35954716 2023-01-01 2023-12-31 35954716 2023-01-01 2023-12-31 0 35954716 2023-01-01 2023-12-31 0 35954716 2023-01-01 2023-12-31 1 35954716 2023-01-01 2023-12-31 2 35954716 2023-01-01 2023-12-31 3 35954716 2023-01-01 2023-12-31 4 35954716 2023-01-01 2023-12-31 5 35954716 2023-01-01 2023-12-31 6 35954716 2022-01-01 2022-12-31 35954716 2023-01-01 2023-12-31 ifrs-full:SeparateMember 35954716 2022-01-01 2022-12-31 ifrs-full:SeparateMember 35954716 2023-12-31 35954716 2022-12-31 35954716 2023-12-31 ifrs-full:SeparateMember 35954716 2022-12-31 ifrs-full:SeparateMember 35954716 2023-01-01 2023-12-31 0 35954716 2022-01-01 2022-12-31 1 35954716 2023-01-01 2023-12-31 ifrs-full:SeparateMember 2 35954716 2022-01-01 2022-12-31 ifrs-full:SeparateMember 3 35954716 2023-01-01 2023-12-31 4 35954716 2022-01-01 2022-12-31 5 35954716 2023-01-01 2023-12-31 ifrs-full:SeparateMember 6 35954716 2022-01-01 2022-12-31 ifrs-full:SeparateMember 7 35954716 2023-01-01 35954716 2022-01-01 35954716 2023-01-01 ifrs-full:SeparateMember 35954716 2022-01-01 ifrs-full:SeparateMember 35954716 2023-01-01 2023-12-31 0 35954716 2023-01-01 2023-12-31 1 iso4217:DKK xbrli:pure Regnskabsklasse C, stor virksomhed 2023-01-01 2023-12-31 Salling Group A/S www.sallinggroup.com DK-8220 Brabrand Rosbjergvej 33 35954716 2024-04-25 Jakob Røddik Thøgersen <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's statements</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The Board of Directors and the Executive Board have today discussed and approved the annual report of Salling Group A/S for the financial year 1 January – 31 December 2023.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">The annual report has been prepared in accordance with International IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">It is our opinion that the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the company's assets, liabilities and financial position at 31 December 2023 and of the results of the Group's and the company's operations and cash flows for the financial year 1 January – 31 December 2023.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the company's operations and financial conditions, the results of the Group's and the company's operations, cash flows and financial position as well as a description of the most significant risks and uncertainty factors that the Group and the company faces.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">We recommend that the annual report be approved at the annual general meeting.</td></tr></table> Brabrand 2024-04-25 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independent auditor's report</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">To the shareholders of Salling Group A/S</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Opinion</td></tr><tr><td colspan="1">We have audited the consolidated financial statements and the parent company financial statements of Salling Group A/S for the financial year 1 January – 31 December 2023, which comprise income statement, statement of compre- hensive income, balance sheet, statement of changes in equity, cash flow statement and notes, including material accounting policy information for the Group and the parent company pages 29-92. The consolidated financial state- ments and the parent company financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Dan- ish Financial Statements Act.</td></tr><tr><td colspan="1">In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the financial position of the Group and the par- ent company at 31 December 2023 and of the results of the Group's and the parent company's operations and cash flows for the financial year 1 January – 31 December 2023 in accordance with FRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Basis for opinion</td></tr><tr><td colspan="1">We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements and the parent company financial statements" (hereinafter collectively referred to as "the financial statements") section of our report. We believe that the audit evidence we have obtained is sufficient and appro- priate to provide a basis for our opinion.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Independence</td></tr><tr><td colspan="1">We are independent of the Group in accordance with the Inter- national Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.</td></tr><tr><td colspan="1">Statement on the Management's review Management is responsible for the Management's review.</td></tr><tr><td colspan="1">Our opinion on the financial statements does not cover the Management's review, and we do not express any assur- ance conclusion thereon.</td></tr><tr><td colspan="1">In connection with our audit of the financial statements, our responsibility is to read the Management's review pages 3-28 and, in doing so, consider whether the Management's review is materially inconsistent with the financial state- ments or our knowledge obtained during the audit, or oth- erwise appears to be materially misstated.</td></tr><tr><td colspan="1">Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act.</td></tr><tr><td colspan="1">Based on the work we have performed, we conclude that the Management's review is in accordance with the finan- cial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement of the Manage- ment's review.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management's responsibilities for the financial statements</td></tr><tr><td colspan="1">Management is responsible for the preparation of consol- idated financial statements and parent company financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and addi- tional requirements of the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.</td></tr><tr><td colspan="1">In preparing the financial statements, Management is responsible for assessing the Group's and the parent com- pany's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Group or the parent company or to cease operations, or has no realistic alternative but to do so.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Auditor's responsibilities for the audit of the financial statements</td></tr><tr><td colspan="1">Our objectives are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Rea- sonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.</td></tr><tr><td colspan="1">As part of an audit conducted in accordance with ISAs and additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also</td></tr><tr><td colspan="1">* Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, mis- representations or the override of internal control.</td></tr><tr><td colspan="1">• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the parent company's internal control.</td></tr><tr><td colspan="1">• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.</td></tr><tr><td colspan="1">* Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the parent company's ability to con- tinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to mod- ify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the parent company to cease to continue as a going concern.</td></tr><tr><td colspan="1">• Evaluate the overall presentation, structure and contents of the financial statements, including the note disclosures, and whether the financial statements represent the under- lying transactions and events in a manner that gives a true and fair view.</td></tr><tr><td colspan="1">• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direc- tion, supervision and performance of the group audit. We remain solely responsible for our audit opinion.</td></tr><tr><td colspan="1">We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we iden- tify during our audit.</td></tr></table> Aarhus C 2024-04-25 <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Management review</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Our strategy</td></tr><tr><td colspan="1">Our purpose, strategy and values</td></tr><tr><td colspan="1">In 2023 we kept focus on our growth drivers and sustaina- bility priorities. Despite turbulent times these remained rele- vant and guiding for our strategic decisions during the year. In the autumn of 2023, we initiated a strategic review and will be ready to present a new corporate five year business plan during 2024.</td></tr><tr><td colspan="1">Our purpose</td></tr><tr><td colspan="1">Customers are the foundation of our business and we are here to improve their everyday lives. Not least in times of high inflation and rising prices. By offering affordable prices on a wide range of daily necessities, we played an important role in enabling our customers to handle their daily expenses, without having to compromise e.g., a healthy lifestyle</td></tr><tr><td colspan="1">Our corporate priorities (5K)</td></tr><tr><td colspan="1">During autumn 2023, we launched our new corporate prior- ities, the 5Ks</td></tr><tr><td colspan="1">Customers (Kunder)</td></tr><tr><td colspan="1">Our customers are absolutely vital to us. As a result, we always look at things from the customer’s point of view to ensure the best possible shopping experience.</td></tr><tr><td colspan="1">Colleagues (Kolleger)</td></tr><tr><td colspan="1">We create a motivational workplace with an attentive and inclusive leadership that provides opportunities and space for everyone to grow.</td></tr><tr><td colspan="1">.Gender diversity (Kønsdiversitet)</td></tr><tr><td colspan="1">We break down barriers and create an environment that allows talented individuals to develop and pursue a career regardless of gender – also in leadership positions.</td></tr><tr><td colspan="1">Culture (Kultur)</td></tr><tr><td colspan="1">We build a culture where curiosity and drive help us to learn new things and become better.</td></tr><tr><td colspan="1">Climate (Klima)</td></tr><tr><td colspan="1">We recognise climate challenges and accept our responsi- bility for reducing our climate footprint, including imposing demands on our value chain.</td></tr><tr><td colspan="1">Our values and foundation</td></tr><tr><td colspan="1">Our business is based on a strong foundation; i.e., the people we employ and the products we sell. Our values help create a unified spirit – across all formats and functions. They indi- cate what we expect from each other as colleagues at Salling Group, and what others can expect from us.</td></tr><tr><td colspan="1">Serving a higher purpose</td></tr><tr><td colspan="1">Salling Group is 100 percent owned by the Salling Foundations, which means that all profits that are not</td></tr><tr><td colspan="1">reinvested in stores, concepts and customer experi- ences are given back to the society we are a part of. Since 2012, the Salling Foundations have donated more than DKK two billion, including DKK 244 million in 2023, to culture, sports, charity, church, education and research.</td></tr><tr><td colspan="1">This means that each and every Salling Group employee through their daily service and efforts in stores, cafés, restaurants, warehouses and offices are supporting local sports and leisure associations, Team Danmark Olympic athletes, cultural institu- tions, initiatives for young people's mental health and well-being and much, much more.</td></tr><tr><td colspan="1">Ownership</td></tr><tr><td colspan="1">Salling Group and the Salling Foundations are named after our founder Ferdinand Salling, who in 1906 opened his draper’s shop in Aarhus. The shop gradually grew, and in 1948 the first part of Salling department store was opened. After his death in 1953, his son Herman Salling took over the business and began to modernise and expand Salling’s department stores, adding supermarket format føtex in 1960, hypermarket format Bilka in 1970 and dis- count format Netto in 1981. Following a buy back of the shares from Maersk, the Salling Foundations resumed full ownership in 2017 and subsequently renamed the company to its current name, Salling Group.</td></tr><tr><td colspan="1">Salling Group owns Netto discount stores in Denmark, Poland and Germany, the føtex supermarket and Bilka hypermarket chains as well as the Salling department stores, the BR toy store chain and associated online stores in Denmark. In addition, the company operates the Starbucks and Carl’s Jr. franchise chains on the Danish market, making Salling Group Denmark’s largest retail group, with 12 million customers visiting our stores and restaurants every week.</td></tr><tr><td colspan="1">Salling Group’s purpose is to improve everyday life – for our customers and for the communities we are part of. We do this by offering sustainable solutions, improved shopping experiences, job opportunities for all and not least by making local donations to worthy causes through our owners, the Salling Foundations.</td></tr><tr><td colspan="1">Substainability</td></tr><tr><td colspan="1">Salling Group’s sustainability strategy is based on a two-pil- lar foundation and two key priorities. Our foundation is the people we employ and the products we sell, as they com- bine to form the core of our business and are areas where we raise the bar and constantly seek to push our efforts further.</td></tr><tr><td colspan="1">Our priorities are Climate and Health where we have the oppor- tunity to make the most significant difference as a company. Climate change is one of the biggest challenges of our time and we are fully committed to this shared agenda. As a diverse retailer active across borders we also have an obligation to make healthy choices accessible and available to all.</td></tr><tr><td colspan="1">Salling Group has been committed to the sustainability agenda for years working on important agendas like inclu- sion, social responsibility and climate change. That is why we were particularly proud of receiving the EY and Danish Chamber of Commerce’s special prize for Long Term Value Creation in 2023. The prize is given to companies that have consistently demonstrated a strong commitment to sustain- ability and have achieved significant positive impacts over time. However, we are not working on our own on these agendas – and our continued efforts to delivering on our strategy requires partnerships and engagement with cus- tomers, communities, suppliers, and more.</td></tr><tr><td colspan="1">We are continually defining a number of focus areas that support our strategic priorities and the three aspects of sustainability: Environment (E), Social (S) and Governance (G) issues. Some of the key focus areas that we consider are: Climate, Deforestation, Food waste, Packaging, Health, Diversity and Inclusion, Product safety and sustainability, Responsible tax, and Human rights. In this report we briefly cover the key focus areas that has been our main points of attention in 2023, while you can read more on our website. https://www.sallinggroup.com/en/esg</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="1">Environment</td></tr><tr><td colspan="1">As a large retail group, Salling Group has a responsibility to limit our footprint on the environment and help to avoid the most severe consequences of climate change. Therefore, we have set a goal to have net-zero emissions in the full value chain in 2050.</td></tr><tr><td colspan="1">In 2023, we were proud to announce that our greenhouse gas (GHG) emissions targets were approved by the Science Based Targets initiative (SBTi), a leading, globally renowned body that defines best practice for science based climate targets (see box to the right). By setting science based tar- gets we are dedicated to the Paris Agreement’s ambition to keep human caused climate changes below 1.5º C. The net-</td></tr><tr><td colspan="1">zero ambition means that we are reducing emissions from our value chain to the greatest extent possible while at the same time ensuring that remaining greenhouse gases are absorbed and stored naturally.</td></tr><tr><td colspan="1">For our own business we have committed to reduce our scope 1 and 2 carbon emissions by 50% by 2030. However, most of our total emissions are generated in our supply chain. These are known as scope 3 emissions. It is our goal that 75% of our suppliers measured by emissions have set science based targets before end 2027, and our 2030 tar- get is to reduce our scope 3 emissions from the use of sold products by 42%. Our long-term target for scope 1 and 2 is</td></tr><tr><td colspan="1">to reduce carbon emissions by 95% towards 2050, while the target for scope 3 is a 90% reduction towards 2050 com- pared to 2021. To reach our net-zero ambition, we must achieve our long-term targets and neutralise our residual emissions by using permanent carbon removal and storage to counterbalance the final 5% and 10%, respectively.</td></tr><tr><td colspan="1">We are working closely with suppliers, partners and stake- holders to make the needed changes to meet our climate goals. In 2024, Salling Group will prepare to set additional net-zero targets; the so-called Forest, Land and Agricul- ture (FLAG) targets which we also aim to have validated by the SBTi.</td></tr><tr><td colspan="1">Our plan</td></tr><tr><td colspan="1">To reach our targets for carbon emissions reductions we have adopted an ambitious but concrete climate plan that aims to reduce our direct and indirect climate footprint. The climate ambition contains four tracks for own operations and value chain (see figure below)</td></tr><tr><td colspan="1">Scope 1 and 2: Removing carbon emissions from own operations</td></tr><tr><td colspan="1">In 2022, we initiated a 5-year investment plan of DKK 2.4 billion in green transition, which will significantly reduce the Group’s energy consumption in Denmark, Germany and Poland and pave the way for more renewable energy in the coming years.</td></tr><tr><td colspan="1">Our ambition is to invest a total of DKK 1.4 billion in scope 1 in decarbonisation, replacing gas boilers with electric</td></tr><tr><td colspan="1">heat pumps in 750 stores across the three countries and to replace cooling systems in 1,300 stores with new ener- gy-efficient systems. Close to DKK 1 billion will be invested in scope 2 in installing solar panels on the roof of 570 buildings in Denmark, Germany, and Poland, as well as in installing doors on refrigerated display cases in 725 stores to reduce electricity consumption. Towards 2028, the investments aim</td></tr><tr><td colspan="1">to reduce emissions by around 30-35% of emissions from own operations across scopes 1 and 2.</td></tr><tr><td colspan="1">The next step in our green transition plan is to ensure access to green energy across Denmark, Germany and Poland. It is important for us to ensure real impact, and we have therefore mapped our yearly, monthly and daily energy consumption profile to design the most optimal portfolio of renewable energy sources. As Salling Group has a fairly con- stant, high consumption of energy, a combination of solar,</td></tr><tr><td colspan="1">wind and other renewable sources will be optimal. More- over, we also have to take into account that we operate in three countries with very different maturities when it comes to green energy.</td></tr><tr><td colspan="1">Scope 3: Removing carbon emissions from value chain</td></tr><tr><td colspan="1">In scope 3 we follow three tracks to reduce emissions</td></tr><tr><td colspan="1">• Committing suppliers to set science based reductions targets</td></tr><tr><td colspan="1">• Helping customers by providing solutions and products</td></tr><tr><td colspan="1">that make it easier to make more climate friendly choices</td></tr><tr><td colspan="1">• Engaging employees so that they can help customers</td></tr><tr><td colspan="1">and be able to contribute themselves</td></tr><tr><td colspan="1">Put another way, we have two ways to reduce emissions</td></tr><tr><td colspan="1">from scope 3: Lowering emissions from the production of goods by ensuring that our suppliers reduce their emissions from the production and transport of goods, and changing the mix of goods in the customer´s basket to more carbon friendly alternatives by continuously improving our assort- ment and guidance to customers.</td></tr><tr><td colspan="1">The employees have a separate track in Salling Group's cli- mate ambition, as we see a great need to prepare employees for the green transition. In 2024, we launch training material for different employee groups to increase the understand- ing of sustainability in the organisation</td></tr><tr><td colspan="1">Our performance</td></tr><tr><td colspan="1">Climate and energy investment plan</td></tr><tr><td colspan="1">As part of the strategy of investing DKK 2.4 billion in renewable energy sources dur-</td></tr><tr><td colspan="1">ing the period 2022 to 2028 we continued, in 2023, to launch initiatives to reduce our</td></tr><tr><td colspan="1">energy consumption across the Group. We are on track with our plan converting</td></tr><tr><td colspan="1">natural gas heating to electric heating pumps, replacing cooling systems, installing</td></tr><tr><td colspan="1">solar panels on the roof, and putting doors on chillers in our stores. During 2023, we</td></tr><tr><td colspan="1">have invested DKK 372 million in energy reducing initiatives which brings our total</td></tr><tr><td colspan="1">investments to DKK 555 million since 2022.</td></tr><tr><td colspan="1">Energy</td></tr><tr><td colspan="1">To mitigate climate change and achieving our carbon reduction targets it is key to</td></tr><tr><td colspan="1">improve our energy efficiency and reducing emissions from energy consumption.</td></tr><tr><td colspan="1">In 2023, our energy consumption was reduced by 3.9% from 2022 and in the same</td></tr><tr><td colspan="1">period there was an increase in both our consumption of electricity produced by</td></tr><tr><td colspan="1">own solar panels as well as in the excess production from our solar panels sold</td></tr><tr><td colspan="1">back to the grid. The electricity production and consumption from own solar panels</td></tr><tr><td colspan="1">are expected to increase further going forward as we are investing in installation of solar panels on our stores, distribution centres and head offices where possible.</td></tr><tr><td colspan="1">Carbon emissions</td></tr><tr><td colspan="1">Like other retail companies, Salling Group has the largest part of emissions in our value chain (scope 3). 95.0% of Salling Group’s emissions are in scope 3 of which the vast majority are emissions related to the goods we buy and sell. In our own operations, leakage of refrigerants (scope 1) and electricity (scope 2) are the larg- est sources of emissions.</td></tr><tr><td colspan="1">Scope 1 and 2 emissions (own operations)</td></tr><tr><td colspan="1">In 2023, Salling Groups direct (scope 1) and indirect (scope 2) GHG emissions were 331,280 tCO2e in total, which is a reduction of 2.1% compared to 2022 and a total reduction of 9.7% compared to the baseline in 2021.</td></tr><tr><td colspan="1">Both scope 1 and scope 2 emissions decreased from 2022 to 2023 with emissions reduced by 8.4% and 1.1%, respectively. The decline in scope 1 emissions was primar- ily attributed to decreased consumption of heating oil, gas, and fuel. Notably, our Danish part of the business became free of heating oil by transitioning to district heating and electrical heat pumps. Furthermore, natural gas usage decreased due to milder winters in Poland and Germany, along the widespread adoption of dis- trict heating and electrical heat pumps across all countries. Fuel consumption also decreased, primarily due to lower activity in the home-delivery service following a transition from føtex to Bilka, resulting in a temporary shutdown of home-delivery services for approximately six months. This reduction is driven by lower consump- tion and consumption of electricity generated by own solar panels.</td></tr><tr><td colspan="1">Scope 3 emissions</td></tr><tr><td colspan="1">In 2023, our other indirect GHG emissions (scope 3) were total 6,253,719 tCO2e, which is 1.2% less than the previous year and 2.4% lower than baseline in 2021. About 87.2% of our scope 3 emissions was caused by purchased goods and services in 2023. The reduction of scope 3 emissions was primarily driven by lower emissions from “purchased goods and services”* resulting from a change in the mix of purchased goods and services from 2022 to 2023.</td></tr><tr><td colspan="1">Getting closer to data is vital to drive changes</td></tr><tr><td colspan="1">Onboarding of suppliers</td></tr><tr><td colspan="1">We commit our suppliers to set science based targets and to disclose emissions that are related to doing business with Salling Group. As a first step we ask our suppliers to onboard the platform of Carbon Disclosure Project (CDP), which is among the initiators of the Science Based Targets initiative. We use the platform to collect and consolidate supplier data. Reporting is completed on an annual basis.</td></tr><tr><td colspan="1">We started supplier onboarding in 2022, and by end 2023, 419 suppliers, covering around 79% of our spend, were aboard. Of the 419 suppliers invited to share emission data 232 suppliers (55%) responded to the questionnaire in 2023 compared to 46% in 2022. 40% of the responding suppliers have approved science based targets while 9% are officially committed to set a science based target.</td></tr><tr><td colspan="1">In 2024, we will invite around 300 more suppliers thus covering almost 90% of our spend. Our target is to have 75% of our suppliers (measured by emissions from category 1 and 4) to set science-based targets before end 2027.</td></tr><tr><td colspan="1">Engaging customers</td></tr><tr><td colspan="1">At Salling Group, we have advocated for a national climate label to make it easier for consumers to navigate according to the products' climate footprint. We are happy to be part of the taskforce preparing a concrete model for what the climate label should look like, assigned by the Minister of Food, Agriculture and Fisheries.</td></tr><tr><td colspan="1">In 2023, we ran a test in our Netto store in Allinge to show our customers what Denmark's future climate label could look like. The label displays a clear colour scale that makes it easy to decode whether the product has a high or low CO2e footprint. At the same time, the label indicates the calcu- lated CO2e footprint of the individual product. As soon as the database with the environmental footprint of the products is ready, Salling Group will implement the climate label in order to help customers and make it easier to buy products with low CO2e impact.</td></tr><tr><td colspan="1">Food Waste</td></tr><tr><td colspan="1">Food waste is a high priority at Salling Group for both climate, economic and social reasons. To understand our food waste footprint better, Salling Group began to measure food waste by weight in addition to monetary value back in 2016 in order to calculate the impact across food categories. In line with the Sustainable Develop- ment Goal 12.3 we have a target to halve food waste by 50% by 2030 with 2015 as baseline.</td></tr><tr><td colspan="1">Salling Group´s food waste numbers have been reported and made publicly available every year since then. At first we only measured our food waste in Denmark, but decided in 2019 to also measure and present the devel- opment in food waste outside Denmark, i.e., our stores and warehouses in Germany and Poland. Minimising food waste is a key priority in all parts of the business over which we have control. And if we can minimise food waste, we can help cut overproduction and thus carbon emissions</td></tr><tr><td colspan="1">In 2019, Salling Group joined One\Third, a national think tank with the overall purpose of strengthening the efforts on preventing food loss and waste and ensuring improved data collection and verification. In 2023, Executive Vice Pres- ident for People, Culture &amp; Sustainability, Louise Gade, was appointed as chair of the board in One\Third.</td></tr><tr><td colspan="1">Surplus food for good use</td></tr><tr><td colspan="1">A part of the food waste or more correctly surplus food is unavoidable. Therefore, we have partners such as the Food Bank (FødevareBanken), Wefood (DanChurchAid), and Too Good To Go (TGTG) among others to help us make good use of the products that cannot be sold but can still be used. Together we are assuming responsibility for addressing the climate changes and for donating and distributing edible food to those in need. Surplus food that cannot be upcycled, donated or sold is made into biogas.</td></tr><tr><td colspan="1">Following even stronger focus and intensification of the number of surplus food actions taken, and legislation in for instance Poland that makes donation of edible surplus food to charities statutory, the amount of surplus food not wasted has grown. Furthermore system enhancements have con- tributed to better registration, visualisation and reporting mechanisms. As of 2023 Salling Group will therefore report on surplus food, deductions and net food waste. See figure below showing food waste percentages less surplus food sold or donated.</td></tr><tr><td colspan="1">Social</td></tr><tr><td colspan="1">Diversity and inclusion</td></tr><tr><td colspan="1">At Salling Group, we believe that every one can make a differ- ence, and we strive to make a job match regardless of whether physical or mental disability leaves a potential employee unfit for a traditional job. We have specially designed jobs across business units and we work closely with municipalities, the state and civil society to be able to tailor employment on spe- cial terms. A very tangible result of this effort can be seen in the annual calculations carried out by the Non-Profit organi- sation Cabi who has developed a tool (Den Sociale Beregner) to measure how much society gains from a given company’s special employment efforts</td></tr><tr><td colspan="1">Cabi´s calculations show that in 2023 Salling Group´s efforts saved the Danish authorities an expenditure to social services of more than DKK 72 million. Much of this is due to the permanent employment of 437 new colleagues who all started their career with us in an internship on special conditions. This is a result we take great pride in.</td></tr><tr><td colspan="1">Gender diversity</td></tr><tr><td colspan="1">55% of our employees are female, but only 22% of our man- agers at director level or above are female*. Creating an environment to develop and pursue a career regardless of gender is one of our corporate priorities, The Five K’s. In 2023 we focused our efforts and are in a process of systematically analysing the barriers for the underrepresented gender, scru- tinising job postings and search processes for bias.</td></tr><tr><td colspan="1">In 2023, we also entered a partnership with the Above and Beyond Group, where CEO Anders Hagh has taken a seat in the organisation’s Diversity Council. Our gender equality tar- gets remain 40/60 in favour of the underrepresented gender.</td></tr><tr><td colspan="1">Partnerships</td></tr><tr><td colspan="1">We engage in strategic partnerships benefitting our various target groups, one particular successful collaboration being Glad Fonden which has initiated Flexuddannelsen; an edu- cational programme for young people with cognitive and physical disabilities or special needs. 90% of the students who complete the education subsequently go into work (primarily flex-jobs) or further education.</td></tr><tr><td colspan="1">Sunflower lanyard and dyslexia</td></tr><tr><td colspan="1">Since we began our collaboration with the Hidden Disabilities Sunflower programme in October 2022 we have bought a total of 150,000 sunflower lanyards which we are handing out for free in all our stores. Similarly, we continue our efforts to break down prejudice and barriers about dyslexia, instead focusing on the strengths that often accompany the diag-nosis i.e., communication, solving complex problems, thinking innovatively, creatively, visually and creating relationships.</td></tr><tr><td colspan="1">Culture</td></tr><tr><td colspan="1">Building a culture where curiosity and drive help us learn new things and become better is one of our corporate pri- orities, The Five K’s. Curiosity is also important to succeed in translating our strong purpose “Improving Everyday Life” to concrete actions. We need to be curious about the needs and experiences of our customers, our colleagues, our busi- ness partners, and competitors as well as having an appe- tite to learn from other ways of doing things. In 2023, we had a particular focus on how to support an innovative mindset across the organisation, on psychological safety, and on feedback. We work with these topics through training and management attention, and we continuously monitor devel- opments in these areas.</td></tr><tr><td colspan="1">Health</td></tr><tr><td colspan="1">In 2023, we revisited our health strategy and plans. Our ambition is to inspire and make it easier for everyone to make healthier choices. To break down the health ambi- tion into more concrete initiatives, we work with three focus areas that have a reference to our climate ambition</td></tr><tr><td colspan="1">• Engage with local communities and collaborate with partners to prevent and address different health challenges.</td></tr><tr><td colspan="1">• Engage employees and create a workplace that inspires to a balanced and healthy working life.</td></tr><tr><td colspan="1">• Help customers make healthier choices by inspiring to a health-balanced mix in their shopping baskets.</td></tr><tr><td colspan="1">We work with these focus areas by having a large range of Keyhole-labelled and wholegrain products, a store setup with a focus on fruit and vegetables, and health-promoting partnerships. However, ongoing dialogue with customers has shown both an increasing demand for healthier prod- ucts but also the complexity in knowing what is healthy.</td></tr><tr><td colspan="1">Health is also not only what we eat and drink. This is why we support several initiatives that support the physical and mental health of children and adults.</td></tr><tr><td colspan="1">Health is also a top priority for our colleagues and with recur- ring initiatives like ‘Drink Water’, DHL, 'Salling Group Cykler' and not least inspirational physical and mental health webi- nars with Team Danmark featuring athletes and specialists, we care for our colleagues across the business.</td></tr><tr><td colspan="1">Customers have an increasing demand for healthier prod- ucts, inspiration and guidance, and as Denmark’s largest retailer, we have a responsibility to deliver. We do this through our range of products (Bilka for instance is the only Danish retailer with a plant-based convenience assortment) and the way we display them in our stores and not least through our catalogues and social media content, where organic, plant-based, Keyhole- and wholegrain labels as well as fruit and vegetables now occupy more and more space. In 2023, we also continued our strategic focus on making it easier for our customers to make healthier everyday choices by increasing our range of Keyhole and wholegrain labelled private label products. Both of which continue to be popular with customers.</td></tr></table> <table xmlns="http://www.w3.org/1999/xhtml" style="border-right: 0px; border-top: 0px; border-left: 0px; width: 650px; border-bottom: 0px; border-collapse: collapse" width="100%"><tr><td colspan="4">Governance</td></tr><tr><td colspan="4">Our governance structure reflects that sustainability is a key part of our strategic direction. The overarching responsibility is anchored with Salling Group’s Board of Directors with two board committees taking active roles in the sustainability oversight. The Audit Committee ensures supervision of the integrated reporting process, and risk management framework, and oversees Salling Group´s climate investments. It also monitors compliance with local, national and international laws. The Sustainability Committee functions as an overall advisory body that supports strategy development.</td></tr><tr><td colspan="4">It also seeks to continually challenge the level of ambition and push for development.</td></tr><tr><td colspan="4">In 2023, a new council was formed at leadership level; the People &amp; Sustainability Council. The council serves as a forum for strategic discussions on material topics and focuses on developments within the ESG agenda that are linked to sustainability, health, diversity and other agendas targeting employee well-being and opportunities for personal development. Topics also include equality and equal opportunities for the underrepresented gender, which is an important agenda in order to fulfill our long-term goal of equality in management positions.</td></tr><tr><td colspan="4">To address the upcoming sustainability requirements from the EU, we established an ESG Task Force in 2023. This task force was established with the primary objective of coordinating and aligning the implementation of the many new requirements that necessitate a coordinated effort across the entire organisation in the coming years. The members of the task force is management from key departments and areas across the organisation with following sponsors in the Group Leadership Team (GLT): Louise Gade, Executive</td></tr><tr><td colspan="4">Vice President, People, Culture &amp; Sustainability, Peter Bang, Executive Vice President, CFO, and Viktor Jegesi, Executive Vice President, Commercial. In 2024, a major focus will be to ensure a strong governance across and within each ESG topic to align and drive progress on strategic initiatives.</td></tr><tr><td colspan="4">The Sustainability Committee</td></tr><tr><td colspan="4">• Bjørn Gulden, Chairman of the Board (Committee Chair)</td></tr><tr><td colspan="4">• Thomas Carsten Alexander Tochtermann, Board member</td></tr><tr><td colspan="4">• Anders Hagh, President, CEO (Sponsor)</td></tr><tr><td colspan="4">• Henrik Vinther Olesen, Group Vice President,</td></tr><tr><td colspan="4">Sustainability, Communication &amp; Public Affairs</td></tr><tr><td colspan="4">The Audit Committee</td></tr><tr><td colspan="4">• Jens Bjerg Sørensen,</td></tr><tr><td colspan="4">Deputy chairman (Committee Chair)</td></tr><tr><td colspan="4">• Marianne Kirkegaard, Board member*</td></tr><tr><td colspan="4">• Freddy Mikael Sobin, Board member</td></tr><tr><td colspan="4">• Peter Bang, Executive Vice President, CFO</td></tr><tr><td colspan="4">• Randi Toftlund, Group Senior Vice President, Corporate Finance</td></tr><tr><td colspan="4">Overview regarding gender diversity pursuant to Section 99b of the Danish Financial Statements Act</td></tr><tr><td>The Board of Directors</td><td>2023</td></tr><tr><td>Total number of elected members, excluding employee elected board members</td><td>5</td></tr><tr><td>Number of male members</td><td>4</td></tr><tr><td>Number of female members</td><td>1</td></tr><tr><td>Share of underrepresented gender</td><td>20%</td></tr><tr><td>Target for gender diversity (percentage)</td><td>40%</td></tr><tr><td>Year of fulfilment of target</td><td>2026</td></tr><tr><td colspan="4">Pursuant to section 99b of the Danish Financial Statements Act, the table above reports the number of individuals and gender diversity of the Board of Directors in Salling Group A/S as of 31st of December.</td></tr><tr><td colspan="4">Salling Group has a target to increase the share of female members of the Board of Directors to 40%. There has not been any open positions during 2023. Salling Group is working towards achieving the target figure and recognises the benefits of a diverse board, but we also believe that the members should always be chosen based on their overall competencies.</td></tr><tr><td colspan="4">Other managerial levels — the Executive Board and people managers employed by Salling Group A/S reporting to the Executive Board</td></tr><tr><td>Total number at other managerial levels</td><td>10</td></tr><tr><td>Number of male members</td><td>8</td></tr><tr><td>Number of female members</td><td>2</td></tr><tr><td>Share of underrepresented gender</td><td>20%</td></tr><tr><td>Target for gender diversity (percentage)</td><td>40%</td></tr><tr><td>Year of fulfilment of target</td><td>2030</td></tr><tr><td colspan="4">Pursuant to section 99b of the Danish Financial Statement Act, the table above reports the number of individuals and gender diversity of other managerial levels in Salling Group A/S as of 31st of December.</td></tr><tr><td colspan="4">Salling Group has a target to increase the share of female members of other managerial levels to 40%. Members for open posi- tions in 2023 have been chosen based on their overall competencies, and the appointments have not resulted in changes to the gender diversity of other managerial levels. Salling Group is working towards achieving the target figure and recognises the benefits of diverse management teams, but we also believe that the members should always be chosen based on their overall competencies.</td></tr><tr><td colspan="4">Sustainability Legislation</td></tr><tr><td colspan="4">In 2019, the EU adopted the European Green Deal with the strategic aim to become climate-neutral by 2050. The EU Green Deal consists of a package of policies and laws on key sustainability areas like climate action, circular economy, sus- tainable buildings and renovations, sustainable transporta- tion, protection of ecosystems and many more. Although the EU Green Deal will leave no sector unaffected, many of these topics are expected to have a significant impact on Salling Group due to the complexity and nature of our business.</td></tr><tr><td colspan="4">The directives and regulations which we currently expect will have the biggest impact on our business are described below</td></tr><tr><td colspan="4">Corporate Sustainability Reporting Directive (CSRD)</td></tr><tr><td colspan="4">The aim of the CSRD is to improve and broaden sustaina- bility reporting among companies operating in the EU. The CSRD replaces EU’s previous sustainability reporting direc- tive, the Non-Financial Reporting Directive (NFRD) with a much more comprehensive framework. Under this frame- work companies need to disclose their environmental, social and governance impacts by following the EU’s sustainabil- ity standards. The CSRD was formally adopted in 2023, and Salling Group is required to submit its first report based on the CSRD in 2026 for the full year 2025.</td></tr><tr><td colspan="4">Corporate Sustainability Due Diligence Directive (CSDDD)</td></tr><tr><td colspan="4">The CSDDD aims to ensure that businesses take responsibil- ity for the negative impacts of their activities. This directive establishes a uniform EU-wide standard, compelling both EU and non-EU companies to establish due diligence strat- egies regarding human rights and environmental issues. It requires companies to identify and address adverse impacts on human rights and the environment within their opera- tions, subsidiaries, and supply chains. The CSDDD is yet a proposal but is expected to be adopted in 2024.</td></tr><tr><td colspan="4">EU Taxonomy for Sustainable Activities</td></tr><tr><td colspan="4">The EU taxonomy is a classification system that defines cri- teria for a company’s economic activities that are aligned with a net-zero trajectory by 2050 and the broader environmental goals other than climate. As with the CSRD, Salling Group is required to report on the taxonomy in 2026 for the full year 2025.</td></tr><tr><td colspan="4">Deforestation Regulation</td></tr><tr><td colspan="4">The Deforestation Regulation prohibits the placing of cer- tain products on the EU markets if these products are not produced according to the local law in producing countries, or if production have led to deforestation or forest degra- dation. Traders and operators placing products on the EU market, including soy, palm oil, cocoa, beef, coffee rubber or timber, have to assure traceability on geographic locations, and must have proof of compliance to these new require- ments. The regulation was adopted and came into effect on the 29th of June 2023. Salling Group has until 30th of December 2024 to become compliant, and we are currently working on the design of a proper due diligence setup.</td></tr><tr><td colspan="4">Ecodesign for Sustainable Products Regulation (ESPR)</td></tr><tr><td colspan="4">The ESPR establishes a framework to set new design requirements for a broad range of products placed on the market in the EU including textiles, furniture and electronic products. The design requirements comprise performance requirements and information requirements. A key aspect of the ESPR is the EU Digital Product Passport (DPP) which is a tool to electronically register, process and share pro- duct-related information.</td></tr><tr><td colspan="4">Packaging and Packaging Waste Regulation (PPWR)</td></tr><tr><td colspan="4">The PPWR is introducing harmonised rules for the producer responsibility on packaging across the EU. The purpose of the highly detailed regulation can be briefly expressed as: Less packaging waste, more recycling and refilling and only reusable packaging by 2030 at the latest.</td></tr><tr><td colspan="4">Tax Payment</td></tr><tr><td colspan="4">Contributing to society</td></tr><tr><td colspan="4">As an integral part of acting with integrity, we conduct our business based on the principle that taxes and duties are crucial to our welfare society. In addition to embracing the obligation to contribute in the widest possible extent, we believe in the importance of creating real and significant opportunities through our payments. At Salling Group, we view taxes and levies as a lever to improving public services and conditions for our employees, customers and business partners. Locally as well as globally, payment of taxes and duties by companies contributes to accelerating the green transition and to edging us closer to fulfilling the UN Sustain- able Development Goals.</td></tr><tr><td colspan="4">Salling Group’s tax policy</td></tr><tr><td>•        Tax compliance</td><td /><td /><td>1</td></tr><tr><td colspan="4">•        Tax transparency</td></tr><tr><td colspan="4">•        Tax risk management</td></tr><tr><td colspan="4">•        Tax structure and planning</td></tr><tr><td colspan="4">•        Tax governance</td></tr><tr><td colspan="4">Underlining the importance we attach to an open and fair tax practice, overarching responsibility for Salling Group’s tax policy is placed within the company’s Board of Directors appointing Jens Bjerg Sørensen responsible for the tax pol- icy. Responsibility for the tax risk management lies with the CFO. Salling Group does not operate businesses in any low tax jurisdictions 5 years. Our effective tax rate demonstrates that we pay taxes at a rate that contributes to the societies where we operate and we don’t engage in aggressive tax planning or tax evasion. In Denmark we are among the largest corporate tax payers according to the published corporate tax records for 2022.</td></tr><tr><td colspan="4">Total tax payment</td></tr><tr><td colspan="4">In 2023, the total tax contribution from the Group amounted to DKK 8,580 million, compared to DKK 8,198 million in 2022. This includes both taxes paid indirectly by our company (taxes collected), such as VAT and employee income tax, and taxes paid directly (taxes borne), such as corporate income tax and property taxes.</td></tr><tr><td colspan="4">Taxes and duties collected</td></tr><tr><td colspan="4">Taxes and duties levied consist of VAT, withheld taxes and excise duties. The amount for VAT is calculated as net VAT payment to the state, which means VAT on sales minus VAT on purchases. Excise duties charged in Denmark (e.g., on chocolate and alcohol) are only for imported goods, as excise duties on locally produced goods are paid to the authorities by the manufacturing companies.</td></tr><tr><td colspan="4">Taxes and duties borne</td></tr><tr><td colspan="4">The company’s own taxes and fees consist of corporate tax, energy tax, environmental tax and property tax. The largest share of own taxes and levies being corporate tax (71.5%). The Danish entities in the Group delivered a total corporate tax of DKK 446 million. In addition, company taxes totalling DKK 191 million were paid abroad.</td></tr><tr><td colspan="4">Data Ethics Policy</td></tr><tr><td colspan="4">Improving everyday life</td></tr><tr><td colspan="4">In Salling Group, we collect data from our customers when they interact with our stores and our digital platforms. We utilise information on customer behaviour to improve cus- tomer propositions in our stores and on our digital platforms, in terms of providing even better services and offers and thus improving customer experience and everyday life.</td></tr><tr><td colspan="4">Besides being a large retailer, Salling Group is also a large employer. Salling Group’s employees are very valuable to Salling Group and fundamental for the future success of the Group and we put great efforts into safeguarding their data.</td></tr><tr><td colspan="4">Responsibility</td></tr><tr><td colspan="4">As Denmark´s largest retailer we are conscious of the great responsibility we have with regards to data protection. It is important to us and a foundation for our business that our customers and employees have trust in our collection and use of data. We nurture an open and positive culture among our people to ensure openness and understanding of a diligent and prudent utilisation of data throughout our organisation.</td></tr><tr><td colspan="4">Transparent and safe processing of</td></tr><tr><td colspan="4">personal data</td></tr><tr><td colspan="4">It is important to us that our customers are interacting with us on an informed basis and that they feel safe in doing so when we collect and process personal data. Our privacy policies inform about the basis for, and extent of, our processing of personal data, and here we explain how we process personal data. Our collection and processing of personal data will always be based on specifically stated purposes.</td></tr><tr><td colspan="4">Data security</td></tr><tr><td colspan="4">Salling Group maintains a high level of data security throughout our applications and solutions. All digital activities are governed by Salling Group’s company-wide security policies, and all systems and processes are continuously monitored to protect data against unauthorised disclosure, destruction or manipulation.</td></tr><tr><td colspan="4">To read more about the statutory statement on data ethics, in accordance with section 99d of the Danish Financial Statements Act, follow the link below*.</td></tr><tr><td colspan="4">Sustainability Reporting</td></tr><tr><td colspan="4">Responsible sourcing</td></tr><tr><td colspan="4">Our human rights due diligence approach – upstream supply chain</td></tr><tr><td colspan="4">Our work with responsible sourcing is fully integrated within our commercial operations. The strategy, policies and initi- atives are managed centrally by the Quality and Respon- sible Sourcing Department, ensuring that our products are sourced with care for the people involved.</td></tr><tr><td colspan="4">Salling Group has developed a classic due diligence setup, with a foundation based on our Human Rights Policy, and the adopted amfori Code of Conduct. The UN Global Com- pact membership has additionally brought us a framework that enables us to systemise our processes and keep them aligned with universal principles and practices.</td></tr><tr><td colspan="4">The following steps represent the key cornerstones of our due diligence</td></tr><tr><td colspan="4">Risk assessment</td></tr><tr><td colspan="4">As a retailer, we are engaged in complex and deep supply chains, sourcing various products from many different coun- tries in the world. To know where to start, we map actual and potential impacts of our business on an annual basis. Essen- tial parameters that are part of the upstream identification involve country stability, systematic salient risks related to industry, and vulnerable worker groups.</td></tr><tr><td colspan="4">In order to act where it matters the most, we consider the scale, scope, remediation options and likelihood of the dif- ferent salient impacts.</td></tr><tr><td colspan="4">Mitigating risks</td></tr><tr><td colspan="4">To detect where salient impacts are part of our supply chains, we apply 3rd party auditing. Within this process sup- pliers, and their producers are asked to create corrective action plans and remediate non-compliances. This effort is central when attempting to actively minimise or prevent any</td></tr><tr><td colspan="4">risks related to human- and/or labour rights within our sup- ply chains. In severe cases, we engage with relevant supply chain partners to seek suitable solutions as to remediation. This often involves stakeholder dialogues, educational train- ings or additional certification.</td></tr><tr><td colspan="4">We have developed key commodity requirements that also function as preventive measures in relation to foreseeable negative impacts.</td></tr><tr><td colspan="4">Tracking and monitoring</td></tr><tr><td colspan="4">Upstream actors of our supply chains and compliance with our human- and labour rights requirements and expecta- tions are followed via Salling Group’s Responsible Sourc- ing System. Herein data is kept and maintained in relation to supply chain transparency and social documentation. Alongside this and more importantly we have a close dia- logue with our suppliers and their producers to follow the development and performance.</td></tr></table> -69794000000 466000000 50524000000 19736000000 9089000000 5696000000 4951000000 2555000000 25000000 2421000000 227000000 568000000 2080000000 493000000 1587000000 -13000000 611000000 -55000000 -75000000 468000000 2055000000 2843000000 -757000000 4166000000 201000000 569000000 554000000 3244000000 100000000 1897000000 1000000 250000000 0 381000000 210000000 -1919000000 52000000 730000000 501000000 132000000 200000000 -1470000000 -145000000 7000000 Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Cortex Park Vest 3 5230 Odense M xWizard version 1.1.1262.0, by EasyX Aps. www.easyx.eu 2022-01-01 2022-12-31 Revisionspåtegning Grundlag for konklusion Konklusion 18003 Anders Hagh CEO Bjørn Gulden Chairman Jens Bjerg Sørensen Freddy Mikael Sobin Thomas Carsten Alexander Tochtermann Samuel Dam Rützou Employee representative 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