2021-2023 commitments

Promoting Good Health Through Food

In all countries develop food alternatives such as vegan, lactose-free and/or gluten-free solutions that are aimed at consumers with specific dietary needs/preferences.

Achieved. In 2023, the Group Companies had 1,520 gluten-free products (62 of which were new), 87 lactose-free (6 of which were new), and 195 for vegans/vegetarians (24 of which were new) on sale. There are no products for vegans/vegetarians in Colombia.

Ensure that products targeted for children have a higher nutritional profile than the benchmark (or best in class), according to the country of operation. In Colombia, ensure that products targeted for children have a higher nutritional profile than this benchmark until 2025.

Partially achieved. At the time of product launch, many may have a nutritional profile considered by the Companies to be better than the benchmark (or best in class) and, for reasons of competitive dynamics, progressively (in the same year or in subsequent years) adjusted by competitors.
In 2023:

• Private Brand Poland, 59% of the products with an established benchmark had a higher profile than the market, 38% had the same profile, and 3% had a worse profile. Out of the 109 considered products, 51 products had no benchmark on the market for comparison.
• Private Brand Portugal, out of the 50 products on sale most consumed by children* with a benchmark established in Pingo Doce and Amanhecer, 78% had similar profiles to the benchmark, and 22% had a better profile. One product had no benchmark due to its innovative nature on the market (launched in 2023).
• Private Brand Colombia, it was not possible to establish benchmarks.

In Portugal and in Poland, ensure the use of voluntary “Without GMO” labelling for 75% of Private Brand food references containing mostly (>50%/net weight) potentially modified ingredients (soy and corn), thus helping consumers in their decision-making process (55% year 1, 65% year 2, 75% year 3).

Not achieved.

• Private Brand Poland: 100% (9 p.p. more versus 2022) of 29 eligible products;
• Private Brand Portugal: 30% of the 44 eligible products had this symbol;
• the total number of eligible products was 73, with 42 bearing the GMO-free symbol, i.e., 58%.

In Portugal and Poland, continue to develop programmes promoting the Mediterranean diet principles and healthy nutritional habits, based on recommendations by local experts, and raise consumer awareness on reading food labels.

Achieved. In both countries, the adoption of the Nutri-Score symbol in 2021 was a decision aimed at offering consumers more intuitive information regarding nutritional profiles of pre-packaged Private Brand products. In 2023, Biedronka extended the Nutri-Score to more 152 products among the 20 categories selected for classification, increasing the total number of items classified according to this system for assessing the nutritional profile of products to 405 (+60% compared to 2022). At the end of the year, products with this symbol totalled 591 in Pingo Doce (+96% vs. 2022) and 86 in Recheio (+760% vs. 2022).
In Portugal, the partnership with CUF to promote health through food was maintained with the “Feeding Health” programme, which raises awareness of the role that a diversified and balanced diet can play in health, and encourages consumers to select the foods that best suit their needs and lifestyle, and the publication of Sabe Bem magazine (average bimonthly circulation of 100,000 copies).
Biedronka maintained its Czas Na... magazine (containing recipes, it is dedicated to nutrition and healthier lifestyles), the Dada magazine (aimed at parents, on nutrition and healthy lifestyles, it results from the collaboration between Instytut Matki i Dziecka [Mother and Child Institute] and Biedronka) and the publication of articles in external media such as social networks. The Gang Mocniaków educational and loyalty campaign was launched, aiming to alert younger generations to the “superpowers” of food, emphasising fresh products and the chain’s exclusive brands. As part of this campaign, 33 educational materials were produced, including 6 children’s books.

In Portugal and in Poland, ensure that 90% of Private Brand products do not contain, in their direct ingredients, artificial colorants until 2023.

Achieved.
Portugal Private Brand: 100%.
Poland Private Brand: 98%.
Colombia Private Brand: 95%.
Perishables Portugal:

• raw materials used in central kitchens: 100%.
• raw materials used in restaurants, takeaway and sushi: 100%.
• bakery sold under the Pingo Doce label: 100%.
• manufacturing raw materials (store and factory): 100%.
• pastries sold under the Pingo Doce label: 100%.

In Portugal and in Poland, ensure that 90% of Private Brand products do not contain, in their direct ingredients, artificial flavour enhancers until 2023.

Achieved.
Portugal Private Brand: 100%.
Poland Private Brand: 97%.
Colombia Private Brand: 96%.
Perishables Portugal:

• raw materials used in central kitchens: 100%;
• raw materials used in restaurants, takeaways and sushi: 100%;
• bakery sold under the Pingo Doce label: 100%;
• manufacturing raw materials (store and factory): 100%;
• pastries sold under the Pingo Doce label: 100%.

• raw materials bakery: 100%;
• meat: 100%;
• fruit and vegetables: 100%;
• fish: 100%.

In Portugal and in Poland, position the Companies as healthy ageing promoters, through democratising the access to Private Brand food products that meet internationally recognised nutritional and dietary needs for the +50 age groups.

Achieved. In 2023, specific products were launched for these age groups, namely in the Go Active range in Poland and Portugal, whose target audiences include senior citizens. 39 Go Active products in Poland and 6 in Portugal were launched.

In Hebe, in the scope of promoting health through cosmetic products’ formulation, develop Private Brand alternatives without ingredients of animal origin, aimed at consumers with specific needs/preferences.

Achieved. In 2023, 49 products without animal ingredients were launched, making them suitable for vegans. The total of this range amounted to 89 references (+122.5% vs 2022) in compliance with the European Regulation (EU) for Cosmetics No. 1223/2009 (product safety and labelling) as well as European Regulation (EU) No. 655/2013 for the common criteria for claims on cosmetic products.

In Hebe, in the scope of promoting health through cosmetic products’ formulation, ensure that Hebe Naturals products have at least 90% natural ingredients in their composition (according to ISO 16128).

Achieved. Out of a total of 13 references available in the Hebe Naturals range in 2023, 100% had ≥90% natural ingredients on their composition (in line with ISO 16128). Additionally, the production of these items follows the ISO 22716 standard on Good Manufacturing Practices for Cosmetics. In 2023, seven new products hit the market.

Respecting the Environment

Increase the number of locations with environmental certification to at least 60% of the total distribution centres and industrial units* by 2023.
* Fresh dough factory, central kitchens, soup factory and Terra Alegre dairy factory.

Achieved. In 2023, 70% of all distribution centres and production units had environmental certification:

To ensure that environmental management procedures are followed and opportunities for improvement are identified, we conduct audits to stores, warehouses, distribution centres and other operational units. In 2023, 8,364 environmental audits were carried out (6,860 at Biedronka, 1,110 at Ara, 352 at Pingo Doce, 41 at Recheio, 10 at JMA and 1 at Hebe), 9.5% more than in 2022. The average score was 93%, the same as in 2022. Corrective actions are defined for all cases in which the score does not reach 100%.

Reduce the carbon footprint (scopes 1 and 2) by at least 40% by 2023 (per 1,000 euros of sales), compared to 2017.

Achieved. In 2023, the reduction in the Group’s carbon footprint per 1,000 euros of sales compared to 2017 was 60%.

Reduce energy consumption by 10% (per 1,000 euros of sales) by 2023, compared to 2017.

Achieved. In 2023, the reduction in energy consumption per 1,000 euros of sales compared to 2017 was 36%.

Reduce water withdrawal in Distribution activities by 10% by 2023 (in megalitres per million euros of sales), compared to 2017.

Achieved. In 2023, the volume of water withdrawn in Distribution activities per million euros of sales was 38% less compared to 2017.

Limit food waste to 16.1 kg for each tonne of food sold by 2023.

Not achieved. In 2023, food waste in the Group grew to 18.5 kg for every tonne of food sold, 15% above the defined limit.

Ensure that at least 12% of the packaging in Private Brand products are included in the Ecodesign project by 2023, comparing to the 2020 assortment.

Achieved. In 2023, 737 packaging ecodesign projects for Private Brand products were completed. Since 2011, 1,893 packages were developed according to ecodesign strategies, which corresponds to 30% of the assortment in 2020.

Ensure an annual waste recovery rate of at least 85% of the volume of waste generated by 2023.

Achieved. In 2023, waste recovery rate was 85.4%, that is, 0.4 p.p. above the defined target for the three-year period 2021-2023. In 2021 and 2022, this rate was 85.8% and 85.5%, respectively.

Support at least one nature conservation project in each of the countries where we have operations and disclose its results annually.

Achieved. In total, the Group supported 14 nature conservation projects in 2023 (8 in Portugal, 2 in Colombia and 4 in Poland).

Reduce by 5% by 2023, the specific consumption of plastic (measured in tonnes of plastic packaging per million euros of turnover), compared to 2018.

Achieved. In 2023, there was a 33% reduction in the specific consumption of plastic (t/million euros in sales) compared to 2018.

Increase the content of recycled plastic to 10% of the total amount of plastic packaging under our responsibility (Private Brand, service packaging, check-out bags and wrapping film) by 2023.

Achieved. In 2023, the amount of recycled plastic in our directly managed packaging was 10.7%, an increase of 5.3 p.p. compared to 2020.

Reduce carbon emissions resulting from transporting goods to stores by 5% (in tonnes of CO₂e per thousand pallets transported), by 2023, compared to 2020.

Not achieved. In 2023, a total of 5.38 tonnes of carbon emissions per thousand pallets were recorded in the transport of goods between distribution centres and stores, a reduction of 1.0% compared to 2020.

Sourcing Responsibly

Guarantee that at least 80% of the Jerónimo Martins Group’s purchases of food products are sourced from local suppliers.

Achieved. In 2023, 91% of the food products sold by the Group were purchased from local suppliers.

Increase sales of Private Brand and perishable products and/or packaging with sustainability certification to at least 7% of the total sales of these product categories by 2023.

Achieved. In 2023, sales of Private Brand and perishable products and/or packaging with sustainability certification accounted for 13.4% of total sales.

Carry out environmental audits to at least 20% of Private Brand and perishable suppliers, with a purchase volume greater than 1.1 million euros in the 2021-2023 period.

Achieved. In 2023, 85 Private Brand and perishables suppliers were audited. Since 2021, the audited suppliers accounted for 21% of Private Brand and perishable suppliers with a purchase volume greater than 1.1 million euros.

Contribute to The Consumer Goods Forum’s (CGF) Forest Positive Coalition of Action commitments. Within the scope of our Private Brand and perishable products and for each of the commodities considered, the following goals were defined:

• Palm oil: continue to ensure 100% RSPO certification in Portugal and Poland. In Colombia, ensure compliance with the “Acuerdo de Voluntades para la Deforestación Cero en la Cadena de Palma en Colombia” (Voluntary Agreement for Zero Deforestation in the Colombian Palm Oil Chain) from the Colombian government.
• Soy: reduce by 50% soy from unknown origins to 16% of total direct and indirect soy. Reduce soy from countries with risk of deforestation to 25% and/or ensure it is sustainably sourced (e.g., RTRS or ProTerra certified or other multi-stakeholder schemes that promote the preservation of ecosystems in the main production areas of this ingredient).
• Beef: reduce unknown origins to 2.5% of total beef purchases. If sourcing from Brazil, engage with suppliers to ensure the adoption of deforestation policies and actions.
• Paper and timber: work with suppliers to achieve sustainable certification (e.g., FSC^® or PEFC) in 80% of virgin fibres used in products and in 70% of virgin fibres used in our packaging.

Partially achieved. In 2023, the Group had the following performance in its Private Brands and perishables:

• Palm oil: the Companies in Portugal and Poland maintained the RSPO certification for 100% of the palm oil used. In Colombia, Ara traced the origin of 91% of the palm oil to the farm where it was produced. The palm oil in our products comes from three of the four production areas in the country and 28 (out of 68) processing plants operating in Colombia. Only 0.1% deforestation detected by public bodies in 2019 was associated to palm oil. In Ara, over 90% of the palm oil used in Private Brand and perishable products was produced in Colombia, and 13% was RSPO certified. In 2023, 98% of the palm oil in Ara’s Private Brand and perishables not produced in Colombia had RSPO certification.
• Soy: soy (direct and indirect) sourced from unknown origin represented 7% (7 p.p. less than in 2022) of the total. More than 70% of the total soy from known origins comes from countries with risk of deforestation (+15 p.p. compared to 2022), of which 10% had sustainability certification (e.g., RTRS). In a partnership with Nestlé and IPAM (Amazon Environmental Research Institute), we kept our support to the project to develop a governance model for low-carbon agricultural production and the conservation of natural ecosystems among smallholder farmers and indigenous populations in the state of Mato Grosso (Brazil).
• Beef: it was possible to map all the beef used to at least the country of origin. Based on this work, it was possible to confirm that 0.6% of the total originated from Brazil. Despite the reduced exposure to this ingredient, we maintain our participation in the beef working group under the CGF’s Forest Positive Coalition of Action.
• Paper and timber: 90% of the virgin fibres used in our Private Brand products had sustainability certification (FSC^® or PEFC). In the case of packaging, the proportion reaches 74%.

Ensure the annual application of the Sustainable Agriculture Handbook in at least 70 new farms in Portugal and Poland, ensuring a minimum average sustainability index of 3.7 points (on a scale from 1 to 5, in which 5 is the maximum score) for farms with at least two assessments in the 2021-2023 period.

Achieved. In 2023, the Sustainable Agriculture Handbook methodology was applied in 28 new farms in Portugal, therefore reaching a total of 72 new locations in the 2021-2023 period. Regarding farms with two or more assessments, the average sustainability index was 3.7 (on a scale of 1 to 5, where 5 is the maximum score).

Supporting Surrounding Communities

Monitor and disclose at least 70% (in value) of the social impacts resulting from the support offered by all Group Companies, according to the Business for Societal Impact (B4SI) model.

Achieved. In 2023 it was possible to monitor around 70% of the Group’s direct support (eligible according to the internal methodology based on the B4SI criteria and excluding social internships). The monitoring and dissemination of the impacts resulting from the support offered by the Group, according to this model, is published in this document –subchapter 5. “Supporting Surrounding Communities”, section 5.2. “Managing the Support Policy for Surrounding Communities” – and on the corporate website.

Strengthen the involvement in social projects in all countries, targeted to children, youngsters and elderly people from vulnerable environments, focusing on aspects of health and healthy eating, aiming to directly impact one million people until 2023.

Partially achieved. In 2023, based on the B4SI methodology, it is estimated that the Group Companies’ (essentially focused on responding to social emergencies and social welfare) have supported around more than 2.2 million people from vulnerable backgrounds, including projects focused on issues such as health and healthy eating. We estimate that we had reached around 4.5 million people in 2022 and around 2.4 million people in 2021.

In Poland, expand the food donations programme for local non-governmental organisations to 70% of stores.

Achieved. Stores with food donations procedures to local institutions totalled 2,701 by the end of 2023. This figure represented more than 75% of the Company’s stores.

Promote the integration of personal and professional life and a flexible and healthy work environment across the Group, by implementing the flexibility policy and providing mental health services to more than 90% of employees. Additionally, the Group aims to achieve a wellbeing index and an engagement index* equal to or greater than 75%.
* Global wellbeing index and global engagement index: measured through the group-wide employee satisfaction survey, considering the result of the “wellbeing” and “engagement” sections, respectively.

Partially achieved. In 2021, the Group’s Managing Committee approved a Flexible Working Policy that includes flexible working hours and remote working, which was officially implemented in all the Group’s Companies in 2023.
100% of our employees have access to mental health services. In Portugal, through the Mental Health Programme, aimed at employees and their children, we provide access to free psychology consultations. In Poland, employees have access to relevant digital content through the Spokojna Głowa (Calm Your Mind) programme and psychology consultations through the Razem Zadbajmy o Zdrowie (Let’s Take Care of Health Together) programme at Biedronka and a wellness platform (Mindgram) with online psychology consultations at Hebe. In Colombia, digital content and training in the area of mental health are available, as well as mental health helplines.
The Group-wide employee satisfaction survey was conducted in 2022, and we did not succeed to reach 75% in the wellbeing index and in the engagement index. In 2023, results were analysed at Group, Company and team levels, and action plans were drawn upon and implemented at all three levels.

Reinforce the support given to employees in situations of vulnerability due to social and/or family emergencies across the Group, ensuring that more than 90% of emergency requests have a response and, depending on their nature, an action plan.

Achieved. In Portugal and Poland, 100% of requests for social and/or family emergencies are answered through the Employee Assistance Services. In Colombia, although there is no formal social support programme, all the requests addressed to the Company were answered and, depending on the case, an action plan was structured. Through the Social Emergency Fund programme in Portugal and Możesz Liczyć (You Can Count on Biedronka) in Poland, as well as occasional support given in Colombia, 31,108 employees in vulnerable situations were supported over the 2021-2023 cycle.

Promote the respect for human and labour rights across the Group, through regular awareness-raising and communication actions, ensuring:

1. a training module on Code of Conduct for all employees;
2. a global training programme on human and labour rights for employees in management positions;
3. that 100% of new employees receive the Code of Conduct and the Anti-Corruption Policy, and that they sign their acknowledgement.

Partially achieved.
i and ii. The training module on the Code of Conduct and the global training programme on human and labour rights are under development.
iii. By 2023, 100% of employees joining the Group had received the Code of Conduct and signed its acknowledgement; 94% of new employees have received and signed an acknowledgement of the Anti-Corruption Policy, due to the fact that, in Colombia, the process includes training, which can take place in the first two months of the contract, which has not been completed by everyone.

Prepare the Group for the future of work in the age of digitalization, ensuring the development of employees and leaders, through:

1. a minimum number of 50 hours/employee of training, which includes training in leadership programmes and training courses carried out through the Group’s self-development platform;
2. the creation of development plans for 80% of the managers.

Achieved.

1. In 2023 we exceeded the defined commitment, achieving an average of 55 hours of training per employee, in a hybrid training model consisting of face-to-face training and e-learning via EducAction platform.
2. Personal development plans for managers were prepared in 2022 and implemented in 2023. Regarding the 2023 performance cycle, 89% of eligible employees have created their plan.

Create opportunities for people at a disadvantage in accessing the labour market, namely people with disabilities, ensuring that more than 2% of people hired in Portugal have a disability or an incapacity.

Achieved. At the end of 2023, 2.2% of employees in Portugal had a disability and/or an impairment, reflecting the work carried out through Incluir Programme and Centres in creating training and employment opportunities for people at a disadvantage accessing the labour market. Specifically, the Group’s holding company had 3.6% of employees with a disability and/or an impairment and most Companies exceeded the legally required quota, according to their size. We would also point out that the Group’s holding company, Recheio and Pingo Doce have been awarded the Inclusive Employer Brand seal by the Institute for Employment and Vocational Training (in the case of the holding company, the level of excellence was achieved).

Strengthen the promotion of gender equality across the Group through:

1. improving methodologies for determining and monitoring disparities between men and women;
2. reducing wage inequality between men and women, measured by the gender pay ratio* and based on the year 2021 (97.6%), and also reporting this indicator for the most relevant Companies of the Group in terms of the number of employees (Biedronka, Pingo Doce and Ara);
3. training at least 50% of managers in relevant content such as unconscious bias.

Partially achieved.

1. Monitoring the main gender indicators and improving the respective reporting methodologies are concerns that have remained constant throughout the 2021-2023 cycle. A global internal diagnosis across all people management practices from the gender equality perspective started in 2023, to better identify potential imbalances and act on them.
2. The global gender pay ratio continued to increase, reaching 98.5% at the end of 2023 (an increase of 0.9 p.p. compared to 2021), thus moving closer to full equality.
3. The training module on unconscious bias is under development.

Strengthen workplace safety across the Group to prevent fatalities and accidents at work, reaching, by 2023 and globally, a reduction in the frequency index* to 12.50 and the severity index** to 0.30, based respectively on 13.26 and 0.31 in 2021.
* Number of accidents with loss of working days/total hours worked
** Number of days lost/total hours worked

Not achieved. The Group achieved a frequency index of 13.05 in 2023, which corresponds to a decrease of 0.21 compared to 2021. In 2023 there were 2.4% fewer accidents at work with lost days in Portugal, thanks to the Companies’ commitment to initiatives that promote safe working conditions and create an environment of prevention and care. However, there was a significant increase in this type of accidents in Poland and Colombia.
The severity index was 0.32, with the number of loss of working days increasing in all countries. We therefore remain committed to analysing incidents and establishing concrete actions so that this severity can also decrease.

Foster a culture of recognition across the Group, ensuring:

1. salaries’ competitiveness through annual internal, and external diagnostics every two years;
2. at minimum, 85% of the Group’s employees benefit from at least one recognition programme.

Achieved.

1. Throughout the 2021-2023 cycle, we continuously assessed the level of competitiveness of the wage policies in alignment with the benchmark in each country and for each Company, as well as ensured that internal equity levels were monitored on a regular basis.
2. By the end of 2023, 89% of our employees were covered by at least one recognition measure in the form of an annual performance bonus and/or incentive scheme.