2.3. ESRS E5. Use of resources and circular economy

• 2.3.1. Incident, risk and opportunity management
• 2.3.2. Parameters and goals

Current and potential impacts, risks and opportunities

Negative impacts

• Waste disposal in the environment as a consequence of the inevitable generation of waste by the Group and in its value chain.
• Contribution to climate change through high emissions from waste incineration.

Positive impacts

• Hiring authorized waste managers for the removal of waste generated at each of the work centers and compliance with legal requirements, as a preventive measure against contamination by hazardous waste.
• Proper segregation and storage of waste generated at each workplace as a preventive measure against hazardous waste contamination.

Risk

• Increased cost of raw materials due to global warming or climate change regulations.

Opportunities

• Developing products with the client that allow for better use of resources.
• Waste recovery. Reduction of management costs and use as a primary energy source.

Policies and commitments

• Environmental policy.
• 100% certification of abaca pulp and paper suppliers in the international certification program (PEFC or FSC) for sustainable forest management.
• Environmental management system based on ISO 14001.

Sustainability goals

• Objective of reducing the intensity of waste disposal.
• Objective of reducing intensity in water collection.

Bodies responsible for oversight

• Board of Directors. Appointments, Remuneration and Sustainability Committee, Audit Committee.
• Chief Executive Officer.
• Executive Sustainability Committee.
• Operations Department.

2.3.1. Incident, risk and opportunity management

Determination and evaluation process

ESRS 2 IRO-1

In the Viscofan Group's dual materiality analysis, described in ESRS 1 and 2 – Requirements and General Information of this report, and supported by ongoing dialogue with stakeholders, the following have been identified as materials: resource inputs, resource outputs linked to products and services, and waste generated.

Based on this analysis, several IROs (Incidents, Risks and Opportunities) have been identified, considering both the Group's operations and the upstream and downstream phases of the value chain. The identification process has integrated resource inputs, including the circularity of material flows, outputs associated with the products, and the waste generated, evaluating its management and destination according to the typologies established in ESRS E5.

Based on this, IROs related to both the transition to a more circular economy and the maintenance of the status quo have been identified. The assessment also considered certain products sold to customers that have circularity implications, as well as the reliance on key resources, especially raw materials of natural origin and water, given the risk of scarcity resulting from climate change.

The description of each IRO details its particular characteristics and the elements used in its examination and analysis:

Incidents, risks and opportunities of relative importance and their interaction with the strategy and business model

ESRS 2 SBM-3

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.

Viscofan's objective is to avoid or mitigate negative impacts and risks by actively deciding how to respond, while at the same time seeking to promote positive impacts and take advantage of opportunities by incorporating them into our strategy.

Notably, for the IROs related to resource use and the circular economy, Viscofan has response plans in place to anticipate, mitigate, or capitalize on potential future financial impacts. Based on these plans, no impairment of current assets has been identified, and no significant investments are planned to comply with the commitments established in our Sustainability Action Plan.

Negative impacts

Impact on the environment and climate change due to waste generation.

• Waste disposal in the environment as a consequence of the inevitable generation of waste by the Group and in its value chain.
• Contribution to climate change through high emissions from waste incineration.

The production of casings is a continuous process whose characteristics generate waste throughout, including viscose, collagen mass, casings discarded during the process, alkaline and acidic waste, and packaging materials used in the various stages of production (primarily cardboard boxes, pallets, and plastic films). Additionally, the Group generates a significant amount of waste, especially sludge, associated with environmental management at its water treatment plants and gas treatment facilities.

Waste generation is an inherent consequence of the Group's activity, derived from the production of waste that cannot be completely eliminated at the source or recovered.

Of the waste generated by Viscofan in its operations, a portion is destined for disposal, that is, those destined for landfill, incineration or other treatment by a third party that are not classified as recovered.

A significant increase could have a negative impact on the environment, both through pollution and increased emissions, thus contributing to climate change. This situation would favor a linear economy instead of a circular one, which is one of the European Union's environmental objectives.

Although Viscofan's main activity, casings, represents a very small part of the industrial GDP in the countries where it operates, an increase in production without seeking to reduce and valorize waste could have a negative impact on the environment in the medium and long term, that is, from 2030 onwards in line with the United Nations Agenda.

This impact has not materialised to a significant extent during the year.. Waste management uses disposal methods determined locally based on local regulations and best practices within the Group, taking into account the characteristics of the production process and the raw materials used.

Viscofan is working to prevent this from happening in the future based on two main elements incorporated into the strategy.

On the one hand, there is the search for more efficient production technology that allows, among other things, a reduction in production waste. Furthermore, as established by the environmental policy, the concept of a circular economy is incorporated into investment decision-making processes and the planning and execution of activities.

Additionally, promoting and seeking in collaboration with third parties a greater recovery of waste through an increase in the reuse of products, or the recycled use after the corresponding transformation, such as composting, or energy recovery as a thermal source.

In this regard, Viscofan has a target for reducing the intensity of waste eliminated on meters of extruded casings (see section 2.3.2 of this ESRS).

Positive impacts

Waste management.

• Hiring authorized waste managers for the removal of waste generated at each of the work centres and compliance with legal requirements, as a preventive measure against contamination by hazardous waste.
• Proper segregation and storage of waste generated at each workplace as a preventive measure against hazardous waste contamination.

Of the waste generated by Viscofan in its operations, 6.0% is classified as hazardous waste, with alkaline and acidic waste originating from the production process of cellulose and fibrous casings being particularly noteworthy.

Managing this type of waste begins with implementing protocols for source separation and safe storage at each workplace, with accurate identification and classification. It also includes physical segregation at the point of generation, the use of approved and labelled containers, the establishment of temporary storage areas, and the registration and traceability of these areas.

Subsequently, the hiring of authorized waste managers for the waste generated at each production plant ensures compliance with local environmental regulations and acts as a preventive measure against pollution from hazardous waste.

The integration of these elements into the Viscofan Group's environmental management system ensures compliance with legal obligations regarding the management of hazardous waste and acts as a preventive mechanism against environmental pollution risks.

Risk

Increased cost of raw materials due to global warming or climate change regulations.

Global warming and climate regulation can increase the price of key raw materials, especially collagen hides. Factors such as heat stress in livestock, reduced availability in some regions, and decreased productivity can limit supply and put upward pressure on prices.

In the specific case of Viscofan, the main risk stems from a reduced availability of bovine collagen hides. Viscofan has diversified sourcing of this raw material across different continents, and although it is a global risk, it may have a greater impact in certain geographic areas.

Specifically, according to IPCC reports and other academic studies, rising global temperatures can cause increased stress for livestock. The cumulative effects of productivity shocks are expected to result in a 7-10% decrease in livestock numbers globally by 2050 if warming reaches approximately 2°C (Boone et al., 2018). This will lead to reduced availability of raw materials in various geographical areas where Viscofan sources collagen hides, primarily from bovine sources. Furthermore, at temperatures above 30°C, animals consume 3-5% less feed for each additional degree of temperature, reducing their productivity and fertility. These consequences of climate change could lead to a lower availability of collagen hides and, consequently, higher prices.

To offset the increased cost of raw materials, Viscofan has mitigation tools:

• Passing on cost inflation through an increase in the selling price to customers.
• Specific Research and Development projects and production testing, promoting the diversification of supply sources and suppliers.
• Investment and development of more efficient production processes with less production waste.

In 2025, Viscofan has not identified any situations of lack of availability of collagen skins due to global warming or climate change regulations.

Opportunities

Development of products that allow for better use of resources.

Viscofan, as a leader in casings, promotes collaboration with customers for the development of products that allow for better use of ingredients and other resources in the production of sausages and other food products.

On the one hand, collagen casings, compared to animal casings, offer greater efficiency and utilization due to their more uniform caliber and the fact that they do not require a washing process prior to use in stuffing. This opportunity is one of the growth catalysts for the casing industry detailed in ESRS 1 and 2, section 1.1.3. Strategy, and one of the pillars of growth for Viscofan in its strategic plan. Based on this, Viscofan seeks to identify replacement opportunities and collaborate with customers in developing applications that enable this.

Viscofan's projected growth in collagen casing volumes in 2025 is partly due to various animal casing replacement projects undertaken.

This initiative also offers the opportunity to develop and promote alternative materials to replace conventional plastics, such as naturally derived polymers that reduce dependence on fossil resources and facilitate their integration into biological cycles, as well as recycled plastics that contribute to closing material loops and reducing post-consumer waste. At the same time, optimizing design by reducing the thickness and weight of plastic products allows for decreased raw material consumption and reduced waste generation.

In 2025, Viscofan did not identify that this opportunity had materialized significantly in the relevant markets where it sells these types of products. Demand for the eFAN line remained moderate.

Waste recovery. Reduction of management costs and use as a primary energy source.

The recovery of waste generated in the production process constitutes a strategic opportunity for Viscofan.

It helps minimize the environmental footprint by reducing the volume of waste sent for disposal.

It also allows for reduced operating costs, decreasing current spending on management and final disposal through its transformation, and reducing dependence on external managers.

On the other hand, it generates added value in operations, by reincorporating materials into the production process and opening up the possibility of marketing them as by-products.

During the year, Viscofan implemented several initiatives that enabled the recovery of waste, thus increasing the percentage of this type of waste within the Group compared to the previous year (see the Actions and Resources subsection of this ESRS). However, no significant material impact on management costs was identified.

Expected financial effects of material risks and opportunities related to resource use and the circular economy

ESRS E5-6. Information requirement introduced gradually

Viscofan does not report this information in the present sustainability report because it is a reporting requirement that was introduced gradually and is therefore exempt from reporting in the current year's sustainability report.

Policies related to resource use and the circular economy

ESRS E5-1, ESRS MDR-P

Environmental Policy

Fundamental content and principles

Within the framework of the general Sustainability Policy and in line with the Sustainable Development Goals (SDGs), Viscofan has an Environmental Policy approved by the Board of Directors.

Both the Sustainability Policy and the Environmental Policy are available on the Viscofan website in the Corporate Governance – Regulations and Policies section.

Among the basic policy principles and commitments, the following stand out:

Mitigating the environmental impact at all stages of decision-making processes, incorporating the environmental dimension and the concept of circular economy into investment decision processes and the planning and execution of activities, promoting their consideration in cost-benefit analyses.

In particular, the Environmental Policy establishes that the development and implementation of its basic principles and commitments will be carried out based on specific policies and the strategies and action plans that are defined for each area of action.

Among other things, it addresses the waste hierarchy, focusing on waste management aimed at reducing landfill waste, an objective that is indirectly related to greater recovery, as well as operational excellence and efficiency that seeks to minimize waste as much as possible.

It addresses elements that are related to impacts, risks and opportunities of relative importance in Viscofan's own operations and throughout the earlier and later phases of the value chain, which have been identified with the dual materiality analysis.

The policy does not explicitly address the transition away from the use of virgin resources, including the relative increase in the use of secondary (recycled) resources; nor the sustainable supply and use of renewable resources.

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.

Viscofan Group Environmental Standard

All Viscofan Group production plants comply with national legislative requirements, and most are ISO 14001 certified. The environmental standard is an important component of the Group's environmental management system.

Actions and resources related to the use of resources and the circular economy

ESRS E5-2, ESRS 2 MDR-A

This section details the main actions carried out in 2025 and those planned in relation to significant impacts, risks, and opportunities related to resource use and the circular economy, as well as the established targets. For each action, the scope is specified (i.e., whether it occurs within Viscofan's own operations or across the value chain), the time horizon (which in most cases is one or two years), and whether and how it encompasses the categories established by point 20 of ESRS E5.

Overall, Viscofan has identified significant projects with a total capital expenditure (CapEx) of €0.7 million for 2025. These investments were 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).

These investments have been financed with cash flow generated by the business. Viscofan has financing with sustainable criteria which, while not specifically allocated to the aforementioned projects, contributes to Viscofan's sustainable performance within the framework of the Sustainability Action Plan (see note 15 of the consolidated report).

Main actions:

With reference to the IROs of this ESRS, in the year Viscofan has carried out actions classified in the following categories defined in point 20 of ESRS E5:

Higher levels of efficiency in the use of technical materials

Water: In 2025, Viscofan implemented several projects that enabled greater water reuse at various plants. Of particular note are:

• In Cáseda (Spain) the reuse of water from auxiliary facilities has been carried out.
• In Hasselt (Belgium) a measuring system has been installed to accurately determine the amount of reused water in a system that uses a storage tank.
• The collagen extrusion plant in Novi Sad, Serbia, has begun reusing water in 2025 thanks to a project in the collagen skin washing phase before its use in the production process.

Raw materials. Collagen skins: Specific Research and Development projects have been developed, focused on industrial scaling and process validation in the plant. These initiatives include pilot tests and trials under real production conditions, with the aim of ensuring the approval of new supply sources and the diversification of strategic suppliers. The approach prioritizes the resilience of the value chain, the optimization of quality parameters, and the reduction of the risk associated with dependence on a single source.

Raw materials: Abaca pulp and paper: This measure takes place upstream in our value chain, specifically with our suppliers, since Viscofan has acquired 100% of these raw materials with sustainable certification. This means that all suppliers are certified by the international certification program (PEFC or FSC), which ensures that the pulp they obtain comes from the sustainable management of trees and forests and, therefore, does not contribute to deforestation.

Higher rates of use of secondary (recycled) raw materials

At the converting plant in Montgomery, USA, a project has been implemented that allows the reuse of mineral oil from the fibrous casing converting process for more than 50% of the machinery used in this type of process.

Implementation of circular business practices as system efficiency measures

Viscofan is constantly seeking more efficient production technologies that will, among other things, reduce production waste in its own operations. To this end, Lean methodologies are being implemented in various production processes. The application of this approach aims to optimize processes, eliminate waste at the source, and standardize practices that prevent inefficiencies. Within the Group, the Ceske Budejovice plant in the Czech Republic has been a pioneer, achieving a reduction in total waste intensity per meter of extruded casing in 2025 compared to 2024.

Optimization of waste management in accordance with the waste hierarchy

The Group has worked on projects at various plants to promote waste recovery. These include:

• At the Danville plant (USA), the recovery of waste that was previously destined for landfill has been made viable. In 2025, this waste began to be processed into compost through a third-party composting program. Thanks to this project, 3,498 tons of this type of waste were sent to the plant for composting during the year.
• Additionally, at the Cáseda plant, the necessary preliminary work has been carried out for the commissioning in January 2026 of a biomass boiler, with an estimated reduction of 4,000 tons of cellulose casing waste, 6.8% of the total waste of the Viscofan Group in 2025.
• At the New Jersey (USA) plant, a project has been implemented to valorize the mass of collagen and other waste generated in the production of collagen casings.

On the other hand, Zero Waste certification has been achieved at Hasselt's plants in Belgium and in Pando, Uruguay. This recognition confirms that both facilities meet the highest standards in responsible waste management, ensuring that more than 90% of the materials generated are destined for reuse, recycling, or recovery processes, thus avoiding disposal.

Waste management improvements have also been implemented at several locations. Of particular note, the Danville plant has seen a comprehensive optimization of its hazardous waste management areas, with enhanced control and safety measures. Furthermore, the labeling system and associated documentation have been improved to ensure complete traceability and regulatory compliance.

Developing products with the client that allow for better use of resources

In the current fiscal year, Viscofan has developed and launched new collagen casings designed to replace animal casings in sausage production, promoting better resource utilization in the food chain. These casings incorporate innovations that optimize industrial performance: some are thinner than previous versions, reducing material consumption per unit, while others replicate the functional and sensory properties of animal casings, guaranteeing the quality of the final product. This advancement contributes to reducing dependence on animal by-products, improving supply stability, and minimizing waste in production processes. This initiative is categorized as achieving higher levels of resource efficiency in the use of technical and biological materials and water (ESRS E5 – 20.a).

Furthermore, Viscofan has promoted the recovery of cellulose casings after their use in sausage making, which are traditionally sent to landfill. The initiative involves collaborating with customers to identify post-consumer waste streams and develop solutions that allow for their recycling or transformation into new resources, such as biofuels or cellulose-based industrial applications. This approach promotes the circular economy, reduces the environmental impact associated with waste disposal, and generates added value from previously discarded materials. This initiative is categorized as an action to optimize waste management in accordance with the waste hierarchy (ESRS E5 – 20.f).

2.3.2. Parameters and goals

Goals related to resource use and the circular economy

ESRS E5-3, ESRS2 MDR-T and MDR-M

Within the commitment to resource efficiency and the circular economy, as established in the Sustainability Action Plan, Viscofan has a target for reducing the intensity of waste disposal and a target for reducing the intensity of water extraction.

Of the categories of goals established by ESRS E5 point 24, the goal of reducing the intensity of waste disposed of by Viscofan is related to the output of resources, and specifically to sub-section e) waste management.

The goal of reducing water withdrawal intensity is related to resource input, specifically to sub-item f) other issues related to resource use or the circular economy. Viscofan does not have any other goals related to the remaining categories. These goals are not based on scientific evidence.

Reduction in the intensity of waste elimination

As a signatory of the United Nations Global Compact, Viscofan is committed to SDG 12. Responsible production and consumption.

With this, the Sustainability Action Plan 2022-2025 has a target of reducing by 30% the intensity of waste disposed of on meters of extruded casings in 2030 compared to 2018.

Thanks to the waste recovery projects implemented in recent years, Viscofan has achieved this goal in 2025.

In this context, and within the framework of the new Sustainability Action Plan 2026-2030, approved by the Board of Directors, the company is expanding its commitment with a more ambitious goal: to reduce by 10% the intensity of waste disposed of per meter of extruded casings in 2030 compared to 2025 levels.

This commitment aims to minimize the environmental impact associated with waste generated in the production process, contributing to climate change mitigation. Furthermore, it represents an opportunity to optimize waste management and enhance its use as an energy source, generating both environmental and economic benefits.

To establish this goal, a production increase has been projected for the denominator (the meters of extruded casings) based on the historical growth of the casings market of 2% to 4% in volumes.

Concurrently, the following have been identified as levers: the development of technologies with greater productive efficiency that includes the reduction of productive waste, collaboration with third parties in the search for recovery solutions, promotion of the use of cellulose waste for use in biomass, as well as better measurement and classification that allow for better recovery.

This goal has no intermediate milestones, and its establishment does not take into account ecological thresholds, allocations for specific entities, and is not based on conclusive scientific evidence.

The objective has been defined based on the year 2025, as it is the reference year of the latest Sustainability Action Plan.

The Sustainability Executive Committee, within its area of competence, monitors the performance of the established sustainability goals on a quarterly basis, identifying the catalysts that justify the variations.

This Committee also reports periodically to the Appointments, Remuneration and Sustainability Committee of the Board of Directors.

The following table, based on 100, year 2018, shows the evolution of this indicator against the two commitments explained above:

Reduction of water intake intensity

Information regarding this goal has been reported in section 2.1.5 of ESRS E1 Climate Change.

Resource inputs

ESRS E5-4, ESRS 2 SBM-1 paragraph 42

The description of the resource inputs of relative importance to Viscofan is:

Raw materials

The description of the main raw materials used by the Group can be found in ESRS 2 point 1.1.3. Strategy.

We require raw material homologation processes and ensure that the highest health and food safety standards are maintained at all stages of production, including in our quality inspections.

Furthermore, a significant portion of them are of natural, biodegradable, or recycled origin.

During 2025, Viscofan consumed over 280,000 tons of technical and bio-based products and materials. Bio-based materials account for 38% of the total weight, defined as those of animal and plant origin, although they required prior processing before being incorporated into Viscofan's production process. In the case of cellulose and abaca paper, 100% of purchases were made from suppliers with international certification programs (PEFC or FSC), which guarantee that the materials come from sustainably managed trees and forests and, therefore, do not contribute to deforestation. Regarding collagen skins, this represents the reintroduction of a byproduct into the food chain. The middle layer, which contains the highest concentration of collagen, is extracted from bovine hides primarily used for textiles and used as raw material to produce edible collagen casings, which in turn serve as an ingredient in sausages.

Viscofan has chosen to omit exact figures on the absolute weight and volumes of raw materials for confidentiality reasons, given that this information is sensitive from a competitive point of view.

The measurement of raw material consumption weight is based on purchase entries recorded in the SAP ERP system. This information is consolidated monthly by the corporate controlling department, adding value and weight according to the defined raw material categories.

For its part, Viscofan, in its commitment to promoting a circular economy, has developed eFAN packaging, which contains up to 95% recycled or bio-based plastic, thus promoting the use of secondary materials. Its contribution to revenue remains small and has not yet had a significant impact on turnover.

Water

In its production plants, Viscofan requires the collection of water for different phases of the process such as washing of casings, cooling, steam production, and humidifying of casings, mainly.

However, in 2025, 15.2% of the water collected at Viscofan's production plants evaporates, is incorporated into the product, or is consumed, while the remaining 84.8% is directed to wastewater treatment plants installed at Viscofan's production plants for treatment before being returned to freshwater surfaces or municipal treatment plants.

For calculating water consumption data, some facilities use information from water supplier invoices, while others rely on readings from water meters installed at the factory's water inlet. This information is standardized and aggregated at the corporate level for reference periods, using cubic meters (m³) as the sole unit of measurement.

In water management, Viscofan focuses its efforts on two fronts. On the one hand, it seeks production technologies that require less water, primarily in process phases involving casing washing. Subsequently, once the water has been used, Viscofan works to improve the quality of the water discharged and understand the risks associated with its availability and use in the areas where it operates.

The data on water intake by source type and consumption calculated as the difference between total intake and discharge are as follows

In this period, water consumption increased by 4.3% compared to the previous period, in a context of greater production activity in the packaging industry. However, the water efficiency and reuse initiatives implemented during the period, as described above, have allowed for a 12.9% reduction in the ratio of water consumption to meters of extruded packaging.

The water reused in the year is as follows:

Packaging

Viscofan's business model is characterized by the sale of ingredients or auxiliary raw materials in large volumes to food production companies, so that the packaging sent to the customer is not individualized by product or unit of use.

It has not been identified as a relevant aspect within Viscofan's materiality assessment, and furthermore, it does not ultimately affect the end consumer. Most of the packaging Viscofan purchases, based on relevance and weight, consists of caddies, boxes, and pallets, packaging used to protect the quality and safety of the casings shipped to the customer.

In 2025, total packaging volume is 16,808 tons. This amount has been calculated using information recorded in the SAP ERP system based on the average weight for each packaging reference, and when this data is unavailable, with an estimate applying theoretical weights to the units of the main packaging families.

Regarding the packaging of raw materials whose purchase is managed by suppliers, Viscofan does not manage information on its weight, nor has it been identified as a relevant aspect in the materiality analysis. Viscofan uses reusable packaging, such as the containers that store the collagen skins; some packaging is biodegradable and recyclable, such as the cardboard boxes that hold the cellulose paper; and to a lesser extent, other packaging is of synthetic origin, for which Viscofan promotes recycling whenever possible.

Machinery, facilities and equipment

The technology required for the casing production process is proprietary and involves the use of machinery, facilities, and equipment developed by Viscofan in cooperation with trusted suppliers. Likewise, the production plants require a range of auxiliary facilities for energy supply and the treatment of waste and emissions.

Resource outputs

ESRS E5-5

Products and materials

The products resulting from Viscofan's production process have been described in ESRS 1 and 2. Cellulose, fibrous, and collagen casings, due to their biodegradability, are not considered of relative importance with regard to the circular economy principles established in paragraph 35 of ESRS E5. However, casings, films, and bags obtained through the processing of plastic polymers are of relative importance with regard to their recyclability.

Given the consumable and single-use nature of our food wraps, the concepts of durability and repairability are not applicable to our product portfolio. The wraps are designed to fulfill their function during the food preparation and consumption process and are not intended to be repaired or reused. Their design adheres to food safety and functionality criteria for a single use cycle.

See below for the materiality assessment in terms of resource use and circular economy for each key product:

Casings, films and bags obtained through the treatment of plastic polymers

These are products obtained through the processing of plastic polymers. According to the European Union's environmental taxonomy criteria, this activity is included as eligible under the objective of transitioning to a circular economy, specifically as the manufacture of plastic packaging, although it does not meet the technical criteria.

Based on this, Viscofan is working to promote the use of renewable and bio-based raw materials and offers the eFAN wrap line. This product contains up to 95% recycled or bio-based plastic material, although sales from this line do not currently represent a significant portion of the Group's net revenue, particularly from wraps and plastic products.

Cellulose and fibrous casings:

This is a plant-based product used by the meat industry in the production of sausages. Its main function is to give the product its shape and appearance during the production process. Before it reaches the end consumer, most of these casings are removed and discarded. Being plant-based, they are biodegradable; however, due to their characteristics, their decomposition can take a long time.

Therefore, Viscofan is working in partnership with several industry entities to add value to cellulose casing waste. Furthermore, in designing new types of products, Viscofan is working, among other things, to develop casings that allow customers to make their production processes more efficient by using fewer raw materials and reducing waste.

Collagen wraps:

This is an animal-derived product used by meat processors in the sausage production process. The technology behind this technology is based on the concept of a circular economy, specifically the bio-recovery of collagen, a byproduct of bovine hide, which is used to produce the casing. These casings give the sausage its shape and appearance, are edible, and mostly become part of the final product, generating no waste when consumed.

Collagen casings are designed to replace animal casings in sausage production, partly because they allow for more efficient use of resources due to greater uniformity of caliber and do not require washing with water at the customer's facilities in the pre-stuffing phase.

Efficient and circular waste management

Viscofan is constantly searching for more efficient production technology that will allow, among other things, a reduction in production waste, as established by its environmental policy.

The production of casings is a continuous process whose characteristics generate waste throughout. This waste includes viscose, collagen mass, casings discarded during the converting process, alkaline and acidic waste, and packaging used in the various stages of production. Additionally, due to environmental management activities at water treatment plants and gas treatment facilities, the Group generates a significant amount of waste, particularly sludge.

The management of generated waste is carried out using disposal methods defined in accordance with applicable local regulations, complemented by the Group's internal environmental and circular economy guidelines.

These procedures are established considering the specific characteristics of the production process, the physical-chemical nature of the raw materials used and the regulatory requirements to guarantee traceability, legal compliance and the minimization of environmental impact.

At Viscofan Group, the management of waste generated in our production processes is carried out in accordance with the principles of circular economy established in ESRS E5, applying criteria focused on recycling and optimizing the use of materials to promote their reintegration into production cycles and their recovery in other circular business models.

Waste measurement is primarily based on weighings carried out by waste management entities, ensuring data traceability and reliability. Classification is based on two criteria: recovery criteria, including reuse, recycling, composting, and energy recovery; and disposal criteria, encompassing landfill, incineration, and other unclassified options. This classification has been defined at the corporate level by the operational sustainability department in accordance with the Viscofan standard, aiming to avoid overlap between reuse and recycling categories. All categories are further differentiated between hazardous and non-hazardous waste.

The methodology applied follows the management hierarchy defined by European regulations, prioritizing prevention, reuse, and recycling over disposal. To this end, criteria such as hazardousness, origin, potential for recovery, applicable circular cycle, and physical state are considered, analyzing flows from both production and auxiliary activities. This allows for the determination of each waste stream's potential for recycling, energy recovery, or reintegration into biological or technical cycles.

The Viscofan production process does not generate radioactive waste as defined in Article 3, paragraph 7, of Council Directive 2011/70/Euratom.

The evolution of waste by type based on the ESRS E5 reporting requirements is as follows:

In 2025, the tonnage of waste increased by 6.7% compared to 2024, in a context of greater productive activity to respond to the increased demand for packaging experienced during the year.

Viscofan works to increase the recovery of waste through greater reuse of products and recycled use after the corresponding transformation (for example, composting or energy recovery as a thermal source).

The consolidation of projects from previous years and the implementation of new ones has allowed the Group to reduce by 21.2% the intensity of waste eliminated on millions of meters of extruded casings and increase the percentage of waste recovered to 60.7% compared to 55.5% of the previous year.