Sustainability Statement

1. General disclosures

Basis for preparation

ESRS 2 BP-1 General basis for preparation of the sustainability statements

At Musti Group, sustainability is not an add-on — it is a fundamental part of our strategy, operations,

and identity. As the leading Nordic specialist retailer of pet products and services, we understand our

unique role in supporting the well-being of pets, their owners, and the broader environment in which

we operate. With operations across Finland, Sweden, Norway and Baltics and recently in Portugal, our

pawprint and influence are significant — and so is our responsibility.

This sustainability statement has been prepared in accordance with the European Sustainability

information about the Group structure, refer to Note 1.4 Group information in the financial statements.

Coverage of value chain

The sustainability statement includes relevant information on sustainability matters across the Group’s

value chain in accordance with ESRS 1 standard. This includes both upstream and downstream

activities, based on their material impacts and the availability of reliable data. The value chain

information reflects our current visibility and control over sustainability matters beyond our direct

operations. We are committed to improving data coverage and stakeholder engagement across

the value chain by continuously developing policies, measurements, targets and scope of future

disclosures.

The core principle of ESRS 2 is the concept of double materiality, which we have adopted in full.

Musti Group has not exercised the option to omit any information related to the intellectual property,

know-how or innovation outcomes.

Musti Group has not exercised the option to exempt the disclosure of impending developments or

matters in course of negotiation, as provided for in articles 19a(3) and 29a(3) of Directive 2013/34/EU.

ESRS 2 BP-2 Disclosures in relation to specific circumstances

Time horizons

Time horizons applied in the sustainability statement correspond to the definition of ESRS: short-term is

the same reporting period as in the financial statements, mid-term is up to five years, and long-term is

more than five years. Musti Group has not applied any other time horizons in the reporting.

Value chain estimation

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Although these measurement methods provide a reasonable basis for understanding the material

sustainability impacts in our value chain, we acknowledge the limitations in achieving full accuracy.

We are actively working to improve data collection by increasing collaboration with suppliers and

other stakeholders. All assumptions and measurement methods used are reviewed, where possible, to

enhance accuracy and consistency.

Sources of estimation and outcome uncertainty

Certain sustainability disclosures are subject to estimation and may involve a degree of uncertainty

the gradual implementation of sustainability measures by suppliers. While we take reasonable steps to

monitor and improve these outcomes, they are influenced by external factors beyond our direct control.

To manage these uncertainties, we clearly document the assumptions, methodologies, and data

sources used in each relevant section of the report. We also disclose any material changes in estimation

methods. Efforts to reduce uncertainty include strengthening supplier engagement, expanding internal

data collection processes, and reviewing estimation models on a regular basis.

Changes in preparation or presentation of sustainability information and reporting errors in prior periods

As this is the first year Musti Group is publishing a sustainability statement in accordance with ESRS,

there are no prior reporting periods for a direct comparison in relation to reporting any changes in

preparation of presentation of sustainability information or errors in prior periods.

use any generally accepted sustainability reporting standards or frameworks in addition to ESRS.

Musti Group’s pet food factory is certified by a third party in accordance with the Food Safety

System Certification, FSSC 22000, and the Environmental Management System’s standard ISO 14001.

Incorporation by reference

In section IRO-2, Disclosure Requirements in ESRS covered by the undertaking’s sustainability

statement, there is a table presenting a list of the disclosure requirements of the sustainability standard,

or the specific data points required by those disclosure requirements, that have been included by way

of references.

Transitional provision

In the first ESRS reporting year, Musti Group utilizes the transitional provision in accordance with ESRS

matters, their links to the business model and strategy, as well as the related policies, actions and

metrics in the relevant sections in accordance with the following reporting standards: E1, E5, S1, S2, S4

and G1. Musti has applied the transitional provisions for the ESRS S2 and ESRS S4 standards, resulting

in the disclosure of specific, material datapoints.

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Governance

ESRS 2 GOV-1 Role of administrative, management, and supervisory bodies

The Board of Directors of Musti Group supervises the management of the Group and its operations,

including matters related to sustainability, and is the highest authority responsible for the Group’s

sustainability. The Board of Directors approves the Group’s strategy, business plan, operating principles,

and guidelines, which are linked to the objectives and principles of sustainable business.

experience and age, nationality, and gender distribution complement each other, ensuring that the

company’s management has the most diverse expertise and background possible.

The are seven members in the Board of Directors: Cláudia Azevedo (chair), Jeffrey David, Johan

Dettel, João Dolores, Joanna Hummel, Tiina-Liisa Liukkonen and Eduardo Piedade (from 18 September

2025). In addition, João Amaral was member of the Board until 28 August 2025. All of them are non-

executive directors. The Board of Directors has two committees, Audit Committee and Remuneration

Committee. Both committees have charters where their key duties and operating principles are

confirmed by the Board of Directors. The members of the Audit Committee are Tiina-Liisa Liukkonen

(chair), Johan Dettel and João Dolores. The members of the Remuneration Committee are Cláudia

Azevedo (chair), Jeffrey David and Eduardo Piedade. 57% of the members of the Board of Directors are

until August 31, 2025. 44% of the management team members are male and 56% female. There are no

employee representatives in the management team or the Board of Directors.

The Board of Directors is responsible for assessing the independence of its members. The majority

of the Board members must be independent of the Company. At least two Board members who are

independent of the Company must also be independent of the Company’s significant shareholders.

The Board members’ independence has been evaluated based on the Corporate Governance Code

2025 issued by the Finnish Securities Market Association. According to the evaluation, all Board

members (100%) are currently independent of the Company. In addition, Tiina-Liisa Liukkonen and

Joanna Hummel are independent of the Company’s significant shareholders. Jeffrey David and João

Dolores are members of the Board of Directors, and Johan Dettel and Eduardo Piedade deputy Board

members, of Flybird Holding Oy, which is the Company’s largest shareholder. In addition, Cláudia

Azevedo, João Dolores and Eduardo Piedade are all executive directors of Board of Directors of Sonae,

which is the Company’s ultimate parent company.

Duties and responsibilities of the administration, management, and supervisory bodies

The Charter of the Board of Directors defines the duties of the Board of Directors include to arrange the

process and reporting standards. The Company’s remuneration policy defines the principles for

management team is responsible for implementing these and reports to the Group’s Board of Directors

on the impacts, risks, and opportunities. The management team is also responsible for preparing the

sustainability statement and ensuring that sufficient resources are allocated for this. The corporate

responsibility team implements responsibility work, prepares the setting of objectives and indicators,

monitors and coordinates the implementation of operating principles in the Group’s various functions,

and prepares the sustainability statement. The corporate responsibility team reports to the Group’s

Chief Operating Officer.

The Board’s Audit Committee oversees the sustainability reporting process and compliance with

standards and approves the sustainability statement before it is submitted to the Board for approval.

The Audit Committee reviews the auditor’s observations on the sustainability statement. The Group’s

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The Group’s Board of Directors and management team have extensive knowledge of sustainability

issues, which the members of the supervisory bodies have accumulated in their previous and current

positions. The Group’s Chief Operating Officer has extensive knowledge of sustainability issues, and

the Chief Financial Officer is proficient in sustainability reporting. In addition, the Group’s Board of

Directors and management team have access to internal and external experts who support them in

their duties, as well as the opportunity to participate in trainings. The Group’s Chief Operating Officer

is responsible for ensuring that the corporate responsibility team has sufficient resources and expertise.

The Group’s management team, members of the corporate responsibility team, and other persons

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The strategic focus areas are:

• New customers and especially puppy customers as market share increasers

• Increase sales through the use of data in customer loyalty marketing

• Expanding the store network and increasing the number of service points

• Nordic market leadership in both the store network and e-commerce

• Improving sales margin by continuously developing our own and exclusive products

• Scalable business that delivers operational economies of scale through growing volumes and

Musti Group operates in the pet market in Finland, Sweden, Norway, the Baltic countries, and Portugal

as a manufacturer, contract manufacturer, and retailer of pet products. The company’s most significant

customer groups are pet owners, especially owners of dogs and cats, who value high-quality, safe

and expertly selected products and comprehensive services. The company’s most significant product

category is pet food. The product range also includes products, accessories, and services related to pet

care and well-being. Services include grooming, training, massage, and nutritional services, as well as

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Musti Group’s integrated business model includes stores, e-commerce, and in-store services. It serves

its Nordic customers through the store chains Musti ja Mirri, Musti, Arken Zoo and Peten Koiratarvike, as

well as purely through the online store such as Peten Koiratarvike and Vetzoo. In the Baltic countries, Musti

Group serves its customers in Pet City stores and online. In Portugal, Musti Group conducts business

under the name ZU.

The Musti store concept is based on a wide selection of pet food and supplies combined with a culture

of knowledgeable and service-minded employees. In addition to personal service, dialogue with customers

is also conducted through the consumer service function. Musti’s goal is to build a community of pet

company’s value creation. Musti manages and secures these production inputs through operating methods

that include responsibility, security of supply, and resource efficiency.

Musti ensures the quality and availability of production inputs by maintaining a responsible and

monitored supplier network. All suppliers are required to commit Musti’s Supplier Code of Conduct or

amfori’s Code of Conduct, and especially in high-risk countries, suppliers must pass amfori BSCI audits.

Suppliers are evaluated to ensure the implementation of social and ethical responsibility.

In 2023, Musti strengthened the security of supply of raw materials by acquiring the full ownership of

Premium Pet Food Suomi Oy in Lieto, which produces pet food. The factory uses, among other things, local raw

materials, which shortens logistics chains and supports delivery of reliability and sustainability goals.

Musti ensures the quality and availability of production inputs by maintaining a responsible and

In addition, Musti Group offers services such as fur care, training and veterinary services that support

customers’ ability to take care of their pets comprehensively. With these services, Musti Group acts as a

”one-stop-shop”, which increases the ease of customer transactions and deepens customer relationships.

The multi-channel business model – 497 stores and a significantly growing online store – improves the

accessibility and reliability of the service. E-commerce, which accounts for about a quarter of total sales,

offers customers flexible ways of doing business even in changing market conditions. The expansion of the

store network and the role of higher margins of private labels will improve Musti’s long-term competitiveness

and growth potential.

For investors, Musti’s business success benefits in the form of increased company value. Musti’s

growth is supported by the pet parenting phenomenon, which leads to customers investing in the well-

Cooperation with suppliers supports the sustainability requirements of the entire value chain.

For employees, Musti offers a growing, internationally expanding operating environment, where the

expertise of the personnel is a key competitive factor. The expansion of operations to seven countries

and the growth of the store network will create jobs and training opportunities.

More broadly, Musti’s operations support social benefits, for example through the development of local

production at the pet food factory in Finland, which strengthens the regional economy and shortens supply

chains. In addition, investments in cooperation with transport partners in emission reductions in logistics,

such as the use of biodiesel and preparations for the introduction of electric trucks, support broader climate

and environmental goals.

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delivery reliability.

ESRS 2 SBM-2 Interests and views of stakeholders

and expectations include good team spirit and a functional work environment, equal pay and career

development opportunities, opportunities to increase competence, open communication, and that

the company’s values are in line with their own values. The focus of HR measures is on good employee

experience, which starts with recruitment and continues throughout the employment relationship.

Consumers and pets are an important customer group for the Group, and the company focuses on

sustainable growth to create value for pet parents as well as owners and other stakeholders. Consumers

form a diverse group whose purchasing behavior is influenced by both emotional and rational factors. The

customer base covers a wide range of ages and incomes, but city dwellers and young adults in particular

are a growing segment. Consumers are digitally active; they search for information online, compare

products, and appreciate easy online shopping.

Consumers’ views are heard in customer encounters in stores, through contacts through customer

service channels and customer satisfaction surveys. Interaction also takes place on social media.

Suppliers are key players in the value chain, as the reliability of product delivery has a direct impact on

the quality of business. Cooperation with suppliers aims at a long-term, mutually beneficial relationship,

as well as transparency in the supply chain and the development of sustainability topics.

The purpose of Musti Group’s stakeholder dialogue is to ensure that the company’s strategy,

sustainability targets and operational activities reflect the expectations of pets and their owners,

employees, suppliers, communities, and investors. The company’s operations are based on its purpose to

consumer expectations.

In addition, Musti actively participates in pet community cooperation, through which it promotes the

well-being of pets and supports pet parents with information and services. Dialogue with pet communities

produces valuable information on the needs and expectations of consumers and communities regarding

the well-being of pets and responsible operations.

Investor interaction, on the other hand, focuses on the development of transparent reporting,

sustainability targets, and risk management. Investors’ expectations affect how Musti builds its

sustainability strategy and how it reports its progress.

The aim of the stakeholder dialogue is also to support Musti’s sustainability commitments. Musti is

committed to the principles of the UN Global Compact, which guides the company’s operations especially

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Musti Group utilizes stakeholder dialogue as a mechanism through which the company collects and

interprets the expectations of its key stakeholders and utilizes them in the continuous development of its

operations. Identified observations through dialogue are utilized in business development in such a way

that Musti’s operations are aligned with its purpose, values and stakeholder expectations, and that the

company is able to create value in a sustainable way throughout its value chain.

Channels and topics of interaction with key stakeholders

In 2025, Musti Group did not make any significant changes to its current strategy based on stakeholder

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List of datapoints in cross-cutting and topical standards that derive from other EU legislation

The following table shows datapoints derived from other EU legislation listed in Annex B of ESRS 2. The table shows where the datapoints are found in the Musti Group’s Sustainability Statement and which datapoints

have been assessed as non-material on the basis of the double materiality analysis.

Disclosure requirement Datapoint

Location and

page number Sustainability information

SFDR Pillar 3

Benchmark

Regulation

EU

Climate Law

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