Catral Group: Sustainability Report 2023-2024

2023—2024

For a sustainable garden planet future

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Sustainability Report 2023-2024

Do you know why we have the slogan “For a Sustainable Garden” in our logo? Have you heard of our “Closing the Loop” strategy? Do you know how the Garden Score seal helps us to create more sustainable products? Have you participated in any of the activities of the Catral Grow project, designed to promote the personal and professional development of our entire team? Are you clear about the principles contained in our Code of Ethics?

If you already know the answers, congratulations! You are up to date with what’s going on in Catral Group. And if not, no problem, this is the perfect time to find out. ¡Hello!

Up for the challenge?

Whatever your starting point, this Sustainability Report is key to you. Here we show you how we are revolutionising our company and leading the shift towards a more sustainable garden, sharing our vision and the steps we are taking to achieve it.

But we don’t want to achieve this any old way. We want you to immerse yourself in this document in an interesting and entertaining way. That’s why we have added some activities that will allow you to explore these concepts in a more dynamic way. We invite you to join this revolution. Because this is only the beginning, and we still have a long way to go.

Let’s go!

What comes to mind when we say the word “sustainability”?

Your first thought is probably related to taking care of the environment. However, it is a much broader concept.

Sustainability Report 2023-2024

Mark the phrases that have to do with sustainability:

1. A just society, where all people are included and can grow and evolve regardless of their origin, culture, sexual orientation or spiritual beliefs.

2. Buy locally produced products, trying to ensure that small producers also gain from fair trade.

3. Consume what you need, avoiding waste and reducing waste generation.

4. Do not use single-use plastics such as disposable cups; rather, replace them with water bottles or coffee cups.

5. Recycle office paper and turn off lights in spaces that are not being used.

You’ve probably marked all of these because, indeed, all these actions are related to sustainability.

And this global concept is the basis of our “For a Sustainable Garden” project, with which we started a revolution to integrate sustainability as a fundamental pillar of our organisation, in all the departments and stages of our value chain.

A shared revolution

In 2015, the member states of the United Nations established 17 Sustainable Development Goals (SDGs) to be achieved by 2030.These goals guide us in caring for the planet, improving the quality of life and promoting fair and sustainable economic development.

Each objective focuses on one of the major challenges we face as a society. And, therefore, it also marks the objectives we have at Catral Group.

And at Catral Group we know that by contributing our business, products and resources to meet these challenges, we help to achieve these common goals.

Are you joining this revolution? Surely it was!

These are the 17 SDGs

Sustainability Report 2023-2024

The starting point for a more sustainable Catral Group

At Catral Group, we understand sustainability as a fundamental pillar of our business and a way of living responsibly with the environment.

That is why we have designed “For a sustainable Garden”, a cross-cutting, international sustainability strategy that defines our responsibility as a European manufacturer and our commitment to positively impact the community around us.

How?

We’ll explain some examples.

Optimising our products to have a lower environmental impact, selecting materials that are more environmentally friendly and improving our manufacturing processes to be more efficient. In addition, we rely on you to be a team that promotes fairness, parity and equal opportunities, acting in a transparent and ethical manner.

In this revolution, we’re counting on you.

Sustainability Report 2023-2024 ACTIVITY

What sustainable habits do you already incorporate into your daily life at Catral Group?

Workbook

Circle (or colour in) those you have already mastered and mark those you want to achieve next:

I use my cup and bottle Catral Group

I reuse and recycle pape I report any irregularities

I come by bike, electric car or shared car

Close the taps to not waste water

I exercise weekly I disconnect when leaving work

I know and respect my colleagues

I propose improvements for our products or methodologies

Turn off the lights

I have a healthy diet

Why now?

Although we have been working for more than a decade to introduce sustainability into our company, in 2023 we decided we had to take another step.

The plan was clear: Quantify our impact on the environment and take action to reduce it in the short and medium term.

Sustainability Report 2023-2024

But how to achieve this?

First, through the Materiality Matrix conducted in 2023 to understand our starting point in terms of sustainability:

Groups of Interest

Customers

identify the most relevant issues for the company and prioritise them, as well as those that are of most concern to our stakeholders and how they impact the business model.

Shareholders

Technology centres

Professional associations Logistics partners

Workers of Catral Group

Trasport Agencies

Suppliers

Community

Sustainability Report 2023-2024

MATERIALITY MATRIX

What is most important?

To define our framework for action, we conducted a market study, an ESG risk analysis, SWOT, PESTEL, and finally the Materiality Matrix. This matrix is a tool that allows us to identify the key aspects we need to work on, based on the expectations and demands of our stakeholders.

Sustainability Report 2023-2024

Materiality Matrix

1. Methodology

2. Preparation

3. Material issues

4. Assessment

KEY POINTS

The guidelines contained in the document “The New Double Materiality Assessment” published by Boston Consulting Group in February 2023 have been used as a proxy exercise for the new requirements set out by the EU in the CSRD directive.

An external diagnosis (consulting retailers about their priorities) and an internal diagnosis (analysing the company’s SWOT) are carried out.

Thirteen material issues were selected, grouped under the three ESG pillars (environmental, social and governance).

Stakeholders (internal and external) assess material issues according to their financial materiality (impact on profitability) and impact materiality (impact on the environment and society).

5. Score

6. Validity

A scoring system is used to determine the priority of attention: critical, important, informative or minimum.

The results of the materiality matrix will be valid for two years.

Glossary

Keywords in the Materiality Matrix

• Materiality matrix. Scheme to display the diagnosis of ESG issues of greatest importance for an organisation. It is the result of a process to identify the most important sustainability issues for the company and to prioritise them, and to know which are of most concern to stakeholders and how they impact on the business model and vice versa.

• CSRD. Corporate Sustainability Reporting Directive. A new EU regulation that sets stricter requirements for companies to report on their environmental and social impacts. This directive seeks to increase the transparency and comparability of the sustainability information that companies provide to their investors, customers and other stakeholders.

• SWOT. It is a tool that serves to analyse the situation of a company, project or person. Weaknesses, Threats, Strengths and Opportunities are evaluated. It’s like an “x-ray” that helps make better decisions.

• ESG. Environmental, Social, and Governance. These three pillars represent the key dimensions that companies must consider to operate in a sustainable and responsible manner.

• PESTEL. It is a strategic analysis tool that assesses the Political, Economic, Social, Technological, Ecological and Legal factors that influence a company’s macro-level external environment, helping to identify key opportunities and threats.

Sustainability Report

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Conclusions

Materiality Matrix

Material aspects

according to the study:

Relevant

Ȩ 13. Waste management

● 3.Quality and well-being

Crítical

Ȩ 10. Carbon footprint

Ȩ 12. Sustainable logistics

The conclusions of the study were very revealing.

■ 2. Ethical and sustainable supply chain

● 7. Diversity and equal opportunity

● 6. Sustainable culture

Ȩ 9. Ecosystems and biodiversity

● 1. Social action

■ 5. Marketing and sustainable communication

Ȩ 8. Circular economy

■ 4. Compliance

■ 11. Innovation and digitisation

Based on the results, we set out the objectives and actions to be taken (in the short and medium term) for each of the ESG pillars. This allowed us to define our roadmap that sets out the actions to be worked on.

With the priorities thus established in September 2023, we launched our sustainability strategy:

For a Sustainable Garden

We decided to call it that because we believe that the garden is much more than just an area of the home; it is a space where we can develop our hobbies, meet with our family and friends while connecting with nature. And at Catral Group we can do a lot to make this special space increasingly sustainable.

Sustainability Report 2023-2024

For a Sustainable Garden

« For a Sustainable Garden » * has become

the slogan that guides us.

* “Por un jardín sostenible” in Spanish.

That is why we aim to offer environmentally friendly products and solutions that minimise the environmental impact throughout its life cycle, while promoting social responsibility and the well-being of people and communities.

This approach is based on the circular economy, decarbonisation and social development.

Sustainability Report 2023-2024

Organising our strategic priorities around the SDGs

We understood everything we could do. We just needed to work out where to start.

So, taking the 17 SDGs as a starting point, we organised our next steps taking into account the goals most relevant to our organisation and where our impact could be greatest.

We set three strategic priority levels based on the most direct impact of everything we do in Catral Group.

Sustainability Report 2023-2024

ACTIVITY

What does each priority level mean?

Join each level with its definition.

A. We would like to contribute as much as possible even if we do not have such a direct impact on these issues.

B. It is important because we have a direct impact, due to the results of all the activities we carry out in Catral Group

C. They are essential to achieving our sustainability goals.

Catral Group For a Sustainable Garden

With the context clear, we started to implement the plan that guides us towards a more sustainable version of the company.

Under our slogan “For a Sustainable Garden,” we group actions under the ESG pillars of the environmental, social and governance. Each of these actions requires leaders, people responsible for coordinating, identifying needs and planning the next steps.

This is how we design a structure to ensure that progress in sustainability is clear, coordinated and effective across all levels of the company:

LEVELS

1. Executive supervision

2. Strategy and Culture

The Executive Committee (ExCom) makes strategic decisions based on monthly reports. The company’s main sustainability strategies are defined here.

3. Coordination

A space where we stop to see the full picture. There is a Sustainability Committee made up of members from different departments and countries who meet to review the results, ensuring that we continue to make progress and promote a sustainable culture throughout the company.

The leaders of each pillar meet to ensure that everything is advancing as it should. Coordinate efforts between departments and ensure smooth and constant communication.

4. Operational

This is where daily sustainability actions are carried out. Teams in each area (Environmental, Social, Governance) meet to implement specific projects and measure their progress.

This design ensures that all of them, from work teams to managers, are aligned and committed to our sustainability objectives.

We want each action to bring us closer to our goal and to ensure that all departments know that their work has a real and measurable impact.

Sustainability Report 2023-2024

1.

Executive supervision

• Committee: ExCom (Executive Committee).

• Responsibilities: Every month, the Sustainability Director reports on progress to the Board of Directors and the Executive Committee (ExCom). Global decisions are taken.

• Participants: Board of Directors and Executive Committee (ExCom).

2. Strategy and Culture

• Committee: Sustainability Committee.

• Responsibilities: Meeting with all the people involved in each project, from all departments and countries. They review the status and generate actions to promote sustainable culture.

• Participants: ESG Leaders + Members of the Sustainability Committee of all pillars + CEO.

3. Coordination

• Committee: Management and coordination meeting.

• Responsibilities: Project leaders meet to ensure project progress and coordinate communication and alerts.

• Participants: Sustainability Director + ESG Pillar Leaders.

4. Operational

• Committee: 3 ESG

Workstreams (Environmental, Social, Governance).

• Responsibilities: Work teams that meet to implement actions and measure project progress in each area.

• Participants: Specific teams for each ESG pillar.

Sustainability Report 2023-2024

ENVIRONMENTAL PILLAR

Objective:

Resilience and competitiveness in the value chain.

SOCIAL PILLAR

Objective:

Quality of work and sustainable activism.

GOVERNANCE PILLAR

Objective:

Anticipation, justice and transparency.

Our cross-cutting sustainability coordination body has three work teams, one for each pillar. And each one advances on specific actions to meet our objectives in the different areas:

Related issues:

Carbon footprint

Circular economy

Ecosystems and biodiversity

Related issues:

● Quality of life

Related issues: Our Sustainability Committee

● Diversity and equal opportunity

Waste management

Sustainable logistic

■ Marketing and sustainable communication

■ Innovation and digitisation

● Sustainable Culture

■ Compliance with regulations

■ Ethical and sustainable supply chain

With the structure created, we are starting to implement the actions featured on the next pages.

Sustainability Report

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Have fun as a family. Annotate, draw, cut out and stick the essentials in your ideal sustainable garden:

You can send your drawings to communication@catralgroup.com

Environmental Pillar

Sustainability Report 2023-2024

management

The key for a greener Catral Group Environmental

OBJECTIVE Reduce our emissions by 70% for scopes 1 + 2

in all our subsidiaries

Sustainability Report 2023-2024

When reviewing the results of the materiality matrix in the previous chapter, you will have identified that the carbon footprint is one of the material issues that are priorities in our sustainability strategy.

In line with this, we set out and announced at the end of 2023 the independent verification of our carbon footprint at the Catral factory (Alicante, Catral Garden).

This process was carried out by the certifier OCA Global, which quantified the greenhouse gas (GHG) emissions (in other words, the environmental impact), of our production site during the year 2022.

With the results obtained, the first actions of the Catral Group Sustainability Committee focused on 2 main areas:

We committed to reducing our emissions by 70% (scopes 1 + 2) in two phases:

Phase 1:

Reduce the carbon footprint in Catral Garden by 70% in 2025 (scopes 1 + 2).

Phase 2:

Achieve the same reduction of 70% in all our subsidiaries at 2028 (scopes 1 + 2).

We are going one step further towards Inclusive Circularity, extending our actions to our entire value chain and promoting decarbonisation at every stage of the supply process.

Did you know?

Footprint The Carbon

The carbon footprint is the total amount of greenhouse gases that are emitted directly or indirectly by human activities.

Our footprint is generated, among other factors, by the production, packaging and transport of our products, as well as by the manufacture of our raw materials and work trips by our team. It is also influenced by the use of single-use plastics, the energy consumed in factories and offices, and inefficient waste management. Actions such as leaving the lights on or not recycling paper correctly can also increase our footprint.

Sustainability Report 2023-2024

To better understand how a carbon footprint is measured, it is divided into three scopes:

Scope 1: Direct emissions from our own activities, such as the fuel used in company vehicles or emissions from our factories.

Scope 2: Indirect emissions from energy consumption, i.e. electricity, heating or cooling that we use in our facilities.

Scope 3: Other indirect emissions that we do not directly control, such as those related to work trips, the production of our raw materials, and the transport of our products.

ACTIVITY

Workbook

Can you guess what the carbon footprint of these activities is?

1. Holding a 1-hour video call

2. Sending an email with attachments

3. Travelling by petrol-fueled car for 20 km

4. Leaving 2 LED bulbs on during the working day

5. Keeping the computer turned on for the whole day

Sustainability Report 2023-2024

We have already seen very good results. And not only in order to comply with current regulations, but also as a competitive advantage for our company.

Emissions reduction 2022-2023 (NFIS 2023)

The results show the weight of the total emissions for Catral Spain and the capacity to decarbonise emissions from imported energy, which have undergone a reduction of 43.80% in the last financial year.

In these terms, the Group includes in its ESG Strategy 2028 a mitigation target of 70% for scope 1+2. Driven by this goal, it has acquired GdO credits (Guarantee of Renewable Origin) for Catral Home Depot S.A. for a volume of 1400 MWh, which has resulted in avoiding the emission of 392.20 tCO2eg into the atmosphere.

Sustainability Report 2023-2024

And there’s even more. Since 2023, we have audited our management system and obtained the ISO 14001 certification in our subsidiary in Hungary, Nortene Home Depot Eastern Europe, complying with all the environmental requirements established by the standard.

In addition, because our approach includes analysing the life cycle of our products - from the time they are conceived, manufactured and then used, often discarding the packaging - and training the entire team, we are analysing and optimising the use of resources to protect the environment in all operations.

We also collaborate with specialist suppliers, investing in quality and environmental management systems to reduce risks and take advantage of new opportunities.

I n 2023, we allocated €50,296.03 to these initiatives, reaffirming our commitment to a more sustainable future.

Sustainability Report 2023-2024

How can we reduce our environmental impact?

On our path towards sustainability, we are implementing many actions that bring us ever closer to our goal of reducing emissions, one of the keys to ‘For a Sustainable Garden’. Did you know?

If everyone lived as the Spanish population does, we would need the resources of 2.5 earths every year!

Source: Global Footprint Network

Sustainability Report 2023-2024

Zero Waste to Landfill

For example, in 2024 we have renewed for the third consecutive year the Saica Natur “Zero Waste to Landfill” seal, which certifies that 98% of the waste generated at our production centre in Catral (Alicante) is recycled or reused, preventing it from ending up in a landfill where it would not have a second life.

With the renewal of this seal, we proudly celebrate 3 years of continuous improvement at Catral Group. In 2022 we obtained the certification for the first time, with a reuse of 95%, the minimum required. The following year, we managed to increase the figure to 96% And in 2024 we reached 98%.

Rate of reuse and recycling of waste generated

But this is not the only measure. We have launched many more actions within the Environmental Pillar to mitigate climate change and promote the circular economy, integrating sustainability into all stages of our value chain.

Sustainability Report 2023-2024

ACTIVITY

Workbook

At Catral Group, we have renewed the “From Waste to Resources: Zero to Landfill” seal by Saica Natur for our production and logistics centre Catral Garden (Alicante) for the third consecutive year.

What percentage of waste generated do we recycle or reuse?

The correct answer is 98%.

Closing the Loop

Integrating the Circular Economy

Sustainability Report 2023-2024

ACTIVITY

Link the 7 points of the methodology Closing the Loop to give visual shape to our strategy:

Workbook

1. Re-think: Rethink how products are used to lengthen their useful life.

2. Re-design: Redesign products to make them more efficient. In the next pages, we’ll show the environmental assessment system for “Garden Score” products, which we’re designing from this perspective.

3. Re-new: Renew manufacturing and supply processes to make them more responsible. We are working towards certification for traceability and recycled

plastic content and incorporating sustainable criteria in the selection of wood suppliers.

4. Re-duce: Reduce the amount of packaging used in the products.

5. Re-cycle: Recycle packaging to give them a second life.

6. Re-use: Reuse products or give them a second life at the end of use

7. Re-cover: Recover materials of products at the end of their useful life for recycling.

Our commitment

The concept that is changing our way of doing things

This strategic line allows us to question and redefine how we design and produce our products and solutions, focusing on minimising environmental impact and maximising reuse and recycling. To do this, we continuously audit our impact to ensure sustainable and lasting improvements.

We believe that products should have a positive impact on the environment and society.

We are moving away from the linear model of “extract, make, use and dispose”, which generates waste and depletes resources. As a manufacturer, we can and should be involved in the entire life cycle of our products, even after they reach the end customer.

Profit and loss at end of cycle

Reducing waste

We minimise waste and ensure the correct reuse or recycling of materials.

Conservation of natural resources

We optimise the use of resources, reducing the need for raw materials that are not virgin.

Promotion of the circular economy

We extend the useful life of products and materials, driving a sustainable business model.

Sustainability Report 2023-2024

¿What is «Closing the Loop» for?

Saving costs and improving competitiveness

If we conceive and think of products in a more optimal and sustainable way, we are more efficient in the use of materials and it allows us to save costs, improving our competitiveness in the market.

Reduce the environmental footprint

We recycle and reuse materials, reducing emissions and pollution.

Innovate

These circular economy practices position us one step ahead in sustainable innovation and differentiate us in the market.

Comply regulations

We align with the SDGs and environmental regulations, improving our corporate reputation and avoiding sanctions.

Sustainability Report 2023-2024

How we are implementing it

30% recycled PVC + recyclable materials zero packaging

Ecodesign

• We use recyclable materials, such as 30% recycled PVC in “Recycane” and natural materials such as coconut fibre in “Coconatur”.

• We avoid packaging when it is not necessary, as in our Mosaic panels.

• We design modular products that facilitate recycling and repair.

Eco-efficiency

We optimise processes to reduce energy consumption and waste management.

Did you know?

Eco-design is a practice that seeks to think and design products in a more optimal and sustainable way, reducing their environmental impact throughout their life cycle: from design to disposal.

Sustainability Report 2023-2024

Product life cycle

We encourage the reuse, repair and recycling of products at the end of their life cycle. In our catalogue we mark those products that are recycled and recyclable to make it easier for our customers to understand and help them make more sustainable choices.

Collaboration with suppliers and customers

• We assess our suppliers to ensure they are aligned with our commitment to sustainability.

• We inform and provide our customers how they can contribute to caring for the environment, helping them join the sustainable revolution.

Sustainability Report 2023-2024 ACTIVITY

It’s your turn: What other actions can you think of to achieve our decarbonisation and inclusive circularity goals? Share your ideas through our ESG Observatory catralgroup.sharepoint.com

Garden Score

What is it?

It is Catral Group’s innovative indicator that allows us to measure and reduce the environmental impact of our products throughout their life cycle. It works as a scoring system to calculate - through 17 key indicators - how we are performing on sustainability and helps us to identify areas for improvement in our processes, involving the entire value chain.

Our “Garden Score” is closely aligned with other indicators in the market and by our customers. However, we have gone a step further by including other factors in our manufacturing process and certifications.

Why do we do it?

We implement the “Garden Score” to have a clear and quantifiable vision of our progress towards sustainability. It also helps us to:

1. Evaluating the environmental, social and value chain impact

We want to ensure that every product we manufacture has the lowest possible negative impact on the environment, society and the value chain.

2. Promoting transparency

By measuring and sharing our score, we promote a culture of transparency and responsibility across the company.

3. Guide decisionmaking Data helps us to make informed decisions to continuously improve our sustainable practices. through two strategies:

• New Products Development Process (NPD) with which e ensure that we only launch new products that exceed a minimum valuation on the market.

• Review all products already in the catalogue to improve them.

1. Monitor and assess

What do we want to achieve?

This system is used to:

We thus constantly monitor our sustainability performance within our product portfolio.

2. Identify opportunities If we know where our areas for improvement are, we can develop specific strategies to reduce our environmental impact.

3. Find out how we are dealing with the market It is now easier to compare our products and processes with those of the industry. This ensures that we are always competitive and continue to lead the way towards sustainability.

4. Communicate and inspire Making you part of our achievements and progress strengthens the sense of team. At the end of the day, you and the people who work with you, our customers and stakeholders are part of the solution. We like to set a path for us to move forward.

Sustainability Report 2023-2024

How do we calculate each score?

We weighted 17 key indicators based on the ESG pillars to obtain a specific score for each product. This is how we can objectively analyse our entire product portfolio.

Environmental indicators (11 criteria):

Analizamos el origen de los materiales y evaluamos el porcentaje de componentes reciclados y reciclables presentes tanto en el producto como en el embalaje y la etiqueta. 1

Social indicators (3 criteria):

We collect detailed information on working conditions in the manufacturing process, aligning with country-specific standards and indices. 2

We value criteria related to the guarantee of the products, as well as the quality indexes and certifications that apply in each country. 3

Good governance indicators (3 criteria):

Sustainability Report 2023-2024

Mosaic Remake Decorative Panel

4

Minimum threshold

This data means that no product can be launched without obtaining a minimum score of 40/100 in the “Garden Score.” If for any reason, even though it does not meet our standards, it has to go to market, management has to define an action plan to improve the rating as soon as possible.

Packaging

Packaging, key to closing the circle

Under the “Closing the Loop” perspective, we also look for solutions that optimise the packaging of our products, reduce the use of single-use plastic, reduce the weight of packaging and incorporate recycled materials. So we ask: What if our packaging was more sustainable?

The results of this design process are:

The new handles on the packaging of our natural and synthetic masking products, to make them easier to carry.

The new, more compact and lighter presentation of our products, to minimise the environmental impact of transport and storage.

3. The use of packaging made of materials other than plastic, or the elimination of plastic from packaging.

Have you noticed that in our catalogue we already identify recyclable and recycled materials?

As you can see, all the changes you are already seeing at Catral Group make sense and are just the first steps in this new, more sustainable phase.

From implementation of “Closing the Loop,” we have reduced our carbon footprint and the waste generated.

This project benefits the environment and reinforces our commitment to sustainability, while differentiating us in the market as a responsible and conscious company.

But this is only the beginning, we will gradually assess the entire Catral Group catalogue. How? Through our Garden Score indicator.

More actions that bring us closer to our objectives

Certifications and environmental commitment

ISO 14001 + ISO 9001

Our subsidiary in Hungary and Poland is the first Catral Group site to obtain ISO 14001 certification.

The standard focuses primarily on the management and reduction of environmental impacts, focusing on establishing a system to identify, manage and mitigate them. A breakthrough towards sustainability that we will soon see replicated in the rest of the centres.

This certification is added to ISO 9001 that includes quality management systems (including procurement policy) and that already forms part of the achievements of each and every one of the group’s centres.

Waste management

Catral Garden & Home Depot S.A. has obtained the Zero Waste certification for the third consecutive year. The process to obtain it verifies that at least 95% of the waste generated is recycled or reused instead of being sent to landfill. This 2024 has achieved a rate of 98%, 3 points above the minimum.

• Backed by SAICA Natur, this certification confirms that Catral Group is following a more sustainable path of waste management.

• Through the “Closing the Loop” approach, we are expanding the scope of this challenge and analysing how we can help our customers. The result has been a reduction of packaging, the optimisation of components, and the choice of alternatives with a lower environmental impact.

Pollution prevention and control

We monitor the prevention and control of dust and particulate emissions, as well as noise, light and effluent pollution.

We implement acoustic measurements by sound level meter. The result is that the people in our team are safer and more secure with individual noise protection systems.

Sustainability Report 2023-2024 ACTIVITY

If you are clear about the Environmental Pillar, link each concept with its definition.

Workbook

A. Indicator designed to measure the sustainability of our products and solutions.

B. Our global sustainability strategy, aligned with ESG criteria for a sustainable business model.

C. Our methodology for developing more environmentally responsible products.

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Outstanding actions

Environmental Pillar

Carbon footprint

Objective: Resilience and competitiveness in the value chain

Decarbonisation scope 1+2

Calculating the carbon footprint: To understand the environmental impact of our operations.

Reduce greenhouse gas emissions: We are committed to reducing greenhouse gas emissions (GHG) by 70% for 2025 for Catral Garden and by 2028 for the rest of the Group.

Use 100% renewable energy: The aim is to use renewable energy in all operations. We have already started with the contracting of 50% of the supply of Guarantees of Renewable Origin (GoR) for the Alicante factory in 2023.

Obtaining international certifications: We obtained ISO 901 certifications (at group level) and ISO 14001 (in Hungary), which demonstrate our commitment to quality, the environment and safety.

Offset the carbon footprint of trade fair participation: By collaborating with environmental regeneration projects, we seek to balance our footprint.

Replacing the fleet of company vehicles with less polluting options: We are gradually replacing our fleet of vehicles with more environmentally friendly models.

Circular economy

Promoting inclusive circularity and comprehensive decarbonisation

Developing sustainable products: We have started to use recycled materials in products such as “Mosaic” lattices and natural materials such as “Coconatur” hedges.

Rethinking product packaging: We have redesigned our packaging to facilitate recycling or provide them with a second useful life.

Launching the Garden Score indicator: Our indicator that measures the impact on sustainability of our products

Achieving traceability and recycled plastic content certification: We are working on this section.

Developing a tool to calculate logistics emissions: A tool to calculate emissions from upstream and downstream logistics is under development. This will allow us to establish compensation mechanisms.

Waste management

Renewing the “Zero Waste” seal at our Alicante factory for the 3rd consecutive year: This means that more than 95% of the waste we generate in the plant is processed sustainably.

Social Pillar

Being sustainable also means taking care of our people

The social aspect is a key part of our strategy, because we believe that personal relationships are the basis for creating a fairer and more equitable society. Our actions are not taken at random; we plan based on a detailed analysis that helps us to see where we can generate the greatest positive impact and what we want to achieve.

We focus on the needs of different groups and specific issues, adapting our actions to the countries where we are present: Spain, France, Hungary, Poland and Italy. With this combination of thinking globally and acting locally, we want to promote well-being in all areas of the group.

These initiatives motivate us to continue moving forward together, creating a more fair, equitable future.

Creating a safe and pleasant environment for all people

On the first pages we told you that we cannot conceive of business without respecting people and their development. In this chapter, we want to tell you everything we are doing to evolve as a team so that no one is left behind.

We want the entire Catral Group community to grow personal and professional because this growth favours the evolution and progress of the entire group.

Catral Grow

Sustainability Report 2023-2024

With this in mind, we created our “Catral Grow” social project that brings together three areas of defined action, each with their own projects and actions/objectives:

Aimed at personal wellbeing and professional development.

95th anniversary

This is our commitment to you and the future.

To ensure a fair, inclusive and sustainable work environment.

Diversity Month

Donations and social actions with organisations in our community and our centres.

Corporate volunteering

We

want you to feel like an active part of this journey towards a fairer, more inclusive and sustainable working environment. It is exciting to see how far we have come and how far we continue to go.

Sustainability Report

2023-2024

Workbook

ACTIVITY

Fill in your empathy map.

This exercise will help you reflect on your priorities and how other people affect you and your loved ones. Add more circles if you need.

WORK CONDITIONS

People Grow considers actions and initiatives so that you have all the tools to develop yourself further, whatever area you work in. Because all people add up, all activities help us to get closer to our goals and move For a Sustainable Garden forward.

Creating an environment with the best conditions

We want you to have an environment where you are comfortable, work safely and feel that everything you do is valued. That is why we never tire of promoting equal opportunities and transparency in everything we do.

With this vision, we seek well-being at work by encouraging sustainable behaviour, integrating all people.

To ensure we are moving in the right direction, we regularly conduct organisational audits, also known as the Initiative for Compliance and Sustainability (ICS), in which we seek to identify how we can improve people management and working conditions.

Sustainability Report 2023-2024

The team’s current situation in figures

At the end of 2023, we were a total of 407 people working in Catral Group. For when you read this information, we will probably be many more.

30% women Equality

70% men

Until then, we were: Training

And we want to continue improving with you, which is why in 2023 alone, our team members have received:

7.706 hours of training 7.050h men 656h women Team

+407 people

We are manufacturers, so a large part of our workforce is located in factories and warehouses. All of them work at the heart of our activity!

46% Management Workers

In addition, here’s a fact to make you feel pride in belonging to the Catral Group:

96% Full-time work contracts

Respecting downtime and rest periods

We are present in many countries, which means that we comply with different regulations, collective agreements and rules on local labour issues. However, regardless of where you are, at Catral Group we give you the opportunity to telecommute whenever your job allows it. Also we offer flexible schedules because we know that the

most important thing is to balance your work and personal life, as it helps you to feel good and perform to your best.

We are learning a lot from the best practices of each Catral Group centre in Europe and will gradually incorporate these into the activities of the entire group.

Sustainability Report 2023-2024

Initiatives that promote work-life balance and increase productivity

Spain:

We have a timekeeping system to record hours worked, including overtime, which is limited to a maximum of 80 hours per year. We offer two days a week of teleworking, flexibility for shift changes in the areas of logistics and production, flexible timetable for arrivals and departures, and a timetable that allows the weekly working day to end on Fridays at 14:00.

France:

We have the possibility of adjusting working hours according to peak or offpeak times. This makes it possible to adapt work to the needs of the business. In addition, punctuality and regular attendance are rewarded with wage incentives.

We offer smart working. This is a modality that combines schedule flexibility with the possibility of remote working, adapting to local regulations. An initiative that improves productivity at work.

Italy:

Sustainability Report 2023-2024

Balance between work and personal life

Your personal time is for you. Digital downtime is essential for health. With these initiatives we minimise computer fatigue, burnout syndrome and workrelated stress caused by receiving messages and notifications outside working hours.

Therefore, everyone working in Catral Group can:

REMEMBER:

Sometimes there is something left over from the week or you may prefer to push certain tasks out of your schedule. So emails sent over the weekend will automatically be scheduled for delivery at 8:00 a.m. the following Monday.

1. Blocking email notifications and professional applications outside working hours.

2. Not attending to communications outside the working day.

3. Hold meetings, face-toface or online, only within working hours.

Find more complementary actions, such as the reduction of absenteeism, in the Catral Garden & Home Depot S.L.’s disconnection from work policy

Sustainability Report 2023-2024

ACTIVITY

Do you know how to identify the phases of burnout?

Find out about them and talk to your team and your manager about the phase you are in openly to avoid Burnout. 1 5 2 3 4

1. You are highly motivated and committed to your work, as well as to acquiring new responsibilities and challenges. 2. A phase in which motivation and initial enthusiasm are beginning to decline, with feelings of frustration and disappointment being possible. 3. A phase where you can feel discomfort, lack of recognition and disappointment at your work. 4. A phase where you are indifferent to your responsibilities, you lose interest in the face of challenges and you feel emotional detachment toward your work. 5. A phase in which your physical, mental and emotional exhaustion is extreme. You feel symptoms of stress and pressure that can lead to collapse.

1. Entusiasm 2. Stagnation 3. Frustration 4. Apathy 5. Burnout

Sustainability Report 2023-2024

HEALTH AND SAFETY

Our comprehensive approach to health and safety Taking care of yourself and helping you prevent occupational risks is also a part of being sustainable.

For this reason, you have at your disposal initiatives and tools that promote a safe and healthy environment for all the people who work at Catral Group.

External prevention service

In each subsidiary we have a person responsible for risk prevention. Do you know who is in charge of this in your country? If you are unsure, please consult HR. We also rely on external services to carry out inspections, reviews and studies that identify occupational risks and propose preventive measures objectively.

Global Incident Management Procedure

With all the lessons learned, we have launched a global procedure to classify, record, report, investigate and analyse

occupational incidents. We determine the causes and carry out corrective actions that help us avoid them in the future. This makes us safer and safer and is a source of great pride.

Learning to take care of and protect ourselves

Beyond preventive measures, it is important to us that you also develop a personal safety culture. That’s why we have training and awareness-raising programmes on occupational health and safety for you.

Sustainability Report 2023-2024

The good practices that are already underway in our Group’s centres help us to improve in the rest. These are some of the most interesting:

Promoting good eating habits

Regular medical check-ups

Investment in security

At Nortene Home Depot Eastern Europe KFT, we organise fruit and vegetable days to promote good eating habits.

In Spain, we carry out regular and voluntary medical check-ups that help us to prevent diseases and maintain a healthier lifestyle.

We have an incentive system in place to encourage zero accidents and to promote cleanliness and tidiness in the workplace (logistics and production). We have carried out studies on dust, ergonomics, noise and adaptation of workstations, having invested more than €100,000 in industrial health and safety (industrial fans to reduce heat load, collective protections in extrusion and weaving machines, among others). We have improved sound and light signalling for fires and adequate emergency exits. Similarly, we carry out at least one fire drill every year.

Health and Safety Committees

In France and Spain, we have Health and Safety Committees that meet regularly to address current problems and propose improvements in occupational health and safety.

In addition, in France, we carry out an ergonomic study for people who prepare orders. The result helped us to design a safety manual for new team members.

Sustainability Report 2023-2024

Analyse your day-to-day work.

Do you think there is any change or initiative that we could implement to improve health and safety in your position?

You can send your answers to rrhh@catralgroup.com

Sustainability Report 2023-2024

EQUALITY

Talent has no gender and at Catral Group we are convinced that involvement, responsibility and commitment to a more sustainable world do not either.

Zero Tolerance Policy

We know that gender equality is a fundamental right and we reject any form of discrimination, violence or harassment. That is why we have a Zero Tolerance Policy against workplace harassment, which establishes clear rules to ensure a safe working environment and protect the dignity of all people in our centres. If you need it, it is at your disposal.

Procedure for the Autonomous Solution of Workplace Violence

And while there were no reports of workplace harassment in 2023, we like you to have the tools to deal with any situation. Moreover, from the day you join the company, you have the Autonomous Workplace Violence Dispute Resolution Procedure that guarantees a safe working environment that respects the dignity of every person working in the company.

Equality Plan

In line with Spanish legislation, in 2021 we implemented an Equality Plan registered in the Register of collective agreements, labour agreements and equality plans (REGCOM). And, to make sure that this is done, we have the Equality Commission.

Through their work, we have identified areas for improvement, which we are already starting to address:

• Low female representation at all hierarchical levels of our organisation.

• The imbalance, from a gender perspective, in most jobs.

We are increasingly aware that many of the things we say out of habit, cultural baggage or because of the context in which we have grown up have a negative impact on other people which, although we do not want to provoke it, happens all the same. So this type of plan helps us to rethink how we behave and guides us to improve.

This is a plan that we update and renew every four years.

Along these lines, in France, too, we have signed an agreement with the trade union to guarantee professional gender equality, which in 2026 we have to renew and update.

In Hungary and Poland, we are implementing measures to avoid any discrimination in the contracting processes. These actions include the use of blind CVs and a guarantee of equal pay for jobs of equal value.

Sustainability Report 2023-2024

CATRAL GROUP GLOBAL

Initiatives for Equality at Catral Group

Zero Tolerance Policy against Workplace Harassment

Policy that applies in all centres to ensure a safe working environment and protect the dignity of employees.

Validity: Current

CATRAL GROUP SPAIN

Procedure for the Autonomous Solution of Workplace Violence

Procedure available from the day of incorporation to the company to ensure a safe and decent working environment.

Validity: Current

Equality Plan

Plan implemented by Catral Garden & Home Depot S.A. to address female under-representation and gender imbalance.

Validity: 2021-2025

Sustainability Report 2023-2024

CATRAL GROUP FRANCE

Gender Equality Agreement

Agreement signed in 2023 with the union to guarantee professional gender equality in Nortene Home Depot France S.A.S.

Validity: 2023-2026

CATRAL GROUP HUNGARY AND POLAND

Measures against discrimination

Measures in Hungary and Poland to avoid discrimination in hiring, including blind CVs and wage equality.

Validity: Current

Rank the following list of micromachismos from least (1) to most violent (9) according to your criteria.

Reflect on how the lowest levels of violence are the basis for the most extreme examples.

6. Making insulting jokes

7. Opinions about her body

Humiliating her in public

Discrediting their opinion

Touch her without consent

Sustainability Report 2023-2024

TRAINING

When you grow, Catral Group does too

At Catral Group we want you to develop and grow professionally. This is one of the things we are most proud of! We love to see how people working in Catral Group move forward and achieve their goals.

We have initiatives in each of our centres that encourage progress. Some of the most relevant are:

Yearly training programme

Each year, we offer training programmes at our centres in Spain that are open to all the people who work there. The process is simple. After registration in classes, we evaluate their effectiveness and relevance. This allows us to improve our educational offer every year to

be increasingly closer to meeting the objectives set out in our ESG strategy.

In France, on the other hand, the focus is on occupational health and safety. Training there includes topics such as first aid, safe fire evacuation and electrical clearance.

Sustainability Report 2023-2024

The strength of the group

At Group level, we have different educational options for you to continue to grow in your career:

Health and Safety Ensuring occupational safety and risk prevention.

Idiomas Facilitate labour development, communication and international expansion.

• OHS training

• Basic life support

• Defibrillator

• CPR

• Occupational risk prevention

• Working at heights

• Heat stroke prevention

• English

• Portuguese

• French

Sustainability Report 2023-2024

Business and finance

Developing management and leadership skills

Business

Certifications and regulations

Compliance with regulations and ensuring the quality of products.

Master’s Degree in Operations Management and ThePower MBA:

• Innovation

• Strategy

• Marketing

• Leadership

• Accounting

• Finance

Training in FSC and PEFC certification for wood products.

Sustainability Report 2023-2024

Commercial skills

Technical skills

Improving sales and product knowledge skills.

Training on own manufacturing products to boost sales.

Optimising the use of machinery and technical processes.

Internal training in:

• Processes and use of machinery

• Crane operators

• Hoist

Sustainability Report 2023-2024

Sustainability Expanding knowledge in sustainability and promoting excellence.

Executive Master’s in ESG sustainability:

• Knowledge of sustainability, innovation and excellence.

Training programme and sustainable culture:

• Initiative aimed at all Catral employees Group in Spain, France and Hungary, with the aim of promoting sustainability in the organisation.

• Includes the designation of ESG Influencers in each subsidiary who will disseminate and promote sustainable practices within the group.

This is our commitment to continuous improvement. One more initiative that strengthens our culture of learning and constant development. Laying the foundation for our sustainable growth and yours.

Sustainability Report 2023-2024

SOCIAL RELATIONS

Communication unites us

We believe that fluid communication is vital to maintaining a positive and collaborative environment.

That’s why we are launching more channels and initiatives that promote dialogue and help you to get to know people who work with you and the whole group better. The more you know about what we do and who makes it possible, the more your pride of belonging to the Catral Group grows!

More communication channels to hear you better

SharePoint, our internal portal, is at your disposal, where you can keep up to date with the latest news and access corporate resources. It is an excellent tool to learn about the Group’s news, which are also shared by email.

On the portal you will find information about our company and its structure, employment news, as well as images and videos explaining our main lines of action. It also includes a section dedicated to progress in sustainability. If it happens in Catral Group, it is there.

For the latest corporate news, at catralgroup.com you will find out what is happening on a day-to-day basis and how we are moving forward in our commitment to For a Sustainable Garden. And there’s more. Because we are already looking for new ways to support and accompany you while you are more in Catral Group.

Legal Representation of Workers in Spain

In France we have the Social and Economic Committee (CSE), which represents the people who work in this country. This committee meets bimonthly with management to discuss working conditions, handle grievances and ensure compliance with the labour code, French labour law and applicable company agreements. It plays a crucial role in promoting health, safety and working conditions in the workplace.

And to promote a good working atmosphere and to get to know the other people in the team, at the end of June, they organise a food truck. A great idea to facilitate a chat in a relaxed atmosphere.

At our subsidiaries in Spain, we have a Company Committee that represents workers. Every quarter, it meets to discuss social issues and ensure compliance with labour standards. With this initiative, we ensure that the voices of people working in our group are heard and that your rights are always protected.

Social and Economic Committee (CSE) in France

Knowing how we do it, in order to always do it better

In our subsidiaries in Spain and France, we also have an annual performance appraisal that allows us to talk to each team member on a one-to-one basis.

abour relations are based on a system that serves to check the achievement of objectives, identify areas for improvement and promote professional growth. With this action we also promote the professional development of those who work at Catral Group and it allows us to recognise and value personal achievements. To feel that the place where you work appreciates and celebrates your evolution is also to be sustainable.

To understand organisational changes and project priorities at Catral Group level, various meetings are organised at our sites. In France, we hold an annual corporate meeting where everyone working there learns first-hand about the direction of the company. A good way to include every member of the team in the big picture is to meetings.

The doors are open, come in!

At our centre in Hungary, managers keep their workspaces accessible to facilitate direct communication with any member of the team. We like this “open door” policy because it allows everyone who works there, regardless of their position, to dialogue directly with the staff and to be in contact with voices have something to say. And we are happy to hear them.

As you can see, all these actions help us to create a good working environment, where you feel and see that you really matter and that what you contribute to Catral Group is valued.

You help us to be the company we want to be.

Closer to zero discrimination

With this initiative, we aim to incentivise our commitment to equality of opportunities and fairness, nondiscrimination, diversity and inclusion in the workplace. And all this both for the people in our team and for those who will join Catral Group in the future.

With the zero discrimination policy, we want to integrate people with diverse profiles at all levels. We like it when people from different generations, backgrounds or skills work together and bring ideas to the team from their point of view and how they come up with proposals and solutions with their knowledge. Exchange enriches us and helps us to respond to today’s challenges.

Catral Diversity+ in action

Diversity Month

Being sustainable means being respectful of other people. That is why, in March, we celebrate “diversity month.” We chose this time of the year because it is World Zero Discrimination Day. and we carry out different actions in our work centres.

Sustainability Report 2023-2024

CATRAL GROUP FRANCE

At the Val du Maine offices in France, we organised a workshop with the Ligue de l’Enseignement, a popular education movement in the country.

With them, we had a very interesting discussion on discrimination at work. A very enriching exchange of views that has helped us to become more aware of reality. And, to be sure, it has laid the groundwork for further learning from everyone and for further action. .

CATRAL GROUP HUNGARY

We enjoyed learning about the model of integrating people regardless of health conditions, age or physical abilities.

At our centre in Hungary, we participated in a craft workshop with members of IRMAK, a social organisation that promotes integration.

Sustainability Report 2023-2024

CATRAL GROUP SPAIN

In Spain, we open the doors of the Production and Logistics Centre in Alicante, so that you can see associations dedicated to social inclusion, shared with the team what the Catral Group is doing. These include:

ADIS It focuses on promoting personal development and social inclusion for children, young people and adults with functional diversity.

adisvegabaja.org

Diagrama Foundation It serves the needs of people in situations of vulnerability or social risk.

fundaciondiagrama.es

Casaverde Foundation It focuses on neurological rehabilitation and the care, welfare and attention of people in a situation of addiction.

grupocasaverde.com

With all of them, we explore new mployment opportunities for these groups. At the end of the day, we are all more sustainable when we have a positive impact on our communities and the people around us.

All of these actions are the most important in order to achieve our goal of Zero Discrimination within the Catral Diversity+ programme.

Sustainability Report 2023-2024

UNIVERSAL ACCESSIBILITY

Supporting the development of all people

Although we continue to expand opportunities for people with disabilities, our system is fully compliant with current regulations in Spain, integrating people of all abilities into our teams.

Sustainability Report 2023-2024

In 2023 we had 10 people with disabilities on a permanent basis.

In France, through ESAT, we subcontract part of the logistics and maintenance of green spaces from an organisation that employs people with physical and mental disabilities. And at our centre in Alicante, we work with people with disabilities to prepare gardens, promoting their social and labour inclusion, and we collaborate with the employment workshop of the Catral Town Council to promote the social and

labour insertion of particularly vulnerable groups. This is one of our ways of encouraging equal opportunities for all people.

In Viver de Bell-Lloc the integration continues. There we work with people at risk of social exclusion, setting up all the Group’s Welcome Packs for new employees, both in Spain and in France, Italy, Hungary and Poland.

Sustainability Report 2023-2024

COMMITMENT TO SUSTAINABLE DEVELOPMENT

By collaborating with others, we go further

Remember we mentioned that everything we do impacts in some way on the people around us and our environment?

On our path For a Sustainable Garden, we also collaborate with associations and entities that undertake interesting projects that are in line with our vision of sustainability. We contribute to all of them through the “Catral Giving” project.

Sustainability Report 2023-2024

Fundación Viver de Bell-Lloc Barcelona

vivelloc.cat

An organisation dedicated to the inclusion of people with disabilities. We have already collaborated twice with this organisation by creating panels for bees from scraps from our factory in Catral. These nests are subsequently donated to town councils, schools or environmental organisations for installation in green spaces.

Catral Council Alicante

catral.es

We held an employability workshop for people at risk of social exclusion.

Reforesta

reforesta.es

On the occasion of International Soil Conservation Day, we have donated products and funds to this project dedicated to the reforestation of our forests. Our collaboration included NORTENE products designed for soil conservation.

Sustainability Report 2023-2024

Fundación Mascotas de Zero

A shelter and place of refuge for pets, located in Alicante. There we donated funds to buy blankets and make improvements to the facilities.

Santuario Salvando Peludos

For World Animal Day, this initiative received our donation of material that has helped them to recover their facilities affected by a storm. mascotasdezero.com

Hungary

salvandopeludos.org

In addition, the Hungarian subsidiary of the Nortene Home Depot Eastern Europe Group donated products to another animal shelter in Csévharaszt at the end of June.

Sustainability Report 2023-2024

Athletics Club, Rhythmic Gymnastics Club, Cycling Club Catral

We are particularly fond of the local clubs. And we thought it was a great idea to support them while promoting physical activity.

Sablé FC France

Our brand Nortene is the sponsor of SABLÉ FC, a football club close to our centre in Val du Maine (France) which plays in the French Ligue Professionelle 3. With this sponsorship, we contribute to local sport and the promotion of healthy lifestyle habits.

Photo: Morgan Delarue

Donation of composters Spain, France and Hungary

Being sustainable also means helping others to be sustainable.

We donate composters to schools near our centres in Spain, France and Hungary to promote healthy eating habits and teach children about the benefits of composting and the circular economy.

Sustainability Report 2023-2024

Budapest Business University (BGE) Hungary

Through our Eastern Europe centre, we are collaborating with this school on an entrepreneurial project to enhance student development and contribute to the economic growth of the region.

Instituto IES Azud De Alfeitamí

Almoradí

Here, we had the opportunity to train their students, showing how a production and logistics centre works, and creating links for the recruitment of students at the end of their training.

Asociación Vega Baja Limpia Alicante

We have signed a collaboration agreement with an association that works for the environmental regeneration of the Vega Baja, the region of Alicante where our production and logistics centre in Catral is located. Thanks to this contribution, our team has promoted volunteering and participated in cleaning up in natural spaces such as El Hondo Natural Park. In addition, we have donated Catral Group products to help delimit a green space in this park, which the association has regenerated after years of being used as an illegal dump.

Sustainability Report 2023-2024

International Earth Day

On 22 April, we launched a global campaign in which we donated material to schools near our work centres in Spain, France and Hungary, promoting quality education and the development of sustainable cities and communities (SDG 11).

From 2024 we highlight:

Centro de Investigación Ecológica y Aplicaciones Forestales (CREAF)

We have donated funds to this public research centre of the Autonomous University of Barcelona, which works on ecological preservation. Thanks to this donation, we are now part of the Scientific Excellence Fund.

CLEANWALK.ORG

As part of World Mother Earth Day, our Nortene Home Depot France site provided bags and collection sacks to support the clean-up campaigns organised by this association.

Sustainability Report 2023-2024

Tessedik Sámuel Általános Iskola

Albertirsa, Hungary

Also, for World Mother Earth Day, we have donated products from our growing range, such as coco-tabs, pots and growing kits, to this school near our centre in Hungary. In doing so, we aim to instil the value of agriculture and environmental responsibility in the youngest children.

Almoradí City Council Alicante

Here, we donated artificial turf to create a play area in the street to celebrate International Play Day. We love to see how we improve the surroundings of our subsidiaries, such as this space in the Alicante town near our Catral centre.

BP18 Unified Kindergarten Directorate Hungary

In the framework of Earth Day, we have donated Nortene products for the creation of a garden in the Havana district of Budapest (district 18). This project, promoted by the BP18 Unified Kindergarten Management and supported by the municipality, will enable children from three kindergartens to learn about nature, care for plants and observe the growth of fruit and vegetables up close. In addition, teachers will integrate conservation issues into school activities.

Sustainability Report

2023-2024

Outstanding actions

Social Pillar

Culture of sustainability

Employment quality

Diversity and equal opportunity

Zero Discrimination Policy

We promote training and internal communication on sustainability to create a culture aligned with our strategy and objectives as a business group.

We implement initiatives to improve the wellbeing of our workforce, including work-life balance opportunities, fair pay and long-term contracts.

To create a respectful and responsible work environment, we launched the “Catral DIVERSITY+” initiative that helps us promote inclusion and integration across the group.

This initiative reinforces our group-wide commitment to equal opportunities, nondiscrimination, diversity and inclusion at work.

Sustainability Report 2023-2024

Work disconnection policies

We adopt flexitime and digital disconnection policies to improve your well-being in and out of work.

Equality Plan

Since 2021, this plan addresses the underrepresentation of women in the company, the gender imbalance in the workplace and the lack of communication on equality policies.

Company Committee (Spain)

On a quarterly basis, together with the management, it addresses social issues to ensure compliance with the Workers’ Statute and the Provincial Collective Bargaining Agreement for the Plastics Processing Industries

Health and Safety Committee (Spain and France)

They meet regularly to address current issues and propose improvements in occupational health and safety.

Social and Economic Committee in France

This committee meets with management every two months to discuss issues such as occupational health and safety, as well as promoting workplace wellbeing and compliance.

Outstanding actions

Social Pillar

Sustainability Report 2023-2024

Annual performance evaluation

We conduct an annual performance appraisal to strengthen individual communication and promote professional growth and continuous improvement.

Annual Corporate Meeting (France)

We meet annually to communicate the company’s activity, figures and projects to the whole team, encouraging transparency and participation.

Sustainability and equality training

We are designing an internal training programme on sustainability and equality.

Protocol for social interventions

We are launching a protocol to plan and coordinate the group’s social interventions.

Collaboration with social entities

We collaborate with various social entities to promote social action. Such as Payasoshospital, Reforesta ONG, protectora familia Bombay, Fundació Viver de Bell-Lloc, ESAT, etc.

Inclusion of people with disabilities

Outstanding actions

We subcontract services to organisations employing people with disabilities and run workshops with organisations such as IRMÁK (Hungary) that promote the integration of people with disabilities.

Social Pillar

Governance Pillar

Sustainability Report 2023-2024

BUILDING A JUST FUTURE

and transp

This is how we understand our business, our responsibility to the people who work in our group and to those who decide to choose our products or collaborate with our organisation.

We believe that in a sustainable society, our commitment to social justice is also environmental justice. That’s why we look to anticipate and explore new ways to help our sector also join our vision of “anticipation, justice and transparency”, For a Sustainable Garden.

Sustainability Report 2023-2024

The future we want starts here and now

Is there another way of understanding the world?

At Catral Group, we are committed to ensuring ethical and transparent governance at every stage of our value chain. As a priority, we work to maintain a solid environment that protects your rights and ensures the well-being of all people who are part of our company.

Everything we have put in place follows the standards of the International Labour Organisation (ILO):

ILO Conventions

Everything we implement follows the equal pay principle of ILO Convention 100. In addition, it respects ILO Conventions 138 and 182 which prohibit the employment of minors.

Code of Conduct

Everyone has the same rights, so if you need information on how to fight discrimination or how to encourage an inclusive and diverse culture in your area, here are the answers.

Principles of the Code of Conduct

In addition to non-discrimination and inclusion, human rights promote safety, health, respect for the environment, fair trade relations and respect at work. In this document, you will find all the information on this subject.

Labour Rights

We want you to work in a safe environment that favours your well-being and that of those around you. Therefore, within our rights, we include guidelines to eradicate child and forced labour, ensure freedom of association, and control overtime.

Trade Union Representation

Legal Compliance

You have a right to trade union representatives. You have the right to consult them and actively participate in their proposals, according to ILO Convention 87.

We ensure compliance with regulations regarding the inclusion of people with disabilities in the workplace. We are inclusive and we can all contribute and have the right to develop. This is also part of working with the vision For a Sustainable Garden.

And if you have any doubts, the Compliance Committee is there to give you the answers you need.

ethicschannel.catralgroup.com

Sustainability Report 2023-2024

Relations with suppliers

Sustainable criteria in the Purchasing Policy

Under the motto “For a Sustainable Garden” we also updated our supplier relations. Purchasing management ensures that needs are met in terms of quantity, quality, time and place.

In addition, we have implemented specific contingency plans for potential risks, thus promoting continuous improvement in products and services. This allows us to be more transparent with our suppliers and customers, reinforcing trust with our stakeholders.

Sustainability Report 2023-2024

Supplier approval and assessment

In this new, more sustainable phase, we have incorporated evaluation criteria that prioritise those companies that have a sustainability agenda and work in the environmental, social and governance (ESG) pillars.

We are moving forward with supplier certification to ensure that suppliers are aligned with sustainable development and the protection of human rights throughout their value chain. To do this, we carry out audits and monitor highrisk suppliers, such as those supplying FSC or PEFC certified wood.

And because being honest and transparent means surrounding ourselves with entities whose ethical codes are in line with our goals, we choose suppliers who adhere to fundamental principles, such as the prohibition of human rights abuses, discrimination, harassment, child labour and hazardous work.

We will be inflexible in this respect. Therefore, in case of non-compliance, we cancel orders and look for alternative suppliers that meet the requirements.

ETHICS, FIGHT AGAINST CORRUPTION AND BRIBERY

Be ethical to be sustainable

As we want to provide you with tools to be in line with our way of doing things, we have worked on several tools and actions that you can use when you need them.

Sustainability Report 2023-2024

Avoiding money laundering is also being sustainable

Moreover, as of September 2022, we are unifying our vision across all Group sites by implementing tools to prevent and detect human rights offences. This led us to lay the foundations for our Compliance Policy, which we launched in 2024 under the leadership of the finance department. We want to prevent irregular payments and money laundering.

Social and environmental justice is a right of all people

At the end of 2023, we created the Compliance Committee and defined what we wanted to achieve this year, such as the new Group-wide whistleblowing channel and the implementation of a Sanctions Regime or Anti-Corruption Policy. Each of these actions helps us to ensure that we deal fairly and honestly with everyone, whether they are Catral Group employees, customers, distributors or suppliers.

The world is not perfect, situations sometimes become complicated or opaque, and the important thing is that you have tools to correct and prevent irregularities. If it is not honest or transparent, it is not there. And you have our support to.

If that’s how we think, that’s how we behave

Under the motto “Anticipation, fairness and transparency”, we have developed all these key tools for the management of human rights in all our centres. Use them:

Ethics Channel

ethicschannel.catralgroup.com

On this website you have all the information about our ethical principles and the guidelines you must follow to be part of Catral Group. Whether you work directly in any of our subsidiaries or collaborate with our organisation, this is your channel to report or share information with the Ethics Committee, anonymously.

• It is a secure and confidential way to report irregularities or misconduct within the Catral Group.

• We protect your identity when reporting crimes, serious administrative offences and violations of EU law.

• From receiving complaints to investigation and decision-making, everything is handled impartially and objectively.

• The Committee shall investigate the case and take the appropriate measures. For example, from a reprimand to the dismissal of a person from the team. Each case is unique. And we always seek a resolution.

• And because the management is transparent, we are committed to informing the complainant of the status of his or her case.

Code of Ethics

It is our way of laying the foundations of how we like to do things and caring for the relations with all the people who work with you, those with whom you have commercial relations, and in all matters related to respect for the environment and the surroundings of our centres. It is available on our Ethical channel.

Gift Acceptance Protocol

Suggestions and complaints box

If you have any doubts about whether a gift or a detail given to you has an ulterior motive or might be intended as a favour, here are the answers to how to act in an honest way.

It is the place to share your concerns and worries anonymously and freely. Help us to be better, more transparent and more honest.

Sustainability Report 2023-2024

Compliance policy

Your tool to prevent and know how to respond in the event of situations such as irregular payments or money laundering.

Compliance Committee

If you have doubts or witness a situation that could call into question the rights of individuals, this is your place to find the answers you need.

Sustainability training and transparent communication

Occupational health and safety training

This is our way of helping you to have a more sustainable and ethical vision at work and in your daily life.

Training and awareness-raising courses on occupational health and safety are given in all the group’s centres.

Specific training for operators

In-house training is provided on manufacturing processes, use of machinery and operation of equipment such as overhead cranes and hoists.

Sustainability Report

2023-2024

Sustainability training for senior management

Training on in-house manufactured products

An Executive Master in ESG Sustainability is offered to broaden the knowledge of managers in this area.

Transparent communication

Courses are held to improve knowledge of the company’s own products and boost sales.

Sharepoint

catralgroup.sharepoint.com

This is used as an internal communication platform to share corporate resources, news, information on the ESG 2028 strategy, images and videos.

Corporate website

catralgroup.com

It is updated with news and public information about the company and its sustainability actions.

And while in 2023, there were no reports at any of our sites, we are working on the development of a comprehensive cyber security system for the Group, which we will implement this year..

Sustainability Report 2023-2024

Outstanding actions

Governance Pillar

Creation of the Compliance Committee

The Committee is responsible for monitoring compliance and handling human rights queries.

Development of Compliance policies and tools

This includes a fraud prevention and detection policy.

Development of a cybersecurity plan

We aim to strengthen the Group’s IT security.

Approval of suppliers with sustainability criteria

This helps us to ensure that our environmental, social and governance standards are met throughout the value chain.

Creation of the Sustainability Committee

An initiative that promotes transparency actions, reviews existing actions and coordinates CSR (Corporate Social Responsibility) projects.

Sustainability Report 2023-2024

Reinforcement

of transparent communication

Development

of an internal control system

We want to clearly communicate the Group’s future actions and plans.

To ensure transparent accounting practices.

Creation of a Code of Conduct

It helps us to guide ethical behaviour in business and employee relations, business interactions and environmental care.

Establishing a protocol for the acceptance of gifts

To avoid unethical situations, define criteria for accepting gifts, presents and favours.

Implementation of a suggestions and complaints box

Outstanding actions

Your channel for communicating suggestions or complaints anonymously.

Governance Pillar

Towards the future

Sustainability Report 2023-2024

Leading the way to a more sustainable, ethical and inclusive future

And this is just the beginning of what we can achieve at Catral Group. We are confident that our “For a Sustainable Garden” approach will help us to continue to lead the market with solutions that are economically viable and promote sustainability in its broadest sense.

This is our commitment and we hope that it will be yours too.

This way of doing our part to achieve a sustainable garden is divided into three strategic paths: Environmental, Social and Governance.

Environmental Pillar Sustainability as a guide

This path encompasses actions that are focused on respecting natural resources and our impact on them.

Sustainability Report 2023-2024

Some of the actions we will continue to carry out are:

Decarbonisation

We have made a lot of progress, although there is still a way to go. That is why we are already implementing measures such as purchasing renewable energy, renewing our vehicle fleet with cleaner technologies, and improving energy efficiency in our facilities.

Waste managemen

We hope that, little by little, each centre and each activity will have its “Zero Waste” stamp.

Eco-design and recycling

We are working on ISO 14006 certification for eco-design and developing an ECO rating for our products.

We continue to assess our activity and the way of doing things.

If we want to be better, let’s raise the bar. With our “Garden Score” tool for evaluating products from a sustainability perspective, we are already making improvements. And we hope that in the future other companies in the segment will join our way of doing things.

Social Pillar

Creating an inclusive and open environment is sustainability

All actions with a direct impact on people working or not in the Catral Group fall under this pillar.

Sustainability Report 2023-2024

You will see that we combine issues of employment, diversity, work-life balance, equality and collaboration with social and environmental organisations. And some of the most relevant ones we will continue to work on are:

Well-being and diversity at work

Equality plans and LGTBi 1

Training and awarenessraising 2

Reconciliation for all people 3 Donations and educational projects 4

1. We will continue to implement equality, work-life balance and digital disconnection plans to improve your well-being.

2. There’s so much to learn! We will continue to provide training on sustainability and best practice, promoting a culture of responsibility at all levels. of the company.

3. Gradually, centres’ best practices will become a reality in all Catral Group subsidiaries..

4. We already plan to collaborate with more institutions and initiatives that are in line with our motto For a Sustainable Garden.

Governance Pillar

Managing with ethics and transparency is being sustainable

We are honest and transparent. And that’s the way we like it. We have therefore established a framework to ensure that we act in accordance with our code of ethics at all stages of our activities and organisation.

Some of the most important actions we will continue to work on are

Compliance and cybersecurity policies

We continue to make progress on our cyber security plan to ensure social and environmental justice in our supply chain.

Certifications of adherence

We are initiating the process to align with the ISO 26000 reference standard and to obtain ISO 28000 certification, aimed at corporate social responsibility and supply chain security, respectively.

ESG Observatory

We have created an ESG observatory to anticipate the sustainable responses we need in our sector. As leaders, we have a responsibility to lead the way in establishing sustainable practices. This is a constant task that will continue in the future.

Sustainability Report 2023-2024

ANEXO:

Project

Sustainability Report 2023-2024

PROGRESS AND STATUS OF PROJECTS

2023-2024

80% Completed 20% In progress

Sustainability Report

2023-2024

Conducting a market study, risk analysis and materiality matrix.

A study to understand the sustainability policy framework.

Definition of the SDGs

The Sustainable Development Goals (SDGs) essential for the company are defined.

Obtaining ISO certification 4001

The Hungarian subsidiary obtained ISO 4001 certification, which covers environmental management systems.

Contracting renewable energy

50% of the renewable energy supply (GdO) was contracted for the Alicante factory.

Creation of the Sustainability Committee

The committee was formed with three working groups (environmental, social and governance).

Verification of the Carbon Footprint

Independent verification for the Alicante plant, covering emissions in 2022.

Renewal of the Zero Waste certification Catral Garden & Home Depot

S.A. renewed the “Zero Waste” certification at its Alicante factory.

Improving energy efficiency

Improvements were made to the facilities to reduce energy consumption.

Sustainability Report 2023-2024

Launch of the strategy

“For a Sustainable Garden”

Strategy to integrate sustainability into all operations.

Improving factory safety

Investment in the improvement of the factory facilities in Spain to optimise work processes and reduce occupational accidents.

Implementation of Sharepoint

The internal portal for communication and access to corporate resources was enabled.

Launch of the “For a Sustainable Garden” project

Project for the development of the Compliance Policy and the creation of the Compliance Committee.

Creation of the Compliance Committee

Committee formed at the end of 2023 (Training), official launch in 2024.

Sustainability Report 2023-2024

2024

Adherence to the Global Compact

Accession to the Global Compact completed.

Presentation of “Garden Score” in Spoga Gafa

Presentation of “Garden Score” at the Spoga Gafa fair in Cologne.

Quantitative and final version of the financial report

Creation of the sustainability policy

Progress in the creation of the sustainability policy.

Launch of “Garden Score”

Launch of the “Garden Score” indicator at the international trade fair JdC Garden Trends.

Audit of the non-financial report by KPMG

Finalised (depending on the finalisation of the financial audit)..

Quantitative and final version of the financial report

Event emissions offsetting

Study of emissions offsetting for attendance at trade fairs and events.

Sustainability Report 2023-2024

2024

Renewable

energy purchase planning

90% 85%

Preparation of a plan for the purchase of energy with Guarantee of Renewable Origin (GO).

85%

Eco-design procedures and criteria

Establishing an ethical and sustainable procurement policy

Audit of fossil fuel emissions

Ongoing energy audit for facilities with fossil fuel thermal systems.

70%

Establishing a Sustainable Mobility Plan

• Renewal of the vehicle fleet.

• Internal mobility study

• Implementation of procedure for the registration of business trips

• Incorporation of sustainable criteria in car rentals

Sustainability Report 2023-2024

2024

Plan for the substitution of ancillary products (packaging) by sustainable alternatives

Communication of sustainability based on NFIS 60%

Traceability and recycled plastic content certification scheme

40% 20%

Tool for calculating logistics emissions and offsetting mechanisms

Creation of the ESG Observatory

Adaptation of equality and diversity policies at group level 80%

Sustainable culture and ESG Influencers outreach programme Tool for reporting social indicators at the group level

Sustainability Report 2023-2024