Risks and Opportunities The first focus of the interviews was to identify those material topics that may impact the company's financial capital. The second objective was to assess risks and opportunities identified by Top Management. Below is a list of risks and opportunities from the interviews. They are a priority for the organization and will be included in risk management and strategic development activities in the period ahead. SUSTAINABLE ASSORTMENT CORPORATE GOVERNANCE AND BUSINESS RISCURI Risks z Legal provisions that could bring operational changes z Technology changes for digitalization – difficult to adapt and potentially disadvantageous to business. Work processes potentially limited by IT systems z Implementation of new operational provisions e.g. DRS – greater impact on discounters in terms of system operationalization z Inflation puts pressure on shelf prices z Ensuring the availability of regional products is laborious and with many associated risks z Social audits on new directives in the supply chain area, these may lead to product recalls that need to be made public z Many customers do not know the difference between a sustainable product and an unsustainable one EMPLOYEES AND SOCIETY z Pressure from stakeholders to invest in local infrastructure projects (given PENNY Romania's regional and local positioning) z Labor market volatility ENERGY, CLIMATE AND RESOURCES z Organic bags of two types can lead to consumer confusion. Some are compostable, others are not z Very high prices for green investments z The risk of a deficit on charging structures SUSTAINABILITY REPORT PENNY ROMANIA 2022 46/250 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
RkJQdWJsaXNoZXIy MTk3NjE0OQ==