Packaging Management We are committed to avoiding over-packaging for private label products and, where complete disposal is not possible, to minimize the need for packaging or redesign it, using more sustainable materials. This approach is in line with the 3R strategy – reduce, reuse and recycle. By reducing the amount of materials used for packaging, especially plastic, we contribute to decreasing the volume of waste that requires recycling, we reduce pollution of the environment and the oceans. In this regard, we have implemented the following measures: • All bags in our stores have been replaced with eco-friendly, 100% compostable alternatives made from plant-based materials; • Traditional plastic bags for fruits and vegetables have been exchanged for biodegradable versions, made of biopolymers and corn starch; • We have started using recycled PET packaging for bottled water and plan to expand the use of this type of packaging to other soft drinks; • We have added the icons "Consume, Collect Selectively" and "Consume, Rinse, Collect Selectively" on the packaging of our private label products, to motivate consumers to participate in the selective collection of packaging waste and to be aware of the responsibilities related to this process; • 49% of the packaging of private label products in the cosmetics and detergents categories in the permanent offer of 2024 have been replaced by more environmentally friendly options; • For our private label products, we have asked suppliers to obtain FSC (Forest Stewardship Council) certification for paper and cardboard, for both primary and secondary packaging. Our goal by the end of 2025 is for all primary and secondary paper and cardboard packaging to be made of FSC-certified materials. Paper and cardboard packaging 2023 2024 PROGRESS 2024/2023 Number of newly developed items with FSC-certified primary packaging 97 128 31.9% Number of newly developed items with FSC-certified secondary packaging 143 292 204.0% Low environmental impact packaging in cosmetics and detergents categories Single-use plastics are commonly used for plastic packaging, including items such as cosmetic containers and detergents, which are meant to be used only once before being disposed of or recycled. They are a major environmental problem, as they often end up in landfills or the environment, contributing to pollution. More efficient recycling of plastics can provide significant environmental and economic benefits. In order to achieve a level of recycling of plastics comparable to that of other materials, it is necessary to improve the manufacturing processes and design of plastic products. This requires closer collaboration across the entire value chain: from the plastics production industry, to processors, to public and private entities responsible for waste management. It is essential that key industry players work together to improve product design, thereby facilitating the recycling of plastics and supporting innovations that can contribute to this process. By optimizing design for recycling and investing in new technologies, we can reduce the amount of plastic waste and turn waste into valuable resources for the circular economy. At REWE Group level, packaging made from secondary raw materials has already been implemented: some of the plastic bottles for detergents and cleaning agents from REWE and PENNY are being transformed step by step into packaging consisting of 100% recycled material. Thus, the global goal of reaching 60% of the private label PET packaging used to be made from recycled material in the next two years also applies to this category. 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 136/276
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