About the Report

The Sustainability Report of the Biedronka chain, part of the joint-stock company Jerónimo Martins Polska, has been published since 2020. This report was drawn up in accordance with the 2021 Global Reporting Initiative Standards (GRI). The presented data, both qualitative and quantitative, refer to the period from 1 January to 31 December 2023, unless otherwise stated

Regarding the dimensional and structural aspects, there were no changes in Biedronka’s size, structure, form of ownership or value chain during the reporting period. Compared to the 2022 report, we have made several changes in accordance with the methodology adopted with the Group report. Information on all the changes can be found in the Group Report.

The reported data was obtained, in part, solely for the purpose of the present report, and a substantial portion, extracted from the Jerónimo Martins Group's 2023 Annual Report. Both sources were independently and externally verified. The Jerónimo Martins Group´s Annual Report was verified by EY. The 2023 Sustainability Report of the Biedronka chain was externally verified by an independent entity, SGS Polska Sp. z o.o. The verification was performed in accordance with the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000), issued by the International Auditing and Assurance Standards Board.

The following scope was covered: GRI 2-7, 202-1, 204-1, 301-1, 303-1, 305-1, 305-2, 306-3, 306-4, 306-5, 401-1, 401-3, 403-5, 403-9, 405-1. The external auditor was proposed by representatives of the Environmental Protection and Sustainability Division of the Biedronka chain and the Jerónimo Martins Group’s Corporate Communications and Responsibility Department, based, inter alia, on criteria as previous experience in auditing non-financial reports. The entity proposed was then approved by the Audit Committee of the Jerónimo Martins Group.

The structure of the Report, its assumptions and the final version of the document are approved by the Board of Directors of the Biedronka chain, taking into account key issues for the organization. Members of the Board of Directors are responsible for verifying the final content of each chapter of the report.

Process to determine material topics

In order to understand the impact that the Jerónimo Martin´s Group, therefore including Biedronka, has on the environment, society and economy, in accordance with the EU Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards (ESRS), in 2023 the Group conducted a comprehensive double materiality assessment for the first time. Compared to the Group's previous materiality analyses (conducted in 2013, 2016 and 2019), which only covered impact materiality, the 2023 assessment allowed for an indepth analysis of impact materiality together with financial materiality. The 2023 survey for the collected double materiality assessment, gathered information from over 16,600 stakeholders of nine different groups, in Poland, Portugal and Colombia, for the analysis of impact materiality along the value chain, considering severity and likelihood. To identify financial materiality, the assessment was based on the Group's risk management system, taking into account the risks and opportunities along the value chain, based on magnitude and likelihood. These two exercises were then validated by senior managers and members of the Group’s Executive Committee. Entering the procedural aspects of the double materiality assessment, the Jerónimo Martins Group’s analysis consisted of the following fundamental steps:

1. Identification of sustainability topics

Through an analysis of international and local sustainability policies and regulations (E.g: Sustainable Development Goals, European Green Deal, and other international climate and biodiversity agreements), relevant international reporting schemes (e.g: GRI, ESRS, SASB, TCFD), work programmes from different sectoral associations and non-governmental organizations (e.g: WBCSD and WWF), sustainability indices and peer benchmarking.

2. Stakeholder survey

Responses were collected through survey interviews with employees, consumers, suppliers and service providers, NGOs, charitable foundations, analysts and investors, the media, industry associations, insurance companies and opinion makers.

3. Identification of impacts, risks and opportunities (IRO)

Having the survey responses as a basis, it was prepared a comprehensive list of impacts, risks and opportunities, in order to assess potential material topics. These potential topics were then correlated with the ESRS standards. The assessment concentrated on three different stages of the value chain: the short, medium and long-term. Risks and opportunities were then classified based on their severity and probability of occurrence, and impacts were assessed as positive or negative, and as actual or potential. The resulting list from the IROs was finally filtered using the materiality threshold set, which selected a short list of material impacts, risks and opportunities.

4. Impact and financial materiality assessment

The information collected from the previous stages was presented using a matrix with the impact materiality axis and the financial materiality axis.

Topics identified as material

As a result of the Biedronka’s analysis, we have spotted key topics that have a material impact on our strategy and stakeholder relations. These topics reflect issues that can impact the operation of the company and correlations with the environment in the short, medium and long term.