ETHICS IN SUPPLY CHAIN PROCESSES EXPLANATION OF THE IMPACT Our main goal is to meet and exceed the expectations of our customers, who are increasingly interested in the origin of food and pay more attention to the way it is produced, considering the impact on the environment, social equity, and food safety standards. By integrating sustainability principles into our supply chain, we improve our performance, minimize risks, and strengthen confidence in the products we offer. We see the supply chain as an opportunity to implement sustainable strategies and actions externally. In the process of building sustainable relationships with suppliers, we ensure that the highest quality, environmental and social standards are met throughout the entire supply chain. We are aware of the importance of promoting sustainable products at every level of the value chain and we work with local suppliers to provide our customers with Romanian products, created in the most natural and environmentally responsible way possible. HOW WE CONTROL THE IMPACT By rigorously controlling supply and establishing sustainability criteria in the suppliers’ selection, we have been able to build sustainable supply chains. All our business partners have agreed to adhere to our code of conduct, which sets out the essential and uncompromising minimum standards that suppliers must comply with in their business relationships. The Code of Conduct obliges them to identify, assess and priorities the impacts of their activities on human rights and the environment, and to implement appropriate measures to remedy or mitigate them. We are committed to continuing responsible sourcing, investing in the development of suppliers locally, informing them about the specific requirements in Romania and the REWE Group standards, and educating our customers about the country of origin of the products, nutritional information, and ingredients of the foods we sell. We are constantly growing our portfolio and business, and for this reason our supplier network is constantly growing, in 2023 contracting 69 new suppliers to support the delivery of quality products to our customers, thus reaching a total number of 839 suppliers. OUR IMPACT AND PERFORMANCE IN FIGURES In 2023 we focused our attention on the sustainable characteristics of the products as follows: z Through our private label coffee assortment, we support the preservation of ecosystems and the sustainable improvement of living conditions for agricultural workers in the countries of origin of our coffee, 100% of our private label coffee and 5% of our private label tea is Rainforest Alliance certified, ecolabel or Fairtrade. z The packaging of our private label products is made of FSC-certified paper or cardboard. z 2% of private label fish products are MSC, Global G.A.P., ASC certification or organic certification. z 30% of the fish assortment sold is MSC certified. z 100% of the products containing cocoa, private label developed in partnership with colleagues in Germany are UTZ certified. Unfortunately, we do not currently have the necessary systems in place to track certification information for all products in the portfolio. However, we consider when choosing a new product (for both private label and underbranded products) whether the products are certified: z Fairtrade – produced in accordance with the rigorous environmental, economic and social standards of Fairtrade International. z FSC – ensures that paper products come from responsibly managed forests. z EU Ecolabel – products with a low environmental impact throughout their entire life cycle. z any of the official certificates that guarantee that the product is organic, bio, etc. SUSTAINABILITY REPORT PENNY ROMANIA 2023 116/256 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
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