Raport sustenabilitate

SUSTAINABILITY REPORT PENNY ROMANIA 2020 6/132 Dear reader, We are glad to introduce you the fourth sustainability report of PENNY Romania. A report outlining our achievements in the field of sustainability in 2020, a year With many challenges for the entire world. The pandemic context has generated some important changes in the organization, but what has remained unchanged is our determination to act in a sustainable way. Our initiatives in the field of sustainability are defined by three main directions considering the expansion activity and the construction of new buildings - shops and warehouses, the continuous development of our assortment andgetting involved in the livesof our employees andcommunities. In the recent years, we have shifted our focus to our employees, changing our business strategy and, implicitly, our sustainability strategy. The professional development of our employees and their overall well-being have become a priority for us. As a retailer, wewere not spared the challenge of staff retention, and a few years ago we were facing a high rate of fluctuation. As a result of sustained efforts, we managed to reduce this indicator by 10% in 2020, a result that confirms the effectiveness of the changes wemade at organizational level. The pandemicwas strongly felt in 2020, especially at the social level, among the most vulnerable people and those in the front line. In the first half of the year, right after the quarantine was established at national level, we understood where was our greatest need for help. As such, we helped the doctors and the medical staff with equipment, we supported students from disadvantaged backgrounds to continue their studies and we provided food to the people at risk. Digitalization was also an inevitable change caused by the pandemic, so our plans to test an online platformmaterializedmuch faster. In 2020,we launched the first online shopping platform with home delivery, Lyvra. At the same time, we continued our expansion plans and reached a total of 276 stores by the end of 2020. Thirty-three PENNY stores were equipped with photo-voltaic panels, and twenty of them are equipped with electric charging stations, an achievement worth mentioning as a result of our efforts to promote the principles of sustainability under the Energy, Climate and Resources pillar. As far as the assortment is concerned, in 2020 it was more important than ever to stay close to local producers and find solutions for supplying our stores with products that came from them. We created our first communication campaign in partnershipwith Romanian producers of vegetables, bread and sausages and we are committed to reach the target of 60% of our assortment to be produced, processed and have the main ingredient from Romania by 2023. After a challenging 2020, we look to the future with more optimism, hope and we feel ready to face even greater challenges. The fact that we had a good time over the most difficult year in our history showed us that we are strong and united and that we care about each other within our big team. Next,we invite you to go through the pages of the fourth sustainability report of PENNY Romania and discover howwe contribute to a world with less pollution and happy people. The future is made today. Thank you and have a pleasant lecture! Daniel Gross, CEO PENNY Raffaele Balestra, CFO PENNY PENNY - A SUSTAINABLE BUSINESS MODEL | SUSTAINABILITY STRATEGY | SUSTAINABLE ASSORTMENT | ENERGY, CLIMATE AND RESOURCES | EMPLOYEES AND SOCIETY | ABOUT THE REPORT | GRI INDEX