Sustainability Report 2024

5.

We manageresponsibly

Code of conduct in business

The ethics and compliance system at Biedronka is based on documents that are applicable throughout the Jeronimo Martins Group: the Code of Conduct, the Code of Conduct for Suppliers, the Anti-Corruption Policy and the Whistleblowing Policy.

Leaders of responsible Management

In 2024, we were recognised as the best in our industry in Ranking ESG. Odpowiedzialne Zarządzanie (ESG Ranking. Responsible Management), organised by the Kozminski Business Hub at Kozminski University.

This prestigious ranking evaluates companies based on the quality of their ESG-compliant activities. Furthermore, we ranked among the leaders in corporate governance, achieving the highest possible score in the "G" category.

Risk management

Biedronka's risk management system follows the Jeronimo Martins Group's approach and is based on the Jeronimo Martins Group's Risk Management Policy, approved by the Group's Board of Directors. This document defines the principles, roles and responsibilities related to the operation of the Group-wide risk management system.

In 2024, we reassessed the portfolio of principal risks, dividing them into 14 categories. Among the most material were:

Strategic risks:

  • Changing consumer demographics and preferences - influencing demand for specific products and sales channels;
  • Geopolitical instability and regulatory changes - particularly in ESG, labour law, packaging, and consumer information;
  • Technological innovation - requiring investment and adaptation of the business model;
  • Public and media pressure - related to expectations of transparency, accountability, and reputation.

Operational risks:

  • Disruption to supply chains - primarily related to the availability of agricultural raw materials, cross-border logistics, or climate change;
  • Data security and cyber threats - the increasing risk of attacks, particularly in the context of digital customer services, internal operations, and systems availability;
  • Inventory and logistics management - affecting product availability and cost efficiency;
  • Risks associated with fresh products and Private Brands - including food safety and compliance with quality standards.

ESG risks:

  • Environmental risks such as rainfall variability, droughts, water restrictions, threats to agricultural production, and the impact of greenhouse gas emissions;
  • Social risks, mainly irregularities in working conditions in the supply chain, labour shortages, risk of lack of social acceptance of investments;
  • Corporate governance risks, including legal compliance, transparency of governance, and anti-fraud.

In 2024, operational resilience tests and emergency scenario reviews were again conducted at Biedronka to ensure business continuity. The adequacy of the existing procedures in the context of current risks was confirmed. In addition, educational activities were implemented, including the Znam, stosuję, bezpiecznie się czuję! (I know them, follow them and feel secure!) campaign, which is mandatory for employees of the Operations Department.

Ethics and compliance

Jeronimo Martins’ Ethics Committee

The Ethics Committee is the enforcement mechanism of the Jeronimo Martins Group which operates independently and impartially to oversee compliance with the Code of Conduct and the Anti-Corruption Policy, ensuring alignment with the adopted ethical standards. The Ethics Committee provides a digital platform (available at www.jeronimomartins.com and at comissaodeetica.jeronimomartins.com), for the confidential reporting, anonymously if desired, of wrongdoing.

Biedronka's Ethics Hub

In 2024 Biedronka implemented a new Whistleblowing Policy, based on the provisions of the Whistleblower Protection Act. The policy broadens the scope of issues that can be reported and strengthens protection for individuals acting in good faith. All stakeholders can submit information anonymously. Each case is handled by our responsible independent panel - the Biedronka Ethics Committee Team. To simplify the whistleblowing process, we also added a whistleblowing section on Biedronka's website and internal platforms.

Anti-corruption Policy

Our company applies a zero-tolerance approach towards corruption. The Anti-Corruption Policy of the Jeronimo Martins Group defines the principles and outlines how to implement the commitments set forth in the Code of Conduct in terms of integrity and diligence. It sets out rules to prevent unlawful acts such as corruption and to avoid potential conflicts of interest. All employees, suppliers, and business partners must comply with this policy.

Etyka

Engaging with local suppliers

Engaging local suppliers is a way for us to support the regional economy and create jobs, as well as benefit for our customers. Local cooperation also means less complex supply chains and a smaller carbon footprint - especially when it comes to sea and air transport. Reduced distances between farms and our stores ensure faster deliveries, greater product freshness and extended shelf life.

Biedronka has a team of local merchants who on a daily basis cooperate with farmers and producers in various regions of Poland, including small family farms.

In 2024 we initiated collaboration with over

70%

new farms, increasing the number of active suppliers to approximately 230.

Over

126 million

pieces of their products were delivered to our stores, and the purchase value increased by 45% compared to the previous year.

We continued to develop direct deliveries of fruit, from the farms to the stores, bypassing the distribution centres. In 2024, we supplied strawberries, raspberries or blackberries in direct deliveries to almost 1,800 stores. Throughout Poland, we collaborated with 37 bakeries which delivered baked goods directly to our stores.

From 2020 onwards, in response to the challenges of the pandemic, we reduced payment terms to a maximum of 21 days for suppliers with an annual turnover of less than PLN 100 million. In 2024, approximately 260 companies benefited from this form of support - 60 more than the year before.

Previous page

We build responsible relationships

Next page

About the report