2024 Sustainability Report

Animal Welfare EXPLANATION OF THE IMPACT Concerns about living conditions and the treatment of farm animals are increasingly common among consumers. In many cases, farms are heavily industrialized and focus on increasing productivity and efficiency in order to maximize profits, often neglecting the needs and welfare of animals. Industrial farms house a large number of animals in confined spaces, generating a significant amount of liquid and solid waste, as well as polluting emissions. To prevent animals from being injured due to stress and overcrowding, painful mutilations are practiced, such as decreeing horns in cattle or cutting off beaks in birds. We believe that sustainable profit is based on animal health. Therefore, a responsible approach to the treatment of farm animals is a key principle that our company takes into account when establishing partnerships with suppliers. We are committed to working with farms that prioritize animal welfare and adopt ethical practices in raising and caring for them. HOW WE CONTROL THE IMPACT We conduct audits to verify compliance with our internal requirements before entering into any partnerships with suppliers. Suppliers must present IFS (International Featured Standards) certification and demonstrate adherence to and implementation of the highest standards in terms of quality, food safety and animal welfare. OUR IMPACT AND PERFORMANCE IN FIGURES We continue the process of analyzing risks and setting clear minimum requirements to enable our suppliers to implement the company's strategy. In this way, we aim to ensure that the entire portfolio of private label products in the meat, dairy and egg categories complies with a set of well-defined animal welfare standards, and suppliers are constantly monitored to ensure compliance with these standards. Animal products, such as meat, milk or eggs, are essential components of the contemporary diet, and animal husbandry is a vital segment of agricultural production. In order to achieve the set objectives, we have identified that major challenges may come from external factors that cannot be directly controlled. 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 130/276

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