ESG Incentives for Suppliers
If you are a supplier to our Companies, discover how your ESG performance could give you access to more favourable financing conditions.
We believe that proximity is essential for quality. The closer we are to where food is produced, the easier it is to ensure its freshness and quality. Buying locally also means that transport routes are shorter, which helps reduce greenhouse‑gas emissions and the environmental footprint associated with our products and operations. Local economies also benefit, as these partnerships promote regional businesses 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.
A responsible sourcing policy is essential to ensuring more sustainable supply chains. Together with our suppliers, we work to combat deforestation and prevent the destruction of tropical forests linked to the ingredients used in the products we sell. Our efforts focus on the raw materials most associated with deforestation risk: palm oil, paper/wood, beef and soy.
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 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:
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.
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 groups – to ensure transparency and fairness.
ESG Incentives for Suppliers
If you are a supplier to our Companies, discover how your ESG performance could give you access to more favourable financing conditions.
Local agricultural producers
Over recent years, we have made origin a key part of the shopping experience. In Poland, Biedronka has strengthened its proximity to small producers, growing from 60 in 2021 to a network of more than 260 in 2025. In Colombia, Ara created “La placita de Ara”, highlighting fruit and vegetables and their origin stories, bringing together more than 100 producers in 2025. In Portugal, Pingo Doce promotes national production both in and outside its stores, enhancing the value of local products.
The future of food production
On the ground, climate change has become impossible to ignore. Extreme temperatures and water scarcity are already affecting suppliers, leading them to adapt their production. From this response, new solutions are emerging: sourcing from regions with more favourable climates for products such as bananas, cocoa or rice; investing in more resilient and sustainable varieties; and transforming raw materials into higher-value, longer-lasting products, such as jams or dried goods.
Promoting sustainable practices
Caring for the land is caring for the future. Sustainable agriculture reduces pollution, protects essential ecosystem services and strengthens the resilience and viability of the production system. With this purpose, the Sustainable Agriculture Manual was created, supporting Portuguese suppliers of fruit, vegetables and flowers with guidance to improve land use, promote biodiversity and increase water and energy efficiency. Since 2016, more than 200 farms have joined, representing 67% of the volume sourced in Portugal.
Supplier payment practices
For many small suppliers, managing liquidity is a daily challenge. With this in mind, we have established invoice advance programmes with financial institutions, enabling suppliers to receive payment ahead of term in a simple way, while maintaining their financial rating and with costs aligned with our credit conditions. In 2025, more than 200 suppliers in Portugal, Poland and Colombia used this solution.
