We have formulated principles on this topic

As a trade and tourism company, we source products and services from a large number of suppliers and from different global supply chains. To minimise the environmental and social impact of our actions wherever possible,

• our Guideline on Sustainable Business Practices defines the principles governing our business relationships, including the protection of biodiversity and the bans on forced and child labour.

• our guidelines on issues such as child and forced labour define a binding framework for action in our business relationships with our partners.

• we have committed ourselves in our Declaration of Principles to strengthening human and environmental rights and to preventing, minimising and remedying violations of these rights in our own business activities and along global supply chains. Our Group’s entities that fall under the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) have, each published their own Declaration of Principles.

With regard to the protection of human rights and environmental goods in the supply chain, our Supplier Code of Conduct sets out binding expectations which suppliers must observe and comply with in their business dealings with REWE Group companies. They should:

• not violate human rights and environmental obligations and pass on the obligations in the upstream supply chain in a binding manner.

• minimise the environmental impact of their business activities, actively implement measures that promote environmental protection and with all applicable local and internationally recognised environmental standards and laws.

How we identify and deal with risks

We use a four-step approach for more responsible supply chains, to address and mitigate risks to people, animals and the environment within our supply chains.

As part of the implementation of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), we have implemented a comprehensive and ongoing risk management system with regard to human rights and environmental due diligence in order to identify risks in our supply chains and in our own business operations, take measures to minimise them and assess their effectiveness. In addition, the risk management system includes two further steps:

• Grievance mechanism: Through our digital grievance system employees and other potentially affected groups can report concerns at any time should there be suspected cases of breaches of human rights or environmental issues caused by us, our subsidiaries or our suppliers. Based on these complaints, appropriate remedial and preventative measures are assessed and implemented as part of our risk management framework.

• Dealing with violations: All reports are investigated confidentially. We hold discussions with suppliers, complainants and NGOs, and take appropriate action where necessary.

Since 2019, a total of 62 production sites within our private label supply chains (for REWE, PENNY and toom Baumarkt DIY store in Germany) in the food and non-food sectors have taken part in our Factory Improvement Training.