Perspective outside-in Perspective inside-out RISKS OPPORTUNITIES NEGATIVE IMPACTS POSITIVE IMPACTS for the COMPANY on the ENVIRONMENT and SOCIETY ETHICS IN SUPPLY CHAIN PROCESSES 2 • Sustainable products risk not being appreciated by customers due to a lack of awareness of these kinds of products • Trust in the brand can be reduced if proper communication of the local product portfolio is not ensured, given that there is a growing trend to ensure such products and there is already a risk that current and potential customers are not properly informed about the efforts made • Increase the company's reputation and private labels • Trends in increasing sustainability traceability in supply chains can put financial pressure on suppliers, who may have to allocate more resources to meet these criteria (certifications, testing, increasing product quality, etc.). • Greenhouse gas emissions (emissions from the entire value chain) – emissions from the value chain account for the largest share of REWE Group's emissions; An analysis of sources and possibilities for reduction is in progress • Supporting respect for human rights and providing favorable working conditions in our supply chain, through the implementation of the Supplier Code of Conduct • Reducing environmental impact through the development of the sustainable product portfolio • Positive impact related to conducting business activities based on established principles of cooperation and operating standards • Food quality and safety (ensuring that private label products are safe for consumers) • Accessing a functional laboratory and applying thorough screening procedures to ensure that the products are of high quality and safe for consumption. • Supporting the marketing of quality, sustainably sourced products • Educating the consumer and suppliers, thereby raising the standard of the local supplier market • Employees can have a sense of contentment by associating with a sustainable company • Increasing the trust in our products ANIMAL WELFARE 3 • Damage to the company's image by not aligning with current trends in terms of paying increased attention from consumers to the treatment of animals • Decrease in competitiveness if the consumer is not interested enough in this aspect • Expanding the customer portfolio by developing the offer of certified products in the field of responsible treatment of farm animals • The transition to a more responsible form of animal husbandry can entail significant financial efforts for producers and can result in the destabilization of small businesses • Reduction of lower environmental impact in the case of non-intensive farming activities 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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