ANIMAL WELFARE EXPLAINING THE IMPACT Consumers of meat products are becoming increasingly aware of the treatment of farm animals. Most farms are highly industrialized and dominated by practices that increase productivity and efficiency to maximize profits, at the expense of paying due attention to the needs and welfare of animals. Factory farms, feed large numbers of animals in confined spaces, and produce large amounts of water and manure waste, and pollutants. To prevent animals from hurting each other due to stress and overcrowding, painful mutilations are carried out, such as cutting off the horns of cattle or cutting off the beaks of chickens. At PENNY, we believe that healthy profit comes from healthy animals. Therefore, treating farm animals responsibly is a fundamental criterion that our company takes into account when partnering with suppliers. HOW WE CONTROL THE IMPACT Before entering partnerships with our suppliers, we conduct audits to ensure that our internal requirements are met. Our suppliers must demonstrate that they are IFS certified and that they meet and implement the highest standards of quality, food safety, and animal welfare. For our suppliers who also own livestock farms we initiated the Life Cycle Assessment (LCA) process. Our objective is to eliminate unused or long transport routes in supply chains and adapt the conditions of animal husbandry to the needs of the animals. OUR IMPACT AND PERFORMANCE IN FIGURES Animal welfare plays a special role in the Sustainable Assortment pillar. In 2022, we started risk analysis and defined clear minimum requirements for our suppliers to implement our strategy. Animal products such as meat, milk, and eggs are an integral part of today's eating habits – livestock farming is thus an essential branch of agricultural production. To achieve our goals, it has been found that the major challenges may lie in external, non-influential factors. For example, crisis situations such as pandemic, war, or inflation, and regulatory changes, require readjustment of internal processes. The entire portfolio of private label products in the categories of meat, dairy, and eggs is set to be aligned with a grid of established animal welfare standards, with suppliers to be monitored for compliance. SUSTAINABILITY REPORT PENNY ROMANIA 2022 112/250 SUSTAINABILITY STRATEGY ABOUT US AND OUR VALUE CHAIN THE FUTURE IS MADE TODAY SUSTAINABILITY HIGHLIGHTS MESSAGE FROM THE GENERAL DIRECTORS CONTENTS SUSTAINABILITY STEP BY STEP
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