2.1. ESRS E1. Climate change

• 2.1.1 Interaction with other ESRS
• 2.1.2 Governance
• 2.1.3 Strategy
• 2.1.4. Incident, risk and opportunity management
• 2.1.5. Parameters and goals

Current and potential incidents, risks and opportunities

Negative impact

• Contribution to climate change through GHG emissions generated in own operations (scope 1 and 2) and in the value chain (scope 3).

Positive impacts

• Reducing the carbon footprint through the purchase and integration of renewable energy consumption.
• Reduction and proper management of environmental incidents through the adoption of an Environmental Management System in accordance with the ISO 14001 standard.
• Reducing emissions across the value chain by choosing suppliers that use energy from sustainable sources.

Risks

• Deterioration of facilities and buildings due to disasters caused by climatic events.
• Financial burden due to the implementation of large-scale adaptation projects.
• Water scarcity.
• Increased expenses resulting from regulations that impose taxes on emissions.

Opportunities

• Cost reduction resulting from self-consumption of energy.
• Cost reduction resulting from energy efficiency.

Policies and commitments

• Sustainability policy.
• Climate change policy.
• Environmental management system based on ISO 14001.
• Energy efficiency management system based on ISO 50001

Sustainability goals

• Net Zero 2050 target for scope 1 and 2 emissions.
• Target for reducing the intensity of water withdrawal per meter produced.

Bodies responsible for oversight

• Board of Directors. Appointments, Remuneration and Sustainability Committee, Audit Committee.
• Executive Sustainability Committee.
• Chief Executive Officer.
• Investor Relations, Communications and Sustainability Department.
• Operational Sustainability Department.

2.1.1 Interaction with other ESRS

Although other material aspects of sustainability included in the standard may have been excluded based on the materiality assessment, climate change also affects ESRS E2 – Pollution with respect to ozone-depleting substances, ESRS E3 – Water resources, ESRS E4 – Biodiversity, as well as ESRS E1 – Own staff, ESRS E2 – Workers in the value chain, ESRS S3 – Affected groups, and ESRS S4 – Consumers and end users.

2.1.2. Governance

Integrating sustainability-related performance into incentive systems

ESRS 2 GOV-1, ESRS 2 GOV-3

Climate change is a relevant issue identified in the materiality assessment and, as such, is included in the Group's management and operational processes. It is an essential part of our Sustainability Action Plan. See section ESRS 2 General Information – 1.1.2. Governance.

In this regard, the CEO's and employees' remuneration systems include short- and medium-term non-financial objectives related to sustainability, given its relevance as one of the four strategic pillars, and in particular, related to climate change. See ESRS 2 General Information – 1.1.2. Governance.

2.1.3. Strategy

Transition plan for climate change mitigation

ESRS E1-1

Viscofan updated its transition plan for climate change mitigation in 2024 after having met ahead of schedule in 2023 the target set for 2030 of reducing by 30% the CO₂ emissions intensity of scope 1 and 2 over meters of extruded casings.

Viscofan seeks to ensure that its strategy and business model are compatible with the transition to a sustainable economy and with the goal of limiting global warming to 1.5 degrees Celsius, in line with the Paris Agreement, and that it aims for a significant reduction in direct and indirect emissions. This transition plan was approved by the Board of Directors at its December 2024 meeting.

It is included within the Viscofan Group's Sustainability Action Plan, which seeks to combine the decarbonization of operations with energy diversification by reducing dependence on fossil fuels such as natural gas.

Our ambition is to achieve net-zero greenhouse gas emissions by 2050. The established roadmap has an intermediate target of absolute reduction in the range of 45% to 50% compared to 2018 of the sum of direct emissions (scope 1) and those derived from electricity consumption (scope 2 – market-based) by 2030 (absolute terms).

This objective uses the 2018 emissions figure as a reference (the base year for the rest of the sustainability objectives).

Currently, the Net Zero 2050 Plan does not include Scope 3 emissions. However, having reported this metric for two consecutive years and within the framework of the new 2026-2030 Sustainability Action Plan, Viscofan is evaluating its inclusion. The analysis focuses, due to its relevance, on Category 1 (purchased goods and services) and Category 3 (fuel and energy-related activities). Furthermore, plans are underway to align emissions reduction commitments with the Science Based Targets initiative (SBTi).

Viscofan's Net Zero Plan is based on five strategic pillars:

• Promotion and investment in equipment for the use of green hydrogen, biofuels, and biomass.
• Electrification of operations.
• Promotion of purchasing electricity from renewable sources.
• Implementation of energy efficiency measures.
• Remuneration incentives linked to decarbonization.

The Net Zero plan does not include changes to Viscofan's product portfolio, nor the adoption of new technologies in operations or the value chain, with the exception of those necessary for the production, distribution and use of renewable energy and energy efficiency measures.

The goals were set using the same climate scenarios employed for risk analysis and a constant scope of companies, increased use of renewable electricity worldwide, and greater availability of renewable energy supply at a competitive price.

The objective is based on a priority decarbonization strategy focused on directly reducing emissions. However, even after implementing all planned energy efficiency and replacement measures, a residual percentage of emissions will remain that cannot be eliminated with current technologies. Therefore, to achieve the Net Zero target, Viscofan plans to neutralize these residual emissions, estimated at around 10% of the total, through solutions that will be defined based on technological advancements and best practices, ensuring their alignment with international standards.

The investments associated with this plan have been estimated at €14.5 million through 2030, encompassing electric and biomass boilers, and energy efficiency measures at production facilities. These investments do not represent a significant portion of Viscofan's total asset base, do not constitute a structural transformation of the business model, and have not been identified as a CapEx plan in accordance with the requirements of EU Delegated Regulation 2021/2139.

The various decarbonization levers are expected to achieve a 45% to 50% reduction in scope 1 and 2 GHG emissions by 2030 compared to 2018, based on projects already completed and underway. In the case of green hydrogen and other biofuels, this will depend on their availability at a competitive cost. From 2030 onwards, specific measures will be defined based on available technologies and expected progress.

The initiatives and reduction targets, in absolute terms, are considered achievable provided there is technological availability of hydrogen (primarily), biogas, or other synthetic fuels that do not involve greenhouse gas emissions. The plan does not include locked‑in GHG emissions

At the end of 2025, the Group's scope 1 and 2 (market-based) GHG emissions amount to 455,345 tons of CO₂, representing a reduction of 16.0% compared to 2018, mainly due to the purchase of electricity from renewable sources, and to a lesser extent to the installation of solar panels and energy efficiency measures.

Cogeneration activity

As part of Viscofan's activities, the cogeneration plant located in Cáseda, Spain, sells electricity to third parties that the Group does not use in its casing production process. This electricity sale activity is considered eligible for the European Union's climate change mitigation and adaptation objectives (see section 2.4 of this report). It represents 4.0% of the Viscofan Group's net revenue, which is lower than the threshold established in Article 12(1)(d) to (g) and Article 12(2) of Commission Delegated Regulation (EU) 2020/1818 (Climate Transition Benchmark Regulation). Therefore, Viscofan is not excluded from the EU benchmarks harmonized with the Paris Agreement. See note 18 of the consolidated financial statements.

This plant has cogeneration engines capable of using green hydrogen as fuel, with the use of this renewable energy source planned for 2030. No significant investments were made in cogeneration activity during 2025 (see section 2.4 of the EU Taxonomy) nor are any significant investments planned in the Net Zero GHG 2050 Plan.

Viscofan's exposure to gas-related activities covered by Delegated Regulations on climate change adaptation or climate change mitigation under the Taxonomy Regulation

This information requirement has been reported in section 2.4. European taxonomy of environmentally sustainable economic activities

Incidents, risks and opportunities of relative importance, their interaction with the strategy and business model, and current and anticipated financial effects

ESRS 2 SBM-3, ESRS E1-9 (phased in)

The following details the main IROs, their classification by category and their description, as well as their interaction with Viscofan's business, strategy and financial planning in accordance with the SBM-3 disclosure requirement of ESRS 2.

Negative impact

Contribution to climate change through GHG emissions generated in own operations (scope 1 and 2) and in the value chain (scope 3)

Casing production is a continuous and energy-intensive process, primarily due to the drying phase. However, according to the European Union's environmental taxonomy criteria, 96.0% of Viscofan's business volume has no significant impact on climate change. The only eligible activity is the cogeneration of heat/cooling and electricity using natural gas at the Cáseda plant in Spain. See details of the Viscofan Group's net revenue in note 19 of the consolidated financial statements.

This cogeneration activity is not aligned and therefore does not make a substantial contribution to climate change mitigation based on the technical requirements established by the Taxonomy Regulation, which sets a minimum level of greenhouse gas emissions for a cogeneration activity to be aligned that is technically impossible to achieve with the use of 100% fossil fuel, requiring the mixing of non-fossil fuels and the development of new technologies that would allow such consumption.

However, in its pursuit of decarbonizing its processes, Viscofan is leading the way, with cogeneration engines at its Cáseda plant capable of using green hydrogen as fuel, and has successfully completed tests using this renewable energy source. Furthermore, an electrolyzer has been installed at the Cáseda plant in 2025 to produce green hydrogen, reinforcing our strategy to replace fossil fuels.

Positive impacts

Reducing the carbon footprint through the purchase and integration of renewable energy consumption

The transition to renewable energy sources is a strategic lever within the Viscofan Group's Net Zero GHG 2050 Plan for mitigating climate change. Incorporating electricity from clean sources and progressively replacing fossil fuels with more sustainable alternatives directly reduces greenhouse gas emissions associated with production activities.

This reduction in the carbon footprint not only contributes to meeting climate goals, but also strengthens operational resilience to future regulatory requirements, improves the energy efficiency of processes, and enhances corporate reputation with customers, investors, and other stakeholders.

Viscofan continues to make progress in incorporating renewable energy into its production centers, prioritizing those sites located in countries with favorable regulatory frameworks and availability of adequate energy infrastructure.

Reduction and proper management of environmental incidents through the adoption of an Environmental Management System in accordance with the ISO 14001 standard

Viscofan, within the framework of its Sustainability Action Plan, seeks to strengthen its environmental management mechanisms across all its operations. In this regard, the implementation of an Environmental Management System based on the international standard ISO 14001 is essential to advance in the identification, control, and reduction of environmental impacts, including those related to climate change.

This system provides a framework for driving continuous improvement in areas such as efficient resource use, pollution prevention, responsible waste management, and compliance with current environmental regulations. Thanks to its implementation, Viscofan is successfully establishing a preventative culture in its production facilities.

This environmental management not only mitigates negative impacts, but in parallel with the Net Zero 2050 Plan, it contributes to the transition towards a low-carbon economy.

Risks

Damage to facilities and buildings due to disasters caused by weather events. Physical risk

Description:

Climate change is causing an increase in the frequency and intensity of extreme weather events such as storms, floods, heat waves, hurricanes, among others.

These events can cause significant physical damage to industrial facilities, affect the structural integrity of buildings, disrupt production operations, increase repair and maintenance costs, and lead to productivity losses.

Viscofan has production plants in 13 countries and on four continents, located in regions with diverse climatic conditions, so this identified risk is specific to each site.

Interaction with the strategy and response plan:

Managing this physical risk stemming from climate change is part of the Viscofan Group's risk management system. Within this framework, regular reviews are conducted to assess the exposure of its facilities to extreme weather events, with the aim of identifying specific vulnerabilities at each plant and anticipating potential impact scenarios.

Furthermore, business continuity plans are in place to ensure a swift and effective response to operational disruptions, and insurance coverage is maintained to mitigate the financial impact of potential losses. This proactive and adaptive approach strengthens the Group's ability to protect its assets and guarantee business continuity in an increasingly volatile and uncertain climate environment.

Therefore, Viscofan's approach is based on localized risk management, complemented by periodic vulnerability reviews and contingency plans tailored to each site.

Potential impact:

Viscofan is analyzing the potential impact of climate change-related weather events on its risk management and control system. However, accurately assessing this impact is significantly complex due to multiple factors.

First, risk exposure varies depending on the geographical location of each plant, as climatic conditions and the types of extreme events to which each facility may be exposed differ. Second, there is high uncertainty in both the probability of occurrence and the magnitude of future climatic events, making it difficult to quantitatively estimate the potential impact.

In 2025, there were no weather events that caused damage to facilities or buildings or production stoppages with a material impact on the consolidated financial statements.

Water scarcity. Physical risk

Description:

Rising global average temperatures and altered precipitation patterns are intensifying the risk of water stress in various regions of the world. This situation can lead to reduced water availability, an essential resource for the operation of some industries.

In the case of Viscofan, water plays a key role in various stages of the production process, such as cleaning casings, cooling equipment, generating steam, and humidifying products. Operational continuity therefore depends on a reliable and sufficient water supply.

According to an analysis by the World Resources Institute (WRI), Viscofan operates in several countries where a significant increase in water stress is expected compared to current levels. In these environments, phenomena such as prolonged droughts or water use restrictions could limit access to the resource, directly affecting plant production capacity and reducing the ability to meet demand at certain times of the year.

Interaction with the strategy and response plan:

In response to this risk, Viscofan is strengthening its water management strategies, including improving water use efficiency, internal reuse, diversifying supply sources, and monitoring site-specific water risk indicators. These measures aim to anticipate water scarcity scenarios and ensure operational sustainability in an environment increasingly dependent on the availability of natural resources.

Also, within the 2030 commitments is the reduction in the intensity of water uptake on meters of extruded casings for which Viscofan carries out the measures described above.

Potential impact:

To study the potential impact, the IPCC SSP scenarios and the analysis of the World Resources Institute have been used as a basis.

An analysis of the variation in the level of water stress between 2030 and 2040 has been carried out as an indicator of possible problems of water rationing or scarcity of this resource.

A shortage of raw materials at the plants could lead to production stoppages, resulting in supply disruptions for several days and a potential loss of sales, the quantification of which is complex depending on the various weather scenarios analysed. To mitigate this risk, Viscofan has specific contingency plans in place.

In 2025, the Viscofan Group's plants have not had any water supply problems.

Increased costs stemming from regulations that impose taxes on emissions. Regulatory transition risk.

Description:

Viscofan's production process is energy-intensive, so legislative proposals related to this resource and aimed at mitigating climate change could have a significant impact on the business. In this regard, Viscofan has identified the rise in prices of greenhouse gas emission allowances under the EU Emissions Trading System, and the establishment of this mechanism globally, as a material risk.

Interaction with the strategy and response plan:

Viscofan has a Net Zero Plan for 2050 with an intermediate target of reducing Scope 1 and 2 GHG emissions by 45% to 50% by 2030 compared to 2018 levels, using defined decarbonization levers. See details of the plan in section 2.1.3 of this ESRS and the most relevant actions for the year in section 2.1.4 of this ESRS.

Potential impact:

The increase in the price of greenhouse gas emissions and the extension of its mechanism at a global level has an impact on the Group's operating costs.

To estimate potential impacts, Viscofan has used the IEA Sustainable Scenario and the IEA Current Policies with scenarios of Neutrality (≤2º) and Accelerated Warming (≥4º), which establish an increase in the price of CO₂ emission rights of between 40% and 210% in 2050 compared to current levels, depending on the scenario.

Viscofan, with its plants in Cáseda, Spain, and Weinheim, Germany, is subject to the European Union's greenhouse gas emissions trading scheme, known as EU-ETS. As such, its expenditure on greenhouse gas emission allowances in the current fiscal year amounts to €15.9 million. This cost is detailed in note 21 of the Viscofan Group's consolidated financial statements.

Cost burden due to the implementation of large-scale adaptation projects. Regulatory transition risk.

Description:

High ambition on the part of governments to achieve carbon neutrality can lead to the deterioration of existing energy assets and investment in equipment that uses renewable energy sources or generates fewer carbon emissions.

If the speed of this transition exceeds the equipment amortization period, or requires the adoption of immature energy technologies, it could lead to significant associated costs and investments, as well as a loss of global product competitiveness. This is a risk that has been considered globally in all operations where Viscofan has a presence.

Interaction with the strategy and response plan:

Viscofan, within the framework of the Net Zero 2050 Plan, is seeking to invest in energy equipment that uses renewable energy sources as existing equipment reaches the end of its useful life, as well as to diversify energy sources to achieve greater self-consumption. See details of the Net Zero Plan in section 2.1.3 and the most relevant actions for the year in section 2.1.4 of this ESRS.

Potential impact:

Based on estimates by Krishnan et al 2021, the Net Zero 2050 scenario would require spending on physical assets equivalent to around 7.5% of GDP during the period 2021 to 2050.

Currently, based on the analysis conducted using the IEA's (International Energy Agency) Net Zero Emissions scenario, the commitments made by the governments of the countries where Viscofan operates to transition to low-emission technologies in 2025 have a time horizon longer than the useful life of energy equipment. Furthermore, based on Viscofan's Net Zero GHG 2050 Plan, no significant investments are foreseen to achieve the intermediate targets by 2030, nor are the replacements of existing energy equipment planned.

Opportunities

Promotion of renewable energy and energy efficiency

a. Reduction of costs due to self-consumption of energy

The transition to renewable energy sources for self-consumption represents a strategic opportunity for Viscofan. Installing photovoltaic systems, efficient co-generation, or other distributed generation technologies allows for a reduction in dependence on the conventional electricity grid, mitigates exposure to energy price volatility, and decreases greenhouse gas emissions.

In this regard, Viscofan has agreed with a third party on a photovoltaic PPA for the Cáseda plant, has co-generation equipment, a biomass boiler, and a boiler with the capacity to use green hydrogen and has also installed in 2025 an electrolyser at the Cáseda plant for the production for self-consumption of green hydrogen.

These measures aim to contribute to greater operational stability and a reduction in energy costs in the production process.

b. Cost reduction through energy efficiency

Implementing energy efficiency measures at Viscofan's facilities, such as optimizing thermal processes, improving lighting systems, automating energy consumption, and recovering waste heat, yields tangible benefits in the short term. These actions not only reduce overall energy consumption but also improve operational competitiveness and decrease the carbon footprint.

Reducing emissions across the value chain by choosing suppliers that use energy from sustainable sources.

Within Viscofan's own operations and value chain, raw material use is one of the categories that contributes most to greenhouse gas emissions. In this regard, the energy transition represents an opportunity not only within Viscofan's own operations but also throughout its value chain. Therefore, as part of its Net Zero 2050 Plan, Viscofan is strategically selecting suppliers that use, or aim to use, energy from renewable sources, thereby enabling a reduction in emissions.

Resilience analysis

Based on the analysis of the climate change IROs detailed above, no deterioration of current assets has been identified and no significant investments are contemplated to adapt to the commitments established in the Sustainability Action Plan, nor to the 2030 intermediate commitment of the Net Zero GHG 2050 Plan.

With a longer time horizon, Viscofan has not carried out a detailed resilience analysis as established by ESRS E1 beyond the Net Zero 2050 Plan, which assumes the development of renewable energy production and supply technologies that are not currently available at a competitive cost, and which would mitigate the risk of increased GHG emissions costs and could also represent an opportunity to reduce the current cost of GHGs in Europe.

In the case of physical risks (water supply shortages and weather events), which have not materialized in 2025, Viscofan has a response plan for their anticipation and mitigation detailed above.

Opportunities and risks are continuously monitored using indicators, so that, for example, changes in the economic or legal environment can be identified at an early stage and, if necessary, appropriate response measures can be implemented.

Additionally, when necessary, we take appropriate countermeasures or transfer them to third parties (such as insurers) to the extent possible and economically acceptable.

2.1.4. Incident, risk and opportunity management

Description of the processes for determining and evaluating climate-related incidents, risks, and opportunities of relative importance

ESRS 2 IRO-1

The Viscofan Group's process for determining incidents, risks and opportunities (hereinafter referred to as IRO) has been described in section ESRS 2 – General Information in section 1.1.4.

In the specific case of climate change, Viscofan's risk and opportunity management model is based on the COSO ERM and Task Force on Climate-Related Disclosures (TCFD) recommendations, and on the company's Risk Management and Control Policy, which also takes into account impacts and dependencies.

Viscofan has identified incidents, risks, and opportunities based on its own TCFD recommendations, reference institutions (IEA and IPCC), and the analysis of comparable companies, and which are in line with the typologies detailed in points AR 11 and AR 12 of the ESRS E1. This identification has been carried out in the operations themselves and in the value chain.

To determine which incidents, risks, and opportunities could have a material financial impact on the organisation, the Executive Sustainability Committee has assessed their potential impact, probability, and mitigating actions implemented.

Three global warming scenarios have been analysed: one with high emissions that contemplates greater climate-related hazards (4.0ºC), one in accordance with the limitation of global warming (1.5ºC) and another intermediate one (2.4ºC), with different time horizons for materialization:

• Actual or already materialized in 2025, the one referenced in the financial statements.
• Near or medium-term future: materialization in the next 5 years, applicable to all scenarios that offer projections to 2030.
• Long-term future: materialization in more than five years, applicable to all scenarios that offer projections to 2040 or later.

For physical risks of relative importance, a scenario analysis has been conducted based on specific hypotheses about the external conditions that have led to the occurrence of a particular situation and that could result in a climate-related hazard, especially one involving higher temperatures (4.0°C). This analysis is supported by third-party scientific studies based on relevant climate data and historical trends. This analysis considers the facilities where Viscofan operates.

In the risks and opportunities of transition, the main focus of the assessment is on possible events in a scenario in line with limiting global warming to 1.5ºC based on third-party studies on policies, costs and investments and consumption habits in a world adapted to this situation.

On the other hand, to identify, quantify, and assess the impact of its activity on climate change, Viscofan has relied on the European Union's environmental taxonomy criteria. Based on these criteria, the natural gas-fired co-generation of heat/cooling and electricity at the Cáseda plant in Spain has a negative impact on climate change. This activity is included in Viscofan's Net Zero 2050 Plan, described above.

Policies related to climate change mitigation and adaptation

ESRS E1-2, ESRS 2 MDR-P

Viscofan has specific policies and a management system that integrates the identification of incidents, risks, and opportunities, the definition of emissions reduction targets, and the implementation of measures and systems aligned with the most demanding international frameworks. This approach allows us to move toward the decarbonization of our operations, ensure regulatory compliance, and contribute to the transition to a low-carbon economy.

Climate Change Policy

Fundamental content and principles

Within the framework of its overall Sustainability Policy and in line with the Sustainable Development Goals (SDGs), Viscofan has a Climate Change Policy approved by its Board of Directors. This policy aims to establish its commitment to controlling atmospheric emissions, improving energy efficiency, and implementing a business strategy related to the development of alternative energy sources. It addresses both climate change mitigation and adaptation.

It is available on the Viscofan website in the Corporate Governance – Regulations and Policies section.

It establishes the following basic principles and commitments:

1. Gradually reduce the intensity of greenhouse gas emissions by setting quantifiable and measurable targets.
2. Integrate the climate change variable into internal decision-making and investment processes, as well as into the analysis and management of long-term risks.
3. To seek innovative advances in product design that contribute to providing sustainable solutions, particularly in the use of alternative sources of renewable energy.
4. Implement certified environmental management systems.
5. Introduce circular economy criteria into the company's activities.
6. Promote and adopt energy saving and efficiency measures.
7. Promote awareness initiatives for employees and external stakeholders on combating climate change, aimed at consolidating a culture within the group for the efficient and responsible use of energy and resources.
8. Promote agreements and programs with other stakeholders to leverage knowledge and resources to solve climate-related problems and generate social value.
9. To report transparently on the results and relevant actions regarding the fight against climate change.

Information regarding the scope of the policy and the monitoring and supervision in accordance with ESRS 2 MDR-P has been reported in ESRS G1 Business Conduct, section Business conduct policies and corporate culture.

Environmental guidelines

At Viscofan, we encourage production plants to implement and maintain a third-party certified environmental management system. These systems cover key aspects of environmental management and the circular economy, energy and climate change, pollution prevention, and the responsible use of water.

In this sense, in relation to climate change and energy use, international certifications (such as ISO 14001 for environmental management and ISO 50001 for energy efficiency) are fundamental tools to improve our environmental performance and optimize energy use.

In parallel with the Climate Change Policy and the Net Zero 2050 Plan, guidelines are set that cover the entire Group in this matter.

Within the Group, the Corporate and Local Operational Sustainability Departments are responsible for environmental management systems.

Actions and resources related to climate change policies

ESRS E1-3, ESRS 2 MDR-A

Viscofan's commitment to improving the environment and fighting climate change is evident also in the operational and financial dimension.

Management systems

We are working towards achieving ISO 14001 environmental management certification at all our production plants. By the end of 2025, 74% of our production plants will have this certification, and we plan to certify our Danville plant in the USA and our Rayong plant in Thailand in the short and medium term.

Additionally, Viscofan works to certify, where possible, production plants under the ISO 50001 standard, allowing the plants to improve efficiency, energy-related costs, and greenhouse gas emissions.

The details of the Group's plants with these certificates as at December 31, 2025 are as follows:

Actions and Resources for Energy Efficiency and Combating Climate Change

Reducing energy consumption through new technologies and the availability of renewable energy sources are essential aspects of Viscofan's commitment to contributing to protection against climate change, and these involve carrying out projects and investments.

Based on this, the capital expenditure (CapEx) for projects aimed at combating climate change and improving energy efficiency in 2025 amounts to €3.9 million. These investments have been identified from the list of acquisitions of property, plant and equipment and intangible fixed assets of the Viscofan Group (see notes 5 and 6 of the consolidated financial statements).

The main actions of the year framed within the levers of the transition plan for climate change mitigation (Net Zero Plan 2050) are:

• Promotion and investment in equipment for the use of green hydrogen: The installation and commissioning of a 500 kW electrolyzer for the production of this renewable energy has been carried out at the Cáseda plant (Spain).

The project involves incorporating an electrolysis system that generates hydrogen using electricity from renewable sources. This hydrogen will be used as an alternative to fossil fuels in certain industrial processes at the plant, contributing to a reduction of CO₂ emissions by 480 tons equivalent per year.

• Energy efficiency: At the Weinheim plant (Germany) a project to improve the gas turbine has been carried out, which among other aspects is planned to increase the energy efficiency of said equipment.
• Promotion and investment in biomass equipment: The necessary preliminary work has been completed for the commissioning of a biomass boiler in January 2026. This will allow us to reduce GHG emissions and utilize cellulose casing waste. An estimated annual emission savings of 9,000 tons equivalent is projected.
• Energy efficiency: In different locations of the Group, energy measurement and control systems have been implemented to achieve greater control, use and efficiency in the different energy sources of the production process.

The actions and resources have been financed through the business's cash flow. Viscofan has sustainable financing which, while not specifically allocated to the aforementioned projects, contributes to Viscofan's sustainable performance. See note 15 of the consolidated financial statements.

Environmental training

Being more sustainable and reducing our impact on the environment is everyone's responsibility. In addition to allocating financial resources, measures are also being implemented to promote the Group's values and commitments regarding environmental management among employees, highlighting the implementation of training courses and awareness campaigns as an essential element in terms of the management approach.

2.1.5. Parameters and goals

Goals related to climate change mitigation and adaptation

ESRS E1-4, ESRS 2 MDR-T

Viscofan's Net Zero GHG 2050 Goal

In 2024, Viscofan set a Net Zero emissions reduction target for 2050. This target, developed by the Sustainability Executive Committee, is compatible with the Paris Agreement, and therefore with limiting global warming to 1.5°C, and was approved by the Viscofan Board of Directors at its December 2024 meeting. No stakeholders were involved in setting this target.

This goal has been detailed within point 2.1.3 of this ESRS.

Additionally, no specific targets related to energy efficiency have been established within Viscofan's Net Zero Plan, nor have any specific targets been set for adaptation to climate change.

Viscofan's Net Zero goal focuses on scope 1 and 2 emissions, and excludes scope 3 emissions. These reduction targets are broken down as follows:

Target for reducing GHG emissions intensity

Viscofan also has a goal, established in 2019, of reducing by 30% the emission intensity of scope 1 and 2 greenhouse gases (GHG) on meters of extruded casings with a horizon of 2030 and a base of 2018.

The objective was defined based on the 2018 fiscal year, as it is the reference year used for the various sustainability objectives and the basis for Viscofan's first Sustainability Action Plan. The target applies to all Viscofan Group production plants.

With this goal, as with the Net Zero 2050 Plan, Viscofan seeks to reduce its impact on climate change and the risks arising from it.

For the establishment of this, a production increase has been projected for the denominator (the extruded meters) based on the greater demand for casings expected in line with the historical market growth of 2% to 4% in volumes.

Although it has not been validated through a specific external scientific framework at the time of reporting, the target is consistent with intensity reduction pathways aligned with the transition to a low-carbon economy.

The Sustainability Executive Committee monitors performance against this goal on a quarterly basis, identifying the factors that explain any variations. This Committee also reports regularly to the Board of Directors' Appointments, Remuneration and Sustainability Committee.

The decarbonization levers described in the section of the Transition Plan for Climate Change Mitigation have made it possible to reduce the emissions intensity of scope 1 and 2 emissions per meter extruded by 38% in 2025 compared to 2018 levels. The evolution of the ratio, based on 100 for the year 2018, is as follows:

Target for reducing the intensity of water withdrawal

As a signatory to the United Nations Global Compact, Viscofan is committed to SDG 6: Clean Water and Sanitation. This commitment has been voluntarily formalized by Viscofan based on its Environmental Policy and within the framework of its Sustainability Action Plan, establishing a target for reducing pollution intensity.

This goal is based on reducing by 2030 the intensity of water collection per meter of extruded packaging by 10%, seeking to reduce the risk of climate change in water and improve the efficiency of water use.

The objective was defined based on the 2018 fiscal year, as it is the reference year used for the various sustainability objectives and the basis for Viscofan's first Sustainability Action Plan. The target applies to all Viscofan Group production plants.

The levers to achieve the objective are:

• Development and investment in production technologies with a lower water requirement, mainly in process phases that involve washing the casings.
• Efficiency measures in the use of this resource.
• Reuse, as far as possible, of the water used in the production process.

In projecting this goal, in the denominator (extruded meters) an increase in production based on the higher demand for casings expected in line with the historical market growth of 2% to 4% in volumes.

Although it has not been validated through a specific external scientific framework, the goal responds to an approach of continuous improvement of the use of the resource and the reduction of risks associated with water consumption.

The Sustainability Executive Committee monitors performance against this goal on a quarterly basis, identifying the factors that explain any variations. This Committee also reports regularly to the Board of Directors' Appointments, Remuneration and Sustainability Committee.

Thanks to the projects implemented in recent years, Viscofan has reached the goal set for 2025.

Following this achievement and within the framework of the new Sustainability Action Plan 2026-2030, approved by the Board of Directors, the company has extended its commitment with a new objective: to reduce by 10% the intensity of water captured per meter of extruded casings in 2030 compared to the levels of 2025.

The evolution of the ratio on a base of 100 for the year 2018 is as follows:

Energy consumption and combination

ESRS E1-5

The evolution of internal energy consumption, expressed in MWh, is as follows:

Energy consumption in 2025 shows an increase of 7.7% compared to 2024, driven by increased production activity to meet a greater demand for packaging and to a lesser extent by the incorporation of the companies acquired in Brazil.

Of the energy consumption, the use of renewable energy increased by 13.9%, partly thanks to the greater acquisition of electricity with these characteristics, the increase in photovoltaic generation at the Group's plants, and the boost in the use of renewable fuels.

Energy production

The Viscofan Group has cogeneration facilities at its plants in Cáseda (Spain) and Weinheim (Germany).

This operation allows for greater efficiency in the production of casings from an environmental and cost-efficiency point of view, since the combustion of natural gas allows the generation of both thermal and electrical energy for self-consumption (Germany and Spain) and for sale to the grid (Spain).

Additionally, at the plants in Hasselt (Belgium), Urdiain (Spain) and Suzhou (China), Viscofan has solar panels whose electricity is used to cover part of the energy needs of these plants.

Therefore, the breakdown of energy production divided between renewable and non-renewable is as follows:

Activities in sectors with a high climate impact

Based on NACE sections A, H and L [as defined in Commission Delegated Regulation (EU) 2022/1288], the Group's activities do not fall within sectors with a high climate impact.

However, for greater transparency in information and as it is an indicator used both internally and as a sustainability benchmark, Viscofan reports this energy intensity indicator for the entire Group, calculated as total energy consumption over the net amount of turnover (see note 19 of the consolidated report):

Gross scope 1, 2 and 3 GHG emissions and total GHG emissions

ESRS E1-6

Calculation standard

Scope 1 and 2 emissions are calculated following the criteria defined in the Greenhouse Gas Protocol (GHG Protocol), under the financial control scheme.

Regarding Scope 1 emissions from stationary combustion, emissions corresponding to all GHGs relevant to the company—CO₂, CH4, N2O, HFCs, and SF6—are consolidated as CO₂e, while our processes do not emit PFCs or NF3. Emissions from mobile combustion resulting from transportation fuel consumption within the organisation are also included in Scope 1.

The conversion factors used are:

• Scope 1: the GHG Protocol “GHG emissions from stationary combustion” tool
• Scope 2: For location-based emissions as established by the Intergovernmental Panel on Climate Change (IPCC) or by the applicable administration. For market-based emissions, a conversion factor provided by the supplier is used.

In the case of scope 3 emissions, the criteria established in the Corporate Value Chain Accounting and Reporting Standard (Scope 3) of the GHG protocol have been used.

Scope 1 and 2 GHG emissions

They encompass emissions under the operational control approach, including the companies of the consolidated accounting group defined in section 1.1.1 of this report.

On the other hand, the Viscofan Group does not have minority stakes in companies whose net turnover is material, and therefore, they have not been taken into account for the calculation.

Viscofan's main activity, casing production, is a year-round, continuous process with high heat requirements, especially for casing drying. The main energy inputs used in the process are natural gas, electricity, and steam. Furthermore, Viscofan has not reduced its CO₂e emissions through carbon credits by 2025.

On the other hand, Viscofan, with its co-generation plant in Cáseda, avoids greenhouse gas emissions compared to an equivalent alternative of heating water, producing steam, and generating electricity. The overall activity of the co-generation plant, including the electricity produced and sold to the grid, results in more Scope 1 emissions for Viscofan than the theoretical emissions from producing co-generation steam using conventional boilers.

Scope 3 emissions

For the calculation, Viscofan examined total emissions based on the 15 scope categories established in the GHG Protocol's Corporate Value Chain Accounting and Reporting Standard (Scope 3). The principles of integrity, accuracy, consistency, and transparency were used to determine the significant categories.

Based on this, the following emission categories have been excluded:

• Category 6. Business travel: not included because it is a category of little relevance, less than 5% of total scope 3 emissions based on the preliminary analysis carried out with the collaboration of a third party, limit allowed as an exclusion criterion, and in which Viscofan may have little influence on third parties for the reduction of the same.
• Category 10. Processing of sold products: the casings are used by customers to stuff meat products, representing a small part of the total weight of the final product.
• Category 11. Use of sold products. The use of products sold by Viscofan does not generate direct emissions.
• Category 13. Upstream leased assets: Viscofan does not own any relevant third-party leased assets.
• Category 14. Franchises: Viscofan does not have franchises.
• Category 15. Investments: Viscofan does not hold stakes in companies whose net turnover is relevant enough to be included in the calculation of the Group's scope 3 emissions.

In the analysis of scope 3 emissions, no biogenic CO₂ emissions from the combustion or biodegradation of biomass in the earlier or later stages of the value chain have been identified that are relevant, nor are carbon credits considered.

The following methodology was used to calculate scope 3 emissions for the significant categories:

• 1. Purchased goods and services: includes the emissions associated with the life cycle of all products and services purchased by Viscofan in the reporting year. For raw materials, the primary data is expressed in kg, for water in cubic meters (m3), and for services in euros.
  For product purchase data by weight in kilograms (kg), a mapping of the different item groups was performed in EcoInvent v3.10, searching for the emission factor (kgCO₂/kg) that best fits the name of each item. In cases where there was no specific attributable emission factor, the most general and restrictive one was used.
  For goods and services for which weight data was unavailable, purchase cost data expressed in euros were used. The different item groups were mapped using the Comprehensive Environmental Data Archive (CEDA 6.0) emission factor (kgCO₂/euro) that best fit the item's name. These emission factors were then applied to obtain emissions for each item group.
• 2. Acquired capital goods: This includes emissions associated with the life cycle of acquired capital goods. These are final products with a long useful life and are treated as fixed assets, or as property, plant, and equipment. Emission factors were obtained from the CEDA 6 database, which provides emissions per monetary unit of production for different countries. The different groups of items were mapped to the CEDA 6.0 emission factor (kgCO₂/euro) that best fits the item's name.
• 3. Fuel and Energy Related Activities: This category includes emissions associated with the production and distribution of fuels and energy purchased and consumed by Viscofan that were not included in the Scope 1 and 2 inventories. These activities include emissions associated with the extraction, production, and transport of fuels consumed by Viscofan; and emissions associated with the extraction, production, and transport of fuels used in the generation of electricity, steam, heat, or cooling consumed by Viscofan, as well as losses incurred during transport. The primary data used is consumption in MWh of the various energy sources used in Viscofan's operations. For emission factors in the case of stationary and mobile combustion, data from the UK Department for Environment, Food & Rural Affairs (DEFRA) is used, which provides per-unit emissions for the country, specifically DEFRA "Well-to-Tank" (WTT) data for each fuel type. In the case of electricity, the emission factors of the International Energy Agency (IEA) have been used, which establishes two types of emission factors based on the “Well-to-Tank” (WTT) emissions associated with energy generation and the WTT emissions associated with energy distribution (Transmission & Distribution – T&D) and energy losses in the distribution process (Transmission & Distribution – T&D Loss).
• 4. Upstream transport and distribution: the primary data used were distances traveled in kilometers, load and type of transport, and the emission factors were obtained from the DEFRA database which provides emissions per unit for the country. The method used for the calculation has been based on distance, that is, determining the mass, distance and mode of each shipment, then applying the appropriate mass-distance emission factor for the vehicle used.
• 5. Emissions associated with the waste life cycle: This includes emissions associated with the treatment of waste generated by Viscofan's operations, including wastewater. The databases used to obtain the emission factors were Ecoinvent v.3.10, CEDA 6 Global, and the Catalan Office for Climate Change.
• 6. Employee commuting emissions to the workplace. Based on the Group's average workforce breakdown by geographical location, emission factors obtained from DEFRA, which provides per-unit emissions for the country, have been used.
  The calculation used mobility patterns based on an internal tool developed by a third party (Ecoact – a Schneider Electric group company) based on country-level patterns for each of the geographies in which Viscofan is present.
• Category 8. Emissions associated with leased assets. This category includes emissions associated with the operation of leased assets, specifically real estate, by Viscofan that are not included in the Scope 1 and 2 emissions inventory. In these cases, Viscofan acts as the lessee. The primary data used were the surface area of the assets, based on the lease agreements, from which natural gas and electricity consumption were estimated using average ratios. To calculate emissions from electricity consumption in the leased spaces, the IEA's country-specific emission factors were used. To calculate emissions from natural gas consumption in the leased spaces, a single DEFRA emission factor was used. In both cases, only Scope 1 and 2 emissions from the leased assets are included, in accordance with the requirements of the GHG Protocol, and therefore, emissions related to WTT and T&D are not calculated.
• Category 9. Downstream transport and distribution. The primary data are distances traveled in kilometers and the load transported in kg to customer locations. The calculation method used was distance-based, that is, determining the mass, distance, and mode of each shipment, and then applying the appropriate mass-distance emission factor for the mode of transport used. The emission factors used were extracted from the DEFRA database.
• Category 12. Waste derived from products sold by the organisation: this includes the following:
  • Products from both Traditional and New Businesses that require disposal and treatment at the end of their useful life. The group has a large number of these products in various sizes, with detailed information available in meters. Average reference values for the most relevant product categories were used for conversion to kilograms.
  • Packaging of the products sold, which mainly includes cardboard caddies, cardboard boxes, films and plastic bags and pallets.

Weights were distributed by geographic region according to the quantity of products sold in each region. Based on this information, UNEP's regional destinations for municipal solid waste were considered by continent to calculate the Asia-Pacific, Europe, Middle East and Africa, North America, and South America regions. The DEFRA database was then used for emission factors due to its geographic relevance, and to a lesser extent, the OCCC database was used when a relevant emission factor for a specific type of waste could not be found in the DEFRA database.

Breakdown of GHG emissions

GHG intensity based on revenue

In 2025, the intensity of total GHG emissions (Scope 1, 2 based on location, and 3) relative to total consolidated revenues of the Viscofan Group is as follows:

In financial year 2025, the intensity of total GHG emissions (Scope 1, 2 market-based and 3) relative to total consolidated revenues of the Viscofan Group is as follows:

The consolidated net revenue figure is that of the Viscofan Group, expressed in accordance with International Financial Reporting Standards. See note 19.1 of the consolidated financial statements.

GHG removals and GHG mitigation projects financed through carbon credits

ESRS E1-7

During 2025, Viscofan has not eliminated or stored GHGs resulting from projects in its own operations, nor has it contributed to the upstream and downstream stages of its value chain. It has also not reduced or eliminated GHGs from climate change mitigation projects outside its value chain financed through the purchase of carbon credits.

Internal carbon pricing system

ESRS E1-8

The Viscofan Group does not apply internal carbon pricing systems.