Sustainability Report 2024

3.

We carefor the environment

Climate action

Biedronka’s sustainability commitments for 2024-2026

ESRS Materiality Commitment Progress in the execution in 2024
ESRS E2-3 N-M Maintain the number of locations with environmental certification (17 distribution centres) and assure the environmental certification for new sites (distribution centres and industrial units opened during the period 2024-2026). ISO 14001 certification was renewed for 17 distribution centres and the soup factory.
ESRS E4-4 N-M Support and/or implement, in the period 2024-2026, at least two nature conservation and biodiversity protection projects, aligned with the Kunming-Montreal Global Diversity Framework, and disclose its results annually. We supported 2 projects in the field of nature and biodiversity conservation.
ESRS E1-4 M Reduce the Group's scope 1 and 2 emissions by at least 10% by 2026, compared to 2021. This commitment is aligned with the science-based target for the near-term submitted by Jerónimo Martins to the Science Based Targets Initiative. Biedronka's carbon footprint (scope 1 and 2), in absolute terms, was reduced by 25.2% compared to 2021.
ESRS E1-4 M Reduce carbon emissions resulting from transporting goods to stores by 5% (in tonnes of CO2e per 1,000 pallets transported) by 2026, compared to 2021. Carbon emissions from transporting goods were reduced by 9.3% compared to 2021.
ESRS E1-4 M Engage at least 10 suppliers from the top 100 suppliers in the purchased product category between 2024 and 2026 to collaborate on defining a strategy to reduce scope 3 emissions. We worked with 11 suppliers.
ESRS E1-4 M Reduce energy consumption by 10% (per €1,000 of sales) by 2026 compared to 2021. Biedronka's energy consumption was reduced by 36.3% (per EUR 1,000 of sales) compared to 2021.
ESRS E3-4 N-M Reduce water withdrawal in distribution operations by 5% (per EUR 1,000 of sales) by 2026 compared to 2021. Biedronka's water withdrawal was reduced by 34.4% (per EUR 1,000 of sales) compared to 2021.
ESRS E5-3 M Ensure that at least 25% of Private Brand product packaging is included in the Eco-design project by 2026, considering the 2023 assortment. 40.5% of Private Brand product packaging was covered by an Eco-design project compared to 2023.
ESRS E5-3 M Reduce by 10% the unit consumption of plastics measured in tonnes of plastic packaging per million EUR turnover by 2025 compared to 2018. Consumption of plastics was reduced by 51.9% compared to 2018.
ESRS E5-3 M Increase the recycled plastic content of the plastic packaging for which we are responsible (Private Brand, service packaging, branded bags and packaging film) to 25% by 2025. The recycled plastic content of the plastic packaging for which Biedronka is responsible was 12.6%.
ESRS E5-3 M Ensure an annual waste recovery rate of at least 85% of the volume of waste generated by 2026. 90% of the waste generated by Biedronka was sent for recovery.
ESRS E5-3 M Reduce annual food waste to 2.5% of total food sales (in tonnes) between 2024 and 2026. Biedronka reduced food waste to 2.0% of total food sales (in tonnes).
ESRS E5-3 M Increase by 10% the amount of rescued food in own operations and in the supply chain, namely through food donations, sales with a discount price of food products reaching the expiry date, recovery of non-graded food from farmers and leftovers from own operations and recovery of wasted food to animal feed and biomaterial / processing, by 2026, compared to 2023. The amount of food recovered in Biedronka's own operations and in the supply chain increased to 27%.
  • 18.5%

    reduction of greenhouse gas emissions in scope 1 and 2 compared to 2023

  • 11.8%

    reduction in the rate of consumption of private brand packaging materials (expressed in t/'000,000 eur) in relation to 2023

  • 1,695

    stores using photovoltaic panels

  • 1,219

    tonnes less plastic per year thanks to changes in packaging

Counteracting climate change

In 2024, the Jerónimo Martins Group updated the Climate Transition Plan, that defines our strategy in reducing greenhouse gas emissions in our own operations and through collaboration with suppliers, especially of Private Brands and perishables.

In 2024, the Group’s reported emission reduction targets were approved by the Science Based Targets Initiative (SBTi), which confirms their compatibility with current scientific knowledge and the objectives of the United Nations’ Paris Agreement.

To achieve these goals, Biedronka is investing in renewable energy sources, energy-saving technologies, and it collaborates with suppliers of perishables and Private Brands for best practice in agriculture, circular economy and the conservation of natural resources.

by 2033

reduce greenhouse gas emissions in scope 1 and 2 (energy, industry) by 55%,

reduce scope 3 emissions (energy and industry) by 33%,

reduce emissions from agricultural activities and land use (FLAG, scope 1 and 3) by 39%;

by 2045

reduce emissions in scope 1 and 2 (energy, industry) by 90%;

by 2050

reduce scope 3 emissions (energy, industry) by 90%,

reduce scope 1 and 3 emissions (forestry, land, agriculture-FLAG) by 72%,

neutralise residual emissions in accordance with international standards.

Carbon footprint

In 2024, our scope 1 and 2 greenhouse gas emissions fell by 18.5% compared to 2023. This result was driven primarily by the emission decrease of Poland’s energy mix, Biedronka’s investment in renewable energy and the modernisation of refrigeration systems - replaced by models with natural or low-emission refrigerants.

We also continued to develop carbon footprint calculation tools for Private Brand and perishables based on the GHG Protocol standard. The developed calculators cover five main categories: toilet paper, pads and tissues, fresh meat, commodities, dairy and fat, and fruit and vegetables.

Climate-related risks and opportunities

In response to the increasing risks and complexity of weather phenomena, we are developing a system for identifying and managing climate risks, which were first developed based on the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) and have now been integrated into the international standards of the ISSB (International Sustainability Standards Board).

In 2024, we started the process of updating the assessment of climate risks and opportunities across the value chain in different time horizons until 2050, in line with the CSRD guidelines and the latest climate scenarios.

The main areas of risk included:

  • extreme weather events,
  • availability of water resources,
  • dependence on seaports, which may be vulnerable to the effects of rising sea levels (important for importing raw materials),
  • increases in energy and emissions costs resulting from regulatory changes and the implementation of climate policies, including emissions charging schemes,
  • expectations of consumers and investors regarding transparency and the pace of transition to low-carbon business models.

We involved suppliers of high climate risk products such as coffee, beef, vegetables, fruit and cereals in the assessment process. The aim was to gain an understanding of the adaptation measures they were using, such as renewable energy, changes in the location of production or the development of more resistant crop varieties.

In parallel, we analysed the vulnerability of our infrastructure – including stores and distribution centres - to risks such as flooding and the effects of prolonged heat waves. In the case of Biedronka, we took into account the climatic specific cities of Poland and the associated operational risks, such as the overloading of power grids, water availability or increased variability in the supply of seasonal products.

Among the opportunities, we identify new opportunities or local production of certain product categories due to, among other things, the extension of the growing season and changing climate conditions. For example, milder winters in Poland favour the cultivation of fruit and vegetables in regions that were previously considered less favourable for agriculture. The development of renewable energy sources on-site and greater energy efficiency in stores, distribution centres and processing plants translate into lower operating costs and reduced emissions.

Energy management

Biedronka is investing in distributed renewables such as photovoltaic panels and geothermal heat pumps, which not only reduce the need for grid power, but also contribute to reducing CO2 emissions.

Over 1,600 Biedronka establishments were equipped with photovoltaic installations.

Renewable energy sources (RES) were an important part of the energy mix, with 120,000 MWh coming from on-site production and PPA in 2024. Considering the Polish electricity and heating mix this value increased and accounted for approximately 30% of Biedronka’s total energy consumption.

Despite the intensive growth of the chain, including the opening of 186 new stores and the modernisation of 280 sites, Biedronka’s total energy consumption in 2024 remained at a similar level to the previous year, at 1,216,869 MWh - just 0.6% more than in 2023 (1,209,220 MWh). Maintaining an almost unchanged level of consumption was made possible by increased energy efficiency and lower thermal energy demand.

E-receipts

From July 2024, Biedronka’s customers can use fiscal e-receipts, i.e. digital versions of proofs of purchase available in the mobile app or after logging in to the customer account at moja.biedronka.pl. This solution reduces paper consumption and makes it easier to store receipts without the risk of losing them.

At the start, e-receipts were launched in more than 1,700 stores in Poland, and more locations are gradually joining in as checkout systems are upgraded.

Environmental audits of stores and distribution centres

Biedronka has a certified environmental management system in accordance with ISO 14001, which covers all distribution centres and the soup factory. The certificate was awarded for another period, until 2027.

Store modernisations

In 2024, we carried out 280 modernisations, including replacing refrigeration systems with those using lower GWP (Global Warming Potential) refrigerants, upgrading lighting to LED, installing new air-conditioning units and carrying out thermal modernisation work - including insulation of roofs and walls.

We also started installing electronic price strips, which reduces paper consumption and improves management of price tags in stores.

Efficiency in logistics

We strive to organise the supply chain as efficiently as possible, ensuring timely delivery, better use of resources and reduced environmental impact.

In 2024, the key activity in this area was the complete implementation of the TMS (Transport Management System) which covered all our distribution centres in Poland. The system allows better planning and management of routes, as well as real-time analysis of operational data, which results in more efficient use of the fleet.

In 2024, we completed nearly

1.3 million

routes, covering more than 184 million kilometres.

By optimising the use of cargo space by 23% and the number of packages per picked pallet by 5%, we were able to deliver a similar number of pallets to our shops as in 2023, with a reduction of 775,000 kilometres driven, which translates into a reduction

of 623 tonnes

of CO2 emissions

In 2024, Biedronka received its second Lean & Green star. This is a certificate awarded for a 12% reduction in CO2 emissions per pallet transported in logistics operations between 2021 and 2023. We received our first star in 2022, having achieved a 20% reduction in emissions between 2017 and 2020. The aim of the Lean & Green initiative is to support companies in becoming carbon-neutral in logistics by 2050. An independent audit confirms that the solutions implemented in logistics result in a reduction of greenhouse gas emissions in transport and distribution.

Biodiversity and ecosystems

Biedronka’s sustainability commitments for 2024-2026

ESRS Materiality Commitment Progress in the execution in 2024
ESRS E4-4 N-M By 2025, ensure that palm oil, soya, paper and wood and beef in Private Brand and perishable products are not associated with either deforestation or conversion of ecosystems (DCF - Deforestation and Conversion Free). The results of the activities will be included in Biedronka's report for 2025.
ESRS E4-4 N-M Palm oil: continue to ensure that 100% of palm oil is RSPO-certified and gradually extend this commitment to palm oil derivatives. 100% of the palm oil used in Private Brands and perishables is RSPO certified.
ESRS E4-4 N-M Soya: by 2025, ensure that 100% of direct and indirect soya is traceable to at least the country of origin and that whenever it comes from a location where the risk is not negligible, the soya is traceable to the municipality of origin and/or has a sustainability certificate (e.g. RTRS or ProTerra). 97% of direct and indirect soya is traceable to at least the country of origin.
ESRS E4-4 N-M Beef: making sure that 100% of the beef in our Private Brand and perishable products is traceable at least to the country of origin, and traceability to the farm of origin is guaranteed for all beef from countries with risks that are not negligible. 100% of beef in Private Brand and perishables is traceable at least to the country of origin; 97% comes from Poland and less than 0.1% from Brazil.
ESRS E4-4 N-M Paper and wood: working with Private Brand and perishable products suppliers to achieve sustainable certification (e.g. FSC® or PEFC) for 95% of virgin fibre used in products and 80% of virgin fibre used in our packaging by 2026. 97% virgin fibre used in certified products (FSC® or PEFC) and 98% virgin fibre used in packaging.
ESRS E4-4 N-M Analyse the sustainability status of fish resource for at least 80% of fish sales (in kg) from Private Brand and perishables and publicly disclose progress. The analysis is in progress.
ESRS E4-4 N-M Ensure that 100% of wild-caught tuna in our Private Brand and perishable products is traceable to the level of the vessel. The analysis is in progress.
ESRS E4-4 N-M Ensure that 100% of the eggs used as an ingredient in our Private Brand products come from cage-free hens. 100% of the eggs used as an ingredient in our Private Brand products come from cage-free hens.

Biedronka protects pollinators

Decline in wild pollinators is one of the ecological challenges that impact agriculture, food production and ecosystem stability.

In response, in April 2024, Biedronka intensified its cooperation with Polskie Towarzystwo Ochrony Przyrody “Salamandra” (the Polish Society for Nature Conservation “Salamandra”), and together we initiated Zapylacze project (Biodiversity Conservation - Pollinators).

In 2024, the project included, among other things, a mini-grant competition to create pollinator-friendly places, educational activities and the commencement of work on the Polish Red List of pollinator species. For its commitment to biodiversity conservation, Biedronka was awarded the title of Mecenas Ochrony Przyrody 2024 (Patron of Nature Conservation 2024) in March 2024.

Czyste Tatry 2024 (Clean Tatras 2024)

Biedronka is a partner of the Czyste Tatry (Clean Tatras) event organised by Stowarzyszenie Czysta Polska (Clean Poland Association) - an initiative we have supported continuously since 2019.

More than 2,000 volunteers were involved in the campaign, including our employees who, together with other participants, collected 248 kg of waste from the mountain trails. A new feature was the Czysta Piątka (Clean Five) run, after which a promise was made that 1 tree would be planted for each participant. Biedronka doubled this number to support climate action and environmental education.

Fighting deforestation

Since 2014, together with the Jerónimo Martins Group, we have been monitoring raw materials that can contribute to deforestation - soya, beef, palm oil, paper and wood used in Private Brand and perishables. We set specific commitments in this area aimed at increasing the traceability of our products and making sure that our suppliers are operating in a more sustainable manner.

Commitment to climate, water and forest protection recognised by CDP

In 2024, Jerónimo Martins Group, the owner of the Biedronka chain, received the highest grade of A in the CDP Climate Change programme, thus confirming the quality of its actions to reduce emissions and manage climate risk.

The Group has also been rated A- in the CDP Water Security and CDP Forests programmes – once again, reflecting consistency in the management of water resources and raw materials linked to deforestation (such as palm oil, soya, beef or paper and wood).

Sustainable fisheries

Protecting marine resources requires informed decisions. At Biedronka, we ensure that our operations do not lead to overexploitation of fish and seafood. Each year we analyse the population status of the species we sell, adjusting orders to reduce fishing pressure.

We rely on the IUCN classification (International Union for Conservation of Nature) to assess the extinction risk of individual species.

In 2024, we offered 33 fish species, expanding the range and reducing reliance on the most commonly consumed species. We do not sell live carp - only fillets stored in refrigerators are on offer.

Animal welfare

Being responsible for the way animals are treated in our supply chain is not only a commitment, but also a conscious choice. We consistently raise standards and demand the same from our suppliers.

In 2022, we implemented the Animal Welfare standard developed by the Jerónimo Martins Group, which clearly defines the requirements for suppliers of perishables. This includes, among other things, constant access to fresh water and feed, adequate resting conditions, preventive health care and prompt treatment, the elimination of stressors and providing the animals with space and contact with other individuals of their species.

In 2024, we conducted an assessment of animal welfare indicators in transport for the first time in cooperation with our key suppliers in Poland.

Use of resources and the circular economy

Biedronka is developing measures to support the transition to a circular economy, covering the entire value chain - from product design and packaging to waste management.

We are reducing the use of virgin raw materials, especially plastics, and increasing the proportion of materials that can be recycled or are already recycled. We aim to circulate as many raw materials as possible in a closed loop – in our stores, distribution centres and throughout the value chain.

In 2024, we completed over 320 ecodesign projects for Private Brand product packaging. Thanks to them, we reduced the consumption of packaging materials by over 2,000 tonnes - including more than 1,140 tonnes of plastic, 102 tonnes of paper, 139 tonnes of glass and almost 641 tonnes of metal.

Furthermore, we added recyclate to each fraction (plastic, metal, paper and glass), thus reducing the use of virgin raw materials by another 500 tonnes. Altogether, this adds up to almost 2,500 tonnes less material from non-renewable resources – the equivalent of the weight of 100,000 Euro pallets.

In single-use plastic packaging, the share of recyclates increased

by 12.6%

in 2024 compared to the previous year.

Waste management

In 2024, 90.0% of the waste generated in our operations was recycled, which confirms the effectiveness of the implemented processes and our commitment to the circular economy.

In addition to waste collection conducted at our locations, we offer customers solutions to support responsible waste handling, such as collection containers for used batteries and used small electrical and electronic equipment. We also invest in education and outreach activities that promote informed choices and environmentally friendly daily habits.

As a result, we collected 349 tonnes of customer waste in our stores in 2024 – 16.3% more than the year before (300 tonnes in 2023).

Pictograms on our product packaging to facilitate waste sorting

In order to make it easier for our customers to sort waste correctly, we place colourful pictograms on the packaging of our Private Brand products describing the type of material the packaging is made of. These small icons on the packaging indicate into which container the used packaging should be discarded, thus promoting effective recycling and environmental protection.

Fighting food waste

From 2020 onwards, Biedronka stores have used lower prices on food products reaching the expiry date – by 2024, such a solution was already in operation in nearly 500 sites. More than 2.4 million kg of food was saved through the discount programme.

In 2024, we collaborated with 152 non-profit organisations to which we donated more than 10,700 tonnes of food products reaching the expiry date.

We are also continuing our partnership with Too Good To Go. By 2024, it had already covered 776 stores, 276 more than the year before. Customers picked up almost 1.5 million parcels of products that would have gone to waste – a 42% increase on 2023 and as much as 2,280 tonnes less food wasted.

Environmental education and awareness raising

We carry out education and communication activities that support environmentally beneficial decision-making by customers, employees and business partners. In our relationship with consumers, we focus on promoting conscious choices, reducing the use of disposable packaging, preventing food waste and selective waste collection.

In 2024, we became a partner of the Olsztyn Green Festival for the first time, which is Poland’s largest event combining music with environmental themes. In our zone, we educated participants about waste sorting, labelling on packaging and preventing food waste. Visitors were also able to make juice on a bike, taste fresh fruit and learn about alternatives to disposable packaging. Our stand was visited by nearly 30,000 people.

Our employees are also involved in educational activities. We organise training sessions, webinars and contests for them to support informed decision-making at the product and material design stage, among other things. On the occasion of World Environment Day, we organised Dni Ekoznawców Biedronki (The Biedronka Ecoexperts’ Days) - an event combining lectures (with the participation of, among others, Zuzanna Skalska and Robert Makłowicz) with workshops during which participants created herbaria, hotels for pollinators or forests in a jar. In total, more than 400 people took part, including 120 on-site.

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