Sustainability Report 2023

Perspective outside-in Perspective inside-out RISKS OPPORTUNITIES NEGATIVE IMPACTS POSITIVE IMPACTS for the COMPANY on the ENVIRONMENT and SOCIETY FOOD WASTE MANAGEMENT 5 • Allocation of substantial financial resources to the management of food waste produced • Reputational damage in the event of generating a large amount of food waste • Decrease in the costs of managing the food waste generated • Reduction of financial losses caused by the loss of saleable products and their transformation into waste • New technological opportunities for meat processing for animal protein • Food waste leads to the emission of greenhouse gases during decomposition in landfills; Therefore, we apply different methods to reduce the amount of food waste, as well as to recover it if it is no longer intended for human consumption • Food waste and implicitly the generation of food waste, regardless of the quantity, presents a social problem by exacerbating shortages among the disadvantaged population • The generation of waste of any form brings a negative impact on the environment, requiring resource consumption for its recovery or disposal • Positive social impact for vulnerable categories of the population by decreasing food insecurity through collaboration with Food Banks and product donation • Reducing environmental impact and encouraging the circular economy by collaborating with food waste recoverees, as opposed to their disposal • Creating a positive impact on the value chain by educating consumers and partners on food waste EMPLOYEES AND SOCIETY PILLAR EMPLOYEE WELFARE 1 • Labour market volatility resulting from the ageing of the labor force at national level • Difficulty in identifying new talent resulting from the migration of the young population outside the country • Increasing company performance by ensuring a work environment that supports employee wellbeing • Raising awareness among internal stakeholders about diversity and equal opportunities for all • Team loyalty and business stability • Ensuring business stability results in the continuity and development of new partnerships for sustainability projects and initiatives • • Trained employees contribute to business success; Thus, we not only organize training courses for new employees, but we also invest in the professional development of existing employees, and in the improvement of leadership skills for those who occupy management positions • With more than 7,500 employees, any violation of human rights would have a very strong negative impact; therefore, we have policies in place to ensure that human rights are respected within the Group, PENNY Romania and our value chain • Working in the food retail sector can have negative health effects, such as physical exertion due to repetitive tasks, exposure to allergens, and mental stress due to customer demands and long working hours; In this regard, we allocate resources for the correct management of this material aspect • Through training and wellbeing programs, we provide opportunities for professional and personal development, while setting a higher standard in the industry, leading to benefits for the entire workforce • Increasing the quality of life, both directly for employees and by promoting a responsible employer model that can be adopted by other employers • We comply with local labor laws and implement programs to ensure adequate working conditions and mitigate potential negative effects • Providing equal opportunities for everyone, regardless of age, gender, nationality and other personal characteristics, while encouraging diversity • Employees who are part of a company that supports the well-being of employees are more open to getting involved in volunteering actions that bring a positive impact on society SUSTAINABILITY REPORT PENNY ROMANIA 2023 48/256 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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