Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 686,282 metric tons of glass recycled and 123,530.76 metric tons of CO2 avoided.
• Reduced greenhouse gas emission intensity by 2% during the year.
• 5,370 metric tons less waste sent to landfill than the year before.
• More than USD 5 million invested in environmental improvement initiatives in water, energy, air and waste.

Social Achievements

• More than USD 4 million invested in the Salvando Vida fund against COVID-19.
• Average of 33.4 work hours/employee invested in training.
• More than 260 families benefited from social projects under our alliance with the Asociación Nacional Pro Superación Personal, A.C. (ANSPAC) and CLISA.
• According to the engagement survey, 90% of our employees are proud to work at the company, and 85% would recommend Vitro as a great place to work.

Governance Achievements

• No material or significant cases of non-compliance last year that might affect the ordinary course of business for the company and its subsidiary in connection with these issues.
• Our Board of Directors has 12 members, 41.66% of which are independent

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its economic impact.
• Supply chain disruptions due to semiconductor shortage and winter storms.
• High energy and logistical costs.
• Labor shortage in the United States.
• High inflation.

Mitigation Strategies

• Cost and expense control.
• Savings strategies.
• Close communication with clients.
• Investment in modernizing operating technology.
• Increased base salaries and hiring/retention bonuses.
• Development of alternative sourcing strategies.
• Reinforced preventive maintenance routines.

Supply Chain Management

Supplier Audits: 125 new suppliers evaluated for environmental and social impacts

Responsible Procurement

• Use of recycled materials in packaging

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, NMX-R-025-SCFI-2015

Third-party Assurance: Galaz, Yamazaki, Ruiz Urquiza, S.C. (Deloitte)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Various initiatives contribute to these goals through emission reduction, renewable energy use, and biodiversity conservation.

Sustainable Products & Innovation

• Solarvolt™ photovoltaic glass modules
• Lumax® low-reflecting glass
• Solarban R77™ low-emissivity glass
• Vacumax™ vacuum-sealed glass
• WeatherMaster® 600 Windshields
• Low-emissivity coating for automotive glass
• Lightweight glazing for automotive glass

Awards & Recognition

• Gilberto Rincón Gallardo distinction for Inclusive Companies
• Recognition for Voluntary Energy Efficiency Agreement (VEEA)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by more than 13% since 2018.
• Reduced energy intensity of products by 8% since 2018.
• Recycled more than 3 million metric tons of glass waste since 2018, avoiding the emission of approximately 630,000 tCO2e.
• Invested more than USD 2.7 million in 45 projects to reduce energy and water consumption, atmospheric emissions, and waste generation.

Social Achievements

• Contributed more than 1,101,149 m3 of water to communities affected by drought in Mexico.
• Invested around USD$100,000 to prepare a ground well to supply water to a city.
• Supported the LEED® for Cities certification for San Pedro Garza Garcia, Mexico.
• Contributed USD$25,000 and in-kind donation of raw glass (valued at approximately USD$40,000) to restore the Pittsburgh Aviary’s Wetlands exhibit.
• Launched VitroSphere®, a digital architectural glass simulator.

Governance Achievements

• Established a Sustainability Committee.
• Maintained 41.66% independent members on the Board of Directors.
• Engaged KPMG Cárdenas Dosal, S.C. as independent external auditor.

Climate Goals & Targets

Environmental Challenges

• Volatile global financial and social environment (lingering effects of COVID-19 pandemic and war in Ukraine).
• Supply chain disruptions.
• Inflation in commodities and energy prices.
• Shortage of labor in some regions of the United States.
• Lack of components in the automotive industry.
• High energy prices (unable to fully transfer to market in Chemicals division).
• Lower-than-budgeted production volume and equipment problems in Chemicals division.
• Fluctuating quality of raw materials and high worker turnover in Chemicals division.

Mitigation Strategies

• Prioritized projects and programs with attractive ROI and strict cost controls.
• Negotiated compensations with customers to offset inflation and delivery schedule instability.
• Improved production flexibility to manage working capital.
• Implemented projects to improve operations and drive project automation.
• Deployed cost and expense control strategies to counter inflation.
• Took measures to reduce turnover and fill vacancies.
• Focused on more profitable customers and segments.
• Encouraged innovation.
• Implemented pricing measures and maintained open communication with customers.
• Invested USD$16 million in replacement equipment and sustainability-related actions in Chemicals division.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (100% of OEM product plants)

Third-party Assurance: Galaz, Yamazaki, Ruiz Urquiza, S.C. (Deloitte)

Sustainable Products & Innovation

• 60ml Bloom sustainable fragrance bottle for Jafra
• 50ml J-Sport Femme bottle for Jafra

Awards & Recognition

• National Commission for Energy Efficiency recognition for VEEA

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions Reduction
• Energy Efficiency
• Renewable Energy
• Water Management
• Waste Management
• Circular Economy
• Occupational Health and Safety
• Human Rights
• Labor Practices
• Diversity and Inclusion
• Corporate Governance
• Ethics
• Supply Chain Sustainability
• Community Engagement

Environmental Achievements

• Reduced greenhouse gas emissions by more than 11% based on the 2018 baseline.
• Reduced energy intensity by 9% since 2018.
• Reused more than 4 million tons of cullet (recycled glass) since 2018, reducing CO2 eq emissions by approximately 830 thousand tons.
• Reduced energy consumption by 6% in 2023.
• 17% of energy consumed in 2023 came from renewable sources.
• Reduced water use by 110,000 m³ annually through a project in the Alcali business.

Social Achievements

• Launched ANSPAC Women's Program benefiting over 60 people.
• Launched ANSPAC Youth Program benefiting 300 students.
• Invested MXN $16.3 million in training and education.
• Provided 792 thousand training hours, averaging 54 hours per employee.
• Improved productivity, safety, and personnel behavior in Packaging Unit.
• Increased female workforce by 5% compared to 2022.
• Increased senior employees by 14% compared to 2022.
• Supported local communities during drought by transporting 1,000,000 liters of drinking water.

Governance Achievements

• Implemented a confidential and secure grievance channel.
• Conducted regular training and awareness sessions on the Code of Ethics and Conduct.
• Established a Corporate Ethics Committee and Regional Committees.
• Implemented the alert! Whistleblower System, receiving and addressing 79 anonymous complaints.

Climate Goals & Targets

Environmental Challenges

• High levels of inflation and exchange rate fluctuations.
• Varying rates of economic recovery in different markets.
• Shortage of imported production inputs affecting supply chain.
• Increase in energy costs.
• Appreciation of the Mexican peso against the U.S. dollar.
• Limited availability of transportation.
• Slowdown in demand for glass containers.
• Decreased investment capital (CAPEX).
• Increased competition in the glass packaging industry.
• Inflationary pressures impacting import/export costs.
• Changes in demand due to changes in consumption patterns.
• New Mining Law impacting expansion plans.
• Reforms to the Federal Labor Law.
• Negative community perception due to biased environmental reports.
• Increased environmental alerts and rising temperatures.
• Decrease in assembly and sales levels in the automotive sector.
• Supply chain problems due to parts shortages.
• Exchange rate volatility.
• Labor shortages and high turnover.
• Stricter targets for CO2 emissions from customers.
• Financial stress among automotive industry suppliers.
• Slowdown in the second half of the year in architectural markets due to rising interest rates.

Mitigation Strategies

• Implemented cost reduction projects.
• Improved logistic efficiency.
• Incorporated alternate transportation lines.
• Developed a strategic alliance plan to position as a service and maintenance center.
• Implemented cost optimization initiatives, including workforce restructuring.
• Improved emission control systems.
• Adjusted capacity supply to align with demand.
• Implemented projects focused on cost containment.
• Evaluated economic and administrative impacts of labor reforms.
• Increased internal recruitment.
• Implemented training programs for sustainability compliance.
• Strengthened Corporate Social Responsibility programs.
• Optimized environmental alert procedures.
• Eliminated chimneys and acquired specialized equipment to reduce vapor emissions.
• Renegotiated key contracts for raw materials.
• Invested in vertical integration initiatives.
• Analyzing and planning investments to meet stricter CO2 emission targets.
• Strengthened supply chain security.
• Exercised a selective approach in customer choice.
• Maintained a rigorous pricing policy.

Supply Chain Management

Responsible Procurement

• Sustainability criteria for supplier selection and evaluation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (in reference option)

Third-party Assurance: Crowe (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives to reduce emissions, improve energy efficiency, and use renewable energy.

Sustainable Products & Innovation

• Solarvolt photovoltaic glass modules
• Lumax solar control glass
• Solarban R77 low-e glass
• VacuMax insulating glass
• UV LED Curing system
• IS Electronic Machine Control
• FCC Sodium Bicarbonate
• Coatings for energy-efficient vehicles