Materiality analysis Since the first sustainability report we have been interested in understanding the material topics relevant to PENNY Romania's activity as a discounter. Therefore, we annually undertake a careful analysis of our activities in the value chain and assess the nature of our interactions with different stakeholders at each stage in the chain. We always focus on identifying and assessing the positive or negative impact that our activity has on the environment and society, but also on the businesses and partners we interact with to create long-term value in the Romanian market. It is very important to validate the business relevance of material topics in order to understand where to better direct our processes and interventions on integrated control and monitoring through our sustainability management system supported and coordinated by the Sustainability Committee. Thus, the operational strategy is directed towards effective control through operational indicators of specific processes that prevent negative impacts but at the same time coordinates the implementation of opportunities identified through specific sustainability projects. The Sustainability Report process is coordinated annually by the Sustainability Manager, and before completion, the report is sent to a REWE Group manager who checks and aligns the content. Subsequently, the report is verified and validated by the CEO of PENNY Romania. The final report is checked for: z alignment of the relevant material topics considering their priority in terms of relevance to the business and their significance in relation to the business but also the results given by the materiality analysis, z transparency regarding progress on strategic sustainability objectives and key performance indicators, z transparency on specific operational indicators to show progress on different specific operational areas of activity, z the accuracy of the information submitted. For the current reporting year, 2022, we reviewed the material topics relevant to our work. We did a value chain analysis, an assessment of our in-house and external practices, checked the SASB industry standards in the retail – FMCG (Fast-moving consumer goods) industry and went through an analysis of opportunities and associated risks for the business considering the direct operational area. z Integration and evaluation of responses considering the internal and external questionnaire in 2023 z Integration and evaluation of interview responses z Materiality matrix (summary) Integration and evaluation z New global trends at sector level z Value chain analysis z Contextual analysis z Challenges at sector level z Opportunities and associated risks for the business and the direct operational area z Climate risks z Analysis of industry standards, SASB Review of relevant topics by sector 1 z Analysis of the stakeholders’ potential needs from an internal perspective (Sustainability Committee) z Internal management review z Stakeholder engagement / Internal-external survey on two intervention areas – environmental and societal impact analysis and analysis of the importance attributed by stakeholders to material topics Internal and external significance analysis / Internal – external environmental and social impact analysis 2 z One-on-one interviews with management – 4 people interviewed z Analysis of business relevance in terms of impact on financial capital z Analysis of risks and opportunities and environmental and social impacts ESG risks and opportunities analysis 3 4 z Internal validation z Final materiality matrix z Validation of indicators for disclosure Materiality matrix 5 CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY REPORT ASSURANCE GRI & SASB INDEX
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