Sustainability Report 2023

As part of our marketing and promotional activities, we focus on the use of recycled paper and eco-friendly leaflets, as well as other environmentally friendly printed media. In 2023, PENNY Romania’s total paper consumption at national level (including leaflets and marketing materials) was 4 627.45 tons, compared to 4 500 tons in 2022, which means a specific consumption of 15.12 kg/ m² in 2023 compared to 17.86 kg/m² in 2022. Of this total quantity, 1.55% is represented by paper consumption from the administrative headquarters. In 2022, we launched our in-house "paperless office" program, out of a desire to have a job that has a minimum number of paper-based processes and is based on digitized documents. Fortunately, digital transformation has allowed us to replace many of our paper-based processes with ones that are more economically, environmentally, and physically efficient. In this regard, in 2023, we reduced the average monthly consumption of paper used in our stores for printing documents by 3% and the average monthly consumption of paper used for printing documents in the headquarters by 24%. Today, even complex processes such as creating, signing, and managing contracts are simplified and digitized using a platform for contract management, or electronic signing of documents. We continued the measures to further reduce this amount by developing the PENNY flyer distribution service through the WhatsApp mobile application*. Thus, our customers can subscribe for free to easily and quickly receive all our promotions and offers directly on their phone, thus contributing to reducing paper consumption. In 2023, we continued to streamline the use of secondary packaging in logistics operations. After switching from manual stretch film to automatic stretch film the previous year, we managed to reduce packaging consumption by 28%. This change allowed us to use a thinner foil, only 4 microns and with a higher elongation capacity, which led to the use of a smaller amount compared to the manual method. This year, we recorded a consumption of 283 tons of automatic stretch film, 2% more than the previous year. Intensity of stretch foil consumption Tons/Mld. RON 2022 2023 PROGRESS 2023 vs. 2022 23.28 19.92 - 14.4% * For more information, please refer to https://www.penny.ro/whatsapp Material consumption 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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