Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions generated by refrigerant gases by 45% to 207,133 tonnes.
• Achieved an A- rating from the Carbon Disclosure Project- Climate Change survey.
• Implemented LED lighting in over 400 establishments in Spain and 7 warehouses, resulting in energy savings.
• Implemented LED lighting in all stores in China.
• Reduced consumption of non-recycled paper by 93% in Portugal (1.33 million kilos).
• Reduced plastic wrap consumption in warehouses by 6.5%.

Social Achievements

• Not disclosed

Governance Achievements

• Revised and approved environmental policy in 2016 by the Board of Directors, adapting to new regulatory and Good Governance requirements.
• Allocated more than 6 million euros to environmental investments.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Part of the 2015 Sustainable Development Report submitted for external verification.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Highest rating from Carbon Disclosure Project- Climate Change survey in 2015.

Environmental Metrics

ESG Focus Areas

• Governance
• Gender equality
• Ethics and compliance
• Health and safety
• Transparency and investor relations
• Food quality and safety
• Tax practices
• Franchisee relations
• Development of human capital
• Digital transformation
• Employment practices
• Eco-efficiency
• Food waste
• Consumer information and protection

Environmental Achievements

• Reduced food waste in Spain by almost 2,000 tonnes in 2020 (in addition to the 7,000 tonnes reduced in 2019).
• At 1 January 2021 no traditional plastic bags are used in any stores in Spain.
• A zero waste pilot project was launched at one of the logistics platforms.
• Group's carbon footprint decreased by nearly 8%.

Social Achievements

• Launched DIAContribuye2020 program, donating over 1,000,000 kilos of essential items.
• Over 60 people hired from vulnerable collectives in Spain.
• Improved online sales, doubling in 2020.

Governance Achievements

• Approved a specific policy on Conflict of Interest Management and Related-Party Transactions.
• Improved the Company’s regulatory system by creating a stable framework.
• Approved twenty-nine Internal Compulsory Regulations (ICR)s that cover key risks.
• 17,733 employees received training in anti-corruption policies and the Ethics Code.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting operations, employee health, and supply chains.
• High employee turnover.
• Increased online demand.
• Ensuring the sustainability of raw materials and deforestation.
• Inadequate compliance with environmental legislation.
• Risk of natural disasters.

Mitigation Strategies

• Implemented health protection measures in stores, warehouses, and offices.
• Strengthened supply chains and online services.
• Launched DIAContribuye2020 program.
• Improved flexible working and work-life balance practices.
• Reduced the environmental impact of using plastic bags.
• Improved waste management practices.
• Implemented a Risk Map and defined a scorecard and controls to monitor climate risks.

Supply Chain Management

Supplier Audits: 8,872 audits performed in 2020

Responsible Procurement

• Demanding food safety and quality criteria.
• IFS or BRC certificates for suppliers in Spain and Portugal.
• International Sanctions Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather phenomenon affecting suppliers' production.

Transition Risks

• Emerging regulation leading to increased legal pressure.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: IFS, BRC

Third-party Assurance: PricewaterhouseCoopers Auditores, S.L.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewed own-brand products
• Compostable plastic bags

Awards & Recognition

• A rating from the Carbon Disclosure Project

Environmental Metrics

ESG Focus Areas

• Food safety
• Nutritional profile of private-label goods
• Access to a quality diet
• Sustainability of raw materials
• Human rights management in the supply chain
• Team and employee development
• Employee health and safety
• Diversity and inclusion in employment
• Franchisee relations
• Supplier relations
• Sustainable packaging
• Waste management and food waste
• Climate change
• Business ethics
• Supporting the community

Environmental Achievements

• Elimination of nearly 8 million kilograms of virgin plastic from Dia branded product packaging.
• Proportion of waste sent to landfill decreased over 30%.
• Proportion of food waste reduced by around 17% in Spain and Portugal.

Social Achievements

• Improvement in overall satisfaction of main stakeholders (customers, employees, franchisees, and suppliers).
• Expanded understanding of barriers facing poorest groups in accessing healthy diet.
• Qualitative and quantitative improvement in proactive management of diversity and inclusion of people at risk of exclusion into the labor market.
• 292 people from vulnerable groups joined the team in Spain and Portugal.
• 578 people from vulnerable groups did work experience in stores and warehouses.

Governance Achievements

• Implementation of the internal control system for non-financial information (SCIINF).
• Separation of the positions of Chair of the Board of Directors and Global CEO.

Climate Goals & Targets

Environmental Challenges

• Economic instability (high inflation rates affecting consumer income and operating costs).
• Highly competitive market.
• Abundance of new health, environmental, and trade regulatory requirements.
• Difficulty in responding to changes in customer attitudes and purchasing preferences.
• International market volatility (Brazil and Argentina).

Mitigation Strategies

• Development of a new store model.
• Launch of over 2,700 private-label products and ready meal options.
• New franchise model based on long-term, win-win relations.
• New delivery methods for the online channel.
• Renewal of leadership team.

Supply Chain Management

Supplier Audits: 9048

Responsible Procurement

• Food safety control in product development.
• Food safety control of products and processes from reception of goods until they reach the consumer.
• Policy on Respect for Human Rights in the supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions affecting suppliers' productivity.
• Rising average temperatures increasing costs of refrigeration and air conditioning.

Transition Risks

• Development of new climate change legislation.
• Corporate climate change strategy influencing investor and customer decisions.

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15

Initiatives contribute to these goals through food safety, nutritional improvements, gender equality, decent work, reduced inequalities, responsible production and consumption, climate action, and life on land.

Sustainable Products & Innovation

• Zero Waste range of personal care and hygiene products.

Environmental Metrics

ESG Focus Areas

• Food safety
• Nutritional quality of private-label products
• Accessibility of food
• Sustainability of raw materials
• Human rights management in the supply chain
• Development of teams and employees
• Employees’ health and safety
• Diversity and inclusion in employment
• Franchisee relations
• Supplier relations
• Packaging
• Waste management and food waste
• Climate change
• Business ethics
• Support for the community

Environmental Achievements

• Significant reductions in both the proportion of waste sent to landfill and the proportion of food waste.
• Continued progress in eliminating virgin plastic in DIA brand product packaging.
• Continued progress with the Plan Renove in stores, replacing refrigerant gases with more sustainable alternatives.
• Employee training and awareness-raising on the Dia Group’s Internal Energy Efficiency Manual.
• Electrification and modernisation of the logistics fleet.

Social Achievements

• Improved overall employee satisfaction at a Group level in all four countries.
• Hiring 1,000 people from vulnerable groups in Spain, Portugal, and Brazil.
• Provided 325,274 hours of training.
• Launched a Leadership Plan aimed at developing skills and generating a positive working climate.
• Improved franchisee satisfaction score of 2.6 points.

Governance Achievements

• Updated Corporate Business Risks Policy.
• Improved average resolution time for whistleblowing reports to 53.16 days.
• No complaints of corruption confirmed.
• Four cases of discrimination or harassment confirmed, leading to dismissals.

Climate Goals & Targets

Environmental Challenges

• Economic instability and high inflation affecting consumer income and operating costs.
• Highly competitive environment.
• Proliferation of new health, environmental, and trade regulatory requirements.
• Difficulty in responding to changes in customer attitudes and purchasing preferences.
• Volatility of international markets (Brazil and Argentina).

Mitigation Strategies

• Transformation of the network to a new store model.
• Boosting e-commerce with improved delivery options and partnerships.
• Development of an improved franchise model.
• Focus on high-quality private-label products at competitive prices.
• Implementation of energy efficiency measures, sustainable technological solutions, and transport optimization.

Supply Chain Management

Supplier Audits: 5,800 audits

Responsible Procurement

• Stringent quality and food safety criteria
• Human Rights Policy
• ESG criteria (deforestation priority) into procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions affecting suppliers’ productivity
• Chronic risks (rising temperatures, reduced water availability) affecting supply chain
• Increased costs of refrigeration and air conditioning

Transition Risks

• Emerging climate change legislation
• Reputational and market risks

Opportunities

• Energy efficiency improvements
• Sustainable technological solutions

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: MSC, RSPO, Rainforest Alliance, FSC, Zero Waste

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Refill products
• Products with recycled plastic packaging
• Products with sustainable palm oil

Awards & Recognition

• Mares Para Siempre award
• Flavor of the Year 2023 award
• Product of the Year 2024 award
• Producto do Ano 2023 award
• Sabor do Ano 2023 award