The process of registering RD suppliers has 6 stages, as follows:‍

1. Commercial interest: when one of RD’s business areas begins to request a supplier evaluation or a bidding process (procurement process with several suppliers)

2. Supplier registration: moment when the company accesses the supplier management platform to fill out its registration data, answer the compliance questionnaires, and accept the terms of commitments to RD.

a. Registering in the supplier homologation systems (stage carried out by the supplier);

b. Answering ESG questionnaire (stage carried out by the supplier);

c. Answering compliance and accepting the terms of commitments to RD (stage carried out by the supplier)

3. Classification of suppliers in critical and non-critical categories and evaluation of companies against social, environmental and governance practices (stage carried out by the RD supplier governance team)

4. Onboarding training: at this stage, the supplier will go through remote training to learn RD’s expectations and commitments (stage carried out by the supplier)

5. In-person audit: depending on the company’s segment, the Supplier Governance team will carry out an in-person audit before going on with the registering process. Audit focused on social, environmental and governance practices

6. Completion of the registration process: at this moment, after carrying out all the previous stages, the supplier is registered in our system and becomes able to start a business relationship with RD

The process of registering a supplier usually takes 30 days on average. The supplier evaluation stage (stage 6) takes up to 7 days. However, it may take longer if the company does not meet the minimum requirements and/or does not send the necessary evidence to prove the elimination of non-conformities

The documents that must be sent by suppliers in the registration process will depend on the product and/or service offered. However, there are mandatory documents for any and all companies that want to become an RD partner:‍

1. Corporate ID - CNPJ

2. Information on National Classification of Economic Activities - CNAE

3. State Registration

4. Evidence of Municipal Registration - Business License or Certificate

5. Registration in the National Simplified Tax System

6. Banking Details for Payment - Bank account evidence

7. Articles of Incorporation/Organization (Evidence of Members - Legally Responsible Persons)

8. Full/simplified record file or Long Form Registry of Commerce Certificate

*The list of documents is not exhaustive, and may be altered without prior notice.

The documents to be filled out or that need acceptance of the supplier are the following:

1. Acceptance of RD Supplier Code of Ethics & Conduct;

2. Acceptance of the People Code - Ethics and Conduct in RD;

3. Statement of Acceptance and Commitment to the RD Code of Ethics & Conduct;

4. Related Party Form;

5. Compliance questionnaire, including topics involving conflict of interest;

6. Brazilian General Data Protection Law and Information Security questionnaire;

7. ESG questionnaire (applicable to critical category suppliers). We emphasize that, according to the company’s activity, specific documents and commitments may be requested.

*The list of documents is not exhaustive, and may be altered without prior notice.

Yes, all subcontractors involved in a production process related to RD Brand and RD logo products, and/or service providers, such as engineering companies or those in charge of works or renovations, must be informed for these companies are equally monitored

Yes, all employees of suppliers (outsourced workers) that will provide services in RD’s premises (offices, DCs and/or pharmacies) must be informed and registered in the Supplier Governance system (Sym Supply), for they will be monitored.

RD classifies all its suppliers and sellers into critical categories (those with higher risk of social and environmental and governance impact) and non-critical categories (those that do not carry a relevant risk of social and environmental and governance impact). The classification process is carried out through a questionnaire with about 12 questions.

The Supplier Governance area used the Sym Supply system to monitor RD business partners, including suppliers of different areas, such as direct procurement, supplies, RD Brands, as well as sellers(linked to RD’s marketplace).

The frequency of evaluations will depend on the evaluation results, according to the company’s rating, ranging from 3 to 12 months

Yes. The supplier monitoring process includes audits carried out by the SG team or a company appointed by RD, and audits can be performed as follows:

1. In-person, online or hybrid (online + in-person);

2. In the format of announced, semi-announced or unannounced audit.

RD understands that complying with the Code of Ethics & Conduct is as important as complying with the rules regarding the quality of products, provision of services or, even, delivery deadlines. RD’s relations with all stakeholders are based on compliance with the laws and regulations applicable to its sector, and RD always works ethically and transparently, preserving the reputation of the RD brand. RD wishes to deliver good products and services to its customers and to society. Therefore, the implications of non compliance with the Code of Ethics & Conduct can be:

1. Non compliance with the principles and commitments hereof shall result in the adoption of corrective measures, from suspension and blocking orders to early termination of RD’s business relationships with its suppliers, including termination of contracts in force, according to RD’s rules.

2. RD may hold suppliers and/or subcontractors liable for any damages and expenses incurred by RD, including, but not limited to, the loss of earnings and/or profits resulting from the violation of one or more items of the Code

RD’s Supplier Governance area evaluates business partners in 9 different topics, as described below:‍

1. Good register, fiscal and tax standing;

2. Licenses and Certifications;

3. Working conditions;

4. Building infrastructure;

5. Pollutant emissions and residue treatment;

6. Transparency and anti-corruption processes;

7. General health and safety conditions;

8. Subcontracting companies and/or outsourced workers;

9. Brazilian General Data Protection Law and Privacy and Information Security Risk Management

Certification requirement will depend on the product and/or service provided to RD. For example, if the supplier is from the garment industry, the Abvtex (Brazilian Association of Textile and Apparel Industries) Certification must be presented

Yes. Suppliers of imported products go through a similar social, environmental and governance classification process, besides homologation and evaluation. However, some documents are not applicable to them and, in this case, equivalent documents are required from them, according to the company’s home country

Yes. RD has an introductory training course in the process of registering new suppliers, as mentioned above (stage 4). Participating in the training and obtaining its certificate is mandatory for a company to become an RD supplier.

Yes. Sellers - companies that sell their products at RD’s marketplace - are also classified, evaluated and monitored by the Supplier Governance area. However, there are some processes that are not applicable to this category.