Statement of continued support

January, 15th, 2021

To our stakeholders:

I am pleased to confirm that METRO Cash & Carry Ukraine reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Tino Zeiske,
CEO METRO Cash & Carry Ukraine

Commitments and management systems:
- OECD Guidelines for Multinational Enterprises, embedded in a variety of corporate guidelines
- International standards throughout the supply chain (amfori BSCI, Sedex SMETA, RSPO etc.)
- METRO Business Principles
- Code of Conduct for Business Partners
- METRO Human Rights Guidelines in its own business operations and entire supply chain
- METRO Anti-discrimination tenet
- Policy social standards for all own brand suppliers producing in risk countries
- Social standards clause in supplier contracts
- METRO guidelines on fair working conditions and social partnership

Measures 2019/20:
- Continuous auditing of non-food, near-food and food producers according to Amfori Business Social Compliance Initiative (Amfori BSCI), sedex audit according to SMETA or equivalent social standard systems. In accordance with a risk approach, this applies to all producers in defined risk countries (according to Amfori BSCI assessment) in METRO Sourcing International (MSI) and METRO Food Sourcing (MFS) have imported goods manufactured, as well as to all producers who produce private label or own-import articles for our sales divisions. The national companies were trained in the roll-out for near-food and food suppliers (valid since June 1, 2019) and are to be gradually integrated into the process over the next 1-2 years.
- Training of suppliers in the reporting year on aspects of the implementation of human rights. This was especially important during the Covid-19 crisis, as it allowed us to compensate for the absence of Amfori BSCI and Sedex audits by taking bridging measures: we offered support to producers with questionnaires, instructions and discussions, fulfilling our duty of care to give weight to respect for human rights even without audits.
- Training for employees in key positions, especially on the subject of forced labor. The training content is based on our commitments to the United Nations (UN) Universal Declaration of Human Rights, the International Human Rights Charter, the OECD Guidelines for Multinational Enterprises, the UN Guidelines on Business and Human Rights, as well as the Declaration on Fundamental Principles and Rights at Work of the International Labor Organization (ILO).
- Participation in the benchmarking process of the Social Standards Compliance Initiative of the Consumer Goods Forum.
- Auditing of the METRO national companies for compliance with the guidelines on fair working conditions and social partnership (FWC & SP).
-Various events organized by the employee network “Women in Trade (WiT)”, which are designed to help increase the proportion of women in management positions on a sustainable basis, promote internal and external dialog and create better conditions for women in the Group. 6 WiT country networks are active in France, Portugal, Japan, Pakistan, Germany and Bulgaria. The number of network members at the Düsseldorf location is now around 600.
- In the process of revising the strategy and due the positive development in terms of achieving the goal of increasing the share of women in management positions at METRO AG and METRO Wholesale, we have shortened the target achievement date of the current gender targets set by the Management Board on 26 July 2017 to
30 September 2020 (originally: 30 June 2022) and set new targets for September 2025. Until September 2025, METRO AG aims to have 25% women in the 1st management level below the Management Board and 40% in the 2nd management level below the Management Board. In addition, we have again voluntarily set ourselves a target for the proportion of women in management positions in our wholesale business. Until September 2025 the proportion of women in management positions on levels 1 to 3 (including store managers) should be 30% worldwide.
- The METRO PRIDE employee network for lesbians, gays, bisexuals, transgender and intersexuals aims to raise awareness of the issues of sexual orientation and identity. In the fiscal year, the network was involved, among other things, in the initiative to amend the guideline “Hemotherapy for more non-discriminatory blood donation in Germany”.
- Involvement in the LEAD (Leading Executives Advancing Diversity) network, where METRO is a member since 2016. The non-profit network on European level is working for more women in the retail and consumer goods industry and to promote them in their careers in order to increase the proportion of women in management positions in these industries.
- METRO offers all employees e-training on the topic of “Diversity & Inclusion”. During the fiscal year, 888 participants completed the training. The aim of the training is to ensure a common understanding of diversity & inclusion in general and at METRO. In addition, the eTraining highlights the importance of the topic in the business environment within METRO.
- METRO organizes a discussion round, on the occasion of the German Diversity Day, in the METRO internal MORE Stage format.

Achievements 2019/20:
- By 30 September 2020, 675 of 863 active private label non-food producers and 60 of 109 corresponding food/near-food producers had been audited. Of these, 99% (665) of non-food producers and 100% (60) of food/near-food producers passed the audit. In the reporting year METRO Sourcing International, trained 100 producers with 208 participants on the subject of human rights. On the occasion of the Covid-19 pandemic, an additional 192 questionnaires and personal interviews were sent out and evaluated on the subject of economic, but also social challenges in connection with the pandemic, and appropriate measures, like extended payment terms, were agreed.
- Since fiscal year 2016/17, detailed audits on compliance with METRO’s FWC & SP principles have taken place at 15 national companies (head offices, stores and
distribution centers) (Pakistan, Bulgaria, Japan, Hungary, Italy, Serbia, India, Slovakia, Moldova, Spain, Russia, Croatia, Kazakhstan, Portugal and France). This audit based on the UN Guiding Principles on Business and Human Rights and, in addition to the 7 global METRO FWC & SP Principles, also covers, among other things, employee data protection and the quality of employee involvement and communication. Due to Covid-19, no on-site audits were carried out in the reporting period. Instead, the audit procedure was changed and a survey on the FWC & SP Principles was conducted from May to July 2020. Thereafter, limited audits were conducted at 5 selected METRO companies. The aim was to assess the current status of implementation of the FWC & SP Principles in key units and to make recommendations for improving the FWC & SP process.
- The proportion of women at management levels 1-3 METRO-wide was 25% at the reporting date on September 30, 2020. Ms. Andrea Euenheim has been a member of the Management Board since November 2019, which means that the target of having at least one woman on the Management Board as of June 30, 2022, has already been reached ahead of schedule. In addition, the target for June 30, 2022, of a 35% share of women at the 2nd management level below the Executive Board was already achieved at September 30, 2020, with a proportion of 36%.
- Various activities of the employee network WiT:
- Implementation of the annual WiT conference with 80 participants in different workshops and discussion formats
- Monthly digital Lunch & Learn Meetings with up to 20 participants
- 24 participants in the training “The Brand ICH”
- Various activities of the employee network METRO PRIDE:
2 METRO employees are represented on the TOP 100 OUT EXECUTIVES list 2019, 1 METRO employee takes second place on the TOP 20 FUTURE LEADER list 2019 This is a joint project of the PROUT AT WORK Foundation and UHLALA GmbH. The project aims to make LGBT+ visible as role models.
- METRO, together with PROUT-AT-WORK and 12 other companies, publishes a position paper on easing discriminatory restrictions on blood donations for
homosexuals, bisexual men and trans*People.
- METRO is founding partner of We stay Pride. The LGBT+ Employer Excellence Program of the UHLALA Group supports companies in living diversity all year round.
- The 12-month program bundles the offers and brands of the UHLALA Group for member companies and helps to firmly anchor LGBT+ diversity in the corporate
culture. The program makes it possible to make diversity and successes within and outside the partner companies tangible and visible.
- Olaf Koch, CEO METRO AG, signed the CEO Pledge of the LEAD network. With his signature METRO commits itself to promote gender equality and inclusion in the retail and consumer goods industry (CPG).

Commitments and management systems:
- Key labour standards of the ILO (International Labour Organization), embedded in a variety of corporate guidelines
- OECD Guidelines for Multinational Enterprises, embedded in a variety of corporate guidelines
- International standards throughout the supply chain (amfori BSCI, Sedex SMETA, RSPO etc.)
- METRO Business Principles
- Code of Conduct for Business Partners
- METRO Anti-discrimination tenet
- Policy social standards for all own brand suppliers producing in risk countries
- Social standards clause in supplier contracts
- The Accord on Fire and Building Safety in Bangladesh
- METRO guidelines on fair working conditions and social partnership
- The Consumer Goods Forum Resolution on Forced Labour
- The Consumer Goods Forum Resolution on Health & Wellness

Measures 2019/20:
- Continuous auditing of non-food, near-food and food producers according to Amfori Business Social Compliance Initiative (Amfori BSCI), sedex audit according to SMETA or equivalent social standard systems. In accordance with a risk approach, this applies to all producers in defined risk countries (according to Amfori BSCI assessment) in METRO
- Sourcing International (MSI) and METRO Food Sourcing (MFS) have imported goods manufactured, as well as to all producers who produce private label or own-import articles for our sales divisions. The national companies were trained in the roll-out for near-food and food suppliers (valid since June 1, 2019) and are to be gradually integrated into the process over the next 1-2 years.
- Training of suppliers in the reporting year on aspects of the implementation of fair working conditions. This was especially important during the Covid-19 crisis, as it allowed us to compensate for the absence of Amfori BSCI and Sedex audits by taking bridging measures: we offered support to producers with questionnaires, instructions and discussions, fulfilling our duty of care to give weight to respect for human rights even without audits.
- Training for employees in key positions, especially on the subject of forced labor. The training content is based on our commitments to the United Nations (UN) Universal
- Guidelines for Multinational Enterprises, the UN Guidelines on Business and the Declaration on Fundamental Principles and Rights at Work of the International Labor Organization (ILO).
- Participation in the benchmarking process of the Social Standards Compliance Initiative of the Consumer Goods Forum.
- METRO is still a member of the agreement on fire protection and building security in Bangladesh.
- Auditing of the METRO national companies for compliance with the guidelines on fair working conditions and social partnership (FWC & SP).
- Developing of various occupational safety measures.
- METRO maintains a constant exchange with works councils and unions, nationally and internationally. Plenary meetings are held once a year with a training event for all employee representatives of the Euro Forum and up to three times a year with the steering committee of the METRO Euro Forum, our European Works Council and
management representatives. There is also a regular social dialogue with the international trade union organization UNI Global Commerce at a global level, where, among other things, the commitment to fair working conditions and social partnership is discussed.

Achievements 2019/20:
- By 30 September 2020, 675 of 863 active private label non-food producers and 60 of 109 corresponding food/near-food producers had been audited. Of these, 99% (665) of non-food producers and 100% (60) of food/near-food producers passed the audit.
- In the reporting year METRO Sourcing International, trained 100 producers with 208 participants on the subject of fair working conditions. On the occasion of the Covid-19 pandemic, an additional 192 questionnaires and personal interviews were sent out and evaluated on the subject of economic, but also social challenges in connection with the pandemic, and appropriate measures, like extended payment terms, were agreed.
- Training course for employees in key positions, especially on the subject of forced labor: since the start of the project in fiscal year 2017/18, the national companies in Turkey, Pakistan, Ukraine and Bulgaria have taken part, and in fiscal year 2019/20 Spain, Serbia, Croatia and Myanmar.
- As of September 30, 2020, the factories reported in the agreement on fire protection and building security in Bangladesh that produce for METRO Sourcing International and/or METRO national companies have completed 95% of their points for improvement.
- Since fiscal year 2016/17, detailed audits on compliance with METRO’s FWC & SP principles have taken place at 15 national companies (head offices, stores and
distribution centers) (Pakistan, Bulgaria, Japan, Hungary, Italy, Serbia, India, Slovakia, Moldova, Spain, Russia, Croatia, Kazakhstan, Portugal and France). This audit based on the UN Guiding Principles on Business and Human Rights and, in addition to the 7 global METRO FWC & SP Principles, also covers, among other things, employee data protection and the quality of employee involvement and communication. Due to Covid-19, no on-site audits were carried out in the reporting period. Instead, the audit procedure was changed and a survey on the FWC & SP Principles was conducted from May to July 2020. Thereafter, limited audits were conducted at 5 selected METRO companies. The aim was to assess the current status of implementation of the FWC & SP Principles in key units and to make recommendations for improving the FWC & SP process.
- Approval of the new METRO Group-wide Operational Safety Management System (OSMS) OSMS guidelines (approved by Management Board on 8 September 2020) and the OSMS manual (publication at the end of calendar year 2020). The guideline structures the safety environment of METRO in accordance with ISO 45001
requirements (“Occupational Safety Management Systems”). It was developed to establish global guidelines and processes for operational safety management in the
company and provides an overarching structure, basic text and common terms with core definitions. It serves as a framework to enable METRO units to effectively manage operational safety. The handbook will support the units in developing and implementing an effective OSMS. It provides practical tools for processes and procedures involved in the development, implementation and maturation of operational safety management systems and provides information on how the operational safety management system can be used to improve the safety, efficiency and effectiveness of the unit additional services to increase occupational safety:
- Training and information campaigns to reduce safety incidents
- Implementation of the annual health and safety Certification of METRO Ukraine according to ISO 45001
- Developing a procedure for managing contractors in Makro Belgium
- Establishing the “golden safety rules” in METRO France
- Implementation of the annual WiT conference with 80 participants in different workshops and discussion formats
Monthly digital Lunch & Learn Meetings with up to 20 participants

Commitments and management systems:
- Purchasing policy for sustainable procurement, along with specific purchasing guidelines for fish and seafood, meat, caged eggs, palm oil, paper and wood, soy,
packaging and disposable plastic.
- Use of international standards along the supply chain (GlobalG.A.P., IFS)
- METRO Environmental guideline
- METRO Water Policy
- Energy management systems according to ISO 50001
- METRO climate protection target: reducing greenhouse gas emissions of the Scope 1 and Scope 2 CO2 emissions by 60% per m2 of selling and delivery space by 2030 compared to 2011 and of absolute Scope 3 CO2 emissions by 15% by 2030 compared to 2018
- Company car guideline with incentive system for more fuel-efficient vehicles “EV100”(electric vehicle joining commitment) Commitment
- The Consumer Goods Forum Resolution on Deforestation
- The Consumer Goods Forum Resolution on Sustainable Refrigeration
- The Consumer Goods Forum Resolution on Food Waste
- World Ressource Institute 10x20x30 Commitment
- Membership in the Roundtable on Sustainable Palm Oil (RSPO)
- Membership in the Palm Oil Transparency Coalition (POTC)
- Membership in the Round Table on Responsible Soy (RTRS)
- Membership in the Retailer Cocoa Coalition
- Membership in the Global Sustainable Seafood Initiative (GSSI)
- Membership in the Global Tuna Alliance (GTA)
- Signing of the Tuna 2020 Traceability Declaration
- Signing of the Cerrado Manifesto Statement of Support
- Signing of the Ellen MacArthur New Plastics Economy Global Commitment

Measures 2019/20:
- Implementing the general buying policy for sustainable procurement and the specific buying guidelines for fish and seafood, meat, caged eggs, palm oil, paper and wood, soy, packaging and disposable plastic as well for the resulting range of certified products or products with enhanced sustainability performance
- Enhanced impact analysis in METRO Bulgaria with focus on the effects of local products on environment and society
- Measures for behavioural change (Energy Awareness Programme), investment in energy efficiency and renewable energies (Energy-Saving Programme), changeover of refrigeration systems to natural refrigerants (F-Gas Exit Programme)
- Recertification and annual check of energy management systems in accordance with ISO 50001 and the environmental management system ISO 14001
- Engagement with various stakeholders to combat food waste Recovery of resources by recycling
- Transparent public reporting on climate change, water and forest via the CDP climate change programme, the CDP water programme and the CDP forest programme
- Participation in the committees Global Tuna Alliance (GTA) und Global Sustainable Seafood Initiative (GSSI)
- Participation in the Biodiversity Guidance Navigation Tool (accompanying the Natural Capital Protocol) in cooperation with the Cambridge Conservation Initiative (CCI) and the Capitals Coalition

Achievement 2019/20:
- Extending the functionalities of the inter-branch traceability system to combat illegal fishing with more detailed information on the product, production and suppliers, e.g. information on the composition of feed for aquaculture products, average nutritional values and display of certificates Conversion of suppliers of vacuum packed meat and carcasses in METRO Turkey to the GS1-128 barcode label system to present the expiration date, batch number and ear-tag number on the invoice to the customers
- Strengthen local suppliers and marketing of organic products e.g. in METRO Moldovaand METRO Bulgaria by communication campaigns Reduce greenhouse gas emissions per m2 sales and delivery area by 34.3% compared to 2011
- Reduce greenhouse gas emissions from refrigerant losses per m2 sales and delivery area by 24.4% compared to 2011
- Reduce electricity consumption per m2 sales and delivery area by 7.9% compared to 2011
- Investments of € 5.1 million in fiscal year 2019/20, among other within the framework of the Energy Saving Program. Thereby we will save approx. 1.4 million € annually in future energy costs
- Implementation of the first transcritical refrigeration systems in Slovakia and in further projects in Germany, France, Italy, Belgium and Romania
- Replacement of the last CFC systems by natural refrigerants in all markets in Russia
- Installation of 14 additional photovoltaic systems in France, Belgium, Bulgaria, Austria, India and Pakistan, with a total additional capacity of 7,086 kWp
- Establish 460 charging stations for electric vehicles for METRO customers. 170 employees at the Düsseldorf campus already use electric vehicles as company cars, whose emissions are offset by certificates for hydroelectric power systems.
- Certification of all METRO locations in Germany until 20 August 2021 and France until 29 April 2021 according to the energy management system ISO 50001
- Certification of all METRO Ukraine stores according to the environmental management system ISO 14001
- Cooperation in 22 METRO countries with food banks and social institutions to avoid food waste in the markets including our restaurants and warehouses
- Cooperation or initiating cooperation in 9 METRO countries with Too Good To Go (TGTG) to reduce food waste in our own operations (wholesale store and restaurant) together with our customers. In the 17 Dutch stores, were sold 46,891 TGTG bags between 1 October 2019 and 30 September 2020 and saving 117,227 kg CO2
- Cooperation with 20 of METRO’s most important business partners as part of the “10x20x30” initiative, working together to reduce food waste along the supply chain
- With the implementation of a digital platform, developed by our partner Whole Surplus,
- METRO Turkey now has a basis methodology for systematically measuring and managaing of food waste in its own business operations while reducing food waste.
- In the year 2019, 30 METRO wholesale stores in Turkey recorded 5,293 tons of food waste. Of this, 1,247 tons were delivered to animal shelters as animal feed, 3,870 tons were disposed of at landfills and 163.5 tons were donated via the Turkish food bank organization. Between January and June 2020, 2,458 tons of food waste were registered, 654 tons of which were delivered to animal shelters as animal feed, 1,674 tons were disposed of in landfills and 97.7 tons were donated through the Turkish food bank organization.
- Establishment of 9 waste collection points in METRO Ukraine stores where polyethylene (PET) bottles, glass bottles, aluminum cans, waste paper and Tetra Pak packages are collected and handed over for recycling. On average 100–500 people use the waste collection points per month and each person disposes of 2 to 10 kilograms of secondary raw materials. In this way about 12 tons of secondary raw materials are collected every month.
- Engagement of 170 suppliers in the CDP supply chain program for water, climate change and forests with up to 59% return rate.
- Reduce of water consumption per m2 of sales and delivery area by –15% compared to 2011, and by under –6% compared to the previous year
- Participation at the publication of the GDST (Global Dialogue on Seafood Traceability) Traceability Standard 1.0
- Participation in various international conferences on the topic of Tuna Traceability
- Declaration and transparency in the supply chain

Commitments and management systems:
- OECD Guidelines for multinational Enterprises, embedded in a variety of corporate guidelines
Compliance Management System according to the audit standard 980 of the Institute of Auditors (IdW PS980)
- METRO Business Principles
- METRO Anti-corruption guideline
- METRO Consultant guidelines
- Digital due diligence process for business partners (risk-based)

Measures 2019/20:
- Compliance communication in various – internal and external – formats to inform employees and third parties outside the company, including the METRO social network platform
- Continuous implementation of the anti-corruption policy in day-to-day business
- The IT tool CDDS (Compliance Due Diligence Solution) for digital business partner auditing has been rolled out and almost completely implemented company wide.
- For high-risk business partners, an extended due diligence assessment is planned, which will include the auditing of external databases.
- Membership and participation in the Alliance for Integrity, an anti-corruption initiative of the German Federal Ministry for Economic Cooperation and Development and the United Nations Global Compact

Achievements 2019/20:
- Examples of internal communication measures:
- Compliance training on anti-corruption in various group-companies in central functions and in sales, partly as e-training
- Compliance-Talks
- Compliance presence on METRO’s social network
- Communication campaign on the subject Speak-up (e.g. tissue boxes & posters)
- Tones from the top in various group-companies on the content of the anti-corruption policy (e.g. acceptance of gifts)
- Examples of external communication measures
- Business guidelines on METRO’s websites – with access to the Compliance Reporting System
- Code of Conduct for business partners on the METRO websites
- Anti-corruption clause applied in external contracts, graded according to the risk of the business partner
- Compliance Risk Workshops in various group-companies (depending on the level of risk) to identify corruption risks and compliance with guidelines Workshops in almost all METRO companies to simplify and ensure the use of the digital tool (CDDS) company-wide, including the introduction of monitoring at corporate level of the reported cases