Managing sustainability
The economy exists to serve people – not the other way around. This attitude, along with the conviction that companies should assume social responsibility, has been a key element of the Otto Group’s identity for many years. Prof. Dr. Michael Otto advocated early on for an approach to business that takes social and environmental aspects into account. This conviction shaped the development of the Otto Group and its dialogue with customers, employees, business partners, and other companies. As early as 1986, climate protection was established as a strategic area of action within the company. In the years that followed, numerous activities and projects were implemented in social and environmental fields. Today, our sustainability strategy is anchored in the corporate strategy and the shareholder vision of "Responsible commerce that inspires."
Sustainability strategy
The Otto Group considers every part of its value chain – from resource extraction to product processing, delivery, and ultimately the use of the product by consumers. Our goal is to make the production of our products ecologically and socially sustainable.
Regulatory requirements, as well as our own Otto Group Sustainability Standards, which go beyond legal obligations, apply to all companies of the Otto Group. The sustainability strategy applies to those Group companies that have the greatest impact on social or ecological issues along the entire value chain: OTTO, Bonprix, Crate and Barrel, the Witt Group, and Hermes Germany. Additionally, Otto International plays a relevant role in the context of sourcing for these companies.
We use our materiality analysis to evaluate the impact of our business activities on people and the environment, as well as the financial effects on the company. Based on this, we derive operational measures and strategic goals. Our sustainability strategy takes into account the economic, environmental, and social dimensions. A key focus of our strategy is on environmental and social aspects in the supply chain and during the product use phase.
Sustainability management
Our global sustainability activities are approved by the Executive Board and the CR Board. The operational implementation of the sustainability strategy takes place at the level of the Group companies, in close cooperation with the Corporate Responsibility department of the Otto Group Holding.
Executive Board
The Executive Board bears overall responsibility for the sustainability strategy of the Otto Group. It is responsible for ensuring that environmental and social aspects are considered in direction-setting decisions within the Group and integrated into the management and processes of the Otto Group. Relevant topics are regularly on the agenda in board meetings and other board formats.
CR Board
The CR Board is the central decision-making board that has been tasked by the Executive Board with developing CR management in the Group. It consists of representatives from key companies within the Otto Group. Led by the Chair of the Otto Group Executive Board, the CR Board is mandated with defining overarching sustainability goals for the Otto Group within the framework of the CR strategy and adopting individual targets and measures for the Group companies. The CR Board advises the Executive Board on far-reaching decisions, including fundamental adjustments to the CR strategy or decisions that involve significant investments or have a significant impact on the business models of Group companies.
Group companies
The sustainability strategy applies to the group companies that have the greatest impact in terms of social or environmental issues along the entire value chain: OTTO, Bonprix, Crate and Barrel, the Witt Group and Hermes Germany. In addition, Otto International also plays a relevant role in the context of goods procurement (sourcing) for these companies.
One of the challenges of the sustainability strategy is also a success factor: the different business models of the group companies must be taken into account. Therefore, the shaping of the sustainability strategy is the responsibility of the group companies themselves. They develop the individual focal points, goals and measures that fit their business model within a framework set by the Otto Group Holding. These are documented in annual internal action plans and reported to the CR Board and the Executive Board. This ensures that all group companies jointly contribute to the goals of the Otto Group. Each of the relevant group companies has an interdisciplinary CR team for implementation, consisting of a Sustainability Officer and experts for the strategic areas. The teams drive initiatives forward and create synergies within the corporate group.
Expert Circles
The group-wide exchange of best practices and the networking of experts and interested parties within the Otto Group are important for the implementation of our sustainability strategy. Alongside our focus topics, the CR representatives of the Group companies and the Otto Group Holding regularly meet in so-called Expert Circles to discuss both the achievement of goals in their area and new ambitions and ideas. They develop and implement corresponding measures during these discussions.
Materiality analysis
The materiality analysis forms the basis of our sustainability management and its strategic alignment. With this analysis, we assess the impacts of our business activities on people and the environment, as well as the financial influences on our company. The topics identified as material serve as the basis for the focus areas of our sustainability strategy. In addition, we conduct risk analyses, the results of which are incorporated into the materiality analysis and the formulation of strategic goals. We regularly review whether changes occur and whether our sustainability strategy sets the right priorities.