3.1. ESRS S1. Own workforce
People are the differential value on which the future of Viscofan is built. Over 5,100 employees in 22 countries constitute an extraordinary human wealth. People management is key to achieving our goals and that is why we want to attract and develop the best team in the industry.
Current and potential impacts, risks and opportunities
Positive
- Increased knowledge, continuous improvement and productivity
- Skills developtment, diversity and professional talent.
- Long-term loyalty and commitment
- Social protection, economic stability and personal balance
Negative
- Illnesses and accidents in the workplace
- Inadequate working conditions and pay structures
- Failure to comply with working conditions
- Deterioration of the work environment, labour conflicts
Policies and commitments
- People Management Policy
- Policy of Respect for Human Rights.
- Occupational Health and Safety Policy.
- Equal Opportunity, Diversity, Inclusion and Harassment Prevention Policy
- Policy on Selection and Recruitment.
- Knowledge Management Policy.
Sustainability objectives
- Target of a 50% reduction in the Group's accident severity rate by 2030 compared to 2018 levels
- Target of 30% of management positions held by women by 2030
Governance
- Board of Directors. Appointments, Remuneration and Sustainability Committee, Audit Committee
- Executive Sustainability Committee
- CEO
- Human Resources Department
- Operational Sustainability Department
3.1.1 Strategy
Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2 SBM-3
Viscofan is made up of a large team of professionals in 22 countries where the company is present, reflecting its marked international character. A multicultural, competitive, qualified team in constant training, which shares solid values and ethical principles, despite having different cultures. In short, a rich and complex multicultural environment, which is both a challenge and an opportunity for the international development for all employees. The success of Viscofan's business model lies largely in the people who, in their different functions, contribute to the transformation of raw materials into value-added goods and services.
This is a team of in-house staff made up of salaried and non-salaried people for whom the policies of people management and the defence of human rights described below are applicable.
Following on from this, Viscofan's transformative activity has a markedly industrial character, which depends on a continuous, complex production process, involving chemical, mechanical, energy-intensive processes, which are very sensitive to changes, in which automation is not complete and the intervention and supervision of people is necessary to ensure a safe process that guarantees the standards of suitability and quality of the products for customers.
At the same time, casings is a global market, both from a geographical point of view and in terms of product offer, a very competitive market in constant growth and innovation and it is essential that people have extensive knowledge, capacity for innovation, resolution and the ability to work in a team.
With these conditions, the wage cost represents a significant impact on production inputs and on the profitability of the company, making it necessary to strike an adequate balance between competitiveness and personal and professional development of people.
Based on these premises, the main incidents detected in the company's own workforce are described below. It should be noted that no incidents have been identified on the company's own workforce derived from the Net Zero transition plan described in ESRS E1.
Based on the materiality analysis carried out, which includes an understanding of the characteristics of the company's own workforce, the IROs identified correspond to all Viscofan staff and not to specific groups of people.
Positive
Increased knowledge, continuous improvement and productivity
Through knowledge, the company is able to carry out the business activity that the market demands and values. A technical knowledge that allows us to comply with product standards, competitive advantages, trends, etc. In particular, the casing market depends, to a large extent, on proprietary knowledge and the ability to update and improve. So the development of the knowledge of the company's own workforce provides greater productivity and value creation.
Long-term loyalty and commitment
In a business model where people have a great relevance in the contribution of value, greater long-term loyalty and commitment results in initiatives aimed at improving business activity over a time horizon in line with the company's own horizon. Likewise, in a global and changing environment, the demands on the company's own workforce vary, as well as the need to adapt to them. This adaptation is better the greater the loyalty and commitment. Furthermore, the need for labour, the costs of investment in knowledge and training and the organisation of work itself constitute a complex process in a continuous 24-hour productive activity. With this, greater long-term loyalty and commitment reduce labour costs, increase security, retain talent and increase performance.
Development of skills, diversity, and professional talent
Teamwork, training, skills development and professional experience are generated in people who, through work experience, Viscofan provides with an intangible asset that enables them to develop new activities and face new challenges both within the company and in other activities.
Social protection, economic stability and personal balance
A competitively paid job gives those who work personal autonomy to be able to satisfy their needs, create wealth, have economic stability for their projects and not only benefits from the material and economic point of view, but also facilitates insertion into society, interaction with people, the creation of emotional bonds, etc. it improves self-esteem and helps mental stability.
Negative
Illnesses and accidents in the workplace
In productive activity there is the possibility that the company's own workforce may suffer some kind of harm, including injuries, illnesses or pathologies suffered as a result of or during work. Viscofan's health and safety management system focuses on identifying and mitigating risks based on the areas of greatest danger within production plants and in auxiliary areas. By identifying and managing risks at the area level, we can ensure that all critical areas are adequately protected, thus reducing the likelihood of workplace accidents.
Inadequate working conditions and remuneration structures
A high workload, both physically and mentally or insufficient compensation in terms of economic and social benefits for the company's own workforce can lead to high turnover and loss of talent and therefore not having the right people for value creation.
Viscofan has a labour presence in 22 countries, each with a different set of labour laws. However, in relation to the systemic risks of forced labour or child labour that may arise from having manufacturing plants in countries outside the EU, the elimination of all forms of forced or compulsory labour, as well as the elimination of child labour, is stipulated as a principle relating to fundamental rights, above the legislation or practices that may occur in the countries in which it operates.
Failure to comply with working conditions
The company entrusts the management of its tangible and intangible assets to its own workforce to carry out work that helps to create value in the business activity. Improper use of these resources, disclosure of secrets, inappropriate behaviour, harassment or breach of employment contracts can result in economic, reputational and criminal costs for the organisation.
Deterioration of the work environment, labour conflicts
Viscofan's business activity requires a large team, currently more than five thousand people work in different locations within the Viscofan group, interacting socially and carrying out both formal and informal collaboration agreements.
The deterioration of the working environment hinders teamwork, coordination, the development of collective talent and productivity, which in some cases can lead to labour disputes aimed at changing working conditions and the relationship between the company and its own workforce, putting productive, service or management activity at risk, which can result in economic and reputational costs.
Casings is a global market, both from a geographical point of view and in terms of product offer, a very competitive market in constant growth and innovation
Viscofan has a labour presence in 22 countries
3.1.2 Incident, risk and opportunity management
Policies related to own workforce
ESRS S1-1, ESRS 2 MDR-P
Viscofan has policies that address the evaluation, management or remediation of incidents of relative importance related to its own workforce. Firstly, the people management policy establishes a basis that defines, designs and disseminates a people management model that attracts, develops and retains talent, as well as promoting the physical and mental well-being of the human team through their personal and professional growth and guaranteeing them a decent job.
This policy sets out the following specific principles in the following areas
- In relation to equality, diversity and inclusion
- With the selection and hiring of professionals
- Talent management and promotion and training
- Performance and development evaluations
- The remuneration system
- Work-life balance
- Regarding private life and digital disconnection
- Global occupational health and safety system
- Welfare
- Work ethics
- Corporate volunteering
In addition, the people management policy articulates specific policies that address in more detail incidents, risks and opportunities of relative importance related to its own workforce:
- Occupational health and safety policy: To promote the permanent improvement of health, safety and well-being conditions in the workplace of all the Group's employees.
- Equal opportunity, diversity, inclusion and harassment prevention policy: It seeks to create an inclusive and respectful work environment, with equal opportunities, and ensuring that all people are treated fairly, regardless of gender, race, age, disability, sexual orientation, religion or any other personal characteristic. In addition, the policy sets out clear procedures to prevent and address harassment in all its forms.
- Talent Acquisition Policy: The aim is to attract, select and retain the best talent in order to incorporate professionals with the competencies, knowledge, skills and behaviours reflected in the Code of Conduct.
- Knowledge Management Policy: Disseminate and share existing knowledge within the Group and promote continuous learning and training and its exchange, so as to increase operational efficiency through the appropriate use of intellectual capital and to promote initiatives, procedures and tools that allow for a real and effective use of this intellectual capital, always acting in the interest of the Group.
All these policies have been approved by the Board of Directors and are available on the Viscofan website, in the Corporate Governance - Regulations and Policies section and on the corporate intranet.
In addition, Viscofan has a Policy of Respect for Human Rights. It adopts the basic principles of respect for internationally recognised human rights, mainly contained in:
- The 10 principles of the United Nations Global Compact,
- The European Human Rights Convention.
- The United Nations Convention on the Rights of the Child.
- The Guiding Principles on Business and Human Rights: implementation of the United Nations framework to "protect, respect and remedy".
- The OECD Guidelines for Multinational Enterprises.
- The Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
- The social policy of the International Labour Organization, as well as the documents or texts that may replace or complement those referred to above
The policy of respect for human rights formalises the Viscofan Group's commitment to defending, promoting and respecting human rights in the development of its business activities and in particular labour activities:
- Prohibition of forced labour.
- Prohibition of child labour.
- Elimination of discrimination in the workplace.
- Respect for freedom of association and collective bargaining.
- Elimination and prevention of harassment and violence.
- Compliance with working conditions.
- Promotion of occupational health and safety.
Among its essential aspects, transparency and dialogue is a fundamental principle that inspires the Company's actions and, based on the Viscofan policy, promotes communication channels and relations with the different stakeholders that interact with the Group, so that it can respond to their needs and expectations and promote the creation of shared value.
Likewise, the Policy of Respect for Human Rights establishes different guidelines for action that include:
- The identification, within the risk control systems, of the potential human rights impacts that the Group's activities may generate, the development of mechanisms for the prevention and mitigation of such risk and, ultimately, reparation of the impacts in the event that they materialise. In this regard, the appropriate measures must be adopted as soon as possible in the event of detecting a violation of human rights in the facilities, centres or places where the companies of the Group or its business partners carry out their activities and inform the competent public authorities of this in the terms derived from the applicable regulations in this regard.
- Adopt the appropriate measures in the event of detecting a violation of human rights at the Group's facilities or those of its suppliers, and inform the competent public authorities so that they may take the appropriate action when such violation may constitute an administrative or criminal offence.
- Have mechanisms for complaints and claims to deal with potential cases of human rights violations.
Policy scope
These policies apply to the company and its group and are binding on all its personnel, regardless of the position and function they perform.
The company will promote the application of the principles and bases to any natural and/or legal person linked to the companies of the group by a relationship other than employment when this is possible and convenient in such a way that they follow principles and guidelines consistent with those established.
The company may develop procedures and instructions to implement and comply with the obligations assumed, as well as to adapt it to the various local laws applicable to the companies of the group.
Monitoring and supervision:
The monitoring of the policy is the responsibility of the Board of Directors, which will exercise it through the supervision by the Appointments, Remuneration and Sustainability Committee of the development and implementation of sustainability policies and strategies and by the Audit Committee in terms of the integrity of the non-financial information that is included in the management report, as well as in the supervision of non-financial risks arising from the Group's actions. The Group also has a Sustainability Committee, whose tasks include promoting sustainability plans and programmes in the development 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 ethics channel that allows employees and other persons related to the Company to report any breaches that may occur. Finally, the Corporate Human Resources Department, and the different Human Resources departments and functions deployed in the various subsidiaries of the group are responsible for ensuring and applying the policies in the daily management of Viscofan's own workforce.
Processes for engaging with own workforce and workers’ representatives about impacts
ESRS S1-2
The company maintains various channels of dialogue and communication with the professionals of the Group's companies, including regular meetings with workers' representatives, especially in those subsidiaries where the size of the workforce makes this advisable, specific committees with professionals on matters of special relevance for the company and its own workforce, work climate surveys, presentations with members of senior management, specific meetings, and notifications on the Group's intranet.
These channels of communication serve to ensure that the perspectives of its own workforce can be taken into account in decisions or activities aimed at managing actual and potential incidents.
Meetings with professionals or workers' representatives, which are generally held at least once a year, may or may not be held periodically, depending on the circumstances, the legislation in force, and the agreements between the company and the workers' representatives. In this way, collective agreements or specific agreements can be established to regulate and monitor aspects related to human resources management. In meetings with workers' representatives, there is at least one company representative appointed by senior management.
The policy of respect for human rights is applicable to the entire Viscofan Group and binds all its staff. Furthermore, in the implementation of the principles of this policy, the companies of the Group shall collaborate constructively with those interest groups or stakeholders that may affect or be affected by the Group's activity in order to establish channels of communication, consultation and contacts that contribute to the best performance of the Group and its business partners in the field of human rights. On this basis, the principles set out in the policy provide a comprehensive framework with employee representatives in relation to respect for human rights.
In addition, the Group promotes the conduct of multi-annual global opinion surveys (Viscofan Opinion Survey) to assess the working environment in the different subsidiaries in the countries where it operates. The last one was carried out in 2022 and had a response rate of 68%. All the surveys and observations were recorded and grouped into different categories, making it possible to assess how the members of its own workforce know and trust these structures and processes that Viscofan has as a way of raising their concerns or needs and responding to them.
Viscofan believes that the effectiveness of the collaboration is reflected in the increase in people's participation in the opinion survey, where key aspects that require improvement are identified and integrated into the human resources management strategy for the coming years. These aspects include professional development, improving working conditions and strengthening organisational culture. However, Viscofan does not have a formal system to evaluate the effectiveness of this channel or communication with workers' representatives.
In 2024, it carried out a climate survey on the perception of safety in the subsidiaries in Spain, the Czech Republic, Belgium and Serbia, with the aim of determining whether the safety culture in the company is adequate and implementing the necessary improvement or corrective measures.
The participation of workers in health and safety matters is guaranteed in all plants through health and safety committees -in which the company's actions in the field of risk prevention are regularly consulted-, suggestion boxes, as well as other established communication channels.
The resources used in the processes for engaging with the company's own workforce and its workers are mainly human. In the case of regular meetings with workers' representatives, these are mainly carried out by staff at the local locations where they take place, especially in the human resources department, being one of the tasks incorporated in their position. Meanwhile, the climate survey on the perception of safety has been coordinated by the corporate operational sustainability department, in collaboration with communication and corporate IT and by extension by the local health and safety departments of the implementations where it has been carried out.
The global opinion survey, at the internal level, is coordinated by the corporate human resources department, in collaboration with corporate communication and IT and by extension the local human resources departments. Externally, there is the collaboration of a third party that guarantees the platform, reliability and confidentiality.
Finally, no impacts on the company's own workforce have been identified that may result from the reduction of carbon emissions and the transition to greener and climate-neutral operations and therefore, there is no collaboration with the members of its own workforce or workers' representatives in this regard.
Processes to remediate negative impacts and channels for own workers to raise concerns
ESRS S1-3
The Viscofan Group has an organisational structure that has different channels for repairing negative incidents.
The department in charge of monitoring the protocols and the execution of the processes to repair general negative incidents related to its own workforce is human resources.
In the event that the negative impact is related to health and safety, Viscofan has safety managers who must ensure that corrective or improvement measures are implemented in this area, with the operational sustainability department monitoring the implementation of these measures. Additionally, when necessary with the human resources department, operations or general management depending on the circumstances.
Furthermore, Viscofan has a whistleblowing channel called the Ethical Channel. Integrity Line, which is a tool for employees and stakeholders to report breaches, crimes or unethical behaviour that may jeopardise the reputation or civil or criminal administrative liability of the Viscofan Group.
See detailed description of it in ESRS G1 point 4.1.2.
The Ethics and Compliance Committee is the body responsible for commencing, on its own account or at the request of a third party, an investigation on events or practices that may give rise to a situation of risk for the Viscofan Group as a result of a breach of the Viscofan Group's Code of Conduct or prevailing regulations.
At the conclusion of an investigation, the Ethics and Compliance Committee will, among other things, have the following as its objectives:
- Seek redress and assistance to those who may have been affected by non-compliance or irregularities, especially for non-compliance or irregularities of criminal relevance.
- Identify possible improvements in the implementation of the Ethics and Compliance System so that new measures can be put in place that would have prevented risks from materialising.
- Provide support to the Group's companies and monitor the implementation of the recommendations to ensure the improvements identified.
- Conduct global monitoring of cases. The information sent to the Ethics Committee throughout the company on possible infringements is recorded for a unified monitoring to identify trends and areas for improvement in the Viscofan Group's Compliance System.
Viscofan supervises compliance with the various policies of action in the field of people of its own workforce through different control bodies responsible for detecting possible non-compliance, as well as implementing the relevant corrective measures in each case. See section 3.1.2. of this ESRS where the policies and bodies in charge of management are detailed.
Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
ESRS S1-4, ESRS 2 MDR-A
Actions taken, ongoing or planned to prevent, mitigate and remedy negative impacts and achieve positive impacts, as well as to address risks and seize opportunities are managed at a general level by the Corporate Human Resources Department, which manages annually and in the longer term within the framework of the Beyond25 Strategy the main initiatives that are implemented by extension in the different locations of the Group where applicable, e.g. the Annual Training Plan.
However, in the case of the incidence of illnesses and accidents in the workplace, the Corporate Operational Sustainability Department is responsible for defining the action plan to be carried out to prevent, mitigate and repair incidents of this type within the framework of the health and safety management system. See Health and safety metrics sub-section of this ESRS.
The main actions for each IRO of relative importance are detailed below:
Illnesses and accidents in the workplace
- The company has safety managers in all manufacturing centres.
- The company has a corporate security manager.
- A survey of the safety prevention climate has been carried out in European subsidiaries that must provide a diagnosis on which to act.
- Training has been provided, specific campaigns on safety have been conducted, and work procedures with a focus on safety have been implemented and formalised.
- An accident control and reporting tool has been installed, not only at the level of those directly responsible, but also at senior management level.
- Periodic monitoring in all monthly steering committees on safety indicators.
- Investments have been made, notably at the Danville plant to bring it up to ISO standards; modifications have also been made to machines and installations, especially in converting, with the aim of improving their safety level or eliminating non-conformities; and investments have been made to improve fire protection.
- Compensation has been paid in cases where it has been justified with the objective of providing or enabling redress in relation to the consequences of accidents.
Overall, in 2024 Viscofan has identified relevant projects with a CapEx of €4.3 million in the area of occupational health and safety. 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 of 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.
The effectiveness of these measures has led to an improvement in the accident rate indicators compared to the start of the Sustainability Action Plan, even exceeding the targets initially set.
Inadequate working conditions and remuneration structures
Collective bargaining agreements are in force for 62% of the company's own workforce, which ensure adequate working conditions and pay structures.
In addition, a detailed assessment of the jobs has been carried out during the year, with a focus on the pay gap and preparing for adaptation to the remuneration transparency regulations that are expected to come into force in 2026. This action has first begun at the corporate level and will be subsequently extended to the rest of the subsidiaries and the implementation of a Remuneration Policy for the Group is also planned.
As part of its annual work plan, the Internal Audit area supervises the corporate Human Resources procedures, which include, among other aspects, those related to working conditions.
The effectiveness of these measures is reflected in the reduction in the number of voluntary sick leave during the year, which is in line with the industrial sector.
Failure to comply with working conditions
The company's own workforce have clear contracts defining the main rights and obligations of the contractual relationship. Training on labour regulations has been carried out.
Controls on intellectual property and know-how risks have been strengthened.
As an indication of the effectiveness of these measures in the current year there has been no significant impact due to non-compliance with working conditions.
Deterioration of the work environment, labour conflicts
In 2022, a work climate survey was carried out, the analysis of which led to the human resources action plan with initiatives to improve the commitment of the people who work at Viscofan. A new Group-wide work climate survey is being considered and planned within 1-2 years to provide a more up-to-date picture.
In addition, a safety perception climate survey was conducted in the subsidiaries in Spain, the Czech Republic, Belgium and Serbia in the 2024 financial year to determine whether the security culture in the company is adequate and to implement the necessary improvement or corrective measures.
This exercise has seen production adjustments to adapt to the company's demand and inventory levels. These production adjustments have led to temporary layoffs in some manufacturing centers (Germany and Belgium) and wage restraint measures that have not led to significant labor disputes.
As proof of the effectiveness of these measures, no strikes have been recorded in the Viscofan Group's plants this year.
Knowledge enhancement, continuous improvement, and productivity; and Development of skills, diversity, and professional talent
We promote the personal and professional development of people through different initiatives that allow knowledge management and use of employees' skills to achieve the Group's objectives.
Following on from this, continuous training is one of Viscofan's main objectives in terms of people management, promoting personal and professional development with its own training as well as that of third parties, with consultancy projects and training in continuous improvement.
Viscofan has a specific training channel called Viscoacademy integrated into the corporate intranet so that all the Group's training is hosted on a single platform, thus promoting knowledge sharing.
Within the financial year's training and skills building activities, it is worth highlighting those focused on the strategic continuous improvement project (Kaizen), and on improving safety awareness aimed at both the personnel directly in charge of this matter and other factory personnel, among others.
For all this commitment to training human capital, the group has earmarked €1.1 million in 2024 (€1.3 million in 2023), of which €0.26 million (€0.26 million in 2023) for specific training and awareness in the area of health and safety.
The detail of training hours for 2024 and the previous year is as follows:
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Training | Men | Women | Total | Men | Women | Total |
| Number of hours | 48,614 | 21,990 | 70,604 | 55,817 | 25,984 | 81,801 |
| Average number of hours per employee | 13.2 | 14.8 | 13.7 | 14.7 | 16.8 | 15.3 |
| % of employees who have received training | 90.0% | 90.7% | 90.2% | 93.2% | 92.7% | 93.0% |
In parallel, Viscofan promotes global team meetings by corporate functions to share knowledge and strategic and action lines, as well as the creation and meeting of triangular multi-departmental teams for project management.
In particular, at the level of skills and talent development, work has been done on the succession plan and efforts have been made to ensure equal opportunities and working conditions by making job offers accessible internally.
Overall, measuring the effectiveness of these initiatives is complex due to the subjective nature of the elements involved, such as personal development and job satisfaction. While we use a variety of metrics and assessments, we recognise that individual perception plays a key role.
Long-term loyalty and commitment
During the year, Viscofan has carried out communication campaigns on the Group's corporate purpose and values.
A staff engagement strategy called "Viscofan Discovery" has been implemented to introduce people in the organisation to what we do in Viscofan at regional (APAC) and divisional (New Business) level.
In addition, in 2024, recognition of the commitment of people who have been working for the Group for a certain period of time has been encouraged.
The effectiveness of these measures is reflected in the predominance of permanent contracts in the workforce.
Social protection, economic stability and personal balance
Recruitment processes have sought to prioritise job stability as far as possible, a strategy that has resulted in an increase in the number of permanent positions.
3.1.3 Metrics and targets
Targets related to managing material adverse impacts, driving positive impacts and managing material risks and opportunities
ESRS S1-5, ESRS 2 MDR-T and MDR-M
Within the scope of its own workforce and set out in the Sustainability Action Plan, Viscofan has the following targets:
Safety. Reduction of severity index
Based on the objective established in the Occupational Health and Safety Policy to prevent accidents, injuries and deterioration of health, thus minimising the impact of the negative incidence of accidents in the working environment, Viscofan has set itself the target of reducing the severity rate by 50%, calculated as the number of equivalent working days lost per accident per thousand hours worked, in 2030 compared to 2018.
This target has been set by the Executive Sustainability Committee and approved by the Board of Directors within the framework of the Viscofan Group's Sustainability Action Plan. There has been no engagement with the company's own workforce or workers' representatives to set this target.
The definition of the target was based on the 2018 financial year with a severity index of 0.52, as this is the reference year used for the different sustainability targets and from which the first Viscofan Sustainability Action Plan is established, to be reduced to 0.26 in 2030, in line with the United Nations Sustainable Development Goals. There are no intermediate milestones and the scope of the target is for all Viscofan Group locations.
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 evolution of the 100-based target for 2018 is as follows:
| Base 100 year 2018 | 2030 Commitment | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|
| Severity Index | 50 | 28 | 35 | 62 | 48 | 63 | 83 | 100 |
By setting this target, Viscofan has been able to promote specific safety awareness projects, invest in protection and ergonomics, and improve and standardise plant safety systems. This has resulted in Viscofan meeting its 2030 target by 2024. However, in order to continue to manage and minimise the incidence of accidents, the Executive Sustainability Committee is studying the establishment of an even more ambitious target.
In addition, as proof of this commitment, the long-term variable remuneration plan for Viscofan's senior management and key personnel includes an intermediate target to reduce the severity rate.
Diversity. Increasing the percentage of women in management positions
Based on the policy of equal opportunities, diversity, inclusion and prevention of harassment, which establishes the commitment to establish action plans that promote effective equality of the sexes, Viscofan seeks to promote the development of diversity, in particular to increase the weight of the least represented gender in the Group by setting the target of achieving 30% of the management level to be made up of women.
This target has been set by the Executive Sustainability Committee and approved by the Board of Directors within the framework of the Viscofan Group's Sustainability Action Plan. There has been no engagement with the company's own workforce or workers' representatives.
The definition of the objective was based on the 2018 financial year, a year in which the percentage of women in management positions was 15.6%, being the reference year used for the different sustainability objectives and from which the first Viscofan Sustainability Action Plan was established. The target is to increase to 30% by 2030, in line with the total percentage of women in the Group's average workforce, and with the UN Sustainable Development Goals framework year. There are no intermediate milestones and the scope of the target is for all Viscofan Group locations.
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 trend in the goal is as follows:
| Base 100 year 2018 | 2030 Commitment | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|---|
| Women in management positions | 30.0% | 22.2% | 22.4% | 19.6% | 17.9% | 14.8% | 15.4% | 15.6% |
By setting this target, Viscofan has been able to promote, as part of its talent management, the identification of opportunities to include the under-represented gender, both in terms of internal and external candidates, in those positions that are expected to become available in the future as a result of vacancies, growth opportunities or succession planning. As reflected in the progress of the target, this has resulted in an increase of 6.6 percentage points in the percentage of women in management positions in 2024 compared to the base year 2018.
Characteristics of the company's employees
ESRS S1-6
Viscofan is made up of a large team of professionals in 22 countries where the company is present, reflecting its marked international character. A multicultural, competitive, qualified team in constant training, which shares solid values and ethical principles, despite having different cultures.
In total, the average workforce in 2024 was 5,163, which is 3.4% lower than the average workforce in the previous year, due to lower staffing requirements compared to the same period of the previous year. This is due to the new technology installed in the United States, the adjustment of production levels, particularly in Europe, and the measures implemented throughout the Group to optimise operations and production.
The workforce at the end of 2024 comprised 5,323 people, of whom 3,759 are men (3,761 in 2023) and 1,564 women (1,571 in 2023).
See staff breakdowns in note 19.3 of the consolidated financial statements.
Viscofan's business model has a markedly industrial character: 50% of those working at Viscofan are operators and 17% are specialised personnel. Within this industrial context, Viscofan is committed to stable quality employment, and 94% of the workforce have permanent contracts and 98% are full-time workers.
The team combines young talent and experience. The average age of the staff is 42 years. Of the total of the average workforce, 16% are people under 30 years old, 58% are between 30 and 50 years old, and 26% are over 50 years old.
Based on ESRS S1-6 the breakdowns of employees in its own workforce are obtained from local registers calculated on a corporate basis in full-time equivalent numbers, and then consolidated at the corporate level. This is the average workforce for the reference period, the 2024 financial year.
The breakdowns of information are as follows:
a. Total number of employees and breakdown by gender and country:
| Number of people | 2024 | 2023 |
|---|---|---|
| Men | 3,674 | 3,797 |
| Women | 1,489 | 1,549 |
| Other | — | — |
| Not notified | — | — |
| Total employees | 5,163 | 5,346 |
| Breakdown of the average workforce by country | 2024 | 2023 |
|---|---|---|
| Spain | 905 | 942 |
| Czech Republic | 597 | 618 |
| Serbia | 642 | 673 |
| Germany | 540 | 569 |
| Belgium | 70 | 72 |
| France | 14 | 13 |
| United Kingdom | 10 | 12 |
| Russia | 6 | 6 |
| Italy | 1 | 1 |
| EMEA | 2,785 | 2,905 |
| China | 356 | 368 |
| Australia | 86 | 86 |
| Thailand | 35 | 18 |
| New Zealand | 4 | 7 |
| Japan | 2 | 1 |
| India | 2 | 1 |
| Philippines | 1 | 1 |
| APAC | 486 | 481 |
| EE.UU | 598 | 622 |
| Mexico | 634 | 654 |
| Canada | 57 | 57 |
| Costa Rica | 15 | 14 |
| North America | 1,304 | 1,348 |
| Brazil | 508 | 526 |
| Uruguay | 80 | 87 |
| South America | 588 | 612 |
| TOTAL | 5,163 | 5,346 |
b. Total number of persons or full-time equivalent of:
- permanent employees and their breakdown by gender
- temporary employees and their breakdown by gender
- workers of non-guaranteed hours, and their breakdown by gender
| Period. 2024 | Man | Woman | Other | Not communicated | Total |
|---|---|---|---|---|---|
| Number of permanent employees | 3,459 | 1,373 | 0 | 0 | 4,832 |
| Number of temporary employees | 215 | 116 | 0 | 0 | 331 |
| Number of employees of non-guaranteed hours | 0 | 0 | 0 | 0 | 0 |
| Total | 3,674 | 1,489 | 0 | 0 | 5,163 |
c. Number of employees who have left the company and the turnover rate
The number of employees who left the company in the 2024 financial year is as follows:
| People | 2,024 |
|---|---|
| Total number of employees who left the company in the reference period | 1,169 |
| Employee turnover rate | 18.4% |
This ratio has been calculated using the total number of employees who have left the company as the numerator and the total number of employees who have worked in the period as the denominator.
Characteristics of non-employee workers in the company's own workforce
ESRS S1-7. Phased-in disclosure requirement
Viscofan does not report this information in this sustainability report because it is a phased-in disclosure requirement and therefore exempt from reporting in the first year of the sustainability report as per Appendix C of ESRS 1.
Collective bargaining coverage and social dialogue
ESRS S1-8
As part of Viscofan's commitment to guaranteeing fair and equitable working and employment conditions for staff, there are collective agreements that clearly and in detail establish the terms and conditions of employment, including wages, working hours, benefits and labour rights as far as possible and according to the characteristics of the countries in which Viscofan is present. These agreements are the result of a negotiation process between the company and the workers' representatives, thus ensuring that the voices of our employees are heard, and their needs are met.
Thus, in the period, 62% of employees are covered by a Collective Bargaining Agreement.
In addition, continuous and constructive social dialogue with staff and their representatives is encouraged. This dialogue allows us to address any concerns or problems that may arise in the work environment in a collaborative and proactive way. Viscofan strives to maintain open and transparent communication channels, promoting the active participation of staff in decisions that affect their working conditions.
The total and detail of the average salaried workforce covered by collective bargaining agreements by country is broken down below, both within the European Economic Area (EEA) and outside it, as set out in the template in point AR.70 of ESRS S1. In addition, as defined by collective agreements in EEA countries, all persons under an agreement are represented by workers' representatives:
| Coverage of collective bargaining | Social dialogue | |||
|---|---|---|---|---|
| Coverage rate | Employees EEA (for countries with > 50 employees, representing > 10% total employees) | Employees Non-EEA (regions with > 50 employees, representing > 10% total employees) | Workplace representation (EEA only) (for countries with > 50 employees, representing > 10% total employees) | |
| 0-19% | Rest of Europe and Asia Pacific | |||
| 20-39% | ||||
| 40-59% | North America | |||
| 60-79% | Germany | Germany | ||
| 80-100% | Spain, Czech Republic | South America | Spain, Czech Republic |
Viscofan does not have agreements with its employees for representation by a European Works Council, a Works Council of the European Company (SE) or a Works Council of the European Cooperative Society (SCE).
Diversity metrics
ESRS S1-9
For the Viscofan Group, Top management corresponds to the highest hierarchical level of the organisation, reporting directly to the Chief Executive Officer, and consists of regional general management (EMEA, APAC, NAM and SAM) which groups together the operations located in the countries belonging to that geographical region, the general management of New Business, and the general management of corporate services. Thus, the average number of senior management staff by gender is as follows:
| 2024 | ||
|---|---|---|
| Average workforce | Men | Women |
| Top management | 14 | 2 |
| Percentage | 87.5% | 12.5% |
See details of Top management in note 22.2. to the consolidated financial statements.
In addition, based on the management and establishment of the policy of equal opportunities, diversity, inclusion and prevention of harassment, Viscofan is committed to establishing action plans that promote effective equality of the sexes, with the aim of increasing the weight of the under-represented gender at management level, understood as the categories of top management and managers. Thus, the breakdown of the average workforce in these categories is as follows:
| 2024 | ||
|---|---|---|
| Average workforce | Men | Women |
| Management | 91 | 26 |
| Percentage | 77.8% | 22.2% |
Furthermore, the distribution of employees by age group is as follows:
| Average workforce | 2024 |
|---|---|
| Under 30 years old | 830 |
| 30 - 50 years | 3.001 |
| More than 50 years | 1,332 |
| TOTAL | 5,163 |
Adequate wages
ESRS S1-10
The contracting policy of the Viscofan Group is based on objectivity, equal opportunities and training, and one of its aims is to favour gender diversity, among other aspects. This implies competitive remuneration, adapted to the skills and competencies of the different profiles in demand depending on the industrial or commercial process and in accordance with the realities of the multitude of countries in which Viscofan has a presence.
In addition, at all Viscofan locations, people receive adequate wages, in accordance with the country's legal minimum wage reference index, understood as:
Within the EEA: On the basis of Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union, it complies with the definition of a statutory minimum wage as the minimum wage set by law or other binding legal provisions, with the exception of minimum wages set by collective agreements that have been declared universally applicable without any discretion on the part of the declaring authority as to the content of the applicable provisions.
Outside the EEA: The national minimum wage laid down in the labour laws of the countries in which Viscofan has a presence is used.
| Minimum wage paid in the country vs legal minimum wage in the country (% difference over minimum wage) | |
|---|---|
| Spain | 98.1% |
| Czech Republic | 0.0% |
| Germany | 48.0% |
| Serbia | 4.4% |
| Belgium | 18.5% |
| United kingdom | 0.0% |
| France | 0.0% |
| Russia | 1301.8% |
| China | 0.0% |
| Thailand | 0.0% |
| Australia | 10.5% |
| New Zealand | 45.5% |
| Canada | 0.0% |
| US | 34.3% |
| Mexico | 0.4% |
| Brazil | 76.7% |
| Uruguay | 20.8% |
| Costa Rica | 0.0% |
Social protection
ESRS S1-11. Phased-in disclosure requirement
The Viscofan Group is not reporting this information in this Sustainability Report as it is a phased-in disclosure requirement and is therefore exempt from reporting in the first year of the Sustainability Report as per Appendix C of ESRS 1.
Persons with disabilities
ESRS S1-12
As part of the promotion of diversity, Viscofan collaborates with special employment centres in Spain and other countries to carry out certain tasks that contribute
to the development of our productive activity. It also has people with functional diversity among its employees, so that those people who are accredited or have a certificate from the competent health body in the various countries are consolidated at Group level to respond to this point of ESRS S1. The data with these characteristics broken down by gender is as follows:
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| Men | Women | TOTAL | Men | Women | TOTAL | |
| No. of disabled employees | 60 | 6 | 66 | 60 | 6 | 66 |
Training and skills development metrics
NEIS S1-13
Note: In this section, information on training and performance evaluation is reported as set out in ESRS S1-13, in line with the disclosure requirements of Law 11/2018 of 28 December on non-financial information and diversity. However, as this disclosure requirement is to be phased in and is therefore exempted from reporting in the first year of the sustainability report based on Appendix C of ESRS 1, the number of assessments as a proportion of the agreed number of management assessments is not reported. This indicator is being gathered and analysed for reporting in the next year in a reliable manner.
Viscofan promotes the personal and professional development of people through various initiatives to manage knowledge and make the most of employees' skills, combined with performance assessment processes to achieve the group's objectives.
Likewise, the industrial nature of the company requires combining a large number of operators with specialised personnel. An increasingly demanding and global industry, which implies greater knowledge and specialisation of the workforce. To meet this challenge, the Group is constantly investing in improving people skills, coupled with an ongoing training effort.
This is one of Viscofan's main objectives in terms of people management, promoting personal and professional development. The methodology has changed, with training through e-learning platforms, both at corporate and local level.
The breakdown of the hours of training undertaken has been reported in the incident-related action sub-section of this ESRS
A key focus of training in the Group is the subject of accident prevention to promote the importance of incorporating safe behavioural habits of the people who work at Viscofan. This training includes basic prevention measures that have to be adopted in the workplace, or the importance of day-to-day heart-healthy habits, the role of middle-level management and the improvement of its leadership in safety.
Facilitating training is one of the most effective measures to encourage professional development within the Group. The new processes and vacancies at Viscofan are notified internally so that the people that wish to can set themselves new challenges and goals at the company itself, strengthening and preserving the talent of the human team.
Furthermore, as part of the search for skills development, Viscofan promotes the implementation of performance evaluation processes as far as possible, in order to achieve the group's objectives. The percentage of the average workforce that has received a performance evaluation in 2024 by gender and professional category is as follows:
| 2024 | 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Performance evaluation | Men | Women | TOTAL | % of average workforce in the category | Men | Women | TOTAL | % of average workforce in the category | |
| Management | 86 | 25 | 111 | 94.7% | 100 | 30 | 130 | 100.0% | |
| Technicians and department heads | 579 | 255 | 834 | 63.1% | 542 | 231 | 773 | 59.3% | |
| Administrative personnel | 19 | 78 | 97 | 40.4% | 17 | 78 | 95 | 39.4% | |
| Specialised personnel | 254 | 125 | 379 | 42.3% | 285 | 126 | 411 | 44.9% | |
| Workers | 622 | 280 | 902 | 34.9% | 657 | 319 | 976 | 35.4% | |
| TOTAL | 1,560 | 763 | 2,323 | 45.0% | 1,601 | 784 | 2,385 | 44.6% | |
Health and safety metrics
ESRS S1-14
Viscofan works with the belief that it is possible to avoid all occupational accidents. Hence, it not only ensures that its facilities are safer, but also that its staff throughout the whole Group are aware of the fundamental importance of safety issues. To this end, Viscofan has the occupational health and safety policy described above.
This policy is overseen by the operational sustainability department, in close cooperation with the corporate and local human resources departments.
In parallel, in order to meet the organisation's occupational health and safety commitments, all plants work with Health and Safety Management Systems based on the guidelines issued by the corporate department and certified according to the ISO 45,001 standard, the international benchmark for occupational safety management systems. Thus, 100% of Viscofan's workforce is covered by this system.
Health and safety management system
Based on the occupational health and safety policy, Viscofan has a strategy and business model specifically designed to address material health and safety incidents and risks.
Firstly, we work towards the objective of zero accidents, with accident prevention integrated and managed at local level in the production plants, which have a management system based on the guidelines set at corporate level for all implementations and certified according to the ISO 45001 standard, the international benchmark for occupational safety management systems.
On this basis the corporate operational sustainability team plays a crucial role in ensuring that all production sites operate according to established standards, not only in compliance with local and national laws, but also based on an internal framework of standards that places a strong emphasis on accident prevention.
Overall, health and safety management is a dynamic process with the following components:
- Risk assessment and analysis: production plants have an assessment to identify potential sources of risk. This includes the analysis of production processes, ancillary and service phases that could lead to accidents.
- Monitoring and continuous improvement: Viscofan continuously monitors the areas at risk of occupational accidents. This monitoring is done through regular audits, inspections and detailed risk assessments, with the aim of proactively identifying and addressing any potential hazards.
- Awareness and training: Based on the occupational health and safety policy, the promotion and exchange of best practices in occupational health and safety is encouraged, as well as awareness-raising, training, education and continuous information to promote safe behaviour and a culture of excellence.
- Investments in equipment: Viscofan promotes investment in the plants by seeking as far as possible the best available technologies in terms of health and safety at work.
- Audits: internal and external audits are carried out to assess the effectiveness of the measures implemented. Furthermore, Viscofan is working towards the goal of certifying all its plants under the ISO 45001 standard.
Accident types are consolidated into specific categories, allowing analysis of accident trends and patterns, and providing a solid basis for implementing appropriate prevention measures.
When an accident occurs, an investigation protocol is immediately activated. This process includes the collection of detailed information about the incident, interviews with those involved and witnesses, and analysis of the conditions that contributed to the accident. Based on this investigation, improvements and corrective actions are proposed to prevent the incident from re-occurring. Actions may include changes in work procedures, upgrading of safety equipment and additional training for employees.
The corporate department monitors the implementation of these improvements. This is achieved through regular reviews and compliance audits, ensuring that corrective actions are implemented effectively and sustained. In addition, detailed records are kept of all improvements implemented, allowing for continuous evaluation of their effectiveness and identification of additional areas for improvement.
For Viscofan, the material aspects affecting safety are based on the characteristics of the position. This explains Viscofan's constant effort to standardise procedures and disseminate the company's policy on the subject among the workforce, making specific courses and information available to employees in their work areas.
Coordination with suppliers and third parties on occupational health and safety applied to all Group activities is key.
In addition, the corporate operational sustainability team conducts comprehensive audits to assess and verify compliance with health and safety regulations at each facility. These audits not only review adherence to local and national laws, but are also based on an internal framework of standards.
A key part of their work is the assessment of health and safety management systems, ensuring that plants have adequate procedures in place to minimise the occurrence of a negative impact.
Finally, Viscofan has a corporate objective to reduce the severity rate, see the goals sub-section of this ESRS.
On this basis, Viscofan considers that it has a strategy in place to address material incidents and risks with the aim of preventing illnesses and accidents in the work environment. This qualitative analysis is based on the premise that both in the medium and long term it seeks to improve the current status.
In addition, the collective agreements of the different locations in which the Viscofan Group is present determine certain specifications in terms of matters related to health and safety.
Coordination with suppliers and third parties on occupational health and safety applied to all Group activities is key.
The details of the Viscofan Group's health and safety indicators based on the provisions of ESRS S1-14 are as follows:
| 2024 | 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Table of health and safety indicators | Men | Women | Total | Men | Women | Total | |||
| % staff covered by health and safety management system | 100% | 100% | 100% | 100% | 100% | 100% | |||
| Number of deaths from work-related injuries and health problems | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Number of accidents | 62 | 19 | 81 | 85 | 20 | 105 | |||
| Occupational diseases | 1 | 3 | 4 | 5 | 0 | 5 | |||
| Accident rate 1 | 0.13% | 0.09% | 0.12% | 0.16% | 0.10% | 0.14% | |||
| Severity Index 2 | 0.16 | 0.12 | 0.15 | 0.20 | 0.13 | 0.18 | |||
| Frequency Index 3 | 8.46 | 6.50 | 7.90 | 11.30 | 6.60 | 10.0 | |||
| Absenteeism rate 4 | 5.35% | 7.01% | 5.83% | 4.19% | 4.43% | 4.26% | |||
In the 2024 financial year, the number of accidents in the Group reduced by 23% compared to the previous year and the severity index also reduced thanks to the constant improvement in the health and safety management system described above.
Work-life balance metrics
ESRS S1-15. Phased-in disclosure requirement
The Viscofan Group is not reporting this information in this Sustainability Report as it is a phased-in disclosure requirement and is therefore exempt from reporting in the first year of the Sustainability Report as per Appendix C of ESRS 1.
Compensation metrics (pay gap and total compensation)
ESRS S1-16
Within the area of remuneration, 75% of the company's employees are covered by general collective bargaining agreements, therefore improving the minimum conditions set by the different employment legislation. Collective Bargaining Agreements regulate the remuneration received by the workers who sign them, and in particular establish criteria of equity between similar jobs, thus avoiding gender discrimination and the wage gap between equivalent jobs. The Group's average remuneration is €37,882 (€37,002 in 2023): €40,598 for men (€40,125 in 2023) and €31,293 for women (€29,545 in 2023). This difference in average remuneration corresponds to a multitude of factors, from the gender composition of the Group, to its geographical presence, the different distribution of jobs, their level of specialisation, the night shifts for a continuous production process of 24 hours, danger and seniority bonuses, etc., which are in line with the industrial context, the composition of the workforce and the history of the Viscofan Group.
In order to be able to carry out internal monitoring of possible gender-based pay differentials, the guidelines of the job evaluation project carried out in Spain in 2021 have been followed, with the aim of identifying comparable grades, i.e. those which, due to the nature of the functions or tasks effectively entrusted, the educational, professional or training conditions required for their exercise, the factors strictly related to their performance and the conditions in which these activities are carried out, are equivalent. This analysis was carried out with the help of the consulting firm Willis Tower Watson, which made it possible to identify up to 21 equivalent grades within Viscofan.
Based on this experience, the equivalent in degrees was analysed internally for all the companies included in the scope of consolidation. Hence, the remuneration by degrees and gender was analysed in the different towns, to identify salary gaps, understood to be the difference between the fixed salaries of men and women with respect to the fixed salary of men in each of its degrees. Based on this analysis, Viscofan can monitor the performance of this indicator in the most significant degrees and therefore be able to establish the measures for its improvement.
The result of this analysis is summarised in the weighted pay gap of the Viscofan Group. In addition, the gender pay gap calculated in accordance with the provisions of point AR 101 of this ESRS is detailed below:
| Gender pay gap | 2024 | 2023 |
|---|---|---|
| Viscofan Group (Weighted) | 10.6% | 12.0% |
| Viscofan Group | 22.9% | 26.4% |
Furthermore, the ratio between the total annual remuneration of the highest paid person and the median total annual remuneration of all employees (excluding the highest paid person) is 55.9.
Incidents, complaints and severe human rights impacts
ESRS S1-17
Viscofan has the Ethics Channel. Integrity Line on which any interested person can file a complaint about, among others, cases of discrimination, including harassment and the grounds set out in point 102 of the ESRS S1. In this regard, no complaints have been received on this channel about this type or in relation to the issues defined in section 2 of the ESRS S1.
The figures of complaints have been obtained and aggregated from the computer system of the Ethics Channel. Integrity Line managed by the ethics and regulatory compliance committee and whose characteristics have been detailed in the ESRS G1 Business Conduct.
There have been no significant fines, penalties or damages as a result of the cases and claims listed above. See note 13.3 of Contingent Assets and Liabilities in the Annual Report to the Consolidated Financial Statements.
Furthermore, there have been no cases of serious incidents related to human rights, nor are there any fines, sanctions or compensation for this concept. See note 13.3 of Contingent Assets and Liabilities in the Annual Report to the Consolidated Financial Statements.
