SUSTAINABILITY REPORT PENNY ROMANIA 2021 4/168 One thing is certain: we want all of these amazing projects to reach as many Romanians as possible and to contribute significantly to the Romanian economy through our activities. We intend to conceive even bigger plans in the future years to be closer to the areas in which we operate. We are sure that we will continue on the same upward trend as in recent years in terms of business and that we will achieve double-digit growth in the coming year as a result of a good strategy and a healthy growth model. Every day,wemove closer to our objectives,we turn obstacles into possibilities, and we never forget that the future is made TODAY. We invite you to inquire into our projects which have an impact on our projects with an impact on the community and the environment. To achieve transparency in communication, PENNY team will continue to publish the sustainability report annually! We wish you a great reading experience! Dear friends, In 2021 PENNYwas a sustainable company more than ever. We have learned a lot in the last completely unexpected year, characterized by uncertainty and a lot of effort on the part of the whole society. Despite all the challenges, we adapted and kept the same commitments. For us, sustainability is howwe think and design every PENNY store, and this commitment is reflected in everything we do. We believe that responsibility for the environment, colleagues, business partners, suppliers and communities is the key component for our optimal functioning. We can have successful projects and achieve performance if we take responsibility for our actions towards those around us. Our team has become stronger and stronger over the years, a performance that has to do with both the experience we have acquired on the Romanian market and the constant investments we have made in the development of our employees. For us 2021 was an important year for at least 3 reasons: • During the BREEAM Awards of 2021, the Otopeni store was designated as the most sustainable building in Central and Eastern Europe. • Also, in 2021 we built the fourth logistics center in Filiași, an industrial building with the highest BREEAM score in the world. The result obtained is exceptional: Outstanding – 92.89%. • An aspect that shows once againour determination for sustainable development is that all new stores will be certified BREEAM In-Use. And we're not going to stop there. In the coming years, our ambition is to continue our expansion strategy to serve asmany clients as possiblewhile their level of satisfactionwith our services will be improved. We also want to be closer to our customers by offering services like home delivery and accelerated expansion of the network. We plan to open more concept stores and expand our assortment portfolio. We intend to broaden our close engagement with local and regional producers. We are on the right path to align our private brand portfolio with the TripluRO goal, by which we propose that by 2023, 60% of the range will be manufactured, processed, and the main ingredient will be sourced from Romania. This will be accomplished through active participation throughout the entire production chain. As a result, we are a part of the entire process while we work closely with the producers. We will continue to prioritize sustainable development, particularly on three key pillars: • Sustainable assortment – the foundation for a balanced diet with local and regional products – all made with care throughout the operational processes and with good practices in optimizing the supply chain • Energy, climate and resources – energy efficiency, green buildings, electric mobility, online monitoring • Employees and society – social responsibility and food waste management Daniel Gross, CEO Raffaele Balestra, CFO Marek Dolezal, COO CONTENT ABOUT PENNY SUSTAINABILITY STRATEGY SUSTAINABILITY STEP BY STEP SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY REPORT ASSURANCE GRI & SASB INDEX
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