X5 Retail Group is introducing its Supplier Policy updated in line with sustainable development principles. The Company applies the same principles to its internal processes and business units.

Late last year, X5 Retail Group adopted long-term sustainable development goals and a sustainability strategy. This way the Company aims to contribute to achieving the global goals of ending hunger, ensuring decent working conditions, supporting a healthy lifestyle, and promoting responsible consumption and use of resources. Sustainable development goals are integrated into X5's 2023 business strategy.

The updated Supplier Policy is designed, inter alia, to achieve one of the four goals set forth in X5's sustainable development strategy – "Promoting responsible consumption and use of resources", which is the basis for the Company's responsible procurement system. Among other things, the Policy includes Sustainability Recommendations for Suppliers recently developed by X5. Both documents were reviewed by Russia's Federal Antimonopoly Service.

The Recommendations are not mandatory, but the Company will consider it as a strong advantage if products or practices of potential suppliers meet them when a decision on partnership is made. X5 plans to develop its own internal sustainability framework and promote sustainable practices among its suppliers. As one example, the Company developed an information material for its partners that includes a general overview of sustainability, an introduction to X5's strategic goals in this area, its programmes and recommendations, and examples of potential partnerships aligned with the Company's strategy. ​