Board of Directors’ assessment of compliance with requirements of the Bank of Russia relating to non-financial reporting and ESG factors

Topic Requirement Complied with Section of the Sustainability Report
Anti-corruption Material information on how the Company manages activities to take action against corruption, commercial bribery and bribery of foreign public officials, as well as on incidents within the Company related to corruption, commercial bribery and bribery of foreign public officials Yes Corporate governance
Disclosure of information on activities aimed at addressing corruption, commercial bribery and bribery of foreign public officials, decisions made as part of said activities, management tools used and resources allocated to said activities Yes Corporate governance
Explanation as to the Company’s assessment of the effectiveness of its policy against corruption, commercial bribery and bribery of foreign public officials, measures it takes to prevent, rectify or mitigate the negative impact of said factors, the procedure for monitoring the effectiveness and exchanging information on this matter both within the organisation and with external counterparties Yes Corporate governance
Anti-corruption policy, procedures and standards Yes Corporate governance
Criteria used in assessing corruption risks Yes Corporate governance
Internal control procedures and resources allocated for the purposes of preventing corruption, commercial bribery and bribery of foreign public officials Yes Corporate governance
Share of employees that underwent training on how to address corruption, commercial bribery and bribery of foreign public officials Yes Corporate governance
Using mechanisms of anonymous reporting of potential violations and hotlines on violations of internal policies and procedures and legislative requirements Yes Corporate governance
Number of existing or completed litigations related to corruption and bribery No data available —
Corporate Governance Code recommended by the Bank of Russia for joint-stock companies whose securities have been admitted to trading in organised markets (CGC) Statement of the joint-stock company’s board of directors on compliance with corporate governance principles set out in the Corporate Governance Code, or description of principles and brief explanation of the extent of non-compliance if such principles are not complied with by the joint-stock company or complied with in part Yes CGC compliance appendix to annual reports
Policies and procedures Brief description of the most material aspects of the joint-stock company’s corporate governance model and practices Yes Corporate governance
Description of the methodology that the joint-stock company used to assess compliance with corporate governance principles set out in the Corporate Governance Code Yes CGC compliance appendix to annual reports
Explanation of the main causes, factors and/or circumstances (at all times specific) that prevent the joint-stock company from complying or fully complying with corporate governance principles set out in the Corporate Governance Code Yes CGC compliance appendix to annual reports
Description of corporate governance mechanisms and tools that the joint-stock company uses instead of those recommended by the Corporate Governance Code Yes CGC compliance appendix to annual reports
Planned (expected) actions and activities of the joint-stock company to improve its corporate governance model and practices, with indication of their respective timelines Yes Appendix to annual reports on CGC compliance
Risk management Information on key risks and opportunities related to the Company’s impact on the environment (including climate), social aspects (including human rights) and economy, and on how the Company identifies, assess and managers such risks and opportunities as part of its risk management and internal control system Yes Corporate governance
Information on how key risks and opportunities related to the Company’s impact on the environment (including climate), social aspects (including human rights) and economy are linked to the Company’s operations, products, services, supply chain it is part of, and its relations with counterparties Yes Corporate governance
Information on how ESG factors and key risks and opportunities related to their impacts, as well as approaches used by the Company as regards its impact on the environment, social aspects and economy, can have an impact on the Company’s business model, operations, and key financial indicators YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Material information on key risks and opportunities related to the environment, social aspects and economy irrespective of whether said risks and opportunities arise out of the Company’s decisions and actions or out of external factors. For example, risks and opportunities related to suppliers (contractors or counterparties) Yes Corporate governance
Description of key risks and opportunities, including short, medium and long-term risks and opportunities Yes Corporate governance
Assessment of materiality of physical and transitional climate-related risks, their description and reasons why they are material for the Company YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Information on how key risks and opportunities are taken into account when the Company’s strategy (sustainability strategy) is being developed Yes Corporate governance (Annual Report)
Description of key risks and opportunities related to the environment (first of all climate-related risks and opportunities), social aspects and economy that occurred during the reporting period, changes in approaches and procedures of managing hem, and explanation of the reasons for such changes YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Risk of making deficient products (products of improper quality), information on their potential impact on consumers Yes Corporate governance
Policies adopted for addressing issues related to making deficient products Yes Sustainable sourcing
Response measures taken to settle consumer claims related to deficient products Yes Sustainable sourcing
Customer personal data protection Yes Responsible business
Actual or prevented cases of violations of customer personal data protection and measures, response tools related to materialisation of such risks No violations reported in 2022 —
Risks and opportunities related to interaction with suppliers (contractors, counterparties) as part of the supply chain Yes Corporate governance
Information on risks of losses (for example, in cases of human rights violations, violations of working conditions, or harm to the environment) as part of interaction with suppliers and contractors, and on how the Company manages said risks and rectifies their potential negative impact Yes Corporate governance
Business model

Description of:

1. business environment where the Company operates;

2. organisation of the Company’s activities and its organisational structure;

3. markets that the Company operates in;

4. goals and strategies that the Company is guided by;

5. key trends and factors that can impact the Company’s future development

Yes Company overview Company overview (Annual Report)
Use of key performance indicators to describe the business model, key trends and other aspects of the Company’s operations Yes Company overview Company overview (Annual Report)
Information on the Company’s key products and services and on how they meet the needs and demand of consumers and/or customers Yes Sustainable sourcing
Information on organising the production of products or provision of services and approaches to the same that the Company uses to make sure its business is competitive and robust Yes Sustainable sourcing
Information on the markets where the Company operates and their growth potential Yes In 2022, retail sales in Russia increased by 7.7% in nominal terms YoY and amounted to RUB 42.5 trillion, according to Rosstat. At the same time, food retail sales rose by 13.4% in nominal terms to RUB 21.0 trillion. In 2022, the Russian grocery retail market remained the eighth largest in the world in terms of revenues.
Description of the impact of climate-related risks and opportunities on the Company’s business model and financial planning YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Description of the resilience of the Company’s business model taking into account various climate-related scenarios and various time horizons, including the scenario of holding the increase in temperature below 2°C above pre-industrial levels and scenario of the rise in temperature by more than 2°C above pre-industrial levels YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Description of changes in the Company’s business model aimed at managing physical climate-related risks and transitional climate-related risks, as well as leveraging climate-related opportunities for business growth YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Description of the Company’s dependence on environmental factors, such as water, soil, ecosystem or biodiversity, which are at risk as a result of climate change, and of the impact of the Company’s operations on said factors YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Description of how changes in the Company’s business model designed to prevent or mitigate climate change impacts and/or adapt to climate change can alter the Company’s need for human capital YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Description of how the Company created scenarios used for the assessment of its business model’s resilience YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
KPI Key non-financial performance indicators required to understand the Company’s maturity level, results of its operations, its market positions and impact of its operations on the environment (including climate), social aspects (including human rights) and economy YesThe Report includes strategic targets. Sustainability management
Material topics List of material topics and approaches adopted by the Company to determine them Yes About this Report
Biodiversity Use of hazardous substances and chemicals, biocides Yes Sustainable sourcing
Impact on natural resources and biodiversity and dependence on them Yes Environmental stewardship
Emissions Current volume and intensity of emissions and discharge of other pollutants into the air and water Yes Environmental stewardship
Government Tax policy Yes Corporate governance
Customers Relations with consumers, including consumer satisfaction, affordability of products and services, impact of products on the health and safety of consumers Yes Sustainable sourcing
Climate Description of whether the Company has, and on what levels (board of directors, executive bodies, key management officers, etc.), access to expertise on matters related to the environment and climate (internal resources or external sources of information) No data available —
Description of personnel policies related to the environment and climate, including that provide for investing in development of skills necessary for low-carbon transition, or measures that make sure employees carry out their responsibilities safely in a climate change environment No data available —
Description of whether the Company’s remuneration policy takes into account results of operations related to the environment and climate, including as compared to defined targets, and if yes, how said results are taken into account No data available —
Explanation why the Company has chosen specific goals related to the environment and climate Yes Sustainability management
Description of goals related to absorption or prevention of greenhouse gas emissions if such information is material for the Company given the scale and nature of its operations Not material for the Group —
Information on how the organisational structure and corporate governance framework distributes responsibility for developing, approving, implementing and enforcing specific policies, for example on climate-related matters Yes Sustainability management
Current volumes and intensity (gross and per unit) of greenhouse gas emissions YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Results of implementation of plans and policies aimed at eliminating negative impact on climate and the environment, including plans and policies to reduce greenhouse gas emissions and other pollutants emitted or discharged into air and water, consumption of energy, fuel, water, and waste generation YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
Information on matters related to the climate change impact on the Company’s operations and strategies given the Company’s context and scale and nature of its operations, including probability that negative events materialise based on scenario analysis YesThe Report includes an explanation on the Company’s preparation for an assessment of climate-related risks and opportunities. Environmental stewardship
KPI Key non-financial performance indicators and frameworks that can be helpful to understand ESG factors, risks and opportunities related to said factors given the Company’s context YesThe Report includes strategic targets. Sustainability management
Information on how key non-financial performance indicators are related to other indicators and data used by the Company as part of its corporate governance framework, risk management or assessment of progress against its strategic goals No data available —
Purpose of the introduction of key non-financial performance indicators and description explaining approaches to calculation of quantitative indicators, as well as information on the methodology and approaches the Company relies on in data collection No data available —
Reasons behind the change in the set of key non-financial indicators, and if information and sets of data for previous periods have been revised – description of impacts that can be caused by such revision Yes About this Report
Explanation of factors and causes that the Company believes resulted in material changes in its key non-financial performance indicators in the reporting period, and forecast of their potential change in the future Yes About this Report
Local communities Policy for engaging with local communities Yes Engaging with local communities
The Company’s impact on vulnerable population groups (these may include children and youth, the elderly, people with special needs, people with disabilities, war veterans, internally displaced persons, refugees or returnees, families affected by HIV/AIDS, indigenous peoples and ethnic minorities) Yes Engaging with local communities
Interaction with local communities and authorities, including impact of the Company’s operations on their social and economic development Yes Engaging with local communities
Matters related to dialogue with civil society Yes Engaging with local communities
Waste Current volume and intensity of waste generation and disposal Yes Environmental stewardship
Health and safety Policies for organising workplaces Yes Our employees
Terms of contracts subject to discussion with suppliers and contractors Yes Our employees
Allocation of resources to managing risks related to work-related injuries and occupational diseases, employee awareness raising and training in health and safety, cooperation with local authorities and social partners on said matters Yes Our employees
Personnel Implementation of key declarations, conventions and recommendations of the International Labour Organisation (ILO) Yes Our employees
Gender, age and ethnic diversity, hiring of people with special needs and disabilities Yes Our employees
Employment, labour practices and occupational safety, including measures to prevent work-related injuries Yes Our employees
Relations with trade unions, including respecting the rights of trade unions Yes Our employees
Human capital management, including hiring, career growth, engagement, professional training, education and development of employee skills, remuneration system Yes Our employees
Employee health Yes Our employees
Employees engaged in the Company’s activities associated with a high risk of accidents or occupational diseases Yes Our employees
Number of work-related injuries (including fatalities), types of injuries or occupational diseases Yes Our employees
Total number and percentage of the reporting period’s new employee hires, with a breakdown by age group, gender and region Yes Our employees
Number and percentage of unfilled vacancies for which the Company will be hiring and training unqualified staff No data available —
Employee turnover Yes Our employees
Percentage of employees employed under fixed term and indefinite employment contracts Yes Our employees
Average hours of training per year per employee, with a breakdown by age, region of residence, nationality, etc. Yes Our employees
Share of employees that are a party to collective bargaining agreements, and indicators describing the process of collective bargaining between employees and the employer No data available —
Consultations for employees Yes Our employees
Number of employees with special needs and disabilities Yes Our employees
Gender, ethnic and cultural diversity Yes Our employees
Higher paid management team member to median worker pay ratio No data available —
Policies and procedures Approaches to managing the Company’s key non-financial performance indicators and main goals, and information on how the Company intends to deliver against these goals and plans Yes Sustainability management
Allocation of responsibility in the area of sustainable development among the Company’s governing bodies and members of executive bodies, and information on how allocation of resources can have an impact on the Company’s goals, risk management and expected performance results related to the environment, social aspects and economy Yes Sustainability management
Information on policies and procedures as regards identifying, assessing, monitoring and managing risks or leveraging opportunities for the Company related to ESG factors Yes Corporate governance
Description of the Company’s policies related to the environment and climate, including policy for mitigating climate change impacts or adapting to climate change Yes Environmental stewardship
Description of goals related to the environment and climate that the Company defined as part of its policies, especially on greenhouse gas emissions, and of the alignment of the Company’s goals with national and international goals, including the Paris Agreement Yes Environmental stewardship
Description by the board of directors of the vision and assessment of risks and opportunities related to the environment and climate No data available Environmental stewardship
Description of the roles of the Company’s executive bodies and key managers in assessing and managing risks and opportunities related to the environment and climate, and of approaches used for said allocation of roles No data available —
Policy on corporate social responsibility Yes Sustainability management
Material information on how due diligence process and procedures are integrated into the Company’s operations, and information on decisions made to implement due diligence procedures into the Company’s operations; description of the proposed mechanism as part of said process. In disclosing this information, it is advisable to focus on ways to prevent and rectify the Company’s negative impact on the environment and climate and local communities Yes Sustainability management
Information on how goals are set and progress is measured as part of implementing due diligence policies and setting up due diligence procedures Yes Sustainability management
Key indicators related to quantitative parameters of risks identified as part of due diligence procedures, and information on measures taken to prevent, eliminate or mitigate said risks, and on how the Company improves its due diligence policies and processes in respective areas Yes Sustainability management
Information on any material changes in due diligence policies, process and procedures in the reporting period Yes About this Report
Non-financial information on the Company’s planned and actual performance results in the area of environmental and social aspects and on the maturity of the Company’s corporate governance Yes Sustainability management
Link between financial and non-financial performance indicators, and on how those have been managed for at least three years No data available —
Key non-financial performance indicators that the Company believes to be most helpful in monitoring and assessing progress and ensuring comparability of operations across several companies or sectors in respective matters linked to business goals, key financial performance indicators and targets (indicators or metrics) set out in the Company’s strategy Yes Sustainability management
Information on how the Company’s impact on the environment (climate and ecology) affects its financial indicators, with key financial performance indicators (if possible) No data available —
Marketing and research taking into account environmental and social factors Yes Responsible business
Policy on securing human rights Yes Responsible business
Material information on current and potential impact of the Company’s operations on human rights, including on negative impact on human rights directly related to operational activity, products, services or relations of the Company with its counterparties Yes Responsible business
The Company’s public statement on commitment to respecting and protecting human rights (considered a best practice), potentially as a description of the expectations in the area of human rights that the Company has for its executive bodies, employees, and business partners Yes Responsible business
Information on persons whose rights are affected by the Company’s human rights commitments, for example, rights of children, women, indigenous peoples, racial, ethnic, religious or linguistic minorities, people with special needs, people with disabilities, local communities, small-scale farmers, and workers, including those working under fixed term employment contracts, labour migrants, their families, and workers across the supply chain Yes Responsible business
Material information on policies adopted on due diligence in the area of human rights, as well as on procedures and mechanisms put in place to prevent human rights violations Yes Responsible business
Cases of material violations of human rights related to the Company’s operations Yes Responsible business
Procedures and mechanisms to receive and obtain complaints on human rights violations, to mitigate negative impact on human rights and to secure their legal protection Yes Responsible business
Operations and suppliers whose activities are associated with considerable human rights risks No data available —
Procedures and measures to prevent human trafficking with respect to all forms of exploitation, procedures and measures aimed at preventing forced and child labour and at preventing hazardous working conditions Yes Responsible business
Accessibility of sites, documents and websites for people with special needs and people with disabilities Yes Responsible business
Observance of the right to join trade unions No data available —
Interaction with respective stakeholders Yes Stakeholder Engagement Appendix
Experience and qualification of Board of Directors members in ESG matters No data available —
Regularity and nature of discussions pertaining to sustainable development, ESG factors, risks and opportunities related to the same, at the board of directors meetings and assessment of their importance and due reflection in the Company’s mission, strategy and goals Yes Sustainability management
Dedicated committees under the board of directors set up to consider sustainable development and ESG matters and risks and opportunities related to the same Yes Sustainability management
Allocation of responsibility in the area of sustainable development among the Company’s executive bodies and their accountability in these matters Yes Sustainability management
Taking into account sustainable development and ESG factors in creating frameworks for risk management, internal controls and internal audit Yes Sustainability management
Taking into account sustainable development and ESG factors in creating and adjusting the framework for remunerating members of the Company’s governing bodies No data available —
Taking into account sustainable development and ESG factors in the Company’s information policy No data available —
Sustainability strategy Information on the Company’s strategy (sustainability strategy) in the context of, and as related to, the Company’s planned contribution to the SDGs, Paris Agreement, and national goals set out in government strategic planning documents, and taking into account ESG factors and risks and opportunities related to the same in the Company’s strategy (sustainability strategy) Yes Sustainability management
Strategic approaches and targets adopted as part of implementing the sustainability policy Yes Sustainability management
Description of the priority SDGs, goals of the Paris Agreement, and strategic national goals that the Company plans to contribute to Yes Sustainability management
The Company’s strategic goals which, when achieved, will ensure the Company’s contribution to global (e.g. fighting climate change) and local national, regional and municipal goals related to the SDGs or goals of the Paris Agreement Yes Sustainability management
International treaties and national commitments relating to the environment (including climate), social impacts and economy that apply to the Company’s operations Yes Sustainability management
Information on current progress against the Company’s strategic goals related to priority SDGs, goals of the Paris Agreement and strategic national goals Yes Sustainability management
Information on all SDGs that investors and other stakeholders may expect as part of the disclosure given the Company’s context, and explanation as to why certain SDGs are not material or priority for the Company Partially Sustainability management
Environment Information on actual and potential impact of the Company’s operations on the environment, including climate, and information on how current and potential environmental issues, approaches to tackle them, and changes in the area of environment and climate can have an impact on the Company’s development, performance and results or its market position Yes Environmental stewardship
Disclosure of material information on prevention of and/or fighting pollution, including information on direct and indirect greenhouse gas emissions into the air, including direct emissions related to the Company’s operations and indirect emissions across the value chain Yes Environmental stewardship
Information on using and protecting natural resources (for example, water and land) and related biodiversity protection Yes Environmental stewardship
Information on environmental impact resulting from transporting, using and disposing of products Yes Environmental stewardship
Information on development of green or more environmentally friendly products and services Yes Environmental stewardship
Information on the Company’s environmental violations and liability Yes Environmental stewardship
Information on the Company’s financing of environmental projects of other organisations Yes Environmental stewardship
Emissions of other (i.e. other than greenhouse gases) pollutants in absolute terms Yes Environmental stewardship
Description of the Company’s capacities created for the absorption of carbon dioxide Not material for the Group —
Metrics showing the impact on the environment and biodiversity, description of the Company’s dependence on factors related to the environment and biodiversity Yes Environmental stewardship
Metrics of waste generation and metrics related to managing waste generation and disposal (for example, speed of reuse and recycling) Yes Environmental stewardship
Environmental properties of the Company’s products and services Yes Environmental stewardship
Energy efficiency Description of impact on the environment resulting from the use of electricity and heat Yes Environmental stewardship
Energy metrics of the Company’s operations Yes Environmental stewardship

Metrics showing consumption/generation of energy from renewable/non-renewable sources, including:

  • total volume of energy consumed/generated from renewable/non-renewable sources;
  • energy intensity of the Company’s operations;
  • energy efficiency targets;
  • targets for the consumption and/or generation of renewable energy
Yes Environmental stewardship
Climate

Greenhouse gas emissions in tonnes of carbon dioxide equivalent, including:

  • direct (Scope 1) emissions from sources that are owned or controlled by the Company;
  • energy indirect (Scope 2) emissions from the generation of purchased electricity or heat;
  • other indirect (Scope 3) emissions (excluding energy indirect emissions) that occur in the value chain of the Company, including both upstream and downstream emissions
Partially Environmental stewardship
Intensity of greenhouse gas emissions in absolute terms Yes Environmental stewardship
Supply chain Information on the Company’s interaction with suppliers (contractors, counterparties), consumers and customers across the supply chain on matters related to the environment and climate, with explanation of approaches used as part of said interaction and aimed at mitigating climate change impacts and/or adapting to climate change Yes Environmental stewardship
Information on the supply chain, including description of its key components related to the Company’s operations, key brands, and products and services Yes Sustainable sourcing
Types of suppliers (contractors, counterparties) involved in the supply chain Yes Sustainable sourcing
Total number of suppliers (contractors, counterparties) that the Company works with, and estimated number of suppliers (contractors, counterparties) across the entire supply chain Yes Sustainable sourcing
Geographic location of suppliers (contractors, counterparties) Yes Sustainable sourcing
Industry-specific properties of the supply chain, for example labour intensity across the supply chain No data available —
Material changes that occurred in the supply chain (changes in the geographic location of the suppliers (contractors, counterparties), supply chain structure, relations with suppliers (contractors, counterparties), including their selection and discontinuation of cooperation) No data available —
Material information in matters related to the supply chain that have a significant impact on the Company’s development, efficiency, and market positions. These may include information required for a general understanding of the supply chain that the Company is part of, and the extent to which environmental, social and governance matters are taken into account in supply chain management No data available —

Monitoring of activities of suppliers (contractors, counterparties) related to:

  • labour practices and respect of labour rights, including prevention of child and forced labour;
  • hazardous working conditions (including safety of buildings, protective equipment, and employee health);
  • human rights;
  • greenhouse gas emissions and environmental pollution;
  • deforestation and other risks related to biodiversity reduction
Yes Sustainable sourcing
Monitoring of the Company’s impacts on suppliers (contractors, counterparties), for example, the Company’s impact on terms and average payment periods under contracts Yes Sustainable sourcing
Energy efficiency Description of energy-related goals the Company defined as part of its policies Yes Environmental stewardship
Current volume and intensity of energy, fuel and water consumption Yes Environmental stewardship
Policies and procedures International standards used as the basis for non-financial disclosure Yes About this Report
External assessment Opinion or report based on an independent external assessment in the form of professional assurance containing a conclusion on non-financial disclosure No data available —
Composition of non-financial disclosure covered by an independent external assessment, and information on standards used as the basis for said assessment No data available —
Information on persons/entities performing an independent external assessment of financial disclosure, and on principles and criteria to select such persons/entities No data available —
Grounds for an external assessment of non-financial disclosure to be deemed independent, such as analysis of the Company’s relations with respective persons/entities, including the remuneration they received from the Company for other services No data available —