Sustainability Report 2023

Thus, our products are developed both to meet the needs of our customers, but at the same time they also support local producers, bringing added value to the national economy. Our product portfolio in 2023 continued to support local producers, with 86% of total purchases being from local suppliers and 69% of food products coming from Romania. We have kept our commitment to offer our customers 100% Romanian meat, and 51.22% of our stores have been equipped with butcheries from local producers (who operate within a radius of 100 km from the store). We developed the product quality and safety auditing system, increasing the number of audits conducted with our suppliers in the case of private label products. At the same time, we continue to require all our private label suppliers to hold at least one certification recognized by the Global Food Safety Initiative (GFSI). Private label (also referred to as private label or private brand) is a brand owned by REWE (România) S.R.L. or by REWE Group, with intellectual property rights or licenses for products marked as "own brand". In PENNY Romania stores, our customers can find both private labels and exclusive brands. An exclusive brand can be a product for which the intellectual property rights have been assigned by the trademark owner to REWE (România) S.R.L., or non-branded products made at the request of PENNY. As we are aware of the PENNY consumer's preference for novelty and quality, we strive to periodically bring into our offer the latest products at competitive prices, which meet their needs and aspirations. Our private brands make up approximately 30% of our turnover, and the suppliers of these brands are contractually committed to adhering to our code of conduct. Most of our supply chain is managed by PENNY Romania, where more than 80% of the product selection, negotiation and procurement processes are managed at country level, with the aim of improving regional and local sourcing. The rest of the products in the Group's supply chain are managed by REWE Group, which is responsible for centralized sourcing. REWE Group provides buying and negotiation services to companies within the Group and creates private labels. This centralized delivery model significantly improves operational efficiency and allows the Group to exercise better control over the quality of its products and services, including sustainability aspects. 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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