Sustainability Report 2023

SUSTAINABILITY REPORT PENNY ROMANIA 2023 10/256 Purpose of the report PENNY Romania, as an integrated part of the REWE International Group, defines us as a chain of discount stores, committed to promoting a sustainable future. For us, this commitment translates into a low-carbon future, improved quality of life for customers, efficient resource management, close collaborations in the supply chain, pollution reduction, and contributions to the local communities where we operate. We support the Sustainable Development Goals, in line with the commitments set out in the Paris Agreement. The report highlights our local initiatives, which are aligned with the directions of the REWE Group but are strategically and operationally adapted to suit the particularities of the Romanian market. The report's purpose is to present in a transparent and accountable manner the results of our activities in the 2023 financial year and to disclose our progress and impacts on the environment, society and governance (ESG). Reporting period Every year we prepare and publish our sustainability report for the previous financial year, through which we present our non-financial performance, focusing on the crucial aspects of the activity that reflect the economic, social, and environmental interests of the company. The Sustainability Report for 2023 marks the seventh edition published by PENNY Romania and includes details about our sustainability strategy, as well as an assessment of the economic, social, and environmental impact resulting from our daily activities. This report includes the company's initiatives, challenges, results, and successes for the period 1st of January – 31st of December, 2023. To highlight progress compared to the previous year, 2022, we used operational performance indicators according to the Global Reporting Initiative (GRI) 2021 and the Sustainability Accounting Standards Board (SASB). Where relevant, we presented progress by comparing it to the base year 2019, in line with our sustainability strategy, and the previous year, 2022. We are dedicated to consistently providing information on PENNY Romania's non-financial results. It is fundamental for us to develop and maintain long-term relationships of trust, and to this end, we are committed to communicating this information transparently with all stakeholders. Area of applicability The financial performance of both companies, REWE (România) S.R.L. and REWE Projektentwicklung Romania S.R.L., is detailed in the current report, while the operational performance is presented only for REWE (România) S.R.L., as it is the only one with employees. In this document, we have updated and revised certain figures from the previous report, corresponding to the financial year 2022, with clarifications added in the footnotes of the quantitative data for relevant material aspects. The reference year for our sustainability strategy is 2019, thus establishing the baseline for our CO₂ emission reduction targets. The energy and climate objectives are set considering the benefits of using electricity from renewable sources. Until 2020 (reference year 2019), the Austrian Environment Agency (Umweltbundesamt) implemented the climate balance calculation for REWE CEE (including PENNY Romania). In 2021, another entity was assigned this task. Some methodological details that were no longer in line with current standards were modified accordingly. However, the calculation and presentation of the results were designed to be as comparable as possible. In 2021, a new climate target was set by REWE International (including PENNY Romania) for the years 2030 and 2040. Therefore, the reference year 2019 is very relevant and has been recalculated. Compatibility with past years has become less important than the adequacy of the calculation method for monitoring the climate target. Therefore, the method was revised, and both the reference year 2019 and the year 2020 were recalculated. This year, a new entity was contracted to calculate the climate balance, so for comparability, the data for 2021 and 2022 were recalculated along with the calculation for 2023. To make this suitable for monitoring climate targets, special attention was given to the following aspects: z Improvement and harmonization of the REWE CEE (including PENNY Romania) and REWE DE (Germany) database z Alignment with INFRAS (prepares the climate balance for REWE Germany) regarding the database, method, emission factors, and presentation of results z The result categories were harmonized for REWE CEE (including PENNY Romania) and REWE DE (Germany), considering the structure of the scopes in accordance with the Greenhouse Gas Protocol (GHG Protocol) Additionally, following the review of the data and the completion of the internal reporting statements for the operational year 2022, the values declared in the previous sustainability report have been updated for certain indicators, which are marked in the report with the symbol • . About the REPORT MESSAGE FROM THE GENERAL DIRECTORS SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES CONTENTS

RkJQdWJsaXNoZXIy MjUyMDg2Nw==