CONTENT ABOUT PENNY SUSTAINABILITY STRATEGY SUSTAINABILITY STEP BY STEP SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY REPORT ASSURANCE GRI & SASB INDEX In 2020, we began a new strategic cycle in which we would invest over 1 billion Euros in Romania until 2029 through measures implemented within the seven pillars of development: 1. Renovation of the store and enhanced shopping experience. We finished 2021 with 94 refurbished stores, and we expect to remodel the remaining 84 locations in 2022. As a result, by 2022, the entire network will use the new store format. 2. Expansion. By opening the newwarehouse in Filiași in 2021, wewould have reached themilestone of 301 stores and 4 logistics centers. We intend to accelerate the pace of shop openings in the future so that by 2029, we will have over 600 stores and six logistics centers. 3. Romanian products. In 2021, we also focused on expanding the portfolio of Romanian-origin products and established a promise, the TripluRO aim, in which we propose that by 2023, 60% of the assortment will be produced, processed, and have the principal ingredient from Romania. 4. PENNY team. Our people come first in everything we do, and 2021 rewarded us with good retention results. We continued to invest in their development, raising the minimum net income required to join the company to 2 275 lei, and launching a new employer branding campaign, ”PENNY's success begins with people.” We were named a Top Employer 2022 as a result of all of this. 5. Digitalization. In 2021, we began a partnership with Glovo to improve our clients' purchasing experiences. Furthermore, we focused on simplifying and streamlining operational procedures through various solutions. 6. Sustainability. We treat everything around us with responsibility, especially regarding the impacts of our activity on the community and the environment; because our company is a partner of the Romanian economy and society, one of our strategic objectives is to invest 19.5 million Euros in sustainability measures until 2024. Within the framework of the BREEAM Awards 2021, the Otopeni store was designated the most sustainable building in Europe Central and Eastern. In 2021, we developed the logistics warehouse at Filiași, the industrial building with the highest score at BREEAM (Building Research Establishment Environmental Assessment Methodology) International New Construction 2016. The result obtained is an exceptional Outstanding - 92.89%. 7. Integrated communication. We started a newpartnershipwith the Romanian Football Federation - for the first time, both the senior and U21 teams have a main sponsor: PENNY. The partnership focuses on SuporteRO, the first and only own brand dedicated to supporters, which received UEFA international recognition. From the series of campaigns dedicated to our customers, we continued to reward loyalty in 2021. We've rewarded loyalty by bringing into highlight Lego sets and fluffy bugs. Furthermore, in 2021 we continued with four episodes of the corporate event “PENNY la zi” (“PENNY up-to-date”) and enjoyed the recognition of our efforts through the prizes obtained at the PR Award, the most important national competition to recognize excellence in the field of Public Relations. SUSTAINABILITY REPORT PENNY ROMANIA 2021 14/168
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