Sustainability Report 2023

Hygiene and food safety PENNY stores are a source of attraction for millions of customers daily, who expect to find a selection of fresh and high-quality products. As the place where we interact directly with customers, we pay special attention to hygiene and food safety measures. Our activity is guided by the commitment to comply with quality and food safety standards, in accordance with applicable laws and regulations, while maintaining constant dialogue with customers, suppliers, employees and authorities. Both in stores and in the logistics centers that supply them, we have developed, supported, and continuously improved a food safety management system, based on HACCP principles. This system is documented by manuals that provide clear guidance to our colleagues. All employees participate in regular training programs in the areas of quality, hygiene and food safety. Compliance with the company's legislation and internal standards is ensured through periodic and unannounced controls at all work points, thus facilitating a continuous process of evaluation and improvement. Product labelling To prepare for the market launch of any private label product, Quality Management specialists and suppliers work together to define the information on the label, ensuring that it is clear, concise, and easy to understand for consumers. We pay close attention to presenting nutritional information in a way that allows all consumers, including those on special diets, to make informed choices. Correct and complete labelling of products is essential for informing customers, from the origin of some ingredients and the composition of the products to the nutritional value, instructions for use and recommendations for disposal of packaging. This ensures that all our products comply with the quality standards and legal norms in force. At the end of the reporting year, 34 cases of non-compliance with laws and regulations regarding the information communicated and the labeling of products were registered (compared to 77 the previous year), resulting in fines. Customers or authorities reported the incidents. Control of fruits and vegetables Healthy nutrition, being one of our strategic directions, we start by providing a fresh and quality assortment of fruits and vegetables in our stores. We offer in our stores, throughout the year, a variety of seasonal products to promote a diversified and highquality diet for all family members. To guarantee the freshness and quality of the vegetables and fruits, they are checked upon receipt in our logistics centers, before being distributed to the stores, through a visual inspection carried out by specialists who receive regular training. In PENNY stores, vegetables and fruits are inspected every two hours throughout the day to ensure that only fresh, quality products are on the shelves. We also pay attention to compliance with pesticide residue and contaminant limits, carrying out periodic analyses in independent, specialized, and accredited laboratories. We maintain constant communication with our suppliers and work closely with them to increase the number of products obtained from crops that comply with specific quality management standards for fruits and vegetables. Our goal is to ensure that the criteria for product traceability, hygiene standards and food safety are met, as well as to minimize the use of plant protection products. We continue to carry out quality checks at our suppliers right from the beginning of the production chain. To ensure high-quality traceability of production, we have standardized both local and imported products with Global Gap certificates. We collaborate with seasonal producers in Romania based on seasonal plans and strive to collaborate with local producers located in the vicinity of our logistics centers. At the same time, we continue to implement the pesticide identification risk reduction program for commercialized fruits and vegetables, which began at the end of 2022 by taking samples before products are delivered to the PENNY network. 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

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