2022
ANNUALREPORT

Index03 Chairman’s Letter
04 Vidrala, at a Glance
13 Management Report
37 Financial Statements
40 Sustainability Report2Chairman’s Letter
Dear shareholders,
The year 2022 turned abnormal since the very beginning, affected by unprecedented
inflationary pressures. These cost tensions were the culmination of a period ofaccumulation of unforeseen external events. Since the pandemic, with all its consequentdifficulties, going through the distortions in supply chains, which led to the start of thehighest inflationary period for the industry in decades and which has had its maximum
expression on energy prices in Europe after the conflict between Russia and Ukraine.
Vidrala’s results throughout this entire period are a good example of the strength of ourbusiness model. Thus, throughout 2022, our initially deteriorated operational margins
gradually recovered as a result of internal energy cost mitigation actions, a sustainedsolid manufacturing performance, the first effects of our ambitious investment plan anda progressive adaptation of our sales prices.
It is remarkable that, during all this time, demand for glass packaging showed certainly
favourable conditions, grounded on the strong underlying fundamentals for consumptionof food and beverages and the continuous support from packagers, brand owners, ontrade & off-trade channels and consumers to glass, as the ultimate sustainable packaging
material. Today, glass has a brighter future than ever.

Looking forward, we have recently announced two important corporate operations. On
the one hand, since January 31, 2023, our subsidiary in the UK owns the beverages
filling facilities and the logistic infrastructure previously operated by Accolade Wines inBristol, known as ‘The Park’. The business purchased will reinforce Encirc’s unparalleledcharacteristics as the only player to offer a full 360 approach to the beverage supply
chain.
Besides, in early February 2023, Vidrala announced the acquisition of a stake of 29.36%
in the Brazilian company Vidroporto, S.A. This acquisition, although it is a minority
stake, evidences Vidrala’s long-term strategy towards diversifying the business, creating
platforms for future growth in regions that will offer interesting opportunities, andstrengthening long-term partnerships with strategic customers.
We continue working to grow our project and make our products in the most competitiveand sustainable way. And we will do it securing a strict capital discipline and an attractive
remuneration to our shareholders.
Thank you for your trust.

Carlos Delclaux
Chairman2022
ANNUALREPORT

3

Vidrala,
at a glance

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

2022 Key indicators
Percentage variations over FY 2021

8

19

49%

+0.4%

Manufacturing
sites

recycled glass overraw materials

Furnaces

consumption of raw
materials

More thanMore thanMore thanMore thanbillion containers
producedcustomers

employees

training hours

8.0

+0.9%
in water usage

1,600

+2.2%
in CO2 emissions

3,600

-1.7%

in energy consumption

130,000-1.9%
customer complaints*Annual variation over 2021, in unitary terms (i.e., over ton of melted glass). This is a reference unit of measure in the glass industry. Any information based on ton of melted glass -tmg- enables both the assessment of the company’s performanceand the comparison among different companies in the sector.

2022
ANNUALREPORT

5

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Factories
AIALA VIDRIO
Llodio, Spain

CRISNOVA VIDRIO
Caudete, Spain

CASTELLAR VIDRIO

Castellar del Vallés, SpainGALLO VIDRO

Marinha Grande, Portugal

SB VIDROS

Marinha Grande, Portugal

ENCIRC ITALIA
Corsico, Italy

ENCIRC ELTON

Elton Cheshire, England

ENCIRC DERRYLIN

Fermanagh, Northern Ireland

ENCIRC BRISTOL
Bristol, England

VIDRALA Headquarters
Tel. +34 946 719 700

ENCIRC Headquarters
Tel. +44 (0) 1928 725 300

2022
ANNUALREPORT

6

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTSales

EUR million

2022
ANNUALREPORT

955.4

1,010.8

988.4

1,084.2

1,345.6

2018

2019

2020

2021

2022
7

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Operating income
EBITDA in EUR million and as percentage of sales

2022
ANNUALREPORT

239.4

274.6

279.8

25.1%

27.2%

28.3%

2018

2019

2020

267.7

24.7%

2021

270.4

20.1%

2022
8

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Financial position

Debt in EUR million and times EBITDA

411

1.7x

Dec-2018
2022
ANNUALREPORT335

1.2x

Dec-2019

233

0.8x

Dec-2020

97

167

0.4x

0.6x

Dec-2021

Dec-2022
9

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Cash dividends and AGM attendance bonuses+10%*

EUR million

2023 vs 2022

Cash Remuneration 2023

38.8

Expected 2023 dividend payments, with charge to full year 2022 results
Proposal for approval by the annual general meeting (AGM)

Interim dividend (February 2023)

EUR 0.8852 per shareComplementary dividend (July 2023)

EUR 0.3369 per share

AGM attendance bonus

EUR 0.0400 per share

EUR 1.2621 per share2023 total remuneration

2019
2022
ANNUALREPORT

2020

2021

2022

2023e

*Considering the effect of the bonus share issue completed in December 2022.

10

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Earnings per share

SUSTAINABILITY REPORT+6.9%*

EUR/share

2022 vs 2021

4.97

2018
2022
ANNUALREPORT

2019

2020

2021

2022

*Considering the effect of the bonus share issue completed in December 2022.

11

VIDRALA, AT A GLANCEMANAGEMENT REPORT

Share price performance
IBEX 35SUSTAINABILITY REPORTKey figures

Comparative performance in percentage terms, base 2013
VIDRALAFINANCIAL STATEMENTS

2021

2022

Sales (EUR million)

1,084.2

1,345.6

EBITDA (EUR million)

267.7

270.4

EBITDA margin (as percentage of sales)

24.7%

20.1%

EBIT (EUR million)

178.6

178.6

Net profit (EUR million)

145.2

153.7

Free cash flow (EUR million)

172.0

-5.1

Debt (EUR million)

96.0

167.2

Debt / EBITDA (multiple)

0.4x

0.6x

Debt / shareholders’ equity (multiple)

0.1x

0.2x

EBITDA / net financial expenses (multiple)

79.01x147.88xTotal assets (EUR million)

1,703.2

1,953.5

966.9

1,033.6

STOXX600

700

600

500

400

300

200

100

0
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Full Year 2022
Price at the end of the period (EUR)

80.40

Market capitalisation (EUR million)

2,470

Cash remuneration (EUR per share)

1.20392022
ANNUALREPORTInterim (Feb-2022)

0.8430

AGM attendace bonus (May-2021)

0.3209Complementary (Jul-2021)

0.0400Shareholders’ equity (EUR million)

12

Management
ReportVIDRALA, AT A GLANCEMANAGEMENT REPORT

Accumulated figures

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Sales in the year 2022 amounted to EUR 1,345.6 million,
showing an organic growth of 23.9%.

Full Year
2022

Full Year
2021

ReportedchangeChange on
constant

Sales (EUR million)

1,345.6

1,084.2+24.1%+23.9%EBITDA (EUR million)

270.4

267.7

+1.0%

+1.1%

Earnings per share (EUR)

4.97

4.65

+6.9%

Debt / EBITDA (multiple)

0.6x

0.4x

+0.2x

Operating profit, EBITDA, amounted to EUR 270.4 million
representing an operating margin of 20.1%.
Earnings per share increased 6.9% over the same period lastyear, to EUR 4.97 per share.
Net debt as of December 31, 2022 stood at 167.2 million,
equivalent to 0.6 times last twelve months EBITDA.

Important: In order to improve comparability, earnings per share has been adjusted for the effect of the bonus shareissue carried out in December 2022. For the purpose of calculating the leverage ratio, debt and EBITDA figures exclude
the IFRS 16 Leases impact.

2022
ANNUALREPORT

14

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Introduction
Vidrala is a consumer packaging company. We make glass
containers for food and beverage products and offer a wide rangeof packaging services that include logistic solutions and beverages filling
activities.
Our industrial knowledge, growing geographical presence, glass manufacturing expertise,best-in-class level of service and understanding of customers’ processes, make us a business
partner for many of the main food and beverages brands. Our products and our services help maintainour customers’ reputation and play a role in their strategies, helping to develop the end consumers’ brandexperiences.
Today, we produce more than 8 billion bottles and jars per year, which are sold to over 1,600 customers. Our aim is tomake glass containers, the ultimate fully recyclable material, and to serve packaging services as efficiently, profitably,and sustainably as possible, meeting the expectations of our customers whilst ensuring the safety and wellbeing of ourpeople.

2022
ANNUALREPORT

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Global consumer trends are changing
It not only matters what we eat and drink but where we do it, how the experience is, as well as the impact
it has on our health, social interactions and the environment. This process gives importance to thecontainer, from which we now expect contributions above traditional expectations as a simple
container. In this progress towards the modern consumer world, the glass container offers
decisive advantages that will lead it to play an essential role.
Our job is to meet the needs of our customers making our glass containers andsupplying our packaging services as efficiently, profitably and sustainably
as possible, while ensuring the safety and wellbeing of our people.

2022
ANNUALREPORT

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Earnings performanceSales
Net sales registered by Vidrala during the full year 2022 amounted to EUR 1,345.6
million, representing an increase of 24.1% over the previous year. On a constantcurrency basis, sales grew organically 23.9%.

SALES
YEAR OVER YEAR CHANGE
EUR million

1,084.2

FY 20212022
ANNUALREPORT

1,345.6+23.9%+0.2%

Organic

FX

FY 2022

17

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Operating results
Operating profit –EBITDA– obtained over 2022 reached EUR 270.4 million. This represents an increase of 1.0% over the figure reported last year reflecting an organic growth, on aconstant currency basis, of 1.1%.
EBITDA margins reached 20.1% over sales. This represents a contraction of approximately 460 basis points over the previous year.

EBITDAYEAR OVER YEAR CHANGE

EBITDA MARGINSYEAR OVER YEAR CHANGE

EUR million

As percentage of sales

267, 7

270,4

+1,1%

24.7%

20.1%

-0,1%

-460 pbs

FY 20212022
ANNUALREPORT

Organic

FX

FY 2022

FY 2021

FY 202218

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Results and financial position
Net profit for the full year 2022 amounted to EUR 153.7 million. As a result, earnings per share during the period reached EUR 4.97 per share. This represents an increase of 6.9%
over the previous period.
Net debt at December 31, 2022 stood at EUR 167.2 million. This is equivalent to a leverage ratio of 0.6 times last twelve months EBITDA.

EARNINGS PER SHARESINCE 2018

DEBT
SIX-MONTHLY EVOLUTION SINCE 2020

EUR per share

Debt in EUR million and times EBITDA
4.65

4.97

233

173

0.8x

0.6x

97

215

0.9x

167

0.6x

0.4x

2018

2019

2020

2021

2022

dec-20jun-21

dec-21

jun-22dec-22

Debt figure and leverage ratio do not include the effect of IFRS 16 Leases, which entails an increase of EUR 2.4 million in
debt and EUR 0.6 million in consolidated EBITDA (EUR 1.1 and 0.3 million, respectively, in 2021).

2022
ANNUALREPORT

19

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTKey figures
2021

2022

Sales (EUR million)

1,084.2

1,345.6

EBITDA (EUR million)

267.7

270.4

EBITDA margin (percentage over sales)

24.7%

20.1%

EBIT (EUR million)

178.6

184.2

Net profit (EUR million)

145.2

153.7

Free cash flow (EUR million)

172.0

-5.1

Debt (at the end of the reporting period, EUR million)

97.1

167.2

Debt / EBITDA (multiple)

0.4x

0.6x

Debt / shareholder’s equity (multiple)

0.1x

0.2x

EBITDA / net financial expenses (multiple)

79.01x147.88xTotal assets (EUR million)

1,703.2

1,953.5

966.9

1,033.6

Shareholder’s equity (EUR million)

2022
ANNUALREPORT

20

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Conclusions and outlook
Global demand for glass packaging remains solid, particularly in Europe and Latin
America, grounded on the strong underlying fundamentals for consumption of foodand beverages and the continuous support from packagers, brand owners andconsumers to glass as the ultimate sustainable packaging material.
Under this market context, our ambitious capex program initiated in 2019 is progressing
well, including the specific investments directed to better serve our customers, growthe business, offer differential services, selectively enhance our manufacturing
facilities and improve the sustainability of our operations. In return, our industrial
footprint is today stronger and the way we serve our customers evolves at comparable
good levels even though inventories are tight across the industry.
The year 2022 was affected by unprecedented cost inflationary pressures derived
from distorted European energy markets, as a consequence of the conflict between
Russia and Ukraine. Nevertheless, our initially deteriorated operational margins
gradually recovered as a result of internal energy cost mitigation actions, a sustainedsolid manufacturing performance, the first effects of our ambitious investment plan
and a progressive adaptation of our sales prices. Recent improvements in operating
margins are expected to continue during the start of 2023.
After all, the structural fundamentals of the business stay strong and our strategic
guidelines remain firmly committed to our long-term priorities: customer,
competitiveness and capital. We will invest to diversify and grow the business withour customers in mind and the aim to supply our services and make our products inthe most competitive and sustainable way. And we will do it securing a strict capitaldiscipline and an attractive remuneration to our shareholders.

2022
ANNUALREPORTAs evidence of the above, Vidrala has recently completed two significant corporatetransactions that will positively impact results from 2023.
Since January 31, 2023 our subsidiary in the UK Encirc Ltd. owns the beverages
filling facilities and the logistic infrastructure in Bristol, known as ‘The Park’ thatwere acquired to the renowned global wine producer Accolade Wines. The businesspurchased further improves the range of services we provide in the UK market,
securing glass volumes, helping our existing customers to grow, improving logistics,
increasing flexibility, minimising carbon footprint and reinforcing Encirc’s unparalleledfundamentals as the only company to offer a full 360 approach to the beverage supply
chain.
Moreover, in early February 2023, Vidrala announced the acquisition of a minority
stake of 29.36% in the Brazilian company Vidroporto, S.A., a renowned competitive
Brazilian manufacturer of glass containers that operates two high quality sites from
where it serves some of the main brands in Brazil in segments like beer, spirits orsoft drinks. This first step remarkably represents for Vidrala a very deliberate strategic
development, diversifying the business towards the growing Brazilian market, creatinga driver for future growth in regions that will offer interesting opportunities with an aimof reinforcing long-term partnerships with some of the main global beer customers.

21

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Shareholder remuneration
The shareholder remuneration policy implemented by Vidrala is based on the gradual
growth in cash dividends as the main way of distributing benefits. The shareholder
remuneration policy implemented by Vidrala is based on the gradual growth in cash
dividends as the main way of distributing benefits. Annual payments are typicallyincreased by attendance bonuses to the shareholders’ annual general meeting. In
addition, Vidrala tries to define complementary tools for shareholder remunerationthat are considered efficient and consistent with prevailing business conditions.

SHAREHOLDER REMUNERATIONCASH DIVIDENDS AND AGM ATTENDANCE BONUSESEUR million, since 2019

38.8

Consistent with that policy, cash dividends distributed during the year 2022 amounted
to EUR 1.1639 per share, and EUR 4.00 cents per share were offered as attendancebonus to the general meeting, accumulating an annual cash distribution of EUR 1.2039
per share.
Likewise, during December 2022, Vidrala executed a free share capital increase in a
proportion of one new share for every twenty existing shares to be freely allocatedbetween all shareholders. All outstanding company shares, without distinction, were
fully granted for this 5% bonus share issue.
Regarding the dividend payments for 2023, Vidrala has proposed a results distributionthat represents–considering the effect of the new shares assigned free of charge
after the bonus share issue completed in December 2022– an increase in the annual
dividend of 10%. The first interim payment was paid on February 15, 2023 for EUR
88.52 cents per share. A second complementary payment is proposed to be paid on
July 14, 2023 for an amount EUR 33.69 cents per share. Additionally, EUR 4.00 cents
per share will be offered as attendance bonus to the general meeting. Overall, cash
remuneration during 2023 would accumulate EUR 1.2621 per share.

2022
ANNUALREPORT

2019

2020

2021

2022

2023

As an additional extraordinary measure, once the previous share buy-back program
was completed, the Board of Directors -dated April 27, 2022- approved a new one,to acquire up to 300,000 shares for a maximum amount of EUR 30 million, whichconcluded in August 2022. Within the framework of the two programs carried out
during 2022, a total of EUR 31.8 million has been allocated to acquire own shares,
which have already been amortised, increasing the earnings per share corresponding
to each shareholder.

22

VIDRALA, AT A GLANCEMANAGEMENT REPORTBusiness risks
Risk management in the Vidrala Group involves procedures supervised by the
directors, coordinated by management and implemented in each operating area ofthe organisation.
The main external risk factors affecting our business results in the short-term
future, under the current overall business context, are: the continuation of
the solid sales context, global economic trends and their potential impact
on end-consumer demand for our products; the management of needed
inventory levels to serve our customers and subsequent adaptationof production capacities at our facilities; the abnormal inflation in
the prices of energy, raw materials and other operating costs
necessary to produce and sale glass containers and our ability
to transfer these cost increases into our sales prices, throughcontractual pass through formulas or direct renegotiations;the investment intensity in our industrial perimeter to growor diversify the business and reduce operating costs.

2022
ANNUALREPORT

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Operational risk
Vidrala, through eight production centres, carries out a continuous
production-intensive industrial manufacturing activity that is
subject to inherent risks linked to routine operations.
In this respect, during the year 2022, work continued on the review,
evaluation and definition of business risks defined as operationaland documented in a risk map. The aim was to engage in a dynamic
process to identify potential risks, gain a perspective on their impact
and probability of occurrence and, principally, to link each area of
operations and each business process to adequate control andmonitoring systems in order to minimise their potential adverse
effects.

23

VIDRALA, AT A GLANCEMANAGEMENT REPORT

I. Environmental risks
The Vidrala Group declares itself firmly committed to protecting theenvironment. In order to minimise the impact on the environment, Vidrala
implements specific action plans in relation to emissions in the atmosphere,
dumping, waste, the consumption of raw materials, energy, water and noise.
Glass manufacturing is an energy-intensive process as melting furnaces
are in operation 24 hours a day, 365 days a year. As a consequence of
the industrial process, one of the primary management objectives is to
reduce contaminating emissions. In order to do this, specific investments
are made to upgrade factory facilities and adapt them to the mostefficient technological systems for reducing environmental impacts.
Additionally, operating priorities are focused on the growing use ofrecycled products as the main raw material for manufacturing glass,which not only avoids the consumption of natural raw materials but
also contributes to reducing energy consumption and emissions
volumes.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTOne of the Group’s strategic guidelines is theimplementation of environmental management systems. Inline with this commitment, all Group’s production facilities
have ISO 14001:2015 certification, demonstrating that
Vidrala operates under the guidelines of a global, verified
and recognised environmental management system.
Furthermore, in line with its undertaking to continuous
improvement, we have started implementation andverification processes for new environmental standards
such as ISO 14064:2018 in 5 of our manufacturing sites,
related to the voluntary declaration of CO2 emissions,or ISO 50001:2018, on energy management systems,
already certified in 3 of our factories and another 2 ofthem in implementation phase.

The Vidrala Groupdeclares itself firmly
committed to protecting
the environment.

2022
ANNUALREPORT

24

VIDRALA, AT A GLANCEMANAGEMENT REPORTIn addition, Vidrala maintains an investment commitment specifically designed
to minimise the potential pollutant effect of its facilities. Of special importance inrecent years, this concrete effort has materialised in the conclusion of an extensive
investment project developed for the installation, in all the production centres, of
special systems of purification of atmospheric emissions, denominated electrostatic
precipitators or electrofilters. These installations are aimed at reducing emissionsof pollutant particles and are recognised as the best technology available for thispurpose by the European legislation. The installed electrofilters act to retain theparticles generated in the melting process by attracting them through electric fields,
reducing the usual emissions of glass melting furnaces by more than 90%. The
electrofilters installed in Vidrala have been accompanied by systems for purifying
SOx emissions, desulfurisers, which have considerably reduced the emission ofthis pollutant.
The impacts of climate change are already visible and will worsen without
proper action. Reducing our carbon footprint and minimising our climate
impact is vital for us. To do so, we have been investing in more energy
efficient furnaces, as well as switching to renewable sources ofenergy to reduce reliance on fossil fuels. Additionally, our plans
are formally aligned with the goal of limiting global warming tolevels below 1.5°C, after being validated by the Science-based
Target Initiative (SBTi).

2022
ANNUALREPORT

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Additionally, the Vidrala Group obtained an ‘A-’ rating for
Climate Change and ‘B’ for Water Management in the
Carbon Disclosure Project questionnaires. The Carbon
Disclosure Project (CDP) qualification allows visualising theenvironmental performance, management and progress incorporate sustainability matters. The report published by
the non-profit organisation reaffirms Vidrala’s environmental
commitment and its leadership position in sustainability.
Progress in the Group’s environmental efficiency iscertified annually and documented in a sustainability
report / statement of non-financial information, part of the
management report of the full year consolidated financial
statements.

25

VIDRALA, AT A GLANCEMANAGEMENT REPORTII. Occupational health and safety
The activity developed by the Vidrala Group is grounded on the daily work of
the more than 3,600 people employed, most of which operate in a context
of industrial or manufacturing work.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

These plans are developed and disseminated among all theagents involved in the organisation and allow the business
to objectively document the trend in occupational safety
indicators and, consequently, the actual effectiveness of
the implemented control processes, evidencing whether
additional corrective measures are necessary.

In this sense, the Vidrala Group remains determined to establish themost effective measures of prevention and protection against
occupational accidents. This commitment is evidenced by
the progressive implementation of occupational health andsafety systems, based on the ISO 45001:2018 standard,
which are certified by independent entities accrediting theexistence of an internationally recognised management
framework.
With the aim of preventing labour-related accidents
and, more relevant, with the guideline to improve healthand well-being at work, Vidrala implements specificand systematic ongoing staff training and awarenessplans. The sustainability report, included in the Group’s
full year consolidated financial statements, details theevolution of the indicators linked to the managementof occupational risk prevention, having registered a2022 accident rate 25% below that of 2021, with a totalof 88 accidents. Part of this decrease is due to theinvestment of 15,271 training hours in this area.

2022
ANNUALREPORT

Vidrala Group remains
determined to establish
the most effective
measures of prevention
and protection against
occupational accidents.

26

VIDRALA, AT A GLANCEMANAGEMENT REPORTIII. Supply chain risk
Production-intensive, continuous-service industries
such as Vidrala’s can be vulnerable to risks of distortionin the supply chain.
With regard to supply risk affecting key assets or
products for the production process, management
initiatives include the continual and specialised searchfor supply sources and strengthening ties with suppliers,
diversifying and forging long-term relationships,
establishing ongoing audit and standardisation
processes and developing supply alternatives in all
relevant areas. Besides, to ensure stability in volume,
quality and price of certain key raw materials, Vidrala
plans to move forward with the verticalisation of its
activity, deploying a specific strategy for each of theregions in which it operates, adapting to particular risks
and casuistry.

2022
ANNUALREPORT

FINANCIAL STATEMENTS

Continual search for supply
sources, strengthening
ties with suppliersand developing supply
alternatives in all
relevant areas.

SUSTAINABILITY REPORTSteps taken to address customer service andproduct quality risks include the development of a
specific departmental area, separate from the restof the organisational areas dedicated exclusively toquality. Specific investments are being made acrossall the Group’s facilities to guarantee quality targets
and optimise product quality control in production
plants through implementation of the latest available
technological advances.
Concerning inventory risk, the Group systematicallycarries out specific and periodic control measures toensure the quality of finished products in the warehouse,
to optimise ageing and rotation so that stocks, bothin volume and value, are balanced to sales forecasts.
These controls have resulted in the implementationof automated stock monitoring processes and thesubsequent application of specific physical andvaluation measures.

27

VIDRALA, AT A GLANCEMANAGEMENT REPORT

IV. Risks of inflation in the cost ofenergy and raw materials
Under the abnormal inflationary context in industrial production costs,
current inflation for a typical structure of glass container production
costs -at the reporting date- is estimated at >40% year on year.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Due to this risk management policy, as of December 21, 2022, the Vidrala Group
had contracted protection or hedging instruments against increases in energy
commodity prices for a nominal amount equivalent to EUR 39 million. Additionally,some energy supplies have been directly contracted at a fixed price. As a result of
these measures, the Group estimates that it has approximately 55% and 13% of
the consumption hedged for 2023 and 2024, respectively.

In particular, energy consumption, principally natural gas and electricity,represents a significant source of costs inherent in most productionintensive industries. Supplies of other raw materials are an equally
relevant cost for the Group. Volatility in the variables affecting theirprices, represented by the natural variability of the global commodity
markets, affects the cost of the production process and can have agreater or lesser impact on the business profitability.
Risk management is based on establishing processes to mitigate
potential unforeseen effects on operating margins that would occur
in the event of inflationary market trends.
These measures consist of the implementation of adapted pricesetting formulas, the continuous monitoring of market variables
through specifically dedicated departments and risk control throughprice hedging strategies, including the contracting of tariffs at fixedprices and the use of derivative hedging instruments. In this extremely
inflationary and volatile context, Vidrala has developed its supply
capacity with alternative fuels to natural gas, as an additional measureof risk mitigation. This element also increases the security of supply in ahighly uncertain context in natural gas markets.

2022
ANNUALREPORT

Risk management is basedon establishing processes
to mitigate potential
unforeseen effects on
operating margins.

28

VIDRALA, AT A GLANCEMANAGEMENT REPORT

V. Cybersecurity risk
Cybersecurity risk refers to potential threats and vulnerabilities that may affectcontrol systems or information and communication systems, as well as any otherasset supported by information technology systems. Currently, the risk of suffering acybersecurity attack is real and growing, although no relevant incident in this area hasmaterialised in the Vidrala Group in 2022. The constant advancement of technology
has great benefits, while also increases exposure to malicious attacks, sabotage, as
well as other intentional acts that can lead to interruptions at the operational level,
theft of sensitive information, intellectual and industrial property, etc. with significant
impacts on the Group’s activity.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTIn order to manage this risk, the Vidrala Group has a Cybersecurity Master Plan,
launched in 2021, that has involved specific investments and spending after an intense
analysis resulting from the advice of external consultants, self-assessment of risks
and the development of policies and procedures for continuous improvement that
help to continue strengthening our control environment. Some, but not all, of these
improvement tools include the following:• Cybersecurity manager has sufficient autonomy andindependence to carry out his/her functions.
• Various cybersecurity management policies
procedures are in place to ensure compliance.

and• Cyber-attack drills and third-party audits are carried out inorder to continuously improve our response and business
continuity protocols.
• Constant education and training of all workers is promoted
as training for the first line of defence.
• There is a Security Operations Center that continuously
detects, analyses and reports alerts and possible threats.

2022
ANNUALREPORT

29

VIDRALA, AT A GLANCEMANAGEMENT REPORTFiscal risk
The Vidrala Group operates in a multinational environment, throughcompanies with activities in Spain, Portugal, the United Kingdom, Ireland,
Italy and France, subject to different tax regulations.
The purpose of Vidrala’s fiscal policy is to ensure compliance withapplicable regulations in all the tax territories in which the Group operates.
That respect for tax regulations is developed in coherence with the
purpose of the business, that is to create value in a sustained manner forthe shareholder, avoiding tax risks and seeking fiscal efficiencies in theexecution of business decisions.
Under tax risks we include those potentially derived from the application of
aforementioned regulations, the interpretation thereof within the frameworkof the Group’s corporate structure or the adaptation to tax modifications
that may occur.
For its monitoring, Vidrala has a comprehensive risk management systemthat includes the relevant fiscal risks and the mechanisms for its control.
Likewise, the Board of Directors assumes among its powers the supervisionof the fiscal strategy.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTIn order to incorporate the indicated control principles into corporate tax planning,
Vidrala assumes among its practices:

Prevention, adopting decisions on tax matters based on a reasonable andadvised interpretation of the regulations, avoiding possible conflicts ofinterpretation through the use of instruments established by the relevant
authorities such as prior consultations or tax agreements, evaluatingin advance the investments or operations that present a special fiscal
particularity and, above all, avoiding the use of opaque or artificial
structures, as well as operations with companies resident in tax havens
or any others that have the purpose of avoiding tax burdens.

Collaboration with tax administrations in the search for solutions
regarding tax practices in the countries in which the Vidrala group ispresent, providing information and tax documentation when requestedby the tax authorities, in the shortest possible time and a fully manner,strengthening agreements and, finally, encouraging a continuous
dialogue with tax administrations in order to reduce fiscal risks andprevent behaviours likely to generate them.

Information to the Board of Directors, through the Audit and Compliance
Committee, providing information on the fiscal policies and criteria applied
and reporting on tax consequences when they are a relevant factor.

2022
ANNUALREPORT30

VIDRALA, AT A GLANCEMANAGEMENT REPORT

Financial risk
Global uncertainty in the financial markets and the growing scale of Vidrala’s operations
expose the Group to potentially destabilising elements of an external nature. These
financial risks require the implementation of specific control mechanisms.
Managing the Group’s financial risks focuses on the identification, analysis andmonitoring of natural market fluctuations in items that could affect the business’s
profits. This involves defining systematic measurement, control and monitoringprocesses to minimise any potential adverse effects and structurally reduce thevolatility of results. To hedge certain risks, the Group employs, or is in a position toemploy, derivative financial instruments which are described in the annual report.
The most relevant financial risks identified are as follows:

I. Currency risk

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

the sensitivity to the currency at a consolidated level, as a result of the above, 33.54%
of sales and 31.24% of operating income, EBITDA, obtained during the year 2022 isgenerated in Pounds Sterling, which may be affected by fluctuations in this currency
against the Euro. There is also a risk of translating cash generated by the acquired
business in Pounds Sterling to Euros, to repay a debt that was acquired in Euros. The
depreciation of the Pound Sterling against the Euro could reduce its equivalent value
in Euros, thus reducing cash.
Quantifying currency risk based on 2022 data, if the Pound Sterling depreciated against
the Euro by an average of 5% over a year, without considering any hedging or insurance
instruments, and the remaining variables remained constant, consolidated profit of
the Group would be affected by approximately 1.3%, and annual cash flow would be
reduced by approximately 3%.
To control currency risk, Vidrala uses derivative instruments, mainly forwards or
options. Thus, as of December 31, 2022, Vidrala has contracted sales structures inpounds sterling with maturities during the year 2023, for an accumulated equivalentvalue of EUR 35 million, equivalent to approximately 40% protection on the net cash
flow expected to be generated during the year 2023.

The Vidrala Group operates at international level and is therefore exposed to currency
risk on foreign currency operations.
Currency risk affecting the Group’s present structure arise, mainly, from the risks
inherent in the global expansion of the Group after the incorporation of Encirc Ltd.
in 2015, whose business is largely conducted in Pounds Sterling. In order to quantify

2022
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31

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

II. Interest rate risk
Borrowings contracted at variable interest rates expose the Group to the risk of interest rate fluctuations, which
in turn affects forecast cash flows.
The Group’s financing policy concentrates the main part of its borrowings on variable rate instruments. The
Group manages interest rate risks in cash flows mainly through interest rate swaps. These instruments convert
variable-rate borrowings to fixed-rate, thus avoiding the risk of fluctuations in variable interest rates. Generally,
the Group obtains long-term variable rate borrowings and swaps them for fixed interest rates. This normally give
better rates than had the financing been obtained directly with fixed interest rates. Through interest rate swaps
the Group undertakes to periodically exchange the difference between fixed and variable interest with otherfinancial entities. The difference is calculated based on the contracted notional amount. Under interest rate
caps the Group has the right, and the counterparty the obligation, to settle the difference between the variableinterest rate and the established rate if this is positive. The effectiveness of these instruments as regards
fixing the interest rate of contracted financing is assessed and documented using accepted methodologies
under applicable accounting legislation.
As a result of this risk control policy, as of December 31, 2022, Vidrala has contracted interest rate
hedging instruments in the form of interest rate swaps for a notional of EUR 205 million, with progressive
maturities up to 2026.

2022
ANNUALREPORT32

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTIII. Credit risk
The Vidrala Group has a well-diversified customer base made up of a combination of large owners of widely recognised
global consumer brands, local or regional packers and packaging distribution companies. No customer accounts formore than 10% of revenue. Top ten clients represent approximately 32% of revenue. The 50th percentile of sales iscomposed of the main 24 customers.
The Vidrala Group has policies to ensure that sales are only made to customers with adequate credit records andsolvency in order to minimise the risk of default. This control process involves ongoing solvency analysis, setting
specific, assumable risk limits for each customer considering variables such as specific credit metrics, the segment
or geographical area in which they operate and preparing detailed individual ratings typical of evolved credit control
systems, using a proprietary rating system.

CUSTOMERS
Large ownersof widelyrecognised
globalconsumerbrandsFurthermore, control of collection risk is intensified with a second level of control through policies of repeat contractingof credit insurance with external insurance policies to cover the impact of any bad debts. During 2022, the impact ofbad debts has represented 0.03% of the Group’s consolidated sales.

Packaging
distribution
companies

No customer accounts
for more than

10%

Other credit risks: financing, derivative and cash operations are only carried out with financial entities with high credit
ratings.

of revenue

TOP 10clients

50%
of sales2022
ANNUALREPORT

Local orregional
packers32%

of revenue aprox.

Main

24

customers

33

VIDRALA, AT A GLANCEMANAGEMENT REPORT

IV. Liquidity risk
Vidrala’s liquidity risk basically stems from the maturing ofcurrent and non-current debt obligations, transactions with
derivative instruments and payment commitments with othertrade creditors. Group policy is to continually monitor andensure that sufficient resources are available to meet theseobligations, maintain internal control processes through followups of budgets and deviations, and implement any necessary
contingency plans.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Vidrala bases its financial liquidity management strategy on prudence,
flexibility, cost efficiency and the appropriate duration long-term
structure. For this reason, in order to maintain a solid financing
position capable of assuming the repayment of the maturities of thecurrently arranged debt, the impact of any unforeseen or changeof context in the markets, and maintain an adequate structure
to face strategic operations that could require payments agility,
the Group has –as of December 31, 2022– EUR 378 million
in immediately available, undrawn credit, on top of EUR 154
million in cash and cash equivalents.

In order to accomplish these objectives, the Group prudently
manages its liquidity risk by adapting maturities to thefinanced assets, diversifying the sources of financing used
and maintaining the availability of immediate financing.
As of December 31, 2022 the Group maintains EUR 702
million in external financing available resources, of which
EUR 42 million correspond to promissory notes issued
in the Alternative Fixed Income Market (MARF) whosematurities will take place in the short term.

2022
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VIDRALA, AT A GLANCEMANAGEMENT REPORT

V. Debt and solvency
As of December 31, 2022 Vidrala’s consolidated net debt
amounted to EUR 167.2 million. As a result, indicatorsof financial solvency as of December 31, 2022 reflects
a leverage of 0.6 times last twelve months EBITDA,
evidencing the financial capacity and stability of Vidrala’s
equity position.
The core part of the financing structure is concentrated
in a long-term syndicated financing agreement, signed bya selected group of nine financing entities, for an amountin force at the reporting date of EUR 260 million. Its
maturity date is September 13, 2025, being progressively
amortisable from September 13, 2024. Consequently,
during 2023 the financing will be in a grace period with no
obligations to repay the loan principal.

2022
ANNUALREPORT

FINANCIAL STATEMENTSSUSTAINABILITY REPORTThe mentioned loan contract contains certain covenants, mainly in relation to thenet debt to EBITDA ratio. All these covenants had been met as of December 31,
2022:

Leverage ratio (Financial Net Debt /LTM Consolidated EBITDA):

0.62x

LTM Consolidated EBITDA /Net Financial Result:147.88xIn addition to the syndicated structure, Vidrala has complementary financing. In
the long term, in order to provide flexibility, financial strength and to adapt theGroup’s debt maturity structure to its future needs, the Vidrala Group has credit
lines and additional loans for an amount of EUR 326 million, with maturities
between 2023 and 2032. On top of that, for the short-term management offlows and cost efficiency, the Group has a Commercial Paper Program (CPP)registered in MARF for a limit of EUR 200 million which –as of December 31,
2022– is used in EUR 42 million. Finally, the Group has working capital credit
lines for limits of EUR 74 million.

35

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

VI. Other risks: conflict between Russia and Ukraine
In February 2022, Russia began the war in Ukraine. As of the reporting date, this conflict is still in force
and its effects on the financial markets are intensifying.
The direct impact on Vidrala’s business is limited, as the Group does not have assets or maintains any
industrial or commercial activity, does not produce, sell or buy directly in Ukraine or Russia.
However, the indirect impact is evident in the growing difficulties in global supply chains and, specially,in the abnormal increases in energy prices. In particular, the price of natural gas, the main sourceof energy in glass manufacturing, which represented approximately 15% of the Group’s total cost of
production in 2021, generally dictated by organised pan-European markets, is behaving with abnormal volatility
related to the perception of the risks of lower supply from Russia to central Europe. Thus, market gas prices have multipliedby almost 3 times from 2021 levels. Additionally, we observe collateral effects of higher electricity prices and some raw materials, which
together accounted between 35% and 40% of production.
In response to this inflationary situation, Vidrala has implemented exceptional measures to adapt sales prices and temporary hedging by setting energy
prices, which are discussed in detail in its specific section. On the costs side, and on top of the various initiatives taken by national governments to alleviate
the industry’s energy bill, Vidrala has increased the flexibility of its natural gas supply contracts to accommodate, if necessary, supplies of alternative, morecompetitive fuels in a situation of energy crisis. These measures should be efficient in preserving business margins at consistent levels over a normal periodof time. However, in the short term, if extreme volatilities persist, a deterioration in operating margins would be unavoidable until the measures take full effect or markets
stabilise. Regarding the risks of a cut in the gas supply, experts believe that the infrastructure in our regions of activity, Iberia, the United Kingdom and Italy, is particularly protected.
However, there would be physical measures that would allow, in most of the facilities and for a short time, partial alternatives to natural gas supply to maintain production activity.

2022
ANNUALREPORT36

Financial
Statements

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Consolidated Balance Sheet
31 December 2021 and 2022 (EUR thousands)
ASSETS

2021

2022

773,627

829,543

770

2,302

Goodwill

209,890

209,890

Other Intangible assets

48,51073,077

EQUITY AND LIABILITIES

2021

2022

Share capital

30,43831,341Other reserves

8,109

8,399

Retained earnings

973,506

1,050,381

Own shares(9,246)-EquityProperty, plant and equipment
Right-of-use assets

26

33

Other comprehensive income(10,839)(29,298)

Deferred tax assets

41,542

39,832

Interim dividend distributed during the year

(25,066)(27,199)

Derivative financial instruments

6,411

18,045Equity attributed to equity holders of the Parent

966,902

1,033,624

103

103

1,080,879

1,172,825

9,129

5,106

184,003

273,464

Inventories

166,491

254,683

Derivative financial instruments

Trade and other receivables

240,536

318,696

Current tax assets

17,016

Derivative financial instruments

24,010

Other financial assets

Other non-current assets
Non-current assets

Deferred income
Loans and borrowings

480-

Deferred tax liabilities

73,705

81,178

11,317

Provisions

69,12070,794

1,114

Other non-current liabilities

947

799

Non-current liabilities

337,384

431,341

Loans and borrowings

73,61350,089Derivative financial instruments

29,5522,715

Trade and other payables

259,271386,779

Current tax liabilities

6,466

20,856

Provisions

9,971

1,744

Other current liabilities

20,087

26,379Current liabilities

398,960

488,562

Other current assets

13,77440,863

Cash and cash equivalents

160,540

154,029

Current assets

622,367

780,702

Total assets

1,703,246

1,953,527

Total liabilities
Total equity and liabilities

2022
ANNUALREPORT

736,344919,903

1,703,246

1,953,527

38

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Consolidated income statement
31 December 2021 and 2022 (EUR thousands)

Revenues
Services rendered
Other income
Changes in inventories of finished goods and work in progress2021 (*)

2022

1,084,166

1,345,610

533

972

11,78027,317

4,261

72,380

Merchandise. raw materials and consumables used

(472,228)(767,014)

Employee benefits expense(196,396)(214,028)

Amortisation and depreciation(86,284)(85,460)

Impairment of non-current assets(2,840)(724)

Other expenses(164,419)(194,839)

Profit loss from operating activities

178,573

184,214

Finance income

114

2,819

(6,173)(3,435)

Fair value variation in financial instruments

-

4,638

Gain on disposal of financial instruments

-

(488)

Profit before income tax from continuing operations

172,514

187,748

Income tax expense(27,357)(34,062)

Profit for the year from continuing operations

145,157

153,686

Profit for the year

145,157

153,686

Profit for the year attributable to equity holders of the Parent

145,157

153,686- Basic

4.88

4.97

- Diluted

4.88

4.97

Finance costs

Click here for full
financial statements
and explanatory
notes

Earnings per share (expressed in Euros)(*) Restated. See Note 2
2022
ANNUALREPORT

39

Sustainability
ReportVIDRALA, AT A GLANCEMANAGEMENT REPORT

Table of contents

tle

INFINITE
CYCLE• About Us• How Glass is Made

51 Glass Made Goodpr1

• 2022 Sustainability Scorecard

SUSTAINABILITY REPORT

ecycled b
1rot

42 Introduction• Our Approach to Sustainability

FINANCIAL STATEMENTSodu c e d b o t tle

• Prosperity. We have a brighter outlook• Planet. We are making glass cleaner and greener• People. We put everyone first• Place. We are responsible for our surroundings

118 About this report• Regulatory Framework• EU Taxonomy

132 Annexes• Full Data Tables• Global Reporting Initiative (GRI) Index• Spanish Law 11/2018 Index
2022
ANNUALREPORT

41

Sustainability Report

Introduction

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

About us
Vidrala is a consumer packaging company. We make glass containers for food and beverage products and offer a wide range of packaging
services that include logistic solutions and beverage filling activities. Our industrial knowledge, growing geographical presence, glass
manufacturing expertise, level of service and understanding of customers’ processes, make us a business partner for many of the mainfood and beverages brands. Our products and services help maintain our customers’ reputation and values, and play a role in theirstrategies, helping to develop the end consumers’ brand experiences.
We operate in an international environment, managing 8 industrial centres located in Spain (3), Portugal (2), the UK &Ireland (2), and Italy (1). Manufacturing activity is based on a continuous, uninterrupted industrial process. 24 hours
a day, 365 days a year, and is subject to inherent risks and complexities associated with the intensive nature of
production.
We sell products to a wide range of customers, normally the owners of well-known food and beverage
consumer brands, in their respective spheres. The Group’s sales are mostly in the geographical regionof Western Europe and the United Kingdom. The glass bottles produced by us are intended for awide range of food and beverage products, among which include wine, beer, food preserves,water, spirits, and soft drinks.
Today, we produce more than 8 billion bottles and jars per year, which are sold to over
1,600 customers. Our aim is to make glass containers, the ultimate fully recyclable
material, and to serve packaging services as efficiently, profitably, and sustainably
as possible, whilst ensuring the safety and well-being of our people andmeeting the expectations of our customers.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Since 1965, the Vidrala Group has been working to incorporate the latest
technological developments into the production of packaging so that it canpositively contribute to a more sustainable society. A successful track record
has made us the benchmark company in the sale and manufacture of glass
containers.
There are a number of significant advantages to using glass, compared toalternative materials. The fact that it is made from natural and abundant raw
materials makes it the most sustainable packaging material, unlike those madefrom limited fossil fuel resources. Glass is fully recyclable using the same
manufacturing process that allows it to be handled over and over again without
losing any of its properties and benefits. Glass can adapt to the needs of thecustomer as it has the capacity to adopt any shape.
At Vidrala, we believe glass is the future and we have a mission to drive innovation,
providing sustainable packaging solutions for our customers.

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44

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTHow glass is made
Glass is a material that comes frommixing various natural minerals in
furnaces that reach temperatures of
1,600°C where these elements fuse
together. Once the melted glass iscreated, it can be moulded into whatever
shape is needed, whether it is a jar or abottle.

1. Raw materials.

2. Melting

3. Forming

4. Annealing lehr

5. Quality control

The core ingredients of silica
sand, soda ash, and recycled
glass, are mixed into a precise
batch formulation. Moreingredients can be added tocreate different colours of glass.

The prepared batch travels
along a conveyor belt to thefurnace, which melts the raw
materials at 1,600ºC for 24hours. Now ready for forming,the melted glass is distributed
to a forehearth, where it isconditioned and equalised intoa uniform temperature.

Streams of melted glass enter afeeder and are pushed down a narrowtube by a plunger. As they emerge,mechanical shears cut them into
gobs, before going to blank moulds
in the forming machine to create
partially shaped melted glass called‘parisons’. There are two methods offorming: the ‘Press & Blow’ methodand ‘Blow & Blow’ method.

Loaded into the annealing
lehr, the bottles are heatedagain and then cooled to room
temperature, relieving internal
stress and improving durability.

Moving along to theautomated inspection area,
careful monitoring involves
a comprehensive range ofelectronic, mechanical andmanual checks to ensure bottles
are of the highest quality, andany that don’t pass the test are
returned for recycling.

2022
ANNUALREPORT6. Packaging
and expedition
All the bottles areautomatically packed
into pallets and wrappedhermetically so they can bedelivered to customers inthe best condition.

45

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTOur approach to sustainability
At Vidrala, we know that having a sustainable business model has a direct impact
on our social, environmental and economic standing. This is why, for many years,
sustainability has been at our core. Everything we do, from the way we make our
products, to the transportation methods we choose, to how we act as individuals,
all links back to our four core pillars of being a responsible business: People, Place,
Planet and Prosperity.

PeopleThe people who work at Vidrala are our most important asset. Encouraging theirdevelopment is key to our growth as a sustainable business. We are committed tosupporting the safety, well-being and health of our employees, whilst promoting
equality, diversity and inclusion.

Place

Vidrala sites are spread across Europe. Our surrounding communities support
us every day, with many of our employees calling them home. Making sure we
continually give back to these areas, and work with ethical customers and suppliers
is key to maintaining our positive standing as a job creator and community asset that
locals are proud to live alongside.

PlanetVidrala prides itself on placing sustainability at the heart of our operations from our
products to our transportation, we understand that we have a responsibility to invest
in a greener future. As a business, we are always looking to go the extra mile and find
new ways to have a positive impact on the planet.

Prosperity

Our long-term success as a business is intrinsically linked to sustainability. By
working in line with national and international environmental commitments, weare minimising wastage and maximising opportunities whilst making ourselves anattractive, sustainable business for investors. This means we can keep reinvesting in
our sites, creating a circular business model, fit for a truly circular economy.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT“The reality of a future shaped by the climate crisis is coming quickly into
focus. If businesses are going to make the contribution required of them to keep global
warming below 1.5°C, we must consider how we will operate in future and the real work needed
to get there. In 2022, the culmination of our work at Vidrala was to clearly define our objectives forthe future. It is up to us to create the manufacturing industry we want to be part of, one which hassustainability at the forefront. That is why our strategy extends to supporting everyone we work with
but has our own impact at the centre of it all. Our four key pillars: People, Place, Planet and Prosperity
will be the foundations for us to build on as we work towards our targets.”

Gorka Schmitt
CEO

Fiacre O’Donnell
Sustainability Director
2022
ANNUALREPORT“The validation of our Science-Based Targets (SBTs) earlier this year was the result of a process ofunderstanding, planning, and sharing the adjustments we need to make to futureproof our business. It
represents an acknowledgement of what we have already achieved, and an important step in charting theuncharted territory into which the next steps will undoubtedly take us. We are committed to reducing our
Scope 1 and 2 greenhouse gas (GHG) emissions by 47%, and our Scope 3 emissions by 28% by 2030,
from a 2019 base year. As the gold standard to measure corporate climate action, these SBTs allow us toevaluate our progress against real, robust, and credible benchmarks. But we will not be able to do this alone.
Hitting our target for Scope 3 emissions means engaging with our partners and working together towards
a beverage and food supply chain that makes both environmental and business sense. Our 360 solution
is a great example of how we already do this. By empowering our peers to shift from a system that hauls
individual glass bottles to one that ships liquid in bulk, we can significantly reduce the carbon footprint ofan entire supply chain.”47

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTThe Sustainable Development Goals (SDGs) are fundamental to our 4 P’s strategy and highlight our commitment to support the United Nations
blueprint to achieve a better, fairer and more sustainable future for all. The most relevant SDGs relating to our strategy are highlighted below:

SDG9 Industry, Innovation, and Infrastructure: To meet future challenges, and ensure we have resilient infrastructure for the
future, we have invested to bring innovative manufacturing equipment as well as alternative energy solutions into ourbusiness. Developing sustainable industrial processes and incorporating clean technologies, such as electrostatic
precipitators, will help to ensure our long-term sustainability.
SDG7 Affordable and Clean Energy: Accelerating the use of renewable energy is essential to tackling theclimate crisis, especially in energy intensive industries like glass manufacturing. Therefore, we are committed
to incorporating renewable energy in our industrial processes and improving our energy efficiency as
well. Demonstrating this, we have recently begun investing in solar sites to start generating our own
renewable energy, and are looking to continue this investment over the coming years.
SDG13 Climate Action: The impacts of climate change are already visible and will worsen without
proper action. Reducing our carbon footprint and minimising our climate impact is vital for us. To
do so, we have been investing in more energy efficient furnaces, as well as switching to renewablesources of energy to reduce reliance on fossil fuels. We also have a Near-Term Science-Based
Target (SBT), in line with 1.5ºC approved by the Science-Based Target initiative (SBTi). In December
2022, we submitted our Long-Term SBT, in line with 1.5ºC, for validation by the SBTi.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTSDG5 Gender Equality: Maximising the opportunities for gender equality within the
manufacturing sector is an important goal. We are committed to supporting therecruitment, training, development, and careers of both women and men in
manufacturing roles and we believe by doing so makes us a stronger, more
resilient organisation.
SDG12 Responsible Consumption and Production: The efficient use
of natural resources and investing in new technologies to improve
our production methods is key. We work with organisations toincrease the quantity and quality of recycled glass. This reduces
our demand for new natural resources, minimises waste andhelps contribute towards a more circular economy.
SDG8 Decent Work and Economic Growth: We recognise
the importance of sustainable economic development
and creating high quality working conditions for our staff.
We are committed to providing employees with full-timesatisfying jobs, with a suite of employee benefits andtake care to promote a healthy work-life balance.
SDG15 Life on Land: Protecting our planet is oneof our core business values. We are dedicated toconserving resources, where possible, as well as
helping to develop and promote biodiversity.
SDG4 Quality Education: Providing quality education
for all is fundamental to creating a peaceful andprosperous world. Education gives people theknowledge and skills they need to stay healthy, get jobs
and foster tolerance.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

2022 Key indicators
Percentage variations over FY 2021

8

19

49%

+0.4%

Manufacturing
sites

recycled glass overraw materials

Furnaces

consumption of raw
materials

More thanMore thanMore thanMore thanbillion containers
producedcustomers

employees

training hours

8.0

+0.9%
in water usage

1,600

+2.2%
in CO2 emissions

3,600

-1.7%

in energy consumption

130,000-1.9%
customer complaints*Annual variation over 2021, in unitary terms (i.e., over ton of melted glass). This is a reference unit of measure in the glass industry. Any information based on ton of melted glass -tmg- enables both the assessment of the company’s performanceand the comparison among different companies in the sector.

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Sustainability Report

Glass Made GoodVIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTProsperity
We have a brighter outlook“This first ‘P’ may seem the least specific, but it is the enabler of the otherthree strategic pillars. Without a prosperous, economically viable future, thesustainability of our business would not be secured in the long-term. That is why
this pillar underpins our 4P strategy.” Raúl Gómez, CFO.
Our long-term success is intrinsically linked to sustainability and it is fundamental
that sustainability continues to underpin our business. Sustainability is an essential
part of our business strategy and our governance encompasses robust oversight andrisk management. It informs how we operate and the decisions we make. Ensuring aprosperous future is vital for the success of our Planet, People and Place strategies.
The key portion of our Prosperity pillar is our commitment to market responsibility,
ensuring we demonstrate best practice climate risk management across our operations
and continue to engage with our stakeholders.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Marketplace Integrity
We see it as our responsibility to lead our industry and help create a better world for future generations.
In order to drive positive change we ensure our business operations follow five key principles:• Ensuring our operations, the products and services we provide to the market have a positive social,economic and environmental impact - leading us to make an overall positive impact on the world.
• Understanding the impact of our products through their full life cycle. At Vidrala, we recognise theimportance of continuously innovating and investing in our products and services to ensure we maximise
their positive impact within society.
• Encouraging behaviour change and education among our suppliers and customers to help ensure our
products are being used as responsibly as possible.
• Using the company’s position to leave a positive legacy for future generations.
• Providing transparency within our supply chain, and holding our suppliers accountable to be
responsible - ensuring human rights are being protected across the whole supply chain.
These core elements aim to significantly reduce the impact of our operations on the world, and will
help ensure Vidrala stays resilient whilst transitioning to a more sustainable business.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTA strategic acquisition that will further expand
the business, broaden differentiation and securesales, profitability and future
In November 2022, the Vidrala Group made a deal with Accolade Wines to acquire‘The Park’, a bottling and warehousing facility in Bristol, UK. This new deal hopes
to be a step towards a new sustainable future in the UK beverage industry. Thisacquisition is expected to close early 2023.
We will acquire ‘The Park’ facility, including all associated equipment. This
includes the use of all rail distribution infrastructure between sites, supply
services and retail sites. This ensures we can continue to provide a ultra-efficient
service, creating a sustainable supply chain across the UK beverage market. The
acquisition includes the transferral of 400 employees from Accolade to Encirc,whom we are very excited to welcome into the team.
Accolade Wines is highly committed to providing excellence across its global
supply chain in terms of innovation, quality, efficiency and sustainability. ‘The
Park’ is a technologically and sustainably advanced manufacturing facility thathas won awards for its innovative and modern facilities. The manufacturing
facility is currently zero waste and carbon neutral. In 2019, wind turbines were
installed at site to help contribute to the site being a 100% renewable electricity
facility.
Together, Vidrala Group and Accolade Wines are showing their ambition to beorganisations that put the planet and sustainability at the centre of their vision
for the future.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTSupply chain management

2. The secondary audits are undertaken by a multidisciplinary team, following aprocess to assess if they meet out minimum supply chain standards.

To demonstrate market responsibility, we have developed a supplier code of conduct
to outline what is required to ensure sustainable and ethical procurement fromour suppliers and subcontractors. The code of conduct is implemented across thebusiness, and defines the ethical standards that we expect our suppliers to adhere to.
Equivalent principles of fairness and honesty must also be replicated by the suppliers
within their own supply chain.

3. Following the supplier’s selection, we ensure they are evaluated on a quarterly basis.

Our supplier quality assurance and management system consists of five mainprocesses:

4. Any incidences of non-compliance are investigated to assess the severity and thepossible corrective measures required.
5. Our supplier improvement team also conducts mid-year reviews, with the purposeof detecting larger issues before they occur, or to discuss key new development
projects that would have mutual benefits.

1. An initial selection process is undertaken, followed by a desk-based review andevaluation. The results of this initial review, as well as any additional standards /regulation the supplier needs to adhere to, will determine if a secondary audit isrequired.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTSupplier Audits
As we continue to strive to become a more sustainable business, we recognise that our
supply chain is a very important component of that strategy. Due to our strategicallydiverse supply chain and our key local suppliers, the robustness of our supply chain isevident.
To build Environmental, Social and Governance (ESG) reputability in our supply chain
and further embed sustainable procurement practices into our business, we haverecently introduced supplier audits that now include ESG related questions. In 2022
we introduced a number of carbon-related questions, including specific questions
about Scope 3 emissions, into our audit checklist to help understand our supplier’s
decarbonisation journeys. In future, we may require new suppliers to meet certain
criteria before onboarding takes place. This will help ensure that we are partneringwith like-minded suppliers who share and can support our sustainability goals. The
areas these ESG questions explore include quality management, emissions profile,emissions reductions targets and initiatives, purchasing, people, environment, health& safety, and traceability. In addition, the audit questionnaire includes questions aboutsocial responsibility such as human and labour rights, non-discrimination and women’s
rights, minor hiring, etc. In the future, it will be integrated with the Human Right’s policy
and risk matrix.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

33

auditscompleted
During 2022 we executed 33 audits (vs. 19 in 2021 and 12 in 2020) and 100% of theaudits were deemed satisfactory, since no serious deviations were identified in thisregard. In 5 cases they have been a product re-validation, in 8 cases they have beena homologation of new suppliers-products, in 12 cases they have been a continuous
improvement and supplier development and in 8 cases they have been suppliermonitoring. This audits are performed following Vidrala’s Supplier Quality Assurance
and Development methodology, which is a tool for auditing the control performanceand helps to obtain a verdict and judgement over it. The procedure to select the
suppliers to be audited is based on last year audits follow up, the suppliers consideredas critics and those suppliers about which complaints or claims have been received.

33

suppliers screened for
ESG criteria
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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Materiality and stakeholder engagement
Stakeholder engagement involves working closely with our key stakeholders. Listening and learning from both internal and external stakeholders
is key to success. In our engagement, we are guided by four key principles:• Our business decisions are made by consulting and collaborating with our stakeholders.
• We partner with key stakeholders to create innovative solutions, building trust and generating success for all parties.
• We listen to and address the issues of our stakeholders, including underrepresented groups.
• We recognise the importance of sharing both successes and challenges to have an honest dialogue with stakeholders.
As part of our 4 P’s strategy, we committed to acting and reporting on all ESG issues that stakeholders tell us aremost important. Following our last materiality assessment in 2020, we conducted our first Double Materiality
Assessment in 2022. Using this approach allows us to assess both impact materiality as well as financial
materiality.
1. Impact Materiality: Vidrala’s potential impact on the external environment and society over short,medium or long term. The assessment reviews our operations, products and services alongside ourvalue chain in order to assess all potential impacts.
2. Financial Materiality: The potential impact of an ESG topic on Vidrala. This could affectVidrala’s future cash flows and enterprise value over the short, medium or long term.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

DOUBLE MATERIALITY AND STAKEHOLDER ENGAGEMENTSUSTAINABILITY REPORT

1. Energy consumption andenergy intensity within theorganization
2. Raw and recycled input
materials and waste generated

Economic / Governance3. Compliance withenvironmental laws andregulations

SocialEnvironmental

Impact on Environmental and Society

4. Providing a safe and healthy
workplace
5. Compliance with laws andregulations in social areas e.g.
Health and Safety legislation

1

8

5
10
3
16
14
6
17
11
21
18 19 7 12
26
23
13
24
22
20

25

Impact of Business
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4
9

6. Compliance with tax
regulations

2

7. Anti-Competitive Behaviour

15

8. Labour and Decent Work
9. Data privacy and cybersecurity
10. GHG emissions intensity andreductions, as well as nitrogenoxides (NOx), sulphur oxides(SOx) and other significant air
emissions

14. Financial implications andother risks and opportunities forthe organisation’s activities due
to climate change
15. Attracting and retaining
talent
16. Maintaining a resilient andstrategically diverse supply chain
17. Diversity and equal
opportunity among Board,leadership and workforce of acompany
18. Ensure that Vidrala lives Its
values In ev&ry aspect of Its
business
19. Human Rights, Modern
Slavery & Traffic king
20. Water consumption andeffluents
21. Investment in employee
training and education
22. Political contributions andlobbying
23. Corporate governancestructure

11. The active efforts ofthe company to ensure that
corruption and fraud play no partin its business

24. The indirect economic
impacts on local economies andcommunities from the presenceof the business

12. Whlstleblowlng

25. The impact of businessactivities, products or services
on biodiversity

13. Listening to employee views,
concerns and needs via regular
engagement

26. Financlal assistance received
from government via public
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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Methodology
We mapped ESG topics against Vidrala’s corporate risk register against our external disclosures. This allowed us to develop a comprehensive list of potential ESG impacts on ourbusiness operations, our value chain and wider society. Next, we surveyed both internal and external stakeholders on how they evaluated these potential ESG issues.
We sought input from representatives from the following stakeholder groups:

1. Employees. They make the business project possible. Understanding their concerns and motivations, having them play an active part in the business, andattracting and retaining talent are fundamental principles to ensure the commitment of the team, continuous improvement, and the long-term sustainability of thebusiness.
2. Customers. Customers are at the heart of what we do and how we do it. For this reason, we understand it is key to go beyond our customer’s expectations throughthe delivery of sustainable packaging solutions, accompanied by an excellent level of service.
3. Suppliers. They supply us with the necessary goods and services for the development of our business activity and, therefore, key partners for the organisation. For
this reason, facing conversations with assertiveness and frankness, from a win-win and long-term perspective, are essential ingredients to create strategic alliancesthat result in competitive advantages.
4. Community. All economic growth is dependent on sustainable development. Therefore, we are committed to the circular economy, the generation of quality andstable employment, the promotion of the regional economy through our predilection for local suppliers, as well as our social projects and the resulting associationor sponsorship actions.
5. Shareholders. Our shareholders place their trust in the success of the business by committing their capital. Generating value through sustained cash generationand having clear priorities is essential to create an attractive profitability or return. In this context, our conversations with shareholders and investors are based on
clarity about the evolution and prospects of the business, as well as its potential risks.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Stakeholders rated each issues for potential impact and assessed
whether this would occur over the short, medium or long-term. Survey
responses were scored for potential impact materiality and potential
financial materiality. Lastly, additional focus groups were conductedwith members of our Executive Management Team to further
understand the potential financial impact to the business of these top
material ESG issues.
The results of this double materiality analysis are presented in thematrix above. In short, environmental issues were found to be themost important potential impacts, both to the business and to thewider world. Energy usage and intensity are particularly high on theagenda at present, both for external and internal stakeholders, and playa major role in our sustainability strategy. The reduction of waste in
manufacturing and increasing circularity is equally important to internal
stakeholders, but slightly less so to external respondents, although itis the second most important issue overall. Similarly, the challenge ofattracting and retaining employees was the third most important issue
internally but did not score so highly externally. Instead, compliancewith social legislation and health and safety scored more highly withexternal stakeholders. This should not, of course, imply that it is not
as important to Vidrala but it could reasonably be supposed thatinternal stakeholders would have a better understanding of thecompany’s programmes to address these issues.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTIn future, we plan to reassess the materiality of ESG issues on an annual
basis. We will also continue to refine our approach. Following release of
the Corporate Sustainability Reporting Directive (CSRD) guidance by theEuropean Financial Reporting Advisory Group (EFRAG), for example, wewill ensure that we comply with the new EFRAG methodology for Double
Materiality.

Energy usage and intensity areparticularly high on the agenda
at present, both for external andinternal stakeholders, and play amajor role in our sustainability
strategy.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Anti-corruption
We do not tolerate any violation of our anti-corruption, anti-bribery
and ethical policies and we are committed to addressing any
incidents which do so. Our Anti-Corruption, Anti-Fraud andCompetence Defence Policy establishes the applicableregulation, who this policy applies to, the general basic
principles of action and the channel of communication incase of a suspect or clear violation of the policy.
We ensure all our employees are trained on such issues.
Our code of ethics policy is communicated to each
new employee and is available on our Intranet. It is also
periodically communicated to current employees by email.
We have also implemented new software which is used to
identify and investigate any suspicious behaviour related topurchases and payments, minimising potential risks in thisfield.
Our Anti-Corruption, Anti-Fraud and Competency Defence
Policy also addresses the issue of Anti-Competitive Behaviour.
We continued to report no legal actions or breaches related to anticompetitive behaviour and violation this year. In addition, in 2022 we
implemented a new Whistleblowing Channel to promote the confidentialityof the complaint, guaranteeing anonymity. The new Whistleblowing Channel isavailable through the Vidrala website.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Effective climate risk management
Climate change poses significant risk on the environment, society, and economy as we
see it today. While Governments are being called upon to act, businesses are recognising
the need to understand their long-term strategy on mitigating and adapting to climatechange. We recognise that climate change presents both transition and physical risks
to Vidrala Group, and we are committed to ensure alignment with the recommendations
laid out in the Task Force on Climate-Related Financial Disclosures (TCFD).

FINANCIAL STATEMENTSSUSTAINABILITY REPORTIn preparation for the European CSRD requirements, the following outlines Vidrala
Group’s response to the recommendations and recommended disclosures of the
TCFD. In 2022, Vidrala undertook an in-depth study, bringing executive members fromacross the Group together with external climate risk experts. We have summarised ourprogress against the four core elements of the TCFD disclosures:• Governance: How we govern climate-related risks and opportunities across ourbusiness. This provides transparency of our Board’s and the Executive Committee’srole in assessing and managing climate related risks and opportunities.
• Strategy: The actual and potential impacts of climate-related risks and opportunities
on our business, strategy and financial planning over the short, medium and longterm.
• Risk Management: How we identify, assess and manage climate-related risks, andintegrate this into future strategy and risk management processes.
• Metrics and Targets: How we measure and manage our performance in addressingthese risks and opportunities.
We will continue to enhance our policies, processes and reporting with respect to the
TCFD recommendations and are aiming to be fully aligned by the end of 2023.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Governance of our sustainability strategy
To ensure responsible leadership and transparency, appropriate governance needs tobe implemented across our business, markets and the wider community. Responsible
leadership is key to ensuring the businesses long-term success for both ourselves,and our stakeholders.

FINANCIAL STATEMENTS

Our governance is led by our Board of Directors. The Board of Directors is made upof 11 members. Our directors have created an effective structure that encompasses
all the policies and processes needed to support the success of our business and our
culture of integrity.

• Governance and responsibility of our 4 P’s business strategy being shared throughout
the business and championed from the top-down and bottom-up.

• To be a responsible and sustainable business, with external stakeholders, including
our peers and external disclosures such as Carbon Disclosure Project (CDP)
recognising this.

8

11

Our key principles include:• As we strive to lead sustainability progress, we will always look to influence practices
across our business sector and the wider business community.

SUSTAINABILITY REPORT

meetings

members

All Board members are non-executive
Independence

Nacionality

Diversity• To ensure checks and balances are robust across the whole business, as well as
our strategy and operations being transparent to our stakeholders. This includes
remuneration, Board composition, accountability oversight, and payment of the fairamount of taxes in all geographies that we operate.
• We tackle climate change through the identification, assessment and managementof the Group’s climate-related risks and opportunities, ensuring these are embedded
into our overarching risk management approach.

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Independence

Spanish

Women

Other

Other

Men

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VIDRALA, AT A GLANCEMANAGEMENT REPORTTo ensure our Executive Committee has competence on climate-related issues andopportunities and can demonstrate responsible leadership, a number of the Executive
Team members have taken part in Carbon Literacy training. A total of 38 employees
have completed this training. This course covers a range of topics, including theenvironmental and human impacts of climate breakdown, and how to measure andreport our impact and nature-based solutions.
Our sustainability strategy is endorsed at the Group level in accordance with thefollowing governance framework:

FINANCIAL STATEMENTSSUSTAINABILITY REPORTOur Executive Committee monitors the progress of our sustainability strategy, advises
on our 4 P’s sustainability strategy, and is responsible for the overarching approvalof the strategy. The Group’s top climate-related risks and opportunities are reported
to the Executive Committee at least annually to ensure that they have oversight ofthe potential impact, and the mitigation and control measures being taken to reducethe climate-related impact. The Executive Committee delegates responsibility to the
ReNEWed Energy Taskforce to review business cases of investments related to oursustainability strategy, as well as ensure other business investments are not-counterto our sustainability vision and goals.

Board of Directors

Executive Commitee
ReNEWed Energy
Taskforce
Sustainability Director

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTClimate risk as a part of Executive
Committee Remuneration
The Executive Committee is ultimately accountable for
performance against the Group’s sustainability targets and goals.
Thus, the new executive compensation scheme links 30% of thelong-term incentive to the achievement of decarbonisation, useof renewable energy and safety targets.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Besides this, the ReNEWed Energy Taskforce continuously monitors
our sustainability strategy. This Taskforce consists of seven top-level
managers, including our Chief Executive Officer (CEO), Chief Financial
Officer (CFO), Chief Operations Officer (COO), Encirc’s Managing Director(MD), Technical Director, Sustainability Director, and Energy Procurement
Manager.
The focus of the Taskforce is to develop, oversee, and implement our 4 P’s
strategy’s targets and direction to ensure we’re taking the right action on climatechange, energy efficiency, innovation, diversity & inclusion, employee well-being,
biodiversity, and our communities. The Taskforce is responsible for the alignment andcoordination of efforts across the different functional units and advocating and supporting
all the actions required for the Group to achieve its Near-Term Science Based Target (SBT). It isalso accountable for the top risks and opportunities, keeping track of the potential impact theserisks could pose across various climate scenarios, and taking responsibility to ensure appropriate
risk management including adaptation and controls is implemented.
Finally, the Sustainability Director is responsible for the day-to-day strategy building, goal setting,execution and progress of all 4 P’s related performance metrics. There is also a broad group of
stakeholders including Human Resources (HR), Health and Safety Executive (HSE) and environmental
teams, that bring a broad spectrum of experience to our sustainability strategy, further supporting us inachieving our 4 P’s aligned targets. This joined up approach helps to ensure our 4 P’s strategy is integrated to
all areas of the business. Functional units including Procurement, HR, Technical, Communications & Marketing,
Regulatory, Sales and Operations, are responsible for the implementation of all areas of our strategy.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Identifying and assessing climate-related risks
To establish Vidrala’s exposure to climate-related risk, a comprehensive list of both physical and transition risks and opportunities was developedwith the support of specialist advisors. The list of potential climate-related risks and opportunities was built using our risk management
framework. Physical risks can be acute or chronic, while transition risks are related to the transition to a low-carbon economy. For example,
transition risks can include policy and regulatory, technological, market, reputational or legal risks.
These climate-related risks and opportunities have been assessed by the Executive Committee for materiality based on timehorizon and impact. This approach, which will be regularly reviewed and updated, is aligned to our risk register and risk
management framework, and is based on current expectations of climate trajectories and global action.
The risks identified are refined according to their impact, time horizon and likelihood materiality. To
understand the potential impacts of our top risks, we have undertaken qualitative scenario analysis
in 2022. This process assessed our top risks and opportunities against three different climate
scenarios, including Current Policies (above 3°C), Delayed Transition (2°C) and Net Zero by 2050
(1.5°C). By analysing our top risks and opportunities across these scenarios, it allows us
to better understand the importance of taking early action to combat future impact
and implement risk management strategies to mitigate the risks. These risks areembedded by the ReNEWed Energy Taskforce into the risk register and risk
management framework.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTClimate risk into risk management

Strategy

Risk management at Vidrala involves procedures supervised by the directors,
coordinated by management. We are taking action to ensure all risks that could resultin a potentially material impact are managed to ensure effective planning, mitigations
and controls are put in place to reduce the future impact. All climate-related risks
and opportunities identified within this process are integrated into our overarching risk
register.

We have assessed climate-related risks across every aspect of our value chain, including
our business operations, products and services, upstream and downstream suppliers.
We have also considered the varying climate-related risks and opportunities across thegeographic regions in which we operate. As a result, we identified the six top climaterelated risks and five top climate-related opportunities that could have a material impact
upon the Group (table 1). Of these, four are transition risks and two are physical risks.

We recognise that monitoring and managing climate-related risks effectively will be key
to ensuring our business will thrive in a low-carbon society. Effective risk management
also requires early action to help mitigate and adapt to the impact of climate change
in the future. We recognise the importance of effective risk management and horizon
scanning of regulations and compliance related to climate. This ensures that early
action can be taken to reduce the potential impact of transition and physical risks,such as climate litigation.

The climate-related risks and opportunities have been classified by the time horizon
within which we anticipate the impact to occur. These include:

To improve the resilience of our organisation against climate-related risks, we will be
reviewing the current mitigations and controls in place for our most material climaterelated risks. In the future, and following best practice, we will begin to consider
our overarching transition plan to 2050, to help reinforce our future resilience whilst
remaining profitable in a Net Zero world. This will allow us to understand how risk
management and adaptation can be improved for the Group.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Table 1: Vidrala Group’s Top Climate-Related Risks and Opportunities by Time Horizon
Category

Category overview

Risk / Opportunity

Time horizon

Transition Risks

Increased likelihood of regulation and climate
litigation puts companies due to the transition
to a low-carbon world. Transition risks include
market, technology and reputational risks.

Energy price volatility and supply security

Short-term(2023-2027)

Increased cost of raw materials decreasing revenue if absorbed or making products less competitiveif passed on

Short-term(2023-2027)

Damaged reputation through not meeting enhanced emissions reporting obligations imposed byregulators and suppliers

Medium-term(2028-2033)

Inappropriate or untimely investment in technology leading to increased costs, reinvestment needs
and failure to meet strategy

Medium-term(2028-2033)

Physical risks relate to the physical impacts ofclimate change. They can either be acute and/or
chronic.

Growing risk of drought and an increase in water scarcity could impact ability to produce products
at maximum capacity

Long-term(2034-2050)

Extreme weather events (flooding, drought, wildfires etc) could cause disruption to business
operations

Long-term(2034-2050)

These relate to the potential opportunities Vidrala
could reap from taking early action to transition
to a low-carbon world. Net Zero could lead to newstrategy, markets and investment.

Green capital knowledge could open access to green finance

Short-term(2023-2027)

Strengthening relationships with internal & external stakeholders, expanding business opportunities

Short-term(2023-2027)

Policy Incentives driven by climate change for using a particular energy source may result in a costsaving. Early action on climate change could lead to a favourable position for public policyLong-term(2034-2050)

Investing in the use of Cullet (recycled glass) can help to reduce Vidrala’s reliance on virgin raw
materials, as well as help reduce energy consumption

Medium-term(2028-2033)

Using new technologies, more environmentally-friendly fuels and developing new products andservices is an opportunity to increase the brand image and the Group's reputation

Medium-term(2028-2033)

Physical Risks

Opportunities

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Undertaking climate-related scenario analysis allows us to assess the impact of our top
climate-related risks and opportunities across three climate scenarios by time-horizon.
Scenario analysis ensures that our business can adequately plan potential impact
into our 4 P’s strategy and address risks and uncertainties, as well as capitalise onopportunities presented. Understanding the potential impact of the risk or opportunity
to the business ensures that we promptly implement mitigating controls.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

To guide the scenario analysis we identified multiple focal questions. Determining
focal questions prior to analysis helped to inform decisions, actions and when to
pivot strategy based on future climate scenarios. The Group identified broad focal
questions that cover overarching strategy decisions relating to climate-related risks
and opportunities, as well as more specific focal questions per individual risk.

Our overarching focal questions are:

What is theimpact on our
strategic andfinancial plan?

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What levelof risk are
we willing totolerate?

What is theimpact on
our Net Zero
Transition?

Where are theinterdependencies
that we needto stress test
between the risks
and opportunities?

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTClimate scenarios
In order to understand and plan for how we will be impacted in plausible future climate scenarios, we selected the most appropriate scenarios to use for the assessment.
The Network for Greening the Financial System (NGFS) Framework is one of the TCFD recommended frameworks for scenario analysis and meets the recommendation to assessbusiness resilience under different climate-related scenarios, including a 2°C or lower scenario.

Net Zero 2050 (1.5 °C)
1. Policies are implemented immediately andsmoothly.

What does thismean?

2. Technology change is fast and there is reliable
on CO2 removal.
3. Global carbon prices over $600USD/tCO2e by
2050.
4. Aligned to RCP 2.6 - equivalentof warming ofabove 1 °C.

What is theimpact?

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Higher transition risk; Lower physical risk. Sharpchanges towards decarbonising all aspects ofthe economy from today.

Delayed Transition(2 °C)

Currect Policies(3 °C)

1. Without immediate additional policies,
emissions rise until 2030. After 2030, there arestringent policies imposed causing emissions
to decline aggressively to get to Net Zero by2050.

1. Only currently implemented policies influencebusinesses and society, leading to a continued
rise in emissions.

2. Carbon pricing increases over $200 USD/
tCO2e between 2030 and 2050.
3. Aligned to RCP 4.5 - equivalent of averagewarming of above 1.5°C by 2050.
Transition risk is high in this scenario withincreased physical risk. Higher transition risk;
significant physical risk. Aggressive change
towards decarbonising the economy from 2030
onwards.

2. Technology change remains slow.
3. No modelled changed.
4. Aligned to RCP 8.5 - equivalent to an averagewarming of above 2°C by 2050.

Limited transition risk; Higher physical risk.
Reduced support to limit the effects of climatechange-only current policies applied.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTTransition risks are modelled to have the highest risk to the Group in a Net Zero 2050
and Delayed Transition Scenario over the medium-long term. The risk is highest inthese scenarios as new stringent legislation, regulation, and carbon taxes will likely
be put in place to help transition to a low-carbon society. This is driven by increased
pressure from governments, investors and customers to decarbonise. Over the longterm, the Group can expect the highest impact in a Delayed Transition Scenario, as
late action is expected to cause strict regulations to be imposed quickly. In a Current
Policies Scenario, limited change to current regulation and carbon pricing is expected,
and as such the impact of transition risks remain low in this scenario.

FINANCIAL STATEMENTS

Table 2: Transition risks impact on Vidrala by time horizon and climate scenario
Scenario 1:
Current policies(3 °C)
Business as Usual
Transitional risk
category
Energy Price & Supply
Security

Raw Materials

Reputation

Technology

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Scenario 2:
Delayed transition(2 °C)
Late action taken

Scenario 3:
Net Zero 2050
(1.5 °C)
Smooth transition

Scenario

Short-term(2022-2027)

Medium-term(2028-2033)

Long-term(2034-2050)

1

High

High

High

2

High

High

Very High

3

High

Very HighVery High1

MediumMediumHigh

2

MediumHigh

Very High

3

High

High

Very High

1

Low

Low

Low

2

Low

Very HighHigh

3

Very High

High

High

1

MediumHigh

Very High2

Medium

High

High

3

MediumMediumHigh

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Due to the differing geographic regions in which we operate, an increase in the physicalrisks of climate change poses a risk to the Group in the long term. It is importantto take early action to ensure effective planning, controls and mitigation actions aretaken to reduce the impact of physical risk in the future. Scenario analysis highlighted
that physical risks pose the most severe impact under a Current Policies Scenario.
Limited climate action will cause warming to be highest in the medium-long term, withwarming potential modelled to exceed 3°C. It is important to note that there is stillrisk in a delayed transition and Net Zero 2050 scenario, mainly due to the uncertainty
surrounding the analysis of physical risks. This uncertainty is due to the potential toreach a tipping point, causing severe and unpredictable extreme weather events.

FINANCIAL STATEMENTS

Table 3: Physical risks impact on Vidrala by time horizon and climate scenario
Scenario 1:
Current policies(3 °C)
Business as Usual
Physical risk category
Energy Price & Supply
Security

Raw Materials

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Scenario 2:
Delayed transition(2 °C)
Late action taken

Scenario 3:
Net Zero 2050
(1.5 °C)
Smooth transition

Scenario

Short-term(2022-2027)

Medium-term(2028-2033)

Long-term(2034-2050)

1

MediumHigh

Very High2

Medium

High

High

3

Low

MediumHigh

1

MediumHigh

Very High2

Medium

High

High

3

MediumMediumHigh

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While we recognise the significant impact climate-related risks could have upon
our business and operations, we have also identified five key opportunities that thebusiness could experience if identification and action is taken early (Table 4). The
opportunities are reaped by the Group during the global transition to a low-carbon
society, and therefore have the highest impact under a Net Zero by 2050 and Delayed
Transition scenario.
The identification of our opportunities highlight the inter-related nature of climaterelated risks and opportunities. Timing, investment and policy are all variables that
could impact whether we experience the impact as a risk or opportunity.
Building and maintaining trust in our climate actions among stakeholders, and being
ready to respond to issues is important, and could cause high impact as ESG rises
on investors agendas. To ensure opportunities related to early climate action can beexperienced, we will continue to maintain regular horizon scanning of technology,
research and government regulation. Working alongside our glass industry peers,
suppliers, customers, and glass associations - such as the European Container GlassFederation (FEVE), Anfevi, Glass Futures or Assovetro, among others - will be importantin the future.

FINANCIAL STATEMENTS

Table 4: Opportunities impact on Vidrala by time horizon and climate scenario
Scenario 1:
Current policies(3 °C)
Business as Usual
Climate-related
opportunities
Green Finance

Stakeholder
Relationships

Policy Incentives

Cullet Investment

Technological
Investment

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Scenario 2:
Delayed transition(2 °C)
Late action taken

Scenario 3:
Net Zero 2050
(1.5 °C)
Smooth transition

Scenario

Short-term(2022-2027)

Medium-term(2028-2033)

Long-term(2034-2050)

1

Low

Low

Low

2

Low

High

High

3

Low

MediumMedium

1

Low

Low

Medium

2

Low

High

High

3

High

High

High

1

Low

Low

Low

2

Low

High

High

3

MediumMedium

High

1

Low

MediumMedium2

Low

Medium

High

3

High

High

Very High1

MediumMediumHigh

2

Medium

High

High

3

High

Very HighVery High74

VIDRALA, AT A GLANCEMANAGEMENT REPORT

Metrics and targets
Being able to clearly implement and use metrics and targets is important to assess andmanage our top climate-related risks and opportunities. This is to ensure that progress
is monitored over time, and to guarantee that climate-related risks and opportunities
remain aligned to strategy and risk management processes.
We report greenhouse gas (GHG) emissions, including Scope 1, 2 and 3 emissions.
We have set a Near-Term Science-Based Target (SBT) for Scope 1, 2 and 3 to drive
decarbonisation over the next decade. We have recently submitted our Long-Term
SBT to the Science-Based Targets initiative (SBTi) for validation in mid-2023.
Improving our energy efficiency and reducing energy consumption are important
metrics to help mitigate the risk of energy prices and supply volatility. The result of ourcontinued investment in energy efficiency and energy reduction projects across thebusiness is presented later in the ‘PLANET - Energy usage’ section.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTWe also track the recycled content of containers manufactured. This metric is
important to help track the future transitional risk of raw materials increasing in costand scarcity. Through ‘Close the Glass Loop’, an initiative sponsored by the European
Container Glass Federation (FEVE) aiming to increase the quantity and quality ofavailable recycled glass, the industry is targeting a 90% average collection rate of usedglass packaging by 2030. This should further promote circularity in our production
process.
Drought and water scarcity emerged as a long-term physical risk for Vidrala. The
potential impact to our business and our local communities makes it vital that wetake steps to reduce our water consumption and improve water efficiency across
our operations. We track our water consumption to determine the water intensity ratio
per tonne of glass. We have set targets to reduce water consumption by driving water
reduction initiatives and programmes in the future.
Over the next year, we are planning to review, refine and set more climate-related metrics
and targets specific to the most material risks and opportunities we have identified.
These metrics will help track the magnitude of the risks, the Group’s exposure andthe effectiveness of our controls. The work will also help us to capture and maximise
climate opportunities, further strengthening our resilience during the transition to a
low-carbon economy. Climate-related risks and opportunity performance metrics are
currently not incorporated into remuneration policies, but this will be assessed within
the next phase of our TCFD journey.

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Recognised for our value creation track record
In 2022, Vidrala was awarded the ‘Value Creation Award’ by elEconomista - one of
Spain’s daily newspapers which focuses on economic, financial and business affairs.
These awards were part of the 8th edition of the ‘elEconomista Fund Investment
Awards’. Carlos Delclaux, chairman at Vidrala, attended the awards ceremony tocollect the award from Joaquín Gómez, deputy director of elEconomista. Rodrigo
Buenaventura, chairman of the Spanish Securities and Exchange Commission (SEC),
was also present at the awards ceremony.
These annual awards recognise those companies, products or values that are
innovative and cutting edge, highlighting the effort and originality of the initiatives.
Carlos Delclaux said: “It is an honour to receive an award that values the work andeffort behind the group. In recent years, the company has focused on dealing with
disruptions, to adapt to each circumstance and continue generating value for ourclients and investors, and for society.”

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PlanetWe are making glass cleaner
and greener“A sustainable planet is something we are striving for, and the ability torecycle glass again and again makes it a great choice as the materialof the future. We have always had a great record in making the sector
greener, and that is definitely something we will keep pushing for, raising
our environmental credentials and moving the industry forward to create abetter planet.” Oriol Moya, COO.

Sustainability is at the heart of our operations. We arecommitted to respecting the environment, to preventing
pollution, and reducing the environmental impact from our
products and processes. At the heart of this pillar we have afocus on energy, transportation, waste reductions and resource
efficiency. We have a strategic approach to reduce the impact of
the activities at our sites, all of which are certified to ISO 14001:2015,
an environmental management standard ensuring we have the required
environmental legal compliance procedures in place for the organisation.

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Acknowledging the key risks thatclimate change poses is key tocreating a combination of effective
adaptation and mitigation strategies
to create a resilient organisation. We have a
Near-Term Science-Based Target (SBT), in line with
1.5ºC approved by the Science-Based Target initiative(SBTi). In December 2022, we submitted our Long-Term
SBT, in line with 1.5 ºC, for validation by the SBTi. Developinga SBT reiterates our commitment to reduce our greenhousegas (GHG) emissions to prevent the worst effects of climatechange and help us measure and manage progress
towards a decarbonised economy.

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Leading the race towards the industry decarbonisation
In April 2022, we announced the validation of our Near-Term Science-Based Target (SBT). The Science-Based Targets
initiative (SBTi) has created a framework for companies to ensure emissions targets are in line with climate science.
The targets determine how much and how quickly we need to reduce emissions to limit global warming to 1.5°C above
pre-industrial levels.
The news represents the next step in our journey to create a sustainable future and make the first Net-Zero carbon
glass containers. This is a pivotal moment for the organisation as we become one of the first in the industry to have
our SBT approved.
Our Near-Term SBT commits us to:- Reduce absolute Scope 1 and 2 GHG emissions 47% by 2030 from a 2019 base year.
- Reduce absolute Scope 3 GHG emissions 28% by 2030 from a 2019 base year.
Extending this, we have been working on our SBTi Net-Zero target, and have recently submitted this for validation
to the SBTi. Committing to a Long-Term target will require us to reduce our Scope 1, 2 and 3 emissions by 90%. Our
targets will help prevent the worst effects of climate change, whilst future proofing our operations. At Vidrala, we havethe ambition to become the most sustainable glass business in the world by 2030, and it is hoped that the emissionreducing activity being rolled out across the Group will help enable this.

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Packaging plays an essential role in modern day living;protecting, preserving, and enabling the distribution of
products to all who need them. This is why conserving key
natural resources that are used for making glass, as well aswater, are essential to using resources efficiently. Glass canbe recycled an infinite number of times, highlighting why it is
so important we work to achieve a more circular economy in
our industry. As our global populations grow, the need for thebest and most sustainable packaging solutions will continue
to grow. Within this changing landscape, glass arises as the
optimal packaging of choice.
During 2022 there has not been any complaints related toenvironmental issues and the sanctions paid, which belongs toprevious years investigations are not significant.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTRESPONSIBLE
CONSUMERCONSUMPTIONCOLLECTION

THE JOURNEY
OF A RECYCLEDGLASS BOTTLEPACKAGING

RECYCLING

PRODUCTION

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Raw materials
We must shift from a linear to a circular economy to ensure enough resources for all
in the future. Our ambition is to develop a circular economy mindset. The involvementof strategic suppliers is key in this journey. To achieve our resource efficiency goals, weare committed to designing out excess material in our products, recycling and reusing
where possible, and reducing waste to zero.
Glass is made from using natural and abundant raw materials - silica sand, soda ash,and mostly recycled glass. To produce container glass, these ingredients are melted
at high temperatures in our furnaces. The more recycled glass we can incorporate into
the glass making process, the more we can reduce our reliance on taking these key
ingredients from the planet.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTThe finished product can berecycled an infinite number oftimes without losses in quality
or quantity which makes increasing
the amount of recycled glass used in
our manufacturing an attractive option.
By doing so, we reduce our reliance ontaking new raw materials from the planet,
it reduces our energy consumption and GHG
emissions and supports us in achieving a morecircular economy. This year 49% of raw materials
introduced into our furnaces was recycled glass.

USE OF RECYCLED GLASS (%)

RAW MATERIALS CONSUMPTION (ton/tmg*)
1.08

1.11

1.11

47%

48%

49%

2020

2021

2022

2020

2021

2022

*tmg = ton of melted glass.
This is a reference unit ofmeasure in the glass industry.
Any information basedon tmg enables both theassessment of the company’s
performance and thecomparison among different
companies in the sector.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTBest for the environment.
Glass can be recycled and reshaped over and over again without ever losing any of its
properties or advantages. This, and the fact it is made from natural and abundant raw
materials, makes glass the most sustainable packaging material there is, unlike othermaterials made from limited fossil fuels.

Best for health.
Glass is the healthiest and most hygienic form of packaging in the world. It forms anabsolute barrier against gases, vapour, and liquid, thereby protecting and preserving theflavour and properties of the food or drink within. It is one of the only packaging forms
that guarantees no contamination from outside sources.

Best for taste.
Because glass forms the perfect barrier, the taste of the product within will always beas the brand intended. Glass is chemically inert, which means unlike other packaging
forms, it will never interact with the product inside or distort the intended taste.

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A circular edition of ‘Forotech’
We are once again sponsoring the ‘Forotech’ event, the week of Engineering andTechnology organised by the University of Deusto. The Sustainable Development
Goal (SDG) #17 aims to strengthen the Global Partnership for Sustainable
Development, based on the idea that the SDGs can only be achieved through strong
global partnerships and cooperation. Likewise, this forum seeks partnerships
between business and academia, with direct contacts between professionals andstudents. In this tenth edition, Vidrala provided more than 2,000 refillable glass
containers customised with the branding of the event, which avoided the use of
thousands of single-use plastic bottles.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTWe are making our best efforts to further
increase the recycled content of the containers wemanufacture. This includes broken glass or waste glassand other recycled materials. To demonstrate our commitment,
in 2021 we launched a specific plan named ‘Cullet, the raw material
for our future’, under which we committed to investing in creating longterm partnerships, working with administrations, transforming logistics tomake recycled glass more available in the most difficult locations and, as result of
this, progressively increasing its use in our production process.
By working in partnership with the whole value chain we want to drive effective circularity,
we have a future vision to achieve 100% recycling of all collected glass packaging. We
are currently working to achieve a 90% average European Union (EU) collection rate ofused glass packaging by 2030 (up from the current average of 79%) and better quality ofrecycled glass, so more recycled content can be used in the production loop.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Working “Towards Zero Waste”
certification
Waste generation is one of the most important environmental
challenges facing society today, the volume of waste
generation on a global scale is continuously increasing. The
inadequate management of waste has significant impacts on
the environment and leads to pollution of water, soil and air,contributing significantly to climate change and ecosystem loss.
However, when waste is properly managed, it can be converted
into resources that have a positive effect on the conservationof natural resources and ecosystems. The Zero Waste strategy
is an essential goal for Vidrala to work towards as it closes thematerial cycle, reduces the environmental impact associatedwith waste disposal, and encourages innovation in productdesign.
In 2022, we began processes at our plants Aiala Vidrio andCastellar Vidrio to become a certified member of the “Towards
Zero Waste” management system, promoting continuous
improvement in waste management with the aim to achieve
up to 90% diversion of waste from landfill, incineration, and theenvironment.

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Towards
Waste
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Water usage
We recognise that climate change is projected to increase theseverity and frequency of droughts and water scarcity in certain
areas. The world’s freshwater ecosystems are already underhuge strain due to the rapidly increasing demand. This is a great
concern to our business, and the local communities that we
operate in. Water is an essential component to our manufacturing
process, it cools our hot end equipment, compressors, and any
unused melted glass. The impact to our business and our local
communities makes it increasingly important that we take steps
to reduce our water consumption and improve water efficiency
across our manufacturing sites. This is important to not only
protect this valuable resource but also ensure long-term businesssustainability.
Over the past few years, we have worked hard to improve water
efficiency and we believe we can still do more. This year wehave continued to undertake several projects to improve
our water consumption and as a result, we haveconsolidated the previous year achievement,
reporting again a water intensity ratio of 0.36
cubic metres per ton of melted glass.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTWATER CONSUMPTION(m3/tmg)

0.39

0.36

0.36

2020

2021

2022

We have included 2019 data as this is our baseline year for our Science Based Target (SBT).

Our site in Derrylin is a great example of the improvements
performed in water management. We have seen almost a 60%
reduction in water consumption since 2018. At Vidrala
Italia, we have also seen water consumption morethan halve since 2018. These reductions are due
to a large number of water efficiency initiatives
being implemented across operations. For
example, we have an objective to reduce thenumber of compressors used across our sites.
This is important to our water consumption as

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our air compressors used in the manufacturing process rely on water for cooling during
their operation. Each compressor consumes between 40 and 50 cubic meters of water
per hour. By replacing these water-cooled compressors with new compressors, we will
be able to reduce our annual water consumption by 9,000 cubic meters annually, whichis equivalent to eliminating the same amount of water needed to fill nearly 4 Olympic
sized swimming pools! We have also been making upgrades to the water treatment
plants across our sites in Spain. These upgrades will reduce water consumption,
improve the quality, and reduce the cost of treating wastewater.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTWe also see opportunities to reuse and recycle water in water stressed areas,
increasing water circularity. Water stress measures the ratio of total water withdrawals
to available renewable surface and groundwater supplies. We have identified two sites
in Spain, Castellar Vidrio and Crisnova Vidrio that are located in high water stressregions, according to the WRI Aqueduct tool. It is therefore vital that Vidrala reduces
water consumption across the business to ensure the worst impacts of water scarcity
are avoided.
We are in the process of developing a water policy to increase oversight of waterrelated risks, opportunities and issues throughout our operations.

86

VIDRALA, AT A GLANCEMANAGEMENT REPORTEnergy usage
Glass has demonstrated itself to be one of the most sustainable packaging solutions
for the environment and our core belief is that glass is key to a better, more circular
economy. However, we recognise that manufacturing glass is an energy intensive
process and contributes to the release of GHG emissions. Therefore, finding more
efficient ways to manufacture glass is fundamental for us to remain a leader in the
sector and achieve our SBT.
2022 showed strong inflationary pressures, as a consequence of supply chain
tensions and the energy crisis, aggravated by the war in Ukraine which caused an
unprecedented surge in the prices of natural gas, oil and electricity markets. This
extraordinary situation forced us to make huge efforts to increase the flexibility of ourenergy consumption profile by implementing internal actions to optimise our energy
mix, including a temporary switch to alternative fuels.
The energy crisis has changed our mindset, in terms of the way we approach energy
supply and usage at Vidrala. Alternative energy sources will play a key role in our next
steps, ensuring more environmentally friendly manufacturing, and safeguarding us
against future variations.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTIn 2022, Vidrala and Diageo partnered to create the worlds first Net Zero glass
bottles. Encirc plans to build a new furnace, powered by zero carbon electricity andhydrogen from the Vertex (HyNet) plant in Cheshire, that should be operational by 2027.
Decarbonising glass packaging will be a key part of the UK Government’s commitment
to reach Net Zero by 2050.
To quantify the impact of our operations on the climate we have reported our GHG
emissions annually since 2019. This allows us to measure progress against ourverified SBT. We hold ourselves accountable by continuously reviewing our strategies
and targets in light of the latest climate science.
Scope 1 emissions cover the direct emissions from our production and represent
those associated with the fuels that we have used on site. Our Scope 2 figure includes
emissions from the purchased electricity that we use at our sites. Our Scope 3
emissions figure accounts for the emissions that occur in our value chain, including
goods and products we purchase, logistics and employee travel. We intend to continue
taking steps to improve the data quality of our Scope 3 emissions over the coming
years. In 2022, we launched supplier questionnaires to start collect actual emissions
data. By doing so, we will significantly increase the robustness of these numbers,
and begin to track the benefits gained from our engagement and action with our key
suppliers as they decarbonise.

Already in 2021, we worked with Glass Futures to prove that glass bottles are able
to be made from 100% recycled glass using energy solely from burning ultra-lowcarbon biofuels. This has the potential to reduce the carbon footprint of each bottle by
up to 90%, making it the world’s most sustainable glass bottle. In 2022, this project was
one of the winners of the “The Good Practice” awards by Ingeniería Social. This awardshows our desire to promote best practice and be a socially responsible business.

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Table 5: Energy Consumption

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Table 6: CO2 Emissions

Energy source

2019

2020

2021

2022

GHG source

2019

2020

2021

2022

Fuels (kWh)3,713,564,750

3,206,985,481

3,469,914,537

3,525,633,817

Scope 1 (tCO2e)

887,045

810,398

862,314908,242

Electricity (kWh)320,520,064

310,775,667

324,997,913

337,108,160

Scope 2 / Location-based (tCO2e)

188,493

168,199

164,261

136,776

Renewable (kWh)301,906,706

281,477,408

317,689,012

338,236,340

Scope 2 / Market-based (tCO2e)109,742

80,20474,87586,355

Total Energy Consumption (kWh)4,335,991,520

3,799,238,556

4,112,601,462

4,200,978,317

Scope 3 (tCO2e)

816,950

88,220938,055

1,231,068

Fuels intensity (kWh/tmg)

1,438

1,328

1,303

1,275

Total Emissions / Location (tCO2e)

1,892,488

1,066,817

1,964,630

2,276,086

Electricity intensity (kWh/tmg)

124

129

122

122

Total Emissions / Market (tCO2e)

1,813,737

978,822

1,875,244

2,225,665

Renewable intensity (kWh/tmg)

117

117

119

122

Total Scope 1 & 2 / Location (tCO2e)

1,075,538

978,597

1,026,575

1,045,018

Total intensity (kWh/tmg)

1,679

1,573

1,545

1,519

Total Scope 1 & 2 / Market (tCO2e)996,787

890,602937,189994,597

Carbon Intensity (tCO2e/tmg)
Total Scope 1 & 2 / Location

0.417

0.405

0.386

0.378

Carbon Intensity (tCO2e/tmg)
Total Scope 1 & 2 / Market

0.386

0.369

0.352

0.360

Historical values of the ‘fuels’ row have been amended to include consumption of other fuels beyond natural gas.

Scope 1 includes emissions from consumption of natural gas and other fuels, decarbonisation of raw materials, leaked
refrigerants and use our fleet. We have included 2019 data as this is our baseline year for our Science Based Target (SBT).

In 2022, direct emissions produced from the burning of fuels (Scope 1) increased by
5.3% compared to the previous year, which is mainly explained by higher productionlevels. This shows that the temporary and exceptional use of diesel in some of ourfactories has had a controlled impact on emission levels. In this same line, including
the indirect emissions generated by the electricity consumed and purchased (Scope 2),
market-based emissions of Scope 1 and 2 increased by 6.1%. It should be noted that
renewable electricity already represents 50% of our Scope 2 emissions. If we do thissame analysis per ton of melted glass, the increase in emissions in 2022 was limited
to 2.2%, evidencing our efforts to improve the sustainability profile of our operations.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTThe rest of the indirect emissions produced in our value chain (Scope 3) reflect an increase of 31.2%. As the majorityof emissions were calculated using spend, raw materials cost inflation explains most of this increase. We have also
seen a bounce back in our emissions from business travel due to the return of normal travel patterns as Covid
restrictions are removed. For the first time in 2022, we have incorporated supplier-specific emission factors.
We are embracing and helping drive change across our operations and the wider sector. We havestarted collaborating with a number of external stakeholders including suppliers, peers and partners
to create a pipeline of innovations and research projects. We will continue to strongly invest toaccelerate the energy transition of our operations.
We are continually focused on improving the efficiency of equipment and processes toreduce overall energy demand. We monitor all equipment with variable consumption
in the plants: from compressors and dryers, to transformers, fans, pumps, andothers. This is vital for controlling our manufacturing processes and guaranteeing
reliability. Monitoring our activities also enables us to identify opportunities toimprove performance and eliminate both waste and inefficiencies. These
actions have generated a continuous and significant reduction in the
non-melting energy consumption.

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Embedding energy efficiency across our businessIn 2022, we extended the implementation and certification of the ISO 50001 Energy Management System
to our Castellar Vidrio and Crisnova Vidrio plants. ISO 50001 provides a framework of requirements fororganisations to develop a policy for more efficient usage of energy. The implementation of the Energy
Management System has allowed us to use consumption data to better understand and make decisions
about energy use.
During 2022, work has been done to improve the way in which energy from gas is used throughout
the production process. This improvement has been made through continuous daily monitoring of
consumption, allowing us to understand where consumption can be reduced. Being able to prioritise
consumption and raise awareness of the importance of responsible consumption has been key to theimplementation of ISO 50001, which has resulted in the following changes:i) Reduced energy consumption by 3% in the glass melting process, this has resulted in the saving of
2,500 tCO2e. This is equivalent to the total energy required to power 315 average homes for one year
(EPA, 2022).
ii) Reduced energy consumption by up to 15% in processes not associated with glass melting. This isequivalent to 1,500 tCO2e saved.
All this has been achieved without affecting production capacity or reducing the quality of the final
product. The success of these energy efficiency projects have highlighted the importance of continuing
to implement ISO 50001 Energy Management Systems at all of our sites.

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To support this, we have committed to implementing energy efficiency measures
such as the ISO 50001 energy management system across all our factories. Alongside
this, we are exploring opportunities to replace fossil fuels as we transition to 100%
renewable energy across our sites. In 2022, 50% of our electricity came fromrenewable sources. We are also introducing important initiatives to reduce our energy
usage and carbon footprint.

We also take steps to reduce noise and light pollution from our sites to minimise our
impact in the local areas in line with relevant state regulations.

We have invested significantly in on-site renewable energy production. At our
Crisnova plant in Caudete, Castilla La Mancha, we have started construction of asolar photovoltaic power generation plant, which will be used for consumption in theindustrial process, partially substituting fossil and electrical energy from the grid.
This will have a capacity of 12 MW using cutting-edge ground-based technology. The
project is part of Vidrala’s sustainability and energy efficiency strategy and is a clear
demonstration of our commitment to the environment and to the communities where
the group operates. During the first quarter of this year, the construction works havestarted of the project, which will avoid ≈9,000 tonnes of CO2 being released into theatmosphere per year.

In 2022, we submitted our second full Vidrala Group submission to CDP and did sofor both the Climate Change and Water Security questionnaires. This is a huge step
forward in our disclosure practices and demonstrates our commitment to tacklingclimate change and reducing our impact. We scored an A- in the Climate Change
questionnaire, this has increased from a B in 2021, showing the progress we havecontinue to make in driving sustainability across our business. We continued toscore a B in the Water Security questionnaire. The questionnaires have the added
benefit of helping us identify key areas for further improvement to drive sustainability
across our operations.

We are also taking steps to reduce other pollutants that are released into the environment
from our sites as a result of manufacturing glass. To manage these pollutants, wehave adopted the Best Available Techniques (BAT) of the glass industry, applicable toEuropean manufacturers. Specific measures of BAT were included in the design stageof new furnaces and during partial repairs of existing furnaces. These measures range
from the use of low NOx emission burners, to replacing fossil fuels with electrification.
SOx and other particles mainly originate from the glass melting process. To reduce
this, all of our factories now have electrostatic precipitators.

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In 2022, we also continued to disclose to EcoVadis. EcoVadis helps companies
manage their network both upstream and downstream, either by sharing performancedata with stakeholders or monitoring the performance of upstream value chains. We
again received an EcoVadis Silver Award, reflecting the continued importance ofsustainability in our business.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTWe are committed as a business to reducing the environmental impact of all ourtransportation activities in line with our recently validated SBT. Here at Vidrala, we arewalking the walk when it comes to creating an ambitious logistics strategy. By 2025,
all of our lorries will be converted to liquefied petroleum gas (LPG) or EURO 6 (whichis the highest emissions standard for diesel vehicles), reducing our NOX emissions
from transportation by 84% in the same timeframe. As part of our SBT, we have atarget to reduce annual fuel consumption from logistics by 4% every year up to 2030.
At Vidrala, we are committed to driving innovation and sustainability across ouroperations and supply chains. In 2022, we conducted more than 50 trials examining
the benefits of mixing rail and road methods for raw material deliveries to sites,
and outbound shipping of both empty glass containers and filled products. It isthought that by combining rail and road journeys, we could reduce the number of road
kilometres travelled by lorries by over 3,200,000 kilometres a year. This is equivalent
to driving from our Derrylin site to our Castellar del Vallès site 1,428 times! This
would see our carbon emissions from logistics reduce by over 3,200 tonnes a year
throughout our supply chain. This is equal to taking 134 cars off the road – further
improving the Group’s sustainability credentials. We are also discussing block chain
logistics within the sector. For our overseas deliveries, we support and encourage bulk
shipping processes which significantly improve delivery efficiency and reduce theenvironmental impact.

2022
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FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Alongside trialling the mixed use of rail and road transportation, in 2022 Vidrala
trialled HVO (hydrotreated vegetable oil) in trucks to replace standard diesel. HVO
is a low carbon, low emission, fossil-free and sustainable alternative to conventional
fossil diesel. It is fully interchangeable with conventional diesel, and can be mixed at
any percentage. Our HVO trial revealed some very positive results, the most evident
one being the huge reduction of CO2 created whilst using HVO in comparison toconventional diesel. We also noticed a slight advantage in kilometres per gallon on
HVO and the feedback from the drivers during the trial was that it had no detriment topower or performance of the truck.
Vidrala has also started investing in a new fleet of trucks powered by natural gas.
Natural gas burns much cleaner than traditional fuels, meaning 50-60% less carbon
dioxide is used on every journey.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT“To reduce the carbon footprint of one glass container, we need to look closely into
the most carbon intensive stages of its lifecycle. The environmental challenges
for glass are linked directly to production and transportation. We’re making waves
in both areas, having conducted a trial with bio fuels and looking at future trials
with both hydrogen and biomethane, while also focusing on transforming our
supply chains. Intramodality is crucial in this regard and has so much to offer –we can’t wait to see what these 50 trials hold for the future of sustainability in ourbusiness and the industry.” Adrian Curry, Encirc Managing Director.

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Additionally, at our site in Elton, we continue to use a railhead which enables us to bringnearly half of our raw materials to the site by rail – keeping thousands of trucks off
the road every year and GHG emissions out of the atmosphere. Also, in 2021 we wereable to successfully trial the use of 100% renewable HVO fuel to deliver glass sand to
our Elton facility by rail. This initiative is a testament to the great work we do when we
collaborate with our supplier partners, and it has the potential to reduce the carbon
footprint of this part of our products supply chain by 98.7% by removing the need touse diesel.

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Driving sustainability forward by increasing our fleetof electric vehicles
In September 2022, at our plant in Castellar del Vallés (Barcelona) we closed an agreementwith Linde Material Handling to replace the thermal trucks that currently operate in thefinished product warehouse with electric trucks. Linde Material Handling is one of theworld’s leading manufacturers of forklift trucks and warehouse equipment. These electrictrucks will have the highest energy efficiency standard. This means that at Castellar, we
will have a 100% electric internal fleet by the first quarter of 2023, reducing CO2 emissions
by approximately 300 tonnes.
In addition to this milestone at our Castellar plant, at our Gallo Plant in Marinha Grande(Portugal) we introduced a fleet of 100% electric forklifts in December 2022 and 100%
electric forklifts at the Garcia Warehouse in November 2022.
Projects such as these show our drive to reduce our carbon emissions and become moresustainable throughout our operations.

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PeopleWe put everyone first“All the people who make up the Vidrala project are key to deliver the continuous improvement of our daily operations, as well as the development of new processes andboost partnerships with our customers. For this reason, we constantly work to offer an attractive value proposition for our people, in an increasingly competitive context.
Similarly, it is essential to develop long-term relationships with strategic agents in our local communities, such as suppliers or public entities.” Joseba Fernández de Mendia,
Chief People Officer.
At Vidrala, we know that the success of an organisation depends on the people who devote all their commitment, knowledge and determination to its development. Our people havean instrumental role in driving the success and growth of our future project. We have continued to embrace efforts to increase workplace equality and diversity and ensure that
our working environment is as supportive and inclusive as possible, as a way to promote the improvement of our competitiveness.

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People development
People are fundamental to our sustainable business strategy and without their skills,
engagement, and experience, our success would not be realised. It is importantthat our people feel valued and engaged in the work they do. We recognise that all
our staff are individuals with different needs and career objectives, and we therefore
provide personalised development programmes based on performance assessment
programs, as well as global development programs at Group level, with an aim ofhelping our employees achieve their professional and personal goals in the short andlong term.

We believe that the professional development, health and well-being of our people is
key to our sustainable business strategy. Therefore, we provide excellent employment
opportunities that offer job security and competitive working conditions.
At Vidrala, our value proposal is based on the ‘Vidrala Horizon’ and, for example, theOne Horizon International Program for directors, department managers and technicalspecialists supports and defines our leadership mentality, driving the organisation
towards the achievement of your present and future goals. At the operational level, it
is a talent development program that reaches more than 350 people throughout theGroup. One Horizon is a program that is renewed every 3 years and which aims to:• Develop internal talent from a short-, medium- and longterm strategic perspective• Provide the opportunity to share learning and best practiceexperiences across the Group• Provide E-learning solutions to all participants

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VIDRALA, AT A GLANCEMANAGEMENT REPORTTo ensure training is adapted to our needs and serves to promote professional
development, as well as the success of our project, we annually reassess the training
and development needs of our employees. For this reason, in 2022 we have continued
to invest in our employees through training, with a total of 131,468 training hours
taking place this year.

TRAINING HOURS (#)
153,117

113,989

131,468

2020

2021

2022

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Similarly, within the framework of our ‘Vidrala Horizon’ value proposition, we havecontinued to progress our transversal people management processes with an evolutionof our external talent management strategy, our corporate branding, onboarding- outboarding, renewing our Internships Programs, Undergraduate and Master’s
Programs, laying the first stones of our ‘Vidrala Alumni’ philosophy. In the same way,
we are being able to channel professional development opportunities through the
management of internal promotions and we continue to implement evolved programs
linked to our internal Mentoring and Coaching management policies.

We advocate leadership at all levels, an idea that irrespective of where an employee
sits within the business hierarchically, they have the opportunity and responsibility tocontribute to continuous improvement. To do this, we have created collaborative goals
and objectives for employees whose daily responsibilities are not immediately related
to our sustainable business strategy. This is an important part for nurturing the next
generation of responsible future leaders.

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Equality, diversity, and inclusion
Equality, diversity, and inclusion is one of our key pillars in our People pillar and criticalfor being a successful business. Having a diverse workforce stretches us through thepower of differing opinions, viewpoints, knowledge, skills and cultural perspectives.
By fostering inclusivity and equality of opportunity, we empower all employees to thrive
and improve the performance of our teams.
In 2010, we developed our first Equality Plan in Spain which outlines our key objectives
for achieving universal equality and preventing any form of discrimination. The lessons
learned from all the updates made within the Equality Plan have been the basis forthe implementation of more advanced policies for the entire Group. Likewise, action
protocols have been updated to ensure that we offer the best protection possible to ouremployees. Our human resources teams receive updated training on relevant topics inorder to offer efficient, close and accurate advice. The legal framework in each of theGroup’s countries is significantly different and, therefore, a local approach is essential inpromoting equality plans that are fit for purpose in each location. However, a Group spirit
prevails as a hallmark.
Despite operating in a historically male-dominated industry, we remain strongly
committed to gender diversity and improving the representation of women at all levels.
Policies that integrate equal treatment and opportunities among both women and men
are applied from the selection stage through to promotion, via our pay policy, training,
employment conditions, occupational health, flexible working, and the commitment tosupport a work-life balance, including for those with family.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTFEMALE PRESENCE ACROSS THE ORGANISATION (%)
Women

Men

Board of Directors

Directors

36%

3%Line Managers

Other Employees

21%

14%

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Promoting diversity and inclusion in the glass industry
To ensure Vidrala is an attractive place for everyone, we recently developed
a diversity charter that helps us promote gender equality across the Group.
The Women in Manufacturing charter, which has been signed by our
executive team, outlines progressive measures to eliminate unconscious
bias throughout our recruitment stages, ensuring there are no discriminatory
candidate lists on grounds of sex, race, religion, etc.
We are also committing to the use of gender neutral language in all general communications aroundrecruitment activity. Unfortunately, manufacturing has clear limitations when it comes to not just gender
diversity, but also a skills shortage. It falls on companies like us, to lead change and help increase ourtalent pool by championing an inclusive culture and reaching out to the local community.
In 2022, we are proud to announce that we continued to achieve a Bronze Award in the Diversity Markaccreditation, whose mission is to help businesses across the UK and Ireland build more diverse andinclusive workplaces, through accreditation, insights, best practice and peer support. The Diversity Markis a ‘Mark of Progress’ that publicly declares a commitment to building a more diverse and inclusive
workplace to benefit all employees.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT“The Girls Network”, a partnership to help tackle gender barriers
We have proudly partnered with ‘The Girls Network’ in the UK and Ireland, to provide an initial cohort of 7 mentors for girls basedin Merseyside, from a variety of backgrounds and departments.
The Girls Network was founded back in 2013, providing one-to-one mentoring initiative designed to help girls overcome barriers
such as gender stereotyping, societal pressure and a lack of professional role models in their networks.
Partnering with The Girls Network, highlights that we are doing our part to ensure access and advice for career aspirations in
the glass manufacturing industry within schools in our local community. We recognise that the glass manufacturing industry
has historically been male-dominated, however we want to do all we can to encourage accessibility and career aspirations in theindustry to all girls and women. The work we are doing in this space is aiming to target both positive changes for both Vidrala
Group’s people and place, ensuring opportunities are provided to all.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTWe clearly state that there is no gender pay gap across our business. However, theaverage pay level of females compared to males is 11.5% lower. This difference isa result of women in the business currently holding less leadership and managerial
positions than men, as well as holding less hot end productions workers compared
to men, both of which contribute to a lower associated pay level. We are dedicated tosupporting our female employees on progressing through the business and developing
their careers.
We also have a remuneration policy that establishes pay levels linked to theposition held in the organisation, regardless of gender, race, religion, or other factors.
Historically, the nature of the production process has led to it being less attractive
to women, which is why we launched the programme ‘Women in Manufacturing’ toimprove the participation of women in the organisation.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTWe promote respect for all employees, provide confidential channels for whistleblowing
and for any complaints, and we ensure that the established controls for monitoring
criminal risk are present and operational. Furthermore, 100% of our operational team
employees were partial or totally covered by collective agreements across all of ouroperating locations in 2022.
At Vidrala, we demand strict compliance with the provisions of the International Labour
Organisation and we have implemented internal policies to ensure that our suppliers
have specific procedures in place to prevent child labour. Likewise, human resources
and risk prevention teams regulate the performance of psychosocial risk assessments.
These evaluations are facilitated by external professionals and represent an essential
tool to detect possible incidents of discrimination. Due to prevention measures that wehave established, there were no human rights violation complaints in 2022.

We have implemented policies as part of our code of conduct that commit us to
identifying and eliminating any vulnerability to human rights. These policies arecommunicated to all of our employees and form part of our Code of Conduct andare based on the basic principles of human rights. In 2022, we implemented a new
Whistleblowing Channel to promote the confidentiality of the complaint, guaranteeing
anonymity. The new Whistleblowing Channel is available through the Vidrala website,
as well as other internal channels. For further information, please review the minimum
criteria of the taxonomy chapter.

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Health and well-being
Whilst career development is important, championing the health and well-being of our employees is also a
top priority. A high-quality, stable work environment is essential, which is why of the over 3,600 of people
we employ, 94% are in full-time, indefinite positions, showing our dedication to providing stableworking conditions.
A key pillar of our health and well-being programme is to build a sustainable workforce
through policies designed to encourage and facilitate a healthy work-life balance, whilst
promoting mental health. As of the end of 2022, we have 39 employees trained as
Mental Health First Aiders (MHFAs), with a further 16 due to undertake the training at
the start of 2023. The MHFAs are from a variety of different roles across the business,from factory floor to support roles, so the team are able to provide support acrossall areas of the business. The MHFAs will be identifiable to our employees by a
mixture of lanyards, specialised bumper caps or badges and we will also have a“who’s who” noticeboard like we do for normal first aiders.
In addition, since 2015, the Vidrala Group has been implementing well-being
programs that have gradually evolved in all the Group sites towards a ‘Be Healthy’
program, being our SB Vidros plant in Marinha Grande -the last to join the Groupwhere there have been recent advances in this regard that were postponed due tothe circumstances derived from the pandemic in recent years.

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Running into the ‘Be Healthy’ programme
At our plant SB Vidros in Marinha Grande, we officially launched our Be Healthy programme on October
2022. Throughout 2022, we have already implemented a number of initiatives, however we wanted tocarry out a retrospective launch with the aim of making the program known to both our workers andtheir families… and we did this running! On a sunny morning we organised non-competitive races for
adults and children at the plant. Over 200 people attended the launch, including the authorities ofMarinha Grande, highlighting the commitment of Vidrala to the health and well-being of our employees.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTThe Vidrala Group has implemented professional classification systems and adapted
work calendars (4 shifts, 5 shifts, etc.) in each site that combine the needs of internal
flexibility, the improvement of our competitiveness and customer service with theopportunities reconciliation of personal and professional life. In 2022, for example,
we have introduced 5-shift systems with an organisational logic at our UK & Ireland
plants that have previously been successfully implemented at our Portuguese plants,
to improve the work-life balance of our employees.
A high standard of health and safety is a critical component of our business
operations, particularly for the industrial and manufacturing setting that ouremployees work in. At the start of 2022, we launched our R3 initiative with an aim offurther promoting a totally safe workplace. This is achieved by reducing exposure toaccident risks, encouraging safe habits and positive learning. This effort has resulted
in the contribution of many improvements and learnings that are contributing to thesustainable objectives of Vidrala and making our plants a safer and healthier place towork.

“Protecting the health and safety of our employees is paramount to us and wecontinue to make improvements to our processes and minimise risks. We’ve
reduced people’s exposure to accident-risk environments and encouraged
colleagues to actively engage in safe habits. Equally important, we’ve taken great
strides in 2022 when it comes to supporting people’s mental health, introducing
mental health first aid training and adapting crew programmes for each site to
make sure everyone has a healthy work-life balance and somebody to go to if they
ever need help.” Gorka Echebarria, Industrial Processes Director.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTWe are committed to ensuring the most relevant policies, procedures and standards
are in place to minimise the risks that are present. The accident rate in 2022 is almost
25% lower than in 2021. In 2022, we recorded 88 accidents, an improvement on
2021. This improvement showcases our commitment to continuously improve healthand safety across our business.

LOST-TIME INJURIES (#)
117

116

88

2020

2021

2022

In recognition of the potential risks our employees may face, we have implemented
occupational health and safety management systems across all our sites. Specifically,
all the Group’s production facilities are currently certified under ISO 45001 standards,
the international standard for occupational health and safety management, except forthe plants in the United Kingdom and Ireland, which have developed their health andsafety management system based on the ‘Successful Health and Safety Management’(HSG65) Model. We plan for these plants to adopt ISO 45001 soon, ensuring wecontinue to improve the working conditions for our employees.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTIn 2022, we provided over 15,271 hours of training to prevent accidents. This training
includes emergency response training, first aid courses, incident investigation andsafety awareness training to help reduce the occurrences of accidents. We provide
forklift training licences and hand arm vibration training, as well as bespoke training
for employees to help them become confident working at heights and operating heavymachinery.
The industrial processes used in our facilities can expose employees to certain
risks such as burns, cuts and muscle strains. For this reason, we have implemented
behavioural safety programs for our employees to improve their awareness of risk andtheir overall safety. We are able to identify these health and safety risks before theyoccur in order to apply the most effective mitigation techniques. To address theserisks, we have installed hot end fire protection systems, provided machinery risk
assessments, and provided guidance for safely lifting equipment within our factories.
Not only is managing the health and safety risks for our employees a priority, but
protecting consumers is also a core focus. We use different resources and strategies

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to guarantee food security. Specifically, we have a Risk Analysis and Critical Control
Points Team for each production plant, whose job is to analyse each stage of productionin order to determine potential physical, chemical and microbiological risks. These
analyses consider various elements including the handling of the product by humans
and considerations related to raw materials, machinery and equipment.
The hazards detected are compiled in a document shared by the team members inorder to identify which hazards are significant, thus determining the measures tobe implemented. Through this system, we can determine what the key points in the
manufacturing process are to minimise these risks.
Furthermore, we carry out an annual verification and validation process of our system
to monitor the health and safety of our products. A product recall simulation test isalso carried out to verify the ability to determine the product traceability and responsetime to potential product recalls, in the event of an emergency. To further manage
such risks, all of our containers have a product traceability label that complies with therelevant legal requirements, as well as a quality guarantee.

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Place
We are responsible for our surroundings“Place is about connecting with our communities and the environment around us, having a
positive impact on the people and the area we work in, supporting economic development
and job creation in these regions. Biodiversity is another relevant factor, making surethe flora and fauna around us have the space, time, and ability to thrive without being
negatively impacted by our operations.” Gerardo Arbeo, Procurement Director.

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Every local community in which our sites are situated are very important to
us as a business. They support us each day and many of our employees
call these areas home. Ensuring a positive impact on our local communities,
and being considered as an important asset to the community is extremely
valuable to us. Engaging with our local communities is fundamental to ourstrategy. Within the work we do, we aim to partner with ethical and local
customers and suppliers, and are taking steps to ensure we are making a
positive impact on the local biodiversity.

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Community engagement
We strive to raise awareness amongst our colleagues, customers, and suppliers
on how we can all have a positive impact on our local communities. We also
have a strong role to play within our communities to encourage, shape, influence,and deliver valuable experiences and learning opportunities in an equitable andinclusive way for the future leaders of tomorrow. Throughout 2022, we regularly
engaged with local businesses and the wider community on a wide range ofissues including biodiversity, recycling and wider sustainability within the sector.
For example, in June we presented to the Glass Society of Ireland to discusssustainability within the glass industry. We also had an interview with DEFRA(Department for Environment, Food & Rural Affairs) to discuss waste collection
and packing reform in the sector.
In 2022, our Sustainability Director participated as a keynote speaker inthe “Building a Sustainable Future” international conference taking place
at South West College, Northern Ireland. Vidrala’s contribution to the day
was to help showcase how organisations can develop their sustainability
strategies in line with government regulation, and targets on carbon
emissions and achieving Net Zero by 2050 or sooner. The conference
focused on the sustainability progress Vidrala has been making acrossits operations and supply chain, with a particular focus on the circular
economy.

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Encouraging participation in STEAM careers
In 2022, more than a hundred Basque secondary students participated in a meeting held at the
University of Deusto in Bilbao, to promote scientific-technological vocations among students(STEAM - Science, Technology, Engineering, Arts and Mathematics). Over twenty science andtechnology professionals from the top companies in the Basque Country, including Vidrala,presented to the students and provided advice regarding career options.
The meeting adopted the original and dynamic speed dating format. Thus, the students weredivided into groups of four people per table and next to them, in fifteen-minute shifts, the invitedprofessionals sat down to share their experiences.
The ‘STEAM Sare’ project, ran by Innobasque, shows Basque youth what research, science andinnovation professionals are like and what they work on in order to drive interest in STEAM
careers and encourage them to get involved in a range of technical studies.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Engaging with students and inspiring the next generation
to think of fresh ideas when it comes to packaging andsustainability is vital to ensure continued innovation
across the sector. For yet another year, Vidrala held its“VII MasterGlass Design Contest”, a contest that seeksinnovative and sustainable ideas among university
students and technical schools in Spain and Portugal.
The finalists had to defend their proposals in front ofa jury of experts in design, which valued aspects suchas innovation, originality, functionality, viability and

SUSTAINABILITY REPORT

sustainability of the projects presented. In 2022, thewinner was the ‘IZZI’, as it was the project that best met
the assessed criteria. The prize consisted of a trip to
the 2023 Milan Furniture Fair (Salone Internazionale delMobile di Milano). Every year, this is a great opportunity
to engage with students to drive continued innovation
when it comes to packaging.

MasterGlass
Design Contest
seeks innovativeand sustainable
ideas

2022
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During 2022, we also participated in a variety of charity projects and activities supporting
associations across our local communities ranging from sports, education, and health.
At Vidrala Group, we give a portion of our donations to sustainability focused initiatives
that are developing activities in line with our Glass Made Good strategy. In total we
donated over EUR 153,800 to these causes, of which EUR 73,294 were sponsorships.

We donated over EUR
153,800 to these causes,of which EUR 73,294 weresponsorships.

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Throughout the year, our site level teams have been busy organising events to raisemoney for a range of charities. This allows our people to give back to the charities
closest to their hearts, for the local community and beyond. Examples of our 2022
charity initiatives are outlined below:

Each year we encourage participation in our customer satisfaction survey by linking
responses to donations to the NGO ‘Aldeas Infantiles’. Therefore, each participant, in
addition to providing us with valuable information for our continuous improvement,
contributes to improving care for children and young people who are in vulnerable
situations, promoting their development and autonomy.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTCheshire Community Foundation (CCF). CCF raises funds to support hundreds ofsmall charities and voluntary groups across the whole of Cheshire and Warrington.
The foundation grant-makers ensure that the money we donate reaches the heart ofour local communities that need it most. The foundation looks to tackle poverty andinequality - helping to build stronger, happier and more resilient communities. In 2021
alone, CCF supported 164,000 children and young people, elderly and those needing
support with mental health.

Unicef. In collaboration with UNICEF, we participated in the solidarity project ‘Emergency
in Ukraine’ with the aim of supporting children and families in emergency situations
in various fields of action such as hospitals, schools and alternative care centres. All
the contributions were destined for the delivery of emergency supplies, health services,
psychosocial care and cash assistance to families, in addition to the delivery of basic
items such as clothing, footwear and blankets.

Cancer Connect Northern Ireland (CCNI). CCNI is a County Fermanagh charity,
supporting and guiding those affected by cancer. The Cancer Connect Centre provides
information, guidance, and practical support within a safe and confidential environment
to individuals and their families who have been touched by cancer. CCNI can support
individuals through connecting them with specialist complementary therapists andproviding them with specialist information services.

CTNNB1 Association. For our company race in 2022, we raised money for the
CTNNB1 Association. CTNBBI Syndrome is a severe neurodevelopmental disorder,
the syndrome is associated with developmental delay, intellectual disability, as well as
speech delay, among other impairments. The Association’s mission and commitment
is to help all families affected by CTNNB1 syndrome by offering them information,
guidance, support and everything they may need. For each participant in the company
race, Vidrala made a donation of 10 euros per person / per km to this association.

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Customer and supplier partners
Ensuring supply chain integration from our suppliers to our customers
is a key priority to us. Working together across our supply chain
helps to ensure cross collaboration, and helps to create a greater
impact both today and in the future. We are working with our supply
chain on a number of initiatives, including encouraging the uptake
and implementation of science-based decarbonisation pathways,
ensuring human rights are protected in every element across our
supply chain, and partnering with local suppliers wherever feasible tohelp support local economies and community development. Acrossall of these initiatives, we have an environmental focus ensuring that
all of our operations have a positive impact on the environment.

UK &IRELAND

Local suppliers. Como hemos mencionado antes, nos esforzamos
por trabajar con tantos proveedores y empresas locales como
podamos en las comunidades en las que operamos, para contribuir
al desarrollo económico y la creación de empleo en estas regiones.
Siempre nos hemos esforzado por entablar relaciones sólidas
con las empresas de nuestras comunidades locales, y estamos
continuamente agradecidos por estas colaboraciones continuas.

Domestic
suppliers (%)
Foreign
suppliers (%)

72%

28%
PORTUGAL

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79%

21%

80%

20%

83%

17%

ITALY

SPAIN

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

On average across our organisation, 80% of our suppliers are local,
demonstrating our commitment in this area and to the local communities
that we operate in.
The robustness of our supply chain was successfully tested during the
pandemic, with no supply disruptions even during the most restrictive
lockdowns. This is thanks to a strategically diversified supply chain as
well as the local suppliers of each region playing a key strategic role.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTAs a key supplier, we are strongly committed to supporting them inthese conversations and sustainability efforts. It is critical that ourcustomers know they have a partner who can drive change, invest
with sustainability in mind and already believe in a better future for all.
We want all of our customers to know that we will support them on
their sustainable transformation. Cross collaboration at all levels of
the glass packaging supply chain, as availability of recycled glass isthe key to our sustainable goals.

Supporting our customers. The packaging our customers use often
falls to scrutiny, with a number of less sustainable materials causing
growing concerns for society, both environmentally and for our health.
In response, many of our customers are exploring the sustainability of
their packaging decisions, and are re-evaluating their previous choices
and reverting to glass. The glass container protects, preserves, ensuresquality and health, enables efficient distribution, and reduces waste.
And above all, it is 100% recyclable, indefinitely, becoming the ultimate
sustainable packaging material for the future.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT‘Keep Recycling Local’
We have been working to help support the conversation aroundrecycling campaigns and infrastructure at an industry and local
Government scale. In May, Encirc partnered with Enva and Bryson
Recycling, two leading recycling and waste recovery providers acrossthe UK and Ireland, to create a new campaign - ‘Keep Recycling Local’.
This campaign hopes to highlight the importance of improving local
recycling infrastructure across local Governments, as well as having aconsistent approach to the recycling collection to result in high quality
recycled materials to increase the supply of recycled glass.
Adopting a three-stream approach is predicted to help increase local
recycling rates in Northern Ireland from 10% to 80%. This collaboration
is hoping to influence the current recycling collection processes, andensure the adoption of best practice. ‘Keep Recycling Local’ will aim totarget behavior change and engage with the public to help them better
understand the importance of recycling, and what happens to the waste
following collection.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Biodiversity
Vidrala Group recognises the importance of protecting and promoting biodiversity
across our operations and value chain. Biodiversity provides humans with raw
materials for consumption and production, supports functioning ecosystems
that supply clean air and water essential for our survival, the pollination of plants,
and many recreational benefits from being out in nature. We play an activerole in promoting biodiversity and raising awareness levels of our colleagues,
communities, customers, and suppliers on how they can have a positive impact
on biodiversity. We are committed to engaging with partnerships and creating
further biodiversity initiatives in the future.
In 2022, we started to grow our commitment to enhancing biodiversity
through multiple initiatives throughout the year. A few of our biodiversity
initiatives have included local beach clean ups and commissioning new
green space near the office buildings.
Vidrala Group plans to continue to assess the businesses impact on theenvironment and biodiversity on an annual basis and have started toconsider future plans to ensure Vidrala Group can ensure a positive
impact on its local biodiversity, as well as along the businesses value
chain.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTCollaborating with ‘One Piece After Another’ in the clean-up of abeach in Portugal
In 2022, Vidrala organised and participated in a beach clean-up in Portugal. This was in the aim of recognising
the importance of biodiversity, ensuring action is taken to support contributions to foster biodiversity in thelocal communities.
59 employees and volunteers linked to our plant ‘SB Vidros’, partnered with ‘One Piece After Another’ tocollect 350kg of marine garbage, which included fishing ropes and microplastics washed up on shore.
A local community effort was needed to make this such a success, this included efforts from the local councilof Pataias, who made themselves available to help collect and dispose of the rubbish appropriately.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Responsible Business of the Year!
In 2022, we were awarded the Northern Ireland Responsible Business of theYear Award by Business in the Community (BITC), a business-led charity
focused on promoting responsible business practice. This confirms the great
work that Encirc, and the wider Vidrala Group are doing as a responsible
business, placing the company in the spotlight and celebrating our fantastic
achievements as we continue to lead the way within the industry.
We also achieved a Platinum award in the Business & Biodiversity Charter.
This highlights our commitment in supporting biodiversity initiatives across
our operations, fostering links between environmental organisations, thework we do and the community.

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Sustainability Report

About this reportVIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTRegulatory framework
This report has been prepared in line with the requirements established in Law 11/2018 of December 28, 2018
on nonfinancial information and Diversity, approved on December 13, 2018 by the Congress of Deputies bywhich The Commercial Code, the revised text of the Capital Companies Law approved by Royal Legislative
Decree 1/2010, of July 2, and Law 22/2015, of July 20, on Auditing of Accounts, are modified in Non-financial
information and diversity (from Royal Decree-Law 18/2017, of November 24).
In its preparation, the guidelines on the presentation of non-financial reports of the European Commission(2017 / C 215/01) derived from Directive 2014/95 / EU have also been considered. Likewise, the provisionsof the Guide for the preparation of sustainability reports of the Global Reporting Initiative (GRI standards)
have been considered, for which a series of standards have been selected based on the information
requirements of Law 11/2018, Vidrala’s activity sector and the materiality analysis carried out.
In this context, through this report, we aim to report on environmental, social and personnel-related
issues and in relation to human rights relevant to the company in the execution of its own businessactivities.

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119

VIDRALA, AT A GLANCEMANAGEMENT REPORTEU Taxonomy
The EU proposed the “Action on Plan on Sustainable Finance” with the aim to direct
investments towards sustainable projects and activities as an instrument to help
achieve the goal of becoming the first climate neutral continent by 2050. In this context,
the EU Taxonomy Regulation (Regulation (EU) 2020/852) requires large non-financial
companies to disclose information on how far and to what extent their activities areassociated with economic activities that qualify as environmentally sustainable.
Taxonomy aligned activities need to contribute substantially to one of the six
environmental objectives set out by the European commission: (i) Climate Change
Mitigation, (ii) Climate Change Adaptation, (iii) Use and protection of water and marine
resources, (iv) Transition to a circular economy, (v) Pollution prevention and control
and (vi) Protection and restoration of biodiversity. In addition, the CapEx, OpEx andSales that meet with the substantial contribution must prove that they do no significant
harm to the other objectives, while also being in compliance with minimum social
safeguards.

FINANCIAL STATEMENTSSUSTAINABILITY REPORT• The Delegated Act (EU) 2021/2139 (Climate Delegated Act) establishes the technicalscreening criteria to determine under what conditions an economic is considered to
substantially contribute to climate change mitigation or climate change adaptation andto determine if the activity does no significant harm to any of the other environmental
objectives.
Amended for the introduction of economic activities in the nuclear and natural gas
sectors by Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022
amending Delegated Regulation (EU) 2021/2139 as regards economic activities incertain energy sectors and Delegated Regulation (EU) 2021/2178 as regards public
disclosure of specific information on these economic activities.
• The Delegated Act (EU) 2021/2178 specifies the content and presentation of theinformation to be disclosed as well as the methodology to be used to comply withregulation.
The Taxonomy Regulation is being implemented in phases with the environmental
objectives of climate change mitigation and climate change adaptation applicable first.

The current regulatory framework is defined by the following regulations:• Regulation (EU) 2020/852 establishes the criteria by which an economic activity will
be considered environmentally sustainable. Article 8 of Regulation (EU) 2020/852
required the EU Commission to adopt a Disclosures Delegated Act to specify thecontent and presentation of the information to be disclosed. As of 1 January 2023,
for the reporting period 2022 , the Delegated Act will apply fully to non-financial
undertakings.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Disclosures requirements
In compliance with article 8 of Regulation (EU)2020/852, in 2021 non financial
undertakings disclosed the share of turnover, Capital expenditures (CapEX) andOperating Expenditures (OpEx) that were eligible according to the classification set
out by the EU. In 2022 companies are also required report on the proportion of these
KPIs that is considered aligned.
Reporting undertakings are also required to disclose relevant information regarding
the accounting policy, the methodology for calculating those KPIs and qualitative
information to support the understanding of these KPI’s.

SCOPE
Annex 1 supplementing Regulation (EU) 2020/852 was used to define the scope ofactivities our business could align to.
Turnover, capital expenditure (CapEx) and operating expenditure (OpEx) were
determined and allocated to the numerator and denominator using Section 1.1 ofAnnex 1 of the Disclosures Delegated Act.

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ANNUALREPORT

FINANCIAL STATEMENTSSUSTAINABILITY REPORTThe following four activities were identified in 2022 and included in scope:• 4.25 Production of heat/cool using waste heat• 7.3 Installation, maintenance, and repair of energy efficiency equipment• 7.5 Installation, maintenance and repair of instruments and devices for measuring,
regulation and controlling energy performance of buildings• 7.6 Installation, maintenance, and repair of renewable energy technologies
It is expected for the taxonomy to be extended over time to include the additional
environmental objectives. This is significantly relevant for Vidrala, as our businessmodel may have activities more aligned with other environmental objectives such as
the transition to the circular economy.
The taxonomy is an evolving framework, and as such it requires companies to review
disclosed information regularly to ensure the reporting is aligned with the expectationsof EU regulators and relevant stakeholders.
In this sense, the FAQs published in October 6, 2022, and on December 19, 2022 by
the European Commission have provided implementation guidance on the Taxonomy
regulation framework.
Vidrala will continue to review the reporting criteria every year, ensuring the accuracy
and quality of the information and ensuring that the information reported coincides
with the perimeter of the Consolidated Annual Accounts. This report covers all the
production plants and locations of Vidrala, S.A.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Assessment ofcompliance
Taxonomy eligible
Due to a greater understanding of the Taxonomy
Regulation (Regulation (EU) 2020/852) and its
application to Vidrala’s economic activities, we havereviewed and updated our 2021 reported data.
In this sense, the items initially included in some of theactivities reported in 2021 have been reconsidered, as
they do not correspond precisely to the description of
the activity. Below is the comparison made for activities
reported as eligible in 2021 applying the change of
criteria.

FINANCIAL STATEMENTSSUSTAINABILITY REPORTCapEx eligible
reported - 2021

CapEx eligible
reviewed - 2021

4.15 - District heating/cooling distribution

8.2%

—%

Analysing the description of the activity, the investment
originally assigned to 4.15, aligns closer to 4.25

4.25 - Production of heat/cool using waste
heat

0.4%

12.7%

The increase is due to the reassignment of 4.15. This CapEx
now contributes a larger percentage of the total, however the
spend amount remains the same

5.2 - Renewal of water collection, treatment
and supply systems

12.7%

—%

The investment does not meet the description of the activity.

ACTIVITY

Explanation of variation

5.3 - Construction, extension and operationof waste water collection and treatment

—%

19.0%

Analysing the description of the activity, the investment
originally assigned to 5.2, aligns closer to 5.3. The spend
meets the description of the activity for 5.3. This CapEx now
contributes a larger percentage of the total, however the spend
amount remains relatively similar

6.6 - Freight transport services by road

4.0%

—%

The investment does not meet the description of the activity.

7.3 - Installation, maintenance and repair ofenergy efficiency equipment

62.2%

55.3%

A proportion of CapEx spend does not meet the description of
the activity.

7.5 - Installation, maintenance and repair
of instruments and devices for measuring,
regulation and controlling energy
performance of buildings

7.9%

11.7%

This CapEx now contributes a larger percentage of the total,
however the spend amount remains the same

7.6 - Installation, maintenance and repair ofrenewable energy technologies

0.9%

1.3%

This CapEx now contributes a smaller percentage of the total,
however the spend amount remains the same

9.1 - Engineering activities and related
technical consultancy dedicated toadaptation to climate change

3.8%

—%

The investment does not meet the description of the activity.

Total CapEx eligible

8,566,859€

5,751,793€

Total taxonomic CapEx

112,604,000€

113,328,000€

7.6%

5.1%

Percentage eligible over total

The percentages per activity are calculated as ‘Total eligible CapEx per activity/ Total eligible CapEx’.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFour of Vidrala’s economic activities are EU Taxonomy eligible, and account for 31.1%
of total taxonomic CapEx. The following table is a breakdown of CapEx spend for the2022 reporting period:
ACTIVITY

CapEx eligible2022

4.25 - Production of heat/cool using waste heat

0.5%

5.2 - Renewal of water collection, treatment and supply systems

2.9%

5.3 - Construction, extension and operation of waste water collection and treatment

0.4%

7.3 - Installation, maintenance and repair of energy efficiency equipment

89.5%

7.5 - Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings

3.4%

7.6 - Installation, maintenance and repair of renewable energy technologies

3.3%

Total CapEx eligible€50,210,190

Total taxonomic CapEx

161,212,581€

Percentage eligible over total taxonomic CapEx

31.1%

The percentages per activity are calculated as ‘Total eligible CapEx per activity/ Total eligible CapEx’. The substantial
increaste of the 7.3 activity is due to an increase of the investments related to this activity.

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FINANCIAL STATEMENTSSUSTAINABILITY REPORTRegarding OpEx, in fiscal year 2021 an eligible OpEx percentage close to 2% waspresented. As previously mentioned, due to the current degree of understanding of thedescriptions of the activities and the technical criteria included in the Taxonomy, it has
been revised that the taxonomic Opex is not material for the activities since the relevant
items are related are the relative ones. to supplies and personnel expenses and otheroperating expenses, which represent more than 98% of OPEX. For this reason, it has
been decided to adopt a conservative criterion, indicating that the eligible OpEx is close
to 0% of Vidrala’s accounting OpEx. Likewise, the restated OpEx figure for 2021 would
also be close to 0% due to the application of the change in criteria.
The following table justifies the evaluation carried out for the materiality of the Opex of
the 2021-2022 comparison:

OpEx taxonomic
OpEx consolidated annual accounts
Percentage taxonomic over consolidated annual accounts

2022

2021

4,012,822.0€

14,929,723.0€

1,177,479,551.0€

828,055,137.0€

0.3%

1.8%

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Taxonomy aligned
To be Taxonomy-Aligned, the activity must make a substantial contribution to at least one of the EU’s Taxonomy objectives, while at the same time not significantly harm any ofthese objectives and meeting minimum social safeguards. Where the do not significantly harm criteria does not apply to the environmental objective, this has been marked by notapplicable in the CapEx and OpEx templates, presented below.

Substantial contribution
How Vidrala complies with each substantial contribution criteria for CapEx in 2022:
EU TAXONOMY ACTIVITYSUBSTANTIAL CONTRIBUTION CRITERIAAPPLICATION TO VIDRALA

4.25 - Production of heat/cool using waste heat

La actividad produce frío/calor del calor residual.

Lehr is a heat recovery system that uses waste heatfrom the annealing ark.

7.3 - Installation, maintenance, and repair of energy
efficiency equipment

Examples of activity include(i) Refractory wall, and spend to support it’sconstruction to insulate the furnace walls, anddecrease heat loss.

(i) external walls, roofs, lofts, basements and ground floors (including measures to ensure air-tightness, measures to reduce theeffects of thermal bridges and scaffolding) and products for the application of the insulation (including mechanical fixings andadhesive);(ii) Energy efficiency lighting in the warehouses.

(ii) replacement of existing windows with new energy efficient windows;(iii) Replacement of ventilation units.

(iii) replacement of existing external doors with new energy efficient doors;(iv) Ceramic seals to ensure air tightness.

(iv) installation and replacement of energy efficient light sources;(v) installation, replacement, maintenance and repair of heating, ventilation and air-conditioning (HVAC) and water heating
systems, including equipment related to district heating services, with highly efficient technologies.
7.5 - Installation, maintenance and repair of
instruments and devices for measuring, regulationand controlling energy performance of building

The activity consists in one of the following individual measures:(i) installation, maintenance and repair of building automation and control systems,

Energy Management Systems which support field
digitalisation, and monitoring energy efficiency.

(ii) building energy management systems (BEMS),(iii) lighting control systems(iv) energy management systems (EMS).
7.6 - Installation, maintenance, and repair ofrenewable energy technologies

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ANNUALREPORT

The activity consists in one of the following individual measures, if installed on-site as technical building systems: installation,
maintenance and repair of solar photovoltaic systems and the ancillary technical equipment; installation, maintenance and repairof solar hot water panels and the ancillary technical equipment.

Installation of solar plants.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Three of Vidrala’s economic activities are EU Taxonomy aligned, and account for 5.4%of total taxonomic CapEx spend:

CapEx aligned/ Total CapEx
Eligible- 2022

CapEx aligned/ Total CapEx 2022

7.3 - Installation, maintenance and repair of energy efficiency
equipment

10.8%

3.4%

7.5 - Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performanceof buildings

3.4%

1.0%

7.6 - Installation, maintenance and repair of renewable energy
technologies

3.3%

1.0%

ACTIVITY

Total CapEx aligned

8,740,770€

Total CapEx eligible

50,210,190€

Total taxonomic CapEx

161,212,581€

Percentage Aligned over total CapEx Eligible
Percentage Aligned over total taxonomic CapEx

FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Significant harm to environmental objectives - DNSH
To comply with the do not significantly harm criteria for the environmental objectives,
an assessment has been made:Climate change adaptation
Investments linked to the following activities comply with appendix A of the EU
taxonomy, which is related to climate risk analysis, linked to TCFD. In 2022, Vidrala
undertook an in-depth study of the three RCP forecasts (2.6, 4.5 and 8.5), bringing
together members of the management team with external experts in climate risks.
After carrying out this analysis, no significant risks have been concluded that consider
adaptation measures necessary for the moment:• 7.3 - Installation, maintenance and repair of energy efficiency equipment

17.4%

-

-

5.4%

• 7.5 - Installation, maintenance and repair of instruments and devices for measuring,
regulation and controlling energy performance of buildings• 7.6 - Installation, maintenance and repair of renewable energy technologies.
Our CDP Climate Change and Water Security questionnaire scores can be found in our
Sustainability Report.
Pollution prevention and control
The related investments in activity 7.3 - Installation, maintenance and repair of energy
efficiency equipment comply with appendix C of the EU taxonomy.

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VIDRALA, AT A GLANCEMANAGEMENT REPORT

Minimum social safeguards
Human rights management
Vidrala Group has developed in 2022 its own Human Right policy based on the Modern
Slavery Act 2015, the International Treatments and Conventions, especially the Universal
Declaration of Human Rights of the United Nations and sets out the steps that Vidrala
has taken and is continuing to take to ensure that modern slavery or human trafficking
is not taking place within our business or supply chain. The commitment to developing
policies that integrate equal treatment and opportunities among employees, without
any direct or indirect discrimination based on race, sex, nationality, language, origin,personal convictions, marital or health status, is applied from the selection to thepromotion, through pay policy, training, employment conditions, occupational health,the organisation of working time and the reconciliation of family life and work. Likewise,
there is a monitoring system that aims to guarantee the achievement of the equality
objectives expressed, and communication procedures to report on the decisions, plans
and measures adopted, as well as to report the progress made.
This policy, as same as the Code of Conduct approved in 2019, is available to all
employees through the corporate intranet. In addition, our Code of Conduct acts as
the guiding criterion for all its activities, one of its pillars being not to tolerate any actionof corruption and bribery, among other crimes and it is communicated to each new
employee and it is refreshed on an annually basis.
Vidrala Group ensures that their suppliers accept the Suppliers Code of Conduct,
approved in 2022, at the moment of the registration as a new supplier. This Codeestablishes the human right compliance framework that each supplier has to accept,
as same as the acceptation of being audited on this topic, among others. The Quality

2022
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FINANCIAL STATEMENTSSUSTAINABILITY REPORT

Department is in charge of performing the audits to the suppliers, as explained in thecurrent report.
The Group is working on updating the audits templates basing them in the newhuman rights risk matrix. This matrix has been developed based on the last regulation
published.
At least once per year, the Audit Committee is being informed of any violation regarding
Human Rights. During 2022 no violations were recorded.
Complaint / claim mechanism
In 2022, Vidrala Group implemented a new Whistleblowing Channel based on
the complies with current legislation as set out in European Directive 2019/1937of the European Parliament and of the Council, of October 23, 2019, regarding theprotection of people who report violations of Union Law, as well as its transpositions
to the regulations of the countries where the Vidrala Group has a presence. Its aim
is to promote the confidentiality of the complaint, guaranteeing anonymity. This
Whistleblowing Channel as same as its management policy can be found https://www.
vidrala.com/en/investors/governance/whistleblowing-channel/. Throughout 2022, nocomplaint has been reported. Likewise, no activities engaged in by the companies
related to the Group have been detected in which the right to freedom of association,
to adhere to collective agreements or other forms of breaching the most basic rights,
are considered to be at risk.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Consumer interests

Anti-corruption and Defence of competence

Vidrala complies with the European Data Protection Regulation (GDPR).

We do not tolerate any violation of our anti-corruption, anti-bribery and ethicalpolicies and we are committed to addressing any incidents which do so. Our AntiCorruption, Anti-Fraud and Competence Defence Policy approved in 2020, establishes
the applicable regulation, who this policy applies to, the general basic principles ofaction and the channel of communication in case of a suspect or clear violation of thepolicy. We ensure all our employees are trained on such issues. Our Code of Conduct
is communicated to each new employee and is available on our Intranet. It is also
periodically communicated to current employees by email. We have also in place asoftware which is used to identify and investigate any suspicious behaviour related topurchases and payments, minimising potential risks in this field. As part of the internal
audit plan, a continuous audit is carried out that involves the purchasing, invoicing andtreasury processes to detect possible fraud and process improvements.

Regarding the customer complaints, Vidrala Group manages 100% of any instances ofdissatisfaction of its direct clients who are, in turn, in direct contact with consumers.
The indicator used -number of dissatisfactions per million tonnes sold- has experienced
a progressive improvement in recent years that could be appreciated in table 24 fromthe annex.
To ensure that all our complaints are all evaluated and responded to in a standardised
way, our Customer Service Team use an informatic system, ‘E-Gestiona’. The responseto any complaints covers an analysis of the cause of the complaint, and any relevantcorrective and preventative actions to be implemented. In the first place, the customer
service department gets in contact with the customer to gather additional informationand open the dissatisfaction in Vidrala’s quality management system, ‘E-Gestiona’.
After that, the quality department assigns the dissatisfaction depending on its typology(product, packaging, logistics, or commercial) and origin (plants or central) so that asolution is provided as quickly as possible. The Vidrala Group has established a set of
key performance indicators (KPIs) to monitor our process, specifically the proportionof complaints answered, and the time taken to answer. The use of KPIs ensures that weare improving the effectiveness of our system and process. Furthermore, in responseto the complaints gathered, the Vidrala Group establishes unique action plans in orderto minimise the quantity of complaints and, specifically, reduce the severity of thereceived complaints.

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Our Anti-Corruption, Anti-Fraud and Competency Defence Policy also addresses
the issue of Anti-Competitive Behaviour. We continued to report no legal actions or
breaches related to anti-competitive behaviour and violation this year.
Taxes
The purpose of the group’s tax policy is to ensure compliance with applicableregulations in all the tax territories in which the group operates, consistent with theactivity carried out in each of them. The Vidrala group has specialized external advice
for the evaluation and continuous management of tax risks in those geographies
where it operates.

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Methodology and accounting policy

Avoiding any double counting in the allocation, each investment across economic
activities was achieved by using a unique identifier called PEP and sub-PEP.

An assessment in the allocation of revenues or expenditures to different economic
activities was undertaken using management information. This formed the basis for
how turnover, CapEx and OpEx were calculated.

OpEx Denominator

The proportion of CapEx and OpEx has been calculated as the numerator divided by
the denominator.

The denominator covers direct non-capitalised costs that relate to research anddevelopment, building renovation measures, short-term lease, maintenance andrepair, and any other direct expenditures relating to the day-to-day servicing of assets
of property, plant and equipment by the undertaking or third party to whom activities
are outsourced that are necessary to ensure the continued and effective functioningof such assets. Vidrala has a specific code to identify all the OpEx considered assustainable that meets with this definition.

CapEx Denominator

OpEx Numerator

The denominator covers additions to tangible and intangible assets during the financial
year considered before depreciation, amortisation and any re-measurements, including
those resulting from revaluations and impairments, for the relevant financial year andexcluding fair value changes. Vidrala applies international financial reporting standards(IFRS) and national generally accepted accounting principles (GAAP). Leases that do
not lead to the recognition of a right-of-use over the asset have not been counted.
The denominator figures could been found in the notes of the Consolidated Annual
Accounts. Additions of fixed assets exclude additions to intangibles for CO2 emission
rights.

The numerator equals the part of the OpEx included in the denominator that is related toassets or processes associated with Taxonomy economic activities, including training
and other human resources adaptation needs, and direct non-capitalised costs that
represent research and development not already accounted for in the CapEx KPI.

CapEx Numerator

The turnover, CapEx and OpEx meet the requirements established for the environmental
objective of climate change mitigation.

Due to Vidrala’s economic activity, sales do not meet the description of any activity,
and therefore the percentage is 0.0%.

The numerator equals the part of the CapEx included in the denominator that is related
to assets or processes that are associated with Taxonomy-aligned economic activities.
Notably activities listed in points 7.3 to 7.6 of Annex I to the Climate Delegated Act.

2022
ANNUALREPORTIn both numerator considerations, it has only be taken into account the CapEx and
OpEx that has an associated invoice. A breakdown of the part of the CapEx and OpEx
allocated to substantial contribution to climate change adaptation is provided in the
numerator.

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

CapEx proportion(4)

Mitigation toclimate change(5)Adaptation toclimate change(6)

Marine andhydric resourcesmanagement (7)Circular economy(8)

Pollution (9)Biodiversity andecosystems (10)Mitigation toclimate change(11)

Adaptation toclimate change(12)

Marine andhydric resourcesmanagement (13)Circular economy(14)

Pollution (15)Biodiversity andecosystems (16)Minimunsafeguards (17)Proportion of the
CapEx that adjuststo the taxonomy,
year N (18)

Proportion of the
CapEx that adjuststo the taxonomy,
year N-1 (19)Enabling activity(20)

Transition
activity (21)

Criteria for DNSHCapEX absolute(3)

Economic Activities (1)Codes (2)Substancial Contribution Criteria

SUSTAINABILITY REPORT

EUR

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. ACTIVITIES ELIGIBILES ACCORDING THE
TAXONOMY
A.1. ENVIRONMENTAL SUSTAINABLE ACTIVITIES(Taxonomy aligned)
Intallation, maintenance and repair of energy efficiency
equipment
Intallation, maintenance and repair of instruments anddevices for measuring, regulation and controlling energy
performance of buildings
Intallation, maintenance and repair of renewable energy
technologies

7.3|

5,418,850

3.4%

3.4%

0%

N/A

N/A

N/A

N/A

N/A

Yes

N/A

N/A

Yes

N/A

Yes

3.4%

--

E

7.5

|

1,684,736

1.0%

1.0%

0%

N/A

N/A

N/A

N/A

N/A

Yes

N/A

N/A

Yes

N/A

Yes

1.0%

--

E

7.6

|

1,637,185

1.0%

1.0%

0%

N/A

N/A

N/A

N/A

N/A

Yes

N/A

N/A

Yes

N/A

Yes

1.0%

--

E

CapEx of the environmentally sustainable activities (A.1)|

8,740,770

5.4%

5.4%

0%

N/A

N/A

N/A

N/A

N/A

--

N/A

N/A

N/A

--

5.4%

--

--

--

A.2. ELEGIBLE ACTIVITIES ACCORDING THE TAXONOMY
BUT NOT ENVIRONMENTALLY SUSTAINABLE (nottaxonomy aligned)

|

-

0.0%

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

Production of heat/cool using waste heat

4.25

|

246,213

0.2%

Renewal of water collection, treatment and supply
systems
Construction, extension and operation of waste watercollection and treatment
Ilstallation, maintenance and repair of energy efficiency
equipment
CapEx of elegible activities according the taxonomy but
not environmentally sustainable activities (A.2)

5.2|

1,473,316

0.9%

5.3

|

208,000

0.1%

7.3

|

39,541,891 24.5%|

41,469,419 25.7%|

50,210,189.80 31.1%

TOTAL (A.1+A.2)

A. ACTIVITIES NON ELIGIBILES ACCORDING
THE TAXONOMYCapEx of not eligible activities according th the taxonomy(B)|111,002,391.15 68.9%

TOTAL (A+B)|

161,212,580.95 100%2022
ANNUALREPORT--

5.4%*The objectives related to Hydric Resources, Circular Economy, Pollution and Biodiversity
related to the substantial contribution are not applicable because they have not been
published.
** In the DNSH criteria, those ones that are “N/A” is because they dont proceed.

129

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

CapEx proportion (4)Mitigation to climatechange (5)Adaptation to climatechange (6)Marine and hydric resourcesmanagement (7)Circular economy (8)Pollution (9)Biodiversity andecosystems (10)Mitigation to climatechange (11)Adaptation to climatechange (12)Marine and hydric resourcesmanagement (13)Circular economy (14)Pollution (15)Biodiversity andecosystems (16)Minimun safeguards (17)Proportion of the CapEx that
adjusts to the taxonomy,
year N (18)

Proportion of the CapEx that
adjusts to the taxonomy, year
N-1 (19)

Enabling activity (20)Transition activity (21)Codes (2)Economic Activities (1)Criteria for DNSHCapEX absolute (3)Substancial Contribution Criteria

SUSTAINABILITY REPORT

currency

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. ACTIVITIES ELIGIBILES ACCORDING THE
TAXONOMY
A.1. ENVIRONMENTALLY SUSTAINABLE ACTIVITIESOpEx of the environmentally sustainable activities (A.1)
A.2. ELEGIBLE ACTIVITIES ACCORDING THE TAXONOMY
BUT NOT ENVIRONMENTALLY SUSTAINABLE
OpEx of elegible activities according the taxonomy but
not environmentally sustainable activities-

TOTAL (A.1+A.2)

-

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

0.0%

A. ACTIVITIES NON ELIGIBLES ACCORDING
THE TAXONOMY
OpEx of not eligible activities according the taxonomy

4,012,822.00

TOTAL (A+B)

4,012,822.00

2022
ANNUALREPORT

100%

130

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Proportion turnover (4)Mitigation to climatechange (5)Adaptation to climatechange (6)Marine and hydric resourcesmanagement (7)Circular economy (8)Pollution (9)Biodiversity andecosystems (10)Mitigation to climatechange (11)Adaptation to climatechange (12)Marine and hydric resourcesmanagement (13)Circular economy (14)Pollution (15)Biodiversity andecosystems (16)Minimun safeguards (17)Taxonomy-aligned
proportion of turnover, year
N (18)

Taxonomy-aligned
proportion of turnover, year
N-1 (18)

Category (enabling activity)(20)

Category (transition
activity) (21)Codes (2)Economic Activities (1)

EUR

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

F

T

A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (taxonomyaligned)
Turnover of the environmentally sustainable activities(taxonomy-aligned) (A.1)
A.2. ELEGIBLE ACTIVITIES ACCORDING THE TAXONOMY
BUT NOT ENVIRONMENTALLY SUSTAINABLE
Turnover of taxonomy-eligible bur not environmentally
sustainable activities (not taxonomy-aligned activities)(A.1)
TOTAL (A.1+A.2)

Criteria for DNSH

Absolute turnover (3)Substancial Contribution Criteria

SUSTAINABILITY REPORT

%

-

-

-

-

-

-

-

0%

-

-

-

-

-

-

-

--

--

--

--

B. TAXONOMY NON ELIGIBLE ACTIVITIES
Turnover of taxonomy-non-eligible activities (B)-

TOTAL (A+B)-

2022
ANNUALREPORT

0%131

Sustainability Report

AnnexesVIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Annex 1.Full data tables
Table 1
Consumption of raw materials (tons)
Raw materials
Auxiliary raw materials
TOTAL

Table 4
Waste generation (tons)
2020

2021

2022

2,600,642

2,949,598

3,077,260

523

748

749

2,601,165

2,950,346

3,078,009

Table 2
Water consumption (m3)
Water consumption

2020

2021

2022

949,946

950,459

996,383

Table 3
Other pollutants (kg)
2020

2021

2022

3,894,426

4,248,111

3,270,982

Sulphur Dioxides – SOx

2,955,850

3,003,145

2,350,454

TOTAL

2022
ANNUALREPORT

Hazardous / Recovered
Non-hazardous / Disposed

2021

2022

3,043

3,401

3,277

846

1,095

2,525

2,370

1,556

1,182

Non-hazardous / Recovered

18,362

11,63010,965

TOTAL

24,621

17,682

17,949Hazardous waste, such as dragger sludge, electrostatic precipitator waste, furnace chamber cleaning waste, empty
containers, absorbent rags, oil, etc. Non-hazardous waste, such as wood, paper and cardboard, plastic packaging,metal scrap, electrical scrap, disused moulds, obsolete machinery wiring, lithium batteries, etc. Disposed refers to nonrecoverable waste, which will end up in a landfill. Recovered refers to discarded materials that will be recycled to servea useful purpose by replacing other materials which would otherwise have been used used to fulfil a particular function.
Historical values have been amended due to reclassifications.

Table 5
Employees by country

Nitrogen Oxides – NOxParticles

Hazardous / Disposed

2020

43,496

77,24270,096

6,893,772

7,328,498

5,691,532

2020

2021

2022

United Kingdom

1,321

1,358

1,497

Spain

1,123

1,102

1,097

Portugal

868

848

872

Italy

193

190

187

Ireland

12

11

10

France

10

11

10

TOTAL

3,527

3,520

3,673

133

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Table 6
Employees by gender, age, and professional category (#)

Table 8
Temporary contracts by gender, age, and professional category (#)

2020

2021

2022

Female

493

499

529

Male

3,034

3,021

3,144

TOTAL

3,527

3,520

3,673

359

347

406

31-50 years old

2,255

2,226

2,249

Over 50 years old

913

947

1,018

3,527

3,520

3,673

Directors

47

49

47

Line Managers

399

452

469

Other employees

3,081

3,019

3,157

TOTAL

3,527

3,520

3,673

Under 30 years old

TOTAL

SUSTAINABILITY REPORT

Table 7
Indefinite contracts by gender, age, and professional category (#)

Female

2020

2021

2022

47

36

39

Male

197

167

183

TOTAL

244

203

222

Under 30 years old

104

78

92

31-50 years old

121

105

113

Over 50 years old

19

20

17

TOTAL

244

203

222

Directors

1

10Line Managers

8

7

8

Other employees

235

195

214

TOTAL

244

203

222

2020

2021

2022

Table 9Part-time contracts by gender, age, and professional category (#)

2020

2021

2022

Female

445

464

491

Female

46

43

61

Male

2,838

2,853

2,960

Male

93

61

80

TOTAL

3,283

3,317

3,451

TOTAL

139

104

141

255

269

314

Under 30 years old

3

1

12

31-50 years old

2,135

2,121

2,136

31-50 years old

48

41

56

Over 50 years old

893

927

1,001

Over 50 years old

88

62

73

3,283

3,317

3,451

TOTAL

139

104

141

Directors

46

49

47

Directors

1

1

1

Line Managers

391

445

461

Line Managers

13

9

12

Other employees

2,846

2,823

2,943

Other employees

125

94

128

TOTAL

3,283

3,317

3,451

TOTAL

139

104

141

Under 30 years old

TOTAL

2022
ANNUALREPORT134

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Table 10
Dismissals by gender, age, and professional category (#)
FemaleSUSTAINABILITY REPORT

Table 12
Average remuneration* of the Board of Directors, by gender (EUR)

2020

2021

2022

3

4

5

Female

2020

2021

2022

90,52893.10099,796

Male

28

27

27

Male

143,408

146.701

159,416

TOTAL

31

31

32

TOTAL

128,986132.083

139,543

Under 30 years old

9

5

7

31-50 years old

15

13

16

Over 50 years old

7

13

9

TOTAL

31

31

32

Directors

0

1

1

Table 13
Average remuneration* of Directors, by gender (EUR)

Line Managers

3

7

3

FemaleOther employees

28

23

28

Male

TOTAL

31

31

32

TOTAL

Average remuneration* by gender, age and professional category (EUR)
2020

2021

2022

36,37738,15440,268Male

41,471

44,29345,893

TOTAL

40,772

43,42345,083

Under 30 years old

33,92837,00337,42231-50 years old

41,73044,14145,729Over 50 years old

41,10844,087

46,712

TOTAL

40,772

43,42345,083

Directors

158,912

164,586

181,795

Line Managers

72,65370,84272,730

Other employees

34,85637,351

38,940TOTAL

40,772

43,42345,0832022
ANNUALREPORT

2021

2022

**

**

146.335****

183.371

158,912

164,586

181.795*Reported data includes variable remuneration, mainly related to results and productivity, as well as other remuneration
items (such as social benefits, retirement supplement, travel supplements and allowances, etc.). In order to improvecomparability, the average remuneration by category does not include amounts related to multi-year variable remunerationof irregular perception. **Average remuneration of Directors, by gender: omitted in previous years for data protection
reasons, as there was only one female director.

Table 11

Female2020

Table 14
Employees with disabilities (#)
Employees with disabilities

2020

2021

2022

36

45

44

Reported figures include available data for the UK and Ireland division. Comprehensive data is expected looking forward,
as we improve monitoring of such information.

135

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTS

Table 15
Absenteeism (hours and index)

Table 18
Frequency rate by gender (index)
2020

2021

2022

593,587

589,617556,394

6,277,911

6,254,915

6,321,574

9.5%

9.4%

8.8%

Total hours lost
Theoretical working hours

SUSTAINABILITY REPORT

INDEX

2020

2021

2022

9.4

14.4

9.5

Female
Male

24.0

21.8

16.2

TOTAL

21.7

20.7

15.3

2020

2021

2022

0.24

0.72

0.20

Frequency rate = # of accidents x 1,000,000 / # of hours worked.

Table 16
Occupational diseases by gender (#)
2020

2021

2022

Female

12

15

12

Male

62

52

64

TOTAL

74

67

76

Historical values have been amended to better adjust to the calculation methodology defined by law.

Table 17: Number of work accidents** by gender (#)
2021

Male

0.96

0.79

0.47

TOTAL

0.85

0.78

0.43

2020

2021

2022

863

1.632

940

2022

Female

7

11

8

Male

110

105

80

TOTAL

117

116

88

2022
ANNUALREPORT

FemaleSeverity rate = # of days lost x 1,000 / # of hours worked.
2020**Lost-time injuries.

Table 19
Severity rate by gender (index)

Table 20
Total hours of training by professional category (hours)
Directors
Line Managers

25,42822,494

17,763

Other employees

126,826

89,863112,765

TOTAL

153,117

113,989

131,468

136

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Table 25

Table 21
Average hours of training by professional category (hours per employee)

Profits obtained, country by country (EUR ‘000)

2020

2021

2022

Directors

18

33

20

United Kingdom

Line Managers

64

50

38

Portugal

Spain

2020

2021

2022

158,532

236,583

200,719

50,233

41,77237,362

26,876

14,1398,202

Other employees

41

30

36

Italy

11,548

5,659

12,172

TOTAL

43

32

36

Ireland

1,990

1,694

2,156

France

130

-71

3,693

2020

2021

2022

32.4

27.8

8.6

2020

2021

2022

0.9

0.8

3.6

Table 22
Contributions to non-for-profit organisations (EUR)
Group

2020

2021

2022

240,328

192,084

153,809

Table 26
Taxes paid on profits (EUR million)
Group

Table 23
Local and non-local suppliers by country (#)
2020
Locals2020
Foreign

2021
Locals2021
Foreign2022
Locals2022
Foreign

Spain

9,994

1,996

10,1782,053

10,351

2,100

Portugal

2,344

906

2,464

960

2,591

1,053

Italy

1,650

403

1,699

428

1,761

453

UK & Ireland

3,333

920

3,569

977

4,128

1,096

Table 27
Public grants received (EUR million)
Group

Table 24
Number of dissatisfactions per million tons sold (index)
2020
Dissatisfaction index
YoY CHANGE

2022
ANNUALREPORT

2021

2022

414

411

403

(7.1%)(0.8%)(1.9%)

137

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTANEXO 2.Global Reporting Initiative (GRI) Index
GRI UNIVERSAL STANDARDS 2021 - Updated as mandatory into reporting January 2023

GRI 1: Foundation 2021

Vidrala Group has reported the information cited in this GRI content index for the period 01/01/2022 -31/12/2022 with reference to the GRI Standards.

GRI 2: General Disclosures 2021
Reportingframework

Page NºAnswer, Additional comments,
Reason for omission

Topic

Indicator

Organization and reporting practices

Organisational Details

GRI 2-1

Vidrala, S.A.
Nature of Ownership and Legal Form: Listed, public limited company
Headquarters: Llodio, Álava (Spain)
Countries of operations: Spain (3), Portugal (2), UK and Ireland (2), and Italy (1)Organization and reporting practices

Entities included in the organization’ssustainability reporting

GRI 2-2

This report covers all production plants and locations of Vidrala, S.A.

Organization and reporting practices

Reporting period, frequency and contact pointGRI 2-3

Reporting period: 1st January 2022 - 31st December 2022
Frequency of reporting: Annually
Publication date of report: 28th February 2023
Report contact details: Fiacre O’Donnell
fiacre.odonnell@encirc360.com

Organization and reporting practices

Restatements of information

GRI 2-4

Any restatements are included throughout the report.

Organization and reporting practices

External assurance

GRI 2-5This report has been verified by Ernst & Young, Climate Change & Sustainability Services (CCaSS). The
independent verification report of the statement of non-financial information can be found in the full-year
consolidated financial statements.

Activities and workers

Activities, value chain and other business
relationships

GRI 2-6

Sector: Retail and Manufacturing.
Activities: Manufacturing of glass containers for food and beverage products. Net sales of products:
Main markets: Southern Europe, Western Europe, UK & Ireland

Activities and workers

Employees

GRI 2-7

Activities and workers

Workers who are not employees

GRI 2-8

32 - 37,
56 - 59

Breakdown of employees available in this report. Methodology: full-time equivalent (FTE). Year-on-year
fluctuations are explained by company growth.
Vidrala Group do not have workers who are not employees, or whose work is controlled by the organisation.
continued on next page2022
ANNUALREPORT138

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

continued from previous page
Governance

Governance structure and composition

GovernanceNomination and selection of the highest
governance body

Governance

Chair of the highest governance body

GovernanceRole of the highest governance body inoverseeing the management of impacts

13 - 15

The governance structure is described and published on the corporate website:
https://www.vidrala.com/en/investors/governance/committee/
https://www.vidrala.com/en/investors/governance/commission/

GRI 2-10

13 - 15The designation of a new member of the Board of Directors is the responsibility of the General Shareholders’Meeting, following a proposal from the Board of Directors and a favorable report from the Nomination
and Remuneration Committee. As an exception to the foregoing, in the event of the designation of an
independent member of the Board of Directors, it is the Nomination and Remuneration Committee that
submits the appointment proposal. The CV of each of the members is explained on the corporate website.

GRI 2-11

13-15

The Chairman of the Board of Directors has no executive functions.

10 - 16

The Board of Directors is competent to adopt agreements on all kinds of matters that are not attributedby law or the Bylaws to the General Shareholders’ Meeting, with no more substantial limit than that
established by the corporate purpose. The Board of Directors has the broadest powers and faculties tomanage and represent the Company.
However, the Board of Directors will focus its activity on the supervision, organization and strategic
coordination of the Vidrala group, defining, in particular, the level of risk that it is willing to assume.

10 - 16

The Board’s policy is to delegate the ordinary management of the Group to the management team andconcentrate its activity on the general function of supervision, organization and strategic coordinationof the Vidrala group. The Board of Directors will supervise the actions of the Chairman of the Board of
Directors, as the case may be, of the Chief Executive Officer and the Executive Committee and also of thesenior management and will guarantee the effectiveness of the system of counterbalances provided forin the applicable legislation.
This supervision is carried out at least in each Board of Directors.

GRI 2-9

GRI 2-12

Governance

Delegation of responsibility for managing
impacts

GRI 2-13

GovernanceRole of the highest governance body insustainability reporting

GRI 2-14

As established in Article 5.5 of the Regulations of the Board of Directors, the Board is responsible forreviewing and approving the information presented.
https://www.vidrala.com/default/documentos/814_en-regulation_of_the_board_of_directors_16042019.
pdf

Governance

Conflicts of interest

GRI 2-15

Article 33 of the Regulations of the Board of Directors regulates the procedure to be followed in the eventof conflict of interest situations of the members of the Board of Directors. No ongoing conflicts of interestin the operation of the Board of Directors have been identified. If such circumstance exists, it will be madepublic within the framework of the Annual Corporate Governance Report and the financial statements of
the Company.

GovernanceCommunication of critical concerns

GRI 2-16

In each of the Boards of Directors, those points of interest and monitoring of the business are raised tothis body. Likewise, if a critical concern arises, an extraordinary meeting will be established in order todeal with it.

GovernanceCollective knowledge of the highest
governance body

GRI 2-17

GovernanceEvaluation of the performance of the highest
governance body

GRI 2-18

14

To ensure our Executive Committee has competence on climate-related issues and opportunities andcan demonstrate responsible leadership, a number of the Executive Team members have taken part in
Carbon Literacy training.
The Board of Directors has a fixed salary with no bonus based on the company’s results, neither financial
nor environmental.
However, the Executive Committee has its 30% of the long-term incentive for the achievement of theobjectives of decarbonization, use of renewable energy and security. This bonus is reviewed by the
Nominations and Remuneration Committee at least once a year.
continued on next page2022
ANNUALREPORT139

VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

continued from previous page

Governance

Remuneration policies

GRI 2-19

Governance

Process to determine remuneration

GRI 2-20

Governance

Annual total compensation ratio

GRI 2-21

Strategy, policies and practices

Statement on sustainable development
strategy

GRI 2-22

Strategy, policies and practices

Policy commitments

35,
57 - 58

The General Shareholders’ Meeting of April 27, 2021 approved the remuneration policy (https://www.
vidrala.com/default/documentos/1207_es-politica_de_remuneraciones_2021-2023.pdf) for directors
referring to the period 2021-2023, in accordance proposed by the Board of Directors with the priorfavourable report of the Nominations and Remuneration Committee. This document establishes the
remuneration policy for Directors. The Board of Directors, with the favourable report of the Nominations
and Remuneration Committee, establishes the remuneration policy for the Executive Management.

35

The General Shareholders’ Meeting of April 27, 2021 approved the remuneration policy for directors
referring to the period 2021-2023, in accordance proposed by the Board of Directors with the priorfavourable report of the Nominations and Remuneration Committee. Likewise, the annual report on
directors’ remuneration is submitted to a consultative vote at each General Shareholders’ Meeting (https://www.vidrala.com/es/inversores/gobierno/informe-anual-de-remuneraciones-de-consejeros/ ), so thatinterest groups can find out (and in the case of shareholders, vote) the way in which the remuneration
policy for directors has been applied in each year.
The highest-paid individual equals 11,6x times the average annual total compensation for all employees.
The percentage increase in annual total compensation for the organization’s highest-paid individual to themedian percentage increase in annual total compensation for all employees is 6,6%.

5-7
All the policies are approved by, at least, one of the members of the Executive Team or a DelegatedCommittee of the Board of Directors.

GRI 2-23

All the policies approved are available in the company’s intranet. In the corporate website are the ones
related to the Governance Bodies: https://www.vidrala.com/es/inversores/gobierno/reglamentos/
Before the approval of any policy or procedure, there have been several meetings between the process
owners, managers and directors where the draft and final versions have been agreed by all the parties.

Strategy, policies and practices

Embedding policy commitments

GRI 2-24

Once is approved, it is shared through an announcement in the intranet to all the employees.
During the adaptation to the new policy, there is a follow-up by the own owners.

Strategy, policies and practices

Processes to remediate negative impacts

GRI 2-25

13-21, 49-50

Strategy, policies and practices

Mechanisms for seeking advice and raisingconcerns

GRI 2-26

13-21, 49-50

Strategy, policies and practices

Compliance with laws and regulations

GRI 2-27

Vidrala Group have had no instances of non-compliance with laws and regulations during the reporting
period.

Strategy, policies and practices

Membership associations

GRI 2-28

Fédération Européenne du Verre d’Emballage (FEVE), International Partners in Glass Research (IPGR),
Ecovidrio, British Glass, Glass Futures, Consorzio Recupero Vetro (CoReVe), HyNet Northwest, The Drinks
Trust, The Wine and Spirit Trade Association (WSTA).

Stakeholder engagement

Approach to stakeholder engagement

GRI 2-29

10-13

Stakeholder engagement

Collective bargaining agreements

GRI 2-30

35
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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTGRI 3: Material Topics 2021
Reportingframework

Page NºProcess to determine material topics

GRI 3-1

10-12Disclosure on material topics

List of material topics

GRI 3-2

10-12Disclosure on material topics

Management of material topics

GRI 3-3

12-16

Topic

Indicator

Disclosure on material topics

Answer, Additional comments,
Reason for omission
Double Materiality Assessment taking within reporting period, assessing against GRI 2021 Universal
Standards.

Economic Performance
Topic

Indicator

Reportingframework

Page NºEconomic Performance

Financial implications and other risks andopportunities for the organisation’s activities
due to climate change

GRI 201 - 2

13 - 22

Public subsidies

Financial assistance received fromgovernment

GRI 201-4

60

Indirect Economic Impacts

Extent of the development of infrastructure
investments, and expected impacts oncommunities and local economies

GRI 203-1

38 - 43

Procurement impacts

Proportion of spending on local suppliers

GRI 204-1

41, 60Anti-corruption

Operations assessed for risks related tocorruption

GRI 205-1

13, 50Anti-corruption

Communication and training about anticorruption policies and procedures

GRI 205-2

13, 50Anti-corruption

Confirmed incidents of corruption and actions
taken

GRI 205-3

13, 502022
ANNUALREPORT

Answer, Additional comments,
Reason for omission
Vidrala Group have disclosed for the first year against the Task Force on Climate-related Financial
Disclosures (TCFD).

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Environmental Performance
Reportingframework

Page NºRecycled input materials used

GRI 301-2

3,
23 - 25, 55

EnergyEnergy consumption within the organization

GRI 302-1

27 - 28

EnergyEnergy intensity

GRI 302-3

27 - 28

Water and effluents

Water consumption

GRI 303-5

26 - 27, 55

Emissions

Direct (Scope 1) GHG emissions

GRI 305-1

28 - 29

Emissions

Energy indirect (Scope 2) GHG emissions

GRI 305-2

28 - 29

Emissions

Other indirect (Scope 3) GHG emissions

GRI 305-3

28 - 29

Emissions

GHG emissions intensity

GRI 305-4

28

Emissions

Reduction of GHG emissions

GRI 305-5

28 - 30

Emissions

Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions

GRI 305-7

55

Waste

Waste by type and disposal method

GRI 306-2

55

Supplier Environmental Assessment

New suppliers that were screened using
environmental criteria

GRI 308-1

9

Topic

Indicator

Materials

2022
ANNUALREPORT

Answer, Additional comments,
Reason for omission

Scope 3 figures: 2022 and 2021 calculations include all relevant GHG categories.

142

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Social Performance
Reportingframework

Page NºOccupational health and safety management
systemGRI 403 -1

35-37

Types of injury and rates of injury, occupational
diseases, lost days, and absenteeism, andnumber of work-related fatalities

GRI 403-2

35-37,
58 - 59

Topic

Indicator

Occupational health and safety
Occupational health and safety

Answer, Additional comments,
Reason for omission

Omitted: Health and safety at work are excluded from the scope of negotiation of collective agreements.
The management of these aspects is set within the framework of our internal policies for the preventionof occupational risks, which have evolved extensively in recent years. The negotiations of the agreements
focus instead on finding a balance between the sustainability of employer-employee relations, thecompetitiveness of the plant in question and the fair and proportional updating of the work conditions of
the workforce.

Occupational health and safety

Health and safety topics covered in formal
agreements with trade unions

GRI 403-4

Occupational health and safety

Worker training on occupational health andsafetyGRI 403-5

35 - 37

Occupational health and safety

Promotion of worker health

GRI 403-6

35 - 37

Occupational health and safety

Work-related injuries

GRI 403-9

58 - 59

Occupational health and safety

Work-related ill health

GRI 403-10

58 - 59

Training and education

Average hours of training per year per
employee

GRI 404-1

59

Training and education

Programs for upgrading employee skills andtransition assistance programs

GRI 404-2

32-33, 37, 59

Diversity and equal opportunity

Diversity of governance bodies and employees

GRI 405-1

14, 33-35

Diversity and equal opportunity

Ratio of basic salary and remuneration of
women to men

GRI 405-2

35, 57-59

Non-discrimination

Incidents of discrimination and corrective
actions taken

GRI 406-1

49

Child Labor

Operations and suppliers at significant risk forincidents of child labor

GRI 408-1

49

Forced or Compulsory Labor

Operations and suppliers at significant risk forincidents of forced or compulsory labor

GRI 409-1

49

Human Rights Assessment

Operations that have been subject to humanrights reviews or impact assessments

GRI 412-1

Human Rights Assessment

Employee training on human rights policies orprocedures

GRI 412-2

Our human resources and occupational risk prevention policies regulate the performance of psychosocial risk assessments. These evaluations are conducted by external professionals and represent anessential tool to detect possible situations or cases of discrimination.
32-33, 37, 59
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continued from previous page
Customer Health and Safety

Incidents of non-compliance concerning thehealth and safety impacts of products andservices

GRI 416-2

37, 49Customer Privacy

Substantiated complaints concerning breachesof customer privacy and losses of customer
data

GRI 418-1

49

No non-compliance with the mentioned laws has been recorded.

Socioeconomic ComplianceNon-compliance with laws and regulations inthe social and economic area

GRI 419-1

49-50

No non-compliance with the mentioned laws has been recorded.

2022
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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORTANEXO 3. Spanish Law 11/2018 Index
General information
Reportingframework

Topic

Indicator

Business model

Brief description of the group’s businessmodel: Business environment, Organization
GRI 2-1,and structure, Markets served, Objectives and
GRI 2-2, GRI 2-6, GRI
strategies of the organization, Main factors and 201-2, management
trends that may affect its future development, report (‘business risks’Main risks related to those issues linked to thesection)group’s activities

Materiality

Materiality assessment

EU Taxonomy

2022
ANNUALREPORT

GRI 3-1
GRI 3-2
GRI 3-3

Page Nº3-4

Answer, Additional comments,
Reason for omission
Vidrala, S.A.
Nature of Ownership and Legal Form: Listed, public limited company
Headquarters: Llodio, Álava (Spain)
Countries of operations: Spain (3), Portugal (2), UK and Ireland (2), and Italy (1)Sector: Retail and Manufacturing.
Activities: Manufacturing of glass containers for food and beverage products. Net sales of products:
Main markets: Southern Europe, Western Europe, UK & Ireland

10-12
50 - 54

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VIDRALA, AT A GLANCEMANAGEMENT REPORTFINANCIAL STATEMENTSSUSTAINABILITY REPORT

Environmental information
Topic

Indicator

Reportingframework

Page NºEnvironmental management

Management approach

Spanish Law*

13 - 22

Answer, Additional comments,
Reason for omission
The manufacture of glass is inherently intensive in the consumption of energy as a result of the useof melting furnaces that operate continuously, 24 hours a day, 365 days a year. As a consequence of
the industrial nature of the process, the reduction of the environmental impact associated with it ishighlighted as one of the management’s objectives. All the Vidrala Group’s plants are certified to ISO
14001: 2015. Likewise, 5 of our plants have obtained verification of ISO 14064:2018 and 3 of them the ISO
50001 standards, being another 2 implementing this last one. Furthermore, over recent years, the different
Vidrala Group plants have adapted their corresponding Integrated Environmental Authorisations (IEAs) tothe requirements of the BAT (Best Available Techniques) conclusions defined in the BREF document for
the glass sector and in the Industrial Emissions Directive.

Environmental management

Current and foreseeable effects of thecompany

Spanish Law*

Environmental management

Environmental assessment and certification
procedures

Spanish Law*

13 - 22

Environmental management

Resources dedicated to the prevention ofenvironmental risks

Spanish Law*

13 - 22

Environmental management

Application of the precautionary principle

Spanish Law*

Vidrala allocates the necessary resources to different lines of work in the field of the environment. First,
environmental consulting services are contracted to verify compliance with applicable legal guidelines
at each plant. These services include the necessary support to comply with the filing fees for the annual
legal documentation, modifications in environmental permits, consumption and water discharge taxes,
emissions tax, among others.
We also invest in continuous improvement projects to improve our environmental performance andcontribute to the sustainability of the organization, for example, the zero waste project that will be carriedout in 2022. Along the same lines, we also invest in modifying or replacing facilities that allow us to
improve our environmental impact. For example, renewal of Automatic Measurement Systems to verify
compliance with emissions, new Industrial Wastewater Treatment Stations with the aim of minimizing
water contaminants and increasing water use, noise studies for its minimization, among other projects.

Environmental management

Amount of provisions and guarantees forenvironmental risks

Spanish Law*

Vidrala ensures its environmental risks through insurance policies that are contracted to cover theenvironmental impact in possible situations involving accidents with large-scale losses. The total
indemnity ceiling of these policies amounts to EUR 15 million.

Pollution

Measures to prevent, reduce or repair
emissions that affect the environment

Spanish Law*

In addition to the air pollution data reported in the report, the Vidrala Group follows the applicable state
regulations in all our plants to guarantee the minimisation of the impact of noise and light pollution.

Circular economy and waste prevention andmanagement

Measures for prevention, recycling, reuse, otherforms of recovery and disposal of waste

Circular economy and waste prevention andmanagement

Actions to combat food waste

Sustainable use of resources

Water consumption and water supply inaccordance with local constrains

2022
ANNUALREPORT

GRI 301-2, GRI 306-2

24-26, 38, 4142, 55

Spanish Law*
GRI 303-5

Omitted: This is not a material topic to the Vidrala Group.
26 - 27,
55
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continued from previous page
Sustainable use of resources

Description of the initiatives carried out tominimize water consumption

Spanish Law*

26 - 27

Sustainable use of resources

Consumption of reused water out of total
water consumed

GRI 303-3

26 - 27,
55

Sustainable use of resources

Consumption of raw materials

Spanish Law*3, 23-25, 55

Sustainable use of resources

Measures taken to improve the efficiency of
its useSpanish Law*

23-31

Sustainable use of resources

Energy consumption, direct and indirect

GRI 302-1, GRI 302-3

27 - 28

Sustainable use of resources

Measures taken to improve energy efficiency

Spanish Law*

27 - 30

Sustainable use of resources

Use of renewable energy

Spanish Law*

29 - 30

Climate change

Significant elements of greenhouse gas
emissions generated as a result of thecompany’s activities, including the use of thegoods and services it produces

GRI 305-1, GRI 305-2,
GRI 305-3, GRI 305-4,
GRI 305-7

28 - 29

Climate change

Measures taken to adapt to the consequencesof climate change

Spanish Law*

13 - 22

Climate change

Voluntary medium- and long-term reduction
targets to reduce greenhouse gas emissions
and the means implemented to that purpose

Spanish Law*

6-7, 21, 23

Protection of biodiversity

Measures taken to preserve or restore
biodiversity

GRI 304-3

42

Protection of biodiversity

Impacts caused by activities or operations inprotected areas

2022
ANNUALREPORT

Spanish Law*

2022 data estimated, pending official audit. Under the current procedure, Vidrala performs its own internal
calculation of Greenhouse Gases (GHG). Every year, before February 28, Vidrala is audited by an accredited
entity. Subsequently, the audit report must be submitted to be verified by the national environmental
administration and presented to the European Commission. Once validated, the final calculation is used
to proceed with the delivery of CO2 quotas. Therefore, previous years’ figures may be adjusted.

Omitted: Our materiality assessment exercise determined this was not a material topic to the Vidrala
Group.

147

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Information on employees and social matters
Topic

Indicator

Reportingframework

Page Nº

Employment

Management approach

Spanish Law*

32 - 37

Employment

Number of employees by gender, age, andprofessional category

GRI 2-7, GRI 405-1

56

Employment

Number of employees by country

GRI 2-7

56 - 57

Employment

Number of employees by contract type

GRI 2-7

56 - 58

Employment

Annual average of indefinite and temporary
contracts by gender, age, and professional
category

GRI 2-7

57

Employment

Annual average of part-time contracts bygender, age, and professional category

GRI 2-7

57 - 58

Employment

Number of dismissals by gender, age andprofessional category

Spanish Law*

35, 57-58

Employment

Wage gap

GRI 405-2

57 - 58

Wage gap has been calculated as: [(Average remuneration of women / Average remuneration of men) - 1]
Reported data includes variable remuneration, mainly related to results and productivity, as well as other
remuneration items (such as social benefits, retirement supplement, travel supplements and allowances,etc.). In order to improve comparability, the average remuneration by category does not include amounts
related to multi-year variable remuneration of irregular perception.

Employment

Average remuneration by gender, age andprofessional category

Spanish Law*

57 - 58

Employment

Average remuneration of the Board of
Directors, by gender

Spanish Law*

58

Employment

Average remuneration of Directors, by gender

Spanish Law*

58

Employment

Implementation of labour disconnection
policies

Spanish Law*

35 - 36

Employment

Number of employees with disabilities

GRI 405-1

58

Directors: includes members of the Executive Committee and directors of functional areas. Line managers:
includes middle management staff. Rest of employees: includes the rest of white- and blue-collar workers.

The working time of our employees is broken down into different calendars and work patterns adapted
to meet the needs of each department and/or organisational unit in each plant. This includes considering
fixed working days, flexible working days, telecommuting, fixed shift patterns and rotating shift patterns.
These elements are considered to ensure we are meeting the needs of each department where possible.
The working hours for office employees usually go from 7.30-9.00 am to 17.00-18.30 pm. The direct
workforce group is governed by the cultural and industrial casuistry of each work center, usually in arotating shift regime of 8 or 12 hours of presence.

Work organization

Organization of working time

Spanish Law*

Work organization

Number of absenteeism hours

GRI 403-2

58

Work organization

Measures aimed at facilitating the enjoymentof work–life balance by both parents

Spanish Law*

35 - 36

Health and safety

Health and safety conditions at work

GRI 403-4

35 - 372022
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Answer, Additional comments,
Reason for omission

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Health and safety

Number of work accidents by gender

GRI 403-2

59

Health and safety

Frequency rate by gender

GRI 403-2

59

Health and safety

Severity rate by gender

GRI 403-2

59

Health and safety

Occupational diseases by gender

GRI 403-2

58

Social relationships

Organization of social dialogue, including
procedures for reporting and consulting staff
and negotiating with them

Spanish Law*35, 49Social relationships

Percentage of employees covered by collective
agreements by country

GRI 2-30

35
Omitted: Health and safety at work are excluded from the scope of negotiation of collective agreements.
The management of these aspects is set within the framework of our internal policies for the preventionof occupational risks, which have evolved extensively in recent years. The negotiations of the agreements
focus instead on finding a balance between the sustainability of employer-employee relations, thecompetitiveness of the plant in question and the fair and proportional updating of the work conditions of
the workforce.

Social relationships

Balance of collective agreements, particularlyin the field of health and safety at work

GRI 403-4

Social relationships

Mechanisms and procedures that thecompany has to promote the involvement ofworkers in the management of the company,in terms of information, consultation andparticipation

GRI 2-29

35

Training

Policies implemented in the field of training

Spanish Law*

32-33, 37, 59

Training

Total hours of training by professional category

GRI 404-1

59

Equality

Measures taken to promote equal treatment
and equal opportunities for women and men

Spanish Law*

14, 33-35

Equality

Equality plans, measures adopted to promote
employment, protocols against sexual
harassment and for gender reasons

Spanish Law*

33 - 35, 49

There is a specific protocol against sexual harassment and gender reason, among other threats. The
whistleblowing channel is the way that all communications are received.

Equality

Integration and universal accessibility forpeople with disabilities

Spanish Law*

58

Vidrala has grown in terms of hiring people with disabilities or handicaps, which already account for
about 1% of its workforce. In addition, collaboration has been consolidated with Special Employment
Centres and other external entities, composed of people with reduced abilities or physical and mental
disabilities, who provide certain auxiliary services to Vidrala’s main activity, under the direct coordinationof professionals specialised in monitoring these professionals.

Equality

Policy against all forms of discrimination and,
where appropriate, diversity management

Spanish Law*

33 - 35, 49

2022
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Information on respect for human rights
Topic

Indicator

Reportingframework

Page NºHuman rights assessment

Management approach

Spanish Law*

49

Human rights assessment

Application of due diligence procedures in thefield of human rights

GRI 412-1

36, 49Human rights assessment

Prevention of the risks of violation of humanrights and, where appropriate, measures tomitigate, manage and repair possible abuses
committed

GRI 412-2

49

Human rights assessment

Human rights violations complaints

GRI 412-1, GRI 406-1

49

Human rights assessment

Promotion and compliance with International
Labour Organization Conventions related toassociation freedom respect and the right tocollective bargaining

GRI 102-41

49

Human rights assessment

Elimination of employment discrimination

Spanish Law*

49

Human rights assessment

Elimination of forced labour

GRI 409-1

49

Human rights assessment

Effective abolition of child labour

GRI 408-1

49

Reportingframework

Page NºAnswer, Additional comments,
Reason for omission
Our human resources and occupational risk prevention policies regulate the performance of psychosocial risk assessments. These evaluations are conducted by external professionals and represent anessential tool to detect possible situations or cases of discrimination.

Information on the fight against corruption and bribery
Topic

Indicator

Anti-corruption

Management approach

Spanish Law*50

Anti-corruption

Measures taken to prevent corruption andbribery

GRI 205-1, GRI 205-2,
GRI 205-3, GRI 206-1

13, 50Anti-corruption

Measures to combat money laundering

GRI 205-2

Anti-corruption

Contributions to non-for-profit organizations

2022
ANNUALREPORT

Spanish Law*

Answer, Additional comments,
Reason for omission

Omitted: Vidrala’s business is not included in the list of activities defined as anti-money laundering under
the Spanish Law.
59

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Information on Society
Topic

Indicator

Reportingframework

Page NºCommitment of the company with sustainable
development

Management approach

Spanish Law*

38 - 43

Commitment of the company with sustainable
development

Impact of the company’s activity on
employment and local development

GRI 204-1, GRI 413-1

38 - 43, 49- 50Commitment of the company with sustainable
development

Impact of the company’s activity on local
populations and territory

GRI 413-1

38 - 43

Commitment of the company with sustainable
development

Relationships maintained with the local
communities and modalities of dialogue
adoptedGRI 413-1

38 - 43

Commitment of the company with sustainable
development

Association or sponsorship relations/actions

GRI 102-13

27-2

Subcontracting and suppliers

Inclusion in the procurement policy of social,
gender equality and environmental issues

GRI 308-1, GRI 308-2,
GRI 414-1, GRI 414-2

9

Subcontracting and suppliers

Consideration in the suppliers andsubcontractors’ relations of their social andenvironmental responsibility

GRI 308-1, GRI 308-2,
GRI 414-1, GRI 414-2

9

Subcontracting and suppliers

Monitoring systems, audits and results

Spanish Law*

9

Consumers

Measures for consumers health and safety

GRI 416-1

37, 49Consumers

Complaint systems/channels

GRI 416-2

49

Consumers

Complaints received and resolution

GRI 416-2

60

Tax information

Profits obtained, country by country

Spanish Law*60

Tax information

Taxes paid on profits

Spanish Law*60

Tax information

Public grants received

GRI 201-4

60

Answer, Additional comments,
Reason for omission*Spanish Law 11/2018, of December 28, 2018, as regards non-financial information and diversity.

2022
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151