Code of Conduct * The lower number compared to 2023 (158 units) and the related percentages are explained by the fact that in 2024 Romania was not classified as a risk country, and most of our private-label suppliers are from Romania. As part of its sustainability strategy and legal compliance, the REWE Group has developed a risk assessment system throughout its supply chain, following the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG). Thus, the risk management process within supply chains and in its own business area is based on holistic and continuous risk management based on human rights and environmental diligence. At Group level, we align our business operations with internationally applicable standards and guidelines in the field of human rights and working conditions. These include the United Nations Universal Declaration of Human Rights, as well as the International Labor Organization's (ILO) conventions and recommendations on social and labor standards. Each of the Group's supply chains is assessed to identify potential negative human rights impacts, both in its own activities and in the supply chain. The results of these risk analyses are constantly integrated into the REWE Group's business decisions, influencing internal strategies, supplier selection and management. Among the areas considered particularly sensitive from the perspective of human rights and working conditions, the REWE Group identified: child and forced labor, income levels, working hours, protection against discrimination, the right to freedom of association, and health and safety at work. Following the evaluations carried out for PENNY Romania, it was found that, out of the 197 production units involved in the manufacture of national private label products, 12* units are located in countries with a social risk. They represent 6.09% of the total production sites for national private label products . We expect our suppliers to operate in a transparent and ethical manner, ensuring that their products are manufactured under fair working conditions and with minimal environmental impact. Therefore, in 2022, we introduced a Code of Conduct for Suppliers, which represents the actions of the entire REWE Group to enhance sustainable collaboration with suppliers by encouraging ethical, properly carried out practices with professionalism, which include respect for human rights, business ethics and environmental protection. We expect our suppliers to comply with all applicable laws and regulations in the countries where they operate, to treat their employees fairly and respectfully, and to provide a safe and healthy working environment. In addition, we expect suppliers to operate in accordance with applicable legislation, regulations and environmental criteria and to take responsibility for the environmental impact of their operations. We are aware that at different stages of the supply chain, from the cultivation and processing of raw materials to private label products, there is a significant risk of non-compliance with social and labor standards. To combat these risks, we maintain a close collaboration with our suppliers. The process of establishing and continuously improving social and environmental standards, as well as specific practices along the supply chain, is a complex and long-term approach, but essential to ensure our customers have access to sustainable products. By responsible supply chain management, we ensure that: • We source responsibly, investing locally for supplier development, • We respect and promote human rights and ensure adequate working conditions for our employees, • We inform our employees about the specific requirements in Romania, • We educate customers about the country of origin of the products, nutritional information and ingredients of the food we offer MESSAGE FROM THE GENERAL MANAGEMENT SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES SUSTAINABILITY REPORT PENNY ROMANIA 2024 120/276
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