Falabella sets its sustainable agenda
What: Falabella implements comprehensive sustainability strategy across three pillars: environmental impact reduction, workforce diversity advancement, and community development, achieving concrete results in textile recycling, emissions reduction, and social inclusion.
Why it is important: The strategy's success in combining circular economy initiatives with gender equity and community engagement provides a blueprint for retailers seeking to transform their operations while maintaining strong financial performance, as evidenced by Falabella's profit increase in 2024.
Falabella's 2024 Sustainability Report outlines substantial progress across its three strategic pillars: +Green, Transformative Talent, and Local Development. The company's circular economy initiatives have yielded impressive results, with over 66,000 garments recovered through F Workshops, complemented by the recycling of 38 tons of clothing and 15 tons of footwear. The environmental impact reduction extends to electronics, with more than 6,600 devices refurbished, while the transition to renewable energy now covers 92% of operations, contributing to a 5% reduction in total emissions.
In the workforce dimension, Falabella has made significant strides in gender equity, increasing female executive participation from 25% to 42% regionally, with women now comprising 64% of the total workforce. The company's commitment to professional development is evident in its training programmes, with over 80% focused on enhancing women's career advancement opportunities.
The social impact extends beyond internal operations, with the Haciendo Escuela program benefiting more than 78,000 students. Additionally, the company has actively promoted entrepreneurship opportunities and employability initiatives for women in vulnerable situations, demonstrating its commitment to community development.
IADS Notes: Falabella's sustainability achievements in 2024 build upon several successful initiatives throughout the year. In February 2025, their circular economy efforts expanded through the Feria Trueque programme, which facilitated over 31,500 item exchanges, while their electronics reconditioning programme processed 1,800 devices across 10 stores. The company's environmental commitment was recogniSed by the Huella Chile program in November 2024, complementing their renewable energy transition. Their focus on gender equity manifested through innovative retail concepts like "Active Woman" and comprehensive employee health programmes, while community engagement flourished through Verde Talks and support for women entrepreneurs.
