We are pleased to share the continued growth and transformation of Reitan Retail as a value-driven and innovative Nordic and Baltic retail flagship. Despite an evolving and complex external landscape, we have expanded, excelled and stayed true to our purpose – to make everyday life a little bit easier and the world a little bit better.
We are pleased to share the continued growth and transformation of Reitan Retail as a value-driven and innovative Nordic and Baltic retail flagship.
Together with our customers, franchisees, employees and partners, we have strengthened our market position, expanded our reach, optimised our store portfolio, onboarded new people, developed innovative products, advanced digital capabilities and formed new and promising partnerships for the future.
The global geopolitical landscape remains volatile, with escalating conflicts and growing protectionist tendencies affecting international trade. Inflationary pressures have eased since the peak in 2022, but cost levels remain high, weighing on consumers and household economies. By managing our costs carefully and securing the lowest possible prices from suppliers, we stay committed to keeping prices as low as possible for our customers.
A 2024 milestone was the major expansion of REMA 1000 Denmark, following the historic acquisition of ALDI’s network, adding around 50 new stores in 2024. Following extensive portfolio management across the region, our company counted 3 500 sales outlets and 46 000 colleagues at the end of 2024 – in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia.
Our operational and financial performance remained solid, thanks to dedicated franchisees and loyal customers across discount grocery, convenience and mobility. Systemwide sales rose to NOK 132 billion in 2024, while revenues increased to NOK 109 billion,
helped by volume growth, mainly in grocery, along with inflation and positive currency effects.
Strong operational performance across all business areas lifted operating profit for Reitan Retail to NOK 3.8 billion in 2024 from 3.1 billion in 2023, mainly due to improvements in grocery, partly offset by inflationary pressure.
Our progress is a testament to the commitment of franchisees and employees dedicated to our values – always putting the customer first, staying positive and maintaining high moral standards. In a turbulent and polarised world, our philosophy and deeply rooted values are more critical than ever. We believe in transparency and dialogue between people and nations as a foundation for making the world a better place.
Building resilience step by step Reitan Retail has demonstrated adaptability and progress throughout 2024, with advancements supporting our strategy to strengthen our core, renewing our portfolio and positioning the company for the future. All business areas contributed:
REMA 1000 Norway
• Solid growth in systemwide sales and revenue
• Gain in market share
• Strengthened price position
• Leader in climate initiatives, according to the Carbon Disclosure Project (CDP)
• All-time high number of stores at 680 stores nationwide
• Successful development of a private brand portfolio, especially slower-growing chicken from fully owned Norsk Kylling factory
• Investment in state-of-the-art, energy-efficient cooling systems in our grocery store network across Norway
REMA 1000 Denmark
• Solid growth in systemwide sales and operating profit
• Successful expansion through the integration of the ALDI store network
• Significant increase in market share
• New and more efficient distribution centre for dry goods progressing towards full and stable operation
• Denmark’s strongest brand, according to YouGov Global Best Brand Rankings
Reitan Convenience
• Growth in systemwide sales and revenues
• Solid performance in like-for-like growth
• Increased store traffic, driving topline and operating profit
• Effective portfolio optimisation with a focus on profitable network
• Significant product innovation to shift towards better food on the go
• New Narvesen test lab in Oslo to drive convenience innovation
Uno-X Mobility
• Solid development for fuel operations in softening market
• Continued investments in future mobility, including further strengthening heavy-duty EV charging concept
• Pursuing a “one-brand strategy”, focusing and streamlining the Uno-X Mobility brand in Norway and Denmark
• Joining forces with 7-Eleven to strengthen roadside network
• Uno-X Mobility Cycling Teams took part in Tour de France, both women and men
Challenge and commitment
As a company, we take responsibility for shaping the future of retail, food production and mobility in ways that make a positive impact. Our commitment to a better future remains firm with ambitious goals in the areas of climate, health, people and the value chain. We regard innovation through collaboration as a key to reach our ambitions.
We continue to gain insight and competence about our complex value chains. In 2024, we have integrated our climate action planning and reporting into our core business planning processes, resulting in a more accurate and realistic CO2 emissions prognosis. With improved data, we acknowledge that our current plans do not match our ambition to halve CO2 emissions from our products (Scope 3) by 2030. We will continue to enhance the quality of our action plans, our data and the accuracy of our prognosis in the coming years. In 2025, we will reestablish our climate action plan while ensuring continued commitment and necessary sense of urgency among our people, our customers and suppliers.
With around 10,000 suppliers and some 2 million customer meetings per day, we have a great responsibility and
Diversity, equity and inclusion remain top priority for Reitan Retail.
opportunity to make an impact by nudging customers’ choices, collaborating with suppliers and developing a better and healthier assortment. In 2024, we stepped up efforts to promote more responsible value chains by setting minimum standards for assessing and managing procurement processes. In 2025, we will further improve tools and systems for risk assessments.
Diversity, equity and inclusion remain top priorities for Reitan Retail. Our industry plays a key role in providing meaningful jobs for a variety of people, avoiding marginalisation and social exclusion. We actively seek fair treatment and participation of all people, onboarding personnel of all backgrounds, offer-
ing training and support. In cooperation with social science research foundation Fafo, we are finalising an extensive study to determine enablers and barriers for diversity and inclusion across our operations, which will work as a basis for our further efforts.
At the end of 2024, all our boards across all seven countries had at least 40 percent representation by each gender. We also improved gender balance in leadership recruitment, contributing to a more diverse talent pipeline. We still have work to do to achieve overall gender balance in Reitan Retail, particularly in management positions and among franchisees, which will remain a key focus in 2025 and beyond.
40%
All boards across all seven countries had at least 40 percent representation by each gender
Innovation through collaboration
Better insight gives us a solid platform to continue our efforts to close the gap between our plans and ambitions. We will do so in collaboration with all stakeholders, including suppliers, producers and experts. As part of the work to close the innovation gap, we have established a partnership with leading Norwegian research centre SINTEF, which will form a science-based platform in our drive to reach our climate goals.
Concrete actions in 2024 also included:
• Partnering with Felleskjøpet to promote wider use of electric heavy-duty vehicles in deliveries of agricultural products in Norway.
• Exploring low-carbon food production through a partnership between Yara, Felleskjøpet, Norgesmøllene and Mesterbakeren to develop bread with a lower carbon footprint.
• Establishing a second Future Advisory Board of visionary and innovative external experts to advise on the use of AI to help reach our strategic ambitions.
• Collaborating with the World Food Programme to share expertise and support work to help end world hunger, initially focusing on school meals for children in Ukraine.
• Promoting transparency, freedom of speech and dialogue for a more peaceful world for all through our partnership with the Nobel Peace Centre.
Better together
We are a strong and diverse team, and we are constantly developing. In 2024, two new members strengthened Reitan Retail’s board of directors. Siv Rosendahl Skard, professor in sustainable consumer behaviour and Linda Helleland, politician, author and former minister, added competence critical to our future as a value-driven and innovative retailer.
Our values have been the cornerstone of our operations since Ole and Margit Reitan opened their first store in Trondheim in 1948. Since the birth of Norway’s Narvesen in 1894 and Sweden’s Pressbyrån in 1899, we have been a part of people’s everyday lives, at home and on the go, always with a firm commitment to the customer and to society.
As we enter 2025, our focus remains on profitable growth, operational excellence and cooperation for innovation and better performance across all aspects
of our business. We remain passionate, ambitious and committed to creating long-term value for our customers, our people and all our stakeholders.
Better together, we continue to build a stronger Reitan Retail.
Rune Bjerke Chair of the Board
Reitan Retail
Ole Robert Reitan Chief Executive Officer
1.3 History and accomplishments
Building on years of proud retail history, Reitan Retail was established at the beginning of 2021 as a result of REITAN’s decision to organise all its retail operations under one umbrella. Since the first grocery store opened in Trondheim in 1948, the retail business has grown to 3,500 sales outlets across seven countries. The continuous growth has come through both organic expansion and selective mergers and acquisitions.
1948
Ole and Margit Reitan open the family’s first grocery store in Trondheim
1979
Opening of the first REMA store in Trondheim, Norway
Reitan Narvesen created, adding Narvesen (Norway, est. 1894), Pressbyrån (Sweden, est. 1899) and 7-Eleven (licence in Norway, Sweden and Denmark, est. 1927) to the Group
2021
Uno-X Mobility launches Nordic Swan Ecolabelled car wash in Norway and Denmark
2021
Redefining sustainability for poultry production at our new poultry factory at Orkanger (Norway)
2019
Opening of a highly automated distribution centre at Vinterbro (Norway)
2019
Acquisition of Caffeine (Baltics)
2016
Launch of a digital journey through “Vigo” in REMA
1000 Denmark and “Æ” in REMA 1000 Norway
2014
REMA 1000 Norway commits ESG to its purpose
2012
Acquisition of R-Kioski, more than 1,000 outlets in Finland, Estonia and Lithuania
2008
Acquisition of Lidl’s store network in Norway
2006
Acquisition of Hydro Texaco (Norway and Denmark)
2022
Entering the HoReCa wholesale business in Norway through Kolly
2022
Uno-X Mobility opened its first ultrafast EV charging location
2023
Uno-X Mobility opened its first ultrafast heavy-duty EV charging concept in Norway and Denmark 2024
2023
ALDI acquisition approved by Danish competition authorities, first stores converted to REMA 1000
Opening a highly automated distribution centre in Horsens (Denmark)
Reitan Retail, Norgesmøllene, Felleskjøpet Agri and Yara join forces to develop and produce low-carbon bread
REMA 1000 Denmark ranked as the strongest brand in Denmark and with top ranking in customer loyalty 2024
2024
REMA 1000 Norway ranked top in climate leadership, earning CDP’s highest score for the 8th consecutive year
2024
Uno-X Mobility completed the addition of fuel sales and car wash services at all former Shell 7-Eleven stations (57) in Denmark
REMA 1000 Denmark opens its store number 400, further expanding its presence following the acquisition of ALDI Denmark’s store network
2024
Norsk Kylling named “Årets Miljøfyrtårn” for its industryleading animal welfare, renewable energy concept and efforts in reducing emissions 2024
2024
Reitan Retail enters partnership with the World Food Programme to support food programmes in Ukraine
Narvesen launches test lab in Oslo to drive convenience innovation
2023
1.4 Governing bodies
Reitan Retail AS is a fully owned subsidiary of REITAN AS, which is owned by the Reitan family. Odd Reitan, Ole Robert Reitan and Magnus Reitan, with his family, each owns 33.3 percent of the shares in REITAN AS through their individually owned holding companies.
Reitan Convenience and Uno-X Mobility. Each business area is led by an executive vice president and chief executive officer (CEO). In addition, the Group holds a portfolio of retail properties presented as a separate segment, Real Estate, being reported separately to the CFO of Reitan Retail.
Reitan Retail (the Group) is organised with a parent company, Reitan Retail AS, responsible for overall corporate governance. Subsidiaries that are defined as core business areas are referred to as business areas. These are REMA 1000 Norway, REMA 1000 Denmark,
Reitan Retail adheres to REITAN’s philosophy by structuring its operations to minimise the gap between accountability and authority and operational execution. This entails implementing and adhering to routines and internal controls across all organisational areas. These robust routines ensure consistent and ongoing monitoring of the Group’s activities, providing management with the most up-to-date information for decision-making purposes.
Management model
Reitan Retail is led by Chief Executive Officer Ole Robert Reitan (Group CEO), who is responsible for the day-to-day operations and leads the Corporate Management Board in accordance with applicable laws and the authority granted by the Board of Directors of Reitan Retail AS. In 2024, the Group’s Corporate Management Board consisted of eight employees, evenly split between four men and four women. The Group CEO reports directly to the Board of Directors, which is responsible for overseeing the overall management of Reitan Retail AS.
Corporate Management Board
Reitan Retail has a Corporate Management Board, which acts as an advisory management body for the Group CEO and assists and supports the Group CEO in carrying out the day-to-day management and decision-making of Reitan Retail. The Group CEO appoints and determines the composition of the Corporate Management Board. The Board of each business area appoints the CEO for the respective business area.
The Corporate Management Board of Reitan Retail consists of the Group CEO Ole Robert Reitan, Executive Vice President (EVP) and Chief Financial Officer (CFO) Kristin S. Genton, EVP and Chief Operating Officer (COO) Monica Ødegaard, EVP and Chief Communications Officer (CCO) Inger Sethov, EVP and CEO of REMA 1000 Norway Christian Hoel (replacing Tom Kristiansen as of January 1, 2024), EVP and CEO of REMA 1000 Denmark Henrik Burkal, EVP and CEO of Reitan Convenience Mariette Kristenson and EVP and CEO of Uno-X Mobility Vegar Kulset.
The members of the Corporate Management Board have a collective duty to safeguard and promote the corporate interest of Reitan Retail and to promote Reitan Retail’s strategic, financial and other objectives and targets. In addition, the role of the Corporate Management Board is to:
• Provide support and advice to the Group CEO regarding overall leadership, strategic development and the annual planning and reporting cycle.
• Provide governance and strategic support to the Business Areas with respect to finance, accounting, tax, sustainability, HR, compliance, communication and investor relations.
• Ensure that Reitan Retail is properly organised and that adequate steering, risk management and control systems are in place to provide a sufficient basis for an overview of risk exposures and compliance with applicable laws and regulations.
Board of Directors
In accordance with Norwegian law, the Board of Directors in Reitan Retail (the Group) assumes the overall governance of Reitan Retail, ensures that appropriate management and control systems are in place and supervises the day-to-day management as carried out by the Group CEO.
The Board of Directors in Reitan Retail comprises six members, reflecting a diversity in competence and background, of which 3 are men and 3 are women.
The tasks and responsibilities of the Board of Directors at Reitan Retail are laid down in the “Board of Directors rules of procedure”. This document governs the work and procedures of the Board of Directors of Reitan Retail AS within the framework of the applicable laws, rules and regulations. It is stated in the “Board of Directors rules of procedure” that the Board shall ensure that the activities of Reitan Retail are properly organised, approve plans, keep itself informed about the Group’s financial position and shall be obliged to ensure that the operations, accounts and asset management are subject to adequate control. The Board may also issue guidelines for the activities of the Group.
The Board shall, on an annual basis, evaluate the content and the need for any amendments to these Rules of Procedure as part of the Board’s review of governance documents.
As a part of its management of Reitan Retail’s activities, the Board shall approve the overall organisation of the Group, including determining, in collaboration with the CEO, the overall strategy for Reitan Retail.
On a general basis, the Board shall ensure that Reitan Retail has sound internal control and systems for risk management that are appropriate for the extent and nature of the Group’s activities. The Board shall also ensure that the Group uses proper and effective management and control systems, including systems for risk management, that continuously provide a satisfactory overview of the Group’s risk exposure. In addition, The Board shall ensure that the control
Rune Bjerke (b. 1960), Chair of the Board
Education: Social economics from the University of Oslo and a master’s degree (MPA) from Harvard University.
Former experience: Finance counsellor in Oslo and business leader, most recently as CEO of DNB from 2007-2019.
Current assignments: Chair of the board of Wallenius Wilhelmsen and Deputy Chair of the boards of Norsk Hydro and Schibsted.
Competences: Digitalisation, Innovation, IT and cybersecurity, Financial Investor and capital market relationships.
Linda Hofstad Helleland (b. 1977), board member Education: Media management, political science and sociology from the Norwegian University of Science and Technology (NTNU) and BI Business School.
Former experience: Norwegian Minister of Culture and Sports, Digitalisation and Gender Equality (2015–2021), Vice President of the World Anti-Doping Agency (WADA).
Current assignments: Member of Parliament for the Conservative Party (Høyre).
Education: Economics from BI Business School, Oslo.
Former experience: Started his first IT company at 15 years old. Founder and CEO of Mamut until the company became part of Visma. Head of Visma SMB.
Current assignments: CEO of the global learning platform company Kahoot!.
Competences: Large-scale leadership and corporate management, finance, digitalisation, sustainability, business strategy and entrepreneurship.
Siv E. Rosendahl Skard (b. 1977), board member
Education: Ph.D. in Marketing, Norwegian School of Economics (NHH).
Former experience: Researcher in consumer behaviour and branding, member of Reitan Retail’s Future Advisory Board on climate strategy.
Current assignments: Professor of Strategy and Management, NHH, board member SK Brann and Ullevaal Stadion AS.
Competences: Consumer behaviour, branding, circular economy and sustainability.
Magnus Reitan (b. 1975), board member
Education: Economics from NHH Norwegian School of Economics, Bergen, and BI Business School, Oslo.
Former experience: CEO, Reitan Convenience, CFO, Reitangruppen.
Current assignments: CEO of Reitan Kapital.
Competences: Financial, risk management, mergers and acquisitions and strategy.
Annika Sigfrid (b. 1974), board member
Education: Economics from Stockholm School of Economics.
Former experience: Head of Equity Capital Markets (ECM), Nordea, and key positions at ABG Sundal Collier and Carnegie.
Current assignments: Independent advisor in capital market transactions and several board positions.
Competences: Investment banking, equity capital markets, advisor and investor.
functions work as intended and that the necessary measures are taken to reduce extraordinary risk exposure. The Board shall also ensure that satisfactory routines are in place to ensure follow-up and compliance with principles and guidelines laid down by the Board in relation to ethical behaviour and compliance, including in respect of anti-corruption, health, safety and working environment and social responsibility.
With regards to external auditing, the Board shall ensure that Reitan Retail has a proper auditing system that is appropriate to the extent and nature of the Group’s activities. The external auditor shall, at least once a year, present to the Board a review of the Group’s internal control procedures, including identified weaknesses and proposals for improvement. The Board shall approve and implement measures to ensure that the Group’s financial position is satisfactory, undertake periodical reviews of results compared with financial plans, investment frameworks and adopted target figures and approve periodic accounts.
The Board shall also determine the overriding strategy and the financial targets for the Group, in collaboration
with the CEO, and approve the Group’s investment frameworks and financial plans as prepared by the Group CEO.
A proposal for an annual plan for the Board’s work should be prepared by the Group CEO, in consultation with the Chair of the Board, at the end of each year. The plan should state how and at what time the Board will carry out its functions pursuant to the Rules of Procedure and applicable legislation, with particular emphasis on objectives, strategy and implementation.
The Board shall, as a minimum, meet four times per year and otherwise as often as the Group’s operations necessitate or when any board member or the Group CEO so demands. The Group CEO shall prepare matters to be considered by the Board in consultation with the Chair. A matter shall be prepared and presented in such a way that the Board has an adequate decision-making basis, including recommended decisions.
In 2024, a total of five board meetings were held in accordance with the annual Board meeting plan, as well as one extraordinary meeting.
2.1 About Reitan Retail
Business overview
Reitan Retail is a leading retail company in the Nordic and Baltic regions with operations in discount grocery, convenience and mobility across seven countries. Reitan Retail’s operating model is based on a unique franchise model, the Reitan Format Franchise Model.
Reitan Retail is a family of 46,000 positive and proactive people and strong brands, including REMA 1000, Narvesen, R-kioski, Pressbyrån, 7-Eleven, Caffeine, Norsk Kylling, Kolly and Uno-X Mobility. Based on strong values, efficient operations and local ownership, we aim to create the best customer experiences. Our unique franchise model is at the heart of our business, and the customer is our ultimate boss. Our ambition is to make it easier to make good choices for our customers – at home and on the go. At Reitan Retail, we share strong values and a common purpose: to make everyday life a little bit easier and the world a little bit better.
Reitan Retail consists of four retail segments, also referred to as business areas: REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno-X Mobility. In addition, Reitan Retail holds a portfolio of retail properties presented as a separate segment, Real Estate. Reitan Retail is headquartered in Oslo, Norway. The business areas are operated from Oslo (Norway), Stockholm (Sweden), Copenhagen and Horsens (Denmark), Helsinki (Finland), Riga (Latvia), Tallinn (Estonia) and Vilnius (Lithuania).
Reitan Retail AS is a wholly-owned subsidiary of REITAN AS.
REMA 1000
REMA 1000 Norway is a pioneer in franchise-based retailing and the inventor of discount grocery in Norway. REMA 1000 Norway has accomplished steady growth in systemwide sales and market share with the business idea “customers prefer us because we always offer the lowest prices on high-quality products – produced and sold in a responsible way”.
REMA 1000 Denmark is a fast-growing discount grocer, ranked among Denmark’s strongest brands. Based on the same franchise model and ambition to offer quality products at low prices, the concept is known in Denmark as “Much more discount” and “Discount with value”.
Reitan Convenience is a leader in operating franchise-based convenience stores and has strong positions in the Nordic and Baltic regions, operating a range of well-known kiosks and convenience brands, aiming to make convenience sustainable and sustainability convenient.
Uno-X Mobility is a leading provider of mobility solutions in Norway and Denmark, covering fuel stations, electric vehicle charging facilities, car wash services and lubricants. Its mission is to develop and promote solutions for future mobility.
Real Estate consists of an actively managed real estate portfolio within the retail segment. Its overall mission is to secure access to strategically important locations, and thus, is an important enabler for the growth of Reitan Retail and its franchisees.
In
Reitan Retail, we aim to create sustainable and profitable growth based on three strategic pillars
Close - The customer is our ultimate boss, and we want to be relevant and present in the local community. Our franchisees know their customers’ preferences, and their outlets are inviting meeting places at the heart of their neighbourhood. It is local ownership. It is close.
Simple - We don’t create complicated solutions to impress others. We focus on doing the right things – and we keep it simple.
Responsible - We aim to contribute to good health, reduce climate emissions, foster diversity and equality and ensure transparency across the value chain to secure human rights. We seek accountability in our operations and want to be held accountable for our actions. We are responsible.
OUR PURPOSE
Together, we make everyday life a little bit easier and the world a little bit better.
OUR BUSINESS IDEA
Through strong values, efficient operations and local ownership, we create the best customer experiences.
Our philosophy
We believe in enthusiastic and skilled individuals with the ability and commitment to get things done. Reitan Retail follows REITAN´s philosophy, and we organise our activities in a way that makes the distance between accountability, authority and operational execution as short as possible. Building a logical structure and defining clear areas of responsibility ensures that we don’t create unnecessary work for each other.
At Reitan Retail, we treat employees, suppliers, partners and customers with respect. We like to keep it simple –and we want to be the very symbol of common sense, retail, a down-to-earth mindset and skill. We encourage everyone to be proud of their own accomplishments while at the same time admiring others for their achievements and success.
Our philosophy brings us together, and our strong values define us and lead us forward. We know where we are going without forgetting where we came from.
Our values
We are a value-driven company. Our values are the foundation for making customers, employees and partners feel valuable, creating long-term financial value and conducting our activities with integrity.
We have eight values that define and guide us:
1. We stick to our business model
2. We keep high moral standards
3. We are committed to be debt-free
4. We encourage a winning culture
5. We are positive and proactive
6. We talk with each other, not about each other
7. The customer is our ultimate boss
8. We work for fun and profit
Our values define what we believe is worth striving for. These values are our internal compass, guiding our mindset and decisions. Clearly defined values are the basis for a strong culture.
Reitan Retail is owned by REITAN AS. Our values have evolved through REITAN’s extensive history and are a natural part of Reitan Retail’s DNA. Our eight values are carved in rocks and obelisks placed at REITAN’s cultural and financial heart at Lade Gaard and several of our locations in the Nordics and the Baltics.
We use our philosophy, mindset and values to build as many champions and jobs as possible, where people thrive and are engaged. Value-based leadership is part of our philosophy and involves building great people who inspire action by building trust.
Conducting business in an ethical and transparent manner aligned with our values to inspire trust is essential for us. Being a value-driven company, we depend on trusting each other throughout our organisation, and we are dependent on trust from our customers, suppliers, partners, owners, authorities and society at large.
Our business model
Franchise – our main competitive advantage
The Reitan Format Franchise Model has been the heart and key driver of the successful development since the first REMA 1000 store opened in Norway in 1979. Reitan Retail was the first company in Norway to implement franchising and streamlined this model of operation through REMA 1000. REMA 1000 is the only purely franchise-based grocery player in the Nordics. Franchise is also the main operating model for Reitan Convenience.
The franchise model is a win-win partnership, enabling us to benefit from large-scale economies as well as agile and small-scale economies due to a decentralised decision-making structure with aligned performance incentives for the franchisor and franchisees.
Franchising represents a close collaboration between two independent parties: the franchisor and the franchisee. It’s about striking a balance between the freedom to make individual choices and a commitment to shared systems and standards. The franchisee is an independent business owner but operates within the concept and philosophy established by the franchisor.
Our strategic measures
To create value in the years to come, we will strengthen our core, expand our business and position for the future through the following six strategic measures:
Strengthen our culture and develop our franchise system
Strengthen competitiveness through lower costs and better terms
Establish new sales outlets and renew existing portfolio to boost average systemwide sales
Strengthen and renew formats to meet growing customer needs
Strengthen and renew the digital customer experience
Take a leading position in sustainability by making good choices easier
2.2 Financial position of the Group
Reitan Retail
The consolidated financial statements of Reitan Retail AS and its subsidiaries (Reitan Retail or the Group) have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB) and endorsed by the EU and the additional requirements of the Norwegian Accounting Act, effective on December 31, 2024.
In the view of the Board of Directors, the Group has a solid financial position. In accordance with Section 2-2 of the Norwegian Accounting Act, the Board confirms that the prerequisites for the going-concern assumption exist and that the financial statements have been prepared based on a going-concern basis.
The Group’s results and financial position are affected by uncertainty, especially related to accounting estimates when determining the impairment of nonfinancial assets and incremental borrowing rate to measure lease liabilities and contingent liabilities.
The key figures for the Group and its business areas consist of both IFRS measures and alternative performance measures (APMs). The following APMs are referred to in the next sections: Systemwide sales, growth in systemwide sales, like-for-like growth in systemwide sales, total systemwide and distribution sales and growth in revenue. In addition, the Group closely monitors the non-financial performance measure number of sales outlets. See the section
In the view of the Board of Directors, the Group has a solid financial position.
Performance measures and definitions for further details on all of the Group’s APMs and non-financial performance measures.
Systemwide sales represent sales in all sales outlets under the Group’s concepts and banners, whether operated by the franchisees, Reitan Retail, dealers or commission-based retailers.
Total systemwide and distribution sales consist of systemwide sales and distribution sales. Distribution sales is the Group’s sale of goods to other external customers not included in systemwide sales.
To exclude the impact of foreign currency translation, growth in systemwide sales, like-for-like growth in systemwide sales and growth in revenue are measured in local and constant currency rates.
Sales from franchise-operated sales outlets are reported by the franchisees and represent their revenues from sales at franchise-operated sales outlets. Sales from franchise-operated sales outlets are not recorded as revenue by Reitan Retail and are not included in the Group’s consolidated financial statements. However, the Group’s revenue from the sale of franchise services is computed based on the sales made by the franchisees, and, as a result, sales from franchise-operated sales outlets have a direct effect on the Group’s revenue from the sale of franchise services
and profitability. The systemwide sales measure allows management to assess changes in the Group’s overall system performance, the health of our concepts and banners, the financial health of the franchisee base and the strength of our market position relative to our competitors.
Sales outlets include all stores and mobility locations under the Group’s concepts and banners, whether operated by franchisees, Reitan Retail, dealers or commission-based retailers.
Numbers in parentheses represent last year’s figures.
2024 results
Reitan Retail’s systemwide sales* in 2024 came to NOK 132,111 million (127,684), corresponding to a growth* of 5.7 percent. Like-for-like growth in systemwide sales* was 2.7 percent. Revenue in 2024 was NOK 109,326 million (104,322), corresponding to a growth* of 6.5 percent. Both revenues and systemwide sales were impacted by volume growth, particularly within grocery, and general inflation, as well as positive impacts from a weakening NOK against other relevant currencies. Contributing positively was also market share growth within grocery in both Norway and Denmark.
Operating profit in 2024 was NOK 3,769 million (3,087).
The results in 2024 were higher than in 2023 primarily due to higher franchise fees resulting from higher systemwide sales and strong operational performance across the business areas, partly offset by continued cost inflation. In addition, certain one-off effects impacted the results in 2023 negatively, including impairment of real estate assets.
Development in key figures for the Group’s segments is discussed in more detail below.
Profit before taxes amounted to NOK 2,379 million in 2024 (1,854), with profit for the year of NOK 1,968 million (1,409).
Cash flow and investments
Cash flow from operating activities (before interest and income tax) in 2024 amounted to NOK 8,349 million (8,571). 2024 was impacted by improved profit
before tax, being offset by an increase in working capital elements (change in inventories, change in trade and other receivables and change in trade and other payables). Cash flow from operating activities differs from Operating profit before amortisation, depreciation and impairments (EBITDA) in the statement of profit or loss as EBITDA includes net gains (losses), share of profit of associates and working capital elements as mentioned above.
Net cash flow from investing activities in 2024 amounted to NOK -3,003 million (-1,274). The increase in investing activities in 2024 compared to 2023 is mainly attributable to the acquisition of ALDI’s store network in Denmark, which added a significant real estate portfolio, parts of which have been divested during the year.
Net cash flow from financing activities in 2024 amounted to NOK -4,240 million (5,579). In 2024, a dividend of NOK 1,364 million (2,740) was paid.
The Group’s ability to finance its own investments is considered good.
Balance and liquidity
As of December 31, 2024, total assets amounted to NOK 63,681 million (60,096), the increase from 2023 primarily reflecting an increase in property, plant and equipment and right-of-use-assets.
Cash and cash equivalents as of December 31, 2024, amounted to NOK 889 million (1,556), of which NOK 90 million (124) relates to restricted cash, as described in note 22 in the consolidated financial statements. As of December 31, 2024, undrawn borrowing facilities amounted to NOK 5,673 million (5,557).
At the end of 2024, total equity amounted to NOK 14,235 million (13,280), resulting in an equity ratio of 22.4 percent (22.1).
Acquisition of a majority of ALDI’s Danish grocery store network
On January 16, 2024, the Group acquired 100 percent of the shares of ALDI Danmark ApS, a non-listed company
based in Denmark. The transaction gave access to a portfolio of real estate locations, including 113 store locations (84 fully-owned stores and 29 leased stores) and three distribution centres, well-suited for the REMA 1000 format, paving the way for accelerated growth in an attractive market. The Group considered this transaction as an asset acquisition.
As a result of this transaction, a substantial number of real estate properties were added to the portfolio. In 2024, the Group sold many of these properties to external buyers, with the majority subsequently leased back.
For more information, see Note 36 in the consolidated financial statements.
Geopolitical tensions and macroeconomic uncertainties
The global geopolitical landscape remains volatile, with escalating conflicts and growing protectionist tendencies affecting international trade. Russia’s prolonged invasion of Ukraine and the Israel-Hamas conflict contribute to an increasingly unpredictable environment. Additionally, the risk of new trade barriers, tariffs and potential trade wars between major economies such as the US, EU and China poses challenges for global supply chains, including the grocery retail and mobility industries.
Reitan Retail closely monitors these developments to assess potential impacts on our operations. While we do not have people, assets or direct operations in Russia, Ukraine, Israel or Gaza, we remain vigilant regarding regulatory changes, trade restrictions and economic repercussions that may indirectly affect our business. Our policy is to follow the current sanctions lists issued by relevant authorities in the countries where we operate.
Inflationary pressures have eased since their peak in 2022, but cost levels remain high. Furthermore, geopolitical instability has heightened uncertainty in commodity markets, increasing procurement risks. Consumer behaviour continues to shift towards affordability and value-for-money options as household budgets remain strained.
At Reitan Retail, we work hard every day to keep prices as low as possible, by managing our own costs carefully and securing the best possible prices from our suppliers. In a period of lasting inflationary effects, we remain committed to helping our customers get the most out of every krone.
Since March 2022, customer mobility patterns have largely stabilised following the Covid-19 pandemic. However, macroeconomic headwinds and global uncertainties are shaping new trends in consumer spending and operational resilience. Reitan Retail remains focused on adapting to this evolving landscape while ensuring the safety and well-being of our employees and franchisees, particularly in regions close to geopolitical tension.
Statement of objections from the Norwegian Competition Authority
On 21 August 2024, the Norwegian Competition Authority (NCA) imposed an administrative fine of NOK 1,293 million on REMA 1000 Norge AS and REITAN AS for an alleged breach of Section 10 of the Norwegian Competition Act and Article 53 of the EEA Agreement, which prohibits anti-competitive cooperation.
The decision is based on the NCA’s assessment that REMA 1000 Norge, NorgesGruppen and Coop have cooperated in a way that enables mutual access to a comprehensive gathering of current, publicly available shelf prices through the use of so-called “price hunters” and that this practice has had an anti-competitive effect in the grocery market.
The Group disagrees with the decision and has appealed the case to the Norwegian Competition Appeals Tribunal. The Group considers it not likely that the NCA’s decision will be upheld.
For further information, see Note 35 in the consolidated financial statements.
Events after the reporting period
No significant events have occurred after the reporting period.
2.3 Segment performance
REMA 1000 Norway
Introduction
REMA 1000 Norway is the franchisor for REMA 1000 stores run by independent franchisees and is the only grocery retailer in Norway based entirely on a pure franchising model.
The franchisor distributes and sells goods to the REMA 1000 stores in Norway. The distribution activities also include external customers, including deliveries to the HoReCa sector (hotels, restaurants and catering companies) and to several convenience stores, including the 7-Eleven and Narvesen stores in Norway. In addition, REMA 1000 Norway has ownership in selected companies producing a range of private labels, including the state-of-the-art chicken producer Norsk Kylling. REMA 1000 Norway is headquartered in Oslo, Norway.
REMA 1000 Norway’s business model is based on high sales productivity and low costs, and the business idea is that “customers prefer us because we always offer the lowest prices on high-quality products – produced and sold in a responsible way”. REMA 1000 Norway has a proud history as the pioneer of discount grocery in Norway. Since the opening of the first REMA 1000 store in 1979, REMA 1000 has been a significant contributor to the maturity of the discount segment in Norway. Over the past 40 years, REMA 1000 Norway has seen steady growth in revenue, number of stores and market share.
2024 results
REMA 1000 Norway’s systemwide sales* in 2024 came to NOK 54,483 million (51,280), corresponding to a growth* of 6.2 percent. Like-for-like growth in systemwide sales* was 5.4 percent. Revenue in 2024 was NOK 41,115 million (38,276), corresponding to a growth* of 7.4 percent. Both revenues and systemwide sales were impacted by solid volume growth as well as relatively high levels of inflation. Inflationary pressures have eased, but price levels continue to put pressure on the household economy with
REMA 1000 Norway has a proud history as the pioneer of discount grocery in Norway
a continued trend of customers seeking value for money and discount options. This contributes to REMA 1000 Norway increasing its market share in the Norwegian grocery market by 0.1 percentage points, up from 23.8 percent in 2023 to 23.9 percent in 2024 (total traditional grocery market from Nielsen IQ, Dagligvarerapporten 2025 and internal data). The number of sales outlets at year-end 2024 was 680, up from 674 at year-end 2023.
Operating profit in 2024 was NOK 2,147 million (1,769). The results in 2024 were higher than the previous year, mainly due to increased franchisee fees from increased systemwide sales as well as improvements within the distribution network and the Norsk Kylling plant. This was partly offset by general cost inflation.
Outlook
Continuous development of the REMA 1000 concept through assortment, digitalisation, store upgrades and reduced complexity will contribute to an improved shopping experience for customers and increased efficiency throughout the entire value chain. Establishing new stores in attractive locations will also be a strategic priority.
The close collaboration with fully and partially owned suppliers will be further developed through REMA Industrier, and we expect further improved operations at Norsk Kylling following significant positive development over the last two years. This will help ensure that we deliver high-quality and sustainable poultry at low prices to our customers.
REMA 1000 Denmark
Introduction
REMA 1000 Denmark is the franchisor for REMA 1000 stores run by independent franchisees and is the only grocery retailer in Denmark based entirely on a pure franchising model. In addition, REMA 1000 Denmark also sells and distributes goods to the REMA 1000 stores in Denmark and to several convenience stores, including the 7-Eleven stores in Denmark. REMA 1000 Denmark is headquartered in Horsens, Denmark.
REMA 1000 Denmark’s business model is based on high sales productivity and low costs. REMA 1000 Denmark has had a presence in the Danish grocery store market since 1994 when the first two stores were opened. REMA 1000 Denmark inherits its profile and customer-centric mindset from REMA 1000 Norway, and the two share the same ambition of offering quality products at low prices. In Denmark, this is branded as “Much more discount” and “Discount with value”.
In 2024, REMA 1000 Denmark was perceived as the strongest brand in Denmark (YouGov), the most sustainable brand among grocery retailers (SBI), and won the top ranking in customer loyalty for the ninth consecutive year (Loyalty Group). This exemplifies the solid foundation for further growth in the Danish grocery market.
2024 results
Systemwide sales* in 2024 was NOK 38,303 million (35,207), corresponding to a growth of 7.1 percent. Like-for-like growth in systemwide sales* was -1.4 percent, reflecting the impact of a significant number of new store openings putting some pressure on systemwide sales in established locations. REMA 1000 Denmark’s revenue in 2024 was NOK 42,919 million (39,713), corresponding to a growth* of 6.4 percent. Both systemwide sales and revenues benefited from the opening of 51 new stores during the year, with the majority relating to the ALDI acquisition, highlighting
REMA 1000 Denmark’s business model is based on high sales productivity and low costs
the strong momentum for REMA 1000 Denmark. The trend towards value for money and discount options was also evident in Denmark. In 2024, REMA 1000 Denmark had an estimated market share of around 19 percent of the traditional Danish grocery market, well above the estimated 18 percent in 2023. The number of sales outlets at year-end 2024 was 423, up from 372 at year-end 2023.
Operating profit in 2024 was NOK 1,367 million (1,347). Results for 2024 came in at a similar level to 2023, with increased franchisee fees due to increased systemwide sales being offset by one-off costs related to the ALDI-acquisition, ramp-up effects related to the new distribution centre and general inflationary pressure.
Outlook
REMA 1000 Denmark remains committed to its core business model — offering low-priced goods with clear requirements regarding the goods’ quality and impact on people and the environment. This includes a continued focus on organic and sustainable groceries and reduced food waste.
Following the acquisition of ALDI’s Danish store network, a large number of stores were opened during 2024. In 2025, our main focus will be to build on this strong momentum by running our operations even better and making the customer experience even more rewarding. At the same time, we will continue to open new stores and strengthen our presence in the market. Additionally, we will further stabilise and optimise our new distribution centre in Horsens, Denmark, to secure a robust and efficient supply chain.
Reitan Convenience
Introduction
Reitan Convenience is a leading player in the convenience market in Norway, Sweden, Denmark, Finland and the Baltics. With limited exceptions, the portfolio is based on franchising as the operating model. Reitan Convenience consists of leading international brands and national legacy brands in local markets, including Narvesen in Norway, Latvia and Lithuania, Pressbyrån in Sweden, 7-Eleven in Norway, Sweden and Denmark, R-kioski in Finland, R-kiosk in Estonia, Lietuvos Spauda in Lithuania, Northland in Norway, Caffeine in Lithuania, Latvia and Estonia and PBX in Sweden.
Reitan Convenience has a proud history in convenience retailing going back more than 130 years. The convenience retail operations aim to meet consumer demand for convenient solutions “on the go”. Reitan Convenience aims to make convenience sustainable and sustainability convenient.
2024 results
Systemwide sales* in 2024 was NOK 16,879 million (16,490), corresponding to a growth* of 0.9 percent. Like-for-like growth in systemwide sales* was 2.9 percent. Reitan Convenience’s revenue in 2024 was NOK 5,803 million (5,651), corresponding to a growth* of 1.1 percent. Systemwide sales and revenues grew despite an average of 143 fewer stores in 2024 compared to 2023. At year-end 2024, the number of sales outlets stood at 1,678, down from 1,769 in 2023. This reflects an active portfolio strategy, balancing new store openings in attractive locations with the closure of smaller, less profitable stores, primarily in Norway, Finland and the Baltics.
Operating profit in 2024 was NOK 167 million (213). Operating profit increased in 2024 if adjusting for the transfer of the car wash and fuel infrastructure activities
Reitan Convenience is a specialist in developing and operating franchise-based convenience concepts
in Denmark from Reitan Convenience to Uno-X Mobility. This reflects the continued improvement in customer traffic and results since the years with Covid-19-induced mobility restrictions. The positive development also reflects an enhanced customer offering, optimisation of the store portfolio and more efficient operations. This was partly offset by general inflationary pressure.
Outlook
Reitan Convenience is a specialist in developing and operating franchise-based convenience concepts. Organic growth in existing stores and new store openings are a core part of Reitan Convenience’s business. Reitan Convenience will continue its focus on food-to-go, hot and cold beverages and bakery products through continued innovation and digital solutions to improve customer offering and performance and to attract existing and new customers.
Reitan Convenience has benefited from successful restructuring and portfolio optimisation in Norway, Finland and the Baltics during 2023 and 2024. In 2025, we will continue our active portfolio management, focusing on growth and further efficiency improvements.
Uno-X Mobility
Introduction
Uno-X Mobility operates in Norway and Denmark under the Uno-X brand. Its mission is to develop and promote solutions for future mobility. Uno-X Mobility provides customers with efficient and accessible mobility services, including fuel stations, electric vehicle (EV) charging facilities, car wash services and lubricants.
Uno-X Mobility has undergone important structural changes in both Norway and Denmark over the past year. In Norway, a merger of the companies managing YX and Best’s dealer-owned, dealer-operated programmes has resulted in the creation of YX Norge AS. As part of this transition, Uno-X Mobility has fully discontinued the use of the YX brand, focusing and streamlining the Uno-X mobility brand, but continues as a minority owner and a fuel supplier to YX Norge. Additionally, all YX 7-Eleven stations in Norway have been rebranded as Uno-X 7-Eleven. In Denmark, Uno-X Mobility has completed the takeover of fuel sales and car wash services at all former Shell 7-Eleven stations, strengthening its market presence and providing a solid foundation for developing future mobility solutions at prime locations.
Throughout the year, Uno-X Mobility has made significant investments in EV charging infrastructure. By the end of 2024, Uno-X Mobility operated 410 charging points for passenger vehicles and 36 for heavy-duty vehicles across Norway and Denmark, corresponding to 74 and 10 locations, respectively.
2024 results
Total fuel volume sold (measured in 1,000 m³) in 2024 was 1,560 (1,749), corresponding to a decline of 10.8 percent. Systemwide sales and revenues declined in 2024 compared to 2023, driven by lower volumes, mainly due to a softening market and changes in the ownership structure of YX stations, as well as somewhat reduced prices for refined oil products.
Uno-X
Mobility will continue to develop and promote solutions for future mobility
Operating profit in 2024 was NOK 293 million (285). Results for 2024 came in at a similar level to 2023, reflecting a continued solid development for fuel operations but a decline in fuel volumes. The volume decline was driven by market softening and changes in the ownership structure of YX stations.
The number of mobility locations at the end of 2024 was 710, down from 823 at the end of 2023. The decrease was primarily due to changes in the ownership structure of YX stations, which accounted for 181 locations at the end of 2023. Meanwhile, 57 new mobility locations were added as part of the integration of the Shell 7-Eleven portfolio in Denmark.
Outlook
Uno-X Mobility is committed to contributing to the transition towards more sustainable mobility. Uno-X Mobility will continue to develop and offer mobility solutions with a lower environmental impact while ensuring an efficient and financially viable fuel network. In addition, Uno-X Mobility plans to expand its EV charging infrastructure to improve access to electricity for road transport. These efforts are aligned with national and international climate policies and are based on measurable targets and transparent reporting in line with regulatory requirements.
Real Estate
Introduction
Real Estate consists of an actively managed real estate portfolio within the retail segment. Its overall mission is to secure access to strategically important locations, and thus, is an important enabler for the growth of Reitan Retail and its franchisees.
Reitan Retail has direct ownership of a real estate portfolio in Denmark as well as the Norsk Kylling factory in Norway. In Norway, the real estate development portfolio was sold to REBUS Handelseiendom in 2023. REBUS Utvikling, a subsidiary of REBUS Handelseiendom, is responsible for identifying and developing potential locations for Reitan Retail. Reitan Retail remains actively involved through representation on the Board of Directors and Investment Committee, with the partnership being governed by a service-level agreement. REBUS Handelseiendom is owned by REITAN.
2024 results
Operating profit in the Real Estate segment in 2024 was NOK 133 million (-115). Included in the segment’s operating profit was the revaluation of investment properties of NOK -43 million in 2024 compared to NOK -232 million in 2023. This largely explains the difference in operating profit between 2024 and
The Real Estate segment will continue to secure access to strategic important
locations,
being an important enabler for the growth of Reitan Retail and its franchisees
2023 and also reflects the impact of real estate impairments recorded in 2023.
The carrying amount of the real estate portfolio at fair value at the end of 2024 was NOK 4,421 million (3,581). The net increase is mainly attributable to the acquisition of ALDI’s store network in Denmark, which added a significant real estate portfolio, parts of which have been divested during the year.
Outlook
The Real Estate segment will continue to secure access to strategically important locations and will be an important enabler for the growth of Reitan Retail and its franchisees.
2.4 Financial position of the Parent
The separate financial statements of Reitan Retail AS (the parent company) have been prepared in accordance with simplified IFRS pursuant to the Norwegian Accounting Act, section 3-9, subsection 5 (“Regulations on simplified use of international accounting standard”) issued by the Norwegian Ministry of Finance on February 7, 2022.
In 2024, other income amounted to NOK 1,806 million (1,675). Other income consists of dividends and group contributions from subsidiaries. Profit for the year amounted to NOK 1,425 million (1,471).
As of December 31, 2024, total assets amounted to NOK 11,914 million (11,277), while total equity was NOK 5,844 million (6,049). This corresponds to an equity ratio of 49.1 percent (53.6). As of December 31, 2024, total liabilities were NOK 6,070 million (5,228).
In December 2021, Reitan Retail AS established a multi-currency credit facility. The loan is provided by a
syndicate of six banks and structured as a NOK 9,000 million revolving credit facility, of which NOK 4,500 million originally matured in 2024 and NOK 4,500 million originally matured in 2026. Both tranches included two one-year extension options. In 2022, the first extension option for both tranches was utilised, and in 2023, the last extension option was utilised, extending maturity dates to 2026 and 2028, respectively.
In March 2024, Reitan Retail AS entered into a DKK 1,300 million term loan with a 2-year maturity, financed by the same bank syndicate of six banks. The loan facility was secured to preserve financial and operational flexibility in connection with the acquisition of ALDI store locations in Denmark, including the purchase price and related capital expenditures.
The parent company’s ability to finance its own investments is considered good.
For further details, please see Note 9 in the consolidated financial statements in the separate financial statements of Reitan Retail AS.
2.5 Risks and risk management
Reitan Retail is a leading retail company, operating in the discount grocery, convenience and mobility sector across seven countries, and our operation is exposed to ordinary financial, operational and sustainability risks related to these types of activities.
The risk picture is complex, with several risks interlinked by underlying factors. Mitigating the risks requires a comprehensive set of mitigating actions. Several of our risks affect our global value chains. Although we, in later years, have come a long way to
improve transparency, further improving transparency remains a key focus moving forward.
Identifying and managing risks is an integral part of strategic planning as well as of the control and management of the business. Risk management and internal controls are given high priority by the Board of Directors, and they are responsible for ensuring that the necessary and adequate systems are in place. Furthermore, Reitan Retail’s management is responsible for establishing and maintaining sufficient internal controls.
Our most prominent risks and mitigating actions are described below.
Reitan Retail operates in competitive and dynamic markets that require presence in customers’ everyday lives, relevant concepts, as well as flexible and agile people and franchisees to meet customers’ needs
Cyber security risks
The general trend shows an increasing frequency of large cyber attacks that are more advanced and more difficult to detect and predict. Socially critical sectors such as food and mobility are vulnerable targets. To mitigate this risk, we have a continuous focus
on training employees, ensuring necessary security systems are installed and up to date and continually monitoring systems and services.
Market risks
Inflation levels have eased since their peak in 2022, but cost levels remain high and are putting continued pressure on household economies and businesses alike. Our operation in the discount grocery, convenience and mobility industries experience higher costs for the majority of our input factors. This risk is mitigated through a strict focus on costs and efficiency. Historically, Reitan Retail has shown resilience throughout inflationary cycles due to strong operational efficiencies and benefits of scale.
Reitan Retail operates in competitive and dynamic markets that require a presence in customers’ everyday lives, relevant concepts and flexible and agile people and franchisees to meet customers’ needs. To stay up to date on trends and developments, the market is constantly monitored and forms the basis of our strategy.
Value-chain risk
from geopolitical and climate disruptions
Stable value chains are critical to our financial performance. Geopolitical unrest, trade restrictions and climate impacts such as war, drought and flooding pose rising risks, especially to food and energy supply. Disruptions drive up costs and increase volatility and may lead to operational delays, margin pressure, heightened compliance and reputational risk. To strengthen resilience, we assess supplier risk through structured due diligence guided by our Responsible
Procurement Policy. We engage with suppliers to ensure ethical and sustainable practices, and we diversify sourcing where critical risks are identified.
Climate-related risks, including regulatory change, supply instability and physical disruption, are inte grated into our risk management and strategic planning. The Task Force on Climate-related Financial Disclosures (TCFD) assessment confirms our ongoing focus on adaptation across procurement, logistics and product development. Transition risks, including stricter vehicle regulations and limited charging infrastructure, are becoming more evident. See more in Chapter E1 Climate change, or read the full TCFD report here.
Risk
of injury or harm to people or the environment
With over 46,000 colleagues, 3,500 sales outlets, industrial facilities and distribution centres across seven countries, Reitan Retail is exposed to operational risks that may cause injury to people or harm to the environment. Such incidents may result in human impact, environmental damage, legal liability, reputational harm and business disruption.
To mitigate these risks, we operate robust health, safety and environment (HSE) systems across the business. These are regularly audited and updated to ensure compliance with national regulations, internal standards and environmental obligations. We view a safe working environment as essential to performance and long-term value creation.
Risk of not having the right people
Our industry is undergoing rapid transformation, driven by digitisation and evolving ways of working. These shifts bring new challenges – and with them, a growing need for different skills and capabilities. The workforce of tomorrow will require competencies that differ significantly from those of today. At Reitan Retail, we are committed to attracting, developing and retaining people with the right mindset and the skills needed to succeed in a changing retail landscape. In the recruitment process, requirement specifications are prepared for each position, which, together with thorough evaluations, interviews and test tools, ensure we find the best-qual-
ified candidates. We run several skill development courses and programmes for our employees and people, and through individual employee interviews, we identify and define career goals and corresponding development plans. The Group also promotes internal career development, and vacancies are first advertised internally. Succession planning is a tool used to ensure and preserve competence, diversity and gender equality within the Group.
Regulatory risks
Our operations may be affected by forthcoming new and amended laws and regulations, such as packaging, reporting, transparency, marketing, pricing and cybersecurity.
To ensure we comply with current laws and regulations, we are monitoring the law amendment processes to be prepared and ready when the changes apply. We plan ahead to ensure we have the necessary systems and resources in place to meet forthcoming regulations. We also take an active role as a constructive dialogue partner for authorities and policymakers on local, national and European levels.
Financial risks
Reitan Retail is exposed to financial risks in the form of currency risk, interest rate risk, credit risk, liquidity risk, risk related to financing and capital structure and inflation risk.
This is mitigated by following established strategies and guidelines for managing financial market risk. Reitan Retail’s ambition regarding financing and capital structure is referred to in our value principle no. 3: “We aim to be debt-free”. This value principle should be read as a guidance and target to have a robust financial position, with a capital structure allowing us to balance risk and flexibility to act on opportunities. The Group has a solid balance and significant liquidity reserves, including undrawn borrowing facilities, providing the Group with the strength and capacity to handle unforeseen operational challenges and market fluctuations.
Financial risks are covered in more detail in Note 3 in the consolidated financial statements.
2.6 Organisation
Ownership and group organisation
Reitan Retail AS is a wholly owned subsidiary of REITAN AS, owned by the Reitan family.
Odd Reitan, Ole Robert Reitan and Magnus Reitan, with his family, each owns 33.3 percent of the shares in REITAN AS through their individually owned holding companies.
Reitan Retail (the Group) is organised with a parent company, Reitan Retail AS, responsible for overall corporate governance. Subsidiaries that are defined as core business areas are referred to as business areas. These are REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno-X Mobility. Each business area is led by an executive vice president and chief executive officer (CEO). In addition, the Group holds a portfolio of retail properties presented as a separate segment, Real Estate, which is reported separately to the CFO of Reitan Retail.
Reitan Retail is led by Chief Executive Officer Ole Robert Reitan (Group CEO), who is responsible for the day-to-day operations and leads the Corporate Management Board in accordance with applicable laws and the authority granted by the Board of Directors of Reitan Retail AS. In 2024, the Group’s Corporate Management Board consisted of eight employees, evenly split between four men and four women. The Group CEO reports directly to the Board of Directors, which is responsible for overseeing the overall management of Reitan Retail AS.
In accordance with Norwegian law, the Board of Directors in Reitan Retail is responsible for the overall governance of Reitan Retail, ensures that appropriate management and control systems are in place and supervises the day-to-day management as carried out by the Group CEO. The Board of Directors in Reitan
Retail comprises six members, reflecting a diversity in competence and background, of which three are men and three are women. The Board meets as often as required and otherwise as often as the Group’s operations necessitate or upon request by any board member or the Group CEO. In 2024, a total of five board meetings were held in accordance with the annual board meeting plan, as well as one extraordinary meeting.
The board members and the CEO of Reitan Retail AS and its subsidiaries are covered by a directors and officers liability insurance policy for their potential personal liability towards the company and third parties. The insurance also covers any employee acting in a managerial capacity.
At the end of 2024, the Board of Directors across all business areas and all seven countries of Reitan Retail had at least 40 percent representation by each gender, in line with Norwegian legislation requiring board diversity as of December 31, 2024. Reitan Retail considers such regulations fundamental and has implemented the same standard across all boards throughout the company regardless of geographical location.
Working environment
Reitan Retail is committed to being a safe and attractive workplace for everyone, with diversity, equality and opportunities in focus. Great emphasis is placed on motivating and developing employees in line with the Group’s values and culture. Reitan Retail wants to give all employees a common platform and cultivate a sense of collective pride across the business areas. Hence, employee development is central to the Group and the business areas, and Reitan Retail have several development programmes, including value training, talent- and trainee programmes, offers of trade certificates and various individual programmes.
The Board of Directors is satisfied with management’s follow-up on working environment matters and considers the overall working environment in the Group to be good.
In total, Reitan Retail had 6,676 employees at the end of 2024 and 45,590 systemwide employees, including franchisees and their store personnel.
Among 541 employees in top and middle management in 2024, 42 percent are women and 58 percent are men, compared to 40 percent and 60 percent in 2023.
Out of the total number of employees, 619 are temporarily employed or working as non-guaranteed hours employees, most of whom are in companyoperated sales outlets.
Flexible working hours, home office solutions and parental leave for both genders promote opportunities for both women and men to balance their careers and family lives. During 2024, 261 employees were on parental leave, of which 51 percent were women and 49 percent men.
Employee sick leave in 2024 was 5.7 percent compared with 5.8 percent in 2023. A total of 81 injuries resulted in sick leave in 2024. Out of the 81 work-related injuries in 2024, the majority involved crush and cut injuries, sprains and strains from twisted limbs, falls on stairs and minor burns from boiling water.
There have been no incidents of material damage considered significant for financial reporting purposes.
As a large employer, we play an important role for both our employees and society in supporting those on sick leave in their return to work. Cooperation with local authorities, such as the Norwegian Labour and Welfare Administration (NAV) in Norway, is key to this effort. We accommodate employees with reduced work capacity due to age and/or illness, offering opportunities for reduced positions (partly without sick pay or with no reduction in pay). Most of the Group’s sites meet modern standards and are adapted for employees with physical disabilities.
We value competence and potential over demographic, cultural and socioeconomic differences. We have zero tolerance for discrimination and harassment at all workplaces, as established in our Code of conduct.
In Reitan Retail, efforts to promote equality and prevent discrimination are an integrated part of our people and leadership policies. Each company within the Group is responsible for fulfilling its duty to actively promote and report on these matters (“Aktivitets- og redegjørelsesplikten”), according to Norwegian law. This includes implementing measures and preventive initiatives to ensure equal opportunities and to avoid discrimination. We do not tolerate any form of harassment, discrimination or behaviour that is perceived as threatening, offensive or degrading. For more information, see Chapter 3.3.
Franchisees and store personnel
We hold great pride in our franchisees and the diversity they represent. In 2024, 33 percent of our franchisees were women and 67 percent were men, compared with 36 percent and 64 percent in 2023. Of the total 2,162 franchisees, 12 percent were aged 19-29, 31 percent aged 30-39, 31 percent aged 40-49, 21 percent aged 50-59 and five percent aged 60 and above. In 2024, the total number of store personnel was 36,752, evenly split between men and women. Our sales outlets can serve as a first step into working life for young people or a way back for individuals who face challenges and need work experience, skills development or a second chance. Both the franchisees and Reitan Retail see this as a valuable opportunity to contribute to the local community and society.
2.7 Responsibility
At Reitan Retail, our purpose is to make everyday life a little bit easier and the world a little bit better. We acknowledge that the impact of our everyday choices is enormous and that we have a great responsibility, but we also recognise this as a great opportunity to make a difference. With operations within the food and mobility sectors, we are part of complex global value chains. It is a strategic priority for Reitan Retail to take a leading position in sustainability by making good choices easier.
Our sustainability work is guided by our sustainability strategy with four focus areas, namely Environment, Health, People and Value chain. This strategy is based on our purpose, our values, our operations and stakeholder dialogues, and in 2024, we started reinforcing it based on the outcome of our Double materiality assessment (DMA). This work will continue in 2025 to ensure we address our material topics.
In the following sections, we address key highlights from our 2024 responsibility efforts. See more details in Chapter 3 – Sustainability statement. This year, we have started to align our reporting with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). This is an important step in better understanding both the financial risks and opportunities linked to sustainability, as well as our wider impact on people and the environment. Based on the DMA results going forward, we will develop and strengthen our sustainability strategy within all four focus areas to ensure we sufficiently address all material topics. In line with this we aim to build policies, procedures and robust training programmes anchored in each of these topics.
Environment and climate
At Reitan Retail, we strive to operate in a way that minimises our environmental footprint while ensuring responsible retailing. We consider this increasingly important in a time marked by climate change, rapid loss of biodiversity and exploitation of natural resources. Several challenges stem from global warming caused by GHG emissions, and reducing emissions is therefore an important focus in Reitan Retail. Our ambitious targets are in line with the Paris Agreement and the Science-Based Targets initiative (SBTi), and our approach is structured and science-based. To achieve our targets, each business area develops action plans.
2030 targets
1. Reduced emissions: Achieving carbon neutrality in our own operations and reducing emissions in our value chain by at least 43 percent by 2030 from a 2022 base year – aiming for net zero by 2050
2. More renewable energy in road transport: Increasing the renewable share of the energy we sell for road transport to at least 30 percent
3. Reduced food waste: Reducing food waste in our sales outlets by 50 percent
4. Circular packaging: Making 100 percent of all packaging recyclable
Status
the share of low-emission transport. With 99.6 percent of our emissions stemming from our value chain, Scope 3 is an important focus. These emissions were reduced by nine percent in 2024, mainly from a reduction in sales of fossil fuel, scaling electric and low-emission logistics, shifting sales to less carbon-intensive products and packaging optimisation.
By year-end, Uno-X Mobility offered 10.2 percent renewable energy, representing a slight increase from 9.9 percent in 2023.
We have also taken further steps to reduce waste and resource consumption across our operations. In 2024, nearly five million edible products were saved through various initiatives. Despite geographical challenges, enhanced sorting and recycling infrastructure has increased the use of recycled materials in both packaging and operations. In 2024, 79 percent of our sales outlets had access to commercial or public recycling systems, and 73 percent of the total waste generated throughout Reitan Retail was recycled.
We aim to halve the emissions from all our products
We must ensure that the products we sell are traceable and responsibly produced Environment and climate Health People Value chain
We will simplify healthier choices, supporting the Nordic nutrition recommendations
We will contribute to diversity and inclusion and create safe workplaces
2024 marked a milestone when we, for the first time, integrated our emissions from product sales with our financial business plan extending to 2028. This provided valuable insights into the effectiveness of our action plan and uncovered a significant gap. Reinforcing our 2030 action plan will be a key focus moving forward.
Our 2024 emissions totalled nine million tonnes of CO2, and although uncovering a gap, we also accelerated our reduction efforts. In our own operations, Scope 1 and 2, we reduced our emissions by 25 percent through key initiatives such as increasing renewable energy adoption, improving energy efficiency and increasing
Through our DMA, we identified some additional material topics. Although partly covered, we have identified the need to address certain ESRS topics more specifically in our targets, policies and ways of working.
Looking forward
In 2025, we will continue progressing towards our targets and define clear goals and actions for material ESRS topics where gaps have been identified – especially within pollution, water, biodiversity and circular economy. Reducing GHG emissions remains a key priority. To reach our targets, we are reinforcing action plans and focusing on decarbonising outlets and transport, shifting sales to lower-carbon products, reducing food waste and collaborating with suppliers to cut value chain emissions.
Health
Reitan Retail is committed to ensuring fair access to products and services, promoting healthier choices and inspiring sustainable and active lifestyles for consumers across all markets. With a broad presence in grocery, convenience and mobility across seven countries, we strive to make essential products available, affordable and accessible to all, regardless of socio-economic background.
We aim to leverage our market influence to positively impact consumer health and accessibility, ensuring that all customers can make informed and responsible choices. A core part of our impact lies in making healthier food options more accessible. We consider sustainable consumption not just our responsibility but also a competitive advantage. Our efforts align with the Nordic Nutrition Guidelines.
2030 targets
1. Develop more of healthier products: Develop new and existing products and alternatives within relevant categories in a healthier direction
2. Increased sales of healthier products: Offering more healthy options like fruits, vegetables, berries, whole grains, white meat, fish and seafood in our stores
In addition, we wish to inspire and nudge healthier habits and lifestyles by supporting local organisations and community partners through our business areas and their franchisees.
Status
In 2024, we contributed towards our targets through several measures. We increased the offer of healthier products, and saw the unit share increase by 0.3 percent up to 32.1 percent. We increased product development of existing and new products in a healthier direction. Examples are the launch of packets of minced pork and minced beef, where half the meat has been replaced with vegetables.
We also contributed to healthy lifestyles and habits in 2024, with a total of 15,821 children and youth
participating in camps and activities across our business areas. The camps and activities include sports clubs, youth organisations for mental health and cooking schools.
Looking forward
Onwards, we will continue to make healthier products more accessible, through product development and innovation, promoting sales of such products, nudging customers towards healthier choices and continuing to encourage healthy habits and lifestyles.
People
With 46,000 people across seven countries, we recognise both our opportunity and responsibility to build inclusive, safe and fair workplaces. Our positive and proactive workforce is our greatest asset, essential to long-term growth and success. Despite recent political pushback, we stand firm in our commitment to diversity, equity and inclusion – promoting a culture of belonging, respect and stability for all. We believe different backgrounds, skills and perspectives create new opportunities, lead to better decision-making and strengthen our business. We also consider gender balance important to ensure equal opportunity for career progression and economic participation, including equal pay for work of equal value.
As a value-driven company, our philosophy and core values shape the workplace we aspire to be and the culture we foster. Several of our eight values emphasise people and culture, including we encourage a winning culture, we are positive and proactive, we talk with each other and not about each other and we work for fun and profit. These values are supported by our Code of conduct, which sets clear expectations for working conditions, nondiscrimination, equal opportunities and workplace safety, ensuring alignment with laws and regulations.
2030 targets
1. Be the preferred employer: Being the preferred employer in our respective industries and markets and getting more people into work
2. Gender balance: Aiming for full equality and a gender balance of 40-60 percent throughout the company
Status
In 2024, we continued our work through a diverse set of actions. To track our score as a preferred employer, we conduct several surveys yearly. In general, the 2024 results among our people are strong, showing high work satisfaction and pride in their workplace.
We made significant progress in improving gender balance in leadership recruitment, and we met our KPI
scorecard goal of 40 percent representation of each gender in recruitments and promotions. Additionally, we achieved the same balance on all our Boards. A remaining milestone, however, is to achieve overall gender balance on the management level and level out the gender imbalance among franchisees within certain business areas and countries.
To gain science-based insights, we conducted a survey to better understand how to strengthen inclusion and diversity across our organisation. The results will guide targeted initiatives going forward. In addition, we are taking further steps to identify and address any potential pay gaps to ensure equal pay for work of equal value.
To continuously develop our employees and people, we have conducted various training and skill development programmes. Some of these are run by our own Value academy and focus on value-based leadership.
Looking forward
Moving forward, we are committed to strengthening equality, improving gender balance and continuing the development of our people. We will continue to refine our recruitment and leadership programmes to ensure equal opportunities at all levels. Expanding training initiatives, such as Value Academy, and promoting internal career growth remain key priorities. By addressing barriers to inclusion and supporting diverse talent, we aim to build a more balanced and dynamic workforce that reflects our values and drives long-term success.
Value chain
We are part of complex value chains that span all over the globe. We recognise the responsibility this entails and work to ensure that the products we sell are traceable and responsibly produced. This responsibility covers both environmental aspects as well as social aspects regarding the workers in the value chain and affected communities.
Strong supplier engagement, due diligence and advocacy for fair labour practices are necessary to ensure safe and dignified work across our value chain and avoid negatively impacting local communities. Our Code of conduct, Supplier code of conduct and Responsible Procurement Policy are our key governing documents and clearly state our requirements suppliers and partners must meet within their operations and value chains.
2030 targets
1. Responsible supply chains: Ensuring decent working conditions and respecting fundamental human rights in our supply chains through responsible sourcing practices and increased transparency and traceability
2. Less negative environmental impact: Reducing our negative impact on biodiversity and helping stop deforestation and the extinction of species
3. Better animal welfare: Contributing to improved animal welfare and a reduced environmental footprint from animal husbandry
Status
In 2024, a total of 11,400 suppliers were risk evaluated in due diligence assessments, accounting for 83 percent of all reported suppliers in our operations. Our work on responsible sourcing is guided by stakeholders’ input and in-depth risk assessments. In 2024 we carried out a stakeholder dialogue targeting living wages, impacted local communities and working conditions. Our statement in accordance with the Norwegian Transparency Act will be updated and published on reitanretail.no by June 30, 2025.
We have an emphasis on fundamental human rights and decent working conditions when conducting risk assessments and sustainability due diligence, but going forward, we will also strengthen the focus on environmental risks. We have drafted a policy on high-risk commodities that will both address environmental and social issues. Palm oil is a high-risk commodity and one of the leading causes of rainforest deforestation, with severe consequences for biodiversity. In 2024, we continued our efforts to phase out palm oil from food and beverages with a common approach for REMA 1000 and Reitan Convenience.
Reitan Retail has made significant investments over the years to improve animal welfare in chicken production, introducing better, slower-growing breeds and enhanced living conditions. Through Norsk Kylling and REMA 1000 Norway, this now covers 30 percent of Norwegian chicken production. A new learning centre supports industry collaboration and knowledge-sharing to drive further improvements to animal welfare.
Looking forward
Through our DMA, we identified some additional material topics. Although partly covered, we identified the need to address certain ESRS topics more specifically in our targets, policies and ways of working. This includes sub-topic related to pollution, water and marine resources, biodiversity, circular economy, workers in the value chain and affected communities. We aim to develop our working methods, risk data quality and governance to support our transition away from commodities linked to negative impact on people and the planet.
2.8 Outlook
Reitan Retail aims to be a value-driven and innovative company committed to supporting the positive development of all its business areas. Reitan Retail has achieved solid value creation through long-term investments over many years. Reitan Retail continuously assesses opportunities for its businesses, and at the beginning of 2025, Reitan Retail has a strong financial position for further growth and development.
Oslo, May 14, 2025
Rune Bjerke Chairman of the Board
Magnus Reitan Board Member
Linda Hofstad Helleland Board Member Ole Robert Reitan CEO Siv E. Rosendahl Skard Board Member
Eilert Hanoa Board Member
Annika Sigfrid Board Member
At Reitan Retail, we recognise our responsibility to make everyday life easier while contributing to a more sustainable world. As a company operating in grocery, convenience and mobility, our actions impact millions of people daily. Sustainability is deeply integrated into our business, guiding how we source responsibly, reduce our environmental footprint and support social well-being. Collaboration is essential for lasting change, and we work closely with employees, customers, suppliers and partners to advance sustainability in retail.
tifying financial risks and opportunities, as well as our impacts on people and the environment. While this sustainability statement is inspired by the ESRS framework, it is not yet CSRD-compliant. As a large, nonlisted company, Reitan Retail falls under the second wave of companies subject to the CSRD. Although the EU decided in April 2025 to postpone the reporting obligations for this group, Reitan Retail views the publication of this report as a proactive step towards future compliance and enhanced transparency.
In 2024, we worked towards aligning our reporting with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), ensuring a more structured approach to iden-
Our sustainability strategy focuses on four key areas: Environment, Health, People and Value Chain. Looking ahead, we will continue to strengthen partnerships, invest in innovation and adapt to evolving regulations to reach our strategic targets. We are committed to halving emissions from all our products, making it easier for customers to make healthy choices in line with the Nordic nutrition guidelines, contributing to diversity and inclusion by creating safe and inclusive workplaces and ensuring that the products we offer are both traceable and responsibly produced. By continuing to integrate sustainability into our operations and strategy, we ensure long-term business resilience while reinforcing our role as a responsible and forward-thinking retail leader.
BP-1
3.1 ESRS 2 –General information
As sustainability reporting requirements evolve, Reitan Retail remains committed to ensuring the accuracy, reliability and integrity of our sustainability disclosures. We continue to move forward as a company, guided by our values and strong corporate culture, to ensure transparent and responsible reporting. In the year ahead, we will closely monitor regulatory developments to ensure alignment with emerging requirements and compliance with the updated Corporate Sustainability Reporting Directive (CSRD).
The scope of our sustainability statements align with our financial statements, encompassing our own operations as well as upstream and downstream elements of our value chain
Our sustainability statement is prepared on a consolidated basis, ensuring alignment with the financial reporting scope for 2024. This approach guarantees consistency in reporting and reflects our commitment to integrating sustainability into our overall corporate disclosures. Additionally, the sustainability statement fulfils the requirements set out in §2-2 The content of the Board of Directors’ report of the Norwegian Accounting Act.
In line with CSRD requirements, our sustainability disclosures are grounded in a double materiality assessment (DMA), capturing both actual and potential impacts on people and the environment, as well as financial risks and opportunities that may
affect the company’s development, performance and position.
The scope of our sustainability statement is aligned with our consolidated financial statements and encompasses our own operations, along with upstream and downstream elements of our value chain. This includes multiple tiers of suppliers, production facilities and processes, logistics and distribution, product use and end-of-life considerations — ensuring a comprehensive value chain perspective in accordance with the ESRS principle of full value chain reporting.
Sustainability at Reitan Retail
Our sustainability efforts are guided by our purpose to make everyday life a little bit easier and the world a little bit better. As a value-driven company, our values are in our DNA, and our value to keep high moral standards also embeds the sustainability aspect. Furthermore, it is an integrated part of our overall business strategy as one of our six strategic priorities, guiding us to “take a leading position in sustainability by making good choices easier”.
Our pathway to 2030 is defined through our sustainability strategy, focusing on four strategic focus areas: environment, health, people and value chain
Our strategic sustainability framework
Our pathway to 2030 is defined through our sustainability strategy, focusing on four strategic focus areas: environment, health, people and value chain. Each business area contributes to the strategy by defining aligned targets, developing action plans and monitoring the results in ways that are tailored to their relevant markets and stakeholders.
Like many other European companies, we are currently in a transition towards the new CSRD requirements, with the intention to fully adopt the standards for the 2025 financial year, to be reported in 2026, unless otherwise determined following the final outcome of the proposed Omnibus Directive. We are closely monitoring the evolving regulatory landscape to ensure timely and appropriate compliance.
As part of this preparatory work, we conducted a double materiality assessment (DMA) in 2024, which serves as a cornerstone for our sustainability disclosures and ongoing integration of ESG considerations into strategy and risk management. Through this full mapping of our value chain, we gained
a deeper understanding of both how our operation is impacting people and the environment and the most significant business risks and opportunities we face that arise from sustainability topics. Read more about our DMA in the upcoming section.
The double materiality assessment has largely confirmed our four strategic focus areas. We stand firm in our commitment to promote good public health, reduce greenhouse gas emissions, foster greater diversity and equality in working life and support more sustainable and transparent value chains. These priorities reflect both our values and the role we want to play in society. At the same time, the DMA pointed to areas where we can fine-tune our focus and sharpen our priorities to better meet expectations from customers, partners and future regulations alike. Some updates have already been made, and others will follow. As part of this work, we will review and adjust our goals and KPIs where needed. We continue to build on the targets that remain strategically important to both our business and to the communities we serve.
We aim to halve the emissions from all our products
We will simplify healthier choices, supporting the Nordic nutrition recommendations
We will contribute to diversity and inclusion and create safe workplaces
We must ensure that the products we sell are traceable and responsibly produced
Our value chains
Reitan Retail is a leading retail company in the Nordic and Baltic region with operations in discount grocery, convenience and mobility across seven countries. We are part of global value chains that involve more than 10,000 producers and suppliers. The value chain illustration shows a simplified version of our value chains, all the way from raw materials to the end consumer and outflow of resources.
Methodology and process
Our first double materiality assessment is based on the European Sustainability Reporting Standards (ESRS), and all 10 topics were identified as material to us. With a long and complex value chain influencing social rights and the environment in many parts of the world, we acknowledge our impact in all these relevant topics. By applying a threshold value, we have made a selection of the most material sub-sub topics from each topic to focus our work around. See an overview of our material sustainability matters on pages 68-75
Double materiality assessment process
A double materiality assessment means looking at sustainability issues from two perspectives and understanding both how we impact people and the environment, and how the sustainability issues impact our business financially. Furthermore, the analysis identifies which of these impacts are material, meaning which are of the greatest importance.
In our assessment, we both identified and assessed the double materiality of Reitan Retail’s own operations and our value chain. We focused on specific activities
Our four-step approach included:
We started by building a clear picture of our business – how we operate, who we impact and the regulations that shape our work. This included internal and external analysis, media review and interviews, to ground the process in our real-world context.
mapped a wide range of potential sustainability topics based on ESRS guidance and Reitan Retail’s specific business model. For each topic, we identified possible impacts, risks and opportunities (IROs) across our value chain — from suppliers to operations to customers — supported by desktop research and dialogue with stakeholders.
IROs
has been documented. Final validation by management and the Board is planned for 2025.
where sustainability impacts are most significant. Within the value chain, we primarily focused on upstream activities and prioritised first-tier suppliers.
Our methodology has been developed with reference to the principles outlined in the ESRS and available guidelines, following four main steps of an established process provided to us by a third party. The process steps ensure a structured and robust assessment for both impact materiality and financial materiality. The impact assessment served as the foundation for our analysis, and once preliminary results were obtained, we proceeded with the financial assessment.
In our assessment of impacts on people and the environment (I), we considered both positive and negative impacts, as well as actual and potential impacts. In our assessment of financial impacts, we considered both risks and opportunities (RO) with financial effects for our business. The basic process is illustrated below.
Impact materiality
Once the initial assessment and identification of impacts, risks and opportunities (IROs) were concluded, a quantitative approach to scoring the IROs according to materiality was used. Following ESRS guidance, we
applied four parameters to assess the severity of actual sustainability impacts, namely scale, scope, severity and likelihood. The scales range from one to five, with qualitative descriptions for each criterion. In 2024, our scoring takes into account initiated actions to mitigate or reduce negative impacts. In 2025, we will further refine our process and methodology based on new EFRAG guidance.1
Financial materiality
As part of our CSRD preparations, we conducted an initial high-level assessment of potential sustainabilityrelated financial risks and opportunities, distinguishing them from traditional business risks. However, this assessment represents the first step in a broader process that will require further refinement and comprehensive quantification of financial risks. In 2024, our scoring takes into account initiated actions to mitigate or reduce risks. In 2025, we will further refine our process and methodology based on new EFRAG guidance. As the analysis evolves, financial materiality findings may be subject to change.
Our risk assessments are based on the same materiality thresholds used in financial reporting, ensuring consistency in evaluating financial significance.
Timeline of process
September 2023
Internal kick-off DMA
Workshop in Oslo with all business areas represented. The purpose was to understand and map the value chain and discuss impacts and risks from a double materiality perspective.
August 2023 - February 2024
Finalising the review of Reitan Retail’s sustainability strategy
Aligning with legislation, updated operational results and discussions on priorities. Reshaping targets, baselines and key performance indicators.
March 2024
Making commitments
Annual Reitan Retail staff day in Oslo to inspire and raise awareness of our sustainability commitments and responsibility role in society.
August – September 2024
Gap analysis of existing IROs
Conducted a high-level gap-analysis of existing IROs to determine whether or not more impacts and risks and opportunities should be included.
October - November 2024
Adding and modifying IROs
New IROs added to the longlist and initial IROs modified based on information from stakeholder dialogues, external desk-top research and other relevant sources.
October 2024
Pre-audit of DMA Method carried out by external third party.
December 2024
IRO reviews by internal SMEs
The findings from the analysis were validated by relevant internal subject matter experts. A written summary of identified IROs incl. likelihood and severity-score was circulated followed up with an explanatory meeting explaining scoring methodology, thought processes and to align thresholds when new resources were introduced.
February 2024
Validation and approval
Management and Board validation and approval of Reitan Retail’s updated sustainability strategy.
December 2023 - August 2024
Support systems and preparations
Preparation on the double materiality assessment, setting up support systems and continue to map risks and impacts related to value chains and desk-top analysis.
August - October 2024
External stakeholder dialogue
Based on internal input and the high-level gapanalysis of existing IROs, Reitan Retail initiated stakeholder dialogues to collect more information on specific topics. In total, eight external stakeholders were interviewed. The topics and questions were aligned with the standards in ESRS. Additionally, Reitan Retail carried out internal interviews with relevant employees from different business areas.
June-August 2024
External stakeholder analysis
Identification of relevant internal and external stakeholders.
Business Areas provided inputs on relevant external stakeholders.
November - December 2024
Adjustment of IROs
IROs and DMA scores were adjusted in line with SMEs input on wording, scoring and recommended adjustments.
November 2024
Initial scoring and analysis
Subject matter experts (SMEs) from business areas and some management functions were provided with information on the DMA-process during a two-day workshop, status to date and preliminary findings with number of impacts, risks and opportunities identified so far. Financial thresholds aligns with thresholds used in Reitan Retail’s finance group for defining financial materiality.
Spring 2025 Management and Board validation and approval Management and Board will validate the results from the double materiality assessment.
Stakeholder input
As a retailer operating 3,500 sales outlets, employing 46,000 people across seven countries and with more than 10,000 suppliers in our value chain, active engagement with our stakeholders is a fundamental aspect of our sustainability work. The engagement of both internal and external stakeholders ensures that we push ourselves by setting ambitious targets and that we develop the required strategies, business models and action plans to reach them. In 2024, internal and external stakeholders have been a critical factor in conducting our double materiality assessment (DMA). By maintaining an open and transparent dialogue with our stakeholders, we ensure that our business strategy remains dynamic, responsible and aligned with the needs of the people and communities we serve.
Our most significant stakeholder groups may be split into internal and external stakeholders. The internal stakeholders include our own workforce, hereunder the employees and the franchisees. The external stakeholders are a more diversified group, including suppliers, value chain workers, affected communities, consumers and end users and media and decision-makers. The table below showcases these
groups, as well as how engagement is organised, and the purpose of and outcome from engagements.
As part of our DMA in 2024, we identified key stakeholders for involvement. The stakeholder dialogue consisted of some individual interviews with external stakeholders, as well as group interviews and workshops with internal stakeholders. Among the external stakeholders, we involved suppliers. With a global and complex supply chain, supplier dialogue provides critical insights into risks and opportunities we are not exposed to in daily operations. Among internal stakeholders we involved the sustainability teams, together with key resources from procurement, category, finance, communication, HR and executive management.
An in-depth stakeholder dialogue was carried out to gather targeted input on topics such as living wages, working conditions, water challenges, biodiversity, biofuels, energy and animal welfare. These insights informed our DMA and secured the focus of our Policy on responsible procurement. You can read more about these topics in the Environment and Social chapters.
Own Workforce:
• Employees
• Franchisees
• Via annual engagement, inclusion and workplace evaluation surveys
• Employees & franchisees can raise concerns through our online whistle-blower system
Value chain workers
• Interviews and surveys
• Addressing suppliers and producers
• Foster a collaborative and meaningful workplace
• Include employees’/ franchisees’ input into development of support services, recruitment and education
• Convey important information from internal processes and analyses conducted
• Improved and engaged business culture
• Best Place to Work (REMA) in 2024
• Updates of internal policies
• Improved health and safety performance
Affected communities
• Via visits at local producers, such as coffee farms in Brazil (REMA)
• Via NGOs with specific focus on local affected community and/ or specific topics
• Developing fair labour practices and sustainability initiatives
• Addressing workers’ rights and concerns
• Increased focus on labour conditions across the value chain
• Intensified work on due diligence and risk assessments
• Developing community engagement and support programmes
• Addressing social and environmental impacts
Consumers and end-users
• Via customer feedback surveys, data and online reviews
• Data through system sales
• Understanding consumer needs and preferences
• Ensuring products meet sustainability standards and consumer expectations
Media and decision makers
• Via meetings, briefings and public events
• Annual and sustainability reports, social media reach, etc.
• Maintain transparent communication
• Pushing financial, political and media stakeholders towards high sustainability ambitions
• Upholding our duty to keep the public informed of all ESGrelated information
• Understanding the importance of alignment of business operations with community needs and environmental standards
• Understanding of the challenges with minimum living wages, water management and housing
• Enhanced product sustainability and customer satisfaction
• Transforming assortments and products sold
• Shaping marketing and purchase
• Showcased specific issues such as slowly growing chicken breeds, Nordic eating-habits and the nutrition recommendations, economic incentives for producing red meat, etc.
• Responses to public queries
• Aligning communication of our sustainability strategy to regulators, financial stakeholders and the public
Suppliers
• Via supplier audits
• Via annual ESG reports
• Via the supplier code of conduct
• Day to day correspondence
• A continual dialogue with our suppliers is critical to maintain our sustainability targets
• Monitor our suppliers’ ESG progression to assist in the assessment of ESG risks and pinpoint suppliers who demonstrate best practices
• Managed supplier expectations
• Ensuring suppliers adhere to our business conduct standards and maintain the collaborative decarbonisation progression we have together
Stakeholder group How engagement is organised Purpose of engagements Outcomes from engagements
SBM–3 Material impacts, risks and opportunities and their interaction with strategy and business model
Our material sustainability matters –outcome of DMA
Through our double materiality assessment (DMA), we first developed a long list, consisting of 97 impacts and 48 financial impacts. When assessing the materiality of the impacts, risks and opportunities (IROs), we found that 80 impacts and eight sustainability-related risks and opportunities are identified based on our material thresholds. Relatively few of our financial impacts are deemed material, and this is largely due to our diversified portfolio of companies. The fact that we have operations across different geographic markets and sectors helps mitigate the severity of sustainability-related risk.
When considering the big picture, we find that all 10 ESRS topics are material to us. The illustration below lists the
sustainability-related impacts, risks and opportunity we have identified and assessed as material through our double materiality assessment process.
Although all 10 ESRS topics are material, the IROs are not spread evenly. E1 Climate change, S2 Workers in the value chain and G1 Business conduct stand out with the highest number of identified IROs. The following table provides a more detailed view, where each material topic is split into sub-topics and then mapped with our material and non-material IROs. E1 Climate change is, for example, split into the three sub-topics climate change mitigation, climate change adaptation and energy
We aim to halve the emissions from all our products We will simplify healthier choices, supporting the Nordic nutrition recommendations We will contribute to diversity and inclusion and create safe workplaces We must ensure that the products we sell are traceable and responsibly produced
Sustainability topics
Our DMA highlights key environment, social and governance-related impacts, risks and opportunities. Further descriptions and information on these IROs can be found in the topical sections under Environment, Social and Governance, see pages 74-75.
Environment: One of the most significant environmental impacts we face is carbon emissions across our value chain, accounting for a large share of our footprint. Our operations contribute to emissions from transportation, packaging and food waste. Additionally, deforestation linked to certain food commodities and plastic waste from packaging pose challenges that require proactive mitigation.
At the same time, we see opportunities to drive change. We are already seeing great progress towards our goal to reduce food waste by 50 percent by 2030, particularly within REMA 1000 Norway, where food waste has been cut by 44 percent since 2015. Similarly, investments in renewable energy are paving the way for a cleaner retail sector. By collaborating with suppliers on transitioning to low-carbon supply chains and on circular packaging, we can improve efficiency and meet growing consumer demand for better alternatives.
However, the risks remain significant. Regulatory changes, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and deforestation-free supply chain regulations (DR), will require increased traceability and reporting. Physical climate risks, including extreme weather events and water scarcity, could disrupt supply chains, leading to price volatility and operational disruptions. Moreover, our reliance on virgin materials and fossil-based resources poses both financial and reputational risks, requiring urgent action to transition towards circular business models.
Moving forward, we will continue to strengthen our environmental strategies, focus on climate adaptation and mitigation and ensure that sustainability is embedded in every aspect of our business. By taking responsibility today, we strengthen our resilience and prepare ourselves for the future.
Social: Among our most important social impacts is our ability to create jobs and foster inclusion. With over 46,000 employees and over 10,000 suppliers, we generate employment and contribute to local economies. We strive to ensure equal opportunities and fair working conditions, particularly for marginalised groups and part-time workers. Additionally, as a major retailer, we influence public health through the availability of healthier and more responsibly produced food options.
At the same time, we see opportunities to strengthen social responsibility. Through initiatives like affordable and accessible healthy food, we aim to promote better diets and combat lifestyle-related diseases. Investments in employee development, such as training programmes and leadership academies, enhance career growth and engagement. Our partnerships with grassroots sports organisations and community initiatives strengthen our and our franchisees’ role as positive forces in the local communities.
However, social risks remain a challenge.
Working conditions in the supply chain, particularly in high-risk sectors such as agriculture, pose concerns regarding living wages, discrimination and workers’ rights. While collective bargaining is standard in many of our operating countries, regions like the Baltics have weaker labour protections, creating risks for wage disparities and worker representation. Gender imbalance is another area requiring attention, with certain business segments showing low representation of women in leadership roles. Additionally, misleading marketing practices in product labelling and health claims could lead to reputational and regulatory risks.
Moving forward, we will strengthen social impact strategies, enhance worker protections and ensure equitable access to opportunities across our operations and supply chain.
Governance: At Reitan Retail, responsible governance is key to ensuring compliance, strengthening resilience and fostering trust. Corporate culture and ethical conduct form the foundation of our business. As a family-owned company, we emphasise ethical leadership and accountability, engaging with over 10,000 business relationships and two million daily customers. Ensuring fair and transparent procurement is another priority, requiring continuous due diligence to uphold ethical sourcing standards. While our Responsible procurement policy is being implemented, further improvements are needed to close internal knowledge gaps.
Political engagement plays a vital role in shaping a sustainable consumer market. We actively collaborate with policymakers on food waste, animal welfare and electrical mobility while maintaining transparency in advocacy to align with our corporate values.
Among the key risks identified, regulatory challenges such as the EU’s CSDDD pose increasing compliance and operational burdens. Strengthening governance frameworks will be critical in adapting to these changes. Corruption and bribery risks within our global supply chain require strict enforcement of due diligence measures and anti-corruption policies. Cybersecurity is an ongoing priority as we protect financial transactions, consumer data and supply chain integrity. Additionally, health and safety risks demand rigorous protocols to prevent incidents and regulatory penalties.
To stay ahead, we will enhance governance frameworks, improve supply chain transparency and continue engaging with regulators. By remaining true to our values, we are committed to making everyday life easier and the world a little bit better.
Conclusions and next step
It has been a comprehensive and strategic effort to identify and assess our material impacts, risks and opportunities. It started as a top-down exercise but changed into a bottom-up process as insights and engagement from across the organisation shaped the findings. While this has strengthened our understanding of material impacts, we recognise the need for further internal alignment and integration within the company, leadership and Board of Directors.
As we move forward into 2025, our focus will increase on incorporating sustainability into our business activities. This includes better alignment with strategic planning, governance and operations, thereby ensuring sustainability is an integrated part of decision–making at all levels. Strengthening local ownership will be a priority, fostering a culture where sustainability is fully embedded in daily operations and long-term business strategies.
To maximise the impact of our materiality assessment, we will establish structured mechanisms for continuous monitoring, evaluation and adaptation. This includes incorporating findings into our management decisions, developing and improving action plans for key material topics and refining processes to enhance responsiveness to evolving risks and opportunities.
Reitan Retail is committed to an annual reassessment of our DMA, ensuring it remains dynamic and reflective of emerging trends, regulatory shifts and changes in the external environment. Periodic comprehensive reviews will further refine the framework, allowing us to proactively adapt to future challenges and opportunities while maintaining a strong foundation for responsible growth.
Sustainability governance
The role of the administrative, management and supervisory bodies
The highest-level management position responsible for sustainability-related issues is the Group CEO, and the Corporate Management Board has a collective responsibility to deliver upon the sustainability goals for Reitan Retail.
Responsibility and long-term business development are integral to our strategic planning, overseen and followed up by both the Corporate Management Board and the Board of Directors. Follow-up and analysis of how the business develops take place at different levels and with different frequencies. The Board of Directors reviews the status of the sustainability targets and follows up on progress and governance on a regular basis.
On a more operational level, regular status meetings and quarterly sustainability forums are held with sustainability managers in the business areas together with the group head of sustainability, group ESG controller and other relevant contributors. These forums represent arenas for sharing knowledge and best practices, as well as collaborating across business areas and geographical borders. In addition, the forums provide guidance on policy orientation and strategic activities in the respective business areas to their management groups and Boards of Directors.
In 2024, we took an important next step within our efforts to integrate climate into our governance and reporting structure further by integrating our climate emission prognosis and action plans with our financial business planning and forecasting. By aligning sustainability and business plans, we gain a crucial management tool that allows us to improve our action plans and reduce our emissions.
Governing documents
We aim to build policies, procedures and robust training programmes anchored to all material ESG topics. Our policies are based on our strategic priorities, severity and likelihood of negative and positive impacts, consideration of input from stakeholders and relevant regulations such as the OECD Policy guidelines for multinational enterprises and national and European legislations.
We operate based on a structured set of governance documents that ensure responsible business practices while enabling decentralised decision-making. These documents outline mandatory requirements for Reitan Retail AS, all subsidiaries and employees, providing a clear framework for ethical and sustainable operations. Each business area adapts these requirements to its specific entity, organisational unit or market.
At the core of our governance structure is the Code of conduct, which reflects our values and applies to everyone working on behalf of Reitan Retail and our subsidiaries. Compliance with the Code of conduct is handled by the Corporate Management Board, and deviations are raised to the Board of Directors.
To uphold integrity and accountability, all employees have access to our whistleblowing function to report potential breaches of the Code confidentially. Take part in our governance documents on our website.
Governing documents
• Code of conduct
• Supplier code of conduct
• Anti-corruption and anti-money laundering policy
• Whistleblowing process
• Responsible procurement policy
Integration of sustainability-related performance in incentive schemes
At Reitan Retail, sustainability is an integral part of our business strategy, as one of six strategic priorities. To ensure focus and progress on strategically important areas, a key performance indicator (KPI) scorecard is developed on an annual basis to identify the top priorities. Furthermore, the executive remuneration and compensation structure is connected to the performance on the KPIs. In 2024, the scorecard consisted of four financial and seven operational KPIs. Two of these seven operational KPIs are sustainability related, particularly focusing on the climate impact and diversity.
The sustainability-linked KPIs include:
Strengthening and implementing the Climate Action Plan (CO₂ emissions) – Integrating the climate action plan into business planning towards 2028 and ensuring execution in line with the emission reduction roadmap.
Gender balance in top and middle management positions – Ensuring at least 40 percent representation per gender in recruitment and promotions.
The Board of Directors’ approval of sustainability-linked performance incentives ensures that Reitan Retail’s long-term sustainability commitments are integrated into leadership accountability and decision-making. New sustainability KPIs have been added to the 2025 KPI scorecard.
Statement on due diligence
Reitan Retail is committed to responsible business practices and continuous improvement in supply chain transparency and risk mitigation. Due diligence is an integral part of our governance framework, ensuring that we identify, assess and mitigate sustainability-related risks and impacts across our operations and value chain. Our approach aligns with the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights and the requirements set forth in the Norwegian Transparency Act (Åpenhetsloven).
The due diligence framework is embedded in the supplier Code of conduct, Policy on responsible procurement, risk management and ESG reporting.
Six Steps of Due Diligence
Identify and assess actual and potential adverse impacts
Reitan Retail works to strengthen our due diligence processes by improving our ability to identify and mitigate potential negative impacts within our operations, supply chains and business relationships. We are actively working to enhance our systems, ensuring we have the necessary tools and data sources to conduct thorough risk assessments of suppliers, production sites and commodities.
To reinforce this commitment and drive accountability across the organisation, we will introduce a KPI in 2025,
“Ensure responsible procurement,” as part of our KPI scorecard. This KPI will serve as a key accountability measure, ensuring that supplier mapping is completed and that a robust risk assessment framework is fully integrated into our procurement processes.
Cease, prevent or mitigate adverse impacts
When risks are identified, Reitan Retail takes action by engaging with suppliers, improving procurement practices and implementing corrective measures to prevent or mitigate negative impacts across our operations and value chain.
Track implementation and results
Reitan Retail aims to strengthen the monitoring of our due diligence processes by enhancing audits, supplier assessments and KPIs to ensure that identified risks are effectively addressed and managed.
Communicate how impacts are addressed
We publicly disclose our due diligence efforts, including actions taken to mitigate risks, through sustainability reports and dedicated disclosures, in line with regulatory and stakeholder expectations.
Provide for or cooperate in remediation
If Reitan Retail causes or contributes to adverse impacts, we are committed to remediation, which may include compensation, policy adjustments or grievance mechanisms to ensure responsible business conduct.
Reitan Retail’s Board of Directors oversees the due diligence process, ensuring that sustainability risks are embedded into corporate decision-making and that we continuously improve our governance and compliance mechanisms.
In 2024, our efforts were reinforced by the adoption of the Reitan Retail Policy on responsible procurement, which was developed to strengthen our approach to human rights, labour rights and environmental due diligence. This policy provided a unified framework for responsible procurement, outlining stricter requirements for suppliers and enhancing mechanisms for risk assessment, mitigation and follow-up. It also
Reitan Retail is committed to responsible business practices and continuous improvement in supply chain transparency and risk mitigation
improved transparency by ensuring that suppliers upheld internationally recognised human rights and environmental standards in line with our Supplier code of conduct and regulatory obligations.
The implementation process in 2024 included structured engagement with suppliers, the introduction of enhanced due diligence procedures and the integration of risk-based supplier assessments across our business areas. The Board of Directors formally adopted the Responsible Procurement Policy in 2024, making it an integral part of our governance framework. As part of the rollout, we conducted supplier audits, strengthened grievance mechanisms and enhanced reporting on supply chain risks and mitigating actions.
Governance and oversight
Findings from the due diligence process under the Norwegian Transparency Act were reported to Reitan Retail in 2024, along with specific mitigating actions for identified risks. To ensure ongoing oversight and accountability, overall risk assessments and the evolution of identified risks remained fixed agenda points in board meetings at Reitan Retail AS, as well as in our four business areas. This governance structure ensured that risk mitigation efforts were embedded across all levels of our organisation.
For more information about our Supply chain risk assessment on human rights and decent working conditions, see Chapter S2, Workers in value chain.
Climate change
At Reitan Retail, we strive to operate in a way that ensures responsible retailing, including minimising our environmental footprint. We work continuously to reduce emissions across our operations and value chain, taking concrete steps to improve energy efficiency, optimise logistics and promote responsible sourcing in all our business areas. Through these targeted actions, we contribute to the broader transition towards a low- carbon economy. Our sustainability efforts are anchored in science-based targets.
Our governance structure ensures that our climate ambitions are embedded in our decision-making processes. Read more about our work under ESRS 2 General information.
Beyond our own operations, we actively engage with stakeholders, including suppliers, partners and policy-makers, to accelerate sustainable solutions in line with the goals of the Paris Agreement. Transparency and collaboration are essential to our approach, ensuring that we drive industry-wide change while maintaining high ethical and environmental standards.
We recognise the need for greater accountability and disclosure on climate-related issues. As part of
our commitment, we align our reporting with leading frameworks such as the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and the Task Force on Climate-related Financial Disclosures (TCFD).
Through continuous innovation, responsible procurement and stakeholder engagement, we are dedicated to making everyday life a little bit easier and the world a little bit better.
Material impacts, risks and opportunities
At Reitan Retail, we strive to operate in a way that ensures responsible retailing, including minimising our environmental footprint
Throughout the process of Reitan Retail’s double materiality assessment (DMA), 11 impacts and 4 risks and opportunities were identified as material within the framework of ESRS E1 – Climate Change. As part of this assessment, the three sub-topics Climate Change Mitigation, Climate Change Adaptation and Energy were accordingly evaluated. The findings provide a structured foundation for understanding our material climate-related challenges and opportunities, which are further detailed below.
The impact identified relates to the need for agricultural supply chains to adapt to changing climate conditions. Rising temperatures, extreme weather and shifting precipitation patterns threaten key commodities such as coffee, tea and cocoa, requiring new farming practices, supply chain diversification and responsible sourcing strategies. While adaptation measures, such as crop diversification, regenerative agriculture and supplier partnerships can enhance resilience, they also pose environmental and socio-economic challenges, including potential displacement of farming communities and higher production costs.
The ongoing electrification of road transport presents a financial opportunity for Reitan Retail. Regulatory changes and growing demand for low-emission mobility drive investments in EV infrastructure. By expanding its charging network and reallocating capital from fossil fuels, Reitan Retail is adapting its business to a low-carbon future while capturing new revenue potential.
The same climate changes that affect food systems and commodity availability also pose significant risks to Reitan Retail’s supply chains, infrastructure and operations. Increasing scarcity and the vulnerability of key crops are driving up procurement costs, causing supply shortages and heightening price volatility. As climate conditions become increasingly unpredictable, ensuring stable and reliable sourcing of commodities is becoming more difficult, escalating both financial and operational risks.
Reitan Retail’s operations and value chain generate significant greenhouse gas (GHG) emissions, with both direct (Scope 1 and 2) and indirect (Scope 3) emissions contributing to climate change. The total emissions in Reitan Retail in 2024 were 9.0 million tCO₂.
With 99.5 percent of total emissions falling under Scope 3, Reitan Retail’s climate impact is primarily driven by indirect emissions from upstream and downstream activities in the value chain. Upstream emissions result from the procurement of goods and services, transportation and distribution, business travel and waste management, reflecting the embedded carbon footprint of sourcing, logistics and operational processes. Downstream emissions are primarily linked to product distribution, customer use of sold products and the products’ eventual disposal, making these categories the dominant contributors to Reitan Retail’s overall emissions profile.
Uno-X Mobility, as a provider of fuels, represents a major contributor to downstream Scope 3 emissions, with approximately 80 percent of its total Scope 3 emissions stemming from the use of sold products in private and commercial transport. Additionally, 20 percent of its Scope 3 emissions come from the fossil fuel value chain upstream, including production, refining and distribution.
As a supplier of fossil fuels in Norway and Denmark, Uno-X Mobility is shifting its focus towards supporting low-emission road transport solutions, including the expansion of ultrafast charging infrastructure for both passenger and heavy-duty vehicles. With strategic investments in charging networks, the company is enabling the broader transition to electric mobility, contributing to long-term climate goals by facilitating the uptake of lower-emission transport alternatives.
Evolving sustainability regulations may require operational adjustments, potentially leading to increased expenses. The EU Corporate Sustainability Due Diligence Directive (CSDDD), which has been approved but is currently subject to a revised proposal, will mandate comprehensive due diligence on environmental and human rights issues, imposing stricter compliance requirements. Similarly, the updated Packaging and Packaging Waste Directive will require greater use of reused and recycled packaging materials, increasing costs associated with sourcing and production. Additionally, the Deforestation-Free Supply Chains Regulation (DR) will demand verifiable proof that specific products have not been produced on deforested land.
Climate change adaptation
Climate change mitigation
A potential lack of reliable electricity supply presents a financial risk to Uno-X Mobility’s growth strategy, potentially leading to lost revenue opportunities and disruptions in planned expansion. This risk stems from both potential limited grid capacity and delays in infrastructure development necessary for electricity distribution. Without secure and predictable access to power, Uno-X Mobility may experience constraints in delivering charging services to customers, thereby hindering its ability to scale operations in line with strategic objectives.
Our approach and policies
Reitan Retail’s approach to decarbonisation is anchored in a structured and science-based methodology, ensuring that climate action is integrated across our operations and value chain. Our climate strategy aligns with the European Sustainability Reporting Standards (ESRS) and is built upon clear policies, robust governance structures and transparent reporting mechanisms. Reitan Retail is addressing the climate challenge through collaborations with suppliers and industry stakeholders to promote climate-resilient food systems and mobility solutions.
Greenhouse gas (GHG) emissions, including carbon dioxide (CO₂), methane (CH₄) and other climate gases, are reported according to the GHG Protocol. We have set ambitious GHG reduction targets, covering Scope 1, 2 and 3 emissions, in line with the Paris Agreement and Science-Based Targets initiative (SBTi). These targets drive
our efforts in energy efficiency, supply chain engagement and responsible procurement. Our efforts include operational decarbonisation and developing more sustainable supply chains.
We are implementing energy efficiency measures, transitioning to renewable energy and phasing out fossil fuel reliance across our logistics and retail operations.
Through supplier engagement and our Supplier code of conduct, we require partners to adhere to stringent environmental standards, promoting low-carbon production and responsible sourcing.
Climate risk management is essential to ensuring the long-term resilience and adaptability of our business. Understanding both physical and transition risks posed by climate change enables us to make informed decisions, safeguard operations and value chains and position ourselves to respond to regulatory, market and environmental shifts. By proactively identifying and addressing these risks, we strengthen our strategic foundation and support a just transition to a low-carbon economy. We conducted a comprehensive assessment of climate-related risks and opportunities in 2023. A light review of our findings found them to still be applicable in 2024. We assess and mitigate climaterelated risks, ensuring long-term resilience in our operations and value chain. The full TCFD report is here.
At Reitan Retail, climate targets are integrated into our corporate strategy, influencing performance measurement and executive remuneration. The Corporate Management Board is evaluated based on a KPI scorecard, which includes climate-related targets. In 2024, the climate KPI focused on implementing the Climate action plan by embedding it into business planning toward 2028 and ensuring alignment with our long-term emission reduction ambition.
The Board of Directors’ approval of climate-linked performance incentives strengthens leadership accountability and decision-making. This aligns with ESRS GOV-3 and ESRS 2 GOV-3-E1, ensuring transparency on how climate performance influences incentive structures while reinforcing governance accountability.
Through these policies and initiatives, Reitan Retail is committed to decarbonising its value chain, reducing climate impact and enabling a transition towards a low-carbon and more sustainable retail sector.
Targets
We are committed to a science-based, long-term climate strategy with ambitious targets to reduce GHG emissions across our operations and value chain.
As part of our alignment with ESRS E1 Climate Change, we commit to setting additional targets for material climate-related impacts, risks and opportunities (IROs) identified through the DMA that are not already addressed by our existing targets. These targets will be designed to reduce environmental impact and strengthen climate resilience across our business and value chain.
To ensure transparency and accountability, we track and report progress annually and will continuously refine our approach in line with emerging CSRD requirements, ensuring that our climate targets remain science-based, robust, measurable and relevant.
TARGET
By 2030 we aim to achieve climate neutrality in our own operations (Scopes 1 and 2) and halve the emissions from the products we sell or at least reduce Scope 3 emissions by 43 percent. By 2050, our goal is to reach netzero emissions across our entire value chain, aligning with the Paris Agreement and the 1.5°C global warming limit.
Actions taken in 2024
In 2024, we took significant steps to advance our climate ambitions. We established a comprehensive action plan to drive emission reductions towards our 2030 targets and, for the first time, integrated emissions from product sales into our financial business plan extending to 2028. These initiatives are embedded in our CEO Management KPI Scorecard, directly influencing the remuneration framework for the CEO and Corporate Management Board, reinforcing accountability for climate progress.
TARGET
To support a more sustainable food system, we are committed to cutting food waste by 50 percent by 2030, reducing environmental impacts across our supply chain. In addition, we aim for at least 30 percent of the energy we sell for road transport to be renewable by 2030, reducing emissions from our mobility sector. Read more about the transition from fuel to renewable energy in S4 Consumers and end-users. By prioritising circular economy solutions, we target 100 percent of all packaging to be recyclable by 2030.
Furthermore, we have accelerated our efforts to reduce emissions in our own operation and our value chain, strengthened circularity and resource efficiency, as well as improved our reporting and governance. All actions align with Science-Based Climate targets. Read about our actions below.
The greenhouse gas accounting for 2024 reveals total emissions of 9.0 million tonnes CO₂, representing a 9 percent reduction from the 2022 baseline.
Operational decarbonisation
The emission reduction in Scopes 1 and 2 in 2024 compared to 2023 is 25 percent, achieved by implementing several key initiatives across our sales outlets, logistics and corporate operations.
Increased renewable energy adoption: We have expanded the use of solar panels across store locations and distribution centres, reducing reliance on fossilfuel-based electricity.
Energy efficiency improvements: We have upgraded cooling and lighting systems in stores and warehouses, implementing LED solutions and AI-driven energy management systems to cut energy consumption.
Low-emission logistics: We introduced electric and biofuel-powered delivery vehicles, reducing emissions from transportation. The first fully electric supply chain route is now operational in select regions.
Sustainable store development: New and renovated stores in 2024 follow strict energy- efficiency standards. The company works actively to reduce its carbon footprint and ensure responsible resource use in property development through energy optimisation, environmental certifications and circular economy initiatives.
The consumption of energy sources for stationary combustion decreases due to a better understanding of the data, leading to m ore accurate reporting. There has also been a gradual phase -out of stationary combustion for heating as more energy -efficient systems, including the reuse of excess heat within business operations, have been implemented. Also, there has been a shift away from stationary combustio n toward district heating and self -produced energy. Consumption in 2023 includes emissions from several ALD I stores that were closed in 2024 and are set to reopen in 2025, likely leading to an increase in energy consumption from 2024 levels. Combined with weather variations affecting heating and cooling needs, this results in fluctuations in total energy consumption.
1Biomass also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc. 2Energy includes electricity, heat, steam, and cooling
There is a notable reduction in fossil energy use and a shift toward renewable sources, driven by changes in the energy mix f or electricity and district heating in Reitan Retail's operating countries. While the share of nuclear power remains relatively stable, total en ergy consumption decreases due to lower overall usage. Additionally, self -generated renewable energy increases significantly, reflecting a stronger focus on independent energy production. A rebound in energy consumption is expected in 2025 as previously closed ALDI stores reopen.
More sustainable supply chains
Recognising that Scope 3 emissions form a significant part of our climate footprint, we intensified our engagement with suppliers and partners to achieve measurable emission reductions throughout the supply chain. In 2024, the following measures contributed to a nine percent decrease in emissions compared to 2023.
Scaling electric and low-emission logistics: The rollout of electric trucks for store deliveries in urban areas has cut transport-related emissions, with a measurable decrease in fuel consumption across pilot routes. Additionally, the introduction of double trucks for regional distribution has increased load efficiency, reducing the number of trips required and further lowering fuel consumption and emissions.
Shifting assortment and promoting more climate-friendly choices: REMA 1000 and Reitan Convenience have actively adjusted their product offerings and engaged consumers in more sustainable choices. REMA 1000 Denmark introduced minced meat
blended with vegetables, a top-seller product innovation that reduces emissions while enhancing nutritional value. In all markets, plant-based selections are expanded, featuring new protein-rich alternatives and dairyfree options, highlighted through targeted marketing campaigns and in-store promotions. Reitan Convenience has intensified the sales of less carbon-intensive meal options, including all plant-based sandwiches and chicken hot dogs while strengthening partnerships with suppliers to source more sustainable ingredients.
Supplier collaboration on climate-friendly sourcing: By working closely with key suppliers, we have increased the share of plant-based protein and lower-emission animal proteins such as chicken in our assortment, reducing the overall carbon footprint of our product mix.
Packaging optimisation: Adjusting packaging sizes and reducing plastic use have led to lower material consumption and reduced emissions across production and transport. In certain product categories, pack sizes have been reduced from 500g to 400g, with a corresponding price reduction.
Scope 3 break
Food waste reduction through dynamic pricing: Implementing AI-driven discounting and expanding third-party surplus food sales platforms has led to a reduction in store-level food waste, directly cutting methane emissions from landfills.
Scope 3 break down of category 1 - Purchased goods and services
These are examples of how we are moving from commitment to execution, delivering concrete emissions reductions throughout 2024 while continuing to push for broader value chain decarbonisation.
A detailed analysis and comprehension of Scope 3 emissions within the purchased goods and services category are
1 Breakdown of processed meat
2 Norsk Kylling and Stanges Gårdsprodukter, subsidiaries of REMA 1000 Norway, are the
2 Norsk Kylling and Stanges Gårdsprodukter, subsidiaries of REMA 1000 Norway, are the main providers of white meat in REMA 1000 's systemwide stores in Norway. According to GHG Protocol, tCO 2e from these subsidiaries are accounted for in Scope 1 and 2 in their respective carbon accountings. As subsidiaries, their emissions, across all scopes are accounted for in accordance with the operational control methodology defined by the protocol. Production of their products are excluded from the calculation of Reitan Retail’s product assortment to avoi d double counting. Therefore, the emissions from Norsk Kylling and Stanges Gårdsprodukter need to be included with the emissions from the third -party products to accurately reflect the total emissions from the sale of white meat products.
stores in Norway. According to GHG Protocol, tCO 2e from these subsidiaries are accounted for in Scope 1 and 2 in their respective carbon accountings. As subsidiaries, their emissions, across all scopes are accounted for in accordance with the operational control methodology defined by the protocol. Production of their products are excluded from the calculation of Reitan Retail’s product assortment to avoi d double counting. Therefore, the emissions from Norsk Kylling and Stanges Gårdsprodukter need to be included with the emissions from the third -party products to accurately reflect the total emissions from the sale of white meat products.
2 Norsk Kylling and Stanges Gårdsprodukter, subsidiaries of REMA 1000 Norway, are the main providers of white meat in REMA 1000 's systemwide stores in Norway. According to GHG Protocol, tCO 2e from these subsidiaries are accounted for in Scope 1 and 2 in their respective carbon accountings. As subsidiaries, their emissions, across all scopes are accounted for in accordance with the operational control methodology defined by the protocol. Production of their products are excluded from the calculation of Reitan Retail’s product assortment to avoi d double counting. Therefore, the emissions from Norsk Kylling and Stanges Gårdsprodukter need to be included with the emissions from the third -party products to accurately reflect the total emissions from the sale of white meat products.
6
4
The base year for emissions reductions is 2022. For Scope 1 and 2 combined the reduction in emissions in 2024 compared to 202 3 is 25 percent while the reduction compared to the base year is 32 percent. For Scope 3 the reduction in emissions in 2024 compared to 2023 is 9 percent while the reduction compared to the base year is 9 percent. These figures account for restatements provided on page 165.
Going forward, we will break down our targets and define milestones for each material category on our path to 2050. GHG emissions data is verified by PwC - PricewaterhouseCoopers AS, based on limited assurance in accordance with the ISAE 3410 standard. A verification statement can be found on page 172.
Circular
economy and resource efficiency
In line with our sustainability strategy regarding circular economy, we have taken further steps to reduce waste and resource consumption across operations:
Food waste reduction: Through partnerships and in-store optimisation, we actively reduce food waste in our operations by donating surplus food and improving inventory planning. In 2024, nearly 5 million products were saved through various initiatives, including food rescue apps, discounted sales near closing time and donations to organisations.
Recycling and waste management: Enhanced sorting and recycling infrastructure has increased the use of recycled materials in both packaging and operations. However, geographical challenges remain, particularly in areas where commercial or public recycling systems are limited. In 2024, 79 percent of our sales outlets had access to such systems, and 73 percent of total waste generated throughout the Group was recycled.
Read more in chapter E5, Circular economy
Transparent reporting and governance
We are committed to transparent, reliable and forward-looking climate reporting. For the third consecutive year, we have completed full greenhouse gas (GHG) emissions accounting, including Scope 1, 2 and 3 emissions, providing a comprehensive overview of our climate impact. All GHG data is independently verified by a third party, reinforcing accuracy, credibility and accountability.
In 2024, we align our report with the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) as part of our efforts to facilitate a smooth transition to mandatory reporting, as required by the Norwegian Accounting Act. The recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) are applied to strengthen governance and scenario-based risk management. Climate targets and performance are regularly reviewed by our Board of Directors and are integrated into financial and operational decision-making processes.
Looking ahead
Towards the end of 2024, while integrating the climate action plans with the business plans for the period leading up to 2030, significant gaps were identified between the company’s targets and the identified actions. Addressing these challenges has become an important focus area, and efforts to reinforce the plan have already been initiated. We will continue monitoring and strengthening the integration of climate targets into the operations and decision-making, thereby ensuring the required business transition.
While actions taken in 2024 represent progress towards our long-term goal of net-zero emissions, we have further strengthened our understanding of our company and value chain. This work has enabled us to develop targeted action plans, which can be categorised into the following key areas.
Decarbonising sales outlets
We will continue focusing on reducing the GHG emissions from refrigeration and heating by transitioning to lower emission systems, implementing more energyefficient solutions such as timed refrigeration controls and expanding the use of solar panels and district heating in sales outlets and warehouses.
Decarbonising transportation
We will accelerate the transition to electric trucks and hybrid company vehicles while optimising transport routes and logistics efficiency. Collaboration with suppliers is also a priority to encourage a shift towards more sustainable transportation solutions.
Offering products with lower emissions
We will offer more sustainable and nutritious choices by expanding the availability of flavourful plant-based alternatives and collaborating with suppliers to develop
healthier products with a lower climate impact. Efforts to reduce emissions also include modifying product compositions, such as replacing beef with loweremission animal protein like chicken or innovative plant-based alternatives, optimising packaging sizes to minimise material use and introducing innovative, circular packaging solutions. Additionally, we are strengthening our initiatives that encourage customers to make choices aligned with the Nordic dietary guidelines, supporting a shift towards more climate-friendly eating habits. Read more about our efforts in ESRS S4 Consumers and end-users
Reducing food waste
We will further reduce food waste by strengthening in-store waste sorting, increasing sales of surplus food through discount initiatives and third-party apps and optimising inventory management to minimise waste, contributing to a more efficient and sustainable value chain.
Decarbonising the value chain
We will continue to decarbonise the value chain by increasing supplier collaboration to align with 1.5 °C climate targets, scaling up Scope 3 initiatives such as reducing emissions from employee commuting and capital goods and increasing renewable energy production at its operational sites to support our long-term climate commitments.
Additionally, we are actively exploring projects that extend beyond our value chain, such as opportunities for carbon offsetting, including nature-based and technology-based solutions. We are evaluating partnerships and pilot initiatives, as these may prove necessary to offset our hard-to-abate emissions. However, we also consider this an opportunity to support innovation in negative-emission technologies.
Pollution
Material impacts, risks and opportunities
Reitan Retail recognises that pollution is a significant challenge linked to our own operations’ and value chains’ activities. As a company sourcing food, beverages and fuel products globally, working with more than 10,000 suppliers and producers, we have both a responsibility and an opportunity to influence and drive more sustainable practices that reduce pollution across our value chain.
Our double materiality assessment (DMA) highlights that pollution arises at multiple stages of our operations and supply chain. Agricultural production contributes to water and soil contamination through pesticide and fertiliser use, while food processing and packaging generate waste and emissions. Marine pollution is linked to unsustainable fishing practices, plastic waste and chemical runoff affecting ocean ecosystems. Additionally, fuel extraction, refining and transportation release pollutants that impact air, water and soil quality. By understanding these risks, we are committed to reducing pollution and promoting cleaner production methods across our business activities.
The DMA for this disclosure has been based on peerreviewed research, conference papers, reputable sources, sustainability reports, NGO insights, stakeholder interviews and academic studies. The findings have been validated by internal and external subject matter experts, ensuring a comprehensive and science-based understanding of our impact on pollution and environmental degradation.
Throughout the process of our DMA, eight impacts and zero risks and opportunities were identified as material within the framework of ESRS E2 – Pollution. As part of this assessment, the five sub-topics Microplastics, Pollution of air, Pollution of living organisms and food resources, Pollution of soil and Pollution of water were accordingly evaluated. The findings provide a structured foundation for understanding our material impacts on water and marine resources, which are further detailed below.
Our double materiality assessment highlights that pollution arises at multiple stages of our operations and supply chain.
Microplastics
Reitan Retail buys and sells products wrapped in significant amounts of plastic, contributing to plastic waste generation. Over time, this plastic degrades into microplastics, which enter ecosystems and pose risks to both wildlife and human health. Many non-food products, such as clothing, hygiene products, uniforms, cosmetics and seasonal decorations also contain plastics and microplastics, which can accumulate in food chains and disrupt ecosystems. The chemical compounds within microplastics are a growing concern due to their potential toxicity and long-term environmental persistence.
Pollution of living organisms and food resources
Reitan Retail’s impact on pollution of living organisms and food resources stems from agricultural practices, chemical use in food production and waste generation. Soil and water contamination from pesticides, fertilisers and antibiotics disrupts ecosystems and biodiversity, while microplastics from textiles and hygiene products enter food chains. Intensive farming and monocultures degrade soil health, increasing reliance on chemical inputs. Additionally, food waste across our operations and value chain contributes to unnecessary emissions and resource inefficiencies.
Reitan Retail’s sourcing of food and biofuels links us to soil and water pollution through pesticides, herbicides, fertilisers and intensive agricultural practices. These chemicals can contaminate soil and groundwater, leading to habitat loss, reduced crop yields and long-term ecosystem degradation. The impact extends to livestock farming, where antibiotics and hormones can enter natural water systems, affecting aquatic life and water quality.
Fossil-fuel extraction and refining also contribute to soil pollution, particularly through leaks from oil wells, spills and the release of sulphur dioxide and nitrogen oxides, which can lead to soil acidification. Biofuel production carries its own risks, as fertilisers and pesticides used in crop cultivation can run off into local water sources, causing eutrophication and soil degradation.
Most Reitan Retail’s fuel sales come from traditional oil, where the risk of water pollution is significant at the extraction stage. Oil leaks, spills and the chemicals used in extraction can contaminate local water sources, particularly in regions with weak environmental regulations. In contrast, refining in the Nordic region is subject to strict environmental standards, with treatment plants and monitoring systems in place to minimise emissions. However, storage and distribution of fuel still carry a risk of localised pollution due to potential leaks from tanks or refuelling accidents.
For advanced biofuels, which rely on waste and residue-based raw materials, the risk of water pollution is lower since these materials do not require fertilisers or pesticides. However, agricultural-based biofuels still pose a high risk of water contamination, as intensive farming practices lead to fertiliser runoff and eutrophication of local water bodies.
Although greenhouse gas (GHG) emissions are primarily reported under ESRS E1, other forms of air pollution, such as particulate matter, nitrogen oxides and sulphur dioxide, are released through the combustion of fossil fuels. These pollutants contribute to respiratory diseases, reduced air quality and harm to ecosystems. Additionally, emissions from our transportation chain, including deliveries to and from our stores and suppliers, contribute to local air pollution, affecting both human health and biodiversity.
Agriculture is the largest global consumer of water, accounting for 70 percent of total freshwater use, and is a major contributor to nonpoint-source pollution in surface and groundwater. Intensive farming practices lead to soil erosion, salinity increases and excessive use of fertilisers and pesticides, which contaminate both groundwater and surface water. Organic livestock waste, antibiotics, silage effluents and processing waste from large-scale plantations further contribute to water pollution, affecting both biodiversity and human water supplies.
Pollution of water
Our approach and policies
Retail’s value chain contributes to pollution in various ways, affecting air, water and soil quality. Our DMA has identified several key areas where our activities and supply chain exert environmental pressure, particularly through plastic waste, air emissions, chemical contamination and agricultural pollution. As of today, we do not address these impacts in a sufficient way but recognise the need for policy and governance tools as well as targets and metrics on this topic.
We recognise the need for a dedicated environmental policy addressing pollution to effectively manage activities across our value chain, covering both upstream and downstream initiatives to mitigate negative impacts. This will involve collaborating with local communities, regulatory bodies, suppliers and
partners to ensure a comprehensive and proactive approach. Our aim is to cut emissions, protect air, water and soil from pollution and reduce waste while working closely with stakeholders to develop more sustainable ways of managing environmental impact.
Responsible procurement policy
Reitan Retail’s Responsible procurement policy, together with our Code of conduct and Supplier code of conduct and associated internal processes and routines, forms the basis for our work on sustainable business practice and supply chain management in our procurements. Our supply chain and how we conduct procurements are key to minimising negative environmental impact in the supply chain, including pollution. The Responsible procurement policy outlines the requirements and practices we expect our business areas to adhere to.
Targets
At present, we do not have specific targets or comprehensive data related to pollution. As part of our alignment with ESRS E2 – Pollution, we commit to setting additional pollution-related targets based on the outcome of our DMA that are not already addressed by our existing targets.
As part of our sustainability strategy, we have established targets to protect biodiversity and reduce environmental risks linked to the procurement of highrisk commodities. Pollution is a key part of this scope and will be considered in our efforts to monitor and reduce impacts across our supply chain and operations.
Actions taken in 2024
In 2024, we started drafting a policy on high-risk commodities that will specifically address environmental risks, reinforcing our commitment to responsible sourcing and mitigating risks such as contamination of air, water and soil. The policy will set a minimum list of high-risk commodities, identified using ESG risk data from multiple
sources and assessed based on material and strategic impacts, regulatory requirements and insights from our operations and stakeholders. The risks will be mitigated through certifications and third-party verifications as a complement to supplier engagement, enhanced due diligence and monitoring.
Looking ahead
Based on the findings from our DMA, we will increase our focus on these material topics. Key initiatives include:
• Strengthening supplier due diligence by ensuring pollution impact criteria are included in supplier assessments and enhanced due diligence.
• Transitioning away from production practices causing contamination of air, water and soil by strengthening our procurement practices with access to and use of high-quality risk data covering pollution-related risks.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
In 2024
we started drafting a policy on high-risk commodities. Specifically, we will address environmental risks
• Deepening our understanding of our environmental footprint and launching a pilot project to conduct an environmental life cycle impact assessment on selected commodities and products. Such a project will provide valuable insights into the implications of our sourcing choices to prevent contamination of air, water and soil and enable us to take targeted action where the impact is most significant.
• Raising awareness among customers and stakeholders to drive positive change. We will educate and generate engagement and enthusiasm among our customers, suppliers and employees on the importance of sustainable management of production practices that prevent contamination of air, water and soil and responsible consumption choices that limit the waste of microplastics.
Water and marine resources
Our double materiality assessment (DMA) highlights that water and marine resources are significantly impacted throughout our value chain. From agriculture and food production, which contribute to water stress and pollution, to seafood sourcing, where unsustainable fishing practices threaten marine biodiversity, and fuel production, which relies on water-intensive extraction and refining processes, our business activities are closely linked to water-related challenges. By understanding these impacts, we are committed to mitigating risks and integrating responsible water and marine resource management across our operations and supply chain.
The DMA on this topic has been based on peerreviewed research, conference papers, reputable sources, sustainability reports, NGO insights, stakeholder interviews and academic studies. The findings have been validated by internal and external subject matter experts, ensuring a comprehensive and science-based understanding of our impact on water and marine ecosystems.
Our double materiality assessment highlights that water and marine resources are significantly impacted throughout our value chain.
Material impacts, risks and opportunities
Throughout the process of our DMA, five impacts and zero risks and opportunities were identified as material within the framework of ESRS E3 – Water and marine resources. As part of this assessment, the two sub-topics Water and Marine resources were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material impacts on water and marine resources, which are further detailed below.
Marine Resources Impact
NEGATIVE IMPACT (1)
The seafood industry plays a significant role in our supply chain, and unsustainable fishing practices, habitat destruction and the expansion of aquaculture pose direct risks to biodiversity and ecosystem stability. Overexploited fish stocks and poorly managed fisheries contribute to marine resource depletion, while habitat destruction from bottom trawling and aquaculture development can disrupt coastal and deep-sea ecosystems. In addition, Reitan Retail’s involvement in fuel retailing indirectly links us to offshore energy production, where fossil fuel extraction and wind power development can introduce noise pollution, habitat disturbance and emissions, further impacting marine environments.
NEGATIVE IMPACT (4) Water
As a food retailer and a re-seller of petroleum products, Reitan Retail is inherently linked to activities that exert pressure on water systems and marine resources. The increasing demand for food from the sea, alongside offshore renewable and non-renewable energy production, contributes to a range of environmental challenges, including pollution, biodiversity loss, seabed damage, overexploitation, the spread of nonindigenous species, marine litter, underwater noise and the effects of ocean warming and acidification.
Water usage within our own operations is mainly linked to grounds maintenance, cleaning and facilities such as bathrooms, cafeterias and kitchens. Additionally, our ownership of breweries and food production means that water-intensive processes are necessary for production. While our operations are based in the Nordic countries – where water scarcity is not a critical issue — responsible water management remains essential, particularly for businesses with higher water consumption. Uno-X Mobility, for example, relies on water for car washing services, making it one of the more waterintensive activities in our operations.
The most significant water-related impacts occur within our supply chain, where both
fossil fuel production and food and beverage sourcing contribute to water stress and ecosystem degradation. Large volumes of water are used in crude oil extraction processes, such as water injection and pressure support, while refining and cooling operations consume additional water resources. Although we source refined fuel from Nordic suppliers, our indirect connection to upstream water-intensive activities remains a concern. Similarly, Reitan Retail procures food and beverages globally, including from regions with high water stress. Agricultural production in these areas can contribute to water scarcity, groundwater depletion and freshwater ecosystem degradation, particularly in rivers, lakes and wetlands. As climate change intensifies, these risks are expected to escalate, already causing reduced crop yields, supply chain disruptions, operational difficulties and increased costs.
Our approach and policies
To reduce our impact on water and marine ecosystems, we are strengthening supply chain due diligence, ensuring that biodiversity and water management considerations are embedded into procurement policies. We are also enhancing supplier requirements to promote more sustainable water use, supporting certification schemes and collaborating with industry partners to develop more responsible sourcing frameworks. By integrating these measures into our sustainability strategy, we aim to mitigate our environmental footprint while ensuring long-term business resilience.
As of today, we do not have a specific environmental policy addressing water and marine resources. We recognise the need to manage activities across our value chain, encompassing both upstream and downstream initiatives to mitigate risks and enforce positive impacts. It will involve engaging with local communities, regulatory bodies, suppliers and partners to ensure a holistic approach. We aim to protect water quality, safeguard marine life and work together with stakeholders to find sustainable ways of managing our shared water resources.
Responsible procurement policy
Reitan Retail’s Policy on responsible procurement, together with our Code of conduct and Supplier code of conduct and associated internal processes and routines, forms the basis for our work on responsible business practice and supply chain management in our procurements. Our supply chain and how we conduct procurements are key to minimising negative environmental impact in the supply chain, including on water and marine resources. The Responsible procurement policy outlines the requirements and practices we expect our business areas to adhere to.
Targets
At present, we do not have specific targets or data for water and marine resources. As part of our alignment with ESRS E3 – Water and marine resources, we commit to setting additional targets related to water and marine resources based on the outcome of our DMA that are not already addressed by our existing targets.
As part of our sustainability strategy, we have established targets to protect biodiversity and reduce environmental risks linked to the procurement of high-risk commodities. Water and marine resources are key parts of this scope and will be considered in our efforts to monitor and reduce impacts across our supply chain and operations.
Actions taken in 2024
In 2024, we started drafting a Policy on high-risk commodities that will specifically address environmental risks, reinforcing our commitment to responsible sourcing and mitigating risks such as poor water management of water and marine resources. The policy will set a minimum list of high-risk commodities, identified using ESG risk data from multiple sources and assessed based on material and strategic impacts, regulatory requirements and insights from our operations and stakeholders. The risks will be mitigated through certifications and third-party verifications as a complement to supplier engagement, enhanced due diligence and monitoring.
We closely monitor water consumption across our stores, car washes and industrial operations. Our business areas primarily interact with water through municipal services across all countries, with most of our water withdrawal coming from groundwater sources connected to municipal water supplies. The majority of this usage occurs in our outlets, car washes and industrial facilities.
Some business areas have a notable reliance on water, warranting further assessment of related impacts. Norway and Denmark, where we have the highest water consumption, are considered low risk for extensive water use and baseline water stress according to the WWF Water Risk Index. However, the Baltics, where we also operate, face a low-to-moderate risk.
Water management is integrated into our subsidiary management approach, with some areas already taking steps to mitigate their environmental impact. Uno-X Mobility, for example, has invested in Nordic Swan eco-labelled car wash facilities, which require 80 percent less water than conventional car washes and ensure 90 percent more thorough wastewater treatment.
For a detailed overview of water withdrawal, discharge and consumption, please refer to the table below.
Looking ahead
We are actively working to reduce the harm our value chain causes to water and marine resources, thereby making our value chains for food and fuel more sustainable. Onwards, we focus on the following initiatives:
• Strengthening supplier due diligence by ensuring water and marine resources impact criteria are included in supplier assessments and enhanced due diligence.
• Transitioning away from commodities produced in areas with high water stress by strengthening our procurement practices with access and use of high-quality risk data covering risks of poor water management and geographical data indicating areas with high water stress.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
• Deepening our understanding of our environmental footprint and launching a pilot project to conduct an environmental life cycle impact assessment on selected commodities and products. Such a project will provide valuable insights into the implications of our sourcing choices on the use of water and marine resources, enable us to take targeted action where the impact is most significant and identify key areas for water and marine resources and impact reduction.
• Raising awareness among customers and stakeholders to drive positive change. We will educate and generate engagement and enthusiasm among our customers, suppliers and employees on the importance of sustainable management of water and marine resources in sourcing and production, and responsible consumption choices.
Biodiversity and ecosystems
Reitan Retail acknowledges that biodiversity loss and ecosystem degradation are significant challenges linked to our upstream activities. As a company sourcing food, beverages and fuel products globally, with more than 10,000 suppliers and producers, we have great opportunities – and responsibilities – to use our influence to mitigate these negative impacts and work towards more sustainable practices.
The double materiality assessment (DMA) on this topic is based on peer-reviewed articles, conference papers, reputable websites and information from sustainability reports, NGOs, stakeholder interviews and other academic sources. The DMA has been reviewed by internal and external subject matter experts.
Reitan Retail acknowledges that biodiversity loss and ecosystem degradation are significant challenges linked to our upstream activities.
Material impacts, risks and opportunities
Throughout the process of our DMA, six impacts and zero risks and opportunities were identified as material within the framework of ESRS E4 – Biodiversity and ecosystems. As part of this assessment, the three sub-topics Direct impact drivers of biodiversity loss, Impacts on the state of species and Impacts and dependencies on ecosystem services were evaluated accordingly. The findings provide a structured foundation for understanding Reitan Retail’s material biodiversity and ecosystem-related impacts, which are further detailed below.
Direct impact drivers of biodiversity loss
Impacts and dependencies on ecosystem services
The most significant environmental impact in our value chain is linked to food production. The global food system is the primary driver of biodiversity loss, with agriculture alone threatening 86 percent of at-risk species (24,000 species at risk of extinction). Land-use change, deforestation and habitat fragmentation driven by agricultural expansion contribute to the decline of species and ecosystems. Additionally, unsustainable farming practices result in soil degradation, water pollution and loss of genetic diversity.
Reitan Retail’s fuel sourcing activities, particularly those related to biofuels and fossil fuels, contribute to biodiversity risks. Although the refining of petroleum products takes place under strict environmental regulations in the Nordic region, the origin of the crude oil remains uncertain. This means that extraction may occur in ecologically sensitive areas, leading to habitat destruction and a significant loss of biodiversity. Similarly, the cultivation of commodities for plant-based biofuels, such as palm oil, soy, corn and sugarcane, poses additional environmental concerns. These crops are often linked to deforestation, wetland drainage and the displacement of local species, while monoculture farming further exacerbates biodiversity loss by eliminating diverse vegetation. Even waste-based biofuels, which are considered a more sustainable alternative, can have indirect negative effects through intensive biomass collection, depleting soil nutrients and reducing habitats for wildlife.
Reitan Retail sources food and beverages from across the world, and food production significantly affects ecosystem services.
Agricultural activities have a profound impact on natural processes, particularly in areas such as pollination and soil fertility, where monocultures and pesticide use threaten pollinators and degrade soil health. Additionally, excessive irrigation and land degradation contribute to water scarcity and pollution, further straining vital ecosystems. Deforestation and habitat destruction also disrupt the planet’s natural ability to absorb carbon emissions, diminishing carbon sequestration capacity and accelerating climate change. These interconnected challenges highlight the critical need for sustainable agricultural practices that preserve ecosystem balance while ensuring long-term food security.
The production of food and raw materials in our value chain is highly dependent on ecosystem services, including pollination, pest control, soil fertility and water regulation. The decline of these services due to environmental degradation poses long-term risks to food security, supply chain stability and business continuity.
Impacts on the state of species
Despite conservation efforts, the European continent continues to experience a decline in protected habitats and species. Factors such as urban sprawl, climate change, pollution and overexploitation of natural resources contribute to habitat destruction, affecting both terrestrial and aquatic biodiversity.
Unsustainable fishing practices, particularly deep-sea bottom trawling, pose significant risks to marine biodiversity. These practices cause habitat destruction, disrupt ocean ecosystems and lead to high levels of bycatch. Marine mammals, seabirds and endangered species, such as sea turtles, are often unintentionally caught in fishing nets, further contributing to biodiversity loss.
NEGATIVE IMPACT (2)
Our approach and policies
We recognise that the preservation of biodiversity and the health of ecosystems are fundamental to sustainable development, resilient food systems and long-term business continuity. Our operations, particularly within agriculture and food retail, depend on healthy soils, pollinators, clean water and balanced ecosystems. While our understanding of our impacts on nature is still developing, we acknowledge the need for a more structured and transparent approach to identifying and managing these dependencies and risks.
As part of our broader commitment to responsible business conduct, we are integrating biodiversity and ecosystem considerations into procurement practices and supplier assessments. Environmental impact is becoming a key evaluation criterion in sourcing decisions, enabling us to support more sustainable and regenerative production methods. Through this work, we aim to reduce harm to nature while contributing to the resilience of our value chain and the ecosystems we rely on.
Responsible procurement policy
Reitan Retail’s Policy on responsible procurement, together with our Code of conduct and Supplier code of conduct and associated internal processes and routines, forms the basis for our work on responsible business practice and supply chain management in our procurements. Our supply chain and how we conduct procurements are key to preserving biodiversity and minimising negative environmental impact in the supply chain. The Responsible Procurement Policy outlines the requirements and practices we expect our business areas to adhere to.
Policies on palm oil and soy
As part of our commitment to reducing deforestation and habitat destruction, we implemented the first no-palm oil policy for private-label products in REMA 1000 Norway in 2014. The scope of the no-palm oil policy has since expanded, and we are now working towards reducing and ultimately eliminating palm oil from all products (food, beverages and non-food). A similar strategy applies to soy in animal feed, acknowledging its role in both biodiversity loss and animal welfare
concerns. By adopting these policies, we are taking proactive steps to limit our contribution to deforestation and land degradation linked to commodity production.
Targets
As part of our alignment with ESRS E4 - Biodiversity, we commit to setting targets related to biodiversity based on the outcome of the DMA that are not already addressed by our existing targets. This work will remain a focus area for us in the coming years.
The following targets with impact on biodiversity and ecosystems are already defined as part of our sustainability strategy:
TARGETS
Increasing the traceability of risk commodities and suppliers through due diligence assessments.
Increase the share of products containing risk commodities that are certified to recognised environmental and sustainability standards by 2030, using the 2025 certification share as a baseline.
Phasing out the use of palm oil and palm oil derivates.
Assessing our impact on biodiversity and setting quantitative conservation goals in line with the global nature target 2030.
Identifying measures to offer meat products with guaranteed improved animal welfare and a reduced environmental footprint.
We are phasing out palm oil from all food and beverages products by 2028.
Actions taken in 2024
We are committed to protecting biodiversity and minimise environmental harm caused by our value chain. These were our most important actions in 2024:
• Set a deadline for phasing out food and beverage products containing palm oil and palm oil derivatives by 2028 in all of Reitan Retail. Palm oil is one of the leading causes of rainforest deforestation, with severe consequences for biodiversity. REMA 1000 in Norway has gradually been phasing out palm oil since 2014.
• Aligned with the EU Green Deal target of 30 percent organic produce by 2030. We are strengthening our procurement policies by setting higher sustainability standards for suppliers, ensuring that biodiversity protection and reduced environmental impact are embedded within our supply chain.
• Started drafting a Policy on high-risk commodities that will specifically address deforestation risks, reinforcing our commitment to responsible sourcing and ecosystem protection. The policy will define a minimum list of high-risk commodities, identified using ESG risk data from multiple sources and assessed based on material and strategic impacts, regulatory requirements and insights from our operations and stakeholders. The risks will be mitigated through certifications and third-party verifications as a complement to supplier engagement, enhanced due diligence and monitoring.
Looking ahead
We are actively working to reduce the harm our value chain causes to biodiversity and ecosystems, and thereby making our value chains for food and fuel more sustainable. Onwards, we focus on the following initiatives:
• Strengthening supplier due diligence by ensuring biodiversity and environmental impact criteria are included in supplier assessments and enhanced due diligence.
• Transitioning away from deforestation-linked commodities through policies to eliminate palm oil and reduce soy in animal feed in our supply chain.
• Promoting organic and sustainable sourcing by aligning with the EU Green Deal’s target of 30 percent organic produce by 2030 to support biodiversity-friendly farming.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
• Deepening our understanding of our environmental footprint and launching a pilot project to conduct an environmental life cycle impact assessment on selected commodities and products. Such a project will provide valuable insights into the biodiversity implications of our sourcing choices, enabling us to take targeted action where the impact is most significant and identify key areas for biodiversity conservation and impact reduction.
• Raising awareness among customers and stakeholders to drive positive change. We will educate and generate engagement and enthusiasm among our customers, suppliers and employees on the importance of responsible sourcing, biodiversity conservation and responsible consumption choices.
Circular economy
As a retailer with extensive grocery and convenience operations, Reitan Retail plays a significant role in the generation and management of waste across our own operations and value chain. Our double materiality assessment (DMA) highlights food waste and packaging waste as the most material waste-related impacts, affecting both environmental sustainability and resource efficiency.
The DMA on this topic is based on peer-reviewed research, conference papers, reputable sources, sustainability reports, NGO insights, stakeholder interviews and academic studies. The findings have been validated by internal and external subject matter experts, ensuring a comprehensive and science-based understanding of our impact on pollution and environmental degradation.
As a retailer with extensive grocery and convenience operations, Reitan Retail plays a significant role in the generation and management of waste across our own operations and value chain.
Material impacts, risks and opportunities
Throughout the process of our DMA, eight impacts and zero risks and opportunities were identified as material within the framework of ESRS E5 – Circular economy. As part of this assessment, the three sub-topics Resource inflows, Resource outflows related to products and services and Waste were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material impacts on water and marine resources, which are further detailed below.
Resource inflows, including resource use
Reitan Retail relies on large resource inflows for its grocery, convenience and fuel segments, as well as for hardware and construction materials used in our retail infrastructure. In the grocery and convenience segment, resource inflows primarily consist of food and beverage products, packaging, non-food items such as hygiene and cleaning products and promotional materials. While many agricultural products are based on renewable resources, hardware and construction items often rely on non-renewable materials such as metals and plastics.
The fuel segment depends on fossil fuels, biofuels, lubricants and chemicals, with a large share of inflows consisting of non-renewable resources such as gasoline, diesel and gas. Fossil fuels cannot be replenished on a human timescale, making them a critical sustainability concern.
Hardware and construction materials used in our stores, infrastructure and mobility locations contribute to the depletion of rare earth metals, plastics and minerals, including conflict minerals such as tantalum, palladium and platinum. Construction materials, such as concrete, metal and wood, also have environmental implications due to high resource extraction and energyintensive production processes.
Resource outflows related to products and services
Our resource outputs mainly include products sold to customers, food waste and packaging waste. Packaging is a significant part of our resource outflows, including packaging from virgin raw materials which currently make up a large share of our packing, recycled and recyclable packaging materials. While we actively promote recyclable and recycled materials, much of our packaging still contributes to overall waste generation.
Waste
NEGATIVE IMPACT (3)
As a grocery retailer with numerous sales outlets, Reitan Retail generates a significant amount of food waste. Overstocking, product damage, spoilage and excess prepared food all contribute to this issue. Beyond our own operations, food waste is generated in households (downstream in our value chain) and in food production (upstream in our value chain). Globally, one-third of food produced is lost or wasted, and we are actively working to reduce food waste in our own operations by 50 percent by 2030. Since 2015, REMA 1000 NO has already reduced food waste by 44 percent, demonstrating the potential impact of structured waste reduction initiatives and the opportunities we as retailers have.
Beyond our own operations, we influence consumer food waste through sales promotions and marketing strategies. Campaigns such as “3 for 2” offers can unintentionally lead to over-purchasing and
POSITIVE IMPACT (1)
increased food waste at the household level, underscoring the importance of responsible marketing approaches. Addressing this requires a balance between commercial incentives and responsible consumption, ensuring that our promotions and product strategies support waste reduction.
Packaging waste is a challenge both within our own operations and downstream in the value chain. Goods received in our stores are predominantly wrapped in plastic and paper packaging, accounting for a large portion of our solid waste. Since most of our products are also sold in packaging, a substantial amount of waste is generated at the consumer level, highlighting the need for more sustainable packaging solutions and improved recycling infrastructure. While packaging plays a vital role in protecting products and extending shelf life, it also contributes to waste accumulation at both the retail and consumer levels.
Our approach and policies
Reitan Retail’s value chain generates significant resource flows, contributing to waste generation and environmental pressure on natural resources. Our DMA highlights key challenges related to plastic waste, packaging, food waste and resource inefficiency, as well as emissions and contamination linked to agriculture and production processes.
Currently, we recognise that our efforts to address these impacts are not yet sufficient, and we acknowledge the need for stronger policies, governance tools and measurable targets to improve circularity across our operations and supply chain. Moving forward, we are committed to enhancing waste reduction initiatives, improving recyclability and integrating circular economy principles into our business strategy, ensuring compliance with ESRS E5 requirements and developing more sustainable resource management.
Specifically, we recognise the need for a dedicated circular economy framework addressing the management of waste, resource use, packaging
and food waste across our value chain and own operations. Our overall policy approach aims to mitigate negative impacts, seize opportunities to create positive change and develop solutions that are appreciated by our customers. This will involve collaborating with suppliers and partners as well as research institutes and regulatory bodies to ensure a comprehensive and proactive approach.
Responsible procurement policy
Reitan Retail’s Policy on responsible procurement, together with our Code of conduct and Supplier code of conduct and associated internal processes and routines, forms the basis for our work towards more responsible business practice and supply chain management in our procurements. Our supply chain and how we conduct procurements are key to minimising negative environmental impact in the supply chain, including resource management, food waste and packaging waste and promoting circular use of all raw materials. The Responsible procurement policy outlines the requirements and practices we expect our business areas to adhere to.
Targets
At present, we do not have specific targets or comprehensive data addressing all our material impacts related to circular economy. However, insights from our DMA have strengthened our understanding of circular economy-related impacts across both our own operations and value chain. As part of our alignment with ESRS E5 – Circular economy, we commit to setting additional targets related to circular economy based on the outcome of our DMA that are not already addressed by our existing targets. In addition, we are committed to improving data collection to enhance our ability to measure, mitigate and report on related impacts.
As part of our sustainability strategy, we have targets on packaging and food waste:
Actions taken in 2024
We aim to continue to reduce our environmental footprint and drive progress towards a more circular and resource-efficient business model, and to integrate this further in operations and business strategy. In 2024 we have focused on our value chain and activities that help us to reach our defined targets through several initiatives. Key actions included:
• Recycled 82 thousand tonnes of waste, with a recyclable rate of 73 percent of total waste generated. The remaining 31 thousand tonnes were either incinerated or sent to landfills, and the resulting emissions account for 95 percent of all CO₂ emissions from waste in our own operation.
TARGET
Reducing food waste by 50 percent in all our sales outlets by 2030. Since 2015, REMA 1000 Norway has already reduced its food waste by 44 percent, demonstrating the effectiveness of targeted food waste reduction initiatives. TARGET
Ensuring that 100 percent of all packaging materials are recyclable while respecting national legislation, food safety regulations and necessary exceptions for environmentally or health-hazardous waste.
• Strengthened our ambition in circular economy and sustainable packaging with the support of EU regulation for packaging, The Packaging and Packaging Waste Regulation (PPWR). We will refine and develop our work to increase circular packaging design and recyclable solutions to support societies’ reduced reliance on virgin resources.
• Saved food and beverages that otherwise would have been wasted. This is done through apps, such as Too Good To Go, Karma and ReQ Club, and where possible, through donations to churches, farmers and organisations.
• Continued efforts to minimise food waste in own operations and in customer households. Activities include marketing strategies to impact consumer behaviour and adjusting packaging and sizes.
The data foundation and quality have significantly improved throughout
Waste sorting in sales outlets
1Sales outlets, not including fuel and energy locations.
Recycled input materials used
Our business areas are constantly working to enhance the efficiency of material utilisation, aiming for a greater use of both recycled and recyclable materials. Data collection practices on these matters vary among subsidiaries, with REMA 1000 Denmark serving as a n example of inadequate data quality. As a result, all materials are reported as non -recycled. In 2024, our business areas report increased consumption of non-renewable materials, whilst decreasing the utilisation of renewable materials. In the for thcoming years, we are committed to phasing out the use of non-renewable materials entirely.
Looking ahead
Recognising the environmental impact of circular economy across our value chains and in our own operations, Reitan Retail is committed to mitigating these risks through responsible sourcing, supplier engagement and enhanced due diligence. We commit to integrating stricter procurement policies, promoting circular packaging alternatives, improving logistics efficiency and working towards reduced food waste in all parts of the value chain of food. Onwards, we will focus on:
• Improving waste management, reducing excess packaging and promoting circular economy solutions by further optimising inventory and logistics to minimise food waste within our operations, evaluating marketing strategies to reduce unintended consumer food waste and increasing the use of recyclable and reusable materials.
• Consider sub-targets regarding plastics/microplastics/single-use plastics in food and non-food packaging due to materiality in our DMA and EU PPWR
• Strengthening our procurement practices with access to and use of high-quality data on the share of raw materials used in packages. Ensure packaging and waste criteria are included in supplier requirements, assessments and due diligence.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices. Use innovation and cooperation to transition away from packages and practices that cause food waste and use of non-circular or virgin raw materials.
• Raising awareness among customers and stakeholders to drive positive change. We will educate and generate engagement and enthusiasm among our customers, suppliers and employees on the importance of sustainable management of production practices that prevent and limit waste and food waste.
3.3 Social
Material impacts, risks and opportunities
Own workforce
Our people are at the heart of everything we do. They bring our values to life and shape and reinforce our unique culture. With 46,000 people working across operations in seven countries, including 6,700 employees, Reitan Retail has both the opportunity and responsibility to build inclusive, safe and fair workplaces. Value-based leadership is a key part of our philosophy, ensuring that great people can grow and develop within our organisation.
As a large employer in the Nordic and Baltic regions, we recognise the material impacts, risks and opportunities related to our workforce. We strive to be a responsible employer and are committed to ethical labour practices, international human rights frameworks and fostering a diverse and inclusive work environment. Despite recent political pushback, we remain positive and pro active in promoting diversity and inclusion, striving to create safe and stable workplaces for all. Through transparent reporting, we aim to identify and address workforce-related impacts while ensuring alignment with regulatory requirements, stakeholder expectations and long-term business resilience.
This disclosure covers all employees and those working for our brands across Reitan Retail. As
required by ESRS S1, employee data is reported by headcount, including full-time and part-time staff, regardless of contract type or location. This approach ensures transparency and accuracy in assessing workforce impacts, risks and opportunities.
Throughout the process of our double materiality analysis (DMA), six impacts and zero risks and opportunities were identified as material within the framework of ESRS S1 – Own workforce. As part of this assessment, the three sub-topics Equal treatment and opportunities for all, Other work-related rights and Working conditions were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material workforcerelated impacts, which are further detailed below.
Our people are at the heart of everything we do, they bring our values to life and shape and reinforce our unique culture.
Gender imbalances in key positions can reinforce structural inequalities, limiting equal access to economic opportunities and career progression. The under representation of women in franchisee and leadership roles may contribute to unequal influence in decision-making, reduced diversity in leadership and potential barriers to career advancement. Conversely, male underrepresentation in certain business areas could result in occupational segregation and limited perspectives in traditionally female-dominated roles.
Persistent gender imbalance also poses a risk to equal pay for work of equal value, as unequal representation across job categories may reinforce gender-based pay disparities. Additionally, a lack of stable progress despite recruitment efforts suggests that systemic factors hinder gender equality beyond conventional business measures, necessitating a reassessment of approaches.
If unaddressed, gender imbalances can exacerbate societal inequalities, reinforce occupational stereotypes and limit access to fair economic participation, impacting broader efforts towards gender equality in the labour market.
Reitan Retail’s focus on diversity and skills development contributes to greater workforce inclusion, particularly for young people, individuals with disabilities and those from disadvantaged socio-economic backgrounds. By providing accessible employment opportunities, individuals who may otherwise face barriers to labour market entry gain economic independence and long-term career prospects.
Structured training and skills programmes contribute to lifelong learning, increasing employee qualifications and employability beyond initial job roles. This supports social mobility, reduces long-term unemployment and strengthens local communities by enabling more individuals to participate fully in the economy.
By fostering a workforce that reflects societal diversity, these efforts also help reduce inequalities, promote fairer representation in various job levels and contribute to a more inclusive and socially cohesive society.
Working conditions
Despite strong health and safety regulations and established management systems, occupational risks remain present across the company. In sales outlets and warehouses, employees may experience injuries and workplace accidents due to heavy lifting, repetitive movements and the operation of machinery such as forklifts. Additionally, those working late hours or in higher-risk areas may face situations involving robbery, physical threats, or psychological strain, which can impact their sense of security and well-being.
Employees in mobility locations, including car wash and tank facilities, may work with fuel and other substances, requiring careful handling to ensure safe operations and minimise environmental risks. While safety measures are in place, ongoing attention is needed to maintain a secure working environment.
Labour conditions also vary across regions, with differences in collective bargaining structures. While Scandinavian countries have a wellestablished framework for collaboration between the state, labour unions and employers, collective bargaining is less common in parts of the Baltics. This difference in approach may influence how employees engage in dialogue on wages, working conditions and job security, depending on national labour traditions and regulatory frameworks.
Equal treatment and opportunities for all
Our people in total
Our approach and policies
Building great people is a priority in Reitan Retail. We believe empowered people that enjoy their work and workplace create great customer experiences. That is why we work for fun and profit. Recognising that everyone has potential, we strive to create a safe and engaging workplace that inspires growth and collaboration. This commitment drives us to continuously improve, strengthen our culture and build on our successes to get better together.
Our work is guided by our culture and our values, which form the foundation of how we attract, develop and retain talent, contributing to a more inclusive and responsible society. This is further strengthened by our policies and Code of conduct.
Value-driven company
At the heart of our company culture is value-based leadership, which guides how we create financial value and conduct business with integrity and responsibility. Our operations are built upon the REITAN philosophy, as described in Blåboka (“The Blue Book”), which defines
our eight core values and eleven success factors. This philosophy is embedded across all business areas and subsidiaries, ensuring alignment with our principles at every level.
The Chief Executive Officer (CEO) in each business area holds the responsibility for ensuring alignment with the REITAN philosophy while managers drive cultural development within their respective subsidiaries. To further reinforce these values, Reitan’s Verdiskole (Value academy) serves as our internal leadership academy, providing training in value-based leadership, culture and philosophy. In 2024, leaders across Reitan Retail participated in the Value Academy alongside local training sessions, discussions and courses tailored for franchisees, employees and leaders.
By maintaining a strong value-driven culture, we ensure that our workforce operates within a framework of ethical leadership, integrity and long-term responsibility. This way we shape a work environment that reflects our commitment to sustainability and people-centric leadership.
Responsible employer
As a responsible employer, Reitan Retail is committed to ethical labour practices and adherence to international human rights frameworks. Our Code of conduct sets clear expectations regarding working conditions, non-discrimination, equal opportunities and workplace safety, ensuring compliance with local labour laws and alignment with the UN Guiding Principles on Business and Human Rights, the ILO Core Conventions and the OECD Guidelines for Multinational Enterprises.
Through transparent reporting, we aim to identify and address workforce-related impacts, ensuring alignment with regulatory requirements, stakeholder expectations and evolving sustainability standards. Policies and procedures are in place to mitigate risks related to occupational health and safety, fair employment practices and labour rights. Risk assessments, training and workplace safety measures are implemented to reduce hazards and support employee well-being.
Recognising regional differences in regulatory frameworks and labour market conditions, we regularly evaluate and adjust workforce policies to maintain compliance and consistency.
Whistleblowing and accountability
To support a culture of openness and accountability, we encourage all employees, franchisees and store personnel to speak up if they experience or witness any violations of our policies or ethical standards. Whistleblowing channels are available and accessible, ensuring that concerns can be reported confidentially and without retaliation. See Chapter G1 – Business conduct for more information about our whistleblowing process.
Diversity and inclusion
At Reitan Retail, we remain positive and proactive in promoting diversity and inclusion, striving to create safe and stable workplaces for all. We believe that different backgrounds, skills and perspectives open up new opportunities, lead to better decision-making and strengthen our business.
Collective bargaining and social dialogue
Our company and business areas operate in regions
We
believe that different backgrounds,
skills and perspectives open up new opportunities, lead to better decision-making and strengthen our business.
with varying traditions of organised labour. While the Scandinavian countries have a well-established framework based on tripartite collaboration between the state, labour unions and employers, the tradition of collective bargaining is less pronounced in the Baltics. In Estonia and Latvia, collective bargaining structures remain relatively weak due to historical factors, particularly the legacy of state-controlled trade unions during the Soviet era. Since regaining independence, individual agreements have largely replaced collective negotiations in many sectors. In Lithuania, collective bargaining is legally supported, but its complexity means adoption depends on employee initiative and company-specific circumstances.
Reitan Retail’s sales outlets are mostly organised as franchises, with wage bargaining for most of the 39,000 individuals conducted locally between the franchisee and their employees. The use of collective bargaining agreements as a tool is less common, which may be attributed to the relatively high turnover and the large proportion of young and/or part-time employees working in sales outlets. Around 6,700 employees in administration, distribution centres and industrial companies negotiate wages with their respective companies, in some cases in collaboration with labour unions.
Targets
As part of our sustainability strategy, we have committed to two targets, highlighted below.
As part of our alignment with ESRS S1 – Own workforce, we commit to setting additional targets related to our own workforce based on the outcome of our DMA that are not already addressed by our existing targets. These targets will be designed to improve gender balance and strengthen our work on inclusion and equity across our business.
Actions taken in 2024
To ensure long-term growth and success, our positive and proactive workforce remains our most important asset. Our focus has been on training and skills development, diversity and inclusion, gender balance, equal pay for work of equal value and remaining an attractive employer.
Training and skills development
Being the preferred employer in our respective industries and markets, and getting more people into work
We offer various programmes and resources to support employee growth and provide lifelong learning opportunities, including skill development courses. A central part of our skills development and fostering a value-based workplace is our Value academy, where employees, franchisees and managers participate in brief courses, training sessions and discussions. These are all rooted in the value foundation established in Blåboka, with some held in collaboration with the Business School of Trondheim.
Diversity and inclusion
Aiming for full equality and a stable gender balance of 40-60% throughout the company, at management level, in boardrooms and among franchisees and employees.
To gain a scientific perspective on what may inhibit and promote inclusion and diversity within Reitan Retail, we conduct surveys. In 2024, in collaboration with FAFO (Institute for Labor and Social Research, Norway), we conducted a new study examining the factors that hinder and promote inclusion within our organisation. This study builds on a similar research project from 2018 and provides updated insights into how perceptions and practices have evolved over six years. The findings reveal that franchisees in REMA 1000 Norway are primarily motivated by the opportunity to be their own boss, develop a well-run business and foster strong teams. Notably, 71 percent of franchisees stated that diversity and inclusion are important or very important when recruiting, seeing their role as a gateway to employment opportunities. This focus is driven by both social responsibility and the desire for a positive work environment. Compared to 2018, concerns about being accused of misusing public support schemes, which were previously a significant barrier to inclusive hiring, have largely disappeared. Encouraged by these results, we will continue our targeted efforts to strengthen inclusion in 2025, working closely with our dedicated and motivated franchisees.
Succession planning plays a key role in maintaining competence, diversity and gender balance across Reitan Retail. Through individual assessments and development discussions, we identify career aspirations and create tailored growth plans for employees aiming to advance. We prioritise internal career progression, ensuring that vacancies are first advertised within the organisation
Gender balance
In 2024, we made significant progress in improving gender balance in leadership recruitment, thereby strengthening access to diverse talent amongst our employees. We met our KPI scorecard goal of 40 percent representation of each gender in recruitments and promotions for leadership positions, though levels of fulfilment varied slightly across business areas. At the same time, we reached another milestone in achieving better gender representation on our boards across all seven countries where we operate, with each gender making up at least 40 percent by the end of the year.
The gender balance among franchisees and store managers is influenced by national and industryspecific factors. In the Baltic countries, women make up the majority of store managers. In contrast, franchisees in Norway and Denmark are predominantly male. We acknowledge that the measures implemented have not led to the progress we had hoped for, making it essential to analyse studies on influencing factors and translate these insights into concrete actions.
Equal pay for work of equal value
We recognise that closing pay gaps and promoting equitable compensation are key to fostering an inclusive and competitive workplace. A structured approach to ensuring fair remuneration has been conducted in 2024 within the company, including efforts such as pay analyses and benchmarking, integration into leadership and HR processes and increased transparency. The work has led to adjustment processes and identified areas that need further reinforcement, while other parts of the organisation seek to explore proven measures that have had a tangible impact.
Diversity in Board of Directors
Being an attractive employer
In order to remain an attractive place of work and to further strengthen this position, we conduct third-party surveys to measure our workplace satisfaction. This approach is important and provides unbiased and transparent feedback on key areas such as corporate credibility, respect, fairness, a sense of security, decent working conditions, pride and a sense of community. The types of surveys used by our business areas vary due to differences in operations and national regulation. In general, the results among our people are strong, showing high work satisfaction and pride in their workplace.
Most of our employees are located in Norway and Denmark. In Norway, the annual Great Place to Work (GPTW) measures work satisfaction among all administrative workers. Our results in GPTW consistently reflect high scores across all indicators, exceeding the Norwegian National Integrity Index (National Trust Index), and in 2024, Reitan Retail was awarded fifth place. Our score on the question “All in all, a great place to work” was 90 out of 100, with a response rate of 81 percent. For our Danish operations, we conduct the legally required workplace assessment Arbejdspladsvurdering (APV).
REMA 1000 Norway, in addition to the GPTW survey, also conduct the more widespread hør & GJØR surveys. In 2024, it was conducted once for workers in stores and twice for franchisees. For store employees and franchisees, we track the employee net promoter score (eNPS) as a measurement of how likely our people are to recommend REMA 1000 as a place of work. The eNPS scale ranges from -100 to 100, where anything below zero is a negative result, 0-30 is a neutral result, 30-70 is a strong result and 70-100 is a very strong result. The most recent 2024 eNPS scores were 45 for franchisees and 37 for store workers, indicating strong loyalty and satisfaction. Store workers also scored a strong 4.3 out of 5 on overall work satisfaction. For administrative workers, three shorter hør & GJØR surveys complement the GPTW for more frequent updates on work satisfaction. In 2024, they all support the GPTW by showing strong results, with the latest eNPS score at 57.
In REMA 1000 Denmark, the APV was conducted for administrative workers. This survey is conducted every second year but was conducted anonymously for the first time in 2024. The results were strong, showing a high degree of work satisfaction, a willingness to recommend REMA 1000 as an employer and a proudness of being a REMA 1000 employee.
Reitan Convenience operates across seven countries and regularly conducts surveys among both administrative employees and franchisees. In 2024, the overall results were strong for both groups, with response rates of 91 percent for employees and 67 percent for franchisees.
Uno-X Mobility has operations in both Norway and Denmark. The Norwegian GPTW results were very strong, with a score on the “All in all a great place to work” question at 96 out of 100. In Denmark, the legally required APV is conducted at least once every three years and yielded strong results across several key areas.
The results from these surveys are reported back to the organisation, and relevant action plans are developed to improve results. This is a continuous process where the action plans are modified when based on the most recent results.
Looking ahead
Moving forward, Reitan Retail is committed to strengthening equality, improving gender balance and fostering the development of our employees. We will continue to refine our recruitment and leadership programmes to ensure equal opportunities at all levels. Expanding training initiatives, such as our Value Academy, and promoting internal career growth remain key priorities. By addressing barriers to inclusion and supporting diverse talent, we aim to build a more balanced and dynamic workforce that reflects our values and drives long-term success.
As we develop our approach to labour relations, we aim to strengthen our understanding of collective agreement coverage across our business areas and raise awareness around organised labour. By deepening our engagement with collective bargaining structures and adapting to diverse regulatory and cultural contexts, we seek to foster constructive dialogue between employers and employees, ensuring fair and transparent working conditions throughout our operations. In Latvia, government incentives, such as tax benefits for companies with collective agreements, have driven greater engagement in collective bargaining. We are interested in exploring whether similar initiatives could enhance labour relations across Reitan Retail more broadly.
In 2025, we will intensify our efforts to further improve gender balance in leadership positions and among franchisees through targeted leadership development programmes and a stronger focus on diversity in recruitment. Recognising its importance, gender balance remains one of the ten key performance indicators (KPIs) on our 2025 KPI scorecard, reinforcing our commitment to sustained progress in this area. This will continue to be a key priority in the years to come.
Based on the outcome of our DMA, we will reinforce our strategy, targets and policies to ensure all material topics are addressed.
Workers in value chain
Reitan Retail is committed to ensuring fair and equal treatment of workers across our value chain, with a strong focus on equal opportunities, working conditions and work-related rights. Guided by our double materiality analysis (DMA), we work to uphold ethical labour practices, ensure decent working conditions and promote fair employment standards throughout our operations and supplier networks. Given our sourcing regions and industries, risks of unsafe conditions, unfair wages and limited rights remain high.
Our assessment of ESRS S2 is based on company expertise, supplier risk assessments and due diligence on commodities, industries and sourcing countries. Dialogue with experts, NGOs, suppliers and producers deepens our understanding of social impacts. We rely on internationally recognised human rights and supply chain data to support our evaluation. Given our large and complex supply chains and reliance on high-risk commodities, the likelihood of severe impacts on workers in the value chain is significant.
Reitan Retail is committed to ensuring fair and equal treatment of workers across our value chain, with a strong focus on equal opportunities, working conditions and work-related rights.
Material impacts, risks and opportunities
Throughout the process of our DMA, 13 impacts and zero risks and opportunities were identified as material within the framework of ESRS S2 – Workers in the value chain. As part of this assessment, the three sub-topics Equal treatment and opportunities, Other work related rights and Working conditions were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material impacts related to workers’ rights and conditions, which are further detailed below.
NEGATIVE IMPACT
Equal treatment and opportunities covers critical issues such as gender equality, equal pay, skills development, inclusion of people with disabilities and ensuring workplaces are free from violence, harassment and discrimination. Women working in agriculture often face unequal access to land, credit and agricultural inputs, limiting their economic independence and opportunities. Wage disparities persist, and social and cultural norms continue to restrict women’s participation in decision-making and resource control. In the fuel sector, women remain underrepresented in technical and operational roles and primarily hold administrative and support positions where wage gaps are still significant.
Violence and harassment of workers remain significant risks in parts of our value chain, particularly in regions with weak labour laws, inadequate enforcement, political instability, or deep-rooted social inequalities. The agricultural sector is especially vulnerable, with heightened risks in countries such as Bangladesh, India, Pakistan, China, Mexico, Brazil, South Africa, Indonesia and the Philippines.
Operating within food, agriculture and mobility, Reitan Retail’s global supply chains involve risks of child and forced labour, particularly in high-risk industries and regions.
Child labour remains a concern in agriculture and the textile industry. Commodities such as cocoa, coffee, sugarcane, tea, palm oil, fruits and vegetables and rice are linked to hazardous conditions like extreme heat, chemical exposure, heavy loads and long hours. The textile industry is relevant to our uniform sourcing.
Forced labour is prevalent in agriculture, textiles, solar energy and transportation. Workers in key agricultural sectors may face exploitation, debt bondage and poor wages. Silicon, metal and cobalt, used in solar panels and electric vehicle batteries, originate from regions with long-standing human rights abuses. Additionally, reports highlight forced labour risks in the road freight transport sector in Europe, particularly among migrant workers.
Reitan Retail’s global supply chain, particularly in agriculture and fuels, carries significant risks to working conditions, especially for seasonal and migrant workers. Many face insecure employment, low wages, excessive hours and a lack of legal protections, leaving them vulnerable to exploitation and financial instability. Workers involved in the production of cocoa, coffee, sugar, palm oil and bananas often earn below living wages and are subject to unstable contracts with limited labour rights. Barriers to unionisation and collective bargaining in key sourcing regions, including China, India, Pakistan and Brazil, further restrict their ability to advocate for fair wages and safe working conditions. The oil and gas sector presents hazardous working environments, with long hours, toxic exposure, fire risks and heavy machinery accidents. Across both industries, poor work-life balance, seasonal pressures and lack of healthcare access further impact worker well-being.
Our approach and policies
With our complex and global supply chains, there is a high likelihood of severe social impacts. Addressing these issues requires stronger supplier engagement, due diligence and advocacy for fair labour practices to ensure safe and dignified work across our value chain. We consider the identification and management of human rights, labour rights and environmental risks a strategic priority.
Code of conduct
Our Code of conduct and Supplier code of conduct are clear about the required zero tolerance all our suppliers and partners must adhere to regarding harassment, violence and other breaches against human rights and safe working conditions. It adheres to both the workplaces where our suppliers and producers have direct control and the workplaces where they have potential impact through their value chains. Read more about our six steps of due diligence in ESRS 2 General information
Responsible procurement policy
We are committed to strengthening due diligence, supplier engagement and proactive measures to protect workers’ rights and fair working conditions. Reitan Retail’s Policy on responsible procurement, together with our codes of conduct and associated internal processes and routines, forms the basis for our work on business practice and supply chain management in our procurements. The Responsible procurement policy outlines the requirements and practices we expect our business areas to adhere to.
Gender equality and equal possibilities
Reitan Retail acts with an intent to strengthen equal treatment in the value chain. We expect our partners in the value chain to actively promote a fair and equal working environment through gender equality policies, ensuring fair pay across the supply chain and setting clear targets for increasing women’s representation in technical roles, for example. Providing accessible grievance mechanisms and investing in training and career development for underrepresented groups are equally important.
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As of today, we have no policy framework or targets for gender balance outside our own operations. We aim to lead by example, demonstrating that gender equality is both possible and necessary in the industries we represent. Read more about our efforts under S1, Own Workforce.
Human rights and decent working conditions
To ensure human rights and decent working conditions, we conduct risk-based due diligence across our value chain in line with the Norwegian Transparency Act (Åpenhetsloven). This includes assessments of
suppliers providing goods, fuel, energy and essential operational inputs. Key risks in our sectors include forced labour, child labour, corruption, lack of freedom of association, discrimination, inadequate living wages and environmental degradation. All risks that are likely to be intensified by climate change.
The table presents key figures from our due diligence efforts, covering over 10,000 suppliers and production facilities, and highlights identified risk categories that require prioritised follow-up and mitigation.
High-risk categories in our supply chain
As part of our supply chain risk assessment, we have identified several supplier categories with elevated risk levels due to their potential impact on people and the environment. Our most material and highrisk categories are outlined in the following section, and these represent areas where we focus our risk assessments and mitigation efforts.
In 2024, Reitan Retail expanded the number of reported and risk -assessed suppliers, reinforcing our commitment to
and accountability. All business areas and subsidiaries continue to strengthen their due diligence processes, progressively incor porating
suppliers and production facilities into assessments.
Parts
have
We have also deepened engagement with high -risk suppliers and facilities by conducting on -site
Food and non-food – The majority of our suppliers provide goods for our 2,800 grocery and convenience stores. The commodity markets pose a high risk for human rights violations, particularly in tea, coffee, cocoa, cane sugar and tropical fruit supply chains, where child and forced labour are well-documented. In Europe, migrant workers in agriculture also face exploitative conditions. Health risks from pesticide use add to concerns. Given these risks, raw materials and production locations remain key focus areas.
Fuel and biofuel – The oil and gas sector has inherent human rights risks, which we mitigate by sourcing from large Scandinavian suppliers with strict monitoring policies. However, biofuels present risks related to land use change. Uno-X Mobility takes a cautious and informed approach to biofuel sourcing and distribution, ensuring compliance with regulations and focusing on solutions that contribute to lower emissions.
Transportation – Global trade growth has intensified risks in transport and logistics, particularly in road transport, where low wages, informal work, long shifts and traffic-related HSE risks are prevalent.
Fixed assets – Building materials, inventory and office supplies originate globally. Due diligence at the operational level ensures qualified risk assessments.
Electronics – Our operations rely on PCs, mobile phones, cameras and other electronic devices sourced from an industry with widespread subcontracting, environmental challenges and mineral supply chain risks. Key concerns include unsafe mining conditions, forced and child labour, community displacement and conflict financing.
Textiles – Uniforms are sourced mainly from Bangladesh, a country with poor working conditions, excessive overtime and child labour concerns.
Packaging – Plastic and paper packaging production involves hazardous chemicals and unsafe working environments, particularly in countries with weak labour protections.
Operational services and contracted labour – A range of services contribute to the company’s operations and require contracted labour, such as cleaning services, security services, maintenance and repair. These areas may pose potential risks, including labour rights violations, health and safety concerns and compliance with ethical sourcing standards.
Results from assessments of high risk suppliers
Suppliers with signed code of conduct (SCoC)
Duty to provide information
Targets
As part of our alignment with ESRS S2 – Workers in the value chain, we commit to setting additional targets related to workers in the value chain based on the outcome of the DMA that are not already addressed by our existing targets. This work will remain a focus area for us in the coming year. As stated in our Sustainability strategy, we have set up the following targets with an impact on workers in the value chain:
Actions taken in 2024
In 2024, we focused on equal treatment, work-related rights and working conditions in our supply chain. We engaged with suppliers to address gender disparities, fair wages and labour rights, particularly in agriculture and manufacturing. Assessments on working conditions for seasonal and migrant workers highlighted risks such as unstable contracts, excessive working hours and inadequate wages.
list of high-risk commodities, identified using ESG risk data from multiple sources and assessed based on material and strategic impacts, regulatory requirements and insights from our operations and stakeholders. The risks will be mitigated through certifications and third-party verifications as a complement to supplier engagement, enhanced due diligence and monitoring.
TARGET
Increasing the traceability of risk commodities and suppliers through due diligence assessments
We also strengthened due diligence efforts to reduce risks of child and forced labour in high-risk agricultural supply chains like cocoa, coffee and palm oil. By reinforcing expectations on union rights, legal protections and living wages, we worked to support fair and safe working conditions throughout our value chain. Some of our key measures are highlighted below.
Looking ahead
Onwards, we will continue to actively work to protect workers in the value chains from unsafe or unhealthy working conditions, and support equal treatment and opportunities. Our focus will be on the following actions:
TARGET
• We have strengthened the implementation of our responsible procurement policy in Uno-X Mobility and Reitan Retail AS, through two in-depth risk assessments and several working group meetings. As anyone in our organisation who influences procurement plays a key role in supporting human rights and ensuring decent working conditions, training and raising awareness remain essential to ensuring a successful implementation.
• Strengthen supplier due diligence processes with supplier management and internal government structures. Ensure systematic follow-up and analysis of human rights and decent working conditions, and ensure impact criteria are followed up in supplier assessments and enhanced due diligence.
• Improve risk data quality to account for fastchanging geopolitical or environmental events with impact on human rights and workers in our value chains. Secure information on the origin of all commodities and products.
Reitan Retail has received 172 inquiries under the Transparency Act, primarily regarding the country of origin. A significant number of these requests were related to consumer campaigns opposing products from Israel. All inquiries were addressed within the required deadline.
Increasing the share of products containing risk commodities that are certified for environmentally friendly and sustainable production (2030), based on the share of certifications as of 2025
In 2024, Reitan Retail expanded the number of reported and risk -assessed suppliers, reinforcing our commitment to transparency and accountability. All business areas and subsidiaries continue to strengthen their due diligence processes, progressively incor porating more suppliers and production facilities into assessments.
Parts of our organisation have implemented a new supplier risk evaluation system, leveraging real data to enhance accuracy an d adaptability in risk assessments. This shift has led to a reduction in high -risk suppliers, driven by both a streamlined supplier base and refined risk classification methodologies.
The full statement according to the Norwegian Transparency Act will be published by June 30, 2025.
We have also deepened engagement with high -risk suppliers and facilities by conducting on -site visits to verify working conditions and ensure compliance with human rights and labour standards. These efforts have provided greater insight into supply chain risks, allow ing for risk recalibrations where improvements have been demonstrated.
Duty to provide information
• We have strengthened our understanding of responsible sourcing through in-depth stakeholder dialogue with NGOs and suppliers of coffee, water management, ethical trade, certification and energy. The discussions focused on living wages, impacted local communities and working conditions. The insights have been used to improve our responsible procurement policy and develop our high-risk commodity policy. See our Statement on due diligence in ESRS 2 General information for full reporting.
• We have started drafting a High-risk commodity policy that will specifically address human rights and working conditions, reinforcing our commitment to responsible sourcing. The policy will define a minimum
• Actively develop knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
• Raise awareness among customers and stakeholders to drive positive change for workers in the value chains. We will educate and guide our employees, franchisees and customers, and keep open dialogues with suppliers, partners and industry peers to better understand the issues and share best practices.
Affected communities
Reitan Retail is committed to responsible operations that respect the rights and well-being of affected communities throughout our value chain. Our double materiality assessment (DMA) highlights potential social impacts, particularly in sourcing regions where land use, resource extraction and infrastructure development can affect local livelihoods, indigenous rights and environmental conditions.
We recognise risks such as displacement, deforestation and water pollution, which can harm communities reliant on natural resources. To mitigate these, we conduct thorough due diligence, engage with NGOs and local stakeholders and enforce supplier accountability through strict ethical standards. Beyond risk management, we aim to create positive impacts by supporting local initiatives in education, health and sustainable development while promoting fair labour practices.
Our assessment of social impacts is based on company expertise, supplier risk evaluations and due diligence on commodities, sourcing countries and industries. Dialogue with experts, NGOs, suppliers and producers deepens our understanding of these impacts. We also rely on internationally recognised human rights and supply chain data. Given our large and complex
supply chains and reliance on high-risk commodities, the severity and likelihood of impacts on communities remain significant.
Material impacts, risks and opportunities
Reitan Retail is committed to responsible operations that respect the rights and well-being of affected communities throughout our value chain.
Throughout the process of our DMA, 10 impacts and zero risks and opportunities were identified as material within the framework of ESRS S3 – Affected communities. As part of this assessment, the four sub-topics Communities’ civil and political rights, Communities’ economic, social and cultural rights, Particular rights of indigenous communities and Interaction with local communities were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material impacts related to workers’ rights and conditions, which are further detailed below.
Communities’ civil and political rights
Communities’ economic, social and cultural rights
Reitan Retail’s upstream value chain poses a significant risk of negatively impacting local communities, particularly concerning their civil and political rights. Our DMA highlights that land use, resource extraction and supply chain operations in high-risk sourcing regions can lead to displacement, restricted access to natural resources and conflicts over land rights.
In agricultural and fuel sectors, human rights defenders (HRDs) advocating for workers’ rights, indigenous land claims and environmental protection face severe threats, including violence, intimidation and legal persecution. Countries such as Brazil, Colombia, Honduras, Mexico, the Philippines and Peru present particularly high risks, with the Amazon region being a focal point of land and resource conflicts. Colombia and the Philippines have some of the highest recorded killings of HRDs. Given these risks, there is a heightened responsibility to ensure that suppliers operate with full respect for human rights, maintain free and informed consultation with affected communities and prevent any complicity in human rights violations within our supply chain.
Our upstream value chain presents a risk of negatively impacting local communities’ economic, social and cultural rights. Agricultural expansion and resource extraction can lead to land appropriation, displacement and loss of access to traditional territories, particularly for indigenous communities. Deforestation and habitat destruction threaten local livelihoods, reducing the ability to farm for subsistence and disrupting cultural heritage. The shift to monoculture farming diminishes biodiversity and the availability of culturally significant foods, while industrial agriculture outcompetes small-scale farmers, leading to economic displacement and job losses.
The use of chemical pesticides and fertilisers poses additional risks, contaminating water sources and impacting community health and sanitation. Water pollution and over-extraction for agricultural use can deplete vital resources, exacerbating water scarcity and reducing overall quality of life. These environmental and economic pressures contribute to the erosion of community resilience and cultural identity, making land-related rights violations a key concern in high-risk sourcing regions.
A potential negative impact from Reitan Retail’s value chain and own operations concerns fuel leaks from our mobility locations. This may cause evacuations, business disruptions and temporary displacement.
Particular rights of indigenous communities
Through active engagement and partnerships, we also create positive impacts in interaction with local communities by supporting local initiatives on health and well-being. These efforts aim to create lasting positive impacts while reinforcing our commitment to community engagement and well-being.
Reitan Retail’s upstream value chain presents a risk of negatively impacting the particular rights of indigenous communities. Agricultural expansion and land use changes can lead to displacement, loss of access to traditional territories and degradation of ecosystems vital to their cultural and economic survival. Indigenous communities are often excluded from decision-making processes related to large-scale agricultural projects, facing coercion or misinformation that undermines their right to free, prior and informed consent. Environmental impacts such as deforestation, soil degradation and water pollution further threaten biodiversity and cultural heritage, disrupting traditional practices and livelihoods. Violations of internationally and nationally recognised rights, including land and resource rights, as well as cultural and religious freedoms, remain a critical concern in high-risk sourcing regions.
Our approach and policies
With our complex and global supply chains, there is a high likelihood of severe social impacts. Addressing these issues requires stronger supplier engagement, due diligence and advocacy for fair labour practices to ensure safe and dignified work across our value chain. We currently have no specific policy framework or targets dedicated solely to affected communities. However, we have several overarching frameworks in place that address economic and social risks with direct and indirect impacts on communities.
In our own local communities, where we have sales outlets, franchisees and customers, we constantly work to inspire healthy and active lifestyles, contribute with working opportunities and foster strong community relationships, ensuring that our presence contributes to social development and resilience. Read more about our efforts to promote healthier lifestyles in ESRS S4 Consumers and end-users.
Code of conduct
Our Code of conduct and Supplier code of conduct clearly state that we have zero tolerance for violations of basic human rights. All suppliers and partners must respect the rights of indigenous communities, as well as economic, social, cultural, civil and political rights. It adheres to both the workplaces where our suppliers and producers have direct control, and the workplaces where they have potential impact through their value chains. Read more about policies and due diligence in Sustainability governance and Statement on due diligence in ESRS 2 General Information
Responsible procurement policy
We are committed to strengthening due diligence, supplier engagement and proactive measures to protect affected communities’ rights. Reitan Retail’s Policy on responsible procurement, together with our Code of conduct, Supplier code of conduct and associated internal processes and routines, forms the basis for our work towards more responsible business practice and supply chain management in our procurements. The Responsible procurement policy outlines the requirements and practices we expect our business areas to adhere to. Read about risks and our due diligence process in ESRS 2.
Targets
As part of our alignment with ESRS S3 – Affected communities, we commit to setting additional targets related to affected communities based on the outcome of our DMA that are not already addressed by our existing targets. This work will remain a focus area for us in the coming years. As stated in our Sustainability strategy, we have set up the following targets with an impact on workers in the value chain: TARGET
Increasing the traceability of risk commodities and suppliers through due diligence assessments
Actions taken in 2024
We are committed to targeting negative impacts on communities’ rights and supporting healthy and active lifestyles locally. The actions taken in 2024 were:
• We have strengthened our understanding of responsible sourcing through in-depth stakeholder dialogue with NGOs and suppliers of coffee, water management, ethical trade, certification and energy. The discussions focused on living wages, impacted local communities and working conditions. The insights have been used to improve our responsible procurement policy and develop our high-risk commodity policy. See our Statement on due diligence, in ESRS 2 General information for full reporting.
• We have started drafting a High-risk commodity policy that will specifically address human rights and working conditions, reinforcing our commitment to responsible sourcing and supporting affected communities. The policy will define a minimum list of high-risk commodities, identified using ESG risk data from multiple sources and assessed based on material and strategic impacts, regulatory requirements and insights from our operations and stakeholders. The risks will be mitigated through certifications and third-party verifications as a complement to supplier engagement, enhanced due diligence and monitoring.
Looking ahead
We are actively working to protect workers in the value chains from unsafe or unhealthy working conditions and support equal treatment and opportunities. Onwards, our focus will be on the following initiatives:
industries. Secure information on the origin of all commodities and products to enhance the accuracy of risk assessments.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
• Raising awareness among employees and stakeholders about the implications our value chains have on affected communities and how to avoid it, working with due diligence and dialogues. We will drive stakeholder dialogues and cooperate with peers to learn more about challenges, impacts and risks but also share best practices on solutions.
Increasing the share of products containing risk commodities that are certified for environmentally friendly and sustainable production (2030), based on the share of certifications as of 2025
• Strengthening supplier due diligence processes with supplier management and internal government structures. Ensure systematic follow-up on social and environmental impacts on communities’ rights and environmental and economic pressures that may weaken community resilience and cultural identity.
• Improving risk data quality to account for fastchanging geopolitical or environmental events with impact on communities in high-risk areas or
Consumers and end-users
Reitan Retail is committed to ensuring fair access to products and services, promoting healthier choices and inspiring sustainable and active lifestyles for consumers across all markets. With a broad presence in grocery, convenience and mobility across seven countries, we strive to make essential products affordable and accessible to all, regardless of socio-economic background.
Our double materiality assessment (DMA) is based on Reitan Retail’s expertise, market intelligence, stakeholder dialogue and external research. It incorporates insights from UNICEF, Nordic health authorities, scientific research and our Sustainability strategy. We evaluate impacts on consumers, endusers, suppliers and producers, considering product availability, pricing and marketing practices. Currently, the scale and scope of social impacts are limited, affecting a minority of consumers, but remain a focus for ongoing evaluation and improvement.
Reitan Retail is committed to ensuring fair access to products and services, promoting healthier choices and inspiring sustainable and active lifestyles for consumers across all markets.
Material impacts, risks and opportunities
Throughout the process of our DMA, two impacts and zero risks and opportunities were identified as material within the framework of ESRS S4 – Consumers and end-users. As part of this assessment, the two sub-topics Social inclusion of consumers and end-users and Consumer preferences were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material impacts related to consumers and end-users, which are further detailed below.
Consumer preferences are shifting towards more sustainable and climate-friendly alternatives in food and fuel. However, many customers still face barriers in adopting healthier and lower-impact options, whether due to habits, availability, or cost. As a retailer, Reitan Retail has a unique opportunity to inspire and guide consumers towards better choices by expanding our range of more responsibly produced, plant-based and certified products. We aim to strengthen our role in transforming the food system by supporting farmers and suppliers in transitioning to more sustainable agricultural practices, particularly in plant-based production. By promoting certifications that ensure high standards for people, animal welfare and the environment, we can make it easier for consumers to make more responsible choices.
Beyond food, Uno-X Mobility supports the transition to electrical energy by offering
some of the most competitively priced electric vehicle (EV) charging solutions in the market. Thereby making future mobility more accessible. Additionally, we promote physical and mental well-being through sponsorships, grassroots sports collaborations and partnerships with organisations that encourage active lifestyles.
Our approach and policies
We aim to leverage our market influence to positively impact consumer health and accessibility, ensuring that all customers can make informed and responsible choices. A core part of our impact lies in expanding access to healthier food options. We actively work with suppliers and manufacturers to develop products with improved nutritional profiles, shift best-sellers’ recipes towards better ingredients and explore alternative protein sources to meet changing dietary demands and challenges such as rising obesity rates. Through our strong market position, we can increase the availability and visibility of healthier options, ensuring that consumers have access to nutritious choices at competitive prices.
Encouraging more sustainable consumption is not just an environmental responsibility but also a competitive advantage. Offering more environmentally friendly and healthier alternatives in food and energy builds customer trust, enhances brand loyalty and differentiates us in the market, contributing to longterm growth and customer engagement.
Aligning with Nordic Nutrition Guidelines
Our efforts align with Nordic Nutrition Guidelines, focusing on increasing the consumption of fruit, vegetables, whole grains, fish and seafood across REMA 1000 and Reitan Convenience. In response to global food system challenges, such as urbanisation, rising obesity rates and food insecurity, we are committed to offering affordable, more responsibly produced food while raising awareness through campaigns and consumer education.
Targets
As part of our alignment with ESRS S4 – Consumers and end-users, we commit to setting targets on topics related to consumers and end-users that are identified as material and not already addressed by our existing targets. This work will remain a focus area for us in the coming years. As stated in our Sustainability strategy, we have set up the following targets with impact on consumers and end-users:
TARGET
Develop new and existing products and alternatives within relevant categories in a healthier direction.
TARGET
Offering more healthy options like fruits, vegetables, berries, whole grains, white meat, fish and seafood in our stores.
TARGET
Increase the share of renewable energy sold for road transport to at least 30 percent by 2030, making it easier for customers to choose renewable alternatives through improved access and convenience.
Actions taken in 2024
Reitan Retail is committed to strengthening the positive impact on consumers’ and end-users’ consumption choices, lifestyles and health. We have focused our efforts on the following actions:
• The share of units sold of healthier products such as fruits, vegetables, berries, whole grains, fish, and seafood and keyhole products has increased to 32.1 percent of edible products sold in 2024 in REMA 1000 Norway and Denmark. Up 0.3 percent from 2023. The share of healthier products in systemwide sales from edible products is stable at 29 percent.
• Increased product development of existing and new products such as reduction or minimisation of saturated fats, added sugars, salt and calories and/or increased share of whole grains in products. Examples from 2024 are the launch of packets of minced pork or minced beef where half the meat has been replaced
with vegetables, and the toppings and fillings in wraps, salads and sandwiches with an increased content of vegetables and organic protein sources instead of animal meat, particularly red meat.
• As of year-end 2024, Uno-X Mobility offers 10.2 percent renewable energy as part of the total sold energy to road transport throughout Norway and Denmark. It is a slight increase from 2023 (9.9 percent). We offer 74 EV charging locations, which is an increase from 38 locations in 2023, making it possible for 410 EVs to charge simultaneously at Reitan Retail locations in Norway and Denmark. For heavy-duty EVs, six locations in Norway and four in Denmark are in operation, making it possible for 36 heavy-duty EVs to charge simultaneously at our locations.
• Contributed to healthy habits and lifestyles by supporting local organisations and community partners through business areas and franchisees.
HEALTHIER PRODUCTS IN SYSTEMWIDE SALES IN REMA 1000 NORWAY
A total of 15,821 children and youth participated in camps and activities focusing on physical activity and health, such as sports clubs, youth organisations for mental health and cooking schools.
• Set a deadline for phasing out food and beverage products containing palm oil and palm oil derivatives by 2028 in all of Reitan Retail. Palm oil is one of the leading causes of rainforest deforestation, with severe consequences for biodiversity. We are dedicated to ensuring that neither we nor our customers contribute to this environmental impact. REMA 1000 in Norway has gradually been phasing out palm oil since 2014.
• Started drafting a Policy on high-risk commodities that will address specific ESG risks such as child labour, deforestation and pollution. In our commitment to making good choices easier for our customers, we find it necessary to be particularly attentive to commodities associated with high risks for negative impacts on people and the environment. When purchasing products from us, all customers should be confident that we strive to minimise the risk of negative impacts.
1 REMA 1000 Norway: Fresh and frozen fruit, vegetables, and berries. Additionally, 100 percent juice and smoothies are included REMA 1000 Denmark: Fresh fruit, vegetables and berries.
2 REMA 1000 Norway: Products labelled with Grovhetsskalaen and other whole grain products with keyhole label. REMA 1000 Denmark: Products labelled with Fuldkornsmærket.
3 REMA 1000 Norway: Fish and seafood products consisting of 100 percent fish, including fresh and frozen fish, as well as Keyho lelabelled fish and seafood products. REMA 1000 Denmark: Keyhole -labelled fish and seafood products.
4 All keyhole labelled products not included in the rows above.
5 Other edible products include both food and drink products Keyhole
2 REMA 1000 Norway: Products labelled with Grovhetsskalaen and other whole grain products with keyhole label. REMA 1000 Denmark: Products labelled with Fuldkornsmærket.
3 REMA 1000 Norway: Fish and seafood products consisting of 100 percent fish, including fresh and frozen fish, as well as Keyho lelabelled fish and seafood products. REMA 1000 Denmark: Keyhole -labelled fish and seafood products.
4 All keyhole labelled products not included in the rows above.
5 Other edible products include both food and drink products
Keyhole labelled products
2,325 keyhole labelled products were available in REMA 1000 Norway and Denmark during 2024. As at 31 December 2024, 1,046 keyhole labelled products were available.
Report 2024
Looking ahead
We are actively working to strengthen the positive effects of our operations on customers and end-users lifestyles while supporting global efforts to improve public health. Onwards, our focus will be on the following initiatives:
• Developing new and existing products in a healthier direction, for example by reducing salt, sugar, saturated fat, additives and calories but also replace sources of protein such as red meat to organic proteins or white meat.
• Continuing to innovate to make the healthier option more accessible and attractive to our customers through campaigns and marketing, economic incentives, improved quality and taste of alternative products and greater accessibility in stores.
• Following up sales and customer data more in detail to make nudging and product development activities
more efficient. A starting point is a more detailed definition of “healthier products”.
• Promoting organic and sustainable sourcing by aligning with the EU Green Deal’s target of 30 percent organic produce by 2030 to support biodiversity-friendly farming.
• Actively developing knowledge and management tools in collaboration with NGOs, industry experts and researchers, ensuring that our approach is informed by the latest scientific understanding and best practices.
• Raising awareness among customers and stakeholders to drive positive change. We will educate and generate engagement and enthusiasm among our customers, suppliers and employees on the importance of healthy lifestyles, how to eat in a healthier way and inspire to physical activities.
3.4 Sustainability governance
Business conduct
At Reitan Retail, we are committed to doing business with integrity and in compliance with all applicable laws and regulations. As a value-driven company, our strong ethical foundation guides how we create financial value, build trust with stakeholders and take responsibility throughout our operations. We nurture a culture where doing the right thing comes naturally, fostered through dialogue, shared examples and everyday choices. By supporting one another and helping each other succeed, we make everyday life a little bit easier and the world a little bit better.
The double materiality assessment (DMA) within this topic is based on workshops with colleagues, dialogue with NGOs and suppliers, supplier audits, laws and regulations. It has been reviewed by internal and external subject matter experts.
Reitan Retail is committed to conducting business with integrity, ensuring compliance with all applicable laws and regulations.
Material impacts, risks and opportunities
Throughout the process of our DMA, 12 impacts and 4 risks and opportunities were identified as material within the framework of ESRS G1 – Business conduct. As part of this assessment, the seven sub-topics Corporate culture, Protection of whistleblowers, Animal welfare, Political engagement, Management of relationships with suppliers including payment practices, Corruption and bribery and disruptions caused by external factors were accordingly evaluated. The findings provide a structured foundation for understanding Reitan Retail’s material workforce-related impacts, which are further detailed below.
Reitan Retail operates in industries where there is a risk of poor animal welfare and violations of animal rights. As both a purchaser and producer of food products containing animal proteins, we recognise the importance of ensuring responsible treatment of animals, whether products are procured from external suppliers or produced within our own operations. However, regional differences in regulatory frameworks and enforcement create higher risks in certain countries. Addressing these risks requires awareness and oversight across the supply chain to mitigate potential welfare concerns.
Reitan Retail has made significant investments to improve animal welfare in chicken production. Through Norsk Kylling and REMA 1000 Norway, the company has invested two billion kroner in a transformation that includes a slower-growing breed, improved living conditions, more space, better lighting and enriched environments, enhancing welfare across 30 percent of Norwegian chicken production.
Recognising the importance of knowledge-sharing and industry collaboration, Reitan Retail has established a learning centre at its new production facility, designed to facilitate meetings, share best practices and support industry players seeking to improve animal welfare in their own supply chains. By actively engaging with industry stakeholders, Reitan Retail aims to support broader improvements in animal welfare through knowledge exchange, best practices and continuous innovation. Raising animal welfare standards across all products can involve higher financial costs. These include investments in new production methods, increased costs from brand suppliers and the development of integrated value chains for more animal proteins. Ensuring responsible sourcing and improved welfare conditions requires long-term commitments and financial resources, balancing ethical considerations with economic feasibility. An increasing number of consumers value ethical and sustainable practices, including animal welfare. This presents an opportunity for Reitan Retail to earn trust through high standards, traceability, local sourcing and minimal use of antibiotics.
As a family-owned company, Reitan Retail’s culture and corporate values serve as a guiding tool in decision-making and daily operations. We foster an environment where individuals and teams feel empowered to act, take initiative and explore new solutions, ensuring that inclusion and individual potential are recognised and valued.
With 46,000 people in our system, over 10,000 business relationships and around two million daily customers, our impact extends far beyond our organisation. Upholding our values and Code of conduct is essential in maintaining an ethical corporate culture and ensuring responsible business practices across all interactions.
With as many as seven identified tiers in our supply chain and an estimated 10,000 business relationships, Reitan Retail faces an inherent risk of corruption and bribery. Our business activities span countries with varying levels of corruption tolerance and enforcement, increasing exposure to unethical practices. Given the nature of our core operations within the sectors of food and fuel, we recognise the importance of strict compliance measures to mitigate these risks.
Food fraud is another corruption-related risk in the grocery and convenience industry, where mislabelling, misrepresentation, or fraudulent ingredients in purchased products can compromise food safety and consumer trust. Ensuring traceability and transparency in the supply chain is critical to preventing unethical sourcing practices.
Furthermore, inadequate anti-corruption compliance measures and training can exacerbate the risk of unethical business conduct. Strengthening detection, prevention and due diligence processes is essential to ensuring compliance and maintaining trust across the value chain.
Corporate culture
Animal welfare
Disruptions caused by external factors
Disruptions caused by external factors such as cyber-attacks can disrupt our supply chain, affecting business, customers and suppliers. Read more in Chapter 2.5 Risk and risk management.
Management of relationships with suppliers
Reitan Retail operates long and complex supply chains involving high-risk commodities from multiple supplier tiers, including regions with elevated risk. Limited transparency can lead to uncertainty about origin, ethical practices and environmental or social impacts.
Challenges remain due to knowledge gaps, limited procedures and insufficient systems, making full visibility and responsible sourcing difficult to achieve.
There is a potential risk that evolving regulatory and ESG expectations will outpace existing data capabilities in the industry. Without sufficient traceability and analytical insight, we could face rising compliance and reputational risks, along with increased future costs for system upgrades and workforce development.
Protection of whistleblowers
As a large organisation with extensive operations and a broad supplier network, Reitan Retail relies on effective monitoring and transparent reporting mechanisms to uphold ethical standards. With over 10,000 business relationships, ensuring that our people and supply chain workers can safely report concerns is essential to identifying and addressing risks related to labour rights violations and unethical practices.
The relatively low use of our whistleblower function may indicate insufficient awareness or accessibility. Factors such as geographical distribution, regulatory differences and varying levels of worker representation may impact the willingness or ability to report concerns. Strengthening promotion, accessibility and trust in our whistleblower channels is key to improving engagement and effectiveness.
Our approach and policies
At Reitan Retail, conducting business with integrity, transparency and accountability is at the core of our operations. Our governance framework is built on a set of key values, policies and governing documents that ensure ethical business conduct, compliance with legal requirements and the promotion of responsible business practices. These documents support our corporate culture and clarify expectations for how employees, suppliers and business partners act in line with our values.
We recognise that strong governance is essential for fostering trust among stakeholders and ensuring longterm business success. Therefore, in addition to being value-driven, we have implemented robust policies that address critical aspects of our corporate responsibility, including anti-corruption, whistleblowing, supplier ethics and responsible procurement.
Code of conduct
Reitan Retail’s Code of conduct is the most central governance document, setting the foundation for ethical business practices and responsible decision-making. It aligns with our corporate values and is mandatory for all employees, franchisees, consultants and others working on behalf of Reitan Retail and our subsidiaries.
Compliance is monitored by the Corporate Management Board, with the Board of Directors
overseeing any deviations to maintain accountability and uphold our ethical standards. All employees are encouraged to report any deviations from the Code of conduct using the company’s whistleblowing channel.
Anti-corruption and anti-money laundering policy
Reitan Retail has a zero-tolerance policy toward corruption, bribery and financial misconduct. Our Anti-corruption and anti-money laundering policy ensures compliance with applicable regulations and establishes guidelines to prevent unethical practices in business transactions. All employees and representatives are encouraged to undergo digital training on anti-corruption measures. Additionally, suppliers are expected to comply with anti-corruption provisions outlined in our Supplier code of conduct.
No incidents related to fraud, corruption, bribery or breach of anti-trust were reported in 2024. Please read about the statement of objections from the Norwegian Competition Authority regarding an ongoing case from 2020.
The company did not receive any convictions or fines for violations of anti-corruption or anti-bribery law in the year, nor has it been subject to any legal action relating to corruption and bribery.
Whistleblowing process
We encourage a culture of openness and accountability through our whistleblowing Process, which provides
employees and external stakeholders with a confidential and secure channel to report unethical behaviour or concerns. Our procedures guarantee that all reports are handled with due diligence, ensuring the protection of whistleblowers against retaliation. Employees are regularly informed about whistleblowing procedures through awareness campaigns, ensuring they understand how to report concerns safely and confidentially.
By integrating monitoring, due diligence and clear reporting mechanisms, we work towards identifying and addressing risks related to labour rights, discrimination and working conditions, ensuring alignment with legal obligations and responsible business practices.
Reitan Retail provides a common whistleblowing channel, managed by an independent third party, which is available to all stakeholders through reitanretail.no. Given our operations in seven countries, each business area and its subsidiaries also maintain local whistleblowing channels, ensuring accessibility in the relevant languages.
In 2024, a total of 135 incidents were reported, with most cases involving potential violations of laws and regulations, followed by cases related to discrimination and harassment. See table.
There were no severe human rights incidents in the period, and therefore, no fines, penalties or compensation were paid to remedy this.
Supplier code of conduct
Reitan Retail’s Supplier code of conduct establishes clear expectations for ethical, social and environmental responsibility across our supply chain. It covers key areas such as human rights, labour rights, environmental protection and anti-corruption measures. Suppliers with signed agreements and those providing goods sold in our stores are required to sign and adhere to this code. We conduct regular audits and compliance reviews to ensure adherence.
Responsible procurement policy
Our Responsible procurement policy integrates sustainability principles into our procurement
processes. This policy ensures that all purchasing decisions align with international human rights standards, environmental sustainability goals and ethical business conduct. Animal welfare is a priority within this policy, and we are committed to ensuring that animals in our supply chains are treated with care and respect. We apply due diligence and risk management approach to assess supplier compliance, complemented by supplier training programmes to enhance awareness and implementation.
Commitment to training and awareness
To strengthen awareness and ensure compliance with our governance principles, all companies in Reitan Retail provide relevant training through internal platforms, including e-learning modules, workshops and onboarding sessions. These are designed to make it simple for all employees to understand and apply our codes and policies in their daily work. Governance topics are introduced from day one, supporting a shared understanding of what responsible conduct means in practice and contributing to a culture where ethical choices come naturally.
Beyond internal training, we collaborate with suppliers and business partners through capacity-building initiatives to enhance compliance and responsible business practices across our value chain. By fostering a culture of ethical awareness and accountability, we reinforce our commitment to responsible corporate governance and sustainable business development.
Looking ahead
In 2025, we will start a comprehensive mapping and review of our policies and procedures. All policies and procedures are in scope, including those of our business areas and those of Reitan Retail. The purpose of this initiative is to ensure compliance with CSRD by identifying and closing gaps, strengthen our governance by learning from best practices and strengthen our position as one company by aligning policies where relevant.
In addition, we will continue our work on training and awareness and strengthen the implementation of our policies within our organisation.
3.5 Sustainability appendix
GHG accounting methodology
Methodology
Reitan Retail applies greenhouse gas (GHG) inventory accounting principles throughout its reporting methodology consistent with the GHG Protocol Corporate Accounting and Reporting Standard (GHG Protocol). The GHG Protocol was developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). In alignment with the GHG Protocol, Reitan Retail takes into consideration the gases CO2, CH4, N2O HFCs, PFCs, SF6 and NF3 when converting reported data to tons CO2-equivalents (tCO2e). The Global Warming Potential (GWP) factors used in the conversion of non-CO2 greenhouse gases into CO2e are based on the fifth and sixth assessment report (Assessment Report; AR5 and AR6) over a 100-year period from the Intergovernmental Panel on Climate Change (IPCC). The GWP source for each emission factor has been determined based on the recommendation of the original source of the factor, if available, and the accessibility of updated and comparable data. Reitan Retail uses CEMAsys.com to map and calculate all emissions. GHG emissions accounting has, as of 2024, no agreed method for calculating emission factors. The 2024 GHG emissions accounting is developed using emission factors calculated based on methodologies recognised by CEMAsys as credible. However, we are aware that other emission factors exist, and there is no consensus on which emission factors should be used. CEMAsys use emission factors from well-known, internationally recognised sources, including DEFRA, IEA and Ecoinvent. CEMAsys is open about the sources and calculation methodology used in the emission factors and strives for consistency throughout the reporting periods. As for circumstances where there is a change in methodology, this is communicated.
Emissions are reported annually in accordance with ESRS requirements and the GHG Protocol.
Base year and recalculations
To ensure consistency across all scopes, we have adjusted our reporting base year for Scope 1 and Scope 2 from 2020 to 2022. The base year for Scope 1, Scope 2 and Scope 3 is now 2022. Aggregated emissions data from fully owned subsidiaries is presented for the period 2022–2024.
Historical emissions have been recalculated to accurately reflect our portfolio following recent acquisitions. These adjustments ensure consistency in tracking greenhouse gas (GHG) emissions over time and align with best practices for corporate emissions reporting.
Following the acquisition of ALDI stores in Denmark in December 2022 and subsequent approval by Danish competition authorities in August 2023, REMA 1000 Denmark initiated a phased conversion of the acquired stores to align with its retail concept. The first stores reopened under the REMA 1000 brand in late 2023, with the majority converted throughout 2024. By the end of 2024, 10–15 stores remained in transition due to structural adjustments and lease negotiations, with full integration expected by the end of 2025.
As detailed sales data and climate accounts were unavailable from ALDI, historical emissions for the acquired stores were estimated using a proxy approach based on the product mix of existing REMA 1000 Denmark stores. To improve accuracy, the stores were classified by region and size, using REMA 1000 Denmark’s 16 operational regions as a framework. This approach ensures that emissions calculations accurately reflect the geographical distribution and operational characteristics of the converted stores. As a result of these structural changes, historical emissions were recalibrated, leading to a 5.6 percent increase in Scope 3 emissions for the base year 2022.
Additionally, adjustments were made to account for
business expansions within Uno-X Mobility. In Denmark, 57 fuel stations were acquired, while in Norway, operations expanded to include the supply of an external fuel station chain. These structural changes required a recalibration of historical emissions, resulting in a 7.2 percent increase in Scope 3 emissions for the base year 2022.
Restatements of information
As our sustainability reporting matures, our GHG accounting continues to evolve. With improved data quality and a deeper understanding of emissions sources, minor adjustments have been made compared to the GHG accounting disclosed in our 2023 Annual and sustainability report. These recalculations remain immaterial, accounting for less than 0.1 percent in 2022 and 0.4 percent in 2023.
Organisational and operational boundary Reitan Retail uses the operational control approach under the GHG Protocol, covering emissions from activities where we have the authority to set operating policies, regardless of ownership.
We have operational control over four business areas, REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno-X Mobility across seven countries in the Nordics and Baltics. All subsidiaries under these business areas are included in our consolidated sustainability reporting. GHG emissions from facilities, logistics and retail operations under operational control are reported under Scopes 1 and 2, in alignment with IFRS treatment of operating entities.
Although franchises are not consolidated in our financial statements, emissions from REMA 1000 Norway, REMA 1000 Denmark and Reitan Convenience franchise stores are included in Scope 1, 2 and relevant Scope 3 categories. This is due to Reitan Retail’s operational control over franchise operations. As such, these emissions are not reported under Scope 3 category 14 (franchises) but under Scopes 1 and 2.
For minority-owned companies such as Gram Slot and BAMA, where Reitan Retail does not have operational control but holds equity interests, we report our proportional share of Scope 1 and 2 emissions based on
ownership share. Scope 3 emissions from these entities are accounted for through purchased goods and services as part of our value chain emissions.
Scope 1
Scope 1 includes all direct emissions from sources owned or controlled by the company. This encompasses emissions from the combustion of fossil fuels in vehicles and stationary sources, as well as emissions from refrigerants.
Data collection involves several steps. Emissions from the company’s own cars and trucks, including both diesel and biogas, are reported. This data is collected from fuel suppliers and includes the consumption of AdBlue. For stationary combustion, emissions from sources such as heating oil, LPG and propane are reported. The consumption of these fuels is measured and recorded. Emissions from refrigerants are reported based on the refilling and draining of refrigerants in the company’s stores, distribution centres and industrial facilities. Data is collected from suppliers and invoices.
The calculation of emissions is primarily based on activity data, such as the amount of fuel consumed or the amount of refrigerant refilled. Where activity data is not available, estimates based on historical data or industry standards are used. Although non-Kyoto gases are typically not included in Scope 1 under the GHG Protocol, these are reported for completeness.
The company has implemented several reduction strategies. It aims to replace all HFC gases with renewable refrigerants by 2029. Additionally, there is an increased use of alternative energy sources such as district heating and waste heat to reduce the consumption of natural gas and heating oil.
Scope 2
Scope 2 accounts for GHG emissions from the generation of purchased electricity, heating and cooling consumed by all facilities within Reitan Retail. Consistent with the Scope 2 guidance from the GHG Protocol and ESRS E1-6 DR. 49, both the location-based method and market-based method are reported in our GHG accounting.
Primarily, Reitan Retail uses the location-based method when calculating emissions from Scope 2, utilising country-specific emission factors from the International Energy Agency (IEA). An exception to this is electricity purchased in Denmark, where previously, the Department of Energy provided specific recommendations for calculating emissions per kWh. However, as this information is no longer published, data from Energinet, the owner and operator of electricity and gas transmission systems in Denmark, is now used. This allows for more granular GHG emissions accounting at the city level.
Reitan Retail primarily reports electricity emissions using the location-based method but purchases Guarantees of Origin (GoOs) and Renewable Energy Certificates (RECs) for parts of its operations, reducing market-based emissions. These emissions are calculated using country-specific factors from the Association of Issuing Bodies (AIB).
Scope 2 includes emissions from purchased electricity and district heating in all owned and leased buildings. This calculation covers the total electricity consumption of stores and stations, distribution centres, industrial facilities
and administrative offices. Data for these calculations is collected from meters or supplied by utility companies. In cases where data quality and gathering are challenging, such as in stores located in malls or airports, estimations on the consumption of electricity and district heating are conducted to aggregate the data.
The calculation of Scope 1 and 2 GHG emissions is assessed as complete and is not expected to change significantly in the forthcoming years. Emissions from Scope 1 and 2 are calculated based on the described methodology for all business areas.
For offices and facilities that have purchased RECs, these are included in the market-based calculations to reflect the reduced impact of renewable energy purchases.
Scope 3
Scope 3 includes emissions from Reitan Retail’s value chain, with each business area screening relevant categories for reporting. As in previous years, emissions have been calculated for these categories, though ongoing refinements will improve data quality, granularity and alignment. While methodologies
assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete
Capital Goods Relevant, assessed as partially complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete
Fuel-and-energy related activities Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete
Upstream transportation and distribution Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as completed Relevant, assessed as complete
Waste Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as completed Relevant, assessed as complete
Business Travel Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as completed Relevant, assessed as complete
Employee Commuting Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as complete Relevant, assessed as completed Relevant, assessed as complete
Upstream Leased Assets Relevant, assessed as complete Not applicable Not applicable Not applicable Relevant, assessed as complete
Downstream transportation and distribution Relevant, assessed as complete Not applicable Relevant, assessed as partially complete Not applicable Relevant, assessed as partially complete
Processing of sold products Not applicable Not applicable Not applicable Not applicable Not applicable
Use of sold products Relevant, assessed as partially complete Relevant, assessed as partially complete Relevant, assessed as partially complete Relevant, assessed as complete Relevant, assessed as partially complete
End-of-life treatment of sold products Relevant, assessed as partially complete Relevant, assessed as partially complete Relevant, assessed as partially complete Not applicable Relevant, assessed as partially complete
Downstream leased assets Not applicable Relevant, assessed as complete Not applicable Not applicable Relevant, assessed as complete
Franchises Included in Scope 1 and 2
Included in Scope and 2 Included in Scope 1 and 2 Not applicable Included in Scope and 2
Investments Relevant, assessed as complete Relevant, assessed as complete Not applicable Not applicable Relevant, assessed as complete
continue to evolve, some differences remain that will be addressed in future reporting.
The relevance of each category is reassessed annually to ensure changes in operations are accurately reflected. As our business expands and methodologies improve, Scope 3 calculations may evolve in the coming years. See Table 1 for an overview of our Scope 3 reporting, including methodology details for each category.
Scope 3 emissions are quantified using the GHG Protocol framework, identifying emissions across various categories. Subsidiaries within Reitan Retail tailor their reporting approaches based on their specific operations. Data is sourced from suppliers, transportation providers and other relevant stakeholders. Where direct data is unavailable, industry benchmarks or historical data estimates are used.
Category 1 - Purchased goods and services
Scope 3 emissions from purchased goods and services encompass cradle-to-gate emissions for all relevant products across Reitan Retail’s business areas and subsidiaries. This category is considered significant due to the nature of Reitan Retail’s business within discount grocery, convenience and mobility with an extensive range of products and services involved. Emissions calculations are primarily based on activity data, incorporating detailed sales lists with sufficient product information and relevant emission factors. For most products, a relevant emission factor is applied based on product type. If a specific factor is unavailable, the main ingredient’s emission factor, derived from the ingredient list, is used. Where applicable, average emission factors are applied. If supplier-provided emission factors are available, these take precedence.
Double counting of emissions is avoided through the use of sales lists, ensuring accurate allocation and preventing unnecessary complexities in emissions elimination within the Group. Emissions from products sold to customers in sales outlets, delivered to stores through distribution companies, are reported by the company responsible for the sales outlet, while business-to-business (B2B) distribution directly to third parties is accounted for by the distribution companies.
The Group ensures that at least 95% of all products within the category Purchased goods and services are included in the emissions calculations based on activity, ensuring that we are aligned with SBTi best practice. Products purchased for consumer use in stores, such as plastic bags for fruits and vegetables and bags for baked goods, are also included in the GHG accounting.
Other purchased goods and services for administration, distribution centres, stores and subsidiaries are included using a hybrid method, meaning using both activity data, spend-based calculations or estimates. For spend-based calculations, emissions cover purchases related to office operations such as office supplies, marketing and other professional services. Legal and consulting services are excluded from the GHG accounting due to their low emissions relative to their high costs, which would not accurately reflect the actual emissions of these services.
Category 2 - Capital goods
Scope 3 emissions from capital goods encompass emissions from the purchase and use of goods that are capitalised in the financial accounts of Reitan Retail’s various business entities. This category includes items such as office furniture, maintenance and renovation of buildings, construction projects and purchases of larger machinery and electrical equipment. Emissions calculations are primarily based on a spend-based approach, with activity data used where available.
Category 3 - Fuels-and-energy-related activities
Emissions accounted for in the category stem from upstream emissions associated with energy consumption, primarily covering the well-to-tank (WTT) emissions of fuels and electricity used in their operations. These emissions are calculated based on activity data from Scope 1 and Scope 2 consumption, meaning they account for all upstream emissions linked to purchased energy sources.
Category 4 - Upstream transportation & distribution
Emissions in Reitan Retail originate from logistics operations before products reach stores or customers, including third-party and supplier transportation. These
emissions are calculated using a hybrid method that combines activity-based data and estimates to ensure full value chain emissions are reflected as well-to-wheel (WTW) emissions.
Transportation processes vary across business units. Some operations primarily track emissions from transport between distribution centres and stores, with trucks running on diesel, biogas, or electricity. Others account for supplier deliveries directly to stores, relying on supplier-reported emissions data, including fuel consumption and ton-kilometres driven. In some cases, additional adjustments are made to cover unreported transport activities.
Variations also exist in transport modes, where some rely on third-party trucking, rail freight and sea cargo between supplier storage and distribution centres, while others incorporate customer-driven last-mile logistics into upstream emissions. Fuel distribution is included in some operations but reported differently depending on procurement and ownership of transportation.
To prevent double counting, some well-to-tank (WTT) emissions are reported under Purchased Goods and Services rather than Transportation and Distribution. Reporting methodologies follow best practices to ensure consistency and comprehensive emissions tracking.
Category 5 - Waste
Waste emissions across the business are calculated using a hybrid method, primarily based on activity data from waste management suppliers at distribution centres and stores. Where available, emissions are determined according to treatment methods reported by suppliers.
Data granularity varies between business units due to differences in supplier reporting and waste collection infrastructure. Some store outlets lack access to detailed supplier-specific data, particularly when operating within shared waste management systems. As a result, waste volumes for certain locations are extrapolated from representative samples.
Beyond standard operational waste, additional sources
are included where relevant. Some units account for wastewater from carwash services, as well as excavation waste from mobility locations. However, minor waste streams, such as general waste bins at fuelling stations, are considered immaterial and excluded from GHG accounting. The methodology follows best practices, ensuring consistency while accommodating data availability constraints.
Category 6 - Business travel
Business travel emissions across the business are calculated with a combination of activity-based data and estimates where necessary. The category includes emissions from flights, trains, rental cars and reimbursed employee travel using personal vehicles for work purposes, amongst other travel-related activities. Additionally, emissions from hotel stays and meals consumed during business trips are also included where data is available.
The calculation methodology varies across business units, depending on data availability and reporting structures. While some units have access to detailed travel data from corporate travel agencies, others rely on expense reports and estimated travel distances. Differences also exist in how emissions from accommodation and meals are accounted for, with some units incorporating them into their reporting, while others focus primarily on transportation-related emissions.
Category 7 - Employee commuting
Employee commuting emissions are estimated using national statistics available in each of the seven countries where we operate. These estimates are applied to the number of employees, franchisees and store personnel in each business area, along with the number of working days in the reporting year. Home office days are also factored into the calculations. In Norway, estimates are based on Statens Vegvesen’s Reisevaneundersøkelse 2023, with Oslo-based companies using specific travel data for Oslo and Akershus. In line with our transportation methodology, commuting emissions reflect full value chain emissions (well-to-wheel, WTW).
Category 8 – Upstream Leased Assets
Upstream Leased Assets is a category where Norsk
Kylling reports its emissions from chicken breeding. This includes Scope 1 and 2 emissions from farms where Norsk Kylling’s chickens are bred, even though these farms are not owned by Norsk Kylling or REMA 1000 Norway. Emissions are reported using activity data.
Category 9 – Downstream transportation and distribution
Emissions in this category arise from the transport of goods sold through Reitan Convenience stores when third-party logistics or home delivery services are used, and Reitan Retail is not the paying party. It also includes transport emissions from REMA Industrier to external customers – that is, organisations not owned by Reitan Retail.
Category 11 - Use-of-sold products
This category is based on activity data from our item list and accounts for emissions generated during the use phase of fossil fuel products sold in our operations to both private consumers and business customers. The main source of emissions comes from the combustion of fossil fuels sold at our stations, while a smaller portion includes emissions from butane-containing products, such as lighters.
Category 12 - End-of-life treatment of sold products
End-of-life treatment of sold products covers emissions from the waste disposal and treatment of products sold in the reporting year, at the end of their life. This category includes the total expected end-of-life emissions from a subset of products sold in the reporting year. This data is difficult to gather accurately for all the products Reitan sells and is a category in which we are working to improve the number of reported products. Currently, the figures reported in this category stems from estimates about how products from the Purchased Goods & Services category are treated at the end of their life. For instance, we assume that most of the food products we sell are eaten but choose to estimate that we are responsible for some of the food waste in the markets where we operate. Therefore, we choose to include a portion of the total food waste, using an estimate based on national statistics in the markets where Reitan is present. Similarly, we assume that all
packaging which we purchase goes to treatment at the end of its life, assuming that our customers go for the environmentally sound option of recycling the waste from our products. We also assume that all paper products we sell go to recycling at the end of their lives and report accordingly within this category.
Category 13 - Downstream leased assets
Greenhouse gas emissions from assets owned by the company but leased to third parties are included in this category. For REMA 1000 in Denmark, this includes, for example, a distribution centre in Horsens where a third-party company rents part of the building. Scope 1 and 2 emissions from the tenant’s activities are calculated based on activity data and reported under this category.
The category also covers mixed-use and redevelopment projects where parts of buildings are temporarily leased to commercial or private tenants. This may include properties acquired with existing tenants or developments where residential units are constructed in connection with retail premises, often as part of planning requirements. Emissions from such leased assets are included where the company retains ownership or operational responsibility during the reporting period.
Category 15 - Investments
This category includes Scope 3 emissions associated with the reporting company’s investments in the reporting year, not already included in Scope 1 or Scope 2. As such, it covers the Scopes 1 and 2 emissions from businesses in which Reitan Retail has an ownership share but is not in control of the operations. To calculate the emissions that Reitan Retail needs to report, we multiply the total Scopes 1 and 2 emissions of the businesses Reitan has ownership in, with Reitan’s ownership share. In this category, activity data is reported.
Emission factor list
In accordance with ESRS E1-6, AR.39 (b), the following list outlines the main sources of the different emission factors used in Reitan Retail’s GHG emissions accounting.
Scope and category
Scope 1
Source
DEFRA (2024)
Linde Gas (2022)
Renewable Energy Directive (2023)
Scope 2 IEA (2024)
AIB (2024)
Energinet (2024)
Scope 3
Category 1 - purchased goods and services
1.1 Food products
1.2 Beverages
1.3 Non-food products
1.4 Admin purchases
1.5 Packaging
1.6 Raw materials used for production
1.7 Water consumption
1.8 Fuels, chemicals and refrigerants
Agribalyse 3.1
Concito (2021) & (2022)
Rise 2.2
Mogensen et al. (2016)
Agribalyse 3.1
Concito (2021) & (2022)
Rise 2.2
Agribalyse 3.1
Concito (2021) & (2022)
Rise 2.2
EPA (2024) v1.3
Ecoinvent 3.11
DEFRA (2024)
DEFRA (2024)
Ecoinvent 3.11
Taking a closer look at paper cups for coffee - LCA study, Technical Research Centre of Finland, 2019
AGRIBALYSE 3.1 (2022)
CONCITO (2021) RISE 2.2 (2023)
DEFRA (2024)
Ecoinvent 3.11
Renewable Energy Directive 2023
Ecoinvent 3.10
1.9 EV charging (upstream) IEA (2024)
Category 2 - Capital goods
EPA (2024) v1.3
Ecoinvent 3.10 & 3.11
DEFRA (2024)
Category 3 -Fuels- and -energy-related activities IEA (2024) DEFRA (2024)
Category 4 - Upstream transportation and distribution DEFRA (2024) EPA (2024) v1.3
Category 9 - Downstream transportation and distribution DEFRA (2024)
Category 11 - Use of sold products DEFRA (2024)
Renewable Energy Directive 2023
Ecoinvent 3.11
Category 12 - End of life treatment of sold products DEFRA (2024)
Category 13 - Downstream leased assets
Ecoinvent 3.11
Energinet (2024)
Energistyrelsen (2024)
Category 15 - Investments DEFRA (2024)
Energistyrelsen (2024)
Wolf, J., Asrar, G. R. and West, T. O. (2017). Revised methane emissions factors and spatially distributed annual carbon fluxes for global livestock
To the Board of Directors of Reitan Retail AS
Independent report regarding Reitan Retail AS's Greenhouse Gas Statement
We have undertaken a limited assurance engagement in respect of Reitan Retail AS's (the Company) Greenhouse Gas (GHG) Statement for the year ended 31 Decemb er 2024 included in the company's chapter 3.2 Environment - ESRS E1 Climate Change in the Annual Report 2024, comprising the table E1 -6 - Gross Scope 1, 2, 3 and total GHG emissions on page 90, with accompanying GHG accounting methodology in chapter 3.5 Sustainability appendix on pages 164-170.
The applicable criteria against which the Greenhouse Gas Statement has bee n evaluated is the Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard (Criteria), applied as explained in the methodology statement on pages 164-170 in chapter 3.5 Sustainability appendix in the Annual Report 2024.
Management's Responsibility
Management is responsible for the preparation of the GHG Statement in accordance with the applicable Criteria. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of a GHG Statement that s free from material misstatements, whether due to fraud or error.
GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emission factors and the values needed to combine emissions of different gases.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements as required by relevant laws and regulations in Norway and the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.
Our firm applies International Standard on Quality Management (ISQM) 1 , which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibilities
Our responsibility is to express a conclusion on the GHG Statement based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3410 - "Assurance Engagements on Greenhouse Gas Statements" issued by the International Auditing and Assurance Standards Board. That standard requires that we plan and perform this engagement to obtain limited assurance about whether the GHG Statement is f ree from material misstatement.
A limited assurance engagement involves assessing the suitability in the circumstances of the management's use of the Criteria as the basis for the preparation of the GHG Statement, assessing the risks of material misstatement of the GHG Statement whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the GHG Statement. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks.
The procedures we performed were based on our professional judgment and included
• Making inquiries of the persons responsible for the GHG Statement;
• Obtaining an understanding of the process for collecting and reporting the GHG Statement, including relevant internal controls;
• Performing limited substantive testing on a selective basis of the GHG Statement to test whether data had been appropriately measured, recorded, collated and reported;
• Evaluating the overall presentation of the GHG Statement;
• Performing analytical procedures and inquiries to assess the completeness of the emissions sources, data collection methods, source data and relevant assumptions applicable to Reitan Retail AS’s operations.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether the GHG Statement has been prepared, in all material respects, in accordance with the Criteria.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion
Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that Reitan Retail AS's GHG Statement for the year ended 31 December 2024 is not prepared, in all material respects, in accordance with the Criteria.
Oslo, 14 May 2025
PricewaterhouseCoopers AS
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo T: 02316, org. no.: 987 009 713 MVA, www.pwc.no Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
State Authorised Public Accountant
EU taxonomy
The EU taxonomy is a classification system that sets out a list of environmentally sustainable economic activities, referred to as eligible activities. The taxonomy aims to provide companies, investors and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable.
For 2024, companies subject to the Corporate Sustainability Reporting Directive (CSRD) are required to report annually on the extent to which their economic activities are eligible under the Taxonomy and adhere to the criteria outlined in the Taxonomy delegated acts that define Taxonomy-aligned activities. Companies not covered by the CSRD, such as Reitan Retail, may choose to disclose this information voluntarily.
EU taxonomy’s environmental objectives
1. Climate change mitigation (CCM)
2. Climate change adaptation (CCA)
3. The sustainable use and protection of water and marine resources (WTR)
4. The transition to a circular economy (CE)
5. Pollution prevention and control (PPC)
6. The protection and restoration of biodiversity and ecosystems (BIO)
Reitan Retail is a retail company operating in the Nordic and Baltic regions, engaged in discount grocery, convenience and mobility. Our activities related to the sale of fossil fuel products are ineligible under the current Taxonomy regulation. However, the sale of gaseous fossil fuels (natural gas) may be considered to contribute to climate change mitigation in the short term as a transitional energy source. The sale of biofuels is considered eligible under the current classification and should be assessed to determine whether it meets the technical screening criteria for alignment.
As of March 2025, the EU Taxonomy does not include a specific classification for the Food and Agriculture sector under its six environmental objectives. As such, there are currently no defined eligible activities for the sector under the existing framework.
However, certain practices, such as regenerative or organic agriculture, may contribute to biodiversity restoration or pollution prevention, depending on the context. While Reitan Retail’s core activities are not explicitly covered, several operational and value chain activities may still align with the framework. These should be assessed further to identify potential eligibility and alignment with the Taxonomy criteria.
Initial screening
of eligible activities that will be further investigated in 2025
CCM and CCA
Energy
• 4.1 Electricity generation using solar photovoltaic technology
• 4.2 Electricity generation using concentrated solar power (CSP) technology
• 4.9 Transmission and distribution of electricity
• 4.10 Storage of electricity
• 4.15 District heating/cooling distribution
Water supply, sewerage, waste management and remediation
• 5.2 Renewal of wastewater collection, treatment and supply systems
• 5.3 Construction, extension and operation of wastewater collection, treatment and supply systems
• 5.7 Anaerobic digestion of bio-waste
• Composting of bio-waste
Transport
• 6.6 Freight transport services by road
• 6.8 Inland freight water transport
Construction and real estate
• 7.1 Construction of new buildings
• 7.2 Renovation of existing buildings
• 7.7 Acquisition and ownership of buildings
Professional, scientific and technical activities
• 9.1 Close to market research, development and innovation
WTR
• 2.2 Urban wastewater treatment
CE
• 2.4 Treatment of wastewater
• 2.5 Recovery of bio-waste by anaerobic digestion or composting
PPC
• 2.2 Treatment of wastewater
BIO
• 1.1 Conversation, including restoration, of habitats, ecosystems and species
Additional tables to ESRS E1 Climate change
1Investments consist of REMA 1000 Denmark's ownership of 49 percent of the shares in Gram Slot, Denmark's largest organic farm , and REMA 1000 Norway's ownership of 20 percent of the shares in Bama Gruppen. Our share of the investment's Scope 1 and 2 emissions is acco unted for.
Company-owned aircraft and leased business aircraft
REITAN calculates and reports the total GHG emissions from company-owned aircraft in Reitan Retail’s Annual and sustainability report for 2024, as REITAN itself does not publish a full GHG emissions account.
Rely AS, owned by REITAN AS, operates aircraft on behalf of REITAN. These aircraft are available for both business travel and private use by the Reitan family. In 2024, these travels were distributed as 60 percent for business purposes and 40 percent for private use.
In 2024, Reitan Retail leased aircraft from external providers on a few occasions for business purposes.
from
aircraft and
In the Scope 3 category Business travel, 535 tCO2 of Reitan Retail’s emissions are associated with the use of company -owned aircraft or leased aircraft by external providers for business purposes. This accounts for 15 percent of the total emissions from business trave l and 0.006 percent of the total Scope 3 emissions in Reitan Retail.
At the beginning of 2024, Rely's portfolio consisted of two aircraft, one Dassault Falcon 2000EX and one Beechcraft 250GT. Th e first is owned by REITAN AS, and the latter was owned by REMA 1000 AS and was sold in Q2 2024. Reitan Retail AS will acquire a Cessna Citation 680, which is expected to enter into operation in Q2 of 2025. All aircraft in REITAN’s portfolio are operated by Rely AS.
Additional tables to ESRS E5 Circular economy
Food waste reduction actions - Number of saved products per country
Organic waste generated offsite is estimated based on the national statistics for food waste, multiplied by the market share for REMA 1000 in Norway and Denmark respectively. For Reitan Convenience, it is presumed that food waste at the consumer level is lower compared to REMA 1000, given the nature of their operations. To reflect the convenience sector, national statistics stating the amount of tota waste from the service and convenience goods industry in Norway was retrieved and applied as a multiplicator. The equation provides an estim ate of the food waste generated at the consumer end (e.g., thrown away or not fully consumed) from Reitan Convenience's sold food products. T his ndicator was not available for all geographical locations across Reitan Convenience. As such, most of the estimates are based on the N orwegian statistic multiplied with the countries market share.
Reitan Retail is continuously improving our efforts with regards to data collection, meaning that the actual change from year to year cannot always be inferred directly from the numbers. An increase or decrease can be a result of improvements in data collection. The table above is an example of this, where the data collection has improved in 2024.
In our ongoing efforts to minimize food waste, various strategies have been implemented. In Reitan Convenience, prices of cer tain products are reduced as the store approaches closing time. Similarly, across areas, when the expiration dates of some products draw near, prices are lowered. These initiatives not only help in reducing food waste, but also provide our customers with affordable options, ensu ring that products are utilised rather than discarded.
The app Too Good To Go is used across countries. Similarly, RC Sweden uses an app called Karma, while RC Finland and RC Eston ia use a different app called ResQ Club, to minimise food waste. In Denmark, REMA 1000 Denmark has registered multiple donations of imperfect products to local charity organisations. Furthermore, REMA 1000 Denmark is also exploring new product development, where prod ucts that earlier might have been thrown away due to small imperfections, instead are used in new products.
Improved data quality has been a priority in 2024, in addition to the inclusion of more Scope 3 data from our business area. In Uno-X Mobility, several of their units have enhanced their reporting and included packaging as part of their carbon accounting. At REMA 1000 Norway, no cardboard was reported in category 1.5 packaging in 2023. REMA 1000 Norway accounts for 85.7 percent of all purchased cardboard, and if we exclude REMA 1000 Norway's cardboard procurement from packaging, this category increases by on ly 5 percent The same applies to cardboard, renewable. REMA 1000 Norway contributes 84.8 percent of all recycled cardboard purc hased in Reitan Retail, and if we exclude REMA 1000 Norway’s procurement of cardboard from packaging, this category decreases by 3.4 percent. The increase in paper comes from emissions related to " paper cup, PE coated og paper, coated", which in 2023 were reported u nder packaging material, non-renewable, whereas in 2024, they are reported under packaging. This includes approximately 1,000 tonnes of coated paper used.
Additional tables to ESRS S1 Own workforce
Employees
Employees in the company, not including franchisees and their store personnel. The data is compiled by the use of head count at the end of the reporting period.
Out of the 81 work -related injuries in 2024,
Cycling, part of the Uno -X Mobility business area.
Occupational health and safety
Promotion of worker health
In addition to regulatory occupational injury insurance, companies may provide access to extended medical and healthcare serv ices, through partnerships and insurances.
1 Franchisees and their store personnel. Reitan Retail generally does not hold information on additional insurance coverage pro vided by franchisees; however, 6,259 store personnel in REMA 1000 Denmark over the age of 20 have extra health insurance through PFA (pension fund - Gjensidige Insurance). Uno-X Mobility Cycling has special insurance arrangements for all cyclists.
Workers covered by an occupational health and safety management system
Reitan Retail is committed to ensuring a safe and healthy working environment across all business areas. All subsidiaries fol low company-specific Health, Environment, and Safety standards, supported by personnel handbooks that outline employee rights, accident prevention measure s, and reporting procedures. A structured safety management system is in place to monitor risks, enforce compliance with labor laws, and provi de regular safety training. Additionally, franchise agreements include health, environment, and safety standards, ensuring consistent safety practices across operations. Sectorspecific initiatives address store retail, industrial companies, distribution, and professional cycling (Uno -X Mobility Cycling), each with tailored risk management measures. Continuous improvement is ensured through safety audits, incident reporting, and employee feedback. Thro ugh these efforts, Reitan Retail upholds its commitment to worker safety and compliance across its value chain.
Workers
Annual total compensation ratio
Reitan Retail operates across seven countries, encompassing a diverse range of subsidiaries, salary structures, and payroll s ystems. Given this complexity, we ensure a standardized approach to compensation reporting while maintaining transparency and comparability across our operations.
To provide a comprehensive and representative overview of compensation distribution within the Group, we report the annual to tal compensation ratio using intervals, averages, and medians, compiled from data across our business areas’ subsidiaries. The reported figures acco unt for variations in local wage structures, collective agreements, and job classifications, ensuring alignment with Reitan Retail’s commitment to fair a nd competitive remuneration practices across all markets.
Additional tables to ESRS S2 Workers in the value chain
In 2024, Reitan Retail expanded the number of reported and risk -assessed suppliers, reinforcing our commitment to transparency and accountability. All business areas and subsidiaries continue to strengthen their due diligence processes, progressively incor porating more suppliers and production facilities into assessments.
Parts of our organisation have implemented a new supplier risk evaluation system, leveraging real data to enhance accuracy an d adaptability in risk assessments. This shift has led to a reduction in high -risk suppliers, driven by both a streamlined supplier base and refined risk classification methodologies.
We have also deepened engagement with high -risk suppliers and facilities by conducting on -site visits to verify working conditions and ensure compliance with human rights and labour standards. These efforts have provided greater insight into supply chain risks, allow ing for risk recalibrations where improvements have been demonstrated.
Duty to provide information
Consolidated statement of comprehensive income
statement of financial position
Consolidated statement of financial position
Consolidated statement of changes in equity
Reitan Retail AS (the parent company) is registered and domiciled in Norway. The head office is located in Gladengveien 2, Oslo. Reitan Retail is a retail company and the principal activities of the parent company and its subsidiaries (the Group) are described in note 6 – Segment information.
The Group consists of five segments, of which four are retail segments (also referred to as business areas): REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno -X Mobility. In addition, the Group holds a portfolio of retail properties presented as a separate segment; Real Estate. The group companies operate from Oslo, Stockholm, Copenhagen, Helsinki, Riga, Tallinn and Vilnius.
Note 2 – General accounting policies
2.1 Basis of preparation
The consolidated financial statements of Reitan Retail AS and its subsidiaries (Reitan Retail or the Group) have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB) and endorsed by the EU, and the additional requirements of the Norwegian Accounting Act, effective on December 31, 2024.
A list of material subsidiaries is included in note 17.
The financial statements have been prepared on a historical cost basis, except for investment properties and certain financial instruments that are measured at fair value
The financial statements are presented in Norwegian kroner (NOK), rounded to the nearest million unless otherwise stated.
The financial statements have been prepared on a going concern basis.
The accounting policies that have been applied as well as significant judgements, estimates and assumptions are disclosed in relevant notes to the consolidated financial statements. The accounting policies outlined in this note are applied throughout the financial statements.
2.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of Reitan Retail AS and its subsidiaries.
Reitan Retail AS is a wholly owned subsidiary of REITAN AS. REITAN AS is 100 percent owned by the R eitan family through three holding companies. REITAN AS’ head office is located at Lade Gaard in Trondheim. Reitan Retail AS is included in the consolidated financial statements of REITAN AS, which are available on REITAN’s website at www.reitan.no
The ultimate parent of the Group is Odd Reitan Private Holding AS.
The consolidated financial statements of Reitan Retail AS were approved by the company’s Board of Directors on May 14, 2025.
2.3 Summary of other accounting policies
2.3.1 Foreign currencies
The Group’s consolidated financial statements are presented in NOK, which is the parent company’s functional currency.
Foreign exchange differences related to the Group’s working capital are recognised within operating profit for the period. Differences related to financing activities are included in net financial items. Fair value changes in hedging derivatives are recognised within operating profit or net financial items dependent on whether the hedge relates to operating or financing activities.
The Group has foreign entities with functional currency other than NOK. On consolidation, assets and liabilities of foreign operations are translated into NOK at year-end exchange rates. The results of foreign operations are translated into NOK at average rates of exchange each month during the reporting year. The financial statements of foreign operations are translated into NOK on an individual basis, and not using the step-by-step method.
2.3.2 Cash flow statement
The cash flow statement is prepared using the indirect method.
Note 2 – General accounting policies (continued)
2.4 Changes in accounting policies
2.4.1 New and amended standards and interpretations adopted by the Group Reitan Retail has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2024:
• Amendments to IAS 1, “Classifications of Liabilities as Current or Non-current” and “Non-current Liabilities with Covenants”
• Amendments to IFRS 16, “Lease Liability in a Sale and Leaseback”
• Amendments to IAS 7 and IFRS 7, “Supplier Finance Arrangement”
Note 3 – Financial risk management
The Group’s core operations include discount grocery stores (REMA 1000 Norway and REMA 1000 Denmark), convenience (Reitan Convenience), and mobility (Uno-X Mobility) In addition, the Group holds a portfolio of real estate in Denmark.
The Group's activities involve various financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management plan is to minimise potential negative effects on the Group's financial performance. The Group makes use of financial derivatives such as interest rate swaps to hedge against certain risks.
The Group's risk management is performed by a central finance department, in accordance with instructions which have been presented to and approved by the Board of Directors. The Group's finance department identifies, evaluates and manages financial risk in close cooperation with the different operational units. The Board of Directors approves the principles for overall risk management, and provides guidelines for specific areas such as currency risk, credit risk, use of financial derivatives and use of surplus cash.
3.1
3.1.a
The Group’s operations are located in Scandinavia, Finland and the Baltics, and the Group is exposed to currency risk in several currencies. The risk is particularly related to Swedish kroner, Danish kroner and Euro. Currency risk arises from
These amendments do not have a significant impact on the Group’s consolidated financial statements
2.4.2 Standards and revisions effective for future periods No new standards or amendments to existing standards, effective in 2025, will have a significant impact on Reitan Retail's consolidated financial statements.
The following new standard is effective for annual periods beginning after January 1, 2025, which the Group has not applied in preparing these consolidated financial statements:
• IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024, replacing IAS 1 Presentation of Financial Statements. The standard will be effective on January 1, 2027. Reitan Retail is in the process of reviewing the impact of this new standard.
future retail transactions, assets and liabilities recognised in the balance sheet, and net investments in international operations. This risk is still limited, as our operational units mainly have their revenue and costs and keep their accounts in local currency. The Group has investments in foreign subsidiaries, where net assets are exposed to currency risk in foreign currency translation. The Group tries to limit this exposure by ensuring an overall debt portfolio composition which to the greatest possible extent is adapted to the individual currency's and country's relative importance in the Group's activities.
The effect of a 10 percent weakening of Norwegian kroner is shown in the table below. A 10 percent strengthening will have the opposite effect. The effects are calculated on the basis of the Group's net assets (liabilities) in each currency as at December 31, 2024 and at December 31, 2023. December 31, 2024
Note 3 – Financial risk management (continued)
3.1.b Security price risk
The Group’s exposure to changes in prices of securities investments is limited, as financial assets at fair value through profit and loss represent a small proportion of total assets.
3.1.c Interest rate risk
The Group’s interest rate risk is related to borrowings, lending and bank deposits. Borrowings within the Group are entered with floating interest rate and represent an interest rate risk for the Group’s cash flow. To a certain extent, interest rate swaps have been established to minimise the interest rate risk related to borrowings in both NOK and foreign currency. The Group's borrowings are in NOK, DKK, SEK and EUR. The Group’s borrowings amounted to NOK 6 672 million as at December 31, 2024 (NOK 5,856 million as at December 31, 2023) with corresponding interest rate swaps with par value of NOK 312 million as at December 31, 2024 (NOK 112 million as at December 31, 2023). A one percentage point increase in market interest rates will have the following effects related to borrowings:
December 31 Million NOK
Decrease (increase) in
The Group’s interest-bearing receivables and cash and cash equivalents amounted to NOK 1 101 million as at December 31, 2024 (NOK 1,819 million as at December 31, 2023) See section Performance measures and definitions for further details A one percentage point increase in market interest rates will have the following effects related to interestbearing receivables and bank deposits:
December 31
Million NOK 2024 2023 Decrease (increase) in interest expenses 11 18 Effect on OCI
3.2
Credit risk
The most significant part of the Group's operating revenues comes from the sale of goods and services to franchisees. The Group, as franchisor, has a good overview of each franchisee's financial situation. The Group also has established routines for credit assessment and follow-up of business customers other than franchisees such as hotels, restaurants, catering and grocery companies Historically, the Group’s losses on accounts receivables have been low. A certain credit risk also
arises from committed transactions with customers , as well as from derivatives and deposits with financial institutions. Counterparties in derivative contracts and financial deposits are limited to financial institutions with high creditworthiness. Uno-X Mobility is exposed to credit risk through its receivables from end customers Thorough analysis of the credit quality of new customers and corresponding routines for assessment of existing customer relations have been implemented
3.3 Liquidity risk
The Group operates in markets with high turnover and large volumes. Cash flows are high and relatively stable, but volatile within a week/month. The Group manages its liquidity risk by ensuring a sufficient amount of cash in combination with sufficient availability of undrawn borrowing facilities Management monitors the Group's liquidity reserves consisting of various borrowing facilities ( note 26) and cash equivalents (note 22) through rolling forecasts based on expected cash flow. Management follows the Group’s liquidity reserves separately for each main currency (NOK, DKK, SEK and EUR). The table below specifies the Group’s borrowings and net-settled derivative financial liabilities into relevant maturity groups based on the remaining period to the contractual maturity date at the balance sheet date. The amounts are undiscounted contractual cash flows. Interest payments are estimated based on the terms at the balance sheet date.
December 31, 2024
Million
December 31, 2023
Note 3 – Financial risk management (continued)
3.4 Risk related to financing and capital structure In December 2021 Reitan Retail AS established a revolving multi-currency credit facility of NOK 9,000 million, of which NOK 4,500 million matures in 2026, and NOK 4,500 million matures in 2028. In March 2024 Reitan Retail AS entered into a DKK 1,300 million term loan. The term loan matures in 2026. In addition, Uno-X Mobility AS holds a working capital facility agreement including an overdraft facility of NOK 1,400 million Please see note 27 – Loan Agreements for further details.
Reitan Retail’s ambition regarding financing and capital structure is referred to in our value no. 3: “We aim to be debtfree”. This value shall be understood as providing guidance and a target for maintaining a robust financial position , with a capital structure allowing us to balance risk and flexibility to act on opportunities.
Reitan Retail has a solid financial position and significant liquidity reserves, including undrawn borrowing facilities, providing the Group with the strength and capacity to handle unforeseen operational challenges and market fluctuations. To improve capital structure, the Group may adjust its investment level, exploit available credit facilities, sell financial investments or adjust the amount of dividend paid to shareholders.
3.5 Inflation risk
The Group is exposed to the general inflationary pressure which affects the prices on goods we purchase for resale to our customers as well as salaries, supply costs (including freight), energy costs and rental costs. 2024 was a year with easing inflation across all countries in which the Group operates. See table below for general inflation in the seven countries in which we operate.
December 31
The Group seeks to mitigate this risk by strict focus on cost and by being a streamlined and efficient player in the market, as well as working proactively with suppliers, landlords and other partners/stakeholders to mitigate price increases. Historically, the Group has been able to show resilient margins throughout inflationary cycles, due to the strong operational efficiencies and benefit of scale.
Note 4 – Climate change
In preparing the consolidated financial statements, the Group has considered the impact of climate change, particularly in the context of the Task Force on Climate -related Financial Disclosures (TCFD) and its double materiality assessment.
As part of the TCFD report conducted in 2023 the Group identified 12 climate -related risks. The climate-related risks were categorised into physical impacts such as extreme weather, floods, droughts and sea level rise and transition impacts from potential changes in climate policies and market outlooks. While the Group has not undertaken a new evaluation in 2024, the 2023 findings have been reviewed and found to still be applicable. Furthermore, this review aligns with the findings of the Group’s double materiality assessment, reinforcing the relevance of climate -related risks and opportunities both in terms of financial impact and broader environmental and social considerations across our value chain. See more in the Group’s Sustainability statement, chapter Climate change, or read the full TCFD report at www.reitanretail.no
Climate-related risk has not been identified as having any significant effect on the 2024 consolidated financial statements. In particular, the Group has considered the impact of climate-related risks when assessing the following:
Impairments
The impact of climate-related risks has been considered in relation to indicators of impairment and the forecast of cash flows used in the impairment assessments of non -current assets, including goodwill. At the end of 2024, no material climate-related risk has resulted in write -downs of nonfinancial assets.
The immediately quantifiable impacts of climate change , and costs expected to be incurred in connection with the Group’s net zero commitments, are included in the Group’s financial prognosis approved by management which have been used to support the impairment reviews, with no material impact on cash flows.
The Group has carried out sensitivity analyses on the reasonably possible changes in key assumptions in the impairment tests for each group of cash generating units to which goodwill has been allocated. Due to significant headroom, the Group considers it unlikely that climate -related risks will lead to impairment in the short term. See note 13 and 14 for further information.
Useful lives
The impact of climate-related risks on the useful lives of assets has been considered in determining the carrying value of non-current assets. As at December 31, 2024, the Group has
not identified any climate-related risks that would lead to a revision of the useful lives applied. Replacement of, for example, refrigeration systems in sales outlets and transitioning the Group’s vehicle fleet to biogas trucks and electric vehicles take place gradually and to the extent possible as existing assets reach the end of their useful lives.
The Group continues to monitor and assess the regulatory environment and any new standards that may be developed in the future. See notes 13 and 14 for further information.
Provisions for asset retirement obligations and environmental liabilities
The impact of climate-related risks has been considered in relation to the Group’s provisions for asset retirement obligations and environmental liabilities.
Asset retirement obligations and environmental liabilities are primarily related to the Group’s mobility locations through its Uno-X Mobility business. The Group has assessed whether the expected useful lives of these mobility locations and the amount of environmental restoration costs require adjustment as a consequence of climate change or related legislation.
Climate change or related legislation could result in earlier closing of mobility locations, and hence earlier settlement dates. This would result in an increase in a previously recognised provision, as a result of the impact of discounting. Changes in the estimated cost relating to environmental restoration as a result of climate-related matters may also impact the measurement of the Group’s environmental obligations.
Currently, the expected useful lives of the Group’s mobility locations have not been materially reduced as a result of the identified climate-related risks. The Group does not expect any reasonable change in the expected useful lives of the mobility locations to have a material effect on the asset retirement obligations. In regards of the environmental liabilities, the Group has not identified any material increase in restoration costs as a consequence of climate -related matters, and as such, the estimated environmental liabilities have not materially increased due to the identified climaterelated risks.
Though climate-related risks are not considered to have any significant effect on the Group’s 202 4 consolidated financial statements in relation to provisions for assets retirement obligations or environmental liabilities, the Group continuously considers whether there are any changes in legislation that may result in new obligations or changes to existing obligations. See note 25 for more information on the Group’s provisions.
Note 5 – Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make use of judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. This note provides an overview of significant judgements, estimates and assumptions. Detailed information about each of these is included in other notes together with information about the basis of calculation for each affected line item in the financial statements.
Significant judgments in applying the Group’s accounting policies
• recognition of revenue from sale of goods to the franchisees, note 7
• recognition of revenue in relation to the franchisees’ access to the Group’s store premises, note 7
• classification of revenue in relation to excess duties, note 7
• judgements in relation to allocation of goodwill to cashgenerating units, note 13
• classification of property as owner-occupied with regards to the franchisees’ access to the Group’s store premises, note 14
• determination of the lease term of contracts with renewal options, note 15
• consolidation considerations in relation to agreements with franchisees, note 17
• judgements in relation to claims and litigation, note 35
• judgements in relation to classification of transaction as business combination or asset acquisition, note 36
Key sources of estimation uncertainty
• estimated impairment of non-financial assets, note 13 and note 14
• estimation of incremental borrowing rates in relation to leases, note 15
Note 6 – Segment information (continued )
Accounting policies – Segment information
Segment information for 2024 and 2023 is reported in accordance with the reporting to the CEO (Reitan Retail’s chief operating decision maker) and is consistent with financial information used for assessing performance, profitability and capital alloca tion.
The Group consists of four reportable retail segments (also referred to as business areas): REMA 1000 Norway, REMA 1000 Denmark, Reitan Convenience and Uno -X Mobility. In addition, the Group holds a portfolio of retail properties in Denmark presented as a separate reportable segment; Real Estate. Other units include the parent companies Reitan Retail AS and REMA 1000 AS. No operating segments have been aggregated to form the above reportable operating segments.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third partie s. Group contribution and dividends within Reitan Retail are not included in the consolidated statement of profit or loss for th e segments.
The segment information is presented in accordance with the Group’s accounting policies, with an exception for measurement of properties owned by the Real Estate segment and used by another segment in the Group. These properties are in the consolidate d financial statements measured at cost as they are considered owner -occupied property. For the Real Estate segment, these properties are considered investment properties and carried at fair value. The effect of the measurement differences on the consolidated accounts is illustrated in a separate column in the presentation of financial information per operating segment.
Reitan Retail generates revenues from franchise -based retailing (REMA 1000 Norway and REMA 1000 Denmark), franchise -based convenience services (Reitan Convenience), sale of fuels, lubricants, EV charging and car wash services (Uno -X Mobility) and real estate activities (Real Estate).
Financial information per operating segment
Accounting policies – Revenue
Revenue is income arising from the sale of goods and services in the ordinary course of the Group’s activities.
The Group determines the transaction price to be the amount of consideration it expects in return for transferring the promised goods and services to the customer, net of discounts and sales related taxes. In markets where products are purchased excludi ng excise duties, revenues from sales to customers are reported net of excise duties. In markets where products are purchased including excise duties, revenues and costs of goods sold are reported including these duties.
The Group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goo ds or services before transferring them to the customer. One exception is the sale of transport tickets, lotteries, telephone cards and gift cards through company operated sales outlets where the Group acts as an agent and consequently presents revenue on a net basis.
Sale of franchise services
The Group’s retail concepts are based on franchising within the market of discount grocery stores and convenience. Services promised in a franchise agreement typically include license to one of the Group’s trade names and operating methods, store access, as well as franchising leadership and support. The store access represents a service accounted for in the same way as the other revenue from sale of franchise services, for further information see section below regarding judgements in recognising revenue from sale of franchise services.
The franchise fee is based on a percentage of a store’s sales or contribution margin. The promised franchise services are acc ounted for as a single performance obligation. Agreed franchise fees are recognised over time as the services are rendered in accord ance with the franchise agreements.
Significant judgements in recognising revenue from sale of franchise services - The franchisees’ access to the Group’s store premises
The Group’s franchise agreements may grant a franchisee access to one of the Group’s store premises, provided that the franchisee follows the terms of the agreement and any further or changed instructions on the use of the premises as given by the franchisor. The Group has evaluated and concluded that the franchisee does not have the right to direct the use of the store premises. This mainly relies on the fact that it is the franchisor who controls the decision -making rights that most affect how and for what purpose the premises are used, such as the mix and pricing of goods. Hence, the store access is not considered to represent a lease component. Rather, it represents a service accounted for in the same way as the remaining revenue from sale of franchise services.
Sale of goods to franchisees
The Group sells goods to franchisees in the market of discount grocery stores and convenience stores. Revenue and a trade receivable are recognised on delivery to the franchisee.
Significant judgements in recognising revenue from sale of goods to franchisees - Agreements with franchisees
Whether the franchisees are agents acting on behalf of the Group as the principal is an important factor to consider when assessing the overall question of how the Group should recognise revenue from the sale of goods, as the assessment determines which party is the Group’s customer and when the Group transfers control of the goods. The Group has determined that the franchisees obtain control of the goods upon delivery to the stores and are thus the Group’s customers. This is based on several factors, including the fact that the franchisees obtain formal ownership of goods upon receipt at the sales outlets, and that they can determine their use (such as determining which end -customer to sell to and pledging the goods while held in inventory). In contrast, the Group cannot require a franchisee to return or send those goods to other franchisees or instruct the franchisee to sell a good to a specific customer and therefore no longer controls the goods upon delivery to the franchisee.
Sale of goods in dealer and commission operated sales outlets
The Group sells goods in dealer and commission operated sales outlets in the market of convenience stores and mobility locati ons. Dealer and commission operated sales outlets are based on commission sales where the Group owns the inventory and pays a commission fee to the dealer or commission -based retailer. Revenue is recognised when the end customer obtains control of the goods, which is when the transaction is completed in -store.
Note 7 – Revenue (continued)
Accounting policies – Revenue (continued)
Sale of goods in company operated sales outlets
The Group sells goods directly to retail customers in company operated sales outlets. Revenue is recognised when the customer obtains control of the goods, which is when the transaction is completed in -store.
Sale of goods to other external customers
In addition to the above, the Group sells goods directly to external business customers such as hotels, restaurants, catering and grocery companies. The Group also sells liquid fuel to external business customers. Revenue and a trade receivable are recogn ised on delivery of the goods at the customer’s location.
Sale of other services
Revenue from sale of other services includes marketing income, agent income and revenue from sale of car wash services.
Marketing income is recognised as revenue when the Group provides a distinct good or service to a supplier. To the extent tha t a payment from a supplier is related to a specific ad or campaign that the supplier has agreed to cover its share of, the payme nt is deducted from the period's marketing costs. Other payments from suppliers that are not made in exchange for a specified good or service are recognised as a reduction in cost of goods sold.
The Group recognises agent income related to sale of transport tickets, lotteries, telephone cards and gift cards through com
operated sales outlets. In these agreements, the Group acts as an agent and as such, only the commission is reported as reven ue. Agent income is recognised as it is earned, i.e. when sold to end customers.
Payment for revenue transactions is typically due within 30 days. See note 19 - Trade and other receivables for the opening and closing balances of trade receivables, and note 32 – Classification of financial instruments for accounting policies of financial assets.
The Group’s revenue from
Specification of revenue from sale of
The following table summarises the Group’s excise duties which are collected on behalf of third parties and excluded from revenue.
Note 9 – Salaries and personnel costs
Significant judgements in relation to classification of excise duties
Excise duties are duties which relate to the Group’s sale of refined oil products, sugar sweetened and alcoholic beverages. T hey are determined and paid directly to the tax authorities and then invoiced to customers by being included in the sales price.
The analysis of the criteria set by IFRS 15 led the Group to determine that it was acting as an agent in these transactions. This conclusion mainly relies on the fact that the Group can reclaim the excise duties in the event the products are not sold, and the fact that the excise duties are not considered levied until the moment of the sales transaction. As such, the excise duties are ef fectively considered sales-related and recoverable from the tax authorities. In markets where products are purchased excluding these excise duties, revenues are reported net of excise duties. In markets where the products are purchased including excise dutie s, revenues and cost of goods sold are reported including these excise duties. Note 8 – Other income
also referred to as the Corporate Management Board, consists of Group
(EVP) and Chief Financial Officer (CFO) Kristin S. Genton, EVP and
Ødegaard, EVP and Chief Communications Officer (CCO) Inger Sethov, EVP and CEO of REMA 1000
Christian
and CEO of REMA 1000 Denmark Henrik Burkal, EVP and CEO of Reitan Convenience Mariette Kristenson, and EVP and CEO of Uno -X Mobility Vegar Kulset.
The table below outlines the compensation paid to the Group CEO of Reitan Retail for 2024 and 2023
The CEO is entitled to severance pay equal to twelve months of the annual base salary from the expiry of the notice period. A ny severance pay entitlement is conditional upon the CEO waiving the employee protection rights under local law and is applied in situations where resignation is requested by Reitan Retail. The CEO’s own resignation will not trigger severance payment, and the severance payment is also forfeited in cases of summary dismissal from the company. The CEO is part of the bonus scheme for all employees in Reitan Retail AS.
The table below outlines key management compensation for 2024 and 2023 for all key management except the Group CEO Cost of hiring the CFO from REITAN AS is not included in the table See note 34 – Related party transactions in regards of fee paid for key management personnel services to REITAN AS
excl.
Loans and security for loans to employees, executives, etc.
The Group had no loans to employees as at December 31, 2024 or as at December 31, 2023 No loans have been granted to, nor security pledged for, the chief executive officer, the chair of the board or other close associates.
Note 9 – Salaries and personnel costs (continued)
Remuneration to the Board of Directors
Information about the individual remuneration to the members of the Board of Directors is provided in the following table: Million NOK
Rune Bjerke (Chair of the Board from May 2022)
Magnus Reitan (Board Member from May 2010)
Eilert Giertsen Hanoa (Board Member from May 2022)
Marie Sigfrid (Board Member from June 2024)
Elisabeth Rosendahl Skard (Board Member from November 2024)
Linda Cathrine Hofstad Helleland (Board Member from November 2024)
The Chair has no agreements regarding bonus or severance pay upon termination of office.
Company shares owned by directors, executives and their related parties
Ole Robert Reitan, Group CEO of Reitan Retail, and Magnus Reitan, Board Member of Reitan Retail, own 67 percent of the shares in REITAN AS, which is the parent company of Reitan Retail AS.
Pensions
The Group has several pension schemes for its employees. There are various schemes in the different countries that Reitan Retail operates in, and the schemes also vary between companies within the same country. The majority of the companies within the Group offer their employees defined contribution plans. The Norwegian companies in the Group are subject to, and complies with, the requirements of the Norwegian Mandatory Company Pensions Act. As at December 31, 2024 the Group has defined contribution plans with 4,714 members (5,193 members as at December 31, 2023) and defined benefit plans with 327 members (358 members as at December 31, 2023).
For defined contribution plans, the Group pays contributions to privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are du e.
A defined benefit plan typically defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. In addition to defined benefit plans funded through insurance companies, the Group also has unfunded pension liabilities covered by operations.
Specification of pension costs
Note 10 – Other operating expenses
Accounting
Note 11 – Net financial items
The tax effect on items recognised in comprehensive income are included in the comprehensive income statement. The same applies to any tax effects of equity transactions that are entered directly to equity.
Deferred tax assets and liabilities are offset to the extent that the deferred taxes relate to the same fiscal authority, and there is a legally enforceable right to offset current tax assets against current tax liabilities.
Deferred tax assets related to tax losses carried forward are recognised if there is convincing evidence that sufficient taxa ble income will be available through future taxable income.
Note 12 – Income taxes (continued)
effect of temporary differences Deferred tax assets (DTA)
percent in Lithuania, 0.0 percent in Latvia, and 0.0 percent in Estonia. In Latvia and Estonia, a tax rate of 20.0 percent is payable on dividend payments.
(DTL)
As at December 31, 2024, the Group has NOK 1,568 million in deferred tax assets that have not been recognised (NOK
as at December 31, 2023). The amounts not recognised are mainly related to Norway and Denmark and may be carried forward indefinitely.
Note 13 – Intangible assets
Accounting policies – Intangible assets
The Group amortises licences, IT and trademarks with a limited useful life, using the straight -line method over their useful economic lives of five to ten years.
The Group’s trademarks include R-kioski (Finland), R-kiosk (Estonia) and Lietuvos Spauda (Lithuania). The R -kioski, R-kiosk and Lietuvos Spauda trademarks are considered to have indefinite useful lives. Trademarks that have indefinite useful
since they are expected to provide economic benefits to the Group indefinitely, are not amortised, but tested for impairment annually or more frequently should events or changes in circumstances indicate that they might be impaired.
Intangible assets
BEPS Pillar 2
The Group is within the scope of the OECD Pillar Two rules effective from January 1, 2024. Under the legislation, the Group is subject to top-up tax for the difference between their Global Anti -Base Erosion effective tax rate (“GloBE tax rate”) per jurisdiction and the 15 percent minimum rate. The Group has performed an assessment of the potential exposure to Pillar Two income taxes taking into consideration transitional safe harbours. Based on the assessment, the Group expects that the Pillar Two rules wi ll not have material impact on its financial statements. The Group applies the exception to recognising and disclosing information a bout deferred tax assets and liabilities related to Pillar Two income taxes.
The Group has not recognised any significant impairments in 2024 or 2023
Estimate for measuring recoverable amount
Impairment is determined by assessing the recoverable amount of each cash generating unit (CGU) to which the goodwill or trademarks relates. If the recoverable amount of a CGU is less than its carrying amount, an impairment loss is recognised.
The recoverable amount is determined based on value in use calculations using cash flow projections from financial prognosis approved by management, covering a three to five year period. A terminal value is calculated for the period beyond the initia l prognosis period, using a constant nominal growth rate, corresponding to country specific expected long -term inflation.
Note 13 – Intangible assets (continued)
The cash flow projections are based on past performance, expected market development and strategic plans, with the three most important parameters being expected growth in sale of goods and services to franchisees (driven by overall expected growth in systemwide sales*), EBITDA* (operating profit before amortisation, depreciation and impairment) and number of sales outlets. The existence of any immediate or short -term physical risks due to climate change were also considered in assessing for any indication of impairment.
The Group constantly monitors the latest government legislation in relation to climate -related matters. At the current time, no legislation has been passed that will impact the Group. The Group will adjust the key assumptions used in value in use calcul ations and sensitivity to changes in assumptions should a change be required. For further information on climate -related risk and its impact on impairment of non-financial assets, see note 4.
The Group uses observable market data, such as risk-free rates and market risk premiums obtained from recognised financial data services, for the calculation of discount rates. In the recoverable amount assessment, the Group has applied estimated cash flows after tax and corresponding discount rates after tax. The recoverable amounts would not have changed significantly if pre-tax cash flows and pre-tax discount rates had been applied instead.
Goodwill and trademarks are allocated to CGUs or groups of CGUs as shown in the following table :
Note 14 – Property, plant and equipment
Accounting policies – Property, plant and equipment
Property, plant and equipment are held at historical cost less accumulated depreciation and any recognised provision for impairment.
Depreciation is calculated using the straight -line method to allocate the cost of the assets, net of their residual values, over their estimated useful lives as follows:
• Buildings and plants: 10-25 years
• Fixtures: 5-10 years
• Vehicles: 5-25 years
• Office equipment: 3-5 years
Gains and losses on disposal are recognised in the consolidated statement of profit or loss under Net gains (losses) and constitute the difference between net proceeds and carrying amount.
At each reporting date, the Group reviews the carrying amounts of its property, plant and equipment to determine whether ther e is any indication of impairment. If any such indication exists, the recoverable amount is estimated.
Impairment exists when the carrying value of an asset or cash -generating unit (CGU) exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is ba sed on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices les s incremental costs of disposing of the asset. The value in use calculation is based on a discounted cash flow model (DCF). The cash flows are derived from budgets for the next three to five years. Impairment losses are included in the consolidated statement of profit or loss in the line item Depreciation and impairment of property, plant and equipment.
Significant accounting judgements - Classification of property as owner-occupied with regards to the franchisees’ access to the Group’s store premises
The Group’s franchise agreements may grant a franchisee access to one of the Group’s store premises, provided that the franchisee applies the terms of the agreement and follows any further or changed instructions on the use of the premises as gi ven by the franchisor. The Group ha s evaluated and concluded that the franchisee does not have the right to direct the use of the store premises. This mainly relies on the fact that it is the franchisor who controls the decision -making rights that most affect how and for what purpose the premises are used, such as the mix and pricing of goods. Hence, the store access is not considered to represent a lease component and the properties are measured at cost as they are considered owner -occupied.
Sensitivity
Goodwill and trademarks with indefinite useful lives are related to financially strong business areas. The Group has carried out sensitivity analyses on the reasonably possible changes in key assumptions in the impairment tests for each group of CGUs to which goodwill or trademarks have been allocated. Neither a reasonably possible increase of 2.0 percentage point in discount rates, nor a decrease of 2.0 percentage point in long-term growth rates would indicate impairment in any group of cashgenerating units to which goodwill has been allocated.
Significant accounting judgements in relation to allocation of goodwill to cash -generating units
Judgements are required when allocating goodwill to cash -generating units. The significant part of the Group’s goodwill is allocated to the Group’s retail segments REMA 1000 Norway, REMA 1000 Denmark and Reitan Convenience, and followed up and tested collectively for the group of cash -generating units that constitute these retail segments. Goodwill has been allocated to these segments as this is the level where synergies are expected and goodwill is monitored for internal management purposes.
*Systemwide sales and EBITDA are APMs. For more information, see section Performance measures and definitions.
For information on climate-related risk and its impact on impairment assessments and the useful lives of asset, see note 4 – Climate risk.
Note 14 – Property, plant and equipment (continued)
Impairment losses recognised in the year
The Group did not recognise any significant impairments in 2024. The impairment loss on land, buildings and plants in 2023 was mainly related to a NOK 210 million impairment of the real estate portfolio in REMA Etablering AS which was disposed during the year. The recoverable value of the portfolio, measured based on the agreed selling price, was determined to be lower than its carrying amount. The sale of the company was completed in December 2023.
Note 14 – Property, plant and equipment (continued)
Assets pledged as security
As at December 31, 2024, properties with a carrying amount of NOK 166 million (NOK 217 million as at December 31, 2023) were subject to borrowings secured by collateral. See note 26 – Borrowings for further details
Assets held for sale and restricted assets
The Group had no assets classified as held for sale or as restricted as at December 31, 2024, or as at December 31, 2023.
Note 15 – Leases
Accounting policies – Leases; the Group as a lessee
At the lease commencement date, the Group recognises a lease liability and corresponding right -of-use asset for all lease agreements in which it is the lessee, except for the following exemptions applied:
• Short-term leases (defined as 12 months or less)
• Low-value assets (defined as assets with a new value of NOK 100 000 or less)
For these exempted leases, the Group recognises the lease payments as other operating expenses in the consolidated statement of profit or loss when they are incurred.
The lease liability is initially measured at the present value of the remaining lease payments during the assessed lease term The discount rate used to calculate the present value of future lease payments is the interest rate implicit in the lease, if ava ilable.
Significant accounting estimates and judgements
Determining the lease term of contracts with renewal options
The lease term represents the non-cancellable period of the lease, together with periods covered by an option to extend the lease if it is reasonably certain to exercise the option, or any periods covered by an option to terminate the lease, if it is reas onably certain not to exercise the option.
The Group has several lease contracts that include extension options. The Group applies judgement in evaluating the certainty as to whether or not the option to renew the lease will be exercised That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal options, such as major premises renovations or specific requirements in a franchise agreement. After the commencement date, the Group reassesses the lease term to see if there is a significant event or change in circumstances that is within its control and affects its ability to exercise the o ption to renew.
Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in its leases, therefore, it uses its incremental borrowing rat e (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow , over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right -of-use asset in a similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation when no observable rate s are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to re flect the terms and conditions of the lease. To arrive at the incremental borrowing rate , the Group applies the respective country’s (economic environment) risk-free rate for the term corresponding to the lease term, and a credit premium. The credit premium corresponds to the market credit premium for companies with similar credit ratings as the tenant.
Accounting policies – Leases; The Group as a lessor
The Group has classified its lease agreements in which it is a lessor as operating leases since substantially all the risks a nd rewards of ownership are retained by the Group.
Lease payments for operating leases are treated as income and distributed over the life of the lease on a straight -line basis.
The Group as a lessee
The Group operates franchise-based businesses in the markets of discount grocery stores and convenience. As such, it has a longterm need for appropriate properties in the right locations – for sales outlets as well as warehouses and logistics operations. The large number of leases with options to extend the lease ensure s flexibility and future performance.
Right-of-use assets
Additions
The increase in additions of right-of-use assets related to sales outlets in 2024 primarily relates to the sale and leaseback of a substantial real estate portfolio in Denmark. These sale and leaseback transactions did not result in any significant gain or loss. A significant portion of properties involved in the sale leaseback transactions were properties acquired as part of the ALDI transaction. For more information, see note 36 – Significant transactions.
Remeasurements
The remeasurements of right-of-use assets relating to sales outlets mainly result from changes in lease term s as well as changes in indexes used to determine the lease payments The decrease in remeasurements compared to last year mainly relates to the current macroeconomic environment and ease in inflationary pressure, refer to note 3 – Financial risk management, section 3.5.
Note 15 – Leases (continued)
Additions
The increase in additions of lease liabilities related to sales outlets in 2024 primarily relates to the sale and leaseback of a substantial real estate portfolio in Denmark. These sale and leaseback transactions did not result in any significant gain or loss. A significant portion of properties involved in the sale leaseback transactions were properties acquired as part of the ALDI transaction. For more information, see note 36 – Significant transactions.
Remeasurements
The remeasurements of lease liabilities relating to sales outlets mainly result from changes in lease terms as well as changes in indexes used to determine the lease payments. The decrease in remeasurements compared to last year mainly relates to the current macroeconomic environment and ease in inflationary pressure, refer to note 3 – Financial risk management, section 3.5.
Variable lease payments
Some property leases contain variable payments that are linked to sales generated from a sales outlet. Variable payment terms are used for a variety of reasons, including linking rental payments to store cash flows and reducing fixed cost.
The following table provides information on the Group’s variable lease payments, including the magnitude in relation to fixed payments:
Note 15 – Leases (continued)
Note 16 – Investments in associates
Accounting policies – Investments in associates
Associates are accounted for by applying the equity method, and the share of profi t of associates
None of the Group's associates are publicly listed. The associates had no material contingent liabilities as at December 31, 2024 or as at December 31, 2023.
The Group had no material investments in joint ventures as at December 31, 2024 or as at December 31, 2023.
Material associates
Company name Office address Ownership Business
BAMA Gruppen AS Oslo, Norway 20.0% Wholesale of fruit and vegetables
The list shows direct ownership. The Group's voting right in BAMA Gruppen AS is identical to its ownership interest.
BAMA Gruppen AS prepares its financial statements in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway. In the consolidated financial statements of Reitan Retail, the figures of BAMA Gruppen AS ar e restated to comply with IFRS. Adjustments primarily relate to amortisation of goodwill and actuarial gains/(losses) not recog nised in profit or loss
Note 16 – Investments in associates (continued)
The following tables set forth summarised financial information of BAMA Gruppen AS, and reconciliation with the carrying amou nt of the investment for the Group:
Statement of
Note 17 – Investments in subsidiaries
Accounting policies – Investments in subsidiaries
Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, va riable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.
Significant accounting judgements - Agreements with franchisees
The Group operates franchise-based businesses in the markets of discount grocery stores and convenience under the Reitan Format Franchise model. Within the franchise agreement, the franchisee controls the majority, or in some cases all, of the ac tivities related to efficient store operations, hiring and training of employees, financing and investment activities. The Group has p ower to direct other activities, however, the rights to direct those activities are to a large extent protective rather than substant ive. Therefore, the franchisees have power over the entity. Both parties have the ability to direct different relevant activities, however, it is the Group’s opinion that the franchisee is subject to greater exposure with regard to variable return and to a greater extent has the ability to use its power to influence the variable return. Based on a judgement of the criteria in IFRS 10, the Group has determined that it does not control its franchisees and the franchise es are therefore not consolidated.
Material subsidiaries
The list shows direct ownership and voting rights in 2024 and 2023
Total non-controlling interests as at December 31, 2024 was NOK 153 million (NOK 144 million as at December 31, 2023) and originate from immaterial subsidiaries
Financial investments are measured at fair value with changes in fair value recognised in the consolidated statement of profi t or loss as net gains (losses) on financial investments, see note 32 - Classification of financial instruments.
When no quoted market price is available, fair value is estimated using different valuation techniques such as discounted cash flow models or valuations based on prices derived from transactions with external parties. The fair value measurement hierarchy of all the Group’s financial assets and liabilities is provided in note 33 - Fair value measurement
Note 19 – Trade and other receivables
policies – Trade and other receivables Trade and other receivables are adjusted for provision for impairment in accordance with the
consolidated statement of profit or
and updated at each reporting date.
Note 19 – Trade and other receivables (continued)
Note 20 – Other non-current assets
The effective interest rate on interest -bearing receivables was 2.8 percent as at December 31, 2024.
Non-current interest-bearing receivables due in more than five years, mainly consist of start -up loans related to funding of inventories for new franchisees and loans to associated companies. Trade
Note 21 – Inventories
Accounting policies - Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is determined using the first -in, first-out method. For goods for resale and work in progress, cost consists of costs for product design, cost of materials, freight, other direct costs and indirect production costs (based on normal capacity) . Payments from suppliers, other than those related to a specific ad or campaign that the Group has expensed and for which the supplier has agreed to cover its share of, are recognised as a reducti on in cost of goods sold. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable sales expenses.
for obsolescence
Note 24 – Other reserves
or
The amount of cash placed in escrow accounts as at December 31, 2024 and as at December 31, 2023 is related to sale of real estate portfolios at the end of the year. Escrow accounts are classified as cash equivalents as the amounts are subject to an insignificant risk of changes in fair value and have a maturity of less than three months from the acquisition date.
Note 23 – Earnings per share
Note 25 – Provisions
Accounting policies – Provisions
Provisions are measured at the present value of the expenditures expected to be
rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increa
the provision due to passage of time is recognised as a financial expense.
The discount rate used in the calculation of the asset retirement obligations and the environmental obligations is a pre -tax riskfree rate based on the applicable currency and time horizon of the underlying cash flow s
Asset retirement obligations
Asset retirement obligations exist where the Group has a legal obligation to restore leased assets to their original conditio n upon termination of the lease. These obligations primarily relate to leases of mobility locations within Uno -X Mobility, as well as to leases of REMA 1000 store locations in Norway and Denmark. Where the Group is required to settle an asset retirement obligati on, the Group has estimated and capitalised the net present value of the obligations and increased the carrying value of the rela ted right-of-use asset. Provisions for asset retirement obligations are based on management’s estimates of the reasonably possible outcomes in terms of both the range of settlement dates and amount of expenses, as well as probabilities to be assigned to ea ch of the reasonably possible outcomes.
Environmental liabilities
The Group has environmental liabilities related to its mobility locations within Uno -X Mobility. Activities such as purchasing, storing and selling petroleum products may over time have environmentally negative impact on the land areas where these activities take place. This could give rise to environmental clean -up obligations that will have to be fulfilled at a future date.
The Group performs a comprehensive environmental review of the operations in both Norway and Denmark annually. This forms the basis for estimating existing environmental liabilities. The outcome of the review, combined with knowledge of how environmental liabilities arise, give the Group a basis for estimating further development of environmental liabilities. Tota l estimated environmental liabilities are based on estimated environmental liabilities per location. The calculations make use of specific information for each mobility location, such as age, number of tanks, as well as a specific assessment of the stations’ environmental conditions and factors, such as the distance to drinking water sources. The estimates are uncertain as they are based on average costs and timing. The estimations have been performed with assistance from third -party experts. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Group’s accounting for environmental liabilities.
For information on climate -related risk and its impact on asset retirement obligations and environmental liabilities, see note 4 –Climate change
Note
26 – Borrowings
The exposure of the Group's borrowings to interest rate changes and contractual re -pricing dates at the end of the reporting period is as follows:
The re-pricing structure includes interest rate swaps.
Carrying amount of the Group's borrowings is denominated in the following currencies:
interest rates do not include interest rate swaps, commitment fee s and arrangement fees. See note 30 – Derivative financial instruments for more information about interest rate swaps.
Fair value of borrowings
The Group’s borrowings are mainly at floating interest rates. The carrying amount is a reasonable approximation of the fair value for all borrowings. Interest rate swaps are booked at fair value and are not considered in the assessment of fair value of borrowings.
Note 26 – Borrowings (continued)
Note 27 – Loan agreements
The Group has the following material loan agreements: Multi-currency credit facility - Reitan Retail AS In December 2021 Reitan Retail AS established a multi -currency credit facility. The loan is financed by a bank syndicate consisting of six banks. The facility is a revolving credit of NOK 9,000 million, of which NOK 4,500 million originally matured in 2024, and NOK 4,500 million originally matured in 2026. Both tranches included two one -year extension options. In 2022 the first extension option for both tranches was utilised, and in 2023 the last extension option was utili sed, extending maturity dates to 2026 and 2028 respectively.
In March 2024, Reitan Retail AS made an amendment to the multi-currency credit facility and established a DKK 1,300
loan with a two-year maturity in addition to the existing revolving credit facility of NOK 9,000 million . The term loan was obtained to fund the acquisition of a majority of ALDI’s Danish grocery store network, including the purchase price and related capita l expenditures. During 2024, the term loan was partially cancelled, reducing the outstanding amount to DKK 600 million as at December 31 The drawn amounts as at December 31, 2024 are included in "Other bank loans" in note 26 - Borrowings.
Note 27 – Loan agreements (continued)
The following financial covenants appl y to the multi-currency credit facility in Reitan Retail AS:
Time of measurement
Q4 2021 and later
Reporting frequency
Net interest -bearing debt and equity share are measured excluding IFRS 16 leases. EBITDA is adjusted for IFRS 16 lease payments. During 2024 and 2023, Reitan Retail AS was in compliance with these covenants , and there is significant headroom also going forward
Working capital facility agreement - Uno-X Mobility
In 2010, Uno-X Mobility AS and DNB entered into a credit and corporate account agreement with collateral in subsidiaries, receivables and inventories, the latter limited to Norwegian subsidiaries only. The agreement includes an overdraft facility of NOK 1,400 million, limited to a percentage of the Group’s outstanding receivables and the Norwegian companie s’ inventories. Uno-X Mobility AS is the owner of the facility. Drawn amounts as at December 31, 2024 were NOK 907 million (NOK 1,021 million as at December 31, 2023) and are included in "Bank overdraft" in note 26 - Borrowings
All subsidiaries are members of the credit and corporate account agreement and have provided an on -demand guarantee as collateral for Uno-X Mobility AS and its obligations according to the working capital facility agreement.
The following financial covenants apply to the working capital facility agreement in Uno-X Mobility AS:
Note 28 – Other non-current liabilities
Covenants (Q4 2010 and later)
During 2024 and 2023, Uno-X Mobility AS was in compliance with these covenants, and there is significant headroom also going forward.
Other material loan agreements
The Group has cash pooling arrangements with legally enforceable rights to offset cash and overdraft balances. Where there is an intention to settle on a net basis, cash and overdraft balances relating to the cash pooling arrangements are reported on a n et basis in the consolidated statement of financial position.
Most subsidiaries in REMA 1000 Norway and REMA 1000 Denmark are members of a cash pool agreement entered into between REMA 1000 AS and Danske Bank. The agreement includes an overdraft facility of NOK 500 million. Drawn amounts as at December 31, 2024 were NOK 271 million (NOK 0 million as at December 31, 2023) and are included in "Bank overdraft" in note 26Borrowings. No financial covenants apply to this agreement.
Within the Reitan Convenience segment, there are several cash pool agreements in the various countries where it is represente d. They include overdraft facilities of NOK 200 million in Norway, SEK 75 million in Sweden, DKK 30 million in Denmark and EUR 7 million in Finland. Drawn amounts of all these overdraft facilities as at December 31, 2024 were NOK 176 million (NOK 159 million as at December 31, 2023) and are included in "Bank overdraft" in note 26 - Borrowings. No financial covenants apply to any of these.
Note 29 – Guarantees
The Group provided guarantees for off-balance sheet liabilities limited to NOK 102 million as at December 31, 2024 (NOK 82 million as at December 31, 2023). The guarantees are mainly provided on behalf of associated companies.
Derivative financial instruments are included in the line items "Other current assets", "Other non -current assets" and "Other current liabilities" in the consolidated statement of financial position. Changes in fair value are recognised in the consoli dated statement of profit or loss as other income or net other financial items dependent on whether the hedge relates to operating or financing activities, unless they are designated and effective hedging instruments. The effective portion of gains or losses related to derivatives designated as hedging instruments is recognised in the consolidated statement of comprehensive income in the cash flow hedge reserve, while any ineffective position is recognised immediately in the consolidated statement of
or loss.
30 – Derivative financial instruments (continued)
Note 32 – Classification of financial instruments
Accounting policies – Classification of financial instruments
Financial assets
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include equity instruments and derivatives with a positive value.
Financial assets at amortised cost
The Group’s financial assets at amortised cost include trade receivables, other receivables and cash and cash equivalents. Wi th the exception of trade receivables that do not contain a significant financing component, the Group initially measures these fina ncial assets at fair value plus transaction costs. Subsequently, these assets are measured at amortised cost less impairment using the effective interest (EIR) method. Gains and losses are recognised in the consolidated statement of profit or loss when the ass et is derecognised, modified or impaired. The Group applies the simplified approach for trade receivables, measuring loss allowance at an amount equal to lifetime expected credit losses. To calculate the expected credit losses the Group uses its historical experience, individual assessments and forward-looking information Impairment for expected credit losses is recognised in the consolidated statement of profit or loss and updated at each reporting date.
Derivatives designated as hedging instruments at fair value through other comprehensive income
A few hedging instruments are recognised at fair value through other comprehensive income.
Financial liabilities
Financial liabilities at fair value through profit and loss
Financial liabilities at fair value through profit or loss mainly include derivatives. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Such derivative financial instruments are initially rec ognised at fair value on the date on which a derivative contract is entered into and are subsequently re -measured at fair value through profit and loss. Gains or losses are recognised in the consolidated statement of profit or loss for the reporting period in which they arise.
Financial liabilities at amortised cost
Interest-bearing loans and borrowings are initially recognised at fair value net of directly attributable transaction costs. Subsequently, these liabilities are measured at amortised cost using the EIR method. Gains and losses are recognised in the consolidated statement of profit or loss when the liabilities are derecognised. The EIR amortisation is included as finance c osts in the consolidated statement of profit or loss. Liabilities are measured at their nominal amount if the effect of discounting i s immaterial.
Derivatives designated as hedging instruments at fair value through other comprehensive income
Note 31 – Trade and other payables
The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective position is recognised immediately in the consolidated statement of profit or loss.
Accounting policies – Fair value measurement
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within t he fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement a s a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Note 33 – Fair value measurement (continued)
Reitan Retail holds a limited portfolio of investment properties. These
Reitan Retail is a wholly owned subsidiary of REITAN AS and included in the consolidated financial statements of REITAN AS (REITAN). REITAN AS is owned by the Reitan family through three holding companies.
Reitan Retail’s related parties include its management personnel, subsidiaries, associates , group companies in REITAN and parent company. The Group has ownership interests in 17 associated companies, see note 16 – Investment in associated companies. For benefits to key management, see note 9 – Salaries and personnel costs For guarantees to related parties, see note 29 –Guarantees
The related party transactions disclosed consist of transactions carried out with related parties that are not eliminated in the consolidated financial statements.
The following transactions were carried out with related parties:
and
Non-current receivables from related parties are unsecured and interest-bearing. The interest rate is determined based on market rates including a premium
Current receivables from related parties are unsecured and non-interest-bearing. These are receivables arising from purchases and sales of goods and services, as well as accrued interest on loans.
Lease liabilities are related to leases of outlets and warehouses from other group companies in REITAN.
Note 35 – Contingent liabilities
Accounting policies – Contingent liabilities
A contingent liability is a liability of uncertain timing and amount. Contingencies are not recognised in the consolidated st atement of financial position because the existence can only be confirmed by the occurrence or non -occurrence of one or more uncertain future events not wholly within the control of Reitan Retail or because the risk of loss is estimated to be possible but not probable or because the amount cannot be measured reliably.
Significant accounting judgements in relation to claims and litigation
In the ordinary course of business, Reitan Retail is party to certain claims and litigations etc. of varying content and scop e, one of which is referred to below. There is significant uncertainty related to predicting the outcome of claims and litigations as t hey depend on relevant applicable proceedings, such as negotiations between the parties affected, government actions and court rulings. Reitan Retail is required to exercise judgement to determine whether the risk of loss is possible but not probable.
Statement of objections from The Norwegian Competition Authority
On August 21, 2024, the Norwegian Competition Authority (NCA) issued a decision against REMA 1000 Norge AS, NorgesGruppen and Coop for a breach of Section 10 of the Norwegian Competition Act and Article 53 of the EEA Agreement, which prohibits anticompetitive cooperation. The decision issued an administrative fine of NOK 1,293 million on REMA 1000 Norge AS and REITAN AS.
The decision is based on the NCA’s assessment that the three companies cooperated in a way that enable mutual access to comprehensive gathering of current, publicly available shelf prices through the use of so-called “price hunters”. According to the NCA, this practice was carried out under a mutual understanding regarding the implementation of the “Industry Norm for Comparative Advertising in the Grocery Sector” (Bransjenorm for Sammenlignende Reklame i Dagligvarebransjen) from 2010. The NCA considers that this resulted in increased price transparency in the market and influenced the parties’ pricing incentives, resulting in an appreciable negative effect on competition.
Reitan Retail disagrees with NCA’s decision and has appealed to the Norwegian Competition Appeals Tribunal. The Group considers it note likely that a present obligation exists as of December 31, 2024, or at the time of signing the consolidated financial statements. The Group considers that the practice of the industry norm and the collection of current, publicly available shelf prices through price hunters, does not constitute anti -competitive cooperation with anti-competitive effects under Section 10 of the Norwegian Competition Act or Article 53 of the EEA Agreement.
Note 36 – Significant transactions
Acquisition of a majority of ALDI’s Danish grocery store network
On January 16, 2024, the Group acquired 100 percent of the shares of ALDI Danmark ApS, a non -listed company based in Denmark. The transaction gave access to a portfolio of real estate locations, including 113 store locations (84 fully -owned stores and 29 leased stores) and three distribution centers, well -suited for the REMA 1000 format, paving the way for accelerated growth in an attractive market. For further information regarding the timeline of the transaction, refer to note 36 in Reitan Retail’s consolidated financial statements for 2023.
Significant accounting judgement - Classification of transaction as business combination or asset acquisition
Real estate locations and distribution centres amount to more than 95 percent of the acquisition price. In addition, the acqu isition includes trucks and fixtures. As part of the transaction, REMA 1000 Denmark assumed certain ALDI employees who worked in ALDI stores or distribution centres at the time of transfer of the respective properties. The existing strategic management functi on and associated processes were not acquired and, as such, the Group considered this transaction to be an asset acquisition, rather than an acquisition of a business.
In March 2024, Reitan Retail AS entered into a DKK 1,300 million term loan with 2 -year maturity, financed by the same bank syndicate as its existing multi -currency credit facility. The loan was entered into to finance the payment of the purchase price and capital expenditures related to the ALDI acquisition.
Allocation of acquisition cost
The table below presents the Group’s allocation of acquisition cost to identifiable assets and liabilities based on their rel ative fair values. Assets held for sale is measured at fair value less costs to sell. The fair values of the remaining acquired properties were determined using an income-based valuation approach.
Properties held for sale
During autumn of 2023, the Group signed several sales agreements with external buyers regarding ALDI properties it d id not intend to own. The properties are presented as held for sale in the table above.
Properties held for sale, along with related capital expenditures incurred after the transaction date, are included in the line item ‘Purchase of properties held for sale (ALDI transaction)’ as presented in the consolidated statement of cash flow and amount to NOK 2,533 million. All properties presented as held for sale were disposed of in 2024. Proceeds from these sales, amounting to NOK 2,582, are included in the line item ‘Proceeds from sale of properties held for sale (ALDI transaction)’ as presented in the consolidated statement of cash flow.
Sale and leaseback
Of the 64 real estate locations disposed of in 2024, 37 were leased back by the Group These sale and leaseback transactions did not result in any significant gain or loss Right-of-use assets and lease liabilities recognised in 2024 in relation to these leases amount to NOK 936 million.
Statement of financial position
Note 1 – General information and summary of significant accounting
Reitan Retail AS (the parent company) is the parent company in the Reitan Retail group.
The separate financial statements of Reitan Retail AS have been prepared in accordance with the simplified IFRS pursuant to the Norwegian Accounting Act, section 3 -9, subsection 5 (“Regulations on simplified use of international accounting standard”) issued by the Norwegian Ministry of Finance on February 7, 2022
Reitan Retail AS’ accounting policies are consistent with the accounting principles for the Group, as described in note 2 of the consolidated financial statements. Where the policies for the parent company are substantially different from the policies for the Group, these are described below. Otherwise, refer to the notes to the consolidated financial statements.
Shares in subsidiaries
Shares in subsidiaries are recognised at cost in Reitan Retail AS’ financial statements.
Dividend and group contribution
Entities that are required to keep accounts and prepare company accounts in accordance with the regulations pursuant to Section 3.9 of the Norwegian Accounting Act, regardless of other provisions in these regulations, can choose to recognise dividends and group contributions in accordance with the provisions of the Norwegian Accounting Act. Reitan Retail AS has chosen to make us e of this exception. This means that dividends and group contributions received and paid by the parent company will be recognis ed the year prior to when the receipt or payment is adopted. The same applies to any tax effect of such transactions.
Note 3 – Salaries and personnel costs
Note 3 – Salaries and personnel costs (continued)
Remuneration of the CEO and Board of Directors
In 2024, the CEO received a total compensation of NOK 12.3 million (NOK 10.1 million in 2023), of which NOK 11.2 million is salary and other short-term benefits and NOK 1.1 million is pension costs.
The CEO is entitled to severance pay equal to twelve months of the annual base salary from the expiry of the notice period. A ny severance pay entitlement is conditional upon the CEO waiving the employee protection rights under local law and is applied i n situations where resignation is requested by Reitan Retail AS. The CEO’s own resignation will not trigger severance payment, and the severance payment is also forfeited in cases of summary dismissal from the company. The CEO is part of the bonus scheme for all employees in Reitan Retail AS.
Information about the individual remuneration to the members of the Board of Directors is provided in the table below.
Rune Bjerke (Chair of the Board from May 2022)
Magnus Reitan (Board Member from May 2010)
Eilert Giertsen Hanoa (Board Member from May 2022)
Annika Marie Sigfrid (Board Member from June 2024)
Siv Elisabeth Rosendahl Skard (Board Member from November 2024)
Linda Cathrine Hofstad Helleland (Board Member from November 2024)
The Chair has no agreements regarding bonus or severance pay upon termination of office.
Loans and security for loans to employees, executives, etc.
Reitan Retail AS had no loans to employees as at December 31, 2024 or as at December 31, 2023. No loans have been granted to, nor security pledged for, the chief executive officer, the chair of the board or other close associates. Fees to auditors (exclusive of VAT)
Note 4 – Pension obligations
As at December 31, 2024, Reitan Retail AS had 45 employees (36 employees as at December 31, 2023). The company is obligated to provide an occupational pension scheme in accordance with the Norwegian Mandatory Occupational Pension Act. Reitan Retail AS’s pension scheme satisfies the requirements of the Act.
Reitan Retail AS has a defined contribution plan for its employees with a contribution rate of 6 percent for salaries from 0G to 7 1G and 9 percent for salaries from 7.1G to 12G. A separate pension scheme has been established for employees with salaries above 12G. Total pension costs for 2024 are NOK 6.3 million (NOK 6.1 million in 2023). G is the basic amount of the Norwegian National Insurance Scheme. As at December 31, 2024, 1 G amounts to NOK 124,028
In addition, Reitan Retail AS has several defined benefit plans arising from operations in previous years. The defined benefit plans primarily consist of secured pension plans financed through insurance companies.
Financial assumptions
Number of retirees covered by the defined benefit plan s
There were no active members in the defined benefit plans as at December 31, 2024.
Note 4 – Pension obligations (continued)
6 –
Note 8 – Investments in associates
7
Note 9 – Receivables
Note 10 – Financial instruments
Note 12 – Liabilities
Reitan Retail AS has the following loan agreement as at December 31, 2024:
Multi-currency credit facility - Reitan Retail AS
In December 2021 Reitan Retail AS established a multi -currency credit facility. The loan is financed by a bank syndicate consisting of six banks. The facility is a revolving credit of NOK 9,000 million, of which NOK 4,500 million originally matured in 2024, and NOK 4,500 million originally matured in 2026. Both tranches included two one -year extension options. In 2022 the first extension option for both tranches was utilised, and in 2023 the last extension option was utilised, extending maturity dates to 2026 and 2028 respectively.
In March 2024, Reitan Retail AS made an amendment to the multi -currency credit facility and established a DKK 1,300 million term loan with a two-year maturity in addition to the existing revolving credit facility of NOK 9,000 million. The term loan was obtained to fund the acquisition of a majority of ALDI’s Danish grocery store network, including the purchase price and related capita l expenditures. During 2024, the term loan was partially cancelled, reducing the outstanding amount to DKK 600 million as at December 31.
The following financial covenants appl y to the multi-currency revolving credit facility in Reitan Retail AS:
Net interest -bearing debt and equity share are measured excluding IFRS 16 leases. EBITDA is adjusted for IFRS 16 lease payments. During 2024 and 2023, Reitan Retail AS was in compliance with these covenants, and there is significant headroom also going forward.
To the General Meeting of Reitan Retail AS
Independent Auditor’s Report
Opinion
We have audited the financial statements of Reitan Retail AS, which comprise:
• the financial statements of the parent company Reitan Retail AS (the Company), which comprise the statement of financial position as at 31 December 2024, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and
• the consolidated financial statements of Reitan Retail AS and its subsidiaries (the Group), which comprise the statement of financial position as at 31 December 2024, the statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with simplified application of international accounting standards according to section 39 of the Norwegian Accounting Act, and
• the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the Board of Directors’ report and the other information accompanying the financial statements. The other information comprises information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the other information accompanying the financial statements. The purpose is to consider if there is material inconsistency between the Board of Directors’ report and the other information accompanying the financial statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and the other information accompanying the financial statements otherwise appear to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the other information accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and fair view in accordance with simplified application of international accounting standards according to the Norwegian Accounting Act section 3-9, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.For further description of Auditor’s Responsibilities for the Audit of the Financial Statements reference is made to: https://revisorforeningen.no/revisjonsberetninger
Oslo, 14 May 2025
PricewaterhouseCoopers AS
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo T: 02316, org. no.: 987 009 713 MVA, www.pwc.no Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
Vidar Lorentzen
State Authorised Public Accountant
5.1 Performance measures and definitions
5.1 Performance measures and definitions
1. Alternative performance measures
In the reporting of financial information, Reitan Retail (“the Group”)
-called alternative performance measures (APMs). These measures are not defined by International Financial Reporting Standards (IFRS) and may not be directly comparable to ot her companies’ APMs, including those in the Group’s industry. APMs should be considered as supplementary measures and are not intended to be a substitute for, or superior to, IFRS measurements. The Group believes that these APMs assist
performance and position of the Group. Consequently, APMs are used by the management for
The following sections contain definitions and reconciliations of the Group’s APMs
IFRS
presented may not add up precisely to the totals provided in the consolidated financial statements.
and
2023
1.1 Systemwide sales
Definition: ‘Systemwide sales’ represents sales in all sales outlets under the Group’s concepts and banners, whether operated by the franchisees, Reitan Retail, dealers or commission-based retailers
Sales from franchise-operated sales outlets are reported by the franchisees and represent their revenues from sales at franchise -operated sales outlets. Sales from franchise -operated sales outlets are not recorded as revenue by Reitan Retail and are not included in the Group’s consolidated financial statements. However, the Group’s revenues from sale of franchise services are computed based on the sales made by t he franchisees and, as a result, sales from franchise -operated sales outlets have a direct effect on the Group’s revenue from sale of franchise services and its profitability.
The systemwide sales measure allows management to assess changes in our overall system performance, the health of our brand, the financial health of the franchisee base and the strength of our market position relative to our competitors.
The Group believes this APM is an important supplemental measure of operating performance because it highlights trends in the Group’s business that may not otherwise be apparent when relying solely on GAAP financial measures.
‘Systemwide sales’ includes excise duties and excludes VAT.
The closest IFRS measure to ‘Systemwide sales’ is the line item ‘Revenue’ as recorded in the consolidated statement of profit or loss.
1.1.1 Components of ‘systemwide sales’
1.1 Systemwide sales (continued)
1 'Revenue from sale of other services' (ref. note 6 - Segment information in Reitan Retail's consolidated financial statements) is for
of this reconciliation split between 'Revenue from sale of services in company, dealer and commission operated
and 'Revenue from sale of services to other external customers'.
1.1 Systemwide sales (continued)
1 Revenue is reported net of these excise duties by the Group, see note 7 - Revenue. Excise duties on sugar sweetened beverages and alcohol reported net by the Group are included in line 'Sale of goods and services - franchise-operated sales outlets'.
2 Not recorded as revenue by the Group.
3 'Revenue for Reitan Retail excl. Uno -X Mobility' and 'Systemwide sales for Reitan Retail excl. Uno -X Mobility' are used when calculating growth in revenue and systemwide sales, see section 1.5 and 1.2 respectively.
1.2 Growth in systemwide sales
Definition ‘Growth in systemwide sales’ refers to the percentage change in systemwide sales in one period from the same period in the prior year measured at constant currency.
To exclude the impact of foreign currency translation ‘Growth in systemwide sales’ is
currency at
foreign exchange rates using the currency rate from prior comparable period . The Group believes excluding the impact of foreign currency translation provides a better year over year comparability.
To eliminate fuel price volatility in the comparison, ‘Growth in systemwide sales’ is not calculated for Uno -X Mobility and hence not included in the growth figure of Reitan Retail excl. Uno-X Mobility
‘Growth in systemwide sales’ is a ratio that measures year -on-year movement in systemwide sales. It is considered a good indicator of how rapidly the business is growing.
1.2.1 Calculation of ‘Growth in systemwide sales’ 2024
1 'Systemwide sales' is recalculated based on previous period's currency rates, refer to table below.
Recalculation of systemwide sales based on constant currency rates
NOK
growth in systemwide sales 2023 for Reitan Retail excl. Uno-X Mobility1
1 As the consolidated growth figure consists of companies with different local currencies, it is weighted based on the companie s' relative share
1.3 Like-for-like growth in systemwide sales
Definition: ‘Like-for-like growth in systemwide sales’ is calculated as the percentage growth of comparable systemwide sales from last year.
Only sales outlets that operate under the same conditions in two comparing periods are considered to be comparable and hence included in the like-for-like growth figure. Exemption is made for sales outlets which are temporarily closed for less than 30 days.
To exclude the impact of foreign currency translation , like-for-like growth in systemwide sales is measured in local currency at constant foreign exchange rates. The Group believes excluding the impact of foreign currency translation provides a better year over year comp arability.
As the consolidated growth figure consists of companies with different local currencies, growth is weighted based on the comp anies' relative share of systemwide sales last year (in NOK).
To eliminate fuel price volatility in the comparison, like -for-like growth in systemwide sales is not calculated for Uno -X Mobility and hence not included in calculation of like -for-like growth in systemwide sales for the Group.
The Group believes that disclosing ‘Like -for-like growth in systemwide sales’ provides additional useful analytical information to investors regarding the operating performance of Reitan Retail , as it neutralises the impact of, for example, newly acquired or closed sales outlets, in the calculation of systemwide sales growth.
1.3.1 Calculation of ‘Like -for-like growth in systemwide sales’ 2024 Business areas excl. Uno-X Mobility
1 'Systemwide sales' is recalculated based on previous period's exchange rates, refer to section
Reitan Retail excl. Uno-X Mobility
1 As the consolidated growth figure consists of companies with different local currencies, it is weighted based on the companie s'
of systemwide sales last year (in NOK).
1.5 Growth in revenue
Definition : ‘Total systemwide and distribution sales’ consists of systemwide sales and distribution sales. Distribution sales is the Group ’s sale of goods to other external customers not included in systemwide sales.
The Group uses ‘Total systemwide and distribution sales’ as an internal measure of business operating performance and as a pe rformance measure for benchmarking against the Group’s peers and competitors.
‘Total systemwide and distribution sales’ includes excise duties and excludes VAT.
The closest IFRS measure to ‘Total systemwide and distribution sales’ is the line item ‘Revenue’ as recorded in the consolida ted statement of profit or loss.
1.4.1 Reconciliation of ‘Total systemwide and distribution sales’ to revenue
the currency rate from prior comparable period. The Group believes excluding the impact
year comparability.
To eliminate fuel price volatility in the comparison, ‘Growth in revenue’
1 Revenue is recalculated based on previous period's currency rates, refer to table below.
Recalculation of revenues based on constant currency rates
1.6 EBITDA, or earnings before interest, taxes, depreciation and amortisation
Definition:
1.7 Equity ratio Definition:
1.9 Operating profit
Definition:
1.10 Operating profit
as a percentage of revenue
Definition: Operating profit as a percentage of revenue for the period.
This ratio is an important indicator of the Group’s operating efficiency.
1.8 Interest-bearing receivables and bank deposits
1.11 Operating profit as a percentage of systemwide sales
Definition: Operating profit as a percentage of systemwide sales for the period.
This ratio is an important indicator of the Group’s operating efficiency.
1.11.1 Calculation of ‘operating profit as a percentage of systemwide sales’
1.12 Total investments
Definition : Investments in intangible assets, investment properties and property, plant and equipment paid during the period according to the consolidated statement of cash flow.
‘Total investments’ is a measure of investments made in the operations in the relevant period and is considered useful in eval uating the capital intensity of the operations.
‘Total investments’ is the sum of the line items ‘Purchase of intangible assets’, ‘Purchase of investment properties’ , ‘Purchase of property, plant and equipment’ and ‘Purchase of properties held for sale (ALDI transaction) ’ as recorded in the consolidated statement of cash
1.12.1 Reconciliation of ‘Total investments’ Total
2. Definitions and non-financial performance measures
2.1 Sales outlets
Definition: ‘Sales outlets’ includes all stores and mobility locations
2.2 Systemwide e mployees
Definition: ‘Systemwide employees’ includes all employees of Reitan Retail AS and its subsidiaries, as well as all people being employed or selfemployed in the sales outlets operated by independent third parties (e.g. franchisees) under the Group’s concepts and banners (e.g. pursuant to a franchise agreement).
Systemwide employees are also referred to as ‘people’.
