Interventions in the strategic area Our commitment remains to continue to reduce greenhouse gas emissions by 2030 compared to 2019, the reference year, and to achieve climate neutrality by 2040. To this end, and in the desire to bring value through our activities, we have implemented a series of measures according to our sustainability strategy. Thus, in 2023, we continued to pursue the same key performance indicators. The most relevant measures we want to highlight in 2023 are: z We made progress in the development of projects aimed at energy efficiency z We maintained and developed the specific partnerships that have helped us achieve our sustainability goals z We supported and improved digitalization and technical innovation systems, facilitating the efficient use of resources and the management of environmental aspects z We continued to build stores that respect the environment and are energy efficient, recognized by the BREEAM in Use certification z We extended the application of the nZEB (Nearly Zero-Energy Buildings) standard to as many locations as possible z Improved logistics sustainability by increasing the use of CHEP pallets to 49% of cargo volume and integrating IFCO crates into 25% of vegetable and fruit deliveries z We carefully monitored progress on landscaping green spaces to support biodiversity z We reduced the average monthly paper consumption in stores and at the headquarters, strengthening the digitization of processes and streamlining document management financial year 2023 we have updated the main areas, by including the area "Food waste management" previously analyzed in the chapter "Employees and Society" within the pillar "Energy, Climate and Resources". Energy efficiency issues remain of particular importance and have been integrated under the umbrella of our climate protection efforts, as energy consumption accounts for the largest part of our carbon footprint. Thus, for the financial year 2023, we have defined five main areas of action: "Climate protection", "Resource conservation", "Logistics and mobility", "Green buildings" and "Food waste management". The management of these areas remains the responsibility of the Working Committee on Energy, Climate and Resources, which coincides with the Energy Management team. The Sustainability Manager, who also holds the role of Energy Manager according to ISO 50001 standards, coordinates this operational committee. In addition to the committee members and the energy manager, all PENNY employees play an essential role. Through their actions in the workplace, they contribute to the success of the measures implemented and can suggest ideas for improvement. To facilitate communication, PENNY has established a central email address for employees: green@penny.ro and an app dedicated to employees, where they can ask questions or make suggestions. In 2023, we continued to implement specific measures to achieve our strategic ambitions and make a positive contribution to the environment. Among the most relevant are: z Continuing measures to reduce or even eliminate fluorinated gases in our activities (replacing refrigerants in stores and implementing a strategy to replace the refrigeration system in our oldest logistics center) z All new stores are equipped with cooling systems that use natural refrigerants z Expansion of the network of charging stations for electric cars. We offer EV charging facilities in our stores, reflecting our concern for customer convenience and environmental responsibility. z Further monitoring the expansion of the photovoltaic panel network, including at the level of logistics centers. z Improvement and use of the smart system for remote monitoring of energy consumption. z Continuous optimization of our operational processes to ensure energy efficiency and resource conservation, basing our decisions on studies and quantitative data. Interventions in the operational area We continue to maintain and develop operational processes that significantly contribute to reducing the negative impact on the environment, social and economic aspects. As part of our strategy, in the pillar "Energy, Climate and Resources", for the 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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