Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 5% per tonne of molten glass.
• Reduced NOx emissions by 12% compared to the previous period.
• Increased recycled glass usage to 51% of total raw materials.
• Reduced waste generation by 10.6% compared to 2016.
• Reduced energy consumption (direct) by 4.96 GJ/tonne of molten glass to 4.72 GJ/tonne of molten glass.

Social Achievements

• Accident rate with absence from work fell by 43% from 2011 to 2017.
• Severity index of accidents decreased by 23% from 2011 to 2017.
• Provided almost €22,000 to the Social Project in 2017.
• Achieved over 86% compliance with training plans, representing more than 90,000 hours of training.
• Over 80% of customers surveyed recommend Vidrala as a benchmark supplier.

Governance Achievements

• Implemented ISO 14001:2015 and OHSAS 18001 standards.
• Integrated new IT tools to support management of all aspects, including the integrated system.
• No legal non-conformities in 2017.

Climate Goals & Targets

Environmental Challenges

• Maintaining growth without increasing raw material needs.
• Meeting ambitious European recycling targets (75% recycled glass by 2020).
• Reducing greenhouse gas emissions further.
• Improving internal communication.

Mitigation Strategies

• Investing in environmental improvements and energy management systems.
• Promoting selective collection of quality glass and raising public awareness about recycling.
• Implementing preventive plans to optimize reagent consumption and waste recovery projects.
• Installing digital screens in staff canteens and developing a new digital email channel for communications.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing recycled glass in raw material purchases.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Global Compact

Certifications: ISO 14001:2015, ISO 22000, OHSAS 18001, ISO 50001 (Crisnova Vidrio plant)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13

The report details how Vidrala's initiatives contribute to these goals through water management, energy efficiency, economic growth, sustainable consumption and production, and climate change mitigation.

Sustainable Products & Innovation

• Natura range of lighter bottles

Awards & Recognition

• Glass Focus Awards 2017 (UK plant for rail access investment)
• Torres & Earth ‘Best Glass Supplier’ award

Environmental Metrics

ESG Focus Areas

• People
• Place
• Planet
• Prosperity

Environmental Achievements

• Reduced water consumption by 9.2%
• Reduced energy consumption by 1.7%
• Reduced carbon dioxide equivalent (CO2e) emissions by 4.5%
• Increased use of recycled glass to 48% of total raw materials
• 25% reduction in monthly energy consumption of annealing lehrs (equivalent to a reduction of 600 tons of CO2 per year)
• More than 15% reduction in the consumption of air compressors (equivalent to more than 350,000 euros of economic savings per year)

Social Achievements

• Launched Be Healthy program focusing on sport, diet, charity, health, and work-life balance
• 116 accidents recorded (improvement on 2020, 38% reduction from 2019)
• 113,989 training hours provided
• Encirc joined the Diversity Mark accreditation programme
• Donated over EUR 192,000 to charities

Governance Achievements

• Established new anti-corruption, anti-fraud and competence defence policy
• Implemented new software to identify and investigate suspicious behaviour related to purchases and payments
• Completed Carbon Literacy training for a relevant number of employees, including the Executive team
• Joined forces with Business in the Community (BITC) to campaign for businesses to sign the Climate Action Pledge in Northern Ireland

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (droughts, water scarcity)
• Energy-intensive manufacturing process
• Reducing Scope 3 emissions
• Increasing the availability of recycled glass

Mitigation Strategies

• Projects to improve water consumption and efficiency
• ReNEWed Energy Taskforce to improve energy usage and reduce carbon footprint
• Investment in self-generation power facilities and furnace replacement cycles
• Research and innovation for electric/hybrid furnaces
• Implementing energy efficiency measures (ISO 50001)
• Procuring renewable electricity
• Developing onsite renewable electricity with solar photovoltaic projects
• Heat recovery project in Italy
• Improving data quality of Scope 3 emissions
• Involvement with FEVE’s ‘Close the Glass Loop’ platform

Supply Chain Management

Supplier Audits: 11 ESG audits in 2021 (91% satisfactory)

Responsible Procurement

• Supplier and subcontractor code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Onsite renewable energy generation

Reporting Standards

Frameworks Used: GRI Standards: Core option, Spanish Law 11/2018 on non-financial information and Diversity, EU Taxonomy Regulation

Certifications: ISO 14001:2015 (all manufacturing sites)

Third-party Assurance: Ernst & Young, Climate Change & Sustainability Services (CCaSS)

UN Sustainable Development Goals

• SDG 5: Gender Equality
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• World's most sustainable glass bottle (trial using 100% recycled glass and ultra-low-carbon biofuels)

Awards & Recognition

• Diageo’s 2021 Global Supplier Awards (Supplier of the Year and Special Projects Award)

Environmental Metrics

ESG Focus Areas

• People
• Place
• Planet
• Prosperity

Environmental Achievements

• Reduced CO2 emissions by 8% in absolute terms compared to 2022 (mainly due to production stoppages, but also increased renewable energy use).
• Reduced Scope 3 emissions by 17%.
• Increased renewable energy share (Crisnova plant covers 30% of its electricity demand with solar panels; Castellar plant operates with 100% renewable energy supply).
• Increased cullet (recycled glass) use by 9% at Santos Barosa plant, reducing CO2 per tonne produced by approximately 10%.
• Achieved a ‘B’ score from CDP in both Climate Change and Water Management.
• Installation of a photovoltaic electricity generating plant at Crisnova plant (12 MW capacity).
• Installation of a photovoltaic plant at Castellar del Vallés (Barcelona) plant (6 MW capacity, 8,000 MWh annual generation).

Social Achievements

• Launched mandatory training on Gender Violence and the Whistleblowing Channel.
• Implemented a Well Being - Be Healthy Company programme (nutrition, healthy sports, health, work-life balance, and corporate social responsibility).
• 92% of employees expressed pride in working at Vidrala in a satisfaction survey.
• Reduced wage gap to -1.6%.
• Increased employees with disabilities by 27%.
• Reduced occupational accidents by 5%.
• Increased indefinite contracts by 11% compared to 2022.
• #yesweglass initiative showcasing women's contributions.
• Partnership with The Girls Network and The SistersIN Leadership Programme.

Governance Achievements

• 30% of long-term executive compensation linked to decarbonisation, renewable energy use, and safety targets.
• Implemented a robust Risk Management System (RMS).
• Carried out a dual materiality assessment.
• Updated Code of Business Conduct.
• Launched a secure whistleblowing channel (10 communications reported in 2023).

Climate Goals & Targets

Environmental Challenges

• Energy price volatility and supply security.
• Increased cost of raw materials.
• Damaged reputation through not meeting enhanced emissions reporting obligations.
• Inappropriate or untimely investment in technology.
• Growing risk of drought and water scarcity.
• Extreme weather events.
• Gender disparity in glass production.

Mitigation Strategies

• Searching for new energy sources and diversifying energy supply.
• Implementing energy efficiency measures (ISO 50001 certification).
• Investing in renewable energy self-generation.
• Implementing new methodology for collecting emissions data from suppliers.
• Setting Science Based Targets (SBTi) for GHG emissions reduction.
• Implementing a Water Management System.
• Reducing water consumption through various initiatives.
• Implementing measures to foster diversity and gender equality.
• Implementing a behavioural safety programme.

Supply Chain Management

Supplier Audits: 35/year (100% satisfactory)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Growing risk of drought and water scarcity
• Extreme weather events

Transition Risks

• Increased likelihood of regulation and climate litigation
• Energy price volatility and supply security
• Increased cost of raw materials
• Damaged reputation through not meeting enhanced emissions reporting obligations
• Inappropriate or untimely investment in technology

Opportunities

• Green capital knowledge
• Strengthening relationships with stakeholders
• Policy incentives
• Cullet investment
• Technological investment

Reporting Standards

Frameworks Used: GRI, TCFD, SBTi, ESRS

Certifications: ISO 14001:2015, ISO 50001, ISO 45001:2018, AENOR Zero Waste

Third-party Assurance: Ernst & Young, Climate Change & Sustainability Services (CCaSS)

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 15
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 12

Vidrala's initiatives contribute to these goals through renewable energy adoption, GHG emissions reduction, biodiversity protection, education, gender equality, decent work, sustainable industrial processes, and responsible resource use.

Sustainable Products & Innovation

• Lighter weight glass bottles

Awards & Recognition

• Stratesys Awards (People & Talent section)
• OSALAN award (‘Good Practices for the integration of Occupational Risk Prevention’)
• CDP ‘B’ score in Climate Change and Water Management
• Torres & Earth 2023 prize