Vidrala: Vidrala S A : 2024 Sustainability information

Sustainability Report 2024 Bottling life's best moments with the world's most sustainable glass 1 TABLE OF CONTENTS PART I: Our Company 3 Introduction 3 Vidrala at a glance 4 PART II: Our Sustainability Strategy in practice 10 PLANET: Glass Industry of the Future and Sustainable Supply Chain 10 PEOPLE: Talent Development, H&S, EDI, Workplace and Wellbeing 18 PLACE: Water, Biodiversity & Community 22 PROSPERITY: Competitiveness, Reinvestment and Sustainable Growth 27 PART III: Our CSRD alignment 29 2 PART I: Our Company 1. Introduction The following Statement of Non-Financial Information (SNFI) complies with the requirements stipulated under the Corporate Sustainability Reporting Directive (CSRD), which is designed to enhance transparency on sustainability and ensure high-quality, comparable reporting across the European Union. This report has been prepared in line with the European Sustainability Reporting Standards (ESRS). It also addresses the priority issues identified by the Vidrala Group (referred to as Vidrala, the Group, the Company, or the Organisation) in its double materiality assessment carried out in 2024. The Vidrala Group includes its parent company, Vidrala, S.A., headquartered in Llodio (Álava), along with its subsidiaries. The information and quantitative data presented in this report cover the period from 1 January to 31 December 2024 and pertain to the entities consolidated within the Vidrala Group's financial reporting scope, adjusted as necessary for any newly consolidated entities during this period. Galo Alvarez, Chief of Sustainability and Corporate Development "At Vidrala, sustainability and competitiveness go hand-in-hand, forming the foundation of our vision for the future. This 2024 Sustainability Report reflects our progress, priorities, and the challenges we navigate as we work toward creating the world's most sustainable glass packaging. Through our "Glass Made Good" strategy, we are committed to integrating sustainable practices across every aspect of our business - from reducing emissions and advancing circularity to enhancing the well-being of our people and communities. Glass stands out as the most sustainable packaging material, offering full recyclability and an infinite life cycle. As the only truly inert packaging material, it ensures no microplastics are generated or come into contact with food and beverages, preserving product integrity and safety. As global demand shifts toward healthy and environmentally responsible solutions, this year's report highlights the concrete actions we are taking to maximise our positive impact. We pride ourselves on being the most efficient glass manufacturer in the world. Our motto, "the most sustainable kWh is the kWh that is not consumed," reflects our commitment to resource efficiency and positions us as the glass packaging manufacturer with the lowest emission factor in the industry. This focus strengthens our environmental commitment, fosters Vidrala's competitiveness, and allows us to reinvest proceeds strategically, with our customers in mind. A sustainable company is built on the strength and engagement of its people. Our commitment to People extends to creating a safe, diverse, and inclusive workplace, supported by initiatives such as our Women in Manufacturing (WIM) program, which fosters gender diversity in leadership and operational roles. As you read through the report, you will see how our actions support our long-term vision of sustainable 3 development. Each milestone brings us closer to a more competitive and environmentally responsible Vidrala." 1 An emission factor of 0.36 tCO ₂ per tonne of melted glass has been determined through our internal calculations. A competitor analysis was performed based on CDP 2022 reports of our five main competitors in the countries where we operate. 2. Vidrala at a glance 2.1 Our history Our story began in 1965 in Llodio (Álava). Since then, we have experienced robust growth, becoming a leading supplier in the manufacture of glass container products. From our humble beginnings, our mission has been clear: to produce glass containers and supply packaging services as efficiently, profitably, and sustainably as possible, while ensuring the safety and well-being of our people. One of our most significant milestones came in 1985 when we successfully listed on the Madrid and Bilbao stock exchanges. Four years later, we expanded our capacity by commissioning the Crisnova plant in Caudete (Albacete), reaching a total annual production of 225,000 tonnes that year. Our expansion continued with the acquisition of Ricardo Gallo in 2003, a Portuguese company with a century of experience in the glass industry. In 2005, we acquired BSN Glasspack in Castellar del Vallés (Barcelona) and Avir in Corsico (Italy), followed by the purchase of Manufacture du Verre in Belgium in 2007. These acquisitions substantially increased our annual production capacity, reaching 805,000 tonnes in the Iberia region and 950,000 tonnes for the Group as a whole. We maintained our upward growth trend with the acquisition of Encirc (United Kingdom and Ireland) in 2015 and Santos Barosa (Portugal) in 2017. In 2023, we purchased the beverage filling facilities and logistics infrastructure in Bristol, known as "The Park," improving our services in the UK market and strengthening our position in the beverage supply chain. That same year, we also acquired Vidroporto, S.A., a Brazilian glass container manufacturer, as part of our strategy to further diversify the business. In 2024, after a deep strategic reflection, we decided to divest from Italy by selling our Italian subsidiary, Vidrala Italia. This divestment allowed us to refocu s on strategic regions and capitalise on the value created in Italy. The transaction strengthened our financial position, reducing our debt to €248.3 million - approximately 0.6 times the proforma EBITDA of our new perimeter. Today our journey continues as we focus, stronger than ever, on our core markets to keep delivering value to our shareholders, customers, and employees. We have consolidated our position as a leading company in the consumer packaging sector. As a listed company with a market capitalisation exceeding €3.0 billion, we produce glass containers for food and beverage products and also offer a wide range of services, including logistic solutions and beverage filling activities. Our strong track record in the industrial sector, expanding geographical presence, high level of glass manufacturing expertise, and deep understanding of our customers' demands make us a trusted partner for many of the world's leading food and beverage brands. We currently produce over 9 billion containers per year, which are held in high regard by our portfolio of over 1,600 customers who have placed their trust in us. At Vidrala, we want to transform glass into a more ecological, economic, attractive and healthier product. To reach this ambitious goal, we are committed to following a path of constant innovation, which is mainly based on carrying out projects aimed at improving 1 An emission factor of 0.36 tCO ₂ per tonne of melted glass has been determined through our internal calculations. A competitor analysis was performed based on CDP 2022 reports of our five main competitors in the countries where we operate. 4 glass as a material and the manufacturing processes we employ. This steadfast commitment goes hand in hand with our strong responsibility for the safety and well-being of our employees, and with our ongoing efforts to consistently exceed our customers' expectations. With over 4,900 employees, we are one of the leading manufacturers of glass containers in Western Europe and Latin America, supported by a network of ten strategically located production centres. Our activity takes place at three facilities in Spain, two in Portugal, three in the United Kingdom and Ireland and two in Brazil. Our manufacturing activity is an uninterrupted industrial process, operating 24 hours a day, 365 days a year. Moreover, our corporate structure is underpinned by a solid shareholder base that supports our operations and business vision. Our board of directors is made up of experienced leaders who contribute their expertise and strategic vision to the company. 2.2 Our commitment to our customers At Vidrala, our customers are at the heart of every decision we make. We have long-lasting relationships with a diverse portfolio of customers, including the vast majority of the leading food and beverage brands. Our bottles and jars cater to a variety of segments such as wine, beer, food preserves, water, spirits, and soft drinks. Complementing this, we offer logistics and beverage filling services, ensuring compliance with the highest quality and environmental standards. Innovation and technology drive our production, enabling us to create containers that meet evolving consumer needs while redefining the glass manufacturing industry. Glass bottles are unparalleled in preserving food and beverages, as their inert nature prevents chemical reactions with the contents, safeguarding purity and taste. They also provide a robust barrier against light and UV rays, which is essential for preserving the quality of sensitive products. Additionally, glass is 100% recyclable without loss of quality, making it a sustainable choice. New BD Viva Lite 75 cl 300g. In 2024, Vidrala launched the BD VIVA LITE 75 CL 300g. bottle, which exemplifies our commitment to sustainability and innovation. This new bottle offers significant environmental benefits, including reductions in fossil fuel consumption, CO2 emissions, raw material usage, electricity consumption, or water usage. These improvements align with Vidrala's broader lightweight portfolio and decarbonization strategy, helping our customers meet their sustainability goals while maintaining product excellence and competitiveness. 5 Angel Roldán - Chief Commercial Officer "At the heart of our s