Responsibility - owning it & seizing it

RESPONSIBILITY OWNING IT & SEIZING IT A FRAMEWORK FOR MAGASIN'S WORK TOWARD INCREASED RESPONSIBILITY IN BUSINESS

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Magasin employees dressed as bees during a summer excursion in 1947. For many years the hive and the industrious bees were symbols of how the employees, with hard work and cooperation, created good results for Magasin. Through a pension fund, summer camp, scholarships and diligence prizes, the well-being of the employees was paramount for the company.

CONTENTS PART 1.

OUR WORK WITH RESPONSIBILITY Preface – Owning and seizing responsibility

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About the publication – The journey towards increased responsibility 8 Magasin's take on responsibility

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People come first

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From Goals to action – The three primary areas

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Direct and indirect influence

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Better use of resources with the consumers

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Better use of resources and better well-being in our stores

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The community around Magasin

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Prioritising the work

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Ambitions and principles

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PART 2.

SPECIFIC INITIATIVES Climate and environment

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Work environment and diversity

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Other social responsibility

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Magasin private label

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Future work

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Overview of priority objectives

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PART 1.

ON THE FOLLOWING PAGES WE DESCRIBE WHY AND HOW WE PLAN TO WORK WITH RESPONSIBILITY

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PREFACE

HAVING AND TAKING RESPONSIBILITY Magasin du Nord has a long and proud tradition as a flagship in Danish retail, and for over 150 years, we have worked hard to provide the best service. Our stores have and remain to assure quality experiences and leadership in conduct regarding products and service. This is a legacy that we are proud of and that we strive to bring forth into current times.

increase our focus. Especially with our broad cultural influence on consumption in Denmark.

Our efforts and ambitions are wide-ranging, and we wish to make many improvements in the near future. In our products, our organisation and in our trade.

We will give the business an ongoing responsibility review and act wherever we can. Some improvements are clear and simple. Others require more work.

Today, decency and quality are still a large part of our core values, but globalisation and the world’s complexities have meant that these concepts are expanding.

We also aspire to tackle the more fundamental and difficult tasks, and therefore we begin where our influence is greatest. Namely with our own operation and products. That is why we have mapped out the sustainability and improvement potential in our own fashion line, Magasin du Nord Collection.

A massive effort that has led to clearly defined goals.

We all hold a responsibility in making things better.

With our strong Danish roots and great status in society Magasin is no exception. Quality and good governance have therefore become far more comprehensive than before, and as a modern company, we have an even bigger responsibility. Therefore, we have initiated systematic work in our products, service, work culture and physical spaces.

The fashion industry as a whole still has a long way to go, but we want the customers in Magasin to have the opportunity to make more conscious choices. Promising a high standard when it comes to responsibility, for the planet, and it's inhabitants.

INFLUENCE EQUALS RESPONSIBILITY We care about our direct influence on the world around us. Whether it regards energy consumption in our stores or the supplier terms and conditions in the production of our own collections.

As participants in the creative and ever-changing fashion industry, we will allow creative choices and initiatives be brought forth by our talented employees and partners in order to improve and enhance responsibility.

The more influential Magasin becomes the greater the responsibility and the greater the responsibilty, the more we need to

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“The work has only just begun, and we know that the work will continue as long as Magasin is influencing the habits and choices of the Danes”

CHANGE BEGINS WITH DECISIONS The work has only just begun, and we know that the work will continue as long as Magasin is influencing the habits and choices of the Danes. Therefore we have set

PETER FABRICIUS

up a management group to improve and document our work with responsibility. Based on the principles behind the UN’s 17 global goals, we have developed a management tool that will help us include the responsibility perspective explicitly in our decisions, and work proac-

Board of Directors 1935

tively to get responsibility into the core of our business.

It is not perfect, but we believe in progress through people and processes.

The group is led by Peter Fabricius and is composed of leaders from each business department. We have done this to put maximum decision-making power behind the work.

A TRADITION OF QUALITY AND A BELIEF IN PEOPLE Magasin’s long tradition of doing things properly, of treating others decently, and of letting our creative, hard-working and independent employees drive development towards improvement and renewal/innovation must be a formal part of our decision-making process.

With that, as a starting point we want to give the Danes more choices . Clearer choices. And we aim to make our contribution to a better development for consumer culture. We are concerned with transparency and promoting quality in service and products. We wish to increase the amount of products that last a long time, that you want to take care of, repair and pass on. And we want to create partnerships that last.A durability and quality that we believe is a plus for the world, for our customers and for our business.

Peter Fabricius, Managing Director

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ABOUT THE PUBLICATION

THE JOURNEY TOWARDS INCREASED RESPONSIBILITY The journey towards increased responsibility is complex and covers a lot of smaller projects and initiatives all aimed at taking us one step further. We believe that even small steps make a difference in the long run.

On the following pages you will find a description of Magasin’s work with responsibility. The first half of the report outlines why Magasin has chosen to work with responsibility, as a concept, what method we have chosen to use and how we will prioritise our efforts. The second half is a document that we will continue to develop and expand each year with concrete initiatives, objectives and follow-ups on the results. The purpose is to involve and engage interested parties in our considerations, and our choices.

“We believe that even small steps make a At the same time, our approach functions as a decision-making tool intended to increase the difference in visibilty and tangebility of responsible conduct in all business areas. This way we intensify the the long run” focus on aspects of responsibility in all parts of ANITA HOLM

the company. And we further our own ability to make considerate and responsible decisions throughout our operation.

Magasin’s growth has always been build on close connection with the Danes. We like to be co-creators and partners. As we go forward, we aim to earn a role in inspiring and communicating a greater understanding and need for a more responsible consumption in society. Therefore we welcome constructive input and ideas for improvements from everyone who wants to join in creating a Magasin we can be proud of – be it NGOs, partners or customers.

Anita Holm, Head of CSR Management

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Magasin founders Theodor Wessel and Emil Vett ushered in a new era for Danish retail with a more open and welcoming style. Today, care and empathy are core values of the business.

In the staff lunchroom money was raised to help Pakistani refugees in 1971.

A summer outing for employees of Magasin. Shuttled in buses and driven from the city to the countryside, where breakfast, beer, games and minigolf awaits them.

In the 70s, Magasin focused on: Recycling and aiding the world’s refugees.

Magasin employees in line to donate blood in 1970 in the Kongens Nytorv store.

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MAGASIN'S TAKE ON RESPONSIBILITY

RESPONSIBILITY INHERITED RESPONSIBILITY AT WORK A desire for explicit responsibility in all interactions is stronger with a clear definition. Magasin wants to create a focus on responsibility as an integral part of our business. Responsibility is deeply rooted in our DNA and it is our wish to make it visible and ever present in our everyday lives.

giving a local talent a chance or sometimes by informing customers transparently about water consumption from our own collections.

The work is an attempt to make the larger principles behind The United Nations’ 17 Sustainable Development Goals tangible in our everyday lives, in order to make our responsibility clear in our daily work.

This applies equally in improving our own business, in the role we play in Danish retail and when it comes to the culture of fashion, design and consumption of which we are co-creators.

WHY RESPONSIBILITY? There are several reasons why we chose the concept of responsibility as the focal point of our work.

Sustainability in its broad definition, which also includes the social aspects and principles of corporate governance, could also be a relevant choice. However, in the current debate sustainability usually equates climate and environmental efforts. The approach is based on Magasins current business reality and is therefore more relatable for customers and employees.

Magasin is a complex business and we work with over 1,200 business partners who provide us with everything from paper clips and fashion, to transportation and logistics.

“We work with over 1200 business partners who provide us with everything from paper clips and fashion, to transportation and logistics”

We trade with both smaller and larger companies, and our local prominence in the cities surrounding our department stores is often felt.

As a consequence we are both small and large, local and global, active and passive - all at the same time.

This complexity requires a systematic approach to understand where we can make the most difference.

Sometimes it will be through CO2 reduction in department stores, sometimes through principles of fair payment amongst our suppliers. Sometimes by

Regarding Magasin’s own collections, the influence is naturally much higher than when we negotiate with global brands. Magasin du Nord Collection (MNDC) is therefore given a special priority in the work for creating improved sustainability.

MDNC has undergone extensive work with identifying and setting objectives of these improvements. In 2022, 25% of our MDNC products were certified according to the GOTS standard - one of the selected certifications we are working with on our own brand.

When a customer chooses our products we have both a duty – and an additional opportunity – to provide insight into the characteristics and origin of the goods.

We wish with the collection to set a high standard of responsibility, that the Danes can safely choose.

Read more about the objectives and progress of our own collection, which you will find at Magasin.dk/ansvarlighed

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Magasin du Nord opened at Kongens Nytorv in 1893. This drawing is from the lid of a box sold during Christmas time.

“It is a never-ending task, but a basic business condition these days” INSPIRE RESPONSIBLE CHOICES Accounting for responsibility in all parts of the business is not an easy task but we work with planning, transparency, and our own improvements. It is a neverending task, but a basic business condition. Now and in the foreseeable future.

life span of products. This way both customers and we ourselves will keep the products useful longer.

THE LOCAL AND GLOBAL REALITY Magasin’s own responsibility for its business in Denmark is complex, but at the same time tangible. Responsibility for the energy consumption in our department stores, the environmental impact from our waste, social aspects and good corporate governance are all things that we can measure, control and improve.

We believe that our customers want improvements. We wish to inspire and provide them with the opportunity to choose what makes sense to them. We want to enable customers to pursue the SDGs in a way, fitting their lives.

A bit more difficult is the consumer culture that we take part in shaping and its impact on a global scale. Magasin works towards positive change in the areas where we have a direct responsibility, and the areas that are a part of a more complex, global picture.

We will strengthen consumer choices through increased transparency regarding resource consumption of products. We will increase the standard by focusing on quality thereby extending the

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PEOPLE FIRST Magasin is created by people for people, and responsibility is something we have for each other. That is why we see people as both the end and the means to improve responsibility throughout the business.

employee care task and to articulate the importance and belief that caring spreads through humans.

We will ask the strong, young forces in our organization for the constructive criticism that pushes the boundaries of what is achievable.

We want to anchor the entire set of values surrounding our responsibility work within the people who make a difference. By educating, empowering and supporting our employees, customers and partners, we want to cultivate a corporate culture that puts care first.

We will put forward an internal Code of Conduct. A tool to frame, illustrate and promote a zero-footprint culture. A company DNA where we leave behind every place, every human being and every partner in the same or better state than when we met them. At the same time, we will update our external Code of Conduct, so all of our partners from all over the world can clearly see our expectations and ambitions for collaboration.

The desire to be chosen and valued as a company is easily accepted, when the work done stems from genuine interest and care for the community. That is why we wish to open a space for dialogue, allowing us to listen and collect the best ideas for Magasin's work with responsibility. We want to hear the voices from all parts of the business, from customers and from the community around us.

Among other things, this entails a continued focus on ethical trade. Even though our partners are accustomed to strict requirements in our common fight against corruption and money laundering, we will increase this focus in the future, ensurint that our Corporate Governance work follows the pace of our efforts in the social domain and the environment.

We will harness the passion to work towards bigger goals and empower our enthusiasts by training employees to become ‘care managers’. The goal is to concretize our

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FROM GOALS TO ACTION The UN’s 17 Sustainable Development Goals include everything from eradicating poverty, promoting marine life, securing decent jobs, creating sustainable energy.

At Magasin we have, based on the SDGs, divided our work with responsibility into three areas based on a basic understanding of the role a department store has in the world and our impact on it.

They are as follows:

transportation, and extending the lifespan of products.

These focal points are all transformed into tangible projects where Magasin has an influence and can make a difference.

Working with our other environmental impact we have again chosen to focus on the most direct influence. Among other things this concerns our use of chemicals for cleaning, and the environmental impact of our own production. Finally, we will expand our waste sorting efforts to ensure better opportunities for recycling resources.

1. CLIMATE AND OTHER ENVIRONMENTAL IMPACT (SDGs 7, 12, 13 and 15)

Efforts for occupational health and diversity are focused on projects aimed at targeting inclusion and equality as well as ensuring both mental and physical health in the workplace. For many years, we have been working to monitor equal pay in Magasin, since the need for gender equal wages are self evident to us. This work will continue as long as a need exists in the labor market.

We will also focus on ensuring that everyone has equal opportunities to become managers, and we will require that our management reflects both our customers and employees. This is the reason behind the current gender distribution in management, where 63% are women and 37% are men in our collective management team.

2. WORK ENVIRONMENT AND DIVERSITY (SDGs 4, 5, 8, 10, 12, 16 and 17) 3. OTHER SOCIAL RESPONSIBILITY (SDGs 3 and 4) In each of the three areas we assess Magasin’s influence and control. The relationship between effort and result.

Whether the effort can be sustained and finally, whether the effort is in line with the expectations of the outside world. Ideas, challenges and actions are placed in the category where we assess the impact to be greatest.

Example: Magasin can reduce returns from the online shop through a program that provides consumers with a better opportunity to get just the right size. The program will impact both pre- and post sale work. It will not only improve customer experience, it will also lead to the reduction of packaging and transportation. Since a lot of packaging is recycled upon returning to the store, the greatest impact lies in transportation. Or in other words in emissions from energy use. Therefore, this initiative is placed in the “climate” category.

Magasin setting requirements for our partners through our Code of Conduct, but we also expect our internal projects will be expanded into shared efforts with our valued partners.

The first projects in the category ’other social responsibility’, are based on Magasin’s tradition of education and opportunities for young people. Here we initiate projects through targeted partnership and initiatives to help young people experiencing dificulty get back on their feet.

Climate action is, among other things, about reducing domestic energy consumption, ensuring a more sustainable focused procurement, reducing emissions from

Read more about the specific initiatives in the second part of the report.

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DIRECT AND INDIRECT INFLUENCE Magasin’s influence continues to both direct and indirect. And there is an immense difference in the influence we can exert on global clothing brands that have a multitude of subcontractors, and the control over our own collections where we can make greater demands toward local suppliers. In the chart below, we have illustrated this dilemma.

Direct responsibility is easiest to approach, while making a difference through work with our indirect responsibility can be more challenging. We will work systematically with both. We aim to do this in cooperation with our customers, but we will prioritize the efforts where the effect is greatest.

IMPACT DIRECT RESPONSIBILITY

INDIRECT RESPONSIBILITY

GLOBAL RESPONSIBILITY

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Illustration: The direct impact in the Western world is decreasing as better energy sources are available and there is a heightened focus on consumers. Simultaneously indirect impact increases, through ”Spill-over” where western consumption affects other places in the world. Magasin takes both impacts seriously. Through the work for a more conscious consumer culture, Magasin wants to address a larger part of the indirect impact and thus approach the task of increasing responsibility.

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BETTER USE OF RESOURCES WITH THE CONSUMERS As a department store, Magasin exists due to shopping.

We are part of the consumer culture in Denmark and are contributing to its development. Therefore our wish is to offer customers and society the opportunity for a more responsible consumer life.

Clothing and other consumer goods require many resources during production. An obvious example for cutting resources would be by reducing water or energy consumption in clothing production.

Naturally, Magasin works toward such goals whenever possible. However, an equally important measure of responsible consumption is in our opinion the lifespan of products. A longer life made possible through care, maintenance, re-use or upcykling will significantly reduce resource consumption.

“We would rather sell better products As a consequence, Magasin has increased its focus on supporting a than more more sustainable consumption. A culture with products that and cheaper consumer can last a lifetime, be passed on and be reused. products” This is an effort that we can wholeheartedly support as Magasin’s dedication to quality and longevity in both design and durability is in sharp contrast to the ever-expansive consumption.

We will sell better quality, rather than larger quantities of cheaper products, as we wish to encourage our customers to maintain their things and to distance themselves from the “use and throw away culture”.

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Employee helps polish a child’s shoes in 1951

‘Let the son enjoy father’s old clothes’.

Circularity and reusability are not new concepts, but perhaps more important today than during the year 1942.

“In our stores we will build designated areas dedicated to guiding the maintenance, care and repair of products.

It will also be possible to get an overview of products with specific characteristics within the sustainability spectrum”

For products we will offer solutions on how to care for, wash and repair items. We call it “Care & Repair”, and in our stores, we will build designated areas dedicated to guide in maintenance, care and repair.

It will also be possible to get an overview with specific sustainable characteristics.

Online, we will create a library that contains information on how to maintain the products, just as the employees will be equipped to guide about Care & Repair during purchases.

Part of our quality assessment is that the goods are produced in a diligent manner where consideration for climate, environment and working conditions is taken.

Simultaneously we work to increase traceability of our own products.

until it has reached the end of its life for use in the department store. Hereafter, materials should preferably be able to be reused outside of Magasin or at least disposed of as responsibly as possible.

A longer lifespan for products is also reflected in our own consumption, e.g. through the choice of materials for interior design in the stores. The interior design generally must be able to be used five times and appear in several different places. And it will not be replaced

We will continue to equip our own buyers through courses in sustainable sourcing twice a year, where among other things, the focus will be on the life span of the products.

Staff training will be progressively expanded in order to increase understanding of all parts of the business.

1 See MDNC report in the section “specific efforts and projects” - Magasin.dk/Ansvarlighed

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BETTER USE OF RESOURCES AND WELL-BEING IN OUR STORES The operation of department stores, online business and logistics naturally has its own footprint, for which we wish to take responsibility. The notion to link common business sense with improvements for the community is longstanding in Magasin. As long as anyone in the company can remember, we have maintained a focus on both environmental issues, and on well-being in the work place. We want to build on that tradition and expand through the responsibility effort.

“As long as anyone in the company can remember, we have maintained a focus on both environmental issues, and on well-being in the work place”

Over a number of years, Magasin has taken a lot of energyimproving initiatives. Among other things, we have converted the heating of our businesses from gas to district heating and replaced cooling for district cooling wherever possible. Similarly, energy-saving measures have been introduced on lighting and other electric solutions.

However, a large number of improvements are still achievable. In Magasin we see the opportunity for improvement as an ongoing task in line with all other parts of the business, whether the potential for improvement concerns environmental impact, climate or well-being at the workplace.

Therefore we will launch a series of initiatives geared towards improving our waste, energy consumption, cleaning and other operations.

Magasin training including a film on recycling and how to avoid wasting resources in 1974.

We seek to expand our good working environment with further improvements of well-being, and will focus internally on the work of physical and mental health. Just as we will work outside of the company to increase young people’s well-being through collaborations such as the Johanna House.

We will also increase the focus on the various initiatives we already offer our employees, so we ensure that all employees are familiar with the options for support and help that Magasin offers. This applies to the Magasin du Nord Employee Foundation, which through grants supports employees and their families who may be struggling with health- or social matters.

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THE COMMUNITY AROUND MAGASIN When, your most important raw material is people, it is only natural to take an interest.

In the people who run the business, and the people it is built for.

That is why our effort in the social field will have an emphasis on the youth and the nearby communities.

The new generations will shape Magasin both as employees, managers, partners and customers.

Therefore, the current crisis of well-being among young people is an real and present problem. Not just for us, but for our whole society. A safe and balanced youth life provides the stability, that is a prerequisite for future development. Therefore Magasin will focus initiatives on promoting well-being and support activities for young

“It is the new generations who will shape Magasin both as employees, managers, partners and customers” people in the local communities of our stores. It’s about reaching struggling young people before their challenges become too big. It's about making an effort that can help the most vulnerable get back on track.

Similarly, our internal focus on well being among employees will be concentrated on providing resources to promote a balanced life. This will be done in a holistic way extending beyond the work situation.

Finally, we will try to make use of the strong alumni culture that thrives among the past employees who continue to be affiliated with Magasin. This way assets and knowledge possessed by the older generation can benefit the younger.

The financing and internal organisation of the effort will in part be organized through Magasin’s own employee funds, through existing HR initiatives and in coorporation with the Wessel & Vett Foundation.

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PRIORITISING THE WORK In order to cement the responsibility effort within the organization we have divided the work into the three aforementioned categories. Each category includes many potential initiatives. Too many to perform at once. To determine which actions are the most important in the short and medium timeframe we developed a decision-making model that the Responsibility Unit in Magasin will use to prioritise efforts.

WE WILL CONSIDER THE FOLLOWING CRITERIA TO ASSESS THE APPLICABILITY OF EACH INITIATIVE: A. Level of influence, (how directly can Magasin affect the result?).

B. Impact (what kind of outcome is expected and how important is it?).

C. Relationship between inputs and outputs (where to achieve the most improvement for your effort?).

D. Reality and time perspective for implementation (can the effort be done; quickly, over a long time and can it be maintained with employees, customers, etc.).

E. Expectations and stakeholder engagement. (are the efforts in line with society’s expectations?).

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Two Magasin couriers with their courier bicycles.

A simple scoring system will determine the priority where the highest score will grant the highest prioritisation.

These assessment criteria are equated with other business criteria and input from The Responsibility Unit. This way the system will be able to provide overall strategic input. The system and its decision-making ability helps in making the responsibility strategy operational and can provide assistance in the important day-to-day choices.

Although it is possible to delve even deeper into any

topic, to qualify the prioritization Magasin has chosen this relatively simple assessment method. The method is a reasonable compromise because it provides a reasonably nuanced picture of the current situation without simultaneously slowing down the work pace. We do not want to risk that necessary actions are delayed due to theoretical considerations and perpetual investigations.

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AMBITIONS AND PRINCIPLES In order to set the right goals for our efforts, Magasin has chosen to join a number of principle programs.

The purpose is setting concrete goals and participating in joint work to promote responsibility in the three areas across industries and business areas.

EU’S CLIMATE PACT This commitment means, among other things, that by 2024 we will present concrete targets for reducing the use of resources relating to our buildings, our travel activity and the operation of our IT infrastructure.

The goal is that Magasin’s direct energy consumption in the department stores will transform over the coming years to consist solely of sustainable energy sources that meet the GHG-protocol requirements concerning sourcing guarantees.

THE DIVERSITY PACT Magasin joins Dansk Erhvervs’s so-called Diversity Pact.

This aims to increase diversity and inclusion through five obligatory principles. A large number of these are already being complied with and are a natural part of the basic principles of Magasin’s management. However, the pact increases measurability and the concrete focus on how to translate attitude into action, and can therefore, be instrumental in ensuring increased co-ownership in all parts of the organisation.

GLOBAL COMPACT NETWORK Magasin joins the Global Compact Network in 2023.

This is done in order to maintain concrete development, and maximise the opportunities for further education of our employees.

The 10 principles described in the agreement are also used as the basis for Magasin’s responsibility work. Since Magasin already adheres to the same principles for business operations, the principles will, going forward, be considered an integral part of the basic DNA in Magasin.

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PART 2.

SPECIFIC INITIATIVES On the following pages the concrete actions that Magasin’s Responsibility Unit has assessed as ready to begin is described.

The initiatives are divided into the three areas and each one has a concrete goal and an associated fulfilment timeline.

Each initiative will be described in general terms and each year the publication will be updated with additional projects as well as a status of ongoing projects. Every quarter Magasin’s Responsibility Unit will update senior management on progress and new initiatives.

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CLIMATE AND ENVIRONMENT Magasin’s efforts that have been determined to have the highest influence on the environment

1. CARBON NEUTRAL ELECTRICITY In its seven department stores, Magasin has an extensive use of electricity. In recent years, we have made efforts to reduce consumption through traditional methods. An example of this is the substitution of more than 2,500 light sources to low-energy LED in 2022 and a redesign of the ventilation system with great savings to follow.

This work will continue and through cultural change we seek to achieve greater energy savings in every part of the organization.

Magasin’s lit up windows on Bremerholm and Magasin Torv.

In front of the Christmas tree in 1955.

During 2023, we will explore the possibility of entering into a cooperation on a 'Power Purchase Agreement’ (PPA).

Such an agreement means that Magasin's electricity consumption over a number of years will be converted to environmentally friendly power that comes from newly installed installations which are exclusively created on the basis of the agreement.

A PPA agreement thus ensures that Magasin’s electricity consumption will come from solar cells or wind turbines in Denmark.

Deadline: Agreement is explored in 2023 - conclusion of agreement in 2024.

2. CONVERSION TO LED LIGHTING Magasin has always lit up its windows with brilliant lights, unique window decor and beautiful Christmas decorations, And we are in the process of a major replacement and conversion of our light sources. All light sources in both Magasin’s retail stores as well as in the back-offices are required to be replaced to reduce energy consumption.

Deadline: Full conversion to LED in our retail universe is attempted to be fulfilled over a period of 5 years.

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3. CLIMATE ACCOUNTENCY FOR ALL MAGASIN STORES REPORTED By 2024 preparations will be launched to find the best data structures Legal requirements in the European Union calls for climate reporting in 2026, based on data collected through 2025. In 2023, we will establish a collaboration with a climate accounting partner who can help us prepare our first full climate impact reports including plans for future reductions.

Deadline: Project commencement 2023.

Project completion 2024.

4. EMISSION FREE LAST MILE Magasin only wishes to use courier businesses who can ensure emission-free transportation to our customers following their online purchases. This is expected to be implemented in agreement with PostNord and other courier companies. Likewise, transportation footprint must be evaluated with regards to the internal product traffic between stores.

Deadline: Agreement takes place during the first quarter of 2024. Emission free last mile by 2026.

Travl trafik med sporvognslinje 5 og sværme af cyklister i 1953.

7. EXTENDING THE LIFESPAN OF PRODUCTS EXPANSION OF ’PRODUCT GUIDES’ Magasin wants to actively work with extending the lifespan of product. An example of this is by expanding Magasin’s ”Product Guides” with an extensive online library that clearly indicates how to ensure optimal maintenance and the possibility of repair for any product purchased in Magasin.

From general guides for various materials and their upkeep, to specific brands and Models, expert guidance must be available regarding maintenance, repair, recycling and responsible disposal. This initiative called ”Magasin – Care & Repair” will also be supplemented with information on the effect of increasing the lifespan of a product and the improvement of recyclability.

Deadline: Commencement of this initiative 2024.

Project completion (all products represented) End of 2025.

5. TRANSITION OF CAR FLEET TO ELECTRIC OR HYBRID POWERED VEHICLES. PLAN FOR INSTALLATION OF CUSTOMER CHARGING STATIONS Magasin wants the footprint of transportation to be lowered, whether the goods are brought to the customers or vice versa. 80% of new lease agreements for Magasin’s car fleet must therefore consist of electric or hybrid vehicles by 2026. In cooperation with parking operators, charging stations will be installed in car parks, wherever possible. Possibility of differentiating parking fees will be investigated.

Deadline: The possibility of setting up charging stations will be explored in 2023 and agreements will be established if and where possible.

EXTENDING THE LIFESPAN OF PRODUCTS 2 – CARE & REPAIR CENTERS We will build physical Care & Repair centers that are designated areas with advice and guidance in care, maintenance, repair and recycling of products. There will also be an outline of special positive properties of specific products. The centers will be updated annually.

Deadline: First area at KN in AW 2024. Other stores will be assessed subsequently for setup of Care & Repair centers by the end of 2026.

6. REDUCTION OF IN-STORE RETURNS AT MAGASIN.DK All transportation emits consumption. Fewer returns when shopping online will save a lot of energy. The objective is to reduce returns by identifying incentives.

For example with the development of product information and initiatives to prevent orders that already are intended to be returned (e.g. ordering the same item in several sizes.)

Deadline: In 2023, identifying incentives and a reduction target for 2024.

EXTENDING THE LIFESPAN OF PRODUCTS 3 - CIRCULAR BUSINESS MODELS We wish to implement new and more circular business models such as resale, an expansion of vintage products etc. We are therefore part of a sectoral cooperation with Life Style & Design Cluster, with this exact focus.

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8. REDUCING FOOD WASTE Magasin Mad & Vin wishes to increase the emphasis on ensuring the recycling of biological waste for fertilizers and heating with CO2 reduction in mind.

An improved buyer management and in-store initiatives with an even closer cooperation with our waste partner Remondis will achieve this.

Deadline: Development in 2023 and onwards.

9. MORE CLIMATE-FRIENDLY ALTERNATIVES IN MAD & VIN Magasin Mad & Vin wishes to drive development towards a more sustainable food consumption. This project will be initiated in 2023.

The focus is initially on increasing sales of fresh, Danish, locally sourced and products in season from local areas. In this way we can educate and guide consumers to buy the best, freshest and least environmentally impactful products. The initiative is based on the principles of having the shortest transportation route and minimal total energy consumption. For this purpose, the recipe initiative “Eat according to season”, as well as monthly information regarding Danish ingredients currently in season.

Every year, more ’sustainable and climate-friendly’ alternatives to traditional products are being identified. By 2024 the criteria for ’sustainable’ selection will be specified.

Deadline: Initiation AW2023.

11. RESPONSIBILITY CLASSIFICATION In order to make it easier for the consumer to make more responsible choices we are working on a ’responsibility classification’ (filter/search function) on Magasin.dk i.e. the possibility to search for products within different categories that meet selected responsibility criteria.

10. COURSE ON SUSTAINABLE SOURCING Every person with purchasing responsibilities in Magasin must be educated in sustainable sourcing. Therefore, time and resources will be allocated for the training of all procurement functions with the first courses beginning at the end of 2023.

Deadline: Agreement with course provider AW 2023.

Project completion 2024. In addition, efforts are made to further train procurement managers every 3 years.

Work is underway in 2023 on an initiative of criteria for products that can be categorized as responsible.

Deadline: By 2025, the goal is to be able to offer manageable ’responsible product data’ transparency.

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OTHER CLIMATE IMPACTS Magasin’s efforts that have been determined to have the highest influence on reducing negative environmental impact 12. PACKAGING – ONLINE AND IN THE STORES At Magasin, we work continuously to develop our packaging so that production has minimal negative impact on the climate. Additionally we require all packaging to be recyclable.

13. MAD & VIN PACKAGING - OUR OWN PRODUCTS Magasin Mad & Vin continues to develop the packaging for Mad & Vin’s own products, with a focus on using recyclable materials. Likewise there shall be a comprehensible communication making it easier for the consumer to properly sort and recycle waste.

Deadline: Focus on this will increase from 2023.

By 2024 all Magasin packaging in the physical stores must be made of 100% recirculated materials or 100% FSC certified paper and cardboard. Likewise, all Magasin Online's wrapping must be in 100% recycled material and/or 100% FSC certified paper and cardboard by 2025.

Deadline: Packaging in department stores in 2024. For e-commerce in 2025.

14. TRANSITION TO 100% BIODEGRADABLE CLEANING PRODUCTS The cleaning of department stores, offices and other facilities must transition to 100% biodegradable agents and be made by people who can demonstrate fair employment conditions (Servicenormen).

Deadline: Entering into an agreement with cleaning companies by the fourth quarter of 2023, and procurement for our own usage by 2024.

Dresses and coats in the process of being altered, cut and sewn by a mending campaign in October 1942.

15. OPTIMISED WASTE SORTING - LOADING DOCKS, BACK OFFICE AND BEHIND SALES COUNTERS Magasin will ensure recycling by arranging sorting waste baskets in office areas and administrative spaces, to increase recycling rates, and reduce waste.

Deadline: Fourth quarter of 2023 everything must be implemented/updated.

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WORK ENVIRONMENT AND DIVERSITY 1. WORK-LIFE BALANCE Magasin wishes to focus further on facilitating a positive mental- and physical work environment by adding resources to ensure efforts in terms of the mental and physical well-being within Magasin. Resources that can help create balance through a holistic approach extending beyond the work-relation and furthering work-life balance.

The following are Magasin’s efforts, the scope of which primarily affects corporate influence on work environment and diversity.

The mental well-being will be strengthened through the hiring of an independent therapist, whose main task will be to facilitate a positive mental work environment and enable ongoing status monitoring to ensure a mentally healthy workplace. At the same time, the therapist can act as a confidential partner for managers and employees on a day-to-day basis.

In addition, department managers are trained in what we like to call ‘care management’, and they are required to assume a central role in our responsibility work with a special focus on employee well-being. These ‘care managers’ are appointed in all departments and are trained through a program with input to improve health and overall well-being. E.g. via external partners.

All employees must be guaranteed a health arrangement, various physical activities as well as healthy diet options – all part of strengthening a stable and positive work life at Magasin.

Deadline: Program development for planning and funds for implementation in 2024. Start-up begins in 2025.

The infirmary in Kongens Nytorv, 1954.

Over many years, Magasin du Nord had nurses employed with their own practice.

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Magasin graduates

2. OPPORTUNITY TO PARTICIPATE IN VOLUNTEER WORK In order to promote social commitment and integrate social sustainability in the workplace, Magasin provides opportunities for time off for voluntary work each year.

4. LISTEN TO YOUNG VOICES We will seek to set up a youth panel consisting of people with interest and knowledge in the field of responsibility. Young people are the future, and they have a lot to say in relation to our challenged world. We want to listen and spread this knowledge.

Employees are free to choose from a list of approved charities/charity organisations and can nominate organisations for the list themselves.

Deadline: From 2024, starting with the Back Office. List of opportunities for support work is being compiled.

By the end of 2023, we will have set up a youth panel from selected organisations and NGOs, which will meet quarterly with the aim of addressing sustainability issues in the context of fashion and retail.

3. RESPONSIBILITY UPDATE IN THE EMPLOYEE APP All employees must have the opportunity to follow developments in our responsibility work. Thus a higher level of information must be ensured.

Every year, the panel will propose concrete initiatives to management, which will be assessed in accordance with the principles laid out in Part One of this report.

Initiatives that are deemed feasible are then incorporated as separate projects in our work with responsibility.

Deadline: The panel will be set up in 2023 and will present first ideas in Q1 2024. We will especially prioritise youth sections of NGOs with a focus on sustainability and politics.

Employees can speak to their immediate manager, or the department’s care manager, but the level of proactive communication from management also needs higher priority.

5. EXPANDING THE TRAINEE PROGRAM WITH SUSTAINABILITY MODULE A module in sustainable education has been added as part of Magasin’s education of trainees, it is added in order to ensure an understanding of the sustainable working principles that Magasin will follow in the future. The module and it's content will be developed continously.

Deadline: A larger part of the training program will be ready by 2025.

Permanent communication via Magasin’s pre-existing employee app will be introduced. A separate channel/ area will be developed on the app for this exact purpose.

Quarterly broadcasts will be scheduled, and the same channel will also be used for in-house launching of major initiatives when needed.

Deadline: Beginning AW 2023.

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The women’s handball team of Magasin in 1967

The award is announced to customers and employees together with management’s reasons for handing out the award.

Deadline: Partners are informed in connection with the launch of Magasin’s responsibility program, in 2023. The prize will be awarded for the first time in 2024.

6. CELEBRATING DIVERSITY AMONG MAGASIN’S EMPLOYEES One day a year, the diversity of Magasin’s employees is celebrated in connection with the national PRIDE WEEK. Deadline: Schedule/concept will be developed by the end of 2023 and celebrated for the first time in 2024.

8. KNOWLEDGE SHARING ON RESPONSIBILITY PODCAST Magasin wishes to focus on innovation and the sharing of ideas regarding sustainability in the fashion and retail industry. To promote this focus we will develop a number of podcasts annually with special interest areas.

These will be made available free of charge to anyone who is interested.

7. MAGASIN ’WE LOVE TO CARE’ AWARD To strengthen our partners’ focus on the responsibility work within the business relationship, we will be handing out an annual ‘We Love to Care’ award. The award praises our product- and service providers for their efforts in terms of responsibility.

A podcast host with special knowledge of the industry will interview a guest from within Magasin, as well as an external expert, a pundit or someone within the industry on sustainability topics.

Deadline: Conceptualization Q3 2023. First podcast to be published in 2024.

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OTHER SOCIAL RESPONSIBILITY 1. A BALANCED YOUTH A. Support for vulnerable children and young people – The LØFT (LIFT) Grant.

Magasin wants to hand out a grant to a number of young people leaving child protection to ensure their future development. This could be through education and personal support from Magasin.

The following are Magasin’s efforts, the scope of which primarily affects corporate influence on social conditions outside of the corporation’s immediate sphere

The grant is awarded to celebrate the young person’s efforts in preparing for adult life, and to ensure their continued positive development.

The grant should be administered in cooperation with an independent professional body, e.g. Foreningen af Dag- og Døgntilbud for udsatte børn og unge, Joannahuset or others.

B. Support for mental well-being. Counselling.

Magasin would like to support initiatives concerning the mental well-being of young people utilising areas of our department stores. We will explore the possibility of collaborating with organisations that offer conversation and adult support on young people’s terms.

The goal is threefold; – To ensure good physical facilities – To promote the work for mental well-being in general – To secure more volunteers for the chosen partners Magasin will facilitate both open, voluntary counselling, and presentations with special focus areas (Talks). Magasin will also seek to increase the recruitment of volunteers within our own ranks and allocate a number of hours to voluntary work for every employee interested.

Deadline: Seal a deal by mid-2023 and start the program by the end of 2023.

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MAGASIN DU NORD COLLECTION AND MAD & VIN - PRIVATE LABEL

RESPONSIBILITY IN THE VALUE CHAIN The following are prioritised for our private labels Magasin du Nord Collection and Mad & Vin Through close partnerships, Magasin Du Nord Collection (MDNC) strives to create a transparent value chain that lives up to high degrees of social- and environmental responsibility.

STATUS 2022: Magasin is a member of Amfori. Since 2017, all partners in Tier 1 that deliver to MDNC have complied with our ’Social and Ethical Compliance’ program, and thus have an approved social audit from SA8000, BSCI or SMETA. In 2022, Magasin has signed a ’Commitment to Transparency’, and will join forces with DM&T as well as with other Danish brands to ensure transparency, decency, and common working methods.

TARGETS: 1. MDNC partners’ potential for more environmentally friendly production will be mapped out in 2024. The plan and future objectives will be worked out in 2025.

2. Continuous maintenance of MDNC’s Social & Ethical Compliance and adaptation to new requirements.

Compliance program is to be extended to include environmental and social considerations.

3. Suppliers in MDNC’s value chain will be mapped out to achieve traceability and transparency for MDNC products.

We will strive to reach 50% transparency regarding ’Tier 4’ raw material suppliers within textiles and strive to reach 100% transparency regarding Tier 3 by 2028.

4. Ethical Compliance programs will be developed and implemented on all private label food partners.

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PRODUCT RESPONSIBILITY We wish to inspire and be at the forefront in terms of producing responsible products with our Magasin Du Nord Collection (MDNC). We want to ensure traceability and reliability for both ourselves and our customers through certification of the material and the end product. For Fashion and Home, MDNC works with the certificates GOTS, Eco-vero, Tencel, RWS, GRS, LWG, Oeko-Tex. STATUS 2022: 91% of MDNC Women, Kids, Mens and Lounge products are made with responsible material.

50% of MDNC Fashion & Home has a chemical optimization corresponding to the Oeko-Tex certification. MDNC has defined a strategy that sets the framework for the selection of responsible materials.

See more - Magasin.dk/Ansvarlighed TARGETS: 1. By 2024, 100% of MDNC Women, Kids, Mens and Lounge must be in responsible material and on average 60% in responsible material across all MDNC product categories, (some challenges do arise, however, with lace for lingerie as well as luxury materials that must retain long durability.

E.g. Egyptian cotton).

2. By 2025, 100% of MDNC fashion and Home must have a chemical optimisation corresponding to the Oeko-Tex, GRS or GOTS certification on end products.

3. In 2023 we will prepare, and risk assess the Raw Material/Labelling Strategy for Mad & Vin and clearly define which responsible optimizations we want to work with.

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Summer vibes on Magasin Torv in 1969, where the square was turned into a green oasis with flowers and trees.

THE WORK GOING FORWARD The measures described in Part 2 will be updated regularly, and the Responsibility Unit within management will meet four times a year to ensure progress and add new initiatives in the four categories.

“Magasin has a At the same time, a dialogue forum will be established, where NGOs, customers and partners declared goal of are invited to contribute ideas for increased responsibility. The best proposals will be assessed turning increased according to the prioritization criteria and included in the work equal to the unit’s own proposals. responsibility The report will be updated with progress, new into a measure of goals and results and published on Magasin.dk once a year in connection with financial reporting. success on par with Magasin has a declared goal of turning increased financial success” responsibility into a measure of success on par with financial success. We know that we are far from reaching that goal, but we have launched a comprehensive program. We will continuously follow up and ensure that our initiatives create the results that our stakeholders and we ourselves expect regarding the environment, climate, and people. We believe that increased responsibility is the benchmark measure of true quality in the foreseeable future.

We believe that our inherited tradition of quality and meticulousness will benefit Magasin in a world yearning for balance.

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OVERVIEW OF PRIORITISED EFFORTS AND GOALS FOR OUR RESPONSIBILITY WORK

CONTINUOUS STATUS UPDATES WITH RESULTS ON MAGASIN.DK/ANSVARLIGHED

JUNE 2023 Magasin Du Nord Kongens Nytorv 13, 1095 Copenhagen

5041 0767 Svanemærket tryksag