CSR Corporate Social Responsibility 2019 Corporate Social Responsibility 2019 Edited by the Cosentino Group Printed in June 2020. Written according to GRI standards Hello! Welcome Activity People Page 8 Page 40 Page 104 Welcome Activity People Page 12 Page 44 Page 108 Letter from the President Commitment to good governance Our People and transparency Page 14 Our governance structure Page 110 Who are we? Page 51 Committed to our people Ethics, Conduct and Regulatory Compliance Page 16 Ethics Committee Page 112 What do we do? Regulatory Compliance Body Principal HR indicators 2019 Launches Complaints Channel Page 115 Anti-corruption mechanisms Page 22 and conflicts of interest Quality employment Where to find us Human Rights Work-life balance Associations and other initiatives Health insurance Page 24 Flexible Remuneration Our vision Page 56 Company bus route Company proposition Fiscal Transparency Education Fund Business model Public subsidies received Employees signed up to Vision of Corporate collective agreements Social Responsibility Page 58 Composition of representation Risk management and control Commitment to innovation of Cosentino employees Proximity to our clients Innovation at Cosentino Group and stakeholders Main developments and launches in 2019 Page 120 Alliances for innovation Equal opportunities Page 32 digitalisation and automation Where are we heading? Page 122 Page 76 Remuneration Page 34 Commitment to our customers 2019 milestones and figures Proximity to our customers Business evolution and results Excellence in quality and service Awards and distinctions received in 2019 Customer health and safety Constant dialogue with our customers Page 96 Commitment to our suppliers Our purchasing procedures We promote our values and policies Supplier health and safety Dialogue with our suppliers Planet Community Page 122 Page 148 Page 188 Integration Planet Community Page 152 Page 192 Page 124 Commitment to the environment Commitment to the community Discrimination and prevention of harassment Sustainability in the value chain Page 194 Environmental management Page 126 system Our commitment to local employment Health and Safety Environmental R&D Commitment to our value chain New Eco products Page 195 Leadership programme in Our commitment to occupational health and safety Circular waste management Almeria and Andalusia Health and safety training Page 169 Page 196 Main accident rates Climate action Our commitment to education Page 136 Energy efficiency Page 205 Talent development Sustainable mobility and management Our commitment to Air quality control architecture and design Training offer Employee-focused innovation Page 178 Page 219 Natural capital Our commitment to the Page 144 kitchen and cooking Biodiversity Dialogue with our employees Communication tools Water footprint Page 225 Employee events Our commitment to Page 183 art and culture Employee social actions Training and involvement in the environment Page 230 Community involvement Page 187 Prizes and certifications Page 234 Our commitment to sport Page 237 Conversation with the community Hello! Welcome Welcome Hello! Page 12 Page 32 Letter from the President Where are we heading? Page 14 Page 34 Who are we? 2019 milestones and figures Business evolution and results Page 16 Awards and distinctions received in 2019 What do we do? 2019 Launches Page 22 Where to find us Page 24 Our vision Company proposition Business model Vision of Corporate Social Responsibility Risk management and control Proximity to our clients and partners 10 Hello! Welcome 11 Welcome Letter from the President A commitment to innovation and ongoing improvement is a key part of our value proposition This CSR report gives us the opportunity to present another year of advances in our commitment to transparency in terms of economic, social, environmental and ethical sustainability. We present this report to update our stakeholders on our contribution to society in every location where we have a presence. We closed the year 2019 with significant business growth and, more importantly, with a considerable increase in the number of employees. The Cosentino Group now employs nearly 4,800 people worldwide. 470 new jobs were generated in 2019, an increase of 11% over 2018. The diversity of our employees in terms of place of origin, nationality, gender, beliefs and religion constitutes a rich human tapestry that must be managed with an open and inclusive spirit. In 2019, in line with this spirit of welcoming diversity, the Cosentino Group joined the Diversity Charter, a European Union initiative promoted in Spain by the Fundación Diversidad. This involves the adoption of a code that upholds the fundamental principles of equality and non-discrimination in companies. With regard to turnover, 2019 closed with sales of 1,110 million Euros, maintaining double- digit growth compared with the previous year, specifically 12.7%. Growth in North America and Europe has placed these markets at the forefront of commercial development for the Cosentino Group, which has an active presence on five continents. It was particularly intense year for investments, with an executed amount of approximately 120 million Euros in 2019. These investment efforts, primarily industrial in nature, have marked the start of an ambitious growth plan for production capacity and automation and digitalisation. Both of our Silestone® and Dekton® factories are being continuously updated to increase their production capacity and offer the maximum efficiency and quality standards expected of the world leader in the two product categories. Another fundamental pillar reinforced by the company last year was our commitment to the environment and people, aiming to apply the latest technology and measures for collective and individual protection. In addition to investments in heat recovery, improved energy efficiency, expansion 12 Hello! of water treatment capacity and modernisation of VOC treatment systems, I would like to highlight Cosentino's endorsement of the National Agreement on the Circular Economy, from the Ministry for Ecological Transition. This commitment also covers waste recovery, with Cosentino reaching a new record recovery rate of 33% in 2019. Among other initiatives, this is thanks to the R&D project "Circularity", an innovative programme that has already achieved real success stories such as the manufacture of technosols from wastewater sediment. From an international perspective, in 2019 we opened new Cosentino Centres in the United States, Canada, France and Malaysia. We also established a new Cosentino City in Los Angeles, California. Finally, I would like to thank all of our stakeholders, from suppliers, public administrations and financial institutions, among others, for the trust and support they have placed in us throughout the year. I would like to invite you to learn more about our work, which is explained over the various chapters of this Report. Francisco Martínez-Cosentino Justo President, Cosentino Group Welcome 13 Welcome Who are we? The Cosentino Group is a global, family-owned Spanish company that produces and distributes innovative, high-quality surfaces for the architecture and design sectors worldwide. We work alongside our clients and partners to offer high-value solutions and design, inspiring the lives of many. Purpose To inspire people through innovative and sustainable spaces. Mission Vision A leading company that To lead the global works responsibly with its surfaces market through clients to anticipate and our brands, offering imagine the future, creating innovative architectural innovative, high-value solutions that provide surfaces for the world of design, value, and architecture and design. inspiration for our clients. 14 Hello! Our DNA As Cosentino Group employees, we all share a single DNA comprised of the following values: Innovation Inspiring Action Self-motivation We act proactively, seeking and We transmit enthusiasm and positivity, We set our own goals with implementing creative ideas and encouraging others to make the most determination and ambition, solutions, identifying and generating of their abilities. We motivate the not just settling for the required opportunities in a variety of settings. team to achieve our goals. Be the best outcome, but seeking to exceed The value of responsible innovation. version of yourself at Cosentino. expectations. Improve every day by advancing with determination, Global Vision Passion for Change never settling for mediocrity. We understand corporate strategy We adapt with agility to new or and focus our efforts on achieving changing situations, whether planned Reliability the Cosentino Group’s goals, or unexpected, and we question the We conduct our work with rigour and overseeing and assessing the established order from a constructive honesty to achieve the established impact of our actions on people and standpoint to propose and implement objectives. We persevere in the face of processes at all times. We plan our actions that will bring progress. obstacles and difficulties. We improve actions to meet our objectives. We mark our future path together. through work, effort and dedication. Client Partner We evaluate and understand how our work contributes to customer satisfaction (external and internal) and Global focus our efforts around their needs. Vision Committed to customer satisfaction. Inspiring Action Innovation Team Building Reliability We achieve common goals by aligning our contributions with Self-motivation the overall objectives, actively