Empire : Fiscal 2025 Sustainable Business Report

About this update from Empire Co Ltd Class A

Empire Company Limited & Sobeys Inc. 2025 Sustainable Business Report Leader Message About This Report About Us Approach & Materiality Governance Cyber Security & Data Protection OurPart TM People Planet Products Contents Leader Message 4 About This Report 9 Forward-Looking Information 10 Non-GAAP Financial Measures & Financial Metrics 11 About Us 12 3.2 Financial Highlights 13 Approach & Materiality 14 Sustainability Approach 14 Engaging Our Stakeholders 15 Materiality Assessment 16 Updated Sustainability Strategy 17 Governance 18 Key Governance Bodies 19 Code of Conduct & Policies 20 Executive Compensation 20 Enterprise Risk Management 20 Climate Risk 20 Cyber Security & Data Protection 21 OurPart R 23 People 24 Diversity, Equity & Inclusion 25 Community Investment 29 Health, Safety & Wellness 33 Employee Development & Experience 36 Planet 40 Climate Action 41 Food Waste 48 Environmental Management 52 Products 56 Human Rights 57 Ethical & Sustainable Sourcing 59 Product Quality & Safety 64 10.6 Customer Experience & Engagement 67 10.5 Supplier Partnerships 70 2025 Sustainable Business Report 2 Leader Message About This Report About Us Approach & Materiality Governance Cyber Security & Data Protection OurPart TM People Planet Products Empire Company Limited and Sobeys Inc. 2025 Sustainable Business Report Prioritizing sustainability is a critical element of our ambition to be the best retailer in Canada. We've taken bold actions, including setting science-based climate targets, collaborating with supplier partners to address social and environmental risks in our supply chain, deepening our engagement with Indigenous Peoples, and continuing to invest in our teams and communities. Our sustainability strategy builds on this momentum so we can continue to deliver ethical and sustainable products that are good for people, good for the planet and good for fostering strong business performance. Download Fiscal 2025 Sustainable Business Report Download Fiscal 2025 ESG Performance Metrics Table Download Fiscal 2025 SASB Index Download 2025 Climate-related Financial Disclosures Report 2025 Sustainable Business Report 3 ‌ Leader Message About This Report About Us Approach & Materiality Governance Cyber Security & Data Protection OurPart TM People Planet Products A Letter From Our Head of Corporate Sustainability Since our early days as a family-owned business in Nova Scotia starting in 1907, we've been proud to serve Canadians and grow alongside the communities we call home. Empire Company Limited remains committed to delivering the highest quality products and exceptional value, while focusing on integrating more sustainable business practices-because Canadians deserve the best. Today, we continue to honour our roots by standing up for our customers, teammates and partners as we all face evolving global challenges. We believe a strong, sustainable food system in Canada is critical to our country's economic resilience and food security. As a proudly Canadian grocery retailer, we are committed to strengthening domestic supply chains, investing in homegrown businesses and ensuring people across the country have access to the best locally sourced products. Sustainability is a core part of our strategy to bring Canadians the very best. Empire continues to focus on eliminating food waste, supporting local food banks and strengthening Canada's food ecosystem. We are making progress on our Climate Action Plan, which includes our target to achieve net-zero by 2040 for Scope 1 and 2 emissions by decarbonizing our business and using energy and other resources sustainably. We are helping nurture healthy bodies and minds across Canada through investments in the more than 900 communities we serve, supporting youth mental health and contributing to other meaningful causes that are important to us, to our customers and to our teammates. Playing a leading role to advance Canada's Grocery Code of Conduct, meanwhile, reflects Empire's commitment to fairer industry practices and better outcomes for consumers. We have always believed that sustainability is good for business and drives our growth strategy. Over the past year, we've made strategic investments to deliver more value to customers across all our banners. For example, we've expanded Own Brands with a focus on large-format, multicultural and value-oriented products to meet evolving customer needs. In addition, we have made our transportation network more efficient by enhancing our transportation management systems, optimizing delivery frequency and expanding our supply chain network. Our business is deeply interconnected with the strength of our communities and our country, now and in the future. Empire's progress as a sustainable business reflects the commitment of our customers, the passion of our teammates, the collaboration of our supplier partners and the ongoing trust of our investors. Thank you for working with us and doing your part to build a stronger, more prosperous Canada. Joshua Goodman Head of Corporate Sustainability, Empire Company Limited signed "Joshua Goodman" Joshua Goodman Head of Corporate Sustainability Empire Company Limited July 2025 Leader Message About This Report About Us Approach & Materiality Governance Cyber Security & Data Protection OurPart TM People Planet Products Sustainability at Sobeys Vision Pillars Priorities Empower all to live sustainably in thriving communities • People Planet Products Climate Action Community Investment Diversity, Equity & Inclusion Ethical & Sustainable Sourcing Food Waste Indigenous Relationships Plastics & Packaging Our sustainability strategy builds on momentum, accelerates action and amplifies positive impacts for People and Planet through sustainable and ethical Products. Empire is a national retailer with deep local roots; strong customer, supplier partner and teammate relationships across Canada; and supply chains that extend around the world. As such, we have the scale and commitment to empower people to live sustainably in thriving communities. Our sustainability priorities are to keep driving progress in: Climate Action: Decarbonizing and transitioning our business and supply chain to thrive in a low-carbon economy through our Climate Action Plan Plastics & Packaging: Enabling our customers to buy, shop and live free of plastic waste Food Waste: Reducing food waste in our operations to feed people, not landfills Ethical & Sustainable Sourcing: Embedding responsible business practices in sourcing decisions, providing confidence that the products we sell are good for people and the planet 2025 Sustainable Business Report 5

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