Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Economic Performance
• Governance

Environmental Achievements

• Recycled more than 1.35 million tons of paper and boxboard, avoiding cutting down trees for manufacturing
• Cogenerated 62% of the energy used in operations through the Bio-ENERGY system
• Recycled 62.26% of the water used in production processes
• Captured 5.41 million tons of CO2e

Social Achievements

• Generated 11,763 direct and 17,650 indirect jobs
• Increased hiring and participation of women by 45% in the last five years
• Benefited 17,356 people from 88 communities in Mexico through community outreach programs
• Launched the "Dialogue with our Communities" project to collaboratively meet community expectations

Governance Achievements

• Acquired majority control of U.S. Corrugated Inc., expanding operations in the United States
• Celebrated 25 years trading on the Mexican Stock Exchange (BMV), complying with IFRS
• Board of Directors with 25% independent members
• 100% Code of Ethics training for new employees and annual training for all staff

Climate Goals & Targets

Environmental Challenges

• Slowdown of the economy in Mexico and the United States

Mitigation Strategies

• Improved operating efficiency
• Reinforced market leadership by exploring growth options
• Expanded presence in the United States through acquisition

Supply Chain Management

Supplier Audits: 94% certified in tax matters

Responsible Procurement

• Supplier Work Policy
• Rejection of child and forced labor, discrimination, and corruption

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Essential option), UN Global Compact

Certifications: ISO 9001:2008, ISO 14001:2004, ISO 22000:2000, OHSAS 18001:2007, ISO 45001:2018, FSC® 100% Recycled

Third-party Assurance: Redes Sociales en Línea Timberlan S.A. de C.V. (limited verification)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 15 (Life on land)

Initiatives aligned with UN SDGs

Sustainable Products & Innovation

• 100% recycled paper products

Awards & Recognition

• Water Efficiency Award
• Environmental Leadership Award
• National Forestry Award
• Clean Industry Award
• Socially Responsible Company (ESR)
• "Ethics and Values In Mexican Industry" Award
• Clares Corporate Social Responsibility Award
• Clean Transportation Award
• Global CEO of the year Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Recycled 1.34 million tons of paper and cardboard.
• Co-generated 60.1% of the energy needed for manufacturing processes.
• Captured 5.36 million tons of CO2e.
• Recycled 68.17% of the water used in operations.

Social Achievements

• Maintained employment, salaries, and benefits for 12,128 employees despite the COVID-19 pandemic.
• Launched internal campaigns to collect personal care products for communities.
• Donated sodium hypochlorite to the Red Cross.
• Designated parking lots for the Mexican Social Security Institute to expand services.

Governance Achievements

• Revised existing Code of Ethics and policies.
• Developed a Code of Ethics for Suppliers and Customers.
• Implemented the Bio Pappel Ethics Line for reporting ethical breaches.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly decreased economic activity and changed consumption patterns.
• Increased regulated waste due to Personal Protective Equipment (PPE) usage.

Mitigation Strategies

• Implemented internal COVID-19 protocol aligned with WHO and local government guidelines.
• Implemented remote work, flexible hours, and restrictions on external visits and travel.
• Launched internal campaigns to collect and properly dispose of PPE.

Supply Chain Management

Supplier Audits: 96% of suppliers certified in tax matters

Responsible Procurement

• Supplier Certification program
• Code of Ethics for suppliers
• Supplier Portal for reporting

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Essential option), UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 22000:2020, OHSAS 18001:2007, ISO 45001:2018, FSC® 100% Recycled, NMX-R-025-SCFI-2015, NMX-AA-144-SCFI-2018, NOM-035-STPS-2018

Third-party Assurance: Redes Sociales en Línea Timberland S.A. de C.V. (limited assurance)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Bio Pappel's business model and strategies positively impact 15 out of 17 SDGs.

Sustainable Products & Innovation

• 100% recycled paper and paper products

Awards & Recognition

• Water Efficiency Award
• Environmental Leadership Award
• Global CEO of the year Award
• Forest Management Merit National Award
• Premio CLARES Corporate Social Responsibility Award
• “Ethics and Values” Award

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Economic Growth
• Innovation
• Productivity
• Governance

Environmental Achievements

• Captured 6.43 million tons of CO₂e annually.
• Recycled 63% of water used in production processes.
• Generated 1.659 billion USD of green energy through the Bio-ENERGY system.
• Recycled 1.77 million short tons of paper and cardboard.

Social Achievements

• Implemented BIO TALENT program for talent management and employee development.
• Certified 32 work centers under Mexican Standard NMX-025 for Equal Employment and Non-Discrimination.
• Provided 249,836 training hours for employees.
• Maintained strict sanitary measures in all facilities to ensure safe spaces during the COVID-19 pandemic.

Governance Achievements

• Maintained a solid governance structure promoting integrity and transparency, aligned with the Code of Ethics.
• Trained 100% of employees on the Code of Ethics.
• Established the Bio Pappel Ethics Line for reporting ethical concerns.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and community engagement.
• Maintaining optimal digital environment and cybersecurity standards.

Mitigation Strategies

• Reinforced health protocols and measures to preserve employee, customer, and supplier health.
• Implemented strategies to maintain an optimal digital environment and cybersecurity standards.
• Adapted community engagement strategies to a new modality to ensure program continuity.

Supply Chain Management

Supplier Audits: 96% of suppliers certified in tax matters in 2021.

Responsible Procurement

• Supplier Code of Ethics
• Supplier Certification process

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Essential option, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 22000:2020 V5.1, OHSAS 18001:2007, ISO 45001:2018, FSC® 100% Recycled, NMX-AA-144-SCFI-2018, NMX-N-107-SCFI-2010, NOM-035-STPS-2018

Third-party Assurance: Redes Sociales en Línea Timberland S.A. de C.V.

UN Sustainable Development Goals

• SDG 4
• SDG 8
• SDG 12
• SDG 5
• SDG 13
• SDG 6
• SDG 14
• SDG 7
• SDG 15
• SDG 9
• SDG 16
• SDG 17
• SDG 10
• SDG 3
• SDG 11

Bio Pappel's initiatives contribute to these goals through various programs and actions detailed in the report.

Sustainable Products & Innovation

• 100% recycled paper products

Awards & Recognition

• Global CEO of the year Award
• Forest Management Merit National Award
• Water Efficiency Award
• Environmental Leadership Award
• Clean Industry Certification
• Socially Responsible Company
• Leading Company in Anti-Corruption Practices
• “Ethics and Values” Award
• CLARES Award
• Clean Transportation Award

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Economic Growth
• Ethics and Compliance

Environmental Achievements

• Captured 7.73 million tons of CO2e in 2022
• Recycled 18.67 million m3 of water in 2022
• 67% of energy used is green and cogenerated
• 54.4% of water used in production processes is recycled
• 2.13 million short tons of recycled paper and cardboard

Social Achievements

• Created 13,273 direct jobs in 2022
• Implemented performance management program with 98% of employees reviewed
• 304,120 employee training hours
• Implemented Mexican Standard on Labor Equality and Non-Discrimination in 7 work centers
• Achieved 10% women on the Board of Directors and 28% in administrative team

Governance Achievements

• 100% of customers and suppliers pledged to comply with the Code of Ethics
• 100% of employees received training on the Code of Ethics
• Independent third-party manages the Bio Pappel Ethics Line

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Meeting the needs and expectations of stakeholders
• Maintaining a safe and healthy work environment during the pandemic

Mitigation Strategies

• Implemented a reverse logistics system to reduce transportation times and environmental footprint
• Replaced trucks with rail cars and outfitted trucks with EURO V technology
• Implemented a remote work system and preventive hygiene measures to mitigate COVID-19 risks
• Developed various communication and training campaigns to address COVID-19 challenges

Supply Chain Management

Supplier Audits: 97% of suppliers audited in 2022

Responsible Procurement

• Supplier Certification ensuring compliance with Mexico's tax and labor authorities
• Code of Ethics for Suppliers
• Annual Suppliers Congress

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015, FSSC 22000:2020 V 5.1, ISO 45001:2018, FSC® 100% Recycled, Sustainable Forestry Initiative® Chain of Custody

Third-party Assurance: Redes Sociales en Línea Timberlan, S.A. de C.V.

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17

Bio Pappel's initiatives align with 15 of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• 100% recycled paper products

Awards & Recognition

• Water Efficiency Award
• Environmental Leadership Award
• Global CEO of the year Award
• Forest Management Merit National Award
• CLARES Corporate Social Responsibility Award
• “Ethics and Values” Award
• Safe and Healthy work environments Award
• Leading Company in Anti-Corruption Practices
• Leading Company in Social Responsibility

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic Growth

Environmental Achievements

• Recycled 2.06 million short tons of post-consumer paper and cardboard, saving 8.04 million trees and preventing the emission of 7.48 million tons of CO2e into the atmosphere.
• Cogenerated 85% of the energy used.
• Recycled 92% of the water used in operations.
• Achieved a 63% decrease in fuel oil consumption in 2023 compared to 2022.

Social Achievements

• Strengthened community engagement programs focusing on environmental care, community development, and equitable access to education.
• Implemented Bio TALENT 2.0 performance management model.
• 100% of work centers certified under NMX-025 (Mexican Standard for Labor Equality and Non-Discrimination).
• Trained 194 women from 14 communities in entrepreneurship.

Governance Achievements

• Maintained high standards of transparency and integrity.
• Implemented Bio Pappel Ethics Line for reporting unethical behavior.
• 93% of employees received training on the Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Supply chain disruptions

Mitigation Strategies

• Adherence to the Science-Based Targets initiative (SBTi) to establish emission reduction goals.
• Investment in green technology and responsible practices.
• Strengthening partnerships to care for the environment and ensure community well-being.
• Implementation of a sustainable digital model to address cybersecurity risks.

Supply Chain Management

Supplier Audits: 98% of base suppliers in full compliance with Mexico’s tax and labor authorities.

Responsible Procurement

• Supplier Code of Ethics
• Supplier tax certification process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, Science Based Targets initiative (SBTi)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, FSSC 22000:2020 V5.1, FSC® 100% RECYCLED, SFI® Chain of Custody, NMX-R-025-SCFI-2015, NMX-AA-144-SCFI-2018, NMX-N-107-SCFI-2010

Third-party Assurance: Redes Sociales en Línea Timberlan, S.A. de C.V.

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 15, 17

Through our business strategy and social responsibility programs, we actively contribute to 15 of the 17 SDGs.

Sustainable Products & Innovation

• Products made with 100% recycled materials

Awards & Recognition

• Forest Management Merit National Award
• Pulp & Paper International Awards (Global CEO of the Year, Water Efficiency Award, Environmental Leadership Award)
• FSC® Leadership Award
• Latin American Center for Social Responsibility (CLARES) Corporate Social Responsibility Award
• CEMEFI Socially Responsible Company
• Safe and Healthy Work Environments Recognition
• Ethics and Values, Lifetime Achievement Award
• Outstanding Practice Award for our circular economy Urban Forest Model