E1 Climate change

Impacts, risks and opportunities related to climate change

(E1 ESRS 2 IRO-1), (E1 ESRS 2 SBM-3)

At present, glass manufacturing relies heavily on fossil fuels such as natural gas and also on carbonated raw materials such as soda, limestone, and dolomite. Vetropack uses significant amounts of natural gas because temperatures of around 1,600°C are required to melt the raw materials. These processes result in Scope 1 greenhouse gas emissions. The electricity consumption needed to power the furnaces and operate auxiliary equipment such as compressors or conveyors causes Scope 2 greenhouse gas emissions. Our most relevant Scope 3 greenhouse gas emissions fall under Category 1: Purchased goods and services, arising from soda and packaging materials; these are followed by emissions in Category 4: Upstream transportation and distribution, including transportation of raw materials by diesel truck from suppliers’ sites to Vetropack’s plants.

Process for identifying and assessing climate-related risks

We identified our climate-related impacts at the same time as we prepared and committed to science-based greenhouse gas emission reduction targets. When we first screened our Scope 3 emissions, we also assessed and calculated greenhouse gas emissions under the Forest, Land and Agriculture (FLAG) standard; such emissions were found to be not material. We also reassessed and validated our climate-related impacts in the course of the Double materiality assessment process.

Vetropack implemented the requirements of the Task Force on Climate-related Financial Disclosures (TCFD) in the 2024 fiscal year. For this purpose, we carried out a multi-stage process to identify potential climate-related risks and opportunities, so as to assess their impacts on our business model and value chain. This process involved internal experts in the fields of sustainability and risk management as well as the Management Board. The starting points were Vetropack’s corporate risk management and the risk matrix. To advance the process, we organised several workshops and involved subject-matter experts from our Risk Management, Sustainability, Legal and Compliance, and Finance teams. We conducted a benchmarking exercise using climate-related risks applicable to our industry peers, as well as a mapping exercise based on risks as proposed by the TCFD framework. We consolidated potential climate-related transition risks and opportunities, which we then assessed using the corporate risk classification scheme. Potential climate-related risks that were rated as very low were descoped and excluded from further assessment. In a series of workshops, we then established where in our value chain climate-related risks and opportunities are most likely to arise. We determined the time horizons for their expected occurrence, and assessed the financial and strategic impacts on our strategy and planning. Financial impacts were assessed using a qualitative approach. Climate-related risks and opportunities were validated by the Management Board and the Board of Directors.

In the double materiality assessment, we took the climate-related risks and opportunities into consideration, and we consolidated some of these (such as the physical risks). We assessed the climate-related risks and opportunities as still valid, but we aligned the classification of time horizons with the ESRS classification, as described under Basis for preparation.

The transition to a lower-carbon economy involves changes relating to policy, legislation, technology, and the market economy. Transition risks entail financial risks, depending on the nature and speed of these changes. The following table shows Vetropack’s material climate-related transition risks, their impact on our business model, and our mitigation actions.

Climate-related transition risks

Successful adaptation to climate change and implementation of mitigation measures can open up opportunities for organisations and positively impact their competitive ability. The extent of climate-related opportunities depends on the region, market, and industry where an organisation operates. Vetropack has identified the following climate-related opportunities.

Climate-related opportunities

Climate-related physical risks

Climate-related physical risks can be event-driven (acute), such as floods – or they may manifest as long-term shifts in climate patterns (chronic), such as temperature increases. Physical risks can have financial implications for organisations because of damage to assets. They require protective measures and corresponding financial investments.

In 2024, Vetropack carried out an analysis of climate-related physical risks using two different tools. One was the WWF Risk Filter Suite, which makes use of a water risk filter and a biodiversity risk filter. This first assessment was complemented by the ThinkHazard! tool, which is based on datasets from the Global Facility for Disaster Reduction and Recovery. This semi-quantitative approach enabled us to determine the likelihood of various climate-related natural hazards, providing a starting point for identifying climate-related physical risks. We considered the geospatial coordinates of Vetropack’s sites, but did not take our supply chain partners into account. While the assessment considered likelihood and magnitude, the duration of hazards was not assessed. The combination of the two tools delivered a picture of Vetropack’s potential exposure to climate-related physical risks. As the scope of both these tools is limited, we have supplemented the assessment of climate-related physical risks with direct experience from our sites. We validated the results of the assessment based on the tools by taking account of local geographical conditions and the occurrence of past impacts or damage due to climate-related physical risks.

Our plants regularly measure water temperature and monitor water quality before discharging water into municipal systems. We minimise water consumption by using water mainly in closed loops. For more information on this, see section E3 Water and marine resources. Due to rising temperatures, we are increasing our cooling capacity and using air conditioning in offices and production sites to reduce our employees’ exposure to heat stress. Because conditions in glass manufacturing are inherently hot, we support our employees by providing adequate supplies of fluids and regular breaks for cooling.

Although floods have affected some of our sites in the past, they did not interrupt our production. Additionally, we have analysed any possible risks of wildfires and landslides, but the likelihood of these events occurring is presently rated as very low to non-existent. Our most relevant climate-related physical risks are also assessed on site by our property damage insurer during risk engineering visits.

Business resilience based on scenario analysis

(E1 ESRS 2 SBM-3)

To gain a better understanding of how material risks and opportunities impact Vetropack’s business model and strategy, we conducted a qualitative scenario analysis to assess the robustness and resilience of our response to potential risks and opportunities. Climate scenarios are hypothetical representations of possible future climate conditions based on different sets of assumptions about variables such as greenhouse gas emissions, socio-economic developments, technological advances, and policy interventions. Scenario analysis can play a key role in strategic conversations about the future – about what might unfold differently from business-as-usual. It helps identify indicators for assessing the external environment and recognising how the environment and society might evolve.

When implementing the TCFD recommendations in 2024, Vetropack analysed several groups of climate scenarios and decided to follow the Shared Socio-economic Pathways (SSP) scenarios, as these are derived from the findings of the Intergovernmental Panel on Climate Change (IPCC) and are based on various Representative Concentration Pathways (RCPs). At the same time, these scenarios also take socio-economic developments into account. Vetropack’s scenario analysis was conducted with a qualitative approach and did not apply mathematical models.

To assess the climate-related risks, as shown in the table below, we considered a high-emission scenario (SSP5) as well as a climate scenario in line with limitation of global warming to 1.5°C. Thus, our assessment of the physical risks was not based exclusively on a high-emission scenario. In such a scenario, however, we identified an increase in the severity of climate-related physical risks and a decrease in climate-related transition risks. On the other hand, in a scenario based on limitation of global warming to 1.5°C, we concluded that the impacts of physical risks would decrease whereas transition risks would increase.

Based on the scenario analysis, Vetropack conducted a qualitative resilience analysis. The scope of this analysis covered the entire value chain, with a focus on our own operations. The impacts of physical and transition risks were taken into account. The analysis was carried out qualitatively, without the use of mathematical models. We considered critical assumptions regarding the transition to a low-carbon economy, such as energy availability and technological developments. Long-term time horizons were applied, as indicated in the table above. We estimated the anticipated financial effects of material physical and transition risks on a qualitative basis.

We assume that in a 1.5°C scenario, single‑use and plastic packaging will be severely limited, while reusable packaging solutions (such as our thermally strengthened glass) will become the standard. In this context, customers and consumers are expected to prefer glass packaging, in particular due to its recycled content and reusable solutions. We also expect that in a 1.5°C scenario, the development of innovative furnaces that favour low-emission technology will be rapid, helping the entire glass packaging industry to switch to low-emission manufacturing processes. Rising fossil fuel prices and high carbon taxes could expose Vetropack to financial risks in a 1.5°C scenario. To reduce the impact of transition risks, we must implement our decarbonisation roadmap. On the other hand, the impacts of physical risks will decrease sharply in the 1.5°C scenario, reducing the need for financial investments in protective infrastructure.

If policymakers, society, and economies fail to implement effective climate mitigation measures and global temperatures rise as the result, the impact of transition risks will decrease, while physical risks will intensify. We expect the effects of climate-related physical risks to become more severe in the long term, especially in case of a high-emission scenario. This leads us to view early planning of prevention and adaptation measures as even more relevant. In a high-emission scenario, supply chain and operational disruptions would become more frequent. Customers and consumers would show little interest in reusable packaging, and glass collection rates would not increase.

Scenario analysis and related resilience analysis are subject to uncertainties. There are various areas of uncertainty: political and geopolitical developments and related risks, the speed of technological development, market trends, regulations, customer preferences and consumer behaviour, and the availability of renewable energy.

Transition Plan

(E1-1)

The strategic actions to address the identified climate-related risks and opportunities, along with our decarbonisation roadmap, are core elements of Vetropack’s transition plan towards a low-carbon economy. In 2024, the Science Based Targets initiative (SBTi) validated Vetropack’s greenhouse gas emission reduction targets.

Vetropack is committed to achieving a reduction of 50.4 percent in its absolute Scope 1 and 2 emissions by 2032, compared to 2021 as the base year. We also aim to reduce absolute Scope 3 greenhouse gas emissions from purchased goods and services (soda and packaging), capital goods, fuel- and energy-related activities, and upstream transportation and distribution by 30 percent within the same timeframe. Our greenhouse gas emission reduction targets are aligned with the goals of the Paris Agreement, which aims to limit global warming to 1.5°C. In addition, we aim to obtain 100 percent of our electricity (across all our operations) from renewable sources by 2032.

To attain these goals, we have developed a transition plan based on the most relevant decarbonisation levers to reach our Scope 1 and Scope 2 climate targets. Some of these decarbonisation levers also impact Scope 3.

Vetropack’s decarbonisation levers

The following chart shows the contribution of each decarbonisation lever towards achieving our Scope 1 and Scope 2 greenhouse gas emission reduction target.

Furnace transition and heat recovery: We continuously monitor the performance of our furnaces. Our most effective decarbonisation lever is the optimisation of our furnaces to improve efficiency, increase the percentage of electricity used, and thereby reduce reliance on natural gas. Furnace repairs and construction of new furnaces give us major leverage to make more efficient use of the natural gas required for the melting processes. When furnaces are rebuilt, we optimise their operating processes so their energy efficiency is improved by 10 to 15 percent. One way we can manage our greenhouse gas and energy-intense assets is by adopting new technologies. Our scope for action here depends on the technology available on the market. Going forward, the availability of government funding will become more important. In addition, we are installing equipment to improve energy efficiency, such as batch preheating (using heat from fumes to preheat raw materials before they enter the furnace) and Organic Rankine Cycles (ORC: generating electricity from the waste heat of furnace fumes).

Renewable electricity: By investing in low-carbon electricity, installing photovoltaic systems and generating our own energy, we become less dependent on external electricity suppliers and thus reduce our exposure to fluctuating energy prices. At the same time, these investments enable us to cut costs. We therefore aim to gradually increase the share of renewable electricity up to 100 percent by 2032, either through sourcing or from our own electricity production. As further measures to increase our percentage of renewable electricity, we buy certified renewable electricity and we plan to sign Power Purchase Agreements (PPAs).

Increase of recycled content: As described in section E5 Resource use and circular economy, we aim to achieve an average recycled content of 70 percent in our glass packaging by 2030. According to the European Container Glass Federation (FEVE), utilising 10 percent of used glass results in savings of about 2.5 percent on energy and 5 percent on CO₂ emissions, as compared to glass production using only non-renewable raw materials such as quartz sand and soda. Increasing the recycled content in our products lowers the energy demand in production and helps mitigate exposure to volatile energy prices.

Electrification of other equipment: We are evaluating the replacement of current equipment that uses natural gas with electric equipment. Examples include working ends, forehearths, and lehrs. Working ends are located downstream of the furnace, and their purpose is to improve the melting process. Forehearths convey the molten glass from the furnace to the various production lines.

Batch optimisation: Increasing the share of cullet is the main factor contributing to the reduction of greenhouse gas emissions generated during the melting process. The maximum achievable cullet content in the batch is limited by technical boundary conditions and is dependent on furnace design, raw cullet quality levels, and glass colour. To achieve further reductions in greenhouse gas emissions related to raw materials, we are investigating innovative material concepts in-house at Vetropack. Possible levers for further GHG emission reduction are:

• Reducing the volume of carbonates (e.g. soda, dolomite) in the batch
• Using decarbonated or synthetic carbonates
• New batch concepts that completely avoid the use of carbonated materials

We are also conducting trials with Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU) technologies. In these processes, the CO₂ produced during glass manufacturing is collected from the furnaces and converted into minerals (CaCO₃, NaCO₃), which can either be reused in the production process (e.g. soda) or stored externally using geological, mineral, or chemical methods.

Rightweighting: As described in section E5 Resource use and circular economy, rightweighting of glass containers ensures that they meet the requirements for quality, design and functionality without the use of unnecessary material. After rightweighting, the glass is thinner, lower in weight, and has a reduced environmental footprint, but performance criteria such as quality, strength and design are maintained. Our thermally strengthened glass (Rezon) is around one third lighter than the glass used in conventional reusable bottles, yet is also more resistant to abrasion. Bottles produced using this manufacturing process save resources and reduce greenhouse gas emissions. So they offer an optimal solution in view of the Packaging and Packaging Waste Regulation (PPWR), and they also support our customers with their transition plans.

Performance improvement: Vetropack’s drive to improve energy efficiency is based on our Performance Improvement Programme (PIP). The PIP aims to achieve economic and ecological efficiency thanks to strategic production planning. It focuses on optimisation of production capacities and optimal utilisation of furnace capacities.

Our Scope 3 target is to achieve a 30 percent reduction in our absolute Scope 3 greenhouse gas emissions by 2032, compared to 2021 as the base year. These emissions fall under Category 1: Purchased goods and services from soda and packaging, Category 2: Capital goods’, Category 3: Fuel- and energy-related activities, and Category 4: Upstream transportation and distribution. With regard to the decarbonisation of raw materials, capital goods and services such as soda, packaging, moulds and logistics, our main focus is on supplier engagement. We ask suppliers to provide information on the footprint of their products and to set greenhouse gas emission reduction targets. The most relevant levers to reduce our Scope 3 GHG emissions are:

• Category 1: Purchased goods and services: minimising carbonated raw materials such as soda, using packaging materials with a lower environmental footprint, replacing virgin foil by foil with recycled content.
• Category 2: Capital goods: recycling moulds.
• Category 3: Fuel- and energy-related activities: switching energy consumption from natural gas to renewable electricity.
• Category 4, Upstream transportation and distribution: switching from diesel to biodiesel and electric trucks for upstream transportation and distribution.

Vetropack also participates in research projects as a member of International Partners in Glass Research (IPGR). Key topics include optimising the composition of raw materials for glass production and testing of new furnace technologies.

To minimise the environmental footprint of our products, we apply the rightweighting approach in collaboration with our customers. We expect our thermally strengthened glass to play an increasing role in reducing the greenhouse gas emissions associated with our products. This packaging solution also supports reusability, in line with the Packaging and Packaging Waste Regulation (PPWR).

Vetropack’s Board of Directors oversees our Clearly sustainable strategic pillar, which included the transition plan. Our greenhouse gas reduction targets and the transition plan are key elements of this strategic focus. Our Sustainability Steering Committee, with the CEO as a member, is responsible for developing and defining climate targets and emission reduction measures. The Committee also oversees implementation of the transition plan. Our Chief Technology Officer proposes the investment budget, which is subsequently approved by the CFO, CEO, and the Board of Directors. Comprehensive information on Vetropack’s climate-related responsibilities is available in the Sustainability governance section.

Vetropack’s transition plan and decarbonisation roadmap are fully embedded in and aligned with our overall business strategy (Business model and strategy 2030+) and our financial planning. The decarbonisation roadmap is also integrated into our long-term investment strategy. Clearly sustainable is the first of the five pillars of our corporate strategy, underscoring this integration. More on our sustainability strategy can be found under Strategy, value chain, stakeholders.

We have identified locked-in greenhouse gas emissions resulting from our assets. The term ‘locked-in emissions’ refers to future greenhouse gas emissions that are expected to occur due to existing infrastructure. In Vetropack’s case, these emissions are associated with existing furnaces that operate primarily with natural gas and have an average lifespan of around 15 years. However, these emissions do not jeopardise the attainment of our greenhouse gas emission reduction targets, because the relevant assets have been accounted for in our transition plan. We acknowledge that such locked-in emissions may contribute to (or exacerbate) transition risks, particularly those related to energy prices and carbon pricing.

We have been working to align our financial activities with the EU Taxonomy (the classification system for environmentally sustainable economic activities). To develop our decarbonisation roadmap in line with the SBTi targets, we calculated the additional investments required to meet those targets. Due to the Omnibus package, we are treating this year as a trial year for sustainability reporting in accordance with the European Sustainability Reporting Standards (ESRS). Therefore, we have decided not to disclose the quantification of investments supporting the implementation of our transition plan. Moreover, we will not disclose objectives for aligning our economic activities with the EU Taxonomy criteria. Vetropack is not excluded from the EU Paris-aligned Benchmarks.

Vetropack made progress with implementing its transition plan during the reporting year. In 2025, the Board of Directors approved the investment for the furnace rebuild in Pöchlarn (Austria). The furnace, scheduled to start up in 2027, will be equipped with an electrical boosting system. Switching from fossil energy to electrical energy will initially reduce the furnace’s GHG emissions by more than 20 percent. In Boffalora (Italy), the decision was taken to invest in a photovoltaic system which will be operational in 2026. The plant is designed to produce peak electrical power of 8.8 MWp. Additionally, the Performance Improvement Programme (PIP) focused on reducing soda consumption across the Group. We established the Rightweighting working group, which has begun work on optimising the weight of our most relevant products. Progress was also made with expanding the use of renewable electricity, and we have started procuring certified electricity, achieving approximately 25 percent renewable electricity by the end of the reporting year.

Policies related to climate change

(E1-2), (ESRS 2 MDR-P)

Vetropack’s Health, Safety and Environmental Policy sets out the company’s approach and actions to fulfill its responsibilities regarding environmental stewardship. As regards climate change, the policy’s primary goal is to reduce greenhouse gas emissions and energy consumption. The policy covers climate change mitigation and energy efficiency.

Our Code of Conduct further reinforces Vetropack’s dedication to protecting the environment and reducing the ecological footprint. While there are no specific technical policies dedicated to climate change, Vetropack implements appropriate measures to address climate-related issues such as energy use and emissions, and we ensure adherence to local legal requirements. The Health, Safety and Environmental Policy currently includes a commitment to reducing the company’s environmental footprint, which encompasses climate change: all employees are expected to take the necessary steps to support responsible energy use and the reduction of greenhouse gas emissions. This policy, applicable to all employees and Business Units, calls for environmental awareness throughout the entire product lifecycle.

Responsibility for execution of the Environmental, Health and Safety Policy starts with the Management Board, and the policy is formally endorsed by the CEO. The Integrated Management System (IMS) department, covering quality, health and safety, environment, and sustainability, coordinates and oversees environmental activities including those related to climate change and energy, and develops guidelines to ensure effective implementation. The Sustainability Steering Committee supervises and directs related initiatives. The Engineering and Production department manages energy and climate-related aspects in production. IMS teams at each site are responsible for implementing the policy in respect of climate change and energy, ensuring that local requirements are met. We implement aspects of the policy relating to climate change as we put our decarbonisation actions into practice so as to achieve our SBTi targets.

Vetropack’s Environmental, Health and Safety Policy does not reference external standards or initiatives, but is aligned with national environmental laws. No external parties were involved in its development. The policy is available to employees through the Integrated Management System but is not published externally. Employees are informed about the policy during the onboarding process, and its provisions are documented and distributed internally with translations provided to ensure understanding across all locations.

Actions related to climate change

(E1-3), (ESRS 2 MDR-A)

The overview below shows our most relevant actions to reduce greenhouse gas emissions. As part of our roadmap to achieve the SBTi targets, we calculated the amount of greenhouse gas emission reductions for each action. However, due to uncertainties and because estimates are included, we decided not to publicly disclose quantitative figures.

Our investments focus on technological innovations that promote the ecological efficiency of our processes. These investments include new furnaces with a higher electrical share. Furnaces lose around one percent of their efficiency every year due to natural ageing. On average, new furnaces deliver 10 percent better energy performance than predecessor models. This means that investments in various optimisation and refurbishment measures for our furnaces are crucial so we can produce more energy-efficiently and achieve our climate targets going forward. This is also why such investments are at the core of our decarbonisation roadmap, which sets out the strategic direction for achieving our climate targets as validated by the Science Based Targets initiative.

(E1-7)

Vetropack does not currently implement GHG removal activities, nor do we finance climate mitigation projects through carbon credits. Consequently, Disclosure Requirement E1-7 GHG removals and GHG mitigation projects financed through carbon credits is not applicable.

(E1-8)

As the glass packaging industry in the EU is subject to the EU Emission Trading Scheme (EU ETS), Vetropack applies an internal carbon price to support furnace capital expenditure (CapEx) investment decision. This carbon price primarily affects furnace operating expenses (OPEX) and is an integral part of the business case calculation. The carbon pricing approach is applied to furnace rebuilds at our sites within the European Union. Consequently, Vetropack’s internal carbon price covers part of our Scope 1 and Scope 2 greenhouse gas emissions. In 2025, Vetropack applied an internal carbon price of 77 Euro per tCO₂. To define the internal carbon price, we use data from several leading analysts in the field of carbon markets and greenhouse gas pricing. These data are collected by FEVE and distributed to its member companies.

Targets related to climate change

(E1-4), (ESRS 2 MDR-T)

Vetropack has set greenhouse gas emission reduction targets in line with the goals of the Paris Agreement. The targets were validated by the Science Based Targets initiative in 2024.

• Reduce absolute scope 1 and scope 2 greenhouse gas emissions 50.4 percent by 2032 from a 2021 base year.
• Reduce absolute scope 3 greenhouse gas emissions (categories purchased goods and services (soda and packaging), capital goods, fuel- and energy-related activities and upstream transportation and distribution) 30 percent by 2032 from a 2021 base year.
• Source 100 percent of renewable electricity (entire operations) by 2032.

Our greenhouse gas emission reduction targets for Scope 1 and Scope 2 cover 100 percent of our greenhouse gas inventory boundaries. As defined in the Science Based Targets criteria, Scope 3 targets must cover at least 67 percent of the greenhouse gas inventory boundaries. In Vetropack’s case, the Scope 3 target includes Category 1: Purchased goods and services (soda and packaging), Category 2: Capital goods, Category 3: Fuel- and energy-related activities, and Category 4: Upstream transportation and distribution. With a time horizon of 2032, our climate targets are defined as near-term targets; consequently, we do not have any interim targets.

We calculated our greenhouse gas emissions by applying the Greenhouse Gas Protocol and the SBTi methodologies. We did not use a sectoral decarbonisation pathway to derive our targets, because no such standard exists for our industry. When setting the targets, we took underlying climate and policy scenarios and future developments into account, as these considerations influence our ability to reduce greenhouse gas emissions.

Key input factors for our Scope 1 and Scope 2 target included energy consumption, raw material consumption, and supplier-specific emission factors regarding electricity. For our Scope 3 target, the most important input data comprised: quantities of purchased raw materials and packaging, expenditure on purchased goods and services, capital goods, energy consumption, goods transportation distances, quantity of waste, commuting distances, business travel expenses, leased assets, energy consumption for processing and use of products, quantity of products sold, and related emission factors.

Our greenhouse gas inventory, its system boundaries and the respective targets have been reviewed and validated by the Science Based Targets initiative in 2024. We chose 2021 as the baseline year because it is representative of the activities covered. In 2021, our site in Moldova was already part of the Group, and the Ukrainian site was fully operational. Vetropack also involved its strategic customers in the target-setting process.

The following table shows the progress towards achieving the GHG emission reduction targets compared with the 2021 base year:

Compared with the 2021 base year, Vetropack reduced its Scope 1 and Scope 2 GHG emissions by 13 percent. For the Scope 3 target (Category 1: Purchased goods and services, soda and packaging; Category 2: Capital goods; Category 3: Fuel- and energy-related activities; Category 4: Upstream transportation and distribution), Vetropack’s GHG emissions increased by 14 percent between the 2021 base year and 2024. This increase is due to the use of more accurate emission factors for the calculation of Scope 3 emissions since 2023. As a result, comparability with the base year is limited. Vetropack is considering recalculating the base year value in the future. As described later in this chapter, Vetropack’s Scope 3 GHG emissions are reported with a one‑year delay.

Metrics related to climate change

Energy consumption

(E1-5), (ESRS 2 MDR-M)

Reporting principles: Vetropack’s energy consumption metrics cover our own operations, with the exception of leased locations in Zagreb and Bucharest. These office locations are rented and not under Vetropack’s operational control. Energy consumption metrics include heating and stationary combustion sources such as furnaces, working ends, forehearths and lehrs. They also cover the vehicle fleet (owned and leased vehicles) and equipment such as forklifts, dumpers and front loaders. Fugitive emissions are included, too.

Energy consumption is calculated by multiplying the fuel consumption (e.g. in litres or Nm³) by the lower heating value LHV (net calorific value NCV) of each fuel and converting the result into MWh. Fuel consumption from crude oil and petroleum products includes the consumption of light fuel oil, petrol and diesel. In our understanding, fuel consumption from natural gas includes natural gas, CNG (compressed natural gas) and LPG (liquefied petroleum gas). Energy consumption from nuclear sources is determined by first considering contractual instruments for electricity with specified attributes (if applicable) and subsequently multiplying the remaining grid‑delivered electricity by the nuclear share of the electricity mix. The consumption of self‑generated non‑fuel renewable energy relates exclusively to electricity generated by the Group’s own photovoltaic installations. The 2024 and 2025 energy data are based on actual measured values.

The main petroleum‑based products consumed are diesel and petrol for the vehicle fleet, and light fuel oil for stationary combustion. The 17 percent decrease between 2024 and 2025 is attributable to the fact that, in 2024, Vetropack Straža used a significant amount of diesel due to a two‑day natural gas outage. Fuel consumption from natural gas (including liquefied petroleum gas) increased slightly (+2 percent) between 2024 and 2025 due to an overall increase in production. The consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources decreased by 27 percent due to changes in the volume of purchased electricity from renewable sources. The decrease in consumption from nuclear sources (–15 percent) is due to an increase in energy consumption from renewable sources. As a result of increased purchases of electricity from renewable sources (e.g. Power Purchase Agreements) the overall consumption of purchased or acquired electricity from renewable sources increased significantly (+4,610 percent). Total energy consumption from renewable sources also increased significantly, by 3,336 percent. Non‑renewable energy production (related to heat recovery) increased (+47 percent) due to higher production levels in Kremsmünster, Pöchlarn, Kyjov and Gostomel, as well as new energy production in Boffalora. Renewable energy production increased due to higher renewable energy generation related to the photovoltaic plants at Vetropack Straža (+114 percent). Overall, total energy consumption increased by 2 percent between 2024 and 2025. Due to a decrease in net revenue, energy intensity per net revenue increased by 10 percent.

The total energy consumption figure for 2024 slightly differs from the value published in the Annual report 2024. This is primarily due to the fact that under previous reporting in accordance with GRI, no distinction was made between lower heating value and higher heating value. In addition, alignment with the EU Emissions Trading System (EU ETS) and the increased availability of site-specific data have improved the accuracy of the reported figures.

Greenhouse gas emissions

(E1-6), (ESRS 2 MDR-M)

Reporting principles: Vetropack’s greenhouse gas inventory is calculated in accordance with the Greenhouse Gas Protocol Corporate Standard. The operational control approach has been applied. Emission factors for Scope 1 GHG emissions from fuel combustion are either supplier-specific (primary emission factors provided by fuel suppliers or determined through laboratory analysis) or derived from the DEFRA GHG Conversion Factors dataset (2025 dataset for reporting year 2025 and 2024 dataset for 2024). Scope 1 process emissions relate to the decomposition of carbonate raw materials (soda, limestone and dolomite). These emissions are calculated in line with EU ETS monitoring requirements using material-specific calculation methods. Emission factors used for the calculation of Scope 2 location-based GHG emissions are based on country-specific electricity grid factors published by the International Energy Agency (IEA) (2025 dataset for 2025 and 2024 dataset for 2024). Scope 1 covers direct GHG emissions from sources owned or controlled by Vetropack, including stationary combustion (primarily natural gas), process emissions from carbonate decomposition in raw materials (mainly soda, limestone and dolomite), mobile combustion from the fleet, and fugitive emissions from refrigerant leakages. Scope 2 market-based GHG emissions are calculated using supplier-specific emission factors as provided by Vetropack’s energy providers. Where supplier-specific emission factors or contractual instruments are not available, residual mix factors are applied. Market‑based Scope 2 emissions are determined by considering the following sources and contractual instruments: self‑generated electricity (e.g. from photovoltaic installations), energy attribute certificates, which are contractual instruments used for the purchase of bundled or unbundled electricity with specific attributes, green energy tariffs, the quantity of grid-supplied electricity, supplier‑specific emission rates or, where these are not available, residual mix emission factors or location‑based emission factors.

Vetropack reduced its combined Scope 1 and Scope 2 GHG emissions covered by the SBTi target by 4.5 percent between 2024 and 2025. The main driver of this reduction was the purchase of electricity from renewable sources. Scope 1 GHG emissions increased slightly between 2024 and 2025 due to an increase in production. These emissions arise from the combustion of natural gas and process emissions, as well as from the combustion of other fuels (light fuel oil, diesel, petroleum, liquefied petroleum gas) and fugitive emissions (refrigerant leakages). The reduction in the percentage of Scope 1 GHG emissions covered by regulated emissions trading schemes is related to the closure of the production plant in St‑Prex in 2024. Vetropack’s Scope 2 GHG emissions (location‑based) decreased due to lower emission factors. Scope 2 GHG emissions (market‑based) decreased by 31.2 percent as a result of the purchase of electricity from renewable sources.

Total Scope 1 and Scope 2 GHG emissions for 2024 deviate by 0.8 percent compared to the values published in Annual report 2024. As described under energy consumption, the lower heating values (LHV) of fuels were applied for the calculation of energy consumption. In addition, alignment with the EU Emissions Trading System methodology and the increased use of site-specific data improved the accuracy of Scope 1 emissions. The slight change in Scope 2 emissions is primarily attributable to the use of 2024 market-based emission factors, whereas the previously published 2024 figures were calculated using 2023 emission factors due to data availability constraints.

Reporting principles: Vetropack’s Scope 3 GHG emissions were calculated in accordance with the Greenhouse Gas Protocol (Corporate Value Chain (Scope 3) Accounting and Reporting Standard). The reporting of Scope 3 GHG emissions is subject to a one‑year time lag. Consequently, it is currently not possible to disclose the aggregate Scope 1, 2 and 3 GHG emissions for the 2025 reporting year, as required by the ESRS.

Category 1 Purchased goods and services includes greenhouse gas emissions arising from the production of purchased goods and services, such as raw materials, packaging materials and externally sourced services. Emissions were calculated using activity-based data for raw materials and packaging and spend-based data for indirect spend. Emission factors were sourced from Ecoinvent.

Category 2 Capital goods covers GHG emissions associated with the manufacture of capital goods, including machines and equipment, moulds, buildings, furnaces and refractories. Emissions were calculated using spend-based data and emission factors provided by the U.S. Environmental Protection Agency (EPA) and Exiobase.

Category 3 Fuel- and energy-related activities includes GHG emissions from fuel and energy related activities not included in Scope 1 or 2, arising from the purchase of natural gas, electricity and other fuels as well as energy‑related activities not included in Scope 1 or 2, arising from the purchase of natural gas, electricity and other fuels. Emissions were calculated using activity-based data based on fuel and energy consumption (MWh and litres). Emission factors were sourced from CO2emissiefactoren.be and the International Energy Agency (IEA).

Category 4 Upstream transportation and distribution comprises emissions from inbound and outbound transportation of goods by road, rail and sea under the control of Vetropack. Emissions were calculated using activity-based data based on transport mode. Emission factors were sourced from the Ecoinvent database and the Global Logistics Emissions Council (GLEC) framework. Inbound transportation was allocated across transport modes based on estimated modal splits for each major raw material category. Outbound transportation was calculated based on assumed modal splits.

Category 5 includes GHG emissions from waste management activities, such as recycling, incineration and landfilling of operational waste. Emissions were calculated using activity-based data based on quantities of waste generated, including waste streams and wastewater. Emission factors were sourced from DEFRA and ADEME.

Category 6 Business travel covers GHG emissions from business travel, including car rental, air travel, and hotel services. Emissions were calculated using spend-based data and emission factors sourced from the U.S. Environmental Protection Agency (EPA), Market Economics Limited, and Exiobase. Allocation across travel modes was based on estimated spending patterns and external survey data.

Category 7 Employee commuting includes GHG emissions from employee commuting using private cars or public transportation. Emissions were calculated using activity-based data based on the number of employees and estimated commuting patterns. Emission factors were sourced from CO2emissiefactoren.nl. Assumptions regarding working days, transport modes, and average commuting distances were applied.

Category 8 covers GHG emissions from leased warehouses used to store goods and from leased offices in Zagreb and Bucharest. Emissions were calculated using a combined approach based on spend-based data for leased warehouses and activity-based data for leased office space. Emission factors were sourced from the U.S. Environmental Protection Agency (EPA) and the International Energy Agency (IEA).

Category 9 Downstream transportation and distribution includes GHG emissions from the transportation and distribution of products to customers and managed by the customers (so called ‘self-pickers’) and from retail-related activities. Emissions were calculated using activity-based data based on tonne-kilometres of downstream transportation. Emission factors were sourced from the Ecoinvent database and the Energy Information Administration (EIA). Downstream transportation was assumed to be predominantly conducted by road transport.

Category 10 Processing of sold products covers emissions arising from the processing of sold products, including the filling of packaging by filling companies and the decoration of bottles. Emissions were calculated using activity-based data based on energy consumption and volumes of processed glass. Emission factors were sourced from the International Energy Agency (IEA) and the GHG Protocol.

Category 11 Use of sold products is not applicable, as Vetropack’s products do not generate greenhouse gas emissions during their use phase.

Category 12 End-of-life treatment of sold products includes GHG emissions from the recycling, incineration and landfilling of Vetropack’s products at the end of their life cycle. Emissions were calculated using activity-based data based on volumes of glass placed on the market. Emission factors were sourced from DEFRA. End-of-life treatment pathways were allocated across recycling, landfill, and combustion based on data from FEVE.

Category 13 Downstream leased assets covers GHG emissions from residential properties leased in Switzerland. Emissions were calculated using spend-based data based on rental amounts. Emission factors were sourced from the U.S. Environmental Protection Agency (EPA).

Category 14 Franchises is not applicable, as Vetropack does not operate franchises.

Category 15 Investments includes emissions associated with Vetropack’s investment in the company Austria Glass Recycling. Emissions were calculated using activity-based data based on the number of employees and office floor space. Emission factors were primarily sourced from CO2emissiefactoren.nl and the International Energy Agency (IEA).

Vetropack managed to reduce its Scope 3 GHG emissions by 6 percent between 2023 and 2024, with a 9 percent reduction within the GHG emissions reduction target boundary (Category 1: Purchased goods and services – soda and packaging; Category 2: Capital goods; Category 3: Fuel- and energy-related activities; Category 4: Upstream transportation and distribution). The largest reduction (–51 percent) was achieved in Category 2, mainly due to lower expenditure on capital goods such as machinery and equipment. GHG emissions in Category 1 decreased by 2 percent, primarily as a result of reduced purchases of soda and lower indirect spend. Emissions in Category 3 increased slightly (+3 percent) due to higher production volumes. Category 4 emissions increased by 4 percent as a result of higher activity data. Besides the categories included in our Scope 3 target, GHG emissions related to business travel decreased (–28 percent).

As a company in the glass packaging industry, Vetropack does not generate biogenic emissions, as it neither combusts biomass nor uses processes involving the biodegradation of biomass.

Total GHG emissions intensities per revenue increased due to a decrease in revenue.