SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2019

WORKING TOGETHER FOR SUSTAINABLE GROWTH SUSTAINABLE DEVELOPMENT ANNUAL REPORT 2019 COMPANY OVERVIEW Company history SUMMARY

LETTER FROM MARCO GIOVANNINI AND FRANCO BOVE ...... 4

COMPANY OVERVIEW...... 7

CORPORATE SOCIAL RESPONSIBILITY: VISION AND ACTION ...... 39

LOCAL ENGAGEMENT...... 67

WORLDWIDE PLANTS OVERVIEW ...... 77

ANNEXES ...... 103

2_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _3 COMPANY OVERVIEW Letter from…

The publication of the 9th edition of our Annual Although fully aware of the difficulties that lie There are 4 key principles, respect, tolerance, Sustainable Development Report takes place at a ahead and the great changes to be made, our ethics and solidarity. And it is precisely the time of exceptionally severe health challenge and Group has, however, more reasons to look forward same spirit of solidarity that has manifested on the eve of a worldwide economic and social with confidence. itself everywhere in the world to counter Covid crisis of unprecedented size. Our first thoughts go The health crisis we are going through requires 19 which should guide all of us to get out of to all those who, in recent months, have fought a new look at our most precious capital: people. the crisis and guarantee everyone health, work, this subtle, invisible, deadly enemy that generates All different and unique, women and men, young safety and well-being. fear, distrust and concern for the future, in the and old, with their challenges to face and win in In our 2016-2022 sustainable growth program, personal as well as in the professional sphere. In personal and professional life. Our challenge, environmental and social goals are more impor- the Group, in every plant, all possible measures as a Group, is to resume our activities, to find tant than ever. have been enforced to guarantee the safety and our way back to growth, putting people and the We are halfway there and there is still a lot to health of all employees. We have also taken out environment at the center. an insurance policy that covers all our employees do. The crisis is not and will not be an excuse to around the world if they fall ill due to Covid 19. To the three Group values «Excellence, Inno- ease efforts and investments. Indeed, it tells us vation and Sustainability», we have decided to that there is no more time to waste. At the same time, we are committed to main- add that of «Diversity & Inclusion». At the end taining production and the guarantee of supply Let’s move forward, united, determined and of 2018, we started a reflection process that confident. to our customers worldwide wherever possible. involved all the Business Units. The fruit of this After a positive 2019, the impact of the crisis on work led to the development of a «Charter of Many thanks. the first months of 2020 is already considerable, diversity and inclusion», which will be launched Marco Giovannini & Franco Bove and 2020 performance will be affected. during the year. MARCO GIOVANNINI FRANCO BOVE

4_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _5 COMPANY OVERVIEW

SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _7 COMPANY OVERVIEW COMPANY OVERVIEW 2019 HIGHLIGHTS 2019 Company history • Dutch subsidiary Guala Closures In- highlights ternational B.V. approved the establi- shment of a new company in Belarus. We started up a new production unit 1954 • Guala is founded for the production of plastic 2008 • Acquisition of the Technologia Closures 2016 • Acquisition of CAPMETAL in France Debiti inoccum Minsk vent (Belarus) autectem at the reped end modi of 2019. officip components. plant in Ukraine. in December 2016. sandaecusThe plant por maximilitas in Kenya started eaquiae. production Et eaque • Guala Closures exits the Italian stock market. • GCL Technologies founded in Foetz (LUX). mo consequein February et re2019. occusci urehendebita 1960 • The first patented models of non-refillable porerestorum voluptatur aut. Debiti occum por We moved production to Scotland to closures are produced. 2009 • The Pharma division is established 2017 • Acquisition of Axiom Propack Pvt Ltd in India. maximilitas eaquiae. Et eaque mo conseque the Bridge of Allan plant. with head office in Vasto. • et re occusci urehendebita porerestorum 1998 • Acquisition of the activities of LIMAT S.A. de C.V. Marco Giovannini becomes leader. in Mexico and of the activities of ICSA in Chile. voluptaturThe PET aut. plant of Guala Closures Iberi- Guala Closures Group is established 2010 • Eastern Europe expansion: Guala Closures acquires • ca in Alcalá De Henares (Madrid) was and sponsored by private investors. Opening of GCL Technologies. Danik in Bulgaria and DGS in Poland. definitively closed at the end of July. 2018 • 2000 • After Spain, Mexico, Brazil, Colombia and India, 2011 • Start up production in Chile. We reorganized the Group’s activities Acquisition of Metalprint in Magenta (Italy), • international expansion continues into Argentina, degreasing, cutting, and lithography plant. Ordinary shares and market warrants traded in France and China during the year. China and Russia. on the Italian Stock Exchange. • 2012 • Acquisition of Metal Closures Industries Incorporation of a new company in Kenya, • A review of the ethical/social policy 2003 • The is established -  Aluminium Division in South Africa. named Guala Closures East Africa Limited. was published which, in addition Global Cap SpA is acquired. • Merger process between group companies: to drawing attention to full respect • 2014 • Guala Closures Group celebrates 15 years Guala Closures (India) Pvt Limited and its Guala Closures Group now has 21 production for human rights, highlights: our plants worldwide. in the business and 60 years in the business subsidiary Axiom Propack (Pvt) Limited for the Guala Group. (acquired in 2017). employees, suppliers and external 2004 • A new production plant is built in Mexico. • Inauguration of the first production plant in • Acquisition of United Closures and Plastics communities and other stakeholders. Fairfield, California, featuring a modern and (UCP) in UK. 2005 • Guala Closures North America Inc. is established avant-garde Design Studio. • We updated of the materiality as- to sell products on the US and Canadian markets. sessment with internal and external 2015 • • Guala Closures is listed on the Italian stock Guala Closures Group present at EXPO Milan. stakeholders in order to take into market: 22 November 2005. Opening Guala Closures DESIGN STUDIO Italia account the Group’s continued deve- at Basaluzzo. lopment and its stock market listing. 2006 • New sales offices are opened in North America • New offices and HQ in Luxembourg. and France, as well as new production plants. • New plant opening in Santiago de Chile. • We launched new chip-readable clo- 2007 • The new production plant is inaugurated sures (NFC) in the United States. They at Spinetta Marengo HQ. have started the process of digitising the packaging.

8_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _9 COMPANY OVERVIEW COMPANY OVERVIEW Our presence around the world Our presence around the world

GUALA CLOSURES GROUP Oceania Europe • Australia : Melbourne • Italy : Group Holding • New Zealand • Auckland • Luxembourg : International Holding Asia • Netherlands : International Holding • China : Beijing • India : Ahmedabad • Daman • Dharwad • Goa GUALA CLOSURES’ PLANTS Africa Europe • Kenya : Nairobi • Bulgaria : Kazanlak • South Africa : Cape Town • Belarus : Minsk • France : Chambray SALES OFFICES • Italy : Magenta • Spinetta Marengo • Termoli • Vasto • Luxembourg : Foetz Europe • Poland : Wloclawek • France : Tours • Spain : Jerez de la Frontera • Olerdola South America • Ukraine : Sumy • Argentina : Buenos Aires • United Kingdom : Kirkintilloch • Bridge of Allan Asia North America • Japan : Tokyo • Mexico : San José Iturbide • USA : Fairfield (California) South America • Argentina : Chivilcoy • Brazil : São Paolo • Chile : Santiago de Chile • Colombia : Bogotá

10_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _11 COMPANY OVERVIEW COMPANY OVERVIEW Our Group in a few figures Our Group in a few figures

5 RESEARCH AND €606.5 MILLION 29 PLANTS 30 TURNOVER 2019 DEVELOPMENT NATIONALITIES 3 SALES OFFICES CENTRES REPRESENTED

MORE THAN SALES NETWORK IN OVER 6 CATEGORIES 33.15 HOURS OF PRODUCTS OF TRAINING PER PERSON 310,000 TREES 100 COUNTRIES PLANTED SINCE 2011

OVER MORE THAN MORE THAN 16 BILLION 170 PATENTS 4,764 200,000 TONNES AND INTELLECTUAL EMPLOYEES OFFSET CLOSURES WORLDWIDE OF CO2 PRODUCED IN 2019 PROPERTY RIGHTS SINCE 2011

Data updated as on 31 December 2019

12_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _13 COMPANY OVERVIEW

Value creation TECHNOLOGICAL LONG TERM HEALTH, SAFETY NEW CONSUMER MEGA TRENDS CHANGES ENVIRONMENTAL ISSUES AND WELLBEING EXPECTATIONS

At Guala Closures Group, we manufacture closures that offer innovation, protection, MOBILIZED RESOURCES PRODUCTION OUR MARKETS AND PORTFOLIO OUR CREATED AND SHARED VALUE safety and convenience to consumers while enhancing our customers’ brands. S N TIE ON CI -R We built our business model on our vision FINANCIAL PA E FINANCIAL A FI C LL and our values by relying on our resources investments € 31.6 million G A Turnover: 606.5 Million euros / EBITDA: 113.5 N B I L (capital expenditure, net of disposal) IS E and our production capacity to offer our cus- S M Y MANUFACTURAL O SPIRITS S tomers quality and value-added products. T T MANUFACTURAL S E over 16 billion closures produced in 2019 U M C We create economic, social and environmen- 29 plants ALUMINUM S tal value that benefits all of our stakeholders INTELLECTUAL INTELLECTUAL TRANSFORMATION WATER AND Over 170 international patents registered and thus help strengthen our group and 5 research and development centres, in the field of product protection, our customers’ performance. 25 researchers PROCESS WINE BEVERAGE Over 20 new products developed in 3 years HUMAN HUMAN 4,764 employees worldwide 33.15 training hours / employee OUR VALUES + 739 agency workers OIL AND SOCIAL AND RELATIONSHIP SOCIAL AND RELATIONSHIP PET VINEGAR 39 communities, 1000 beneficiary families T regular dialogue with corporate A for Yucatan reforestation program ; TRANSPARENCY M and local stakeholders PLASTIC P 26 villages in Gujarat plantation program E R S - E M V E TRANSFORMATION I T PROFESSIONALISM NATURAL D S NATURAL E Y 1,400,173 GJ of energy and N PHARMA S 200,000 tons eq CO2 offset since 2011, PROCESS T G 273,784 m3 of water consumed SY IN 310,000 trees planted since 2011 ST PP PROTECTION AND WELL-BEING EM CA OF THE ENVIRONMENT S

ACKNOWLEDGING AND REWARDING RESULTS STRATEGIC AXES EXCELLENCE INNOVATION SUSTAINABILITY

14_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _15 COMPANY OVERVIEW OUR TOP MANAGEMENT IS • Committed to promoting the company values Our missions and values so that they are used as a reference for the correct development of all internal and external activities. • Committed to promoting and sharing ‘Cor- porate Responsibility’ and Group objectives at all levels. OUR VISION EXCELLENCE • Committed to sustaining and providing the We manufacture closures that offer innovation, resources needed to achieve the objectives. protection, safety and convenience to • Committed to analysing results and perfor- INNOVATION consumers while enhancing our customers’ mance, and verifying the effectiveness of brands. the objectives achieved. All our governance processes, values, corporate SUSTAINABILITY responsibility and various commitments are part of our ISO 9001:2015 system and audited accordingly by Bureau Veritas. OUR CORPORATE VALUES At Guala Closures, we make • Transparency: clarity, completeness and correctness of information in our business closures that protect and activities and in our interpersonal relations. • Professionalism: personnel training and enhance our customers’ growth in the pursuit of constant development. products. • Defence and well-being of the environment: safety and health in the products’ working OUR MISSION environment, and of the impact on commu- nities close to our production sites. We understand and embrace our clients’ goals as our own, applying creativity, experience, • Acknowledging and awarding results: full integrity and dedication to deliver them superior sharing of the goals and objectives’ evaluation closures and solutions while reducing our criteria to enhance and reward all human environmental impact on society. resources.

16_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _17 COMPANY OVERVIEW COMPANY OVERVIEW Our markets and brand portfolio Spirits market

Guala Closures products are designed, manufactured and distributed worldwide and cover six product categories: Spirits, Wine, Oil and Vinegar, Water and Beverages, Pharma and PET. All the products are sold to two types of customers: multinational and local customers (more details can be found in the Plants section). The quoted percentages derive from the Group's 2019 turnover with the named categories accounting for 97.2% with a balance of 2.8% from other revenues.

Spirits / Luxury...... Wine...... Water and beverages...... 66.3% 17.8% 8.9% Guala Closures Group stands out as the Technological innovation has provided alcohol producers with Wine is more stable over time and its delicate balance For this sector, we produce aluminium closures for glass key partner of spirits manufacturers. solutions that make it increasingly difficult and demanding does not change during transport. Finally, the closures of bottled gaseous and non-gaseous drinks, fruit juices to counterfeit packaging and protect the brand’s image. Guala Closures make it easier to open and close the bottle, and non-alcoholic drinks. It supplies some of the most We are able to design totally customised www.savethespirits.com maintaining the quality and taste of the wine for longer. important international brands with generic or “tamper closures in an infinite range of colours, www.winedevelopers.com evident” closure systems, i.e. capsules with a patented shapes, sizes and materials to meet the www.savethewines.com system that allows the first opening of a bottle to be highlighted. All closures are personalised with the best needs of customers and to enhance their graphic techniques to maximise the brand’s image. brand image. Our technological innovations provide spirits manufacturers with solutions that make the counterfeiting of packaging in- creasingly difficult. We proactively address Oil and vinegar...... 2.0% Pharma...... 1.3% PET...... 0.9% strategic issues in this market, including the need of premiumisation and of diffe- For the oil sector Guala Closures supplies a diversified range We are able to offer a wide range of solutions, often It groups together the production of containers such as of long and short capsules, pourers specifically designed customised to meet the needs of customers and the market. bottles, jars, flasks and miniatures with a volume capacity rentiation. for the viscosity of the oil in order to allow perfect pouring The range includes plastic and aluminium closures, rubber ranging from 20 ml up to 5 litres and collar finishes between and anti-drip devices to prevent dripping that could occur closures, single-dose vials and PET bottles in an infinite 18 mm and 110 mm, thanks to a very modern equipment when pouring of the liquid is interrupted. range of colours, sizes, shapes and materials. together with one-stage and two-stage procedures. www.salvalolio.com www.gclpharma.it

18_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _19 COMPANY OVERVIEW COMPANY OVERVIEW Luxury market Wine market

Guala Closures wine screwcaps have been Passion is the soul of Luxury. adopted by leading wine manufacturers in five continents due to the benefits they The artisans dedicate themselves to the offer with respect to traditional corks: pursuit of perfection. Luxury Closures they have no impact on the organoleptic seeks to reflect both brand luxury and qualities of the wine, avoiding oxidation perfection, introducing a unique solution. and the so-called ‘cork taint’. The craft trend is one consequence of Wine lasts longer over time and its de- the Millennials’ aspiration for new and licate balance does not change when different products. transported. Additionally, Guala Closures Craft in Beer, Food or Spirits reflects a screwcaps make the bottle easier to open more traditional production method, and to re-seal, maintaining the quality less processed, with more local content, and the taste of the wine for a long time. authentic, genuine, differentiated and The screwcaps can be personalised with a where possible, enveloped in a plausible variety of decoration techniques to meet and distinctive story. the customer’s brand and marketing re- quirements.

20_ SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _21 COMPANY OVERVIEW COMPANY OVERVIEW Water market Olive oil market

Olive oil embodies tradition, history and quality. Guala Closures Group makes aluminium closures for beverages in glass bottles, For the olive oil sector, Guala Closures such as: sparkling and still soft drinks, Group offers a wide range of closures fruit juices and non-alcoholic beverages. with an infinity of decorative possibilities, development of spouts adapted to the Guala Closures is the partner of interna- different products’ viscosities and drip tional leading companies, protecting their systems that prevents liquid spillage from product brands with either generic or the bottle. tamper-evident closures, guaranteeing the consumer’s bottle has not been opened. Thanks to our 60 years of experience in innovation through our R&D department, All Closures can be customized with high the Group has patented solutions that quality graphical techniques to enhance make the consumption of olive oil safer, brand image. avoiding counterfeiting and preserving its authenticity and quality.

22_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _23 COMPANY OVERVIEW COMPANY OVERVIEW Our technologies Our innovation process

The SAFETY CLOSURES created by Guala Closures fight TAMPER-EVIDENT SYSTEMS are available in different CUSTOMISING CAPACITIES These trends are pushing us in a big effort to change Connected caps are a key project for future develop- against counterfeiting. This illegal phenomenon affects not only the design of the products, but also the way we ments. With its IoC (Internet of Closure) technology, types to allow the consumer to see if the bottle has To satisfy all the customers’ requests, we all countries worldwide, and consists in refilling and been opened. develop and produce them: we need to be fast, able to Guala Closures Group can make every bottle identifiable, substituting the original product. Such actions cause not have developed the capability to provide manage in parallel many developments, and flexible in interactive and changes an isolated bottle to a Connected only enormous economic damage to the company, but unique and customized solutions. production tooling, because of the small volumes of the Bottle. Thanks to the insertion inside the closure of a – above all – provides a serious risk to the health and • ICON range combines our artisan know-how different designs. specifically designed NFC circuit, with a simple ges- The market evolution pushes our group in several diffe- safety of final consumers. As world leader in the produc- and our technological mastery (sputtering More and more Luxury-Premium market’s competitors have ture, the consumer engages the tag via his/her mobile rent directions, mainly driven by the new generations’ tion of safety closures, Guala Closures prides itself in its metalisation matt & shiny, spray painting, been following our technological roadmap: a lot of compa- phone and accesses content through the IoC platform. approach to distilled product choice and consumption. expertise thanks to continuous research in solutions and top & side embossing or debossing, mate- nies, that until yesterday just produced corks, for example, We are strongly investing in this field in research and technology towards: rial effects, integration of emblems, tags THE MAIN TRENDS ARE: now are offering complete Luxury caps, so the competitive development of both products and production lines. and medallions). arena is becoming quite crowded and challenging.  NON-REFILLABLE SYSTEMS consist of a series of Sustainability of our products, more and more requested • With ESSENCE range, the Group introduces by our customers and coming from their direct and In the Premium market we have developed new solutions internal valve systems of varying complexity dependent CAPPING SYSTEMS guarantee that the closure is on market need. This invention prevents the bottle from highest quality Wood Closure and offers strong commitment based on putting together different materials (like plastic secured to the bottle. The three ways of capping systems and wood) and we have added further effects taking them being refilled and the original product replaced with a methods include: luxurious closure solutions. Customer engagement, through connected closures that from the fashion industry; the result has been a new Group counterfeit version • GRAVITAS is a unique material innovation Roll-on: The aluminium closure is rolled on the allow the brand to pass to the final consumer the actual catalogue for the Luxury and craft ranges (“Luxury Closures glass with specific rollers which form the aluminium providing greater design freedom with a values and create a strong consumer connection with Artisans” and “Secret Garden” respectively). to the exact shape of the glass wide choice of finish and weight. This range the brand; this is an important request in craft distilling, New closures for high end products have been developed brings together the versatility of plastic where brands need visibility to final consumers Snap-on: The closure is secured by vertical for different markets, spanning from Scottish gins and pressure. and the luxury feel of metal. whiskies, to Korean and Far East products, to Tequilas in Market accelerated trend to push mass products toward Mexico and the USA. Screw-on: The closure is screwed on. commodities and elevate few brands to premiumisation; this trend brings to a continuous research of cheaper We have developed new caps whose target is to go toward solutions in one end and to fragmentation of more and more sustainable solutions keeping the same aesthetical more customised products but with small volumes, in appeal of the current more complex and less sustainable the other end. solutions. These caps use mainly mono-material structures and are ready to further evolve toward totally compostable caps. That remains our target. All these developments come not only from a tight collaboration between R&D centers and Marketing, but also from external partners, design agencies and web developers. We are enlarging the number of competences we need to be ready for future challenges.

24_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _25 COMPANY OVERVIEW COMPANY OVERVIEW Our launches RE-USE Go further in ecodesign approach RECYCLE In this direction, the launch of the «Green Cap» aluminum BIO AGAVE closure should be considered, which allows an easy di- To meet the requests of our tequila customers, a research vision between closure and bottle for correct disposal of and development process has been undertaken aimed USE LESS the packaging at the end of its life. at the production of stoppers with bio-based material The Group intends to achieve the challenging objective derived from the waste of agave processing in the tequila CONSUME LESS of using 35% of recycled materials by 2025, also by leve- manufacturing process, in line with a circular economy LUXURY CLOSURES raging external stakeholders, implementing increasingly perspective. environmentally-friendly solutions and developing new WINE CLOSURES Gravitas Guala Closures, as a global leader in the production of spe- With the introduction of agave bio-based composite ones at its innovative R&D centre, extending its existing material, on the overall finished closure, 30% comes from cial closures for alcoholic beverages and wine, has always range of sustainable closures (Green Cap, Bio Agave, LUXURY CLOSURES been focused on protecting the environment, preserving agave fibers and 70% from polypropylene. This means that Wave, Bikini, etc.). the consumption of polymers from oil have been reduced Ultra-premium t-bar natural resources and reducing production waste; 26% of To encourage best practices for closure recycling, Guala and CO2 emission have been cutted. its total raw materials (plastic and aluminium) are recycled Closures has committed to joining European entities and This bio-based material preserves the mechanical properties materials, achieving 38% of recycled materials in Europe, consortia that endorse materials collection and recycling, and over 50% in Africa and Oceania. of plastics and transform waste from the agro-industrial and to organise events to promote awareness, in colla- process into an alternative material. Aware that there is no single solution to the demand for boration with Environmental organisations, addressed to sustainable products, Guala Closures’ innovation has consumers and stakeholders with a view to encouraging moved in different directions of eco-design: informed consumption practices. • Easy recycling, through mono-material solutions; • Reduction of the impact in the production of the closure, GREENCAP® achieved through the use of materials partially or totally The research, development and engineering team of Guala produced from renewable sources; Closures have developed Greencap®, a special ROPP clo- sure for wine and spirits which allows to easily and safely • Reduction of the plastic materials used, continuing the unscrew the skirt, that usually remains on the neck of the research in the partial replacement of polymers with bottle after use, without using any tool. fibers / fillers from natural waste; While maintaining all the advantages of a screwcap, inclu- • The biodegradability / compostability of closures, through ding ease of opening and closing and preservation of the the development (with strategic partners) and the use of quality of the wine without, among other things, requi- advanced polymers. ring any modification on the bottling line from producers CONNECTED CLOSURES The goal is to provide customers with a broad spectrum who already use screwcaps, this helps the separation of NFC Aluminium closures of solutions that will then be chosen according to the local the aluminium from the glass in order to improve waste for wine and spirits structure of the packaging end-of-life treatment chain. collection and materials recycling process.

26_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _27 COMPANY OVERVIEW COMPANY OVERVIEW 2019 Awards Fight against counterfeiting

2 AWARDS FOR E-WAK®, THE CONNECTED SPECIAL MENTION FOR GUALA CLOSURES SAVE THE SPIRITS, SAVE THE OIL, CLOSURE FOR WINE PART OF NĚSTGATETM INTERNATIONALISATION STRATEGIES SAVE THE WINES RANGE In October, during the ceremony of “Eccellenze d’impresa” In may, during the Alufoil Trophy competition, organised that took place inside the prestigious Palazzo Mezzanotte, The Group has conceived and launched three websites by the European Aluminium Foil Association (EAFA), home to the Italian Stock Exchange, Guala Closures dedicated to social responsibility campaigns to fight against the “Discretionary Award” went to Guala Closures for Group CEO & Chairman Marco Giovannini received the THE PERCENTAGE OF the counterfeiting of alcohol, oil and wine. e-WAK®, the first NFC integrated aluminum closure for prize assigned to the Group: a special mention in the COUNTERFEITED OR ILLEGAL This is a worldwide phenomenon causing serious damage wine, dedicated to wineries, allowing them to start a one Internationalization category for its business strategies, to consumer health and the economies of many countries. to one relationship with their end consumers. for its active presence in over one hundred countries, with SPIRITS IN THE GLOBAL MARKET twenty-nine production plants on five continents. The Group creates products that can counteract this The closure impressed the judges in each category, leading phenomenon and help to protect customers’ beverages. The them to consider it as a possible revolution for the wineries, aim of these websites is to create international specialist their marketing strategy and consumer engagement. SPIRIPACK BRONZE AWARD FOR GRAVITAS focus channels and to promote a wider awareness and In November during the Innovation Challenge SIMEI LUXURY CLOSURE DESIGNED FOR GLENFIDDICH The consequences of spirits counterfeiting are serious. appreciation of the circumstances behind counterfeiting competition, the technical-scientific committee selected GRAND CRU Along with the economic damage, it causes serious beyond the usual boundaries of fashion and technology. e-WAK®, among the most deserving innovations. health risks and the deaths of tens of thousands of In the occasion of the VSPack trade exhibition in Cognac, people every year. Then, a new award had been assigned to the connected France, Guala Closures submitted its Gravitas closure TO FIND OUT MORE, VISIT version of Guala Closures’ WAK® screw cap for wine, designed for the new Glenfiddich Grand Cru to the «Spiripack An advertising campaign has been planned to support > www.savethespirits.com thanks to the scores obtained by the technical panel and Crédit Agricole 2019 Award», organised by Atlanpack communication, to raise awareness not only of consumers > www.savethewines.com the public of Enoforum, the largest technical-scientific and dedicated to the best packaging innovations from but bartenders, companies and stakeholders in the beverage > www.salvalolio.com congress in Europe for the wine industry. VSPack exhibitors. The jury of professionals – comprised and drinks sector. To facilitate the process, a selected by representatives of the V&S News and Formes de Luxe number of pubs, bars and clubs will act as testimonials ALUSNAP SMART WINNER OF “PREMIO CONAI” magazines, the creative agency in Spirits Design and the of the campaign, explaining the importance of the steps Conseil National de l’Emballage – gave to Gravitas closure taken to ensure the authenticity of products sold. Thanks to the reduction of the raw materials used for the «Bronze Award» for the innovative features of the Thanks to the development of NFC technology integrated its new Alusnap closure, Guala Closures was one of the material and the versatility of the shape and finishing. 86 companies that received a CONAI award, which has into our new range of connected closures, consumers reinvented its packaging with a view to innovation and benefit from full traceability on the product and its environmental sustainability. packaging. THE VALUE OF COUNTERFEITED ALCOHOL PRODUCTION IN THE WORLD

28_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _29 The Guala Closures S.p.A. Corporate Gover- COMPANY OVERVIEW nance system is characterized by a set of COMPANY OVERVIEW rules, behaviours and processes aimed at gua- Structure of the Group ranteeing efficient and transparent corporate Our corporate governance governance and the effective functioning of governance bodies and control systems. The Company adheres to the principles and appli- cation criteria contained in the current Code of Conduct for listed companies, promoted GUALA CLOSURES S.P.A. ITALY by Borsa Italiana (the Italian Stock Exchange). 100% The Governance adopted by Guala Closures must ensure fairness and transparency in GUALA CLOSURES INTERNATIONAL B.V. NETHERLANDS the management and information and the protection of all shareholders, in accordance OCEANIA AMERICAS EUROPE ASIA AFRICA with national and international best practices. The Shareholders’ General Meeting expresses Marco Giovannini Guala Closures Guala Closures Mexico S.A. GCL International S.à r.l. Guala Closures (India) Guala Closures South the will of shareholders. It approves the finan- Nicola Colavito Chairman Anibal Diaz 100% 95% Australia Holdings Pty Ltd 100% de C.V. Mexico Luxembourg Pvt Ltd India Africa Pty Ltd cial statements and appoints the members

100% Director Director 100% of the Board Australia 100% South Africa of the Board of Directors and the Board of Guala Closures DGS Poland 100% 100% Guala Closures Servicios Statutory Auditors. It can resolve on amend-

70% S.A. - Poland Mexico, S.A. de C.V. Axiom Propack Guala Closures Guala Closures ments to the Articles of Association and Mexico Pvt Ltd India East Africa Ltd

Guala Closures 100% extraordinary transactions. Australia Pty Ltd Kenya Australia 70% Ukraine LLC - Ukraine Guala Closures de Beijing Guala Closures The Board of Directors has a central role,

93,2% through the performance of functions of Colombia Ltda Colombia Guala Closures UK Ltd 100% Ltd China Guala Closures strategic guidance, organisational coordination, BOARD OF

100% United Kingdom New Zealand Ltd Guala Closures as well as verification of the existence of the Lucrezia Reichlin 100% Guala Closures Francesco Bove 100% New Zealand 100% Argentina S.A. Argentina Guala Closures UCP Ltd 100% Japan KK Japan controls necessary to monitor the performance Independent Director DIRECTORS Director United Kingdom Guala Closures of the Company itself. Moreover, it is vested

100% do Brasil Ltda Brazil Guala Closures with the widest powers for the ordinary 100% Iberica S.A. Spain administration of the Company and, more

Guala Closures 98%

2% precisely, it has the power to carry out all the Chile SpA Chile Guala Closures acts it deems appropriate for the achievement 70% Bulgaria A.D. Bulgaria Guala Closures of the Company’s objectives, excluding only Filippo Giovannini North America Inc. Guala Closures those acts which are exclusively reserved to Luisa Maria Virginia Collina 100% United States Director 70% France SAS France the Shareholders’ General Meeting. Independent Director The Control and Risk Committee is made Guala Closures up of Mr. Francesco Caio (president), Prof. 70% BY LLC Belarus Lucrezia Reichlin and Dr. Nicola Colavito. The

Guala Closures Deutschland 100% Remuneration Committee is composed of Francesco Caio Edoardo Carlo Maria Subert GmbH Germany Ms. Luisa Maria Virginia Collina (Chairwoman), Independent Director Director Mr. Francesco Caio and Mr. Edoardo Carlo GCL Pharma S.r.l. Italy 100% Maria Subert.

30_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _31 COMPANY OVERVIEW COMPANY OVERVIEW Our committees Our committees

CORPORATE STRUCTURE REMUNERATION COMMITTEE ETHICAL / SOCIAL COMMITTEE RISK AND CONTROL COMMITTEE

Guala Closures S.p.A. is a company listed on the STAR segment of the Milan stock This 3 member committee (composed of a majority of independent directors) This committee is composed of the COO and concerned directors : Purchasing, Legal This 3-member committee (composed of a majority of independent directors) has exchange. The ownership structure of Guala Closures S.p.A. is characterised by formulates proposals to the Board of Directors regarding the definition of the Affairs, Quality. Human Resources and Sustainability. It guarantees the knowledge also the duty of assisting the Board of Directors in: a significant portion of the share being held by the market and 24.54% of voting remuneration policy of directors and key managers of the Issuer post-merger. and correct implementation of the Ethical / Social Policy and the Code of Ethics in defining the guidelines of the internal control and risk management system, to rights held by Managers, out of which 24.28% indirectly through the Luxembourgish It periodically assesses the adequacy, overall compliance and actual application all the Group’s plants with 4 objetcives : ensure the main risks are properly identified, adequately measured, managed company GCL Holdings SCA. of the remuneration policies for directors and key managers, and with regard to dissemination of Group policies and objectives on ethical / social aspects and monitored; this, establishes proposals to submit to the Board of Directors. Finally, it submits Guala Closures S.p.A. owns GCL Pharma S.r.l. and Guala Closures International B.V. definition of tools for staff training and awareness the periodic verification of the adequacy and effectiveness of the internal control proposals to the Board of Directors on the remuneration of executive managers and risk management system; Guala Closures International B.V., with its main office in Holland, is the sub- and the other directors who have specific roles, establishes the remuneration definition and dissemination of Group procedures to manage the application of holding company which controls directly and indirectly all the foreign companies performance targets and monitors the application of the Board of Directors’ decisions. ethical / social aspects (internally and in relations with interested parties) the approval of the work plan prepared by the Internal Audit Department Manager; belonging to the Group. coordination and verification of the internal audit results on the ethical / social part the evaluation of the results presented in the reports of the auditing firm and in any letter of suggestions and in the report on the fundamental issues emerging during the audit of the accounts; the appointment and revocation of the Internal Audit Department Manager.

SHAREHOLDERS’ MEETING BOARD OF DIRECTORS COMEX (EXECUTIVE COMMITTEE)

The Ordinary and Extraordinary Shareholder’s Meeting is usually convened by the Board of Directors and has the task of deciding upon the approval This committee meets each month and analyses management progress and the ROLE OF THE COUNTRY DIRECTOR of the annual financial statements and on the other matters reserved Guala Closures S.p.A.’s Board of Directors is in charge of managing and deciding the achievement of set objectives. It is composed of the Group’s CEO, COO, and CFO by the law or by the Articles of Associations, such as the amendments of Group’s strategic and organisational directions, as well as verifying the existence and other Group key department Heads (Corporate General Secretary, Marketing, the articles of association, capital increase, appointment of the directors, of the needed controls to monitor the Group’s activities. Human Resources, Administration and Finance, Management Control, Technical Each of Guala Closures International’s subsidiaries is established in respect to the auditors and the determination of the relevant compensation, etc. The Board is made of 9 members, of which 3 are independent. Among the board Departments, R&D, Purchasing, Sales, Quality and Sustainability). In addition, the national local laws. In general, for each country in which Guala Closures operates, The Ordinary Shareholders’ Meeting occurs at least annually to approve the members, Marco Giovannini is the Chairman and CEO and holds the Group’s most Group’s Country General Directors are invited periodically as each subsidiary is a company-owned enterprise exists which manages the local plant. A Country financial statements. senior position. established according to national local laws. Director oversees the plant and liaises with the Group.

32_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _33 COMPANY OVERVIEW COMPANY OVERVIEW Economic figures Economic figures

TURNOVER TURNOVER GUALA CLOSURES GROUP 2 NEW ACQUISITIONS IN 2019 REVENUES PER TYPE OF PRODUCT 2019 REVENUES PER GEOGRAPHIC AREA 2019 In 2019, the Group recorded a net revenue of 606.5 (million euros, 2009-2019) • On 30 July 2019 the Dutch subsidiary Guala Closures SAFETY CLOSURES 256.1 M€ million euros, with a total increase of the revenues of International B.V. approved the establishment of a the sales of +11.7% and an increase of the marginality to 311.1 new company in Belarus. This company, called Guala ROLL-ON CLOSURES 179.3 M€ level of adjusted EBITDA of +8.6% to current currencies. Closures BY LLC, was established on September 5, This reveals of the resilience of Guala Closures Group’s 371.4 2019. and 70% of the shareholding structure is made WINE CLOSURES 108.3 M€ business and the great capacity for action to cope with up of Guala Closures International BV. The activity of exceptional events. 418.1 the new Minsk plant was started already in 2019 and LUXURY CLOSURES 32.8 M€ the development project continues to better serve the The contribution of the business of Guala Closures UCP, OTHER REVENUES 16.3 M€ a company that entered the consolidation perimeter only 497.1 wider Russian market. at the end of December 2018, consolidated the Group’s 494.3 PHARMA CLOSURES 8.2 M€ EUROPE presence in the spirits market and in particular in the • On 4 November 2019 the new plant in Guala Closures Scottish whisky market. East Africa was officially inaugurated. The company’s E 487.8 PET 5.5 M€ 358.2 M The organic growth in revenues on a like-for-like basis aim is to assist alcohol producers in Kenya and in the 59.1% ASIA is the result of both an increase in sales volumes and 520.5 wider East African market with anti-counterfeiting 80.1 ME the effect of increasing sales prices. The organic growth closures equipped with the latest technologies. The new REVENUES PER MARKET SECTOR IN 2019 13.2% plant located in Nairobi made the first productions in of Adjusted EBITDA, again on a like-for-like basis, is 500.3 The spirits and wine markets continue to represent more attributable to the combined effect of an increase in February and began to penetrate the market in March LATIN AMERICA AND by making the first sales to an important local customer, than 84% of the Group’s revenue. The Group’s consolidated AFRICA sales prices, a reduction in the cost of core raw materials, 534.8 financial statements are accessible to the public on our NORTH AMERICA and in particular plastics, and the application of the new and continues the growth path supported by the Group. website at: www.gualaclosures.com 18.3 ME accounting principle IFRS 16; the latter positive effects, 543.1 109.8 ME OCEANIA 3.0% which more than compensate for the increase in other 18.1% E variable production costs. 606.5 40.1 M 66.3 / Spirits 6.6% 17.8% / Wine 8.9% / Water and beverages 2.7% / Other revenues FINANCIAL STATEMENT CERTIFICATION INVESTMENTS 2.0% / Oil & vinegar The overall economic data has been taken from the Group’s Net investments for the year 2019, amounting to € 31.6 1.3% / Pharma consolidated financial statements. The financial statements million mainly concern plants and machinery and have 0.9% / Pet are certified by KPMG, which audits the contents and affected all five continents in which the Group operates, confirms its compliance with International Financial Reporting concentrating particularly in the European area in the plants Standards. in Italy, in Ukraine and in the United Kingdom. The Group is not exposed to significant geographical risks other than normal business risks.

34_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _35 COMPANY OVERVIEW NUMBER OF EMPLOYEES PER CATEGORY COMPANY OVERVIEW

Human Resources figures Managers / 259 Human Resources figures White collar / 1,029 Blue collar / 3,476

For Guala Closures Group, with its 29 facilities and 3 Guala Closures promotes respect for work and sales offices in 23 countries around the world, people employees by avoiding all forms of discrimination BREAKDOWN BY TYPE OF CONTRACT are a real asset and the best resource to maintain and ensuring full observance of the fundamental market leadership and develop its business. The human rights. 4,764 EMPLOYEES PRESENCE IN Group’s commitment is to stimulate and guide its Guala Closures works to promote a socially ethical Permanent employees towards personal and professional growth, business activity, based on the transposition and IN THE GROUP AROUND 23 COUNTRIES employees / 87% in line with the company’s culture and its corporate application of the following four documents: THE WORLD role, while generating economic and social value. Agency workers / 13% • Social and ethical policy Multiculturalism, training, engagement, awareness of • Work safety policy diversity as a resource, and attention to health and safety are the pillars of Guala Closures’ values and policies • Code of ethics and, thus, empower our employees and collaborators. • Modern Slavery Act AMOUNT OF EMPLOYEES AROUND THE WORLD Starting from these principles, Guala Closures strives 739 AGENCY 30 NATIONALITIES to guarantee its employees full observance of social Europe / 2,929 and ethical topics in all the countries in which it WORKERS REPRESENTED Americas / 871 operates, focusing primarily on three areas: Asia / 641 • promoting company values and continuous impro- Africa / 182 vement at all levels to encourage participation and Oceania / 141 a sense of belonging; • promoting professional growth through continuous training; MEN 33.15 HOURS 76% HOURS OF ABSENCE • the increasingly scrupulous protection of labour OF TRAINING PER PERSON law, respecting employees’ rights and adopting 24% WOMEN Illness / 259,804 h rigorous policies for occupational safety, with Accidents / 24,860 h particular attention to the developing countries in Maternity leave / 40,604 h which the Group operates, focusing, above all, on Other / 119,119 h the selection of a supply chain that is also aware Total / 444,387 h of ethical and social topics.

36_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _37 COMPANY OVERVIEW Company history

CSR VISION AND ACTION

38_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _39 CSR VISION AND ACTION Guala Closures Group’s CSR governance CSR VISION AND ACTION is essentially based on the Green Board. In 2011 we designed our This CSR body was set up in 2015 to define Our CSR governance and ensure effective implementation of Sustainability Strategy Our CSR strategy the agreed sustainability strategy and to monitor progress. In 2019, The Green Board based on three pillars was composed of senior executives at both (Planet / People / Profit) the Corporate and Country/Factory levels, thus including a mix of geographical areas. and 12 indicators. In every area of the Group, Guala Closures promotes and strengthens its global All Country Managers and the continuous leadership in the field of safety closures and aluminium closures, as well as in the improvement team collect and transmit to ENERGY CONSUMPTION Fabrizio Venezia Mauro Boano the Green Board the environmental, social PET and pharmaceutical product lines, through: Group Purchasing Group Human Resources and economic KPIs for the monitoring of the Director Director Sustainability Programme and greenhouse Franco Bove CO2 EMISSIONS CUSTOMER SATISFACTION THE DEVELOPMENT OF HUMAN RESOURCES gas emissions. The body meets 2 to 4 times Group Chief • Developing products that meet the needs • Ensure full compliance with ethical-social Andrea Tassisto Fulvio Bosano a year to discuss progress, listen to top Operating Officer of customers and the market aspects within the areas of the group Group Technical Group Product Research management feedback, identify challenges WASTE Director and Innovation Director and suggest strategic solutions, under the • Making production, products and processes • Promote our corporate values with guidance of COO Franco Bove. RAW MATERIALS ever more innovative employees at all levels In 2020, the Green Board will be renewed • Improve the efficiency and quality • Foster professional growth to achieve the gender equality in line with of production processes • Ensure safety in the working environment our commitment to diversity and inclusion. WATER David Stevenson Armando Finis • Ensure a fast, effective and secure Country Director Group Sales The organisation of CSR at local level is GREEN standard of service INVESTOR SATISFACTION India and Africa Director voluntarily left to the free choice of the ENVIRONMENTAL MANAGEMENT Country Managers, who implement it • Safeguard the brands and confidentiality • Commit to controlling costs and BOARD according to the resources and needs of of our customers eliminating inefficiencies and waste local conditions. In all the Business Units, HEALTH AND SAFETY • Generate added value at all stages Violette Montagnese José Luis Gutierrez the Country Managers have appointed a CSR ATTENTION TO THE CONSUMER of business processes Group Marketing General Director manager who has the task of implementing TRAINING • Ensure full compliance of our Manager Americas the Group’s strategy, implementing the food-contact closures planned actions and achieving the collective • Respect the environment with particular objectives of the Programme. Local CSR Maurizio Mittino DIVERSITY Alessandro Pera attention to reducing the environmental Sustainability and Continuous managers support, pilot and coordinate Group Controller impact of production cycles Improvement Director actions within their Business Units. They are responsible for reporting group indicators. PRODUCTION EFFICIENCY • Engage in important initiatives for communities The Corporate CSR team brings its exper- close to production sites tise and support in the use of tools to the INNOVATION Ken Moran Business Units, giving life to the entire CSR Country Director Programme, facilitating the exchange of United Kingdom good practices between the Business Units CUSTOMER SATISFACTION and supporting innovative projects.

40_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _41 CSR VISION AND ACTION CSR VISION AND ACTION 01- Customer satisfaction 02- Employee safety at work Our issues and challenges 03- Ethics and integrity Our issues and challenges 04- Ethical business practices 05- Governance & compliance 06- Innovation 07- Corruption risk management and prevention In 2019, we updated our materiality assessment by invol- 08- Economic performance FIVE STEPS FOR 09- Data privacy and security 1 ving our internal and external stakeholders in a dialogue MATERIALITY MATRIX We reviewed and extended our list of potential material challenges 2 process. In line with the reference framework pu- initially established in 2016 by analyzing good sectoral practices and 10- Transparency

Absolutely critical 3 blished by the International Integrated Reporting Council reporting reference frameworks (International Integrated Reporting 11- Child labour prevention 4 12- Ethical purchasing practices (IRCI), our essential issues are the economic, social and IN-DEPTH ANALYSIS OF Council - IIRC, Global Reporting Initiative-GRI and the Sustainability 11 5 13- Raw material recycling 6 environmental issues that impact our ability to create SECTORAL ISSUES Accounting Standards Board-SASB, United Nation Sustainable Deve- 12 7 lopment Goals-UN SDGs). 14- Use of harmful substances 17 13 value in a sustainable manner. They are determined based 9 8 15- GHG emissions 32 22 21 14 10 on their impact on the Group’s strategy, governance, 16- Waste from operation 16 15 18

performance and prospects. important Very 33 30 We gathered points of view of our internal and external stakeholders 17- Human rights throughout the value chain 34 31 29 19 23 18- Energy efficiency of operations 28 20 during interviews with a representative panel of customers, suppliers, 26 INDEPENDENT INTERVIEWS 19- Prevent pollution from operations 36 35 Materiality assessment update was a real opportunity to administrators, employees, union members. These interviews were 24 WITH INTERNAL AND 20- Employee training and skills / share practices 27 25 expand even more the dialogue with stakeholders that is conducted by an external organization with questions on the 41 issues EXTERNAL STAKEHOLDERS 21- End of life product recycling part of the culture of Guala Closures Group. We work with identified in order to prioritize their expectations in the context of their 22- Ethical marketing practices all stakeholders to jointly develop our commitments and relations with the Guala Closures Group. 23- Employee satisfaction Important 28 contribute to sustainable and inclusive growth. 39 24- Diversity and inclusion We are convinced that creating an ecosystem including 38 25- Employee empowerment 40 team members and strategic partners creates more We gathered opinions and points of view of nearly 200 stakeholders 26- Material scarcity management

BROAD CONSULTATION OF across 26 countries using an on-line survey. The results have enabled opportunities to do good. We are committed to engaging INTERNAL AND EXTERNAL 27- Employee welfare at work us to prioritize the 41 challenges according to their potential impact on with stakeholders at local, national and global levels: STAKEHOLDERS 28- Develop product with environmental benefits to determine where Guala Closures can contribute to the Group’s ability to create and share value in the medium to long term. 29- Water management

30- Renewable energy use or purchase Some kind 41

significant change. of importance 31- Engaging suppliers in sustainable performance The results were shared within a steering committee, made up of 32- Air pollution CONSISTENCY OF MATERIAL members of the Green Board and the CSR corporate team. This com- 33- Socially responsible investment CHALLENGES WITH THE mittee ensured consistency between the prioritization of material 34- Employee psychosocial risks GROUP’S CRITICAL RISKS issues and the Group’s critical risks mapping. 35- Biodiversity preservation 36- Land management

37- Transport and travel important Not 38- Employee volunteering The results of this materiality assessment have been validated by the 39- Support for charities and NGOs non-existent / very limited Can challenge Can severely impact Can compromise VALIDATION OF RESULTS Executive Committee and constitute a major contribution to the Group’s 40 - Support for local communities reflections. Our goal is to ensure alignment between stakeholders not important projects or affect the the company the company 41- Financial stability company

42_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _43 CSR VISION AND ACTION CSR VISION AND ACTION Our policies and framework Our Ethics and integrity

All policies of Guala Closures Group are characterized FOOD SAFETY POLICY • Legitimate employment contract for all employees, that Guala Closures strives to guarantee its employees full • not to employ child labour; by a common and strong commitment to sustainable • Make safe products: hygienically suitable for contact with guarantees a minimum wage appropriate to the country observance of social and ethical topics in all the countries • not to use forced labour; development, which makes it possible to strengthen food, respectful of legislative and regulatory requirements; in which they work. in which it operates, focusing primarily on three areas: • not to discriminate, ensuring equal opportunities and market leadership in the production of closures in full communication with all members of the supply chain. • Respect privacy and personal data . • promoting company values and continuous improvement treatment and promoting inclusion regardless of religion, compliance with ethical and social aspects, product • Include compliance with hygiene and food safety stan- at all levels to encourage participation and a sense of ethnicity, gender, political or spiritual beliefs, age and safety and workplace safety, all whilst safeguarding ETHICAL AND SOCIAL POLICY dards in product development and process. belonging; disability; the environment. Policies were signed by M. Giovannini, • Recognize employees as our added value and manage • ensuring adequate working conditions, treating all • Believe in people to guarantee food safety: effective • promoting professional growth through continuous training; Chairman and F. Bove, Chief Operating Officer. Each Ge- human resources in a correct manner. employees with dignity and respect, excluding the use of methods of internal communication, implementing, • the increasingly scrupulous protection of labour law, neral Manager or Plant Manager undertakes to comply unusual disciplinary practices and/or corporal punishment; with this policy, disseminating it and applying it to his assessing and improving Good Manufacturing Practices. • Engage stakeholders involved in the supply chain to be respecting employees’ rights and adopting rigorous • ensuring that employees and collaborators operate in or her own organization, defining concrete objectives in aware of our integrity in business and commitment to policies for occupational safety, with particular attention healthy and safe workplaces in accordance with applicable accordance with the Group’s Sustainability Programme, LAND ACQUISITION POLICY sustainable development. to the developing countries in which the Group operates, occupational health and safety standards. as well as implementing actions to achieve them. • Any form of forced land aquisition, free negociation, • Guarantee safety in the workplace and respect of the focusing, above all, on the selection of a supply chain that • ensuring ethical topics in management and supplier payment aligned to marrket value. environment. is also aware of ethical and social topics. relations. QUALITY POLICY • Recruitment of local personnel to work in manufactu- WORK SAFETY POLICY The Group promotes respect for work and employees • Satisfy customer: surpass their expectations, support their ring sites. The group is very attentive to the exemplary behaviour of • People involved in their own safety: effective commu- by avoiding all forms of discrimination and ensuring full employees and to the awareness of all parties concerned needs, ensure and improve an efficient use of products. • Respect and protection of local communities. nication to guarantee requirements and objectives; observance of fundamental human rights. with respect to company ethics and integrity. • Invest in people: training, communication, development • Safe and suitable working environment, free of discri- collection of observations, complaints and suggestions We work to promote a socially ethical business activity, In particular, those involved in the supply chain are required of specific expertises, pride to belong to the group, re- mination. for improvement; development of know-how, methods based on the transposition and application of the following to actively comply with the Ethical and Social Policy, cognition and celebration of results. • Minimization of environmental impact. and tools necessary to maintain safe working conditions; four documents: ensuring the full observance of ethical aspects, avoiding • Continuous check and update of products, processes and sharing of good practices between plants. • Code of Ethics any potential act of corruption, intimidation or fraud, and production systems, encourage strong relationships with MODERN SLAVERY ACT • Develop or improve products and processes with a view • Social and Ethical Policy (updated in November 2019) the Group undertakes to do the same. key suppliers, respect all applicable requirements and • Respect and protect human rights: accept no form of to guaranteeing and improving safety in the workplace; • Modern Slavery Act The relations with external communities are based on the apply the concept of continuous improvement. child labour or practices that inhibit child development. engage suppliers to avoid potential risk situations. • Land Acquisition Policy respect for people, without discrimination or exploitation, and • All work freely chosen and refuse any form of forced or • Endorse and comply with international, national, and considering the suggestions and needs of different parties. ENVIRONMENTAL POLICIY The cornerstones of these documents, which apply to all involuntary work. local laws and standards, as well as with additional The respect for customers, suppliers and competitors is • Develop or improve products and processes with a view Group employees and with which the supply chain must requirements from stakeholders; internal representa- the root of the Group’s business relations. As outlined in to safeguarding the environment and saving energy, • Respect and protect the rights of all employees, those comply, are: working in the supply chain and those involved in the tives in charge of training, communication and first aid the Code of Ethics, particular care is taken to avoid any reducing pollution and cutting CO2 emission. • ensuring that all employees have a regular employment business. procedures, systematic analysis of causes of accidents anti-competitive practices. • Act to involve all stakeholders in the product supply contract and guaranteeing the minimum legal remuneration; • Safe and sustainable working environment, without or potential accidents. In 2019, the awareness and training plan for the Code of chain to be aware of environmental aspects. • guaranteeing freedom of association and collective discrimination. Ethics has continued, involving the relevant managers • Respect for the environment is one of our priorities. bargaining; and employees.

44_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _45 Not all Business Units are certified in every category, 2019 COMMUNICATION FIGURES CSR VISION AND ACTION but the Group has a clear programme for future CSR VISION AND ACTION SUSTAINABILITY REPORT (Full version) certification: Management systems and tools > 3,000 copies printed in English Communication on Sustainability OHSAS COUNTRY PLANT REF 9001 22000 14001 SEDEX > A digital version sent to managers, 18001 clients and suppliers of the Group   ARGENTINA Chivilcoy 2020 2020 - Sustainability West report AUSTRALIA     - SUSTAINABILITY REPORT (Abstracts) Footscray All Guala Closures processes are developed and operate Currently, almost all indicators’ data retrieval is done > 4,360 copies delivered to each employee BELARUS Minsk TBD TBD TBD TBD - MAIN COMMUNICATION TOOLS by reference to the following standards: monthly. Each business unit sends its data to the of the Group, printed in the local language BRAZIL Sao Paulo   2019  - Sustainability Team which checks and compiles the Annual Sustainability Report > For Quality: ISO 9001: 2015 BULGARIA Kazanlak   2020  - > A digital version in each language information into a master document. Also, the central The first Sustainability Report was issued in 2011. Nowa- “Quality management systems - Requirements” Santiago team annually retrieves all actions and initiatives done CHILE 2019 2019 2020  - days it is mainly addressed to the employees of the Group de Chile ECHO NEWSLETTERS on a local level, and uses this information to update the and to its customers. It contains information on the Group > For Hygiene: ISO 22000:2005 CHINA Beijing  2020 2020  - > 1 printed newsletter for the Group current report. governance and product portfolio as well as on how the “Management systems for food safety” COLOMBIA Bogota  2020 2019  - and 1 for Italy employees In 2017, we switched from ‘TEA Tool’ (Tool for Environment Group manages and mitigates the environmental and social FRANCE Chambray  2020 2020  - > A digital English version sent to all impact of its business activities. The report is available in > For the Environment: ISO 14001:2015 Analysis) to ‘CIS Tool’. This new software automates and streamlines the data collection process. During the INDIA Ahmadabad     - the managers English (printed and digital version). “Environmental management systems - INDIA Daman   2019  - Requirements and guidance for use.” year, we have completed the database and mades tests In addition, a report abstract is translated into the eleven successfully. The software has been introduced worldwide. INDIA Dharwad 2020 2020 2020 2020 - POSTERS & TOTEM languages spoken within the Group for wider distribution INDIA Goa     - > Safety: OHSAS 18001:2000 The majority of the plants have been trained to use the > Material provided to each business to employees, customers and suppliers (Byelorussian,   “Occupational Health and Safety Management CIS-Tool, and the 2018 reporting campaign has been ITALY Magenta 2019 2020 - unit around the world for display. Bulgarian, Chinese, English, French, German, Italian, Polish, realised with this new software. Spinetta Systems - Requirements” ITALY     - Portuguese, Spanish and Ukrainian). Marengo     > Continuous improvement: ISO 9004:2009 In 2008, Guala Closures performed its first life cycle analysis ITALY Termoli - Newsletter     _#3 ”Managing for the sustained success of an (LCA), a study that focused on a specific type of closure ITALY Vasto - 2019_JULY ECHO is the internal newsletter which serves as the main KENYA Nairobi 2020 2020 2021 2020 - Editorial known as the Divinum. Additional LCA studies followed INFORMATION NEWSLETTER ON THE Maurizio Mittino tool to share information about projects, initiatives and organization - A quality management approach” ECO-RESPONSIBLE COMMITMENT Sustainability and Continuous Improvement Director Multi-culturalism and diversity Abstracts are part of GCG’s construction as     an international inclusive group.

in 2014 with our wine and oil closures. As we progress in EDITORIAL We consider our specificity as a real wealth MEXICO S.J. Iturbide - 1 / The three main issues, coming from the survey, have Diversity is an asset to cultivate in order to grow together key findings regarding the Sustainability Programme. as a solidary and unified group. been confirmed by working teams: Maurizio Mittino guarantee a common framework in Working with a team spirit while • Gender equally: which women and men can have equal treatment 2016-2022 CSR PROGRAMME accepting each other allows us to embody 2 / and opportunities our values - respect, tolerance, ethics, solidarity - and to make them live • Age: whatever the age, each worker can improve his the years to come, we will increase the focus on reducing 3 / ENERGY CONSUMPTION through our group. position and contribute to the growth of the group NEW adapt to all profiles and enable the inclusion • Disability: INTERNAL AND EXTERNAL INFORMATION Since 2017 the newsletter has 2 versions: one for Italy   4 / ENERGY CONSUMPTION of people with disabilities Auckland 2019 2019 - This is the vision that is coming out from the workshop 5 / WASTE on Diversity organized during the last Quality Forum Another important point, from the workshop, is the at the end of May. We had 25 attendees from 15 clear awareness to be part of an international group ZEALAND 6 / WATER Guala Closures plants and 12 different countries and the need to cultivate multiculturalism as a strength carbon dioxide contributors along the supply chain and in order to grow together. represented. The workshop was led by our consultants and one for the Group. 7 / RAW MATERIALS on Sustainability, Sophie Poiri and Emmanuel Lindon. Looking at the outputs of the workshop, the Guala Closure House of Diversity (see picture) has been ON SUSTAINABILITY defined. A roadmap on Diversity has been presented 8 / HEALTH & SAFETY to all the Country directors attending the Extended Comex (Spinetta, July 17th-18th).      9 / DIVERSITY production process. POLAND Wloclawek The next steps will be the updating of Guala Closures’ PRODUCTION EFFICIENCY Ethical and Social policy and the definition and issuing 10 / of a Guala Closures Diversity Charter to be signed by all Country directors. 11 / CUSTOMER SATISFACTION Guala Closures values its Human Resources division After this, each business unit will be asked to adapt the charter to local needs defining objectives and FOCUS ON CERTIFICATION SOUTH 12 / dedicated initiatives.     13 / TESTIMONY Website Cape Town - 13 / SUSTAINABILITY REPORT which has helped the company continue to grow, AFRICA improve and promote our sustainability initiative. By The Group’s website offers an extensive amount of Jerez de la SPAIN     - Newsletters information, ranging from products to markets, as well Frontera informing, motivating and involving our employees, as policies, the Group’s Code of Ethics and information SPAIN Olèrdola     - Human Resources has encouraged their participation in the Group’s sustainability strategy. This has been a key on sustainability. Company contact information also is UKRAINE Sumy   2019  - factor in achieving Guala Closures’ objectives which are included (www.gualaclosures.com). Bridge Your opinions and suggestions are of Allan, defined within the Sustainability Programme. On the other UK (UCP)    2019  Stirlingshire important. You can write us any time hand, the Group regularly informs the external stakeholders Social Media: YouTube / LinkedIn / Facebook (Stirling) at the following email: (customers, suppliers, …) about its commitment, actions Guala Closures uses social networks to publish informa- UK Kirkintilloch     - [email protected] and results. tion and film clips to publicize and illustrate its business. U.S.A. Fairfield  2019 2019  -

46_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _47 CSR VISION AND ACTION CSR VISION AND ACTION Our corporate CSR team Our corporate CSR team

THE GROUP IS NOW IN THE MIDDLE OF ITS 2016-2022 FILIPPO BERTONI, AMONG ALL THE 2019 MATTEO IACULLI, AMONG ALL THE 2019 CSR PROGRAM. WHAT DO YOU THINK ARE THE MAIN HIGHLIGHTS AND PROJECTS, WHAT ARE HIGHLIGHTS AND PROJECTS, WHAT ARE CHALLENGES FOR THE GROUP AND FOR YOUR CSR YOU MOST PROUD OF? YOU MOST PROUD OF? CORPORATE TEAM TO REACH THE OBJECTIVES? I am proud of the gradual shifting to energy I wouldn’t talk only about 2019 projects, In 2020, we are facing the unexpected experience of the from renewable sources such as the one but about the fact that nearly every plant Covid 19 worldwide. Faced with this crisis, our priority has we saw this year in Brazil. Our presence in in the Group integrated our Sustainability Maurizio Mittino been to preserve the absolute safety and health of our multiple countries gives us the opportunity Program. employees. From one point of view the difficulties coming to contribute on improving the well-being from the crisis will make it more difficult to achieve the of the places in which we operate while Sustainability and Continuous objectives. But there are some opportunities coming from taking care of the environment at the Improvement Director the need to be more supportive, more linked each other. same time. I am convinced that companies committed to sustainable development can be more resilient with the economic and financial crisis that we are all going to face. Guala Closures Group acts to succeed in the long term, and to create value AS HEAD OF THE CSR CORPORATE TEAM, WHAT ARE for shareholders, employees, customers, suppliers, the YOUR MISSIONS? WHO ARE THE MEMBERS OF YOUR environment and society. TEAM? Corporate Social Responsibility is not a bonus, it proves Ana Maria, Elena, and Matteo are the pillars of the Guala to be useful in this time of crisis. If we remember this Closures Sustainability team. and take care of the lesson learned, we could achieve the Filippo joined the team few months ago when Elena was goals in the same way. ELENA CARNIGLIA, AMONG ALL THE 2019 waiting for her baby to be born, and he has done a great HIGHLIGHTS AND PROJECTS, WHAT ARE job in a short time. MAURIZIO MITTINO, AMONG ALL THE 2019 HIGHLIGHTS YOU MOST PROUD OF? Our mission is to raise awareness towards Sustainability in AND PROJECTS, WHAT ARE YOU MOST PROUD OF? 2019 is the year in which we accelerated the Group and to support all the plants in the development I think we are understanding the values of sustainability on our Diversity and Inclusion Project. of all points of the Sustainability Programme. in their entirety and not only what is related to our pro- Being part of this program is a source of ANA MARIA AMPLE, AMONG ALL THE We give tools, methods, training, share best practices. We ductions. That is demonstrated by the numerous projects pride and it stimulates me to continue on 2019 HIGHLIGHTS AND PROJECTS, WHAT standardize the use of the KPIs to monitor the targets towards the local communities of our Business Units. this path. Beyond the Diversity theme, ARE YOU MOST PROUD OF? and we collect the results from each plant and … a lot of Another important point is the Diversity project. Now the we notice the awareness of being part of I am proud of the progressive growth of other things! preparation is finished and we are ready to start involving an international group with the desire to the use of recycled aluminum as a raw To achieve all this, the support of the sustainability refe- all our people. That will be the great challenge for the next cultivate this multiculturalism as a strength material that contributes to improve the rence of each plant is fundamental. couple of years. in order to grow all together. carbon footprint of our products.

48_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _49 CSR VISION AND ACTION CSR VISION AND ACTION 2016-2022 programme and indicators 2016-2022 programme and indicators

Through the “Working together for sustainable growth” programme, adopted in 2016, Guala Closures Group expresses its vision for the future. From the materiality assessment RESULTS RESULTS RESULTS RESULTS RESULTS INDICATOR OBJECTIVES UNITS FINAL RESULTS EXPECTED SDGs updated in 2019, we analyzed the relationship between our activity and the programme of the Sustainable Development Goals published by the United Nations. This analysis made 2015 2016 2017 2018 2019 it possible to put into perspective - with the sustainable development objectives defined by the UN - to which Guala Closures Group contributes through its activities and its CSR number of strategy, «Walking together for sustainable growth». THE AMBITIOUS SEVEN-YEAR AGENDA: 12 INDICATORS AND 21 TARGETS. HEALTH AND SAFETY Zero accidents - To reduce the accident accidents 9.04 7.75 10.4 7.4 7.7 2020: 4.5 Accident frequency and gravity frequency indicator / million RESULTS RESULTS RESULTS RESULTS RESULTS FINAL RESULTS worked hours INDICATOR OBJECTIVES UNITS SDGs 2015 2016 2017 2018 2019 EXPECTED 100% of employees with 2 hours of To reduce carbon dioxide equivalent emissions % - - 25 95 100  2018: 100% teqCO2/t FP / 2.19 2.16 1.98 2.00 2022: 1.64 teqCO2/t FP Sustainability Program training (Scopes 1 and 2) by 25% per tonne of finished product. TRAINING Type & quantity of training given CO2 EMISSIONS  2017: Certification To certify indirect CO2 emissions (Scope 3) / / / / To strengthen the development program Atmospheric emissions plants of GCG Scope 3 - - - - - 2020: To be defined for internal resources and CO2 equivalent 2020: Partnerships to reduce To develop partnership projects with suppliers to - - - - - the usage of raw materials reduce the usage of raw materials and transport 2020: Campaigns to and transport DIVERSITY To promote awareness campaigns to Diversity Diversity - - - facilitate the integra- To reduce energy consumption per finished Gender and cultural differences facilitate the integration of diverse groups survey workshop GJ/t FP 17.58 17.87 17.86 16.21 16.67 2022: 13.18 GJ/t FP tion of diverse groups ENERGY CONSUMPTION product (GJ/tonne FP) by 25% Consumption of all sources used 2020: Minimum 3 main BU To Facilitate the supply of renewable energy BU - - - - 1 as renewable energy pilot RESULTS RESULTS RESULTS RESULTS RESULTS INDICATOR OBJECTIVES UNITS FINAL RESULTS EXPECTED SDGs To reduce the waste generated per finished 2015 2016 2017 2018 2019 kg/t FP / / 272 236 252 2020: 218 kg/t FP product by 20% WASTE PRODUCTION EFFICIENCY To reduce hazardous waste with respect to total Overall Equipment Efficiency (OEE) > 85% % 73.8 76.5 77.1 77.7 79.3 2022: >85% Waste produced, type % / / 9.17 8.79 10.29 2020: <5% Efficiency of production systems and final destination waste produced <5%

Zero waste in the landfill (kg) % / / 11.55 12.56 12.21 2022: 0 kg >1% INNOVATION To develop at least 26 patentable ideas New patents - 3 6 15 18 2020: 26 patents Innovative capacity RAW MATERIALS To decrease the percentage of scrap <2% % 2.56 3 2.87 2.67 2.52 2022: <2% Raw materials, accessory, To increase the quantity of recycled and/or 2020: To have a minimum / /    auxiliary and packaging materials low environmental impact aluminum of 1 low impact supplier On Time In Full delivery (OTIF) > 95% % 83.9 86.5 86.6 88.9 89.7 2022: >95% WATER To reduce the water drawn per finished product m3/t FP 3.95 3.61 3.98 3.42 3.41 2020: 3.16 m3/t FP CUSTOMER SATISFACTION Water drawn (m3/t FP) by 20% All plants SEDEX accredited % - 78 100 90 83 2017: All plants Customer satisfaction ENVIRONMENTAL MANAGEMENT To obtain ISO 14001 certification for all Group plants Environmental management 3 4 8 13 19 2020: All plants certified Plants certified ISO 22000 for all Group plants Plants - 15 15 17 21 2020: All plants systems

50_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _51 CSR VISION AND ACTION CSR VISION AND ACTION Energy consumption CO2 emissions

The management of energy consumption is key to OUR COMMITMENTS Fight against climate change is one of the main OUR COMMITMENTS EMISSIONS SCOPE 1&2 (in gCO2eq/unit) meet our engagement on climate change and, at topics of the Guala Closures Group’s Sustainability 10.85 10.65 10.51 10.15 the same time, make production processes more programme. Our activities generate greenhouse gas -25% energy consumption -25 % CO2 emissions efficient. In most plants, electricity first and natural emissions and, therefore, contribute to climate change: on Scope 1 & 2 for each tonne of finished gas second are the energy resources most exploited Facilitate the supply of renewable energy • Direct emissions (Scope 1), deriving from plant and product, by 2022 (versus 2016 baseline) 2016 2017 2018 2019 used in production activities, and therefore having machinery owned or fully operated by the company, the greatest impact on consumption. such as thermal plants, machinery fuelled by diesel, Certification scope 3 OUR PROGRESS Obtain certification of the Group’s indirect Scope 1 tCO2eq Scope 2 tCO2eq Scope 3 tCO2eq The optimization of consumption plays a crucial cars in the company fleet. 2016 33,616 117,937 488,859 role in energy management. For these reasons, In 2019, the Group’s production increased by 8.4% in units of • Indirect emissions, deriving from the energy carbon dioxide emissions in 2017 (achieved) finished products and only 4.1% in weight of finished products. the Group focusses its efforts on identifying consumption of all plants from external supplies 2017 34,123 118,653 427,593 Even if energy consumption per ton of finished product increased Partnership projects 2018 33,615 126,552 463,138 the processes that have the greatest impact on by 2.8%, the energy consumption per unit reduced by 1.2%. We conserve energy to make the future better, (Scope 2) and from production inputs and services with suppliers to reduce the use of energy consumption and implementing specific purchased such as transport, etc. (Scope 3). 2019 37,120 130,519 456,261 These results show that ecodesign efforts allowed to generate cooler, and brighter. raw materials and transport in 2020 improvement measures. savings in natural resources and energy resources. Filippo Bertoni, Sustainability and Continuous OUR STRATEGY Improvement Specialist OUR AXES OF WORK OUR STRATEGY The energy mix changed with an increase in electrical energy of The Group is committed to reduce greenhouse gas 6.8%, a reduction in diesel consumption of 4% and a rise in the OUR PROGRESS Between 2016 and 2019, the Group reduced its GHG emission At Guala Closures Group, we intend to reduce our emissions captured by Scope 1 and 2, but in order nearly by 9%. In order to reach the final ojective of 25% of reduction, use of natural gas equal to 10.4% In 2019, the CO2 emission intensity (Scope 1&2) per tonne of to further expand its environmental responsibility, Guala Closures Group has set up a "Green CAPEX Group" that energy consumption by upgrading production ENERGY CONSUMPTION (in KJ/unit) finished products increased very slightly. In fact, Scope 1&2 CO2 The most important project in the energy field took place at we are also working with suppliers and partners to will support the Business Units in identifying and implementing machinery and systems, installing equipment Spinetta Marengo facility with the roll-out of a trigeneration emissions and finished products quantity increased respectively 87.505 88.084 reduce greenhouse gas emissions under Scope 3 as projects with a significant impact on reducing greenhouse gas with improved energy efficiency, innovating new plant which uses natural gas to supply electrical energy, heating 83.569 85.777 84.795 by 4.7% and 4.1%. far as possible. To meet our ambitious objectives, emissions. Project selection criteria include volume of greenhouse production processes, designing products which and refrigeration for cooling systems. If we look at the CO2 emissions per unit of product, GHG emis- we assess our carbon footprint along the entire sions have been reduced by 3.4%. This positive performance is gas emissions avoided, innovative character, financing and ROI. require less energy intensive manufacturing and In São Paulo, the plant is using 100% renewable energy since 2018. The greatest efforts and investments will be concentrated on also by experimenting with new raw materials. production chain. the result of 3 factors: high increase of units produced, constant efforts in ecodesign and an optimization of energy consumption. the Business Units with the highest impact on greenhouse gas The group, and all its BU’s implement an action plan emissions. We study all the opportunities for using renewable ENERGY CONSUMPTION (in GJ/t of finished product) Concerning the indirect emissions of Scope 3, they decreased in 2015 2016 2017 2018 2019 to mitigate the impact: energies according to local conditions. absolute terms by 2.1%. Guala Closures Group produced more A significant investment has been realized in November 2019 in 17.87 17.86 17.58 16.21 16.67 • directly at the production sites, by optimising closures using less raw materials, which lead to less transport Spinetta plant to adopt trigeneration process. The expected positive Several plants have already shifted to renewable 13.18 processes and investing in new equipment for and packaging materials consumption.* impact on emissions reduction will be measured as from 2020. energy and others will do the same soon. OUR AXES OF WORK facilities, taking into account energy consumption In addition to our commitment to reducing greenhouse gas and greenhouse gas emissions. emissions, we continue to implement an offsetting program for The Group signed an agreement with the Italian energy supplier EMISSIONS SCOPES 1&2 (in tCO2eq/t of finished product) to assess the use of electrical energy from renewable sources • indirectly, with members of the supply chain (raw our direct CO2 emissions by buying carbon credits and funding reforestation projects that actively involve local communities, in 2015 2016 2017 2018 2019 2022 in European plants. In particular, the Spanish factory in Olerdola materials, machinery, transport, customers and 2.19 2.16 1.98 2.00 1.64 countries where the Group operates. will receive electricity 100% from renewable sources from 2020. suppliers), by optimising loads and logistics. *Results have been certified following an audit by Bureau Veritas in February Perimeter: Scope 1&2: all plants except Belarus - Scope 3: all plants Perimeter: All plants except Belarus. 2016 2017 2018 2019 2022 2020 and included all Group facilities with the sole exception of Belarus, which except Belarus, UK/Bridge of Allan and East Africa partially included. became operative at the end of 2019.

52_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _53 CSR VISION AND ACTION CSR VISION AND ACTION Waste Raw materials

At Guala Closures, production plants generate OUR COMMITMENTS In the industrial sector in which Guala Closures OUR COMMITMENTS different types of waste: packaging waste (paper, Group operates, the use and consumption of raw 1 cardboard, plastic etc.); waste from the processing -20% waste production An important project “zero discharge for degreasing materials is undoubtedly one of the most decisive <2 % scrap of raw materials (about 10 different polymers, per tonne of finished product, by 2020 treatment” is being launched. It will have a significant factors in defining the products’ environmental in 2022 aluminum, ferrous materials, residues such as positive impact on the sustainability of the plant. footprint. The Group focuses its efforts on making <5% hazardous waste its products by combining a reduction of the en- 1 supplier wood shavings and cork, etc.); liquid waste (which, Marinella Vercellone, Magenta Plant Manager in any case, is mostly purified and, therefore, does over the total waste, by 2020 vironmental impact with customer expectations, minimum with low impact in 2020 not constitute discharge into the receiving water designing its closures in compliance with food bodies), and waste from plant activities (office ZERO waste to landfill safety standards and regulations. in 2022 LANDFILL (in%) OUR PROGRESS waste, green waste, domestic water, etc.). OUR STRATEGY 11,6 12,6 12,21 The entire industrial process, from raw materials to finished To reduce impacts on raw material usage, the Group closures, generates scraps. Semi-finished and finished products OUR STRATEGY OUR PROGRESS has adopted a strategy based on a three-pillar which are deemed non-compliant with the required characteristics Looking at the figures, the results related to hazardous waste The Group implements a waste management 0 eco-design approach: during production, process changes, adjustments and machine Managing sustainable materials is a win-win strategy: and landfill are not positive. The reason is that among the Group’s fine-tuning and quality control, are rejected. Scraps are also it improves our business while improving our world. system based on: plants, one, Magenta, is not producing closures but is transfor- 2017 2018 2019 2022 • minimise waste as much as possible; generated by complaints, laboratory tests and obsolete stocks. • Reduce both input and waste for a given ming aluminium and providing the lithography for a large part • minimise the amount of materials used in the Each facility is committed to minimising scraps and disposing Ana Maria Ample, Sustainability and of the plants. Its activities generate more hazardous waste and manufacture of each product, while ensuring of it in the most correct way. Continuous Improvement Specialist quantity of output ZOOM ON 2019 WASTE RESULTS more landfilled waste than the average of all the other plants. great performance; • Re-use material as inputs in its production In 2019, the Group’s average scrap reached 2.52%, that is to say Group’s results without Magenta • use alternative materials (e.g. recycled aluminium). activity Unbundling Magenta the trend results positive and emphasizes a reduction of 6% compared to 2018. OUR AXES OF WORK the priority to be given to actions and investment in Magenta. Magenta plant plant results • Recycle waste and scrap in order to exploit Hazardous waste (in %) 5.4% 41.2% The main raw materials used in production processes This result was achieved thanks to the deployment of training The Group, that uses mainly aluminum and plastics, aims to programmes, better control of the production, cameras, main- Landfill (in %) 7.3% 42.9% are aluminium and various types of plastics. In terms reduce scrap below 2%. But it faces to two different realities. it as new raw material QUANTITY OF WASTE (in kg/t of finished product) of recycling and reuse, these two raw materials tainance and machine efficiency. Plastics processes are already under the 2% of scrap and alu- • Create energy by incineration (external In 2019, we realised and disseminated to all plants a list of best differ in one important aspect: while aluminium can minum processes generate more. Particullar attention will be practice) 272 236 252 practice about waste prevention and treatment that collects and 218 be repeatedly recycled without losing its structural paid to the plants which produce aluminum closures. shares best practices and waste prevention methods that the SCRAP (in %) • Dispose waste in landfill when nothing and qualitative characteristics and the collection and In 2019, the percentage of recycled plastic used for the production is recoverable plants can follow to reduce their impact. recycling chain is active and effective, for plastics it is 2.56 3 2.87 2.67 of closures is almost zero. However, contacts and trials have 2017 2018 2019 2020 2.52 <2 not currently possible to use recycled material. This commenced, mainly for the production of PET bottles, one of OUR AXES OF WORK is largely due to the strict requirements governing the few plastic materials that has a dedicated recycling chain. HAZARDOUS WASTE (in%) As Magenta is a heavy waste generation contributor, an important An ecodesign process is implemented and includes weight suitability for food contact. In this respect, efforts are 2015 2016 2017 2018 2019 2022 project is being launched for the degreasing treatment making 10.29 focused on the continuous search for new suppliers reduction objectives. 9.17 8.8 it «Zero Discharge». The new purifier configuration, in addition <5 to the important reduction of hazardous waste, will allow the and new solutions. elimination of drains in the sewer treatment. The project is Perimeter: All plants except Belarus, Bridge of Allan, currently in a feasibility analysis phase and, if confirmed, will 1-Scrap: all semi-worked, semi-finished and finished products, which, during production, process changes, adjustments, fine-tuning of machinery and quality Perimeter: All plants except Belarus and East Africa. 2017 2018 2019 2020 East Africa and USA. be implemented between 2020 and 2021. control, are found not to comply with the required characteristics and rejected. Scrap also is generated by claims, laboratory testing and obsolete stock.

54_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _55 CSR VISION AND ACTION CSR VISION AND ACTION Water consumption Environmental Management

The use of water resources within the Group’s OUR COMMITMENTS The Group supports each plant in the development OUR COMMITMENTS production processes is limited. It is mostly related of the environmental management system, with to three industrial processes: -20% water drawn an approach focused on risk analysis and product 100% ISO 14001 certification life cycle assessment. In addition to meeting • cooling of plastic moulding presses per ton of finished product in 2020 (all Group’s plants certified in 2020) compliance requirements, each facility has to set (usually using a closed circuit); objectives and define an environmental performance • rubber cooling in the facility producing improvement plan. closures for the pharmaceutical sector; OUR PROGRESS OUR PROGRESS In 2019, Water consumption, per tonne of finished product, OUR STRATEGY The Group environmental policy applies to all plants, and each • degreasing of aluminium coils in the is practically unchanged from 2018, with a decrease of 0.4%. Plant General Manager is committed to complying with it, applying Guala Closures operates in accordance with a Magenta facility. and disseminating it by sharing it with their organization, setting Although in most plants the release of pollutants into the rigorous environmental policy, updated in April water is minimal, some of them have wastewater treatment concrete targets in accordance with the Group’s sustainability 2017, which applies to all its facilities. Similar to systems, where the quality and quantity of discharges are programme and implementing actions to achieve them. OUR STRATEGY constantly monitored, applying treatments to remove pol- the Group’s other policies, the environmental policy In 2019, there were no incidents of non-compliance with envi- As the Spinetta plant in Italy and the 4 plants in lutants and maintaining a level that does not cause negative is characterized by a commitment to sustainable ronmental laws and regulations. India represent 75% of the Group’s water consump- impacts and, in any case, within the levels set by the relevant development, fully observing ethical and social The plan to deploy environmental certifications continued. national regulations. values, product and occupational safety. tion, Guala Closures is paying a particular attention 6 new factories have been certified according to the ISO 14001: to them. Obtaining the ISO 14001:2015 environmental 2015 standard: 3 In its Sustainable Programme, efficient water WATER CONSUMPTION (in m /t of finished product) certification for all its facilities further confirms the - Sao Paulo (Brazil) - Bogota (Colombia) - Daman (India) resource management and progressive reduction Group’s commitment. The ISO14001 environmental - Auckland (New Zealand) - Sumy (Ukraine) - Fairfield (USA) 3.95 3.61 3.98 in water withdrawals are two of the 12 priorities 3.42 3.41 3.16 management system helps plants to assess, The group has now 19 out of 29 certified factories (65.5% of A certification system is a step to assure sustainability. Water is a precious commodity for all of us. for all facilities around the world. monitor, report and guarantee the environmental the Group). Roberto Boidi, Group Quality Assurance Saving it means saving our future. quality of products and processes. Maurizio Mittino - Sustainability and Continuous 2015 2016 2017 2018 2020 NUMBER OF PLANTS ISO 14001 CERTIFIED 2019 Improvement Director OUR AXES OF WORK 29 OUR AXES OF WORK In 2020 the first ISO 14001 certification covering all the plants belonging to the Group in 2018 expires. The reduction of water consumption is linked to people’s awar- The trigeneration plant in Spinetta is giving its first results. 19 eness. For this reason, we are working on sharing best practices Spinetta is one of the plants that consumes more water in the The new integrated contract, Quality and Environment, will be between plants. We are convinced that the most virtuous plants whole Group. So, we are witnessing a more than appreciable 13 extended to all the new plants, will start by the end of 2020 with in this topic, can push the whole Company to continuously im- improvement in the indicator. This is possible, because the 8 the certification renewal foreseen in the first quarter of 2021. prove our impact on water consumption. trigeneration system produces cooling energy for the plant. 3 4

Perimeter: All plants except Argentina, Autralia, Belarus and USA Perimeter: All plants. 2015 2016 2017 2018 2019 2020

56_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _57 CSR VISION AND ACTION CSR VISION AND ACTION Health and safety Training & continuous in the workplace improvement

Occupational safety, which has always been a key OUR COMMITMENTS For Guala Closures Group, success is linked to the OUR COMMITMENTS priority for Guala Closures, is used as one of the people who work in the Group, the development main performance indicators. -50% accident frequency of their skills, their professional growth and their 100% employees sustainability sharing of principles and objectives. In order to in 2020, while our final goal is to have zero aware and involved OUR STRATEGY enhance this link, the Group focuses, in particular, Since 2017, the occupational safety policy deve- injuries and work-related illnesses on the development of skills on issues such as: thanks to the 2 hours sustainability loped by Guala Closures is based on three pillars: • environment, learning module (achieved) • Our people: we want our employees to be in- OUR PROGRESS • hygiene and safety, volved in their personal safety. We ensure that In 2019, the accident frequency rate is stable compared to 2018 • technical skills, Learning is a process which is strictly connected to the means of communication are effective and OUR PROGRESS and represents a 15% reduction versus the 2015 score. • interpersonal skills. our lives. The more it involves us, the more effective guarantee that requirements and objectives In 2019, the objective to raise awareness and involve poeple in it becomes. Safety and wellbeing at work is a serious thing for our are met. We collect comments, complaints and ACCIDENT FREQUENCY the Group’s Sustainability Programme has been reached. 100% Francesca Frassanito from HR, suggestions for improvement. We provide em- (in number of accidents / million worked hours) workers and their families. OUR STRATEGY of our emoloyees have now benefited from 2 hours training in ployees with the know-how, means and tools to sustainability. Recruiting & Training Manager Guala Closures S.p.A. 10.4 Lorenzo Ferrarese, HSE Group Manager For this reason, each business unit has a specific keep working activities safe and we share good 9.04 The total number of training hours decreased by 23% on 2018, 7.75 7.4 7.7 training plan that facilitates the professional and practices between plants. personal growth of all their employees. The Group exclusively for technical training, while those dedicated to health 4.5 & safety remained unchanged. • Our products and processes: we always operate The Group started important activities in the Health & Safety also facilitates the engagement of employees and SUSTAINABILITY TRAINING MODULE DEPLOYMENT (in %) with a view to guaranteeing and improving occu- field to ensure the full implementation of the Group Policy: welcomes suggestions and ideas that are often 95 100 100 pational safety. We avoid potential risk situations 2015 2016 2017 2018 2019 2022 • the safety standards applied by the individual plants were important in developing and improving production TRAINING HOURS / MONTH and operate in compliance with the concept of analyzed to assess compliance with local laws and regulations processes. through an e-mail survey; CATEGORY 2017 2018 2019 25 continuous improvement of all activities. Because the CSR Roadmap 2016-2022 is ambitious, 0 0 Likewise, the gravity rate remains stable compared to 2018 and Managers 1.5 1.9 2.1 • Occupational safety and the environment: we are • internal audits were carried out at the Italian plants; the Group provided all employees with a special 2015 2016 2017 2018 2019 2022 it decreased by 66% compared to the 2016 baseline. White collars 1.8 2.7 2.0 committed to ensuring occupational safety and • a project dedicated to the Ukrainian plant was launched, taking two-hour training session dedicated to awareness respect for the environment by approving and into consideration not only compliance with regulations, but of its Sustainability Programme. Blue collars 2.3 4.4 3.0 GRAVITY INDEX also continuous improvement. complying with international, national and local (in number of days of accident absence over thousand working hours) Total 2.1 3.9 2.8 OUR AXES OF WORK Plant managers are always committed in safety issues and it laws and standards. Managers are mobilised In 2020, we will continue to prioritize training related to our health is still a priority for the awareness and training programme. daily to monitor the safety performance of all 0.88 0.91 NUMBER OF HOURS IN 2019 and safety policy and to deploy our training program. We also plan plants and systematically analize the causes of to raise awareness widely on the topics of diversity and inclusion HSE skills 18,319 any accident or near miss to ensure that it does 0.25 0.30 OUR AXES OF WORK which are major axes of our Corporate Social Responsibility. This is a way that we wish to develop more strongly. not happen again. Auditing and standards compliance activities will continue in Technical skills 126,765 2020, under the responsibility of the Group’s HSE manager, a Raising awareness of social responsibility will also be done in the 2016 2017 2018 2019 new figure in Guala Closures Group organisation. Operationl since communication media, such as the CSR report and Newsletters that Perimeter: All plants. Perimeter: All plants excepted Belarus. Soft skills 12,840 January 2020, he reports directly to the Group COO. facilitate the sharing of good practices from each business unit.

58_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _59 CSR VISION AND ACTION Diversity & inclusion

The Group operates through facilities and offices OUR COMMITMENTS The workshop culminated in the drafting of Guala Closures AGE • maintaining and bolstering the sense of belonging to the Group. in 23 countries around the world, dealing with cus- Group’s Diversity and inclusion Charter, that will be broadcasted 2019 AGE PYRAMID The goal for 2020 will be to share the Charter throughout all tomers in over 100 countries. There are at least 30 all around the Group in 2020. Business Unit and to set concrete objectives both at Group Valorise diversity From 30 to different nationalities in the Group and more than < 30 years old > 50 years old and individual business unit level, based on their own cultural Promote awareness campaigns to facilitate 50 years old 20 languages are spoken in the various facilities. GENDER characteristics. the integration of diverse groups, with specific 900 2,691 1,173 For all these reasons, the need to incorporate WOMEN IN THE TOTAL WORKFORCE (IN %) diversity of thought, gender and culture into the regard to gender, age and religious diversity 24 The age pyramid considerably differs from one plant to another. corporate decision-making process is essential 21 24 20 More than 30% of the personnel at the Indian factories (a peak for the Group to continue to grow and achieve its of 62% in Dharwad) is under 30 and less than 5% is over 50. The objectives in a multicultural world. OUR PROGRESS Mexican plant also has a high percentage of young people under Diversity is a cultural issue that varies from one country to 30, over 40%. 2016 2017 2018 2019 OUR STRATEGY another and cannot easily be addressed homogeneously, as More than 40% of the personnel of the French, Australian, Bridge Our ethical and social policy clearly refers to the revealed by an online survey conducted in each Business Unit. of Allan and the Italian and Spanish plants is over 50. Mentoring commitment: In 2019, CSR and HR corporate teams worked in collective In 2019, the percentage of women employed by the Group activities and the exchange of experiences between the various intelligence with the multicultural business teams, involving remained unchanged at 24%, while the percentage of women plants were adopted to both exploit the experience gained from “not to discriminate, ensuring equal opportunities 25 people representing 15 plants in order to: holding leadership positions increased from 15% in 2018 to age and offer opportunities to younger people. and treatment and to promote inclusion regardless of • discuss the meanings of Diversity 18% in 2019. religion, ethnicity, gender, political or spiritual beliefs, DISABILITY • gather local ideas and initiatives In 2019, the review of the ethical and social policy, the set-up With respect to disability, the Group is committed to developing age and disability …” • identify priorities and lay the foundations for a Group roadmap of the ethical and social committee and the expected rotation partnerships with associations operating in the field of disability • make the Group’s multiculturalism a strength. Guala Closures is committed to ensuring that each of Green Board members were heavily driven by need. and to mapping corporate roles, in accordance with the objective Business Unit, with its own cultural characteristics, of ensuring equal opportunities and treatment. fully implements the contents of the policy. In 2019, there were no discrimination incidents in the Group facilities. At corporate level, three priorities have been iden- A Sense of belonging is the heartbeat of Inclusion. tified, relating to Diversity, for which the Group is OUR AXES OF WORK Elena Carniglia, Sustainability and required to set objectives and concrete actions: Guala Closures is multicultural by nature and we are proud of Continuous Improvement Specialist Gender - Age - Disability. it. We want to ensure that the values of respect, tolerance, ethics and solidarity are shared and applied everywhere and by everyone in our Group. A Diversity and Inclusion Charter will define the three commit- ments to be developed in the 2020 - 2022 three-year period: Each one of us in our diversity is equal to the others. • ensuring equal opportunities and equal treatment Mauro Boano, Group Human Resources Director Perimeter: All plants. • strengthening the Groups’ multiculturalism and inclusiveness

60_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _61 CSR VISION AND ACTION CSR VISION AND ACTION Production efficiency Innovation

The efficiency of production processes is key to OUR COMMITMENTS Achieving customer satisfaction by exceeding OUR COMMITMENTS achieving customer and investor satisfaction. their expectations and proactively supporting their needs is one of the main priorities of the Group. The Guala Closures Group uses the OEE (Overall >85% OEE 26 new patents Therefore, innovation becomes one of the most Equipment Effectiveness) indicator to measure in 2022 by 2020 important ways to deliver value to customers the total efficiency of facilities. This indicator and improve products and processes. There are monitors production efficiency starting from the five Research and Development centers: in Italy individual machine or mould, to arrive at a complete OUR PROGRESS OUR PROGRESS (Spinetta Marengo), Luxembourg (Foetz), Mexico production line, the entire facility and, finally, the In 2019, the Group registered three new patents, which, in Facilities are monitored monthly using industrial indicators and (San José Iturbide), Ukraine (Sumy) and the UK entire Group. The Group has standardised the addition to the 15 registered between 2016 and 2018, brings figures are published in an internal report, which is the basis for (Kirkintilloch). These centers work in collaboration efficiency calculation methods in all facilities, the definition of action plans driven by continuous improvement. the total to 18. with all Group departments to support all facilities. considering all production losses due to testing, In addition to the patents of UCP (Bridge of Allan - UK) the In 2019, the performance improvements reached 79.3%, up by Guala Closures also develops exclusive projects, set-up, sampling, ordinary and extraordinary 1.6 percentage points on 2018 and 5.5 percentage points on Company acquired at the end of December 2018 and those with the aim of creating innovative solutions maintenance, cleaning, changes in machining the baseline of 2015, showing a positive trend. still in force, the new registrations bring the total to over 170 to enhance and protect the brands of its main operations, reworking, cycle losses, scraps and patents, utility models and designs. customers. non-compliant products. OEE SCORE (IN %) The Group has an intellectual property protection NUMBER OF NEW PATENTS (2016-2020 period) The ability to develop sustainable products will increa- >85 (IP) service both to protect its products and to OUR STRATEGY 73.8 76.5 77.1 77.7 79.3 26 singly be the most important competitive advantage defend its customers’ brands. Main improvements usually come from ongoing for our Group. 18 actions related to training and maintenance 15 Fulvio Bosano, 2015 2016 2017 2018 2019 2022 OUR STRATEGY efficiency. Improving efficiency is not only a risk-reduction strategy, Group Product Research and Innovation Director. To achieve the goal of 26 new patentable ideas, 9 it’s a profitability strategy. our teams concentrate their research guided by 3 Matteo Iaculli, 3 main aims: OUR AXES OF WORK Sustainability and Continuous Improvement Manager. • Continue developing partnerships with customers 2016 2017 2018 2019 2020 This OEE indicator has been steadily increasing and the objective to generate new solutions is to keep the mobilization of all the Business Units unchanged. • Anticipate regulations There are two ways to achieve efficiency improvements: on one OUR AXES OF WORK Innovation teams are focused on 2 major areas: hand have plants oriented to machine replacement, on the other • Fight against counterfeiting To continue to bring innovation to the markets, the Group has • Connected Closures that meet strong expectations from the one focus on continuous improvement plans. On this last point, consolidated the new organisation of innovation teams, with market and consumers. it is important to focus training and people involvement, as it three different areas and approaches: the “customer requests” • eco-design projects which develop products that consume has been pointed as a good lever of efficiency. team, the “widening and strengthening markets” team and the fewer resources, that are more recyclable and that use new Perimeter: All products plants except France, USA, Ukraine, Chile, “thinking outside the box” team. less impacting materials from an environmental point of view. UK/Bridge of Allan, Belarus, East Africa Perimeter: The whole group.

62_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _63 CSR VISION AND ACTION Customer satisfaction

Customer satisfaction, as represented by the OUR COMMITMENTS SEDEX ACCREDITATION (IN % OF PLANTS) Corporate Responsibility, is based on a number 100 of fundamental pillars: 100% ISO 22000 78 90 86 • the systematic innovation of products and certification of all plants by 2020 processes; 2016 2017 2018 2019 • guarantees for consumers’ health and safety; 100% SEDEX • a punctual, effective and high-quality level of All plants SEDEX accredited At the end of 2019, 25 sites were included in SEDEX platform service; (86% of the plants, one less than in 2018 as Alcalà plant in Spain OTIF score > 95% closed in july 2019). Furthermore, throughout the year, SMETA • trademark protection and confidentiality of by 2022 audits were carried out in 5 plants. relationships. OTIF SCORE (IN %) OUR STRATEGY The ethics of relationships is another important OUR PROGRESS 83.9 86.5 86.6 88.9 89.7 >95 aspect for customer satisfaction. In order to offer At the end of 2019, 21 sites were ISO 22000 certified (76% of objective guarantees of compliance with occu- facilities). pational, health and safety, environmental and The remaining facilities are continuously monitored by the 2015 2016 2017 2018 2019 2022 ethics standards, the Guala Closures Group has Group’s Quality assurance department, which also deals with joined the SEDEX (social ethical data exchange) regulatory updates and information relating to food safety alerts. In 2019, the indicator points to 89.7% compared to 88.9% in In addition, by checking product suitability through third party 2018, improving by 0,8 percentage points. platform with the aim of keeping information laboratories, each facility can issue statements of compliance on all facilities updated, making it transparent for the products supplied. to customers and having its facilities subject to OUR AXES OF WORK In 2019, there were no incidents relating to product and service The Group will continue to exploit the geographical distribution SMETA audits by third parties. information. of its facilities and the production lines of the various models to The level of customer service must be punctual and ensure continuity of service to customers and thus eliminating effective, as well as high quality. This requirement is NUMBER OF PLANTS ISO 22000 CERTIFIED the potential risk of service disruption due to catastrophic events, measured by the OTIF indicator which considers the 29 as well as interruptions in the supply of utilities and malfunction. percentage of deliveries made On Time and In Full, 21 Thanks to a good level of dialogue with customers, continuity plans 17 compared to the total number of shipments made. 15 15 are agreed with the majority of them that include production in alternative facilities or the identification of backup warehouses. In 2020, the certification programme provides ISO 22000 cer- Perimeter: For ISO 22000 and Sedex certifications, all plants. 2016 2017 2018 2019 2020 tification for 6 additional plants and SEDEX member sites are For OTIF score, all plants except Santiago (Chile), Dharwad (India), Bridge of Allan (UK) and Nairobi (Kenya). expected to increase to 29.

64_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _65 LOCAL ENGAGEMENT Company history

LOCAL ENGAGEMENT

66_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _67 LOCAL ENGAGEMENT LOCAL ENGAGEMENT Committed to local communities Committed to local communities

COMMUNITY INVOLVEMENT AND COMMU- PLAY A ROLE IN YOUTH EDUCATION • Guala Closures India has been involved in the development SUPPORT CULTURAL HERITAGE INVOLVE TO DEVELOP COMMUNITIES of schools in the country for a long time. This year, the NITY DEVELOPMENT ARE BOTH INTEGRAL • For many years, in Italy, Guala Closures Spa has been In collaboration with the Italian conservator agency Opificio Guala Closures cultivates the value of solidarity on a daily collaborating with the ITIS «Alessandro Volta» in Ales- Business Unit took part in the construction of a new Delle Pietre Dure Firenze, Guala Closures India arranged basis in the way of leading its activities, but also in the PARTS OF GUALA CLOSURES’ SUSTAINABLE sandria, a prestigious school in the area which represents classroom which will be used for teaching purposes. It and contributed to the funding for the restoration of the way it relates with communities around it. also has provided 6 desktop computers with UPS and a DEVELOPMENT. one of the main training agencies in this province. In 2019, Tomb of St Francis Xavier, a Spanish saint. This year, several Business Units’ initiatives emerged to a donation was made to expand the instrumentation printer in another school to help students in their studies. IN THE COUNTRIES IN WHICH THE GROUP His body is on display at the Basilica of Bom Jesus, a support and help local communities. Guala Closures India of the organic chemistry and instrumental chemistry • Guala Closures Chile is committed to promote environ- Roman Catholic basilica located in Old Goa which is part provided equipment to enable children to play freely in the OPERATES, WE ENGAGE PEOPLE FROM LOCAL laboratories of the school. That allows students to carry mental values on children. They participated in 2 diffe- of the Churches and convents of Goa UNESCO World local village. Guala Closures UK and Guala Closures Chile out experiments and exercises, thereby increasing their rent programmes to encourage children to develop an Heritage Site. were invested in charitable organisations to help people COMMUNITIES IN ACTIVITIES DESIGNED TO practical skills, in order to promote scientific research environmental conservation awareness. One programme The restoration work began in March 2019 with the in precarious situations. UK employees assisted homeless IMPROVE THE QUALITY OF LIFE AND STAN- starting from high school. This initiative forms part of concerns reforestation and the other one concerns restoration of the Bronze Panels. The project will continue people by providing them with food and clothing over the the partnership between organizations. recycling culture and taking care of nature. DARD OF LIVING. THIS HAPPENS THROUGH in 2020. Guala Closures is proud to support associations winter months. They also organized different actions to support the local food bank to fight against hunger. OUR NUMEROUS INITIATIVES THAT ARE that promote local heritage conservation. Guala Closures Chile employees assisted a local foreign TARGETED AT DIFFERENT BENEFICIARIES refugee institution in collaboration with the Municipality ALL OVER THE WORLD. by providing food assistance. PEOPLE FROM OUR PLANTS ARE PERSONALLY COMMITTED IN THESE INITIATIVES AND ARE SPURRED TO TAKE CARE OF OTHERS.

68_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _69 LOCAL ENGAGEMENT LOCAL ENGAGEMENT Invest in local projects Invest in local projects Besides our commitment towards reducing car- From 2011 to 2019, around 200,000 tonnes of bon dioxide emissions, Guala Closures funds carbon dioxide have been compensated through reforestation projects and is gradually shifting to reforestation projects or the purchase of carbon energy from renewable sources. Concerning the credits. These projects have been developed with Reforestation Programme, we focus in supporting influential partners and controlled by certified developing countries where the Group operates international independent agencies. At the end of (India, Colombia, Mexico) and actively involve 2019, we had planted over 310,000 trees, offset- local communities who get social and economic ting more than 50,000 tonnes of carbon dioxide benefits from our programmes. We also involve Trees Credits Tonnes of Partners Certification and got more than 6,000 people involved in the Trees Credits* Tonnes of Partners Certification the employees of our local subsidiaries . planted Voluntary Carbon Unit Credit CO2 offset various projects (Peru, India, Colombia and Mexico). planted Voluntary Carbon Unit Credit CO2 offset

2011 COSTA RICA 2016 COLOMBIA, INDIA AND BRAZIL FOUNDATION A reforestation project was implemented in Co-funding by purchasing carbon credits – VCS 13,000 1,310 GOOD PLANET 65,000 Manuel Antonio National Park, involving and - from a project in Brazil and the second year of trees planted tonnes of CO2 offset (NGO) 50,000 In Colombia 29,000 38,750 enhancing awareness of the local community. the Reforestation Project in Colombia (2015- VCU tonnes of CO2 offset 2017) along with a reforestation Programme 15,000 in India in India funded by Guala Closures India. 2012 PERU We promoted a project addressing the BIODIVERSITÉ 2017 COLOMBIA, INDIA AND BRAZIL preservation and protection of the tropical 30,000 6,000 AMAZONIENNE Co-funding by purchasing carbon credits - rainforests by planting and allowing the local 60,000 trees planted tonnes of CO2 offset (NGO) VCS -, and the last year of the Reforestation 29,000 36,500 community to cultivate autochthonous vegetables 50,000 In Colombia Project in Colombia (2015- 2017) along with VCU tonnes of CO2 offset which can survive the frequent monsoons. a reforestation Programme in India funded by 10,000 in India Guala Closures India 2013-2014 INDIA Participation in a reforestation project with an 2018 MEXICO, INDIA AND URUGUAY 46,000 Co-funding by purchasing carbon credits - VCS - initiative to educate on environmental awareness 80,000 26,000 tonnes of CO offset 45,000 VCU 2 (NGO) the starting phase of Reforestation Project in Mexico 25,000 30,250 «My class, my forest» at the Takshila in Gaya and trees planted 20,000 in 2013 and 35,000 in Mexico in 2013 in 2014 (2018-2020) and a reforestation Programme in VCU tonnes of CO2 offset Co-funding by purshasing carbon credits -VCS- from 26,000 in 2014 10,000 in India a wind energy production project India funded by Guala Closures India 2019 MEXICO, INDIA AND UKRAINE 2015 COLOMBIA AND BRAZIL Co-funding by purchasing carbon credits - VCS 45,550 Co-funding by purchasing carbon credits - VCS - 10,000 21,000 22,500 - from a «No till farming project» in Ukraine and 35,550 in Mexico 25,000 30,250 from a project in Brazil and the starting phase of VCU tonnes of CO2 offset trees planted VCU tonnes of CO2 offset the continuation of reforestation projects in 10,000 in India a Reforestation Project in Colombia (2015-2017). Mexico (Yucatan) and India (Gujarat)

70_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _71 LOCAL ENGAGEMENT Agroforestry project in Yucatan

TRIPLE BOTTOM LINE PROJECT FOCUS ON 2019 (PLANET, PEOPLE, PROFIT) In accordance with our objective of planting 100,000 trees Guala Closures Group is committed since 2018 in a 3 years in three years, 35,550 trees were planted in 2019. These

programme with Up2green Reforestation, a French NGO trees have the potential to absorb 5000 tonnes of CO2. for the preservation of forests and ecosystems in the In parallel, “My class, my forest”, the educational programme state of Yucatan in Mexico. realized in 2016 in some Indian schools has been imple- This project follows another one completed 2 years ago in mented in the schools of San Jose de Iturbide frequented by MEXICO the Colombian Andes. This long-term commitment with the the children of Guala Closures Mexico employees. The aim Group is crucial in a global context of accelerated disappea- of this programme is to inform and sensitise all students rance of forests and biodiversity. This is particularly true with educational and recreational strategies in favour 5,000 tonnes of CO2 offset in 2019 in the Yucatan Peninsula, which is a biodiversity hotspot of the preservation of the environment. Each student is where Mayan communities live in precarious conditions. invited to express his/her creativity by drawing a tree. https://mexico.miclasemibosque.org BENEFITS FOR LOCAL COMMUNITIES 35,550 trees The reforestation project aims to protect and preserve planted in 2019 biodiversity. Only Mexican and Central/Tropical Ameri- can species are selected for planting. In particular, all timber, honey and palm tree species are native to this region. Planting native species makes ecosystems more 3,800 students resilient and capable of adapting to climate change, trained in San Jose de Iturbide and also supports the traditional use of plants for local in 2019 communities. In addition to protecting Yucatan forests, the programme also aims to contribute to the food autonomy of Mayan Benefits for biodiversity, communities and to diversifying and improving their and local eco-systems agricultural production. By transmitting agroforestry me- thods to them, NGO staff raises awareness of sustainable agriculture, which reduces the use of chemical inputs and preserves the soil and biodiversity. Project coordination The main issue is to help indigenous communities to be Up2green Reforestation and aware about the importance of preserving or restoring local support of NGOs their ecosystems and help them to take ownership of the program.

72_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _73 LOCAL ENGAGEMENT Plantations project in Gujarat

TRIPLE BOTTOM LINE PROJECT In August 2019, Up2green Reforestation staff visited the (PLANET, PEOPLE, PROFIT) plantations, which strengthened the relationship with Guala Closures India and Up2green Reforestation have Vikalp, shared knowledge and improved the quality of been working since 2016 with Vikalp, an Indian NGO that the programme and its social and environmental impacts. develops social and environmental programs with tribal communities in the state of Gujarat. Guala Closures and its partners are convinced that environmental education INDIA is a key point to develop a more sustainable world. That’s why the collaboration with Vikalp began with the project «From the schools to the fields» through which 15,000 15,080 students students received sessions on forest conservation. At participated in “My class, my forest” the same time, Guala Closures supported the plantation educational project in Goa and of 15,000 trees in the Tapi district in collaboration with Amhedabad schools in 2016-2017 Vikalp. Since 2017, 10,000 trees have been planted every year in Gujurat State.

BENEFITS FOR VILLAGERS 45,000 trees The reforestation project supports and trains rural planted in Gujarat State communities. The beneficiary families plant the trees on their land so it gives villagers the opportunity to cultivate from 2016 to 2019 their own fruits and to diversify their food. The most popular species are mango (15,724 mango trees planted since 2016) and teak, both of which are native and easily adapted. Guava and almond trees are also very popular Benefits for biodiversity, because they grow quickly, which allows the beneficiaries and local communities to see the results of their work more quickly and thus to motivate them.

FOCUS ON 2019 Project coordination In 2019, 10,000 trees were planted in Dang, another Up2green Reforestation and district of Gujarat state. Our partners of Vikalp have thus a local NGO Vikalp completed some social program related to nutrition awareness, tribal rights and education.

74_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _75 Colombia Guala Closures de Colombia Ltda WORLDWIDE PLANTS OVERVIEW

Argentina...... 78 Kenya...... 90 Australia...... 79 Mexico...... 91 Brazil...... 80 New Zealand...... 92 Bulgaria...... 81 Poland...... 93 Chile...... 82 Spain...... 94 China...... 83 South Africa...... 96 Colombia...... 84 Ukraine...... 97 France...... 85 United Kingdom...... 98 India...... 86 United States of America...... 100 Italy...... 88

76_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _77 Argentina Australia Guala Closures Argentina S.A. Guala Closures Australia Pty Ltd

Indicators’ highlights Indicators’ highlights LOCATED IN CHIVILCOY, OUR PLANT IN ARGENTINA PRODUCTION EFFICIENCY OUR AUSTRALIAN BUSINESS, WHOLLY OWNED PRODUCES ROLL-ON CLOSURES FOR WINE. THE 28% reduction BY GUALA CLOSURES, CONSISTED FOR SOME Zero accident GUALA CLOSURES GROUP OWNS 98.38% OF THIS in accident frequency Our focus in 2019 was to improve production efficien- YEARS OF TWO PLANTS IN ACACIA RIDGE (CROWN BUSINESS. 4.3% reduction cy. We achieved the goal thanks to the modifications SEAL) AND BRAYBROOK (ROLL-ON CLOSURES). 9% reduction in GHG emissions on Scope 1&2 (kgCO2eq/tFP) on 2 important production lines. We replaced part of HOWEVER, THE ACACIA RIDGE LOCATION CLOSED in GHG emissions on Scope 1&2 (tCO2eq/tFP) an assembly line for 31,5 mm closures, with a faster IN JULY 2016 AND ITS PRODUCTION OPERATIONS knurling machine. Moreover, the design is more hy- WERE MOVED TO WEST FOOTSCRAY. 209 5,968 gienic and fits the customers’ demands. Benefits are 2 LIGHTS REPLACEMENT employees m notable in the improvement of knurling, productivity, and performance of the machine. We replaced our fluorescent lamps in the office 97 9,179 with LEDs. LED lamps consume 20% less than the REGIONAL DIRECTOR The second modification was on the line producing employees m2 José Luis Gutierrez 28 mm closures, improving the capacity to feed the fluorescent ones and are brighter. We reduced lighting assembly machine. Its works continuously, improving from 51 units to 44 units resulting in approximately COUNTRY DIRECTOR Carlos Zoppi, Plant Manager Natalia Bianchi, COUNTRY DIRECTOR 3k kWh saving per year. Quality Manager and the final quality by not accumulating covers with Daniel Damián García Tomasz Malarczyk Sustainability Representative problems in the middle and inspection center. “ Thinking sustainable, even by the smallest measures, CLOSURES “ Have a sustainable management CLOSURES can make an impact ” Roll-on for wines and spirits of the processes and achieve a balance Aluminium, Tinplate for wines, soft drinks, beers and spirits James Barrie, one of the key between the economic, social and members of Sustainability Team MAIN INTERNATIONAL CLIENTS environmental dimensions. ” Cartavio Rum Company, Campari Brazil, Pernod MAIN INTERNATIONAL CLIENTS Ricard Brazil, Diageo Brazil, CCU, Capel Diageo ENERGY EFFICIENCY MAIN LOCAL CLIENTS MAIN LOCAL CLIENTS Fratelli Branca, Campari Argentina, Pernod Vinpac, Casella, Treasury Wines, Accolade, We installed some control switches/relays to reduce Ricard Argentina, Cepas, Peñaflor Bertons, Yalumba, Taylors, Warburn and control energy consumption. We now have the ZERO WORK ability to turn each air conditioner on and off with ACCIDENT LOCAL PROFESSIONAL MEMBERSHIP LOCAL PROFESSIONAL MEMBERSHIP the added benefit of zoning. We estimate that we None None could save over 180 kWh saving a year (2% to 2.5% saving per year).

78_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _79 Brazil Bulgaria Guala Closures do Brasil Ltda Guala Closures Bulgaria A.D.

THE GROUP WHOLLY OWNS THE COMPANY. Indicators’ highlights THE COMPANY IS 70% OWNED BY THE GROUP. Indicators’ highlights THE PLANT IN SAO PAULO PRODUCES SAFETY “ Focus and simplicity in THE PLANT IN KAZANLAK PRODUCES SAFETY CLOSURES. 35% reduction contributions for sustainable CLOSURES. 20% reduction in accident frequency development, going beyond in total waste (kg/t FP) 54% increase legal requirements. ” Zero accident in training hours (per capita) Walber Pereira, Plant Manager “ Everything we do matters ” 75 6,800 250 6,500 Veronica Draganova, 2 100% OTIF Score employees m employees m2 Manufacturing Coordinator and (On Time In Full delivery) Sustainability Representative

REGIONAL DIRECTOR RENEWABLE SOURCES COUNTRY DIRECTOR José Luis Gutierrez REDUCING CO2 EMISSIONS ENERGY EFFICIENCY We are abating greenhouse gas emissions by Tancho Mihaylov HAZARDOUS COUNTRY DIRECTOR This year, we replaced some of our old forklifts by using energy from renewable sources. In 2018, we In 2019, the plant implemented a lighting replacement CLOSURES SCRAP WASTE Ivan De Nadai reduced 437,64 T CO2eq and it is estimated it will renting Electric forklifts. The new ones enabled us to : Safety for spirits project. We replaced 160 of our fluorescent lamps be approximately the same this year. The emissions with LED technology. The replacement will continue CLOSURES - reduce operating and maintenance costs avoided voluntarily are equivalent to planting 3063 MAIN INTERNATIONAL CLIENTS in 2020 and will enable us to reduce our energy Safety closures trees in a 30-year reforestation project. - improve health and safety for our employees Pernod Ricard, MEY, Rubin, Alcopack, consumption. thanks to a better work environment MALA, Ozmer, La Fantana, TOKK, MAIN INTERNATIONAL CLIENTS FOB DECOR, JAS Hennessy SUPPORTING VOCATIONAL EDUCATION Diageo, Pernod Ricard, Campari, Bacardi - reduce CO² emission ENERGY EFFICIENCY Martini, Capel, Cepas Argentinas, Dellepiane, - use electricity from renewable sources instead of GLP MAIN LOCAL CLIENTS In 2019, we continued participating in the dual Tres Leones, Fortin, Capasa To reduce our energy consumption, we set up a VP Brands International, SIS Industries education project, aimed to establish a sustainable Bulgarian system of professional training by ge- MAIN LOCAL CLIENTS minichiller in the production LOCAL PROFESSIONAL MEMBERSHIP Cia. Müller, Fante, Paratudo, Salton, Destillerie area. This machine substi- nerating a competent, knowledgeable and highly None Stock, Bacardi Martini Brasil, Diageo Brasil, tutes the cooling system qualified workforce, able to respond to the immediate Ypioca, Campari Brasil, Pernod Ricard Brasil GHG of an injection moulding needs of the labour market. Five students from the EMISSION machine. It guarantees «Ivan Hadzhienov» Vocational School - Kazanlak are LOCAL PROFESSIONAL MEMBERSHIP more efficient cooling by being prepared by our qualified mentors to become ABRABE (Brazilian Association of Beverages) reducing the cooling time professional Machine Technicians (CNC Machines). and consumes less energy.

80_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _81 GUALA CLOSURES CHILE STARTED Chile China ZERO PRODUCTION IN MAY 2018. WE WASTE TO BEGAN OUR ACTIVITIES AT THE END Guala Closures Chile Beijing Guala Closures Ltd LANDFILL OF 2015 AS A COMMERCIAL COMPANY IMPORTING CAPS FROM OTHER GUALA CLOSURES PLANTS, AND SELLING THEM TO THE DOMESTIC CHILEAN MARKET. AT THE END OF 2017, BY Indicators’ highlights Indicators’ highlights ACQUISITION OF A COMPETITOR, WE THE BEIJING PLANT PRODUCES SAFETY CLOSURES. EMPLOYEES’ HEALTH STARTED OUR INDUSTRIAL ACTIVITIES. 55% reduction THE COMPANY IS A REGISTERED WFOE (WHOLLY Zero waste in energy consumption (G/tFP) FOREIGN OWNED ENTERPRISE). to landfill Regarding the Chinese Labour Law, the company has 71% reduction 86.2% OEE score to apply medical insurance for each employee which in GHG emissions on Scope 1&2 (tCO2eq/tFP) (Overall Equipment Efficiency) covers 70% of medical expenditures. We decided to 42 2,720 offer a supplementary medical insurance to cover 2 99.4% OTIF score employees m “ Teaching to look after 56 4,602 the remaining 30%. All BGC employees are fully employees m2 (On Time In Full delivery) the environment is teaching reimbursed for their medical expenses. to value life. ” REGIONAL DIRECTOR Cecilia Petrosini, José Luis Gutierrez CUSTOMER SATISFACTION Chile’s Sustainability Representative COUNTRY DIRECTOR ENERGY EFFICIENCY Giorgio Vinciguerra In 2019, we obtained the BRC (British Retail Consor- COUNTRY DIRECTOR “ As it should be in every looking We planned to replace our fluorescent and halogen tium) Certification for packaging and packaging ma- Rodrigo Gutierrez CLOSURES far away community, sustainability lamps with LEDs but our plant will be relocated to terials. The certification guarantees the Food Safety LOCAL COMMUNITIES Safety, Snap-on and TE for spirits and oil means the responsibility of every another place. We plan to use only LEDs in the new CLOSURES and Quality of our products. The objectives are to : individual and every act every day ” plant this year. This will help to reduce the plant’s Wine closures • Facilitate access to foreign markets Guala Closures Chile is involved in supporting local MAIN INTERNATIONAL CLIENTS Hong Ming, Plant Manager environmental footprint. • Improve relations with distributors communities’ development. In collaboration with the Diageo, Pernod Ricard, APU, MCS Heineken, MAIN INTERNATIONAL CLIENTS • Increase transparency Municipality and neighboring companies, we support Nestlé Bodega Garzón, PDC Vinos y Licores SAS, • Reinforce the confidence of our customers a local foreign refugee institution throughout the Karibbean Liquor Black River SAS, Viña Doña Paula • Control internal processes year by providing food. MAIN LOCAL CLIENTS Diaoyutai, Guchuan MAIN LOCAL CLIENTS AWARENESS PROJECTS FOR CHILDREN Compañía Pisquera de Chile and Viña San Pedro LOCAL PROFESSIONAL MEMBERSHIP Tarapacá (CCU Group), Viña Luis Felipe Edwards, Chinese Packaging Association Viña Undurraga, Viña Concha y Toro, Viña Santa We started a reforestation program with local public Rita, Viña Requingua, Viña Ventisquero, Vital SA school students to inspire awareness of the envi- ENERGY WATER CONSUMPTION CONSUMPTION ronmental conservation spirit. We also launched an LOCAL PROFESSIONAL MEMBERSHIP art contest to decorate the main wall of an institute None in order to foster environmental values on kids by promoting the recycling culture and care of nature.

82_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _83 Colombia France WATER CONSUMPTION Guala Closures de Colombia Ltda Guala Closures France

Indicators’ highlights Indicators’ highlights NEW PRODUCTION SITE Sustainability Team OUR PLANT IN BOGOTÁ PRODUCES SAFETY CLO- -60% reduction 89% reduction in water consumption (m3/tFP) in water consumption (m3/t FP) The year was marked by the change of production SURES, AND THE BUSINESS IS 93.2 % CONTROLLED “ The Planet in our mind, BY THE GROUP. site. The machines and part of the staff of the Saint 88.7 OEE score the Solution in our hands ” OUR OPERATION IN FRANCE CONSISTS OF A 22% reduction (Overall Equipment Efficiency) PLANT IN CHAMBRAY WHICH PRODUCES ROLL- in GHG emissions on Scope 2 (kgCO2eq/tFP) Remy Sur Avre (Dreux) production site have been ON CLOSURES AND A SALES OFFICE IN TOURS. transferred to Chambray. In the new plant, we are 100% OTIF score ENVIRONMENTAL MANAGEMENT zero accident working on increasing production and reducing waste. 74 3,865 (On Time In Full delivery) employees m2 AND ENERGY EFFICIENCY In 2019, we obtained the Environmental Excellence 31 5,500 employees m2 by the PREAD (Programa de Excelencia Ambiental REGIONAL DIRECTOR WATER SAVING Distrital) which supports companies to improve their José Luis Gutierrez environmental performance in Bogota. The program To comply with local environmental law regarding is focused on reducing the consumption of natural COUNTRY DIRECTOR COUNTRY DIRECTOR water quality parameters, the old refrigeration system Stéphane Gondange Lina María Ascencio resources and waste generation. for injection machines was changed to reduce water “ More with less ” To improve our saving energy, we replaced a dialog consumption and increase efficiency in the molding CLOSURES Stéphane Gondange, CLOSURES injector of a machine in the production department. area. Moreover, the discharged water is analyzed by Roll-on for wine Country Director Safety for spirits We reduced the production cycle by 1 second and an accredited laboratory to validate compliance with energy consumption by 40%. the 631/2015 resolution. MAIN INTERNATIONAL CLIENTS MAIN INTERNATIONAL CLIENTS Pernod Ricard, Monin SAV (Sociedad Agroindustrial del valle), ILSA MAIN LOCAL CLIENTS MAIN LOCAL CLIENTS LGCF, Castel, Vinadeis, Perrin FLA (Fabrica de Licores de Antioquia), ELC (Empresa de Licores de Cundinamarca), ILC LOCAL PROFESSIONAL MEMBERSHIP (Industria licorera de Caldas) OTIF OEE CETIE SCORE LOCAL PROFESSIONAL MEMBERSHIP Acoplásticos, CABA

84_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _85 India “ We are committed to improving the social, economic Guala Closures (India) Pvt Ltd and environmental well-being of our local communities ” Joseph Pereira, Operation Manager and Sustainability Representative

TOTAL REGIONAL DIRECTOR WASTE OUR BUSINESS IN INDIA CONSISTS OF FOUR David Stevenson SAFETY CLOSURE PLANTS, LOCATED IN GOA, DAMAN, AHMEDABAD AND DHARWAD COUNTRY DIRECTOR David Stevenson All plants AHMEDABAD CLOSURES Safety for spirits WATER SAVING ENERGY SUPPORTING LOCAL COMMUNITIES MAIN INTERNATIONAL CLIENTS CONSUMPTION 122 8,964 UDV Kenya, KWAL, Guinness Nigeria, employees m2 We have implemented a range of initiatives to reduce Pernod Ricard Nigeria, Uganda Breweries We are arranging the restoration of the Tomb of water consumption in our Indian plants : St Francis Xavier, a Spanish Jesuit Saint whose body • installed waterless urinals which save around D DAMAN MAIN LOCAL CLIENTS h an is kept for veneration at Bom Jesus Basilica in Old Goa. 25,000 liters of water per year arw m Alcobrew Distilleries India, Allied Blenders & ad and Da This is a multi-year project of important historical Distillers, Amrut Distilleries, Bacardi Martini • elevated the awareness of the importance of water significance. 95 India, Beam Suntory India, United Spirits saving amongst our personnel In 2019, a team of three teachers and five students 2,912 (Diageo), John Distilleries, Pernod Ricard India, employees m2 • conducted detailed sustainability awareness trai- COMMITTED WITH SCHOOLS from Italy worked in conjunction with Opificio delle Radico Khaitan, Tilaknagar India ning programs Pietre Dure of Florence on the restoration of the XVII Guala Closures India is involved in supporting DHARWAD LOCAL PROFESSIONAL MEMBERSHIP In 2019, we reduced our total water consumption century bronze casting created by Gian Battista Foggini. educational development in local schools : None by 15%. • we constructed a classroom for Adarsh Primary 122 3,081 School in Ahmedabad. This is a mixed school with 2 Indicators’ highlights employees m MORE EFFICIENT PRODUCTION 250 students aged 6 to 14 years. 21% reduction • we constructed two classrooms for St. John 3 GOA in water consumption (m /t FP) in Daman We achieved a 4% increase in OEE across our Indian of the Cross High School (Goa). The school has approximately 1,300 students. The new classrooms 50% reduction sites. This reflects our ongoing commitment to will be for computer and music classes. 246 17,153 of total waste (kg/tFP) in Darwad investing in training our personnel. In Ahmedabad, employees m2 we made important modifications to our stack mold • we have provided desktop computers with UPS zero accident operation, which reduced downtime thereby increa- and printing peripherals for Shri Ganesh Vidyalaya. in Ahmedabad sing output by more than 1 million pieces per month. The school has 164 students.

86_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _87 Italy GHG Guala Closures SpA

Indicators’ highlights GUALA CLOSURES SPA IS WHOLLY OWNED BY SUPPORT PRODUCTION (inter-company) THE GROUP, AND HAS THREE PLANTS: IN SPI- MAGENTA: Treatment and cutting of aluminium 9% reduction NETTA MARENGO, MAGENTA AND TERMOLI. IN coil sheets. Lithographic printing on aluminium in total waste (kg/t FP) in Termoli sheets and tinplates. ADDITION, GUALA CLOSURES SPA OWNS GUALA Zero accident CLOSURES PHARMA WHICH MANAGES A SINGLE CLOSURES in Termoli Paolo Furiani , Marinella Vercellone, Maurizio Ambrosino, PLANT IN VASTO THAT PRODUCES PACKAGING Sustainable Development Plant Manager in Magenta Sustainability SPINETTA: Safety and Roll-on for spirits and 13% reduction FOR MEDICINES. beverages Manager Spinetta Marengo Representative in scrap TERMOLI: Safety and Roll-on for spirits, wine, in Termoli SPINETTA MARENGO beverage and oil VASTO: ROPP, Flip Off Type, Ruber stopper, MANAGING DIRECTOR: Federico Donato pharmaceutical closures ENERGY EFFICIENCY 313 20,315 MAIN INTERNATIONAL CLIENTS 2 We installed a trigeneration system in Spinetta employees m SPINETTA: Diageo, Pernod Ricard, Bacardi, SUPPORTING SCHOOLS Brown-Forman, Nestlé Waters, Hennessy Marengo to produce energy internally (heating, TERMOLI TERMOLI: Bacardi, Deoleo, Brown Forman, Monini cooling and electricity). Throughout the year 2020, During the inauguration of the trigeneration system MANAGING DIRECTOR: Federico Donato VASTO: Fresenius Kabi, GSK, ACS DOBFAR, our gas and electricity supplier will calculate the at the Spinetta Marengo plant, we made a donation HEALTH AND ENERGY SAVING Recipharm, Sandoz, Diaco, Unither Liquid, savings produced by the Trigeneration system, to ITIS "Alessandro Volta", a prestigious school in “ Think sustainable: 66 6,250 Vetoquinol, Baxter Bieffe, Medochemie hoping reach 20%. Alessandria. The donation served to expand the After installing the line 28 (painting and printing be the change! ” employees m2 instrumentation of organic chemistry labs, allowing line) in Magenta, the plant faced some problems MAIN LOCAL CLIENTS students to carry out experiments and exercises. of smoke leakage with unpleasant smells, causing MAGENTA SPINETTA: San Pellegrino, Angelini Group, machine stops. In order to improve the well-being of MANAGING DIRECTOR: Fabrizio Venezia Smeraldina, San Benedetto, Norda, Ponti, Ramazzotti, Campari, Branca, Gancia, Caffo employees and the healthiness of the area, the post TERMOLI: Olii Italia, Fratelli Carli burner was replaced with a new Post Regenerative 77 9,000 MAGENTA: Intercompany plants, FTT, ICM Thermal Regeneration System with Recovery. 2 employees m VASTO: Biologici Italia, Fisiopharma, Bioindustria, It shows a higher efficiency as the new heat exchanger Intervet, Esseti, Sm Farmaceutici, Monico, permits to save natural gas. ZERO WORK VASTO Angelini, Damor, Salf ACCIDENT MANAGING DIRECTOR: Fabio Rastelli We also installed ventilation turrets between the LOCAL PROFESSIONAL MEMBERSHIP cutting and the degreasing department to improve CETIE, Instituto Italiano Imballagio, Proplast 48 4,500 the working environment, in particular the number 2 employees m of air changes, temperature and humidity.

88_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _89 Kenya Mexico Guala Closures East Africa Ltd Guala Closures Mexico S.A. de C.V.

Indicators’ highlights Indicators’ highlights OUR PLANT IN SAN JOSE ITURBIDE PRODUCES 7% reduction Zero accident SAFETY, ROLL-ON AND LUXURY CLOSURES. GUALA CLOSURES EAST AFRICA (GCEA) COM- in GHG emissions on Scope 3 (tCO2eq/tFP) MENCED OPERATION IN 2019, WITH A STATE-OF- THE BUSINESS IS WHOLLY OWNED BY THE GROUP. 37% reduction THE-ART FACTORY LOCATED IN NAIROBI, KENYA. in accident frequency (per million worked hours) Karen Torres & Roberto Velasquez, THE PLANT MANUFACTURES TAMPER-EVIDENT in charge of Sustainability projects NIPCAPS FOR THE KENYAN MARKET AND ALSO LOCAL PARTNERSHIP EXPORTS THROUGHOUT THE EAST AFRICAN GHG AND WASTE MANAGEMENT 457 26,754 2 “ Guala Closures Mexico’s commitment begins REGION. ENERGY SCOPE employees m WASTE MANAGEMENT with its people by investing in sustainability, 1&2 We work in collaboration with Gjenge Makers Ltd, a social enterprise founded in 2017 in Nairobi which Guala Closures is working on a new way to organize working on a better future for the society REGIONAL DIRECTOR builds paving bricks, which are eco-friendly consisting the waste that is sent to the sanitary landfills, trying and the environment. ” José Luis Gutierrez 4,170 m2 of 40% waste plastic (HDPE) and 60% aggregate to achieve «zero waste», for this reason we started (sand & soil). We work for a social initiative ‘Brick with the recollection of 80% of our organic waste for COUNTRY DIRECTOR the compost process. We are offering training on by Brick Campaign’ to supply the HDPE plastic Antonio Ramirez scrap generated in the manufacturing process. This environmental care to our employees. The internal REGIONAL DIRECTOR campaign is powered by Gjenge Makers with two comunication has been improved with new tools TRAINING David Stevenson CLOSURES other US Based Non-profit foundations – “The Red Plastic, Aluminium, Wooden and Premium Caps and the facilities reorganised with new rubbish bins. Empress Foundation “ & “ Hemera Foundation“. The COUNTRY DIRECTOR Sadanand S Hanagodimath goal is to pave the Mukuru Skills school with Gjenge’s MAIN INTERNATIONAL CLIENTS eco-friendly pavers. Bacardi, Campari, Beam Suntory, Brown CLOSURES Forman, Diageo, Brugal, Serralles, Pedro FIRE SAFETY Nip Cap with various types of decorations: Domecq Colombia UV Offset, Conventional & Hot Foil, etc. We worked on two projects to minimize the fire risk MAIN LOCAL CLIENTS in the plant and to improve health and safety: MAIN LOCAL CLIENTS Casa Cuervo, Patron Spirits, Cia Braga, Domecq, Pernod Ricard - installation of a unified alarm system that covers East African Breweries (Subsidiary of Diageo). Collaborator team - Gjenge Makers Ltd. all the areas with a high level of fire risk to alert in Kenya wine Ltd. (Subsidiary of Distell) “ Guala Closures East Africa (GCEA) LOCAL PROFESSIONAL MEMBERSHIP case of any fire outbreak truly stands to its name – GAMISAJI - maintenance works on the fire protection system Greener-Cleaner-Eco-friendly Africa. ” to ensure its efficiency in case of fire.

90_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _91 New Zealand Poland Guala Closures New Zealand Ltd Guala Closures DGS Poland S.A.

Indicators’ highlights OUR PLANT IN WLOCLAWEK PRODUCES SAFETY Indicators’ highlights OUR PLANT IN AUCKLAND MANUFACTURES AND ROLL-ON CLOSURES AND IS 70% OWNED “ Sustainable development - ALUMINIUM ROLL-ON CLOSURES FOR NEW 9 % reduction 44% reduction 3 BY THE GROUP. ZEALAND’S WINE INDUSTRY AND IS WHOLLY in water consumption (m /tFP) in accident frequency not a fashionable slogan OWNED BY THE GROUP. but a necessity ” 51% reduction in accident frequency 23% reduction (accidents/million worked hours) in scrap Krzysztof Grządziel, Country Director 637 30,390 50% reduction in absenteeism employees m2 44 4,619 PRODUCTION EFFICIENCY employees m2 ENERGY EFFICIENCY We implemented ASPROVA, a production planning WASTE MANAGEMENT COUNTRY DIRECTOR In our plant, we replaced 85% of our conventional bulbs system. The system creates production schedules at Krzysztof Grządziel with LEDs. We are still working on it, hoping to reach high speed, integrating multiple processes. Asprova COUNTRY DIRECTOR This year, we are working on 2 projects to reduce 100% LED lighting. We also set up a fan controlled improved the efficiency up to nearly 5%. Dave Campbell OEE our waste : SCORE CLOSURES air compressor to reduce energy consumption of Recycled shipper packaging. • Project 1: Safety and Roll-on for spirits, the plant. CLOSURES We replaced our current boxes with ones that can wine and beverages WASTE MANAGEMENT Roll-on for Wine be reused multiple times. This delivers commercial and sustainability benefits, and we are currently MAIN INTERNATIONAL CLIENTS We are working on a project called “Scrap Press”. We MAIN INTERNATIONAL CLIENTS scoping different quantity sizes. Diageo, Accolade, Viventions, Kingland, Pernod compress scraps to save space in the warehouse and Treasury Wines, Constellation Brands, Wines & Ricard, G-3, Stumbras, Latvijas Balzams, Kaiser, improve our logistic organisation. Estates, Kirin group • Project 2: Pallet transport. Encirc, Bacardi We worked on research and made trials on the use MAIN LOCAL CLIENTS of strengthened wooden pallets to allow multiple MAIN LOCAL CLIENTS Villa Maria, Giesen, Wine Works, Foley Family uses over current pallet duration. In the long term CEDEC, Wyborowa, Stock Polska, Herbapol Wines, Yealands the project could include the use of plastic pallets. Lublin, Wawrzyniak, Polmos Bielsko-Biała, Jantoń, Sobieski, Polmos Wrocław, Polmos LOCAL PROFESSIONAL MEMBERSHIP Siedlce Employers and Manufacturers Association, Auckland Chamber of Commerce New Zealand Mark Yovich, Vaibhav Sharma, LOCAL PROFESSIONAL MEMBERSHIP Wine Growers GCNZ Quality Manager GCNZ Environmental Officer None “ Act now for a sustainable future for all people ! ”

92_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _93 Spain Guala Closures Iberica S.A.

Indicators’ highlights “ Working to be the green - circular - ethical ENERGY EFFICIENCY ZERO WASTE IN THE DUMP WE HAVE TWO PLANTS IN SPAIN, AND ALL ARE change we want to see in the world “ 79% increase WHOLLY OWNED BY THE GROUP. WATER in training hours (per capita) in Jerez We changed our old compressor for a new more The Olerdola plant is willing to develop the zero waste TOTAL THE PLANTS INCLUDE OLERDOLA, PRODUCER CONSUMPTION 8% reduction powerful and efficient machine, which uses less im- objective through promoting a new culture, starting WASTE OF ROLL-ON CLOSURES; JEREZ, PRODUCER OF in scrap in Jerez pacting cooling gas (R-134a). It also improves working with the most common items for the workers: to SAFETY CLOSURES. conditions of our employees. We reduced electricity remove bottled water and single-use plastic cups. consumption by 6.6% and water consumption by 1% We purchased aluminum bottles for employees JEREZ in 2019. The electricity reduction is estimated at in Jerez COUNTRY DIRECTOR and a new water machine. We bought compostable 9.3% for 2020. Francisco Festa single-use cups and added the «no cup» option in coffee machines. We also plan to do a «reusable 39 5,200 CLOSURES cups» campaign to sensitize our staff regarding the employees m2 JEREZ: Safety closures zero waste program. OLERDOLA: Roll-on closures OLERDOLA MAIN INTERNATIONAL CLIENTS JEREZ: Diageo, Pernod Ricard, Branca Distillerie 106 5,000 employees m2 OLERDOLA: Nestlé Waters, SABMiller, Heineken, Coca-Cola Hellenic, Beam Suntory, Bodegas Fundador, Bacardí

MAIN LOCAL CLIENTS Sonia Elbal, JEREZ: Torres, DZ Licores, Bodegas Fundador, Supply Chain and Sustainability Bardinet, Arehucas Representative TRAINING OLERDOLA: Damm Group, Miguel Torres, Mahou, J.Garcia Carrion, Felix Solis

LOCAL PROFESSIONAL MEMBERSHIP in Jerez None

94_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _95 South Africa Ukraine Guala Closures South Africa Pty Ltd Guala Closures Ukraine LLC

OUR PLANT IN CAPE TOWN PRODUCES SAFETY, ALUMINIUM AND LUXURY CLOSURES, AND IS Indicators’ highlights Indicators’ highlights WHOLLY OWNED BY THE GROUP. ELECTRICIY REDUCTION PROJECT OUR PLANT IN SUMY PRODUCES SAFETY, ROLL- 29% reduction ON AND LUXURY CLOSURES, AND THE GROUP 26% reduction in water consumption (m3/t FP) To control our energy consumption, we installed 3 HAS A 70% OWNERSHIP STAKE IN THE BUSINESS. in water consumption (m3/tFP) 28% increase in training electricity monitoring meters in April to measure the 10% reduction SCRAP incoming electricity. These meters are connected to 181 12,000 (training hours/thousand worked hours) in GHG emissions on Scope 1&2 (tCO2eq/tFP) employees m2 our provider through a SIM card, ensuring real time 27% reduction 826 24,154 12% reduction data accessibility (30 min intervals). The 3 meters are 2 in GHG emissions on Scope 3 (tCO2eq/tFP) employees m in total waste (kg/tFP) consolidated to a virtual meter for our site. REGIONAL DIRECTOR This installation enabled us to optimise and save David Stevenson DUAL EDUCATION electricity and also control the peak demand. COUNTRY DIRECTOR Volodymyr Zayets WATER SAVING In 2019, we opened several technical disciplines at COUNTRY DIRECTOR the local educational institutions to prepare specia- Giuseppe Carosini We installed a special water treatment system CLOSURES lists for our production. The trainers are our leading used for injection moulds cooling to reduce water Safety, Roll-on and Luxury closures for spirits, specialists. We’ve arranged a production room model CLOSURES consumption and improve water quality. wine and beverages with equipment that is in line with the needs of our Safety and Roll-on for spirits, We want to improve water drains purification from the wine and beverage production process. During the training, students MAIN INTERNATIONAL CLIENTS remains of varnish in the production area. Moreover, can see how everything works, understand the re- S.P.I., ROUST, Bulbash, IDS Borjomi Georgia, we are working towards using water-dispersible lationship between what they are taught and what MAIN INTERNATIONAL CLIENTS Latvijas balzams, Ladoga SODEAM, Tanzania Distilleries, Distilleries varnishes instead of solvent ones for side decoration. they do. They can combine learning with hands-on Company Sri Lanka, East African Breweries experience and get a much better results. Limited, Malawi Distilleries MAIN LOCAL CLIENTS LVN Limited, National Vodka Company, Global Spirits (Khortytsa) MAIN LOCAL CLIENTS Distell, Diageo, South African Breweries, KWV, DGB, Aspen Pharmacare, Pioneer Foods, LOCAL PROFESSIONAL MEMBERSHIP None Overhex, Robertson Winery

LOCAL PROFESSIONAL MEMBERSHIP “ Contribution to the future generation Aluminium Federation of South Africa (AFSA) “ We live and work in harmony with nature ! ” is the guarantee of success Tumi Mompati, Sustainability Representative and sustainable development ”

96_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _97 United Kingdom Guala Closures UK Ltd

Indicators’ highlights Ashley Carroll, OEE AND WASTE MANAGEMENT SUPPORTING LOCAL COMMUNITIES ENVIRONMENTAL MANAGEMENT UK Technology Director 16% increase OUR PLANT IN KIRKINTILLOCH PRODUCES SAFETY, in training hours (per capita) in Kirkintilloch In the GC-UK we improved our spluttering machines During December, the GC-UCP employees carried out In GC-UCP plant, we repaired and replaced gates that ALUMINIUM AND LUXURY CLOSURES, AND IS 18% reduction by using HVLP spray technology which has increased a food drive to support a local food bank which was control water movement across the plant and replaced WHOLLY OWNED BY THE GROUP. IN ADDITION in energy consumption (GJ/tFP) production efficiency and reduced paint waste. well received. The company made a food contribution fractured sewer pipes to prevent pollution to the sur- TO ALUMINUM AND SECURITY CLOSURES, OUR We also worked on our Monaco line and the scrap as well to support employees’ involvement. rounding area. Emergency lighting was also installed PLANT IN BRIDGE OF ALLAN ALSO PRODUCES has been reduced to 0.4%. Moreover, we targeted At GC-UK, we have strengthened our partnership with ensuring the site meets the legislative standards. PET BOTTLES COUNTRY DIRECTOR the scrap created via testing which has yielded a Haven Products, a social enterprise providing sustai- Ken Moran 400kg drop in waste. nable employment and development opportunities KIRKINTILLOCH Other projects included a moulding improvement for the disabled people in the local community. The CLOSURES on Highland Park where we increased output and company has provided their inspection and rework Aluminium ROPP, Cork Stoppers, OEE by 20% services throughout the year EST Closures, Non-Refillable Closures, Gravitas 161 9,012 Prestige Stoppers employees m2 “ Guala Closures UK and Guala Closures UCP have a combined focus on sustainability MAIN INTERNATIONAL CLIENTS COMMITMENT TO SCHOOLS BRIDGE OF ALLAN Diageo, Baileys, Dewars/Bacardi, Accolade, Encirc, and it is core to our joint business ” Beam Suntory, Distell, Chivas, IDL, Edrington In GC-UK, we are still supporting local schools, par- ticularly Merkland who educate kids who require 321 19,881 MAIN LOCAL CLIENTS additional support. We support parents’ information employees m2 Loch Lomond, Campbell Meyer, Whyte & evenings and events to encourage local businesses Mackay, Broxburn Bottlers, Glen Turner, Angus to support the school. Dundee, Charterbrands, Glasgow Whisky Co, MacDuff, Benriach, Niche Drinks, The Old Bushmills, Grants, TJ Carolan, Admiral Ford/ Donohoe, Inverhouse, Greenalls, Bruichladdich, TRAINING Greencroft, Kingsland

LOCAL PROFESSIONAL MEMBERSHIP None George Norville, Energy & Environmental Manager

98_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _99 USA China Guala Closures North America Inc. Beijing Guala Closures Ltd

THE COMPANY IS WHOLLY OWNED BY THE GROUP. THE PLANT IN FAIRFIELD, CALIFORNIA, Indicators’ highlights PRODUCES ROLL-ON CLOSURES. 48% reduction in energy consumption (GJ/t FP)

14 1,600 0% hazardous waste employees m2 zero accident

100% OTIF score REGIONAL DIRECTOR (On Time In Full delivery) “ Act Responsible, Think Sustainable ! ” José Luis Gutierrez Randy Weller, Operation Manager and Jimmy Chanthapaseut, Production Supervisor COUNTRY DIRECTOR Simon Yudelevich WASTE MANAGEMENT We have put measures in place to improve the ma- LOCAL COMMUNITY CLOSURES nagement of waste in the dump : Roll-on for wine and spirits We are involved with supporting local causes. We 1. We put in place additional containers, properly have made donations to a special program called MAIN INTERNATIONAL CLIENTS labeled to collect the different type of waste. PAL which stands for Police Association League. Brown-Forman, Diageo, Bacardi, Beam Suntory, 2. We do periodical refresher training on proper The program is designed to help under privileged Pernod Ricard, Domain Chandon, Campari separate collection rules children in the local community to stay away from We plan to reduce the amount of waste generated drugs and violence. MAIN LOCAL CLIENTS Caymus, Copper Cane, Cork Supply, Delicato per finished product by 30% (kg / t FP). We work on Family Estates, The Wine Group, Trinchero additional machine controls to reduce scrap through Family Estates, Constellation, Heaven Hill, each machine stop and work with shell supplier to Sazerac, AO Wilson, Tricor Braun (Titos & Deep reduce cap ovalization. ENERGY Eddy), Berlin Packaging, Scott Laboratories CONSUMPTION GHG SCOPE 2 LOCAL PROFESSIONAL MEMBERSHIP None

100_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _101 ANNEXES

SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _103 ANNEXES ANNEXES Glossary Glossary

ACCIDENT FREQUENCY INDICATOR CORPORATE SOCIAL RESPONSIBILITY (CSR) GHG GRI (GLOBAL REPORTING INITIATIVE) OEE 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT The statistical frequency indicator represents the number This is a voluntary approach adopted by companies to pro- Greenhouse gases of both natural and man-made origin, An international nonprofit organisation that promotes A dynamic measurement that indicates the efficiency of Adopted by all United Nations Member States in 2015, it of accidents per milion working hours. perly manage the environmental and social impact of their responsible for the greenhouse effect, namely the fact the environmental, social and economic sustainability of a facility as a percentage. OEE is an acronym for Overall provides a shared blueprint for peace and prosperity for business activities. It may include monitoring emissions that the earth’s temperature is rising due to the failure organisations through a reporting schedule. Equipment Efficiency. people and the planet, now and into the future. of any solid, liquid or gaseous substance discharged into to disperse solar radiation. The main greenhouse gases ACCIDENT GRAVITY INDICATOR > SDG: SUSTAINABLE DEVELOPMENT GOALS: A collection of the atmosphere that may cause pollution. are: carbon dioxide (CO2), methane (CH4), nitrous oxide The statistical gravity indicator represents the number of days 17 goals set by the United Nations, at the heart of “Agenda (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC) IPCC INTERGOVERNMENTAL PANEL RENEWABLE ENERGY of absence due to accidents per thousand working hours. ON CLIMATE CHANGE A form of energy that is generated from sources that do not 2030”. They are a universal call to action to end poverty, DIVERSITY and sulphur hexafluoride (SF6). The GHG emissions are This is the scientific committee formed in 1988 by two UN compromise natural resources and regenerate continuously. protect the planet and ensure that all people enjoy peace Similarities and differences in terms of age, cultural back- reported as follows: bodies, the World Meteorological Organization (WMO) and It includes the electricity and heat generated by resources and prosperity. CARBON CREDIT ground, physical abilities and disabilities, ethnicity, religion, refers to Direct GHG and is defined as ’emissions the United Nations Environment Programme (UNEP) for such as the sun, the wind, biomasses, geothermic, bio A permit that allows a company to emit one tonne of gender and sexual orientation. > SCOPE 1 > GLOBAL COMPACT from sources that are owned or controlled by the organi- the purpose of studying global warming. fuels and hydrogen generated from renewable sources. CO2. The concept was established with the ratification of A United Nations initiative to encourage companies to align the Kyoto Protocol and credits may be exchanged on the sation‘. This typically includes all combustion from fossil strategies and operations with 10 universal principles (on ENVIRONMENTAL IMPACT fuels in heating, industrial applications, transportation and relevant markets. JOULE STAKEHOLDERS human rights, labour, environment and anti-corruption) Any change in the environment, whether negative or be- refrigerant systems. and take actions that advance societal goals. neficial, total or partial, resulting from business activities, The joule (J), is the unit of measurement for energy, work Parties internal or external to a company, with different CARBON FOOTPRINT products or services of an organisation. > SCOPE 2 refers to Energy Indirect GHG and is defined as and heat of the International System (IS). A gigajoule (GJ) interests and needs, who are able to influence or be in- fluenced by a company’s behaviour and to influence the Indicates the total quantity of CO2 emitted (directly or ’emissions from the consumption of purchased electricity, corresponds to 1 billion joules. indirectly) by an organisation, event or product during its steam, or other sources of energy (e.g. chilled water) ge- achievement of its objectives. The parties in question may entire life cycle (LCA approach) or part of it. It is usually ENVIRONMENTAL INDICATORS nerated upstream from the organisation‘. be customers, investors, economic partners, local commu- Qualitative and quantitative measurements that enable LCA (LIFE CYCLE ASSESSMENT) nities, public authorities, future generations, environmental expressed in tonnes of CO2 equivalent and represents a tool Is a method to assess energy consumption and the en- to manage, measure, assess, communicate and improve the most important impacts on the environment resulting > SCOPE 3 refers to Other Indirect GHG, and is defined as interest, employees, trade unions and suppliers. vironmental impact associated with a product/process/ environmental performance. from a company’s operations to be described. ’emissions that are a consequence of the operations of an organisation, but are not directly owned or controlled by activity over its entire life cycle, from the acquisition of the organisation‘. Scope 3 includes a number of different raw materials to the end of its life. WELL-BEING CERTIFICATION FINISHED PRODUCT (FP) sources of GHGs including employee commuting, business The state of feeling good, healthy and happy. There are Statement of conformity of an organisation to certain All material that leaves the plant, such as finished clo- travel, third-party distribution and logistics, production of different aspects that include: physical, economic, social, MANAGEMENT SYSTEM requirements, issued by an independent, accredited sures, semi-processed to be sold, raw sheet metal to be purchased goods, and emissions from the use of sold pro- psychological, life satisfaction and work. A management system encompasses organisational struc- external body. sold, lithographed sheets. When calculating the finished ducts. Based on data from companies that have conducted ture, responsibilities, practices, procedures, processes and product for the Group perimeter, products sold between comprehensive assessments of their Scope 3 emissions, it resources to enable an organisation to formulate a policy Guala Closures plants are not included in the calculation. is evident that Scope 3 GHGs are by far the largest compo- CO2 and set objectives for continuous improvement that may nent of most organisations’ carbon footprint, but it is where Carbon dioxide. It is a so-called greenhouse gas. CO2 equi- be measured over time. they experience the most challenging work to influence it. valent expresses the contribution of the various greenhouse FOSSIL FUELS Coal, oil and natural gas, today they represent almost all gases to global warming in terms of CO2, according to set conversion factors. of the world’s energy sources.

104_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _105 ANNEXES COMPANY OVERVIEW Please note: Company history focus 2019 highlights

In 2019, Guala Closures Group has edited a Non- Designed, produced and coordinated by: com2green (Ulysse) Financial Declaration within the GRI framework. Graphics: Doriane Denis Photos: Guala Closures Group / Printer: Cierre Grafica You can download it on: www.gualaclosures.com The 2019 Report was printed on Fedrigoni Arcoprint E.W., paper obtained with FSC® certified material and other The report integrates the whole CSR programme of controlled material. Guala Closures Group and its 29 plants across the Each year, we try to make this report world, which deploy the CSR roadmap “2016-2022” more transparent, efficient and and the 12 indicators at local level. comprehensible, and your opinion The report’s scope covers our entire activities in 23 and suggestions for improvement countries and 29 plants. Exceptions are marked directly are welcome. into the indicators’ pages if applicable. However, even if after all the care The reporting period for all data takes place from and attention put into the making January 1, 2019 to December 31, 2019. this publication any inaccuracies or imprecisions are found, we kindly ask that they be drawn to our attention by writing to: [email protected]

106_ 2019_SUSTAINABLE DEVELOPMENT ANNUAL REPORT SUSTAINABLE DEVELOPMENT ANNUAL REPORT_2019 _107 GUALA CLOSURES GROUP Italy / Group Holding Luxembourg / International Holding Netherlands / International Holding EUROPE Bulgaria / Kazanlak Belarus / Minsk France / Chambray • Tours Italy / Magenta • Spinetta Marengo • Termoli • Vasto Luxembourg / Foetz Poland / Wloclawek Spain / Jerez de la Frontera • Olerdola Ukraine / Sumy United Kingdom / Kirkintilloch • Bridge of Allan NORTH AMERICA Mexico / San José Iturbide USA : Fairfield (California) SOUTH AMERICA Argentina / Chivilcoy Brazil / São Paolo Chile / Santiago de Chile Colombia / Bogotá OCEANIA Australia / Melbourne New Zealand / Auckland ASIA China / Beijing India / Ahmedabad • Daman • Dharwad • Goa Japan / Tokyo AFRICA Kenya / Nairobi South Africa / Cape Town

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