Regional and local products The current partnerships with local and regional suppliers provide us with a constant flow of fresh regional products liked by our customers. We constantly make efforts to increase the percentage of local products at the best price. We will continue to develop our close collaboration with local and regional producers in order to make sure that we provide our customers with products processed in Romania, with the main ingredient from Romania, and the substantial transformation of the main ingredient was also undertaken in Romania. This is what we call ”Triple RO”. Currently, our Hanul Boieresc portfolio is 100% produced in Romania and the Republic of Moldova. At the same time, the Boni portfolio is also a proof of the Triple RO commitment – over 38 items of this brand, fresh products, are exclusively produced in Romania. The company’s general strategy pays a lot of attention to the Triple RO principles, because we consider that this is the only way by which we can be closer to our customers and have a positive impact on the environment and the local communities. We plan to continue to develop the close collaboration with the local and regional producers and we are on the right track in aligning the private brand assortment to the Triple RO goal, by which we aim that, by 2023, 60% of the assortment, both brand and private, is produced, processed and has the main ingredient from Romania. In 2021, we have continued to develop and to promote the private Romanian brands. The most important private brands include: z Hanul Boieresc – Typical Romanian products, produced in Romania, with quality ingredients, by experienced suppliers. z Meșterul Măcelar – various products for grill lovers. z SuporteRO – the first and the only own brand dedicated to the supporters of Romanian football. z BONI – over 30 fresh dairy products exclusively produced in Romania. z Haiduc beer – four types of beer (blonde, dark, bitter, strong) produced with 100% Romanian ingredients. z Casa Gustului – Typically Romanian lunch meat and meat preserves, produced by Romanian producers. z PENNY – diverse offer of own brand products, produced both in Romania and abroad. The primary packaging of products made in Romania and whose main ingredient comes from Romania bears the indication” Made in Romania”. z PENNY READY – fresh pre-cooked products and ready-to-eat products. Social standards in the supply chain The establishment and the continuous improvement of social and environmental standards and specific practices throughout the supply chain is a lengthy process, but extremely important for providing our customers with sustainable products. By the sustainable management of the supply chain, we ensure: z The responsible supply by local investments aimed at developing the suppliers z The observance and the promotion of human rights and appropriate working conditions for our collaborators z The information of our collaborators of the Romanian requirements z The information of customers of the country of origin of products, the nutrition elements and the food ingredients In 2021, we have started to analyse our permanent assortment in order to identify the intervention need. 93% of the production facilities for the national own brand products are found in countries with social risk 46% of producers declared that they held a valid social audit certificate (BSCI, BRCS-ETRS, SA8000, SMETA) by the end of 2021 We will continue to check the requirements in 2022, and we will ask all producers to obtain a social standard certification by the end of 2022. On the basis of the product-related risk analysis carried out at group level, the main critical raw materials have been defined for the human area of action: coffee, cocoa, tea, palmoil, juices (in particular, orange juice), fish, fruits and vegetables, like bananas or pineapple. We give a special attention to textile products made of cotton and to natural stones. SUSTAINABILITY REPORT PENNY ROMANIA 2021 70/168 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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