Annual Report 2025

Management of biodiversity-related impacts, risks and opportunities

In response to increasing regulatory pressure on sustainability, rising stakeholder expectations regarding transparent disclosure of biodiversity management strategies, and the growing challenges that biodiversity loss may pose to ecosystems, we initiated, in 2025, our first structured assessment of our interactions with nature, aligned with the recommendations of the TNFD.

Aerial view of a boat driving in curves (photo)

The first step consisted of analysing the locations of the Group’s assets, with the aim of identifying sites situated in areas considered nationally and internationally relevant for biodiversity, using the World Database of Protected Areas (WDPA). Subsequently, nature‑related impacts and dependencies were mapped1, and potential material risks2 for our activities and those of the wider value chain were identified. This mapping covered the six largest Companies in the Group by sales volume (Biedronka, Pingo Doce, Ara3, Recheio, Hebe and JMA), and considered the markets of Poland, Portugal, Colombia and Morocco.

Assets located in relevant biodiversity areas

Using the World Database of Protected Areas (WDPA) enables us to identify assets located in legally protected areas, UNESCO Biosphere Reserves and Ramsar4 sites. Of the more than 6,500 Group facilities located in the countries analysed, only 7% overlap with protected areas:

  • Portugal – 2% of facilities in protected areas (typologies: food retail stores and aquaculture operations)

  • Poland – 9% of facilities in protected areas (typologies: food retail stores, specialised retail stores and distribution centres)

  • Colombia – 4% of facilities in protected areas (typologies: food retail stores, cash‑and‑carry stores and distribution centres)

  • Morocco – no facilities identified in protected areas

Even in locations situated within protected areas, our infrastructures comply with all environmental legal requirements and are, in their vast majority, located within urban areas. The Group obtains the necessary construction and operating permits in advance and collaborates with governmental authorities to ensure the conservation of those areas.

Impacts and dependencies

The preliminary analysis carried out using the ENCORE5 tool – still subject to refinement – indicates that both the potential impacts of biodiversity loss and the dependencies on nature are more significant upstream in the value chain than in our own operations.

Potential impacts of biodiversity loss and the dependencies on nature

Dimension

 

Own operations

 

Supply chain

Impacts

 

  • Overexploitation of resources;
  • Climate change;
  • Pollution1.

 

  • Change in land, water and sea;
  • Overexploitation of resources;
  • Climate change;
  • Spread of invasive species and other disturbances.
  • Pollution

Dependencies

 

  • Regulating services.

 

  • Provisioning services2;
  • Regulating services;

1

Within the ENCORE framework and the pressure categorisation used by Science-Based Targets Network (SBTN), pollution refers to emissions of non‑greenhouse‑gas air pollutants, emissions of toxic contaminants and nutrients to soil and water, as well as the generation of solid waste.

2

Natural resources provided by ecosystems – such as water, timber, wild species and fish – serve as raw materials for production.

Risks and opportunities

The preliminary analysis to identify biodiversity‑related risks6 associated with our activities in the assessed countries allowed us to identify as relevant:

  • Biodiversity pressures (physical risk) in Colombia, Morocco, Poland and Portugal

  • Regulating services-mitigation7 (physical risk) in Colombia and Portugal

  • Regulating and supporting services-enabling8 (physical risk) in Colombia

  • Reputational risks in Colombia and Morocco

With regard to water management9 as a critical resource, the following risks were identified:

  • Water availability in Portugal

  • Water quality in Poland

  • Reputational risks in Colombia

The results obtained reinforce the relevance of the initiatives we currently have underway, particularly in combating climate change and deforestation. In 2026, we intend to enhance the assessment of risks and opportunities associated with biodiversity and ecosystems, including the identification and quantification of the related financial effects – a step that will also enable the incorporation of as‑yet unidentified opportunities. In parallel, we will advance the development of TNFD‑aligned targets and metrics, establishing baselines that ensure consistent performance monitoring and the progressive integration of these topics into the Group’s management and reporting.

1 Mapping carried out based on the TNFD LEAP methodology and using tools such as ENCORE, the WRI Aqueduct Water Risk Atlas and the WWF Biodiversity Risk Filter.

2 A risk is considered material when it is rated “Medium” or above, on a scale ranging from “Very Low” to “Very High”, thereby reflecting a level of relevance that justifies its integration into the Group’s management processes.

3 Includes the operation of Bodega del Canasto (70 stores in 2025).

4 Ramsar sites are Wetlands of International Importance designated by countries under the Ramsar Convention, a global treaty established to promote the conservation and wise use of wetlands. These sites form an international network essential for biodiversity and are recognised by the Convention for maintaining key ecological components, processes and services, thereby receiving reinforced protection at national and international level.

5 ENCORE is a tool that helps link economic activities with their dependencies and impacts on natural capital. It uses sector classifications based on ISIC codes to identify material environmental pressures.

6 According to the WWF Biodiversity Risk Filter tool.

7 Refers to the ability of ecosystems to reduce exposure to natural hazards, such as wildfires, landslides, pests or extreme heat, thereby protecting operations and reducing exposure to these types of physical risks.

8 Refers to the ecosystem services that enable production processes, including the cultivation of agricultural crops or the rearing of livestock. This risk category includes five key enabling ecosystem services for various industries: soil condition, water condition, air condition, ecosystem condition and pollination.

9 According to the WRI Aqueduct Water Risk Atlas.

Deforestation
The extensive clearing of forests. This can happen for several reasons, such as creating farmland for crops and livestock, logging for timber, and developing infrastructure like roads and urban areas.
Ecosystem services
The benefits humans receive from natural ecosystems. These can be divided into four main types: provisioning services (e.g., food, fresh water, timber, fiber and medicinal resources), regulating services (such as climate regulation and flood control), cultural services (including recreation and aesthetic experiences) and supporting services (essential processes like soil formation, photosynthesis and biodiversity maintenance that enable the production of other services).

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