Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water consumption by up to a third compared to the starting level.
• Reduced energy consumption by 16.8% in 6 years.
• Reduced CO2 emissions by 11.7% compared to 2008.
• Achieved excellent performance in Europe by recovering over 9/10 of all packaging material (91.9% recovery rate in Italy).

Social Achievements

• Dedicated 18,327 hours to employee training in 2012.
• Constantly decreasing accident rate since 2010.
• No cases of occupational diseases from 2011-2013.

Governance Achievements

• Revised Code of Ethics in 2013.
• Implemented a “zero tolerance” policy on corruption.
• 100% of suppliers qualified based on a supplier management process.

Climate Goals & Targets

Environmental Challenges

• High tax burden in Italy.
• Industrial offshoring.
• High cost of raw materials due to fuel costs.
• Need to reduce environmental impact of packaging.
• Increasing waste production globally.

Mitigation Strategies

• Implementing improvement programs to reduce water and energy consumption.
• Focusing on recycling secondary raw materials.
• Implementing procedures to minimize the impact of shipping.
• Promoting a cooperative culture of collaboration among employees.
• Implementing checks on the integrity of partners and internal investigations on the application of corporate procedures.

Supply Chain Management

Supplier Audits: 100% of suppliers audited annually

Responsible Procurement

• Fair dealings; respect for human rights, employment, health and safety practices, and workplace and business ethics.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Product Quality and Safety
• Sustainability and Product Recyclability
• Excellence for Customers and End Consumers
• Energy and Climate Change
• Responsible Use of Water Resources
• Responsible Procurement
• Valorisation of Talents
• People’s Well-being
• Legal & Governance

Environmental Achievements

• Reduced energy intensity rate by 12% compared to 2015
• Reduced emission intensity rate by 11% compared to 2015
• Reduced water intensity by 0.5% compared to 2015
• 92% of recovered fibres on the total fibres used
• 84% Renewable resources on the total materials used
• Cartonboard recyclable and biodegradable for over 90%

Social Achievements

• Reduction of the accident frequency rate by 47% compared to 2015
• Reduction of the accident severity rate by 61% compared to 2015
• Increased average training hours per employee to 13 hours
• Implemented a People Survey to measure staff satisfaction
• Implemented a smart-working policy for Italian entities

Governance Achievements

• Approved and adopted the Group’s Antitrust Compliance Program
• Approved and adopted the Privacy Manual and appointed a data protection officer
• Approved and adopted the new Code of Ethics and the Group’s Anti-bribery Code of Behavior

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the price of electricity, natural gas, chemicals, and fibrous raw materials
• Issues related to the quality and provenance of supplied materials
• Climatic stress events such as floods and storms
• Risks of contamination in food contact packaging
• Cybersecurity risks
• Risks related to the health and safety of workers
• Risks related to product defects
• Risks related to changes in corporate demographics and the enhancement of key professional skills
• Risks related to the commission of illegal activities/violation of human rights

Mitigation Strategies

• Contractual and geographical diversification of supplies
• Working group to assess regulatory trends and economic performance of energy markets
• Multi-year strategy in the management of the energy portfolio
• Exclusive purchase from FSC/PEFC certified suppliers
• Comprehensive prevention program for natural disasters
• High standards of quality management, production, and product control
• Data backup system to prevent data loss
• OHSAS 18001 management systems and periodic external audits
• Mentoring tools to transfer skills and know-how
• Talent attraction and retention policies
• Code of Ethics and Organization, Management, and Control Model (Legislative Decree 231/01)

Supply Chain Management

Supplier Audits: 26% of suppliers subjected to social-environmental screening in 2018

Responsible Procurement

• Specific qualification process for suppliers of forest products, favoring FSC® or PEFC™ certified raw materials
• Exclusive purchase of certified virgin fibrous raw materials
• Environmental and social sustainability criteria in supplier evaluation

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms

Transition Risks

• Fluctuations in raw material and energy prices
• Changes in regulations concerning emissions

Opportunities

• Improved energy efficiency
• Increased use of renewable energy sources

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards: Core option (2016)

Certifications: ISO 9001, ISO 14001, EMAS, PEFC™, BRC FOOD, FSC®, ISO 50001, BLAUER ENGEL, OHSAS 18001

Third-party Assurance: Deloitte & Touche SpA

UN Sustainable Development Goals

• 17 Sustainable Development Goals (SDGs)

RDM Group's commitment covers 10 specific areas of responsibility, covering 12 SDGs.

Sustainable Products & Innovation

• Barrier treatments for cartonboard to prevent migration of mineral oils

Awards & Recognition

• Finalist of the Social Report Library Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Water Stewardship
• Waste Management
• Occupational Health and Safety
• Responsible Sourcing
• Employee Development
• Diversity and Inclusion
• Business Ethics
• Stakeholder Engagement

Environmental Achievements

• Reduced scope 1 and scope 2 CO2 equivalent emissions per ton of net saleable production
• Increased the proportion of waste sent for recovery to 73%
• Reduced specific water withdrawals

Social Achievements

• No coronavirus outbreaks in any Group facilities despite the pandemic
• Implemented a behavior-based safety program in one production site
• Continued investment in employee training and development programs

Governance Achievements

• Adopted a Code of Conduct to manage relations with the Public Administration and third parties (Anti-Corruption Code)
• Board of Directors renewed in 2020
• No reported cases of non-compliance with laws, regulations, or standards of business ethics

Climate Goals & Targets

Environmental Challenges

• Supply risks related to raw material quality and availability
• Environmental risks associated with water resource use and emissions
• Climate change risks related to energy intensity and potential operational disruptions
• Risks related to product quality and safety
• Occupational health and safety risks
• Risks related to epidemics and pandemics
• Risks related to the commission of unlawful activities and violation of human rights
• Risks related to breakdowns and production interruptions
• Cybersecurity risks
• Risks related to the loss of know-how and skills

Mitigation Strategies

• Sourcing virgin market pulp only from internationally recognized certified schemes (FSC® and PEFC)
• Implementing water withdrawal reduction programs and monitoring discharge quality
• Transitioning towards production processes and energy sources with a lower environmental impact
• Implementing a prevention program to reduce the impacts of natural disasters
• Adopting ISO 9001 quality management systems
• Investing in a behavior-based safety program
• Defining emergency rules and procedures for future epidemiological or pandemic crises
• Adopting RDM Group’s Code of Ethics and Organization, Management and Control Model
• Implementing an IT security management and control system
• Using mentoring to pass on skills and know-how

Supply Chain Management

Supplier Audits: 70 new suppliers underwent social and/or environmental screening in 2020

Responsible Procurement

• Sourcing materials and services only from companies that share the Group’s commitment to conducting business responsibly
• Setting out expectations concerning integrity in supply contracts
• Requiring compliance with the values and good practices detailed in our Code of Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Climate change events such as rising river flows and increased frequency and intensity of storms

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards “Core” option

Third-party Assurance: Deloitte & Touche SpA

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

See page 19 of the report

Sustainable Products & Innovation

• Lightweight cartonboard for packaging
• Renewable and recyclable barrier solutions

Environmental Metrics

ESG Focus Areas

• Circularity
• Energy and Climate Change
• Water Stewardship
• Waste Management
• Occupational Health and Safety
• Employee Well-being
• Diversity and Inclusion
• Responsible Supply Chain
• Business Integrity
• Corporate Governance

Environmental Achievements

• Reduced specific CO2 emissions per ton of net salable production to 0.45 tCO2e/t (long-term goal scope)
• Installed a new gas-fired cogeneration power plant at the Ovaro mill in Italy, improving energy efficiency and reducing emissions and water withdrawal.
• Waste-to-energy plant in Eska Hoogezand, Netherlands, diverted more than 11,000 tons of waste from landfills.
• Improved the recovery system of process water in Barcelona, Spain, reducing fiber content in pulper waste from 20% to 5%.
• New boiler at the Santa Giustina mill in Italy improved steam production and reduced NOx emissions.
• Purchased 28% of electricity from renewable sources, avoiding over 15,000 tCO2e.

Social Achievements

• Launched and expanded the Behavior-Based Safety (BBS) program across multiple mills.
• Increased employee advocacy rate to 4.16 (goal: 4.5 by 2030).
• Increased percentage of women employed to 10.7% (goal: +30% by 2030).

Governance Achievements

• Achieved ISO 9001 certification for the Paprinsa mill in Spain.
• Strengthened internal teams to better monitor and coordinate sustainable actions.
• Established three committees (ESG, Risk and Audit, Remuneration) to assist the Board of Directors.
• Implemented a whistleblowing mechanism to report ethical violations.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical instability and energy price volatility.
• Water scarcity in some operating areas.
• Climate change impacts (extreme weather, rising rivers).
• Fire risk (Blendecques mill fire in 2022).
• Cybersecurity risks.
• Maintaining high safety performance.

Mitigation Strategies

• Contractual and geographical diversification of supplies.
• Local sourcing of raw materials where possible.
• Multi-mill strategy for product manufacturing and logistics.
• Investments in water-efficient technologies and closed water loops.
• Prevention program to assess exposure to natural disasters.
• Implementation of specific IT security management and control systems.
• Behavior-Based Safety (BBS) program.
• Continuous improvement programs and investments in modernization of facilities.

Supply Chain Management

Supplier Audits: 108 out of 226 new suppliers underwent social and/or environmental screening in 2022 (48%).

Responsible Procurement

• Pre-qualification and qualification process for suppliers, including screenings of social and environmental requirements.
• Verification of compliance with lawful hiring of workers and social security obligations.
• Exclusive procurement from companies committed to responsible business.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising rivers

Transition Risks

• Stricter constraints on water withdrawals
• Volatility in the purchase price of emission allowances under the EU Emission Trading System (EU-ETS)

Opportunities

• Development of energy-efficient products
• Use of cleaner fuels
• Investment in green technologies (hydrogen, biogas, biomass).

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 45001, ISO 9001, ISO 14001, ISO 50001, EMAS, FSC®, PEFC

Third-party Assurance: PricewaterhouseCoopers Business Services S.r.l.

UN Sustainable Development Goals

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

Initiatives contribute to these goals through renewable energy use, waste reduction, emissions reduction, and responsible resource management.

Sustainable Products & Innovation

• Lightweight cartonboard
• Barrier solutions for fiber-based packaging
• Eska Bicolours

Environmental Metrics

ESG Focus Areas

• Circularity
• Climate Change
• Water Stewardship
• Employee Health and Safety
• Diversity and Inclusion
• Responsible Sourcing
• Business Integrity
• Corporate Governance

Environmental Achievements

• 15% reduction in wastewater discharge intensity since 2020
• Increased share of solid waste sent for recovery from 73% in 2020 to 83% in 2023
• 7% reduction in energy intensity since 2020
• Installation of two waste-to-energy (WTE) plants reducing landfill waste and lowering carbon intensity
• New cogeneration plant at Ovaro mill completed in 2022, increasing efficiency and reducing emissions and water withdrawals
• Replacement of existing cogeneration facility at Barcelona plant begun in 2023 (expected completion April 2024), better tailored to energy needs

Social Achievements

• 2023 was the best year ever in terms of health and safety; 77 workers received awards for being injury-free for 10 years or more
• 20% increase in female employment since 2020 (from 9.5% to 11.4%)
• Launched a Group-wide campaign to promote healthy nutrition and lifestyles
• Introduced a new Human Rights policy
• Organized an e-learning session on human rights and cultural diversity

Governance Achievements

• Awarded a Gold Sustainability Rating by Ecovadis in 2023
• Updated Code of Ethics in 2023, reinforcing commitment to fight clientelism, harassment, and abuse
• Updated Anti-Corruption Code in 2023
• Established three committees (ESG, Risk and Audit, Remuneration) to assist the Board of Directors
• Created three new internal committees (Internal Control, Privacy, Energy Network) in 2023

Climate Goals & Targets

Environmental Challenges

• Challenging economic and commercial conditions
• Partial standstill at some mills impacting carbon intensity performance
• Increased complaints intensity ratio in 2023 due to production standstills
• Water stress in Barcelona area
• Growing consumer demand for sustainable alternatives to plastic packaging requiring innovation and collaboration
• Evolving regulatory frameworks (e.g., EU Packaging and Packaging Waste Regulation)

Mitigation Strategies

• Focus on operational excellence and efficiency
• Investments in operational excellence and efficiency, and making plants more sustainable
• Advancement in digitalization program
• Transformational investments in mills to reduce greenhouse gas emissions and increase water recycling
• Development of new barrier solutions that preserve recyclability
• Development of lightweight cartonboard
• Collaboration with clients, suppliers, and research centers
• Proactive approach to innovation
• Digital transformation of Technical Customer Service department
• Establishment of a new governance of product quality network
• Investments in water conservation and energy efficiency
• Partnerships with TOMRA for plastic waste recycling

Supply Chain Management

Supplier Audits: 100% of key suppliers to be assessed by 2025

Responsible Procurement

• Supplier contracts include expectations concerning integrity, human rights, and environmental impact
• Pre-qualification and qualification process for suppliers
• Verification of compliance with lawful hiring and social security obligations
• All virgin pulp suppliers must be FSC® or PEFC certified, or meet FSC® controlled wood requirement

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Extreme weather events

Transition Risks

• Stricter water regulations
• Changes in environmental standards
• EU Emissions Trading System (EU ETS)

Opportunities

• Development of energy-efficient products
• Use of cleaner fuels

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, FSC®, PEFC, EMAS (two mills)

Third-party Assurance: PricewaterhouseCoopers Business Services S.r.l.

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

See page 12 for details on how initiatives contribute to these goals

Sustainable Products & Innovation

• Lightweight cartonboard
• Fiber-based solutions with functional barriers to substitute plastics
• Eska Pure (mass-dyed premium solid board)

Awards & Recognition

• Gold Award for innovation in sustainable cartonboard packaging (Valdo Ice Box)
• EcoVadis Gold rating