2.3.ESRS E5. Resource use and circular economy
In a world where consumption habits can lead to the use of unsustainable materials, at Viscofan a very significant part comes from raw materials considered to be renewable, i.e. of natural origin, or are biodegradable or come from raw materials that have already been recycled. Thus, 84% of our revenue comes from the sale of products with these characteristics.
However, Viscofan also considers how sustainability issues impact not only on its own operations but also along the value chain: raw materials, packaging, and help given to customers in their sustainability challenges and, in this sense, looking for circular solutions through better sustainability performance that impacts the entire value chain.
Current and potential impacts, risks and opportunities
Positive
- Recovery of waste in the production process
- Recovery of cellulose casing waste at the customer.
- Customer and consumer preference for casings of natural or biodegradable origin.
- Development in collaboration with the customer of products that enable a better use of resources.
Negative
- Impact on the environment due to the increase in waste disposed of.
- Plastic products. Taxation.
- Plastic products. Decrease in demand.
- Waste disposal. Increased restrictions from the administrations and the cost of managing them.
- Lack of availability of natural resources.
Policies and commitments
- Environmental Policy.
- Certification of 100% suppliers of pulp and abaca paper under the international Certification programme (PFEC or FSC) of sustainable forest management.
- Environmental management system based on ISO 14001.
Sustainability objectives
- Reduce the intensity of waste elimination.
- Reduce the intensity of water withdrawal.
Governance
- Board of Directors. Appointments, Remuneration and Sustainability Committee, Audit Committee.
- Executive Sustainability Committee.
- CEO.
- New Business Division.
- Operations Department.
2.3.1 Impact, risk and opportunity management
Identification and assessment process
ESRS 2 IRO
In the Viscofan Group's double materiality analysis described in ESRS 2 of this report, the circular economy and the eco-efficiency of operations have been identified as relevant aspects.
Several specific IROs have been identified based on the analysis of the Group's operations, the upstream and downstream phases of the value chain. At the same time as the identification, we have considered the inflow of resources, including the circularity of their flows, the outflows of resources related to products and the waste generated, considering the management and destination of all the types defined in the ESRS E5.
On this basis, impacts, risks and opportunities related to the transition to a circular economy and also to maintaining the status quo have been identified. The assessment has also made specific considerations with respect to concrete products sold to customers that may have implications for the circular economy, such as cellulose casings or plastic products; and as regards resource inflows, with a focus on the main raw materials of natural origin and water due to the risk of unavailability due to climate change, and plastic because of its implications in the circular economy.
The information from the double materiality analysis, and based on constant contact with stakeholders through the established channels, feeds the process for identifying and assessing IROs related to these material aspects.
The description of each IRO includes its particular characteristics and the elements used in its examination and analysis, with details about the value chain phase they can be found in.
Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 SBM-3, ESRS E5-6 (phased in)
Below are 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 disclosure requirement SBM-3 of ESRS 2.
Viscofan's objective is to avoid or mitigate negative impacts and risks by actively deciding how to respond, while also seeking to promote positive impacts and harness opportunities by incorporating them into our strategy.
It should be noted that, for the material impact and risks of the use of resources and the circular economy, Viscofan has specific response plans in place to anticipate or mitigate possible future financial impacts. From this and the tolerance analysis of possible expected financial effects, no impairment was identified on the current assets and no significant investments were envisaged to comply with the commitments established in our 2022-2025 Sustainability Action Plan.
Impacts
Impact on the environment due to the increase in waste disposed of
Casing production is a continuous process whose characteristics generate waste throughout, namely viscose, collagen mass, casings discarded in the process, as well as packaging used in the different phases of the production process (mainly cardboard boxes, pallets, plastic films). Likewise, associated with environmental management at the water treatment plants and the gas treatment facilities, the Group generates a material amount of waste, particularly sludge.
In the case of waste disposed of, i.e. waste destined for landfill, incineration or other waste for treatment by a third party that is not classified as recovered, a significant increase can have a negative impact on the environment via pollution or increased emissions and thus contribute to a linear instead of a circular economy (one of the European Union's environmental objectives).
Although Viscofan's main activity, casings, represents a very small part of industrial GDP in the countries where it operates, an increase in production without seeking to reduce and recover waste could have a negative impact on the environment in the medium and long term, i.e. from 2030 onwards in line with the United Nations Agenda. Viscofan is a signatory of the UN Global Compact, having identified, among others, the commitment to ODS-12 Responsible production and consumption as a priority goal.
This impact has not materialised in the year. To manage the waste generated, we use disposal methods that have been chosen locally based on local regulations and good practices within the Group, taking into consideration the characteristics of the production process and the raw materials used.
Viscofan is working to ensure that this impact does not materialise in the future based on two main elements incorporated into the strategy.
First, Viscofan is constantly searching for a more efficient production technology that allows, among other things, a reduction in production waste. Furthermore, as established by the Environmental Policy, the concept of circular economy is included in the decision-making processes on investments and in the planning and execution of activities.
Second, it promotes and strives, in collaboration with third parties, for a greater recovery of waste through an increase in the reuse of products or recycled use after the corresponding transformation, such as composting or energy recovery as a thermal source. In this regard, Viscofan has set the target of reducing the intensity of waste elimination on metres of extruded casings by 30% (see section 2.3.2 of this ESRS).
Risks
Plastic products. Taxation on non-reusable plastic packaging
Some products sold by Viscofan are produced through the treatment of plastic polymers, and are considered non-reusable. The same applies to part of the packaging used by Viscofan. Because governments, particularly within the European Union, seek and promote a circular economy restricting the use of these products, they may levy taxes.
This is a risk materialised in Spain through the special tax on non-reusable plastic packaging and which is levied at 0.45 euros per kilogramme of non-recycled plastic. In 2024, it has entailed a cost of €0.2 million, recorded under "taxes", under "other operating expenses"; see note 19.4. of the consolidated financial statements.
Although it has not yet materialised outside Spain, other European governments are studying the possibility of introducing a similar tax. In anticipation of this possible risk and for its quantification, from its experience of Spain, Viscofan is analysing the possible liable products, their identification and conversion to weight on the European continent.
To mitigate this risk, within the business model, in the New Business Division (that includes plastic-related products), Viscofan works in accordance with the 3R rules (reduce, reuse and recycle). The levers to reduce the use of non-reusable plastic include:
- Development and promotion of eFAN casing, which contains up to 95% recycled or bio-based plastic material.
- Efforts to reduce raw material waste in the extrusion of plastic products through process standardisation.
- Development of products that are thinner and therefore have lower plastic requirements.
- Search for degradable plastic casings
Plastic-related products. Decrease in demand
Viscofan has identified the risk of reduced demand for casings, films and bags from the treatment of plastic polymers, in the face of consumers who are increasingly concerned about the environment and who change their preferences towards recyclable or bio-based product alternatives.
In 2024, Viscofan has not identified that this risk has materialised in the relevant markets where it sells this type of product.
Viscofan considers that this is a risk that could have an impact in the medium and long term. However, being able to accurately predict the financial impact of changes in consumer preferences in different geographies and over time, and in particular isolating them only for this purpose, is a very complex exercise subject to many uncertainties. Nevertheless, in a sensitivity analysis, if we assumed a decrease in demand of 10% in Europe and North America, based on the revenue of these products, it could lead to a reduction in the revenue of this indicator of less than €10 million, i.e., below 1% of the total revenue of the Viscofan Group.
To mitigate this risk, within its family of plastic products, Viscofan has developed the eFAN casing, which contains up to 95% recycled or bio-based plastic material. Although sales of this product are currently low, Viscofan is striving to increase their importance through commercial promotion and by improving supply sources. In addition, the Group's main plastic extrusion and converting centres are ISCC PLUS certified, a sustainability certification programme for bio-based and circular (recycled) raw materials.
Viscofan also has natural-origin biodegradable product families, so this could represent an opportunity as detailed below.
Waste disposal. Increased cost in management
Viscofan has identified the increase in the cost of managing waste disposal as a risk. An increase in cost could be the result of stricter regulations, the introduction of higher disposal rates or the need for more advanced disposal technologies.
In 2024, Viscofan has not experienced any relevant restrictions on waste management in the main sites. Likewise, the Group's expenses classified as environmental, which mainly include waste management, have remained stable in the year at below 1% of the Group's revenue. See "environmental expenses", under "other operating expenses", in note 19.4. of the consolidated financial statements, and the detail of the net turnover in note 19.1. of the consolidated financial statements.
Although this is a risk that could have an impact in the medium and long term, being able to accurately predict the increase in restrictions and the cost of waste management and thus quantify the financial impact is a very complex exercise with many uncertainties. However, in an analysis of sensitivities, a 10% increase in this cost at Group level would mean an impact of less than €1 million more spending in a year.
The interaction with Viscofan's strategy and business model and the resilience to this risk has been addressed and described above in "Impact on the environment due to the increase in waste disposed of".
Lack of availability and increase in the price of natural resources. Water and collagen skins
The dependence on collagen skins and water for Viscofan's business model are two risks that may mean that Viscofan is affected by climate change. These risks have been analysed in section ESRS E1. Climate change.
Opportunities identified
Customer and consumer preference for casings of natural or biodegradable origin
Viscofan has identified the opportunity represented by the change in consumer preferences and the drive by meat processors, as their concern for the environment increases, towards recyclable or bio-based product alternatives such as cellulose or plastic casings of recycled or natural origin to the detriment of traditional plastic casings.
In 2024, Viscofan has not identified that this opportunity has materialised significantly in the relevant markets where it sells this type of product, neither in the cellulose casings, nor in the eFAN line, whose demand remains moderate.
Viscofan believes that this is an opportunity that could have a positive impact in the medium and long term, as it can offer alternative products within its range of non-plastic casings or solutions based on plastics of recycled or biodegradable origin. However, being able to accurately predict the positive financial impact of changes in consumer preferences in different geographies and over time, and in particular to isolate them only for this purpose, is a very complex exercise and subject to many uncertainties.
Waste recovery. Reduction of the cost in management and use as a source of energy mainly
A greater recovery of waste from the Group's production process can generate a dual impact: the reduction of the current cost of waste management, and the use of waste for Viscofan's own production process and its sale as a by-product for other industries.
Recovery of cellulose casing waste at the customer
Like Viscofan in its own operations, our customers in theirs face the challenge of the circular economy and, in particular and within Viscofan's scope, of the recovery of waste from cellulose casings, which, peeled after cooking the sausage, are mostly not recovered.
As a leader in casings, and as an extension of its commitment to the circular economy and as a competitive advantage, Viscofan collaborates with a group of customers and industry agents in a project known as CIRCAL, to find an efficient and cost-competitive solution to recover the waste from cellulose casings after the production of cold meats/sausages.
These projects are highly complex as they depend on the search for new technological and logistical solutions in some cases, and have not borne fruit in 2024.
Development with the customer of products that allow a better use of resources
Viscofan, as a leader in casings, promotes collaboration with customers for the development of products that allow a better use of ingredients and other resources in the production of cold meats and sausages. When compared to animal casings, collagen casings enable greater efficiency and use given their greater size uniformity and because they do not need to be washed before they are used in the stuffing process.
Policies related to the use of resources and the circular economy
ESRS E5-1, ESRS MDR-P
Environmental Policy
Key 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 in December 2020.
Both the Sustainability and the Environmental policies are available on Viscofan's website in the section on Corporate Governance – Regulations and Policies.
Basic policy principles and commitments include:
To mitigate the environmental impact at all stages of decision-making processes, incorporating the environmental dimension and the concept of the circular economy into investment decision-making processes and in the planning and execution of activities and promoting their inclusion 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 on the basis of specific policies and the strategies and action plans that are defined for each area of action. Among others, it addresses the waste hierarchy, focusing on waste management aimed at reducing waste in landfill, an objective that is indirectly related to greater recovery, as well as excellence and operational efficiency that seeks to minimise waste as much as possible.
This policy addresses elements that are related to material impacts, risks and opportunities in Viscofan's own operations and throughout the upstream and downstream phases of the value chain, identified in the 2024 double materiality analysis.
The policy does not make explicit the transition away from the use of virgin resources, including the relative increase in the use of secondary (recycled) resources; sustainable sourcing and the use of renewable resources.
Scope of the Policy
This policy applies to all companies in the Viscofan Group and binds all its staff, regardless of the position and function they perform.
Additionally, the policy sets forth that Viscofan will foster the application of the Policy's principles and bases with any natural and/or legal person linked to Viscofan by a relationship other than an employment relationship where it is possible and appropriate for them to follow principles and guidelines consistent with those set out in this Policy and other sustainable development policies.
Monitoring and supervision:
Monitoring of the Policy is the responsibility of the Board of Directors, which will exercise it through the oversight of the Appointments, Remuneration and Sustainability Committee regarding the development and implementation of sustainability policies and strategies, and of the Audit Committee in terms of the integrity of the non-financial information included in the management report, as well as in the supervision of non-financial risks arising from the Group's actions in relation to the Policy.
Likewise, the Group has an Executive Sustainability Committee whose tasks include promoting sustainability plans and programmes in the implementation of policies, and an Ethics and Compliance Committee reporting to the Audit Committee which, in addition to ensuring compliance with the Code of Conduct, manages the channel for reporting any offences by employees and other people related to the company.
Viscofan Group's environmental standard
All the Viscofan Group's production plants comply with national legislative requirements and most of them 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 2024 and those planned in relation to the material impact, risks and opportunities as regards the use of resources and the circular economy, and the targets set. For these, the scope is detailed, i.e. whether they take place in Viscofan's own operations or in the value chain, the time horizon, which in most cases is one or two years, and whether and how they cover the categories established in point 20 of the ESRS E5.
Overall, in 2024, Viscofan has identified relevant projects whose CapEx amounts to €1.5 million. The investments have been identified in the list of additions to property, plant and equipment and intangible assets of the Viscofan Group (see notes 5 and 6 to the consolidated financial statements). These investments have been financed with the cash generation from the business, although Viscofan has financing with sustainable criteria that, although not particularly assigned to the aforementioned projects, contributes to the sustainable performance of Viscofan, framed in the Sustainability Action Plan. See note 15 of the consolidated financial statements.
The Group's environmental expenses, which largely correspond to waste treatment expenses, have led to an OpEx in 2024 of €10.8 million. This expense item is included under "Other operating expenses" in Viscofan's income statement; see note 19.4 of the consolidated financial statements.
Main actions:
With the aim of minimising the environmental impact of the increase in waste disposed of, the risk of increasing restrictions from administrations and the cost of waste management and, by extension, harnessing the opportunity for greater waste recovery in the production process, Viscofan has carried out initiatives that partly contribute to the goal of reducing the intensity of waste elimination detailed in section 2.3.2. of this ESRS. Of particular note:
- Application of circular business practices as system efficiency actions (ESRS E5 – 20.d) i.v): Viscofan is constantly searching for a more efficient production technology that enables, among other things, a reduction in production waste in its own operations. In 2024, Viscofan has worked on improving the learning curve of the installation of a new cellulose casing technology in Danville (installed in 2023) which, compared to the previous one, has led to reduction in the waste of cellulose casings in extrusion.
- Optimisation of waste management in line with the waste hierarchy (ESRS E5 – 20.f)): at the Cáseda plant (Spain), the energy recovery of 353 tonnes of viscose waste is now viable. In addition, the recovery of waste for use as fertiliser has continued in this plant (in 2022, it was disposed of), and the reuse of viscose thanks to facilities made for this purpose.
At the Cáseda plant, Viscofan has also made progress in the project to install a biomass boiler, which is scheduled to be commissioned in 2025, with an estimated reduction of 4,000 tonnes of cellulose casing waste, 7% of the Viscofan Group's total waste in 2024.
With regard to plastic products and their associated risks of taxation and a possible decrease in demand in the transition to a circular economy, Viscofan has carried out initiatives:
- Higher levels of efficiency in the use of technical materials (ESRS E5 – 20.a)): in the plastics family in 2024, the development and operations of this product family have continued to advance in accordance with the 3Rs (reduce, reuse and recycle). This included the reduction of raw material waste in the extrusion of plastic products in the operations themselves. Processes have been standardised and, in particular, at the plant in the Czech Republic, a lean system has been implemented to improve the management and organisation of the operational processes.
- At the same time, all the Group's factories with plastic casing production have been recertified according to the ISCC PLUS system. The Canadian subsidiary also received ISCC PLUS certification. For Viscofan, this means that all eFAN casings, manufactured with raw materials of biological origin and/or raw materials from recycled post-consumer plastic waste, can now be marketed worldwide.
Faced with the risk of unavailability of raw materials of natural origin, these initiatives were carried out:
Higher levels of efficiency in the use of technical materials (ESRS E5 – 20.a)):
Water: in its operations, Viscofan seeks to reduce the intensity of water collection through the installation of new production technologies with lower water requirements, efficiency measures in water use, and water reuse. Strategy framed within the goal of reducing the intensity of water collection.
To this end, in 2024, Viscofan has worked on improving the learning curve of the dry-tech collagen casing technology machinery, for a reduction in water withdrawal requirements (commissioned in 2023 at the New Jersey plant in the USA).
Several Group plants have promoted projects to reuse the water collected, totalling 78,870 m3 and representing 6% of the total water consumed by the Viscofan Group.
Raw material cellulose and abaca paper: this measure takes place upstream in our value chain, specifically in our suppliers, given that Viscofan has acquired 100% of these raw materials with a sustainable certificate, i.e., all suppliers are certified by the international certification programme (PFEC or FSC) that ensures that the cellulose they obtain comes from the sustainable management of trees and forests and, therefore, does not contribute to the planet's deforestation.
2.3.2 Metrics and targets
Targets related to resource use and the circular economy
ESRS E5-3, ESRS 2 MDR-T and MDR-M
As part of its commitment to efficiency in the use of resources and the circular economy set forth in the Sustainability Action Plan, Viscofan has the following targets established in relative value. They are considered to be those in which the Group can make a greater contribution and better measure performance:
Of the categories of targets established by ESRS E5 point 24, Viscofan's target for reducing the intensity of waste elimination is related to the outflow of resources and specifically to subsection e) waste management. The target of reducing the intensity of water withdrawal is related to the inflow of resources and specifically to subsection f) other issues related to the use of resources or the circular economy. Viscofan does not have other targets related to the rest of the categories.
Reduction of the intensity of waste elimination
As a signatory to the United Nations Global Compact, Viscofan is committed to SDG 12: Responsible Production and Consumption. Under this commitment Viscofan has voluntarily established a goal to reduce the intensity of non-circular waste, based on the Environmental Policy and within the framework of the Sustainability Action Plan,
This target is based on the management of resource outflows, particularly waste, seeking a 30% reduction in the intensity of waste elimination on meters of extruded casings by 2030.
With this target, Viscofan seeks to reduce, within its scope of action, the possible impact that the waste eliminated from Viscofan's production process may have on the environment, as well as to minimise the risk of increased restrictions by administrations and the cost of managing these. In turn, this represents an opportunity to encourage greater recovery of waste in the production process.
To set this target, we have envisaged for the denominator, the metres of extruded casings, an increase in production based on the greater demand for casings foreseen in the Beyond25 strategic plan and the historical growth of the market from 2% to 4% in volumes; while establishing as levers the development of technologies with greater production efficiency including the reduction of productive waste, collaboration with third parties in the search for recovery solutions, promotion of the use of cellulose waste in biomass, as well as better measurement and classification for better recovery.
This target has no intermediate milestones, and no ecological thresholds, entity-specific allocations and conclusive scientific evidence have been considered when setting it.
The target was set on the basis of 2018, as it was the reference year used for the sustainability objectives and from which Viscofan's first Sustainability Action Plan was established. The target's scope is all the production plants of the Viscofan Group.
The Executive Sustainability Committee monitors performance against this target on a quarterly basis, identifying catalysts for variances. This Committee also reports regularly to the Board of Directors' Appointments, Remuneration and Sustainability Committee.
The variations in the ratio on a baseline of 100 for 2018 are as follows:
| Base 100 year 2018 | 2030 Commitment | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|
| Tonnes of waste elimination/Metres extruded | 70 | 75 | 80 | 89 | 102 | 100 | 97 | 100 |
Reduction of water withdrawal intensity
The information about this target has been reported in point 2.1.5 of the ESRS Climate Change.
Resource inflows
ESRS E5-4, ESRS 2 SBM-1 paragraph 42
The inflows of material resources for Viscofan are as follows:
Raw materials
We take the utmost care with the raw materials we work with, ensuring that the highest standards of health and food safety are maintained at all stages of production. In addition, a significant proportion of these products are of natural, biodegradable or recycled origin.
In 2024, Viscofan has consumed more than 250,000 tonnes of technical and bio-based products and materials. In terms of euros, materials of biological origin account for 54% of the total, i.e. animal- and plant-based materials, although they needed prior processing to be introduced into Viscofan's production process. In the case of cellulose and abaca paper, 100% of the purchases have been made from suppliers certified under the international certification programme (PFEC or FSC), which ensures that the cellulose they obtain comes from sustainably managed trees and forests and, therefore, does not contribute to the deforestation of the planet. In the case of collagen hides, this is a clear example of the reintroduction of by-products into the food chain, since the intermediate layer containing the richest collagen is extracted from cowhides that are mainly used for textile purposes, and used as a raw material to produce edible collagen casings that will in turn serve as an ingredient in cold meats and sausages.
Viscofan has chosen to omit exact figures on the absolute weight or volumes of raw materials for confidentiality reasons, as this information is very sensitive from a competitive point of view.
The measurement of the weight of raw material consumption is made based on the accounting of the purchase invoices in the SAP ERP, which is aggregated monthly by value and weight by the corporate controlling department as per the defined categories of raw materials.
For casings, films and bags from the treatment of plastic polymers, Viscofan, as part of its goal of promoting a circular economy, has developed the eFAN casing, which contains up to 95% recycled or bio-based plastic material, promoting the use of secondary materials. For its manufacture in 2024, Viscofan has acquired plastic polymers with these characteristics. However, given that the demand for this product is not yet relevant, the consumption of this type of raw material amounts to 5.5 tonnes, less than 1% of the total weight of the Group's raw materials.
The description of the main raw materials used by the Group can be found in ESRS 2 point 1.1.3. Strategy.
Water
Viscofan's production plants require water collection for different phases of the process, such as the washing of casings, refrigeration, steam production and the moistening of said casings.
However, at Viscofan's production plants, in 2024, 14% of the water captured was evaporated, was incorporated into the product or was consumed, while the remaining 86% was taken to purification plants installed at Viscofan's production plants to be processed before being returned to freshwater surfaces or municipal processing plants.
To calculate the water withdrawal data, in some facilities, we use the information in the water suppliers' invoices; and in other cases, when the water is obtained from surface or groundwater, we use information from the meters installed at the water inlet in the factory facilities. This information is standardised and aggregated at the corporate level in the natural reference periods, using in turn a single measurement, cubic meters (m3).
Viscofan's water management focuses its efforts two-fold. Firstly by seeking production technology with a lower water requirement, mainly in phases of the process that involve the washing of casings. Once the water has been used, Viscofan works to improve the quality of what we discharge even further and to understand the risks associated with its availability and use in the areas in which we operate.
The data on water withdrawal by type of source and consumption calculated as the difference between total collection and discharge is as follows
| Water withdrawal by source type. m3 | 2024 | 2023 |
|---|---|---|
| Surface water | 3,938,619 | 4,076,839 |
| Groundwater | 2,729,788 | 2,814,138 |
| Municipal supplies | 3,002,531 | 3,221,360 |
| Rainwater | 0 | 0 |
| Waste water | 0 | 0 |
| TOTAL | 9,670,938 | 10,112,337 |
| Consumption in process | 1,355,793 | 1,271,898 |
In the year, water collection was reduced by 4% in a context of lower casing production activity and thanks to the water consumption efficiency and reuse initiatives implemented during the year, as described above.
The water reused in the year is as follows:
| 2024 | 2023 | |
|---|---|---|
| Water reused in m3 | 78,870 | 85,341 |
| % of the water consumed | 5.8% | 6.7% |
Packaging
Viscofan's business model is characterised by the sale of ingredients or auxiliary raw materials in large volumes to food production companies, so that the packaging sent by Viscofan to the customer is not individualised by product or unit of use. For this reason, packaging is a reduced cost and has not been identified as a relevant aspect within Viscofan's double materiality analysis which, moreover, does not end at the final consumer. Most of the packaging that Viscofan buys by relevance and weight are caddies, boxes and pallets. This packaging is used to protect the quality and safety of the casings shipped to the customer, 17,141 tonnes in 2024. This amount has been calculated using the information recorded in the SAP ERP based on the average weight for each packaging reference and, when it is not available, with an estimate applying theoretical weights to the units of the main packaging families described above.
Viscofan does not manage information on the weight of packaging of raw materials whose purchase is managed by suppliers, nor has this been identified as a relevant aspect within the relative importance matrix. Some of these use reusable packaging, such as the containers that store collagen skins; another part is biodegradable and recycled, such as the cardboard that contains cellulose paper; and to a lesser extent, other packaging is of synthetic origin, for which Viscofan promotes the recycling of these as far as possible.
Machinery, plant & equipment
The technology required for casing production is proprietary and involves the use of machinery, facilities and equipment developed by Viscofan compared to trusted suppliers. Also, the production plants require a series of auxiliary facilities for energy supply and the treatment of waste and emissions.
Resource outflows
ESRS E5-5
Products and materials
The products from Viscofan's production process have been described in ESRS 2. Due to their biodegradability, key products (cellulose, fibrous and collagen casings) are not considered to be material in terms of the circular economy principles established in paragraph 35 of the ESRS E5. However, casings, films and bags obtained from the treatment of plastic polymers are material in terms of their recyclability.
See below the materiality analysis on resource use and circular economy for each key product:
Casings, films and bags through the treatment of plastic polymers
These are products produced through the treatment of plastic polymers. According to the European Union's environmental taxonomy criteria, it is an eligible activity in the objective of transition to a circular economy, like the manufacture of plastic packaging, although it is not aligned with the technical criteria.
Therefore, Viscofan works to promote the use of renewable and bio-based raw materials and has an eFAN casing line. This product contains up to 95% recycled or bio-based plastic material, although for the moment sales are low, at less than 1% of the Group's revenue.
However, Viscofan is seeking to increase its relevance through commercial promotion and by improving supply sources, as detailed in section 2.3.1. of this ESRS.
Cellulose and fibrous casings:
A plant-based product used by meat processors in the cold meat and sausage production process. They give the shape and appearance to the meat/sausage, although they are mainly peeled off before being marketed to the final consumer and discarded. Since they are plant based, they are biodegradable, albeit this may be a long process because of their characteristics.
For this reason, Viscofan is working in partnership with several entities in the sector to recover the waste from cellulose casings. Additionally, in the design of new product types, among other goals, Viscofan is working with the aim of developing casings that make the production process more efficient for customers by using fewer raw materials and reducing waste.
Collagen casings:
An animal-based product used by meat processors in the cold meat and sausage production process. This technology is based on the concept of circular economy with the bio-recovery of a by-product of cowhide leather, collagen, from which the casing is produced. They give the shape and appearance to the meat/sausage and most of them are part of the final product and do not generate waste in their consumption.
Collagen casings are designed to replace animal casings in cold meat/sausage production, in part because they allow for more resource-efficient production by having greater size uniformity and because they do not require water-based washing at the customer's premises in the pre-stuffing phase.
Efficient and circular management of waste
Viscofan is constantly looking for a more efficient production technology that allows, among other things, to reduce production waste as established by the environmental policy.
Casing production is a continuous process whose characteristics generate waste throughout, namely viscose, collagen mass, casings discarded in the converting process, as well as the packaging used in the different phases of the production process (mainly cardboard boxes, pallets, plastic films). Likewise, associated with environmental management at the water purification plants and the gas treatment facilities, the Group generates a material amount of waste, particularly sludge.
For the management of the waste generated, we use disposal methods that have been determined locally based on local regulations and good practices within the Group, taking into consideration the characteristics of the production process and the raw materials used.
In the Viscofan Group, waste is measured mainly on the basis of the weigh-ins carried out by the waste management entities. Waste is classified on the basis of recovery criteria with the categories of reused, recycled, composted and energy recovery; and elimination, with the categories of landfill, incineration or other unclassified destinations. This classification has been established at the corporate level by the operational sustainability department based on Viscofan's standard and seeks to avoid overlapping between the categories of reused and recycled. In addition, all of the categories described above are separated into hazardous and non-hazardous waste.
Viscofan's production process does not generate radioactive waste as defined in Article 3(7) of Council Directive 2011/70/Euratom.
The evolution of waste by type based on the reporting requirements of the ESRS E5 is as follows:
| In tonnes | 2024 | 2023 |
|---|---|---|
| Recovered | 30,487 | 36,055 |
| Elimination | 24,404 | 27,661 |
| Total waste | 54,891 | 63,716 |
| Recovered. In tonnes | 2024 | 2023 |
|---|---|---|
| Reused | 3,851 | 4,516 |
| Recycling | 6,869 | 6,206 |
| Composting | 14,047 | 15,298 |
| Energy recovery | 5,720 | 10,035 |
| Total waste recovered | 30,487 | 36,055 |
| % of total waste | 2024 | 2023 |
|---|---|---|
| Reused | 7.0% | 7.1% |
| Recycling | 12.5% | 9.7% |
| Composting | 25.6% | 24.0% |
| Energy recovery | 10.4% | 15.7% |
| Total waste recovered | 55.5% | 56.6% |
| Elimination. In tonnes | 2024 | 2023 |
|---|---|---|
| Incinerated | 2,081 | 3,231 |
| Landfill | 21,637 | 24,300 |
| Other | 686 | 130 |
| Total waste elimination | 24,404 | 27,661 |
| 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| In tonnes | Non-hazardous | Hazardous | TOTAL | Non-hazardous | Hazardous | TOTAL | |
| Reused | 237 | 3,614 | 3,851 | 149 | 4,367 | 4,516 | |
| Recycling | 6,491 | 378 | 6,869 | 5,864 | 342 | 6,206 | |
| Composting | 14,047 | 0 | 14,047 | 15,298 | 0 | 15,298 | |
| Energy recovery | 4,762 | 957 | 5,720 | 2,652 | 7,383 | 10,035 | |
| Incinerated | 1,754 | 327 | 2,081 | 3,091 | 140 | 3,231 | |
| Landfill | 19,445 | 2,192 | 21,637 | 22,460 | 1,840 | 24,300 | |
| Other | 600 | 86 | 686 | 1 | 129 | 130 | |
| TOTAL | 47,337 | 7,554 | 54,891 | 49,515 | 14,201 | 63,716 |
In 2024, the tonnes of waste went down by 14% compared to 2023 in a context of lower production activity and as a result of the actions detailed above. Viscofan is working on greater recovery of waste by increasing the reuse of products, or recycled use of waste after its corresponding transformation, such as composting, or energy recovery as a thermal source. In this regard, the consolidation of projects from previous years and the implementation of new ones has allowed the Group to reduce the intensity of waste elimination on millions of metres of extruded casings by 7% and to place the percentage of recovered waste at 56%.
