Sustainability Report 2023

Perspective outside-in Perspective inside-out RISKS OPPORTUNITIES NEGATIVE IMPACTS POSITIVE IMPACTS for the COMPANY on the ENVIRONMENT and SOCIETY PACKAGING MANAGEMENT 4 • Allocating substantial resources to optimize packaging management • Although sustainable packaging solutions have evolved significantly in recent years, there are still limitations for sustainable packaging production technologies that are aligned with food safety and quality standards • Aligning with growing demand trends for sustainably packaged products • Because plastic does not biodegrade, it contaminates soil and waterways; We are gradually changing the materials we use for our private labels to mitigate this negative impact • Trends to increase the sustainability of packaging (quantity reduction, integration of recycled raw materials, substitution of materials) can pose a challenge for manufacturers to reconcile these trends with food safety standards • Reducing environmental impact by bringing more sustainable packaging to market • The implementation of circular economy elements leads to the conservation of the planet's limited resources and the reduction of the amount of waste • Reducing environmental pollution, having a positive effect on the health of communities PROMOTING HEALTHY NUTRITION 5 • Damage to the company's image by not aligning with the general increase in demand for products that promote healthy nutrition • Products in this category generally have higher prices and may be unattractive to certain Groups of consumers • Expanding the customer portfolio by developing the range of certified products in the bio or special diets field • Entering new partnerships to promote balanced nutrition (such as the new partnership with the Romanian Football Federation to supply the national team with fresh produce) • Exceeding financial possibilities for certain consumers • Promoting a healthy lifestyle, which leads to an increase in the quality of life of consumers • Providing nutrition options at fair prices for consumers with a more sensitive financial situation • Reducing environmental impact by promoting organic farming ENERGY, CLIMATE AND RESOURCES PILLAR CLIMATE PROTECTION 1 • Increase in operational costs caused by the increase in conventional energy prices if investments in reducing consumption are not continued • Allocating significant resources for the continuation of operational investments is reducing consumption • Increased efforts to reduce the carbon footprint can lead to the allocation of significant financial and operational resources, especially for the collection of data on the supply chain • By reducing energy consumption and carbon footprint, savings are achieved in terms of operational costs • Supporting long-term partnerships by adding value to the suppliers' value chain by decreasing the carbon footprint as a customer/supplier • The consumption of non-renewable energy produces greenhouse gas emissions that contribute to climate change and air pollution; Actions to reduce negative impacts include, but are not limited to initiatives to reduce energy consumption, purchase and production of renewable energy • Improving climate quality through the multitude of decarbonisation measures implemented and the gradual reduction of the carbon footprint • Contributing to increasing the share of renewable energy in the national grid • Improving quality of life by ensuring a cleaner environment • Promoting the mindset to other companies to support the sustainable development of activities • Supporting new business sectors in specific areas such as the production and installation of photovoltaic panels • Employees can have a sense of contentment by associating with a sustainable company, which brings positive impacts for the environment SUSTAINABILITY REPORT PENNY ROMANIA 2023 46/256 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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