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34 SUPPLY CHAIN CIRCULAR ECONOMY At Lidl, we provide top quality and responsibly sourced products at market leading value. Working closely with our suppliers, we aim to reduce any potential negative environmental and social impacts of our local and global supply chains. Every product we place on our shelves has been supplied to us by one of our valued suppliers. Product production is a step by step process, from farm to fork, which represents a supply chain network. Supply chains can vary in complexity depending on the product and its origin, making them susceptible to potential social and environmental impacts. Our supply chains are not limited to food products, they also include non-food items, such as textiles or equipment, as well as service providers, from technicians to maintenance providers.1 ACTION: We take pride in our range of top-quality products and are fully committed to ensuring that our buying power is driving positive change for producers, manufactures, suppliers, communities and the environment, both in Ireland and further afield. This commitment is lived through our dedicated supply chain initiatives and ever growing and ambitious targets. Circular Economy2 In line with our plastics strategy REset Plastic, we are working proactively and collaboratively with our suppliers and industry partners to reduce plastic use and improve packaging recyclability across all our products. While packaging can serve important functions such as food safety, protection in transit, maintaining quality and information communication, we are very aware of the need of reducing the use of plastics across our product ranges and replacing them with more sustainable alternatives, while also increasing the post-consumer recycled content of our packaging and the recyclability of the materials used.3 1, 2, 3, 4 Lidl Specific GRI ACTION:4 Loose Products: In relation to lose fruit and vegetables, we have introduced numerous additional loose options, bringing the overall loose lines to approximately 20% of our range. We must be vigilant in our approach to ensure we are working towards SDG Goal 12.3 and supporting the objectives of the Food Waste Charter. We will continue to trial the removal and adaptation of packaging whilst maintaining our food waste and zero waste to landfill commitments within our operations. Packaging Guidelines: We have also updated our supplier packaging guidelines to ensure our reduction requirements and commitments are clear and our suppliers are fully supported. Single Use: We have removed all single-use plastic items such as plastic drinking straws, disposable plastic cups, glasses, plates and cutlery from sale since 2019. These items were replaced by recyclable alternatives ahead of the EU Directive restricting certain single-use plastic products which came into effect in July 2021. Black Plastic Removed: We have removed unrecyclable black plastic from fruit and vegetable, fresh fish products, cured meat and the majority of our fresh meat and poultry, converting almost 500 tonnes of plastic into fully recyclable packaging. In 2020 we launched a sustainable packaging innovation for two brand-new beef products initially, with the view to roll out to 10 further products in our premium steak range early next year. In partnership with longstanding supplier, Liffey Meats, we unveiled the new and improved paper tray made with FSC-certified paper and using 75% less plastic which equates to a savings of more than 70 tonnes of plastic per year. RESOURCES Protection of Ecosystems Animal Welfare Standards Environmental Protection: Supply Chain SUPPLY CHAIN Employment Related Supplier & Market Human Rights Development Corporate Environmental Management OPERATIONS Employee Responsibility Responsible Products CUSTOMER Transparency Social Value Responsible at Point of Sale Creation Communication Guidelines