Sustainability Report of the Companies of Schwarz Group FY 22/23 Acting ahead

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 3 About This Report Content and Scope of the Report [GRI 2-1, 2-2, 2-14] This report is the joint Sustainability Report for the companies of Schwarz Group. Production of the report was coordinated by Schwarz Unterneh- menskommunikation GmbH & Co. KG (Schwarz Corporate Communications) on behalf of the com- panies of Schwarz Group. The words “we”, “us”, “our”, or similar expressions are meant to repre- sent all of these companies. Schwarz Group com- prises the retail divisions Lidl and Kaufland, the environmental service provider PreZero, the pro- duction division Schwarz Produktion, Schwarz Digits, and the corporate functions and operations division Schwarz Dienstleistungen, as well as oth- er companies and national organizations (see also p. 11). This report provides an overview of the stra- tegic basis and management approach to sustain- ability in the companies of Schwarz Group. To give a comprehensive picture of our activities, the re- port not only includes the jointly developed strate- gies and management approaches, but also pro- vides information on the work of individual compa- nies and national companies. The Sustainability Report has been reviewed by CR/CSR and the relevant departments in the companies of Schwarz Group. Reporting Standard and Navigating the Report The report was compiled in accordance with the GRI standards. Corresponding contents are indi- cated in the GRI Content Index from p. 124. The content index contains the relevant page ref- erences to aid navigation through the report. In addition, texts and KPIs are marked with the corresponding GRI references. Reporting Period and Cycle [GRI 2-3] The report relates to the period between March 1, 2022 and February 29, 2024, and therefore cov- ers two full fiscal years. For reasons of complete- ness and to demonstrate developments, some key performance indicators are displayed over a three year course. Cut-off dates for data collection were – unless otherwise indicated – February 28, 2023 for FY 2022 and February 29, 2024 for FY 2023. Editorial deadline was August 30, 2024. If information from outside the reporting period was included, these passages are clearly indicat- ed in the text. The companies of Schwarz Group publish a comprehensive sustainability report every two years, as well as an interannual progress report. Key Performance Indicators [GRI 2-3, 2-4] The key performance indicators shown generally refer to all companies of Schwarz Group and are therefore labeled as aggregate key performance indicators or reported for the specified business units, respectively. Individual companies contrib- ute to the key performance indicators which con- cern them based on their business activity or their business model. Purchasing figures, for instance, refer to the retail divisions only. For all companies, all units that were operating for the duration of at least one complete fiscal year (FY) are considered in the figures. The Human Resources topic area is an exception to this: Here, figures of all operation- ally active units are included, in addition to the key performance indicators collected as part of the annual financial statement. No new units were included for Kaufland in the FY 2022/23 reporting period, while Tailwind Shipping Lines has been included in the key performance indicators for Lidl as of FY 2022. From FY 2022, as a result of the acquisition of SUEZ and Ferrovial, PreZero has grown to include new companies in Luxembourg, Poland, Germany, the Netherlands, Spain and Portugal. At Schwarz Produktion, Bon Presso (business unit coffee) has been included in the key performance indicators since FY 2022 and Bon Pasta (business unit pasta) and Maxauer Papier- fabrik (business unit paper) since FY 2023. Schwarz Digits was founded as an independent division in FY 2023. The key performance indica- tors reported for FY 2023 and previous years have been subtracted from the Schwarz Dienst- leistungen figures included in earlier reports and are now reported separately for Schwarz Digits for the first time. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 5 Preface [GRI 2-22] Dear readers, Driving ahead instead of hesitating, acting instead of reacting: As companies of Schwarz Group, we do not wait for challenges to become problems. We act ahead in order to promote a sustainable, healthy and safe life for billions of people. Acting ahead – for the People in Our Ecosystem. People are at the heart of what we do. Our more than 575,000 employees are decisive for the success of the companies of Schwarz Group. Our team is made up of 168 different nationalities, making our colleagues just as diverse as our unique ecosystem along the entire value cycle – from production through retailing up to recycling and our digital services. This wide spectrum of experience, ideas and skills opens up new per- spectives and expedites innovations. Our diversity makes us strong. It is our motor. Acting ahead – for a Sustainable Circular Economy. assuming our responsibility. We act ahead – decisively – for climate protection. Our jointly defined aim is to preserve resources and close recycling loops. With this in mind, we reached important milestones in the 2023 fiscal year. We reduced the percentage of plastic in our private-label packaging and transport aids by 34 percent. As such, we have already exceeded our original reduction target of 30 percent by 2025. Moreover, we have increased the recycled materi- als content of private-label packaging made of plastic to 19 percent. By 2025 we shall increase this proportion to 25 percent. This progress moti- vates us to continue driving ahead with the transi- tion to a circular economy. Acting ahead – for Climate Protection. Acting ahead – Together with Strong Partners. We create transparency with the aid of our Sus- tainability Report and integrate all stakeholders into our joint commitment to sustainability. Every day we work shoulder to shoulder on inno- vation solutions with our customers and partners, such as the development of sustainable, electri- fied logistics, the drone-supported inspection of rooftops at logistic locations or on digital services like our European cloud service. In this way, we improve the life of current and future generations. For, our successes to date drive us forward. We always act one step ahead. With one ecosys- tem along the entire value cycle. Let us tackle this together – in a unique ecosystem for a better life! Gerd Chrzanowski General Partner Schwarz Group Scientifically based climate targets form the basis of our sustainability activities. We joined the Sci- ence Based Targets initiative (SBTi) back in 2020. Now we are taking the next logical step: The com- panies of Schwarz Group submitted an official joint net-zero commitment to the SBTi in Septem- ber 2024. As such, we are committing to reduce all emissions that we generate to net-zero by 2050 at the latest. In this context, we are supplementing our existing jointly approved supplier obligations with absolute reduction targets in the upstream and downstream supply chain and are supporting our respective suppliers in implementing them together. In specific terms, this means a reduction of our indirect emissions in the agriculture and forestry area of 42.4 percent as well as 35 per- cent in the energy and industrial processes cate- gory. These measures make it clear that we are Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 7 Profile of Schwarz Group [GRI 2-1, 2-6 and 2-7] With about 575,000 employees in over 30 countries and total sales of 167.2 billion euros, Schwarz Group is among the top retail groups in the world. Hardly any other corporate group is more diverse than we are, since our companies cover the entire value cycle. Based in Neckarsulm, Baden-Wuerttemberg, the two retail divisions Lidl and Kaufland form the pillars in the food retail market. In addition, Schwarz Produktion is active in food manufacturing, and PreZero in environmental services. The topics of digi- talization and IT are driven forward in a separate divi- sion, Schwarz Digits. All of the companies of Schwarz Group receive support from various service compa- nies at home and abroad. As at the end of fiscal year 2023, Schwarz Group comprised 1,195 (2022: 1,135) companies. In all areas of Schwarz Group, we use our influence on society and the environment to make a positive contribution to sustainable development. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 9 Profile of Schwarz Group Recovery and Recycling [GRI 2-1 and 2-6] PreZero is committed to a clean future where an efficient and fully closed recycling loop protects our environment. Together with their employees and partners, the companies of PreZero Group are working hard to close loops, develop packag- ing innovations and protect the environment and climate by using resources efficiently. PreZero Group is an international environmental service provider. Across approximately 460 loca- tions in eleven countries and with around 30,000 employees, PreZero handles the disposal of waste and the sorting, treatment and recycling of some 23.9 million tons of recyclables annually. In addi- tion to operational waste management and recy- cling, PreZero is also active in the field of packag- ing consulting and licensing (PreZero Dual). The portfolio is supplemented by GreenCycle, the internal provider of services such as the recycla- ble materials management of the companies of Schwarz Group, as well as by OutNature’s sustain- able fiber and paper products and sustainable packaging and logistics solutions provided by Pre- Turn. In the 2023 fiscal year, PreZero generated sales of 3.7 (2022: 3.9) billion euros. This decline in sales is due to falling prices on some of the re- cyclables markets. However, PreZero has good news to report when it comes to market develop- ment: The environmental division of Schwarz Group recorded a significant increase in the num- ber of municipalities turning to it for waste dispos- al services year on year. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 11 Profile of Schwarz Group Overview Lidl Gruppe Kaufland Gruppe PreZero Gruppe Schwarz Produktion Schwarz Digits Schwarz Dienstleistungen Schwarz Digits KG Schwarz IT Schwarz Dienstleistung KG x Schwarz Beschaffung Schwarz Digital GmbH STACKIT XM Cyber Lidl e-commerce Kaufland e-commerce Schwarz Media mmmake x Schwarz Mobility Solutions GmbH (vehicle fleet) x Schwarz Immobilien Service GmbH & Co. KG x Schwarz Versicherungs- vermittlung GmbH & Co. KG x … Lidl Stiftung & Co. KG (international) Kaufland Stiftung & Co. KG (international) PreZero Stiftung & Co. KG (international) Schwarz Produktion Stiftung & Co. KG National companies x Lidl Dienstleistung GmbH & Co. KG (DE) x Lidl Sverige Komanditbolag (SE) x Lidl ITALIA S.r.l. (IT) x Lidl US, LLC (USA) x Lidl Great Britain Limited (GB) x Lidl Supermercados S.A.U. (ES) x Lidl SNC (FR) x Lidl sp. z o.o. sp.k. (PL) x Lidl Discount S.R.L. (RO) x … Regional distribution centers, logistics companies, sales companies Lidl Digital (online) … National companies x Kaufland Dienstleis- tung GmbH & Co. KG (DE) x Kaufland Bulgaria EOOD & Co KD (BG) x Kaufland Polska Mar- kety sp. z o.o. sp. k. (PL) x Kaufland Ceská republika v.o.s. (CZ) x KAUFLAND HRVATS- KA k.d. (HR) x GreenCycle GmbH x OutNature GmbH x PreTurn GmbH x PreZero Dual GmbH National companies x PreZero Deutschland KG (DE) x PreZero Polymers Italy S.P.A. (IT) x PreZero Polska sp. z o.o. (PL) x PreZero España, x Kaufland Romania S.A.U. (ES) Societate in Comandita (RO) x PreZero Portugal, S.A. (PT) x Kaufland Slovenská republika v.o.s. (SK) x … x PreZero Recycling AB (SE) x LAMESCH Exploitation s.a. (LUX) x … Regional distribution centers, logistics com- panies, sales compa- nies Meat processing plants … MEG (Beverages, plastics and recycling)1 Solent Übach-Palenberg GmbH & Co. KG (Chocolate, dried fruit, nuts) Bonback GmbH & Co. KG (Baked goods) Bon Gelati Übach-Palen- berg GmbH & Co. KG Bon Gelati Haaren GmbH (Ice cream) Bon Presso GmbH & Co. KG (Coffee products) Bon Pasta GmbH (Pasta) … 1 | Production and recycling at eight locations in Germany by MEG Leißling GmbH, MEG Jessen GmbH, MEG Löningen GmbH, MEG Kirkel GmbH, MEG Wörth GmbH, MEG Roßbach GmbH, MEG Neuensalz GmbH, MEG Übach-Palenberg GmbH Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 13 Profile of Schwarz Group Performance [GRI 2-6, 201-1 and 203-1] The companies of Schwarz Group are constantly developing their business, and thus setting the foundation for future success. Accordingly, during the reporting period, we continued growing our business in all business areas and in over 30 countries. By the end of the 2023 fiscal year, the companies of Schwarz Group generated total sales of 167.2 (2022: 154.1) billion euros with a total workforce of over 575,000 employees (corre- sponding to an increase in sales of 8.5 percent compared with 2022). Improved processes and further digitalization made it possible to generate additional revenue with the same number of em- ployees. Across 13,900 (2022: 13,700) stores globally, the retail divisions Lidl and Kaufland wel- comed some 7.2 (2022: 6.8) billion customers. We owe this to our highly motivated employees as well as to stable business and supply processes. Digitalization is a crucial factor in the success of the companies of Schwarz Group, and this is also reflected in the retail divisions’ comprehensive omnichannel strategy: Lidl and Kaufland link their brick-and-mortar business with the online world in an optimal fashion. The Lidl online shops, Kau- fland online marketplace, and the Lidl Plus and K-Card loyalty programs are key components of this strategy. Lidl online shops are already avail- able in eight countries – in Belgium, Germany, France, the Netherlands, Poland, Slovakia, Spain and Czechia. In the online marketplace Kaufland. de, more than 11,000 sellers offer more than 45 million products. Kaufland opened new online marketplaces in Slovakia and Czechia in 2023, with plans to open new online marketplaces in Austria and Poland in 2024. The companies of Schwarz Group generated a total of 1.7 billion eu- ros in online sales in 2023. With investments of around 8 billion euros, our brick-and-mortar business was strengthened, and strategic projects and digital business areas were developed. This included the expansion of Schwarz Produktion and the establishment of Schwarz Digits. Capacity at Schwarz Produktion was expanded in the reporting period with the acquisition of a number of production sites: Bon Pasta, a pasta factory with a rich history, became part of Schwarz Produktion in October 2022. Meanwhile, the acquisition of Maxauer Papierfab- rik in February 2023 secured a reliable supply of environmentally friendly and ecologically sustain- able paper for the retail divisions. In Great Britain, MEG Derby started operating at the end of 2023. Our investment activities also focused in particular on modernizing and expanding stores, new ware- house locations, and securing supply chains. Around 13,900 stores Active in over 30 countries Around 575 thousand employees worldwide Around 7.2 billion store customers at Lidl and Kaufland 168 sorting and recycling plants 254 warehouses 16 production sites Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 15 Moreover, the companies of Schwarz Group also get involved in a variety of cooperations and net- works, and participate in dialog and exchange formats initiated by third parties. For instance, we regularly engage in constructive dialog with NGOs, which not only gives us inspiration for the sustainable development of our product assort- ment but also enables us to establish a position on a range of issues that are relevant to society. Representatives of the companies of Schwarz Group participate in various events, for example by giving speeches at conferences and taking part in panel discussions. Our Stakeholder Events [GRI 2-16, 2-26, 2-29] We also engage in dialog with our stakeholders via our own formats. The following overview presents a selection of the dialog formats organized in- house during the reporting period: x x In April 2022, a panel discussion initiated by Lidl in Germany was held under the heading “Lidl im Dialog” (Lidl in Dialog). The discussion ad- dressed the question of how uniform sustain- ability labeling for food products can be imple- mented across the entire food sector in Germa- ny. In March 2023, the same format was used to examine the transition to healthy and sustain- able nutrition. Representatives from politics, business, society and science were invited to both events. In November 2022, Kaufland in Germany orga- nized a panel entitled “Nachhaltige Immobilien im Spannungsfeld zwischen Vermieter und Mieter” (Sustainable Real Estate Practices and Aligning these Practices with the Conflicting Interests of Landlords and Tenants) in coopera- tion with “Der Tagesspiegel” newspaper as part of the Future Sustainability Week in Berlin. The panel addressed issues such as the chal- lenges that tenants face in trying to make their rented premises more sustainable. The discus- sion proved a valuable source of inspiration for Kaufland as it strives to find joint solutions with its landlords to reach its own climate targets. x As part of the SCHWARZ Brotzeit dialog series organized by the representative office of Schwarz Unternehmenskommunikation GmbH & Co. KG in the capital, politicians with subject matter expertise were invited to a discussion in Berlin. In December 2022, a dialog took place as the year drew to a close. At a dialog event in September 2023, participants reflected on the past six months in politics and discussed future topics of relevance. x x In October 2023, the Public Affairs department at Schwarz Unternehmenskommunikation GmbH & Co. KG organized the “Schwarz Im- pulse” event on the topic of digitalization in Brussels. Various speakers gave the audience of some 200 representatives from the worlds of politics and business an insight into the current situation in digitalization and the opportunities and challenges in this field. Participants were then invited to share their thoughts and ideas. In December 2023, Kaufland in Germany invit- ed representatives from politics and business to attend a panel discussion at the logistics center in Möckmühl. The EV charging station with eight charging points was officially opened during the event, which focused on innovative spirit, alternative drives, climate protection and sustainable supply chains. x Kaufland in Germany demonstrated its commit- ment to sustainability at “Grüne Woche,” the leading trade fair for food and agriculture, in January 2024 with its own booth and program of events. Highlights included the presentation of Kaufland in Germany’s first sustainability report. The opportunity to connect and interact with partners, suppliers, politicians and other interested parties was a key focus for Kaufland at the event. x PreZero engaged in stakeholder dialog with representatives from the fields of politics, sports and science as part of its certification for sus- tainable waste and resource management at Bundesliga team TSG 1899 Hoffenheim’s soc- cer stadium. The participants discussed the motivations for sustainable action, the potential for sustainability in sports, and potential political courses of action. Employee Surveys [GRI 2-16, 2-26, 2-29] In order to systematically gather insights on the opinion of the employees of the companies of Schwarz Group, we regularly conduct the jointly developed employee surveys. In the surveys, em- ployees across all divisions are asked about their level of satisfaction. The latest survey took place in fall 2023. In addition, there are employee rela- tions consultants at all companies of Schwarz Group. They act as a mouthpiece for the general mood and opinions of the employees which they convey to top management through reports based in part on conversations with employees. These reports are anonymous and cannot be used to identify the employees. Further information about this can be found in the People chapter. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 17 Stakeholder Management Memberships and Commitments [GRI 2-28] Companies of Schwarz Group are actively in- volved in various industry associations, initiatives and organizations, and actively contribute by ei- ther providing specialist expertise or by supporting them with a membership fee. Companies of Schwarz Group joined the United Nations Global Compact (UNGC) in 2020, and in doing so, have committed themselves to comply- ing with and promoting the ten principles of the UNGC. We see it as our respective corporate re- sponsibility to stand up for the strengthening of human rights, fair remuneration and safe working conditions in all areas of our business activities worldwide. We oppose any form of corruption and are committed to environmental and climate pro- tection. As part of an annual “Communication on Progress” report, the companies of Schwarz Group document the measures they have implemented in this respect and the progress they have made. Company portal and CoP report A selection of the various companies of Schwarz Group other commitments and memberships is listed alphabetically below. The sustainability reports of the companies of Schwarz Group also provide an insight into other memberships at an international and national level. Further information is also provided in the Product Quality chapter. x Bundesverband der deutschen Entsorgungs-, Wasser- und Kreislaufwirtschaft e. V. (BDE; Association of German Waste Management, Water and Circular Economy) x x Institut für Digitalisierung im Steuerrecht e. V. (Institute for Digitalization in Tax Law) Institut Finanzen und Steuern e. V. (Institute for Finance and Tax) x Lebensmittelverband Deutschland e. V. (Food Federation Germany) x Science Based Targets initiative (SBTi) (see also the Ecosystems chapter) x Market Economy Foundation x Foundation for Family Businesses and Politics x We Mean Business Coalition x Grüner Wirtschaftsdialog e. V. x Circular Economy Initiative of the Bundes- (Green Economic Dialog) verband der Deutschen Industrie e. V. (BDI; Federation of German Industries) x Berliner Steuergespräche e. V. (Berlin Tax Consultations) x Wirtschaftsvereinigung der Grünen e. V. (Green Party Trade Association) x Wirtschaftsforum der SPD e. V. (SPD Economic Forum) x Bitkom e. V. x Federal Association of German Food Retailers x Wirtschaftsrat der CDU e. V. (CDU Economic Council) (BVLH) x Deutsches Institut für Compliance e. V. (DICO; German Institute for Compliance) x Ellen MacArthur Foundation (see also the Circular Systems chapter) x Europäische Bewegung Deutschland e. V. (European Movement Germany) x Forum Moderne Landwirtschaft e. V. (Forum for Modern Agriculture) x Gesellschaft für Datenschutz und Datensicherheit e. V. (GDD; German Association for Data Protection and Data Security) x gfo – gesellschaft für organisation e. V. (Association for Organization) x Global Standards One Network (GS1) x Handelsverband Deutschland e.V. (HDE; German Retail Federation) International Fiscal Association Germany (IFA) x Sustainability Report FY 22/23 of the Companies of Schwarz GroupNachhaltigkeitsbericht GJ 22/23 der Unternehmen der Schwarz Gruppe

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 19 Compliance Key Corporate Principle [GRI 2-23, 2-24 and 2-27] For all companies of Schwarz Group, economic success is directly related to responsible corpo- rate management. The compliance management systems established in the companies, which en- sure conduct with integrity, are a key part of this. Widely launched training concepts ensure that our employees are systematically sensitized to codes of conduct and prevailing policies. The companies of Schwarz Group endeavor to embody integrity. Their actions and the actions of their employees are subject to the jointly adopted principle: “We comply with applicable law and in- ternal guidelines.” This key corporate principle is binding for all employees of the companies of Schwarz Group. The companies of Schwarz Group place great value on compliance with laws and regulations and see it as their social responsi- bility to act with integrity. Violations of the law can lead to financial damage and loss of reputation for the companies of Schwarz Group. Moreover, they can lead to personal compensation claims and have criminal consequences for individual employ- ees or members of company boards. The compa- nies of Schwarz Group and their Management Boards are therefore expressly committed to com- plying with and ensuring the implementation of this corporate principle. Business Partner Code of Conduct Commitment on Respecting Human Rights and Environ- mental Standards Respecting Human Rights and Environmental Standards Whether as customers, employees, or business partners – people are at the heart of what the companies of Schwarz Group do. They are there- fore committed to ensuring that human rights and environmental standards are respected and strengthened in all areas of their business activi- ties around the world. With this joint declaration on the commitment of all of the companies of Schwarz Group to respect human rights and envi- ronmental standards, the companies of Schwarz Group stress their responsibility as a leading retail group. Due to the complex value chain structure in retail and food production, the greatest human rights and environmental challenges lie in increas- ingly globalized supply chains. Legal requirements in Germany (German Supply Chain Due Diligence Act – Lieferkettensorgfaltsp- flichtengesetz) and at European level add to these challenges. The companies of Schwarz Group therefore strive to meet their responsibility toward people and the environment not only within the scope of our own activities, but also jointly with direct and indirect suppliers along the supply chains and service sectors. Further information about this can be found in the People chapter. The publication of the joint declaration mentioned above (as at December 2022) was a logical further development of the long-standing commitment of the companies of Schwarz Group to this issue and is based on our commitment to respect human rights and environmental standards as laid down in internationally recognized frameworks. With this declaration, the companies of Schwarz Group have made a commitment to ensure that respect and integrity continue to shape their self-image in the future. For many years, the companies of Schwarz Group have also had a jointly created Code of Conduct for Business Partners in which we set out our ex- pectations regarding compliance with human rights and environmental standards and also re- serve the right to audit business partners’ compli- ance with them (see also the People chapter). The companies of Schwarz Group also establish the processes required for the adequate protec- tion of human rights among their employees and compliance with environmental standards in their corporate principles, policies and proce- dural instructions. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 21 Tax [GRI 207-1, 207-2 and 207-3] The companies of Schwarz Group observe all val- id tax laws, policies and regulations in the coun- tries and communities in which they operate. The jointly adopted tax principles of the compa- nies of Schwarz Group stipulate not only complete compliance with all relevant tax laws, but also timely fulfillment of all tax obligations and the submission of correct tax returns. The companies of Schwarz Group are conscious of the fact that the taxes they pay represent a significant source of income for the countries and communities and are thus a prerequisite for a functioning society. In the spirit of corporate citi- zenship, the companies of Schwarz Group engage in legal tax planning based on economic grounds. We are opposed to aggressive tax planning based on artificial structures employed solely for tax- saving purposes. The same applies to transac- tions which lack economic substance and which only serve the purpose of obtaining undue tax advantages. The companies of Schwarz Group strive to main- tain a cooperative, open and trusting relationship with all tax authorities. In so doing, they endeavor to avoid the risk of uncertainty or even disputes. When dealing with financial authorities, our inter- ests are protected and our legal positions are de- fended where we consider this to be the correct approach in accordance with the prevailing opin- ion in case law and literature. The companies of Schwarz Group have multiple tax departments, which are responsible for com- pliance with tax obligations. The Tax department of Schwarz Dienstleistung KG is the service pro- vider tasked with tax matters by the companies of Schwarz Group and the contact for this subject area. The foreign companies of the individual divi- sions generally have their own Tax departments, which may draw on the expertise of the Schwarz Dienstleistung KG Tax department on key issues. The Tax departments develop policies and target processes as required, defining the relevant re- sponsibilities and the early involvement of the Tax departments in operational processes. On behalf of the companies of Schwarz Group, the Tax de- partment at Schwarz Dienstleistung KG also in- forms the employees affected about any relevant tax changes and arranges training if required. To ensure that tax processes are legally correct, the companies of Schwarz Group have jointly established tax compliance as a focus area in their CMS. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 23 CR Strategy Our Driving Force In addition to curbing climate change, the world has a responsibility to end global poverty once and for all and to prevent human rights violations, especially in the Global South. At the same time, it is important to secure one’s own prosperity in con- sideration of future generations. Digitalization ac- companies and influences all of these opportuni- ties and challenges, opening up a whole host of new possibilities. We are tackling these develop- ments head-on and using them as a driving force for the development of our business. As compa- nies of Schwarz Group, we do not wait for chal- lenges to become problems. We act ahead in or- der to secure a sustainable, healthy and safe life. The companies of Schwarz Group – by their own account, the fourth largest retail group in the world – have created a unique ecosystem: from production through retailing up to disposal and recycling in addition to digital services. We use our influence throughout the whole value cycle to set standards for respectable behavior toward one another and create an environment worth living in. Our jointly developed corporate responsibility (CR) strategy provides the framework for our group- wide commitment to sustainability. This strategy is based on the four focus areas of People, Product Quality, Circular Systems and Ecosystems. It enables us to grasp the challenges of sustain- able development as an opportunity and devise business strategies that are fit for the future. We act ahead. Our world is changing. The economy and society are going through a profound transformation and this presents significant challenges for us all – but also opportunities. Climate change in particular is a challenge that requires a response from society as a whole and we must not shy away from our responsibility here. It is a complex issue to be mastered at many levels: On the one hand, we are duty bound to conserve our natural resources. On the other, we need to ensure that we have enough resources to feed a growing global pop- ulation. In order to achieve this, we support climate-friendly, plant-based nutrition pursuant to the Planetary Health Diet: In selected countries, our retail divisions Lidl and Kaufland have aligned the prices of virtually the entire plant-based, private-label range with the prices of products of animal origin: zero price difference for con- scious nutrition. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 25 1 | Excluding any purchase agreements that the companies of Schwarz Group cannot influence, such as those for individual leased properties with a binding electricity procurement clause. Additional information below: www.gruenstrom.schwarz CR Strategy Our Understanding of the Focus Areas People: We Believe in Cooperation Based on Respect, Appreciation and Trust. As responsible employers, the companies of Schwarz Group want to offer an attractive and healthy work environment founded on diversity and equal opportunities. We believe that educa- tion is essential: Through targeted empower- ment and support, we promote employees’ devel- opment both professionally and personally. Good working and living conditions, which include fair, attractive remuneration, are important to us – also in the supply chain, so we take care to en- sure compliance with social and environmental standards there too. We are a reliable partner for our social environment and promote social and environmental issues around the world. Circular Systems: We Are Resource-efficient and Embrace the Circular Economy. Thanks to our diverse corporate structure, we are able to put the circular economy into practice. It is therefore an important element of our jointly developed strategy. This does not just apply to our own processes, but also along the entire sup- ply and value chain. Our aim is to preserve re- sources and close recycling loops. That is why the companies of Schwarz Group also strive to avoid generating internal waste and food waste, and work hard to conserve and reuse resources. The sustainable design of packaging and prod- ucts as well as the use of efficient collection, recy- cling and recovery processes are also important elements of our strategy. Product Quality: We Leave no Stone Unturned when It Comes to Quality – Sustainable, Safe and Healthy. With our commitment to more sustainable product design, we are bringing conscious nutrition to the mainstream of society. By offering high-quality products at a favorable price, we enable custom- ers to make more sustainable, conscious choices and to enjoy healthy nutrition within the boundar- ies of our planet. The diverse range of products and services offered by the companies of Schwarz Group are characterized by transparent labeling and high quality, which builds trust among our customers. For the assortment in our retail divisions, for example, we prioritize sus- tainable products from certified sources with recognized seals as well as raw materials from the local region. Ecosystems: We Are Committed to Protecting the Climate and Environment. The companies of Schwarz Group actively con- tribute to environmental and climate protection. With our jointly developed climate strategy, we are doing our bit to limit global warming. In this re- spect, we work together to consistently reduce operational emissions, among other things. As part of these efforts, we ensure that stores are optimized from an energy perspective and use almost 100 percent1 electricity from renewable energy sources. We are continuously ramping up our own generation of electricity. We also focus on conserving and protecting water resources so as to preserve vital freshwater supplies. The same applies to biodiversity, which we are committed to protecting to ensure plants and all living things have a safe space to live in for many years to come. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 27 Focus Area: Product Quality Target KPI / Measurement Status Target Attainment Page(s) Lidl aimed to achieve 100% certification through selected sustainability seals (Fairtrade, Rainforest Alliance and organic) for all items containing cocoa and chocolate bars by 2022. Kaufland aimed to achieve 100% certification through selected sustainability seals (Fairtrade, Rainforest Alliance, and organic) for all items in its private-label assortment containing cocoa by 2023. In terms of coffee procurement, Lidl and Kaufland aimed to achieve 100% raw material certification through selected sustainability seals (Fairtrade, Rainforest Alliance, organic) for roasted beverages, instant coffee, capsules and cappuccinos in the private-label product assortment by the end of 2022. In terms of coffee procurement, Kaufland aimed to achieve 100% raw material certification through selected sustainability seals (Fairtrade, Rainforest Alliance, organic) for whole beans, ground coffee, instant coffee, system coffee and blended coffee drinks in the private-label product assortment by the end of 2023. Lidl aimed to achieve 100% raw material certification by RSPO for procured items containing palm (kernel) oil (incl. derivatives and fractions) pursuant to the “Mass Balance” standard by the end of 2022. For food items containing palm (kernel) oil, the aim was to achieve RSPO certification pursuant to the “Segregated” standard by the end of 2023. Kaufland aimed to achieve 100% raw material certification by RSPO for procured items containing palm (kernel) oil pursuant to the “segregated” standard or higher by the end of 2022. Derivates and fractions are required to have a 100% raw material certification by RSPO pursuant to the “Mass Balance” standard. By the end of 2025, 100% of procured fish and shellfish from aquaculture or wild-caught in Lidl’s permanent assortment will be certified (organic, Global G.A.P., BAP, or ASC/MSC [except tuna]); 50% of these items in Lidl’s promotional assortment will be certified (organic, Global G.A.P., BAP, or ASC/MSC [except tuna]). Furthermore, by the end of 2025, 100% of fish procured by Lidl in frozen goods and convenience as well as in canned tuna in the permanent assortment will be certified (MSC/ASC, Global G.A.P., BAP; except the following canned tuna: FIP, FAD free, pole&line). Finally, Lidl aimed to procure “fish” cat food varieties certified according to MSC or ASC by the end of 2022. Proportion of certified cocoa in cocoa assortment (private-label products) Proportion of certified coffee products in the entire coffee product assortment (private-label products) Proportion of sustainable palm (kernel) oil items in the entire product assortment of palm (kernel) oil items (private-label products) Total target attainment as a percentage 96%1 Lidl 100% 88%1 Kaufland 100% 95%1 Lidl 100% 96%1 Kaufland 100% 88% Lidl 100% 98% Kaufland 100% 90% Lidl 100% 69 69 69 69 118 118 71 1 | The purchasing figures for Lidl and Kaufland are calculated at an international level by weighting the country figures in relation to the respective number of items and stores Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 29 Focus Area: Circular Systems Target KPI / Measurement Status Target Attainment Page(s) By 2025, Lidl and Kaufland will use on average 25% recycled material in their private-label packaging made of plastic. Target attainment in percent By 2025, Lidl and Kaufland will maximize the recyclability of 100% of their private-label packaging made of plastic. Target attainment in percent 19% 25% 54% 83-85 83, 85 By 2025, Lidl and Kaufland will use 30% less plastic in their private-label packaging and transport aids made of plastic compared with the base year of 2017. By 2027 they will increase this value to 35%. Target attainment in percent By the end of 2030, the companies of Schwarz Group will reduce their food waste by 50% at group level compared with 2018. Target and measurement methods under development. By the end of 2025, the companies of Schwarz Group will recover, recycle or reuse a significant proportion of the waste they generate. Target attainment in percent 100% -30% 88% -34% 83, 85 93 93 1 | Transport aids include, for example, carrier bags and plastic bags/knot bags. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 31 CR Governance Organizational Integration and Responsibilities [GRI 2-15] The CR Round Table coordinates the strategic approach of the overarching, jointly developed CR commitment. Its members include the responsible Heads of CR/CSR from the companies of Schwarz Group incumbent during the reporting period. The content of group-specific topics is addressed within the individual focus areas. Together, group- wide guiding principles and general conditions are defined and constantly refined. The CR Round Table meets regularly and is also involved in con- stant exchange with the established work struc- tures about overarching topics. Expert coordina- tion is provided by the CR department of Schwarz Unternehmenskommunikation GmbH & Co. KG. [GRI 2-12, 2-13, 2-16 and 2-17] The fields of activity in the companies of Schwarz Group are just as diverse as the manifold require- ments of effective CR management. The com- panies of Schwarz Group work together closely to coordinate their sustainability activities. Yet, they also align their actions to the respective business model and the environment of the respective company. The responsibility for sustainability lies with the Chief Executive Officers of the respective compa- nies of Schwarz Group. The CR department at Schwarz Unternehmenskommunikation GmbH & Co. KG (Schwarz Corporate Communications) has been coordinating the strategic sustainability ap- proach of the companies of Schwarz Group according to its mandate in an inspirational and guiding capacity since January 2023: It is headed by Susanne Marell, the department’s first execu- tive vice president. This department supports the companies with their sustainability activities and enables cross-company cooperation on global topics. In accordance with the organizational structure, the topic of sustainability is anchored in all of the companies of Schwarz Group with the incumbent CR/CSR Heads in the departments of each com- pany and national company. They act as coordina- tors for CR issues within their own business unit and manage implementation. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 33 CR Governance Materiality Analysis In our materiality analysis, we regularly take a comprehensive look at the sustainability-related opportunities and risks that arise from the busi- ness activities of the companies of Schwarz Group. Based on this analysis, we continually develop the content of our jointly-developed strategic sustainability agenda. Schwarz Unternehmenskommunikation GmbH & Co. KG conducted a comprehensive and substan- tiated materiality analysis by order of the compa- nies of Schwarz Group in 2022. We use this analysis to validate and further develop our CR strategy and to determine relevant report content. The results of the materiality analysis were re- viewed in the current reporting period and form the basis of this report. They confirm the direction of our CR strategy to date and will serve as the basis for its continuation. Materiality Analysis [GRI 3-1] ) y e v r u s t n e m e g a n a m n o d e s a b p o h s k r o w d r a o B e v i t u c e x E % 0 0 1 ( l e c n a v e e r s s e n i s u b f o l e v e L Resource Conservation and Circular Solutions Climate Protection and Adaptation Promotion of a Healthy and Attractive Work Environment Training and Empowering Employees Social Standards, Working and Living Conditions in the Supply Chain Protection of Biodiversity and Adaptation to Biodiversity Loss Responsible Business Practices Sustainable Product Design and Quality Use and Protection of Water Resources Diversity and Equal Opportunities Transparent Product Communication Key Findings: x Top issues are Climate Protection and Adaptation as well as Conservation of Resources and Circular Solutions. x Also particularly important in terms of impact relevance: Transparent Product Communication x Also particularly important in terms of business relevance: Social Standards, Working and Living Conditions in the Supply Chain 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 Level of impacts (50% exposure analysis/50% expert survey) Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 35 CR Governance Effectively Managing Sustainability Depending on the level of maturity of the topic, each of the focus areas in the jointly developed sustainability strategy of the companies of Schwarz Group has specific milestones and mea- surable targets. The measurement of progress forms part of our annual planning and strategy cycle. Solid data management provides the basis for this. According to its mandate, the internal pro- cesses in the companies of Schwarz Group are defined in an IT-based business process manage- ment tool. In almost all of the companies of Schwarz Group, they are modeled using the ARIS software. ARIS is used for process documenta- tion, process design and process publication. IT-based Sustainability Management The companies of Schwarz Group also use a joint- ly selected, group-wide software solution for sus- tainability management in order to provide greater transparency around CR activities. The software is used to record and aggregate all CR measures from all companies of Schwarz Group. They form the central reporting elements to internal and ex- ternal stakeholders. This means that best practic- es can be adopted on a company-specific basis by the Heads of CR/CSR and other employees, and adapted to their particular country. In light of increasing requirements in relation to internal management and external reporting, the companies of Schwarz Group made a collective decision in the reporting period to implement a structured selection process for a new group-wide software solution that is fit for the future. As part of this process, strategic targets and specific requirements were defined for the new solution, taking into account all relevant stakeholders. Various software solutions were put through their paces in a series of comprehensive tests with di- verse user groups. The chosen software solution will be introduced in the course of the coming fiscal year and will significantly strengthen data-based sustainability management. The companies of Schwarz Group are also fo- cused on continuously developing the sustainabili- ty key performance indicators. With the aid of a collectively defined, group-wide set of CR key per- formance indicators, a coordinated data collection process is carried out using standardized defini- tions and parameters across all companies of Schwarz Group and all countries. The set of key performance indicators is revised and updated each year. An extensive range of control measures at all levels and the integration of established con- trolling structures ensure comprehensive quality assurance of the more than 1,000 key perfor- mance indicators for sustainability. CR Risk Management and ESG Rating The companies of Schwarz Group are confronted with a wide range of internal and external develop- ments and events that can have a material impact on their ability to achieve financial and non-finan- cial targets. Risk management of CR topics is therefore an integral part of the respective corpo- rate management. In the course of the materiality analysis, we also paid particular attention to sus- tainability risks and opportunities in consideration of our jointly developed sustainability strategy. In this context, risks and opportunities were dis- cussed and validated by the CR Round Table and the members of the Executive Boards of the com- panies of Schwarz Group. You can find more infor- mation about the materiality analysis in the Materiality Analysis chapter. Since spring 2022, the companies of Schwarz Group have been jointly completing an annual ESG rating assessment in partnership with Sus- tainalytics. This involves an independent assess- ment of all potential sustainability risks and the corresponding risk management. In the rating completed at the start of 2023, the companies of Schwarz Group achieved a score of 19.4, which marks an above-average improvement of 2.3 points and corresponds to a low risk. This positive development confirms that the companies of Schwarz Group are setting the right priorities and shows that their management of environmental and social topics, as well as their respective re- sponsible corporate management, are continuing to mature and improve. That notwithstanding, the result of the assessment continues to provide valuable guidance for the further development of the group’s policies and programs. Based on a joint analysis of the rating results, we identified various areas that were subsequently developed further and which will contribute to an improve- ment of the rating over the coming years. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 37 Shaping Focus Areas People Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 39 1 | The percentage of both tariff and non-tariff employees covered by a collective bargain- ing agreement is recorded. Impacts All companies of Schwarz Group consider their employees to be a decisive factor for success and stability. As attractive employers, we are working hard to combat the shortage of skilled workers and attract and retain talented employees. A shortage of qualified and motivated workers could potential- ly lead to bottlenecks in individual departments, and as well as impacting productivity, this may have a negative effect on our competitive ability. Forward-looking human resources development is a key factor for each company to enable us to po- sition ourselves as attractive employers for em- ployees and on the job market. Given the current shortage of skilled workers and demographic change, needs-based training and development also offers the opportunity to recruit and retain qualified employees. Holistic employee develop- ment has a positive effect on the reputation of the group companies as employers and supports their future viability. working conditions, our remuneration systems ensure that each company offers fair pay across all divisions and organizational units. We make our decisions based on data and promote internal transparency within each company by using a defined set of key performance indicators. We use the available data and external bench- marks to identify where action is required in each company and ensure that we reach our organizational targets. Compliance with Legal Requirements Attractive pay, and in particular complying with the principle of equality with regard to wages, is also essential for all companies of Schwarz Group. We adhere to the requirements of the Transparen- cy in Wage Structures Act (Entgelttransparenz- gesetz). Every employee of the companies of Schwarz Group is able to obtain information on remuneration-related topics. All employees have the right to form representa- tive bodies and engage in employee coalitions (e.g., trade unions). Employees are permitted to form representative bodies depending on the loca- tion, in accordance with the applicable national regulations. It is important to all companies of Schwarz Group that we maintain a trusting, fair and ongoing relationship with the selected em- ployee representatives. Employee representative bodies participate in accordance with the national regulations of the respective country. We also sup- port collective bargaining and adhere to the agreements. We comply with the obligations set out in collec- tive bargaining agreements just as strictly as we do our legal obligations and intra-company agree- ments – such as works agreements with works councils in Germany. Collective Bargaining Agreements Proportion of employees to whom collective agreements apply1 2021 66.0% 2022 66.9% 2023 66.8% Under the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG), in addition to performing an annual risk analysis of our supply chain, we are required to identify hu- man rights and environmental risks within our re- spective areas of business. In the 2023 fiscal year, all companies of Schwarz Group that fall under the scope of the German Supply Chain Due Diligence Act conducted this risk analysis and took the findings into account in their respective management approaches. In addition, all divisions offer complaint mechanisms for their employees so that they can respond on an ad hoc basis to any potential risks that may arise from tips re- ceived. Binding internal regulations in each com- pany ensure that whistleblowers do not suffer any disadvantages or punishment as a result of submitting a tip. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 41 Employer Awards Lidl Europe Belgium Bulgaria Czechia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Poland Portugal Romania Serbia Slovakia Slovenia Spain Sweden Switzerland The Netherlands United Kingdom USA Employer Awards Kaufland Europe Bulgaria Croatia Czechia Germany Moldova Poland Romania Slovakia Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 43 The companies of Schwarz Group consider per- sonal communication and interaction in the work- place to be an important element of cooperation. At the same time, we want to benefit from the ad- vantages of flexible working methods. With this in mind, the companies of Schwarz Group facilitate mobile working for up to five days per working week for employees in Administration. The scope and individual handling depend on the operational requirements and individual tasks. Details shall be determined and agreed upon between managers, the team and employees on an ongoing basis – always keeping an eye on achieving the best possible work result. — Total Workforce [GRI 2-7] Total number of employees1,2,3 Of which full-time4 By gender5 Female Male Diverse Of which part-time4 By gender5 Female Male Diverse FY 2021 2022 2023 2021 2022 2023 2023 2023 2023 2021 2022 2023 2023 2023 2023 Lidl Kaufland PreZero Schwarz Produktion Schwarz Digits Schwarz Dienstleistungen 372,255 386,563 385,665 149,853 164,996 167,875 92,981 74,891 3 222,402 221,567 217,753 154,335 63,406 12 143,706 148,969 148,345 66,355 70,497 70,576 44,422 26,154 0 77,351 78,472 77,769 62,288 15,480 1 11,845 27,125 26,769 10,691 22,266 21,835 3,663 18,172 0 1,154 4,859 4,934 1,530 3,404 0 3,831 4,097 5,106 3,353 3,548 3,854 765 3,089 0 478 549 628 226 402 0 40 5,175 5,666 34 4,579 4,732 1,100 3,632 0 6 596 615 381 234 0 6,569 3,779 4,074 5,729 3,185 3,424 1,533 1,891 0 840 594 650 590 60 0 Schwarz Group 538,246 575,708 575,625 236,015 269,071 272,296 144,464 127,829 3 302,231 306,637 302,349 219,350 82,986 13 1 | The number of employees listed here shows the internal control figure, which is based on a different definition of employee to that used in the annual financial statement. While the annual financial statement states the number of employees including those on long-term sick leave and maternity leave as end-of-quarter averages for the fiscal year, the internal reporting date is the end of the fiscal year. Employees on maternity leave and long-term leave (exception: Lidl) are excluded internally. 2 | All employee figures in the table refer to the head count. 3 | Not all companies in the individual divisions are able to provide a full set of HR data. The total of the detailed employment figures therefore does not correspond to the total number of employees. 4 | Employees with average working hours of less than 100 percent of full-time hours are classed as part-time. Unless there is national regulation on the issue, part-time employment is considered to be fewer than 163 hours/month. 5 | The employment relationships by gender have been collated since FY 2023, so no figures are available for previous years. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 45 1 | Statement was not included in external review. Fair Wages [GRI 2-19, 202-1, 405-1 and 405-2] — As well as offering a variety of working mod- els, the companies of Schwarz Group ensure that their employees receive a fair, competitive wage. Each company of Schwarz Group has established uniform salary structures based on objective crite- ria such as professional experience, expertise, skills and area of responsibility. Employees are also offered a range of corporate benefits. In Germany, an internal minimum wage was intro- duced at Lidl, Kaufland, Schwarz Produktion and Schwarz Dienstleistungen back in 2010. This mini- mum wage has been continuously adapted in line with the job market situations of the respective companies of Schwarz Group. For example, Lidl in Germany increases the minimum entry-level sala- ry for its employees from 14 to 15 euros gross per hour in September 20241. In most of the countries in which the group operates where a statutory minimum wage is in place, the minimum wages implemented by the companies of Schwarz Group are significantly higher than the national minimum wages. This applies to employees working in stores, production facilities and warehouses. The Schwarz Produktion sites are predominantly covered by collective bargaining agreements, which guarantee fair and comparable wages. The work of the management personnel of the companies of Schwarz Group is compensated according to the same principles. For this purpose, the companies of Schwarz Group have jointly de- veloped and defined framework conditions and minimum standards. The level of remuneration is calculated based, in particular, on the tasks linked to the position and the associated responsibility. As a general rule, we use an approach of reliable and secure remuneration with a focus on attrac- tive fixed salaries. Variable or performance-based remuneration components and company shares are avoided for the most part. In individual compa- nies of Schwarz Group, for example at individual companies of PreZero or brands of Schwarz Digits and at selected Lidl national companies, employ- ees are offered variable remuneration components where this is customary in the market for a partic- ular function or department. Compliance with the described principles is regularly monitored in the companies of Schwarz Group by the respective Internal Audit department. At the same time, remuneration is based on the respective sector and the usual market circum- stances. Data analyses and benchmarks are used to ensure the remuneration structure for our man- agers is just as attractive and competitive as the one we use for our employees. Occupational Health and Safety [GRI 403-1, 403-2, 403-3, 403-5, 403-7 and 404-2] The physical and mental health of our employees is a top priority at the companies of Schwarz Group. Both Lidl and Kaufland at an international level, as well as PreZero, Schwarz Produktion and Schwarz Dienstleistungen, have continued to ex- pand and strengthen their occupational safety and occupational health management measures during the reporting period. Almost all of the companies of Schwarz Group have defined all of the processes related to occu- pational health and safety in an IT-based business process management system and in the ARIS software. These processes are closely aligned with the requirements for occupational health and safety management systems as defined in ISO 45001. Since 2012, all of the Kaufland meat pro- cessing plants in Germany have been awarded the “Sicher mit System” (Safe with a system) quality seal by the employer’s liability insurance, which is based on ISO 45001. In addition, the Kaufland stores and logistics centers in Bulgaria and Croa- tia are certified pursuant to ISO 45001. At Lidl, this is the case in Ireland and Northern Ireland. At Schwarz Produktion, the occupational health and safety management system at each site is based on ISO 45001. This system defines the oc- cupational health and safety standard within the group by means of guidelines and procedural in- structions. Schwarz Produktion production facili- ties also have an IT-based tool for the manage- ment of environment, health and safety (EHS) as- pects. This tool enables all material such as risk assessments, operating instructions and registers of hazardous substances to be created, updated and made available to all production facilities in digital form. The companies of Schwarz Group employ a range of measures to prevent work accidents. Prevention and the expansion of safety measures play a cru- cial role at the companies of Schwarz Group and influence all occupational health and safety activi- ties across the group. If there is an accident or near miss at work, an in-depth analysis of the cause of the accident is performed where neces- sary in order to determine appropriate preventive measures and thus prevent future or potential ac- cidents. At Schwarz Produktion, in addition to this structured accident analysis, measures include the organization of an EHS topic of the month for communication to company employees as well as the communication of safety messages. These are shared across plants to encourage proactive risk assessment. PreZero has also continued to improve accident prevention and has set up an international acci- dent reporting process. This makes it possible to learn from each other and derive preventive mea- sures to ensure the safety of employees. As part of this program, the national companies are work- ing together and using their many years of experi- ence to anticipate accident potentials. To ensure that employees are adequately protect- ed, from production, stores and logistics sites to waste disposal and recycling, the level of pro- tection at locations is monitored and adapted where required. As part of its digitalization strategy, Lidl has start- ed to roll out the Platform for Organizational Safe- ty and Health (POSH) software developed by the company itself. By digitally linking management processes such as accident investigations, risk assessments, safety inspections and the tracking of training, the aim is to continually improve safety and simplify the management of work accidents. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 47 with other departments. The frequency of training at the national companies is determined by the applicable national requirements and the results of risk assessments, respectively. Kaufland, for ex- ample, has introduced an online course to provide general training on occupational health and safety for all employees at stores and central locations as standard across all countries. At Schwarz Produk- tion, all employees are required to complete annu- al occupational health and safety and fire protec- tion training, usually in digital form. Depending on employees’ area of work and assigned duties, this training may be supplemented by additional work- place-specific training, which takes place in per- son directly in their working environment. The companies of Schwarz Group also insure cer- tain employee groups worldwide against unfore- seeable events resulting from accidents, both at and outside of work. Health Protection and Promotion [GRI 403-2, 403-3 and 403-6] To promote employees’ health and prevent work- related damage to health, the companies of Schwarz Group provide an occupational health service in all countries and business units in accordance with the statutory regulations. This service includes measures such as risk as- sessments and compulsory preventive exami- nations. Many locations also have health promotion measures that are coordinated by the HR departments. A cross-divisional occupational health service is provided for the administrative locations of Lidl, Kaufland, PreZero, Schwarz Digits and Schwarz Dienstleistungen in the Heilbronn/Neckarsulm region. At Schwarz Produktion, support is provid- ed by local occupational health services. As part of this service, employees can book eye examina- tions and flu vaccinations – as well as general medical consultations. We also aim to provide ad- equate occupational health care in the national companies of the divisions: Lidl Cyprus, for exam- ple, offers a mobile medical practice for employ- ees at its stores. Sickness Rate in Percent [GRI 403] 7,5 7,3 7,2 8,3 6,4 6,3 5,9 6,2 5,6 9,9 10,4 10,0 2021 2022 2023 7,1 6,9 6,8 3,6 2,8 2,9 3,0 3,5 1,0 Lidl Kaufland PreZero Schwarz Produktion Schwarz Digits1 Schwarz Dienstleistungen Schwarz Group Occupational health management employees and employee relations consultants are available in the companies of Schwarz Group to assist with spe- cific questions relating to inclusion and severe disabilities. Depending on the location, a represen- tative body for disabled employees is available at Kaufland, Schwarz Digits and PreZero Germany respectively for employees with a severe disability or equivalent status. 1 | Transfer effect: In the FY 2022 progress report, the figures for Schwarz IT (SIT) were still allocated to Schwarz Dienst- leistungen. Since Schwarz Digits was established in FY 2023, SIT has been part of the new division. Some companies, for example Schwarz Dienst- leistungen, also offer employees access to com- pletely anonymous online psychological support free of charge. Since the start of 2024, PreZero has offered employees in Germany, Poland, Spain and Portugal access to advice on personal and psychological topics, as well as financial and legal matters, as part of an employee assis- tance program (EAP). The EAP is offered in cooperation with an external service provider. PreZero launched a similar offer in collaboration with an external service provider in the Nether- lands back in November 2023. This includes health checkups for employees with the option of a tailored follow-up health program. There are plans to introduce similar offers in additional countries in the 2024 fiscal year. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 49 Education and Empowerment Organization and Responsibility [GRI 404-2 and 404-3] Trainee programs, work-study courses, and com- mercial and technical training courses and pro- grams that provide professional qualifications, such as retraining opportunities, are firmly embed- ded in the corporate culture at all of the compa- nies of Schwarz Group. With an extensive range of methods, the companies of Schwarz Group support every single employee in their profession- al and personal development. Another key factor in this context is raising employee awareness of sustainability and empowering employees to get involved in the topic. The development and implementation of training and development concepts is also reflected in the organizational structure. The subject is managed in a decentralized manner in all of the companies of Schwarz Group by the respective HR depart- ment. Responsibility for the further development and training of individual employees lies primarily with the respective manager and the employees themselves. With the current and future tasks of the specific employee in mind, the manager and employee agree on which specific further training is required and what training measures are appro- priate. The relevant responsibilities of managers are clearly defined in this context. At Lidl and Kaufland, the HR departments in the countries and at the regional distribution centers support managers and departments with target- ed processes, programs and seminars. At the two companies, the countries receive additional, central support from the Talent Management de- partment. For the purposes of sustainable talent management, individual development plans are created in cooperation with employees as part of this approach. This same approach is taken at Schwarz Dienstleistungen as part of a systematic process with the support of the HR department. A clear, transparent assessment system ensures fairness of performance evaluation throughout the company. As part of the annual talent manage- ment process, employees receive feedback on their performance over the preceding twelve months. Depending on whether it is required or not, a development plan for the year ahead may also be defined. The aim of this process is to iden- tify talent from within the company’s ranks, high- light career opportunities and create transparent career paths. Stakeholder Involvement Alongside the group’s own employees and manag- ers as the most relevant stakeholders, the compa- nies of Schwarz Group also work with external partners and institutions on training and develop- ment and empowerment concepts. For entry-level programs, for example, this includes chambers of commerce and industry as well as vocational schools and cooperative universities. Across divi- sions, we also collaborate with schools and univer- sities and continuously work with the German Federal Employment Agency, in particular regard- ing the employment of third-country nationals. Measures & Projects Entry-level Programs and Training [GRI 404-2] To offer students an attractive way into the group, all divisions provide the opportunity to complete a work-study degree program, in some cases sup- plemented with programs for external students. The number and type of degree courses vary de- pending on need and, at Lidl and Kaufland, also depending on the availability of a corresponding system in a particular country. All divisions offer over 20 degree courses in total. There is a partic- ular focus on Germany, although Lidl offers corre- sponding courses in four countries. Since the 2023 academic year, our students in Germany have also been able to choose the sustainability focus in the Food Management degree course. Baden-Wuerttemberg Cooperative State Univer- sity (DHBW) in Heilbronn also introduced a new course, “Business Administration – Technical Management: Recyclables Management and Recycling” in 2023. All trainees and students receive a lot of support at the companies of Schwarz Group and, in some cases, are also given the opportunity to attend in-house training, for example at the company’s training workshops. The comprehensive exam preparation and the relevant responsibilities can be defined on a division and country-specific ba- sis. New “blended learning” formats were incorpo- rated in the 2023 training year. These new formats use modern, future-oriented forms of learning to develop trainees’ knowledge and skills. To ensure a high level of training quality, all divi- sions have measures in place to support the de- velopment of training coordinators and specialist supervisors. One such measure is the modular training program introduced by the Schwarz com- panies in 2022, which includes a cross-divisional networking event. The program covers topics such as problem-solving skills as the key to success, resilience training, and tips and tricks for sustain- able learning success. Like all other employees, trainees and students can contact their responsible HR department, works council (where available), or the designated training and development managers or employee relations consultants with queries or complaints at any time. At Kaufland in Germany, PreZero Germany and Schwarz Digits, there are also youth and trainee representatives available in some locations. Onboarding and Further Training New employees also receive in-depth onboarding at the companies of Schwarz Group. For employ- ees at administrative locations, this includes the opportunity to gain practical insights about the store business operations at Lidl or Kaufland when starting their position. Store employees also re- ceive a structured onboarding plan designed to prepare them for their role. At the companies of Schwarz Group, the various training and development opportunities on offer are tailored to each individual. We therefore offer an extensive training program for all employees in all companies in order to accommodate individual requirements and support the entire workforce. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 51 In addition, PreNet – the PreZero intranet that is already available to office employees in multiple countries – showcases the more sustainable prod- ucts and services developed by various teams. In Sweden, the “Hero” employee magazine is pub- lished four times a year. It is aimed at all employ- ees in the country and explains the contribution that they are making to the circular economy in a clear, concise way. The success stories highlight the role that PreZero and its colleagues are playing in the sustainable transformation. Lidl is currently implementing a major sustainabili- ty initiative, YOU, which aims to educate all em- ployees on sustainable action and encourage them to incorporate sustainability into their day-to- day lives. The concept comprises internal commu- nication campaigns, training courses for all em- ployees and the establishment of an international CSR community made up of CSR ambassadors. As well as general sustainability training courses for store employees, Lidl provides in-depth train- ing for logistics personnel. Lidl offers an e-learn- ing course on recyclable materials management that teaches logistics employees about resource efficiency and clean material sorting processes, which is now set to be rolled out in the countries. Training courses on the topic of energy manage- ment are also carried out in all Lidl countries for employees working in stores and in warehouses. Lidl Stiftung is currently updating a training course on lifting and carrying correctly, which will be made available in the Lidl countries as soon as it is completed. At Kaufland, new employees in inven- tory management complete the online training course “Recycling macht den Unterschied” (Recycling makes the difference). They also re- ceive a checklist that illustrates the principles of clean waste separation. At PreZero Stiftung, since 2022, employees have been empowered through regular training ses- sions on CSR and strategic key topics. Marketing, Corporate Communications and Sales colleagues at PreZero Stiftung also receive training on the responsible use of resources with sessions that highlight the company’s own sustainability successes. The aim of this training is to identify and prevent greenwashing. 45 cleanup campaigns as part of this initiative in 2023. Kaufland employees have also been supporting the external cleanup campaign “Saarland Picobello” for over a decade, providing protective gloves and heavy-duty garbage bags for all participants. The companies of Schwarz Group also support employees’ social commitment: Kaufland gives employees in Germany, Poland, Slovakia and Croatia the chance to get involved in blood dona- tion campaigns, and there are plans to extend this to further countries. This offer is also available to employees of Lidl Stiftung. In addition, Kaufland employees in Germany have the opportunity to get involved in stem cell matching campaigns. Each year around Christmas, employees of the companies of Schwarz Group also get the chance to take part in a social project in the form of a coordinated wishing tree campaign. Employee Initiatives We also encourage employees to get involved in sustainability topics through joint employee initia- tives. In September 2023, for instance, employees of the companies of Schwarz Group came out in force for the environment for the second time in a row as part of a cross-border, cross-divisional project – the River Cleanup Collective (RCC). More than 120 campaigns were organized across 22 national companies as part of the RCC. The main aim of the project was to protect the environment by cleaning up bodies of water and separating the waste that was collected. The process of collecting and sorting waste also brings home to participants just how much waste can actually be recycled or reused. Together, the 5,000+ participants in the 2023 cleanup cam- paigns collected more than 30,000 kilograms of waste. A collective cleanup campaign was also held in the city and district of Heilbronn. Across 50 teams, 420 employees collected a total of 1.5 tons of waste together. The campaign was supported by PreZero, with the company’s employees sort- ing, recycling and disposing of the collected waste at a dedicated recycling point. Lidl Stiftung also offers the “Team Clean Up” prin- ciple to its employees who want to get involved and also view the campaign as a team-building measure. Lidl provides support in the form of ex- pertise and equipment. Kaufland in Germany also offers its employees in stores, logistics centers and meat processing plants, as well as Kaufland e-commerce employees, the opportunity to individually organize regional cleanup cam- paigns across Germany using a modular system. More than 680 participants took part in over Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 53 Stakeholder Involvement [GRI 406-1] Employees are our most important stakeholders when it comes to DE&B. We want to involve them in all aspects and give them the opportunity to ask questions or express criticism. For that reason, there are clear structures and points of contact in place for employees at all companies of Schwarz Group. Besides the relevant managers, this in- cludes the HR departments and – where applica- ble in accordance with national regulations and local conditions – employee representative bodies, for example – depending on the location – at Lidl, Kaufland, PreZero, Schwarz Produktion, and in parts of Schwarz Dienstleistungen and Schwarz Digits. There are also designated employee rela- tions consultants in most of the companies of Schwarz Group, who act as neutral and indepen- dent contact persons. They are available to assist all employees and managers with any questions and concerns they may have about general HR topics, including diversity and equal opportunities. Employees can report information about potential discrimination cases via Lidl’s official internal re- porting channels. Kaufland employees in Germany can also submit complaints and express criticism via the internal “K Stimme” portal. We support diversity and equal opportunities out- side of the group, too. In pursuit of the goal of pro- moting women in particular in management posi- tions, Lidl has been a partner of the international network Leading Executives Advancing Diversity (LEAD) since 2020. This network is committed to promoting diversity and increasing the proportion of women in management positions in retail and in the consumer goods industry. Lidl emphasized its commitment to this issue by signing the United Nations Women’s Empowerment Principles (WEP). WEP is the first global initiative intended to sys- tematically promote and empower women in busi- ness – based on a leadership culture that advo- cates equal opportunities. As a matter of principle, the path to a manage- ment position is open to all employees at the com- panies of Schwarz Group. The 2023 fiscal year ended with 42.2 percent of management positions occupied by women in the companies of Schwarz Group – virtually identical to the previous year. At Kaufland, half of the management positions across all countries are held by women. . Diversity in Management Bodies Proportion by gender in FY 2023 [GRI 405-1] Female: 42.2% Male: 57.8% Proportion by age group 11.4% 12.1% 12.7% 77.4% 77.1% 76.9% 11.2% 10.8% 10.4% 2021 2022 2023 >50 years old 30–50 years old <30 years old Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 55 Responsibility in the Supply Chain Strategic Approach x Step 2 – Defining specifications and processes: This ensures that sustainability is managed ef- fectively, laws are adhered to, and appropriate priorities are set. x Step 3 – Implementing and monitoring: Once specifications and processes have been defined, appropriate preventive measures are derived and their implementation and effective- ness are monitored. x Step 4 – Improving: Identified problem areas are continually improved. Risks are syste- matically eliminated, avoided or minimized. Access to effective complaint mechanisms for the affected parties is essential. Complaint mechanisms have therefore been established with this in mind. x Step 5 – Communicating: There is transparent communication about all of the described steps, in particular the implementation status and progress of the measures. Priority Topics [GRI 2-23] The retail divisions, Lidl and Kaufland, sell food, non-food and everyday products that are partly produced in complex supply chains. Some of these products are also produced by the in-house production facilities of the companies of Schwarz Group. People from around the world are em- ployed in these supply chains, and we have a par- ticular responsibility toward them. The companies of Schwarz Group therefore undertake to take into account human rights-related and environment- related due diligence obligations in their supply chains. As part of the Code of Conduct (CoC) of the companies of Schwarz Group, we oblige our business partners to comply with human rights and environmental protection laws along the sup- ply chain in a risk-oriented manner and to avoid or reduce resource and environmental pollution as far as possible. These are in accordance with stat- utory regulations such as the German Supply Chain Due Diligence Act (LkSG). Our actions follow the process of corporate due diligence: x Step 1 – Identifying risks: The companies of Schwarz Group carry out annual and ad hoc risk assessments in order to identify environ- mental and human rights risks with business partners early on and manage these risks. Communicating Identifying risks Improving Defining specifications and processes Implementing and monitoring Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 57 Impacts By engaging with their supply chains in a respon- sible manner, the companies of Schwarz Group ensure that their products are produced under fair, ethical and environmentally sustainable condi- tions. Taking responsibility in the supply chain also helps to improve the working conditions and quali- ty of life for the workers employed along the chain. For example, improved social standards can in- crease the resilience and quality of suppliers and have a positive impact on social conditions in the countries of origin. In the long term, this ensures a stable, more sustainable supply chain, which in turn can improve the success of the company and strengthen its competitive position. In achieving this, the customers’ trust in the company increas- es and legal and reputational risks are reduced. Our Purchasing Structures and Overarching Responsibilities [GRI 2-6, 2-23 and 2-24] The organization of purchasing and procurement at the companies of Schwarz Group is partly divi- sion-specific and partly cross-divisional. In the retail divisions Lidl and Kaufland, the respective Purchasing departments have overall responsibili- ty for supplier management for merchandise and work in close cooperation with the relevant departments in the national companies. Schwarz Beschaffung GmbH (hereinafter: Schwarz Beschaffung) supports the companies of Schwarz Group through the strategic pro- curement of non-merchandise goods (capital goods needed within the companies to carry out business activities) and by providing services. It is based within Schwarz Dienstleistungen and works with numerous suppliers from all over the world. The international CR/CSR departments in all divi- sions support and promote sustainable purchasing and the commitment to responsible action in the supply chain. The overall responsibility for human rights-related and environment-related due dili- gence lies with the respective Management Board of each of the companies of Schwarz Group. At Lidl, the Chief Purchasing Officer is responsible for sustainable purchasing. Quality and Sustain- ability in Purchasing International is responsible for the strategic and operational implementation of all sustainability matters in Purchasing Internation- al and Purchasing National in cooperation with the national companies. At Kaufland, the Sustainabili- ty Purchasing International department was estab- lished as a strategic and expert point of contact for purchasing-related sustainability issues. Close cooperation with the international purchas- ing departments and national colleagues for sus- tainability in purchasing enables targeted mea- sures that help us to fulfill our responsibilities as a food retailer. Purchasing for non-food items at Kaufland is almost fully integrated into the respective Purchasing department at Lidl. Purchasing is also responsible for procurement at Schwarz Produktion. Lidl Purchasing is in charge of part of the procurement process regarding selected strategic product groups. At GreenCycle, as part of PreZero group, the Waste Disposal Network department has been responsible for purchasing waste disposal services for Lidl and Kaufland, and for creating and developing a central supplier and service management system since 2019. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 59 these effects. Scope for action arises for instance in adopting principles for responsible purchasing practice and implementing enhanced transparen- cy requirements for suppliers with standards and certification partners. Kaufland also has corre- sponding internal documents, which contain re- quirements for the Purchasing departments and are constantly being revised. Process Step 2: Defining Specifications and Processes Clear sustainability-related criteria, standards and legal obligations apply at both a global and region- al level to ensure compliance with human rights and environmental standards in supply chains. The companies of Schwarz Group make contrac- tual partners aware of their obligations in line with the contractual agreements, for example the jointly developed and adapted Business Partner Code of Conduct of the Companies of Schwarz Group (see section Compliance). In addition to this Code of Conduct, Schwarz Beschaffung also has its own procurement principles, for example. These also include production standards for sup- pliers. In addition to selection criteria related to the financial situation and quality, there are also selec- tion criteria related to human rights and environ- mental aspects pursuant to the German Supply Chain Due Diligence Act. The retail divisions, Schwarz Produktion, and PreZero also have corresponding criteria for sup- plier selection and management. At Schwarz Produktion, suppliers of raw materials and pack- aging must go through a supplier approval pro- cess, including the provision of a detailed self- disclosure, in order to successfully complete the approval process to become a business partner. Audits may also be performed. These are sepa- rate to any risk assessment performed by Quality Management in relation to quality risks. Schwarz Produktion also requires suppliers of raw materials and packaging to make a commitment themselves by becoming members of programs such as amfori BSCI or SEDEX, for example. The aim of this requirement is to improve social standards in global supply chains. If they do not commit to this undertaking, suppliers will not be approved. Lidl has summarized its requirements for business partners alongside the general and cross-divisional requirements in three Sustainable Purchasing Policies, one for each assortment category (non-food, F&V, food). These include product-group-specific information on the expec- tations regarding compliance with the Code of Conduct. Kaufland has also published its own position on human rights on its website and explains its approach to this matter and the rele- vant supplier obligations as well as providing numerous other documents. When entering into a business relationship with companies of Schwarz Group, business partners are required to adhere to the relevant standards in their businesses as far as possible and to promote compliance with the standards in their upstream supply chain. In this way, the companies of Schwarz Group are helping to ensure that their direct suppliers respect human rights and comply with statutory environmental and social requirements. For raw materials associated with high human rights risks and environmental risks in particular, the companies of Schwarz Group set themselves specific goals and continuously work to implement appropriate measures. They define clear re- quirements for their business partners to ensure that these targets are achieved. These require- ments include certification for products and raw materials, participation in the further develop- ment of standards, and the implementation of funding projects. The divisions develop their own human rights strategies. The aim of these strategies is to ensure that human rights risks are minimized and that standards are consistently met. A risk-based ap- proach is taken when developing the strategies. This means that Lidl, for example, focuses on the supply chains that are particularly relevant based on its own assortment-specific risk analysis. The company has also taken into account the ex- pectations of its customers and society and the priorities of NGOs, as well as legal developments and scientific findings. The individual elements of the human rights strategy are: keeping track of impacts, safeguarding standards, expanding fair trade and driving change. This approach is based on clear responsibilities: The implementation of the strategy is monitored by the respective Management Board of the company concerned. The respective Board is regularly updated on any incidents and progress relating to human rights issues in the supply chains. In addition, routine decision-making exercises take place at Executive Board level to align the human rights strategy. In addition to the requirements for business part- ners, there are corresponding internal require- ments and processes in place for Procurement and Purchasing departments. At Lidl, the CSR Purchasing Manual provides important guidance when it comes to assigning clear responsibilities and targets. This is an internal document aimed at all Purchas- ing departments for Lidl merchandise. The manual covers topics such as the potential negative im- pacts of business activities in supply chains and sets out requirements and tips for how Lidl buyers can mitigate and have a positive influence on Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 61 Process Step 4: Improving [GRI 2-6, 2-24, 2-25, 2-26, 203-2 and 414-2] The companies of Schwarz Group strive to bring about improvements within supply chains through targeted involvement. By monitoring and evaluat- ing the requirements and processes, the identified hotspots can be continuously improved. Lidl, for example, uses the EcoVadis platform for selected food and non-food suppliers. This platform is used to assess the sustainability management system of direct business partners. The business part- ner’s performance is analyzed using a universal scorecard, and Lidl and the business partner can then jointly work on measures for improvement. Complaint Mechanisms and Remedial Measures Negative effects should be systematically eliminat- ed, avoided or minimized. In this context, it is im- portant to us that we ensure that all parties in- volved have access to effective complaint mecha- nisms. To ensure that they are informed of any human rights violations and that affected parties receive appropriate redress, the companies of Schwarz Group have established such complaint mechanisms in over 30 languages. This means that action can also be taken if there is a cluster of similar cases. The complaint mechanisms allow affected parties or witnesses to report potential violations of human rights and environmental stan- dards in confidence, including via the “BKMS” online reporting system. All complaint mecha- nisms of the companies of Schwarz Group are constantly being developed further and improved. There are also numerous training sessions containing information on and references to the complaints systems available. Suspected viola- tions can be reported at any time to the compli- ance officers of the companies of Schwarz Group or, if desired, anonymously via the various online reporting systems. Key findings from complaints are used to further develop the mechanisms and identify risks. If any adverse impacts caused or influenced by the companies of Schwarz Group are identified, we will always strive to remedy the situation. To achieve this, we use our powers of influence to ensure that the affected parties re- ceive appropriate redress. The companies of Schwarz Group reserve the right, as a last resort, to terminate supplier relationships if there is no evidence of progress despite remedial measures being taken and the supplier has violated fundamental social and environmental stan- dards and laws. As part of the implementation of the German Sup- ply Chain Due Diligence Act, the topic of child la- bor and forced labor is afforded the same level of consideration as other relevant topics in the area of human rights and environmental standards. Even before the German Supply Chain Due Dili- gence Act came into force, the risk analyses car- ried out by Lidl and Kaufland already involved an- alyzing the procurement of products containing raw materials from high-risk sectors where child labor is a concern. If cases of child labor are con- firmed, we work closely with our suppliers and independent third parties in order to remedy the situation with regard to the affected children and their family. At Lidl, for example, we do this in co- operation with the Center for Child Rights and Business. As part of the remediation, affected families, for instance, receive financial assistance equal to the standard minimum wage in the re- spective country. This is aimed at ensuring that the children are not forced back to work out of economic necessity. Based on discussions with affected children and their families, the goal is also to enable the affected children to attend school and get an edu- cation so that they are able to improve the income situation for their families over the long term. Fair Wages in the Supply Chain As well as taking a stand against child and forced labor, it is important to the companies of Schwarz Group to ensure fair wages as well as a secure income for employees in the supply chains. We consider our commitment in this regard to be an integral part of our corporate due diligence. This applies not only to the remuneration of our own employees, but also to that of partners throughout the global supply chain. In particular, this includes local suppliers in international pro- curement markets and producers in the regional agricultural sector, for whom we aim to ensure fair wages. Flagship projects in this area include Lidl’s commitment to the “Living Wage Banana” in Germany, Belgium, the Netherlands and Austria, as well as Lidl’s Way To Go products. The aim of the “Living Wage Banana” project is to ensure living wages in the supply chain. When Lidl in Germany committed to this project in 2022, it became the first German retailer to set the goal of closing its share of the wage gap in its banana supply chains. As a result of this initiative, Lidl’s share of the wage gap in the procurement of bananas has been completely closed for around 10,000 plantation workers. Lidl in Germany is im- plementing various measures to bridge the wage gap in the four producer countries of Colombia, Ecuador, Guatemala and the Dominican Republic. In addition to organic Fairtrade bananas, custom- ers in all German Lidl stores are offered Fairtrade and Rainforest Alliance certified bananas. Lidl in Germany published its first report on the findings and successes of the project in 2024. Moving for- ward, the project will be expanded to include other Lidl countries and the findings will be shared with the relevant stakeholders. In the future, the project will also seek to close the gender pay gap. Another example of our commitment to fair trade and a higher, secure income is the Way To Go project initiated by Lidl. When producers sell their products, in addition to the minimum price and Fairtrade Premium, they receive a further sur- charge in the form of a cash component as well as funding for training opportunities and projects to help them diversify their income. Way To Go there- fore permanently improves the working and living situation of small-scale farmers through higher incomes, training and targeted support for women. This approach has been developed in collabora- tion with the longstanding partner Fairtrade. Since 2020, Lidl has been selling Way To Go Fair- trade certified chocolate bars under its private label of the same name. The sale of Way To Go chocolate has already ben- efited over 2,220 cocoa farmers from 26 Ghana- ian municipalities – 30 percent of whom were women. The project has since been expanded to include other product groups such as coffee and Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 63 Shaping Focus Areas Product Quality Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 65 Impacts There is a risk of potentially negative impacts when producing food. Examples include the inten- sive use of land to cultivate feed or working condi- tions that may result in disadvantages for workers. Sustainable product design can reduce these neg- ative impacts while bringing about positive change for the environment and society, for example by using recognized labels such as the organic seal to ensure high product quality. Providing informa- tion about the supply chains, which can partially improve the traceability of products, enables con- sumers to make informed decisions and choose to buy products that are produced sustainably. Food also has an impact on the health of custom- ers. By offering a responsible product assortment, for example by reducing salt, sugar and fat, we can improve the nutritional value of products and mitigate negative effects. Our actions are also guided by internal guidelines and principles. The companies of Schwarz Group publish the approaches and measures they take for a sustainable assortment and the procurement of raw materials in various position papers and purchasing policies: Lidl in Germany – Positions, Position Papers and Purchasing Policies (German): Purchasing Policy Raw Materials x Position Paper for the More Sustainable Purchasing of Coffee x Position Paper for the More Sustainable Purchasing of Private-Label Products and Packaging Containing Cellulose x Position Paper for a More Conscious Use of Water x Purchasing Policy for Supply Chains Free from Deforestation and Conversion x Human Rights & Environmental Due Diligence Policy x Human Rights in the Supply Chain Policy x Purchasing Policy for Gender Equality in the Supply Chain x Position Paper for the More Sustainable Kaufland – Guidelines (German): x Fish Guideline x Guideline for Better Animal Welfare x Guideline on Soy as Animal Feed x Guideline on Sustainable Textiles x Transparency Report on Fruit and Vegetables x Transparency Report on Flowers and Plants x Water Guideline x Guideline on Combating Food Waste The scope of the two retail divisions’ policies and position papers is always clearly defined and can vary at national level depending on the topic. Purchasing of Cocoa x Position Paper for the More Sustainable Purchasing of Fruit and Vegetables x Position Paper for Flowers and Plants x Position Paper for the More Sustainable Purchasing of Palm (Kernel) Oil x Position Paper for the More Sustainable Purchasing of Tea x Purchasing Policy for the More Sustainable Purchasing of Animal Products x Position Paper for the More Sustainable Purchasing of Fish, Shellfish and Their Products x Position for Sustainable, Future-Proof German Agriculture x Purchasing Policy Conscious Nutrition x Position for the Reduction of Food Waste x Position Paper for Microplastics x Position Paper on the Mandatory Deposit for PET Single-Use Bottles in Germany Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 67 Target KPI / Measurement Status Target Attainment Page(s) For the production of the Kaufland private label K-take it veggie with soy as a basic ingredient, our suppliers exclusively use soy from the EU as an ingredient. The soy used is deforestation-free and conversion-free (pursuant to the criteria of the Accountability Framework initiative). Proportion of certified soy in the entire soy assortment 100% Kaufland 100% With regard to the procurement of cotton, Lidl and Kaufland aimed to achieve 100% certification through selected seals (GOTS, OCS, CmiA) for textiles, hard goods and more sustainable cotton by the end of 2022. Proportion of certified cotton in the entire cotton assortment By the end of 2025, Lidl aims to procure 20% of its cotton items in organic quality. By 2025, Lidl will reduce the sales-weighted, average added sugar and salt content in its private-label assortment by 20% (base year: 2015). Weighted average content of added sugar, salt and fat based on sales By 2025, Kaufland in Germany will reduce the sugar, salt and/or fat content in 500 private-label items by 20% on average (base year: 2015). By 2025, the companies of Schwarz Produktion will reduce the average sugar content per liter of beverages sold by approx. 30% and the average salt content per kilogram of baked goods sold by approx. 30% (base year: 2015). 118 70 72 72 95% 100% 18% 20% Organic Cotton -15% Sugar -20% -10% Salt -20% Lidl Lidl -17% Kaufland Sugar -20% -19% Kaufland Salt -20% -32% Schwarz Produktion 72 -34% Schwarz Produktion Sugar -30% Salt -30% Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 69 Measures & Projects Certified Products in the Food Industry [GRI 417-1] The companies of Schwarz Group focus on sustain- able product design with raw materials that are certi- fied by third parties. Powerful partners and their certification systems play a fundamental role in rela- tion to our strategic direction and the development of a sustainable product assortment. In the food industry, the retail divisions rely on recognized stan- dards, such as Fairtrade, organic and the Rainforest Alliance, to promote socially and environmentally sustainable production. At Lidl, most of the private- label chocolate bars bear corresponding seals. At Kaufland, all private-label products that contain cocoa are – as of September 2024 – Fairtrade, Rainforest Alliance or organic certified. The cocoa used in all ice cream products manufactured by Schwarz Produktion is labeled with a sustainability seal. This expansion of certified products is also happening at country level (see graphics with example countries). An overview of the certifications used at Lidl and Kaufland can be found online (see the overviews of seals to the right). When procuring raw materials, the focus of the com- panies of Schwarz Group is always on ensuring a responsible approach to natural resources and the people employed in the supply chain. This applies in particular to the strategically important raw materials of cocoa, palm (kernel) oil, coffee, soy, fish and cot- ton. Large quantities of these raw materials are needed to produce the products sold and used by the retail divisions. Lidl and Kaufland have also de- fined critical raw materials at a division-specific level. Number of Fairtrade-certified Items in the Assortment – Lidl Croatia1,2 2021 203 2022 184 2023 295 +60.3% 3 Number of Rainforest Alliance-certified Items in the Assortment – Kaufland Slovakia 1 2021 153 2022 230 2023 332 +44.3% In collaboration with well-respected associations, Lidl and Kaufland are increasingly offering their cus- tomers local and organic food that is produced to the highest standards. For example, Kaufland in Germany had over 250 products of Demeter quality in its assortment in the 2023 fiscal year, including juices, dairy products, spreads, pasta products, baby food, and fruit and vegetables. Under the K-Bio private label, over 100 products are certified pursuant to Bioland requirements. As part of their cooperations with Demeter and Bioland, the retail divisions are also supporting various sustainable future-oriented projects. These include, for example, projects that promote the establishment of bio- topes and traditional German orchard meadows. K-Bio Bioland apple juice, which contains 30 per- cent meadow orchard apples, has been helping to preserve and maintain meadow orchards since 2024. By 2025, Lidl in Germany wants ten percent of the permanent assortment to be organic or Bioland food, with the aim of promoting sustainable agricul- ture. This share was already over nine percent4 in the 2023 fiscal year. In total, Lidl in Germany has introduced around 600 organic items5, of which over 130 items5 from the food sector are produced pursu- ant to the strict requirements of the Bioland associa- tion. The assortment includes cereals and dairy products, fruit and vegetables, meat and sausage products, eggs, frozen goods, and potato snacks. Other national companies have also set targets to expand their range of organic products. Furthermore, since January 2020, Lidl in Germany has also supported the Bioland Stiftung. Through this commitment, we are supporting forward-look- ing, sustainable agricultural projects, such as train- ing opportunities for farmers. As part of the BODEN. BILDUNG project, farmers are trained to become soil practitioners and learn how to make their soil more fertile, for example though measures to build up humus. Another project supported by the founda- tion is HÖFE.BILDEN.VIELFALT, which gives farmers practical, tailored guidance on how to protect and increase biodiversity on their farm. Lidl – Overview of Seals (German): Responsibility – Good For You – Lidl in Germany Kaufland – Overview of Seals (German): Product seals: What is behind them? | Kaufland 1 | Number of all sales items (excluding promotional/seasonal items and non-food items) designated for sale to in-store customers. At Kaufland, items are counted on the FY end cut-off date, while at Lidl, all private-label items are included that were available for sale to customers over the entire FY. 2 | At Lidl, promotional private- label items are also included. 3 | www.ra.org 4 | Not including non-food items. 5 | In the permanent assortment and promotional assortment. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 71 Responsible Animal Husbandry Compliance with and the promotion of responsible husbandry conditions for terrestrial and aquatic live- stock plays an important role for the retail divisions Lidl and Kaufland, with due consideration given to the specific circumstances and characteristics of each country. The focus here is on labeling animal products with transparent information about the respective animal husbandry conditions, which gives consumers the information they need to make an informed purchas- ing decision (you can find more information on this topic in the Transparent Product Communication chapter). In Germany, Lidl and Kaufland have been using a 4-level model to transparently label husbandry methods for all fresh meat products (1 = Indoor husbandry to 4 = Premium) since 2018. For the higher husbandry method levels, Lidl uses exclusively raw materials from Germany. A revised political agenda is necessary to create the require- ments for reshaping animal husbandry in line with the higher husbandry methods. By 2025, Lidl aims to establish the level 2 hus- bandry method as the minimum standard for its entire fresh meat assortment in Germany, exclud- ing international specialties. All fresh poultry prod- ucts and the entire fresh pork assortment are al- ready produced in accordance with at least the level 2 husbandry method or higher. Furthermore, the level 3 and 4 husbandry methods are being expanded and used for an increasing amount of Lidl’s private-label products: Lidl beef and milk products are currently being converted to these two levels. The aim is for at least 40 percent of the Lidl fresh meat assortment to be produced in accordance with the level 3 and 4 husbandry methods by 2024, at least 50 percent by 2025, and 100 percent by 2030. Seven other Lidl coun- tries (the Netherlands, France, Great Britain, Ireland, Denmark, Austria and Switzerland) also set stricter targets in 2024 to improve animal wel- fare in the production of pork, beef and poultry products by 2026 or in some cases by 2030. One of the ways in which Kaufland promotes more humane animal husbandry in Germany is with its K-Wertschätze private label. All K-Wertschätze products are certified pursuant to recognized ani- mal welfare standards and programs. At Kaufland in Germany, meat from pigs, cows, turkeys and chickens at the deli counters is exclusively pro- duced according to the level 3 husbandry method “Outdoor environment,” which involves higher ani- mal welfare standards. In the self-service area at Kaufland in Germany, pork and beef produced in accordance with the level 3 husbandry method have been offered throughout Germany since 2021. The amount of fresh poultry products pro- duced in accordance with the level 3 and level 4 husbandry methods was doubled in the 2023 re- porting year, with the plan to increase this to 20 percent of the fresh poultry products on offer by 2026. In 2022, the proportion of milk produced according to the level 3 and level 4 husbandry methods was increased to 40 percent for UHT milk and to over 65 percent for fresh milk. You can find more information on animal welfare standards and programs in the Kaufland International Animal Welfare Guidelines (German). The retail divisions also pay attention to the use of genetic engineering in animal feed. Around 89 percent of the dairy products sold by Kaufland in Germany are produced without using genetically modified feed. At Lidl in Germany, this figure is 85%. Milk sold by Lidl in Germany is already 100% produced without using genetically modi- fied feed. Exceptions include compound pro- ducts or specialties whose milk ingredients do not come from Germany. In addition, Lidl and Kaufland exclusively sell fresh poultry that com- plies with the German Genetic Engineering Act (Gentechnikgesetz). The retail divisions are also focusing on sustain- able purchasing for fish. At Lidl in Germany, al- most all wild-caught fish and shellfish in the fro- zen, fresh, canned, and specialty goods areas bear the MSC label. 100 percent of fish and shell- fish from aquaculture is ASC, organic or GLOBAL- G.A.P. certified. In the promotional assortment, 80 percent of Lidl private-label items are certified fish products. The long-term plan is to increase the proportion of certified raw ingredients in this assortment as well. Since 2018, Kaufland has of- fered exclusively ASC, MSC and GLOBALG.A.P. certified fish and prawns across its entire frozen private-label assortment in all its German stores – and was the first food retailer to do so in Germa- ny. Other national companies are also successfully expanding their certified fish assortment, includ- ing Lidl Belgium and Kaufland Poland (see graph- ics below). Our commitment to responsible animal husbandry also applies to the food we serve our own employ- ees: Almost all of the fish prepared at Schwarz Restaurantbetriebe comes from MSC-certified fisheries or ASC-certified fish farms. No live ani- mals or animals on red lists of endangered species are used in the restaurants. Number of ASC-certified Items in the Assortment – Lidl Belgium1,2 2021 133 2022 130 2023 153 +17.7% Number of MSC-certified Items in the Assortment – Kaufland Poland1 2021 68 2022 78 2023 91 +16.7% 1 | Number of all sales items (excluding promotional/seasonal items and non-food items) designated for sale to in-store customers. At Kaufland, items are counted on the FY end cut-off date, while at Lidl, all private-label items are included that were available for sale to customers over the entire FY. 2 | At Lidl, promotional private- label items are also included. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 73 Healthy Nutrition at Schwarz Restaurantbetriebe The companies of Schwarz Group also treat the topic of conscious nutrition as a priority when it comes to their employees. Schwarz Restaurant- betriebe prepare fresh dishes using seasonal products and do not use any ready-made sauces, powdered ingredients, artificial flavor enhancers or glutamate in their recipes. The restaurants fo- cus on offering a balanced menu with regional and seasonal recipes and the use of legumes and veg- etables. For almost every dish, we also offer a vegan or vegetarian alternative. We do not use palm oil in any of our recipes. Ensuring the Safety and Quality of Products and Services Organization & Responsibility [GRI 416-1 and 416-2] — Safety is a key element in ensuring the qua- lity of all goods and services. This includes not only food safety, but also data privacy and secure digital services, such as the Schwarz Digits cloud service. Compliance with food regulations, evaluating po- tential consumer complaints, and in-house re- quirements for labeling private-label products are the responsibility of the Purchasing departments at Lidl and Kaufland, together with Quality Man- agement and Quality Assurance. The national companies of the two retail divisions implement their own measures and projects. At Schwarz Produktion, the Quality department is responsible for ensuring compliance with food regulations, reviewing potential customer complaints and im- plementing internal specifications for the produc- tion of private-label products. The quality manag- ers in the production plants are responsible for ensuring all quality-related regulations and processes are implemented and adhered to in operations. At Schwarz Digits, in order to ensure the security of the STACKIT cloud solution, cutting-edge security technologies such as Zero Trust, least privilege and multi-factor authentication are imple- mented, and existing security technologies are continuously being expanded. All of these technol- ogies are certified pursuant to the ISO 27001 standard. Since 2023, external auditors have conducted annual BSI C5 audits to verify the im- plementation of the requirements and the effec- tiveness of the controls. Stakeholder Involvement [GRI 2-25 and 2-29] The needs of our customers are a top priority for us. Therefore, a comprehensive complaint man- agement system is a key aspect of quality assur- ance. A complaint management system is estab- lished and anchored in the customer service and customer management processes at both Lidl and Kaufland. Customer concerns and complaints can be submitted by phone or via an online form on the Lidl and Kaufland websites. To enable a complaint process for all parties in the supply chain, both divisions have also established a publicly accessible online reporting system (see the People chapter). Moreover, emergency numbers are available to all contract partners – at Lidl this is organized internationally, while Kaufland has country-specific contacts. Quality complaints about products and product-related crises are also managed, assessed and processed by the person or persons responsible for quality assur- ance and/or quality management in Purchasing. Beyond their own extensive activities, Lidl and Kaufland are also involved with various organi- zations that are responsible for food safety. A comprehensive overview can be found in the Stakeholder Management chapter. PreZero provides an online contact form, a cus- tomer phone number and an online reporting system for compliance violations. At Schwarz Produktion, a complaint and queries management system has been established for years, including reporting to general management and the Management Board. All consumer inquiries or complaints, whether by phone, post, email or via the homepage, are processed and analyzed in the Quality department, and effective cor- rective measures are defined together with the departments/plants. Measures & Projects Quality Management Systems [GRI 416-1, 416-2 and 417-1] To systematically manage product safety, legality and high quality, Lidl works according to a recog- nized quality management system certified pursu- ant to ISO 9001. Product safety is its top priority. At Lidl, all corresponding processes are carried out according to the requirements of this manage- ment system, which governs the quality targets and principles as well as clear process specifica- tions and responsibilities. The processes are regu- larly reviewed and subjected to corresponding audits. Employees are trained by the responsible departments where required. A CR manual with internal specifications for selected raw materials offers the purchasers and quality managers the necessary guidance to implement sustainability requirements for specific product groups. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 75 Every day, hundreds of tons of fresh fruit and Quality Assurance for Fruit and Vegetables — vegetables are delivered to around 13,900 Lidl and Kaufland stores around the world. Therefore, product and food safety are of the utmost importance for this product group. In order to define a high safety standard for the use of pesticides, Lidl and Kaufland have jointly drawn up a binding banned substances list for fresh fruit and vegetables containing over 200 active substances. To guarantee a high level of product quality, we must perform a detailed analysis on all deliveries following standardized processes. Many tests are carried out even before harvest, or before the goods are loaded. In addition to results from the test reports of neutral samplers and external ac- credited laboratories, evaluations of the conditions in the growing regions are incorporated into our findings. Other examples of quality assurance by the Lidl and Kaufland retail divisions: x x Definition of own specification values for pesti- cides in purchasing policies that go beyond the legal requirements set out in Regulation (EC) No 396/2005 of the European Parliament x Cooperation with agricultural producers that are certified pursuant to the GLOBALG.A.P. stan- dard for controlled agricultural corporate man- agement or the QS quality standard1 x Cooperation with and support for all producers of fruit and vegetables during the completion of the GLOBALG.A.P. GRASP add-on for social concerns of workers1 x To take into account the topic of biodiversity, Lidl and GLOBALG.A.P worked in a multi-stake- holder project team to release an industry-wide solution for biodiversity, published in April 2022 as the GLOBALG.A.P. Biodversity add-on. As part of an extensive pilot project, by the end of 2023, over 900 European fruit and vegetable growers had been certified in accordance with the new add-on. In order to promote sustainable water manage- ment in farming and agriculture, Lidl has set itself a specific target1 with regard to the certifi- cation of its fruit and vegetables assortment in various risk countries. Kaufland is also planning a similar certification. The targets as well as additional information related to this topic can be found in the Ecosystems chapter. A Focus on Ingredients For the companies of Schwarz Group, private- label products represent a key lever to achieve improvements in product quality. The topic of in- gredients is a key area of focus here: On the one hand, the goal is to reduce undesirable substanc- es, such as possible residues or contaminants. On the other hand, the companies of Schwarz Group want to increase the proportion of selected raw materials from certified, sustain- able production. To reduce or replace criticized ingredients, Lidl and Kaufland are implementing a wide range of measures for their private-label products. For example, Lidl in Germany has set concrete targets for reducing colorants and flavoring agents (which can be viewed in the Purchasing Policy for Conscious Nutrition). Lidl in Germany is also pursuing the goal of reducing the use of preserva- tives as much as possible, or even outright avoid- ing them, as long as this does not impact food safety. For example, Lidl and Kaufland have intro- duced a corresponding blacklist that excludes certain colorants from their private labels in the food area. — Product Analyses in the Private-label Assortment [GRI 416-1] 118,740 118,025 105,155 40,177 24,213 19,202 2021 2022 2023 2021 2022 2023 Food assortment Non-food assortment The number of product analyses in the non-food area (private labels) in particular has decreased over the past fiscal years. One reason for this is the use of synergy effects between the two retail divisions Lidl and Kaufland since the 2023 fiscal year. 1 | Statement was not included in external review. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 77 Transparent Product Communication Management Approaches 1 | The Eco-Score project was developed by a French con- sortium to inform consumers of the impacts of food. More information: https://docs.score -environnemental.com/v/en The Use of Sustainability and Nutritional Labels Organization & Responsibility [GRI 2-29] At Lidl, the Product Marketing team based in Pur- chasing as well as the Marketing and Corporate Communications teams are responsible for cus- tomer information. The Branding & Packaging and Quality & Sustainability teams are responsible for packaging design. At Kaufland, the communication measures, the initiatives to raise consumers’ awareness and product marketing are the responsibility of the CR team, supported by Marketing and Corpo- rate Communications as well as the Purchasing and Quality Management departments. Complaint mechanisms such as hotlines are based in the Customer Management department. Customers receive a prompt answer, and if neces- sary, additional departments are involved in the response. If suggestions are made or constructive criticism is expressed, the responsible depart- ment checks whether they can be implemented. Measures & Projects Nutri-Score and Eco-Score [GRI 417-1] Lidl and Kaufland were two of the first companies to introduce the Nutri-Score voluntary nutritional label. Since taking this step, both divisions have been gradually extending the label to their private- label portfolio. By doing so, Lidl and Kaufland make it possible for customers to consider the nutritional value of foods when making a purchas- ing decision. Back in early 2020, Kaufland became one of the first retailers to start introduc- ing the Nutri-Score nutritional label and is seeking to introduce this label for all eligible products where regulations allow. Since then, the food re- tailer has introduced the voluntary Nutri-Score rating for many items from its K-Bio, K-Classic and K-take it veggie private labels. At Lidl, the Nutri-Score is also used in all countries that do not yet have a corresponding labeling system and where legislation allows. Lidl started using the Nutri-Score label for its private-label products in 2019, and now the majority of the private-label product range bears it. As part of a pilot project, Lidl in Germany trialed the Eco-Score1 label on the price tags of selected products in all of its Berlin stores, becoming the first German retailer to do so. With this five-level product label, customers can identify the level of sustainability of food and its impacts on the envi- ronment at a glance The project was successfully completed. The results were evaluated in collabo- ration with researchers from Baden-Wuerttemberg Cooperative State University (DHBW) and made available to the public. Lidl supports a standard European label. Other Markings and Labels The companies of Schwarz Group strive to further increase the level of transparency around their products. They are already using traceability solu- tions in order to achieve this goal. These solutions make it possible to trace the origins of individual raw materials and provide access to the informa- tion via barcodes on the packaging. Kaufland cus- tomers receive extensive information about all fish products and certain meat products from various private labels. At Lidl, information is also provided for fish and meat products. On a large proportion of its packaging for marinated and seasoned meat, Lidl has introduced a voluntary country of origin label. This is also used for all fish items. As a result, Lidl has exceeded the legal require- ments within the EU. When it comes to labeling of origin, a QR code is usually used. The next step will involve providing a more transparent picture with regard to potential CSR risks in the food retail supply chains. The aim is to digitally map out sup- ply chains and to identify social and environmental risks. In this context, Lidl is currently considering working together with external service providers that offer relevant solutions in this area. Both retail divisions are also implementing pro- grams and projects to continuously reduce the use of pesticides beyond what is required by law. To this end, Lidl has introduced its own internal requirement that only one third of the legal maxi- mum level of active substance residues is allowed. Merchandise produced according to ecological and social standards is clearly identified at Lidl and Kaufland with independent certifications and respective product labels. To highlight the bene- fits, consumers are informed about the sustain- ability of the products in leaflets and on packag- ing. For example, Kaufland marks the respective products from its private-label assortment with the logo “Machen macht den Unterschied” (Our ac- tions do the talking), in connection with the rele- vant and current sustainability labels such as Fair- trade or Rainforest Alliance. For more information on this, see the Certfied Sustainable and Regional Raw Materials Procurement chapter. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 79 Shaping Focus Areas Circular Systems Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 81 Principles, Policies and Obligations [GRI 2-23] The companies of Schwarz Group continue to review their level of ambition in relation to the top- ic of circular systems. As part of our commitment, we regularly exceed the legally required mini- mums – such as for packaging or our “Road to Zero Waste”. Nevertheless, statutory develop- ments also help to push this topic forward. Among other things, the following regulatory developments are key: x The Packaging Regulation of the European Union (EU) will replace the existing Packaging and Packaging Waste Directive. The goal of this regulation is to more effectively reduce the envi- ronmental impacts of packaging and increase the responsibility placed on manufacturers. The regulation also promotes the development of more sustainable packaging solutions and the use of recyclable materials. x The EU Ecodesign Regulation sets harmonized and binding minimum requirements for products in the EU. As such, the market for efficient and environmentally friendly products is strength- ened, and the reduction of energy and resourc- es facilitated. The regulation focuses on product design so as to take the fullest advantage of potential at this early stage. x The EU Waste Framework Directive establishes a legal framework for the handling of waste. The top priority of this directive is to bring the EU closer to the goal of becoming a “recycling society” by promoting improved separation and recycling of waste. The companies of Schwarz Group have been tak- ing action for many years now to pave the way toward a functioning circular economy, even be- yond the statutory driving forces. Since signing the Global Commitment of the Ellen MacArthur Foundation in 2018, we have made a commitment to actively work toward the more sustainable use of resources. The Ellen MacArthur Foundation is a nonprofit organization founded in 2010. Its aim is to accelerate the transition to a circular economy. This agreement was launched by the Ellen MacAr- thur Foundation in collaboration with the UN Envi- ronment Programme. Working together with the involved companies and with governments, NGOs and initiatives, we develop new strategies and solutions to promote a circular economy, in particular for plastics. Member The Plastics Pact Network of the Ellen MacArthur Foundation includes national plastics pacts in countries such as Great Britain, the USA and Po- land as well as regional pacts like the European Plastics Pact. The companies of Schwarz Group participate globally and support national imple- mentation wherever possible on a company- specific or cross-company basis. Lidl Portugal (Steering Committee), Lidl Great Britain as well as Lidl, Kaufland and PreZero in Poland are currently involved in this initiative. Impacts [GRI 306-1] The goal of conserving resources also applies to packaging materials in particular. The most im- portant functions of packaging include guarantee- ing the quality and hygiene of food and preventing food waste. It protects sensitive goods from envi- ronmental influences and ensures that they reach the consumers undamaged. Packaging therefore contributes to the preservation of food products. On the other hand, resources and energy are needed to produce packaging. Packaging made from plastic poses a particular challenge. Due to its durability, plastic packaging negatively impacts the environment if disposed of improperly. You can find more information about the topic of microplastics in the Ecosystems chapter. The adverse environmental impacts resulting from the use of packaging materials and plastics can be mitigated by adopting approaches that aim to establish a circular economy. For example, in- creasing the use of recycled material reduces the consumption of natural resources and decreases the carbon footprint1. Food waste also has a negative impact on the consumption of energy and resources. With limit- ed production space and capacity, and therefore also the limited availability of raw materials, taking steps to reduce food waste and carbon emissions is also important. The companies of Schwarz Group are also placing their reliance on aware- ness-raising measures to help their customers reduce food waste. 1 | The carbon footprint of recycled plastic is 59 to 88 percent lower than that of the raw material (virgin plastic), depending on factors such as the recycling process and the type of plastic (sources: Virgin vs. Recycled Plastic Life Cycle Assessment Energy Profile and Life Cycle Assessment Environmental Burdens 2020, Syndicat national des Régénérateurs de matières Plastiques 2017). Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 83 Resource Conservation and Circular Solutions Management Approaches 1 | Plastic KPIs are recorded on a calendar year basis. Packaging In the Packaging action area, the primary fo- Organization and Responsibility — cus is on plastic as a recyclable material. Its excel- lent protective functions make it a key packaging material for food. However, whoever puts plastic into circulation also bears responsibility for its fu- ture use. That is why the companies of Schwarz Group are committed to the collection, sorting and recycling of plastics. Since 2018, our commitment to this area has been supported and guided by the REset Plastic strategy, which was jointly devel- oped by the companies of Schwarz Group. The companies of Schwarz Group work together closely on this topic: in particular, the retail divi- sions Lidl and Kaufland, Schwarz Produktion, and the environmental service provider PreZero with its company, GreenCycle. Specific respon- sibilities for individual measures and process steps are assigned on a division-specific basis. Other departments and brands also complement work on this topic. For example, under the PreTurn brand of PreZero, intelligent multi-use pallets and pooling services are developed in cooperation with Schwarz Beschaffung. These solutions can be used to make the supply chain more efficient and sustainable. Targets of the Jointly Developed REset Plastic Strategy1 Make 100% of private-label packaging recyclable to the greatest extent possible. 54% 0% 100% Use 30% less plastic in private-label packaging and transport aids (compared with 2017). 0% 30% 34% Use on average 25% recycled material in private-label plastic packaging. 19% 0% 25% Stakeholder Involvement The companies of Schwarz Group regularly dis- cuss the topic of packaging with their stakehold- ers – including suppliers, interested experts, NGOs and scientists. This exchange mainly takes place while participating in and holding our own congresses, specialist presentations and workshops. For instance, in October 2023, the IT Hardware Checkout department of Schwarz Beschaffung invited its suppliers to Neckarsulm for the Sustainable Packaging Days. To prepare for the event, the packaging of over 100 products was analyzed and assessed together with col- leagues from PreZero. A key focus of the event was in-depth exchange between the individuals responsible for packaging in the suppliers’ compa- nies and the PreZero colleagues. Based on the results of the packaging analysis, workshops were carried out to derive measures for the suppliers to implement. The suppliers had until February 2024 to assess and implement these measures. A style guide for sustainable packaging resulted in this context, which will be relevant during the tendering process in future. Customers are also important stakeholders when it comes to packaging and establishing a functional recycling loop. In this respect, the companies of Schwarz Group are taking various approaches toward involving customers and raising their awareness, such as by providing relevant information on packaging (see the Separation and Disposal Instructions section). Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 85 Recyclability and the Use of Recycled Material in Packaging [GRI 301-3] To ensure that customers of Kaufland are able to make informed decisions about more sustainable packaging, Kaufland used an appropriate label “Bewusster verpackt” (consciously packed) during the reporting period. To qualify for this labeling, at least one of the following criteria must be met: As a result of working closely with PreZero, the retail divisions Lidl and Kaufland already use recy- cled material in their packaging for a wide range of laundry, cleaning and household products, as well as shampoos and shower gels. In 2023, PreZero won the award together with COMPO – a provider of branded plant care products for homes and gardens – for the development of a fertilizer bottle made entirely from regranulate. x Recyclability of at least 80 percent x Recycled content of 30 percent for plastic1 x Reduction in packaging materials of at least 20 percent2 x Use of alternative materials3 Schwarz Beschaffung is also reducing the use of new plastic in other packaging materials. An example of this can be found in the food stor- age containers that are used at the service count- ers at all Kaufland stores in Germany and in Czechia, which have been made of 80 percent recycled PET since July 2023. They are gradually being introduced in other countries. — Plastic Reduction, Recyclability and the Use of Recycled Materials4 Unit 2021 2022 2023 Trend 2022/23 Recyclability of plastic packaging Recyclability Recycled materials in private-label primary plastic packaging Recycled materials content % % Recycled materials content laundry/cleaning/household products/cosmetics % 49.7 53.2 53.7 +0.5%P 14.3 13.8 17.4 16.5 18.7 +7.3%P 16.6 +0.6%P Recycled material produced Recycled material produced by Schwarz Produktion Recycled material produced by PreZero Plastic reduction in private-label packaging Plastic use Reduction in microplastics t t 54,265 58,861 61,872 +5.1% 87,594 123,535 100,490 -18.7%5 g/€ sales 7.5 6.6 6.1 -7.1% Proportion of microplastic-free items % 89.6 99.1 99.2 +0.1%P 1 | Recyclability is based on the official criteria of the Zentrale Stelle Verpackungsregister (Central Agency Packaging Register): www.verpackungsregister.org. 2 | Compared with own previous packaging or relevant competitor packaging 3 | E.g., silphium paper, chemical recycling 4 | The values shown in the table are for the respective calendar year. 5 | The decrease in recycled material produced by PreZero in the 2023 fiscal year is partly due to changes in the client base. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 87 Products Organization and Responsibility — Schwarz Beschaffung together with Green- Cycle – a member of the PreZero group – are re- sponsible for the use of recycled material in prod- ucts and building materials: They work closely with Lidl and Kaufland as well as in cooperations with manufacturers and recyclers. In the retail divi- sions, this takes products into consideration and involves consultation with the international Pur- chasing departments for non-food products and with Sales. The international and national Con- struction departments are involved with regard to sustainable construction materials. Measures and Projects Use of Recycled Material in Products and Stores [GRI 301-2] In collaboration with PreZero, Lidl and Kaufland offer promotional private-label household goods; their plastic content is made from 100 percent recycled material1. What is special about the prod- ucts made of recycled material: A large proportion of the process is covered by the companies of Schwarz Group themselves. The recycled material comes from plastic packaging that is disposed of in private households and subsequently collected, sorted, cleaned and reprocessed as regranulate by PreZero. The recycled material is then used to produce new household goods, such as organiz- ers, waste bins and cleaning buckets, laundry baskets, and transport and storage containers. These are sold at Lidl and Kaufland in promotions. Our household products are also recognized by external parties: For example, in 2022, the “Kuniboo Beach Toy Set” – created in cooperation with Mochtoys and sold at Kaufland – was a final- ist at the Plastics Recycling Awards Europe. Five different sandbox toys made of recycled ma- terials are available at Kaufland as promotional items – including vehicles, differently shaped molds, shovels and a sand mill. Whereas the toy vehicles are made from 80 percent recycled and 20 percent new plastic granulates, all the other products are made entirely2 from recycled plastic granulates as a general rule. PreZero and Kau- fland have also developed a Bobby Car in cooper- ation with toy manufacturer BIG. The body of the Bobby Car is made from over 70 percent post-consumer recycled plastic. The limited spe- cial edition called “Recycling-Helden” (Recycling Hero) was available in all Kaufland stores in Ger- many in March 2024. In the future, the companies of Schwarz Group will continue to extend the range of recycled products. Recycled material is also used in construction: To seal the roofs of stores and warehouses, the companies of Schwarz Group partially use roof sheeting containing 60 percent recycled materials made of used Lidl plastics. Not only does this in- crease supply reliability, it also reduces costs. After a successful pilot phase in Lidl and Kaufland stores, the roof sheeting will be deployed in new constructions or in roof modernizations in 23 countries in future. Since 2022, Lidl has also been relying on wall crash rails with recyclate from PreZero. They are made of at least 80 percent recycled material and deployed in some stores. In the 2023 fiscal year alone, the number of new wall crash rails amounted to 50,000 pieces. Individual fixtures and parts of the store equip- ment, such as goods dividers for the checkouts or flower buckets are manufactured either entirely or partly from recycled plastic. For example, the goods dividers for the checkouts which were de- veloped in a cooperation between the environ- mental division PreZero, Schwarz Beschaffung and Sales departments of the respective retail division is made of 100 percent recycled plastic. The advantages: around 14 tons of new material saved in the 2022 fiscal year and 15 tons in the 2023 fiscal year as well as more cost- effective production. Materials Used by Weight and Volume In tons3 [GRI 301-1] CY 2021 2022 2023 Trend 2022/23 Total promotional materials 537,310 476,990 387,036 -18.9% From fresh fibers4 243,182 216,424 129,306 -40.3% From recycled material4 294,128 260,566 257,730 -1.1% From recycled material From fresh fibers4 5,147 2,251 4,012 1,736 From recycled material4 2,896 2,276 3,093 -22.9% 1,163 1,930 -33.0% -15.2% A significant reduction in the promotional material and printer paper used in the companies of Schwarz Group was achieved compared with the previous year. This is largely due to the advancing transition toward digital advertising and digital work.5 1 | By recycled materials, we mean 100 percent PCR (Post-Consumer Recycled Materials, i.e., recycled plastic from household waste), coloring (color pigment) and filler for the referenced product category. 2 | Plastic content (approx. 95 percent) of the product is made of 100 percent recycled plastic, with the additional use of additives and coloring (approx. five percent). 3 | The calendar year was used. 4 | For consumables made from paper, we differentiate between fresh-fiber and recycled paper types. If the consumables are made from both fresh fibers and recycled paper, the larger proportion is key to assigning a paper type. 5 | Statement was not included in external review. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 89 As part of our efforts to continuously improve Stakeholder Involvement — the recyclability of products and packaging, we maintain a continuous dialog with relevant stake- holders. For example, in 2021, working as the initi- ator with a consortium of non-governmental orga- nizations (NGOs), organizations and testing/audit- ing institutions (TÜV Süd, DEKRA, TU Dresden, Resourcify, Repaq, Circular Berlin, and DIN), we developed a new standard: the Zero Waste certifi- cation pursuant to DIN SPEC 91436. You can find more information about this standard in the Developing the DIN SPEC 91436 Standard section. Waste at PreZero is generated at the central and administrative locations as well as at the recycling and production sites. It mainly consists of munici- pal waste, paper and other waste that is generat- ed during plant operation. The environmental impact varies depending on the type of waste. Generally speaking, waste is avoided or reused whenever possible. If this is not possible, it is recy- cled according to the specific national laws and the remnants are fed into other recovery methods. At selected sites there are individual supplementa- ry measures to reduce the volume of waste. — Measures and Projects Types and Sources of Waste [GRI 306-1] What kinds of waste are generated where de- pends on the business models of the respective company of Schwarz Group. For example, in the retail divisions Lidl and Kaufland, waste from the stores and warehouses, such as packaging and transport aids made of plastic or paper/card- board/carton are the primary types of waste. At the production plants, the focus is on waste from food production and packaging, and trans- port aids made from plastic or paper/cardboard/ carton. Waste from the PET bottle recycling plants, such as impurities and non-recyclable components, is also among the waste generated at the production sites. In this context, a distinc- tion is made between organic waste, plastics and metals. Conversely, at the administrative locations, waste is predominantly made up of municipal waste from the social areas and paper waste from the offices. Recovery Types1 In tons (2023) 173,350 t Thermal recovery with energy recovery 38,184 t Composting 453,072 t Fermenting 73,549 t Reusing 2,252,335 t Recycling 17,752 t Combustion 145,608 t Disposal 61,428 t Other2 3,215,278 t Total weight of recyclable material1 1 | Figures for PreZero’s own waste are only included as of the 2023 fiscal year. 2 | The category “Other” is a compound category which also includes volumes that cannot be positively assigned to the abovementioned categories. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 91 FY Recycling Reusing Fermenting Composting Combustion Disposal Other2 Total 1 | The tables only include the internally accu- PET Plastics Wood Scrap metal Glass 2021 2022 2023 Trend 2022/23 2021 2022 2023 155,006 166,187 171,404 +3.1% 70,065 71,824 84,151 Trend 2022/23 +17.2% 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 55,611 54,872 53,818 -1.9% 44,133 41,074 52,492 +27.8% 23,439 23,434 25,316 +8.0% 0 0 0 -- 0 0 0 -- 32,037 27,8978 32,179 +15.3% 0 0 0 -- 0 0 0 -- 0 0 0 -- 0 0 0 -- 0 0 0 -- 0 0 0 -- 0 0 0 -- Thermal Recovery with Energy Recovery 0 0 8 -- 8,794 7,080 5,541 6,1917 3,885 3,296 0 0 0 -- 0 0 0 -- 738 711 404 -43.2% -15.2% 0 0 0 -- 0 0 0 -- 0 0 0 -- 0 0 0 -- -21.7% +38.8% -17.7% >100% 0 0 0 -- 6 29 40 0 0 0 -- 845 292 240 1 0 251 >100% 233 119 825 2 0 67 -- 0 0 0 -- 0 0 0 -- 997 725 1,528 >100% 15 17 21 4 981 68 -93.1% 0 0 72 +21.2% >100% 0 0 1 -- 0 0 17 >100% 155,007 166,187 171,663 +3.3% 79,943 79,344 90,796 +14.4% 95,580 89,072 91,361 +2.6% 44,148 41,091 52,585 +28.0% 23,439 23,434 25,335 +8.1% mulated recyclable materials of the com- panies of Schwarz Group; for PreZero, values are only included as of FY 2023, with the exception of PET figures. Recyclables that PreZero collects from its customers and processes are not included. 2 | The category “Other” is a compound cate- gory which also includes volumes that cannot be positively assigned to the abovemen- tioned categories. 3 | Differences from the Progress Report FY 2022 and the Sustainability Report FY 2020/2021 result of retrospective correc- tions to the figures for “Organics” reuse/ recycling due to a revised definition for the recyclable material type “Organics”. 4 | As of FY 2023, the donations to the Tafel food backs are recorded under the “Reusing” recovery type. 5 | This includes, for example, old paints/varnish- es, household/industrial batteries, energy- saving bulbs, electrical waste, fluorescent tubes, (neon) toner, cleaning products, acids and lye, solvents, spray bottles. 6 | The other hazardous waste that is proc- essed using thermal recovery with energy recovery was calculated for the 2021 and 2022 fiscal years using an old calcula- tion methodology. 7 | Differences from the Progress Report FY 2022 and the Sustainability Report FY 2020/2021 result from retro- spective corrections due to additional data availability. 8 | Differences from the Progress Report FY 2022 result from retrospective correc- tions to the figures for “wood” reuse/ recycling due to better data quality. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 93 Separation and Disposal Instructions [GRI 306-3] — Correct waste separation is the prerequisite for successful recycling, as sorting plants do not sort as effectively and correctly as people can at home. Consumers play a crucial role here: The more effectively the waste is separated, the easier it can be turned into new, high-quality recy- cled materials. In order to increase awareness of this topic affecting society as a whole, PreZero has long been a permanent supporter of the initia- tive “Mülltrennung wirkt!” (Waste separation works). a campaign of the Dual Systems in Ger- many. PreZero makes advertising space available to the initiative on a total of 20 collection and transport vehicles. The separation and disposal instructions on private-label packaging at Lidl and Kaufland are another important element of consumer educa- tion. Both divisions base these instructions on country-specific statutory regulations and market conditions. The instructions provide information about the materials that make up the individual packaging components, making it easier for customers to dispose of them correctly. The goal is to motivate customers to properly dispose of their packaging and thus do their part to im- prove recycling. The separation and disposal instructions were designed so that they can be implemented inter- nationally in all Lidl and Kaufland countries. In- stead of specifying the disposal methods, which differ across Europe when it comes to collections from households, the material used and the corresponding recycling symbol are indicated in the instructions provided by the companies of Schwarz Group. The advantage here is that the separation and disposal instructions do not have to be redesigned for every country. Exceptions may arise from country-specific statutory require- ments and market circumstances. Developing the DIN SPEC 91436 Standard [GRI 2-23 and 306-2] As part of its efforts to promote sustainable waste and recyclables management, PreZero worked together with other experts to develop the new DIN SPEC 91436 “Road to Zero Waste” standard. The aim is to minimize non-recyclable waste and to optimize recovery and disposal. In line with our strategic target formulation, by the end of 2025, the companies of Schwarz Group will reuse, recycle or recover a significant percentage of the waste we generate. The companies of Schwarz Group had set themselves the goal of limiting their non-recoverable waste to a maximum of five percent in four pilot countries by the end of 2022. In these pilot countries, the DIN SPEC 91436 “Road to Zero Waste” standard is used to gain experience and derive measures for the com- panies of Schwarz Group. The certification pro- cesses were completed during the reporting peri- od at Lidl in the Czech Republic, Lidl Netherlands, Kaufland Romania and Kaufland Slovakia. In the process, the Lidl national companies met the set target of a maximum of five percent and thus achieved Gold certification. The Kaufland national companies recorded values of around seven percent, which earned them Silver certifica- tion. Lidl in the Czech Republic were re-audited in 2023 and received Gold certification once again for the following year. A roll-out to additional countries is currently being evaluated. Generally, all waste generated within the compa- nies is considered. At Kaufland, municipal waste that is generated by customers in the store park- ing lots is excluded from consideration. In addition, waste can be excluded if there are specific statu- tory requirements regarding the way it is recov- ered. German law stipulates that waste needs to be recovered, in principle, using the most suitable recovery measure while taking into consideration the ranking of the measure in accordance with the waste hierarchy. If this is not technically possible nor economically reasonable, the recovery mea- sure must be verifiably assessed and the evidence — provided to an independent supervisory body. Food Waste Organization & Responsibility The companies of Schwarz Group have a joint aim to reduce food waste by 50 percent by 2030. To achieve this goal, the retail divisions consider the topic of food waste to be a cross-departmen- tal goal. Sales and Supply Chain Management are primarily tasked with the development and imple- mentation of operational guidelines as well as proj- ects and measures. Purchasing in the respective retail divisions provides support on topics affect- ing the product assortment or cooperation with suppliers of the respective retail divisions. Schwarz Produktion and the Kaufland meat pro- cessing plants also contribute toward reducing food waste as a sub-target of the division-specific sustainability strategy. For example, the develop- ment and implementation of measures in the production facilities are a priority. The Public Re- lations and Sustainability department takes on the role of monitoring progress toward achieving targets. GreenCycle also provides support with topics such as avoidance, reuse and recycling. The Schwarz Restaurantbetriebe also take mea- sures to prevent food waste. The companies of Schwarz Group are in close consultation with each other on this topic in order to jointly devel- op overarching strategic measures and goals. We are currently working to improve the collection of key performance indicators to achieve more accurate measurement and presentation of progress in the area of food waste. Stakeholder Involvement In June 2023, Lidl and Kaufland in Germany signed a “Pakt gegen Lebensmittelverschwend- ung” (Pact against Food Waste) together with the Federal Ministry of Food and Agriculture (BMEL), the Federal Association of German Food Retailers (BVLH), and other industry representatives in Ber- lin. This pact includes a series of verifiable agree- ments, such as the commitment to increase dona- tions of goods which are still fit for consumption to charitable organizations. Furthermore, the partici- pating industry representatives will be implement- ing additional measures within their markets as well as at the interfaces to suppliers and custom- ers. The Thünen Institute will evaluate the success of the measures. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 95 Shaping Focus Areas Ecosystems Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 97 Principles, Policies and Obligations By adopting science-based climate targets, we provide a solid foundation for our commitment. The companies of Schwarz Group joined the Sci- ence Based Targets initiative (SBTi) in 2020 and have used the SBTi methodology to define and validate their climate target: This is how we align our targets to those of the Paris Agreement on climate change. A central tool for illustrating and monitoring consumption data and emissions is the carbon footprint. Since the 2019 fiscal year, all companies and national companies of Schwarz Group have been creating a comprehensive annu- al carbon footprint report pursuant to the Green- house Gas Protocol (GHG Protocol) and aggre- gate this as a carbon footprint report for Schwarz Group. Due to the inorganic growth of the compa- nies of Schwarz Group and adjustments to the methodology, the base year1 and the previous year were recalculated in 2023. Owing to this recalcu- lation, our new and updated climate targets are being (re)validated by the SBTi. A comprehensive illustration of the carbon footprint can be found on p. 106 et seq. Greenhouse Gas Emissions of the Companies of Schwarz Group In tons of CO2equivalent2-4 [GRI 305] Base year 2019 2021 2022 2023 Trend 2019/23 Gross volume GHG emissions 148,277,241 164,884,945 168,844,894 173,517,646 Direct & indirect GHG emissions (Scope 1 and 2) Direct (Scope 1) GHG emissions Indirect GHG emissions (Scope 2) – market-based approach 4,492,963 2,350,535 2,142,428 3,910,200 2,459,396 1,450,804 2,615,563 2,400,459 215,104 2,557,794 2,350,877 206,917 +17.0% -43.1% +0.0% -90.3% Indirect GHG emissions (Scope 3) 143,784,278 160,974,746 166,229,331 170,959,851 +18.9%5 and taking proactive steps to counteract them. By implementing measures to protect biodiversity and prevent deforestation, they can make a posi- tive impact on securing livelihoods as well as on securing their base for business. You can find further information about these impacts and the corresponding measures in the Biodiversity chapter. — Impacts [GRI 201-2 and 304-2] The advancing climate change has far-reaching impacts on the living and working conditions of people around the world. Even the companies of Schwarz Group themselves are exposed to signifi- cant risks: in agriculture, for example, where ex- treme weather events can lead to crop failures and a decreased availability of goods, lower plan- ning security as well as increasing prices for goods and raw materials. As a globally active cor- porate group, we want to actively contribute to the fight against climate change to safeguard our long-term business success. However, the busi- ness activities of the companies of Schwarz Group may also have an adverse impact on biodiversity. Biodiversity is a requirement for functioning and stable ecosystems – and also makes them more resilient. The companies of Schwarz Group are working hard on measuring these adverse impacts 1 | Base year was not included in the external review. 2 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availabi- lity as well as the re-calculation of the FY 2019 base year and the previous years (FY 2021– 2022). The latter took into account the inorganic growth of the companies of Schwarz Group as well as methodology adaptations. 3 | Unlike the other KPIs shown in the report, in the carbon footprint, the emissions of the acquired companies/business units are taken into account in the previous years. 4 | In order to ensure year on year comparability, emission factors are partly used for the calcu- lation which are not the latest available. 5 | The increase compared with the previous years is due to a growth in sales and method- ological adjustments. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 99 Division-Specific Targets — To build upon these overarching targets, the divisions have also set individual climate targets for themselves. Lidl and Kaufland are aiming to reduce their operational greenhouse gas emis- sions (scope 1 and 2) by 80 percent by 2030 (compared with 2019). Schwarz Produktion has set itself the target of saving at least 33 million kilowatt-hours of energy by taking appropriate measures in the period from 2018 to 2025. This strategic target had already been met by the end of fiscal year 2022. Over and above, in the 2023 fiscal year alone, Schwarz Produktion was able to further increase efficiency by more than 17 million (2022: 5 million) kilowatt- hours through energy efficiency measures. In total, since the 2018 fiscal year up to and in- cluding the 2023 fiscal year, more than 59 million kilowatt-hours (2022: 41 million) have been saved through energy efficiency measures. The Kaufland meat processing plants have also set themselves the target of continually monitoring and systematically reducing energy consumption in their own plants using energy management software. The Kaufland meat processing plants have defined the KPI “Improvement in energy effi- ciency” and set a target of reducing their electrici- ty and natural gas consumption by 7.8 million kilo- watt-hours by 2023 across all sites. Each year, energy-saving measures that contribute to target attainment are defined for the relevant sites. Hence, compared with 2018, an energy saving of 6.26 million kilowatt-hours was achieved across all sites in 2023, equating to a target attainment of 80 percent. Compared with the 2022 fiscal year, energy reductions of around 3.84 million kilo- watt-hours were achieved in the 2023 fiscal year. Optimizing processes and combining production lines made it possible to achieve efficiency im- provements that impact positively on energy re- quirements. However, the very high hygiene re- quirements associated with increased production and delivery volumes lead to increased energy consumption, since, for example, the water used is heated with gas and the increased volumes result in increased consumption even in refrigeration systems. At the end of the fiscal year, the new target value of a two percent increase in energy efficiency by 2025 (base year 2023) was de- fined, which is equal to a saving of 2 million kilo- watt-hours. — Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 101 Outsourcing7 Self-consumption from self-generation from non-renewable sources Outsourcing7 Self-consumption from self-generation District heating Lidl4 Kaufland PreZero5 Schwarz Produktion6 Schwarz Digits Schwarz Dienstleistungen 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 4,503,199 448,811 6,003,352 2,260,531 6,091,673 2,208,143 142,196 222,520 284,037 6,313 10,002 20,648 1,157,462 1,815,132 6,680 4,163 9,872 6,657 1,157,462 1,812,805 6,680 4,163 0 0 0 83,648 80,757 99,410 3,553 0 2,327 6,319 6,657 124,363 113,668 115,979 52,282 276,592 264,946 0 55,846 134,042 120,260 86,678 75,381 120,260 56,927 9,609 0 29,751 65,771 1,385 3,782 3,265 0 317,331 358,121 1,443 3,669 159,764 297,230 2,768 319,370 294,751 0 245,999 2,479 2,768 73,372 0 0 33,807 0 27,005 38,430 0 0 0 0 0 214 0 0 214 0 0 0 0 136 654 0 11,891 7,785 117 638 241 46,084 202 1,063 46,084 202 1,063 0 0 0 4,049 5,542 4,350 Schwarz Group5,6 5,004,292 8,896,702 8,969,098 150,069 292,676 598,732 3,436,168 106,199 406,848 3,431,362 67,361 261,048 4,806 38,838 145,800 213,445 203,884 257,465 1 | In principle, for reasons of control relevance, we report all energy key performance figures in the unit megawatt-hour (MWh). 2 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability. 3 | Due to values being rounded, there may be slight discrepancies in the totals. 4 | The energy increases for mobile combustions are largely due to the acquisition of Tailwind Shipping Lines and the associated operation of container ships within the group. For FY 2022, the corresponding figures are partially included, but are complete for FY 2023. 5 | The energy increases are mainly due to the acquisition of companies/business units such as SUEZ and Ferrovial. 6 | The energy increases in FY 2023 are mainly due to the acquisition of Maxauer Papierfabrik and the pasta manufacturer Bon Pasta. 7 | Due to the implementation of the renewable energy target of the companies of Schwarz Group, the date for transitioning externally purchased electricity from non-renewable gray energy to renewable energy has been pushed back. 8 | Includes energy consumption from propane gas, liquefied petroleum gas, gas for glass drying and diesel for waste incineration plants. 9 | Conversion of liters into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools and DEFRA 2022/2023 (Gasoline: 0.009585/Diesel: 0.010561/Biodiesel: 0.006711/Heating oil: 0.010561/ Kerosene: 0.01018/HVO: 0.00953) 10 | Conversion of kilograms into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools, CDP Technical Note: Conversion of fuel data to MWh, DEFRA 2021/2022 and TREMOD (CNG/LNG: 0.01481/LPG: 0.014599/Biogas: 0.01555/Bio-LNG: 0.01481/Bio-CNG: 0.01481/Heavy fuel oil: 11812.8655/Marine gas oil: 12579.79485/Hydrogen: 0.03703) 11 | Fuels for own company cars and internal logistics. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 103 Natural gas (non-renewable) Other gases/fuels8 (non-renewable) Heating oil9 (non-renewable) Wood pellets (renewable) Emergency power systems and sprinkler systems from renewable sources Lidl4 Kaufland PreZero5 Schwarz Produktion6 Schwarz Digits Schwarz Dienstleistungen 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 607,791 542,023 524,740 0 1,427 3,111 8,136 10,849 11,150 0 0 0 0 21,294 23,500 0 951 1,144 638,800 585,257 582,630 679 770 763 148,671 41,268 40,987 0 0 0 0 7,355 4,161 0 488 501 6,412 36,524 35,199 15,504 24,936 50,446 0 20,210 27,889 1,551 1,616 1,038 0 33 31 0 0 0 156,224 165,848 255,450 6,228 5,869 6,379 0 5,803 13,252 0 0 0 0 0 30 0 0 0 0 0 2,186 0 0 0 0 0 0 0 0 0 0 0 274 0 0 0 2,465 1,524 549 0 0 0 0 0 0 0 0 0 0 0 99 0 0 0 Schwarz Group5,6 1,411,691 1,331,176 1,400,755 22,411 33,002 60,699 156,807 78,129 93,278 1,551 1,616 1,038 0 28,682 28,095 0 1,438 1,645 1 | In principle, for reasons of control relevance, we report all energy key performance figures in the unit megawatt-hour (MWh). 2 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability. 3 | Due to values being rounded, there may be slight discrepancies in the totals. 4 | The energy increases for mobile combustions are largely due to the acquisition of Tailwind Shipping Lines and the associated operation of container ships within the group. For FY 2022, the corresponding figures are partially included, but are complete for FY 2023. 5 | The energy increases are mainly due to the acquisition of companies/business units such as SUEZ and Ferrovial. 6 | The energy increases in FY 2023 are mainly due to the acquisition of Maxauer Papierfabrik and the pasta manufacturer Bon Pasta. 7 | Due to the implementation of the renewable energy target of the companies of Schwarz Group, the date for transitioning externally purchased electricity from non-renewable gray energy to renewable energy has been pushed back. 8 | Includes energy consumption from propane gas, liquefied petroleum gas, gas for glass drying and diesel for waste incineration plants. 9 | Conversion of liters into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools and DEFRA 2022/2023 (Gasoline: 0.009585/Diesel: 0.010561/Biodiesel: 0.006711/Heating oil: 0.010561/ Kerosene: 0.01018/HVO: 0.00953) 10 | Conversion of kilograms into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools, CDP Technical Note: Conversion of fuel data to MWh, DEFRA 2021/2022 and TREMOD (CNG/LNG: 0.01481/LPG: 0.014599/Biogas: 0.01555/Bio-LNG: 0.01481/Bio-CNG: 0.01481/Heavy fuel oil: 11812.8655/Marine gas oil: 12579.79485/Hydrogen: 0.03703) 11 | Fuels for own company cars and internal logistics. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 105 from renewable sources from non-renewable sources Lidl4 Kaufland PreZero5 Schwarz Produktion6 Schwarz Digits Schwarz Dienstleistungen 2021 2022 2023 2021 2022 2023 0 0 0 557,870 1,059,287 2,028,838 0 0 0 122,708 127,393 126,074 39,002 76,139 66,125 224,684 987,184 1,069,580 0 0 0 14,639 16,431 18,356 0 0 0 276 17,969 21,897 0 0 0 28,016 19,707 22,852 Schwarz Group5,6 39,002 76,139 66,125 948,194 2,227,971 3,287,597 1 | In principle, for reasons of control relevance, we report all energy key performance figures in the unit megawatt-hour (MWh). 2 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability. 3 | Due to values being rounded, there may be slight discrepancies in the totals. 4 | The energy increases for mobile combustions are largely due to the acquisition of Tailwind Shipping Lines and the associated operation of container ships within the group. For FY 2022, the corresponding figures are partially included, but are complete for FY 2023. 5 | The energy increases are mainly due to the acquisition of companies/business units such as SUEZ and Ferrovial. 6 | The energy increases in FY 2023 are mainly due to the acquisition of Maxauer Papierfabrik and the pasta manufacturer Bon Pasta. 7 | Due to the implementation of the renewable energy target of the companies of Schwarz Group, the date for transitioning externally purchased electricity from non-renewable gray energy to renewable energy has been pushed back. 8 | Includes energy consumption from propane gas, liquefied petroleum gas, gas for glass drying and diesel for waste incineration plants. 9 | Conversion of liters into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools and DEFRA 2022/2023 (Gasoline: 0.009585/Diesel: 0.010561/Biodiesel: 0.006711/Heating oil: 0.010561/ Kerosene: 0.01018/HVO: 0.00953) 10 | Conversion of kilograms into megawatt-hours with combined factor from IPCC 2006, GHG Protocol Cross Sector Tools, CDP Technical Note: Conversion of fuel data to MWh, DEFRA 2021/2022 and TREMOD (CNG/LNG: 0.01481/LPG: 0.014599/Biogas: 0.01555/Bio-LNG: 0.01481/Bio-CNG: 0.01481/Heavy fuel oil: 11812.8655/Marine gas oil: 12579.79485/Hydrogen: 0.03703) 11 | Fuels for own company cars and internal logistics. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 107 Scope 1 Mobile combustion Stationary combustion Indirect GHG emissions (Scope 2) including electricity acc. to market-based approach 11 Scope 2 District heating Electricity acc. to market-based approach 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 2021 2022 2023 530,283 530,396 +0.0% 119,795 112,693 106,166 -5.8% 32,386 32,056 -1.0% 150,128 123,119 117,740 -4.4% 500,055 603,172 16,595 18,609 +12.1% 15,797 15,542 17,227 +10.8% 484,259 1,053 1,382 34,100 28,410 -16.7% 31,281 28,065 28,410 +1.2% 571,892 6,036 0 -100% Trend 2022/23 +31.2% Lidl7 Kaufland8 PreZero5 Schwarz Produktion10 Schwarz Digits Schwarz Dienstleistungen 523,817 31,561 274,754 251,876 270,727 +7.5% 545,738 540,616 541,754 +0.2% 64,515 25,299 4,598 -81.8% 819 930 803 -13.7% 63,696 24,370 3,795 -84.4% 5,055 5,403 4,673 -13.5% 136,800 156,864 146,805 -6.4% 272,526 137,661 153,699 +11.7% 5,829 6,480 6,592 +1.7% 266,697 131,180 147,107 +12.1% 68 4,540 5,539 7,101 4,971 5,779 +22.0% +16.3% 0 0 468 -- 0 33 217 >100% 0 33 161 >100% 0 0 56 -- 449 278 125 -54.8% 10,535 1,415 1,384 -2.2% 995 1,362 1,069 -21.5% 9,539 53 314 >100% 1 | Unlike the other KPIs shown in the report, in the carbon footprint, the emissions of the acquired companies/business units are taken into account in the previous years. 2 | Analyzed sources for the emission factors: International organizations (e.g., IEA, IPCC), LCA databases (e.g., Ecoinvent, Optimeal), national institu- tions (e.g., DBEIS/DEFRA), and industrial associations and organizations (e.g., Plastics Europe, FEFCO). In order to ensure year on year compa- rability, the emission factors used for the calculation are not always the latest available. 3 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability as well as the re-calculation of the base year FY 2019 and the previous years (FY 2021–2022). The latter took into account the inorganic growth of the companies of Schwarz Group as well as methodology adaptations. 4 | Due to values being rounded, there may be slight discrepancies in the totals. 5 | Due to immateriality, the emissions of GHG categories 3.8, 3.13, 3.14 and 3.15 are not accounted. 6 | In order to avoid double counting of emissions in the joint carbon footprint of the companies of Schwarz Group, the product emissions for products from Schwarz Produktion that appear both in the Schwarz Produktion carbon footprint and in the retail divisions’ carbon footprints are only considered once for aggregation into the group carbon footprint. This also means that the individual totals of the retail divisions do not correspond to the values of Schwarz Group in the corresponding categories. 7 | Consideration of acquired company: Tailwind Shipping Lines (container ships) 8 | Consideration of acquired business units: Real and Tesco stores 9 | Consideration of acquired companies/business units: Including SUEZ, Ferrovial 10 | The increases in FY 2023 are mainly due to the acquisition of Maxauer Papierfabrik. 11 | Scope 2 emissions according to the market-based approach were used for the total calculation of (operational) GHG emissions. 12 | The figure was not included in the external review. Schwarz Group6 842,356 829,459 849,171 +2.4% 952,911 933,569 913,059 -2.2% 1,450,804 215,104 206,917 -3.8% 54,721 52,412 54,261 +3.5% 1,396,083 162,692 152,656 -6.2% Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 109 Cat. 3.2 Capital goods Cat. 3.3 Fuel- and energy-related emissions Scope 3 Cat. 3.4 Transportation (upstream) Cat. 3.5 Waste generated in operations Cat. 3.6 Business travel Lidl7 Kaufland8 PreZero5 Schwarz Produktion10 Schwarz Digits Schwarz Dienstleistungen 2021 2022 2023 Trend 2022/23 0 0 0 -- 0 0 0 -- 2021 2022 2023 642,298 649,357 301,673 273,007 659,573 263,059 Trend 2022/23 +1.6% -3.6% 2021 2022 2023 6,991,819 2,018,164 6,927,421 1,846,188 6,862,290 1,841,781 Trend 2022/23 2021 2022 2023 Trend 2022/23 2021 2022 2023 Trend 2022/23 -0.9% 281,759 321,949 272,008 -15.5% 62,957 95,301 89,350 -6.2% -0.2% 86,389 74,680 64,348 -13.8% 22,990 22,324 24,347 +9.1% 140,778 146,491 148,750 +1.5% 78,515 85,388 83,323 -2.4% 57,124 59,443 79,988 +34.6% 0 0 0 -- 13,906 14,470 12,270 -15.2% 0 0 0 -- 79,632 82,117 83,485 +1.7% 257,320 244,955 349,380 +42.6% 11,497 10,825 10,845 +0.2% 1,921 2,819 4,195 +48.8% 0 0 0 -- 10 3,445 4,939 0 0 0 -- 6,083 2,273 2,041 +43.4% -10.2% 0 271 122 -55.1% 0 0 0 -- 7,621 7,550 10,494 +39.0% 0 0 0 -- 0 0 0 -- 3,398 6,533 7,407 +13.4% Schwarz Group6 140,778 146,491 148,750 +1.5% 1,108,211 1,095,588 1,096,421 +0.1% 9,324,427 9,078,278 9,133,561 +0.6% 379,646 407,454 347,201 -14.8% 112,793 148,998 148,062 -0.6% 1 | Unlike the other KPIs shown in the report, in the carbon footprint, the emissions of the acquired companies/business units are taken into account in the previous years. 2 | Analyzed sources for the emission factors: International organizations (e.g., IEA, IPCC), LCA databases (e.g., Ecoinvent, Optimeal), national institu- tions (e.g., DBEIS/DEFRA), and industrial associations and organizations (e.g., Plastics Europe, FEFCO). In order to ensure year on year compa- rability, the emission factors used for the calculation are not always the latest available. 3 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability as well as the re-calculation of the base year FY 2019 and the previous years (FY 2021–2022). The latter took into account the inorganic growth of the companies of Schwarz Group as well as methodology adaptations. 4 | Due to values being rounded, there may be slight discrepancies in the totals. 5 | Due to immateriality, the emissions of GHG categories 3.8, 3.13, 3.14 and 3.15 are not accounted. 6 | In order to avoid double counting of emissions in the joint carbon footprint of the companies of Schwarz Group, the product emissions for products from Schwarz Produktion that appear both in the Schwarz Produktion carbon footprint and in the retail divisions’ carbon footprints are only considered once for aggregation into the group carbon footprint. This also means that the individual totals of the retail divisions do not correspond to the values of Schwarz Group in the corresponding categories. 7 | Consideration of acquired company: Tailwind Shipping Lines (container ships) 8 | Consideration of acquired business units: Real and Tesco stores 9 | Consideration of acquired companies/business units: Including SUEZ, Ferrovial 10 | The increases in FY 2023 are mainly due to the acquisition of Maxauer Papierfabrik. 11 | Scope 2 emissions according to the market-based approach were used for the total calculation of (operational) GHG emissions. 12 | The figure was not included in the external review. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 111 Climate Protection and Adaptation Management Approaches — Since August 2020, the business units of all companies of Schwarz Group that are relevant for our joint climate strategy have been involved in this process. Among them are the respective business departments including Corporate Re- sponsibility (CR), Purchasing, Procurement, Sales, Logistics, Real Estate as well as Controlling. Those involved have defined clear tasks and re- sponsibilities for themselves. The overall project manager for the climate strategy is commissioned by the companies of Schwarz Group and reports to the Head of Ecosystems Focus Area, who in turn reports to the Head of CR of Schwarz Corporate Communications. In the four priority topics of Energy, Climate-Friendly Construction, Mobility, and Climate-Friendly assortment, work is being done on the objectives of the climate strategy and their successful implementation. The project groups are made up of experts from all companies of Schwarz Group. Depending on the subject area, the groups are led by a de- signated project manager. Energy Organization and Responsibility Holistic energy management pursuant to the inter- national ISO 50001 norm enables the companies of Schwarz Group to improve their energy efficien- cy and cut the associated carbon emissions. The companies of Schwarz Group manage their measures to increase energy efficiency using energy management systems. At Kaufland, all countries are certified pursuant to the ISO 50001 energy management system. In 2022, Lidl achieved its goal of having all Euro- pean Lidl organizations certified pursuant to ISO 50001. As such, the matrix certification awarded to Lidl during the reporting period unites all opera- tionally active Lidl countries with around 12,000 stores and 189 logistics centers. Having local en- ergy teams at all certified locations is a prerequi- site of the ISO 50001 standard. Lidl and Kaufland regularly carry out internal and external audits to evaluate the energy management in the national companies. Suggestions from employees from the internal idea management process are also used to identify further suitable measures to reduce energy consumption. At the reporting cut-off date, administrative loca- tions in the greater Heilbronn area as well as the production locations of the Kaufland meat pro- cessing plants and Schwarz Produktion had been certified pursuant to ISO 50001 with the exception of the Maxauer Papierfabrik and Bon Pasta. These are certified pursuant to EMAS. Schwarz Produktion draws on the EnEffCo energy management software for cross-plant recording and processing of the over 5,000 measuring and data points. Furthermore, the Energy Management department draws up management reviews and a central monitoring process for key performance indicators of individual plants and energy con- sumption on an annual basis. The Schwarz Digits data centers in Germany, operated by Schwarz IT KG, first introduced an energy man- agement system in 2022 and are certified pursu- ant to ISO 50001. The data center in Austria has a DGNB Certificate in Gold for sustainable industrial buildings. The majority of PreZero sites have also imple- mented a certified environmental and quality man- agement system – for instance, pursuant to ISO 14001 and ISO 9001. Some of the PreZero Germa- ny, PreZero Polymers Austria and PreZero Spain sites also run an energy management system pur- suant to ISO 50001. As a general rule, newly ac- quired locations must be included in the certifica- tion process within 24 months. Three companies of Schwarz Produktion and all of the Kaufland meat processing plant companies are also certi- fied pursuant to ISO 14001. Stakeholder Involvement By means of their group-wide climate strategy, the companies of Schwarz Group support the Paris Agreement on climate change. They therefore officially joined the Science Based Targets initia- tive (SBTi) back in 2020: The goal of this initiative is to promote science-based climate targets in companies. We also involve our employees in the topic of cli- mate protection and adaptation, and empower them to act in a sustainable manner. For exam- ple, we raise their awareness of energy saving potential at home and in the office. With the “#GemeinsamWasAusmachen” initiative, the com- panies of Schwarz Group provide specific ener- gy-saving tips via the intranet. Moreover, Lidl is currently implementing the major sustainability initiative, YOU, which aims to educate all employ- ees on sustainable action and encourage them to incorporate sustainability into their day-to-day lives. You can find more information about this initiative in the People chapter. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 113 Renewable Energies The self-generation of renewable energies plays a key role in our climate strategy – particularly from photovoltaic systems (PV). In the 2023 fiscal year, the companies of Schwarz Group were able to generate around 338,000 (2022: 265,000) mega- watt-hours in this way – an increase of around 27.5 (2022: 36.9) percent year on year. The power we generated could supply over 97,000 (2022: 76,000) households1. The area used for the PV system is over 4 (2022: 2.5) million square me- ters.2 This equates to the surface area of approxi- mately 568 soccer pitches – and represents an increase of about 1,5 million (2022: 885,760) square meters compared to the previous year. In addition to photovoltaic systems, PreZero also relies on the generation of renewable energy through recovery plants, such as bioenergy plants. The existing buildings often do not have suffi- cient load reserves for a standard PV solution. Furthermore, to retrofit existing real estate with PV at as many locations as possible, thin-film PV solar panels are currently being tested at the Kaufland store in Zeitz. Self-generation of Renewable Energies from PV Systems in MWh [GRI 302-1] Self-generation of Renewable Energies from Photovoltaic Systems4 [GRI 302-1] 2021 Unit 2022 2023 3,356 4,058,095 Trend 2022/23 +35.2% +62.7% +62.7% Trend 2022/23: +27.5% Area used for photovoltaic systems2 m² 1,608,018 2,493,778 Buildings with photovoltaic systems Number 1,886 2,483 corresponds to … soccer pitches3 Number 225 349 568 2021 193,724 2022 265,186 2023 338,029 Photovoltaic systems output kWp 271,834 347,928 489,134 +40.6% Buildings with solar power systems for heat generation Number 120 125 132 +5.6% Electricity: Self-generation of renewable energies from photovoltaic systems MWh 193,724 265,186 338,029 +27.5% Of which electricity: Renewable energy fed back into the grid MWh 43,655 28,375 30,143 +6.2% Lidl and Kaufland in Germany have concluded a long-term power purchase agreement (PPA) with RWE Supply & Trading. They will therefore pur- chase part of their electricity directly from an off- shore wind farm in the North Sea in future. The PPA with RWE covers the procurement of around 250,000 megawatt hours of renewable energy annually. The agreement is set to run for ten years from 2028 and thus forms an important compo- nent of the jointly developed climate strategy of the companies of Schwarz Group. Lidl has also concluded PPAs in Belgium and the Netherlands, beginning in 2023 and 2024. — Use of Self-generated Electricity from PV Systems In megawatt-hours4 Fed into grid Consumed ourselves 2021 43,655 2022 28,375 2021 150,069 2022 236,811 2023 30,143 2023 307,886 Area Used for PV Systems In square meters4 Areas used Number of building with PV systems 2021 1,608,018 2021 1,886 2022 2,493,778 2022 2,483 2023 4,058,095 2023 3,356 1 | Calculated with an assumed average consumption of 3,470 kilowatt-hours per household. 2 | Due to the change in the methodology used for the collection of key performance indicators, the values for FY 2022 and FY 2023 are not directly comparable. 3 | When converting the area into the comparison figure of equivalent soccer pitches, an average soccer pitch area of 7,150 m2 was used for the calculation. 4 | Differences from the FY 2022 Progress Report are the result of retrospective corrections due to additional data availability. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 115 Mobility Stakeholder Involvement As part of the expansion of the charging infra- structure at their locations, the companies of Schwarz Group have relied of powerful part- ners and initiated appropriate cooperations. For example, Kaufland opened a charging park with eight charging stations at its logistics site in Möckmühl (Baden-Wuerttemberg) in 2023. Each station has its own bay for electric semi- trailer tractors. To this end, the company cooper- ated with Einride, a leading provider of intelligent solutions for digital, electric and autonomous goods transport, to introduce heavy e-trucks in supplying its stores. Measures & Projects Charging Infrastructure and Mobility Solutions The companies of Schwarz Group have made considerable progress with the expansion of their charging infrastructure. Group-wide, as of the end of the 2023 fiscal year, there were over 15,300 (2022: 11,600) electric charging stations at around 4,370 (2022: 3,570) locations. This expansion is continuing. The companies of Schwarz Group are also expanding the charging infrastructure at their sites for their employees, enabling them to charge their electric vehicle from home or while on the go. The range of company cars also includes electric cars. As a result of this, employees also have the option to choose a more environmentally friendly option when selecting a company car. We are also continuously developing our portfolio of climate-friendly mobility solutions as alterna- tives to a company car (for example, the Deutsch- landticket as a Jobticket, the ride-sharing app twogo.de, discounted offers for bicycles, etc.). Through these measures, we want to enable every single person to make a valuable contribution to curbing climate change by not using fossil fuels. Distribution Logistics The companies of Schwarz Group want to make their logistics processes more sustainable, effi- cient and lower in emissions. The warehouse sites are already operated as sustainably as possible thanks to the use of energy-efficient technologies and renewable energies. The companies of Schwarz Group have jointly set out the material aspects of sustainable logistics processes in a cross-divisional road map, which serves as the basis for a wide range of measures in the national companies. The basis for all measures are the comprehensive data that are part of the carbon footprint. At Lidl and Kaufland in the 2023 fiscal year, transportation was the cause of around 8.73 (2022: 8.81) million tons of carbon. A focus of the companies of Schwarz Group is the deployment of low-emission, heavy-goods transport. The companies of Schwarz Group are also pro- moting steps toward reduced carbon emissions in logistics with their transport service providers too. The aim is to enable them to measure and reduce their own carbon emissions. Especially in its coop- eration with freight forwarders, Kaufland recogniz- es a great deal of potential to reduce greenhouse gas emissions. In order to assess the techni- cal status of the vehicle fleet in terms of energy efficiency and carbon emissions, they are com- missioning FUMO® Solutions GmbH to audit their pool of over 100 freight forwarders in the Kaufland countries. If they pass the auditing process, the freight forwarders will be awarded the title “Green Carrier”. The findings from this audit will be used as specific starting points for the introduction of measures. For instance, derivation of the individu- al energy consumption, thus leading to the reduc- tion of carbon emissions. These audits will also be carried out annually for all freight forwarders in all Kaufland countries. In the logistics center in Möckmühl, Kaufland in Germany has been using four electric trucks to supply its stores since Sep- tember 2023. Following the December 2023 opening of its own electric charging park for elec- tric semi-trailer trucks, including an electrically operated cooling trailer with a performance of 1,000 kilovolt-amperes, eight electric trucks have been supplying ten Kaufland stores in the Lud- wigsburg area (Baden-Wuerttemberg), thus re- placing their diesel equivalents. The electric charging park project is one of the biggest of its kind in Germany. Lidl has entered into partnerships for climate- friendly transport of merchandise using alternative drive technologies in some countries. In total, Lidl already has over 30 battery electric trucks in ten countries in use for store deliveries, including Switzerland, Italy, France, Czechia and the Nether- lands. The latter already had five electric trucks in its vehicle fleet during the reporting period and plans to increase the share of electric trucks in the coming fiscal year. Lidl Netherlands will carry out all store deliveries using electric trucks before 2030. The trailers of the trucks are also battery-powered, which significantly reduces operational emissions. Additional countries, such as Lidl Spain, were also able to gain their first experiences with battery electric trucks and will integrate more of these into their vehicle fleet in future. At PreZero, tests and pilot projects on alternative drive technologies have already been carried out in seven national companies. As a result, PreZero in Germany and Spain have received public funding to convert their diesel trucks to electric trucks or fuel cell trucks. Since the end of 2022, electric heavy-duty trucks have been in use at PreZero in Sweden; another four are being or- dered. PreZero Netherlands has purchased ten new electric vehicles for its Duiven site. As part of the EU-funded HECTOR project, PreZero is gaining first valuable experience with hydrogen cell technology. Kaufland’s commitment to innovative and sustain- able logistics is also being recognized in the in- dustry: At the reta awards at the start of 2024, which recognizes the outstanding technology proj- ects of retail companies every year, Kaufland re- ceived an award for the successful introduction of an automatic picking system in its distribution cen- ters. Kaufland won the award in the “Best AI and Robotics Application” category. Back in spring 2023, Kaufland Logistics in Germany received the “3rd Star” environmental award of the “Lean & Green” initiative for the significant reduction of its carbon emissions. It was the first food retailer and only the second company in Germany to re- ceive this award. The “Lean and Green” initiative pursues the goal of reducing greenhouse gas Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 117 Lidl and Kaufland are also founding members of Food for Biodiversity e. V., a registered association in which representatives from companies, associa- tions and standard setters from the food industry contribute to maintaining biodiversity through vari- ous projects. To date these are pilot projects, in which a jointly developed basic set of biodiversity criteria is implemented and monitored. 1 | Regulation – 2023/1115 – EN – EUR-Lex (europa.eu) 2 | Pursuant to the definition from the Food and Agriculture Organization of the United Nations (FAO) created with these raw materials. Lidl, Kaufland and Schwarz Produktion are working on relevant ways to factor the EUDR into their strategies for deforestation-free supply chains. Stakeholder Involvement Lidl, Kaufland and Schwarz Produktion are work- ing intensively to promote the topic of deforesta- tion-free supply chains in stakeholder forums hosted by the Federal Ministry of Food and Agri- culture and at EU level through the EuroCom- merce association. Lidl, Kaufland and Schwarz Produktion also tested the EUDR information sys- tem of the EU Commission and submitted sugges- tions for improvements. Furthermore, Lidl and Kaufland signed the WWF’s business statement against deforestation and the destruction of the environment, thereby underlin- ing their commitment to these issues. The retail divisions also advocated for the inclusion of “other wooded lands”2 in the context of the EUDR. This step will provide more protection for import- ant ecosystems around the world as well as facilitating easier implementation of the regulation for companies and the relevant authorities. Furthermore, this step will also create a level playing field for everyone. Biodiversity [GRI 304] Organization and Responsibility The respective Purchasing and Real Estate/ Construction departments at Lidl and Kaufland are responsible for the topic of biodiversity and its implementation. Here, the respective Purchasing department is responsible for compliance with and implementation of ecological standards in the sup- ply chain. At Lidl and Kaufland, the department is also responsible for managing raw materials tar- gets and pesticide management together with Quality Assurance. The CR/CSR departments of the companies of Schwarz Group support this process, and act as both catalysts and internal consultants. The respective Real Estate/Construc- tion department of the companies of Schwarz Group is in turn responsible for environmental pro- tection in the construction of stores and logistics centers. Schwarz Immobilien Service GmbH & Co. KG supervises all biodiversity-related topics during the construction of new administration buildings. The focus here is on creating high- quality green spaces. In the context of EU Regulation no. 2023/11151 on deforestation-free products (EUDR), which was enacted by the European Parliament and the Council of the European Union in May 2023, the companies of Schwarz Group took part in expert groups that aimed to jointly develop a binding ap- proach to corporate due diligence. The aim of this process was to ensure deforestation-free supply chains in the companies of Schwarz Group for the relevant raw materials wood, cocoa, coffee, rub- ber, palm oil, soy and beef as well as the products In 2020, Lidl in Germany, Great Britain and the Netherlands as well as Kaufland in Germany signed the Cerrado Manifesto, which was initiated by the WWF and other organizations. As such, they commit themselves to protecting habitats in Brazil. The Cerrado is a savanna region with the greatest diversity of species in the world, con- taining five percent of the global biodiversity. Lidl, Kaufland and the other signatory companies are thereby taking a clear stand against further loss of diversity of species in the region and will not sell any agricultural products cultivated on land that has been converted since 2020. For instance, Kaufland and Lidl in Germany do not offer any beef products from Brazil. This way, they can ensure that they do not contribute to defor- estation in the species-rich ecosystems of the Cerrado and the Amazon basin for the purposes of the conversion of land to pastures. The retail divisions also work together with other stakeholders beyond the topic of deforestation to promote biodiversity-related topics: In 2020, Kaufland working together with the Leibniz Insti- tute of Vegetable and Ornamental Crops (IGZ) e. V. and Gemüsering Stuttgart GmbH, launched a scientific project to promote sustainable agricul- tural measures. By working with almost 20 busi- nesses from the three culture groups “vegetables,” “fruit” and “potatoes” from Germany, Poland and Czechia, the aim is for biodiversity, humus con- tent, and soil fertility to be analyzed and improved by applying scientific findings. The findings of the analysis on the current status of the soil were published in a scientific publication. Based on this, soil improvement measures have been implement- ed since 2022. The project is scheduled to run until 2025. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 119 Use and Protection of Water Resources Strategic Approach Priority Topics Principles, Policies and Obligations Impacts [GRI 303-1] In order to reduce the water footprint of the companies of Schwarz Group, we are focusing on the sustainable use of freshwater resources. This applies to both the companies and the supply chain – from manufacturing resources through the production of our merchandise to our own op- erations. We are also committed to protecting bodies of water and seas. Our activities focus on two jointly defined aspects: Lidl and Kaufland are members of the Alliance for Water Stewardship (AWS), a global alliance made up of companies, NGOs and the public sector. The initiative advocates for the responsible use of water resources along the value chain. The retail divisions support this commitment, and the princi- ples and standards of the AWS. Furthermore, Lidl and Kaufland have also pub- lished their own guidelines for a water policy in relation to the purchasing of merchandise: x The responsible and efficient use of water resources: We aspire to reusing water and re- ducing water consumption wherever and whenever we can. x Protection against contamination and pollution: We are in pursuit of a holistic wastewater management process to prevent potential pollutant input. Position Paper on Water Policy for Purchasing Merchandise (German) Kaufland Water Guideline (German) Fresh water is one of Earth’s most important re- sources. However, due to its uneven global distri- bution and the negative effects of usage, it is a scarce resource. Agriculture and industrial pro- duction would be inconceivable unless there is enough clean water. Given these challenges, the companies of Schwarz Group want to avoid and reduce risks related to the availability of clean fresh water – at all sites and in all countries. Water scarcity represents a risk for the retail divi- sions Lidl and Kaufland, particularly for the up- stream supply chain. This applies particularly to agricultural primary production, which is responsi- ble for around 70 percent of the water con- sumption worldwide. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 121 Use and Protection of Water Resources Management Approaches Stakeholder Involvement As a member company of the Alliance for Water Stewardship (AWS), Lidl and Kaufland take re- sponsibility for water as a resource and take credi- ble and verifiable measures to protect our shared water resources. Kaufland is also taking part in the “Impact Accelerator” of the AWS with six farms in Spain. The AWS Impact Accelerator was devel- oped to support the spread of water stewardship and the establishment of the AWS standard. Projects in additional regions and countries are already planned. Lidl also actively advocates for the further devel- opment of standards, and works together with partners and stakeholders from industry, govern- ments, nonprofit organizations, standard setters, science and local communities to promote a more sustainable use of water as a resource. In addition to its work with the AWS, Lidl is also a member of the Leather Working Group (LWG) and the Part- nership for Sustainable Textiles. The retail division is also involved in the Cotton made in Africa (CMiA) initiative. Use of Water Resources Organization and Responsibility [GRI 303-1] Each division of Schwarz Group has defined re- sponsibilities in consideration of its use of water resources. At Kaufland, the construction depart- ment is responsible for water topics in operational management; at Lidl, the topic of fresh water in the supply chain is the responsibility of the CSR departments. At Schwarz Produktion, responsibility for imple- menting efficiency measures and investigating water consumption is held by central Technology and the respective companies. At the Kaufland meat processing plants, this is the responsibility of the Environmental Management department. Here, the plant managers and the local water protection officers are responsible for compliance with the specifications of the waste water regulations. In both retail divisions and at Schwarz Dienst- leistungen, the Purchasing or Procurement depart- ments are responsible for compliance with the specifications in the supply chain. At Lidl, the CSR departments have overarching responsibility for the topic of fresh water in the supply chain. In future, the companies of Schwarz Group will further consolidate their know-how and activities in order to jointly develop and adapt a common group-wide water strategy. Measures and Projects [GRI 303-2] Lidl and Kaufland utilize certifications for relevant areas of their assortment in order to ensure the responsible use of water. Aspects of water use are also considered here. Further relevant standards in the non-food area include Cotton made in Afri- ca (CmiA), Fairtrade, Organic, the Global Organic Textile Standard and the OEKO-TEX® STeP. Lidl and Kaufland have also been part of the “Greenpeace” Detox campaign since 2014. Currently, Schwarz Produktion exclusively uses its own mineral water springs for the production of its mineral waters. Product-related mineral water is also taken from its own springs for the production of soft drinks. To this end, several deep wells are operated in each of the six beverage plants. None of the springs used are located in nature reserves. We are also committed to ensuring that our mineral water sources in Germany fulfill all of the specifications set out in the German mineral and drinking water regulation (MTVO). The Rhein- blick water source at the Wörth am Rhein location and the Schlossblick water source at the Leißling location also meet the strict SGS requirements for premium mineral water. Compliance with all legal provisions and the approved extraction volume defined by the authorities for each spring ensures that there is no excessive extraction of the renew- able groundwater. An imbalance between ground- water removal and regeneration is also ruled out. Schwarz Produktion informs the competent environment agencies about all relevant data in an annual report. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 123 x By participating in Project STOP, the companies of Schwarz Group also supported the leading initiative for preventing plastic waste in oceans from 2019 to 2023. The aim of this project was to establish an effective waste management system in Indonesia. In this context, the imple- mentation of recyclable materials management systems was supported with funding and exper- tise. As a result of the project, 320,000 people were connected to new waste disposal systems, 333 full-time jobs were created and more than 47,000 tons of waste were collected (of which around 5,800 tons was plastic waste). You can find more information about cross- company and cross-country campaigns aimed at removing waste from the environment in the People chapter. Commitment to Clean Rivers and Seas As part of their REset Plastic strategy (p. 83 et seq.), the companies of Schwarz Group support the removal of plastic waste from rivers, lakes and seas. The companies of Schwarz Group orga- nize their overarching commitment to this task together with their global partners. In recent years, many different projects have been carried out and two of these were completed during the reporting period: x During the reporting period, working together with the environmental organization One Earth – One Ocean e. V. and the local waste and circular economy specialists “PT Waste- forchange Alam Indonesia”, the companies of Schwarz Group completed a river cleaning proj- ect in the Indonesian city of Bekasi that has been underway since 2019. In addition to re- moving waste from the river, a particular focus of this project was to establish a recycling infra- structure for the river waste and to run the proj- ect in the most climate-friendly manner possi- ble. Since the station was fully commissioned three years ago, “Sea Hamsters” have been used to remove up to 500 kilograms of waste from the Bekasi river on a daily basis, with around 60 percent being fed back into the local recycling loops and recycled. According to plan, the project was handed over to local stakehold- ers by employees of the companies of Schwarz Group in 2023. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 125 GRI Standards General Disclosures GRI 2: General Disclosures 2021 3. Corporate management 2-9 Governance structure and composition 2-10 Nomination and selection of the highest governance body 2-11 Chair of the highest governance body 2-12 Role of the highest governance body in overseeing the management of impacts 2-13 Delegation of responsibility for managing impacts 2-14 Role of the highest governance body in sustainability reporting 2-15 Conflicts of interest 2-16 Communication of critical concerns 2-17 Collective knowledge of the highest governance body 2-18 Evaluation of the performance of the highest governance body 2-19 Remuneration policies 2-20 Process to determine remuneration 2-21 Annual total compensation ratio Page(s) Omission/Comment 12 12 12 31 31 12, 32 31 15, 31 31 12 45 Restrictions due to a duty of confidentiality: Individual salaries of employees are subject to non-disclosure as confidential information and their forwarding, even for purposes of statistical evaluation, remains limited. Restrictions due to a duty of confidentiality: Individual salaries of employees are subject to non-disclosure as confidential information and their forwarding, even for purposes of statistical evaluation, remains limited. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 127 GRI Standards Material Topics GRI 3: Material topics 2021 GRI 3-1: Process to determine material topics GRI 3-2: List of material topics Climate protection and adaptation GRI 3: Material topics 2021 3-3: Management of material topics GRI 201: Economic performance 2016 Page(s) Omission/Comment 33, 34 34 96, 97 201-2: Financial consequences of climate change for the organization, and other risks 97 and opportunities associated with climate change GRI 302: Energy 2016 302-1: Energy consumption within the organization 100, 113 302-3: Energy intensity 302-4: Reduction of energy consumption 302-5: Reductions in energy requirements of products and services GRI 305: Emissions 2016 305-1 Direct (scope 1) GHG emissions 305-2: Energy indirect (scope 2) GHG emissions 305-3: Other indirect (scope 3) GHG emissions 305-4: GHG emissions intensity 305-5: Reduction of GHG emissions 100 100 106 106 108, 109, 110 106 Not applicable: Due to the planned change to the calculation methodology, this information is not currently being reported. Not applicable: Due to the planned change to the calculation methodology, this information is not currently being reported. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 129 GRI Standards Material Topics Transparent product communication GRI 3: Material topics 2021 3-3: Management of material topics GRI 416: Customer health and safety 2016 416-1: Assessment of the health and safety impacts of different product and service categories 416-2: Incidents of non-compliance concerning the health and safety impacts of products and services Page(s) Omission/Comment 76, 77, 78 73, 75 73, 74 Information not available/incomplete: For reasons of internal control relevance, we report the number of recalled sales items of public product/merchandise recalls for private-label products and not violations of regulations and/or voluntary codes related to the health and safety impacts of products and services. GRI 417: Marketing and labeling 2016 417-1: Requirements for product and services information and labeling 69, 70, 73, 76, 77 Use and protection of water resources GRI 3: Material topics 2021 3-3: Management of material topics GRI 303: Water and effluents 2018 303-1: Interactions with water as a shared resource (management approach) 303-2: Management of water-discharge related impacts (management approach) 303-3: Water withdrawal Social standards, working and living conditions in the supply chain GRI 3: Material topics 2021 3-3: Management of material topics GRI 407: Freedom of association and collective bargaining 2016 119 119, 121 121 120 58, 59, 60, 61, 62 407-1: Operations and suppliers in which the right to freedom of association and 38, 56 collective bargaining may be at risk GRI 414: Supplier social assessment 2016 414-1: New suppliers that were screened using social criteria 414-2: Negative social impacts in the supply chain and actions taken 56, 58, 60, 61, 122 Information not available/incomplete: We report our water consumption without breaking it down by further sources and regions with water risks. We are working on improving our data basis for future reporting. Information not available/incomplete: The data basis for the information is only partly available to companies of Schwarz Group. A consolidated collection and quality assurance for future reporting of the indicator will be checked, particularly for private-label suppliers. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 131 GRI Standards Additional reported topics Protection of biodiversity and adaptation to biodiversity loss GRI 3: Material topics 2021 3-3: Management of material topics GRI 304: Biodiversity 2016 304-2: Significant impacts of activities, products and services on biodiversity Education and empowerment of employees GRI 3: Material topics 2021 3-3: Management of material topics GRI 404: Training and development 2016 Page(s) Omission/Comment 117 97, 118 49, 50 404-2: Programs for upgrading employee skills and transition assistance programs 45, 49, 54 404-3: Percentage of employees receiving regular performance and career development reviews Diversity and equal opportunities GRI 3: Material topics 2021 3-3: Management of material topics GRI 405: Diversity and equal opportunity 2016 49 52 405-1: Diversity of governance bodies and employees 45, 52, 53 405-2: Proportion of basic salary and remuneration of women compared with basic salary and remuneration of men GRI 406: Non-discrimination 2016 406-1: Discrimination incidents and remedies taken 45 53 Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 133 Independent Auditor’s Report To the Schwarz Unternehmenskommunikation GmbH & Co.KG, Neckarsulm, Germany Essentially, the following content and metrics were subjected to the audit: We have performed limited assurance procedures on selected sustainability performance disclosures and metrics in the Sustainability Report (Annex 1) of Schwarz Unternehmenskommunikation GmbH & Co.KG, Neckarsulm, Germany (hereinafter referred to as the “Company” or “Schwarz”), for the period from March 1, 2022, to February 29, 2024 (hereinafter referred to as the “Report”). Selected sustainability performance disclo- sures that have been subject to our assurance engagement are part of the GRI Index and have been identified in the Report with the fol- lowing symbol: “ ”. x Management approaches, in selected material aspects of the report (energy, emissions, waste and materials, occupational health and safety, customer health and safety) including selected metrics and disclosures on these material aspects, x Total weight of diverted hazardous and non- hazardous waste with breakdown according to composition and recovery procedure, x Total weight of hazardous and non-hazardous waste directed to disposal with breakdown according to composition and disposal method, x Product recalls, x Total number of employees by fixed term of the employment contract, by gender and by region, x Number of buildings with PV systems and area of the PV systems, x Percentage of employees per employee x Buildings with a sustainability certificate, category by gender and age group, x Fuel consumption within the organization from non-renewable and renewable sources, x Indirect energy consumption, energy sold, total energy consumption within the organization, x Direct GHG emissions (Scope 1); indirect energy-related GHG emissions (Scope 2), other indirect GHG emissions (Scope 3), x Total weight of accrued waste as well as breakdown by composition, x Development of plastic use g/€ (in grams) as well as the proportion of recycled materials, x Sustainable coffee (private label) as well as sustainable cocoa (private label). Our engagement does not include the verification of references to external sources, expert opinions and forward-looking statements in the Report. Sustainability Report FY 22/23 of the Companies of Schwarz Group

Overview About This Report Preface Living Diversity Strengthening CR Management Shaping Focus Areas GRI Index Independent Auditor’s Report Legal Notice 135 Audit Opinion Restriction on Use/AAB Clause Annexes Based on the audit procedures performed and the audit evidence obtained, no information has come to our attention that causes us to be- lieve that the selected sustainability performance disclosures and metrics marked with the follow- ing symbol “ ” in the Report of Schwarz Unter- nehmenskommunikation GmbH & Co.KG, Neckarsulm, for the period March 1, 2022, to February 29, 2024, are not prepared, in all material respects, in accordance with the Reporting Criteria. Annex 1 Annex 2 This audit opinion is addressed to Schwarz Unternehmenskommunikation GmbH & Co.KG and is intended solely for their use. “Sustainability Report of the Companies of Schwarz Group FY 22/23” for the period from March 1, 2022, to February 29, 2024 General Engagement Terms The engagement, in the performance of which we have rendered the aforementioned services for Schwarz Unternehmenskommunikation GmbH & Co.KG, was based on the General Engagement Terms and Conditions for German Public Auditors and Public Audit Firms dated January 1, 2017 (https://www.kpmg.de/bescheinigungen/lib/aab. pdf). By taking note of and using the information contained in this audit opinion, each recipient confirms that it has taken note of the provisions made therein (including the limitation of liability to EUR 4 million for negligence in Section 9 of the AAB) and acknowledges their validity in its relationship with us. Mannheim, September 11, 2024 KPMG AG Wirtschaftsprüfungsgesellschaft [Original German Version signed by:] Beyer Wirtschaftsprüfer [German Public Auditor] Wiegand Wirtschaftsprüfer [German Public Auditor] Sustainability Report FY 22/23 of the Companies of Schwarz Group