GRI 2-6

Supply Chain

Brief Overview:

The REWE Group strives to reduce the potential environmental and social impacts of its actions wherever possible. The company

has identified the impact of particularly high-risk-product groups and focuses on raw materials along the value chain through risk analysis for the supply chains of the private label products that are sold at REWE and PENNY in Germany;
commits to strengthening human rights and preventing human rights violations through its Declaration of Principles on Human Rights in its own business operations as well as in the global supply chains;
requires compliance with the principles of ecological and socially responsible corporate management including by its suppliers; the cornerstone is the Supplier Code of Conduct.

As a trade and tourism company, the REWE Group sources its products and services through a variety of suppliers and from different supply chains. Especially in the supply chain stages of raw material cultivation and processing, there is an increased risk of disregard for labour and social standards as well as negative environmental effects.

GRI 2-6: Activities, value chain and other business relationships

Ensuring Compliance with Ecological and Social Standards

Principles

In its Declaration of Principles, the REWE Group commits to strengthening human and environmental rights and preventing or avoiding their violation, minimising them and taking remedial action in its own business operations as well as in the global supply chains. In order to identify, evaluate and process the effects of private label products on people, animals and the environment, an Approach for More Sustainable Supply Chains has been developed. The REWE Group focuses on certified raw materials for its private labels in order to ensure ecological and social standards, especially in cultivation and processing. Furthermore, with its Guidelines on Raw Materials it defines a binding framework for business relationships with its contractual partners in the supply chains. Additionally, the company has specified its requirements in its Supplier Code of Conduct updated in 2022. It applies as of 1 January 2023 and outlines the minimum standards that suppliers must observe and comply with when doing business with companies of the REWE Group. Furthermore, it considers the requirements of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG).

The retail company is of the opinion that human rights must not be negotiable. At the end of 2019, it therefore opted for binding framework conditions that create fair conditions along global supply chains. However, this is combined with the information that a national supply chain law alone is not sufficient, as only international legislation can achieve this effectively and include all stakeholders in the supply chains in a binding manner. In this context, the pursuit of European harmonisation in the area of corporate due diligence is generally considered to be positive.

The retail company is of the opinion that human rights must not be negotiable.

The REWE Group outlines essential approaches, measures and targets with regard to the supply chain of its private label products, in particular in the sections Social Aspects in the Supply Chain as well as Ecological Aspects in the Supply Chain.

Objective

The REWE Group strives to reduce the ecological and social impacts of its actions wherever possible.

Implementation

In order to achieve its objectives, the REWE Group conducted a product-related risk analysis for the supply chains of its private label products in 2018, which are sold at REWE and PENNY in Germany – at product group and raw material level (see section Product-Related Risk Analysis). In this way, the company was able to identify the impact of particularly high-risk product groups and focus on raw material along the value chain. The analysis revealed that the following raw materials have the highest ecological and social impacts (for more information on focus raw materials see Focus Raw Materials – Food and Focus Raw Materials – Non-Food):

Fruit and vegetables with special focus on bananas and pineapples
Meat and dairy products including animal feed such as soy
Coffee
Cocoa
Tea
Palm Oil
Fish
Orange juice
Cotton
Textiles
Natural stones

In 2022, the REWE Group implemented a multi-stage process regarding to the German Supply Chain Due Diligence Act, which came into force on 1 January 2023. It aims to systematically identify potentially adverse human rights and environmental impacts of both their own and their suppliers' business operations, and to take remedial action where necessary (for more information see section Social Aspects in the Supply Chain).

The background and action plans for sustainability involvement in the supply chains can be found in the following sections: