Verallia Sas · EURONEXT:VRLA
Verallia Sas — Verallia — ESG Presentation (January 2021)
55 slides from Verallia Sas's sustainability presentation, Jan 21, 2021
Slide 1: ESG Strategy Presentation
ESG STRATEGY PRESENTATION MICHEL GIANNUZZI Chairman & CEO January 21, 2021
Slide 2: Agenda
AGENDA INTRODUCTION CSR STRATEGY: 3 MAIN PILLARS GOVERNANCE CONCLUSION Michel GIANNUZZI Laetitia FABRE Romain BARRAL Denis MICHEL Wendy KOOL-FOULON Michel GIANNUZZI CEO Head of CSR Director of Operations Secretary General General Counsel CEO Verallia’s ESG Strategy Presentation – January 21, 2021 2
Slide 3: Agenda
AGENDA INTRODUCTION CSR STRATEGY: 3 MAIN PILLARS GOVERNANCE CONCLUSION Michel GIANNUZZI Laetitia FABRE Romain BARRAL Denis MICHEL Wendy KOOL-FOULON Michel GIANNUZZI CEO Head of CSR Director of Operations Secretary General General Counsel CEO Verallia’s ESG Strategy Presentation – January 21, 2021 3
Slide 4: A Global Leader in Glass Packaging
1 INTRODUCTION A GLOBAL LEADER IN GLASS PACKAGING Diversified and balanced end-markets 2019 Glass packaging(1) sales split by end-market 11 countries 10,000 employees N° 1 in Europe(2) 90% of 2019 sales 16 Food 2 billion 17% bottles/jars p.a. Still wine 32 N° 33% Soft drinks 12% glass plants in Lati
Slide 5: Our Values
1 INTRODUCTION OUR VALUES RESPECT CARE people, laws and for customer the environment EMPOWERMENT TEAMWORK and accountability Verallia’s ESG Strategy Presentation – January 21, 2021 5
Slide 6: Our Purpose: Re-imagine glass for a sustainable future
1 INTRODUCTION OUR PURPOSE Re-imagine glass for a sustainable future Verallia’s ESG Strategy Presentation – January 21, 2021 6
Slide 7: Our Purpose: A Two-Pronged Strategy
1 INTRODUCTION OUR PURPOSE A TWO-PRONGED STRATEGY TO DEVELOP OUR PURPOSE PERFORMANCE OF A MATERIALITY ANALYSIS* A COLLABORATION WITH ALL VERALLIA’S STAKEHOLDERS Verallia developed a materiality matrix to reflect the strong identity • 42 interviews with external stakeholders of the Group as well as t
Slide 8: 8
8
Slide 9: Verallia Has Joined the Ellen MacArthur Foundation Network
1 INTRODUCTION VERALLIA HAS JOINED AS A NETWORK MEMBER THE ELLEN MACARTHUR FOUNDATION The Ellen MacArthur Foundation Launched in 2010 to accelerate the transition to a circular economy The Foundation works with, and inspires, business, academia, policymakers, and institutions to mobilise systems sol
Slide 10: Agenda
AGENDA INTRODUCTION CSR STRATEGY: 3 MAIN PILLARS GOVERNANCE CONCLUSION Michel GIANNUZZI Laetitia FABRE Romain BARRAL Denis MICHEL Wendy KOOL-FOULON Michel GIANNUZZI CEO Head of CSR Director of Operations Secretary General General Counsel CEO Verallia’s ESG Strategy Presentation – January 21, 2021 10
Slide 11: Verallia Commitment to the UN Sustainable Development Goals
2 CSR STRATEGY VERALLIA COMMITMENT TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Enhance Significantly reduce Provide the circularity our CO2 emissions a safe & inclusive of glass packaging across our operations place of work Verallia’s ESG Strategy Presentation – January 21, 2021 11
Slide 12: Enhance the Circularity of Glass Packaging
2 CSR STRATEGY ENHANCE THE CIRCULARITY OF GLASS PACKAGING Verallia’s ESG Strategy Presentation – January 21, 2021 12
Slide 13: Circularity Is at the Heart of Our Model
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING CIRCULARITY IS AT THE HEART OF OUR MODEL Extraction and processing Eco-design and manufacturing SAVINGS of raw materials of quality glass packaging Collection and awareness (sand, limestone, soda ash) on sorting and recycling +10pts of cull
Slide 14: Increase Cullet Integration
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING INCREASE CULLET INTEGRATION OUR GOALS PERFORMANCE INDICATORS* 2019 2025 TARGETS Enable the increase of cullet collection by 7 pts % of domestic used glass collected 76%* 83% vs 2019 in Verallia’s countries in Europe Increase the rate of use
Slide 15: Lever #1: Joint Initiatives to Increase Cullet Collection
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING LEVER #1: JOINT INITIATIVES TO INCREASE CULLET COLLECTION CASE STUDY FEVE PARTNERSHIP AND LOCAL INITIATIVES WORKING DIRECTLY WITH LOCAL AUTHORITIES European glass packaging industry to boost EU glass collection Chile / Russia: work with cit
Slide 16: Lever #2: Improve Recycling Capacity and Efficiency
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING LEVER #2: IMPROVE RECYCLING CAPACITY AND EFFICIENCY CASE STUDY INVESTMENT IN CULLET TREATMENT CAPACITY (DIRECT PARTNERSHIPS AND THROUGH EXTERNAL SUPPLIERS) Verallia – 8 cullet treatment plants • Invested €15m in its cullet treatment plants
Slide 17: Lever #3: Optimize Cullet Usage in Group Furnaces
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING LEVER #3: OPTIMIZE CULLET USAGE IN GROUP FURNACES 2 drivers CONTINUOUS IMPROVEMENT ALIGNMENT WITH SALARY OF GLASS CHEMICAL RECIPES INCENTIVES (AS OF 2021) Ongoing effort by Verallia glass Cullet usage rate introduced experts to optimize gla
Slide 18: Going One Step Further: Expand Reuse Business Models
2 CSR STRATEGY – ENHANCE THE CIRCULARITY OF GLASS PACKAGING GOING ONE STEP FURTHER: EXPAND REUSE BUSINESS MODELS WHERE IT MAKES SENSE 2025 TARGETS At least 1 pilot in France REUSE: re-imagine an heritage on the impulse of zero waste, bulk and short-circuit trends Returnable Glass Bottles is both a t
Slide 19: Significantly Reduce Our CO2 Emissions Across Our Operations
2 CSR STRATEGY SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS Verallia’s ESG Strategy Presentation – January 21, 2021 19
Slide 20: CO2 Emissions: The 3 Scopes
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2 EMISSIONS: THE 3 SCOPES leased assets Company facilities electricity for own use employee transformation communiting & distribution business processing of travel sold products Purchased goods fuel & energy fuel & energ
Slide 21: CO2 Emissions: 2020 Key Steps and Objectives
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2 EMISSIONS: 2020 KEY STEPS AND OBJECTIVES In our 2019 Extra-Financial statement, CO2 reduction target from 2019 to 2030 = -20% ton of CO2 (scopes 1 and 2) per ton of packed glass 1 MEASURE THE 2019 CARBON BALANCE 2020 >
Slide 22: CO2 Emissions: 2020 Key Steps and Objectives
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2 EMISSIONS: 2020 KEY STEPS AND OBJECTIVES OUR GOAL PERFORMANCE INDICATORS 2019 2025 TARGETS 2030 TARGETS Reduce our absolute CO2 emissions by 27.5% 3,090 k 2,626 k 2,240 k by 2030 vs 2019, in line with Science-Based Tar
Slide 23: CO2: 3 Main Levers to Reach 27.5% Reduction by 2030
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2: 3 MAIN LEVERS TO REACH 27.5% REDUCTION BY 2030 LEVER 1 SHIFT RAW MATERIAL MIX Cullet rate increase EXTERNAL CULLET USAGE RATE • Reduces CO2 emissions through lower melting energy and lower 65% CO2-intensive materials
Slide 24: CO2: 3 Main Levers to Reach 27.5% Reduction by 2030
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2: 3 MAIN LEVERS TO REACH 27.5% REDUCTION BY 2030 LEVER 2 REDUCE ENERGY CONSUMPTION MELTING ENERGY MIX Melting energy reduction (CA 80% of total energy consumed) • Upgrade of furnace technology (hardware and process cont
Slide 25: CO2: 3 Main Levers to Reach 27.5% Reduction by 2030
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2: 3 MAIN LEVERS TO REACH 27.5% REDUCTION BY 2030 LEVER 3 INCREASE USE OF GREEN ENERGY Green Energy purchases • Maximize green energy purchases through certified sources of electricity (target >60% by 2025, from 34% in 2
Slide 26: CO2 Emissions Reduction: Detailed Action Plan
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2 EMISSIONS REDUCTION: DETAILED ACTION PLAN Net reduction in CO2 emissions 3 200 3 000 -850 kt (-27.5%) 2 800 2 600 2 400 2 200 2 000 3,090 kt 1 800 2,240 kt 1 600 Scope 1 impact 1 400 Scope 2 impact Prod increase impact
Slide 27: CO2 Related Investments
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS CO2 RELATED INVESTMENTS CASH OUT BY CATEGORY in € million 28 28 27 • Total investment required to reach 2030 CO2 24 reduction target is estimated at ca. €220m, 24 with some investments still under evaluation 21 • An estima
Slide 28: Green Electricity Action Plan and Achievements
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS GREEN ELECTRICITY ACTION PLAN AND ACHIEVEMENTS % Green Electricity 70 60 Our target: 60% 50 40 Green 30 electricity 20 in 2025* 10 0 2020 2021 2022 2023 2024 2025 GREEN ELECTRICITY PURCHASES ON-SITE ELECTRICITY GENERATION
Slide 29: Lightweighting Bottles and Jars
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS LIGHTWEIGHTING BOTTLES AND JARS OUR GOAL PERFORMANCE INDICATORS 2019 2025 TARGETS Revert the trend by reducing average weight of our Alpha index 16 15.5 standard and non-returnable bottles and jars by 3% (= weight / volume
Slide 30: Plant Trees + Offset Travels Related CO2 Emissions
2 CSR STRATEGY – SIGNIFICANTLY REDUCE OUR CO2 EMISSIONS ACROSS OUR OPERATIONS PLANT TREES + OFFSET TRAVELS RELATED CO2 EMISSIONS OUR GOAL PERFORMANCE INDICATORS 2019 Plant 100,000 trees per year Trees planted/year 100,000 Offset all professional travels emissions every year Purchase Certified Carbon
Slide 31: Provide a Safe & Inclusive Place of Work
2 CSR STRATEGY PROVIDE A SAFE & INCLUSIVE PLACE OF WORK Verallia’s ESG Strategy Presentation – January 21, 2021 31
Slide 32: Provide a Safe Place of Work
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK PROVIDE A SAFE PLACE OF WORK SAFETY: FREQUENCY OF ACCIDENTS OUR GOALS PERFORMANCE INDICATORS 2019 2025 TARGETS Aim for “zero accident” TF2 (= all accidents / million hours 5.5 <2 every year worked)* *Includes temporary employees Respect for p
Slide 33: Provide a Safe Place of Work
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK PROVIDE A SAFE PLACE OF WORK CASE STUDY level 4 Interdependent Safety culture SUSTAINABLE Employees perform self initiated H&S activities and are taking care of all their colleagues Verallia Safety roadmap is defining level 3 Managers are Saf
Slide 34: Provide an Inclusive Place to Work
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK PROVIDE AN INCLUSIVE PLACE TO WORK GEOGRAPHICAL DIVERSITY 10,000 employees from 63 nationalities working for the Group Located across 11 manufacturing countries 13% 25% France Italy 17% Iberia Geographical diversity Germany 14% Eastern Europe
Slide 35: Provide an Inclusive Place to Work
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK PROVIDE AN INCLUSIVE PLACE TO WORK OBJECTIVES OUR GOALS PERFORMANCE INDICATORS 2019 2025 TARGETS Increase gender equality index in all countries Gender equality index 60 75 by 15 points (as defined by French law) Favor insertion by doubling t
Slide 36: Encourage Employee Shareholding Ownership
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK PROVIDE AN INCLUSIVE PLACE TO WORK ENCOURAGE EMPLOYEE SHAREHOLDING OWNERSHIP 8 countries PERFORMANCE INDICATORS 2019 2020 2025 TARGETS % of Verallia share capital held by employees (directly or through 2.6% 3.3% 5% FCPE) 42% participation rat
Slide 37: Our Supportive Commitment to the Community
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK OUR SUPPORTIVE COMMITMENT TO THE COMMUNITY GROUP INITIATIVES COUNTRIES INITIATIVES Partnership with Partnership with Partnership with Customer: financial support, AP-HP, to support Covidom Le Secours Populaire Français La Maison des femmes se
Slide 38: From 2021, €1.5m Every Year
2 CSR STRATEGY - PROVIDE A SAFE & INCLUSIVE PLACE OF WORK OUR SUPPORTIVE COMMITMENT TO THE COMMUNITY FROM 2021, €1.5m, EVERY YEAR dedicated to local projects in line with our Purpose, targeting circular economy and inclusion Verallia’s ESG Strategy Presentation – January 21, 2021 38
Slide 39: Agenda
AGENDA INTRODUCTION CSR STRATEGY: 3 MAIN PILLARS GOVERNANCE CONCLUSION Michel GIANNUZZI Laetitia FABRE Romain BARRAL Denis MICHEL Wendy KOOL-FOULON Michel GIANNUZZI CEO Head of CSR Director of Operations Secretary General General Counsel CEO Verallia’s ESG Strategy Presentation – January 21, 2021 39
Slide 40: Board of Directors - Profile
3 GOVERNANCE BOARD OF DIRECTORS - PROFILE VERALLIA COMPLIES WITH THE RECOMMENDATIONS SET OUT IN THE AFEP-MEDEF CODE* 12 members and 2 non-voting observers NATIONALITY INDEPENDENCE DIVERSITY BACKGROUND/SKILLS BOARD TRAINING 40% 40% 40% Strategy/Op 60% 60% 60% Strategy/Operations erations 25% Verallia
Slide 41: Board of Directors – Committees
3 GOVERNANCE BOARD OF DIRECTORS – COMMITTEES TOPICS COVERED AUDIT Financial information Risk mapping Internal control and compliance Marie-José Marcia José 5 plenary meetings Review of auditors’ independence DONSION FREITAS AROZAMENA in 2020 NOMINATION AND COMPENSATION Say-on-pay Long Term Incentive
Slide 42: Our ESG Accountable Governance
3 GOVERNANCE OUR ESG ACCOUNTABLE GOVERNANCE TOP MANAGEMENT Board of Approves the sustainability strategy and monitors its progress and performance Directors Sustainable Ensures that issues relating to social and environmental responsibility are considered in the Group's strategy Development and its
Slide 43: CEO Compensation Breakdown
3 GOVERNANCE CEO COMPENSATION BREAKDOWN ANNUAL VARIABLE COMPENSATION BREAKDOWN OF COMPENSATION LONG-TERM COMPENSATION ITEMS UNDER THE 2020 COMPENSATION POLICY* Qualitative items As from 2021, under the long-term incentive • Competitive compensation package plan, allocation of free shares if the 20%
Slide 44: Executive Management Committee
3 GOVERNANCE EXECUTIVE MANAGEMENT COMMITTEE Verallia’s Executive Committee oversees the Michel GIANNUZZI Group’s strategic and operational management It consists of 10 members, including 2 women In addition to the CEO, it is composed, at Group Wendy KOOL-FOULON Denis MICHEL level, of the CFO, the Op
Slide 45: Compliance
3 GOVERNANCE COMPLIANCE COMPETITION PREVENTION EMBARGO AND FINANCIAL LAW OF CORRUPTION SANCTIONS Guide on competition law Anticorruption policy / code of conduct Policy Guide on trade associations Gifts & Invitation Policy Trainings Trainings Conflicts of interest Audit controls • E-learning courses
Slide 46: Verallia Responsible Purchasing
3 GOVERNANCE VERALLIA RESPONSIBLE PURCHASING Global Purchasing policy includes CSR policy as a key pillar CSR policy is deployed through a central/local approach • Central dedicated purchasing team in charge of processes and tools • Global network of Responsible Purchasing Correspondents supporting
Slide 47: Verallia Responsible Purchasing
3 GOVERNANCE VERALLIA RESPONSIBLE PURCHASING Verallia has tested and started to deploy a CSR Purchasing method intending to isolate and treat major supplier risks CSR RISK ASSESSMENT & MANAGEMENT METHOD METHOD RELYING ON A 4 STEPS-APPROACH Supplier Risk Mapping AFNOR CSR risk mapping tool 1 Identifi
Slide 48: Agenda
AGENDA INTRODUCTION CSR STRATEGY: 3 MAIN PILLARS GOVERNANCE CONCLUSION Michel GIANNUZZI Laetitia FABRE Romain BARRAL Denis MICHEL Wendy KOOL-FOULON Michel GIANNUZZI CEO Head of CSR Director of Operations Secretary General General Counsel CEO Verallia’s ESG Strategy Presentation – January 21, 2021 48
Slide 49: Our ESG Ambition
4 CONCLUSION OUR ESG AMBITION Re-imagine glass for a sustainable future CSR roadmap with ambitious objectives based on 3 main levers Sustainability plan in place Enhance Significantly reduce Provide meeting Science-Based targets the circularity of glass packaging our CO2 emissions across our operati
Slide 50: Latest Ratings and Partnerships
4 CONCLUSION LATEST RATINGS AND PARTNERSHIPS A- Top 5% Score: 67/100 Since 2020 Since 2013 “COMMITTED” Since 2020 status Since 2020 Since 2016 Low risk Since 2016 Since 2020 Verallia’s ESG Strategy Presentation – January 21, 2021 50
Slide 51: Q & A
Q &A Verallia’s ESG Strategy Presentation – January 21, 2021 51
Slide 52: Appendices
APPENDICES Verallia’s ESG Strategy Presentation – January 21, 2021 52
Slide 53: Water, Waste and Emissions Management
APPENDICES WATER, WASTE AND EMISSIONS MANAGEMENT WATER WASTES • Glass packaging plants are not big water consumers, • Glass packaging plants are not generating significant as water is mainly used as a coolant of equipment or volumes of waste, as rejects from production are hot glass rejections mainl
Slide 54: Verallia ESG Goals
APPENDICES VERALLIA ESG GOALS Our Our Alignment with Our Performance 2025 the UN SDGs indicators 2019 Targets Purpose Commitments Goals • % of domestic used glass collected 76% • Enable the increase cullet collection by 7 pts 83% in Verallia’s countries in Europe (2018 figure) Enhance • Rate of exte
Slide 55: Historical Track Record
APPENDICES HISTORICAL TRACK RECORD Our Our Our Performance 2025 indicators 2018 2019 Targets Purpose Commitments Goals • Enable the increase cullet collection by 7 pts • % of domestic used glass collected 76% 76% 83% in Verallia’s countries in Europe (2018 figure) Enhance • Rate of external cullet u