We monitor the quantities of food that may become waste along the supply chain, through a database constantly updated by a committed team. This gives us a better insight into identifying the stages in the supply chain where quantities of potentially wasteful food are generated so we can take informed action in order to have a better management of them. For the food that arrives on the shelf, we have created a system of in-store-only discounts for products that are surplus or approaching their sell-by date. In 2022, we expanded the categories of goods for which we offer discounts when products are on the verge of expiry. We also introduced "happy hour" for bake-off products, and increased the 30% discount percentage for the accelerated sale to 40%, for a testing period. In addition, we support as a partner the bonapp.eco app, which aims to combat food waste by connecting consumers with retailers who offer quality-assured food that is nearing its expiry date. Through this app, our customers can benefit from discounts of up to 50% on packages of listed PENNY products. This strategy helps to accelerate the sale of selected products and in doing so we are able to support our customers with food at great prices and limit the amount of discarded products. Results of the partnership with bonapp.eco in 2022: We had 795 visits to PENNY stores 328 clients have bought the discounted products through this initiative 803 packages (over 4 000 products) were sold We saved almost 2 tons of food, which fed consumers at a very affordable price We have prevented almost 4 tons of CO2 that could have affected the environment Dan CRIȘAN National Sales Director Reducing food waste from PENNY operations To avoid surplus food in stores, we use modern forecasting technologies and implement automated ordering systems. In addition, through our stock management policies, backed up by the commercial expertise of our skilled employees, we are able to anticipate the supply needs of our stores and avoid overstocking. In order to improve how food freshness is guaranteed: z we monitor expiry dates closely; z we plan short transport routes between warehouses and stores, almost all our products are of regional origin; z products are transported using IFCO crates; z we use a logistics service with refrigerated vehicles, the temperature is monitored and controlled from production to shelf; z In stores, product display cases are fitted with doors to keep products at the optimum temperature; z we provide regular employee training, which helps us to minimize losses. CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY REPORT ASSURANCE GRI & SASB INDEX
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