Sustainability

Our ESG Path

Track&Field has been actively working to integrate Environmental, Social, and Governance (ESG) issues into its business operations and has a team dedicated to structuring and driving this priority agenda for the company.

In 2021, for the first time, we consolidated the initiatives that mark our ESG trajectory in a document, which you can check here. Since then, we have progressed in some topics, based on the studies conducted in 2022. In the first semester of 2023, aiming to provide more transparency regarding the developments of our business, we released our first Annual Report for 2022 (check it here). In this publication, we provide an overview of the company and its performance in 2022, as well as present our ESG Plan 2025, which will guide the company’s actions in the coming years.

Next, we will present the historical background and key developments for the years 2021 and 2022 for each of the topics:

Environmental

As we aim to further understand the environmental impacts of our operations, in 2021, we conducted an impact assessment that covered water consumption and waste generation in our operations.

With regards to water consumption, in 2021 our operations (headquarters, distribution center, own stores and franchises, and own production) consumed approximately 20,522 m³ of water.

In 2022, at our unit located in the Ipiranga district, combined with the Oscar Freire and Cristiano Viana stores, there was a water consumption of 1.9m³. Our other units (corporate office, distribution center, Joinville factory and proprietary stores) are located in commercial complexes and shopping malls, therefore we do not manage the data directly. Additionally, the digital printing, implemented to reduce water consumption involved in screen printing, was one of the technological innovations adopted by the company in recent years and is applied to the t-shirts used in some of our events.

*The presented data considers the apportionment methodology: total consumption of the commercial complex/units. In the case of company-owned stores and franchises, we only consider street-level units.

In our distribution center, we have an initiative for reusing already used boxes in the supply chain, which are reused three to four times, extending their useful life – and when they can no longer be reused, they are recycled. In 2022, 54.38tons were sent for recycling.

Check the following table for the types of waste mapped and their respective destinations (data for 2021):

We also took a significant step with the development of our greenhouse gas emissions inventory for the years 2020, 2021 and 2022. It was the first time we conducted this study, and the 2022 data allowed us to have a better understanding of our impact, as this year was less affected by the pandemic. In 2022, our scope 1, 2 and 3 emissions totaled 38,462.28tCO2e

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In 2022, in pursuit of reducing environmental impacts, we took action to contribute to the reduction of plastic usage. We recognize the significance of packaging in the retail sector, therefore, since 2021, we have been working on reviewing some of the packaging models we offer to our customers.
In our stores, starting from September 2021, we initiated a pilot project to replace plastic packaging with paper packaging, with the goal of eliminating the distribution of plastic bags by the end of 2022.
Following tests and positive feedback from customers, from August 2022, we rolled out this initiative across the entire network, which includes our company-owned stores and franchises. By December 2022, all stores in the network were exclusively providing paper bags, thus eliminating the use of plastic in our packaging. Gift packaging was also reviewed, and now we use kraft paper for this purpose.

Furthermore, in our administrative, production and distribution center units, we have eliminated the use of disposable plastic cups and provided all employees with a reusable cup. New employees also receive this same cup during their onboarding in the company. With this initiative, we have already avoided the use and disposal of more than 400* thousand plastic cups.
*December 2022 to June 2023

Also in 2022, the Santander Track&Field Run Series – the largest running circuit in Latin America in terms of number of events – innovated and started offering runners hydration with water in aluminium cans, reducing its environmental impact as the container is 100% recyclable, and thus eliminating the use of plastic cups, which previously amounted an average of five to seven units per participant.

In 2021, around 6 million pieces of clothing were produced. In 2022, that number was around 5.5 million pieces. In both periods, 77% of the total volume was produced in Brazil. Track&Field is committed to avoid incinerating unsold parts, therefore, no percentage of our textile products is destroyed, considering both pre and post-production. As for leftover items in the inventory, they follow the markdown/outlet flow and in case they are still not sold, they go to an internal bazaar exclusively for employees.

Social

Our mission is to connecting people with an active and healthy lifestyle– a goal which extends to both our customer base and our employees. As a result, we have created an initiative dedicated to our collaborators that offers partnerships, events and other benefits focused on well-being and different  pillars of physical and mental health. Some examples of actions we have today are:

•  Santander Track&Field Run Series with free kits for employees and 50% discount for a companion;
• Continue em Movimento program, with free classes available through our TFSports app;
• Partnership with the Gympass platform, through which our employees can access gyms in different regions and modalities;
• Running groups in partnership with Run Fun sports consultancy;
• Discounts in nutritional consultations, in partnership with a specialized clinic;
• Lectures to encourage learning on topics related to our mission;
• Sports incentive with exclusive classes in different modalities, such as yoga practice and beach tennis workshop.

We are committed to providing equal opportunity and fair treatment for all employees through our Code of Ethics. Any type of discrimination or conduct that are harmful to human rights in any way are not tolerated, and any occurrences (both in our operations and in our supply chain) may be reported through our Ethics Line, an independent channel managed by Aliant/ICTS through website: www.canaldeetica.com.br/trackefield  or by phone: 0800 591 7159. We also provide internally, in emergency cases, a social and psychological guidance and support service to employees.
In 2022, we launched an internal diagnostic process to shed some light on the diversity scenario within our operations. Our first step was to carry out an internal census, in order to better understand the profile of our employees and since then we have invested in training and lectures on the subject diversity and inclusion, to raise our employees awareness on this issue. Please see below the job position list by race, mapped out in the February 2022 census.

In addition, women represent 78,5% of our workforce, occupying most leadership positions. Check below the breakdown of positions by gender in our company.

Our compensation and benefits practices are in line with legislation, collective bargaining agreements and market practices. With regards to benefits, all our direct employees have medical and dental insurance; meal vouchers; public transport vouchers; profit sharing; and are entitled to 30 days’ vacations, 120 days’ maternity leave or 5 days’ paternity leave, according to national law. In addition to a 50% discount on clothing items and a 20% discount on accessories for direct employees; and participation in races promoted by TF Sports, free kits, and a discount for dependents.

Governance

The company has a Sustainability Committee, formed by Alberto Dominguez Von Ihering Azevedo (Sustainability Committee coordinator, Track&Field founding partner and member of the Board of Directors), José Vicente Marino (Independent member of the Board of Directors) and José Aparecido Favilla (textile specialist). The Committee’s main objective is to monitor the evolution of the environmental agenda (including waste, climate, among others) and the social agenda (which includes topics such as Diversity and Inclusion, human rights, among others) in the company. In addition, it keeps the Board of Directors informed of its activities through reports, which are analyzed during the meetings, and submits for approval any matters that are within the scope of this body.

For more information about our ESG initiatives, please send us an e-mail esg@tf.com.br.