Suppliers code of conduct

8 6.5 Responsible sourcing The Esselunga Group encourages Suppliers to take commercial measures with regard to their suppliers, such as respecting payment terms and guaranteeing fair economic conditions. The Esselunga Group expects the Supplier to assess and manage the impact on communities arising from its activities and to favour, as far as possible, sourcing from local suppliers, fostering inclusive development, providing appropriate eco- nomic conditions, with the aim of building positive and lasting partnerships with the communities in which it operates. 7. COMPLIANCE 7.1 Communication of breaches The Supplier (including his collaborators) and the collaborators of the Esselunga Group are required to report any breaches of this Code. The report must be received through a specific web-based platform called “Co- munica Whistleblowing”, accessible at the web address https://digitalplatform. unionefiduciaria.it/whistleblowing/default_new4.asp?LANG=ENG, by using the code (“Token”) shown on the institutional website www.esselunga.it . The Esselunga Group undertakes to analyse the report received, ensuring the confidentiality of the whistleblower’s identity, without prejudice to legal obliga- tions. With the aim of protecting its suppliers, the Esselunga Group is committed to promoting direct and fair dialogue, creating a real sharing and listening forum to assess the reports received. 7.2 Audits The Esselunga Group may verify compliance by its suppliers with the principles set out in the Code. Specifically, in the case of suppliers of private-label products, audits may take place by requesting documentation and/or carrying out on-site audits and may be conducted directly by the Esselunga Group or by a third party appointed by it. 7.3 Resolution If non-compliance emerges, including through the audit activities described in the previous paragraph, the Supplier may be asked to give notice of the correcti- ve action planned within an agreed timeframe and the implementation of the above actions, which will be monitored by the Esselunga Group. The Esselunga Group reserves the right to terminate any relationship and/or ter- minate any contractual agreement with a Supplier who refuses to implement the corrective measures. Notwithstanding the above, in the event of a serious breach or default by the Supplier of the provisions listed in this Code, the Esselunga Group shall have the right to temporarily suspend the Supplier or, where it considers it appropriate, to terminate any contractual agreement with the defaulting Supplier.