ANIMAL WELFARE EXPLANATION OF THE IMPACT Concerns about the living conditions and treatment of farm animals are increasingly common among consumers. In many cases, farms are highly industrialized and focus on increasing productivity and efficiency to maximize profits, often neglecting the needs and welfare of animals. Industrial farms house many animals in confined spaces, generating a significant amount of liquid and solid waste, as well as polluting emissions. To prevent animals from being injured due to stress and overcrowding, painful mutilations are practiced, such as decreeing horns in cattle or cutting beaks in birds. We believe that sustainable profit is based on animal health. Therefore, a responsible approach to the treatment of farm animals is a key principle that our company considers when establishing partnerships with suppliers. We are committed to working with farms that prioritize animal welfare and adopt ethical practices in their breeding and care. HOW WE CONTROL THE IMPACT We conduct audits to verify compliance with our internal requirements before entering any partnerships with suppliers. Suppliers must present IFS (International Featured Standards) certification and demonstrate adherence to and implementation of the highest standards in terms of quality, food safety and animal welfare. For those suppliers who also own livestock farms, we have started the Life Cycle Assessment (LCA) process, with the aim of minimizing or eliminating inefficiencies and excessive transport in supply chains and improving animal husbandry conditions to meet their specific needs. OUR IMPACT AND PERFORMANCE IN FIGURES We continue the process of risk analysis and set clear minimum requirements to enable our suppliers to implement the company's strategy. In this way, we aim to ensure that the entire portfolio of private label products in the meat, dairy and egg categories comply with a set of well-defined animal welfare standards, and that suppliers are constantly monitored to ensure compliance with these standards. Animal products, such as meat, milk, or eggs, are essential components of the contemporary diet, and animal husbandry is a vital segment of agricultural production. To achieve the set objectives, we have identified that major challenges can come from external factors that cannot be directly controlled. SUSTAINABILITY REPORT PENNY ROMANIA 2023 126/256 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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