Raport Sustenabilitate

IMPACT EXPLANATION The governance of our activities is based on customer satisfaction, which is a priority goal. We identify the needs of customers and we create new relationships with the suppliers and the supply processes, so that we have the desired products on shelves. PENNY customers want regional or local products. Ensuring a regional assortment consolidates the welfare of Romanian farmers and farms and, implicitly, of local communities. The whole supply chain represents an area suitable for implementing sustainable strategies and actions. In the process of developing sustainable relationships with the suppliers, we make sure of complying with the highest quality, environmental protection and social standards throughout the entire supply chain. We are aware of the importance of promoting sustainable products throughout the all stages of the value chain and we collaborate with local suppliers in order to provide our customers with Romanian products, made as natural and sustainable as possible. Ethics in the Supply Chain Processes HOWWE MANAGE THE IMPACT On the basis of the application of principles of sustainable development, supply control and development of ecological criteria in selecting external suppliers, we have developed sustainable supply chains. The sustainable management in our supply chain is an important strategic component of the improvement of discounter performance and includes the continuous optimisation of each stage. So, we continue to source responsibly through investments at the local level for the development of suppliers, informing them of the Romanian and group requirements and at informing the customers of the products’ country of origin, the nutrition elements and the food ingredients. We defined several criteria for regional, local or seasonal products. You may consult the criteria in 2020 PENNY Sustainability Report for Romania, (page 56). OUR IMPACT AND PERFORMANCE IN FIGURES We have a laboratory testing and verification program for our own brand products. They are subject to an internal audit twice a year. This process takes a leading role in quality management and allows us to establish specific requirements for our own brand products, along their entire value chain: raw material – recipe and labelling – packaging. The correct labelling of products is themain channel of informing customers from the origin of the ingredients and the composition of the products to their nutritional value plus how to use and dispose of them. We ensure that quality standards and legal provisions are strictly respected. Moreover, for our own brands, the specifications included on the label include chemical and microbiological parameters and information related to the material from which the packaging is made. SUSTAINABILITY REPORT PENNY ROMANIA 2021 68/168 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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