Sustainability.

Improving life.
 INTRODUCTION
04

Better Planet
CO2 AND CLIMATE CHANGE
09

NATURE AND BIODIVERSITY

12

PLASTIC
15

Better Community
INEQUALITIES AND INCLUSIVE
DEVELOPMENT
19

COMMUNITY SUPPORT
22
“Sonae understands success
requires reaching the highest
standards across the whole
spectrum of economic
performance and social impact.
Our drive towards sustainability is
part of who we are and we have
no doubts that our mission is to
create and share both economic
and social value. Such ambition
took us on a journey of hard-
won successes, always anchored
in delivering a solid economic
performance while making a
difference towards a better
society including respecting
and caring for nature. In a time
when our planet’s ecosystems are
hurting and societies are being
torn apart by inequality and
lack of stewardship, it has never
been easier to know that our
convictions are fundamental. (…)
I think there is finally a common
understanding of the major
impact sustainability will have
on business performance, and
consequently on social progress,
and that they cannot be handled
separately, but rather they have
to be the central dimension of
any business strategy together.
I believe that there is enormous
value creation potential behind
this framework of thinking and
that many future winners will
arise from discovering new ways
to unlock this potential”

Paulo Azevedo
in Letter from the Chairman
Management Report 2019
As part of our quest to improve life
and our sustainability performance
we have reviewed our governance
model with the establishment of
the Sustainability Advisory Group
of the Sonae Companies. It aims
to strengthen the definition of
policies, the establishment of clearly
defined goals and targets and the
implementation of strategic projects
with regard to how we care for our
communities and planet.
The Group’s efforts are focused
in five strategic areas, that
are transversal to our different
businesses - CO2 and Climate
Change, Nature and Biodiversity,
Plastic, Inequalities and Inclusive
Development and Community
Support.
The initiatives and figures in this
brochure are a reflection of our
teams’ commitment to sustainability
as a core component of our DNA.
“In a context of increasing
uncertainty and speed, as
well as mounting competitive
pressures, our teams confirmed
their ability to collaborate with
each other and perform to a
remarkable standard. They did
so by contributing to solve
challenges that go far beyond
their day-to-day activities and
by helping us have a longlasting
contribution to the most pressing
social and environmental issues.”

Cláudia Azevedo
in CEO Letter
Management Report 2019
Better
Planet
CO2
and climate
change
 Climate change has been on our
agenda for a long time and in 2019
Sonae and its portfolio of companies
raised the bar by setting the reduction
targets of their own greenhouse gas
emissions.

Aligned with the decarbonisation trajectories needed to limit global warming to 1.5°C, our
companies pledged to reduce their own emissions by 54% in 2030, compared to 2018, in
accordance with the Paris Pledge for Action of which Sonae is a signatory.
It is a goal that challenges us, tests our skills and requires us to rethink and innovate how we
design and manage our business. Several initiatives have been implemented to accelerate our
path toward the decarbonisation of our activities.
Sonae’s efforts were internationally recognised by CDP with the award of the level A-, which
boosts our confidence by confirming that we are on the right track. In 2019 we registered:

+21% -22% -54%

of renewable energy GHG emissions GHG emissions by 2030,
produced compared to 2018

25,000 3,5 million 2,800 tonnes

trips made (+40% kms of travel avoided of CO2 emissions avoided
compared to 2018) (+200% from 2018)

co2 and climate change 10

Ensuring efficient and flexible energy consumption

We have continued our efforts to promote efficient and flexible energy consumption by investing
in the installation of more efficient equipment and systems, creating the conditions necessary
+21% -22% -54%
to better monitor and manage consumption, and developing programmes and procedures to
enhance our performance.
of renewable energy GHG emissions GHG emissions by 2030,
The Backhauling Programme, is a unique partnership between Sonaecompared
produced and its suppliers
to 2018 that seeks to
reduce the number of trips that their trucks make whitout load. An important initiative considering
that the use of fossil fuels is responsible for 26% of the Group’s total energy consumption. The
transport provided under the Backhauling programme already represents 18% of the total trips
carried out.

+21% -22% -54%

of renewable energy GHG emissions GHG emissions by 2030,
produced compared to 2018

25,000 3,5 million 2,800 tonnes

trips made (+40% kms of travel avoided of CO2 emissions avoided
compared to 2018) (+200% from 2018)

Investing in the decarbonisation of our energy matrix

25,000 3,5 million 2,800 tonnes
trips made
The (+40%
decarbonisation kms of
of our energy travel avoided
matrix, of CO2of
through the production emissions avoided
electricity effectively
compared to 2018) (+200% from 2018)
produced from renewable sources, was another axis that we pursued in the last year. Along with

157 16
the promotion of electric mobility, other accomplishments include:

photovoltaic plants powering the new photovoltaic plants

retail structure installed in 2019

157 16
photovoltaic plants powering the new photovoltaic plants

+22
retail structure
charge points for electric
vehicles at our offices
installed in 2019
electric vehicle stations
launched the pilot to install electric
vehicle charge stations in our stores
in the second half of 2020

+22 electric vehicle stations

charge points for electric launched the pilot to install electric
vehicles at our offices vehicle charge stations in our stores
in the second half of 2020

co2 and climate change 11

Nature and
biodiversity
 The dependence of our companies on
natural capital, and the way in which
they directly or indirectly have the
potential to alter or contribute to the
destruction of natural habitats, leads
us to consider issues related to the
conservation of nature and biodiversity
as strategic for the Group.

We do so by promoting more responsible supply chains, re-thinking the food system – working
to minimize food loss and inspire more sustainable consumption patterns to our customers - and
supporting a vast range of conservation initiatives.

Empowering productive and regenerative agriculture

• The certification of the origin of raw materials used in the development
of our own brand products has a significant impact. These standards
ensure compliance with specific criteria to reduce the negative impacts
on the environment and communities. Coffee, tea, cocoa, palm oil and
paper are some of the raw materials the Sonae’s portfolio of companies
are prioritizing.

Caring for a healthy and productive ocean

• Our Sustainable Fishing Policy aims to minimise the impacts of fishing
activities on marine biodiversity and promote the adoption of sustainable
fishing practices. Our consumption patterns are endangering some
species. To reduce it we have extended our range of supply by 20%
in 2019.

nature and biodiversity 13

Combating food waste
• By employing efforts to minimise food waste we are reducing production
needs and therefore contributing to conserve natural ecosystems. This
effort has been developed through several initiatives, including the
donation of food products to charitable institutions, creation of circular
economy products and the reduction of the price of food products that
are approaching their expiration date.

Promoting a healthy diet

• In 2019, 450 tonnes of sugar, 300 tonnes of saturated fat and 60 tonnes
of salt were removed from Continente’s private label products through
the nutrional optimization plans for 100 products.

Inspiring sustainable consumption patterns

• 31,000 students educated on healthy eating and conscious consumption
through the Escola Missão Continente programme that recorded a 30%
growth in the last year.

Protecting and restoring nature

• To reforest the areas most affected by the fires in the Iberian Peninsula
in 2017, Worten agreed to plant a tree for every customer who bought
an A++ or A+++ household appliance, as well as for any end-of-life
equipment for recycling, delivered in store (or collected from homes).
This initiative – known as the Troca Eficiente campaign – will lead to the
planting of about 16,000 trees in Portugal and Spain.

20,600 trees were donated by Sonae and its portfolio of companies

in 2019.

nature and biodiversity 14

Plastic
 We are aware of the escalating
environmental catastrophe surrounding
plastic. Given its utmost relevance
across most of Sonae’s portfolio, we
have written the Sonae Companies’
Charter of Principles for Plastic, a policy
that encompasses our vision towards a
more responsible use of plastic.

In early 2019, Sonae MC strengthened this ambition, becoming the first Portuguese retailer to join
the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment. Later in the year,
Sonae joined the Portuguese Pact for Plastics.
By 2025 Sonae commits to:

100% 70% 30%

of our private label plastic more of plastic packaging recycled plastic incorporation
packaging to be reusable, effectively recycled through into new plastic packaging
recyclable or compostable increased collection and recycling

22,558 tonnes 2,000 tonnes

of plastic mapped of plastics eliminated from our
packaging and products

plastic 16
100% 70% 30%
We have accelerated the way we are translating this vision into action. Throughout 2019, we
focused our action on identifying and quantifying the plastic materials existing in the packaging
and
of ourproducts that
private label Sonae is responsible
plastic more offor producing,
plastic packagingas well as the plasticplastic
recycled generated within our
incorporation
packaging
operations.to be reusable, we have continued
In parallel, effectivelywith
recycled
the through
implementation into
of anew plastic
diverse packaging
set of actions that
recyclable or compostable increased collection and recycling
aim to reduce the consumption of virgin plastic and other unnecessary materials, namely through
the introduction of recycled raw materials or a reduction in the quantities used. In 2019:

22,558 tonnes 2,000 tonnes

of plastic mapped of plastics eliminated from our
packaging and products

4,431 tonnes 11%

of virgin plastic avoided with the reduction in plastic used in
inclusion of recycled plastic packaging at Sonae Fashion

Reinforcing the principles of circularity

Worten’s UTRAD (Depreciated Items Treatment Unit), active since 2005, embodies the principles
underlying a circular economy model. Rather than discarding items with minor defects and flaws,
the initiative aims to recover items to sell at a reduced price in Outlet stores. Over the last 14
years, it has given new life to ~700,000 pieces of equipment. In 2019, 76% of the items sent to
UTRAD were sold at discount prices.

Raising communities’ awareness

Continente, together with Sociedade Ponto Verde (SPV, Eco Point Society), developed a set of
instructions that explains how each product should be recycled and indicates which eco-point
each type of packaging should end up. The recycling iconography will be included on all of
Continente’s own brand products by 2021.

plastic 17
Better
Community
Inequalities
and Inclusive
Development
 We see inequality as one of the most
complex and urgent social problems of
our times. As a refence employer, this is
a challenge to which we can contribute.

Promoting Gender Equality

For decades, the values of equality and inclusion have been actively
encouraged throughout the organization. We are conscious of the
wealth that exists within the heterogeneity of our people´s backgrounds
and profiles. Our ambition is to be a diverse and inclusive organisation,
able to promote, attract and integrate people with different profiles
and experiences. The Plan for Gender Equality, approved in 2019, is an
important tool to advance this agenda internally.

34%
of management positions
held by women

Boosting a culture of permanent learning and development

34%
To effectively respond to the current and future challenges of our businesses, a variety of
development tools, academies and programs were launched or continued in 2019. A set of
alternative training
of management formats adapted to the contexts of different businesses and the profiles of
positions
held by women
our employees such as:

1.18M
• The Qualifica Centre – a pioneering programme from Sonae MC that
aims to increase the qualification level of our employees by 5% in 2022.
hours of training It has already certified 454 employees.
• The Leadership Paths Programme – developed by Worten Academy,
consists of a macro-skills development programme tailored-made to
the profile of Worten’s Head of Stores. In 2019, 286 store managers
were reached.
• The Accelerated Development Program – a five-month programme that
1.18M results from an innovative partnership with Nova SBE and McKinsey
and aims to promote the acquisition of strategic skills that sustain both
hours of training present and future organizational impact.

42%
participation rate of central
structure employees in the new
work-life balance programmes inequalities and inclusive development 20
1.18M
Fostering
hours of training Work-Life Balance

To promote a more inclusive workplace it is important to have in

place key tools and procedures that allow employees to take greater
ownership over their work-life balance. In 2019, the programmes
developed across businesses include benefits such as: extra vacation
days, flexible working hours, promoting remote work, offering unpaid
leave and reduced working hours.

42%
participation rate of central
structure employees in the new
work-life balance programmes

CEO Guide for Human Rights

In 2019, Sonae subscribed to the CEO Guide for Human Rights, developed by the World Business
Council for Sustainable Development (WBCSD). This document benefitted from the initial support
of 43 companies, present in 17 countries, responsible for 2.8 million direct employees. The main
goal of this Guide is to encourage companies to go beyond legislative standards with respect to
Human Rights and empower the transformation of their supply chains.

inequalities and inclusive development 21

Community
Support
 Stronger communities are important to
create a more sustainable society. Within
the framework of our businesses, we aim
to increase the resilience and autonomy
of the communities in which we operate,
contributing to the elimination of
poverty in all its different forms.

Our actions are designed to bring our people and companies closer to the communities where
our resources are directed towards initiatives, which in partnership with other organisations,
contribute to improving the most vulnerable communities.
Among other initiatives, in 2019 Sonae deployed the following resources:

11M€ 1,217
invested in community support participants in our volunteering
programme, Sonae Activshare

7,000 26,000
volunteer hours donated by the children supported by Sonae
Sonae employees (10% increase volunteers through the Junior
from 2018) Achievement Program since 2006

community support 23
Partnering with our communities

Missão Continente supported around 1,000 institutions through the scope of its daily donation of
surplus food programme.
Worten Transforma programme facilitated the collection of 6,002 tonnes of waste of electrical
and electronic equipment (WEEE) that will be transformed into new equipment and donated to
almost 100 social solidarity institutions across the country.
The Zippy and Make-a-Wish partnership led to the first edition of the solidarity concert We Go
Together - a relaxed event for family and friends that combines good music and a solidarity cause.
Sonae Sierra joined the Alzheimer Portugal Association supporting the Amigos na Saúde e na
Demência campaign. A positive and inclusive initiative that aims to increase understanding of
dementia and stigma associated with it.

Supporting our people

Somos Sonae is an internal programme that aims to support our employees during vulnerable
phases. During the 6 years that it has been active, the initiative has already supported
2,033 people - reaching household members, including 778 children – and has led to the investment
of around 1 M€.
Ensuring the privacy of our people and their families, the processes are carried out by a specialised
and multidisciplinary team from the Portuguese Red Cross that is mobilised to analyse any requests
for support received. After an initial assessment, a support plan is developed and implemented.

To learn more about Sonae’s performance see the 2019 Management Report available here.

community support 24