Code of Conduct We expect our suppliers to operate in a transparent and ethical manner, ensuring that their products are manufactured under fair working conditions and with minimal environmental impact. Therefore, in 2022, we introduced a Code of Conduct for Suppliers, which represents the actions of the entire REWE Group to enhance sustainable collaboration with suppliers by encouraging ethical practices, correctly carried out with professionalism, which include respect for human rights, business ethics and environmental protection. We expect our suppliers to comply with all applicable laws and regulations in the countries in which they operate, to treat their employees fairly and respectfully, and to provide a safe and healthy working environment. In addition, we expect suppliers to operate in accordance with applicable legislation, regulations and environmental criteria and to take responsibility for the environmental impact of their operations. We are aware that at different stages of the supply chain, from the cultivation and processing of raw materials to private label products, there is a significant risk of noncompliance with social and labor standards. To combat these risks, we maintain close collaboration with our suppliers. The process of setting and continuously improving social and environmental standards, as well as specific practices along the supply chain, is a complex and long-term endeavor, but essential to ensure our customers have access to sustainable products. Through responsible supply chain management, we ensure that: z We source responsibly, investing locally for supplier development, z We respect and promote human rights and ensure adequate working conditions for our employees, z We inform our collaborators about the specific requirements in Romania, z We educate customers about the country of origin of the products, nutritional information, and the ingredients of the foods we offer. As part of its sustainability strategy and legal compliance, the REWE Group has developed a risk assessment system throughout its supply chain, following the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG). Thus, the risk management process within supply chains and in their own business areas, is based on holistic and continuous risk management based on human rights and environmental diligence. At Group level, we align our business operations with internationally applicable standards and guidelines, such as the United Nations Universal Declaration of Human Rights or the International Labor Organization's conventions and recommendations on social and labor standards. Regarding social risk, each of the Group's supply chains is assessed in terms of potential negative impacts on human rights, as well as potentially affected parties in its own business area and within supply chains. The results of the risk analyses are continuously incorporated into the REWE Group's entrepreneurial decisionmaking processes regarding internal business strategies as well as supplier selection and management. The REWE Group has identified child labor and forced labor, income, working hours, discrimination, protection of the right to freedom of association, as well as occupational health and safety as particularly sensitive areas in its supply chains. Thus, following this evaluation for PENNY Romania, it resulted that out of the total of 165 production units for private label products, 158 are classified in countries with social risk. 95.75% of the national private label production sites are in countries with social risk, according to the Group's assessment 73.6% of suppliers for private label products declared by the end of 2023 that they have a valid social audit certificate SUSTAINABILITY STEP BY STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY GRI & SASB INDEX ASSURANCE OF SELECTED NON-FINANCIAL INDICATORS
RkJQdWJsaXNoZXIy MjUyMDg2Nw==