Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality, Environment and Safety
• People
• Professional Training
• Communication
• Social Responsibility
• Climate Change

Environmental Achievements

• Continuous improvement of the response capacity in situations of environmental emergency, by accident simulation
• Continuous monitoring of environmental aspects, calculation of the respective impacts on the environment and permanent reassessment of mitigation and minimisation measures implemented
• Continuous optimization of the Geolocation system in vehicles, allowing efficient management of technical resources in their daily activities
• Environmental concern about the purchase of work equipment, by elaborating specifications for the main materials groups and equipment, giving priority to those with lower environmental impact while ensuring the user’s safety
• Marketing communication started to be carried out on paper with FSC certification

Social Achievements

• Implementation of the Kaizen methodology at Cerutil and Bordalo Pinheiro, improving employee well-being and productivity
• 6,571 hours of training in 2021, with emphasis on Quality/Continuous Improvement (40% of total training hours)
• Promotion of gender equality and elimination of discrimination
• Partnerships with educational institutions to promote the successful integration of young graduates into working life
• Proactive and consistent attitude in implementing social responsibility goals

Governance Achievements

• VAA, SA obtained the AEO - Authorized Economic Operator status in December 2020
• Certified company with ISO 9001 by SGS ICS
• Member of SEDEX, ensuring ethics/social responsibility issues are assured
• Annual sustainability evaluation according to IKEA's parameters

Climate Goals & Targets

Environmental Challenges

• Severe confinement during the first half of 2021, with brand stores closed
• Impacts on activity and profitability caused by the Covid-19 pandemic
• Increase in energy, fuel and raw material costs
• Geopolitical events in Ukraine and Russia, leading to economic sanctions and uncertainty

Mitigation Strategies

• Active working capital management and curbing investments to guarantee adequate cash flow
• Investments in energy efficiency improvements (modernization of ovens, photovoltaic panels, LED lighting)
• More efficient management of consumption and production (increasing the percentage of reuse of waste and recycled products)
• Passing on the total or partial cost of energy in the sale price to main customers
• Adoption of exceptional government measures to support the energy-intensive industry
• Accelerating investments and more sustainable policies that depend on renewable energies, including green hydrogen

Supply Chain Management

Responsible Procurement

• Reinforcement of commitments towards sustainability by focusing on field visits, training, area and supplier checks

Climate-Related Risks & Opportunities

Physical Risks

• Weather changes

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Environmental Metrics

ESG Focus Areas

• Quality, Environment and Safety
• The People
• Gender Equality
• Professional Training
• Communication
• Social Responsibility
• Sustainable Development Goals (SDGs)
• Climate Change (TCFD)

Environmental Achievements

• Marketing communication started to be carried out on paper with FSC certification.
• Continuous monitoring of environmental aspects, calculation of the respective impacts on the environment and permanent reassessment of mitigation and minimisation measures implemented.
• Environmental concern about the purchase of work equipment, by elaborating specifications for the main materials groups and equipment, giving priority to those with lower environmental impact while ensuring the user’s safety.

Social Achievements

• Implementation of the Kaizen methodology at Cerutil and Bordalo Pinheiro, improving employee well-being.
• 1,033 hours of training in 2022, with emphasis on Commercial training (19% of total hours).
• Maintained a proactive and consistent attitude in 2022, implementing goals in several actions and initiatives related to culture, leisure, education, sports, health and well-being.
• Vista Alegre is a reference employer, recognized in the market for its capacity to train technicians and to manage careers, promoting multi-sectorial opportunities for the career development of each of its employees.

Governance Achievements

• Redefinition of a management structure for all of the Group's activities in the area of sustainability is a purpose to be achieved.

Climate Goals & Targets

Environmental Challenges

• Strong increase in the costs of energy, fuel and raw materials, as a result of the increase in inflation namely caused by the conflict between Russia and Ukraine, thus generating an increase in uncertainty in the macroeconomic context at a global level.
• Escalating conflict between Russia and Ukraine accentuated inflationary pressure in Vista Alegre's main export market (Europe), with a direct impact on increased production costs, namely the cost of energy, logistics and raw materials, thereby adversely affecting the Group's results.
• Slowdown in consumption in Europe due to the crisis resulting from the war in Ukraine, especially at the retail level.
• Strong slowdown in demand for stoneware subcontracts resulting from the European crisis.

Mitigation Strategies

• Development of a series of investments over recent years aimed at improving the efficiency of its processes and through more efficient management of consumption and means of production.
• Development of new products and collections, as well as the improvement of production processes and technological innovation.
• Strengthening the activity of its branches in Spain, the United States, Mexico and Brazil.
• Commitment towards Brand stoneware, developing a new tableware collection for retail and for the hotel sector - with the Casa Alegre and Bordallo Pinheiro brands - which will allow for entry into new business areas with innovative products, especially in terms of the hotel sector, thus ensuring new markets, as well as new and more loyal customers, which will also reduce dependence on these large private label contracts, which are greatly affected when mass market demand slows down.

Supply Chain Management

Responsible Procurement

• Reinforcement of the commitments towards sustainability, by focusing on field visits, training, area and supplier checks, which allowed not only continuous safe and transparent work for customers, but also validation of supplier’s reliability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 45001, AEO – Authorized Economic Operator

Awards & Recognition

• 19 international prizes awarded to Vista Alegre in the main design competitions