Sustainability Report 2023

This initiative also included open discussions on how the business environment and local authorities can collaborate to increase the presence of local products in stores across the country, thus contributing to supporting national production and balancing Romania's trade balance. Forums We held discussions with different Groups of suppliers to understand their specific needs and identify ways in which we can optimize the sourcing process and inventory management. At the same time, we showed interest in their development plans, with the aim of building synergies between our businesses that contribute to the common long-term success. Social media We quickly address concerns about issues of common interest and maintain effective communication with our stakeholders through various methods. We engage in continuous consultations with them, using a variety of channels to ensure an open and constructive dialogue. Focus Groups We have involved clients in the process of developing and launching new products and services, paying special attention to the feedback received from them. The results of the last Focus Group, which had sustainability as its central theme, together with a quantitative study conducted in 2022, reinforced the choice of material themes on which we focused. Internal workshops And in the reporting year, we conducted internal workshops either at the level of PENNY Romania or at the level of the REWE Group, on various sustainability topics. The main theme of the 2023 workshops was education and awareness for the departments involved in managing the data needed to conduct CSRD reporting. In addition, we organized a nationwide workshop with the departments concerned with the correct implementation of the Deposit-Return System. HOW DO WE INTERACT? Public consultations Although we did not launch the specific online questionnaire for this year's reporting, this method remains one of the main methods through which we collect feedback and recommendations from many stakeholders. We are also continuing market research to better understand the needs of stakeholders and to adjust our business strategy, thus creating synergies between the interests of external and internal stakeholders. Field visits Our commitment to local communities is strengthened by collaborating closely with our employees in the field. Through the visits we make together, we quickly identify the needs of the communities and develop effective solutions to support them. Regular interaction with store teams and management allows us to align with their goals and challenges. It is essential for us to meet and discuss with our partners, NGOs, with whom we conduct joint projects, to better understand the approaches, limitations and support they need. We are also interested in knowing the direct beneficiaries of our social responsibility projects, to assess the positive impact of our initiatives. Our purchasing team makes regular visits to local manufacturers and suppliers, ensuring that their needs are understood and that the purchasing process is aligned with our customers' requirements, aiming to provide the best shopping experience in PENNY stores. Round tables In 2023, PENNY in collaboration with the Bucharest Academy of Economic Studies (ASE Bucharest) launched the study "Strategies for balancing Romania's trade balance by stimulating and supporting national production", as part of the 3RO project. Within this partnership, we initiated an innovative concept of round tables, where the first discussions took place under the patronage of ASE Bucharest. The PENNY team, together with ASE, evaluated 100 opportunities for the development of local businesses in key sectors such as agriculture, packaging industry and cosmetics, to identify solutions for offering 100% Romanian products. Interviews And in 2023, we continued direct conversations with internal and external stakeholders, conducting a series of interviews with suppliers, partners, but also with colleagues in coordination positions within PENNY Romania. Interviews with external stakeholders were conducted in a one-to-one format, in which two or a maximum of three people from the same collaborator participated. In the case of internal stakeholders, they were Grouped according to the common elements of their work, considering how they might interact with sustainability topics. At the same time, in the case of situations in which there was not enough time to complete the discussion of all material aspects, the interviewees were asked to return by email with the individual completion of the feedback collection form. The following participated in this process: 4 people from two of the most important PENNY suppliers 6 people from the associations with which PENNY conducts sustainability projects 21 people in coordination positions within PENNY Thus, we aimed to stay close to our stakeholders and get their point of view regarding the potential positive and negative impacts of material aspects on them. By identifying these impacts, we take care to preserve and develop the positive impacts and reduce or eliminate the negative impacts. At the same time, during the interviews we were able to collect observations and proposals for improvement and certain risks or opportunities were pointed out depending on the experience and perception of each stakeholder. By conducting interviews, during constructive conversations and subsequent feedback collection, we were able to collect relevant observations from the interviewees and we were able to understand the perception of material aspects according to each stakeholder. The information and results of the discussions were used to update the risks, opportunities and impacts related to our material aspects and to provide us with updated views in the context of new market and legislative conditions. These results will be integrated into our risk management processes and future strategic planning. SUSTAINABILITY REPORT PENNY ROMANIA 2023 52/256 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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