Microplastic We believe that sustainability must be an integral part of the quality of products. One of the current problems, especially in the fast-moving consumer goods industry, such as cosmetics, is that of microplastics. At the Group level, we have defined microplastics as water-insoluble solid particles, synthetic and semi-synthetic polymers, i.e., plastic particles up to five millimeters in size, according to the German Federal Environment Agency (Umweltbundesamt 2016). It does not matter whether these polymers consist of fossil or renewable raw materials. At the REWE Group level, we are committed to reducing the negative impact on humans, animals, and the environment of microplastics and dissolved, liquid and gel synthetic and semi-synthetic polymers in cosmetic products. At the moment, at the Group level we focus our efforts exclusively on all compounds specified in the International Nomenclature of Cosmetic Ingredients (INCI list) with the following word or word element: acrylic, polymer, silane, styrol or styrene, polyquaternium, nylon, polyethylene terephthalate, polyethylene, polypropylene, polyvinyl chloride, polyester, polyether, polyamide, polyimide, polyurethane, ethylene vinyl acetate, PVP, polyvinyl alcohol, hydroxyethyl cellulose, carbomer. The REWE Group carries out, in close cooperation with its suppliers, a continuous review of the entire range of private label cosmetic products, with the aim of jointly developing replacement options and new formulations. Thanks to this initiative, in 2014 the Group gave up microbeads from all private label cosmetic products. Since then, only plant substances have been used instead of artificial exfoliation particles. The REWE Group specifies the basic principles set out in the guide for suppliers of private label cosmetics. Thus, these suppliers must comply with the following requirements: z Cosmetic formulas must be free of microplastics, as defined by the REWE Group. z Whenever possible, but without compromising the quality of the product, cosmetic formulas must not contain concentrated synthetic and semi-synthetic polymers in dissolved, gelatinous or liquid form, as specified in the list of substances. Moreover, we implemented the "Micro-plastic - free recipe" system, through which users can identify the symbol on the packaging of our private label products. Through this initiative we aim not only to offer better quality products for our consumers, but also to reduce the emissions of microplastics into the environment and to contribute to informing our consumers about the harmful environmental impacts of these substances. Further details about microplastics can be found on our website at: https://www.penny.ro/microplastic. Environmental protection in the supply chain In the meantime, we aim to have a portfolio of suppliers that align with our sustainability ambitions, seeking to bring added value to the supply chain on the material aspects relevant to us. One such example is the ALBRAU PROD factory, a supplier for SuporteRO and Haiduc private label beers. "We pay special attention to sustainability projects to reduce water consumption, transition to green, renewable energy and reduce carbon dioxide emissions. A balanced consumption of resources, such as water, is extremely important for our activity, beer being a product with a major percentage of water. The water used in the process comes from its own boreholes, being treated by the reverse osmosis process. The aim is to invest in a yeast recovery plant from the resulting technological water, thus improving the quality of the resulting wastewater and leading to a lower impact on the environment. Furthermore, to support the conservation of resources and reduce the impact on the climate, since 2019, we have been using our own photovoltaic panels. In 2023, the energy produced by these panels provided up to 25% of the factory's consumption needs. At the same time, to reduce fossil fuel consumption, we use electric forklifts that reduce resource consumption but also the impact on the air. Future development initiatives in this direction of sustainability involve the modernization and automation of the thermal power plant, which will reduce the consumption of gas, electricity and water related to the same quantities of steam produced." Luminița Martin – CEO, Albrau Prod S.A. SUSTAINABILITY REPORT PENNY ROMANIA 2023 122/256 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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