Vetropack : Sustainability 2023 (5 MB)

Sustainability

1. Sustainability
2. ESG governance

1. Material topics and SDGs

1. Economic impact

1. Environmental impact

1. Social impact

1. Governance

Sustainability

Our strategy embraces five strategic thrusts, and Clearly sustainable is the first of them: it represents our ambition of becoming Best in Class in Sustainability in our industry by 2030. As we journey towards this des­ tination, we are holding all areas and hierarchical levels of our compa­ ny accountable; we are setting ourselves binding goals, and integrat­ ing sustainability into our business activities.

Our ambition is to position Vetropack as Best in Class in Sustainability in our industry by 2030.

Our Clearly sustainable strategic thrust guides us along the path towards this goal.

We intend to be known for our innovative, ecologically compatible and socially acceptable manufacturing processes and our safe glass products of high quality. To protect the environment, we endeavour to conserve resources and water, close substance cycles, and reduce greenhouse gas emissions. Thanks to an inclusive corporate culture and development of our employees based on continuous learning, Vetropack should be appreciated as an Employer of Choice.

In keeping with Clearly sustainable, we are setting ourselves the following goals for our focus topics:

• Climate protection: 30 percent reduction of CO2 emissions per metric ton of glass produced by 2030 as compared to 2019
• Resources: 70 percent recycled content by 2030
• Water: water stress risks to be identified and goals defined by 2025
• Occupational health and safety: Group-wide TRIR* of 2.0 by 2030
• Diversity, equity and inclusion: vision to be defined and roadmap to be developed in 2024
• Sustainable supply chain to be ensured

* Total Recordable Injury Rate

Sustainability

ESG governance

Sustainability is the first of our five strategic thrusts. To achieve our sus­ tainability goals, we must hold all hierarchical levels accountable and we have to integrate sustainability into our daily business.

Thanks to our glass packaging products that can be recycled an infinite number of times, we pro­ mote sustainable consumption and production patterns - fully in keeping with United Nations Sustainable Development Goal (SDG) 12. Guided by our Strategy 2030, we aim to make this inherent sustainability focus into a living reality, to embrace it, and to convey it to the outside world. To achieve this, we are embedding responsibility for sustainability aspects throughout the entire company and at all levels of the hierarchy.

Responsibility at different levels

The Board of Directors approves the development and implementation of the corporate strategy and reviews annual progress. It may delegate duties to the Management Board, with the excep­ tion of those duties reserved for the Board of Directors by article 716a of the Swiss Code of Obligations (CO). The Management Board acts within the scope of the guidelines issued by the Board of Directors and in this regard, is responsible for the operational management of the Vetropack Group.

The Board of Directors has delegated operational implementation of the sustainability strategy to the CEO. The CEO meets this responsibility, in particular, in his role as a member of the Sustain­ ability Steering Committee which was established in 2022. In addition to the CEO and the Group Sustainability Manager, this body consists of the following management functions: Head of Cor­ porate Development, Chief Commercial Officer, Chief Technology Officer, Chief Supply Chain Officer and Chief Human Resources Officer; it convenes two or three times each year.

The Sustainability Steering Committee defines Vetropack's overarching sustainability ambitions, formulates the targets, develops the action plans, draws up the specific and practical measures to implement them and monitors progress. At least once each year, the Board of Directors is briefed on the work of the Sustainability Steering Committee and progress with implementing the sustain­ ability strategy.

The Group Sustainability Manager, who reports to the Head of Corporate Development, is re­ sponsible for developing targets and action plans. In this role, he is also responsible for verifying the sustainability goals and measuring progress towards attaining them.

Sustainability aspects in performance assessment

The Board of Directors and the Management Board pursue a long-term strategy that is geared to sustainable business success. Sustainability is an integral element of Vetropack's business strate­ gy, as enshrined in our Clearly sustainable strategic thrust; consequently, no separate proce­ dure is in place to assess the Board of Directors' performance based on sustainability criteria. At­ tainment of Vetropack's sustainability targets is acknowledged and assessed once a year.

Key financial indicators are not the only parameters used to measure our Management Board's performance. During the year under review, we introduced a performance indicator that relates to our sustainability targets. As a new feature, the bonus is now dependent on attainment of our occupational safety target as measured with the TRIR (Total Recordable Incident Rate) perfor­ mance indicator. We have taken this step because we are convinced that safe workplace condi­ tions are an important element of our responsibility towards our employees.

Sustainability

Material topics and SDGs

The material topics are the core elements of our sustainability work, and they provide the basis for the related reporting. As stipulated by the legal requirements and standards, we review these material topics at regular intervals: the most recent review was undertaken ahead of the reporting for the 2023 fiscal year. Our appraisal included changes to the regulatory environment, and we aligned the topics even more closely to our core business activities and processes. As in the past, we continue to establish specific links between our material topics and the United Nations Sustainable Development Goals (UN SDGs).

Identifying the material topics is the prerequisite for meeting the requirements of Swiss legislation on non-financial reporting, and for correctly applying the GRI standards. As part of our annual reporting, we review our material topics to ensure that they are up to date and legally compliant.

Updating our material topics

We carried out a comprehensive reappraisal of our material topics in 2022. For each topic, in­ ternal stakeholders determined the financial materiality (risks and opportunities for business suc­ cess) and the impact materiality (effects of business activities on the economy, society and the en­ vironment).

For the 2023 reporting year, management reappraised these topics according to the principles of double materiality. The focal points of this reappraisal were compliance with Switzerland's le­ gal requirements for non-financial reporting, and transparent reporting. For this purpose, we un­

dertook a critical review of the material topics for the 2022 reporting year and identified over­ laps in the subject matter covered. We analysed the content and reassigned it to clearly defined and meaningful material topics. Water was defined as a new material topic, and the concept for addressing it is currently being developed. In the coming years, we plan to determine the expo­ sure of our plants to the risk of water stress, and to develop the necessary measures from these findings.

The restructured material topics for 2023 support transparent reporting, and help us not only with the strategic orientation of our sustainability management but also with identifying challenges and defining future ambitions.

For reporting purposes, we structure our material topics according to economic impact, environ­ mental impact, social impact, and governance. The CO reference table shows the extent to which our material topics cover the non-financial matters required by Swiss legislation (article 964b, Swiss Code of Obligations (CO)).

Materiality matrix

Contribution to achieving the Sustainable Development Goals (SDGs)

The 193 member states of the United Nations decided to adopt the 17 Sustainable Development Goals (SDGs) in 2015. They state the sustainability targets to be achieved throughout the world,

and they provide a frame of reference that covers the different dimensions of sustainability. Not only countries but also companies are called upon to achieve the goals.

By linking our material topics to the SDGs, Vetropack can place the impact of our business activi­ ties to promote sustainable development in the context of the global Sustainable Development Goals, and this approach also allows us to define our own ambitions. When redefining the mate­ rial topics for the current reporting, we also adapted the allocation of the topics to the SDGs. We focus on those SDGs where we can have a significant impact.

We endeavour to establish ourselves as an Employer of Choice, and we promote continuous learning and personal development for our employees by providing a comprehensive learning infrastructure for them, and by investing in opportunities for basic and continuing education and training. By creating a learning organisation, we are contributing to the attainment of SDG 4.

Material topic:

Employee satisfaction

Promote basic and continu­ ing education and training

We foster diversity, equity and inclusion at all levels of the hierarchy by responding to our em­ ployees' needs, addressing any inequalities that may exist, and paying fair salaries and wages. Non-discriminatory working conditions based on transparent processes boost our employees' motivation, engagement, and willingness to perform.

Material topic:

Diversity, equity and inclusion

Create a diverse and inclu­ sive workplace environ­ ment

We make responsible use of water in our production processes by utilising this resource in closed loops. We are committed to systematic monitoring of water withdrawal, water consumption and water discharge, and we comply with the statutory requirements.

Material topic:

Water

Make responsible use of water resources

Sustainability

Economic impact

Vetropack endeavours to achieve the long-term development of our company on a self-financed basis. As we work towards this goal, we take account of the interests of our stakeholder groups as well as the impact of our business activities on the environment and society. To achieve our economic objectives, we design glass packaging according to our customers' specific requirements and we focus on innovative products that meet the highest quality and safety standards.

In this chapter