CLOSE TO PRODUCTION

We prioritise working with local suppliers to minimise waste, reduce our environmental footprint and ensure product freshness.
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Relationship with suppliers

At Jerónimo Martins, we believe that proximity is key to quality. The closer we are to where food is produced, the easier it is to guarantee its freshness and quality. Local sourcing also means shorter transportation routes, which helps reduce greenhouse gas emissions and the environmental footprint associated with our products and operations. The local economy also benefits, as these partnerships promote business at the regional level and create employment opportunities.

That is why our strategy is based on going local, wherever we are. We adapt our product assortment to consumer trends and the specific characteristics of each market. At Group level, more than 90% of the food products we sell come from local suppliers.

We consider our suppliers as long-term partners, working together with the common goal of offering the best products to our consumers. To support this, we have strict guidelines and provide training in environmental and quality standards, thus promoting compliance with our sustainability strategy and building more resilient supply chains.

Fighting deforestation through responsible sourcing

A better sourcing is paramount to ensure more sustainable supply chains. Together with our suppliers, we work to fight deforestation and prevent the destruction of tropical forests linked to the ingredients present in the products we sell. Our efforts focus on commodities associated with a risk of deforestation, such as palm oil, paper/timber, beef and soy. These initiatives have earned us external recognition: for the fourth year in a row, Jerónimo Martins obtained the leadership level (A-) from CDP Forests, for our responsible management of deforestation-related commodities. 

KNOW OUR STRATEGY

Selection of suppliers

To ensure alignment with our Corporate Responsibility principles, we carefully select and monitor suppliers for perishables and Private Brand products, conducting regular audits in three key areas: food safety and quality, environment and social. 

Food safety and quality audits

Food safety and quality are central to our supplier evaluation and monitoring processes. We conduct audits during the selection of new suppliers for perishables and Private Brand products, as well as throughout the development and production stages. These audits assess:  

  • hygiene standards, 
  • traceability,
  • food safety practices,
  • labour-related aspects. 
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Environmental audits

Environmental audits – both during selection and throughout the partnership – evaluate process and systems management, as well as product formulation. Suppliers must meet minimum requirements to be selected, and those already working with us must follow corrective action plans if they fall short. Failure to comply may result in suspension or termination of the partnership.

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Social audits

Social audits are a key part of our due diligence process, especially for suppliers with annual purchases exceeding one million euros. These audits assess labour practices and human rights compliance, helping suppliers understand and address social risks. Conducted by independent entities, the audits follow international best practices and include interviews with employee – especially those from vulnerable groupsto ensure transparency and fairness. 

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HOW WE MANAGE SUPPLIER RELATIONSHIPS

Explore at our Annual Report website a comprehensive breakdown of our sustainability performance, insights and forward-looking strategy, in line with the ESRS framework. 

HIGHLIGHTS

Sourcing from local farmers

In Poland, Biedronka works with family farms through a programme launched in 2021. By 2024, the total number of active local producers had risen to around 230. The value of purchases reached more than 126 million units of products delivered to stores.

In Portugal, Pingo Doce purchased more than 14,000 tonnes of locally grown cherries, apples and kiwis and strengthened its range of domestic products in the vegetable, meat and aquaculture fish categories.
In Colombia, more than 95% of Ara's purchases in the fruit and vegetable category came from domestic production.

Safeguarding the future of food production

Since 2021 we have been assessing more than 230 perishables and Private Brand suppliers of Biedronka, Pingo Doce, Recheio and Ara to evaluate climate-related risks and opportunities.

This assessment identified growing concerns about extreme temperatures and water availability, prompting suppliers to adapt their operations to maintain production levels and product quality. Key strategic responses include:
- Diversifying ingredients origins (e.g. bananas, cocoa and rice) to regions with more favourable climate conditions.
- Investing in more resilient varieties of raw materials, while maintaining their sustainable origin.
- Developing value-added products that are easier to preserve, such as jams or dehydrated goods.

Promoting sustainable agriculture practices among suppliers

Sustainable agriculture reduces soil pollution and protects ecosystem services like pollination. It also boosts production system resilience, economic viability and social development. To support this, we created the Sustainable Agriculture Handbook for our Portuguese fruit, vegetable and flower suppliers. It guides improvements in land use, biodiversity, water and energy efficiency, while helping farms calculate their sustainability index. Over 200 farms have been integrated in this project since 2016, representing 67% of the volume of fruits, vegetables and flowers purchased by our Companies in Portugal.

Supplier payment practices

All our Companies follow established payment terms aligned with industry standards, ensuring the financial sustainability of their supply chains. In addition, we run dedicated programmes to support smaller suppliers. These allow suppliers to receive early payment of invoices at competitive rates, without impacting their credit rating.

By the end of 2024, these programmes were active in Portugal, Poland, and Colombia, each supporting over 200 suppliers.

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