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Operating Sustainably

Our business operations have a direct and indirect impact on the environment. We are committed to contributing to improving environment conditions and sustainable development. Our programs in this pillar focus on sustainable materials, waste management, and energy efficiency.

• Use of eco-friendly material :   

  All material choices will have an impact on the environment and people. We are committed to using our resources responsibly to reduce our environmental impact and to protect our ecosystem. We continue to choose and innovate on materials with lower negative impact. By choosing suitable materials for our products and packaging, we hope to help accelerate our strategy to operate in a sustainable manner. 

  In 2023, 2.4% of our products used eco-friendly materials. We aim to have 4% of our clothing products using ecofriendly materials by 2030. The eco-friendly merchandising includes clothing made of materials like wood pulp that is responsibly-sourced and completely biodegradable. In the meantime, we have started to offer apparel products made of recycled plastic bottles.

  As a result of our effort in promoting the use of materials with lower environmental impact as well as prioritising reducing the use of plastic in the packaging of our products, we managed to increase the use of eco-friendly material in our packaging from 82.6% in 2022 to 93.4% in 2023.

• Waste management : 

  We recognise the need to address the environmental impact of waste generation throughout our business and supply chain. We pursue the Reduce, Reuse, and Recycle approach to minimise our impact and encourage our employees to participate in these practices. We are also aware that our value chain in the clothing industry significantly impacts waste generation, especially in manufacturing and post-consumer activities. We will continue to increase our stakeholders’ awareness of sustainable practices to help minimise textile waste and its environmental impacts. 

  All of the waste generated in our operations is treated by third parties. The building management carries out all domestic waste from our Support Center and stores in serviced shopping centres. The waste generated in our Distribution Center decreased from 125.3 tons in 2022 to 14.4 tons in 2023, in line with the completion of waste management process that came from warehouse consolidation for logistics efficiency in 2022.

  In terms of managing waste, we encourage our customers to bring their unused clothing into our in-store garment collecting program to be recycled and utilised for manufacturing purposes. In 2023, we provided 47 collection points across our stores and the Support Center office at Menara Matahari. We have collected 1,759 kg of clothing from our customers through this initiative.

• Energy efficiency :  Efficiency is the key to our strategy in reducing energy consumption from non-renewable natural resources, while reducing carbon emissions.  

            In 2023, we took actions to reduce the energy consumption as follows:

1. 1. Implementing electricity efficiency campaign and socialising the policy at the Support Center. The policy requires employees to switch off all unused electricity appliances, utilise low-energy devices, and maintain discipline in electricity efficiency; 
   2. Maximising the use of energy-efficient technology such as LED lighting throughout our stores and Support Center; and
   3. Optimising the vehicle occupation and routes of company-owned trucks to reduce the fuel consumed in transporting merchandise between stores and the distribution centre.

Our other initiative is to invest in renewable energy by purchasing Renewable Energy Certificates (RECs) from the national grid (PLN). This REC was sourced from Kamojang Geothermal Power Plant, which resulted in 200 units of REC per month from July 2022 until June 2023. The RECs were estimated to be equivalent to electricity consumption in our Support Center, Distribution Center, and 8 stores in Java. 

Despite our initiatives, our total energy consumption increased from 494,611 GJ in 2022 to 552,505 GJ in 2023 due to increased sales activities.