Indicators reporting according to the Global Reporting Initiative Standards

2-1

Organizational details

Jerónimo Martins, SGPS, S.A.
Rua Actor António Silva n. º 7, 1649-033 Lisboa, Portugal.

The Jerónimo Martins Group

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2-2

Entities included in the organization’s sustainability reporting

The Jerónimo Martins Group

Financial statements

Part I – Information on Shareholder Structure, Organization and Corporate Governance

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2-3

Reporting period, frequency and contact point

This Jerónimo Martins Group’s Annual Report covers the activities carried out between 1 January and 31 December 2023. The Corporate Responsibility Report (included in the Annual Report) has an annual periodicity.

Contact point: comunicacao@jeronimo-martins.com

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2-4

Restatements of information

• The 2022 HACCP performance value for distribution centres in Portugal was 93%, which corresponds to the average performance of distribution centres, central kitchens and internal canteens. Therefore, in the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 2. “Promoting good health through food”, section 2.3. “Food quality and safety” and subsection 2.3.2. “Audits”, where it is read “95%” it should be read “93%”. This value is corrected and duly noted in the current report. The annual variation between 2022-2021 is, therefore, +1 p.p. and not +3 p.p., as reported in 2022.
• The value corresponding to Level II withdrawals of Private Brands in Portugal, in 2021, was corrected due to the inclusion of non-food products withdrawal in that year. This indicator refers exclusively to food products, which is why, in the 2021 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 2. “Promoting good health through food”, section 2.3. “Food quality and safety” and subsection 2.3.4. “Food recalls and withdrawals”, where it is read.
• “74” recalls, it should be read “68” recalls, impacting the total number of level II incidents (“237” and not “243”), the total number of incidents (“309” and not “315”) and its variation from 2020 (“10%” and not “6%”). Thus, where it is read “In 2021, a total of 315 incidents were recorded and led to the removal of food products, a decrease of 6% compared to 2020”, it should be read “In 2021, a total of 309 incidents were recorded and led to the removal of food products, a decrease of 10% compared to 2020”. Likewise, in the 2022 Annual Report, these changes are reflected, considering annual comparisons. In addition, compared to 2022, in the perishables area in Poland, a level II withdrawal should be added – regarding the total level II withdrawals. Where it is read “261” withdrawals it should be read “262”. Thus, in chapter 5 “Corporate responsibility in value creation”, subchapter 2. “Promoting good health through food”, section 2.3. “Food quality and safety” and subsection 2.3.4. “Food recalls and withdrawals”, where it is read “In 2022, a total of 364 incidents that prompted the withdrawal of food products was recorded, 15.6% more than in 2021.”, it should be read “In 2022, a total of 365 incidents that prompted the withdrawal of food products was recorded, 18.1% more than in 2021”. These values have been corrected and dully noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 4. “Sourcing responsibly”, section 4.2. “Relationship with suppliers”, subsection 4.2.1. “Selection and monitoring of suppliers”, regarding “Food safety and quality audits of perishables and Private Brand suppliers”, the number of audits on perishables in Poland has been revised due to the integration of ad-hoc audits and inspections. As such, where it is read “218” audits, it should be read “1,480” audits. For the sake of reporting consistency, this value has also been revised for 2021 – where it is read “299” it should be read “1,239” audits. Likewise, the 2022-2021 variation is “+20%” and not “-27%” as reported. The value for 2022 has been corrected and is dully noted in the current report.
• The values for social internships reported in the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 5. “Supporting surrounding communities”, section 5.2. “Managing the policy on supporting surrounding communities”, have been revised: where it is read “Throughout 2022, 417 employees in Portugal and Poland took part in professional on-the-job training programmes. Around 8.7 million hours of training were completed, an amount equivalent to more than 2.3 million euros” it should be read “Throughout 2022, 322 employees in Portugal and Poland took part in professional on-the-job training programmes. More than 95,000 hours of training were completed, an amount equivalent to more than 2.3 million euros”.
• In 2022 and 2021, the 2021-2023 commitment “In Poland, expand the food donations programme for local non-governmental organizations to 70% of stores”, related to the pillar “Supporting surrounding communities”, reported the number of stores that were donating to charities. However, this value was erroneously described as referring only to stores that had an established protocol with these institutions and not to those that had donation procedures, regardless of the existence of a protocol. Thus, in the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 7. “2021-2023 Commitments”, in the “Supporting surrounding communities” area, where it reads “The number of stores with a protocol established with local institutions to deliver food totalled 2,551 at the end of 2022. This value represents 75% of the Company’s stores”, it should read “The number of stores with established procedures to donate food to local institutions totalled 2,551 at the end of 2022. This value represents 75% of the Company’s stores”. In the 2021 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 7. “2021-2023 Commitments”, in the “Supporting surrounding communities” area, the final value calculated and described in subchapter 5. “Supporting surrounding communities” should be added to the progress report on the commitments. Where it reads “The number of stores with a protocol established with local institutions to deliver food totalled 3,000 at the end of 2021. This value represents 71% of the Company’s stores and an 18% growth compared to 2020”, it should read “The number of stores with established procedures to deliver food to local institutions totalled 2,297 at the end of 2021. This value represents 71% of the Company’s stores and an 18% growth compared to 2020”.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 4. “Sourcing responsibly”, section 4.3 “Promotion of more sustainable production practices”, subsection 4.3.1. “Fighting deforestation”, in the table referring to the main agricultural commodities at risk of deforestation in Private Brand and perishables, the total quantity (tonnes) of the commodities “Paper and timber” and “Beef” was revised as a result of opportunities for improvement detected in the previous year’s verification process. So, for “Paper and timber”, where it reads “178,110” it should read “190,663”, where it reads “139,492” it should read “152,045” and where it reads “111,962” it should read “124,515”. Regarding “Beef”, where it reads “46,186” it should read “40,567”, where it reads “10,862” it should read “11,831” and where it reads “35,236” it should read “26,648”. The corrected values for 2022 are noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.3. “Fighting climate change”, subsection 3.3.2. “Carbon footprint”, some values in the carbon footprint table have been revised with the aim of improving alignment with the Greenhouse Gas Protocol methodology. Thus, in relation to the specific value (scopes 1 and 2), where it reads “0.0441” it should read “0.0342”. Regarding the global carbon footprint (scopes 1 and 2) by GHG, where it reads “1,119,135” it should read “869,337”. Regarding the carbon footprint (scope 1 – direct impacts), where it reads “222,921” it should read “227,719”. Regarding carbon footprint (Scope 2 – indirect impacts), where it reads “896,214” it should read “227,719”. Finally, in the carbon footprint (Scope 3 – other indirect impacts) where it reads “28,582,290” it should read “28,960,529”. Consequently, several categories within these indicators have been affected. All the corrected values for 2022 are noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.3. “Fighting climate change”, subsection 3.3.3. “Water and energy consumption management”, some values in the table referring to water withdrawal have been revised due to an update of the calculations. Therefore, for the overall specific value, where it reads “0.245”, it should read “0.232” and for the Specific Value (Agribusiness), where it reads “34.632”, it should read “30.848”. With regard to Water withdrawal by source, where it reads “6,220.0” it should read “5,881.1” as a result of correcting the withdrawal from municipal and private supply systems. As for water withdrawal by business unit, in JMA, “3,101.1” should read “2,762.3”. All the corrected figures for 2022 are duly noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.3. “Fighting climate change”, subsection 3.3.3. “Water and energy consumption management”, some values in the table referring to water withdrawal have been revised due to an update of the calculations. Thus, with regard to water consumption per business unit, where it reads “3,517.6”, it should read “3,178.8”, as a result of a correction to JMA’s water consumption value. All the corrected figures for 2022 are duly noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.3. “Fighting climate change”, subsection 3.3.3. “Water and energy consumption management”, some values in the table referring to energy consumption have been revised due to an update of the calculations. Thus, with regard to energy consumption by type, where it reads “7,490,850” it should read “7,529,609”, as a result of changes to the electricity and fuel figures. In relation to renewable energy, where it says “2,857,075” it should read “3,378,293”, due to changes in the electricity figure. Finally, in Biedronka’s energy consumption, where it reads “4,359,429”, it should read “4,391,749”. All the corrected figures for 2022 are duly noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.4. “Promoting a circular economy”, subsection 3.4.1. “Materials used and initiatives to reduce consumption”, some values in the table referring to the main materials used have been revised due to an update of the calculations. Thus, in relation to the specific value, where it reads “19.17”, it should read “19.13”. With regard to consumption per business unit, where it reads “486,684” it should read “485,490”, with regard to Private Brand product packaging (by type), where it reads “456,885” it should read “454,508”. With regard to other consumption, where it reads “16,957” it should read “18,140”. Consequently, various categories within these indicators have been affected. All the corrected figures for 2022 are duly noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.4. “Promoting a circular economy”, subsection 3.4.1. “Materials used and initiatives to reduce consumption”, some values in the table referring to the consumption of single-use plastics (SUP) have been revised due to an update of the calculations. Thus, with regard to the specific value, where it says “7.01”, it should read “7.00”. With regard to SUP consumption per business unit, where it reads “177,893” it should read “177,636”. With regard to SUP consumption – Check-out bags – where it reads “9,726” it should read “9,735”, and with regard to the consumption of other SUP, where it reads “363” it should read “97”. For the incorporation of recycled plastic in SUP (tonnes) by business unit, where it reads “21,879” it should read “21,910” and with regard to the incorporation of recycled plastic in check-out bags and pallet wrapping film, where it reads “7,463” it should read “7,494”. Finally, with regard to the use of virgin plastic in plastic packaging (tonnes) by business unit, where we read “148,599” we should read “155,727”. With regard to the use of virgin plastic in check-out bags and wrapping film, where it reads “5,543”, it should read “5,521”. Consequently, several categories within these indicators have been affected. All the corrected figures for 2022 are duly noted in the current report.
• In the 2022 Annual Report, in chapter 5 “Corporate responsibility in value creation”, subchapter 3. “Respecting the environment”, section 3.4. “Promoting a circular economy”, subsection 3.4.2. “Promoting the Sustainable Use of Materials” some values in the table referring to the reusable solutions for transporting customers’ shopping have been revised due to an update of the calculations. Thus, with regard to the material used in reusable plastic bags, where it reads “9,187”, it should read “9,196”. Consequently, several categories within these indicators have been affected. All the corrected figures for 2022 are duly noted in the current report.

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2-5

External assurance

The information contained and marked in this table with has been verified by an external third party: Ernst & Young Audit & Associados – SROC, S.A. The verification process report can be consulted at the end of chapter Sustainability.

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2-6

Activities, value chain and other business relationships

The Jerónimo Martins Group

Financial statements

Sourcing responsibly

Channel Responsibility, page “Our Responsibility Strategy” on the website www.jeronimomartins.com

Local supplier engagement

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2-7

Employees

The SENA Internships in Colombia were considered in the “fixed-term” contract typology, corresponding to 682 and 510 internships in 2023 and 2022 respectively. In 2023 we offered greater contractual stability, with an increase of 1.2 p.p. in the weight of permanent contracts at Group level and of 1.7 p.p. specifically in Poland.

There are no employees in the Group without guaranteed working hours. In calculating this indicator, the total number of employees at the end of the period was taken into account.

Our people

UNGC 6
SDG 8 & 10

2-8

Workers who are not employees

At the end of the period, the total number of workers who are not employees registered in our internal systems was 17,106. In most cases, these workers are hired on a temporary basis through labour agencies to perform functions such as store operator and logistics. We continue to improve our systems to ensure that we report all workers who are not employees.

UNGC 6
SDG 8

2-9

Governance structure and composition

Part I – Information on Shareholder Structure, Organization and Corporate Governance

SDG 5 & 16

2-10

Nomination and selection of the highest governance body

Section A – Shareholder Structure

Section B – Corporate Bodies and Committees

SDG 5 & 16

2-11

Chair of the highest governance body

SDG 5 & 16

2-12

Role of the highest governance body in overseeing the management of impacts

Section A – Shareholder Structure

Section B – Corporate Bodies and Committees

Section C – Internal Organisation

Double materiality assessment

Channel “Responsibility”, page “Our Responsibility Strategy”, subpage Defining our Priorities, on the website www.jeronimomartins.com

SDG 16

2-13

Delegation of responsibility for managing impacts

Section A – Shareholder Structure

Section B – Corporate Bodies and Committees

Section C – Internal Organisation

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2-14

Role of the highest governance body in sustainability reporting

The approval of the Corporate Responsibility Report, included in the Annual Report, is a responsibility of the Shareholders’ General Meeting.

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2-15

Conflicts of interest

See channel “Responsibility”, page “Corporate Responsibility Publications” to consult the Jerónimo Martins’ Code of Conduct and Code of Conduct for Suppliers on the website www.jeronimomartins.com.

See channel “Investors”, page “Corporate Governance”, subpage Specialised Committees on the website www.jeronimomartins.com.

The Anti-corruption Policy and the Plan for the Prevention of Risks of Corruption and Related Infractions (a document that identifies and classifies the main and potential risks of the company in terms of corruption, considering the probability of occurrence and the impact of the identified risks, and lists the prevention and mitigation measures that the company adopted to minimize the probability of occurrence and the predictable impact, in compliance with its regulatory compliance program) published in 2022, and the annual report on the implementation of the plan for the prevention of corruption risks and related offences are both available for consultation on the About Us channel at www.jeronimomartins.com.

SDG 16

2-16

Communication of critical concerns

Part I – Information on Shareholder Structure, Organization and Corporate Governance

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2-17

Collective knowledge of the highest governance body

The Group carries out activities (e.g., internal and external training sessions, Sustainability Conference, internal newsletters and progress reports) that enable its management bodies to become more aware of sustainability topics. Additionally, in 2019 Sustainability Committees were created for all our Food Retail, Specialized Retail and Agribusiness Companies, with 10 meetings taking place in 2023.

Sustainability

Subsection II - Management and Supervision (Board of Directors)

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2-18

Evaluation of the performance of the highest governance body

Section D – Remuneration

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2-19

Remuneration policies

Section D – Remuneration

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2-20

Process to determine remuneration

Section D – Remuneration

SDG 16

2-21

Annual total compensation ratio

The disclosure of this indicator is not applicable to the reality of Jerónimo Martins Group, considering: i) its presence in different countries with weaker currencies comparing with euro (resulting in an average remuneration according with Purchasing Power Parity that is lower in these countries than in Portugal); ii) the fact that brick-and-mortar food retail sector is labour-intensive, relying strongly on low-qualified workforce; iii) the fact that the indicator requires the comparison between realities that are not comparable and where there is no measure of justice (i.e., comparison of profiles of similar employees in terms of level of responsibility, expertise and strategic scope, among others).

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2-22

Statement on sustainable development strategy

Message from the Chairman

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2-23

Policy commitments

See the corporate website www.jeronimomartins.com for the following policies that guide the conduct of the Jerónimo Martins Group and its Companies in performing their activities:

Jerónimo Martins’ Code of Conduct

Anti-corruption Policy

Quality and Food Safety Policy

Nutrition Policy

Environmental Policy

Sourcing Responsibly

Code of Conduct for Suppliers

Supporting Surrounding Communities

We also have a Plan for the Prevention of Risk of Corruption and Related Offenses (available at Anti-corruption Policy) and the Gender Equality Plan (available at Ethical Principles).

These policies are accompanied by internal guidelines and by commitments that support their materialisation, aiming to potentiate the positive impact of the Group and its Companies, and also to prevent and/or remedy the negative impacts on topics that are materially relevant for the business, people and the environment.

In the case of the Corporate Responsibility strategy, which includes the material issues referred to the Group’s business by the stakeholders (available in Double materiality assessment, and at Defining Our Priorities, each pillar of action has:

• objectives and commitments, for a specific time horizon, to be carried out internally or with partners in our supply chain, service providers or social organisations, and which may include training initiatives on legislation and corporate Codes and Policies, and investments.
• an annual progress report on these objectives (available on the corporate website at Our Commitments and Progress) which allows us to assess and manage the activities that contribute to policy delivery and those that need adjustment.

As a way of responding to the expectations and concerns of stakeholders, there are mechanisms that facilitate the communication and resolution of potential negative impacts arising from our activity:

• the Ethics Committee, a specialised body for monitoring, with exemption and independence, the disclosure and compliance with the Code of Conduct and the Anti-corruption Policy in Portugal, Poland and Colombia, thus managing risks effectively, in light of the Irregularity Communication Policy approved by the Company. This body discloses, and makes available, a digital platform to confidentially, and anonymously if desired, report infractions.
• the Ethics Units, autonomous reporting channels in Portugal which, alongside the Ethics Committee, are responsible for receiving and following up reports of any irregularities that violate European Union law, national law and the Code of Conduct.
• the Committee for Combating Mobbing, Discrimination and Sexual Harassment, formed whenever there is a complaint on this issue in Poland.
• the Committee for Labour Coexistence in Colombia, which investigates complaints related to working conditions or other labour problems.
• the Employee Assistance Service (SAC) for the reporting, clarification and resolution of labour issues, and for receiving and forwarding social requests. This channel guarantees confidentiality, independence and impartiality, ensuring the protection of employees against possible situations of retaliation, discrimination or reduction of their rights.
• the Customer Ombudsman Office, created in 2005 with the objective of preserving consumer confidence and satisfaction, mediates customer relations with the Companies, being independent and neutral. Each process sent is analysed and the necessary steps are taken, culminating in a non-binding opinion and recommendations for action to the Companies. For the three-year period 2022-2024, a new Group Customer Ombudsman was appointed. The resolution rate for the total number of contacts in 2023 was 99%, and the level of satisfaction with customer responses was “Neutral” or “Positive” in 88% of the cases. For more information on these and other indicators consult the “Responsibility” channel, page Customer Ombudsman in the corporate website.
• the Customer Services, in all geographies, aimed at consumers.

The reporting of complaints made by employees through the Ethics Committee, Ethics Centres, Local Committees and the Employee Service Department in the management of employment issues can be consulted in Act ethically.

The actions we develop annually are described throughout chapter 5 “Corporate Responsibility in Value Creation” of this report, with emphasis on Minimum safeguards, regarding due diligence on the prevention and potential remediation of human and labour rights risks, a material issue for the Group and stakeholders. The management of these issues and others relevant to the continuation of the business, including risk identification, is the responsibility of several Functional Divisions which, in turn, support the functioning of the Management Bodies – such as the Board of Directors, the Managing Director, the Shareholders’ Meeting and the Audit Committee – and the Specialised Committees – such as the Executive Board, the Corporate Governance and Corporate Responsibility Committee, the Ethics Committee, the Internal Control Committee and the Remuneration Committee. Their responsibilities and functioning are described in Part I – Information on Shareholder Structure, Organization and Corporate Governance and in the “Investor” channel, page Corporate Governance of the corporate website www.jeronimomartins.com.

UNGC 10
SDG 16

2-24

Embedding policy commitments

2-25

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

2-27

Compliance with laws and regulations

For information on this matter, see the reporting on:

GRI 206-1

GRI 307-1

GRI 416-2

GRI 417-2

GRI 417-3

With regard to non-compliance with environmental laws and regulations, there were no fines of a significant nature*. We are improving our reporting processes in order to respond to socio-economic compliance indicators.

* A fine is considered to be a monetary amount equal to or greater than approximately 45,000.00 euros

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2-28

Membership associations

Channel About Us, page “Organisations to Which We Belong” and channel “Responsibility”, page “Our Responsibility Strategy”, subpage Organisations to Which We Belong on the website www.jeronimomartins.com

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2-29

Approach to stakeholder engagement

Double materiality assessment

Channel “Responsibility”, page “Our Responsibility Strategy”, subpage Stakeholder Engagement on the website www.jeronimomartins.com

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2-30

Collective bargaining agreements

In Portugal, only a residual number of employees are not covered by collective bargaining agreements. In Poland and Colombia, where there are no collective regulatory instruments applicable to our companies, working conditions and the way the employment contract is executed are regulated by the respective legal systems (which regulate these issues internally) and by the internal, local and global policies in force in our Group. Our internal policies are aligned with international best labour practices, in particular with respect to the fundamental conventions of the International Labour Organisation.

Act ethically

UNGC 3
SDG 8

3-1

Process to determine material topics

In 2023 we carried out a review of the material aspects to be considered in our Corporate Responsibility strategy and reporting, in line with the requirements of the Global Reporting Initiative (GRI), in its GRI Standards version, and with the principles of double materiality laid down by the European Union. In total, the study involved around 17,000 responses from nine different stakeholders in the three countries where we operate, as well as the Group’s top management. As a result of this analysis, it was possible to identify 10 material topics available for further information in: Double materiality assessment

The Jerónimo Martins Group

Financial statements

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3-2

List of material topics

A new stakeholder consultation process was started in 2023, in line with the principles of double materiality.

Double materiality assessment

Material topics for the Jerónimo Martins Group: product affordability, product safety and quality standards, sustainable & responsible criteria in the supply chain, food waste, product and services innovation, climate change, packaging redesign for sustainable resource use, compensation and benefits, employee learning and development, engagement and supporting local communities.

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3-3

Management of material topics

Material topics for the Jerónimo Martins Group:

1. product affordability

• Quality and diversity

  Food safety and quality

2. product safety and quality standards

• Quality and diversity

  Food safety and quality

3. sustainable & responsible criteria in the supply chain

• Section A – Shareholder Structure

  Section B – Corporate Bodies and Committees

  Section C – Internal Organisation

  Section E – Related Party Transactions

  Conserving biodiversity

  Selection and monitoring of suppliers

4. food waste

• Promoting a circular economy

5. product and services innovation

• Quality and diversity

  Food safety and quality

6. climate change

• Carbon footprint

7. packaging redesign for sustainable resource use

• Promoting a circular economy

8. compensation and benefits

• Section D – Remuneration

  Empower the individual path

  Recognise with fairness and competitiveness

9. employee learning and development

• Section D – Remuneration

  Empower the individual path

  Recognise with fairness and competitiveness

10. engagement and supporting local communities

• Supporting surrounding communities

  Managing policy

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201-1

Direct economic value generated and distributed

Financial statements

GRI 203-1

SDG 8 & 9

201-2

Financial implications and other risks and opportunities due to climate change

53. Details and Description of the Major Economic, Financial and Legal Risks to which the Company is Exposed in Pursuing Its Business Activity

Fighting climate change

Managing climate-related risks and opportunities

UNGC 7
SDG 13

201-3

Defined benefit plan obligations and other retirement plans

Section D – Remuneration

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201-4

Financial assistance received from government

In Poland, the company received part of a European Union grant for research and development (applications were submitted until the end of 2023, but part of the funds will be received in 2024). The amount totalled to 172,045.80 EUR (779,986.84 PLN), of which 87,979.00 EUR (398,861.59 PLN) were received in 2023. It also received a tax benefit from robotisation of 18,051.88 EUR (81,840 PLN).
In Portugal, the benefits granted by official entities, as a tax credit, were aimed at offsetting investments made under the SIFIDE II programme – Tax Incentive System for Business Research & Development. This programme consists of a deduction from income tax of part of the amounts incurred in staff costs, operating costs, costs of contracting Innovation and Development (R&D) and costs of acquiring fixed assets to support R&D activity, which are certified by an external and independent entity. With reference to the 2022 tax year, in terms of SIFIDE II: at this level, and for the nine Companies of the Jerónimo Martins Group (“GJM”) that submitted applications to SIFIDE II, with reference to the 2022 tax year (namely, JMR - Prestação de Serviços para a Distribuição, S.A., Jerónimo Martins Serviços, S.A., Seaculture Aquicultura, S.A., Terra Alegre Lacticínios, S.A., Best Farmer – Actividades Agro-Pecuárias, S.A., Jerónimo Martins Agro Alimentar, S.A., Jerónimo Martins, SGPS, S.A., Outro Chão Agricultura Biológica, Lda. and Recheio – Cash & Carry, S.A.), the amount of potential tax credit requested was EUR 5,900,601.67. Specifically in the context of the applications from the Companies Outro Chão and Best Farmer, the respective decisions from the Agência Nacional de Inovação, S.A. were issued, which resulted in the tax credit requested in the application being granted in full, i.e., EUR 28,389.96 and EUR 95,629.79, respectively.
Total investment in R&D in the year 2022: In this particular context, and based on the amounts reported in the IPCTN22 – Survey of National Scientific and Technological Potential, by the GJM companies for which we assisted in completing the survey, the total amount reported in this regard totalled EUR 9,414,942.82.
In Colombia, there were no financial incentives (in the form of tax benefits/credits) granted by official entities to our operations.

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202-1

Ratios of standard entry level wage by gender compared to local minimum wage

Regarding workers who are not employees, we do not have consolidated information to date that allows us to assess whether the type of functions performed are subject to minimum wage rules.

Recognise with fairness and competitiveness

UNGC 6
SDG 1, 5 & 8

202-2

Proportion of senior management hired from the local community

To calculate this percentage, employees at the three highest functional levels in the organisation are considered. The hiring of people whose nationality is the same as the country where the employee works is considered local.

UNGC 6
SDG 8

203-1

Infrastructure investments and services supported

Sourcing responsibly

Direct support

Indirect support

Channel “Responsibility”, page Sourcing Responsibly and Supporting Surrounding Communities on the website www.jeronimomartins.com

SDG 5, 9 & 11

203-2

Significant indirect economic impacts

Indirect support

SDG 1, 3 & 8

204-1

Proportion of spending on local suppliers

Selection and monitoring of suppliers

Local supplier engagement

SDG 8

205-1

Operations assessed for risks related to corruption

Section C – Internal Organisation

Section E – Related Party Transactions

In 2022, the Plan for the Prevention of Risks of Corruption and Related Infractions was published, a document that identifies and classifies the main and potential risks of the company in terms of corruption, considering the probability of occurrence and the impact of the identifies risks, and lists the prevention and mitigation measures that the company adopted to minimize the probability of occurrence and the predictable impact, in compliance with its regulatory compliance program. The Implementation Report for this plan was published in 2023. The document can be consulted on the corporate website at www.jeronimomartins.com. In addition, in 2023 we approved the Integrity Due Diligence Procedure, as an autonomous internal document aimed at assessing risks related to corruption in the supply chain.

Risk assessment in the supply chain is also assessed through social audits whose criteria include this issue. Information on audits carried out in 2023 can be consulted in Selection and monitoring of suppliers.

UNGC 10
SDG 16

205-2

Communication and training about anti-corruption policies and procedures

There was a significant increase in the training provided on the Anti-corruption Policy (+84.8% of training hours than in 2022), reaching 15,587 employees. However, there was a reduction in the number of employees who received communications on this issue, considering that in 2022, in Portugal, a special communication campaign had been implemented for all employees.
We continue to improve our systems to ensure that we report information by employee category.

Act ethically

UNGC 10
SDG 16

206-1

Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

There were no recorded legal actions completed during the year relating to anti-competitive behaviour, violations of antitrust legislation and monopolistic practices in which the organization was identified as a participant. Additionally, see 23. Contingencies, contingent assets and contingent liabilities for a description of major legal proceedings (amounted higher than 5 million euros) pending resolution, for which the Board of Directors, supported by the opinion of its lawyers and tax advisors, considers that there is enough ground for its appeal in court.

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301-1

Materials used by weight or volume

Promoting a circular economy

Materials used and reduction initiatives

UNGC 7 & 8
SDG 8 & 12

301-2

Recycled input materials used

Materials used and reduction initiatives

UNGC 7 & 8
SDG 8 & 12

301-3

Reclaimed products and their packaging materials

This aspect is not material. Nevertheless, the Group promotes the collection of customer waste in its stores for recovery.

Promoting a circular economy

Waste management

UNGC 8
SDG 8 & 12

302-1

Energy consumption within the organization

Water and energy consumption management

UNGC 7, 8 & 9
SDG 7, 8, 12 & 13

302-2

Energy consumption outside of the organization

This indicator is disclosed as CO₂e, concerning the calculation of the Group’s carbon footprint – scope 3 emissions for all categories according to the methodology of the GHG Protocol – Corporate Value Chain.

Carbon footprint

Water and energy consumption management

UNGC 7 & 8
SDG 7, 8, 12 & 13

302-3

Energy intensity

Water and energy consumption management

UNGC 8
SDG 7, 8, 12 & 13

302-4

Reduction of energy consumption

Water and energy consumption management

UNGC 8 & 9
SDG 7, 8, 12 & 13

302-5

Reductions in energy requirements of products and services

Water and energy consumption management

UNGC 8 & 9
SDG 7, 8, 12 & 13

303-1

Interactions with water as a shared resource

Water and energy consumption management

UNGC 7 & 8
SDG 6, 12

303-2

Management of water discharge-related impacts

Water and energy consumption management

UNGC 8
SDG 6

303-3

Water withdrawal

Water and energy consumption management

UNGC 8
SDG 6 & 12

303-4

Water discharge

Water and energy consumption management

UNGC 8
SDG 6

303-5

Water consumption

Water and energy consumption management

UNGC 7 & 8
SDG 6

304-1

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

The Jerónimo Martins Group infrastructures comply with legal requirements concerning environmental matters and are mostly built within the urban network. Particularly regarding agribusiness, the Group owns some properties close to the National Ecological Network, collaborating with governmental entities to ensure its conservation.

Conserving biodiversity

UNGC 8
SDG 6, 14 & 15

304-2

Significant impacts of activities, products, and services on biodiversity

Conserving biodiversity

Promoting more sustainable production practices

Practices to promote animal welfare

Sustainable fishing

UNGC 8
SDG 6, 14 & 15

304-3

Habitats protected or restored

Non-applicable to the Group’s activities in 2023. Nevertheless, the Group collaborates with a number of habitat and ecosystem conservation initiatives such as the Green Heart of Cork (ANP | WWF), the clean Tatra mountains and clean Baltic beaches campaigns (Czysta Polska), Salamandra – Polish Society for Nature Conservation, ECOs-Locais (LPN), bees protection (Fundabejaz) and SOS Polinizadores (Quercus). In addition, the “Forest Açor mountain range” project – brings together the Jerónimo Martins Group, the Arganil City Council, common landowners’ associations and the Escola Superior Agrária de Coimbra – is an initiative launched in 2020 that aims to preserve and enhance the landscape devastated by forest fires in this region, covering an area of 2,500 hectares.

Conserving biodiversity

Promoting more sustainable production practices

UNGC 8
SDG 6, 14 & 15

304-4

IUCN Red List species and national conservation list species with habitats in areas affected by operations

Conserving biodiversity

Sustainable fishing

UNGC 8
SDG 6, 14 & 15

305-1

Direct (Scope 1) GHG emissions

Carbon footprint

UNGC 7 & 8
SDG 3, 12, 13, 14 & 15

305-2

Energy indirect (Scope 2) GHG emissions

Carbon footprint

UNGC 7 & 8
SDG 3, 12, 13, 14 & 15

305-3

Other indirect (Scope 3) GHG emissions

Carbon footprint

UNGC 7 & 8
SDG 3, 12, 13, 14 & 15

305-4

GHG emissions intensity

Carbon footprint

UNGC 8
SDG 13, 14 & 15

305-5

Reduction of GHG emissions

Carbon footprint

UNGC 8 & 9
SDG 13, 14 & 15

305-6

Emissions of ozone-depleting substances (ODS)

This aspect is not material. However, in 2023, an emission of 0.68 kg of CFC-11 eq., associated to the use of hydrochlorofluorocarbons, was verified in air conditioning equipment in Colombia, which is part of the fixed assets of the acquired stores. These represent <0.1% of the total of this type of equipment used in the Group’s Companies.

UNGC 7 & 8
SDG 3 & 12

305-7

Nitrogen oxides (NO_X), sulphur oxides (SO_X), and other significant air emissions

The quantities are emitted by the combustion of fossil fuels (use of fuel on site to operate equipment, emergency and heating generators and the light vehicle fleet):

• NO_X = 210.1 tonnes (+50.4% compared to 2022, considering value updating);
• SO_X = 42.5 tonnes (-43.1% compared to 2022, considering value updating).

UNGC 7 & 8
SDG 3, 12, 14 & 15

306-1

Waste generation and significant waste-related impacts

Promoting a circular economy

Waste management

UNGC 8
SDG 3, 6, 11 & 12

306-2

Management of significant waste-related impacts

Waste management

306-3

Waste generated

Fighting climate change

Promoting a circular economy

Waste management

306-4

Waste diverted from disposal

Waste management

306-5

Waste directed to disposal

Waste management

307-1

Non-compliance with environmental laws and regulations

There were no fines of significant nature*.

*A monetary amount equal to or greater than approximately 45,000.00 euros is considered a significant fine.

UNGC 8
SDG 16

308-1

New suppliers that were screened using environmental criteria

In 2023, the Group approved 120 new suppliers 100% of which were screened using environmental criteria.

Relationship with suppliers

Selection and monitoring of suppliers

UNGC 8

308-2

Negative environmental impacts in the supply chain and actions taken

Conserving biodiversity

Selection and monitoring of suppliers

UNGC 8

401-1

New employee hires and employee turnover

New employee hires

Employee turnover

The turnover rate has stabilised compared to previous years, with a reduction of 0.5 p.p. globally (30.8% in 2022), 1.5 p.p. in Portugal and 1.3 p.p. in Poland, offset by an increase of 5.8 p.p. in Colombia, where turnover is higher.
We analysed two types of turnover: non-voluntary and voluntary (from the employee’s point of view). The former is essentially the result of the seasonality to which the business is subject, forcing companies to adjust their workforce at times like Christmas, Easter or summer, as well as a desirable adjustment related to underperformance.
On the other hand, there are various reasons why employees may leave our Group voluntarily, which may be related to the opportunity for a new position or the need to move for professional or personal reasons.
Voluntary terminations are the main contributors to the turnover rate, especially among employees aged 24 and under. In order to understand the reasons for turnover and act preventively to mitigate it, we conduct exit interviews. In addition, this indicator is monitored by the Risk Committee.

Our people

UNGC 6
SDG 5, 8 & 10

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Recognise with fairness and competitiveness

UNGC 6
SDG 3, 5 & 8

401-3

Parental leave

UNGC 6
SDG 5 & 8

402-1

Minimum notice periods regarding operational changes

The Jerónimo Martins Group follows the notice periods established by the law in what regards operational changes. All collective labour agreements which exist and are applied in Portugal have clauses regarding termination (cessation by the will of one of the parties) and the revision process, with rules stipulating, depending on the case, deadlines and procedures for each situation. In any case, this topic is covered by the Portuguese Labour Code, which regulates these realities.

UNGC 3
SDG 8

403-1

Occupational health and safety management system

Protect through the best work conditions

Integrate work and personal context

SDG 8

403-2

Hazard identification, risk assessment, and incident investigation

Protect through the best work conditions

SDG 8

403-3

Occupational health services

Protect through the best work conditions

SDG 8

403-4

Worker participation, consultation and communication on occupational health and safety

Protect through the best work conditions

SDG 8 & 16

403-5

Worker training on occupational health and safety

Protect through the best work conditions

SDG 8

403-6

Promotion of worker health

Integrate work and personal context

SDG 3

403-7

Prevention and mitigation of occupational health and safety impacts directly linked to commercial relations

We are guided by our Sustainable Sourcing Policy, which explains, among other things, the need to establish commercial relationships with organisations whose activities respect the rights of man, children and/or workers, taking due diligence to learn about the reality of suppliers in order to detect early signs of possible abuses or non-compliance with the Code of Conduct for Suppliers. This latter document is included in commercial contracts, so that our partners also defend the labour rights of their own workers, namely in matters of health and safety conditions, non-discrimination, compliance with working hours, and the prohibition of any form of forced labour – including that involving the application of corporal punishment, harassment or bullying practices, or any form of physical or moral coercion – and the use of child labour, as defined by the International Labour Organisation. Both documents are published at www.jeronimomartins.com.

One example of the application of these criteria is the procurement processes for products with a global scope (two or more geographies) – Global Sourcing – which anticipate social and labour aspects in their specifications. Quality and food safety audits also take labour aspects into account in supplier selection and monitoring processes. In addition, the social audits carried out on the Companies’ suppliers use evaluation criteria that include health and safety at work, preparation for emergencies, contract terms, working hours, and compliance with laws and regulations. For more information see Selection and monitoring of suppliers.

See, also, the diligences implemented by the Group with its supply chain for the defence of human and labour rights in Minimum safeguards.

SDG 8 & 16

403-8

Workers covered by an occupational health and safety management system

The information presented refers to the health and safety management system implemented at Biedronka (ISO 45001:2018) and Terra Alegre (ISO 45001:2019). This includes 81,142 employees (81,004 at Biedronka and 138 at Terra Alegre) and 13,754 non-employee workers (13,739 at Biedronka and 15 at Terra Alegre).
As a rule, all employees are covered by the system. The external audit only includes a sample of the total number of employees and workers who are not employees, and in 2023 it covered 18.3% more people than in 2022 (27% that year). Workers who are not employees are also covered by the occupational health and safety systems of their respective countries according to local legislation.

Protect through the best work conditions

SDG 8

403-9

Work-related injuries

In 2023, there were about five thousand work-related injuries throughout the Group, 34 of which were of high consequence, corresponding to an increase of 10.9% and 13.3% respectively, compared to the previous year. The gender difference is due to the greater number of women in the workforce. Even so, the rate of accidents with serious consequences and the rate of reportable accidents increased less than the absolute number of accidents – 7.0 per cent and 4.8 per cent respectively, as the total number of hours worked was also higher (by 5.9 per cent compared to 2022).

Most accidents:

• in Portugal led to trauma and contusions.
• in Poland resulted in fractures or contusions of limbs, cuts and musculoskeletal overload.
• in Colombia they led to contusions, strains and sprains, minor superficial burns and musculoskeletal overload.

Most accidents are related to falls, physical exertion, inappropriate handling of equipment, risky behaviour, debris-strewn or wet floors and the handling of cutting tools.
The main hazards and causes of accidents are mostly determined by analysing accidents that have occurred and, in order to mitigate them, we continually implement training and awareness programmes focused on the most common hazards (for example, handling equipment and moving loads in the store/distribution centre, for operations and good road practices, for employees in central structures). The hazards identified are also being gradually eliminated with the remodelling and opening of new stores.

In 2023, the Group recorded accidents to non-employee workers in the three main geographies, totalling 251 accidents, whose main causes and associated dangers are similar to those recorded for employees. We continue to improve our information systems to ensure that we report all the information requested by the indicator.

Protect through the best work conditions

SDG 3, 8 & 16

403-10

Work-related ill health

In 2023, 105 occupational diseases were recorded, which corresponds to an extraordinary decrease of 64.3% compared to 2022, the year in which cases of occupational diseases from previous years were regularised and confirmed, as a result of less activity by the entities responsible during the pandemic. The gender difference is due to the greater number of women in the labour force.
The main occupational illnesses recorded were tendonitis (inflammation of the tendons), epicondylitis (inflammation of the elbow), periarthritis (inflammation of the shoulder), paralysis, carpal tunnel syndrome, intervertebral disc disorder, rotator cuff disease, among other chronic diseases of the musculoskeletal system.
The main causes of occupational diseases lie in repeated movements and overloads on tendon sheaths, combined with a high pace of work with varied and manual loads. To mitigate these dangers, the companies have improved their machinery and equipment, altered and maintained their workplace infrastructure, increased awareness and specific HST training in identifying dangers and risks related to the activities carried out in the workplace, as well as making progress in organising tasks and adjusting working hours.

In 2023, the Group recorded 45 cases of occupational illness among non-employee workers in Portugal and Poland, whose main causes and associated dangers are similar to those recorded for employees. We continue to improve our information systems to ensure that we report all the information requested by the indicator.

Protect through the best work conditions

SDG 3, 8 & 16

404-1

Average hours of training per year per employee

The average number of training hours for men is slightly higher than for women because some jobs in the category “Store, DC and Office Employees”, such as in the butchery or logistics section, require a greater number of hours of training due to their specific nature and are currently occupied by more men.
The category “Store, DC and Office Employees” is also the one with the most hours of training, which is partly justified by the fact that it is the category with the highest turnover, requiring greater need for training in their recruitment and also in compulsory subjects such as health and safety at work.

Prepare for the future

UNGC 6
SDG 4, 5, 8 & 10

404-2

Programs for upgrading employee skills and transition assistance programs

Prepare for the future

SDG 8

404-3

Percentage of employees receiving regular performance and career development reviews

Empower the individual path

UNGC 6
SDG 5, 8 & 10

405-1

Diversity of governance bodies and employees

Our people

21. Composition of the Board of Directors, With Details of the Articles of Association’s Minimum and Maximum Number of Members, Duration of Term of Office, Number of Effective Members, Date When First Appointed and End of the Term of Office of Each Member

UNGC 6
SDG 5 & 8

405-2

Ratio of basic salary and remuneration of women to men

To report the salary ratio between genders, segmentation by geographical areas where we operate was considered.

Live diversity

UNGC 6
SDG 5, 8 & 10

406-1

Incidents of discrimination and corrective actions taken

There were no confirmed incidents of discrimination in the Jerónimo Martins Group. For information on the regulations used internally, namely the Code of Conduct, and the resolution mechanisms, which include the Ethics Committee, Ethics Divisions, among others, see Act ethically.

UNGC 6
SDG 5 & 8

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Selection and monitoring of suppliers

Act ethically

UNGC 3
SDG 8

408-1

Operations and suppliers at significant risk for incidents of child labour

Selection and monitoring of suppliers

Act ethically

UNGC 5
SDG 8 & 16

409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labour

Selection and monitoring of suppliers

Act ethically

UNGC 4
SDG 8

410-1

Security personnel trained in human rights policies or procedures

We continue to improve our systems to ensure that we report the information requested by the indicator.

UNGC 1
SDG 16

413-1

Operations with local community engagement, impact assessments, and development programs

Supporting surrounding communities

Managing policy

UNGC 1
SDG 1 & 2

414-1

New suppliers that were screened using social criteria

In 2023, the Group audited 412 new Private Brand and perishable suppliers, being 98% evaluated concerning labour practices (e.g., existence and/or use of appropriate clothing, hand washing equipment, conduct and personal hygiene rules, existence and conditions of social areas, locker rooms and sanitary facilities for employees and the control of training administration appropriate to the exercise of the function).

Selection and monitoring of suppliers

UNGC 2
SDG 5, 8 & 16

414-2

Negative social impacts in the supply chain and actions taken

In 2023, of the 2,596 (+5% than in 2022) Private Brand and perishables suppliers*, 1,786 (69%, 16% more compared to 2022) were subject to labour impact assessment. Non-conformities associated to work practices with negative impacts were not identified (e.g.: inexistence and/or misuse of adequate clothing, hand-washing equipment, non-compliance with rules of conduct and personal hygiene, among others).

Selection and monitoring of suppliers

* The same supplier may have more than one location. In these cases, each location is treated independently and accounted for as such. Thus, even if a production unit is disapproved, and it is suspended/rejected to supply the Group until corrective actions are implemented, the supplier can maintain supply in case of a positive evaluation in the remaining production units.

UNGC 2
SDG 5, 8 & 16

415-1

Political contributions

The companies of the Jerónimo Martins Group do not support any political parties or their representatives, nor do they contribute financially to groups that support party interests.

Channel “Responsibility”, page “Corporate Responsibility Publications” to read the Code of Conduct on the website www.jeronimomartins.com

UNGC 10
SDG 16

416-1

Assessment of the health and safety impacts of product and service categories

Promoting good health through food

Selection and monitoring of suppliers

Reformulations

Audits

Product analyses

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Number of cases of withdrawing products from sale, can be consulted at Promoting good health through food.

Food recalls and withdrawals

SDG 16

In the legal scope, the following were registered:

• In Poland, 87 confirmed incidents of non-compliance, which resulted in a warning from the authorities.
• In Colombia, 4 confirmed incidents of non-compliance that resulted in fine or penalty, and 25 confirmed incidents of non-compliance that results in a warning from authorities.

SDG 16

417-1

Requirements for product and service information and labelling

Promoting healthier choices

Practices to promote animal welfare

Certified products

SDG 12

417-2

Incidents of non-compliance concerning product and service information and labelling

In the legal scope, the following were registered:

• In Poland, 15 confirmed incidents of non-compliance, that resulted in a warning from the authorities.
• In Colombia, one confirmed incidents of non-compliance that resulted in fine or penalty.

SDG 16

417-3

Incidents of non-compliance concerning marketing communications

There were no incidents of non-compliance with regard to marketing communications that resulted in fines or penalties, or warning from authorities. Additionally, there were no non-conformities related to voluntary codes to which the Companies adhered.

SDG 16