Working together for the future of plastics.

ESG Report 2023

Committing to sustainability

Working together for the future of plastics.

Kafrit Group's approach to ESG

This pdf uses links and an interactive table of contents to help you navigate.

Jump from chapter to chapter using the top menu on each page. Choose what section you want to view on each chapter cover. Return to the contents section by clicking the Kafrit "K".

• Our strategy and pillars for a sustainable future
• Caring for the whole value chain
• Research and Development (R&D)
• Stakeholder engagement
• 2023 ESG highlights and achievements
• ESG goals
• Materiality analysis
• ESRS index relevant to Kafrit Group

Opening statements

• A letter from our Chairman of the Board
• A letter from our Chief Executive Officer
• Kafrit Group's sustainability journey
• October 7th remembrance

Kafrit Group overview

• About Kafrit Group
• How it all started and global presence
• Our products and technologies
• Our purpose

ESG Report 2023

Opening statements

» A letter from our Chairman of the Board
» A letter from our Chief Executive Officer
» Kafrit Group's sustainability journey
» October 7th remembrance

For more than four years I have enjoyed the privilege of chairing Kafrit Group. Established around 50 years ago by kibbutz Kfar-Aza, Israel, which still holds the majority of shares today, our organization has become an industry-leading and multinational company in the masterbatch and compound arena.

Today, it is my pleasure to welcome you to Kafrit Group's first ESG report. After publishing companyspecific ESG reports in recent years, we as Kafrit Group have decided to lead the way to sustainability with a group-wide approach. Therefore, this document is a milestone in our sustainability journey. It shall provide a transparent overview of the group's 2023 ESG performance, as well as our ambitious plans for the future.

Based on the recently published European Sustainability Reporting Standards (ESRS), we are choosing to voluntarily disclose ESG information. We strongly believe it is the right move to share our experiences, achievements and challenges with our stakeholders. In addition, we actively seek to foster coalitions with our industry partners to enhance the sustainability agenda, since we consider this to be a joint task.

This is also a moment in which Kafrit Group has shown remarkable resilience after the October 7th, 2023 Hamas attack on our home, kibbutz Kfar-Aza. In early 2024, we saw two acquisitions of new companies in North America, ABSA RESINS CAN and BADGER COLOR USA. This grew the number of companies in Kafrit Group to nine, with a turnover of over \$350 million and about 800 employees.

Together, we work hard to embed sustainability into our daily operations and business practices, and I am grateful to see all our employees actively contribute to this journey.

Finally, I would like to thank our customers, suppliers and shareholders for their long-lasting trust and partnership, especially in these challenging times.

Dr Itzick Sharir Chairman of the Board

A milestone in our sustainability journey

A letter from our Chairman of the Board

Dr Itzick Sharir Chairman of the Board

Daniel Singer Chief Executive Officer of Kafrit Group

It is with immense pride and a sense of purpose that I welcome you to our first Environmental, Social and Governance (ESG) report. Today, we embark on a journey of increased transparency, accountability, and shared responsibility — a journey that transcends mere corporate obligations and resonates with our core values. This journey is led by our purpose, to unite talent and technology to drive the future of plastics.

During the terror attack on the south of Israel on October 7th, 2023, we all experienced horrific loss as some of our team members, board members, family members and other civilians were killed or kidnapped — including children, women, the elderly and the sick. These horrendous events reminded us of the importance of our basic human values. Following the global ESG dialogue and common social values, the business community should condemn these unacceptable actions, regardless of political views or discrepancies.

We are committed to listening to our stakeholders and understanding their expectations. We critically assess our own performance and set up long-term goals on topics that are becoming crucial for us and many of our partners. Therefore, as you delve into this report, you should know that your voice matters. Your questions, insights, and challenges propel us. So let us engage in a dialogue as we compose a future where plastics serve modernity and humanity, without compromising our planet.

I am proud to be part of Kafrit Group. Together we challenge ourselves to raise the bar in every business area as an ongoing practice, and overcome any crisis.

Daniel Singer Chief Executive Officer

Note: This opening statement is an invitation — an open door — to all stakeholders to join us on our purpose-driven journey. Let us harmonize talent and technology, working together for the future of plastics.

Transcending corporate obligations

A letter from our Chief Executive Officer

Believing in transparency

Kafrit Group's sustainability journey

Adopting the ESRS early

The ESRS are currently reshaping the sustainability reporting landscape. These new standards are intended to harmonize and enhance sustainability reporting throughout the European Union. This affects companies like ours with production sites in the EU but global headquarters in a non-EU country. While implementation poses challenges for every company, despite the high interoperability between Global Reporting Initiative (GRI) and ESRS, we have made a proactive decision to adopt the ESRS pathway early. This deliberate choice allows us to thoroughly prepare our organization.

Since Kafrit Group saw several acquisitions in the past years, a consolidated group report was a logical progression. We strongly believe this report reflects our ambitious commitment towards sustainability more clearly than any report we have published before.

Fabian Schulte Kafrit Group Sustainability Leader

By applying the European Sustainability Reporting Standards (ESRS), this report reflects our ambitious commitment towards sustainability and signals a robust approach to corporate responsibility and ethical practices across our businesses.

As a leader in the masterbatch and compound industry, we recognize the opportunity for

positive change. Our focus in this arena reflects a substantial shift in attitudes towards sustainability and presents a strong commitment to advance our environmental, social and governance performance. The emergence of stringent regulations offers an added challenge, but we view them as essential drivers to innovate and harness greener practices. We believe in transparent engagement with our stakeholders, as the sustainability journey cannot be mastered without relevant partners.

Our recent ESG achievements

Despite our past acquisitions and organic growth, we remain a relatively small entity compared to industry giants. Nevertheless, this does not deter us from actively engaging with the sustainability agenda. Specifically, we have utilized recent years to establish a robust foundation. For example:

Establishing a smart ESG data collection and analysis process
Executing Corporate Carbon Footprint (CCF) calculations in all our production sites
Commencing efforts to enhance efficiencies in our operations
Engaging with our numerous stakeholders
Creating sustainable product solutions

We are probably still far from perfect, but we are on the way.

How we invite stakeholders to participate

Believing in transparency sustainability — Kafrit Group's sustainability journey >> continued from previous page

We actively approach our communities, open our doors and participate in expert panels or in sustainability days at schools. We want to enrich the debate and demonstrate the material role our industry and products can and must play.

We are always open to any kind of input, sitting down with every stakeholder, trying to understand concerns and answering adequately. Not just by listening, but also by doing.

Fabian Schulte Kafrit Group Sustainability Leader

Strength and resilience

October 7th remembrance

Everything was ready for the last week of October 2023, prepared to celebrate the 50th anniversary of Kafrit Group. Others had different plans. As it is well known, on October 7th, the South of Israel suffered from a horrendous terrorist attack by Hamas, where more than 1,200 innocent civilians were murdered and more than 250 men, women, children and elderly people were taken hostage to Gaza. We as a team experienced unprecedented loss as some of our team members, board members and family members were killed or kidnapped.

We are still devastated by the loss of our team member, Dorit Bar Ilan, our board member, Aviv Kutz, and our SVP Business Development and Innovation, Nadav Goldstein. All of them significantly contributed to Kafrit Group over many years. Other team members have lost children, partners or siblings; two team members have three children kidnapped in Gaza, among 120 hostages still held by Hamas.

Basic human values should not be empty words. Fortunately, we saw some members of the business community condemning these

unacceptable actions, regardless of political views or discrepancies, but more than that we experienced strong support and actions of solidarity by lots of customers, suppliers, investors and other members of our eco-system.

Starting on November 8th, the KAFRIT IL plant gradually resumed operations until it became fully operationally again at the end of December, 2023. Working together, we started to overcome any obstacle, advance our commitments to all our stakeholders, and emerge stronger than ever.

Kafrit Group remains a pillar of strength and resilience. Our history is a testament to our ability to overcome severe crises, and this challenge will be no different. We firmly believe that, together, we will not only endure but thrive, continuing to lead in the industry, striving for a brighter and better future.

We are praying for the fast return of all the hostages back home, as soon as possible.

ESG Report 2023

Kafrit Group overview

» About Kafrit Group
» How it all started and global presence
» Our products and technologies
» Our purpose

We are a globally-active, leading producer of masterbatches and compounds for the plastics processing industry, currently employing around 800 people (538 employees in the reporting period). In 2023, we achieved about \$300 million turnover.

Today, a total production capacity of more than 150,000 mt underlines our ambitions as a multinational player. Moreover, we consist of nine companies operating a total of ten production sites.

The latest arrivals to Kafrit Group, ABSA RESINS CAN and BADGER COLOR USA, who were both acquired in early 2024, are not included in the 2023 ESG reporting.

Who we are

About Kafrit Group

All of this began in 1973, when Kafrit was founded in kibbutz Kfar-Aza in Israel. Since then, the company has grown both organically as well as via acquisitions. Today, the group incorporates:

KAFRIT IL in Israel
CONSTAB GER and DELTA KUNSTSTOFFE GER in Germany
ADDVANZE SWE in Sweden
CONSTAB CN in China
US-based POLYFIL USA and BADGER COLOR USA
And the Canada-based companies KAFRIT NA and ABSA RESINS CAN

From the kibbutz to the world

How it all started and global presence

With more than 50 years of producing masterbatches and compounds for the plastics processing industry, we draw on high levels of experience, expertise and technical know-how.

We develop and produce solutions which enhance the making of high-quality end-products in many different applications.

BOPP/BOPE film

Our BOPP/BOPE masterbatches are intended for films produced in biaxially-oriented stretching, allowing for differentiated mechanical properties and facilitating a smoother production process.

Colors

Our concentrates are designed to provide color and shade to the final product across a wide range of applications, including injection, blow molding and more.

Polyethylene and polypropylene film

Our masterbatches are designed to optimize the production process of PE and PP films as well as to provide the films with desired, specific properties such as antioxidant, antislip, antiblock and others.

Agricultural film

Our agricultural masterbatches and compounds impart crucial properties to films, sheets and nets in agricultural use-cases such as greenhouses, tunnels, mulch and ground covers.

Flame retardants

Our flame retardants delay ignition, slow down flame progress, enable self-extinguishing and reduce combustible ingredients in the final product, applied in sheets, films, foams and more.

PEX

Our cross-linked polyethylene compounds are used to produce piping for hot water, underfloor heating, oil and gases, providing resistance to very high pressures and heat.

Conductive compounds

Our conductive compounds protect sensitive electronic components from uncontrolled discharge and prevent electrostatic charge by systematically modifying plastic materials for applications such as injection molding, thermoforming and more.

Technical and custom-made compounds

Our technical solutions provide different properties for different applications such as foaming agents, concentrates for fibers and nonwovens and other custom-made compounds.

Polycarbonate

Our PC concentrates are made to impart properties such as UV protection, light scattering and transmission to roofing panels, glazing and other products made of polycarbonate.

What we do

Our products and technologies

Unite talent and technology to drive the future of plastics, together.

"Unite talent and technology to drive the future of plastics, together." This purpose is the driving force of our organization.

It is the reason we do what we do, why we come to work every day. Although our group is made of many different companies around the world, our purpose unites us.

Our purpose

ESG Report 2023

Kafrit Group's approach to ESG

» Our strategy and pillars for a sustainable future
» Caring for the whole value chain
» Research and Development (R&D)
» Stakeholder engagement
» 2023 ESG highlights and achievements
» ESG goals
» Materiality analysis
» ESRS index relevant to Kafrit Group

Kafrit Group ESG Report 2023 — 15

Sustainability is part of our identity

Our strategy and pillars for a sustainable future

Our sustainability strategy is based on five key pillars, which together are meant to holistically integrate ESG considerations into our companies. Each of these pillars plays a crucial role in ensuring a comprehensive and effective sustainability approach.

Our sustainability aspiration is to make a better world through our people, product designs, aligned actions and collaboration with our stakeholders.

Operating sustainably

We continously limit the negative impact our operations have on the environment.

Living sustainably

We work to ensure that our people are safe and act according to our values.

Innovating sustainably

We help our customers to become more ecofriendly through product innovation.

Developing our business sustainably

We balance our portfolio through relevant business development and strategic alliances.

Reporting sustainably

We measure our actions, set long- and shortterm goals, and work to achieve results and report on them.

Kafrit Group ESG Report 2023 — 16

This pillar focuses on integrating sustainable practices into our core operations every day. This includes initiatives to reduce energy consumption, minimize waste generation, optimize water usage and enhance the overall efficiency of the production processes. Sustainable operations have a major impact on lowering our environmental footprint and contribute to the conservation of resources.

Operating sustainably

We actively promote a culture of sustainability within and beyond the organization. Our top priority is occupational health and safety (OH&S) and this does not stop when leaving the premises. In addition, we support sustainable practices among all employees, such as using public transportation, staying physically active or participating in community sustainability projects.

Living sustainably

Sustainability is part of our identity — our strategy and pillars for a sustainable future >> continued from previous page

Innovation plays a key role in sustainability. We constantly invest in research and development to create innovative products, technologies and solutions that are environmentally friendly and socially responsible, helping our customers become more sustainable at their end.

Sustainability is an increasingly important factor driving business growth, so we frequently explore new markets and opportunities. This involves aligning our products and services with the growing demand for sustainable solutions, and partnering with relevant industry players from along the value chain.

At Kafrit Group, ESG reporting is about transparently communicating our sustainability performance to all our stakeholders. Therefore, we have invested in establishing a robust ESG reporting infrastructure that enables the whole group to meet emerging ESG disclosure demands. This first group-wide ESG report, following former company-specific sustainability reports, is to be considered in this sense.

Developing our business sustainably

Sustainability is part of our identity our strategy and pillars for a sustainable future

Our place in the value creation

Caring for the whole value chain

Operating ten production sites at the heart of a multifaceted, resource- and energy-intense, globallydispersed value chain, we recognize the critical importance of adopting sustainable environmental, social and governance practices within our corporate operations. This forms a pivotal aspect of our business model and strategy.

Our business model relies on polymers and additives which are still mainly derived from petrochemical processes. However, we have started looking into renewable and recycled sources as well, underscoring the significance of responsible supply chain management. The masterbatches and compounds we manufacture are crucial components for our plastics processing industry customers, such as producers of flexible packaging, agricultural film and pipes and sheet, as well as injection and blow molders.

Long-term value

Caring for the whole value chain

As we navigate the complexities of supplying more than 70 countries, our commitment to reducing our environmental footprint, promoting social responsibility and championing ethical governance remains steadfast. We believe these ESG endeavors not only enhance our corporate reputation, but also create long-term value for all our stakeholders.

Producers of polymers and additives

Always striving for the best solution

Research and Development (R&D)

With more than 50 years of experience in the production of masterbatches and compounds for the plastics processing industry, we know that research, development and innovation are cornerstones of our business activities.

Every day, we aim to develop and produce solutions that enhance the manufacture of high-quality endproducts in many different applications.

Our goal is to provide a product portfolio offering sustainable solutions at the forefront of innovation. Following our purpose — to unite talent and technology to drive the future of plastics, together we employ R&D and lab teams consisting of more than 80 employees across the globe, most of them holding advanced science degrees. Our laboratories are located at our different sites in close connection to production and quality control facilities, and are furnished with sophisticated equipment.

Of course, our customers are the most important stakeholder of our R&D efforts, as ultimately our ambition is to serve their needs best, every day.

All this work brings life to the "Innovating sustainably" and "Developing our business sustainably" pillars of our sustainability strategy, and we are proud to be a selected industry partner.

In addition, cooperation with external research institutes and universities continuously enriches our R&D processes. We also maintain strong connections with machine manufacturers and raw material suppliers in various places, as we strive to increase the final product's benefits while optimizing the production process.

Special attention has recently been paid to start-ups and young technological companies working on serving the market with breakthrough sustainable innovation.

We love to partner

Stakeholder engagement

Stakeholder engagement is crucial to our business and sustainability efforts. We strongly believe in the power arising from the exchange of ideas, views and concerns, especially when it comes to sustainability. For this reason, Kafrit Group as a whole and our different companies on their respective local levels actively seek to engage with a variety of stakeholders. This engagement happens via multiple channels and touches upon various topics which, together with our key stakeholder groups, are summarized on the next page.

We know our stakeholders look at what we do from many different perspectives. Some have internal insights while others come from a broader external scope and enrich our exchange of views with experiences and best practices collected elsewhere. Whichever their perspective is, it is always valuable for us to understand what our stakeholders think, since this is the only way to fully embed our ESG ambitions into our group's network. With that said, and considering the role we play in the value chain, we are convinced that our sustainability journey can only be successful if all relevant stakeholders are part of it and have a say, following our purpose to unite talent and technology to drive the future of plastics, together.

We love to partner — stakeholder engagement >> continued from previous page

Employees

Channels of engagement: Yearly performance reviews, ongoing intranet communication, team meetings, town hall meetings, company-wide ESG approach.

Topics: Occupational Health and Safety (OH&S), well-being, DEI, sustainability strategy, economic development of the company, performance review, training, career development, compensation, collective bargaining.

Authorities and other regulatory agencies

Channels of engagement: Regular communication and reporting as required by legislation.

Topics: Sustainability strategy, employment opportunities, environmental and health protection, regulation.

Customers

Channels of engagement: Customer satisfaction survey, customer ESG survey, social media, company website, trade fairs, conferences, factory tours, sales and technical meetings, R&D projects.

Topics: Product quality, customer service, technical expertise, sustainability strategy, innovation, regulatory information.

Industry associations

Channels of engagement: Collaborative initiatives, conferences, meetings.

Topics: Regulation, sustainability strategy, innovation.

Suppliers

Channels of engagement: Social media, contractual negotiations, conferences, business reviews, R&D projects, technical meetings.

Topics: Performance review, product quality, sustainability strategy, innovation.

Financial partners

Channels of engagement: Regular meetings, quarterly reporting, company website. Topics: Sustainability strategy, ESG

considerations.

Shareholders

Topics: Business performance, HR policy, CEO salary approval, sustainability strategy, Occupational Health and Safety (OH&S), innovation.

Board of Directors

Channels of engagement: Quarterly board meetings, quarterly financial and business reporting, individual meetings.

Channels of engagement: Quarterly reporting, company website, shareholders' general assembly. Channels of engagement: Community engagement activities, meetings with community leaders, social media, company website.

Local communities

Topics: Sustainability strategy, employment opportunities, local support initiatives, environmental and health protection.

Channels of engagement: Social media, company website, recruitment days, campus presence.

Topics: Occupational Health and Safety (OH&S), well-being, DEI, sustainability strategy, economic development of the company, training, career development, compensation, community engagement.

Research institutes

Channels of engagement: Campus presence, R&D projects, technical meetings, social media, company website.

Topics: Innovation, employment opportunities, technical expertise, sustainability strategy.

Stakeholder engagement occurs at different hierarchy levels, occasions and practically every day.

The management teams on the local company level and the Kafrit Group leadership team meet regularly to discuss, analyze and solve potential findings called forth by stakeholders. Additionally, our Board of Directors is informed about views, concerns and interests of affected stakeholders in the quarterly board meetings.

Women make up 22% of our Board of Directors and an average of 29% of our local and global management

95.2% of our employees had an annual feedback session with their managers.

Our employees received an average of 10.1 training hours.

There were no confirmed incidents of corruption or legal cases brought against us.

We introduced a new Code of Ethics and Conduct, which includes clear mechanisms to raise concerns.

Despite not falling under European supply chain legislation, we began a process to define and implement sustainable procurement.

What keeps us motivated every day

2023 ESG highlights and achievements

* approach to calculate emissions was adjusted, now more granular in SCOPE 3

ESG goals

Emission reduction	A 50% reduction in SCOPE 1 and SCOPE 2 market-based emissions by 2030 across all companies, compared to the base year 2022.

Renewable energy	More than 50% of the electricity consumed by all companies across our group will be renewable by 2030.

Product Carbon Footprints (PCFs)	We will be able to provide PCF data for the whole product portfolio by 2027, showing that we acknowledge the importance of transparency in our value chain.

OH&S	Everyday safe: zero incidents, accidents or injuries.

Performance reviews	Grow our talent in a transparent feedback culture, with an annual performance review for each employee by 2026.

DEI	An average of 50% women employed in management positions across the group by 2030, building on our past gender equity achievements.

Training hours	Increase individual employee training and education to 12 hours a year by the end of 2025, and then to 15 hours a year by the end of 2027.

Corruption and discrimination	Zero tolerance — every year upright: zero cases of corruption or discrimination.

Defining what matters to us most

Materiality analysis

The Kafrit Group Sustainability Leader in accordance and collaboration with the Kafrit Group CEO identified material topics by following the double materiality approach (impact materiality/ financial materiality) brought forward by the European Sustainability Reporting Standards (ESRS). This approach is based on the IRO (impact/ risk/opportunity) evaluation process which was enriched by including different geographical perspectives and experiences from across Kafrit Group. These perspectives and experiences are constantly shared and discussed in the monthly Kafrit Group Global Sustainability Team meetings. Consultation with affected external stakeholders and external experts is a development potential for our next report.

Firstly, IROs were formulated based on the ESRS' sub-topics. As this is Kafrit Group's first, voluntary ESRS-based report, we did not continuously formulate IROs at a sub-sub-topic level. However, we tried to capture Kafrit Group's business reality in as

detailed a way as possible and seen from differing potential stakeholder views. This will ensure we do not miss possible IROs, taking into account Kafrit Group's various and globally dispersed production sites, the complex and mainly petrochemically based supply chain as well as the broad customer base in the plastics processing industry. Altogether, 94 IROs were named and could be linked to either upstream, downstream or own-value creation considerations.

All these 94 IROs were afterwards evaluated in internal debates based on their respective nature (impact, risk or opportunity) by considering scale, scope, irremediability and impact probability for impact materiality as well as severity and financial probability for financial materiality. Our evaluation was mainly based on personal as well as on group expertise, general news and specific specialist releases. The resulting scores of this step are not published in this report, but they are provided to Kafrit Group's auditor EY.

In a next step, we defined one percentual threshold, finally resulting in two absolute threshold values, one for each type of materiality, over which scores and their respective IROs are considered material.

This gave us an overview of all material ESRS topical standards to integrate into this report. Following the ESRS approach to determine topical standards first, and to nominate relevant data disclosure points per topical standard in a second step, we finally set up this year's ESRS data point structure. The topical standards ESRS S2 and ESRS S4 have not passed the defined materiality thresholds and are therefore not considered material for this report.

As this is the first time Kafrit Group identified, assessed and managed IROs in the spirit of the ESRS, the materiality analysis process differed from our former materiality assessment. We recognize a high level of topical accordance between our former assessment and this first IRO-based materiality analysis.

We think that both the formulation and evaluation of IROs, the threshold definition and the final derivation of data disclosure points represents Kafrit Group's business activities adequately. Any potential shortcomings in the materiality analysis will be addressed in Kafrit Group's next report.

Defining what matters to us most — materiality analysis

What is the ESRS?

The Commission adopted the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). This marks another step forward in the transition to a sustainable EU economy.

The standards cover the full range of environmental, social and governance issues, including climate change, biodiversity and human rights. They provide information for investors to understand the sustainability impact of the companies in which they invest. They also take account of discussions with the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI) in order to ensure a very high degree of interoperability between EU and global standards and to prevent unnecessary double reporting by companies.

Go to the next page to see an overview of all ESRS topics relevant to Kafrit Group, or click here to go to the complete ESRS Index to explore all individual data points.

The results of our materiality analysis

ESRS index relevant to Kafrit Group

GOV-1 The role of the administrative, management and supervisory bodies
GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies
GOV-3 Integration of sustainability-related performance in incentive schemes
SBM-1 Market position, strategy, business model(s) and value chain
SBM-2 Interests and views of stakeholders
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

ESRS 2 General disclosures

GOV-3 Integration of sustainability-related performance in incentive schemes
E1-3 Actions and resources in relation to climate change policies
E1-4 Targets related to climate change mitigation and adaptation
E1-5 Energy consumption and mix
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
E1-7 GHG removals and GHG mitigation projects financed through carbon credits

ESRS E1 Climate change

IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
MDR-P Policies adopted to manage material sustainability matters
E2-4 Pollution of air, water and soil

ESRS E2 Pollution

	IRO-1 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities
	MDR-P Policies adopted to manage material sustainability matters
	MDR-T Tracking effectiveness of policies and actions through targets
E3-4	Water consumption

ESRS E3

Water and marine resources

SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model(s)

IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities

ESRS E4 Biodiversity and ecosystems

IRO-1 Description of the processes to identify and assess material resource use and circular economyrelated impacts, risks and opportunities
E5-4 Resource inflows
E5-5 Resource outflows
E5-6 Potential financial effects from resource use and circular economyrelated impacts, risks and opportunities

ESRS E5

Resource use and circular economy

S1-1 Policies related to own workforce
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
S1-6 Characteristics of the undertaking's employees
S1-7 Characteristics of non-employee workers in the undertaking's own workforce
S1-8 Collective bargaining coverage and social dialogue
S1-9 Diversity indicators
S1-10 Adequate wages
S1-11 Social protection
S1-13 Training and skills development indicators
S1-14 Health and safety indicators
S1-15 Work-life balance indicators
S1-16 Compensation indicators (pay gap and total compensation)
S1-17 Incidents, complaints and severe human rights impacts and incidents

ESRS S1 Own workforce

SMB-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)
S3-2 Processes for engaging with affected communities about impact

ESRS S3 Affected communities

	GOV-1 The role of the administrative, supervisory and management bodies
G1-1	Corporate culture and business conduct policies
G1-2	Management of relationships with suppliers
G1-3	Prevention and detection of corruption or bribery
G1-4	Confirmed incidents of corruption or bribery
G1-5	Political influence and lobbying activities

ESRS G1

Business conduct

This overview is interactive.

Click on any section to jump to the corresponding page. Or click on any page number in the ESRS index to view its relevant information.

ESG Report 2023

Advancing environmental performance

» Working with energy and water
» Assessing GHG emissions
» Establishing waste, materials and pollution management
» Fostering biodiversity and ecosystems

Valuing our resources

Working with energy and water

Energy consumption and water withdrawal can serve as a critical benchmark in understanding an organization's commitment to intelligent and responsible resource use.

The immense significance of energy and water use lies not only in their direct impact on the operating costs of a business, but more essentially, on the broader environmental implications. Importantly, careful and intentional management of energy and water use demonstrates the commitment to sustainable operations, finally leading to the reduction of Greenhouse Gas (GHG) emissions.

At Kafrit Group, we acknowledge the inherent energy and water use of our operations. Being a group of manufacturing companies in the plastics processing industry, we rely on both energy and water for our production processes. Electricity powers our extrusion lines and molding machines, while water is essential for cooling and serves both drinking and sanitary purposes at our factories and offices. Therefore, both energy and water have proven to be material in this report's materiality analysis.

We know about our responsibility. For this reason, all group companies continuously screen their production processes and consumption patterns to identify improvement potentials. Neither have a group-wide energy and water policy nor a specific water-related target in place for the time being. However, ISO norms such as 14001 and 50001, which are already established in some companies and which are planned to be established in all group companies over the next few years, help us understand and manage these valuable resources better. Whereas in the past our underpinning conservation ethos has guided us to optimize water use and energy consumption pragmatically, our ambition is to develop specific policies and targets in the coming years to formalize our efforts.

By contrast, total water withdrawal decreased by 11.2% compared to 2022, mainly driven by efficiency increases in CONSTAB GER and DELTA KUNSTSTOFFE GER. Also, for the first time we report on water reused, with the ambition to grow this figure in the coming years.

Total energy consumption saw an increase of 7.6% in 2023 which was mainly caused by operating two plants in China for several months due to the inauguration of CONSTAB CN's new state-of-theart production facility and its raised production capacity. After COVID-19, business travel activities are back to normal resulting in a slightly increased

Valuing our resources — working with energy and water

fuel consumption from crude oil and petroleum (+1.1%). In addition, Kafrit Group's renewable energy consumption was about 17% of the total energy consumption, resulting in CONSTAB GER consuming 98.8% of its electricity from renewable sources (= 8,375,682 kWh).

Energy consumption Water withdrawal

Category	2022 in kWh	2023 in kWh	Change in %
Total energy consumption related to Kafrit Group operations	45,772,724	49,236,346	7.6%
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources	8,298,575	8,375,682	0.9%
Percentage of renewable sources in total energy consumption	18.1%	17.0%
Energy consumption from fossil sources (natural gas)	1,959,423	1,967,695	0.4%
Fuel consumption from crude oil and petroleum products (gasoline and diesel)	1,217,085	1,230,917	1.1%
Fuel consumption from natural gas (LPG)	274,931	259,957	-5.4%
Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources	34,022,711	37,402,095	9.9%
Percentage of fossil sources in total energy consumption	81.9%	83.0%

Category	2022	2023	Change in %
Total water withdrawal in m3	81,184	72,114	-11.2%
Water reused	not available	1,755,500	n/a
Net revenue in M-ILS	1,063.2	1,123.0	5.6%
Water itensity l/ILS	0.076	0.064	-15.9%

Valuing our resources — working with energy and water >> continued from previous page

Electricity consumption in kWh Water withdrawal in liters

		11,071,510
KAFRIT IL	-13.6%	9,562,905

		8,404,575
CONSTAB GER	0.9%	8,481,682

		4,211,005
LTA KUNSTSTOFFE GER	5.9%	4,460,942

		785,000
ADDVANZE SWE	3.4%	811,487

		3,655,231
POLYFIL USA	-0.6%	3,631,660

		2,298,611
KAFRIT NA	7.0%	2,459,038

		11,665,233
CONSTAB CN	40.3%	16,370,063

2022 2023

Reviewing electricity consumption and water withdrawal on company-level

As transparency matters to us, we publish companyspecific electricity consumption and water withdrawal.

We already highlighted on the previous page that electricity consumption and water withdrawal are unavoidably connected with production volume. With that said and for the sake of completeness, the temporary closure of our KAFRIT IL production site after October 7th, 2023 needs to be mentioned in order to understand the decreases both in electricity consumption and in water withdrawal.

Our goal

In all that we do, we always factor in our size and available resources. Based on this, we need to focus on the most relevant steps first instead of working on many improvement areas in parallel. For this reason, it is our goal that more than 50% of the energy consumed by all companies across the group will be renewable by 2030.

Understanding our impact

Assessing GHG emissions

Acting as a custodian of Earth

In this report, we place special emphasis on the critical issue of GHG emissions, undeniably a significant contributor to global climate change. The mitigation of these emissions is not just a responsibility, but a defining character of global corporations in the contemporary era, especially since the 2015 Paris Agreement.

We believe that reductions in GHG emissions are not only an opportunity to demonstrate good corporate citizenship, but evidence of strategic foresight. Successful implementation of emission reduction strategies signifies the organization's readiness to adapt to the future business environment, shaped heavily by evolving climate-related norms, regulations and stakeholder expectations.

By prioritizing the reduction of GHG emissions, companies can contribute significantly towards slowing the rate of global warming, thereby playing an essential role in the preservation of our planet.

It is a task not to be underestimated, encapsulating both the preservation of the global environment and the sustainable future of the company.

With that said, we understand that our emissions play a significant role in determining our ESG performance. Inevitably, the energy-intensive nature of our operations embodies actual negative impacts on the environment. Responding to this, we are dedicated to enforcing specific measures and have already started doing so. Our quest to minimize our emissions reflects our commitment to the planet's welfare.

As a company, we see ourselves as custodians of Earth, acting carefully within our ecological boundaries. By recognizing the negative impacts of our activities, we set the stage for transformation offering us a platform to shape a sustainable and ethical future. By assessing risks and stepping into opportunities, we adopt a culture of resilience

Consolidating GHG emissions at a Kafrit Group level

When calculating our corporate carbon footprint (CCF), we follow the Greenhouse Gas Protocol setting the standards for measuring and managing emissions and being the world's most widely used GHG accounting scheme.

As Kafrit Group we executed the CCF calculation for a second time, after doing it for the first time for 2022. Therefore, we consider 2022 as our GHG emission base year. While we used the services of a third-party sustainability consulting firm to calculate 2022 emissions, Kafrit Group put significant efforts into advancing an external ESG data collection and emission calculation platform which finally enabled data collection and emission calculation for 2023.

By using this platform, called ESGgo, we benefit from both a consistent methodology on how to obtain data and a new level of granularity when it comes to calculating specific emissions.

Understanding our impact — assessing GHG emissions

The platform primarily uses emission factors provided by DEFRA and EPA, whereas the external agency mainly used Ecoinvent, DEFRA, GEMIS and Quantis emission factors. In both cases, SCOPE 2 market-based emission factors were provided by us*1.

Neither the 2022 nor the 2023 CCFs consider SCOPE 3 categories 8-15. Partially these categories do not apply to Kafrit Group, partially we plan to include them in our upcoming reports. Especially, we prioritize including raw materials (= full SCOPE 3 category 1) as well as full upstream and downstream transportation to our next report (= full SCOPE 3 categories 4 and 9), provided necessary emission data is available.

Consolidated Kafrit Group CCF

SCOPE 3 emission breakdown

Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	920	935	1.6%
SCOPE 2 (market-based)	13,334	15,240	14.3%
SCOPE 2 (location-based)	20,292	23,359	15.1%
SCOPE 3	13,544	7,655	-43.5%
Total emissions (market-based)	27,798	23,830	-14.3%
Total emissions (location-based)	34,756	31,949	-8.1%

Category	2022		2023 Change in %
Category 1 - Purchased goods and services*2	183	110	-40.1%
Category 2 - Capital goods	8,202	2,134	-74.0%
Category 3 - Fuel and other energy related activities	3,172	3,524	11.1%
Category 4 - Upstream transportation*3	171	22	-86.9%
Category 5 - Waste in operations	1,040	983	-5.5%
Category 6 - Business travels (incl. hotel accommodation)	260	279	7.5%
Category 7 - Employee commuting (incl. remote work)	517	604	16.9%
Total	13,544	7,655	-43.5%

*1 With that said, certain differences in calculation results could be expected, nevertheless, after doing in-depth cross-checks, comparability between 2022 and 2023 CCF results is given

*2 Not including raw materials bought

^*3 Only including exchange logistics between production sites and external warehouses

Compared to the base year 2022, Kafrit Group was able to decrease GHG emissions by 14.3% on market-based and by 8.1% on location-based levels.

The CCF data for 2023 underscores our commitment to environmental stewardship. A key highlight is the 43.5% decrease in SCOPE 3 emissions where we could improve in several categories. The major decrease in capital goods' emissions is partially linked to more granular emission factors. Considering 2023 was the first full year after the COVID-19 pandemic, both business travel and employee commuting increased compared to 2022. The higher fuel and other energyrelated activities must be considered in close connection to overall SCOPE 2 emissions.

When analyzing SCOPE 2 emissions in detail, both market- and location-based emissions were primarily driven by the fact that we operated two factories in China in parallel for several months while moving from the old to the newly built production site. Also, the new production site comes with better air, waste and water treatment technology as well as significantly higher production volumes which both increase the total energy consumption in China as stated above.

Understanding our impact — assessing GHG emissions

Intensity

Our goal

When exploring these GHG figures, it is crucial to note the importance of these indicators to our stakeholder engagement strategy. While these numbers signify our environmental impact, they also reflect our ongoing commitment to transparency, accountability and continuous progress in our environmental performance. To strengthen our ambitions in emission reduction, Kafrit Group strives for a 50% reduction in SCOPE 1 and SCOPE 2 market-based emissions by 2030 across all companies compared to the base year 2022.

This goal was set in connection with the goal to use more than 50% of renewable energy by 2030, as formulated on page 31.

This concluded in market-based emissions amounting to 15,240 mt CO2e and location-based emissions reaching 23,359 mt CO2e. The difference between market-based and location-based emissions signifies our efforts in choosing cleaner and less carbonintensive energy sources, although we cannot yet achieve that in all geographies.

SCOPE 1 emissions saw a slight increase of 1.6% as DELTA KUNSTSTOFFE GER bought a new cooling system which had to be filled initially with refrigerants.

Category	2022	2023
Total emissions mt CO2e (market-based)	27,798	23,830
Total emissions mt CO2e (location-based)	34,756	31,949
Net revenue in M-ILS	1063.2	1123.0
GHG intensity mt CO2e/ILS (market-based)	0.026	0.021
GHG intensity mt CO2e/ILS (location-based)	0.033	0.028

2022	2023
27,798	23,830
34,756	31,949
1063.2	1123.0
0.026	0.021
0.033	0.028

Reviewing CCFs at a company level

Since we take transparency and accountability seriously, we also publish each assessed company's CCF individually. Without analyzing in detail, we can state that each company improved the individual CCF compared to 2022 both from market-based or location-based perspectives.

GHG emissions in an energy-intensive business such as our masterbatch and compound industry strongly interact with production volumes. That is why increased and utilized capacities in CONSTAB CN explain higher SCOPE 2 emissions there, while on the other hand, KAFRIT IL could not produce for a few weeks due to the October 7th, 2023, terrorist attacks.

Understanding our impact — assessing GHG emissions

It will be our task to further improve and verify the positive GHG emission development, while targeting our 2030 emission reduction goal.

Reviewing CCFs at a company level

Understanding our impact assessing GHG emissions

>> continued from previous page KAFRIT IL

ADDVANZE SWE POLYFIL USA

CONSTAB GER

KAFRIT NA

DELTA KUNSTSTOFFE GER

CONSTAB CN

Category	2022 mt CO2e	2023 mt CO2e	Change in %	Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	239	211	-11.5%	SCOPE 1	298	273	-8.3%
SCOPE 2 (market-based)	3,798	3,280	-13.6%	SCOPE 2 (market-based)	39	39	0.0%
SCOPE 2 (location-based)	5,205	4,496	-13.6%	SCOPE 2 (location-based)	3,223	3.252	0.9%
SCOPE 3	2,834	2,527	-10.8%	SCOPE 3	1,792	1,203	-32.8%
Total (market-based)	6,870	6,018	-12.4%	Total (market-based)	2,129	1,516	-28.8%
Total (location-based)	8,278	7,234	-12.6%	Total (location-based)	5,313	4,729	-11.0%

Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	11	22	108.5%
SCOPE 2 (market-based)	79	90	12.9%
SCOPE 2 (location-based)	25	22	-12.5%
SCOPE 3	432	117	-73.0%
Total (market-based)	522	229	-56.3%
Total (location-based)	468	161	-65.6%

Category	2022 mt CO2e	2023 mt CO2e	Change in %	Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	155	120	-22.7%	SCOPE 1	90	79	-12.3%
SCOPE 2 (market-based)	1,422	1,514	6.5%	SCOPE 2 (market-based)	28	27	-2.2%
SCOPE 2 (location-based)	1,121	1,114	-0.6%	SCOPE 2 (location-based)	32	34	6.8%
SCOPE 3	690	610	-11.7%	SCOPE 3	582	339	-41.8%
Total (market-based)	2,267	2,244	-1.0%	Total (market-based)	699	445	-36.4%
Total (location-based)	1,966	1,843	-6.3%	Total (location-based)	704	452	-35.8%

Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	88	191	117.2%
SCOPE 2 (market-based)	1,183	959	-18.9%
SCOPE 2 (location-based)	1,615	1,711	5.9%
SCOPE 3	1,542	801	-48.1%
Total (market-based)	2,814	1,951	-30.7%
Total (location-based)	3,245	2,703	-16.7%

Category	2022 mt CO2e	2023 mt CO2e	Change in %
SCOPE 1	32	34	5.3%
SCOPE 2 (market-based)	6,778	9,331	37.7%
SCOPE 2 (location-based)	9,072	12,731	40.3%
SCOPE 3	5,625	1,909	-66.1%
Total (market-based)	12,434	11,274	-9.3%
Total (location-based)	14,729	14,674	-0.4%

Take urgent action to combat climate change and its impacts

Carbon credits

In our quest for sustainable performance and responsible operations, CONSTAB GER is the pioneer in carbon credit utilization within Kafrit Group. By once more offsetting its, as of today, unavoidable company-related emissions via compensation with 4,256 climate protection certificates (based on the 2022 CCF) in December 2023, CONSTAB GER renewed its status as a climate-neutral company. It has done this by supporting climate protection projects in the Global South, specifically India and Brazil, since 2020.

In parallel, the company has been reducing the number of unavoidable emissions and thereby actively contributes to the group's overall emission reduction goal. It has always been important to Kafrit Group to choose reliable projects which all meet recognized quality standards (UN CER and Verified Carbon Standard) and are approved by wellknown validators (TÜV Nord and Bureau Veritas).

Understanding our impact — assessing GHG emissions

This approach is poised to expand across the group with DELTA KUNSTSTOFFE GER primed to follow suit from 2024 onwards. While aligning our operational processes to the global climate agenda, we are exploring equivalent environmental initiatives for other companies within Kafrit Group, emphasizing our commitment to combating climate change.

Want to know more?

Click here to download our brochure detailing CONSTAB GER's climate neutrality efforts.

Embedding circular business practices

Establishing waste, materials and pollution management

We acknowledge and appreciate that the plastics industry in general takes steps to implement circular economy models into operations, since enhanced resource use optimization must be a vital part of the industry's sustainability efforts. These endeavors signal a shift from the traditional 'take-makedispose' pattern, towards a more nuanced 'reducereuse-recycle' strategy. This systemic approach does not only minimize resource waste, but also elevates the value derived from existing assets.

In light of this overall development and to underline our corporate responsibility, Kafrit Group also made vigorous efforts to grow waste data transparency in 2023. We actively monitor waste recordings onsite, e.g. embedded into our ERP systems, and thereby keep track of our waste volumes and waste streams across all companies. For waste accounting, Kafrit Group relies on local legislation and definitions, especially when it comes to hazardous waste.

In 2023, a total of 1,715 mt of waste was generated through our masterbatch and compound manufacturing operations and all waste was treated offsite. By waste in our operations, we primarily

mean lumps and raw material loss from our extrusion lines as well as raw material packaging, wooden pallets, paper, solid municipal waste and metal waste. Reparability of raw materials is not applicable to our industry. In detail, we successfully diverted a significant volume of waste (1,097 mt) by employing a variety of methods.

We prepared 271.7 mt for reuse and recycled 732.9 mt (42.7%). Composting constituted a smaller portion of our efforts at 5.1 mt, and we additionally provided 87.3 mt to other recovery operations. These results pave the way for our ongoing impact on sustainability and stakeholder engagement because we know there is room for more improvement. Part of the improvement potential is linked to waste directed to disposal quantities (618 mt). We directed 321.1 mt of waste towards incineration and must report landfill waste volumes of 295.2 mt. Other disposal operations represented a minuscule portion of waste, at 1.7 mt. No radioactive waste was reported for 2023.

In terms of hazardous waste, a total of 210.5 mt was generated, mainly driven by CONSTAB GER and CONSTAB CN and changing waste classification rules. Both companies serve the markets with additive masterbatches containing ingredients which are considered as hazardous waste when

Embedding circular business practices — establishing waste, materials and pollution management >> continued from previous page

Hazardous and non-hazardous waste in mt

not ending up in the final product. 163.7 mt were diverted and 46.8 mt were directed to disposal.

A total of 1,504.5 mt non-hazardous waste breaks up into 933.3 mt of waste diverted and 571.2 mt of waste directed to disposal.

Detailed hazardous and non-hazardous waste overviews

Embedding circular business practices — establishing waste, materials and pollution management >> continued from previous page

Waste directed to disposal by other disposal operations 1.7 mt

Waste directed to disposal by landfilling 0.4 mt

Waste directed to disposal by incineration 44.7 mt

Waste diverted from disposal due to other recovery operations 87.3 mt

Waste diverted from disposal due to recycling 75.2 mt

Waste diverted from disposal due to preparation for reuse 1.2 mt

Waste diverted from disposal due to composting

Embedding circular business practices — establishing waste, materials and pollution management >> continued from previous page

Reviewing waste at a company level

Diverted: 51.5 mt Disposal: 41.5 mt Non-hazardous: 92.3 mt Hazardous: 0.7 mt

POLYFIL USA Total: 167.0 mt

-

Diverted: 145.0 mt Disposal: 22.0 mt
Non-hazardous: 167.0 mt Hazardous: 0.0 mt

KAFRIT NA Total: 87.5 mt

Diverted: 77.3 mt Disposal: 10.2 mt
-

Non-hazardous: 87.1 mt Hazardous: 0.4 mt

Diverted: 342.5 mt Disposal: 64.5 mt
-

Non-hazardous: 287.5 mt Hazardous: 119.5 mt

Materials used

Although most of our material resource inflows result from fossil-based petrochemical processes, it is Kafrit Group's ambition to enhance the number of use cases for recycled and renewable input materials.

Our R&D teams around the globe actively explore suitable raw material sources and discuss potential applications with our customers as we strongly believe that the incorporation of circular business practices is a joint task for our stakeholders and us.

Embedding circular business practices — establishing waste, materials and pollution management >> continued from previous page

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Pollution

In addition to waste and materials management, it is inherent in the nature of our operations that pollution is a topic that ranks high in our materiality analysis. Both pollution of water, pollution of soil and pollution of air are ESRS sub-topics that need to be considered as material for a plastics processing company such as Kafrit Group.

Of course, all our production sites need to comply with local regulations regarding pollution. On top of that, since our raw materials are delivered to us either in the form of pellets, as powder or as a liquid, and as our final products are pellets as well, Kafrit Group actively recognizes the potential risks of environmental pollution and contamination by pellet loss, respectively microplastics. Each company has internal awareness creation programs and

Embedding circular business practices — establishing waste, materials and pollution management >> continued from previous page

procedures in place to minimize pellet loss as much as possible, CONSTAB GER even underwent a zeropellet loss audit. Such an audit is an awareness creation campaign which we also plan to execute in other production sites in the upcoming years.

In general, we can state that our companies act with a high degree of responsibility to mitigate negative pollution impacts, amongst others by filtering dust from the factories' chimneys, by purifying the chimney gases and by executing building works in specific areas of the plants to avoid pollution. The latter is especially true for CONSTAB CN, now operating in a new factory meeting the highest environmental standards. To continue improving, we will consider establishing a pollution policy including specific pollution targets.

Realizing essentials

Fostering biodiversity and ecosystems

Biodiversity, in simplest terms, refers to the rich variety of life on Earth. It includes all species of plants, animals and microorganisms and the complex ecosystems they form. For this reason, biodiversity and healthy ecosystems are necessary to provide essentials such as the food, water, air to breathe and bearable living conditions we rely on. In recent years, an increasing number of reports talked about impacts on the state of species, biodiversity losses and water risks.

We, as a globally operating group of companies, want to prioritize these issues and have started working on improving our understanding and management of impacts to biodiversity and ecosystem services.

As outlined in the value chain section, we act in the middle of the plastics processing industry and are aware of the energy and resource intensive nature of the whole value chain. GHG emissions impact on global warming, water withdrawal may endanger species and pollution may jeopardize ecosystems.

decent living and working conditions. In other words: A loss of biodiversity and healthy ecosystems constitute systemic risks not just to society and economy in general, but also to our business model in particular.

Our goal

Furthermore, acknowledging the importance of transparency in our value chain, by 2027, Kafrit Group wants to be able to provide Product Carbon Footprint (PCF) data for the whole product portfolio. These PCF reports shall help increase an understanding of which products support our and our customers' sustainability efforts and where we need to improve. Be it in our own operations or upstream in the value chain. As a matter of fact, we have started calculating PCF data for selected products already.

For us, it is obvious that prospering business activities must be aligned with measures to foster biodiversity and ecosystems, since only these measures will make it possible to maintain our operations, keep and attract talent and provide

Kafrit Group is still in the early stages of adequate biodiversity and ecosystems analyses, and although the underlying topical standard ESRS E4 could have been voluntarily omitted in this report, we actively chose to talk about it.

Realizing essentials — fostering biodiversity and ecosystems

Water risk Biodiversity risk Low-Medium Medium Medium-High Low High Extremely High
1
2
3	8
4	4 9 5
5	9
6
7
8
9

ESG Report 2023

Creating valuable social impacts

» Enhancing diversity, equity and inclusion (DEI)
» Ensuring occupational health and safety (OH&S)
» Promoting employment rights
» Facilitating training and education
» Living community engagement

What makes us strong

Enhancing diversity, equity and inclusion (DEI)

Workforce DEI is an essential aspect of modern business success, unifying a variety of perspectives, experiences and backgrounds under one corporate banner. This dynamic encourages broad thought, fosters innovation and enriches problem-solving approaches by leveraging the varied knowledge and abilities of diverse talents. Not only does it serve as the key to unlocking a company's growth potential, but an inclusive workforce also underlines a commitment to social responsibility and ethical practices.

The importance of DEI extends beyond corporate walls, influencing stakeholders' perceptions, and molding relationships with clients, partners and the broader community. Therefore, monitoring and cultivating DEI with strength and intent is not just a moral imperative, but a strategic business choice that impacts on an organization's overall performance. In other words, when we state that our purpose is to unite talent and technology to drive the future of plastics, together, then the talent part necessarily symbolizes a diverse and inclusive workforce.

Within this context, we openly discuss our involvement with actual and potential negative impacts and rank our own workforce's working conditions high in the group's materiality assessment. With that said, we acknowledge that our operations hold a certain health and safety risk, especially to our operations personnel, and we know that shift systems nowadays must meet employees' living realities. By paying attention to the complexities of our operations, we ascertain that tangible actions are taken to transform them into positive socio-economic dividends, thereby aligning with our core objectives of fostering DEI as an integral part of sustainability.

In 2023, the total number of employees reached 538 by head count at the end of the reporting period, which was 1.8% less than in 2022. This stable employment level does not only signify our economic resilience in a challenging year seen from a macroeconomic perspective, but also underscores our commitment to job creation and social impact. As we continue to flourish, the importance of fostering an inclusive and diverse company culture remains paramount.

What makes us strong — enhancing diversity, equity and inclusion (DEI) >> continued from previous page

Valuing female representation

Historically, our business is an environment that mainly attracts men as workers. However, we recorded female representation of 22.9% among our workforce. We see similar female ratios at a company level as well. It is Kafrit Group's ambition to employ more women since we experience the benefits of diverse teams every day.

In our management teams across the globe, we already see higher female representation than among the total workforce. 29% of all managers (executive and non-executive level) were women in 2023, and it is our belief that we as Kafrit Group must attempt to reach a gender equilibrium in the coming years.

Furthermore, we can state that no significant pay differences between women and men in similar or parallel positions were reported for any company in 2023.

Achieve gender equality and empower all women and girls

Employees by gender

Company	Number of employees	Male	Female	Female representation per reporting unit
KAFRIT HQ	4	4	0	0.0%
KAFRIT IL	149	111	38	25.5%
CONSTAB GER	129	92	37	28.7%
DELTA KUNSTSTOFFE GER	69	56	13	18.8%
ADDVANZE SWE	24	19	5	20.8%
POLYFIL USA	35	31	4	11.4%
KAFRIT NA	22	18	4	18.2%
CONSTAB CN	106	84	22	20.8%
Total	538	415	123	22.9%

Our goal

We strive for an average of 50% women employed in management positions across the group by 2030, building on our past gender equity achievements.

Benefiting from different age groups and job categories

Like gender, different age groups help add important perspectives and valuable experiences to our operations. That is why we are pleased to employ significant numbers of young professionals as well as experienced colleagues, in addition to 54.1% of employees between 30 and 50 years.

At a job category level, Kafrit Group benefits from a manager-to-employee ratio of 13.6% which is in line with Harvard Business Review 's optimal suggestion (1:7). While 28.8% of all employees handle administrative functions, 57.6% of our workforce takes care of the production and shipping of our high-quality masterbatch and compound products.

What makes us strong — enhancing diversity, equity and inclusion (DEI) >> continued from previous page

Employees by age

Employees by job category

Total	538
50 and above	172	32.0%
30-50	291	54.1%
Under 30	75	13.9%
Age groups	2023	Representation in %

Total	538

Job category	2023	Representation in %
Management (all levels)	73	13.6%
Service and sales workers	155	28.8%
Operatives	310	57.6%
Total	538

Parental leave

Our company's steadfast dedication to promoting and facilitating work-life balance is underscored by the strides made around parental leave accessibility, in accordance with the respective national legislation.

From 29 employees entitled to parental leave, 27 employees took parental leave (93.1%). Out of those entitled to and taking parental leave, 33.3% were women and 66.7% were men. More precisely, nine out of nine women took parental leave, and from 20 men entitled to parental leave, 18 took parental leave. This signifies a positive trend in male employees availing the opportunity of parental leave, countering the former convention that child-rearing is predominantly a woman's role. We are proud to be able to support our employees by fostering their work-life balance and acknowledging the manifold dynamics of parenthood.

What makes us strong — enhancing diversity, equity and inclusion (DEI) >> continued from previous page

Turnover

Employee turnover carries significant importance within the framework of sustainability as low turnover rates exhibit the company's commitment to fostering an inclusive and supportive work environment, thus resulting in enhanced employee satisfaction and loyalty. For us, 2023 was a year with a moderate turnover rate of 15.8%, representing 85 employees that left Kafrit Group during the reporting period. We are aware that the manufacturing industries recently experienced turnover rates of partially more than 30% due to the COVID-19 pandemic, challenging shift systems and hard physical work. With this in mind, we acknowledge a comparatively low turnover rate across our companies, showing that our efforts to keep our employees satisfied and motivated pay off to a certain degree. This was especially true for KAFRIT IL exceptionally supporting all its employees after the terror attacks from October 7th, 2023. Nonetheless, keeping turnover rates low is a constant challenge and we are eager to accept it and improve further.

Shouldering social responsibility

Moreover, Kafrit Group is pleased to employ several workers with disabilities and is always looking forward to receiving new applications from people with disabilities. We do not discriminate, but actively promote equal opportunities everywhere. This includes any necessary effort that helps an employee with a disability to feel and act as an integral part of the company. Training and education, as described in the following pages, and a clear ethical compass, stated in the Kafrit Group Code of Ethics and Conduct, prove fundamental in shaping inclusive operations.

Want to know more?

Click here to download the Kafrit Group Code of Ethics and Conduct

Our most important priority

Ensuring occupational health and safety (OH&S)

OH&S is the number one topic in the monthly Kafrit Leadership Team (KLT) meetings as well as in the meeting culture of the individual companies. It must always be our key priority to make sure that all our employees return home safe and sound at the end of each workday. For this reason, all companies across the group provide their workforce with dedicated and regular safety training, and the easily accessible provision of personal protective equipment (PPE) such as safety shoes or hearing protection is essential.

Unfortunately, despite our efforts to create a work environment that is free of any OH&S risk, we recorded 10 work-related accidents in the reporting year that could have been prevented. This accounts for an OSHA rate of 1.82 at a group level.

We are firmly committed to achieving a zero recordable accident result and our goal is to create a culture of safety that is ingrained in everything we do. For this reason, we deeply analyze each accident and share the lessons learned across the group to avoid similar incidents from happening in other places. Besides, we actively encourage each employee to speak up should one see or experience something that is unsafe or could be improved. Kafrit Group stays committed to listening and responding to such appreciated feedback.

Fortunately, we neither had any fatality nor any case of recordable work-related ill health to report on.

2022

1.66

1.82 2023

OSHA rate*

*OSHA rate = No. of LTI/200k hours

Our most important priority — ensuring occupational health and safety (OH&S) >> continued from previous page

Reviewing OH&S at a company level

Although only two out of the seven companies could report zero recordable accidents in 2023, all companies have dedicated health and safety management systems in place that are motivated by risk management guidelines, and which comply with national legal requirements. Moreover, joint management-worker health and safety committees are active in all companies as well. In these committees, management and worker representatives regularly meet and discuss past OH&S incidents, potential risks and health and safety management improvements.

We are especially proud that KAFRIT IL as well as KAFRIT NA have already established the ISO 45001 certification as an internal OH&S benchmark in Kafrit Group. More of our companies are currently planning to undergo this certification in the near future, too. Additionally, the ISO 45001 certification in KAFRIT NA has been proceeded by OSHA's 18001 since 2005.

Still, we recognize that we as a group of companies have room for improvement.

Ensure healthy lives and promote well-being for all at all ages

*OSHA rate = No. of LTI/200k hours

OSHA rate by company

Company	OSHA rate*
KAFRIT IL	1.45
CONSTAB GER	0.00
DELTA KUNSTSTOFFE GER	6.64
ADDVANZE SWE	5.12
POLYFIL USA	0.00
KAFRIT NA	5.38
CONSTAB CN	0.70

Our goal

Our OH&S ambition is to strive for perfection and everyday safe: zero incidents, accidents or injuries.

We talk and act at eye level

Promoting employment rights

Our employees are our most important stakeholder group. They are the ones driving the operations and business activities forward and all of them are part of Kafrit Group's ESG efforts. Therefore, it is a key priority of the group and the local management teams to ensure that all employees feel good and safe when working for Kafrit Group.

As the group's operations are based in several countries, the local employment and social protection rights always form the basis. For all production sites, we can state that social protection against loss of income due to sickness and due to employment injury or acquired disability is established. Also, in our European production sites as well as in KAFRIT IL and CONSTAB CN, there is social protection against loss of income due to unemployment, parental leave and retirement, whereas our workforce in POLYFIL USA is protected from loss of income due to parental leave and our

employees in KAFRIT NA are protected from loss of income due to unemployment. In addition, each company applies additional rules and agreements to shape and secure the employee's status.

Globally, we enforce the Kafrit Group Code of Ethics and Conduct, which applies to all group companies and forms the backbone for all additional employment rights. It describes a corporate culture in which various ethical business practices, OH&S considerations, a ban on forced and child labor, personal integrity, and sustainability play a vital role. Also, an embedded whistleblowing policy provides all employees with the right to report on any violation of the Code of Ethics and Conduct or other company policies.

Finally, in the reporting year, no severe human rights impact potentially affecting or being connected to our workforce was reported. As a consequence, neither Kafrit Group nor the individual companies had to pay any fine. The same is true for incidents
of discrimination and corresponding fines.
Only for KAFRIT NA, we need to report one potential incident of discrimination to which, after review
by the company during a formal process, no merit
was found.

Collective bargaining agreements are subject to local circumstances. In Kafrit Group, employees at CONSTAB GER, CONSTAB CN, ADDVANZE SWE and KAFRIT IL (partially) have such agreements in force, covering a total of 352 employees which represents a ratio of 65.4%. In all companies, adequate wages, in line with applicable industry benchmarks, are paid.

Empowering our workforce

Facilitating training and education

What guides us as a globally dispersed group of companies, as mentioned already, is our purpose to unite talent and technology to drive the future of plastics, together. For us, it is crucial to develop and grow our talents continuously. It is our people filling Kafrit Group with life and their expertise in various dimensions that makes us strong.

This aspiration is embedded in several opportunities for personal and career growth, amongst others internal and external training, regular coaching and performance reviews delivered by the managers. Furthermore, new employees are provided with tailormade onboarding programs.

Performance reviews

For 2023, we can report a performance review ratio of 95.2% across all our companies. This means that a total of 512 employees participated in formalized regular performance and career development reviews.

Performance reviews by company

- %

Company	Number of employees	Employees who received a formalized review
KAFRIT HQ	4	4	100.00%
KAFRIT IL	149	149	100.00%
CONSTAB GER	129	129	100.00%
DELTA KUNSTSTOFFE GER	69	69	100.00%
ADDVANZE SWE	24	20	83.33%
POLYFIL USA	35	35	100.00%
KAFRIT NA	22	0	0.00%
CONSTAB CN	106	106	100.00%
Total	538	512	95.2%

Empowering our workforce — facilitating training and education

Training hours

Our average training hours per employee in 2023 accounted for 10.1 hours. At a company level, we see differences resulting from varying training schedules and potential gaps in training data gathering. We have room for improvement and will invest significant efforts to realize our potential.

Training hours by company

Company	Total	Hours/employee
KAFRIT HQ	21	5.3
KAFRIT IL	2040.8	13.7
CONSTAB GER	460	3.6
DELTA KUNSTSTOFFE GER	628	9.1
ADDVANZE SWE	55.7	2.3
POLYFIL USA	51	1.5
KAFRIT NA	121	5.5
CONSTAB CN	2080	19.6
Total	5457.5	10.1

Our goals

To make these ambitions more tangible, we want to continue growing our talent in a transparent feedback culture, with an annual performance review for each employee by 2026.

Also, on group average, we strive to increase individual employee training and education to 12 hours a year by the end of 2025, and then to 15 hours a year by the end of 2027.

Tota	Hours/employee
21	5.3
140.8	13.7
460	3.6
628	9.1
55.7	2.3
51	1.5
121	5.5
2080	19.6
57.5	10.1

In close dialogue with our neighbors

Living community engagement

For Kafrit Group, affected communities matter greatly. We want to make sure that our business operations are integrated into a greater community and are not considered an uninvited neighbor. Indeed, our activities do not only employ hundreds of people living in proximity to our production sites, but as a result they also generate tax income for our communities and contribute to prosperity growth in the specific cities and councils.

Having described our GHG emissions and potential pollution risks being connected to manufacturing companies in the plastics processing industry, though, we are aware of environmental and health risks potentially impacting on our neighboring communities. That is why these communities are such an important stakeholder group to us which always shall and must have a say.

The local management teams are in close contact with water and environmental authorities, and they constantly deal with local regulators. However, in some cases we are also confronted with little or no interest to engage with us. We know that our operations benefit from motivated and skilled employees living close to our production Also, it was CONSTAB GER who pioneered a workshop series in 2023. The company participated in sustainability days in regional schools to discuss the impacts of plastics and the manufacturing process on the environment, and how plastics can still bring sustainable benefits. Each local management team, as well as the group

sites. Consequently, we aim to give something back to our neighboring communities. Whereas CONSTAB GER supports a local football club and a local reforestation project, KAFRIT IL has strong ties to its home community, the kibbutz Kfar-Aza, and to the regional council, Sha'ar HaNegev, where amongst others the company donates money to the Soroka University Medical Center.

management, is open to any kind of feedback and exchange of perspectives. This is how we want to live community engagement, every day.

Make cities and human settlements inclusive, safe, resilient and sustainable

ESG Report 2023

Embedding governance

» Integrating board governance
» Upholding ethics and integrity
» Driving human rights and sustainable procurement practices

Acting as a role model

Integrating board governance

Board composition

Kafrit Group's Board of Directors is the highest governance body, and it consists of nine board members. Emphasizing diversity in our executive boardroom, we have a non-executive representation of all nine members, amplifying diverse perspectives and fostering dynamic decision-making. Not having executive members on the board helps us maintain impartiality and balance. Also, a glimpse at our board's composition in 2023 reveals a noteworthy consideration for gender diversity. Predominantly, our nine-member board comprises seven esteemed male directors (77.8%). Nonetheless, the presence of two accomplished female board members (22.2%) enhances our resolve toward promoting gender equity. Considering age groups, our board is relatively homogenous with eight members (88.9%) over 50 years and with one member (11.1%) between 30 and 50 years.

In line with the needed qualifications for a board position, this age group representation is not a surprise. In accordance with the applicable law in Israel, there is no need for representation of employees or other workers and no need for representation from under-represented social groups in the Board of Directors.

The kibbutz Kfar-Aza, holding about 58% of the shares, appoints six board members that are all non-independent (66.7%). In addition, three board members are independent (33.3%), one of them is appointed by simple majority of all votes in the General Assembly, whereas two of them are appointed by the minority only in the General Assembly.

In total, our Board of Directors' layout signifies our stance on ethical practices, promoting responsibility and accountability at the highest level of decisionmaking. Such a governance structure undoubtedly reinforces our stakeholder engagement.

Acting as a role model — integrating board governance

Board expertise

Our board consists of individuals whose extensive professional experience propels the company toward sustainable and accountable corporate behavior. Every member commands vast knowledge and expertise, with many boasting an impressive managerial, financial or international track record. Some members have previously been involved in the plastics processing industry, thereby bringing valuable insights into the operational intricacies and the evolving challenges of our industry. Additionally, several have served on boards of other public companies, endowing our board with broad perspectives and novel strategies.

The board members' collective experiences influence our decisions and operations. Also, they help facilitate the group's commitment to environmentally sustainable, socially responsible and ethically sound business practices.

Modus operandi

The Board of Directors receives a monthly report sent by the Kafrit Group CEO which includes potential critical concerns. On top of that, at every Board of Directors' meeting, Kafrit Group's CEO and CFO review the main topics of the business including general risk management. Also, biannually the Kafrit Group Sustainability Leader presents progress on the group's sustainability agenda to the board. This is how Kafrit Group makes sure that impacts, risks and opportunities in relation to sustainability are regularly addressed and discussed in the group's highest governance body. Furthermore, an external legal counselor is present in most of the Board of Directors' meetings and if potential conflicts of interest arise, they are discussed according to the legal advisor.

Remuneration policy

Kafrit Group has a remuneration policy in place which is publicly available. Generally speaking, and as of today, the remuneration policy is not linked to sustainability matters (incl. climate-related considerations) or sustainability-related targets. For the Kafrit Group Sustainability Leader, though, yearly incentive schemes are connected to defined internal sustainability targets and progress.

Always upright

Upholding ethics and integrity

Code of Ethics and Conduct

Transparent governance and ethical business practices remain integral to Kafrit Group. The group and all companies uphold their commitment to high standards of ethics as a crucial part of their corporate culture by enforcing the Kafrit Group Code of Ethics and Conduct. Ethical decision-making is prioritized at all levels of the organization, ensuring long-term value creation for all stakeholders involved.

Each employee working for Kafrit Group needs to sign the Code of Ethics and Conduct as proof of having read and understood what is asked for.

Anti-corruption and anti-bribery

In 2023, we effectively fortified our stance against corruption, standing firm on our commitment to uphold integrity and transparency throughout our operations. The success of our anti-corruption and anti-bribery measures is reflected in no confirmed incidents of corruption or bribery as well as by no convictions for violation of such laws, accompanied by no instances of employees being dismissed or disciplined for corrupt practices during the year. This positive result extends to our business partnerships because no contracts required termination due to unethical behavior. Even more notable was the total avoidance of financial penalties resulting from corrupt conduct, thus the monetary value of fines associated with corruption incidents was zero. We recognize that no action was necessary due to the absence of any known corruption cases. This accomplishment aligns with our broader sustainability mission and efforts toward ethical business conduct.

Annual anti-corruption training helps us reinforce these positive results. For 2023, we can report that all our board members and all executive managers have undergone stringent annual anti-corruption training, signifying our dedication to ethical business practices and transparency. We believe that by implementing such integrity-enhancing practices for our total workforce in the future, we can foster a business environment that not only thrives but also serves as a beacon of corporate responsibility.

Our goal

In consequence, and in alignment with our efforts to counteract discrimination, we want to continue showing zero tolerance and meet our commitments — every year upright: zero cases of corruption or discrimination.

Always upright — upholding ethics and integrity

Raising concerns

We want to showcase a commendable commitment to high ethical standards. In this regard, the adoption of a whistleblower protection policy is a testament to this. Our whistleblower protection policy, as well as the grievance mechanism, are included in the Kafrit Group Code of Ethics and Conduct. This encourages all our employees to report on any violation and non-compliance of the Code of Ethics and Conduct or other company protocols or work instructions to the relevant supervisor or a member of the senior management of each company. Also, each company is required to establish a place that is accessible to all its employees at any time allowing for anonymous reporting of violations and noncompliance with the group's Code of Ethics and Conduct. Should a violation be reported, Kafrit Group will investigate the case diligently and in a timely manner.

Political contributions and lobbying activities

As a multinational group, Kafrit Group and its companies are neither involved in political activities in the respective countries or regions, nor do they try to influence political decision-making by paying financial or in-kind political contributions to any potential beneficiary. As a result, an overseeing representative is not nominated.

The same is true for direct lobbying activities in which neither Kafrit Group nor its companies are involved. Some companies, though, are members of local industry associations such as CONSTAB GER in the German Industrievereinigung Kunststoffverpackungen e.V. or involve themselves in legislative feedback processes by sharing expert opinions as done by KAFRIT NA regarding the Canadian government's notice of intent to issue a section 46 notice for the Federal Plastics Registry

Widening our angle

Driving human rights and sustainable procurement practices

As described throughout this report, Kafrit Group deeply acknowledges the significance of environmental stewardship, social responsibility and ethical practices as part of how we want to conduct business. Based on this ambition, we have identified gaps in our current procurement practices, particularly in engaging with our suppliers on environmental assessments and human rights clauses. Since we know that a considerable proportion of our raw materials, as of today, trace back to petrochemical production sites located all over the world with main hubs in North America, Central Europe, the Middle East and China, we acknowledge that sustainable procurement practices need to be established.

Although we are confident that due to stringent regional regulations, our suppliers' production sites adhere to ESG standards, we recognize the need for direct action and transparency, hence, in 2024, we will initiate a process to establish sustainable procurement practices in our group. In addition, we see that supply chain legislation is currently gaining ground, especially in Europe. That is why we want to use this momentum and close a gap in our sustainability aspirations.

The realization of these initiatives will not only contribute to our specific environmental compliance and general sustainability performance but also strengthen our stakeholder engagement.

ESG Report 2023

Disclosures

» ESRS index
» ESRS index data point list
» Legal disclosure

A new standard

ESRS index

GOV-1 The role of the administrative, management and supervisory bodies
GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies
GOV-3 Integration of sustainability-related performance in incentive schemes
SBM-1 Market position, strategy, business model(s) and value chain
SBM-2 Interests and views of stakeholders
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities

ESRS 2 General disclosures

GOV-3 Integration of sustainability-related performance in incentive schemes
E1-3 Actions and resources in relation to climate change policies
E1-4 Targets related to climate change mitigation and adaptation
E1-5 Energy consumption and mix
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
E1-7 GHG removals and GHG mitigation projects financed through carbon credits

ESRS E1 Climate change

IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
MDR-P Policies adopted to manage material sustainability matters
E2-4 Pollution of air, water and soil

ESRS E2 Pollution

IRO-1 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities MDR-P Policies adopted to manage material sustainability matters MDR-T Tracking effectiveness of policies and actions through targets E3-4 Water consumption

ESRS E3 Water and marine resources

SBM-3 Material impacts, risks and
opportunities and their interaction
with strategy and business model(s)

IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities

ESRS E4 Biodiversity and ecosystems

IRO-1 Description of the processes to identify and assess material resource use and circular economyrelated impacts, risks and opportunities
E5-4 Resource inflows
E5-5 Resource outflows
E5-6 Potential financial effects from resource use and circular economyrelated impacts, risks and opportunities

ESRS E5

Resource use and circular economy

S1-1 Policies related to own workforce
S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns
S1-6 Characteristics of the undertaking's employees
S1-7 Characteristics of non-employee workers in the undertaking's own workforce
S1-8 Collective bargaining coverage and social dialogue
S1-9 Diversity indicators
S1-10 Adequate wages
S1-11 Social protection
S1-13 Training and skills development indicators
S1-14 Health and safety indicators
S1-15 Work-life balance indicators
S1-16 Compensation indicators (pay gap and total compensation)
S1-17 Incidents, complaints and severe human rights impacts and incidents

ESRS S1 Own workforce

SMB-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s)
S3-2 Processes for engaging with affected communities about impact

ESRS S3 Affected communities

	GOV-1 The role of the administrative, supervisory and management bodies
G1-1	Corporate culture and business conduct policies
G1-2	Management of relationships with suppliers
G1-3	Prevention and detection of corruption or bribery
G1-4	Confirmed incidents of corruption or bribery
G1-5	Political influence and lobbying activities

ESRS G1

Business conduct

This overview is interactive.

Click on any section to jump to the corresponding page. Or click on any page number in the ESRS index to view its relevant information.

ESRS 2	GOV-1	21 c
GRI 2	2-9	c-vii

Information about member's experience relevant to sectors, products and geographic locations of undertaking page 60

ESRS 2	GOV-1	21 d
GRI 2	2-9	c-v; c-vi

Percentage of members of administrative, management and supervisory bodies page 59

ESRS 2 GOV-1 21 d GRI 2 2-9 c-v Board's gender diversity ratio page 59

ESRS 2	GOV-1	21 e
GRI 2	2-9	c-ii
Percentage of independent board members
page 59

ESRS 2	GOV-1	22 c
GRI 2	2-12	b

Description of management's role in governance processes, controls and procedures used to monitor, manage and oversee impacts, risks and opportunities

page 60

ESRS 2 — General disclosures

ESRS 2 GOV-1

The role of the administrative, management and supervisory bodies

ESRS 2	GOV-1	21
GRI 2	2-9	c-iii

Information about composition and diversity of members of administrative, management and supervisory bodies

page 48 & page 59

ESRS 2	GOV-1	21 a
GRI 2	2-9	c-i
Number of executive members

page 59

ESRS 2	GOV-1	21 a
GRI 2	2-9	c-i
Number of non-executive members
page 59

ESRS 2	GOV-1	21 b
GRI 2	2-9	c-viii
Information about representation of employees and other workers

page 59

ESRS 2	GOV-1	22 c i
GRI 2	2-13	a
Description of how oversight is exercised over management-level position or committee to which management's role is delegated to
page 60
ESRS 2	GOV-1	22 c ii
GRI 2	2-13	b
Information about reporting lines to administrative, management and supervisory bodies
page 60
ESRS 2	GOV-1	23 a
GRI 2	2-9	c-vii
Information about sustainability-related expertise that bodies either directly possess or can leverage
page 60

ESRS 2 GOV-2

Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies

ESRS 2	GOV-2	26 a
GRI 2	2-12	b-ii; c

Disclosure of whether, by whom and how frequently administrative, management and supervisory bodies are informed about material impacts, risks and opportunities, implementation of due diligence, and results and effectiveness of policies, actions, metrics and targets adopted to address them

page 60

ESRS 2 GOV-3

Integration of sustainability-related performance in incentive schemes

ESRS 2	GOV-3	29
GRI 2	2-19	b

Incentive schemes and remuneration policies linked to sustainability matters for members of administrative, management and supervisory bodies exist

page 60

ESRS 2	GOV-3	29 a
GRI 2	2-19	b

Description of key characteristics of incentive schemes

page 60

ESRS 2	GOV-3	29 b
GRI 2	2-19	b

Description of specific sustainabilityrelated targets and (or) impacts used to assess performance of members of administrative, management and supervisory bodies

page 60

ESRS 2	GOV-3	29 c
GRI 2	2-19	b

Disclosure of how sustainability-related performance metrics are considered as performance benchmarks or included in remuneration policies

page 60

ESRS 2	GOV-3	29 e
GRI 2	2-20	a-i

Description of level in undertaking at which terms of incentive schemes are approved and updated

page 60

ESRS 2 SBM-1

Market position, strategy, business model(s) and value chains

ESRS 2 SBM-1 40

Disclosure of information about key elements of general strategy that relate to or affect sustainability matters

pages 15 - 17

ESRS 2	SBM-1	40 a i
GRI 2	2-6	b-i; d

Description of significant groups of products and (or) services offered

page 12

ESRS 2	SBM-1	40 a ii
GRI 2	2-6	b-i; d

Description of significant markets and (or) customer groups served

pages 18 - 19

ESRS 2	SBM-1	40 a iii
GRI 2	2-7	a

Total number of employees (head count) page 10 & page 47

ESRS 2	SBM-1	40 b
GRI 201	201-1	a-i
Total revenue

page 10

ESRS 2	SBM-1	40 g
GRI 2	2-22	a

Disclosure of elements of strategy that relate to or impact sustainability matters

pages 15 - 17 & page 20

ESRS 2	SBM-1	42
GRI 2	2-6	b; c; d
chain		Description of business model and value

pages 18 - 19

ESRS 2	SBM-1	42 a

No GRI equivalent available

Description of inputs and approach to gathering, developing and securing inputs

pages 17 - 19

ESRS 2	SBM-1	42 b
--------	-------	------

No GRI equivalent available

ESRS 2	SBM-1	42 b

Description of outputs and outcomes in terms of current and expected benefits for customers, investors and other stakeholders

page 20

ESRS 2	SBM-1	42 c
GRI 2	2-6	b-ii; b-iii; c; d

Description of main features of upstream and downstream value chain and undertakings position in value chain

pages 18 - 19

ESRS 2 SBM-2

Interests and views of stakeholders

ESRS 2	SBM-2	45 a
GRI 2	2-29	a
		Description of stakeholder engagement

pages 21 - 22

ESRS 2	SBM-2	45 a i
GRI 2	2-29	a-i
Description of key stakeholders

page 22, page 54, page 57 & page 59

Description of understanding of interests and views of key stakeholders as they relate to undertaking's strategy and business model

page 22, page 54 & page 57

ESRS 2	SBM-2	45 a ii				ESRS 2		SBM-3	48 c ii
GRI 2	2-29	a-i	ESRS 2		SBM-3	GRI 306	306-1		a
Description of categories of stakeholders for which engagement occurs			Material impacts, risks and opportunities and their interaction with strategy and business model(s)			Disclosure of how impacts originate from or are connected to strategy and business model
page 22						page 25
ESRS 2	SBM-2	45 a iii
GRI 2	2-29	a				ESRS 2		SBM-3	48 c iv
Description of how stakeholder			ESRS 2	SBM-3	48 a	GRI 3	3-3		b
engagement is organised			GRI 306	306-1	a		Description of nature of activities or
page 22			Description of material impacts resulting from materiality assessment			business relationships through which undertaking is involved with material impacts
			pages 25 - 27				pages 18 - 19 & page 25
ESRS 2	SBM-2	45 a iv
GRI 2	2-29	a-ii
Description of purpose of stakeholder engagement			ESRS 2 GRI 201	SBM-3 201-2	48 a a		ESRS 2		IRO-1
page 21			Description of material risks and opportunities resulting from materiality assessment			Description of the processes to identify and assess material impacts, risks and
ESRS 2	SBM-2	45 a v	pages 25 - 27	opportunities
GRI 2	2-29	Guidance to 2-29-a-iii
Description of how outcome of			ESRS 2	SBM-3	48 c i
stakeholder engagement is taken into account		GRI 3	3-3	a	ESRS 2	IRO-1		53 a
pages 21 - 22, page 32, page 54, page 57 & page 60		Disclosure of how material negative and positive impacts affect (or are likely to affect) people or environment			GRI 3	3-1		Guidance to 3-1-a-i; 3-1-a-ii
			page 32				Description of methodologies and
ESRS 2	SBM-2	45 b					assumptions applied in process to		identify impacts, risks and opportunities
No GRI equivalent available						pages 25 - 26

ESRS 2	SBM-2	45 a ii					ESRS 2	SBM-3	48 c ii
GRI 2	2-29	a-i	ESRS 2		SBM-3		GRI 306	306-1	a
Description of categories of stakeholders for which engagement occurs			Material impacts, risks and opportunities and their interaction with strategy and business model(s)			Disclosure of how impacts originate from or are connected to strategy and business model
page 22							page 25
ESRS 2	SBM-2	45 a iii
GRI 2	2-29	a					ESRS 2	SBM-3	48 c iv
	Description of how stakeholder		ESRS 2	SBM-3	48 a		GRI 3	3-3	b
	engagement is organised		GRI 306	306-1	a				Description of nature of activities or
page 22				from materiality assessment	Description of material impacts resulting		impacts		business relationships through which undertaking is involved with material
ESRS 2	SBM-2	45 a iv	pages 25 - 27					pages 18 - 19 & page 25
GRI 2	2-29	a-ii
		Description of purpose of stakeholder	ESRS 2	SBM-3	48 a
engagement			GRI 201	201-2	a		ESRS 2		IRO-1
page 21			assessment	Description of material risks and	opportunities resulting from materiality				Description of the processes to identify and assess material impacts, risks and
ESRS 2	SBM-2	45 a v	pages 25 - 27				opportunities
GRI 2	2-29	Guidance to 2-29-a-iii
	Description of how outcome of		ESRS 2	SBM-3	48 c i
		stakeholder engagement is taken into	GRI 3	3-3	a		ESRS 2	IRO-1	53 a
account pages 21 - 22, page 32, page 54, page 57 & page 60			Disclosure of how material negative and			GRI 3	3-1	Guidance to
			positive impacts affect (or are likely to affect) people or environment				3-1-a-i; 3-1-a-ii
			page 32					Description of methodologies and
ESRS 2	SBM-2	45 b						assumptions applied in process to	identify impacts, risks and opportunities
	No GRI equivalent available						pages 25 - 26

ESRS 2	SBM-2	45 a ii				ESRS 2	SBM-3	48 c ii
GRI 2	2-29	a-i	ESRS 2		SBM-3	GRI 306	306-1	a
Description of categories of stakeholders for which engagement occurs				Material impacts, risks and opportunities and their interaction with strategy and business model(s)			Disclosure of how impacts originate from or are connected to strategy and business model
page 22						page 25
ESRS 2	SBM-2	45 a iii
GRI 2	2-29	a				ESRS 2	SBM-3	48 c iv
	Description of how stakeholder		ESRS 2	SBM-3	48 a	GRI 3	3-3	b
	engagement is organised		GRI 306	306-1	a		Description of nature of activities or
page 22				from materiality assessment	Description of material impacts resulting	impacts	business relationships through which undertaking is involved with material
ESRS 2	SBM-2	45 a iv	pages 25 - 27				pages 18 - 19 & page 25
GRI 2	2-29	a-ii
engagement		Description of purpose of stakeholder	ESRS 2	SBM-3	48 a			IRO-1
page 21				GRI 201 201-2 a Description of material risks and opportunities resulting from materiality assessment			ESRS 2 Description of the processes to identify and assess material impacts, risks and
ESRS 2	SBM-2	45 a v		opportunities pages 25 - 27
GRI 2	2-29	Guidance to 2-29-a-iii
	Description of how outcome of		ESRS 2	SBM-3	48 c i
account		stakeholder engagement is taken into	GRI 3	3-3	a	ESRS 2	IRO-1	53 a
pages 21 - 22, page 32, page 54, page 57 & page 60			Disclosure of how material negative and positive impacts affect (or are likely to affect) people or environment			3-1	Guidance to 3-1-a-i; 3-1-a-ii
			page 32
ESRS 2	SBM-2	45 b					Description of methodologies and assumptions applied in process to identify impacts, risks and opportunities
	No GRI equivalent available					pages 25 - 26

ABILA

ESRS 2	SBM-2	45 a ii				ESRS 2	SBM-3	48 c ii
GRI 2	2-29	a-i	ESRS 2		SBM-3	GRI 306	306-1	a
for which engagement occurs		Description of categories of stakeholders		Material impacts, risks and strategy and business model(s)	opportunities and their interaction with	business model		Disclosure of how impacts originate from or are connected to strategy and
page 22						page 25
ESRS 2	SBM-2	45 a iii
GRI 2	2-29	a				ESRS 2	SBM-3	48 c iv
Description of how stakeholder			ESRS 2	SBM-3	48 a	GRI 3	3-3	b
engagement is organised			GRI 306	306-1	a			Description of nature of activities or
page 22				from materiality assessment	Description of material impacts resulting	impacts		business relationships through which undertaking is involved with material
			pages 25 - 27				pages 18 - 19 & page 25
ESRS 2	SBM-2	45 a iv
GRI 2	2-29	a-ii
engagement		Description of purpose of stakeholder	ESRS 2 GRI 201	SBM-3 201-2	48 a a	ESRS 2		IRO-1
page 21			assessment	Description of material risks and	opportunities resulting from materiality			Description of the processes to identify and assess material impacts, risks and
ESRS 2	SBM-2	45 a v	pages 25 - 27			opportunities
GRI 2	2-29	Guidance to 2-29-a-iii
Description of how outcome of			ESRS 2	SBM-3	48 c i
account		stakeholder engagement is taken into	GRI 3	3-3	a	ESRS 2	IRO-1	53 a
pages 21 - 22, page 32, page 54, page 57 & page 60				affect) people or environment	Disclosure of how material negative and positive impacts affect (or are likely to	GRI 3	3-1	Guidance to 3-1-a-i; 3-1-a-ii
			page 32				Description of methodologies and
ESRS 2	SBM-2	45 b					assumptions applied in process to	identify impacts, risks and opportunities
No GRI equivalent available						pages 25 - 26

ESRS 2	SBM-2	45 a ii				ESRS 2	SBM-3	48 c ii
GRI 2	2-29	a-i	ESRS 2		SBM-3	GRI 306	306-1	a
	for which engagement occurs	Description of categories of stakeholders		Material impacts, risks and strategy and business model(s)	opportunities and their interaction with	business model		Disclosure of how impacts originate from or are connected to strategy and
page 22						page 25
ESRS 2	SBM-2	45 a iii
GRI 2	2-29	a				ESRS 2	SBM-3	48 c iv
	Description of how stakeholder		ESRS 2	SBM-3	48 a	GRI 3	3-3	b
	engagement is organised		GRI 306	306-1	a			Description of nature of activities or
page 22				from materiality assessment	Description of material impacts resulting	impacts		business relationships through which undertaking is involved with material
ESRS 2	SBM-2	45 a iv	pages 25 - 27				pages 18 - 19 & page 25
GRI 2	2-29	a-ii
		Description of purpose of stakeholder	ESRS 2	SBM-3	48 a
engagement			GRI 201	201-2	a	ESRS 2		IRO-1
page 21			assessment	Description of material risks and	opportunities resulting from materiality			Description of the processes to identify and assess material impacts, risks and
ESRS 2	SBM-2	45 a v	pages 25 - 27			opportunities
GRI 2	2-29	Guidance to 2-29-a-iii
	Description of how outcome of		ESRS 2	SBM-3	48 c i
		stakeholder engagement is taken into	GRI 3	3-3	a	ESRS 2	IRO-1	53 a
account page 57 & page 60	pages 21 - 22, page 32, page 54,			affect) people or environment	Disclosure of how material negative and positive impacts affect (or are likely to	GRI 3	3-1	Guidance to 3-1-a-i; 3-1-a-ii
			page 32
ESRS 2	SBM-2	45 b					Description of methodologies and assumptions applied in process to	identify impacts, risks and opportunities
	No GRI equivalent available					pages 25 - 26

ESRS 2	IRO-1	53 b i
GRI 3	3-1	Guidance

Description of how process focuses on specific activities, business relationships, geographies or other factors that give rise to heightened risk of adverse impacts

pages 25 - 26

ESRS 2	IRO-1	53 b ii
GRI 3	3-1	a-i

Description of how process considers impacts with which undertaking is involved through own operations or as result of business relationships

pages 25 - 26

ESRS 2	IRO-1	53 b iii
GRI 3	3-1	b

Description of how process includes consultation with affected stakeholders to understand how they may be impacted and with external experts

pages 25 - 26

ESRS 2	IRO-1	53 b iv
GRI 3	3-1	a-ii

Description of how process prioritises negative impacts based on their relative severity and likelihood and positive impacts based on their relative scale, scope and likelihood and determines which sustainability matters are material for reporting purposes

pages 25 - 26

ESRS 2	IRO-1	53 c
	No GRI equivalent available
financial effects		Description of process used to identify, assess, prioritise and monitor risks and opportunities that have or may have
pages 25 - 26
ESRS 2	IRO-1	53 c ii
	No GRI equivalent available
		Description of how likelihood, magnitude,
		and nature of effects of identified risks
		and opportunities have been assessed
page 25


ESRS 2	IRO-1	53 c iii
	No GRI equivalent available
		Description of how sustainability-related risks relative to other types of risks have
been prioritised
	No prioritization was applied

			page 26
ESRS 2	IRO-1	53 d
GRI 2	2-14	a; b
		Description of decision-making process and related internal control procedures

pages 25 - 26

ESRS 2	IRO-1	53 f
No GRI equivalent available
Description of extent to which and how

process to identify, assess and manage opportunities is integrated into overall management process

pages 25 - 26

ESRS 2	IRO-1	53 g
GRI 3	3-1	Guidance to 3-1-a-i

Description of input parameters used in process to identify, assess and manage material impacts, risks and opportunities

pages 25 - 26

No GRI equivalent available

Description of how process to identify, assess and manage impacts, risks and opportunities has changed compared to prior reporting period

page 26

	considerations

A A C A .


d Grand Ge

ESRS E1 GOV-3

Integration of sustainability-related performance in incentive schemes

E1	GOV-3	13
GRI 2	2-19	b

Disclosure of how climate-related considerations are factored into remuneration of members of administrative, management and supervisory bodies

page 60

E1	GOV-3	13
No GRI equivalent available
Percentage of remuneration recognised that is linked to climate-related considerations
page 60
E1	GOV-3	13
GRI 2	2-19	b
Explanation of climate-related

considerations that are factored into remuneration of members of administrative, management and supervisory bodies

page 60

ESRS E1 E1-3

Actions and resources in relation to climate change policies

E1	E1-3	29 b
GRI 305	305-5	a
Achieved GHG emission reductions
page 33 & page 36

E1	E1-3	29 b

No GRI equivalent available Expected GHG emission reductions page 34

ESRS E1 E1-4

Targets related to climate change mitigation and adaptation

E1	E1-4	33
GRI 3	3-3	e-ii

Disclosure of how GHG emissions reduction targets and (or) any other targets have been set to manage material climate-related impacts, risks and opportunities

page 34

No GRI equivalent available

Tables: Multiple Dimensions (baseline year and targets; GHG Types, Scope 3 Categories, Decarbonisation levers, entity-specific denominators for intensity value)

pages 33 - 34 & page 36

ESRS E1 E1-5

Energy consumption and mix

E1	E1-5	37
GRI 302	302-1	e

Total energy consumption related to own operations

page 30

E1	E1-5	37 a
GRI 302	302-1	e
sources		Total energy consumption from fossil
page 30

E1	E1-5	37 c
GRI 302	302-1	e

renewable sources	Total energy consumption from

E1	E1-5	37 c ii
GRI 302	302-1	c

Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources

page 30

ESRS E1 — Climate change

E1 E1-5 37 c iii GRI 302 302-1 b

Consumption of self-generated non-fuel renewable energy

No such consumption reported in 2023

E1	E1-5	AR 34
	No GRI equivalent available

Percentage of renewable sources in total energy consumption

page 30

E1	E1-5	38 a
GRI 302	302-1	a

Fuel consumption from coal and coal products

No such fuel consumption in 2023

E1	E1-5	38 b
GRI 302	302-1	a
petroleum products		Fuel consumption from crude oil and
page 30

E1	E1-5	38 c
GRI 302	302-1	a
Fuel consumption from natural gas

page 30

E1	E1-5	38 d
GRI 302	302-1	a

Fuel consumption from other fossil sources

No such fuel consumption in 2023

E1	E1-5	38 e
GRI 302	302-1	c

Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources

page 30

E1	E1-5	AR 34
No GRI equivalent available
Percentage of fossil sources in total energy consumption
page 30
E1	E1-5	39
No GRI equivalent available

Non-renewable energy production
No such energy production in 2023

E1	E1-5	39
No GRI equivalent available
Renewable energy production

No such energy production reported in 2023

ESRS E1 E1-6

Gross Scopes 1, 2, 3 and Total GHG emissions

E1	E1-6	44
GRI 305	305-1	a

Gross Scopes 1, 2, 3 and Total GHG emissions — GHG emissions per scope

page 33 & page 36

E1	E1-6	50
No GRI equivalent available
Gross Scopes 1, 2, 3 and Total GHG emissions — financial and operational control
page 33 & page 36

E1	E1-6	AR 41
GRI 305	305-1; 305-2; 305-3	2.2.5; 2.4.5; 2.6.5

GHG emissions — by country, operating segments, economic activity, subsidiary, GHG category or source type

page 36

E1	E1-6	48 a
GRI 305	305-1	a
Gross Scope 1 greenhouse gas emissions
page 33 & page 36
E1	E1-6	49 a
GRI 305	305-2	a
	Gross location-based Scope 2 greenhouse gas emissions
page 33 & page 36

E1	E1-6	49 b
GRI 305	305-2	b
gas emissions		Gross market-based Scope 2 greenhouse
page 33 & page 36
E1	E1-6	51
GRI 305	305-3	a
emissions	Gross Scope 3 greenhouse gas
page 33 & page 36
E1	E1-6	44 + 52
GRI 305	305-1; 305-2; 305-3	Guidance for Disclosure 305-1; 305-2; 305-3
Total GHG emissions
page 33 & page 36

E1	E1-6	44 + 52 a
GRI 305	305-1; 305-2; 305-3	Guidance for Disclosure 305-1; 305-2; 305-3
	Total GHG emissions location-based
page 33 & page 36
E1	E1-6	44 + 52 b
GRI 305	305-1; 305-2; 305-3	Guidance for Disclosure 305-1; 305-2; 305-3
Total GHG emissions market-based
page 33 & page 36
E1	E1-6	52 a
GRI 305	305-1; 305-2; 305-3	Guidance for Disclosure 305-1; 305-2; 305-3
Scope 2 location-based
page 33 & page 36
E1	E1-6	52 b
GRI 305	305-1;	Guidance for

305-2; 305-3

Disclosure

305-1; 305-2; 305-3

Scope 2 market-based

page 33 & page 36

E1	E1-6	47
No GRI equivalent available
		Disclosure of significant changes in definition of what constitutes reporting undertaking and its value chain and explanation of their effect on year-to-year comparability of reported GHG emissions
page 33
E1	E1-6	AR 39 b
GRI 305	305-1, 305-2; 305-3	1-e; 1-f; 1-g; 2-e; 2-f; 2-g; 3-f; 3-g
		Disclosure of methodologies, significant assumptions and emissions factors used to calculate or measure GHG emissions
page 33
E1	E1-6	AR 42 c
No GRI equivalent available
financial statements		Disclosure of the effects of significant events and changes in circumstances (relevant to its GHG emissions) that occur between the reporting dates of the entities in its value chain and the date of the undertaking's general purpose
pages 33 - 34
E1	E1-6	AR 55
GRI 201	201-1	a-i
Net revenue
page 34

E1	E1-6	AR 55
No GRI equivalent available
		Net revenue used to calculate GHG
intensity

page 34

ESRS E1 E1-7

GHG removals and GHG mitigation projects financed through carbon credits

E1	E1-7	56 b
GRI 305		1.2

Disclosure of GHG emission reductions or removals from climate change mitigation projects outside value chain financed or to be financed through any purchase of carbon credits

page 37

E1	E1-7	58
GRI 305		1.2
Removals and carbon credits are used
page 37

E1	E1-7	58 a
GRI 305		1.2

GHG removals and storage activity by undertaking scope and by removal and storage activity

page 37
---------	--

E1	E1-7	58 a
GRI 305		1.2
Total GHG removals and storage
page 37

E1	E1-7	AR 58 f
No GRI equivalent available
activity		GHG emissions associated with removal
page 37

E1	E1-7	AR 61
GRI 305		1.2

Disclosure of extent of use and quality criteria used for carbon credits

page 37

E1	E1-7	AR 62 b
GRI 305		1.2
Type of carbon credits from removal projects
page 37

E1	E1-7	AR 62 c
No GRI equivalent available
Percentage for recognised quality

standard

page 37

E1	E1-7	61 c
GRI 305		1.2

Explanation of credibility and integrity of carbon credits used

					ESRS E2 — Pollution

E1	E1-7	AR 62 d
No GRI equivalent available			ESRS E2		IRO-1		ESRS 2		MDR-P			ESRS E2	E2-4
Percentage issued from projects in European Union				Description of the processes to identify and assess material pollution-related			Policies adopted to manage material sustainability matters				Pollution of air, water and soil
page 37 - indirectly given (no project in European Union)			impacts, risks and opportunities
E1	E1-7	61
GRI 305		1.2	E2	IRO-1	11 a		ESRS 2	MDR-P	62		E2	E2-4	28 b
		Public claims of GHG neutrality that involve		No GRI equivalent available			No GRI equivalent available				No GRI equivalent available
		use of carbon credits have been made		Information about methodologies,					Disclosure of reasons for not having		Microplastics generated
page 37			assumptions and tools used to screen site locations and business activities in order to identify actual and potential pollution-related impacts, risks and			adopted policies page 43				page 43
E1	E1-7	61 a		opportunities in own operations and							E2	E2-4	28 b
GRI 305		1.2			upstream and downstream value chain							No GRI equivalent available
Public claims of GHG neutrality that		page 43									Microplastics used
involve use of carbon credits are											page 43
targets		accompanied by GHG emission reduction	E2	IRO-1	AR 9
page 34 & page 37			GRI 3	3-3	b
				Disclosure of results of materiality assessment (pollution)
E1	E1-7	61 b	page 43
No GRI equivalent available
targets or net zero target		Claims of GHG neutrality and reliance on carbon credits neither impede nor reduce achievement of GHG emission reduction
page 37

	Kafrit Group ESG Report 2023 — 71
--	-----------------------------------	--	--	--

ESRS E3 IRO-1

Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities

E3	IRO-1	8 a
GRI 303	303-1	a; b

Disclosure of whether and how assets and activities have been screened in order to identify actual and potential water and marine resources-related impacts, risks and opportunities in own operations and upstream and downstream value chain and methodologies, assumptions and tools used in screening

page 29

E3	IRO-1	8 b
GRI 303	303-1	c

Disclosure of how consultations have been conducted (water and marine resources)

pages 25 - 26 & page 29

E3	IRO-1	AR 1

No GRI equivalent available

Disclosure of results of materiality assessment (water and marine resources)

page 29

ESRS 2 MDR-P

Policies adopted to manage material sustainability matters

ESRS 2	MDR-P	62
No GRI equivalent available

Disclosure of reasons for not having adopted policies

page 29

ESRS 2 MDR-T

Tracking effectiveness of policies and actions through targets

ESRS 2	MDR-T	81 a

No GRI equivalent available

Description of reasons why there are no plans to set measurable outcomeoriented targets

page 29

ESRS 2	MDR-T	81 b

No GRI equivalent available

Effectiveness of policies and actions is tracked in relation to material sustainability-related impact, risk and opportunity

page 29 - indirectly given (not yet established)

No GRI equivalent available

Description of processes through which effectiveness of policies and actions is tracked in relation to material sustainability-related impact, risk and opportunity

page 29 - indirectly given (not yet established)

		ESRS 2	MDR-T	81 b ii
			No GRI equivalent available
		Description of defined level of ambition to be achieved and of any qualitative or quantitative indicators used to evaluate progress
		page 29

ESRS 2	MDR-T	81 b ii + 80 d
No GRI equivalent available
Base year from which progress is measured
page 30

Water consumption

E3	E3-4	28 c
No GRI equivalent available
Total water recycled and reused
page 30

E3	E3-4	28 d
No GRI equivalent available
Total water stored

No water storage in Kafrit Group

E3	E3-4	28 d
GRI 303	303-5	c

Changes in water storage

No water storage in Kafrit Group

E3	E3-4	28 e
GRI 303	303-5	d
Disclosure of contextual information
		regarding warter consumption

pages 29 - 31

E3	E3-4	29
No GRI equivalent available
Water intensity ratio
page 30

	E3	E3-4	AR 32
	GRI 303	303-3	a
Total water withdrawals
	pages 30 - 31

ESRS E3 — Water and marine resources

ESRS E4 SBM-3

Material impacts, risks and opportunities and their interaction with strategy and business model(s)

E4	SBM-3	16 a
No GRI equivalent available
List of material sites in own operation
page 45

No GRI equivalent available

Breakdown of material sites located in or near biodiversity-sensitive areas

page 45

ESRS E4 IRO-1

Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities

E4	IRO-1	17 a

No GRI equivalent available

Disclosure of whether and how actual and potential impacts on biodiversity and ecosystems at own site locations and in value chain have been identified and assessed

pages 44 - 45

E4	IRO-1	17 b
	No GRI equivalent available

Disclosure of whether and how dependencies on biodiversity and ecosystems and their services have been identified and assessed at own site locations and in value chain

pages 44 - 45

E4	IRO-1	17 c

No GRI equivalent available

Disclosure of whether and how transition and physical risks and opportunities related to biodiversity and ecosystems have been identified and assessed

pages 44 - 45

E4	IRO-1	17 d
No GRI equivalent available
Disclosure of whether and how systemic risks to own business model have been considered
page 44
E4	IRO-1	17 d
	No GRI equivalent available
Disclosure of whether and how systemic risks to society have been considered in assessment of biodiversity and ecosystems-related risks
page 44
E4	IRO-1	19 a
GRI 304	304-1	a-iv
Undertaking has sites located in or near biodiversity-sensitive areas
page 45

E4	IRO-1	19 b
No GRI equivalent available
		It has been concluded that it is necessary

to implement biodiversity mitigation measures

page 44

impacts are concentrated

page 42

					ESRS E5 — Resource use and circular economy
ESRS E5 IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities			ESRS E5 E5-4 Resource inflows		ESRS E5 E5-5 Resource outflows
E5	IRO-1	AR 7 b	E5	E5-4	30	E5	E5-5	35
	No GRI equivalent available		GRI 306	306-1	a-i, ii		No GRI equivalent available
page 42	Disclosure of material resources used			Disclosure of information on material resource inflows			Description of the key products and materials that come out of the undertaking's production process
E5	IRO-1	AR 7 d	page 42 E5	E5-4	31 c	page 12
page 42	No GRI equivalent available related to circular economy	Disclosure of material opportunities		No GRI equivalent available The absolute weight of secondary reused or recycled components, secondary		E5 GRI 306	E5-5 306-2	36 b Guidance for Disclosure 306-2-a
			intermediary products and secondary materials used to manufacture the		Disclosure of the reparability of products
E5	IRO-1	AR 7 e		undertaking's products and services (including packaging)		page 42
	No GRI equivalent available		page 42
	of transition to circular economy	Disclosure of material impacts and risks				E5	E5-5	37 a
page 42						GRI 306	306-3	a
						Total waste generated
E5	IRO-1	AR 7 f				page 38 & page 41
GRI 306	306-1	a-i, ii
		Disclosure of stages of value chain where resource use, risks and negative				E5 GRI 306	E5-5 306-4	37 b b

ESRS E4 — Biodiversity and ecosystems

E5	E5-5	37 b i
GRI 306	306-4	b-i
Hazardous waste diverted from disposal due to preparation for reuse
page 40

E5	E5-5	37 b ii
GRI 306	306-4	b-ii

Hazardous waste diverted from disposal due to recycling

page 40

E5	E5-5	37 b iii
GRI 306	306-4	b-iii
Hazardous waste diverted from disposal

due to other recovery operations

page 40

E5	E5-5	37 b
GRI 306	306-4	c
Non-hazardous waste diverted from disposal
page 40

E5	E5-5	37 b i
GRI 306	306-4	c-i
Non-hazardous waste diverted from disposal due to preparation for reuse
page 40

E5	E5-5	37 b ii
GRI 306	306-4	c-ii
Non-hazardous waste diverted from
disposal due to recycling

page 40

E5	E5-5	37 b iii
GRI 306	306-4	c-iii

Non-hazardous waste diverted from disposal due to other recovery operations page 40

E5	E5-5	37 c
GRI 306	306-5	b
Hazardous waste directed to disposal
page 40

E5	E5-5	37 c i
GRI 306	306-5	b-i; b-ii

Hazardous waste directed to disposal by incineration

page 40

E5	E5-5	37 c ii
GRI 306	306-5	b-iii
landfilling		Hazardous waste directed to disposal by

page 40

E5	E5-5	37 c iii
GRI 306	306-5	b-iv
other disposal operations		Hazardous waste directed to disposal by
page 40
E5	E5-5	37 c
GRI 306	306-5	c
Non-hazardous waste directed to disposal
page 40
E5	E5-5	37 c i
GRI 306	306-5	c-i; c-ii
Non-hazardous waste directed to disposal by incineration
page 40

E5	E5-5	37 c ii
GRI 306	306-5	c-iii
Non-hazardous waste directed to disposal by landfilling
page 40

E5	E5-5	37 c iii
GRI 306	306-5	c-iv
Non-hazardous waste directed to disposal by other disposal operations

page 40

E5	E5-5	37 d
	No GRI equivalent available
	Percentage of non-recycled waste
	page 38 - indirectly given (recycled waste -> 42.7%; non-recycled waste -> 57.3%)
E5	E5-5	38
GRI 306	306-3; 306-4; 305-5	3-a; 4-a; 5-a
		Disclosure of composition of waste
pages 38 - 39

E5	E5-5	38 a
GRI 306	306-3; 306-4; 306-5	Guidance for Disclosure 306-3-a; 306-4-a; 306-5-a
	undertaking's sector or activities	Disclosure of waste streams relevant to
pages 38 - 39
	E5-5	38 b
E5
GRI 306	306-3; 306-4; 306-5	Guidance for Disclosure 306-3-a; 306-4-a; 306-5-a

in waste

pages 38 - 39

E5	E5-5	39
GRI 306	306-3	a
Total amount of hazardous waste

page 39

E5	E5-5	39
GRI 306	306-3	a
Total amount of radioactive waste
page 38

E5 E5-5 40 GRI 306 306-2 c GRI 306 306-3; 306-4; 306-5 3-b; 4-e; 5-e

Description of methodologies used to calculate data (waste generated)

page 38

ESRS E5 E5-6

Potential financial effects from resource use and circular economyrelated impacts, risks and opportunities

E5	E5-6	43 a
No GRI equivalent available

Disclosure of quantitative information about potential financial effects of material risks and opportunities arising from resource use and circular economyrelated impacts

page 42

E5	E5-6	43 b
No GRI equivalent available
Description of effects considered and related impacts (resource use and circular economy)

ESRS S1 S1-1

Policies related to own workforce

S1	S1-1	23
GRI 403	GRI 404	a

Workplace accident prevention policy or management system is in place

page 53

S1	S1-1	24 a
GRI 3	3-3	c

Specific policies aimed at elimination of discrimination are in place

page 54 & page 61

ESRS S1		S1-3
---------	--	------	--

Processes to remediate negative impacts and channels for own workers to raise concerns

S1	S1-3	32 b
GRI 2	2-25	b

Disclosure of specific channels in place for its own workforce to raise concerns or needs directly with undertaking and have them addressed

page 62

ESRS S1 S1-6

Characteristics of the undertaking's employees

S1	S1-6	50 a
GRI 2	2-7	a
Number of employees (head count)

page 47

S1	S1-6	50 a
GRI 2	2-7	a
count)	Average number of employees (head
page 47
S1	S1-6	50 b + 51
GRI 2	2-7	b-i; b-ii; b-iii
Number of employees (head count or full-time equivalent)
page 47

S1	S1-6	50 b + 51
GRI 2	2-7	b-i; b-ii; b-iii
Average number of employees (head count or full-time equivalent)

page 47

S1	S1-6	50 c
GRI 401	401-1	b
Number of employees who have left undertaking

page 51

S1	S1-6	50 c
GRI 401	401-1	b
Percentage of employee turnover

page 51

S1	S1-6	50 d
GRI 2	2-7	c
Description of methodologies and assumptions used to compile data (employees)
page 47
S1	S1-6	50 d i
GRI 2	2-7	c-i
Employees numbers are reported in head count or full-time equivalent
page 47
S1	S1-6	50 d ii
GRI 2	2-7	c-ii
Employees numbers are reported at end of reporting period/average/other methodology
page 47
S1	S1-6	50 e
GRI 2	2-7	d; e
		Disclosure of contextual information necessary to understand data (employees)

ESRS S1 S1-7

Characteristics of non-employee workers in the undertaking's own workforce

S1	S1-7	55 a
GRI 2	2-8	a

Number of non-employees in own workforce

page 47 - indirectly given (0 non-employees)

ESRS S1 S1-8

Collective bargaining coverage and social dialogue

S1	S1-8	60 a
GRI 2	2-30	a

Percentage of total employees covered by collective bargaining agreements

page 54

ESRS S1 — Own workforce

ESRS S1 S1-9

Diversity indicators

S1	S1-9	66 a
GRI 405	405-1	a-i; b-i

Number of employees (head count) at top management level

page 49

	S1	S1-9	66 a
	GRI 405	405-1	a-i; b-i

Percentage of employees at top management level

page 49

S1	S1-9	66 b
GRI 405	405-1	b-ii

Number of employees (head count) under 30 years old

page 49

S1	S1-9	66 b
GRI 405	405-1	b-ii

Percentage of employees under 30 years old

S1	S1-9	66 b
GRI 405	405-1	b-ii
Number of employees (head count) between 30 and 50 years old
page 49

S1	S1-9	66 b
GRI 405	405-1	b-ii
Percentage of employees between 30 and 50 years old
page 49

S1	S1-9	66 b
GRI 405	405-1	b-ii
50 years old		Number of employees (head count) over
page 49

S1	S1-9	66 b
GRI 405	405-1	b-ii
Percentage of employees over 50 years old
page 49

S1	S1-9	AR 71
No GRI equivalent available

Disclosure of own definition of top management used

page 49

ESRS S1 S1-10

Adequate wages

S1	S1-10	69
GRI 202	202-1	a; c; d

All employees are paid adequate wage, in line with applicable benchmarks

page 54

ESRS S1 S1-11

Social protection

S1	S1-11	74 a
GRI 401	401-2	a-ii; b

All employees in own workforce are covered by social protection, through public programs or through benefits offered, against loss of income due to sickness

page 54

S1	S1-11	74 b

No GRI equivalent available

All employees in own workforce are covered by social protection, through public programs or through benefits offered, against loss of income due to unemployment starting from when own worker is working for undertaking

page 54

S1	S1-11	74 c
GRI 401	401-2	a-iii; b

All employees in own workforce are covered by social protection, through public programs or through benefits offered, against loss of income due to employment injury and acquired disability

page 54

S1	S1-11	74 d
GRI 401	401-2	a-iv; b

All employees in own workforce are covered by social protection, through public programs or through benefits offered, against loss of income due to parental leave

page 54

S1	S1-11	74 e
GRI 401	401-2	a-v; b
retirement	All employees in own workforce are public programs or through benefits	covered by social protection, through offered, against loss of income due to
page 54

S1	S1-11	75
GRI 401	401-2	a-ii; b
due to sickness	through public programs or through	Disclosure of types of employees who are not covered by social protection, benefits offered, against loss of income
page 54
S1	S1-11	75
No GRI equivalent available
Disclosure of types of employees who are not covered by social protection, through public programs or through benefits offered, against loss of income due to unemployment starting from when own worker is working for undertaking

page 54

S1	S1-11	75
GRI 401	401-2	a-iii; b

Disclosure of types of employees who are not covered by social protection, through public programs or through benefits offered, against loss of income due to employment injury and acquired disability

page 54

S1	S1-11	75
GRI 401	401-2	a-iv; b

Disclosure of types of employees who are not covered by social protection, through public programs or through benefits offered, against loss of income due to maternity leave

page 54

S1	S1-11	75
GRI 401	401-2	a-v; b

Disclosure of types of employees who are not covered by social protection, through public programs or through benefits offered, against loss of income due to retirement

page 54

ESRS S1 S1-13

Training and skills development indicators

S1	S1-13	83 a
GRI 404	404-3	a

Percentage of employees that participated in regular performance and career development reviews

page 55

S1	S1-13	83 b
GRI 404	404-1	a-i

Average number of training hours per person for employees

ESRS S1 S1-14

Health and safety indicators

S1	S1-14	88 a
GRI 403	403-8	a-i

Percentage of people in its own workforce who are covered by health and safety management system based on legal requirements and (or) recognised standards or guidelines

page 54 - indirectly given (all employees)

S1	S1-14	88 b
GRI 403	403-9	a-i; b-i
GRI 403	403-10	a-i; b-i

Number of fatalities in own workforce as result of work-related injuries and workrelated ill health

page 52

S1	S1-14	88 b
GRI 403	403-9	b-i
GRI 403	403-10	b-i

Number of fatalities as result of workrelated injuries and work-related ill health of other workers working on undertaking's sites

page 52

S1	S1-14	88 c
GRI 403	403-9	a-iii; b-iii
Number of recordable work-related accidents for own workforce
page 52
S1	S1-14	88 c

GRI 403 403-9 a-iii; b-iii Rate of recordable work-related accidents for own workforce

page 52

S1	S1-14	88 d
GRI 403	403-10	a-ii
Number of cases of recordable work related ill health of employees

page 52 - indirectly given (no case)

ESRS S1 S1-15

Work-life balance indicators

S1	S1-15	93 a
GRI 401	401-3	a

Percentage of employees entitled to take family-related leave

page 50 - indirectly given (5.4%, 29 out of 538 employees)

S1	S1-15	93 b
GRI 401	401-3	b
Percentage of entitled employees that took family-related leave

page 50

S1	S1-15	93 b
GRI 401	401-3	b

Percentage of entitled employees that took family-related leave by gender

S1	S1-15	94
No GRI equivalent available				ESRS S1 S1-17			S1 S1-17 104 a No GRI equivalent available
All employees are entitled to family related leave through social policy and (or) collective bargaining agreements			Incidents, complaints and severe human rights impacts and incidents			No severe human rights issues and incidents connected to own workforce have occurred
page 50						page 54
						S1	S1-17	104 b
ESRS S1		S1-16	S1	S1-17	103 a	GRI 2	2-27	b
Compensation indicators (pay gap and total compensation)		GRI 406 page 54	406-1 a Number of incidents of discrimination			Amount of material fines, penalties, and compensation for severe human rights issues and incidents connected to own workforce
			S1	S1-17	103 b	page 54
S1	S1-16	97 a	GRI 2	2-25	Guidance to	S1	S1-17	104 b
GRI 405	405-2	a; b			2-25-e		No GRI equivalent available
Gender pay gap page 48			Number of complaints filed through channels for people in own workforce to raise concerns		Information about reconciliation of amount of material fines, penalties, and compensation for severe human rights
			page 54			issues and incidents connected to own workforce with most relevant amount presented in financial statements
			S1	S1-17	103 c	page 54
			GRI 2	2-27	b
			Amount of material fines, penalties, and compensation for damages as result of violations regarding social and human rights factors
			page 54

ESRS S3 SMB-3

Material impacts, risks and opportunities and their interaction with strategy and business model(s)

S3	SBM-3	9
	No GRI equivalent available

All affected communities who can be materially impacted by undertaking are included in scope of disclosure under ESRS 2

page 22 & page 57

S3			SBM-3			9 a

No GRI equivalent available

Description of types of affected communities subject to material impacts

page 57

S3	SBM-3	9 a i - iv
GRI 413	413-2	a

Type of communities subject to material impacts by own operations or through value chain

page 14

S3	SBM-3	9 b
GRI 3	3-3	b

Material negative impacts occurrence (affected communities) page 57

S3	SBM-3	9 c
GRI 3	3-3	Guidance to 3-3-a

Description of activities that result in positive impacts and types of affected communities that are positively affected or could be positively affected

page 57

S3	SBM-3	9 d
No GRI equivalent available
Description of material risks and opportunities arising from impacts and dependencies on affected communities
page 57

S3	SBM-3	10
	No GRI equivalent available
	Disclosure of whether and how the undertaking has developed an understanding of how affected communities with particular
	characteristics or those living in

particular contexts, or those undertaking particular activities may be at greater risk of harm

page 57

ESRS S3 S3-2

Processes for engaging with affected communities about impact

S3	S3-2	21
GRI 3	3-3	f

Disclosure of how perspectives of affected communities inform decisions or activities aimed at managing actual and potential impacts

page 57

ESRS G1 GOV-1

The role of the administrative, supervisory and management bodies

G1	GOV-1	5 a
GRI 2	2-12	b
	Disclosure of role of administrative, management and supervisory bodies related to business conduct

page 59

G1	GOV-1	5 b
GRI 2	2-9	c-vii

Disclosure of expertise of administrative, management and supervisory bodies on business conduct matters

page 60

ESRS G1 G1-1

Corporate culture and business conduct policies

G1	G1-1	9
GRI 2	2-16

Description of how the undertaking establishes, develops, promotes and evaluates its corporate culture

page 61

G1	G1-1	10 a
GRI 2	2-26	a-ii

Description of the mechanisms for identifying, reporting and investigating concerns about unlawful behaviour or behaviour in contradiction of its code of conduct or similar internal rules

page 62 & Kafrit Group Code of Ethics and Conduct

G1	G1-1	10 c
GRI 2	2-26	Guidance to 2-26

Disclosure of safeguards for reporting irregularities including whistleblowing protection

page 62 & Kafrit Group Code of Ethics and Conduct

G1	G1-1	10 e

No GRI equivalent available

Undertaking is committed to investigate business conduct incidents promptly, independently and objectively

page 62 & Kafrit Group Code of Ethics and Conduct

ESRS G1 G1-2

Management of relationships with suppliers

G1	G1-2	15 a
GRI 3	3-3	a to f

Description of approaches in regard to relationships with suppliers, taking into account risks related to supply chain and impacts on sustainability matters

page 63

G1	G1-2	15 b
GRI 308; GRI 414	308-1; 414-1	a

Disclosure of how social and environmental criteria are taken into account for selection of supply-side contractual partners

page 63

ESRS S3 — Affected communities ESRS G1 — Business conduct

ESRS G1 G1-3

Prevention and detection of corruption or bribery

G1	G1-3	18 a
GRI 2	2-26	a-ii

Information about procedures in place to prevent, detect, and address allegations or incidents of corruption or bribery

page 61

G1	G1-3	21 a
GRI 205	1.2	1.2.4; 1.2.5

Information about nature, scope and depth of anti-corruption or anti-bribery training programmes offered or required

page 61

G1	G1-3	21 c
GRI 205	205-2	d

Information about members of administrative, supervisory and management bodies relating to anticorruption or anti-bribery training

page 61

ESRS G1 G1-4

Confirmed incidents of corruption or bribery

G1	G1-4	24 a
GRI 2	2-27	a

Number of convictions for violation of anti-corruption and anti- bribery laws

page 61

G1	G1-4	24 a
GRI 2	2-27	b

Amount of fines for violation of anticorruption and anti- bribery laws

page 61

G1	G1-4	25 a
GRI 205	205-3	a

Number of confirmed incidents of corruption or bribery

page 61

G1	G1-4	25 a
GRI 205	205-3	a

Information about nature of confirmed incidents of corruption or bribery

page 61

G1	G1-4	25 b
GRI 205	205-3	b

Number of confirmed incidents in which own workers were dismissed or disciplined for corruption or briberyrelated incidents

page 61

G1	G1-4	25 c
GRI 205	205-3	c

Number of confirmed incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery

page 61

G1	G1-4	25 d
GRI 205	205-3	d

Information about details of public legal cases regarding corruption or bribery brought against undertaking and own workers and about outcomes of such cases

page 61

ESRS G1 G1-5

Political influence and lobbying

activities

G1 G1-5 29 a

GRI 2 2-9 b Information about representative(s) responsible in administrative, management and supervisory bodies for oversight of political influence and lobbying activities page 62

	G1	G1-5	29 b
	GRI 415	415-1	a
Information about financial or in-kind political contributions
	page 62

G1	G1-5	29 b i
GRI 415	415-1	a
Financial political contributions made
page 62

G1	G1-5	29 b i
GRI 415	415-1	a
In-kind political contributions made
page 62

GOV-1
	2166
	21 a 66
	21 a 66
	21 b 66
	21 c66
	21 d 66
	21 d 66
	21 e66
	22 c66
	22 c i66
	22 c ii66
	23 a 66
GOV-2
	26 a 66

48 a 67
48 a 67
48 c i67
48 c ii67
48 c iv67

53 a 67
53 b i 67
53 b ii 67
53 b iii67
53 b iv 67
53 c68
53 c ii68
53 c iii68
53 d 68
53 f 68
53 g 68
53 h 68

GOV-3 1368 1368 1368
E1-3 29b 68 29b 68
E1-4 3368 34a + 34 b68
E1-5 3768 37a 68 37c68 37cii68 37ciii69 38a 69 38b 69 38c69 38d 69 38e69 3969 3969 AR 34 69 AR 34 69

E1-6
4469
44+5269
44+52a 69
44+52b 69
4769
48 a 69
49 a 69
49 b 69
5069
5169
52 a)69
52 b)69
AR 39b69
AR 41 69
AR 42c 69
AR 55 69
AR 55 70

E1-7
56b 70

11 a 70 AR 970
6270
28 b 70 28 b 70

	3-4
	28 с
	28 d
	28 d
	28 e
	29
	AR 32

SBM-3

IRO-1

IRO-1
AR 7 b 72 AR 7 d 72 AR 7 e72 AR 7 f 72
E5-4 3072 31c72
E5-5 3572 36b 72 37 a 72 37 b 72 37b 73 37b(i)73 37b(i)73 37b(ii)73 37b(ii)73 37b(iii)73 37b(iii)73 37 c73 37 c73 37 c(i)73 37 c(i)73 37 c(ii)73 37 c(ii)73 37 c(iii)73 37 c(iii)73 37 d 73 3873 38 a 73 38 b 73 3973 3973 4073
E5-6 43 a 73 43 b 73

S1-1
2374 24a 74 S174 S174 S1-174 S1-174
S1-3 32b 74
S174 S1-374
S1-6
50a 74 50a 74 50b + 51 74 50b + 51 74 50c74 50c74 50d 74 50 d (i) 74 50 d (ii) 74 50e74
S1-7 55 a 74
S1-8
60 a 74
S1-9 66a 74 66a 74 66b 74 66b 74 66b 75 66b 75 66b 75 66b 75 AR 71 75
S1-10 6975

S1-11 74 a 75 74 b 75 74 c75 74 d 75 74 e75 7575 7575 7575 7575 7575
S1-13 83 a 75 83 b 75
S1-14 88 a 76 88b 76 88b 76 88c76 88c76 88d 76
S1-15 93 a 76 93 b 76 93 b 76 9476
S1-16 97 a 76
S1-17 103 a 76 103 b76 103 c 76 104 a 76 104 b76 104 b76

ESRS S3
------------	--

GOV-1 G1-1 G1-2
G1-3
G1-4
G1-5

		7	7



		NNN	VNNV

		7 7	7 7




			78 78 78








			00 00 00 00 00 00
		NNNNNN	8



		NANN	റ്റ് റോ റോ റോ

Publishing details

Kibbutz Kfar-Aza, M.P. Negev, 8514200, Israel

Disclaimer

Kafrit Industries (1993) Ltd. believes all information provided in this report is accurate and externally comprehensible. The report is based on ESG metrics from 2023 and previous years, and, where real data is not available, data provided by reliable third-party agents is used. All forward-looking statements in this report are made based on the company's current expectations, evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory

changes, currency fluctuations or the occurrence of one or more of the company's risk factors. In addition, forward-looking statements are based on information in the company's possession while preparing the presentation.

The company does not undertake any obligation to update forward-looking statements made herein to reflect events and/or circumstances that may occur after this report was published.

Pictures:

	Cover: Shutterstock / ON-Photography Germany
	Pages 3, 4, 5, 6, 9, 10: Kafrit Group
	Page 8: Unsplash / Augustine Wong
	Page 13: Unsplash / Sebastian Svenson
	Page 14: Shutterstock / DC Studio
	Page 16: Pexels / Cristian Rojas
	Page 16: Unsplash / Ahsanization
	Page 17: Unsplash / Sharon Pittaway
	Page 18: Unsplash / FlyD
	Page 19: Unsplash / Fanette G
	Page 19: istockphoto / XXLPhoto
	Page 19: Unsplash / Elena Rabkina
	Page 19: Unsplash / Liuba Bilyk
	Page 21: Unsplash / Hivan Arvizu
	Pages 25, 26: Unsplash / JJ Ying

Page 28: Unsplash / Claudio Testa Page 29: Unsplash / Casey Horner Page 35: Unsplash / Appolinary Kalashnikova Page 37: istockphoto / FG Trade Page 39: Unsplash / Bryce Evans Choc Page 40: Unsplash / Ryan Shumway Page 43: Unsplash / Planet Volumes Page 44: Unsplash / Palle Knudsen Page 46: Shutterstock / Fit Ztudio Pages 47, 61: Unsplash / Linkedin Sales Solutions Page 49: Shutterstock / Ground Picture Pages 50, 56, 57, 59, 62: Unsplash+ / getty images Page 52: Unsplash / Adomas Aleno Page 58: Shutterstock /GBJSTOCK Page 64: Unsplash / Jean Philippe Delberghe

AI Terminal

Kafrit Industries (1993) Ltd.

6873_rns_2024-12-08_39f2ad7b-e04d-4045-a80f-6e23310fde6e.pdf

ESG Report 2023

Committing to sustainability

Kafrit Group's approach to ESG

Opening statements

Kafrit Group overview

ESG Report 2023

Opening statements

A milestone in our sustainability journey

A letter from our Chairman of the Board

Transcending corporate obligations

A letter from our Chief Executive Officer

Believing in transparency

Kafrit Group's sustainability journey

Adopting the ESRS early

As a leader in the masterbatch and compound industry, we recognize the opportunity for

Our recent ESG achievements

How we invite stakeholders to participate

Strength and resilience

ESG Report 2023

Kafrit Group overview

Who we are

From the kibbutz to the world

BOPP/BOPE film

Colors

Polyethylene and polypropylene film

Agricultural film

Flame retardants

PEX

Conductive compounds

Polycarbonate

What we do

Unite talent and technology to drive the future of plastics, together.

Our purpose

ESG Report 2023

Sustainability is part of our identity

Operating sustainably

Living sustainably

Innovating sustainably

Developing our business sustainably

Reporting sustainably

Operating sustainably

Living sustainably

Developing our business sustainably

Sustainability is part of our identity our strategy and pillars for a sustainable future

Our place in the value creation

Caring for the whole value chain

Long-term value

Caring for the whole value chain

Always striving for the best solution

Research and Development (R&D)

We love to partner

Employees

Authorities and other regulatory agencies

Customers

Industry associations

Suppliers

Financial partners

Channels of engagement: Regular meetings, quarterly reporting, company website. Topics: Sustainability strategy, ESG

Shareholders

Board of Directors

Local communities

Research institutes

Stakeholder engagement occurs at different hierarchy levels, occasions and practically every day.

What keeps us motivated every day

Defining what matters to us most

Defining what matters to us most — materiality analysis

What is the ESRS?

The results of our materiality analysis

ESRS index relevant to Kafrit Group

ESRS 2 General disclosures

ESRS E1 Climate change

ESRS E2 Pollution

ESRS E3

Water and marine resources

ESRS E4 Biodiversity and ecosystems

ESRS E5

Resource use and circular economy