Food Waste Management EXPLANATIONOF THE IMPACT Food waste is a topic with a significant impact on the entire retail industry, generating direct economic losses and affecting operational efficiency, while being a material issue from the point of view of sustainability. Food waste management is a range of challenges, from the allocation of financial and operational resources to the need for consumer education. In addition, food waste has implications for the entire supply chain and raises social responsibility issues, as many people face food insecurity. Food waste is one of the biggest challenges for our industry, both in terms of increasing sustainability performance, but also in terms of the need to optimize operational processes. OUR IMPACT AND PERFORMANCE IN FIGURES In 2023, we acted on two main fronts to reduce the generation of food waste: z Managing food waste within operations by applying AI-based forecasting and promoting products through accelerated sales cycles. z Redirecting surplus food through collaboration with food banks. At the same time, to increase the recovery rate of quantities already turned into waste, we focused on: z Expanding collaborations with biogas production facilities. z Identifying new recovery opportunities, such as processing for animal feed production. Results obtained: z 2 112* tons of food waste recovered in biogas production facilities z 87,92* tons of food waste from fruits and vegetables recovered by anaerobic fermentation and used in the production of biogas z 516 tons of food donated to food banks z Avoiding the generation of 2 209 tons of food waste by implementing the accelerated sale process z 4% reduction in share of food waste Share of food waste: Tons of food waste reported to food sales (tons/mill. Euros) 2020 2021 2022 2023 1.40 1.57 1.27 1.35 HOW WE CONTROL THE IMPACT In 2023, we directed our efforts in terms of food waste management towards expanding the partnerships that allow us to avoid the generation of this waste, but also towards identifying new optimal solutions to capitalize on the waste generated, thus avoiding its disposal. At the same time, we follow the evolution of waste quantities to identify the best management and reduction measures. Furthermore, we continue to maintain strict procedures for efficient planning and management of stocks in logistics centers and stores to reduce the generation of this category of waste. Moreover, we closely follow the expiry dates to introduce the products into the accelerated sales circuit, thus avoiding the generation of waste. The surplus of food is redirected to food banks, and if the products are no longer suitable for human consumption, we identified alternatives so that the food reaches landfills in the smallest possible proportions. * Data according to our contractors' statements SUSTAINABILITY REPORT PENNY ROMANIA 2023 180/256 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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