More sustainable packaging We are committed to avoiding over-packaging for private label products and, where complete disposal is not possible, to minimizing the need for packaging or redesigning it using more sustainable materials. This approach is in line with the 3R strategy – reduce, reuse, and recycle. By reducing the number of materials used for packaging, especially plastic, we contribute to decreasing the volume of waste that requires recycling, to reduce pollution of the environment and the oceans. In this regard, we have implemented the following measures: z All bags in our stores were replaced with eco-friendly, 100% compostable alternatives made from plant materials. z Traditional plastic bags for fruits and vegetables were replaced with biodegradable versions, made of biopolymers and corn starch. z We have started using recycled PET packaging for bottled water and plan to expand the use of this type of packaging for other soft drinks as well. z On the packaging of private label products, we added the icons "Consume, Collect Selectively" and "Consume, Rinse, Collect Selectively", to motivate consumers to participate in the selective collection of packaging waste and to be aware of the responsibilities related to this process. z 47% of the packaging of private label products in the categories of cosmetics and detergents in the permanent offer of 2023 was replaced with more environmentally friendly options. z For private label products, required suppliers to obtain FSC (Forest Stewardship Council) certification for paper and cardboard, for both primary and secondary packaging. Paper and cardboard packaging 2022 2023 PROGRESS 2023 vs. 2022 Number of newly developed items with FSC-certified primary packaging 58 97 +67% Number of newly developed items with FSC-certified secondary packaging 103 143 +39% Our goal by the end of 2025 is for all primary and secondary paper and cardboard packaging to be made of FSC-certified materials. The proportion of items with packaging with low environmental impact that were found in the permanent assortment in 2023 53% Virgin packaging 47% More sustainable packaging Low environmental impact packaging in the cosmetics and detergents categories Single-use plastics are commonly used for plastic packaging, including items such as containers for cosmetics and detergents, which are meant to be used only once before being disposed of or recycled. They are a major ecological problem, as they often end up in landfills or in the environment, contributing to pollution. More efficient recycling of plastics can provide significant benefits for both the environment and economics. To achieve a level of recycling of plastics comparable to that of other materials, it is necessary to improve manufacturing processes and the design of plastic products. This requires closer collaboration across the entire value chain: from the plastics manufacturing industry, to processors, to public and private entities responsible for waste management. It is essential that key players in the industry work together to improve product design, thus facilitating the recycling of plastics and supporting innovations that can contribute to this process. By optimizing design for recycling and investing in new technologies, we can reduce the amount of plastic waste and turn waste into valuable resources for the circular economy. Packaging made from secondary raw material has already been implemented at the REWE Group level: some of the plastic bottles for detergents and cleaning agents from REWE and PENNY are being converted step by step into packaging consisting of 100% recycled material. Thus, the global goal of reaching 60% of used private label PET packaging to be made from recycled material in the next two years also applies to this category. 2023 SUSTAINABILITY REPORT PENNY ROMANIA 2023 132/256 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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