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Sustainability

We have embarked on a journey to build our Sustainability Strategy.

At our 35th anniversary, with a history of successes behind us, we are pleased to publish again our annual report addressing the topics that are most material to our stakeholders. The report comes as we focus on structuring our Sustainability department at Linx and work to build our Sustainability Strategy.

download the Linx Annual Sustainability Report 2019

Message from the CEO

The world is moving towards digital transformation, and the retail sector, in particular, is adopting changes that are reshaping the relationship between consumers and suppliers of products and services.

Alberto Menache CEO

Read our CEO’s message in the full version of the Linx Annual Sustainability Report (2019).

About Linx

We are a Brazilian leader in retail technology, and one of the largest cloud-based technology companies in Latin America. We develop and provide software system solutions for a wide range of retail segments, using integrated technologies that enhance efficiency and profitability for our customers.Learn more about our company in the chapter About us in the full version of the Linx Annual Sustainability Report (2019).

Annual Report 2019

As part of our continued commitment to building a sustainable business, in this report we share a little more about our history, the #Soulinx Culture and our business performance in 2019. Read on for some of the highlights from the report, or download the PDF for the full content!

About the report and the materiality process

The Linx Annual Sustainability Report, prepared in accordance with the Global Reporting Initiative (GRI) guidelines, describes our performance across the economic, environmental, social and governance (EESG) dimensions. The report structure, content and reported sustainability indicators (which are mapped to the UN SDGs in the GRI Content Index) were informed by a materiality exercise that defined a set of material topics and each topic’s impact boundaries for our different stakeholders, in accordance with best ESG practices for sustainability reporting. Further information about the methodology can be found on pages 14 to 19 of the Linx Annual Sustainability Report (2019) in downloadable PDF format.

 

 

Corporate Governance

Governance, one of the pillars of the EESG framework, is a priority at Linx and part of a management approach that drives continual improvement and alignment with best practices: Linx has been listed on the B3 Novo Mercado segment since 2013, when we went public on the then - BM&F Bovespa stock exchange. In 2019, with our listing on the New York Stock Exchange (NYSE), we initiated a process to achieve compliance with the Sarbanes-Oxley (SOX) Act, which applies to all U.S.-listed companies.

For details about our capital structure, governance and ethics, and about our risk management, code of conduct and anticorruption, ethics and transparency practices, read Chapter 3 of the Linx Annual Sustainability Report (2019).

People

Our expansion is reflected in the size and caliber of our human capital. We ended 2019 with a workforce of 3,658 people in our operations in Brazil, 16.8% more than at year-end 2018. By fostering equal opportunity, inclusion and diversity, we have grown not only in size but also in human rights and sustainable labor practices.

Read more about our workforce profile, employee benefits and health, quality of life, and training and development initiatives in the chapter People (pages 59 to 69) of the Linx Annual Sustainability Report (2019).

employer reputation

  • 148,000+ applications received on the vagas.com portal.
  • an average of 252 candidates per vacancy.
  • 47% increase in LinkedIn followers.
  • reaching 120,000 followers at year-end

Events at 12 branches:

  • 40  lectures
  • 38  mentoring sessions
  • 4 hackatons
  • 5 meetups
  • 14 trade fairs
  • 14 working days
  • 144 initiatives
  • 232 employees involved

Social and environmental responsibility

Carbon Emissions

Our solutions indirectly help to reduce greenhouse gas (GHG) emissions in the retail sector. By using our integrated products, such as our end-to-end platform, delivery mileage from store to customer is reduced. In 2019, we mapped out the GHG emissions caused by our operations in an Emissions Inventory developed in accordance with the GHG Protocol.

The results from this exercise, our related initiatives—such as the Green IT Company program—and energy consumption and waste disposal disclosures are detailed on pages 108 to 111 of the Linx Annual Sustainability Report (2019).

Community Relations

Our engagement with local communities is an important pillar in our approach to social, environmental and financial responsibility. We are committed to using technology as a lever for sustainability and disseminating education. And we believe that, through technology, we can enhance our engagement with at-risk youth by offering opportunities for them to access new professional opportunities and unlock new possibilities for their personal development.

Learn more about our community outreach in the chapter Social and Environmental Responsibility in the full version of the Linx Annual Sustainability Report Linx (2019).

Volunteering

In 2018 we initiated a series of volunteering actions building on the success of employee initiatives and based on the needs of partner NGOs. Employees engage in donation campaigns with visits to NGOs, tours and presentations for youth served by social projects; lectures and classes at partner NGOs, focusing on technology, the job market, first jobs, possible professions, project mentoring and other fronts.

In 2019, the program was enhanced with the launch of the Linx Volunteering Policy following discussion and validation by the Strategic Sustainability Committee, one of the program’s partners, which was also created in the year. For further information, see pages 118 to 121 of the Linx Annual Sustainability Report (2019) in downloadable PDF format.

Our COVID-19 response

The SARS-CoV-2 coronavirus outbreak in the first quarter of 2020 created a global crisis. People’s daily lives have been disrupted and many of our customers have been faced with adverse situations, such as the temporary closure of physical stores and reduced consumption.
In March, the Board of Directors set up a Crisis Committee with a mission of keeping our teams safe and our operations up and running.

Learn more about our COVID-19 pandemic response in the full version of the Linx Annual Sustainability Report (2019).

Our solutions

Over the years, we have developed a set of products and solutions that are responsive to customers’ needs in a rapidly changing market. In addition to internally developed products, we have expanded our portfolio through acquisitions of leading market players. This has strengthened our capabilities across our three product lines and helped to build a unique offering of technology solutions for both brick-and-mortar and online retail.

Read more about our portfolio in the full version of the Linx Annual Sustainability Report (2019).

2019 Headlines

  • 42% market share (POS/ERP)
  • 100,000 merchant clients
  • R$ 300bn in total transactions processed at year-end
  • 99% retention rate
  • 12% market share, making us Brazil’s leading retail software player
  • 4th largest acquirer in the EFT segment after just one year
  • around 900 websites using Linx Commerce

Market and customers

To us, customers’ success comes first. A comprehensive portfolio of integrated retail solutions has enhanced our ability to deliver a complete offering: customers have multiple entry points to our products, which also helps to boost market share.

  • Improving the Customer Experience: by integrating omnichannel solutions into our offering—we are Brazil’s leading end-to-end platform provider.
  • Data Privacy & Security: information security programs based on industry best practices, ISO 27001 and the Brazilian General Data Protection Act.
  • Training & Development: disseminating knowledge about our products and operations to customers and franchisees.

Financial overview

The retail market is experiencing a digital transformation—not only in Brazil, but also in other countries across Latin America. E-commerce, omnichannel solutions and cashless transactions are gaining increasing momentum, and this creates new opportunities for our business.

Our solid business model, the positive results from our expansion into diverse retail sectors, and our sustained, strong cash position enabled us to navigate the economic uncertainties in 2019 with confidence, as reflected in our consolidated results in the year.

Further financial information is available in the Results Center section of our Investor Relations website.

Linx Sustainability

For questions, suggestions and partnerships on socio-environmental issues, contact us by sustentabilidade@linx.com.br.

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