ENVIRONMENTAL REPORT 2022

Environmental Report 2022

content Presentation Context Environmental Performance Circular Economy Upcoming Projects 2023

Frost-trol is a third generation family business with more than 60 years of experience in the sector. We are dedicated to the design, manufacture and marketing of flexible solutions in commercial refrigeration.

Presentation

Throughout all these years, we have grown in experience, technology, product quality and international presence, offering a wide and modern product range constantly updated.

We help our clients to enhance their business by improving the presentation of their products with cutting-edge designs, with environmentally sustainable and energy-efficient commercial refrigeration cabinets, with a great engineering team focused on satisfying the needs the customers transmit to us, putting in value their business.

We seek the aesthetic improvement of the supermarkets with attractive solutions (which improves the image of the product and the brand), practical (as they are cabinets designed to enhance merchandising at the point of sale) and safe (thus guaranteeing compliance with product temperatures for proper conservation).

With the philosophy of respect for the environment as a flag, we are committed to developing cabinets with a minimum environmental impact, working from the design to reduce the energy expenditure of our customers, use refrigeration gases that respect the environment and extend the useful life of our products, with possibilities even of a revaluation through a process of restyling in our facilities.

CONTEXT CURRENT

requirements

Frost-trol has been able to adapt to the current demands of the socio-economic context and market demands. The experience in the sector, the accumulated knowledge, the investment in infrastructure and the excellent human team that works every day for and for our clients have allowed us to overcome the difficulties and take advantage of the opportunities to advance in the leadership position in the commercial refrigeration sector.

experience

OF THE SOCIO-ECONOMIC CONTEXT AND MARKET DEMAND

WITH ACCUMULATED KNOWLEDGE

investment IN INFRASTRUCTURE AND HUMAN TEAM

opportunities EXPLOITED

leadership TO ADVANCE OUR POSITION IN THE SECTOR

COVID19, ENERGY COSTS AND SUPPLY CHAIN PROBLEMS During 2022, once the health crisis triggered by the pandemic caused by COVID-19 has been overcome, the increase in energy costs, transport problems and the difficulties of supplying basic components for manufacturing, as well as a decrease in the production ratio, make it difficult to improve environmental ratios. All the above constraints together with the growing demand for customization in the market, reductions in delivery times and cost reduction needs complicate the scenario.

INTERNATIONALIZATION The clear commitment to internationalization requires us to adapt to an increasingly demanding legal framework and work intensively on an optimization of logistics operations.

STRATEGIC PARTNERS OF OUR CLIENTS We continue to reinvent ourselves to overcome the challenges posed and help our customers to consolidate the image that transmits their behavior of respect and environmental care. That is why our engineering team works every detail so that our customers feel that, when they purchase Frost-trol's products, they obtain sustainable solutions of design, distinction, reliability, food safety, energy efficiency and service.

Environmental Performance Emissions Energy Waste Management Water

Carbon Footprint Certificate Frost-trol has a Carbon Footprint Certificate verified by an external entity and registered in the register of the Ministry of the Environment.

The emissions associated with the design and manufacturing process of the refrigerated cabinets marketed are calculated.

RATIO KG CO2 / CABINET MANUFACTURED*

-2 *Reduction of CO2 emissions in the manufacturing process compared to 2020

CO2 Emissions

ANNUAL EVOLUTION OF GHG EMISSIONS Year 2020: Calculation seal awarded by the Spanish Office of Climate Change. Verification by external company (SGS) according to ISO14064:2019.

CERTIFIED Year 2021: Calculation seal awarded by the Spanish Office of Climate Change. In the process of verification by external company (SGS) according to GHG Certificate. IN PROGRESS. Scheduled for: June 2023 Year 2022: Calculation seal awarded by the Spanish Office of Climate Change. In the process of verification by external company (SGS) according to GHG Certificate. IN PROGRESS. Scheduled for: June 2023 Year 2023: Seal of reduction awarded by the Spanish Office of Climate Change. Planned for: June 2024

Natural gas and electric energy The fundamental energy sources in Frost–trol are two, on the one hand, the natural gas that feeds the paint and foaming sections; and the electrical energy that supplies the rest of the factory. In economic cost, the contribution of electricity doubles that corresponding to natural gas, the first remaining stable and reducing the consumption of natural gas by 19.8%.

Energy

KWH RATIO / CABINET MANUFACTURED*

-22 *Reduction of natural gas used in the manufacturing process compared to 2020

Good Energy Practices o Implementation of LED technology. o Productive warehouses with translucent roofs that favor the entry of sunlight and minimize the use of artificial lighting. o Timed switches. o 100% electric lifting machines. o Optimization of drying temperatures in the pre-treatment of the parts to be painted.

The vast majority of raw materials and materials used in the production process are considered non-hazardous to the environment, being therefore a clean process in the environmental aspect.

The majority residue corresponds to the excess metal remains not used during the machining operation and that are recovered internally in the manufacture of other components or externally through authorized local managers. The waste associated with the packaging systems used (scraps of wood, paper, plastic, etc.) are also generated periodically.

Waste

In the paint section there are two booths that use powder paint (solvents are not used in any case). In addition, the paints used are harmless and therefore no hazardous waste is generated in this process.

As a novelty in 2022, the potential surplus of polyurethane foam generated in the injection section to generate the insulation in the structure of the refrigeration units has also been managed as nonhazardous waste, considerably reducing the impact caused by our waste.

50.000

Kilograms of hazardous waste managed (comparison 2020-2021)

40.000 30.000

3 2

20.000 10.000 0

4

1 2020

2021

2022

Ratio of Kg Hazardous Waste / Cabinets Manufactured (comparison 2020-2021)

0

2020

2021

2022

VALORIZATION OF WASTE

95

Valorization The philosophy implemented in Frost-trol always prioritizes the reduction of waste at source, that is, avoiding generating it through management in the design of products, processes and responsible purchasing activities.

The percentage of waste recovery in the years 2020 and 2021 was 89%. In 2022, the percentage of waste destined for recovery rises to 95%.

RESPONSIBLE PURCHASING

VALORIZATION

o Reduction of the use of fluorinated gases.

o Optimal use of the sheet metal.

o Reduction of the hazardousness of the materials used. o Deposit, return and return systems.

o Internal valuation of scraps. o Recovery of customer refrigeration cabinets (restyling). o Local waste managers (reduction of the impact of transport).

o Bulk materials or large capacity containers. o Promotion of local suppliers. o Maximum use and reduction of waste. o Non-hazardous powder coatings o Investment in clean technologies.

Good Waste Managment Practices

Water

In general, the production process does not require continuous water supply, there is simply a step prior to the painting of the pieces where there is a washing of the different metal references to be decorated. In any case, it is a closed circuit that does not require a continuous supply of water, simply the potential losses due to evaporation are replenished.

There are also no areas that require periodic irrigation. There is a contribution of mains water for the supply to changing rooms and toilets distributed by the different facilities.

o Timed pushbuttons on faucets. o Reuse of washing water from the surface treatment tunnel in paint section (closed circuit).

Good Water Practices

Circular economy One of the projects that generate greater pride in Frost-trol and that strengthen the search for circular economy is the repair and valorization service of refrigerated cabinet that has been in use and that require certain operations to put them back into operation in the supermarket and thus increase their useful life.

During the years 2020 and 2021, 5% of the cabinets supplied corresponded to reconditioned equipment from the customer and we provide them a second use.

In 2022, this percentage is reduced to 2%, due to the increase in sales internationally.

However, we can affirm that in the segment of customers with whom we work this reconditioning service if we have maintained our commitment to valorization by returning to supply 5% of cabinets to those who extend their life cycle.

Actions focused on minimizing environmental impact

1_Ecodesign

1 2 3

NATURAL REFRIGERANTS Use of ozone-friendly refrigerant gases with low global warming print (R290, R744)

QUALITY COMPONENTS Use of quality components to extend the cycle of life of our refrigeration cabinets.

STANDARDIZATION Standardize as much as possible, with the aim of allowing replacements or repairs of materials easily.

4 5

NON-HAZARDOUS SUBSTANCES Use of non-hazardous substances, improving recycling at the end of the life cycle

PRACTICAL DESIGN Practical design, feedback based on experience and potential incidents, preventing them and facilitating basic maintenance operations (reduction of time, materials and tools).

2_Reduce CALCULATION CARBON FOOTPRINT / CABINET Calculation of carbon footprint of individual refrigeration cases (product carbon footprint). Once calculated, actions can be assessed to minimize the impact of each unit separately.

LOCAL SUPPLIERS Local suppliers, with reduction of the associated transport impact (included in purchasing policy).

HIGHLY EFFICIENT COMPONENTS Use of low-consumption electrical components (LED technology, inverter systems...).

INSULATION OPTIMIZATION Optimization of thermal insulation (thicknesses, density, joints, fixings...).

PACKAGING MINIMIZATION Minimization of packaging, reducing the use of components with difficult management.

3_Reuse Valorization and recovery of cabinnets from customers.

Replacement of deteriorated components, providing a new life and minimizing the use of materials for the manufacture of new units.

4_Recycle Use of second-hand pallets.

Use of recycled cardboard packaging.

5_Recover Use of certain components of cabinets discarded by customer for new machines, providing a new use to materials destined to become waste.

Upcoming Projects NextYears

PHOTOVOLTAIC SOLAR INSTALLATION Commissioning of a photovoltaic solar installation, with the potential for savings in electricity consumption of 30%. Currently in the phase of study of offers from different suppliers.

ZERO WASTE CERTIFICATION Focused on the circular economy pursued by Frost-trol and that rewards organizations that prevent waste from being deposited in landfill, pursuing a valorization and therefore, a second use.

FREE FROST ENERGY TECH Highly efficient thermal accumulation system which will be included in Frost-trol's refrigeration cabinets. This innovative technology absorbs energy for the production of cold, from renewable sources, specifically solar energy, while transferring it at night.

Thus, this technology will allow autonomous operation of the refrigeration system keeping the temperature inside the cabinet stable to ensure the optimal conservation of food with a minimum noise level and reducing possible losses due to breakdown in the refrigeration system.