Sustainability
Framework
Enablers
Business Integrity
- Direct economic value distribution to government
- Compliance to regulations
- Risk management
Resource Management
- Materials used
- Energy consumption
- Emissions
- Water consumption
- Effluents and waste generation
Community Programs
- Direct economic value distribution to communities
- Community Engagement
Value creation
for stakeholders
Product diversity
for customers
- Access to key consumer goods
- Savings on key consumer goods
Economic opportunities for
suppliers and entrepreneurs
- Direct economic value distribution to suppliers
- Jobs supported in the supply chain
- Local sourcing
- Impact to local business growth
Employment opportunities
- Direct economic value distribution to employees
- Total jobs supported directly in stores
- Diversity and equal opportunity
- Career development
- Health and safety
Shared Success:
Growsari Enabling
Small Business Owners
B2B
to sari-sari store owners
through a mobile app.
20,000
₱1.57 bn
Growsari is the Philippines’ first tech start-up which provides B2B grocery delivery services to sari-sari store (neighborhood sundry stores) owners through a mobile app. In September 2018, Robinsons Supermarket invested in a convertible note issued by Growsari Inc, equivalent to 28.6% of the company upon conversion. Through this joint partnership, Robinsons Supermarket promotes inclusive businesses that put micro and small enterprises at the heart of their business model, with merchandise is sourced from Robinsons Supermarket branches.
GrowSari’s tech infrastructure is all developed in-house, from call center operations to warehouse management, delivery fleet management, customer relationship management, to data analytics. Users simply need to go online to order the items they need, which will then be delivered to their stores the next day. This saves them time and energy, as they no longer need to go to supermarkets, or transact with various middlemen, to replenish their supplies.
Economic Value
Generated & Distributed
generated (revenue)
₱151,070 million
₱20,366 million
₱9,165 million
₱121,303 million
₱2,067* million
₱1,767 million
₱17.2 million
As we conduct business day to day, we believe that we positively contribute to economic growth and social mobility among our stakeholders. The economic value generated from Robinsons Retail’s activities primarily affect the economic conditions of the areas where we operate. Our operations and supply chain allow us to directly and indirectly support employment and foster a sophisticated system of partners and suppliers from across various entrepreneurial backgrounds, from big manufacturers to small and medium enterprises for both the trade and non-trade needs of our formats. In 2020, this constituted to over 80.3% of direct economic value generated at Php121 billion in payments to suppliers and other operating costs. To continue contributing to economic growth, we aim to retain our position as one the largest multi-format retailers in the Philippines, catering to the broad market through our diverse formats. We plan to further widen our participation in e-commerce spaces and expand our store network across with focus on regions outside of Metro Manila where modern retail penetration is still low. Aside from organic expansion, part of our strategy is to participate in the market’s consolidation by entering into mergers and acquisitions in existing and complementary retail formats, while targeting consistent sales growth while improving margins to ensure sustainability of operations.
Our Dividend Policy
On March 9, 2020, the Board of Directors of Robinsons Retail Holdings, Inc. approved the adoption of a new dividend policy effective 2020. Under the dividend policy, the Corporation shall implement an annual cash dividend payout ratio of forty percent (40%) of the net income attributable to parent for the preceding fiscal year.
Savers Appliances’ Modern
Lifestyle Showroom
Savers Appliances launched a modern 400-square meter lifestyle showroom in its flagship store in Angeles City, Pampanga on September 30, 2020. The event was attended by select officials from the Pampanga and Angeles City Government and representatives from Savers management and vendor partners. Sanitation measures and social distancing were implemented to ensure the safety of all those who attended.
With a contemporary interior vibe to reflect the current needs of the market, the new lifestyle showroom features today’s top-quality brands of appliances: Sony, Carrier, Condura, Samsung, Haier, TCL, Whirlpool, Fujidenzo, Sharp, Eurotek, Kolin, American Master, Electrolux, Midea, Toshiba and Tosot.
Each brand has a uniquely designed showroom with a renewed interior, highlighting the value that suits their customers’ needs and preferences. The showroom also offers assistance from product inquiry, design, and installation services.
range of home and kitchen appliances.
digital appliances at the Samsung Brand Showroom
conditioners and services at affordable prices
feature their latest technological innovations
experiences to customers
chillers and refrigerators
Our Supply Chain
At Robinsons Retail, we value collaboration to achieve mutually-beneficial terms with our suppliers. We directly engage a large network of trade and non-trade vendors through Merchandising, Operations, Supply Chain Management, as well as through the Marketing Departments for joint programs and promotions. Through our stakeholder engagement and internal assessments, we identified that the procurement terms, payment schedule, proper waste disposal, and the availability of stocks for fast moving items are material in conducting business with our suppliers.
As a retailer, we rely on the meaningful engagements we have with various suppliers, from large multinational corporations to small and medium enterprises. We believe that as we conduct business together, we positively impact local economies as we support livelihood and provide access to goods for end consumers.
Robinsons Retail has a supplier accreditation policy to assure that suppliers have the capacity to meet the demands of the business at consistent quality. Goods and stores are also monitored by quality assurance officers and each business unit also has standard store procedures on the proper disposal of waste and expired items.
27
1.5
To reduce the likelihood of producing waste and to keep stores in stock, our business units are continuously improving methods and process to forecast demand more accurately to maintain a just-in time inventory system. This, in return, increases supply efficiency as goods arrive only when they are needed. Our distribution centers follow a cross-docking system, where goods from suppliers are consolidated and sent to RRHI’s stores in a strict, time-bound manner. This enables the faster delivery of products and reduces the unnecessary maintenance of stocks.
In 2020, we bolstered our Supply Chain Management with the DHL Summit Solutions, Inc. Transport Management Center (TMC), the result from joint venture between DHL and JG Summit. The TMC provides 24/7 tractability of vehicles and orders, and provides real time planning to ensure route optimization and excellent service. Alongside Universal Robina Corporation, the RRHI formats currently included in this process are Robinsons Supermarket, Ministop, Southstar Drug, and TGP.
Merchandise Flow
Key Perfomance Areas
Demand
forecast, Order
Quantity
Vendor
Fill-Rate
DC Order
Fill-Rate
On time Delivery
(DC, Vendor)
Storage
Capacity
Utilization
Inventory
Record
Accuracy
Days in
Inventory
Out-of-stocks,
Overstocks
DC Cost (to Sales, to Throughput)
Cost/Case
DC Cost
Recovery
Supporting Small
and Medium
Enterprises
215
SME suppliers
for Robinsons
Department Store
106
SME suppliers
for Robinsons
Supermarket's Farm
to Table Project
SME sales contribution
to Robinsons Department Store
₱1,102.9
million
(7.07%) in 2019
₱425.6
million
(5.13%) in 2020
Robinsons Department Store’s Proudly Filipino Selections
Robinsons Department Store celebrates locally produced items and Filipino creativity through the Go Lokal! program and the Tindahan section in Robinsons Department Store Galleria. The sections feature items produced by medium scale enterprises, many of which are carefully handmade crafts, health and beauty products and local delicacies. The department stores provide mainstream access to these items, as well as marketing assistance to participating small enterprises in the form of assisted visual displays, planograms, and social media exposure.
On September 8, 2020, Robinsons Galleria reinvented its Home Section, re-envisioned as a 1,500 square-meter space that features a wide selection of trusted brands of home décor, furnishings, domestic appliances, storage units, and houseware. It also highlights a 160 square-meter flagship store of Curated Home, Robinsons Department Store’s exclusive brand. Curated Home provides a treasure trove of décor and accent pieces that are personally hand-picked by the brand’s Creative Director, renowned furniture designer and visual storyteller Ito Kish. Over the years, Robinsons Department Store has built a close relationship with Ito Kish, whose insight and sensibilities play a huge role in curating items in the Home and Lifestyle Section of our stores.
Empowering Farmers:
Robinsons Supermarket’s
Farm to Table Program
11,427
1,177
biodegrable
packaging
599
Robinsons Supermarket’s Farm to Table Project (FTT) engages close to 600 small-hold farmers, offering stable demand for fresh produce at fair market prices. The project also empowers and encourages farmers to adapt sustainable farming practices that preserve soil health, use less water, and have less dependence on artificial pesticides. Through FTT, we brought quality produce from provinces in the Philippines, empowering both local producers and our consumers. At present, most fresh fruits and vegetables are sourced from farms in Luzon, namely Abra, Batangas, Benguet, Bulacan, Cavite, Laguna, Quezon, Rizal, and Zambales. Some farms are also located in Metro Manila and Visayas (Cebu and Bacolod) and Mindanao (Davao).
The project started in 2018 and empowers farmers primarily through farm-gate rates and fair-market deals, which we establish through close collaboration and discourse. With farmers initially relying solely on wet markets and various middlemen, where prices and orders often fluctuate, FTT also gives much needed security to the partners through stable order quantities of produce. The array of fresh products is extensive, ranging from classic Filipino dish staples like ampalaya, string beans, okra, tomatoes, eggplant, squash, and camote; to much loved fruits like Carabao Mango and dragon fruit, and many more.
Customers also benefit from the project because measures are undertaken to guarantee freshness, safety, and quality. Information displayed on where and how the goods were farmed and sourced. The visibility organic and GAP (Good Agricultural Practices) certified farms also inform consumers about the kind of work that go into the products. Information is key to transparency, and as it lends authenticity to the project and bridges farmers to customers.
From a sustainability standpoint, the FTT addresses a need to support the agricultural sector and recognizes the irreplaceable role it plays in society in its provision of food - the most basic of necessities. Given that food is a major part of the supermarket business, it is directly tied to our operations and our supermarkets’ health and wellness value proposition to customers.
Supplier Accreditation
Robinsons Retail has a supplier accreditation policy to assure that suppliers have the capacity to meet the demands of the business at consistent quality. Goods and stores are also monitored by quality assurance officers and each business unit also has standard store procedures on the proper disposal of waste and expired items. To guarantee that our suppliers meet our standards, we employ a comprehensive supplier accreditation system. The process starts with an assessment of the product quality and marketability of merchandise from prospective partners. Suppliers that pass the assessment then submit the required government documents and undergo interviews to confirm their commitment to working with us. Through the years, we have forged long-term partnerships with some trusted suppliers with whom we have grown our business. We make sure that all suppliers, big or small, are given opportunities to grow their business.
Our supplier selection process is a critical aspect of our business. Only accredited suppliers can provide the goods and service requirements of the company and only those products or services that received accreditation shall be supplied by an accredited supplier.
All potential suppliers shall undergo the accreditation process to ensure that only qualified suppliers are selected to supply the goods and services requirements of the company. Inclusion of additional commodity/ies from an existing supplier shall require accreditation.
Inspection, evaluation and accreditation of potential suppliers shall be carried out our Supplier Accreditation Teams, who are composed of individuals who have the qualifications and capabilities to evaluate the eligibility of the suppliers to be accredited.
The Supplier Accreditation Rating System
The Supplier Accreditation Teams appraise all suppliers applying for accreditation using a rating system
- Supplier rating shall be documented through the Supplier Accreditation Rating Sheet (SARS).
- Supplier with Overall rating equal or above seventy-five (75%) shall qualify for accreditation approval.
- In cases when certain criteria for accreditation is deemed not applicable, the passing requirement of 75% shall be computed based on the total applicable criteria.
- A premium or additional five (5%) points shall be added to the rating of supplier who are Sole Distributors of products provided that the Sole Distributorship Certification has been obtained and verified.
- An additional three (3%) points shall be added to the rating of supplier if distributorship of the product is limited to two (2) suppliers only. Certification from the manufacturer on the limited distributorship has to be obtained and verified.
- The Rating System for each accreditation criteria may vary by commodity group and may be customized by the BU according to strategic importance.
- Supplier with a total rating below seventy five percent (75%) may still be recommended for accreditation provided:
- The product or service is needed to comply with regulatory requirements
- Supplier is a sole distributor; and
- Other justified reasons.
Sustainable Supply Chain Townhall
On November 11, 2020, we conducted our second townhall on Sustainability, focusing on the Supply Chain. The event, which was held virtually via Microsoft Teams, began with a discussion on the basic processes of the supply chain, then transitioned into opportunities to further improve upon how it is managed, with examples on initiatives done by the Robinsons Supermarket and Robinsons Supermarket. We also touched upon the potential of technology and sustainability in informing decisions to develop this area in business.
In the townhall, we emphasized the strategic ways to perceive business performance in respect to environment, social and governance concerns, as it has become one of the crucial criteria for the investment community in evaluating potential investments. In the supply chain of retail specifically, ESG issues can carry significant reputational and operational risks, such upstream and downstream traceability. The ESG criteria serves as a guideline for environmentally friendly, socially acceptable, and ethically righteous supply chain activities: from procurement, sourcing, supplier relationship-management actions.
Robinsons Supermarket
Capitol Hills’
Water Loop System
600%
refrigerant use
50%
Warming
Potential
19.2%
consumption
In an effort to reduce GHG emissions in our stores, Robinsons Supermarket’s Capitol Hills branch became the experimental site for the Water Loop Refrigeration system. The technology uses recirculated water as the main component in its cooling system and uses refrigerant R-410A, which has a 50% lower Global Warming Potential (GWP) compared to R-404A used in conventional centralized air-conditioning systems for the same area.
Aside from using a refrigerant with less GWP, conventional systems also use seven times more refrigerants than the Water Loop System. Aside from Robinsons Supermarket Capitol Hills, the format is looking at other potential stores which can be converted to the system as it needs an open space to operate, with studies currently being done for its stores located in Robinsons Galleria and Tagaytay.
EPTA Blue Water Loop System
Our Environment
Climate Action Targets
Throughout our Sustainability Journey, we have grown to understand the importance of Climate Action and for Robinsons Retail to become part of solutions that promote environmental stewardship. In light of this, we commit to a target of reducing GHG intensity by 20% by 2030, measured as GHG emissions relative financial performance in terms of revenue. Under our Supermarket Segment, our biggest business segment, we will also pursue initiatives to reduce energy intensity by 10% through more energy efficient materials and equipment in stores, as well as the usage of lower impact refrigerants. Likewise, for 2021, the Supermarket Segment aims increase engagement with farmers under the Farm to Table Program, targeting to grow the sales contribution from the program 0.60% from 0.53% in 2020, and add 100 more farmers to its current pool of 599. The project also encourages sustainable practices in production.
We have also begun to engage partners in our goal of crafting comprehensive Climate Action Plan, which includes scenario building, long-term targets, and conducting further studies within the next two to three years that further delineate the areas of materiality in terms of its impacts to the environment and potential contributions to Climate Change, as well as opportunities to engage environmental conservation.
Although still in need of adaptation and further study on its overall impact upon climate change metrics, we have been continually implementing energy-saving practices over the past years in select areas of our operations. While RRHI is not water-intensive as a business, it also acknowledges the importance of reducing water consumption and implements daily maintenance checks on our facilities.
We recognize plastic use as a material topic in Climate Action, as it has implications on reputational risks among our customers, investors and regulators, and the health of the environment and the preservation of natural biodiversity through plastic leakage. Our primary use of plastic is through the packaging and handling of goods that are ultimately sold to customers through our stores.
GHG
Energy, Emissions and Water
We rely on electricity and fuel for our daily operations and across its supply chain. Energy is sourced primarily from the local electrical grid that services areas where the Company’s stores operate. For this report, we implemented a more comprehensive monitoring mechanism for energy consumption across our major business units.
At present, we implement energy-saving practices such as maintenance and conversion to energy efficient materials and appliances, such as LED bulbs, inverter technology airconditioners, and refrigeration systems with less impact on the environment. The Company also closely monitors compliance requirements from the Department of Energy on standardized measures for energy and resources, especially for sites that may cross the materiality threshold on required disclosures for the agency.
We are setting developing action plans to reduce the dependence on high-intensity equipment across its operations. Our Engineering Department spearheads initiatives on the conversion to energy efficient equipment which use less energy and make use of refrigerants with a lower carbon footprint once old equipment reach their end-of-life usage, with a projected 7% reduction in energy consumption. We also believe there are ripe opportunities in exploring the potential of renewable sources of energy for our sites of operations, specifically buildings which it directly manages, such as the Robinsons Townville Community Malls, Shopwise hypermarkets, and standalone Robinsons Supermarket and The Marketplace stores.
For the distribution of our goods, we also rely on a network of third-party truckers, and in 2020, we began our data collection as baseline for our fuel consumption in this area of our business. Our future plans for the group’s supply chain are also being crafted with sustainability in mind, as we seek ways to make resource use more efficient, while taking advantage of opportunities in technologies that can enhance the performance of our distribution centers.
In 2020, energy consumption and intensity was reduced primarily due to the temporary store closures and reduced operating hours, as mandated by government in response to COVID-19, while the increase in fuel consumption was attributed to net increase in store count across the group.
As a retailing company, RRHI’s core operations are not water intensive as compared to other businesses and sources water through local third-party lines. The company primarily consumes water through employee lavatories and maintenance of cleanliness in work areas and stores. Water consumption is monitored and daily maintenance and monitoring of office pipes is conducted to address leakage.
Global Warming Potential comparison
between R-404A and R-410A
Global Warming Potential (GWP) is the ratio between the amount of greenhouse gases and carbon dioxide in the air
Solid Waste
Management
Managing our solid waste footprint is a relevant aspect in our operations. As part of our quality assurance to customers, we have stringent rules to maintain store cleanliness, proper storage and management of inventory, and waste processing to prevent cross-contamination. In coordination with our vendors, we also strictly comply with requirements on proper disposal of identified “bad” or expired products and makes sure that sub-par items do not reach the market. For produce and consumable merchandise, some supermarkets, such as Shopwise, currently engages partners to reduce food waste through donations to charities that act as food banks. Lastly, we also rely on licensed recyclers and haulers as part of our waste management.
Our stores and distribution centers have policies in place for proper waste segregation, however, a challenge we encountered was the development of a data collection system that accurately quantifies the waste produced in our stores and distribution centers. This is a crucial aspect in our monitoring of waste, and we are starting initially with our Supermarket Segment to gather data in this area, which is especially material due to the diverse waste profile of the business. The data disclosed here is based on estimates from the store and distribution center operations for 2020.
To have a firmer grasp in addressing issues surrounding solid waste and alongside strengthening our data collection systems, a number of our stores have begun engagements with partners to explore the potential of treating waste as a resource. The principle of circularity informed our collaboration with Robinsons Malls in General Trias and Las Piñas and USAID, with a project specifically targeting residual plastic waste. This waste produced by the malls, which includes our stores which are tenants, is collected and transported to be recycled Sentinel, a manufacturer of plastic products. The initiative seeks to find value chains in the waste stream of our stores, and in 2021, we plan to onboard more of our stores into the project.
We approach material efficiency from both the perspective of compliance and customer engagement, and we observe strict adherence with the pertinent regulations on using plastic and paper from local governments of our stores.
Digitalization also plays a key-role in resource management for the company. The Company’s Shared Services Departments also implemented resource reduction initiatives with less reliance on paper across transactions and investment in printing equipment that make use of less ink and materials. The Business Unit Marketing Departments have likewise reduced dependence on printed collaterals in favor of Digital Marketing. In 2020, we decreased procurement of both renewable paper bags and non-renewable plastic bags, alongside initiatives to encourage customers to bring their own eco-bags in stores. Plastics, particularly plastic packaging, is ubiquitous and currently crucial to our business and supply chain, given its ease of transportation, ability to aid in decreasing incidences of contamination and quality reduction during transport and product display, as well aid in increasing shelf-life and food-safety for end consumers. The latter is inseparable from our primary business of fresh food and grocery retail through supermarkets.
Our formats rely on the paper and plastic as primary materials for packing goods at the point of sale, which consumers will transport to their homes. The scope of this disclosure includes estimates of weighted plastics and paper (renewable) and plastic (non-renewal) bags centrally procured for the Company’s most material business segments: supermarkets, department stores, and DIY stores.
Material Use and Initiatives
in Procurement
27%
plastic bags in
2020 vs. 2019
37%
paper bags in
2020 vs. 2019
In 2020, we decreased procurement of both renewable paper bags and non-renewable plastic bags, alongside initiatives to encourage customers to bring their own eco-bags in stores.
Plastics, particularly plastic packaging, is ubiquitous and currently crucial to our business and supply chain, given its ease of transportation, ability to aid in decreasing incidences of contamination and quality reduction during transport and product display, as well aid in increasing shelf-life and food-safety for end consumers. The latter is inseparable from our primary business of fresh food and grocery retail through supermarkets. Our formats rely on the paper and plastic as primary materials for packing goods at the point of sale, which consumers will transport to their homes. The scope of this disclosure includes estimates of weighted plastics and paper (renewable) and plastic (non-renewal) bags centrally procured for the Company’s most material business segments: supermarkets, department stores, and DIY stores.
However, we acknowledge the issues that surround plastic waste and are exploring ways and partnerships to prevent its leakage into the environment, as well as mitigate the potential harmful effects that it does indeed have on wildlife and natural environments. These include conducting information programs that educate customers on the harms of plastic pollution, diverting plastic waste into recycled items, and encouraging the use of reusable containers and shopping bags in our stores.