Strategy, value chain, stakeholders

Sustainability strategy

(ESRS 2 SBM-1)

Clearly sustainable is one of the five strategic pillars within our corporate strategy (Business model and strategy 2030+). We adopt a holistic approach to sustainability, with the aim of becoming a recognised partner for sustainability in our industry by 2030. Within our Clearly sustainable strategic initiative, we focus on the sustainable and circular use of resources, the decarbonisation of business activities and our value chain, the development of our employees in a health and safe working environment, as well as legally compliant business practices.

We aim to be acknowledged for innovative and responsible manufacturing processes, as well as for producing high-quality glass containers. We endeavour to use resources and water in closed loops, and to reduce greenhouse gas emissions. Based on our inclusive corporate culture, safe working conditions, and several training and skills development opportunities, we intend to position ourselves as an Employer of Choice.

Vetropack also faces challenges as we advance our sustainability strategy. In our industry, considerable costs are often involved with implementing sustainability measures, especially those related to reducing negative environmental impacts. As a company operating in the B2B sector, we depend on our customers’ willingness to share these costs by accepting higher prices for sustainably produced glass containers. We note that sustainability still remains an important topic but even so, customers’ readiness to pay higher prices for sustainable solutions can be limited.

Vetropack's sustainability targets

We have set the following targets to reduce negative impacts, mitigate risks, increase positive impacts, and make use of opportunities:

E1 Climate change

• Achieve a reduction of 50.4 percent in absolute Scope 1 and 2 greenhouse gas emissions by 2032, compared to 2021 as the base year.
• Reduce absolute Scope 3 greenhouse gas emissions (categories: purchased goods and services, capital goods, fuel- and energy-related activities, and upstream transportation and distribution) 30 percent by 2032 from a 2021 base year.

E2 Pollution

• Vetropack has not yet set any targets related to the material topic pollution of air.

E3 Water and marine resources

• Vetropack has not yet set any targets related to water.

E5 Resource use and circular economy

• Achieve an average recycled content of 70 percent by 2030.

S1 Own workforce

• Achieve a 30 percent quota of women among all employees in management functions by 2032.
• Achieve an average of 25 training hours per employee per year by 2032.
• Achieve a Group-wide Total Recordable Incident Rate (TRIR) of 2.0 by 2030.

S4 Consumers and end-users

• Achieve zero product recalls per year.

G1 Business conduct

• Achieve 100 percent participation of employees in training on compliance, the Code of Conduct, and the Business Ethics Policy.
• Maintain zero cases of corruption and bribery, zero breaches of respective applicable law, and zero complaints or breaches relating to data protection laws.

Vetropack’s contribution to the UN Sustainable Development Goals (SDGs)

Our business model and activities contribute to the following SDGs:

Value chain

(ESRS 2 SBM-1)

The figure below complements Vetropack’s business model (Business model and strategy 2030+) and illustrates our value chain. It also shows the scope of our double materiality assessment and indicates where material impacts, risks and opportunities occur along our value chain.

Raw materials and suppliers

To manufacture our glass packaging, we use the following raw materials:

• Recycled glass (cullet), quartz sand, soda, lime, dolomite, and feldspar
• Colouring agents such as iron, pyrite, chromite and selenium
• Coating materials

Important assets and commodities for our production include:

• Capital goods such as furnaces, glass forming machines, inspection machines and moulds
• Transport and distribution services
• Energy

We have around 5,000 direct suppliers and most of them are located in Europe. They include around 330 strategic suppliers that provide products and services to the entire Group. We operate seven cullet processing plants of our own. Thanks to them, we are able to increase the availability of high-quality cullet and use it as a starting material for new glass containers.

Glass production

We are committed to modern production processes, and we recognise the value of energy-efficient production in proximity to our customers. To manufacture glass, we melt the raw materials at temperatures of around 1,600°C. Shears cut the glass gobs, which are then moulded into the desired shape in the glass forming machines. The moulded products are slowly cooled and tempered to give them their strength. Before our glass containers are packaged and sold, they undergo extensive mechanical and manual quality controls. Management systems and certifications guarantee high product quality and product safety. The finished products are packed on pallets for transportation to customers.

Products and services

As well as manufacturing our glass packaging for the food and beverage industry, we offer our customers a wide range of services as part of our Service plus+ approach. These include consulting and support in various areas: packaging analysis, filling/bottling and closure technology, glass finishing, and labelling. Our technical customer service provides support from the very start of the development process for new glass packaging. Our service team can measure the forces acting on the glass containers during filling, with the help of a sensor. Based on this information, our customers can adjust their filling processes optimally so as to reduce the risk of glass breakage.

Our product portfolio comprises glass packaging for beers and ciders, wines, spirits, soft drinks and foods. Our wide-neck jars, for instance, are ideal for preserving fruit and vegetables. Other highlights of our portfolio include jars for spreadables such as jam, and honey, jars for meat and fish, bottles for vinegar and oil, bottles and containers for sauces and dairy products, as well as containers for baby food. Our customers can access all our glass packaging products in our online catalogue by searching for criteria such as filling volume, shape, colours or closure types.

One of our most important products is our thermally strengthened glass bottle (Rezon). Glass bottles produced using this innovative process are around 30 percent lighter than standard reusable bottles, while at the same time being more resistant to abrasion. These lightweight yet robust glass bottles are already in use as reusable bottles, and they are set to become even more relevant under the Packaging and Packaging Waste Regulation (PPWR).

Customers and consumers

Glass packaging enables people to enjoy food and beverages in the most elegant, safest and most responsible way. We view glass as a sustainable packaging material because it is reusable and recyclable. Glass is inert; there are virtually no interactions between the contents and the packaging. Thanks to its inert properties, glass also provides a secure barrier against external influences, offering optimal protection for food and beverages and ensuring their shelf life. Another reason why glass packaging is gaining popularity is that it does not impair the taste or quality of the beverages and foods it contains.

Vetropack’s customers range from multinational corporations to small manufacturers in the food and beverage industry. Our corporate website showcases various successful collaboration partnerships with our customers that have lasted many years.

Consumers can purchase food and beverages in our glass packaging from retailers and wholesalers, or enjoy them in catering trade outlets. We assume that the majority of consumers are located in Europe, but products such as wine bottles are also exported to other continents. For this reason, we do not have any more precise information on the geographical breakdown of our consumers.

End-of-life and recycling

The local glass collection infrastructure, legislation and consumer behaviour determine what happens to our glass containers after they have been used. In Europe – our largest sales market – glass collection rates vary sharply, as the study by the Close the Glass Loop initiative shows. As a member of the European Container Glass Federation (FEVE), we raise public awareness about the relevance of glass collection. Alongside factors such as cost, transport systems and export behaviour, the glass collection rate also influences the availability of cullet and, consequently, the mix of raw materials in new glass containers.

Stakeholders

(ESRS 2 SBM-2), (S1 ESRS 2 SBM-2), (S4 ESRS 2 SBM-2)

The table below presents our key stakeholders, their interests, the purpose and methods of stakeholder engagement, and the influence of these interactions on our company, business model and strategy. Members of the Extended Management Board are informed of the outcomes of stakeholder engagement at regular management meetings. The Board of Directors is updated on stakeholder engagement as part of the annual sustainability updates.