organisation

The Management Team (MT) and the Supervisory Board form HEMA's governance. The management team is responsible for the day-to-day management of HEMA and consists of seven people: the Chief Executive Officer, the Chief Financial Officer, the Chief Customer Officer, the Chief Product Officer, the Chief Technology Officer, the Chief Operations Officer and the Chief People Officer. The Executive Board is the statutory management of HEMA BV and consists of the Chief Executive Officer and the Chief Financial Officer.

The Supervisory Board of HEMA is responsible for supervising and advising the MT in the fulfilment of its management duties. The Supervisory Board focuses on the interests of the company and comprises five people. Topics include the appointment, performance and remuneration of the MT, risk management, international expansion, marketing, e-commerce, franchising, supply chain, financing and cash flow of HEMA. Regular agenda items include financial and operational performance, market share development and general business.

Two members of the Supervisory Board were appointed as Audit Committee. Among other things, this committee oversees financial reporting, risk management, internal controls and advises the Supervisory Board on the appointment of HEMA's independent external auditor.

Individual fixed remuneration agreements have been reached with the management team. Salary scales have been set up for fixed pay within which salaries can grow. On the basis of an annual appraisal, salaries can increase up to the maximum of the relevant scale. Compensation for termination of employment is determined on a case-by-case basis. If such termination is part of a reorganisation, these employees are covered by the Social Plan.

Variable remuneration is dependent on the performance of the company's objectives. In case of underperformance, the right to the variable remuneration lapses. The compulsory industry pension fund for the retail sector applies to all employees. As such, the management team is affiliated to the same pension scheme as all other employees.

‘Leading in the sustainability movement’ is one of seven indicators (KPIs) for governance. The governance's performance is not assessed by an independent party.

HEMA's governance (management team and Executive Board) is responsible for corporate strategy. Sustainability is an important focal point in this. Developments and sustainability targets are monitored and discussed at the sustainability consultation. Present in this are the CEO, CFO, CPO, CPeO, and representatives from the communications, legal, quality, buying desk, risk & audit and sustainability departments. In January 2024, the sustainability committee transitioned to the ESG committee, which discusses all sustainability issues and preparation for CSRD implementation on a monthly basis.

The sustainability team, consisting of three employees, is responsible for the sustainability policy, managing impact and steering performance and reports to the CEO, who has ultimate responsibility for the matter. The team reports quarterly to the CEO on actions and progress on sustainability indicators. Both the CEO and the CPO are signatories to relevant agreements such as the International Accord and the Pakistan Accord for the textile and clothing industry. Executives are briefed quarterly on the progress of targets. Information is provided by various departments.

The sustainability team is responsible for sustainability policy and strategy development. Colleagues from other HEMA departments are responsible for implementing the policy: including legal department, buying desk (packaging expert and product sustainability expert) and quality (audits MRQ).

Every month (and more often if necessary), the team consults with the CPO, responsible for, among other things, the chain and risks involved and the appropriate HEMA approach. Every quarter, the sustainability team shares a quarterly internal report with the management team and managers of the various departments. In it, progress is shared on targets on transparency, risks, packaging, environmental impact and certification. Every month (and when necessary), the sustainability department consults with the CPO on progress.

Progress on sustainability is shared annually in the public sustainability report. HEMA's management team is responsible for overseeing and approving sustainability information. The corporate communications team coordinates the format and process. Teams within HEMA supplied the required information. The management team issues final approval for publication of the sustainability report. In this report, we are still reporting on material topics from the 2021 analysis. Next year, we will be reporting in line with our new material topics from the 2023 dual materiality analysis. HEMA's CEO and CFO contributed to the structure of the dual materiality analysis and are involved in the outcomes and objectives.

Governance (MT and Executive Board) are involved and present in consultations with stakeholders. The MT as a whole attends strategy days (employees, supplier), stakeholder meeting (January 2024) (colleagues, NGOs, collaborative partners), Say HEMA (with customers) and other touch points. Feedback from these consultations is continually factored into the formation of the sustainability policy.