We explain the material aspects for a better understanding: CORPORATE GOVERNANCE AND BUSINESS 1 Governance and sustainable management We conduct our activities and development with integrity and respect for society. It is a top priority for our company to manage all aspects of corporate governance properly; from compliance with all aspects of our code of business conduct and corporate policies to transparency in diversity and crisis management. 2 Risk management and compliance The assessment and management of the risks associated with PENNY Romania's operations are essential and form part of the focused corporate management process. We identify and responsibly manage all business risks, operational risks and risks associated with regulatory compliance on various aspects of the Romanian market. We take great care to ensure that our operations comply with REWE Group requirements, applicable legal requirements, or specific stakeholder requirements. We identify new opportunities that we address from the perspective of added value to the community. 3 Sustainable business model We have adopted a sustainable business model because we are fully aware that only through an ethical approach to business with respect for all human rights and through responsible business approaches and practices can we be close to the needs of our stakeholders. We enter partnerships and collaborations in a transparent manner and address our consumers on the commercial sector using responsible marketing means. Environmental and social responsibility has long earned a special place in our business strategy. 4 Cybersecurity With the continued digitization in recent years, cybersecurity has become a major issue for both businesses and the public. We do our utmost to ensure the protection of personal data and to prevent and combat cyber-attacks. We use state-of-the-art IT systems and attach great importance to cybersecurity for both internal and external stakeholders. SUSTAINABLE ASSORTMENT 1 Regionality and local products We focus on purchasing assortments from regional producers and enter long-term collaborations with local producers. A regional assortment supports local producers, strengthens the welfare of Romanian farmers and local farms and therefore the communities living around them. To maintain a positive impact, we aim to be as close as possible to the communities in which we operate by offering regional products and private label made according to typical Romanian recipes. 2 Ethics in the supply chain processes We aim to promote a sustainable product assortment and to achieve this we develop long-term partnerships with our suppliers to ensure that quality, environmental and social requirements are met throughout the supply chain. 3 Animal welfare We are a company that promotes the responsible treatment of farm animals and to this end we partner with fresh meat suppliers who demonstrate the highest standards in this area. The conditions in which laying hens are kept in cages are not acceptable to the REWE Group, and therefore to PENNY Romania. Selling eggs from caged hens would be a contribution to encouraging the cruelty with which these birds are raised. Lack of space and overcrowding are stress factors for these birds that trigger aggressive behaviors such as injurious pecking or cannibalism. PENNY has decided to phase out stocking these products. 4 Packaging management Packaging fulfils many important functions: it keeps food fresh, protects it and allows it to be transported and handled. It also provides space for relevant information. However, along the packaging value chain many negative environmental impacts occur. For example, packaging production requires the use of natural resources, consumes energy and generates emissions. Environmental protection is a hot topic in today's society. We believe it is our responsibility to integrate the use of sustainable packaging, to contribute to the implementation of elements of circular economy and to encourage consumers on selective collection and prevention of food waste. 5 Promoting healthy nutrition As far as nutrition is concerned, transparent information about the organic, ecological and nutritional values of products and the adaptation of the product assortment plays an important role for us. As a strategy for the future, we want our private label product portfolio to increasingly comply with the principles of healthy and balanced nutrition. We are pursuing the strategic goal of expanding our range of more sustainable products – Organic, ecological or special diet products make an important contribution to this. SUSTAINABILITY REPORT PENNY ROMANIA 2022 40/250 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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