The company declares whether or not it pursues a sustainability strategy. It explains what concrete measures it is undertaking to operate in compliance with key recognised sector-specific, national and international standards.
Fenix Outdoor International AG has established a strategic Sustainability Management. Following political, social and environmental shifts is a core element of the work of the group's Chief Sustainability Officer, who took office in 2012. Regularly the CEO and the CSO meet to discuss relevant strategic adjustments in light of the latest sustainability developments.
Our companies see sustainable growth as a center piece of their economic strategy and strive to achieve this year by year. However, sustainable growth does not mean “growth at all costs”. It is seen much more as a growth inline with the Fenix Way Management Compass's® cardinal directions. Economically, also the margin should be maintained. In consequence, this approach hinders us from focusing on growth or turnover only. To do so, Fenix Outdoor has adopted a two-fold approach: organic growth based on a strong retail network and brands known for high-quality products, as well as expansion through the acquisition of additional outdoor brands. With the purchases of the American aparel brand Rpoyal Robbins we took additional steps towards our goals. With respect to the cardinal direction “nature” the focus lies on the reduction of negative impacts: be it the product per se that has a negative impact (e.g., gas burning stoves) or the way our operation works (e.g., lighting in stores; transportation of goods), or the input materials we source (e.g., organic or conventional cotton; recycled or virgin polyester). However, we are also addressing new challenges, such as micro-plastic, the search for less harmful chemicals used in durable water repellence or new, innovative solutions for membranes and soles. All entities have identified their material aspects and embedded those in their 2020 strategic plan.
When it comes to societal and social impacts, including human and labor rights, the nature of business determines the core material issues: for some it is the question of how to recruit and retain new staff or how to involve them without hampering progress. This is an issue in Europe while the adherence to the FLA and ILO principles is a matter of concern for those brands, operating in global supply chains. In general, all entities and managers address those issues in a way, adjusted and aligned to the local circumstances of their business model.
For more detailed information see CSR Report 2018, pp. 4-10
OPPORTUNITY AND RISK ASSESSMENT
In 2018, Fenix Outdoor profited from various opportunities: Fjällräven still increased global visibility and we extended our network into Latin America, Africa and various new Asian markets. There is still a very high demand for Kånken backpacks. Globetrotter’s house brand FRILUFTS is still very successful. In 2018, our own distribution center in Ludwigslust, Germany started to operate and we will start with a new B2C service center there by the end of 2018 to provide a everything from a single source solution for our customers..
2018 was still a year of political changes and uncertainties. The crises in eastern Europe and the Middle East, and also the trade issues between China and the US still pose high threats to stability and peace on a global scale.
Climate change remains a serious issue, and we see severe risks from the increase in extreme weather events. Those may impact our operations directly (interruption of transportation and communication infrastructure; impact on owned or contracted production sites etc.). With high concern we note the overall long-term changes in climate patterns and expect long-term effects on the functional demands and quality properties of certain product categories. All in all, the general economic outlook seems to be good.
Fenix Outdoor is following The Fenix Way
and has signed the UN Global Compact. We are members of the Fair Labor Association (FLA), the Sustainable Apparel Coalition (SAC) and the Textile Exchange (TE). By membership in the European Outdoor Group and the Scandinavian Outdoor Group we align with our industry.