Sonae acknowledges that the impact of its decisions extends across the entire value chain and assumes responsibility for promoting business practices aligned with the principles of sustainability, ethics, and human rights. Through supplier assessment and development programs—tailored to the specific context of each business unit—the group ensures the integration of Environmental, Social, and Governance (ESG) criteria throughout every stage of the supply chain.

All of Sonae’s private label suppliers are subject to ESG qualification and evaluation processes, which include audits, document reviews, and risk assessments adapted to each supplier’s sector, geographic origin, product nature, and strategic relevance. In 2024, Sonae assessed approximately 2,000 private label suppliers, achieving a 90% ESG compliance rate. Within this scope, 26 suppliers were identified as having actual or potential substantial negative impacts, leading to the implementation of Corrective Action Plans (CAPs) with defined timelines for resolving non-conformities. One supplier had its commercial relationship terminated due to failure to meet established ESG standards, having not implemented the agreed-upon improvement plan.

The implementation of CAPs is institutionalized across the group as a systematic response to detected non-conformities, with resolution timelines ranging from six months to one year, depending on severity. More critical cases—particularly those involving child labor, forced labor, or human rights violations—may trigger the activation of responsible disengagement policies, such as the Responsible Exit Policy applied to fashion brands within the group. These measures are closely monitored by internal quality and social responsibility teams, ensuring diligent oversight of supplier performance over time.

The continuous evaluation of suppliers is structured to reflect the risk profile and specific characteristics of each business unit.

At MC, all suppliers are evaluated annually, with mandatory audits occurring at least every four years, except for certified suppliers in low-risk countries. Fashion labels incorporate ESG scores into performance evaluations; in Zippy’s case, 100% of Tier 1 suppliers are audited, with significant suppliers defined as those representing 80% of the procurement volume. Worten launched its first ESG supplier questionnaire in 2023, achieving a 79% response rate and an average ESG score of 68% among respondents.

Complementing its control and risk mitigation mechanisms, Sonae places strong emphasis on supplier capacity building. Currently, 574 suppliers are enrolled in active development programs across the group, which include training sessions, both remote and in-person technical support, practical guidance manuals, and collaborative development initiatives. A standout example is the Clube de Produtores Continente (CPC), an MC-led initiative that promotes sustainable practices in biodiversity, circularity, and regenerative agriculture through the CPC Academy. Fashion brands annually provide supplier manuals with ethical and environmental guidelines, deliver specialized training content under the Be@t initiative, and link supplier ESG performance to more favorable financial conditions, such as confirming agreements based on EcoVadis ratings.

The implementation of supplier evaluation and development programs is monitored by specialized teams within each business unit and is regularly reported at the executive level.

Internal capacity building is also a strategic priority for Sonae. The group ensures that its sourcing and quality teams receive continuous training in areas such as sustainability, environmental management systems, and circular economy, promoting alignment between institutional requirements and operational practice. In parallel, Sonae maintains accessible communication and grievance mechanisms for suppliers and workers throughout the value chain, including the group’s ombudsman, the Ethics Committee, whistleblowing systems at Musti, and dedicated channels at Gosh! Food and Zippy—all ensuring confidentiality and protection against retaliation.

Sonae maintains an active due diligence approach, with annual cycles of risk assessment, auditing, and document review. For example, the supplier manuals at Zippy, MO, and Salsa are updated annually. Several group companies have also established specific 2025 targets, reinforcing a collective ambition to ensure responsible practices across the entire supply chain. Moreover, all Sonae companies are aligned with the commitment to achieve zero deforestation by 2030, promoting traceability and sustainable certification of key raw materials.