Sustainability Report 2022

Of our value chain PRISA is aware that if it is to have a positive impact on sustainability, then it must manage and work towards a responsible value chain , and that, moreover, it must adopt practices, policies and procedures to ensure that these take into account the environmental and social impact of its suppliers. In addition, the Group must use every opportunity to foster the responsible behavior of suppliers and make greener and more socially aware purchases. In October 2022, PRISA's Board of Directors approved the Suppliers' Code of Ethics and Conduct , which outlines the behavior expected of the Group's suppliers on matters of legislation, human rights, employment rights, business ethics, anti-corruption measures, environmental protection, and confidentiality and privacy . All negotiation specifications include a reference to the obligation of suppliers to know and accept the Code. Furthermore, all contracts signed with successful suppliers have a clause expressly included requiring them to accept and comply with the strictest principles of responsibility, transparency and business ethics, and to declare that they are fully aware of the provisions of the Code of Conduct and Ethics for Suppliers. 73% of PRISA’s suppliers have been approved in terms of ESG practices . PRISA has an approval procedure in place for potential suppliers . This is aligned with the principles of Global Compact , and sets out the guidelines on ascertaining, evaluating and validating certain capabilities and conditions of the potential supplier. This is applied prior to the establishment and formalization of business relationships with any PRISA group company. The Procurement Department asks suppliers to provide information on their sustainability performance in areas such as financial, tax and labor matters, the protection of human rights, quality and environmental management, occupational health and safety, and compliance with legislation in the countries where they operate. Those who correctly comply with the above procedure and keep their information updated are considered to be approved suppliers for the Group. There is thus a homogeneous, standardized, systematized, transparent and objective procedure for the identification, approval and periodic evaluation of the suppliers with which the Group works. This ensures that the procedure to include said suppliers in PRISA's value chain takes place using strict criteria, thereby minimizing any risks that could impact the Group's reputation. In 2022, 73% of the Group's suppliers were approved as having met ESG criteria (environment, labor practices, human rights and social aspects), a similar percentage to 2021. As a consequence of the progressive migration of our businesses towards digital formats, the demand for technological, energy and professional services is increasing, thereby reducing the need for paper and printing. This means that the risks associated with waste management have fallen. Such risks are constantly monitored, and it is, therefore, not planned to carry out an audit of the current supplier base in the medium term in this regard. Meanwhile, PRISA will seek to continue building a local value chain wherever it operates, thereby supporting the economic development and prosperity of communities , as required by the United Nations 2030 Agenda and SDG 8 “Decent work and economic growth”. There is a three-year commitment to ensure that the Group’s and each business unit’s spend on procurement from local suppliers be in excess of 80%. A local supplier is understood to be one who is tax resident where the purchase and delivery of the product or service takes place . Thus, in 2022, payments to suppliers for the entire PRISA Group amounted to 569 million euros, 91% of which were made to local suppliers (EUR 517 million) , with the percentages broadly similar in each Business Unit. In 2022, the average payment period to suppliers has been 71 days. 2022 2021 Annual variation 2021 -2022 local suppliers Annual variation 2021 -2022 total suppliers Payments to local suppliers Total payments to all suppliers % Payments to local suppliers Payments to local suppliers Total payments to all suppliers % Payments to local suppliers Corporate 11 13 87% 9 11 88% 20% 20% Santillana 282 310 91% 241 265 91% 17% 17% PRISA Media 223 247 90% 231 248 93% -4% -1% Radio 115 119 97% 116 124 93% 0% -4% News 108 128 84% 116 124 93% -7% 3% TOTAL 517 569 91% 482 523 92% 7% 9% Payment to suppliers (euros millions) PRISA Sustainability Report 2022 75 74 Responsible management