Specific to our company, in 2024 a total of 48 risks were identified, although 46 of them have a probability of occurrence of up to 10%. The risks were classified into 13 main categories: • Goods and services • Construction and expansion • Corporate Accounting • Contracts and law • Fraud and corruption • Finance & Insurance • IT & data • Antitrust and competition law • Logistics & Stores • Personnel and health • Market and customers • Data protection and privacy • Society and environment The risks identified with the highest probability of fulfilment in 2024 were related to information communicated to consumers on the price of products. The main resolution measures were based on improving the surveillance system in terms of display and presentation of products. For all the risks identified at the level of PENNY Romania in 2024, we have established 107 actions, 61 of which are ongoing actions. Among the actions being implemented, we mention: • Supplementing training on certain compliance and data protection topics • Organizing dialogue sessions with internal and external stakeholders on compliance issues • Extension of quality clauses in contractual relations with suppliers • Market research • Application of the '4 eyes' principle in tendering procedures • Continuous development of the internal control system Regarding the assessment of corruption risks, it can be said that 100% of the locations are subject to assessment, because the risk assessment is carried out at the level of operational structures and functions, but the employees who are part of these structures and occupy the respective functions carry out their activity throughout the PENNY Romania network. Corruption risk is defined as the request by an employee for benefits from business partners or other third parties for himself or others in connection with a business decision, taking advantage of his position, or the acceptance of benefits that, for example, because of their value, may give the impression that they influence him in his business decision. Following the risk analysis, this risk was assessed as insignificant in the case of our company's activity. However, we are implementing measures to ensure that this risk is not met: • Helpline for consultations or complaints • Anti-corruption training, including additional general training (including management), e-learning for employees with email addresses, annual mandatory courses and refreshers • Group Policy for Benefits Management (Potential Gifts) • Group policies on donations and sponsorship activities Climate and societal risks We are aware of the importance of the impact of climate change not only on our own operations, but also in our supply chain. Through the multitude of measures to reduce energy consumption, we implicitly address one of the most pressing transition risks, namely the increase in prices for energy supply from conventional sources. With the abandonment of methane gas power plants and the supplementation of electricity consumption through our extensive system of photovoltaic panels, the purchase of green energy, we reduce the negative financial impact caused by the increase in energy costs, caused both by the increase in prices, but also by the increase in consumption for cooling spaces during long periods of heat waves and heat waves. At the same time, we ensure that all our locations have comprehensive insurance policies that also cover extreme events, thus reducing the risk of financial losses caused by these acute climate risks. SUSTAINABILITY STEP-BY-STEP CORPORATE GOVERNANCE AND BUSINESS SUSTAINABLE ASSORTMENT ENERGY, CLIMATE AND RESOURCES EMPLOYEES AND SOCIETY INDEX GRI & SASB CORPORATE GOVERNANCE AND BUSINESS
RkJQdWJsaXNoZXIy MjUyMDg2Nw==