IBERSOL • 2023 Integrated Management Report

Consolidated Financial Statements 3.3. Quality and food safety risks Ibersol Group’s quality department is responsible for identifying and ensuring con- trol of food quality and safety risks. Thus, various prevention and control measures are implemented for different areas of the Group’s business. In this context, some measures stand out, such as: ensuring the implemented Traceability System and the control of the Production Process in the units, through the HACCP (Hazard Analysis & Critical Control Points) System. 3.4. Price Risk Significant changes in commodity prices are largely reflected in the selling prices of products and monitored by the market. However, when commodity price increases are much higher than general inflation, these changes are gradually impacted in sell- ing prices, and in the short term there may be a degradation of the gross margin. 3.5. Environmental risk Environmental impact The Ibersol Group’s risk environmental risk and impact management rests largely on the implementation and certification of management systems, such as norm ISO 14001. In particular, the main flows of packaging materials are monitored, and all obligations regarding reporting to authorities licensed to manage and promote the selection, collection, and recycling of packages in the Portuguese and Spanish mar- kets are fulfilled. Climate change The phenomenon of climate change has led to a varied disruptions to agricultural production in several markets. This instability leads to scarcity, price volatility, and disruptive events at the level of global supply chains. If, on one hand, the Ibersol Group is committed to doing its part to reduce greenhouse gas emissions, on the other it keeps a close eye on the most affected commodities and constantly ponders the best supply strategies, both for itself and with its global and local partners, so as to guarantee the continuity of its activities Extreme natural events The increasingly frequent occurrence of extreme natural events jeopardise personal safety and the continuity of activity. The Ibersol Group has ISO certifications that assure high standards of health and safety in the workplace, food quality and safety procedures, and strict observance of all rules and legal impositions in terms of phys- ical safety and civil protection in its commercial establishments. On the other hand, after 2020 the Covid-19 pandemic demanded much more resilient and flexible man- agement procedures, amongst which the significant increase of digital resources and, within these, digital sales channels, that allowed for a significant improvement in terms of crisis and business continuity management. 416