1.1.1 Basis of presentation

his report explains the relevant aspects identified in the double materiality assessment based on the Viscofan Group strategy called Beyond25 and the new Sustainability Action Plan for the 2022-2025 period, and with a longer time horizon based on the 2030 commitments related to the United Nations Sustainable Development Goals, and on the goals set out in the European Green Pact to overcome the challenges of climate change and environmental degradation which, among others, seeks to achieve climate neutrality in the European Union by 2050.

General basis for the preparation of the sustainability statement and structure

ESRS 2 BP-1

The purpose of this Consolidated Statement of Non-Financial Information and Sustainability Information (referred to interchangeably as the report, sustainability report or sustainability statement) is to provide materially important sustainability information that may substantially influence the decision-making of stakeholders on the Viscofan Group (indistinctly referred to as "Viscofan Group" or "Viscofan"); Viscofan S.A., parent company of the Viscofan Group, (hereinafter referred to as the "Company") measures, monitors and manages the Group's performance, positive and negative impacts on the environment and people and the risks and opportunities that the latter may pose to Viscofan.

It is structured into four specific parts:

General information
Environmental information
Social Information
Governance information

This report covers the period corresponding to the Viscofan Group's fiscal year from January 1 to December 31, 2024. It was prepared by the Board of Directors of Viscofan S.A. on February 27, 2025.

This document has been prepared in accordance with Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council with regard to sustainability reporting standards.

Viscofan has not availed itself of any exemption from disclosure of imminent events or matters under negotiation, in accordance with Articles 19a(3) and 29a(3) of Directive 2013/34/EU.

Scope. Reporting company and value chain

ESRS 1 section 5.1

The scope of this report covers all the companies that are part of the Viscofan Group as at 31 December 2024, detailed in note 2 of the consolidated annual report, with the exception of the companies Brasfibra Industria e Comercio de Derivados do Couro Ltda. and Master Couros Industria e Comercio de Derivados do Couro Ltda, which were acquired in September 2024 with a 60% stake. It is a family business that is in the process of being integrated into the Viscofan Group's sustainability information and reporting systems and with a non-material contribution to the Viscofan Group's total (see note 2.1 of the Viscofan Group's consolidated annual report).

In addition, the materiality assessment detailed in section 1.1.4 of this ESRS and consequently the information in this report covers the materiality impacts, risks and opportunities related to the company through its business relationships upstream and downstream of the value chain. See description of the value chain in section 1.1.3.

Viscofan does not have any significant associates or joint ventures accounted for using the equity method that are part of the value chain.

Classified and sensitive information

ESRS 1 section 7.7

Viscofan has classified certain information as sensitive because it is considered secret, has a commercial value due to this nature and is subject to reasonable measures to keep it secret. On this basis, Viscofan competes globally with companies around the world that are not subject to sustainability reporting standards. Hence, the publication of such information could damage Viscofan's competitiveness and consequently the creation of value in a sustainable manner. The following is considered classified and sensitive information:

ESRS E5. Exact breakdown of raw material consumption.

Disclosures in relation to specific circumstances

SRS 2 BP-2

Time horizons

ESRS 1 section 6.4

The time horizons used in the report, especially for the identification and quantification of incidents, risks and opportunities, coincide with those detailed in ESRS 1 section 6.4.

Short term: Reference period in the financial and sustainability statements
Medium term: From the end of the short-term reference period to five years later
Long term: More than five years

Estimation of value chain and sources of estimation and uncertainty of the result

ESRS 1 section 7.2

The preparation of the report in accordance with Delegated Regulation (EU) 2023/2772 requires the making of judgments, estimates and assumptions in the process of preparing quantitative information.

This section describes the main assumptions advanced about the future and other key sources of uncertainty in estimations made at the reporting date that have a risk of requiring adjustments within the following years. The Viscofan Group has based its assumptions and estimates on the parameters available when the report was prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are duly reflected in assumptions when and as they occur.

Scope 3 emissions

In the case of the calculation of Scope 3 emissions of Viscofan that affect upstream and downstream stages of the value chain, Viscofan has used emission factors from third-party databases in line with the provisions of the GHG Protocol in its estimation, which may undergo future modifications based on the updating of the analysis by the third parties. See description of these sources in ESRS E1 Climate Change, section 2.1.5.

Pollutants

For the quantification of the pollutants reported in the ESRS E2. Point 2.2.2. Viscofan has not used a direct measurement method due to the complexity and variability of industrial processes. As a result, it is difficult to make precise direct measurements at all times in a continuous process such as that of casings.

Importantly, as they rely on estimates, there is an inherent degree of uncertainty in the calculations. This uncertainty can arise from multiple sources, such as variability in operating conditions, model accuracy and the precision of historical data.

Information derived from other legislation

ESRS 1 section 8.2

In addition to Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council, Viscofan has used the following sustainability regulations or standards in preparing this Sustainability Statement:

Law 11/2018, of 28 December, on non-financial information and diversity.

The United Nations Global Compact, of which Viscofan is a partner, has also been used as a reference. In this regard, it is also a progress report on the measures taken by the Group to implement the 10 Principles of the Global Compact, in line with the Global Compact reporting policy.

To contribute to improved climate change reporting, Viscofan has used the Task Force on Climate related Financial Disclosure (TCFD) as a reference, which recommends general elements on which the organisations must focus to manage climate change risks and opportunities, and the Carbon Disclosure Project questionnaire, which includes the TCFD recommendations.

Additionally, section 2.4 of this report complies with the information obligations established by Article 8 of Regulation 852/2020 of the European Union regarding the establishment of a framework to facilitate sustainable investments. This regulation is implemented by Delegated Regulation 2139/2021, which establishes the technical selection criteria to determine under what conditions an activity will be considered to make a substantial contribution to climate change mitigation and adaptation objectives and Delegated Regulation (EU) 2023/2486 in the case of sustainable use objectives and to the protection of water and marine resources, to the transition to a circular economy, to the prevention and control of pollution or to the protection and recovery of biodiversity and ecosystems.

All of this, in accordance with Delegated Regulation 2178/2021, which implements the reporting methodology.

Incorporation by reference

ESRS 1 section 9.1

The following table shows which report disclosure requirements are incorporated by reference. These documents are part of the consolidated management report of the Viscofan Group and comply with the requirements established in ESRS 1 point 120.

ESRS number	Section	Document
ESRS 2 GOV-1	The role of administrative, management and supervisory bodies	Annual Corporate Governance Report
ESRS 2 GOV-3	Integration of sustainability-related performance in incentive schemes	Annual Remuneration Report of the Board of Directors
ESRS 2 GOV-5	Risk management	Annual Corporate Governance Report