
ability of the Company’s operating processes
and the likely impacts on business should these
Crisis Management
GRI 1.2 | 4.11
threats become reality, and the definition of con-
The Communications in Crisis Situations Manual
tingency strategies and monitoring of the Busi-
defines processes for Lojas Renner to preserve a
ness Continuity Plan’s (PCN) effectiveness.
responsible posture in crisis situations, in particular
with regard to its positioning with the press. This
The PCN was devised based on the Business
attitude stresses the application of Values in day-
Impact Analysis, which relates the financial im-
to-day life and reduces any likely friction in its repu-
pact per hour of downtime to each business
tation and relations with publics of interest. This
process. The calculation included the value of
document was devised jointly by the Corporate
compensation, costs and benefits per area and
Marketing the press relations areas, with involve-
in some cases the image value and percentages
ment by other departments, among which Loss
regarding non-compliance fines. The plan pro-
Prevention, Procurement, Legal Counsel, Human
vides for actions to ensure the continuity of op-
Resources, the Controller, Financial Services, Infor-
erations, should employees not be able to use
mation Technology, Information Security, Logistics,
the Company’s headquarters owing to physical
Administration Suppliers’ Management, Investor
access restrictions, lack of electricity (blackout)
Relations and Architecture and Engineering.
or adverse weather conditions.
This manual’s printed version is handed out
Furthermore, the Information Technology area
to each manager when inaugurating stores.
has a disaster recovery environment dedicated
Should a crisis situation occur, the Commu-
to the data center, which includes two data cen-
nications in Crisis Situations Committee is
ters located in different spots and that replicate
in charge of devising the strategy, response
the Company’s critical services. A testing and
and positioning. Among the risks that Lojas
simulation routine is under implementation in
Renner may seek to mitigate with this model
order to ensure this plan’s efficacy, pursuant to
are listed: upsetting of the corporate image
practices required by the Company’s PCN.
and reputation, discredit to the Company
and to it spokespersons before its strategic
40
Fighting Corruption and
Money Laundering
GRI HR3 | HR6 | HR7 | HR8 | SO2 | SO3 | SO4 | DMA HR | DMA SO
Lojas Renner rejects any practices contrary to
Besides receiving a copy of the Renner Code
legislation in force and to good market prac-
of Ethics and Conduct on being admitted, em-
tices. In order to fight corruption and money
ployees are submitted to virtual courses that
laundering, the Company is always concerned
stress Values and the responsible conduct
in detecting and mitigating factors that facilitate
expected by the Company. In 2012, Lojas
criminal practices. To this end, it discloses ethi-
Renner staff members trained in the Renner
cal conduct standards and provides specific
Code of Ethics and Conduct virtual course
training to it staff members, confirm custom-
rose to 79% of the body of staff members.
er documentation and monitors operations.
Should it detect a risk situation, the Compli-
In 2012 Lojas Renner also held the Ethics and
ance area will investigate and submit results of
Fraud Workshop, involving 21 leaders. The
this examination to senior management.
choice of public was based on the understanding that the Renner Leader is the chief
The Conheça seu Cliente (Know your Cus-
person responsible for promoting ethics in the
tomer) practices with this purpose deserve to
work environment and for caring for Company
be mentioned in the internal control structure,
resources, serving as an example for all other
which since its acceptance and in the course
employees. Aspects were discussed during
of entire customer relationship, have allowed
the workshop such as the concept of ethics
Lojas Renner to know this customer well, if he/
and its relevance to the Company, the im-
she is conformity with legal requisites and may
portance of Renner Leader’s ethical attitude
be of any risk.
in detecting and reducing fraud. This training
course will have new groups every year.
Virtual courses on Code of Ethics principles and anti-corruption aspects
2012
2011
2010
Code of Ethics
80
62
63
Loss Prevention
73
57
82
Prevention of Money Laundering
69
39
48
Code of Ethics
78
74
42
Loss Prevention
54
54
62
Prevention of Money Laundering
35
31
28
(% of employees trained compared to the target public)
Managers (managers
and supervisors)
Non-managers
(other staff members)
41
Intangible Assets
Intellectual Property
Managing Lojas Renner’s intangible assets is
Right people in the right places, passionate over
highly valuable, as it involves aspects inherited
what they do and acknowledged for their distinc-
from the founder and strengthened in the course
tive performance. With this strategy, Renner se-
of almost one century. This is the outcome of an
lects and retains talents and provides everybody
impeccable background of daily practicing the
with the same opportunities for them to grow and
Values and the Enchantment Philosophy.
develop themselves apace with their efforts and
achievements. All the people management prac-
The Strength of the Brand
tices are described in the Sustainability/Employee
Acknowledged by its stakeholders for being tu-
Management chapter.
ned to fashion trends, for having a close relation
with modern women, and transparent in all of its
Technology and Innovation
relations, the Renner brand depicts the concept
Lojas Renner’s operations depend on the
of enchantment. Lojas Renner is constantly lis-
functionality and operating stability of tech-
ted in Top of Mind surveys and has a respectful
nological systems employed at the points of
background, rejecting any non-compliant prac-
sales, in the logistics area and in communi-
tices in connection with human rights related to
cations, besides specific applications for in-
forced or child labor in its operations.
ventory control and the creation of commercial and financial performance reports. In the
course of recent years, the Company invested
in improvements and put in place new information technology systems and equipment,
required to develop the business.
42
GOVERNANÇA
CORPORATIVA
Global Pacts and Actions GRI 4.12
In 202 Lojas Renner decided to undersign the
child or forced labor in its operations and those
Women’s Empowerment Principles (UN Wo-
of its suppliers and sub-contractors is provided
men), the United Nations Organization Global
for in the Code of Ethics and Conduct.
Pact (UNO) and the National Pact for Eradicating Forced Labor, all of which formalized in
During the same year Lojas Renner participa-
2013. This decision was taken following a reso-
ted in the Rio+20 Conference’s Major Group,
lution by the Board of Directors and reflects the
in discussion groups on the empowerment
Company’s convictions in the light of its commit-
of women. This participation is related to the
ment with sustainable business management.
Company’s long-ago commitment with this topic, whether through the activities by Instituto
To Lojas Renner, in addition to being its pre-
Lojas Renner or by adopting the Women’s Em-
ferred public, women are essential in the for-
powerment Principles.
mation of society, reference in the behavior and
conduct of people. Therefore, the ever greater
Participation in Associations
inclusion of women in economic activities is an
Instituto para Desenvolvimento do Varejo
essential condition for creating strong econo-
(IDV): has as its key purpose the contribution
mies, defining more just societies and achieving
to sustainable development of the Brazilian
development goals, sustainability and human
economy and the ethical and formal retail ac-
rights. In this regard, formal concurrence with
tivity. To this end, IDV represents in society 37
the Women’s Empowerment Principles stres-
retail companies in different activities, taking
ses the Company’s culture and is very closely
part in discussions with the public authorities,
related to its strategy.
and also prepares studies and proposals to
GRI 4.13
improve efficiency in the sector. The relation
The Global Pact is a voluntary action that pro-
between Lojas Renner and IDV dates back to
vides guidelines to encourage sustainable
2004, when José Gallo, the Company’s chair-
growth strategy and citizenship by means of
man, was active as one of the entity’s foun-
leaders committed with ten principles. Its gui-
ders. The organization is one of the represen-
delines are in line with the Company’s attitude
tatives of the retail textile business. In 2012,
and practices, including among others, topics
the lack of adoption of safeguards for the
such as dignity at work, transparency in mana-
apparel retail trade was one of the key topics
gement, discussions with the community and
dealt with by the Lojas Renner team with IDV.
respect for the environment.
Associação Brasileira do Varejo Têxtil
The decision to concur with the Eradication of
(ABVTEX): represents the retail trade in rela-
Forced Labor Pact also has a lot to do with the
tions with government bodies, manufacturing
Company’s culture, as the commitment to fight
business, trade entities and the market in general. In this manner it promotes an exchange
43
of experiences and studies on topics that are
relevant to the activity, such as foreign trade,
taxation issues, social responsibilities and
supplier certification. Lojas Renner participates in the ABVTEX Management Committee
(quarterly meetings) and work groups for specific subjects (monthly meetings).
Awards,
Acknowledgements
and Certifications
GRI 2.10
Carbon Disclosure Project (CDP): this is a
non-profit organization with the purpose of
creating a relationship among shareholders
and companies. CDP examines potential risks
and opportunities related to climate change
for participant companies. This is a questionnaire prepared by institutional investors and
addressed to companies listed in the world’s
Interbrand ranking, 11th Most
Valuable Brand in Brazil and 1st in
Brazil’s Retail Trade
chief stock exchanges, in order to disclose
information on climate change policies. CDP
currently represents investors that jointly account for US$87 trillion in transactions. Lojas
Exame 2012 magazine, Best and Largest,
1st place in the Retail class
Renner responds voluntarily every year to the
CPD investors’ questionnaire.
Dinheiro magazine, Among the Best,
1st place in the Retail class
Carta Capital magazine, Most admired
companies in Brazil, 1st place in the
Textile Retail class
Época Negócios magazine, 360th rank,
Best Fashion Company
Capital Aberto magazine, Best Company
for Shareholders, Governance class
DCI newspaper, DCI Award, Most Admired
in the Trade Sector
44
150 Best Companies
in People Practices and 50 Psychologically
Healthy Companies – Gestão RH
Confidence Brands 2012, winner in
Department Store class – Ibope and
Seleções magazine
Among the 10 Most
Admired HRs in Brazil – Gestão RH
Top Consumer 2012 – Excellence in Consumer
Relations and Respect for the Environment
– Consumidor Teste magazine in partnership
with Instituto Nordeste Cidadania
3rd place in the above 10,000 employees
class – Valor Carreira and Aon Hewitt
13th ranking in the list of 50 Best CEOs in
Latin America – Harvard Business Review
José Gallo, Freedom-Businessman –
Instituto de Formação de Líderes de
Minas Gerais
Latin America Executive Team Ranking
Best CEO, 1st place by sell side and by
buy side, Best CFO, 2nd place by sell side
and by buy side, Bet IR Professional, 1st
place by sell side and by buy side; and
Best IR Program, 1st place by sell side
and 2nd place by buy side – Institutional
Investor Magazine
About magazine Popular Vote
Award, Announcer of the Year,
Grand Prix 2012 class; Gold, silver and
bronze in Fashion class; Gold and silver
in Retail class; Gold in Institutional and
Corporate class, totaling eight awarded
commercials or spots
PCI DSS (Payment Card Industry, Data
Security Standard) Certification, market
standard that establishes a security model
to protect confidentiality of customers’ credit
and charge card data
500 largest in the South, 7th ranking
in Rio Grande do Sul and 22nd in overall
ranking – Amanhã magazine
Top of Mind, most recalled brand in
Fenale Apparel Store class (13th time)
and preferred brand in new Top Y class
(young consumers) – Amanhã magazine
Brands for Who Decides, most recalled brand
in Female Apparel and Retail Network, also
the public’s favorite – Jornal do Comércio
newspaper (Rio Grande do Sul)
45
Operating,
Business
and Financial
Performance
46
OPERATING, BUSINESS AND FINANCIAL PERFORMANCE
In a challenging economic scenario,
Lojas Renner raised sales and
operating cash generation
Lojas Renner ended 2012 with a number of
Operating Performance
achievements to commemorate, having in-
Though facing the impacts of uncertainty in the
creased total sales by 19.3% and 20.6% in
economic scenario during the first semester, the
operating cash generation. The expansion
industry as a whole reflected a trend for slight
plan was maintained, in line with long-term
improvement throughout the year. Recovery
planning, and investments totaled R$382.3
of the level of activity resulted chiefly from the
million, directed among others to inaugurate
domestic increase in purchasing power, with
35 stores (Renner, Blue Steel and Camicado).
greater access to credit and job stability.
Expectations for the coming years are that the
Pursuant to the Monthly Retail Survey (PMC)
market will grow briskly, driven by the econ-
by Instituto Brasileiro de Geografia e Estatística
omy’s growth and the population’s increased
(IBGE), nominal retail sales volume and revenues
earnings, and above all by the industry’s con-
rose 8.4% and 12.3% over the year respec-
solidation, reducing informality and fragmen-
tively, while the textiles, clothing and footwear
tation rates. This scenario will provide the
increased 6.4% in nominal revenues. Lojas
Company with a relevant opportunity, albeit
Renner grew 18.0% according to this same indi-
less efficient in the short term, to expand, con-
cator, far from the encouraging results of recent
solidate and also to gain market leadership in
years but still well above the industry’s average,
the near future.
pointing to possible gains in market share. This
distinctive performance is the outcome of the
Company’s culture, determined to achieve exceptional results and focused on quality.
47
The Fashion Market
GRI 2.8
Clothing purchases in 2013 should total R$129 billion,
or yearly per capita expenditures of R$786.39.
Chief consumers...
50.3%
Class
39.7%
class B
40.4%
class C
live in the
Southeastern
region
In July 2012...
38%
of the population seeks to keep
up with fashion and styles
74%
they purchased clothing
and accessories
34%
purchased
footwear
Among those that keep up with fashion...
79%
85%
68%
look for offerings
and discounts
plan carefully the
purchase of costly goods
believe that well-known
brands are better
In the Internet...
40%
69%
Most
purchased
items in
virtual stores
dresses
they are between
25 and 34 years old
belong to class AB
female
blouses
shoes
59%
women
sneakers
41%
men
sandals
Source: Ibope 2012
Shared Services Center
Stores
Implementation of Lojas Renner’s Shared Ser-
There was a record number of store openings
vices Center (CSC) was begun in 2012. The
in 2012, 24 Lojas Renner, 1 Blue Steel and 10
structure will consolidate and standardize
Camicado stores, increasing the Company’s
support processes, leading to efficiency gains
sales area by 14.2%. In terms of productivity, the
and enhanced internal controls. By taking over
average sales by Lojas Renner and Blue Steel
these activities, the CSC will allow the busi-
was of R$9.9 thousand per square meter, and
ness to drive their efforts to strategic issues,
of R$8.5 thousand per square meter Camicado
new projects and challenges. With the struc-
stores. The ceaseless search for efficiency was
turing organized in three stages and estimated
converted into actions in the course of the year,
for conclusion in 2014, the project is in line
such as a new environment and refurbished
with the Company’s strategic plan, in readi-
units, adoption of new visual merchandis-
ness for the vigorous rise in operations by the
ing project and steps to enhance consumers’
corporate structure.
purchasing experience. During 2012, 24 Lojas
Renner stores were remodeled and remained
Financial Services Highlights
open to the public during the work period.
The Cartão Renner card accounted for 52.1%
of total store sales during the year and the rec-
With regard to Camicado, operating integra-
ognized loss percentage was of 2.7%, both
tion efforts required attention during the year.
below the previous year’s figures, of 54.7%
Next, an adjustment in the product mix re-
and 2.9% respectively. The Meu Cartão credit
ceived priority, with increased variety, in partic-
card launched in 2010 ended 2012 with a to-
ular of imported goods. To this end, Camicado
tal of 1.1 million cards issued. With regard to
was enabled to proceed with direct imports, to
personal loans, the default rate dropped, as
take place using the same structure employed
opposed to the market, and stood at 15.5%
for imports of apparel. Projects for Camicado
of the portfolio at the fiscal year-end.
include organic growth, an increased number
of stores and stressing venues in shopping
Know more about the financial services provided
malls. The strategic model is the same as that
by Lojas Renner by means of the Realize Soluções
adopted for retail apparel stores, benefiting
Financeiras brand, in the Profile chapter.
from all of Renner’s accrued expertise.
49
Key Indicators GRI 2.8 | EC1
2012
2011
2010
Total net operating revenues
3,862,508
3,238,543
2,751,338
Total net revenues from sale of goods
3,461,960
2,896,617
2,462,683
400,548
341,926
288,655
Total gross profit
2,228,262
1,842,414
1,541,879
Gross profit from retail transactions
1,845,548
1,521,372
1,280,316
Operating profit after financial income
508,820
475,393
431,771
Net profit for fiscal year
355,401
336,907
308,028
Number of shares at end of fiscal year
124,170
122,821
122,349
Adjusted retail Ebitda
565,591
467,553
384,075
Total adjusted Ebitda
714,449
592,626
505,120
Key Indicators (R$ thousands) – consolidated
Total net revenues from financial goods/services
2012
2011
2010
192
167
134
361.3
318.0
274.7
Average m² per store (thousands of m²)
2.0
2.0
2.1
Same stores growth (%)
8.8
7.2
10.3
20.8
19.0
17.1
1.739
1.904
1.878
Share in sales (Cartão Renner)
52.1
54.7
56.6
Share in sales (0+5)
40.2
42.8
43.6
Share in sales (0+8)
11.9
11.9
13.0
Share in sales (sight)
24.9
23.8
23.4
Share in sales (credit cards)
23.0
21.5
20.0
154.95
145.53
132.16
Company average ticket
111.9
105.01
97.65
Personal Loan portfolio (R$ millions)
112.3
101.1
98.5
82.4
74.6
72.0
Operating indicators – Lojas Renner and Blue Steel
Number of stores
Sales area (thousands of m²)
Number of cards at end of period (millions)
Number of cards issued during period (thousands)
Cartão Renner average ticket
Personal Loan portfolio (present value – R$ millions)
50
Financial and Economic Analysis GRI 2.8 | EC1
Net Revenues from Sale of Goods
Breakdown of net revenues (%)
Result: R$3,462.0 million, a 19.5%
4.6
increase over 2011.
Camicado
Factors: operating actions to enhance
purchasing experience and improve the
95.4
macro-economic outlook.
Lojas Renner
Same stores sales:
8.8% growth over the period.
Gross Profit from Retail Transactions
Result: 21.3% growth for the year, totaling
Factors: operating actions related to the
R$1,845.5 million, with a 53.3% gross mar-
supplier chain, such as support by dedi-
gin from retail transactions, 0.8% percent-
cated teams from Asian suppliers and inten-
age points above the previous year, even
sified three-sided negotiating tools in local
after including Camicado with structurally
procurement, in addition to the lower cost of
weaker margins.
cotton and other fibers.
Operating Expenses
Breakdown of operating expenses (%)
Result: growth in line with net revenues of 19.2%, totaling
R$1,223.5 million at fiscal year-end.
24.0
Future: implementation of Shared Services Center (CSC)
Sales
expenses
and conclusion of Camicado integration should optimize
76.0
operating leverage.
General and
administration
expenses
Adjusted Retail Ebitda
Result: R$565.6 million for the year, a per-
Factors: growth in revenues above rise in
formance 21.0% above that for 2011, with a
costs and strict control of expenses, though
16.3% adjusted retail Ebitda margin, as against
with increased logistics expenses and greater
16.1% for 2011.
profit sharing.
51
Income from Financial Services
2012
2011
2010
382,714
321,042
261,562
91,584
79,635
67,000
171,310
150,485
114,018
Meu Cartão co-branded card
34,417
6,962
-
Personal loans and other financial services
85,403
83,960
80,544
(126,081)
(109,427)
(88,172)
Sales without charges (0 + 5)
(31,965)
(28,282)
(20,948)
Sales payable in 0 + 8 installments with charges
(59,898)
(54,039)
(46,867)
Meu Cartão co-branded card
(15,461)
(2,724)
-
Personal loans and other financial services
(18,757)
(24,382)
(20,357)
(107,775)
(86,542)
(52,435)
148,858
125,073
121.045
20.8
21.1
24.0
Breakdown of income from financial services (R$ thousands)
Revenues, net of funding and taxes
Sales without charges (0 + 5)
Sales payable in 0 + 8 installments with charges
Credit losses, net of recoveries
Operating expenses (Cartão Renner and Financial Services)
Income from financial services
% on Company’s total adjusted Ebitda
Company’s Total Adjusted Ebitda
Result: R$714.4 million, a 20.6% increase
Factors: business scenario and second se-
over the preceding year. The total adjusted
mester sales, end of remodeling process, strict
Ebitda margin was of 20.6%, slightly above the
control of expenses and good income figures
20.5% obtained in 2011.
for Financial Services.
Net Financial Income
Financial income: R$33.4 million, 33.7%
benture issue in 2011 and 2012, by the end
below the preceding year owing to the lower
of part of fiscal benefits in Santa Catarina and
cash level managed during the year and the
by the change in foreign exchange hedging in-
reduced Selic (inter-bank) rate reduced market
struments for imported goods.
rates in general.
Performance: R$50.4 million in net expenses
Financial expenses: R$83.8 million in 2012
for the year as compared to R$2.8 million net
as opposed to R$47.5 million in 2011 – this
revenues in 2011.
increase is justified by a R$600.0 million de-
52
Indebtedness/Net Cash and Cash Equivalents
In June 2012 the Company held its fifth
Indebtedness and cash (R$ millions)
683,7
public offering of common non-convertible
683,3
578,3 644,7
debentures at a br AA+ rating attributed
by Standard & Poor’s. The issue involved
R$300 million, which jointly with the 2011
issue formed the Lojas Renner new equity
363,5
structure. These funds are being allocated
for the Company’s organic growth.
Net cash and cash equivalents: R$38.6
million at fiscal year-end, as compared to
R$215.0 million available in late Decem-
48,7
Total debt
ber 2011.
Cash
2010
2011
2012
Profit for
2012 was
of R$355.4
million, 5.5%
above that
for the
previous year
53
Net Profit
Result: R$355.4 million, with a 10.3% net
Factors: greater financial expenses arising
margin. Compared to the previous year, a
from the new equity structure and increased
5.5% rise in profits and a 1.3 percentage point
depreciation level.
decline in margin.
Performance of Shares
LREN 3 x IBOV
LREN 3 + 64.7%
Having appreciated 64.7% during the year,
Lojas Renner ended the period quoted at
R$79,75. The average daily volume traded
rose to R$58.4 million, in line with the average
IBOV + 7.4%
recorded in 2011.
Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12
54
Investments (R$ millions)
Investments
382.3
In accordance with its long-term planning, the Company put in place several
important projects in the course of 2012, in which R$382.3 million were invested, including the opening of 25 retail apparel stores (Renner + Blue Steel)
296.6
and 10 Camicado, in addition to the remodeling and updating of 24 stores.
171.6
160.2
188.3
71.3
New stores
Remodeling of facilities
72.5
Technology equipment and systems
22.3
Distribution Centers
37.8
Breakdown of investments in 2012 (%)
Others
4.0
47.6
39.0
29.2
76.1
12.3
15.3
28.3
11.8
15.7
2010
2011
2012
19.9
44.9
New stores
12.5
Remodeling of facilities
Compensation to
Technology equipment and systems
shareholders (R$ millions)
Distribution Centers
Payout
75%
Others
18.7
3.3%
Payout
75%
Payout
75%
4.3%
2.7%
252.7
266.6
231.0
Compensation to Shareholders
Payouts of dividends and interest on capital (JCP) to Lojas Renner shareholders takes place pursuant to the Corporation Law and corporate By-laws,
equal to a minimum of 25% of the net profit found in each fiscal year. In recent
years the Company paid out dividends and JCP equal to 75% of net profit.
Compensation to shareholders
Dividend yield
2010
2011
2012
55
Managing
Sustainability
Overall and specific guidelines for
each relations stakeholder serve to
orient actions by Renner
Lojas Renner considers the issue of sustainability strategically and directs it actions based on overall
guidelines and according to stakeholders (please see diagram). The Sustainability area (which until late
2012 was referred to as Social Responsibility) prepared a proposal for the Lojas Renner Sustainability
Policy. By means of the Sustainability Committee that provides guidance and consolidates efforts in the
area, as of 2013 this policy will require approval from the Executive Committee and the Board of Directors.
Strategic management and sustainability pillars
Overall guidelines
Awareness and training of staff
members to become Corporate
Sustainability players
Enhancing of the Code of Ethics
and Conduct as the guideline for
Corporate Sustainability practices
Advising on the Company’s Corporate
Sustainability practices to internal and
external stakeholders
Monitoring and assessment of
Corporate Sustainability practices
Guidelines per stakeholders
Environment: structuring of an environmental program
considering the liabilities created by the business
Internal Stakeholders: enhancing tools and processes
in connection with employees
Suppliers: structuring the Renner Supplier Relations
and Support Program
Customers: structuring the Renner Customer
Relations Program
Communities: structuring the Renner Social
Investment, Government and Society Program
Government and Society: consolidating the
company’s leadership and social influence
Environmental Aspect DMA EN
Commitment with the environment is one of
sustainability practices that need to be men-
Lojas Renner’s working assumptions, in accor-
tioned, as in the case of the Solid Residue
dance with its responsible management culture.
Management Program (PGRS), the EcoEstilo
The Company seeks continually to improve its
project, greenhouse gas emissions manage-
environmental management practices, keeping
ment and the use of certified paper in its dis-
up with modern women, who are ever more de-
closure materials, which will be detailed further
manding and aware in their purchase decisions.
ahead in this chapter. GRI EN 26
Efficiency in the use of resources and responsi-
The company seeks to use low environmental
bility in the disposal of residues are encouraged
impact materials and prefers to use paper with
internally as well as in their stakeholder relations.
the Forest Stewardship Council (FSC) seal in its
In this regard, Lojas Renner has a number of
catalogues and campaign materials.
Materials TP EN1 | EN2 | EN26 | EN27 | DMA EN
Renner¹ used materials (in units except where indicated)
2012
2011
2010
A4 paper (tons)²
100.5
86.5
n/a
131
n/a
n/a
Alarms available
43,697,351
n/a
n/a
Hangers available
17,122,539
10,166,575
n/a
Hangers used (all types)
55,175,018
58.076.483
62.033.421
Plastic glasses
Paper in catalogues (tons)³
13,467,200
11,246,100
n/a
Paper packaging
1,632,925
18,000
n/a
Mailing list
8,200,000
5,720,000
n/a
Biodegradable plastic bags
6,279,000
2,886,200
n/a
39,630,500
38,782,500
n/a
3,337
1,543
542
Oxy-biodegradable plastic bags
4
Toners used and gathered
1
Includes Lojas Renner and Blue Steel data.
² Roughly 90% FSC recycled.
³ 100% FSC source.
4
100% of used toners are gathered by suppliers for re-use (contractual clause).
Camicado* used materials
A4 paper (tons)
2011
2010
175,500
186,938
94,688
Recycled A4 paper (tons)
28,238
n/a
n/a
Cardboard (tons)
73,539
75,055
n/a
832
714
513
1,746
1,464
824
Used toners (units)
Used cartridges (units)
* Includes sheets for printing wedding lists.
58
2012
MANAGING SUSTAINABILITY
There is also legal compliance in connection with
quired by the Company under this system is
the use of biodegradable and oxy-biodegrad-
100% renewable and comes from 4th Gen-
able bags in stores, and in administration offices
eration Small Hydroelectric Plants (PCH). This
activities with materials focus on gathering and
model also allows the reduction of electricity
re-using 100% of cartridges and toners. Hence,
costs, estimated at R$3.4 million annually after
Lojas Renner improves its responsible environ-
the migration of 33 units. GRI EN7
mental practices and reduce the creation of
residues and emissions, re-using materials and
In its search for energy efficiency, the Company
reducing their impact in the environment.
held awareness campaigns among its staff
members, installed LED lamps and changed
Energy and Energy Efficiency
equipment for low-energy consumption and
GRI EN3 | EN4 | EN7 | EN26 | DMA EN
more efficient models. All of these improve-
Part of the energy used by Lojas Renner is ac-
ments are provided for in the new store proj-
quired in the Free Energy Market, which works
ects. To know more on other efficiency actions,
under specific agreements and pre-established
please see the Impact by Transportation sec-
pricing supply period conditions. Energy ac-
tion in page 65. GRI EN5
GRI EN3 | EN4 | EN7
Electricity consumption (GJ)
Electricity consumption1
Use of diesel oil in generators
Total use of direct and indirect energy (GJ)
% renewable energy
2
2012
2011
2010
460,854
443,020
334,100
826.90
751.70
675.99
461,680.90
443,771.70
334,775.99
3.28
n/a
n/a
¹ There was a change in electricity consumption unit regarding the unit used in the 2011 report, the unit was GJ thousands and is now GJ.
² Considering that energy in Brazil comes from different sources that are combined in the distribution network, the percentage of renewable source energy considered by
the Company is that purchased through the Free Energy Market and currently supplying 12 stores.
Water: Sourcing, Use and Re-use GRI EN8 | EN9 | EN10 | EN21 | EN26 | DMA EN
The Company’s headquarters uses an average daily 146 cubic meters of water, and owing to this daily control,
Lojas Renner is able to quickly detect any changes in volume. During 2012 it installed aerating devices in the
units and exchanged conventional taps for others that shut off automatically, reducing the use of water.
All the water used in the headquarters and units comes from public supplies and is disposed of in the rainwater
or sewage networks. However, a new administration area building now being planned will have gray water reuse systems installed (water from showers and washbasins).
59
Emissions Inventory TP EN16 | EN17 | EN18 | EN26 | EN29 | DMA EN
Lojas Renner has been preparing a Greenhouse Gas (GHG) emissions inventory since 2010 in order to measure and
manage its emissions. This inventory will be employed as an ongoing process by the Company and will enable it to
detect the progress of emissions mitigation efforts.
Scope 1
57 tCO e
2
Generators
Scope 2
Scope 3
36 tCO e 998 tCO e 9,461 tCO e
2
Company vehicles
2
Air conditioning
2
Purchased and use electricity
0 tCO e
3,019 tCO e 10,444 tCO e
2
2
Residues
Business trips
2
Transportation of goods
20121,2
2011
2010
Scope 1 (generators, vehicle fleet and refrigeration gases)
1,092
575
416
Scope 2 (purchased and consumed electricity)
9,461
3,636
4,701
10,553
4,211
5,117
Direct and indirect emissions – scope 1 and 2 (tCO2e)
Total emissions – scope 1 and 2 (tCO2e)
1
The emissions inventory includes Lojas Renner, Blue Steel, Administration, Credit and Collections Department, CDs and Camicado.
The inclusion of Camicado in the GHG emissions inventory for 2012 prevents yearly comparisons regarding the efficacy of mitigation projects.
² Calculations regarding GHG emissions took place based on the GHG Protocol’s spreadsheet v2012.0.1.
20121,2
2011
2010
Solid residues
0
15
n/a
Business trips
3,019
3,140
1,399
Transportation of goods
10,444
3,859
26,758
Total emissions – scope 3 (tCO2e)
13,463
7,014
28,157
Indirect emissions – scope 3 (tCO2e)
1
The emissions inventory includes Lojas Renner, Blue Steel, Administration, Credit and Collections Department, CDs and Camicado.
The inclusion of Camicado in the GHG emissions inventory for 2012 prevents yearly comparisons regarding the efficacy of mitigation projects.
² Calculations regarding GHG emissions took place based on the GHG Protocol’s spreadsheet v2012.0.1.
60
The emissions
inventory reflects
the Company’s
concern with
climate change
In 2012 the Lojas Renner emissions inventory
management. This involvement reflects the
started to include operations by Camicado.
Company’s concern with responsible ac-
Hence, it is not possible to compare it with
tions that exert a declining negative impact
2011 in order to confirm the reduction target
on the environment.
of 2% of emissions. Yet this inclusion reflects
the Company’s commitment in continually en-
An example is the publication of its inventory in
hancing its control of indicators and emissions
the Brazilian GHG Protocol Program’s platform,
management, the 2% reduction target for the
allowing anybody to have access to this informa-
performance indicator will be preserved for
tion. Brazilian GHG Program encourages a cor-
2013 (total emissions per m² of sales area).
porate culture in the preparation and disclosure
of emissions inventories, and rates the compa-
In addition to controlling its emissions inven-
nies that belong to its platform with regard to
tory, Lojas Renner participates in a number
transparency and quality of data reported. Lojas
of actions related to greenhouse gas (GHG)
Renner was awarded the silver seal in 2012.
61
The Carbon Disclosure Project (CDP) is a non-
Lojas Renner’s Solid Residue Management
profit organization with the purpose of creat-
Program implemented in all the Renner and
ing a relationship among shareholders and
Blue Steel units is based on the principle of
companies focused on business opportunities
reduced creation and correct disposal of resi-
resulting from global warming. The entity also
dues. The program defines procedures and
assesses information by companies that com-
criteria for classifying, separating, packaging,
plete the questionnaire. In 2012 Lojas Renner
gathering and transporting, recycling and the
improved its performance in the CDP assess-
final disposal of residues.
ment, rising from E to D in the Performance
Score and being placed above average in the
The entire disposal process is certified by spe-
Governance & Strategy, Emissions Manage-
cialized firms. The same trucks that go from
ment and Emissions Reporting requisites.
the Distribution Centers (CDs) to the stores
loaded with goods, return to the CDs with the
In addition, the Company is a part of the
residues created by the units. Separating resi-
BM&FBovespa’s Carbon Efficient Index (ICO2)
dues according to type takes place in the CDs
since 2011. All the 39 ICO2 members in the year
(recyclable, non-recyclable and hazardous
were selected for adopting transparent practices
residues) for the correct final disposal (recy-
in connection with their greenhouse emissions.
cling, industrial landfill or co-processing). Remittance of residues is controlled on a weekly
Solid Residue Management Program
(PGRS) TP EN22 | EN23 | EN24 | EN26 | DMA EN
basis by means of invoices, controlled by the
Lojas Renner runs the Solid Residue Manage-
which discloses the stores’ residue ranking.
ment Program (PGRS) since 2010, based on
The three mist committed stores for each
the Solid Residue National Policy Law (PNRS).
month are listed in the Planeta Renner maga-
The PNRS defined the principle of shared re-
zine, available to internal stakeholders.
CDs and managed by the Sustainability area,
sponsibility for product life cycle and has reverse logistics as its essential aspect – a set
Among the chief actions covered by the pro-
of disposal actions that expedite the return of
gram in 2012 are the store encouragement
residues to their source, for treatment or re-
and recognition campaigns and disclosure of
use in new products.
the Solid Residue Management Manual. Over
one thousand tons of residues were gathered
during the year. The Company had no cases
of spills during the removal of residues and it
does not create, transport or exports residues
The smart logistics operation
optimizes costs in solid
residue management
62
deemed to be hazardous, pursuant to the
terms of Basel Convention. GRI EN23 | EN24
Approximately
800
tons
of residues were
remitted for
recycling
GRI EN22
Residues created
(in tons, save where indicated) GRI EN22
Disposal
Paper/cardboard
2012
2011
2010
Recycling
618.81
634.3
123.65
Plastic
Recycling
151.64
134.36
20.51
Metal scrap
Recycling
2.65
3.78
7.33
Technological residues¹
Recycling
Other non-hazardous residues²
Recycling/landfills/co-processing
EcoEstilo
Industrial landfill
Sundry scrap (m³)³
6
Total non-hazardous residues created
Cells and batteries
4
Decontaminating and recycling
Fluorescent lamps (units)
5
Other hazardous residues
Total hazardous residues created6
7.22
11.38
n/a
237.77
78.61
n/a
9.12
4.61
1.31
610
135
92
1,027.21
867.04
152.80
4.12
4.85
0.01
44,729
26,629
672
4.12
0
0
8.24
4.85
0.01
1
Technological residues are remitted to outsourced firms that re-use or recycle these materials and correctly dispose of residues that are not re-used.
² Merchandising materials, fixed assets, dummies and unmatched footwear.
³ Lumber, pallets, rubble and organic residues; Lojas Renner has no data on tons for this kind of residue.
4
Lamps are remitted in units to the firm that decontaminates and recycles. Hence, it is more correct to inform units disposed of rather than weight (which previously was
estimated and did not consider different lamp models).
5
Contaminated residues that cannot be recycled.
6
Camicado residues are not included, as they are part of the residue management programs in the shopping malls where the stores are located. The Solid Residue
Management Program has not been put in place yet in Camicado.
63
EcoEstilo TP EN 26 | EN27
The EcoEstilo Project launched in 2011 ac-
At the time of purchase of toiletry goods, custom-
counted for 9.12 tons of residues gathered un-
ers receive an explanatory leaflet on the impor-
der the Solid Residue Management Program
tance of returning packaging and the appropri-
in 2012. This is an action by Lojas Renner that
ate disposal of residues in order to preserve the
encourages customers, consumers and em-
environment and natural resources. They are also
ployees to discard toiletry and beauty residues,
informed that they may discard bottles and pack-
whether or not purchased in Lojas Renner, in
aging of any beauty products in the stores’ bins.
appropriate bins available in all the stores. The
packaging gathered is disposed of in an environ-
Virtual courses at Academia Renner and Uni-
mentally correct manner by Lojas Renner. It was
versidade Renner (please see these in the Em-
put in practice in 2011 and is part of the Lojas
ployees item) on residue management and the
Renner Solid Residue Management Program.
EcoEstilo Project are provided to employees.
Besides the goods discarded by customers, the
Since the introduction of EcoEstilo, the environ-
project is also aimed at testing samples in the
mentally correct disposal has taken place of 15
stores and defective beauty goods.
tons of beauty and toiletry resides.
See how EcoEstilo works
Industrial landfill:
non-recyclable residues
Final disposal
Separation according
to type of residues
Use of toiletry and
beauty products
Correct discarding of
bottles and packaging
Recycling: plastic,
paper and cardboard
64
Transportation Impacts GRI EN11 | EN12 | EN13 | EN14 | EN15 | EN25 | EN29 | DMA EN
A Suppliers
B Suppliers
CD RJ
CD SP
C Suppliers
CD SC
The increase in the Company’s distribution
country’s main highways. The Company’s
capacity and the review of the procurement
stores CDs are located in urban areas, where
logistics processes were important highlights
there is no direct impact on areas with a high
in the Supply Chain Project. This action which
rate of bio-diversity, protected or restored
is still in progress includes cross-functional
habitats or protected areas adjacent to these.
teams from Procurement, Logistics and IT,
GRI EN11 | EN12 | EN13 | EN14 | EN15 | EN25
which in 2012 were called on to implement
a specialized distribution cell and to build the
The location of CDs is also strategic as they
Rio de Janeiro Distribution Center, with auto-
favor a regionalized distribution of goods:
mation equipment new to Lojas Renner and
suppliers’ delivery network and remittance to
to Brazil. Automation made it possible to re-
stores is always based on the definition of the
duce the CD built-up area by 11%.
shortest routes possible, avoiding unnecessary traveling distances. Provisioning follows
The CD in the state of Rio de Janeiro joins
the procedures shown above.
those already in place in Palhoça (SC) and
São Bernardo do Campo (SP), in order to
Transporting goods accounted for 44% of
deliver the right goods at the right time. They
emissions by the Company in 2012 (equal to
are all located close to areas with a greater
scope 3), above the 34% recorded in 2011.
concentration of suppliers, stores and the
This increase resulted from the inclusion of
Camicado in the inventory.
65
Mitigation Actions and Investments in Sustainability TP EN18 | EN26 | EN28 | EN30
Lojas Renner sponsors a number of actions to reduce the use of natural resources, to encourage
the appropriate disposal of residues and awareness by its stakeholders on responsible consumption. Investments in management, prevention and mitigation of impacts rose to R$278,068.00
for the year. In recognition of the environmental management efforts, Lojas Renner was awarded
the ECO-WBrasil, a Certificate for Installing Sustainable Materials, attesting compliance with domestic and international environment legislation. The Company knows no bounds for compliance
with environmental aspects. Proof of this is that in 2012 there were no cases of expressive fines
imposed and of non-conformity with rules, laws and regulations. GRI EN28
Please see below a number of highlighted actions:
Lower water consumption:
in Company headquarters,
saving water was obtained
by installing efficient
equipment, with taps that
shut off automatically.
Lower electricity
consumption:
use of LED lamps
and changing for
more efficient
equipment.
Neutralizing GHG emissions:
Lojas Renner took part in the
Descalvado Carbon Project,
involving restoration of 41 hectares
of permanent preservation areas
(APP) in the municipality of
Anhembi (SP), located on the edge
of the Barra Bonita reservoir. This
action consisted in the acquisition
of 575 tons of carbon credits,
employed to neutralize Scope 1
emissions in the 2011 greenhouse
gas emissions inventory.
Products:
the Alchemia Bio
product line (read more
in page 22) is biodegradable, packaged
in materials certified by
the Forest Stewardship
Council (FSC) and
containing no
petroleum derivatives,
such as Vaseline, in its
formula. GRI EN6
2012
2011
2010
242,093
185,618
25,020
Mitigating environmental impacts
25,875
n/a
n/a
Environmental management
10,100
85,000
253,158
278,068
270,618
278,178
Investments in sustainability* (in R$)
Treatment and disposal of residues
Grand total of investments
* Considering investments in Lojas Renner and Blue Steel only.
66
Awareness: the
Consumer Vibes
in-house campaign
encouraged staff
members to avoid
wasting natural
resources.
Staff Members
TP LA1 | LA2 | EC7 | DMA EC | DMA LA | DMA HR
The world’s
largest fan
letter
Lojas Renner knows that its greatest assets
are its employees and therefore sponsors a
number of action to value its human and intellectual capital. Attention and intense experience with the Renner Values take place as of
the first days on the job in the Company, with
the start of the Welcome Program. During
the first three months, employees undergo a
number of activities to ease their integration,
and exercise the Renner attitude.
Enchanting employees is the start of a virtuous circle that will end up by enchanting
all of the Company’s stakeholders. That is
why Lojas Renner invests in people management, continually enhancing aspects such as
compensation, organizational environment,
health and safety, training, career and communications. It also adopts the 5S Program
in its units since 1994, in order to disclose a
culture of encouraging quality.
Besides not having a specific admission and
succession policy granting priority to professionals in the communities in which it operates, Lojas Renner trains professionals locally
for its activities, chiefly due to the nature of
rapid dissemination. The business dynam-
What has pop star Madonna’s tour to do with Lojas Renner’s
sustainability actions? In 2012, the Company’s awareness style
combined both of these initiatives in one pioneering action.
By means of Facebook application and the Twitter
#cartamadonna hashtag, fans were able to send messages,
love letters, photos and images to the singer, aiming to write
the world’s largest fan letter. This action resulted in 3425
messages to the pop star, which were disclosed innovatively
in mobile projections on several seaside locations in Rio de
Janeiro, the city that staged her tour’s first show in Brazil.
A selection of messages was printed on canvas and formed
a kilometer-long letter, unrolled on the seaside at Ipanema
from the hotel where Madonna was staying. Passing fans
were called to interact by leaving a message.
This action created commitment and noise, and attracted
attention owing to the purpose for all this canvas: the
creation of 2 thousand eco-fashion bags. Producing
the sustainable bags involved re-use of post-consumer
materials, adding design value, and created income for
women undergoing semi-open imprisonment and for selfemployed seamstresses in the state of Rio Grande do Sul.
The bags are part of a kit sent to fans who were drawn in a
promotion of 1500 tickets for the pop star’s shows in Brazil.
The entire action involved Madonna herself, who was given
an iPad with all of the messages that, had they been printed,
would produce a letter of over 4 kilometers in length.
ics provides for opportunities in countrywide
mobility. GRI EC7
67
Those who Enchant
TP LA1 | LA2 | DMA LA
According to function
Lojas Renner and Blue Steel Employees*
Executive Committee
Leaders (managers, coordinators and supervisors)
Administration (analysts and similar)
Operations
Others (apprentices, trainees and interns)
Total per function
2012
2011
2010
6
6
6
1,124
956
856
359
289
255
12,902
12.232
11,488
524
552
420
14,915
14,035
13,025
* Total employees includes only those admitted under the CLT statutes and interns, and does not include temporary and outsourced professionals. There is a
seasonal variation during the months prior to Christmas and Mothers’ Day. However the percentage changes are not available as they depend on information not
currently monitored, such as temporary and outsourced people.
Camicado employees per function (2012)
444
Breakdown
by region
2012
276 2011
262 2010
33
Others
(apprentices,
trainees and
interns)
133
Leaders (managers,
coordinators and
supervisors)
21
Administration
(analysts and
similar)
1,584 2012
1,503 2011
1,213 2010
1,119 2012
647
1,108 2011
1,110 2010
Operations
6,576
2012
6,097 2011
5,684 2010
5,192 2012
Camicado employees per region (2012)
5,051 2011
4,756 2010
160
South
32
Center-West
642
Southeast
68
2012
Turnover in operations
Renner and Blue Steel
Camicado
Admissions Terminations Admissions Terminations
Executive Committee
0
1
0
0
Leaders (managers, coordinators and supervisors)
29
112
35
44
98
74
18
8
7,379
6,489
505
555
636
565
43
33
8,142
7,241
601
640
Operations
Others (apprentices, trainees and interns)
Total admissions and terminations for 2012
Turnover rate per region Renner and Blue Steel (%)*
2012
2011
2010
Center-West
47.78
54.69
43.75
Northeast
31.48
29.73
34.47
North
50.56
52.03
45.66
Southeast
48.43
45.57
43.80
South
41.49
38.07
39.81
*The average turnover rate for Lojas Renner and Blue Steel for 2012 was of 44.89%.
69
ENCHANTMENT STORY
A special uniform
I received a call in January from Dinair, commercial supervisor in the 06 store in Joinville (SC). As I am in charge of purchasing uniform for
stores, she got in touch with me because she was uncertain on how to proceed with a special employee, who could not use a td t-shirt due
to a health problem. The uniform is the same for every employee, so I suggested getting in touch with HR to address this exception. In April
I received approval for buying the special uniform. Faced by the opportunity, I asked myself: “What can I do in this situation to enchant this
fellow worker?” At this point I thought of explaining the issue to our supplier of uniforms and ordered two t-shirts with the same layout as the
others, but of a special fabric. As soon as the t-shirts arrived, I sent them through the in-house mail pouch. I included a note and a chocolate
in the package. A week later I got an email from Liliane, the special employee, which read: “I was enchanted with the attention given to me.
Let me thank you from my heart! I felt much honored in receiving two t-shirts made especially for me. You now have your Enchantment Story,
as it made me very happy. Your action surprised me. Congratulations! If I were the Mystery Shopper, you would have my full approval and also
100% for the Story of the Year. Oh, and the chocolate, believe me, was better than the box, as it came with love. You are
enchanting. Many thanks!” This opportunity served to show that enchanting is accessible to us every day, you
simply need to see opportunities with other eyes.
Camila da Silva Dornelles | Procurement | Administration
Enchanted TP EC5 | LA3 | LA12 | LA14 | DMA EC | DMA LA
The competency compensation system in use at Lojas Renner is based
on merit and consists in three pillars: job description, employee assessment and career. The former ensures that employees understand what
is expected from them in their day-to-day activities, their responsibilities,
requisites and required competencies. The Company does not practice
wage discrimination between men and women in the same function and
who perform the same activities. GRI LA14
Performance assessment takes place under different methods according to stakeholders. Employees in operating functions, analysts, supervisors and coordinators are submitted every six month to the 360º
Assessment, involving generic and specific attitudes and competencies. The final score attributed to staff members is composed of selfassessment and of assessment by line managers, peers and in-house
customers. Employees will receive feedback at the end of the process,
with positive aspects and improvement opportunities. In 2012, roughly
82% of in-house employees eligible for assessment underwent the entire process, including formal feedback. GRI LA12
70
Yet management level staff members are sub-
The compensation management model is
mitted to an assessment of competencies
supplemented by salary surveys. Defining
built around three axes: organizational, strate-
compensation does not discriminate employ-
gic and functional. The assessment’s outcome
ees by gender and there may be in several
is discussed in a committee including the line
cases difference due to competency levels
manager, the area’s officer and the Human
and seniority. The lowest compensation paid
Resources office – in order to equalize criteria
by Lojas Renner and Blue Steel was 4.82%
and to ensure consistent assessments. Every
above the national minimum salary, while in
executive was submitted to this performance
Camicado this ratio was of 13.34% The Com-
analysis in 2012.
pany practices payment of the floor for the
employee class, and exceeds this figure in
The compensation system’s third pillar pro-
39% of units. GRI EC5 | LA14
vides growth opportunities for staff members
with distinctive performances. Renner encour-
Furthermore, a wide range of benefits is pro-
ages staff members to plan their careers un-
vided to employees, described in detail in the
der guidance by their line managers, and sig-
Welcome Manual and in the integration pro-
nals two possible routes: technician/specialist
cess for new employees. Please see the Lojas
(with wage progression at the same functional
Renner benefits in the table that follows. GRI LA3
level) and leadership profile (with a vertical rise
in Company hierarchy).
71
Employee benefits
GRI LA3
Meals: by means of cafeterias
and contracts, Lojas Renner
pays from 80% to 90% of the
price of meals.
discounts for
purchases in Lojas
Renner, depending
on years of work, for
employees as well as
for legal dependants.
10%
to
15%
Multi-purchase cards
for use in grocery and drug stores, fuel
stations and other accredited retail
outlets, deducted from payroll.
Health plan: with a broad range of
medical and hospital coverage and
a network of accredited services,
including legal dependants.
Association in
recreational activities
known as
SER
,
providing dental
plans, language
courses and social
events, among others.
Work uniforms
provided at no
cost to store and
distribution center
staff members.
Life insurance
optional, deducted
from payroll.
Bus vouchers for home/
work/home commuting,
deducted from payroll
according to the fare’s
price and restricted to 6%
of compensation.
Agreement with
learning institutions
for discounts on matriculation fees
and monthly dues for university,
post-graduate and extension courses
(for employees and dependants).
Profit sharing
as much as one salary, on condition of
achieving pre-specified and disclosed goals.
Year-end celebrations
to promote integration
and to commemorate
achievements, also
including family members.
Lojas Renner holds an annual Organizational
with over 50 staff members included an In-
Environment Survey intended to measure com-
ternal Accident Prevention Committee (Cipa),
mitment by its employees. Participation is online
formed in accordance with NR05 criteria found
and 100% of staff members are requested to
in the Ministry of Labor’s Ordinance 3214/78.
respond. The survey’s result in 2012 was 76%
commitment, a 4 percentage point rise as com-
Cipa is in charge of health promotion pro-
pared to the previous year. This rate confirms
grams together with managers and the Hu-
Lojas Renner among high-performance compa-
man Resources division. The Committee also
nies. The process is embodied in the Company’s
trains brigade members who are provided with
culture and is strengthened by the rising rate of
guidance in first aid, evacuating buildings and
respondents – in 2012 concurrence was of 86%.
fire-fighting, and provides every employee with
Based on these results, action plans are devel-
virtual courses on coronary diseases, tobacco
oped and put in place aimed at the organizational
addiction, postural health and quality of life.
environment’s ongoing improvement.
Every year it assists in organizing the Internal
Accident Prevention Week (Sipat), which in
Health and Safety Indicators
2012 was held in all the Lojas Renner units.
TP LA6 | LA7 | LA8 | LA9 | DMA LA
Safety of staff members is essential in order
Other health and safety practices include monitor-
to preserve a pleasant work environment, be-
ing environmental risks related to each function,
sides showing respect and concern by Lojas
regular medical exams and influenza vaccination
Renner with its internal stakeholders. In 2012
campaigns, as well as a constant disclosure of
with the integration of Camicado, every unit
information on health and family planning.
73
201210
2011
2010
28
33
56
3
3
2
0.002
0.003
0.004
28,112,000
34,465,000
34,386,000
555
27.920
137.436
3.9
162.01
799.371
Frequency rate of accidents with leave
0.99
0.95
1.62
Frequency rate of accidents with/without leave6
0.10
0.08
0.05
56
48
n/a
0.00
2.031
2.69
Occupational health and safety indicators¹
Accidents with leave³
Accidents without leave4
Occupational accident rate
Total yearly working hours programmed8
Working days lost²
Lost days rate (TDP)9
5
Investment in accident prevention per employee (R$)7
Frequency rate of occupational diseases
1
Includes Lojas Renner and Blue Steel.
2
In previous years occupational and common diseases were listed, giving rise to erroneous information and increasing excessively the number of days lost. According to
NBR 14280 criteria, occupational accidents did not include commuting accidents, which condition was also not followed in previous years.
³ Accidents with leave are those whereby employees do not return to their activities until the day following the event.
4
Accidents without leave are those whereby employees return to their activities on the day of the event or on the first subsequent working day.
5
Equal to the number of accidents with leave divided by one million man hours worked (HHT).
6
Equal to the number of accidents with or without leave divided by one million man hours worked (HHT).
7
Average investment per employee. Investment in accident prevention includes: The entire Occupational Safety Department’ budget and expenditures and investments
made by the Engineering and Manufacturing area to ensure and/or improve occupational safety or comfort conditions. Does not include expenditures with training
(under the charge of the HR/Training area).
8
Total hours programmed: considered as 8 hours daily x business days estimated.
9
TDP: Considers the factor 1 million pursuant to NBR 14280 instead of the factor 200,000 recommended by the GRI. Calculating days lost starts on the day following an
accident.
10
No deceases in operations over the period covered by the report.
2012
2011
2010
0.0381
0.0376
0.0376
Investment in disease prevention per employee (R$)2
56
48
n/a
Total notices to the National Institute of Social Security
on occupational diseases
31
36
58
Occupational diseases¹
Absentee rate
1
Includes Lojas Renner and Blue Steel.
² Average investment per employee.
Virtual course on health and safety*
Quality of life
1,754
Tobacco addiction
994
Coronary diseases
1,342
Postural health
1,626
Cipa
1,755
* Includes Lojas Renner and Blue Steel.
74
Total conclusions
Diversity TP LA1 | LA13 | DMA LA
Encouraging diversity is part of the Lojas Renner style. If the Company publicly supports and develops
a number of actions on behalf of women (see more in the Instituto Lojas Renner item), it could be no
different with its internal stakeholders. In 2012 Lojas Renner trained by means of awareness and training programs 80 Godparents of Diversity in 5 regional divisions – and plans to broaden this action in
the coming year. These staff members understand the importance of diversity and act as examples
to their colleagues.
The Company monitors diversity indicators such as age, gender, race or handicaps, and bars any
form of discrimination. Specifically on the issue of women, 72% of Lojas Renner’s staff members are
women, and it sponsors projects that comply with the Women’s Empowerment Principles.
Diversity indicators* GRI LA1 | LA13
2012
2011
% of women in the Company
71.75
72.05
% of employees above 45 years of age
5.95
5.79
% of employees above 45 years of age in management functions
8.83
11.00
66.66
66.66
4
4
% of employees above 45 years of age in executive officer functions
Total overseas leaders with international experience
* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.
75
ENCHANTMENT STORY
Daiane’s graduation
My story started when I saw customer Daiane on a wheelchair and who whenever she comes to the store wants me
to help her. I know her from the time when I worked in the female dressing booth, when I always helped her to try on
clothes. This time Daiane needed a pair of shoes for a very special occasion: her graduation. After trying several models,
we selected one that she loved. Daiane also asked for help in selecting make-up for the occasion. My colleague Daniela
in the beauty area helped us and on seeing Daiane’s difficulty, she decided to call our colleague Jaqueline, who has
lots of practice with make-up. Daniela spoke to me and suggested that we should enchant our special customer by
going to her house to do her make-up on the graduation day – she uses a probe and it would be difficult for her to
come to the store on that day. So we asked for approval from our supervisor Tatiana, who immediately let us go. We told
Daiane of our idea, who was speechless because of our kind offer. On August 3, as we had arranged, Jaqueline and I
went to Daiane’s home. We were very anxious to see her. On our arrival we were surprised, Daiane’s whole family was
waiting for us and we were very well received. Her sister had told us in confidence that Daiane had hardly slept well in
expectation of the great day. At each stage of the make-up, Daiane was being transformed, ever prettier, and when she
saw herself in the mirror she was moved. We also felt that her mother was also very restless and offered her the make-up in order to relax her. She told us awkwardly that she could not pay and that she did not use make-up since she was
widowed. We said that the occasion called for a very attractive make-up and that she should not worry, we would not
charge anything, after all, Daiane had purchased the make-up. She thanked us and was very happy with the outcome.
Everything was ready for the great moment, but our enchantment could not end here: we made a gift of a necklace to
Daiane, to use for the graduation. Everybody was speechless and invited us to socialize with them at a table laden with
tidbits and sweets. We felt very enchanted at being part of that unique moment. We said good-bye and returned to the
store with the sensation of a job well done. We later telephoned to find out about the graduation and Daiane told us that
she was very much praised, and also that the graduation was beautiful. I loved having assisted in this moment so special
for Daiane. Without the assistance by my colleagues Daniela and Jaqueline, I would not have achieved this. This is the
Renner way: mutual assistance to enchant our customers.
Joara Manzoni Pereira | Sales assistants | Shopping Barra Sul (RS)
76
Breakdown of groups per age bracket (%)*
GRI LA1 | LA13
Breakdown of groups
per gender (%)¹
2012
2012
2011
Women
Men
Women
Men
Board²
28.57
71.43
33.33
66.67
Executive Committee
16.67
83.33
16.67
83.33
Leaders (managers,
coordinators and supervisors)
53.99
46.01
52.74
47.26
Administration
Operations (assistants,
technicians and store
operations)
Others
65.74
34.26
67.82
32.18
73.95
26.05
73.94
26.06
69.08
30.92
65.22
34.78
¹ Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.
² The chairman of the Board of Directors is not included, as he is accounted
for in the Executive Committee.
Blacks and tawny per gender and functional level (%)1, 2
72.56
27.44
Up to 30 years
70.98
29.04
Between 31 and 50 years
72.75
Above 51 years
27.25
* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel.
2012
2011
Women
Men
Women
Men
Board
0.00
0.00
0.00
0.00
Executive Committee
0.00
0.00
0.00
0.00
Leaders
4.75
4.75
3.38
4.43
Administration
1.39
0.84
1.04
0.35
Operations
23.55
7.74
22.53
7.31
Others
23.47
10.69
23.37
11.23
¹ Includes Lojas Renner (Admin., stores, CDs) and Blue Steel. ² According to self-description.
2012
2011
South
1,91
2,74
Southeast
1,13
1,44
Center-West
2,17
2,00
Northeast
1,15
1,22
North
0,46
1,36
Company overall average
1,46
1,68
Handicapped employees per region* (% over total)
* Includes Lojas Renner (Admin., stores, CDs) and Blue Steel. A number of actions have been put in place to full comply with the quota for handicapped employees, which has still not been
achieved due to the scope of operations (requiring the admission of roughly 650 people in this class), and the high turnover rate in this group of staff members. Lojas Renner has entered into
a Conduct Adjustment Agreement with the Labor Public Prosecutors’ Office, granting a grace period for complying with the quota.
77
Chief training programs
Supervisor Trainee Program: develops
store, merchandising and distribution
center supervisors by means of
technical improvement and leadership
and Company Values. It has a sixmonth duration, with theoretical and
practical activities.
Fundamental Leadership Program (PFL):
based on a concept of ongoing Renner
leadership training, the preparatory
stage for a future executive career in
the company.
Management Trainee Program:
trains executives for stores and
the procurement department, who
think and decide strategically, who
understand retail dynamics and act as
owners of the business, encouraging
competitive differentials in order to
enchant customers.
Executive Leadership Program: reinforces
the enchantment culture by enabling
gifted staff members to become Renner
leaders at different Company levels.
Magia Renner: disseminates Company
culture and business strategy. To this
end, the leaders themselves hold 6-hour
courses in the Lojas Renner units. The
topic for 2012 was Enchantment in every
sense, and to commemorate 20 years
of existence, Magia Renner launched an
internal social network for employees to
exchange experiences on enchantment.
78
This live training enabled 9,394 people
and over 8 thousand staff members
accessed the social network, which
totaled 12 thousand posts.
Welcome: as of the second half of 2012,
new staff members are submitted to
a special program during their first 90
days of Lojas Renner. Several stages
of development, in addition to monthly
feedback from the supervision, provide
in-depth knowledge of operations and of
Renner Values.
Change Management: specific
workshops are preparing employees for
the expressive changes that will occur
with two major projects in progress:
putting in place the Shared Services
Center and the Supply Chain. To date
213 employees were involved in 11
workshops in 2012 – and work will be
intensified in 2013.
Virtual Courses: every Lojas Renner
employee has access to a portfolio of 142
virtual courses. There are computers in
all the units dedicated to learning, and
leaders and analysts may also access
the system from outside the Company.
There were 140 thousand participations
throughout the year. On concluding their
training, staff members assess their
satisfaction with courses. In 2012 very
satisfied assessments accounted for
95% of the total.
Corporate Education and Leadership Development TP LA10 | LA11 | LA12 | DMA LA
Meritocracy pervades the development of Lo-
Another action in this regard is the Executive
jas Renner staff members. The Company pro-
Leadership Program, a part of Universidade
vides the same ladder for each employee to
Corporativa Renner and accessible to all man-
rise at a pace equal to his/her talents, efforts
agement levels. This program develops lead-
and results.
ers in order to ensure results and the pace of
growth expected to sustain the business. On
It provides systematically training to its em-
the other hand, the Fundamental Leadership
ployees and totaled 133 hour of training per
Program stresses the concept of ongoing
employee in the operations of Renner and Blue
training for leaders by developing supervisors
Steel, and 60 hours per Camicado employee.
and coordinators, preparing for future execu-
Educational programs range from technical
tive careers in the Company.
training to and MBA scholarships to management education and coaching programs.
Every year Lojas Renner holds the management performance assessment, combining
Two fronts concentrate development programs:
strategic and organizational competencies
Academia Renner de Varejo for specific training
with the results gained in achieving individual
in the retail area and directed at operating area
goals. Staff members who stand out as po-
employees, and Universidade Renner that pre-
tentially positive in this assessment are labeled
pares leaders for business management.
as likely successors and undergo special development programs. The intention is to allow
Preparing and developing leaders are essential
them to exploit their skills and to expand their
aspects in sustaining growth by Lojas Renner.
corporate experiences, preparing to rise step
To this end, the Company runs the Trainee
by step on the development ladder and to
Program to prepare new store managers and
achieve ever higher positions in the Company.
supervisors, the Procurement and Merchan-
GRI LA11
dising areas and the Distribution Centers, for
the development of professionals in technical
The Renner attitude is what makes the Com-
and leadership aspects.
pany different and makes it unique. Hence,
this philosophy is an experience from an employee’s first day at work, while participating in
the Welcome Program. With a 90-day dura-
Employee development
provides each one with
his/her own growth
prospects
tion, this program situates the new employee
in the organizational culture and discloses the
key HR policies and practices, encouraging
the sense of belonging.
79
GRI LA10
2012
2011
2010
768
144
144
Managers
38,970
25,874
28,543
Coordinators and supervisors
23,526
75,174
85,530
23,382
399,300
375,704
301,068
1,327,919
1,402,773
1,280,759
1,813,865
1,879,669
1,696,044
Hours of training per function*
Executive Committee
Trainees
Operations
Total
* Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.
2012
2011
2010
6
6
6
Managers
363
312
271
Coordinators and supervisors
772
n/a
n/a
370
n/a
n/a
Trainees
309
322
322
12,420
n/a
n/a
14,240
640
599
Course participants per function*
Executive Committee
Operations
Total
* Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.
80
Magia Renner which has been active since 1992
Other projects deserving of mention are Projeto
also stresses this one-of-a-kind culture, also contrib-
Pescar and Escola de Varejo, which prepare young
uting to disseminate this business strategy. In 2012
people in the communities where the Company op-
in commemoration of its 20 years of existence, its
erates to act in retail customer assistance. In addition
theme was “Enchantment in every sense”, and it
to a theoretical background, students are given the
launched an internal social network for staff mem-
opportunity to work as Lojas Renner apprentices
bers to exchange experiences on enchantment.
(see more on these actions in this report’s Instituto
Lojas Renner item).
GRI LA11
Renner & Blue Steel ongoing education and
competency management¹ (total of employee participants)
2012
2011
2010
68
n/a
n/a
Leaders’ Convention
398
388
325
Leadership development
713
513
427
High-performance group (GAP)
728
554
921
Focus on Reading
363
312
271
9,082
9,161
8,265
28
28
n/a
14,712
14,850
13,867
Executive Leadership Program (PLE)
622
174
667
Fundamental Leadership Program (PLF)
686
513
427
21
21
-
7
3
5
Management Trainee
154
155
125
Supervision Trainee
155
167
197
4,171
7,530
8,187
3,013
4,361
3,854
6,026
10,123
5,615
Coaching
Magia Renner
MBA – Retail Management – in company (scholarships granted)
Virtual Training Program
Succession Program
Rite of Passage Program
Training in anti-corruption practices (loss prevention)²
Training in anti-corruption practices (money laundering prevention)³
Training in anti-corruption practices (Code of Ethics and Conduct)
4
1
Information does not include Camicado. These data began to be recorded and monitored in the computerized system put in place in 2012.
2
Annual recycling aimed at store leaders, tellers and staff members related to the Financial services department.
3
Held during the integration period for all staff members.
4
Held during the integration period for all store employees.
81
GRI LA11 | LA12
Camicado ongoing education and competency management (total of employee participants)*
Coaching
2
Technical training
432
Behavioral training
235
Leadership Technical training
38
Corporate Foundations training
549
Magia Camicado
794
New Leadership program
19
Team Building
37
Cumbuca
60
* Camicado employees in 2012 were given 45,664 hours of training, with an average of 60 training hours per employee.
2012
2011
2010
100
100
100
Leaders (coordinators and supervisors)
94
92
95
94
92
95
Operations
94
92
95
100
100
100
% of employees per function submitted to performance analysis*
Managers
Others (trainees)
* Includes Lojas Renner and Blue Steel.
Communications Channels
Communications is easy and transparent at
Planeta Renner: an in-house magazine pub-
Lojas Renner. Doors are always open to staff
lished monthly with tips on fashion, photos of
member to give compliments, make sugges-
activity in the stores and a profile of employee
tions, clear up doubts or lodge complaints.
teams, in addition to the chief news on Lojas
See below the key communications channels
Renner. Can be taken home by employees.
with internal stakeholders.
Planeta Informa: a bulletin-board newsletCanal Renner: a TV program with Renner’s
ter permanently displaying internal campaign
main newscasts. Employees watch this 15 to
posters of notices and local information on
20 minute program every month, commented
each unit.
by a Company leadership.
82
Líder@Renner: an email sent to leaders
Palavra do Presidente: an exclusive channel
whenever necessary to deal with strategic
from the CEO’s office with staff members, plus
topics that should be shared with the team.
an email sent whenever necessary, intended
for every Company employee. For those with
Café com a Diretoria: staff members may
no corporate email, leaders will be in charge of
enroll to have breakfast with a Lojas Renner
sharing information.
executive officer. Among those who enrolled,
15 people will be drawn for a chat, the subject
Fale com o RH: a permanent and direct link
of which is selected by employees themselves.
from employees to the HR area to cover subjects of interest to the former, clear up doubts
Ponto de Partida (PP): every day at the start
or make suggestions.
of the working day, store employees will have a
brief meeting to coordinate information, speak
of goals and other important topics related to
their functions. This meeting will be held every
week in the administration areas.
Face-to-face
interaction, TV,
magazine and
electronic channels
ensure transparent
communications
with staff members
83
Customers GRI PR1 | PR3 | PR5 | DMA PR
The Enchantment Philosophy dictates the
Mystery shoppers regularly visit the stores
pace of Renner’s relations with its customers.
and assess performance by employees in the
As it is evident in each gesture by Company
front line of customer assistance. This practice
staff members, this attitude and work form
awards employees with the best performance
constantly seeks to exceed expectations and
in enchanting customers.
provide experiences. No problem is simply
left aside: employees know that responsibility
Stores are designed and furnished in order
for customer satisfaction lies with everybody
to engross customers in their purchases, be-
and is shared, and they feel as owners of the
sides making it easier to select items. In ample
business compelled to immediately solve any
spaces with music by Rádio Renner, collec-
inappropriate situation.
tions are displayed in accordance with the
Lifestyle concept, making the entire experience more practical and customer empathy
with items that attract them much quicker.
Concern by Lojas Renner with customers is
also related with health and safety in the use of
its goods. Clothing items are made to ensure
comfort, and to this end they may include felt
linings (in embroidery) and a larger percentage
of elastane (in blue jeans), in addition to embodying modeling patterns that favor mobility.
Alchemia brand goods intended for modern
women’s appearance and well being strictly
follow the rules and procedures by Agência
Nacional de Vigilância Sanitária (Anvisa). This
Lojas Renner brand provides a portfolio for a
complete beauty ritual, including lines of a social and environment trend (Alchemia Bio) and
goods for the home.
The labeling of textile goods complies with Inmetro rules and in Alchemia labels meet Inmetro standards on volume and Anvisa’s RDC 79.
84
ENCHANTMENT STORY
A very special gift
I was in the men’s department when I noticed a customer who seemed to need help. I politely offered to assist. She introduced herself as Sueli
and said that she was looking for a white handkerchief. I inquired whether she had not liked any of the options and she replied that what she really
needed was a white handkerchief to give to her father for his birthday. She had gone through a number of stores in search of one, but could not find
it. I asked why she preferred white and she explained that when her father was a child her grandmother used to buy him white handkerchiefs only,
and they were all starched and embroidered with his name. On her grandmother’s decease, her father went on using white handkerchiefs, this was
a form of preserving his mother’s presence with him. But as the years went by, the handkerchiefs given to him by his mother wore out – he had only
one remaining, which he kept as a relic. She told me this story with emotion and tears in her eyes. I felt that this customer could not leave our store
in that condition. Her father’s birthday was on Saturday. I told her not to worry any longer and to return on Friday, I would find a way. I asked her to
bring her father’s handkerchief on the following day, for me to see how it was. I woke up on Thursday and went out looking for the white handkerchief, but unfortunately I could not find a similar one. So I went to a textile store and took the customer’s handkerchief with me. As soon as I arrived, I
asked the saleswoman if she had a fabric similar or the same, and luckily she had. With this fabric in hand, I decided to make not only three, but one
dozen handkerchiefs. I took the fabric to my grandmother’s home for her to embroider it as the one I had in hand. Before asking my grandmother, I
told the story of Sueli’s father. She was moved and said that it was incredible that something so simple had acquired so much value. Finally to our
surprise, the handkerchiefs came out just like the original! We both were satisfied and anxious to hand over the great surprise to the customer. I
purchased a small box and secured it with a beautiful blue bow together with a card. On Friday, as had been arranged, the customer arrived and I
soon noticed her anxiety. As I handed her the box I saw her eyes sparkle. She smiled, hugged me and said: “Never had anyone given me so much
attention.” I replied that it was from my heart. When she opened the box and saw the handkerchiefs, she cried emotion and thanked me so much.
She said that they were beautiful, just like those that her grandmother used to make for her father. At that moment I had a huge sensation of mission
accomplished. On the following day her father phoned to thank for this great gift that I had helped his daughter give him. I was enchanted with the
phone call. I felt that in fact who enchants ends up being enchanted.
Michele Aparecida de Oliveira Santos | Sales assistant | Shopping Maxi Jundiaí (SP)
Communicating with Customers GRI PR5 | DMA PR
Fale Conosco (Speak to Us) is customer assis-
2013. The Company was the only department
tance tool that Lojas Renner provides on the
store included in the report disclosed. Always
Company’s site (Customer Assistance). Emails
with an eye on social networks, in addition to
received through this channel are answered in
Facebook, Twitter and Instagram, Renner was
not over 72 hours. The number of events, the
also the country’s first department store to
area involved and reply time are monitored,
disclose its profile in Pinterest and the mobile
and efforts are made to solve the problem in
application in 2012 (see more below).
question and to enchant customers.
Customer relations is also monitored in the soLojas Renner took part of the IndexSocial
cial networks and in case of any complaints,
ranking among the 10 Brazilian brands with a
these are forwarded through the channel.
greater commitment in social networks such
Suggestions and complaints sent to newspa-
as Facebook and Twitter, in November and
pers, totaling 52 publications during the year,
December 2012, and January and February
are handled by Corporate Marketing.
85
Lojas Renner also participates in the Con-
Lojas Renner Mobile Application
sumer Board, a qualitative survey formed of
Lojas Renner was once again a pioneer in its
customer groups that discuss topics such as
activity when it launched Brazil’s first mobile
image, quality of assistance, comfort of store
application for a fashion store. This tool con-
environment, and new products acceptance.
tains in one place only exclusive fashion con-
This information is employed by the Company
tents from the Estilo Renner blog in Facebook,
to enhance its good and services.
Instagram and Pinterest. It also contains new
editions of Renner magazine, promotions and
In Camicado, the key customer interaction
a virtual dressing booth.
channels include price surveys, variety and
quality, diagnosis research, assistance through
The application is free of charge and compat-
online chats, and Contact Us through e-mail. In
ible with the iOS and Android systems, and a
2012 Camicado intensified its presence in so-
simplified version of Windows 8. Relying deeply
cial networks such as Facebook, Twitter, Insta-
on social media is very much in line with the
gram and Pinterest, and created the Camicado
innovation background by Lojas Renner and
blog, with tips on cuisine, home organization,
with its close relations with women in the fast
marriage and decoration.
fashion and online era.
Renner’s figures in the
social media (year-end 2012)
Blog
Estilo
Renner
1.8 million
fans
86
38
64
thousand
thousand
followers
followers
Over Average 1,369,319
one
thousand
of one
thousand
followers
visits per month
views
Customer satisfaction
and enchantment
are measured in the
stores themselves
Online Business
In 2012 a new e-commerce platform was launched
This model was adopted in the 1990s with the Com-
in accordance with Lojas Renner’s positioning, dis-
pany’s clear intention of applying the Enchantment
playing goods based on fashion trends, more modern
Philosophy, when companies were still starting to be-
and with an improved usability. The www.lojasrenner
come aware that they should meet new customer ex-
site provides a complete mix of apparel, footwear, ac-
pectations and needs. Currently all the Renner stores
cessories and toiletry line, underwear, and watches,
are equipped with Enchantmeters.
unique payment terms, discounts and special price
and delivery conditions.
Customer reactions are inserted in the Lojas Renner
intranet on a daily basis and consolidated every month
The Enchantmeter
GRI PR5 | DMAPR
by the Corporate Marketing area for in-house dis-
Lojas Renner was the first fashion store in Brazil that
closure. The stores have monthly goals for positive
measured customer satisfaction in the store itself, right
customer assessments. A ranking is prepared every
after the purchase experience. The Enchantmeter as it
month of the best placed stores, bearing in mind the
is known, is found at the stores’ exits and allow cus-
very satisfied score and the mystery shopper’s score.
tomers to assess whether they were very satisfied,
Base on this outcome, those stores placed first during
satisfied or dissatisfied. This is the opportunity to keep
three consecutive months, or five alternate months in
the thermometer turned on permanently, measuring
the same year, are financially rewarded.
vital signals and solving problems expediently.
www.lojasrenner.com.br
87
Customer satisfaction percentage until December 2012
January
February
March
April
May
June
Very satisfied
60.02
61.17
61.92
61.39
60.73
61.07
Satisfied
36.70
35.71
35.08
35.50
35.88
35.75
3.28
3.12
3.00
3.12
3.39
3.18
OPINION
Dissatisfied
The
Enchantment
Philosophy
Enchantment
Expectations
Satisfaction
Customer Data Privacy
GRI PR8 | DMA PR
88
Lojas Renner sends news and information to
Owing to its commitment with respect for its
its customers whose email addresses were
customers and compliance with their needs
registered in its database, whether due to the
and desires, Lojas Renner will stop sending
use of communications channels or to online
emails to customers who request cancella-
purchases. The idea behind this practice is to
tion of such news, and will not get in touch by
involve customers in the Renner world, putting
telephone with customers who register in the
them in tune with everything that occurs, new
Procon São Paulo Blocking Receipt of Telemar-
collections, promotions and trends.
keting Calls.
July
August
September
October
November
December
TOTAL
61.58
61.88
61.70
60.81
61.88
61.84
61.36
35.07
35.42
35.38
34.13
34.65
34.42
35.26
3.35
2.69
2.92
5.06
3.48
3.74
3.38
Supplier Chain
TP EC6 | HR1 | HR2 | HR6 | HR7 | DMA EC | DMA HR
Management of the supplier chain takes place by means of two different areas. Supplier Management
(GFO) is in charge of resale item suppliers, while Administration Supplier Management (GFA) is in charge
of all other supplies, from retaining builders for new stores to office supplies, uniforms and other services.
Despite not having a formal policy for retaining local suppliers, Lojas Renner has an expressive percentage of its purchases with this class of suppliers, as shown in the table that follows.
1
Supplier chain
Total suppliers
a) Total expenditures with local suppliers
(R$ thousands)
% of expenditures with local suppliers
b) Total expenditures with overseas suppliers
(R$ thousands)
% of expenditures with overseas suppliers
Grand total expenditures with suppliers (a+b)
(R$ thousands)
GFA2
GFO³
2012
2011
2012
2011
1,481
1,414
636
616
617,338
455,417
1,286,119,446
1,174,730,530
99
100
77
81
7,700
n/a
388,732,122
276,082,400
1
n/a
23
19
625,038
455,417
1,674,851,568
1,450,812,930
1
Data in this table consider Lojas Renner and Blue Steel transactions only. There is currently no formal policy granting priority to local suppliers.
² The GFA considers local suppliers all domestic suppliers, as the delivery of goods takes place in every state where Lojas Renner has branches.
³ The GFO perfected its rating criteria for local suppliers. This class until 2011 included suppliers located in the same states as the then existing Distribution Centers (SP and SC).
As of 2012, the GFO adopts the same criteria as the GFA, considering local suppliers as domestic suppliers. Data considered embrace suppliers of resale items to Renner and
Blue Steel stores. Period under consideration: calendar year 2012 when there were 177 Renner and 4 Blue Steel stores.
89
Resale Suppliers Management (GFO)
GRI HR1 | HR2 | HR4 | HR5 | HR6 | HR7 | DMA HR
Selecting resale suppliers takes place based
Audits are an important tool to mitigate risks
on supply and demand criteria, competitive-
and to develop resale suppliers employed by
ness, quality, productive capacity and com-
Lojas Renner. GFO currently run three differ-
pliance with Lojas Renner requirements. In
ent audit procedures. The Process Audit, per-
compliance with its Values, Lojas Renner does
formed by an outsourced firm, was started
not have agreements with suppliers that use
in 2006 and takes place according to criteria
child labor, forced or slave labor, insecure en-
defined by Lojas Renner, covering issues re-
vironments, discrimination attitudes, corporal
garding quality, manufacturing processes, fa-
punishment, psychological coercion, sexual or
cilities and social responsibility. In 2010 with
oral harassment, in connection with its work-
the creation of the Supplier Certification Pro-
ers. It is essential and required that in every
gram by Associação Brasileira do Varejo Têx-
agreement that suppliers should formalize
til (ABVTEX), this entity began to be in charge
concurrence with human rights principles. In
also for Social Responsibility Audits in cloth-
this regard, in 2012 there were no cases of
ing suppliers for criteria such as: child labor;
discrimination.
forced labor or that analogous to salve labor;
irregular foreign labor; freedom of association;
Retaining resale suppliers is not limited to de-
discrimination; abused and harassment; health
tecting and mitigating risks. More than this, it is
and occupational safety; monitoring and doc-
related to the involvement by this chain in the
umentation; compensation; working hours;
practice of principles in which the Company
benefits; monitoring the productive chain; the
believes and that contribute to sustainable de-
environment. Hence, currently the Process
velopment and respect for human rights. All
Audit is held only with resale suppliers not in-
these suppliers undersign the Renner Supplier
volved with apparel. Finally, the Sub-contractor
Agreement jointly with the Renner Supplier Re-
Audit is applied since 2010, also by an out-
sponsible Conduct Agreement, formalizing con-
sourced company, to supplier sub-contractors
currence with principles related to human rights.
of apparel with the purpose of minimizing risks
related to regular working conditions.
90
ENCHANTMENT STORY
Happy customers!
My enchantment story began when I received a Fale Conosco email. Customer Ana used to tell us that she loved
a Cortelle blouse, which unfortunately was stolen from her house. Ana had searched everywhere in stores in her
region and also in the virtual store, but could not locate it. She was very sad, it was hard for her to like a blouse so
much. That was when I decided to enchant this customer, as I wanted so much to make her happy! I phoned our
supplier to check on the possibility of making a similar blouse for this customer. After a long search for the fabric,
the suppler found a surplus item of size 50, exactly Ana’s fit. The supplier then sent me the blouse and I forwarded
it to her house. She thanked me so much, she had never expected a gesture like this one and was extremely happy!
At the end of her email she wrote: “Thank you, Renner! You are surprising!”
Josiane Peres da Rocha | Procurement Assistant | Administration
Other highlights are the Crescendo Juntos pro-
Value chain management
gram, held during the year with the purpose of
encouraging and making apparel resale suppliers aware of the importance of qualifying in
700
636
616
the ABVTEX Program. In order to ensure understanding and compliance with goals, these
events were regionalized. In March local suppliers in the states of Rio Grande do Sul and
238
242
280
Santa Catarina were made aware. The event
for suppliers in other states was held in June,
save for the state of São Paulo, as the event
for these suppliers took place in 2011.
2012
2011
2010
Total active suppliers with orders during 2012
Productive suppliers audited
(process + social responsibility)
91
Program stages
1. Notice: in March 25 selected suppliers partici-
The IDGF monitoring began with a group of 25
pated in the Crescendo Juntos event, kicking off
suppliers selected for the Ongoing Improve-
the program.
ment Program, based on their share in the total
sum of the year’s purchases. The program aims
2. Diagnosis of needs: between April and May,
to strengthen Lojas Renner’s relations with its
weaknesses and improvement opportunities
suppliers and is composed of 4 stages (see
were detected in supplier processes by means
the table). Lojas Renner intends during 2013
of technical visits.
to extend this action to 30 suppliers, selecting
them according to their share in the strategic
3. Treating diagnoses: the 3 topics given priority
and purchase value, in addition to the risk they
– problem analysis and solving, sub-contractor
are likely to pose to the business.
management and production layout – are being
in September with the attendance of 25 suppli-
Administration Supplier Management
(GFA) DMA EC | DMA HR
ers. In addition to live training, virtual courses are
As a part of the CSC Project, the Supplies de-
made available for suppliers. Other courses are
partment was remodeled in 2012, giving rise
expected for the first half of 2013.
to the Administration Suppliers Management
addressed in training courses. The first was held
area (GFA). This new area has as its key objec4. Consultancy and monitoring: together with
tives strategic discussions with its best suppli-
training, the Lojas Renner Supplier Management
ers in the world scenario, and the detection of
monitors supplier performance since September
innovative opportunities to create exceptional
2012.
results and the enchantment of customers. It
is in charge of annual procurement planning,
Qualifying Suppliers
prospecting, ratifying and supplier assessment,
The Restructuring Project in the Supplier Man-
as well as for risk management and non-resale
agement area begun in 2011 and concluded in
purchase agreements. GRI EC6 | HR2 | HR6 | HR7
2012, was an important landmark in defining
the area’s key processes. With over R$1 million
Following implementation of the area’s gover-
in investments, this change defined key pro-
nance project estimate for July 2013, the GFA
cesses for supplier activities, metrics and man-
will be enabled to strategically manage is sup-
agement indicators. It also involved, among
plier base, with the use of commercial, financial
other topics, selecting, ratifying and monitor-
and social performance indicators, and to put in
ing suppliers, contract and audit management,
practice action to correct any deficiencies and
and relationship assumptions. One of the proj-
risks detected.
ect’s important results was the creation of the
Supplier Global Performance Indicator (IDGF),
consisting in quality, commercial, logistics and
social indicators.
92
Over R$ 1 million
was invested
in enhancing
supplier relations
Community and Government
TP SO5 | SO6 | DMA SO | DMA HR
Lobby and Social Influence
Lojas Renner is active in furthering public poli-
most representative business centers, forming
cies that contribute to develop the country and
part of the employer entity in the discussion
improve retail trade. This contribution takes place
committee facing its employees’ trade unions.
through participations in entities such as As-
The same seriousness and responsibility are
sociação Brasileira do Varejo Têxtil (Abvtex) and
enforced in complying with resolutions arising
Instituto de Desenvolvimento do Varejo (IDV). As
from collective agreements, ensuring trans-
provided in its Code of Ethics, the Company does
parent, fair and professional relations.
not make financial contributions to political parties, candidates or related institutions.
Every employee is covered by collective
agreements. These are also represented by
Trade Union Relations
the Sindicato dos Empregados do Comércio
The Company’s commitment with regard to
(retail employees’ trade union) in the different
stakeholder relationships is also present in
venues. Notice on operating changes is given
trade union relations. Lojas Renner attends
in advance, yet there are no minimum terms
every year negotiating tables in those venues
defined by the Company with regard to no-
where it has a large number of stores and in its
tices. GRI LA4 | LA5
93
ENCHANTMENT STORY
A letter to the Christmas inspector
It was on a Monday, I was helping to open the store when I found a letter addressed to Santa Claus. I kept thinking
that the sender might be very sad for having lost the letter, so I decided to open it. When I read it, I saw the moving
story of a four-year old boy named Lucas. He wrote that he understood the difficulties should he not be given a
remote control car, as his mother was unable to purchase one. At that moment I decided that I myself would enchant
him with the cherished remote control car. Having the gift in hand, I called the number found in the letter next to his
mother’s name, and explained the event. Much surprised, she said that her son would love the gift. On that occasion
Lucas was beside his mother and inquired who she was talking to and she replied: “Lucas, I’m talking to Santa Claus,
get on the phone and talk to him also.” I was speechless, surprised, when I heard that voice saying to me: “Hello
Santa Claus! Is that really you?” I replied with the good old man’s voice: “Yes Lucas, it’s really me, Santa Claus.” He
then asked: “Have you already bought my remote control car?” I replied “Yes, I already told your mother and both
of you are coming here to the store to get it.” Everything was ready on the agreed day. When I was told that Lucas
was in the store, I ran to dress the Santa Claus costume and asked my colleagues to call him. “Santa Claus, are you
there?” At that moment my world stood still when I heard his voice echo through the Realize. I replied right then: “Ho,
ho, ho, Merry Christmas, Lucas.” On coming out of the management room as a genuine Santa Claus, I saw Lucas for
the first time. He put his hands on his head and shouted with wide open eyes: “It’s really you Santa Claus!” I raised
Lucas up in my arms and we started to talk. I handed him the gift and tears and smiles overcame Lucas, his mother
and several employees and customers who were watching everything. After giving many thanks, Lucas’ mother left
with him beside her, playing with the remote control car that he dreamt of so much.
José Ailton dos Santos Prudêncio | Leading inspector | Shopping Pompéia (SP)
Instituto Lojas Renner
TP SO1 | SO5 | EC8 | EC9 | DMA EC | DMA SO
Instituto Lojas Renner is in charge of managing the Company’s social investments, conveying development to the communities where it is located. The
institute’s primary focus is inserting women in the labor market, which is very
much in line with Lojas Renner’s vocation of encouraging close relations with
present-day women. This target is also in tune with furthering gender equality as disclosed among the UNO’s Millennium Development Objectives and
the Women’s Empowerment Principles (UNO’s Women and the Global Pact).
94
Mission
Investments made (R$)
People benefited
38,101
4,796,052
3,857,171
3,722,764
16,234
To encourage the insertion of women in the
labor market, in support of entrepreneurial
social actions put in place by civil society
organizations that effectively contribute
to qualify and include women and the
development of communities in which Renner
is active.
6,972
Forms of action
2010
2011
2012
2010
2011
2012
Number of projects
81
89
97
Education and Professional Training:
contribution in acquiring and/or developing skills
that assists in accessing the labor market.
Entrepreneurship and Creation of Income:
encouragement of entrepreneurship and forms
of association and/or cooperation for production
and service provision.
Insertion in the Labor Market: support of
market insertion mechanisms by providing
market information, detection of work
opportunities, preparation for the selection
process and for inserting products in the market.
2010
2011
2012
Since its foundation in 2008 Instituto Lojas Renner has already allocated R$15.2 million in 341 projects, directly benefiting over 69 thousand people in all of Brazil’s regions. In 2012 alone R$4.7 million were
allocated to actions put in practice in 17 states and in Brasilia.
The institute’s global actions are planned end
prepared based on three axes:
• Emancipation of women through enabling
projects and the creation of employment and
income.
• Training young people in an unfavorable social
and economic position.
• Local development based on actions that
enhance independence by communities and
also by means of corporate volunteer actions.
95
2012
2011
2010
1,617,404.14
1,535,546.86
2,199,691.24
Local development
846,798.13
292,825.42
644,073.04
Sports
230,000.00
960,000.00
375,000.00
Culture¹
140,000.00
260,000.00
72,000.00
Training young people
393,874.45
268,800.00
183,000.00
Children and teenagers
760,000.00
540,000.00
249,000.00
Senior citizens
800,000.00
na
na
na
na
16,200.00
Total (a)
4,788,076.72
3,857,172.28
3,738,964.28
Culture²
3,249,958.00
1,942,904.00
1,830,000.00
na
307,684.00
44,640.00
7,848,577.50
8,123,539.00
na5
Private social investment
Creation of employment and income
Corporate volunteers
3
Humanitarian aid
Clothing donations4
Total (b)
Grand total of investments (a+b)6
11,098,535.50
10,374,127.00
1,874,640.00
15,886,612.22
14,231,299.28
5,613,604.28
¹ Investments in culture managed by Instituto Lojas Renner.
² Investments in culture managed by Lojas Renner’s Corporate Marketing jointly with Instituto Lojas Renner.
³ Sums invested in the purchase of food and clothing donations to assist towns affected by environmental disasters.
4
Clothing donations when opening Renner stores in new towns and to the RS, SC and SP state governments.
5
Sum not accounted for.
6
The sum for 2011 is different from that disclosed in the previous report, as it includes funds for clothing donations.
www.institutolojasrenner.org.br
Instituto Lojas Renner intends to invest R$21
Mais Eu Campaign
million by 2013 in projects with a priority in
The Mais Eu campaign held in 2012 exceeded
inserting women in the labor market. These
expectations with it results in excess of the
investments will be aimed at training and the
previous year’s, having collected R$1.3 million
creation of employment and income in the
in 4 days of campaigning. With the Na Renner
communities where the Company is present,
invitation, you can try on new clothes and
covering all of the country’s regions.
somebody may experience a new life, customers were inspired to combine the pleasure of a
These projects are funded by the company it-
purchase experience with the joy of support-
self, by state and federal fiscal incentives and
ing a relevant action for training and creating
funds arising from Campanha Mais Eu, which
employment and income for women. From Au-
allocates 5% of 4 days of net sales revenues
gust 13 to 16, 5% of net sales from 173 of the
to the Institute. The funds collected by the
network’s stores and from e-commerce were
campaign are allocated to the Escola de Cos-
transferred to Instituto Lojas Renner.
tura and Escola de Varejo programs, and to
projects submitted by social organizations by
means of call notices, in order to train women
@institutorenner
96
and to create employment and income.
This publicity campaign, starred by women
who already had been submitted to the institute’s projects, had its presence stressed in
points of sales, newspaper and magazine ads,
email marketing, folders, TV films and radio
spots. The disclosure showed examples of
people who got up and went after their dreams,
worked at it and supported by Lojas Renner,
were given the shove they required to get there.
The campaign has been held since 2008 in order to mobilize staff members, customers, suppliers and society in general for women’s cause,
and has already collected R$4,937,519.81,
benefiting 7,834 women through 61 projects in
17 Brazilian states and in Distrito Federal.
Creation of Employment and
Income for Women GRI EC8 | EC9 | DMA EC
Training actions aimed at the creation of employment and income for women include investments in social projects selected through
call notices, in the Escola de Costura and
Rede Parceria Social programs.
Investment in creation of employment and income projects
Total investments (R$)*
Projects each year
Empowerment of women (women benefited yearly)
2012
2011
2010
1,617,404
1,535,545
2,199,691
58
50
59
3,382
3,733
4,327
* Investments arising from the Mais Eu, Escola de Costura and Rede Parceria Social campaigns (from tax rebates). The figures do not refer to sums transferred during the
year but to the projects with activities over the period.
97
Project Supported by Call Notices
The institute discloses every year a notice on social
projects dedicated to training and creating employment and income for women. Those social organizations that qualify in the criteria covered by the notice may enroll their projects directly in the institute’s
website. The Institute’s staff is in charge of selecting
and assessing projects, which takes place as follows: score (pursuant to previously established criteria), confirmation of legal documentation and visit by
social organizations.
As for project monitoring procedures, social organizations with funded projects are visited regularly by the
institute’s representatives, who will assess the use of
funds and progress of actions. Every 3 months entities will forward reports of activities, submission of
accounts and photos in evidence of achievements.
During this fiscal year 32 project were sponsored
throughout the country’s regions.
The institute was restructured in the current year and
therefore no notices were published. Nonetheless, in
the absence of a notice for 2012, transfers for projects
covered by the 2011 notice (disclosed in the year’s 4th
quarter) continued in 2012. The next notice for the selection of new projects will be disclosed in April 2013.
Escola de Costura Renner Program
The Escola de Costura Renner is another relevant
program in qualifying women for the labor market.
Dating back to 2011, it provides courses free of
charge to adults over 18 years on using sewing machines and equipment, technical standards and topics such as health and occupational safety.
This action was made possible through a partnership with Instituto Lojas Renner and Company resale suppliers, civil society organizations and Serviço Nacional de Aprendizagem Industrial (SENAI).
98
Our stakeholder suppliers retain roughly 70%
Training Young People GRI EC8 | EC9 | DMA EC
of the trained professionals at the end of the
course. Other applicants conclude the project
Projeto Pescar
prepared to enter the labor market.
Lojas Renner is a sponsor since 2004 of
Fundação Projeto Pescar, which provides
In 2012 Renner organized the first group in
technical training units for needy young peo-
the municipality of Campo Grande (MS) with
ple and their insertion in the labor market. The
25 women and in Macatuba (SP) with 62
project dates back 37 years and consists in
women. The program was extended to other
an extensive network of companies that define
towns throughout the years, and trained 849
their training courses in accordance with their
seamstresses in the entire country, by stress-
business strategies.
ing these actions.
Courses provided by the Company in 2012
Parceria Social Network
were focused on two targets: one of these
The Parceria Social network is a joint action
was customer assistance, with groups in Por-
by the state of Rio Grande do Sul’s Secretary
to Alegre (RS) and Campinas (SP), and anoth-
of Labor and Social Development with social
er was logistics, with groups in São Bernardo
organizations and companies. Projects pre-
do Campo (SP). The total of 800 class hours
pared and put into practice by social entities
is divided in theoretical and practical classes,
supported by the productive sector – compa-
held in the stores or distribution centers.
nies – that fund the activity. Funds are partly
provided by tax rebates (as much as 75% of
Classes are given by Lojas Renner staff mem-
ICMS tax) and by company cash flow.
bers who convey the Renner Values while
sharing knowledge and retail experience with
The program’s fourth edition in 2012 includes
young students. These instructors form par-
Lojas Renner’s participation in two notices in
ticipants in the Estilo Solidário program, a Lo-
a partnership with Instituto Nestor de Paula,
jas Renner corporate volunteer project – see
involving projects in favor of women.
more below.
2012
2011
2010
Total investments (R$)
268,800
268,800
183,000
Young people trained*
50
139
40
Employability by young people (%)
90
85
85
Lojas Renner Projeto Pescar
* The difference in the number of youths trained by Projeto Pescar between 2011 and 2012 results from closing down of the São Bernardo do Campo and Campinas units
in the course of 2012. This occurred owing to a change in legislation under the MTE Normative Ruling (MTE ordinance 723/12) which led to changes in the country’s training
system. The Porto Alegre unit continues its activities. The project will be included in the Escola de Varejo activities.
99
Escola de Varejo Program
As an example of seeking to continually enhance
its activities and to meet its ensuing expansion
requirements, in 2012 Lojas Renner launched
the Escola de Varejo program, which encourages professional training and insertion of young
people in the labor market, in a partnership with
non-governmental entities. This consists in the
provision of free of charge courses regarding assistance in the retail trade, ensuring employability
and benefiting the regional economy, with a pilot
group in Salvador (BA) formed by 18 youths. A
second group of 15 participants is being organized in the same city.
This action trains young people to work in the
Company based on the Renner Values and is
closely related to Lojas Renner business strategies and sustainability guidelines, as it expedites
retaining employees already adapted to a retail
profile, from local communities and young trainees. Lojas Renner staff members participating
as instructors also display their solidarity through
the corporate volunteer spirit acquired among
the corporate values.
The program was started with a pilot group in
Salvador (BA) of 18 young people. A second
group of 15 participants is being organized in the
same city. With an estimated investment totaling
R$500 thousand for 2013, the target consists in
training 115 youths and expanding the number
of schools to five, with new units in Santa Catarina and São Paulo. The target in the future is to
put Escola de Varejo in place the program in all
the regions covered by the Company.
100
Local Development GRI SO1 | EC8 | EC9 | DMA SO | DMA EC
Bom Jesus Network
The Bom Jesus network was organized in 2009 to assist the community neighboring the Lojas
Renner administration facilities in Porto Alegre (RS). In involves projects directed at women, children
and teenagers and is focused on inserting the community in the labor market, and integrating children
and youths in educational and sporting programs. It also includes development goals devised jointly
with community leaders, public bodies and companies headquartered in the district.
Bom Jesus Network¹
Total investments (R$)
20122
20113
20103
854,773.90
292,825.42
644,073.04
10
2
9
Total projects each year
1
Funds arising from the Solidarity law.
² Projects supported by the first call notice.
² Projects supported by the second call notice.
The network seeks to strengthen the local
Estilo Solidário Program
community’s independence, preparing it to
Lojas Renner knows that changes in society
continue on its own on the project’s conclu-
will occur only with the participation of people
sion. The Bússola do Desenvolvimento is one
who live in it, and hence since 2009 it holds
of the highlighted actions covered by the net-
its corporate volunteer program: the Estilo
work, in a partnership with the town hall and
Solidário. This is its manner of encouraging
serving as a local development indicator, mea-
volunteer work among its staff members, in
suring the results of the actions implemented.
addition to holding online and live courses on
In 2012 the Bússola’s second edition was
the subject of individual assertion.
postponed to 2013 owing to the municipality’s
electoral campaigns.
Support by Lojas Renner to this attitude is visible, for example, in the approval to carry out
During the project’s three years it was possible
such activities during working hours and limit-
to feel the improved integration by social or-
ed to four hours per month, and the use of the
ganizations and the more vigorous community
company’s physical resources such as rooms
leaderships in the district. The outcome fasci-
and support material, to organize actions and
nated everybody involved and encouraged a
hold regular meetings to monitor and assess
continued investment in the community for the
activities. To this end, the Company has vol-
next five years, intensifying the changes put
unteer groups located in its units throughout
in place.
Brazil, engaged in the Pescar and Escola de
Varejo projects, as well as in other projects
sponsored by the institute.
101
Social Balance Sheet Ibase + NBCT 15
TP GRI EC1 | DMA EC
1 – Calculation base
2012 – R$ thousands
2011 – R$ thousands
Net Revenues (RL)
3,645,414.00
3,105,831.00
Operating Profit (RO)
355,401.00
336,907.00
Gross Payroll (FPB)
278,719.00
232,412.00
2,076,738.00
1,776,728.00
Total Value Added (VAT)
2- Internal Social Indicators
% over RL
% over VAT
R$
% over FPB
thousands
% over RL
% over VAT
Meals
21,467
7.70
0.59
1.03
24,396
10.50
0.79
1.37
Mandatory social charges
96,997
34.80
2.66
4.67
80,880
34.80
2.60
4.55
Private pension plan
Health
Health and occupational safety
Education
Culture
Professional training and development
Nursery and nursery subsidy
Sports
0
0.00
0.00
0.00
0
0.00
0.00
0.00
24,925
8.94
0.68
1.20
21,035
9.05
0.68
1.18
787,136
282.41
21.59
37.90
0
0.00
0.00
0.00
311
0.11
0.01
0.01
311
0.13
0.01
0.02
902
0.32
0.02
0.04
426
0.18
0.01
0.02
8,297
2.98
0.23
0.40
7,540
3.24
0.24
0.42
326
0.12
0.01
0.02
288
0.12
0.01
0.02
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Profit sharing
27,497
9.87
0.75
1.32
4,949
2.13
0.16
0.28
Commuting
15,182
5.45
0.42
0.73
14,517
6.25
0.47
0.82
Others
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Total - internal social indicators
983,040
352.70
26.97
47.34
154,342
66.41
4.97
8.69
3- External Social Indicators
R$
thousands
% over RO
% over RL
% over VAT
R$
thousands
% over RO
% over RL
% over VAT
Education
Culture
Health and sanitation
Sports
393
0.11
0.01
0.02
268
0.08
0.01
0.02
2,202
0.62
0.06
0.11
3,389
1.01
0.11
0.19
0
0.00
0.00
0.00
0
0.00
0.00
0.00
960
0.27
0.03
0.05
230
0.07
0.01
0.01
Eradication of hunger and food safety
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Sectoral indicator
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Others
11,872
3.34
0.33
0.57
10,799
3.21
0.35
0.61
Total contributions to society
15,427
4.34
0.42
0.74
14,686
4.36
0.47
0.83
Taxes (less social charges)
Total - external social indicators
102
R$
% over FPB
thousands
0
0.00
0.00
0.00
0
0.00
0.00
0.00
15,427
4.34
0.42
0.74
14,686
4.36
0.47
0.83
4- Environmental Indicators
R$
thousands
% over RO
% over RL
% over VAT
R$
thousands
% over RO
% over RL
% over VAT
4.1 – Investments related to company production/operations
Expropriation of land
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Environmental liabilities and contingencies
0
0.00
0.00
0.00
0
0.00
0.00
0.00
245,778
69.16
6.74
11.83
185,618
55.09
5.98
10.45
0
0.00
0.00
0.00
0
0.00
0.00
0.00
10,100
2.84
0.28
0.49
85,000
25.23
2.74
4.78
Technological and industrial development program
Energy conservation
Environmental education
Sectoral indicator
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Others
0
0.00
0.00
0.00
0
0.00
0.00
0.00
255,878
72.00
7.02
12.32
270,618
80.32
8.71
15.23
Environmental education projects in communities
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Preservation and/or recovery of
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Total investments related to company production/operations
4.2 – Investments in external programs and/or projects
degraded environments
Others
0
0.00
0.00
0.00
0
0.00
0.00
0.00
Total investments in external programs
0
0.00
0.00
0.00
0
0.00
0.00
0.00
255,878
72.00
7.02
12.32
270,618
80.32
8.71
15.23
and/or projects
Total investments in the environment (4.1 + 4.2)
Breakdown of investments in the environment
R$ thousands
% of total
R$ thousands
% of total
219,903
85.94
185,618
68.59
Total investments in environmental maintenance actions
25,875
10.11
0
0.00
Total investments in environmental offsetting actions
10,100
3.95
85,000
31.41
0
0
0
Total investments in environmental prevention actions
Number of environmental, administration and court
proceedings filed against the entity:
Sum of fines and indemnities with regard to environmental
matters imposed by administration and/or courts
With regard to annual goals to minimize residues,
consumption in general in production/operations, to increase
efficiency in the use of natural resources, the company:
5- Staff Member Indicators
Nbr of employees at end of period
0.00
0.00
( ) has no goals (X) complies with 51 to 75% ( ) has no goals (X) complies with 51 to 75%
( ) complies with ( ) complies with 76 to 100% ( ) complies with ( ) complies with 76 to 100%
0 to 50%
0 to 50%
2012
2011
IN UNITS
IN UNITS
14,881
14,035
Nbr of admissions during period
8,142
7,330
Nbr of terminations during period
7,240
6,346
Nbr of interns
Nbr of employees over 45 years of age
16
24
867
794
Nbr of employees per age bracket:
Below 18 years of age
322
119
From 18 to 35 years of age
11,956
11,423
1,864
1,783
735
666
38
44
Over 60 years of age
103
Nbr of employees per education:
Illiterate
0
0
556
522
12,922
12,210
1,258
1,193
Basic schooling
Middle/technical schooling
Higher education
Post-graduates
Nbr of women working in the company
179
110
10,767
10,112
% of leadership functions held by women
53.8
52.20
Nbr of men working in the company
4,148
3,923
% of leadership functions held by men
46.20
47.80
Nbr of blacks working in the company
4,331
3,918
% of leadership functions held by blacks
0.71
0.53
Nbr of handicapped people
217
219
271,789.00
226,682.00
6,930.00
5,730.00
Difference between lowest salary paid by the company and
Minimum Salary
4.82
4.49
6 – Relevant information with regard to the exercise of corporate citizenship
2012
2011
36
31
Gross compensation broken down by:
Employees
Managers
Total number of occupational accidents
Social and environmental projects developed by the
company were defined by:
( ) senior management
(X) senior management and managers
( ) every employee
( ) every employee
Safety and health standards in the work environment
were defined by:
(X) senior management
( ) every employee
( ) everybody + CIPA
( ) every employee
( ) everybody + CIPA
Regarding free trade union association, the right to
collective bargaining and in-house representation of
employee, the company:
( ) does not get involved
(X) complies with WTO standards
( ) encourages and abides by the WTO
(X) complies with WTO standards
( ) encourages and abides by the WTO
Private pension plans include:
( ) senior management and managers
( ) every employee
( ) every employee
Profit sharing includes:
(X) every employee
(X) every employee
( ) are not considered
When selecting employees, the same ethical and social and
( ) are suggested
environmental responsibility standards adopted by the company:
(X) are required
( ) are not considered
( ) are suggested
(X) are required
With regard to employee participation in volunteer work
programs, the company:
( ) supports
(X) organizes and encourages
( ) supports
(X) organizes and encourages
Total number of consumer complaints and criticism:
in the company 84,779 in
Procon and Law courts
in the company 92,429 in
Procon and Law courts
Sum of fines and indemnities to customers ordered by consumer
in Procon 138,084 in Law courts 11,086,984
protection and defense bodies or by Law courts
in Procon 47,332 in Law courts 9,378,547
Number of labor claims:
Filed against the entity
104
850
752
Deemed with grounds
259
185
Deemed groundless
109
116
17,700.381
12,590.234
2,076,738.00
1,776,728.00
Total sum of indemnities and fine paid by order of the Law
courts:
Total value added payable (in R$ thousands)
Breakdown by Value Added
R$ thousands
% of total
R$ thousands
% of total
Government
995,266.00
47.92
857,022.00
48.24
Employees
456,657.00
21.99
379,156.00
21.34
Shareholders
266,551.00
12.84
252,680.00
14.22
Third parties
269,414.00
12.97
203,643.00
11.46
88,850.00
4.28
84,227.00
4.74
Retained
7 – Other Information
2- Internal Social Indicators – Education: Sums invested in in-company MBAs from March 2011 to October 2012.
3- External Social Indicators – Others: Expenditures with the creation of employment and income for omen, local development, support to children and teenagers (Solidarity law), support to the elderly (Elderly fund), clothing donations to the state governments of RS, SC and SP.
6 – Relevant information with regard to the exercise of corporate citizenship: total number of consumer complaints and criticism to the company: complaints
directly at the Enchantmeters in the stores. Through this system, claims are settled punctually by managers in each store. - Number of labor proceedings: to
inform of labor lawsuits filed against the entity, deemed to be with grounds and groundless, those proceedings were considered that had been shelved during
2011 and 2012.
Information on Camicado will be disclosed in 2013 only.
105
Index
GRI 3.12
Based on GRI guidelines, version G3.1, Lojas Renner meets the applicable Level B requisites for disclosure of information
on the performance of economic, social and environmental – without external verification – and submits the assessment in
connection with the company’s representation pursuant to the criteria depicted in the figure that follows:
G3 Performance
Indicators for the
Industry Supplement
Respond to at least 10 Performance
Indicators, including at least one of each of
the following areas: Social, Economic and
Environmental.
B+
Information on the Management Approach
for each Indicator Category.
Respond to at least 20 Performance Indicators,
including at least one of each of the
following areas: Economic, Environmental,
Human Rights, Labor Practices, Society
and Product Responsibility.
A
A+
The same required for Level B.
Management Approach reported for each
Indicator Category.
Respond to each essential G3
Indicator and the Industry Supplement(*) with
due consideration of the Principle of Materiality
in one of the following forms:
(a) responding to the Indicator, or
(b) explaining the reason for omission
Report
WithExternally
External VerifiAssure
cation d
Result
Information on
the G3 Management
Approach
B
Respond to all of the criteria listed for
Level C plus:
1.2
3.9, 3.13
4.5 to 4.13, 4.16 to 4.17.
With External Verification
Result
Respond to items:
1.1
2.1 to 2.10
3.1 to 3.8, 3.10 to 3.12
4.1 to 4.4; 4.14 to 4.15.
Not required.
Result
Report Content
G3 Profile
C+
With External Verification
C
Level of Appliance of the Report
* Sectorial supplement in its final version.
Profile Indicators
1. Profile Indicators
Report
AR’s Pages
1.1
Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent
senior position) about the relevance of sustainability to the organization and its strategy.
Total
4
1.2
Description of key impacts, risks, and opportunities.
Total
4; 39; 40
2. Organization Profile
Report
AR’s Pages
2.1
Name of the organization.
Total
11
2.2
Primary brands, products, and/or services.
Total
15; 17; 19; 20; 23
2.3
Operational structure of the organization, including main divisions, operating companies,
subsidiaries, and joint ventures.
Total
11; 15
2.4
Location of organization’s headquarters.
Total
15
2.5
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
Total
16
2.6
Nature of ownership and legal form.
Total
11
2.7
Markets served (including geographic breakdown, sectors served, and types
of customers/beneficiaries).
Total
6; 11; 15; 16
2.8
Scale of the reporting organization.
Total
11; 15; 17; 48; 50; 51
2.9
Significant changes during the reporting period regarding size, structure, or ownership.
Total
15
2.10
Awards received in the reporting period.
Total
44
Global Compact
Global Compact
107
3. Report Parameters
Report
AR’s Pages
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
Total
6
3.2
Date of most recent previous report (if any).
Total
6
3.3
Reporting cycle (annual, biennial, etc.)
Total
6
3.4
Contact point for questions regarding the report or its contents.
Total
6
3.5
Process for defining report content, including: a) determining materiality, b) prioritizing topics
within the report, and c) identifying stakeholders the organization expects to use the report.
Total
6; 7
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, and suppliers).
Total
6
3.7
State any specific limitations on the scope or boundary of the report. See completeness
Principle for explanation of scope.
Total
6
3.8
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,
and other entities that can significantly affect comparability from period to period and/or
between organizations.
Total
6
3.9
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information
in the report.
Total
6
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and
the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, and measurement methods).
Total
6
3.11
Significant changes from previous reporti ng periods in the scope, boundary, or measurement methods applied in the report.
Total
6; 11
3.12
Table identifying the location of the Standard Disclosures in the report.
Total
107
Report
AR’s Pages
Total
There was no external
check of data regarding
GRI indicators. Economic
and financial data are in
accordance with the Financial Statements audited by
PricewaterhouseCoopers
Auditores Independentes.
3. Report Parameters
3.13
Policy and current practice with regard to seeking external assurance for the report.
4. Governance, Commitments, and Engagement Governance
108
Report
AR’s Pages
4.1
Governance structure of the organization, including committees under the highest
governance body responsible for specific tasks, such as setting strategy or
organizational oversight.
Total
34
4.2
Indicate whether the Chair of the highest governance body is also an executive officer (and, if
so, their function within the organization’s management and the reasons for this arrangement).
Total
35
4.3
For organizations that have a unitary board structure, state the number of members of the
highest governance body that are independent and/or non-executive members.
Total
35
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to
the highest governance body.
Total
29; 35
4.5
Linkage between compensation for members of the highest governance body, senior
managers, and executives (including departure arrangements), and the organization’s
performance (including social and environmental performance).
Total
38
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Total
37
4.7
Process for determining the composition, qualifications and expertise of the members of
the highest governance body and its committees,including any consideration of gender and
other indicators of diversity.
Total
34; 35; 39
4.8
Internally developed statements of mission or values, codes of conduct, and principles relevant
to economic, environmental, and social performance and the status of their implementation.
Total
11; 14
4.9
Procedures of the highest governance body for overseeing the organization’s identification
and management of economic, environmental, and social performance, including relevant
risks and opportunities, and adherence or compliance with internationally agreed standards,
codes of conduct, and principles.
Total
26; 28; 35
4.10
Processes for evaluating the highest governance body’s own performance, particularly with
respect to economic, environmental, and social performance.
Total
34; 35; 39
INDEX
Global Compact
Global Compact
Global Compact
4.11
Explanation of whether and how the precautionary approach or principle is addressed by
the organization.
Total
26; 29; 40
4.12
Externally developed economic, environmental, and social charters, principles, or other
initiatives to which the organization subscribes or endorses.
Total
43
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy
organizations in which the organization: a) has positions in governance bodies, b) participates in
projects or committees, c) provides substantive funding beyond routine membership dues or d) views
membership as strategic.
Total
43
4.14
List of stakeholder groups engaged by the organization.
Total
6; 8
4.15
Basis for identification and selection of stakeholders with whom to engage.
Total
6-9
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and
by stakeholder group.
Total
7; 8
4.17
Key topics and concerns that have been raised through stakeholder engagement, and
how the organization has responded to those key topics and concerns, including through
its reporting.
Total
7; 30
Economic Performance Indicators
Management
DMA EC
Disclosure on Economic Management Approach
Report
AR’s Pages
Aspect
Economic Performance
Total
Financial statements |
Ibase
Aspect
Market Presence
Total
67; 70; 89; 92
Aspect
Indirect Economic Impacts
Total
93 -101
Report
AR’s Pages
Aspect: Economic Performance
Global Compact
Global Compact
Core
EC1
Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations, and other community investments,
retained earnings, and payments to capital providers and governments.
Total
51 - 55
102 - 105
Financial
statements
Core
EC2
Financial implications and other risks and opportunities for the organization’s
activities due to climate change.
Total
40
Core
EC3
Coverage of the organization’s defined benefit plan obligations.
Total
The Company does not
provide a private pension
plan to its employees.
Core
EC4
Significant financial assistance received from government.
Total
The Company does not
receive financial assistance
from the government.
Report
AR’s Pages
Global Compact
6
Aspect: Market Presence
7; 8
Aditional
EC5
Range of ratios of standard entry level wage compared to local minimum wage
at significant locations of operation.
Total
70 - 71
Core
EC6
Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation.
Total
89; 92
Core
EC7
Procedures for local hiring and proportion of senior management hired from the
local community at locations of significant operation.
Total
67
6
Report
AR’s Pages
Global Compact
Aspect: Indirect Economic Impacts
Core
EC8
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or
pro bono engagement.
Total
95 - 101
Aditional
EC9
Understanding and describing significant indirect economic impacts, including
the extent of impacts.
Total
96 - 101
109
Environmental Performance Indicators
Management
DMA EN
Disclosure on Environment Management Approach
Report
Aspect
Materials
Partial
Aspect
Energy
Aspect
Water
Aspect
Biodiversity
Aspect
Emissions, Effluents, and Waste
Aspect
Aspect
Global Compact
58
8; 9
59; 66
7; 8; 9
Total
59
7; 8; 9
Total
65
7; 8
Total
59; 60; 62; 65; 66
7; 8; 9
Products and Services
Total
58 - 60; 62; 64; 66
7; 8; 9
Compliance
Total
66
8
Aspect
Transport
Total
60; 65
8
Aspect
Overall
Total
66
7; 8; 9
Report
AR’s Pages
Global Compact
Aspect: Materials
Core
EN1
Materials used by weight or volume.
Core
EN2
Percentage of materials used that are recycled input materials.
Aspect: Energy
Total
Partial
58
8
Total
58
8; 9
Report
AR’s Pages
Global Compact
8
Core
EN3
Direct energy consumption by primary energy source.
Total
59
Core
EN4
Indirect energy consumption by primary source.
Total
59
8
Aditional
EN5
Energy saved due to conservation and efficiency improvements.
Partial
59
7; 8; 9
Aditional
EN6
Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements
as a result of these initiatives.
Total
23; 66
7; 8; 9
Aditional
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
Partial
59
7; 8; 9
Report
AR’s Pages
Global Compact
Aspect: Water
Core
EN8
Total water withdrawal by source.
Total
59
8
Aditional
EN9
Water sources significantly affected by withdrawal of water.
Total
59
8
Aditional
EN10
Percentage and total volume of water recycled and reused.
Total
59
7; 8; 9
Report
AR’s Pages
Global Compact
Aspect: Biodiversity
Core
EN11
Location and size of land owned, leased, managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected areas.
Total
65
7; 8
Core
EN12
Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas.
Total
65
7; 8
Aditional
EN13
Habitats protected or restored.
Total
65
7; 8
Aditional
EN14
Strategies, current actions, and future plans for managing impacts on biodiversity.
Total
65
7; 8
Aditional
EN15
Number of IUCN Red List species and national conservation list species
with habitats in areas affected by operations, by level of extinction risk.
Total
65
8
Report
AR’s Pages
Global Compact
Aspect: Emissions, Effluents, and Waste
110
AR’s Pages
Core
EN16
Total direct and indirect greenhouse gas emissions by weight.
Total
60
8
Core
EN17
Other relevant indirect greenhouse gas emissions by weight.
Total
60
8
Aditional
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
Total
60; 66
7; 8; 9
Core
EN19
Emissions of ozone-depleting substances by weight.
Not applicable,
as there is no productive
process likely to emit
these pollutants.
8
INDEX
Not
applicable
Not
applicable
Not applicable,
as there is no productive
process likely to emit
these pollutants.
Core
EN20
NO, SO, and other significant air emissions by type and weight.
Core
EN21
Total water discharge by quality and destination.
Total
59
8
Core
EN22
Total weight of waste by type and disposal method.
Total
62; 63
8
Core
EN23
Total number and volume of significant spills.
Total
62
8
Aditional
EN24
Weight of transported, imported, exported, or treated waste deemed hazardous
under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage
of transported waste shipped internationally.
Total
62
8
Aditional
EN25
Identity, size, protected status, and biodiversity value of water bodies and
related habitats significantly affected by the reporting organization’s discharges
of water and runoff.
Total
65
7; 8
Report
AR’s Pages
Global Compact
Total
58 - 60; 62; 64; 66
7; 8; 9
Partial
58; 64
7; 8; 9
Report
AR’s Pages
Global Compact
Total
There were no cases.
8
Report
AR’s Pages
Global Compact
Total
60; 65
8
Report
AR’s Pages
Global Compact
Total
66
7; 8; 9
Report
AR’s Pages
Global Compact
Aspect: Products and Services
Core
EN26
Initiatives to mitigate environmental impacts of products and services,
and extent of impact mitigation.
Core
EN27
Percentage of products sold and their packaging materials that are reclaimed
by category.
Aspect: Compliance
Core
EN28
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with environmental laws and regulations.
Aspect: Transport
Aditional
EN29
Significant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting members
of the workforce.
Aspect: Overall
Aditional
EN30
Total environmental protection expenditures and investments by type.
8
Labor Practices and Decent Work Performance Indicators
Management
DMA LA
Disclosure on Labor Practices Management Aprroach
Aspect
Employment
Total
67 - 70; 75
6
Aspect
Labor/Management Relations
Total
93
1; 3
Aspect
Occupational Health and Safety
Total
72 - 74
Aspect
Training and Education
Total
79 - 82
Aspect
Diversity and Equal Opportunity
Total
75 - 77
1; 6
Aspect
Ratio of basic salary between men and women
Total
70; 72
1
Report
AR’s Pages
Global Compact
Aspect: Employment
LA1
Total workforce by employment type, employment contract, and region, broken
down by gender.
Partial
67 - 69; 75; 77
Core
LA2
Total number and rate of new employee hires and employee turnover by age group,
gender, and region.
Partial
67 - 69
Aditional
LA3
Benefits provided to full-time employees that are not provided to temporary or
part-time employees, by major operations.
Total
70 - 72
Core
6
111
Aspect: Labor/Management Relations
Report
AR’s Pages
Global Compact
Core
LA4
Percentage of employees covered by collective bargaining agreements.
Total
93
1; 3
Core
LA5
Minimum notice period(s) regarding operational changes, including whether it is
specified in collective agreements.
Total
93
3
Report
AR’s Pages
Global Compact
Total
73
Aspect: Occupational Health and Safety
Aditional
LA6
Percentage of total workforce represented in formal joint management – worker
health and safety committees – that help monitor and advise on occupational
health and safety programs.
Core
LA7
Rates of injury, occupational diseases, lost days, and absenteeism, and number
of workrelated fatalities by region and by gender.
Aspect: Occupational Health and Safety
Core
LA8
Aditional
LA9
Education, training, counseling, prevention, and risk-control programs in place
to assist workforce members, their families, or community members regarding
serious diseases.
Health and safety topics covered in formal agreements with trade unions.
Aspect: Training and Education
Partial
73 - 74
Report
AR’s Pages
Total
73
Total
73
Report
AR’s Pages
Global Compact
Global Compact
Core
LA10
Average hours of training per year per employee by gender, and by
employee category.
Total
79; 80
Aditional
LA11
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
Total
79; 81; 82
Aditional
LA12
Percentage of employees receiving regular performance and career development reviews, by gender.
Total
70; 79; 82
Report
AR’s Pages
Global Compact
Total
75 - 77
1; 6
Report
AR’s Pages
Global Compact
Total
70; 71
1
Aspect: Diversity and Equal Opportunity
Core
LA13
Composition of governance bodies and breakdown of employees per category
according to gender, age group, minority group membership, and other indicators of diversity.
Aspect: Diversity and Equal Opportunity
Core
LA14
Ratio of basic salary and remuneration of women to men by employee category, by signifi cant locations of operation.
Human Rights Performance Indicators
Management
DMA HR
Disclosure on Human Rights Management Approach
Report
AR’s Pages
Global Compact
Aspect
Investment and Procurement Practices
Total
41; 89; 90; 93
1; 2; 4; 5; 6
Aspect
Non-Discrimination
Total
90
1; 6
Aspect
Freedom of Association and Collective Bargaining
Total
90 - 93
1; 3
Aspect
Child Labor
Total
41; 89; 90; 92
1; 4; 5
Aspect
Forced and Compulsory Labor
Total
41; 89; 90; 93
1; 4; 5
Aspect
Security Practices
Total
41
1; 2
Aspect
Indigenous Rights
Total
None.
1
Report
AR’s Pages
Global Compact
Aspect: Investment and Procurement Practices
112
Core
HR1
Percentage and total number of signifi cant investment agreements and contracts that include clauses incorporating human rights concerns, or that have
undergone human rights screening.
Total
89 - 90
1; 2; 4; 5; 6
Core
HR2
Percentage of signifi cant suppliers, contractors and other business partners
that have undergone human rights screening, and actions taken.
Total
89 - 91
1; 2; 4; 5; 6
Aditional
HR3
Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage
of employees trained.
Total
41
1; 2; 4; 5;
INDEX
Aspect: Non-Discrimination
Report
AR’s Pages
Global Compact
Core
Total
90
1; 6
Report
AR’s Pages
Global Compact
Total
90
1; 3
Report
AR’s Pages
Global Compact
Total
41; 89; 90; 92
1; 4; 5
Report
AR’s Pages
Global Compact
Total
41; 89; 90; 93
1; 4; 5
Report
AR’s Pages
Global Compact
Total
Lojas Renner has no
surveillance personnel in its
stores, but rather inspectors that assist in inhibiting
the theft of goods. In the
event of such cases, the
inspectors are instructed to
call on the shopping mall’s
surveillance team.
1; 2
Report
AR’s Pages
Global Compact
Total
None.
1
Global Compact
HR4
Total number of incidents of discrimination and corrective actions taken.
Aspect: Freedom of Association and Collective Bargaining
Core
HR5
Operations and significant suppliers identifi ed in which the right to exercise
freedom of association and collective bargaining may be voilated or at significant
risk, and actions taken to support these rights.
Aspect: Child Labor
Core
HR6
Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition
of child labor.
Aspect: Forced and Compulsory Labor
Core
HR7
Operations and significant suppliers identifi ed as having signifi cant risk for
incidents of forced or compulsory labor, and measures to contribute to the
elimination of all forms of forced or compulsory labor.
Aspect: Security Practices
Aditional
HR8
Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.
Aspect: Indigenous Rights
Aditional
HR9
Total number of incidents of violations involving rights of indigenous people and
actions taken.
Society Performance Indicators
Management
DMA SO
Disclosure on Social Management Approach
Report
AR’s Pages
Aspect
Local Community
Total
30; 93 - 101
1
Aspect
Corruption
Total
41
10
Aspect
Public Policy
Total
93; 94
10
Aspect
Anti-Competitive Behavior
Total
None.
Total
In 2012 Lojas Renner
was fined R$348,101 owing to administrative proceedings by the Ministry
of Employment and Labor
due to non-compliance
with the full allowance
for hiring handicapped
persons – article 93 in
Law No. 8213/91.
Aspect
Compliance
113
Aspect: Local Community
Core
SO1
Percentage of operations with implemented local community engagement,
impact assessments, and development programs.
Aspect: Corruption
Report
AR’s Pages
Global Compact
Total
30; 93 -101
1
Report
AR’s Pages
Global Compact
Core
SO2
Percentage and total number of business units analyzed for risks related
to corruption.
Total
41
10
Core
SO3
Percentage of employees trained in organization’s anti-corruption policies
and procedures.
Total
41
10
Core
SO4
Actions taken in response to incidents of corruption.
Total
41
10
Report
AR’s Pages
Global Compact
Aspect: Public Policy
Core
SO5
Public policy positions and participation in public policy development
and lobbying.
Total
93
10
Aditional
SO6
Total value of financial and in-kind contributions to political parties, politicians,
and related institutions by country.
Total
93
10
Report
AR’s Pages
Global Compact
Total
None.
Report
AR’s Pages
Total
In 2012 Lojas Renner was
fined R$348,101 owing to
administrative proceedings
by the Ministry of Employment and Labor due to
non-compliance with the full
allowance for hiring handicapped persons – article 93
in Law No. 8213/91.
AR’s Pages
Aspect: Anti-Competitive Behavior
Aditional
SO7
Total number of legal actions for anti-competitive behavior, anti-trust, and
monopoly practices and their outcomes.
Aspect: Compliance
Core
SO8
Monetary value of significant fines and total number of non-monetary sanctions
for non-compliance with laws and regulations.
Global Compact
Product Responsibility Performance Indicators
Management
DMA PR
Disclosure on Products and Services Management Approach
Report
Aspect
Customer Health and Safety
Total
84
Aspect
Product and Service Labeling
Total
84 - 88
Aspect
Marketing Communications
Total
84
Aspect
Customer Privacy
Total
None.
Total
In 2012 the Administrative
Appeal filed by the
Company against the Deficiency Notice by PROCON
São Paulo was judged,
regarding non-compliance
with State Law
No. 13,747/2009, which
requires suppliers to specify a shift to deliver goods
and/or provide services.
Aspect
114
INDEX
Compliance
Global Compact
8
Aspect: Customer Health and Safety
Report
AR’s Pages
Global Compact
Core
PR1
Life cycle stages in which health and safety impacts of products and services
are assessed for improvement, and percentage of significant products and
services categories subject to such procedures.
Total
84
Aditional
PR2
Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their life cycle, by type of outcomes.
Total
None.
Report
AR’s Pages
Global Compact
Aspect: Product and Service Labeling
Core
PR3
Type of product and service information required by procedures, and percentage
of significant products and services subject to such information requirements.
Total
84
8
Aditional
PR4
Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes.
Total
None.
8
Aditional
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Total
84 - 88
Report
AR’s Pages
Aspect: Marketing Communications
Core
PR6
Programs for adherence to laws, standards, and voluntary codes related to
marketing communications, including advertising, promotion, and sponsorship.
Total
There is not any.
Aditional
PR7
Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising, promotion,
and sponsorship by type of outcomes.
Total
None.
Report
AR’s Pages
Total
None.
Report
AR’s Pages
Total
In 2012 the Administrative Appeal filed by the
Company against the
Deficiency Notice by
PROCON São Paulo
was judged, regarding
non-compliance with State
Law No. 13,747/2009,
which requires suppliers
to specify a shift to deliver goods and/or provide
services. Sum of fine:
R$505,493.33.
Aspect: Customer Privacy
Aditional
PR8
Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data.
Aspect: Compliance
Core
PR9
Monetary value of significant fines for non-compliance with laws and regulations
concerning the provision and use of products and services.
Global Compact
Global Compact
Global Compact
115
Corporate
Information
GRI 3.4
Headquarters
Lojas Renner S.A.
Avenida Joaquim Porto Villanova, 401
Porto Alegre (RS) – ZIP 91410-400
Phone: + 55 51 2121-7044
Fax: + 55 51 2121-7121
E-mail: [email protected]
Site: www.lojasrenner.com.br
Suggestions, inquiries and
comments on this report:
Lojas Renner S.A.
Sustainability Management
Avenida Joaquim Porto Villanova, 401
Porto Alegre (RS) – ZIP 91410-400
Phone: + 55 51 3272-2577
Fax: + 55 51 2121-7266
E-mail: [email protected]
116
Credits
Coordination
Human Resources Officer – Sustainability Management
Contents Consultancy and Graphic Design
TheMediaGroup
Illustrations
Design – Development and Style by Lojas Renner
Initiation of chapters, tags, GHG inventories and EcoEstilo – Canhotórium Arte Aplicada
Other illustrations – TheMediaGroup
Printing
Braspor
Photos
Social project photos – Ita Kirsch
Store front photo – Celso Chittolina
Other photos – Felipe Gombossy
The models in this report’s photos are Lojas Renner staff members. The fees intended
as payment to these models will be donated to Instituto Lojas Renner.
117
118

Annual Sustainability Report - Portal

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