Statement of continued support

January, 12th, 2022

To our stakeholders:

I am pleased to confirm that METRO 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,

Olena Vdovychenko,
CEO METRO Ukraine

- 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;

- 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. This applies according to a risk approach to all producers of certain typically human rights-critical food categories and industries as well as producers in defined risk countries (based on the Amfori BSCI assessment) where METRO SOURCING International (MSI) and METRO Food Sourcing (MFS) have imported goods manufactured, as well as to all above-mentioned risky producers who manufacture private label or own import articles for our sales divisions. The country organizations will be trained in the roll-out for near-food and food suppliers (valid since June 1, 2019) and gradually integrated into the process.
- Conducting an initial survey specifically on the topic of living wage through METRO SOURCING International (MSI).
- In addition to its focus on social issues, MSI began using a self-assessment questionnaire to assess its producers’ compliance with environmental requirements
during the fiscal year.
- In the course of the fiscal year, the technical implementation was developed for defining the Code of Conduct as a “minimum requirement” and integrating it as a mandatory document in the new METRO Supplier Portal. After the function has gone live, all suppliers who have a business relationship with METRO will be able to read and agree to it.
- Embedding the catalog of criteria for our social standard process in the food own brand manual of the purchasing company European Food Sourcing (EFS). This
strengthens the process so that, from the time the manual comes into force (October 1, 2021), all requirements for demonstrating human rights compliance are already in place at the time of tendering. The relevant documents must be available at the time of listing.
- Various events organized by the Women in Trade (WiT) employee network to help sustainably increase the proportion of women in management positions, promote
internal and external dialog and create better conditions for women in the Group. 5 WiT country networks are active in France, Portugal, Pakistan, Germany and Bulgaria. The number of network members at the Düsseldorf site is now around 500.
- In the course of revising the strategy and due to the positive development in terms of achieving the target of increasing the proportion 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 ourselves new targets for September 2025. By September 2025, METRO AG aims to employ 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 a target for the share of women in management positions in our wholesale business. According to this target, the share of women in management positions at levels 1 to 3 (including store managers) is to be 30% worldwide by September 2025.
- The METRO PRIDE employee network for lesbians, gays, bisexuals, transsexuals and intersexuals aims to raise awareness of sexual orientation and identity issues. In the fiscal year, the network engaged in activities including in various communication initiatives to contribute to the internal dissemination of METRO’s international LGBTIQ+ strategy and broader awareness and visibility on the topic.
- Commitment to the LEAD (Leading Executives Advancing Diversity) network, of which METRO has been a member since 2016. The non-profit network at European level is committed to employing more women in the retail and consumer goods industries and supporting them in their careers in order to increase the proportion of women in management positions in these industries.
- METRO offers all employees an eTraining on the topic of “Diversity + Inclusion”. The goal of the training is to ensure a common understanding of Diversity + Inclusion in general and at METRO. In addition, the eTraining demonstrates the importance of the topic in the business environment within METRO.
- METRO AG organizes a virtual conference with another 15 companies from the Rhine-Ruhr region on the occasion of the German Diversity Day.
- METRO maintains a constant exchange with works councils and trade unions both 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 METRO Euro Forum Steering Committee, our European Works Council and management representatives. In addition, there is regular social dialogue with the international trade union organization UNI Global Commerce at global level, where, among other things, the commitment to fair working conditions and social partnership is discussed.

- As of September 30, 2021, 569 of 717 active private label non-food producers and 58 of 165 corresponding food/near-food producers have passed the auditing process. Of these, 100% (569) of non-food producers and 98% (57) of food/near-food producers passed the audit.
- 120 producers with 144 participants from 12 supplier countries were trained on human rights and fair working conditions via MSI in the reporting year.
- Just under 50% of the approximately 1,000 suppliers contacted responded to the survey. The next steps will be training sessions focusing on this topic as well.
- 13% of MSI producers listed with amfori BSCI responded to the self-assessment questionnaire on environmental compliance.
- The operating units will be successively connected to the new portal, the new function will be activated in fiscal year 2021/22, and thus more and more suppliers will gradually be included.
- By September 2025, METRO AG aims to employ 25% women in the 1st management level below the Management Board and 40% in the 2nd management level below the Management Board. At the end of the financial year 2020/21, the share of women in the 1st management level below the Management Board will be 18.8% and 31.3% in the 2nd management level below the Management Board. In addition, we have voluntarily set ourselves a target for the share of women in management positions in our wholesale business. According to this target, the share of women in management positions at levels 1 to 3 (including store management) is to be 30% worldwide by September 2025.
- At the end of fiscal 2020/21, the share of women in management positions at levels 1 to 3 (incl. store managers) is 25.2%. In addition, according to the Supervisory Board’s target, at least 1 woman should be a member of the Management Board of METRO AG by June 2022. Andrea Euenheim was appointed to the Management Board of METRO AG as the new Labor Director effective November 1, 2019. METRO AG thus already achieved the target set by the Supervisory Board in 2019.
- Various activities of the WiT employee network:
- Monthly digital Lunch & Learn meetings with up to 20 participants.
- 12 participants in the training "The Brand ME".
- 10 participants in the virtual conference Emotion Women’s Days.
Various activities of the METRO PRIDE employee network:
- Pilot LGBTIQ+ training with regional managers internationally to raise awareness of the issue.
- Implementation of a Pride Month: daily Pride Ambassador videos on METRO’s internal communication platform United.
- Publication of infographics and a brochure on LGBTIQ+ Publication.
- PROUTPERFORMER Germany lists various METRO Group employees (PROUT Executive Allies and PROUT Voices).
- Participation in the LGBTIQ+ job fair Sticks & Stones (METRO AG, METRO Digital, METRO Markets and Hospitality Digital).
- Development of a global LGBTIQ+ strategy.
- 1st METRO Pride Network internationally: in the reporting year 2020/21, the METRO Pride Network was launched at METRO Services in India.
Implementation of the LGBTIQ+ audit for METRO AG and achievement of Gold Status.
- In fiscal year 2020/2021, METRO expanded its partnership with the LEAD Network.
- Since this fiscal year, the METRO Foundation has been a partner, demonstrating the importance and its own efforts to advance gender equality and inclusion in the retail and consumer goods industry.
- In reporting year 2021/21 372 participants participated in a diversity & inclusion training of which 169 successfully completed all training questions.

- 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.
- The Accord on Fire and Building Safety in Bangladesh.
- The Consumer Goods Forum Resolution on Health & Wellness.
- METRO Business Principles.
- Code of Conduct for Business Partners.
- METRO guidelines on fair working conditions and social partnership.
- The Consumer Goods Forum Resolution on Forced Labour.

- METRO is a signatory to the new International Agreement on Fire Protection and Building Safety in Bangladesh.
- Unfolding of various occupational safety measures;
- Comprehensive organizational measures were implemented to ensure the occupational safety of all employees, particularly during the Covid-19 pandemic. These include:
- Optimization of the flexible work offer
- Travel restrictions and Safety and hygiene measures at headquarters, stores and warehouse locations in METRO companies.
- Training of suppliers to raise awareness of issues associated in particular with the Covid-19 pandemic, especially stricter hygiene regulations and potential human rights violations such as the risk of unregulated overtime as a consequence of the sometimes severe economic losses. At the same time, the Amfori BSCI and Sedex audits, which were largely not carried out, will be compensated for, thereby fulfilling the duty of care to ensure that human rights are respected even in the absence of audits.
- Since fiscal year 2019/20, we have changed our audit process for compliance with the Fair Working Conditions and Social Partnership (FWC & SP) guidelines at METRO companies based on Covid-19. Surveys on the Principles on Fair Working Conditions and Social Partnership (FWC & SP) are conducted online. The aim is to assess the current status of implementation of the FCW & SP principles in key units and to provide recommendations for improving the FWC & SP process.

- As of September 30, 2021, factories reported in the Bangladesh Fire and Building Safety Agreement that produce for METRO SOURCING International and/or METRO national companies have completed 97% of their points for improvement. This includes points such as not interconnecting smoke detectors with fire alarms or not protecting circuit breakers mounted on the cable duct.
- In the reporting year 2020/21, we established the Occupational health and safety management system (OSMS), which is based on the principles of ISO 45001 and was prepared in the fiscal year 2020, throughout the METRO Group.
- In fiscal 2020/2021, we added FWC & SP to our Risk Governance Process. No audits have taken place.

- Purchasing policy for sustainable procurement, along with specific purchasing guidelines for fish and seafood, meat, animal welfare, cage-free 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 guideline.
- 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. Operational climate neutrality by 2040 in our own global business operations, largely through our own efforts.
- 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 Verpflichtung.
- 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.

- Implementing the general buying policy for sustainable procurement and the specific buying guidelines for fish and seafood, meat, cage-free 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. During the reporting period, new guidelines on meat and animal welfare came into force across the Group.
- The guidelines on single-use plastic and cage-free eggs, our health and nutrition policy and METRO’s packaging targets were updated.
- Behavior change measures (Energy Awareness Programs), investments in energy efficiency and renewable energy (Energy-Saving Programs), and conversion of
refrigeration systems to natural refrigerants (F-Gas Exit Programs).
- Recertification and annual audit of sites according to energy management system ISO 50001 as well as environmental management system ISO 14001.
- Engagement with diverse stakeholders to combat food waste.
- Recovery of resources through recycling.
- Transparent public reporting on climate change, water and forests via CDP Climate, CDP Water and CDP Forest.
- Participation in the Global Tuna Alliance (GTA) and Global Sustainable Seafood Initiative (GSSI) committees.
- Collaboration on pilots of the Biodiversity Guidance Navigation Tool (accompanying the Natural Capital Protocol) in cooperation with the Cambridge Conservation Initiative.
- (CCI) and the Capitals Coalition.

- Expansion of the traceability solution to include new suppliers and preparatory measures to extend the solution to additional product categories, such as fruit and vegetables and flour. Deployment of the technical solution for dynamic price adjustment depending on the best-before date (BBD) with the aim of reducing food
waste as part of a pilot. In addition, support of in-house production through BBD or lot-based production quantity control.
- Empowering local suppliers and promoting more sustainable products, such as improved packaging and organic products, e.g. in METRO Czech Republic and METRO Germany through communication campaigns.
- Greenhouse gas emissions per m2 of sales and delivery area reduced by 37.3% compared to 2011.
- Greenhouse gas emissions from refrigerant losses per m2 of sales and delivery area reduced by 29.5% compared to 2011.
- Electricity consumption per m2 of sales and delivery area reduced by 39.3% compared with 2011.
- Investments of €4.0 million in fiscal 2020/21 as part of the Energy Saving Program. This will save us around €1.0 million in energy costs per year in the future.
- Investments of €31.8 million in fiscal 2020/21 as part of the F-Gas Exit program for the replacement of refrigeration systems using climate-damaging refrigerants.
- Installation of 14 additional photovoltaic plants in France, India, Italy, Pakistan, Spain and Hungary, with a total additional capacity of 2,976 kWp.
- Installation of 557 charging stations for electric vehicles for METRO customers. At the Düsseldorf campus, 300 employees already use electric vehicles as company cars, the emissions of which are offset via certificates for hydropower plants.
- Certification of all METRO locations in France in fiscal year 2020/21 in accordance with the ISO 50001 energy management system.
- Certification of the Ukraine store in Kyiv (Stepana Bandery Avenue) according to the ISO 14001 environmental management system.
- In 22 countries, we work with food bank organizations to pass on unsold food to those in need.
- In 10 countries, we work with TooGoodToGo for this purpose, also as a solution for our customers. So far, this has “saved” more than 180,000 meals, which corresponds to a saving of 450 tons of CO2.
- METRO is a member of the World Resources Institute’s (WRI) “10x20x30” initiative, which calls on the world’s 10 largest food retailers to commit at least 20 of their
suppliers to halving their food waste by 2030, in line with United Nations Sustainable Development Goal 12.3. METRO AG and METRO Turkey have already jointly committed more than 30 suppliers.
- We work with different technical solutions to reduce food waste, depending on availability and need. In Turkey, we are analyzing food waste hotspots and disposal
routes with Whole Surplus. In Poland, we are running a Wasteless pilot project using artificial intelligence (AI)-powered technology to price perishables to reduce food
waste in our markets.
- METRO Ukraine is cooperating with a local waste recycling company and social partner to recycle plastics: with the YAPOMOGABOX 3.0, customers can donate to a charity of their choice by placing the plastic bottles to be recycled in a vending machine.
- Customer information on the recycling and environmental friendliness of private label packaging. Specially developed icons show whether the packaging is made of recycled, certified or degradable material.
- Publication of METRO’s CDP Climate Questionnaire on their website including TCFD Matrix.
- Water consumption per m2 of sales and delivery area reduced by −15.9% compared with 2011, and by −1.3% compared with the previous year.
- Collaboration on the publication of the GDST (Global Dialogue on Seafood Traceability) traceability standard 1.0.
- Panel participation in various international conferences on the 2025 Pledge towards Sustainable Tuna (25PST) and supply chain transparency.

- 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).

- Compliance communication in various formats – internal and external – to inform employees as well as third parties outside the Group, including METRO’s social network platform.
- Ongoing implementation of the anti-corruption guideline in day-to-day business.
- IT tool (CDDS – Compliance Due Diligence Solution) for digital business partner screening rolled out across the Group and fully implemented. For high-risk business
partners, an in-depth due diligence review is planned, including the review 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 network.

- Compliance training on anti-corruption in various companies in central functions and in sales, partly as e-training Compliance-Talks.
- Compliance presence in METRO’s social network.
- Speak-up communication campaign (Inspirational Compliance Video).
- Tones from the top in various companies on the contents of the anti-corruption guidelines (e.g. the acceptance of gifts).
Examples of external communication measures:
- Business principles on METRO’s websites – with access to the Compliance Reporting System.
- Code of Conduct for Business Partners on METRO’s websites.
- Anti-corruption clause applied in external contracts on a graduated basis according to the risk of the business partner.
- Compliance risk workshops in various companies (depending on the level of risk) to identify corruption risks and compliance with guidelines.
- Workshops, trainings and feedback sessions to ensure the use of the digital tool (CDDS) throughout the Group including monitoring at corporate level of reported cases for follow-up at the level of individual companies.