Our Responsibility
Our responsibility
We are aware of the impact that our rapidly growing network has on the social environment and the natural environment. This is a huge responsibility that we take very seriously. We are developing the Pepco store network and growing as a business, but we do not stop caring about what is close to us.

Packaging
In 2020, we began implementing a new packaging strategy, and in 2023, we formalized our goals and introduced a packaging policy. Among our goals is to increase the share of packaging materials that can be recycled, and to eliminate, where possible, materials such as PVC, PE, and various types of laminates. Another area of our activities is to reduce the share of virgin materials in favor of those derived from recycling.

Efficient transport
At Pepco, we use intermodal transport: our products are therefore transported mainly by water and land. We optimize deliveries directly from distribution centers to stores, the so-called last mile. At this point, 3,900 stores are already served directly by five distribution centers. This allows us to shorten the path a product has to travel to reach our customers. In the future, we plan to expand our network of distribution centers precisely to optimize transport.

Bags at Pepco
In our stores, you will find four types of shopping bags. First of all, there are EcoLoop bags, which are made from recycled plastic waste and contain at least 80% recycled material. The bags are "Blue Angel" certified. Secondly, in some countries, you will also find paper bags made from recycled paper. Thirdly, if you are looking for a reusable bag, we also offer cotton bags (with Oeko-Tex Standard 100 certification) and woven plastic bags.

Better Cotton
Better Cotton is the world's leading initiative for sustainable cotton cultivation. To date, BC has trained 2.4 million farmers in more sustainable farming practices: less water consumption, caring for soil and natural habitats, reducing pesticide use, and caring for workers' well-being and rights. Pepco is the first Polish company to be part of this initiative.

Zero Discharge of Hazardous Chemicals (ZDHC)
As part of one of the steps in the implementation of PEPCO's Sustainable Development Strategy, in May 2024, we joined the Zero Discharge of Hazardous Chemicals (ZDHC) initiative, gaining the status of ZDHC Friend. This demonstrates our commitment to implementing the ZDHC MRSL (Manufacturing Restricted Substance List) and using the ZDHC Gateway platform. The ZDHC Roadmap to Zero program provides a range of platforms, guidelines, and solutions that support sustainable chemical safety in the supply chain of the apparel, footwear, and textile industries. Through our ZDHC Friend status, we aim to introduce systemic changes within our own chain and to engage our manufacturers in implementing ZDHC guidelines and solutions. These actions will enable the application of best practices in sustainable chemical management and work towards minimizing harmful environmental impact.

Waste management
Throughout the network, we segregate waste. Additionally, our distribution centers have established waste collection systems that are sent directly for recycling.

Environmental guidelines for our suppliers
In addition to the ethical code of conduct, the Pepco Group has also introduced environmental guidelines. The document contains guidelines on the standards we expect from our suppliers in terms of applying environmental management systems, compliance with regulations, accounting for and minimizing greenhouse gas emissions, waste management, efficient water consumption, chemical management, protection of natural resources and biodiversity, as well as responsible sourcing of raw materials.

Carbon footprint
Since 2021, we have been monitoring our carbon footprint in Scope 1 and 2, and we report emissions from these scopes together with the Pepco Group. We have started work on analyzing Scope 3 emissions and are working on a comprehensive decarbonization strategy for the entire Pepco.

LED lighting in stores
100% of Pepco stores are equipped with energy-efficient LED lighting!

Newsletter
In 2022, we stopped printing the newsletter. From now on, it is primarily available online. In this way, we save 1900 tons of paper annually.

Quality and products
At Pepco, we strive to maintain a high level of customer satisfaction, which is why the quality of the products we offer is very important to us.
Our quality control department consists of qualified quality assurance specialists and controls the workmanship, usability and safety of the assortments we offer to our customers on a daily basis. Additionally, as part of the cooperation, the quality department uses the support of external accredited laboratories that conduct specialized tests to confirm product compliance and safety and that they comply with the requirements of European Union standards.
We also oblige our suppliers and manufacturers to comply with all European standards and directives regarding quality and safety. In our offer, you will find more and more products marked with external certificates confirming their quality or safety, as well as the origin of the materials from which they were made.
Forest Stewardship Council – FSC
FSC® sets and promotes standards for sustainable forest management worldwide. FSC certification is granted to wood and wood-based products (e.g., paper, including recycled paper). Products certified under the FSC system are sourced from raw materials that come from legal sources - from managers who practice sustainable forest management and protect valuable natural habitats.

OEKO-TEX
OEKO-TEX® Standard 100 is the world's leading independent safety mark for textile products, in which all product components - from the material, to prints, buttons, zippers, labels and other decorative elements - are verified to check for harmful chemicals. OEKO-TEX® MADE in GREEN is a combination of the OEKO-TEX® Standard 100 certificate, which confirms the chemical safety of the product, and the OEKO-TEX STeP certificate, which additionally verifies and confirms environmental and social issues.

GOTS (Global Organic Textile Standard)
Pepco's cotton products also include organic cotton certificates. The GOTS certificate covers all stages of organic textile production. The standard specifies restrictions on the origin of yarn, chemicals used in the production process, and includes verification of social and environmental standards.

TÜV Rheinland
Products with TUV Rheinland quality marks meet a number of international and local standards and undergo thorough laboratory tests. Product certification, including safety tests and assessment of compliance with legal regulations, is carried out to minimize the risks resulting from erroneous product designs and to exclude from circulation products containing dangerous substances that have a negative impact on users' health. The product certification process consists of laboratory analyzes of the product, an audit of the production site, assessment of technical documentation, and verification of product labeling. The culmination of the certification process is the TUV Rheinland quality mark with keywords. On the Certipedia website, we can observe product certification projects with the TUV Rheinland mark carried out in TUV Rheinland laboratories around the world. The projects concern toys, articles for children and electrical products.

Product labeling
In addition to third-party certifications, Pepco's product range includes items with other markings specific to particular product categories. The markings listed below, which can be found on our products, confirm the results of tests conducted in accredited external laboratories:
Cooperation with organizations
In its daily work, Pepco's quality department relies on industry authorities to continuously improve products and monitor standards and legal regulations. We are a member of two organizations - POHiD (Polish Organization of Trade and Distribution) and the Association of Toy and Children's Articles Industry.
Member of the Polish Association of Toy and Children's Articles Industry
The association brings together entrepreneurs from the entire children's products industry in Poland. The aim of the association is to support economic activities, provide consultations and advice for manufacturers, importers and distributors, and create favorable conditions for the development of the toy and children's products market. More information on the Aims and Statute of the Association can be found on the Association's website.

POHID (Polish Organization of Trade and Distribution)
contributed to the development of an integrated trade and distribution system. Over 24 years of operation, POHiD has improved the way economic interests are represented before public institutions. As a driving force for improving trade conditions, POHiD focuses on the interpretation and implementation of EU law and national regulations. The organization counteracts inconsistent interpretations of regulations and removes barriers to trade. POHiD conducts dialogue with authorities, consults investment policies, and participates in lawmaking, striving to simplify procedures, reduce bureaucratic barriers, and lower labor costs, including non-wage costs, for the entire trade sector in Poland.

Supply chain
The success of Pepco is built on people – our employees, but also our suppliers and other business partners with their entire teams, who support the continuous development of our company together with us. That is why we constantly strive to create the best possible cooperation environment. As a responsible employer, we set high ethical standards for ourselves, and we expect the same from our partners.
Code of conduct and supplier audits – how does it work?
Our supply chain ethical code defines the company's requirements for suppliers regarding labor standards and human rights. Every factory that manufactures products sold by Pepco Group members (excluding private labels) must undergo a practice audit. Factories located in China, India, or Bangladesh are audited by independent auditors approved by the SEDEX platform.

Supplier audits - how does cooperation look like?
An audit group ensures that our suppliers comply with ethical principles. The Group Compliance Team is responsible for a multi-stage audit system for our suppliers. Thanks to these audits, we are sure that working conditions in the factories are safe, that their employees are treated in accordance with applicable law and receive fair remuneration. On this basis, each factory receives a rating that helps us monitor and quickly respond to potential irregularities, and also prepare recommendations for suppliers if we see a need for improvement somewhere.

SEDEX Platform
In order to promote mutual trust, transparency of information and ensure compliance with the principles of the PEPCO Code of Ethics, PEPCO has joined the SEDEX platform. SEDEX (Supplier Ethical Data Exchange) is one of the world's leading platforms that brings together over 85,000 members. For over 20 years, the platform has been helping entrepreneurs manage information and practices related to ethical, social and environmental standards within the supply chain.

Supply chain mapping and environmental guidelines
In 2022, we developed and implemented additional environmental guidelines for our suppliers: this document will help us initiate cooperation with our suppliers on environmental practices in our supply chain. Ultimately, we will develop control of our supply chain by implementing its gradual mapping beyond the scope of direct suppliers.

Employees
Pepco has over 31,000 employees in Europe. Our company is growing dynamically thanks to our employees, and our employees are developing along with it. We always look at professional development from two perspectives: those resulting from the company's strategy and culture, and the individual development needs of employees.
The foundation of our daily work is the unique organizational culture called Pepcooltura, which is based on our mission, vision, and values.
Our Pepculture
This is how we realize our vision and mission, and the awareness that everything we do has value. Our set of five values – development, customer love, teamwork, respect, and simplicity – allows us to unite employees from different departments, positions, and cultures. Thanks to these values, we create a strong and integrated team that draws knowledge from mutual experiences and supports each other in achieving set goals.

Better Move
As part of the Better Move program, during the summer months we encourage our employees to participate in a sports competition. Our employees collect kilometers by walking, running, and cycling; each kilometer contributes to a sum that Pepco donates to non-governmental organizations. In 2024, our employees covered a total of 180,391 km, and Pepco supported as many as five non-governmental organizations (from Poland, Lithuania, Latvia, Romania, and Italy) with an amount of 30,000 euros. The funds were allocated to projects that engaged children and young people in difficult life situations to participate in sports and outdoor activities during the holidays.

Employee development
Employee development is a key element of our "Growing our business, Growing our people" strategy. At Pepco, we offer a wide range of opportunities to improve your skills through training, e-learning, courses, and coaching sessions. We regularly talk to our employees as part of the internal Performance & Development process, which allows us to better understand their needs and support them in achieving increasingly better results. Once a year, we summarize the set goals and plan an individual development path, offering personalized opportunities to improve their skills. We are also constantly looking for new development methods. The dynamic growth of our company means that we are developing as an international team, increasingly drawing on the potential of our diversity in many projects.

Our benefits
Charitable activities
For Pepco, children and their leisure time, development, education and equal life opportunities are a priority in social activities. We cooperate with public benefit organizations, create our own aid programs, and get involved as volunteers. In each country where we operate, we undertake various initiatives aimed at children.
We finance all social projects thanks to profits from the sale of charity teddy bears and shopping bags.
We cooperate with, among others:
Children's Friends Society
The Society of Friends of Children (TPD) is the oldest Polish public benefit organization that focuses on helping children from environments at risk of social exclusion. It has facilities and educational centers throughout Poland. Pepco and TPD have been cooperating since 2018, thanks to which children from day-care centers throughout the country participate in activities that develop their interests throughout the year, and go on summer camps during the holidays. Together, we also implement the "Cyfolatki" program and the #wiemcorobić social campaign.

Happy Kids
Just like the Happy Kids Foundation, we at Pepco believe that all children deserve fair treatment and equal opportunities! That's why since 2020, we have been supporting the Happy Bus project - summer mobile playgrounds offering free attractions, workshops, and sports competitions that positively impact the development of children across Poland. The Happy Kids Foundation runs family orphanages, cares for neglected, abused, marginalized children, and those deprived of biological parental care.

SOS Children's Villages
SOS Children's Villages Association in Poland cares for abandoned and orphaned children, has been operating in Poland for 40 years and cares for over 2,400 beneficiaries. Together we implement projects focused on active forms of spending free time, holiday trips and developing the talents of children and young people under the care of SOS Villages and Family Strengthening Programs.

Project Life.On
Life.On is a joint project of Pepco and the Atalaya Foundation, which supports young people leaving foster care in becoming independent and entering adulthood. As part of Life.On, thanks to financial and in-kind support from Pepco, the Foundation's beneficiaries will receive assistance in areas such as: renovation and furnishing of training and social apartments; vocational and educational courses, tutoring; purchase of equipment and software necessary for developing professional skills; development workshops, including integration trips and career path planning.

Nobody's Children Foundation
The 116 111 Helpline, run by the Dajemy Dzieciom Siłę Foundation 7 days a week, 24 hours a day, responds to the needs of Polish children who, due to their age and/or adults trivialising their problems, are generally exposed to loneliness and the feeling that they are alone with their difficulties, that there is no one who could help them. The PLN 1.3 million donated so far by Pepco has supported the Helpline's activities: 6,000 hours of consultants' work, who answered approximately 8,500 calls, responded to approximately 1,000 messages and carried out 110 interventions saving children's lives and health

Saint Nicholas Foundation
For 25 years, the Saint Nicholas Foundation has been helping children and young people in need. It specializes in equalizing educational opportunities. Our cooperation began in 2020, when we bought laptops for over a hundred digitally excluded children during the pandemic. Currently, we fund annual scholarships for talented children from low-income families and together we help children from Ukraine through the Saint Nicholas Havens. We also support a development program dedicated to young social activists - the Academy of Leaders.

Own projects
Pepcolandia
Pepcolandia is a children's aid program, driven by the commitment and good heart of our employees. Thanks to them, grants are provided to local non-governmental organizations for the implementation of projects dedicated to children. Last year, we supported over 190 projects in Poland. The program also operates in other markets where Pepco is present, including Romania, Bulgaria, the Czech Republic and Italy.

Cyfrolatki
Cyfrolatki is a special educational program about online safety, implemented since 2019 in cooperation with the Society of Friends of Children. Thanks to Cyfrolatki, children learn what hate and hate speech are online, how to deal with them, and how to function safely in the cyberworld. So far, over 1500 children from 75 institutions across Poland have participated in workshops, school lessons, or happenings independently prepared by TPD beneficiaries.

We help with a "full package"
Every year, we organize a campaign to support the nationwide initiative "Szlachetna Paczka" (Noble Gift). Hundreds of our colleagues from stores, distribution centers, and the Customer Support Center jointly prepare packages for the most needy families with children.

Cooperation with organizations
In its daily work, Pepco's quality department relies on industry authorities to continuously improve products and monitor standards and legal regulations. We are a member of two organizations - POHiD (Polish Organization of Trade and Distribution) and the Association of Toy and Children's Articles Industry.
"Home starts with heart" campaign
We believe that every child and teenager has the right to feel heard, understood, and accepted in their home. However, reality sometimes differs from dreams – we, adults, don't always understand the complicated world of children's emotions. Therefore, to facilitate home conversations, we have prepared special cards for playing about emotions – you can download them for free or play online at:

#Iknowwhattodo campaign
In order to support children and young people, we are co-creating the Polish Children's Friends Society campaign #Iknowwhattodo. Our goal is to increase the awareness of teenagers, their parents and all adults around them about the phenomena of child grooming and sextortion, which threaten the safety and privacy of young people. Learn how to avoid threats and how to behave and where to seek support when a child is in danger or has been harmed:

"Friendship, crayons, and worms"
A free publication created together with experts from the Zaczytani.org Foundation, which aims to support the youngest in learning to resolve conflicts and identify the emotions they experience. Our goal is to show children that the right way to communicate their needs will allow them to get out of conflict situations without harming their relationships with others. The psychoeducational fairy tale is intended for children, especially those aged 7–9.

"Hour for YOUNG MINDS"
Pepco supported the creation of the nationwide, free preventive program "An Hour for YOUNG MINDS" by the UNAWEZA Foundation. The pilot program launched in October 2023 and was joined by over 1,500 primary and secondary schools – over 300,000 students across Poland were covered by the program. Thanks to our support, the costs of implementing the program in schools, materials for parents, and an educational fairy tale about mental health were partially covered.

Pepco customers also help
Charity bears
They are soft, extremely charming, and bring double the joy. Our Charity Bears are waiting in stores in 12 countries where Pepco is present. 100% of the profit from their sale is donated to support personal development, creative leisure time, and the well-being of children under the care of local charitable organizations. In Poland, we support the development and education of children under the care of the Saint Nicholas Foundation. By buying a bear, our customers share goodness with children!

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