SUSTAINABILITY REPORT
PACKAGING
CREDITS PLANNING AND LEADERSHIP IN THE PREPARATION OF THE REPORT
DENISSE BENÍTEZ – Sustainability Lead MARIEL ARAGÓN – Social Media Coordinator JOSUÉ SILIÉZAR – Head of Communications
VERIFICATION OF INFORMATION QUALITY
HUGO EDUARDO TONA – Sustainability Project Manager LUZ AMANDA ANDREU – Marketing Director RODRIGO SAMAYOA - Director of Nneo Smart Properties
PHOTOGRAPHS
ORGANIZATIONAL COMMUNICATION ARCHIVE
WRITING AND TRANSLATION INTO ENGLISH
HANA SZTARKMAN ARÁUZ
DESIGN AND LAYOUT
KARINA PORTILLO
A Family-Owned Company At the Ternova Group, sustainability stems from our core values
Memoria de Sostenibilidad 2026 | TERNOVA
As a family-owned corporation, Ternova maintains a long-term vision that goes beyond the immediacy of quarterly results. Integrity, a focus on people, and consistency in decision-making have been, from day one, the foundation of its business model. In the context of expansion and entry into new markets, these principles become a competitive advantage: they enable consistent growth, foster a strong organizational culture, and build trust with all stakeholders.
At Ternova, sustainability is not just another strategy, it is part of its very identity. It manifests itself in decisions guided by a clear purpose, in patient investment in sustainable innovation, and in an internal culture that fosters pride, a sense of belonging, and active participation among employees. This report aims to reflect this evolving legacy, demonstrating how our founding values translate into real, measurable impacts. Under the Business to Human approach, the narrative puts people at the center: employees, customers, and communities. Behind every process, every package, and every metric, there are real stories that give meaning to the data. For this reason, the 2025 Sustainability Report combines technical rigor with a human context, avoiding superficial narratives. Every story presented is backed by key performance indicators that confirm the company’s social, environmental, and economic impact as tangible and verifiable.
Written in clear, accessible, and inclusive language, the Report seeks to make information widely available and ensure that all audiences understand the strategy and results. The information is shared in an engaging manner, technical jargon is clarified, and user-friendly formats are used to help spread the message further, enhancing both transparency and accountability. The integration of family heritage narratives and the Business to Human approach results in a Report that not only informs, but also connects, mobilizes, and aligns. In 2025, Ternova reaffirmed its commitment to sustainable impact, demonstrating that it is possible to grow, innovate, and expand without losing what makes it unique: its identity, its culture, and its purpose.
CONTENTS INTRODUCTION
ENVIRONMENTAL SYSTEM
About this Report
8
Message from the Ternova Group CEO
9
Message from the Family
10
Climate Action: Reducing Greenhouse Gas Emissions
32
Energy Efficiency: Responsible Growth
33
Circular Economy Success Stories
Waste Management
41 44 45
Recicla 503: Connecting People, Communities, and the Future
47
The Recycling Plant Plastic Credits
THE TERNOVA GROUP About Ternova Packaging
12
Global Partnerships and Commitments
14 15 16
Philosophical Framework: Vision and Mission Ternova Business System Business Units: Sustainable Solutions for Everyday Life Awards
Sustainable Water Management
17 19
SUSTAINABILITY:
An Evolving Legacy
Workplace Safety Total Health
55 57
Talent Management and the Ability to Transform
60
Benefits
65
Corporate Citizenship
66
21 22
Sustainability Strategy with ESG Focus: Environmental, Social, and Governance
23
Ternova Packaging and Its Alignment with the Sustainable Development Goals
24
Sostenibilidad en acción, un vistazo a los avances
Message from the Chair of the Sustainability Committee
25
Acknowledgments
GOVERNANCE AND COMPLIANCE Corporate Governance
27
Sustainability Governance
28
Champions of Sustainability Business Ethics
28 29
Transparency: Traceable Trust
30
52
SOCIAL IMPACT
Materiality
Stakeholders
39 40
68 69
GLOSSARY B2B Business-to-Business, meaning a company that sells products and services to another company. B2C It stands for Business-to-Consumer, and it is the model in which a company sells products or services to end consumers. B2D Business-to-Developer. Here, the relationship is between a business or company and a developer—whether of products, services, or software. BUSINESS TO HUMAN Also known as B2H, it is a marketing and business management approach that treats every commercial interaction as a relationship between people, even when dealing with companies or institutions. It is based on the idea that decisions are always made by human beings. It can be described as a people-centered business approach. CLIMATE CHANGE A phenomenon associated with rising global temperatures, caused primarily by greenhouse gas (GHG) emissions resulting from human activities, which has environmental, social, and economic impacts. CO-PROCESSING It is a responsible way to make use of certain types of waste that cannot be recycled, by using them as energy or raw materials in industrial processes, rather than sending them to a landfill. D4R Designed-for-recycling. DECARBONIZATION A process for the gradual reduction of greenhouse gas
emissions through process optimization, energy efficiency, the use of renewable energy, and a transformation of the operational model. ERGONOMICS A scientific discipline that adapts work, systems, and products to human physical and mental capabilities and limitations, optimizing safety, health, comfort, and system performance by integrating knowledge from the human sciences into the design of work systems and environments. ESG In the context of sustainability, ESG stands for Environmental, Social, and Governance. It refers to the three main criteria used to assess a company’s sustainable and ethical performance. GEMBA A management practice rooted in Lean philosophy that involves conducting on-site visits to where processes take place (“going to the actual site”) to observe, identify opportunities for improvement, and strengthen the operational culture. GHG OFFSETS Mechanisms through which an organization offsets residual GHG emissions via certified external projects, such as reforestation or renewable energy, which generate verified emission reductions. GHG REDUCTIONS A measurable reduction in greenhouse gas emissions achieved through efficiency improvements, technological changes, fuel substitution, or process innovation. GRI (Global Reporting Initiative) Global Reporting Initiative; an international standard for sustainability reporting that enables organizations to disclose their
environmental, social, and governance performance in a structured, comparable, and transparent manner. KPI Key performance indicator. R2R Ready-to-recycle. RECYCLING A process by which waste is collected, processed, and reused as raw material in new products, contributing to the circular economy and reducing the use of virgin resources. SDGs (Sustainable Development Goals) A set of 17 goals adopted by the United Nations as part of the 2030 Agenda, aimed at promoting sustainable development in its economic, social, and environmental dimensions. SUSTAINABILITY A management approach that seeks to balance economic growth, environmental protection, and social well-being, ensuring the viability of the business for future generations. TPM (Total Productive Maintenance) A management methodology focused on maximizing the efficiency of production teams through preventive maintenance, employee involvement, and continuous improvement. TRUE NORTH A strategic concept that represents the organization’s long-term vision and purpose, which guides decision-making and ensures alignment between strategy and day-to-day operations.
INTRODUCTION
INTRODUCTION
About this Report
to present its Packaging ONE OF THE BUSINESS UNITS OF THE TERNOVA GROUP, IS PLEASED
SUSTAINABILITY REPORT
In 2025, Ternova Packaging consolidated a key phase in its evolution: growing, diversifying, and expanding without losing sight of the essence that has defined it since its inception. This Sustainability Report serves as a strategic tool to demonstrate that growth does not mean abandoning core values but rather deepening them and projecting them with greater impact.
SCOPE OF THE REPORT
STANDARDS AND METHODOLOGY
This Report covers the period from January 1st to December 31st, 2025, and includes all operations related to the design, production, and distribution of packaging in El Salvador and Vietnam.
This report was developed in accordance with the Global Reporting Initiative (GRI) standards and the United Nations Sustainable Development Goals (SDGs), while ensuring the relevance, consistency, and comparability of the information. Data collection was carried out through a comprehensive process involving all areas of the company, including Production, Human Resources, Corporate Social Responsibility, and Environment.
Ternova Packaging Sustainability Report 2025 | 8
INTRODUCTION
Message from the
TERNOVA GROUP CEO Dear employees, customers, shareholders, strategic partners, and the communities that walk alongside us:
Each year, this Report represents much more than just an exercise in accountability. It is a deliberate pause to look back, acknowledge what we have learned, and, above all, reaffirm the path we have chosen to build together. In 2025, we celebrate 55 years of history. A journey that began as a family venture and, over time, evolved into an organization with a global presence. This milestone prompted us to reflect on a fundamental truth: what sustains a company over time is not just its results, but the consistency with which it acts, makes decisions, and interacts with others every day. Trust is not something we can just declare; it is something we build. It is built through responsible decisions, long-term relationships, and the way we care for people and the environment in which we operate. These principles, rooted in our heritage, continue to serve as the foundation upon which we keep growing and evolving.
and execution move forward in alignment. These advancements reflect our commitment to evolving while maintaining the sense of responsibility that defines us.
Key achievements in 2025: Women’s representation in leadership positions reached 32%, an increase of 10 percentage points over the previous year. Additionally, the workplace climate rating rose to 88%, reflecting a 6-point improvement, while employee turnover fell to 21.5%. Looking back on the journey we have taken over the past 55 years also inspires us to look ahead. Today’s environment calls for organizations that are more accessible, more mindful of their impact, and more connected to people.
Therefore, in 2026 we will continue to deepen our transformation, focusing on achieving profitable and sustainable growth, putting people first, operating with discipline, and acting with social and environmental responsibility, in line with the principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs). We believe in transforming with intelligence and purpose, because only in this way can we turn opportunities into shared value and build a company that competes with talent, capital, and trust, without compromising the consistency between what we say and what we do. That is our true North and the guide that directs every decision we make.
This Report is part of that journey.
For us, sustainability is not a destination to be reached, but rather an ongoing way of doing business. It is reflected in the quality of what we deliver, in the efficiency with which we use resources, in our conscious efforts to reduce our environmental impact, in the development of talent, and in our ability to create shared value with all the groups we interact with. We also believe that building a business is, at its core, like planting a seed. Much of who we are today is the result of the hard work and vision of those who came before us. We are living in a time that others prepared through hard work and responsibility. This awareness reminds us that every decision we make today must strengthen the ground on which future generations will grow. In 2025, we took significant steps to strengthen our capabilities, modernize our operations, and foster a culture where strategy
It reflects who we are today and the solid foundations upon which we will continue to build the future.
Thank you for your trust, your commitment, and for being part of this story. We continue to transform, always with purpose.
Rodrigo Tona Director Ejecutivo, Grupo Ternova Ternova Packaging Sustainability Report 2025 | 9
INTRODUCTION
Message from the Family Celebrating 55 years as an organization means much more than just an anniversary. It is a testament to a journey that began with a courageous decision: to embark on this path with conviction, to take risks responsibly, and to build, day by day, a company designed to stand the test of time. The Ternova Group began as a family-owned business, driven by hard work, close relationships, and trust. From the very beginning, we had a clear conviction: to conduct business with integrity, create real value, and make decisions with lasting impact. This approach to business has guided every stage of our evolution and remains the foundation upon which we continue to grow. Over the years, we have learned that business growth is only genuine when it is built on a solid foundation: operational discipline, respect for people, a commitment to those who place their trust in us, and a responsible relationship with the communities where we operate. For us, sustainability is not an afterthought or a passing trend: it is an integral part of the way we think, make decisions, and manage the company. The progress we have made would not have been possible without the dedication, commitment, and trust of our shareholders, employees, partners, and customers. Together, we have built a resilient organization capable of adapting, innovating, and responding thoughtfully and responsibly to a constantly changing environment. Looking ahead, we reaffirm our commitment to strengthening a transparent, competitive, and sustainable business model that generates economic, social, and environmental value in a balanced manner. Our goal is to ensure the continuity of a strong and reliable company, one that is prepared not only to grow but also to continue delivering value to future generations. This Report summarizes the progress we have made and reflects a conviction that has guided us from day one: being responsible today is the best way to honor the future. Hugo Tona Arturo Tona
Ternova Packaging Sustainability Report 2025 | 10
TERNOVA GROUP
TERNOVA GROUP
Grupo Ternova Ternova is a corporate group with operations in the Americas and Southeast Asia. It began in El Salvador as a family-owned flexible packaging business and has grown to become a leader in
About Ternova Packaging The company’s story began with an Italian plastic injection molding machine in a rented warehouse in San Salvador. Over the years, Ternova Packaging grew and eventually established its factory in Ciudad Merliot, which laid the foundation for its production growth. As the business grew, this facility proved to be insufficient, prompting the opening of new production plants: one in Plan de la Laguna and the second plant, Maquilishuat, also in the department of La Libertad. Subsequently, Ternova
Ternova Packaging has
Recycling Plant
(Plan de la Laguna Industrial Zone, El Salvador)
Plan de la Laguna (Plan de la Laguna Industrial Zone, El Salvador)
sustainable and innovative solutions for two key sectors: Flexible packaging High-efficiency logistics centers
Packaging continued its expansion with the launch of the Recycling Plant, also located in Plan de la Laguna, which has strengthened its operational capacity and pellet reprocessing capabilities. The Recycling Plant is a tangible demonstration of the company’s commitment to sustainability, supporting circular economy infrastructure and marking a strategic step in its business model. Lastly, Ternova Packaging took on the challenge of expanding beyond the Americas into Asia by establishing a manufacturing plant in Vietnam, thereby consolidating its operations with five manufacturing plants operated by three companies across two continents.
5 production facilities, which are as follows:
Maquilishuat
Merliot 1 and 2
Vietnam
(Located at the turnaround on the highway to Puerto de La Libertad, El Salvador)
(Merliot Industrial Zone, El Salvador)
Tiên Du, Bắc Ninh
6 sales offices in Central America: In addition, the organization has
• • •
Guatemala Branch Office, Guatemala City Honduras Branch Office, Tegucigalpa Logistics and Distribution Office, El Salvador
• • •
Nicaragua Branch Office, Managua Costa Rica Branch Office Panama Branch Office
Ternova Packaging Sustainability Report 2025 | 12
TERNOVA GROUP
Ternova Packaging in Numbers Present in
5 manufacturing plants
4 continents and
6 sales offices
39 countries
This infrastructure allows the company to offer a personalized, customer-focused service. In these regions, 1,985 people make sustainable transformation a reality every day.
1,985
Total number of employees
VIETNAM
169
COSTA RICA
6
TERMOENCOGIBLES S.A. DE C.V.
1756
TERMOEXPORT S.A. DE C.V.
19
NICARAGUA
15
GUATEMALA
12
HONDURAS
8
TOTAL FOR TERNOVA PACKAGING
1,985
Ternova Packaging Sustainability Report 2025 | 13
TERNOVA GROUP
Global Partnerships and Commitments The expansion initiated by one family has been firmly established through a strategic vision that acknowledges the value of partnerships and alliances for global development. The contribution of each of these partnerships is essential to driving sustainable development and creating value for our stakeholders.
• • • • • • • • •
Asociación Salvadoreña de Industriales (ASI) Asociación Salvadoreña de la Industria del Plástico (ASIPLASTIC). Fundación para el Desarrollo Integral de los Trabajadores del Plástico (FUNDEPLAST). Cámara de Comercio e Industria de El Salvador (CAMARASAL). Cámara Americana de Comercio de El Salvador (AmCham). Corporación de Exportadores de El Salvador (COEXPORT). Consejo Empresarial Salvadoreño para el Desarrollo Sostenible (CEDES). Cooperación Alemana - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. Programa de las Naciones Unidas para el Medio Ambiente
• • • • • • • • • •
(PNUMA) Organización de las Naciones Unidas (ONU). Organización Internacional para las Migraciones (OIM). Comisión Ejecutiva Portuaria Autónoma (CEPA). Union Europea. Ministerio de Medio Ambiente y Recursos Naturales. Centro Escolar Francisco Morazán. Fundación Empresarial para la Acción Social (FUNDEMAS). Fundación Zoológica de El Salvador (FUNZEL). Fundación Naturaleza El Salvador. Asociación para el Desarrollo de Costa del Sol (ADESOL).
Global Commitments As a result of its global vision, Ternova Packaging has joined various initiatives in favor of sustainability, the environment, and people’s well-being. One of the most significant is the United Nations Global Compact and its ten principles of responsible business conduct, which are based on the Sustainable Development Goals (SDGs). This commitment serves as a solid, globally recognized guide and is one of the cornerstones of the company’s activities.
Ternova Packaging Sustainability Report 2025 | 14
TERNOVA GROUP
Philosophical Framework: Vision and Mission do not wait for the world to change us; instead, we lead the The Ternova Group's We transformation through a philosophy that stays true to our purpose. Philosophy
PURPOSE
MISSION
VISION
Transforming and innovating for a better world
To create smart, innovative solutions that help build prosperous and sustainable people, societies, and businesses.
To be international leaders in smart solutions and sustainable business that transform the world of tomorrow.
the Ternova Group, we believe that how we do things is just as important as the results VALUES At we achieve. These six values guide every decision and reflect the principles that have guided the organization over time:
INTEGRITY
CUSTOMER-ORIENTED
We always do the right thing.
We develop business models that maximize the value delivered to customers.
SUSTAINABILITY
COLLABORATIVE WORK:
We preserve life, care for the environment, and contribute to the prosperity of present and future generations.
We believe in the power of partnerships to create a positive impact.
EMPOWERING PEOPLE
INNOVATION
Our commitment to human well-being is and always will be unwavering.
We are constantly looking for new and better ways to do things.
Ternova Packaging Sustainability Report 2025 | 15
TERNOVA GROUP
Ternova Business System Ternova Business System is how the Group conducts its business. In 2024, the Ternova Business System (TBS) was redesigned; it serves as the strategic core of the organization and enables the formulation, implementation, and verification of the company’s strategy at all levels. This system not only integrates and optimizes frameworks, methodologies, techniques, and tools, but also leverages them to foster continuous and incremental value creation, always centered on
CF
customer needs. The TBS is essential for driving an ambidextrous culture of constant and adaptive improvement, ensuring that every action and decision is aligned with the strategy. By promoting a focus on efficiency and agile adaptation to market changes, the TBS ensures that the strategy is not only implemented effectively but also evolves over time to keep the Group at the forefront of creating shared value. The TBS enables a single system and a single culture—not just a corporate culture, but one that runs across the entire business.
CAPACIDADES Y MARCOS TRANSVERSALES
FE
CV
EA
VA
FORMULACIÓN ESTRATÉGICA
CREACIÓN DE VENTAJAS COMPETITIVAS
EJECUCIÓN AMBIDIESTRA
VERIFICACIÓN Y AJUSTES
Mediano - Largo plazo
Recursos y Capacidades
Generación de valor centrada en el cliente
Revisión del valor generado y los procesos
Ternova Packaging Sustainability Report 2025 | 16
TERNOVA GROUP
Business Units: Sustainable Solutions for Everyday Life
BUSINESS TO BUSINESS Ternova Packaging's B2B business unit provides custom packaging solutions to other companies, primarily in the food, personal care, household, pet food, and textile industries.
expanding the company’s presence in new regions such as North America, Central America, the Caribbean, and Southeast Asia, particularly in the food and personal care markets.
Ternova Packaging supports manufacturers and brands that require packaging with medium to high technical performance, amid growing interest in solutions with improved environmental performance. This includes the development of recyclable structures, those containing recycled content, or those designed to promote circularity, thereby meeting market expectations and addressing sustainability challenges. Within this framework, the growth strategy focuses on differentiation and cost leadership, with the goal of
Differentiation is based on offering technically advanced packaging with high added value in terms of sustainability, performance, and customization, supported by constant innovation in materials and structures, as well as technical co-creation with strategic partners. At the same time, cost leadership is achieved through operational efficiency, technological renewal, and specialized supplier management, which allows the company to offer competitive solutions—even for short runs—without compromising the quality or performance of the packaging.
Ternova manufactures packaging for the following industries and applications:
FOOD • Frozen foods • Refrigerated foods • Dry mixes
PERSONAL CARE • Toilet paper • Baby paper • Feminine care • Home care: • Detergents • Fabric softener • Soaps
TEXTILES
OTHERS
• Underwear • Sportswear
• Pet food
For all the product categories it serves, Ternova manufactures state-of-the-art flexible packaging made from
POLYETHYLENE
POLYPROPYLENE
POLYAMIDE
POLYESTER Ternova Packaging Sustainability Report 2025 | 17
TERNOVA GROUP
Business Units: Sustainable Solutions for Everyday Life Packaging Solutions for the
Mass Market Business Unit Mass Market offers a diverse product portfolio designed to meet the needs of the commercial, industrial, and residential sectors. This is achieved through various sales channels and in accordance with the strategy and conditions of each market in which the company operates.
Packaging is the only manufacturer in this category with a regional presence.
The company has a regional commercial and logistics presence in Central America, with manufacturing operations based in El Salvador. Ternova Packaging's business model is built on a robust supply chain that ensures consistent product availability, backed by high quality standards and market competitiveness. This operational strength is a cornerstone of its value proposition and a sustainable competitive advantage. Likewise, the company drives innovation in materials and the incorporation of post-consumer recycled (PCR) resin into its portfolio, with the goal of developing high-performance solutions that optimize the use of resources and contribute to a more responsible production model.
The company's product portfolio includes • Trash bags
• Zipp&Go bags • Rolls spools
• Clear bags • Plastic bags • Polyethylene bags • Pre-cut rolls
• Construction fabric • Irrigation tubes • Poopy Bags • Among others.
Ternova Packaging Sustainability Report 2025 | 18
TERNOVA GROUP
Awards Awards for Rodrigo Tona, CEO of the Ternova Group “Responsible Leadership”: Rodrigo Tona named one of El Salvador's most influential leaders and #12 in Central America by Forbes magazine.
Recognized as one of the “Innovators of Central America” by Estrategia y Negocios magazine.
Rodrigo Tona named an “Inspiring Leader” by SUMMA magazine.
Recognized as one of the “Executives with the Best Ethics” by SUMMA magazine
Corporate Recognitions for the Ternova Group • 2025 National Decent Work Award, presented by the Ministry of Labor of El Salvador for the second consecutive year. • Ranked #2 in the plastics sector in the Industrial Exporters ranking. • First place in the Hearing Conservation Program of the Occupational Health, Safety, and Environment Award, presented by 3M and Vidrí. • Nature Award, presented by the Center for Consumer Protection (CEDES). • Recognition of Ternova Leaders by MERCO (Corporate Reputation Business Monitor). • Ranked #1 in the MERCO Industry Ranking. • Ranked #34 in the MERCO El Salvador Ranking. • First Great Value El Salvador product recognized as “Market Leader.” • Twenty years of partnership between Hanes Brand Inc. and Ternova. • Ranked #8 on the list of the Happiest Companies in El Salvador, awarded by Vida y Éxito magazine. • Ranked third among companies with the “Best Talent in the Region” in El Salvador, as awarded by SUMMA magazine. • Ranked #22 among the TOP 25 most sustainable companies in Central America and the Dominican Republic, by SUMMA magazine. • Ranked #3 among Companies with the Best Human Capital, by SUMMA magazine. • Featured among the Giants of Central America and the Dominican Republic by SUMMA magazine. • Ranked #2 among Leading Companies in the Innovation Category in SUMMA magazine’s Special Anniversary Edition. • Ranked among the TOP 10 Diverse, Equitable, and Inclusive Companies by SUMMA magazine. • Ranked #4 on SUMMA magazine’s list of “Most Sustainable Companies.” • Ranked #15 in SUMMA magazine’s “Best Corporate Reputation” ranking. • Ranked #8 in SUMMA magazine’s “Best Employers” ranking. • Special mention for Ternova for its international growth in El Economista magazine. Ternova Packaging Sustainability Report 2025 | 19
SUSTAINABILITY
SUSTAINABILITY: An Evolving Legacy
Sustainability: An Evolving Legacy Given its family roots, the Ternova Group maintains a long-term vision that goes beyond the immediate pursuit of results. Integrity, a focus on people, and consistency in decision-making are values that, in an expansion context, allow the company to nurture its organizational culture and build trust with all stakeholders.
Stakeholders The Ternova Group views stakeholder management as a natural extension of its business practices. Stakeholders are the individuals, organizations, and communities that influence or are impacted by the company’s operations, and with whom the Group seeks to build long-term relationships based on trust, dialogue, and shared responsibility. This approach reflects the business family’s commitment to close, ethical, and sustainable management, focused on creating lasting value for the business, society, and the environment.
STAKEHOLDERS
RELATIONSHIP
MATERIAL TOPICS
PRESIDENCY
State
GOVERNMENT MINISTRIES
Ongoing communication between Ternova leaders and the trade unions.
LEGISLATIVE ASSEMBLY MUNICIPALITIES
• Business ethics and transparency • Regulatory and legal compliance • Environmental management
AUTONOMOUS INSTITUTIONS CUSTOMS
• • • •
• Talent management and capacity for transformation • Human rights and fair labor practices • Diversity and inclusion • Environmental management • Business ethics and transparency
• Employee engagement • Partnerships and agreements • Media • Social media
• Talent management and capacity for transformation • Human rights and fair labor practices • Diversity and inclusion • Environmental management • Business ethics and transparency
• Ongoing communication and engagement • Customer questionnaires and surveys • Partnerships and agreements • Technical consulting
• Circularity • Climate change • Water • Renewable energy • Business ethics and transparency • Human rights and fair labor practices
STEERING COMMITTEE
EMPLOYEES MIDDLE MANAGEMENT
EMPLOYEES
Accountability Risk analysis Training Feedback and information loops • Health monitoring • Forecasting
NGOS
SOCIETY
PLASTICS SECTOR ASSOCIATIONS AND SMES UNIVERSITIES HIGH-POTENTIAL CANDIDATES
CLIENTS
B2B CLIENTS B2C CLIENTS B2D CLIENTS
SUPPLIERS
LOGISTICS PROVIDERS RAW MATERIAL SUPPLIERS
SERVICE PROVIDERS INTERMEDIARIES
INVESTORS
BOARD OF DIRECTORS SHAREHOLDERS BANKS
• Consumption forecasts, technical information on supply requirements, purchasing schedules • Documentation • Audits
• Regular updates through annual reports and meetings
• Business ethics and transparency • Climate change • Circularity
• Business ethics and transparency • Regulatory and legal compliance • Talent management and capacity for transformation • Energy efficiency, water, and climate change
Ternova Packaging Sustainability Report 2025 | 21
SUSTAINABILITY: An Evolving Legacy
Materiality The Ternova Group's materiality process consists of four steps:
2.
1.
3.
4.
PRIORITIZATION
ADOPTION
IDENTIFICATION
VALIDATION
At this stage, all material issues are identified through a benchmarking exercise against peers, as well as against companies recognized as leaders in sustainability reporting and global organizations such as the World Business Council for Sustainable Development and the United Nations Global Compact.
IMPORTANCIA PARA LOS STAKEHOLDERS
4
Through research, interviews, surveys, and workshops with various stakeholders, input and supporting evidence are gathered to help identify the issues the company should prioritize.
All of the above is part of a sustainability strategy based on the ESG approach; in other words, beyond managing environmental aspects, it also involves managing social and governance aspects, establishing key indicators that help the company meet its goals.
Discussion and validation of material issues, and alignment of expectations with the goals and objectives for the prioritized issues. The Sustainability Committee and the Steering Committee jointly conduct this analysis.
MAPA DE CALOR: MATERIALIDAD ASG - TERNOVA PACKAGING X W
3
D
U V
K
2
L P Q
B
J O
TEMAS MATERIALES:
P
C
T
E I
R
1
F 0 0
1
2
3
4
A B C D E F I J K L O P Q R T U V W X -
Reducción emisiones carbono Eficiencia energética Energía renovable Administración del agua Residuos operacionales Biodiversidad Deforestación Circularidad Salud y seguridad Bienestar empleados Diversidad e inclusión Derechos humanos Gestión del talento Desarrollo socioeconómico Impacto comunidad Cadena de valor Marketing responsable Gobernanza Corporativa Ética y transparencia
IMPORTANCIA PARA LA CONTINUIDAD DEL NEGOCIO
BAJA PRIORIDAD
*The map shows only the most relevant topics.
ALTA PRIORIDAD MAPA DE CALOR: MATERIALIDAD ASG - TERNOVA PACKAGING IMPORTANCIA PARA LOS STAKEHOLDERS IMPORTANCIA PARA LA CONTINUIDAD DEL NEGOCIO
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SUSTAINABILITY: An Evolving Legacy
Sustainability Strategy with ESG Focus: Environmental, Social, and Governance Through a comprehensive context analysis, Ternova Packaging identified the environmental, social, and governance factors that affect the organization and its stakeholders. This analysis served as input for defining a clear roadmap with priorities, indicators, and concrete actions within the sustainability management system. Thus, the material issues identified were grouped into three strategic approaches, which form the core of a triple positive impact on economic growth, the environment, and social well-being.
ESQUEMA DE LA ESTRATEGIA DE SOSTENIBILIDAD Propósito
S Social
Transformar e innovar para un mundo mejor
Desarrollamos a las personas y sus comunidades Promovemos igualdad y desarrollo del talento, respetando los derechos humanos y garantizando condiciones de trabajo justas.
Enfoques Estratégicos
S SISTEMA ASG
A Ambiental Dejamos el mundo mejor de como lo encontramos Nos enfocamos en combatir el cambio climático y minimizar los desechos plásticos en todas las etapas de su ciclo de vida como parte de la responsabilidad ambiental.
Enfoques Estratégicos Reducción de emisiones de carbono Eficiencia energética Energía renovable Circularidad Agua
Diversidad e inclusión Derechos humanos y condiciones justas de trabajo Gestión de talento y capacidad de transformación
A
G Gobernanza G
Compromiso al cumplimiento normativo y ético Fomentamos una cultura organizacional basada en valores y principios morales que orientan nuestras acciones y decisiones comerciales.
Enfoques Estratégicos Ética empresarial y transparencia
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SUSTAINABILITY: An Evolving Legacy
TERNOVA and Its
Alignment with the
GOVERNANCE
SOCIAL
ENVIRONMENTAL
Material Topic
SDG
Commitment
Long-Term Goal
Reducing Carbon Emissions
Combate climate change, mitigating its impacts, and adapting to them.
Achieve net-zero emissions by 2050.
Circularity
Reduce plastic waste; promote reuse and recycling.
• Provide 100% recyclable materials • Incorporate at least 50% recycled content • Eliminate 100% of non-recyclable components
Water
Promote sustainable water management for a prosperous future.
Maintain, over time, the reduction targets for each production plant.
Energy Efficiency
Use energy efficiently and optimize business and innovation processes.
Maintain a 5% reduction in energy intensity over the next five years.
Diversity and Inclusion
Ensuring equal opportunities and decision-making from diverse perspectives.
• By 2030, have 50% of leadership positions filled by women. • Comply with the law regarding the number of people with disabilities in each of the company's operations. •
Human rights and Fair Working Conditions
Ensure respect and excellent working conditions in all aspects of the business.
Risk Mitigation Matrix Across the Value Chain Regarding Human Rights for 2030.
Talent Management and the Ability to Transform
Retain top talent and bridge skills gaps.
• Staff turnover in line with market trends • Attracting the best global talent • Having established successors
Business Ethics and Transparency
Establish an organizational culture rooted in values and principles that guide decision-making.
Business ethics system fully implemented by 2030.
Ternova Packaging Sustainability Report 2025 | 24
SUSTAINABILITY:
SOSTENIBILIDAD EN ACCIÓN
An Evolving Legacy
UN VISTAZO A LOS AVANCES En Ternova se trabaja para integrar la sostenibilidad en cada parte de la operación. Estos indicadores reflejan cómo se sigue avanzando en circularidad, eficiencia energética, descarbonización, gestión del agua y en el desarrollo del talento.
CIRCULARIDAD Diseño de productos con visión circular y fortalecimiento de las capacidades de reciclaje.
97% DEL PORTAFOLIO ESTÁ LISTO PARA RECICLAR (R2R).
EFICIENCIA ENERGÉTICA
Mejora de la eficiencia en el uso del agua en las operaciones.
DE MATERIAL RECICLADO PRODUCIDO EN LA PLANTA DE RECICLAJE.
DE PLÁSTICO RECUPERADO A TRAVÉS DE RECICLA 503.
KG
DESCARBONIZACIÓN Se continúa reduciendo la huella de carbono en distintas áreas de operación.
50% DE REDUCCIÓN EN EMISIONES DE ALCANCE 1 VS. 2021
DE REDUCCIÓN EN LA INTENSIDAD ENERGÉTICA.
GESTIÓN DEL AGUA
15.100
TON
DE CONTENIDO RECICLADO INCORPORADO EN LOS PRODUCTOS.
Se optimizan procesos para reducir la intensidad energética. 83%
14.055
41%
11%
DE REDUCCIÓN EN EMISIONES DE ALCANCE 2 VS. 2021
8%
DE REDUCCIÓN EN EMISIONES DE ALCANCE 3 VS. 2021
VIETNAM 2,403 m3/ton
EL SALVADOR 29.448 m3
CONSUMO TOTAL DE AGUA
CONSUMO TOTAL DE AGUA
3.13 m3/ton
0.53 m3/ton
INTENSIDAD DE CONSUMO DE AGUA
INTENSIDAD DE CONSUMO DE AGUA
NOTA: Ternova El Salvador utiliza únicamente el 30% del agua que consume, en promedio, una persona en El Salvador durante un año.
TALENTO HUMANO La sostenibilidad también se construye con personas.
DIVERSIDAD E INCLUSIÓN
Promoción de equipos diversos y espacios inclusivos. POSICIONES DE LIDERAZGO
88%
21,9%
CLIMA LABORAL
ROTACIÓN DE PERSONAL
4,6%
32% DE MUJERES EN
46% DE MUJERES EN LIDERAZGO
DE COLABORADORES CON DISCAPACIDAD CERTIFICADA
60%
ÉTICA
Fortalecimiento de una cultura organizacional basada en transparencia.
DE DENUNCIAS CERRADAS A TIEMPO
CONSTRUYENDO IMPACTO CON CADA DECISIÓN El verdadero norte de Ternova es competir por talento, capital y clientes para transformar oportunidades en valor compartido. Cada avance en sostenibilidad refleja una visión que integra innovación, eficiencia y desarrollo humano para construir una operación más responsable, resiliente y preparada para el futuro. Ternova Packaging Sustainability Report 2025 | 25
GOVERNANCE AND COMPLIANCE
GOVERNANCE AND COMPLIANCE
Governance and Compliance The Ternova Group's commitment to regulatory and ethical compliance fosters an organizational culture based on values and moral principles that guide its business actions and decisions..
Board of Directors 2025
Corporate Governance At Ternova Group, corporate governance is a key tool for making critical organizational decisions and for defining the best course of action to support the commitments made. Corporate governance is understood as the system that directs and controls the organization, ensuring responsible and transparent management aligned with long-term value creation. As a family-owned business, governance reflects the Ternova Group's founding values: ethics, integrity, a long-term vision, and responsibility toward people and communities. Under a Business to Human approach, people are placed at the center, ensuring that every decision is made with ethical judgment, human sensitivity, and a commitment to sustainable development.
Steering Committee
In 2025, the Board of Directors was comprised of the following members: Rodrigo Tona
Executive Director
Arturo Claudio Enea Tona Giolitti
Executive Director
Arturo Alfredo Tona Cristiani
Executive Director
Hugo Antonio Arturo Tona Giolitti
Executive Director
Hugo Eduardo Tona López
Executive Director
Carlos Cristián Leñero Testart
Non-Executive Director
José Carlos Bonilla Larreynaga
Non-Executive Director
It is responsible for aligning the strategy—guided by the true North—the portfolio, and execution to ensure priorities, resources, management discipline, and sustainable profit generation. It defines and safeguards the course, governs performance, oversees the TBS system, and ensures accountability.
Jorge Murillo
Juan Diego Tobar
Gabriela Flores
Raúl Aguilar
Vice President of the B2B Flexible Packaging Business Unit
Commercial Vice President of the Mass Market Business Unit
Corporate Finance Director
Corporate Supply Chain Director
Miguel Argueta
Rodrigo Samayoa
Marcella Romero
Luz Amanda Andreu
Corporate Director of Talent Management and Transformation
Director of Nneo Smart Properties
Legal and Corporate Affairs Manager
Corporate Director of Strategic Marketing
Rodrigo Tona
CEO
Ternova Packaging Sustainability Report 2025 | 27
GOVERNANCE AND COMPLIANCE
Sustainability Governance Comité de Sostenibilidad The Sustainability Committee ensures that the company’s operations comply with all established sustainability criteria. It is composed of and represents all of the Ternova Group’s business units, and also includes representatives from the supply chain, corporate reputation, and a sustainability expert. The Committee ensures continuous monitoring of environmental, social, and governance aspects; incorporates global trends and best practices; and guarantees transparent and consistent accountability regarding the organization’s sustainable performance.
The Committee serves as the body that connects all of the company's sustainability initiatives, integrates them, and steers them toward the common goal outlined in the sustainability strategy.
The Committee is coordinated by the Sustainability Project Manager, who reports regularly to the Group’s CEO and to the Board representative who chairs the Committee.
The 2025 Sustainability Committee was composed of the following members: 1. Hugo Eduardo Tona, Chair 2. Rodrigo Samayoa 3. Jorge Murillo 4. Raúl Aguilar
5. Juan Diego Tobar 6. Miguel Argueta 7. Marcella Romero
Champions of Sustainability Ternova Packaging promotes sustainability as an integral part of every process, empowering internal leaders to drive it forward through their daily roles. The Champions strengthen the Group’s Sustainability System, thereby fostering a culture of long-term continuous improvement.
Topic
Environmental
Social
Governance
Material Topic
Vietnam
El Salvador
Emissions reduction
Ms. Hồi
Denisse Benítez
Energy efficiency
Mr. Cường MA
Miguel Cárcamo
Circularity
Mr. Thanh Ms. Ngà, Mr. Thắng
Georgina Martínez Juan Carlos Reyes
Water
Ms. Lê
Ricardo Lozano
Diversity and inclusion
Ms. Nhung
Arely Jovel
Human talent management and the capacity for transformation
Business ethics and transparency
Flor Rivera
Nelson Novoa
The responsibilities assigned to this role include the following: Data quality assurance Proposing objectives to the Sustainability Committee Planning and implementing initiatives Reporting on progress Managing information for reports Promoting a culture of sustainability
Ternova Packaging Sustainability Report 2025 | 28
GOVERNANCE AND COMPLIANCE
Business Ethics In 2025, an internal communications plan titled “Heroes of Ethics” was developed and disseminated to promote and reinforce the principles of the Code of Ethics. This plan reached 100% of employees. The company provides employees, suppliers, and other stakeholders with a multi-channel platform that facilitates the reporting of any conduct that may violate the Code of Ethics. Its multi-channel nature ensures accessibility and confidentiality, strengthening the culture of compliance at all levels of the organization.
This system operates through the Ethics Committee and an internal team of investigators, and is further supported by Ethics Global, the platform’s international provider. Together with the Ternova Integrity platform, it establishes an ethical management model characterized by rigor, professionalism, and transparency in the analysis of each case.
In 2025
50 complaints were received 92 of which 92% were valid %
Of the total valid complaints,
60
%
30 10
were closed on time, and
% exceeded their response time due to their complexity. The remaining
%
is still under review
ESTADO DE LAS DENUNCIAS
DENUNCIAS RECIBIDAS
PROCEDENTES
IMPROCEDENTES
CERRADOS EN TIEMPO
CERRADOS FUERA DE TIEMPO ABIERTO
Ternova Packaging Sustainability Report 2025 | 29
GOVERNANCE AND COMPLIANCE
Transparency: Traceable Trust Certifications demonstrate, clearly and verifiably, that the way Ternova Packaging conducts its business today is aligned with the future it aims to create. In a family-owned business, transparency is part of the legacy.
standards that allows for the independent evaluation, documentation, and verification of the performance of its processes in environmental, social, and governance matters. These certifications ensure the traceability of information, consistency in decision-making, and continuous improvement, strengthening accountability to its stakeholders and the long-term sustainability of the business.
Ternova Packaging has a formal transparency and management control system based on international
Termoencogibles S.A. DE C.V. Certifications
SC6260-1 Sistema de Gestión de Calidad ISO9001:2015
FS-CER706286 Sistema de Gestión de Inocuidad
CN-CER-2023-60653 Certificación Carbono Neutro
Global Recycled Standard
Auditoría Smeta 4 Pilares
Green Certifier Supplier 2023 - 2025
Termoexport S.A. DE C.V. Certifications
Graphic Measures International Certification
Certificación Carbono Neutro
SLVSAL00065-1-4 Sistema de Gestión en Control y Seguridad BASC
Ternova Vietnam
“
“Leading management system certifications allow us to integrate ethics and continuous improvement into our daily operations. I am proud to contribute to the growth of a family-owned business where responsibility, trust, and caring for people are at the heart of how we work.
“
Pham Hoi, Management Systems
Ternova Packaging Sustainability Report 2025 | 30
ENVIRONMENTAL SYSTEM
ENVIRONMENTAL SYSTEM
Environmental System Sistema ambiental
One of Ternova Group's mottos is
LEAVE THE WORLD BETTER THAN WE FOUND IT
As such, the company focuses on combating climate change through adaptation and mitigation. Thus, it seeks to minimize plastic waste at every stage of its life cycle as part of its environmental responsibility. Resources are used responsibly, with a keen awareness of the organization’s impact on the environment. The environmental management system complies with 100% of legal requirements, and the company considers this to be the minimum standard to meet.
Ternova Packaging Sustainability Report 2025 | 32
ENVIRONMENTAL SYSTEM
Climate Action: Reducing Greenhouse Gas Emissions El Salvador In 2016, Ternova Packaging decided to take on a challenge that went beyond its day-to-day operations: addressing the climate impact of its business. The company set out to achieve carbon neutrality by 2020, and thanks to the collective commitment of its teams, it reached that goal in 2019 after obtaining the relevant certification. Some time later, the operation in Vietnam also reached this milestone, consolidating an effort that transcends borders and reaffirms a shared conviction across all production plants. To achieve this, the company developed its own tools to measure emissions throughout the entire value chain, in accordance with recognized international guidelines. Each year, this information is reviewed by an independent third party, ensuring
the transparency and accuracy of the results. In addition, Ternova Packaging has an internal system that identifies the main sources of emissions, drives reduction efforts, and promotes continuous improvements in all its processes. Today, this approach is evolving toward setting reduction targets, as the company is convinced that immediate and sustained actions over time generate a real impact. Ternova Packaging continues to work on projects that involve its entire value chain, because it knows that climate commitment is built day by day through responsible and consistent decisions. The following table presents historical Scope 1, 2, and 3 emissions starting from the base year 2021, even though the inventory has been calculated since 2018.
Emissions by Scope and Greenhouse Gas (2025) Scope
Total tCO,e
tCO2
tCH4
tNO2
tHFC
Scope 1
317.64
311.46
0.12
0.01
0.45
Scope 2
18,129.59
18,129.59
0.00
0.00
0.00
Scope 3
78,912.40
0.00
0.00
0.00
0.00
The base year was updated to 2021 because the organizational changes in that year better reflect the current production of operations in El Salvador. Scope 1 emissions are those directly generated by the operations themselves, which, in the case of Ternova Packaging, are as follows:
Combustion of diesel and gasoline in stationary sources
Fugitive emissions from the use of refrigerant gases
Fugitive emissions from the use of sulfur hexafluoride (SF6)
Emissions from the operation of the wastewater treatment plant (PTAR)
Fugitive emissions from the use of fire extinguishers Ternova Packaging Sustainability Report 2025 | 33
ENVIRONMENTAL SYSTEM
HISTORICAL SCOPE 1 EMISSIONS
SCOPE 1 Tons of CO2e
Thanks to the company's greenhouse gas management and mitigation plan, the graph shows a 48% reduction from the 2021 baseline year.
800 600 400 200 0
2021
2022
2023
2024
2025
Scope 1
SCOPE 2 HISTORICAL SCOPE 2 EMISSIONS 1500
Tons of CO2e
Emissions are those resulting from the energy purchased and consumed by the organization. It is important to revisit the update of the emission factor (EF) to understand the behavior of Scope 2 emissions (energy consumption). In 2019, the EF for that year—obtained from the International Energy Agency—was replaced with the EF for 2023 calculated by the European Investment Bank. This change represents a 53% increase in emissions compared to the 2019 emission factor. The variation is due to the fact that emissions associated with purchased energy depend on the national energy production mix for each year. Although Ternova Packaging has no control over El Salvador’s energy production, it has demonstrated efficient management in
1000
5000
0
2021
2022
Scope 2 (updated EF)
2023
2024
2025
Scope 2 (EF)
reducing emissions, remaining 11% below the 2021 baseline. Compared to last year, emissions increased by 5% due to a corresponding rise in production and a 1% decline in energy efficiency.
SCOPE 3 Scope 3 emissions are those that occur within the company’s value chain, outside of its direct operations and purchased energy consumption. Regarding indirect emissions associated with the supply chain, the company has managed to stabilize its performance and achieve an 8% reduction compared to the previous year, thanks to initiatives focused on logistics and distribution efficiency. This progress reflects the coordinated efforts between teams and strategic partners to optimize transportation and reduce impacts. With the aim of enhancing eco-efficiency, Ternova Packaging is implementing protocols and best practices designed to improve logistics operations,
including route optimization, collaboration with suppliers committed to climate-friendly standards, and the ongoing evaluation of alternatives to reduce the carbon footprint of its supply chain. These actions reinforce a proactive approach focused on continuous improvement across its entire extended operations. The project “Reduction of Greenhouse Gas Emissions in the Production of Plastic Made Primarily from Post-Consumer Recycled Plastics” offsets Scope 1 and 2 emissions for operations in El Salvador.
Ternova Packaging Sustainability Report 2025 | 34
ENVIRONMENTAL SYSTEM
HISTORICAL SCOPE 3 EMISSIONS 100000
75000
Tons of CO2e
The purpose of this project is the recovery and recycling of plastic materials (polypropylene and high- and low-density polyethylene), which prevents these materials from ending up in final disposal sites such as landfills; it also allows for the processing of this waste into intermediate or final products, thereby avoiding the production of virgin materials and reducing energy use in the process. This project was verified under the ISO 14064-2 standard in 2021 and generated reductions of 6,876.50 metric tons of CO2e for the year 2025. In total, it has generated reductions of 35,761.15 metric tons since 2021.
50000
25000
0 2021
2022
2023
2024
2025
scope 3
Beneficios de utilizar: materiales reciclados
Residuos
Disposición
Reciclaje
Polímero
“
Producción
In manufacturing, every energy choice and material decision matters. Addressing climate change means improving how we produce—more efficiently, more responsibly, and with respect for people and future generations.
“
I am proud to drive these actions within a family-owned company that values long-term impact over short-term gains.
Chung Nguyen, Country Manager
Ternova Packaging Sustainability Report 2025 | 35
ENVIRONMENTAL SYSTEM
During the base year of 2023, Ternova Vietnam began its carbon neutrality certification process in accordance with the ISO 14064 standard. In 2024, the company successfully transitioned to the ISO 14068 certification, establishing a more robust approach to climate change management and marking a significant milestone in its climate strategy.
EMISSIONS BY SCOPE AND GREENHOUSE GAS (2025) SCOPE
CO2 (T)
CH4 (T)
N2O (T)
HFC/HCFC (T)
TOTAL CO2e (T)
SCOPE 1
16.75
0.21
0.00
0.03
91.28
SCOPE 2
2,086.28
0.00
0.00
0.00
2,086.28
SCOPE 3
1,815.99
0.03
0.01
0.00
1,818.42
TOTAL
3,919.02
0.24
0.01
0.03
3,995.99
Distribution of Greenhouse Gas Emissions by Scope (2025)
2%
Historical Trends in Greenhouse Gas Emissions
SCOPE 1
46%
SCOPE 3
52%
T CO2e
SCOPE 2
4,100.00 4,100.00 3,900.00 3,800.00 3,700.00 3,600.00 3,500.00 3,400.00 3,300.00 3,200.00 3,100.00
3,987.63
3,995.99
3,421.50
Year
2023
2024
2025
The graph shows that net CO2e emissions from the plant in Vietnam are on an upward trend, which is mainly due to the following:
The increase in raw material consumption. The increase in production during 2024 and 2025. The corresponding growth in prior activities, such as the purchase of goods and services.
Meanwhile, net Scope 1 emissions in 2025 rose to 91.28 metric tons of CO2e. This increase was primarily due to the aging of the air conditioning systems, which experienced more frequent breakdowns and refrigerant leaks. As a result, a greater volume of R410A gas was required for maintenance and recharging, leading to an increase in direct emissions.
electricity consumption. Additionally, new product development projects were launched, which required a higher volume of virgin plastic resin. As a result, the increase in Scope 2 and 3 emissions led to an increase in the intensity of total emissions.
To better understand the plant’s overall performance, it is important to consider emissions intensity—that is, the tons of CO2e emitted per ton of finished product. From 2023 to 2024, emissions intensity increased by 17.9%, primarily due to the installation of a cooling system at the plant, which led to higher
However, in 2025, emissions intensity was reduced by 15.9% compared to 2024. Although total emissions remain high due to increased production volume, this demonstrates an improvement in emissions management and operational efficiency.
Ternova Packaging Sustainability Report 2025 | 36
ENVIRONMENTAL SYSTEM
Energy Efficiency: Responsible Growth Ternova Packaging maintains that a long-term vision begins with how resources are managed. During this period of growth, active and systematic monitoring of energy efficiency across all facilities has been a key performance indicator for the long-term strategy. This monitoring allows for the evaluation of each plant’s energy performance, the identification of opportunities for improvement in processes, machinery, and equipment, and the establishment of specific goals aimed at reducing electricity consumption and achieving more efficient and sustainable operations.
Electricity Consumption per Business Unit The energy performance of each plant was evaluated to identify opportunities for improvement in processes, machinery, and equipment, and to set goals for optimizing energy consumption. The Mass Market business unit accounts for 66% of total energy consumption, while the Recycling Plant accounts for 17%. Meanwhile, the B2B business unit showed positive progress in energy efficiency, reflecting the operational efforts and commitment of the teams to use resources more responsibly and efficiently, and now accounts for only 17% of energy consumption.
ENERGY CONSUMPTION
17% 17%
66%
Consumo masivo
Bussines to Bussines
Reciclado
Ternova Packaging Sustainability Report 2025 | 37
ENVIRONMENTAL SYSTEM
Electricity Consumption of Ternova Packaging El Salvador's Production Plants 50,000.00 45,000.00
43,610.52 38,666.16
Megawatts
40,000.00
36,310.07
35,000.00
36,662.63
37,129.82
30,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00 0.00
2021
2022
2023
2024
2025
In 2025, Ternova Packaging recorded a consolidated energy performance of 641 kW/t, compared to the 634 kW/t achieved at the end of 2024. This represents a -1.0% change in the energy efficiency indicator across all plants. This result underscores the importance of continuing to drive operational efficiency initiatives, especially in the face of challenging market conditions and operational changes. Maintaining a stable energy efficiency indicator, even amid increases in production levels, represents an ongoing challenge that is managed through continuous improvement and process optimization.
Ternova Vietnam • Installation of two humidifiers in the printing area, with the aim of optimizing relative humidity control during the process, reducing the operational load on the Air Handling Unit (AHU), and minimizing incidents related to the presence of water in the ink. • Specialized preventive maintenance performed by an external contractor, including the replacement of lubricating oil after seven years of operation, in order to optimize the system's efficiency. • Identifying and correcting energy leaks in operating systems by implementing corrective measures to reduce energy loss and improve energy efficiency.
As a result of these initiatives, the organization has managed to maintain a steady downward trend in electricity intensity per unit of finished product, demonstrating not only progress in reducing Scope 2 emissions in the short term, but also the establishment of more efficient and sustainable energy management over time. Specifically, the average electricity consumption required to produce one kilogram of finished product decreased from 6.46 kWh/kg in 2023 to 5.94 kWh/kg in 2024, subsequently achieving a significant improvement to 4.69 kWh/kg in 2025.
Energy Efficiency (2023 - 2025) 7.00
kWh/kg produced
Efforts to manage Scope 2 greenhouse gas emissions—associated with electricity consumption—have been implemented in a systematic and effective manner, guided by a commitment to continuous improvement in energy efficiency. Among the key measures implemented, the following stand out:
6.00 5.00 4.00 3.00 2.00 1.00 0.00
2023
2024
2025
Year
Ternova Packaging Sustainability Report 2025 | 38
ENVIRONMENTAL SYSTEM
Circular Economy In line with the principles of the United Nations Global Compact and its contribution to the Sustainable Development Goals, particularly SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action), circular economy is a priority material topic for the Ternova Group and a strategic enabler of its core business. The company manages circularity across its entire value chain, from design and material selection to recovery, recycling, and the incorporation of recycled content into new products. This approach is being implemented in a highly challenging global context, marked by the absence of a binding global agreement on plastics and by market conditions in which the price of virgin raw materials continues to affect the competitiveness of recycled materials. In this scenario, Ternova Packaging faced a 3,000-ton reduction in recycled material production. However, thanks to active portfolio management and the continuous search for market opportunities and synergies with brand owners and customers, the KPI for incorporating recycled content into new products decreased by only 1%, while also maintaining 97% of its portfolio ready to recycle (R2R). This performance reflects Ternova’s adaptability and commitment to strengthening the recycling infrastructure in El Salvador and establishing a resilient, long-term circular business model.
KPI
2025
Percentage of R2R products
97%
Percentage of recycled content incorporated into products
41%
Total amount of recycled material produced at the Recycling Plant
14,055.44 t
Ternova Packaging Sustainability Report 2025 | 39
ENVIRONMENTAL SYSTEM > CASOS DE ÉXITO
Success Stories Packaging Innovation Using Circularity Principles in the B2B Business Unit
Challenge #1 Help the client, a leader in the personal care industry, reduce its plastic footprint by 50% by 2030.
Solution Drawing on its extensive experience in manufacturing packaging made from post-consumer recycled (PCR) materials, Ternova Packaging provided technical support and developed a roadmap. This enabled the development of a sustainable packaging solution aligned with the client’s objectives and based on a triple bottom line approach. This solution involved the following aspects: • Customized PCR solutions, co-created with the client. • Comprehensive technical and sales support. • On-site visits to oversee testing and quality control.
Milestones High-quality graphics and color standards maintained without compromising operational efficiency. Establishment of a strategic partnership that accelerated development and reinforced their commitment to sustainable and responsible growth. Alignment with the client’s sustainability goals.
These projects confirm that circularity is an integral part of how we work at Ternova Packaging. I am proud to have contributed to this effort, and it has been a great opportunity to apply my skills to creating packaging with greater value and environmental efficiency. Guillermo Lebron Packaging Innovation Lead
Ternova Packaging Sustainability Report 2025 | 40
ENVIRONMENTAL SYSTEM > CASOS DE ÉXITO
Challenge #2 Develop a recyclable packaging structure for dry mix foods and beverage products without compromising product protection. Traditionally, this type of packaging requires aluminum-based materials to ensure water vapor and oxygen barriers, which are essential for preserving the product’s freshness and stability. The goal was to replace those structures with a D4R (designed-for-recycling) solution that would offer high barrier performance, sealing capability, and mechanical strength, while maintaining efficiency in existing packaging processes. Thus, a structure based on polypropylene and polyethylene was developed that combines recyclability with high functional performance. Although it is not a single-material product, its composition allows it to be integrated into down-graded recycling streams, representing a significant improvement over traditional aluminum-based structures. The use of high-barrier polypropylene enabled competitive levels of protection to be achieved, while maintaining excellent processability at the plant and reliable performance in the packaging of dry goods. The transition was supported by close technical guidance, which allowed for the implementation of a more sustainable solution while maintaining operational efficiency at all times.
Milestones Successful implementation of a high-barrier, aluminum-free D4R structure, for a client in the Caribbean, contributing to a smaller environmental footprint and greater recyclability.
Barrier performance and protection equivalent to traditional structures, ensuring product quality.
Successful implementation without modifications to the packaging lines, maintaining the client's production efficiency.
Ternova Packaging Sustainability Report 2025 | 41
ENVIRONMENTAL SYSTEM > PLANTA DE RECICLAJE
The Recycling Plant The Ternova Group operates one of the most modern recycling plants in Central America, equipped with technology that enables it to test, analyze, and accurately determine the specific characteristics of recycled materials. This ensures their suitability for various industrial applications and guarantees high standards of quality,
traceability, and performance in every application. Its installed capacity has enabled the incorporation of more than 200,000 tons of recycled material into the manufacture of new products since 2013, reaffirming the Group’s commitment to sustainability.
Tons Incorporated
Recycled Material Incorporated 250,000
60%
200,000
50%
150000
40% 30%
10000
20% 10%
5000 0 Material incorporado (ton) de % material al incorporado
9.69
2018
2019
2020
2021
2022
2023
2024
2025
14316
17208
18405
22548
20002
17447
17338
14241
41%
50%
52%
53%
53%
42%
36%
39%
0%
Ternova Packaging Sustainability Report 2025 | 42
ENVIRONMENTAL SYSTEM > PLANTA DE RECICLAJE
In 2025, the Recycling Plant achieved an internal customer satisfaction rate of 90.4%, which was 1.5 percentage points higher than the rate achieved in 2024.
Thanks to the in-house quality laboratory equipped with cutting-edge technology,
87 research analyses
were conducted using specialized DSC equipment, which enables the thermal identification of compounds contained in films to validate consumption options, processability, and new developments across the various business units. In 2024, the Total Preventive Management (TPM) program was launched, and by 2025, 50% of the implementation plan had been completed, ensuring the reliability and availability of equipment, which guarantees safe, efficient, and sustainable operations for personnel.
For us, circularity isn’t just a concept—it’s part of our daily practice. From design to delivery, we constantly challenge ourselves to reduce waste, extend the life cycle of materials, Gracias and create long-term value. al laboratorio interno de calidad con
alta innovación tecnológica, se realizaron 87 análisis investigativos utilizando el equipo I’m proud to help foster this mindset especializado DSC, que permite identificar at Ternova.térmicamente compuestos contenidos en películas para validar opciones de consumo, procesabilidad y nuevos desarrollos en las diferentes unidades de negocios. En 2024 arrancó el programa Total Preventive Management (Gestión Preventiva Total, o TPM por sus siglas en inglés)Ada y, enRodríguez 2025, se avanzó el 50 Head % del plan de implementación, of Recycling Operations asegurando la confiabilidad y disponibilidad de los equipos, lo que garantiza una operación segura para el personal, eficiente y sostenible. Ternova Packaging Sustainability Report 2025 | 43
ENVIRONMENTAL SYSTEM > CRÉDITOS PLÁSTICOS
Plastic Credits Ternova Packaging offers a plastic neutrality program through which it issues recycled plastic offset certificates. The company is supported from the calculation of its plastic footprint through to the verification of neutrality using the ISO 14040-14044
standard. This allows customers to make a significant contribution to the well-being of the planet by participating in the development of a recycling chain in El Salvador. This program operates very similarly to a carbon credit program.
1 Crédito plástico = 1 Ton de plástico reciclada Huella plástica del Brand Owner
Proceso de reciclaje TERNOVA
Emisión del crédito
Achievements By the end of 2025, Nestlé was supported in neutralizing 194 tons of its plastic footprint in El Salvador. This process was verified by a third party in accordance with the ISO 14044:2006 standard, ensuring its validity and rigor. Ternova Packaging also continues its partnership with Productos Alimenticios DIANA, with whom it has been working together to map its plastic footprint since 2023. Since then, critical points in plastic management have been identified. DIANA has taken a decisive step toward sustainability. Through the support of Ternova Packaging and its environmental credits, post-consumer plastic is managed responsibly at the Recycling Plant, preventing its impact on the environment.
Ternova Packaging Sustainability Report 2025 | 44
ENVIRONMENTAL SYSTEM > GESTIÓN DE RESIDUOS
Waste Management At Ternova Packaging, waste management starts with people. The company promotes a culture of source separation by providing clearly designated storage areas and ensuring that all waste follows a responsible flow until its final disposal. We work with three key streams: recyclable materials delivered to
recyclers, non-recyclable waste managed by certified treatment providers, and hazardous waste, handled under strict controls. Additionally, bio-infectious waste generated by the company’s clinic is managed separately and delivered for safe final disposal through the authorized entity TRANSRAE.
Gestión de residuos
Entrega a recicladores 1
Residuos orgánicos y no reciclables a disposición final
2
Separación de residuos desde fuente
Almacenamiento
Proveedores estratégicos 3
TYPE OF WASTE
UoM
2020
2021
2022
2023
2024
2025
RECYCLED
Tons
144.78
125.01
310.50
655.27
522.42
349.41
HAZARDOUS OR SPECIAL
Tons
445.15
170.99
427.09
735.60
243.50
938.74
Tons
144.82
141.47
5.4
5.65
6.48
72.89
Tons
0.10
0.15
0.17
0.1534
0.1426
COMMON WASTE
BIOHAZARDOUS WASTE
0.20
Ternova Packaging Sustainability Report 2025 | 45
ENVIRONMENTAL SYSTEM > GESTIÓN DE RESIDUOS
Waste Classification Note: In 2020 and 2021, waste management and control were not yet as robust. In 2022, tests began to be carried out to increase the amount of waste sent for co-processing (wastewater, Erema sludge, etc.). In the meantime, Ternova Packaging stored this waste until 2023, when it could finally be processed.
0.01%
Reciclados
5.35%
25.67%
Peligrosos o especiales
Desechos comunes
69.97%
Desechos bioinfecciosos
Ternova Vietnam Waste management is an integral part of the company’s operational approach and continuous improvement efforts. Starting in the base year of 2024, the measures implemented led to a reduction of 80 tons of waste, reflecting progress in waste
efficiency, segregation, and control. This result demonstrates the company’s commitment to responsible management aligned with its environmental objectives.
Waste Classification (2024–2025) 500000
kilograms
400000
300000
200000
100000
9.69
0
RECYCLING
HAZZARDOUS WASTE
DOMESTIC WASTE
TOTAL
TYPES OF EASTE
2024
2025
Ternova Packaging Sustainability Report 2025 | 46
ENVIRONMENTAL SYSTEM > RECICLA 503
Connecting People, Communities, and the Future Ternova’s “Recicla 503” initiative aims to promote environmental education, recycling, and circular economy in El Salvador by bringing together businesses, institutions, communities, and grassroots waste collectors. The initiative seeks to facilitate access to recycling, strengthen the culture of waste separation, and promote responsible material management through
an approach that addresses social, environmental, and economic impacts. These results demonstrate how Recicla 503 has established itself as an initiative that drives positive and measurable change, strengthening environmental awareness, circular economy, and long-term sustainability in El Salvador.
Ternova Packaging Sustainability Report 2025 | 47
ENVIRONMENTAL SYSTEM > RECICLA 503
In 2025, Recicla 503 achieved the following results: +370,000 KG
+350,000
+245,00 KG Over 245,000 kg of recyclable materials collected.
de CO2
Participation equivalent to over 350,000 people turning in materials.
Over 370,000 kg of CO2 emissions avoided as a result of recycling.
3,400 3,400 people reached through training and educational activities.
Cantidad de plástico flexible
Toneladas
19,035
20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
15,100 8,916 1,855
2,590
5,445
1,339
Año
2019
2020
2021
2022
2023
2024
2025
Cantidad de plástico flexible
Managing the environment responsibly means honoring our surroundings and our people. Being part of a company with family values drives us to make decisions today that ensure the well-being of future generations. Ricardo Lozano Head of Environment Management Ternova Packaging Sustainability Report 2025 | 48
ENVIRONMENTAL SYSTEM > RECICLA 503
The significant decrease shown in the graph is due to the suspension of glass collection, caused by the limited availability of recycling providers. Since glass is one of the heaviest and bulkiest materials collected during recycling drives, its exclusion had a direct impact on the decrease in the total number of tons managed.
deliver recyclable materials; therefore, as the volume of recovered materials decreases, the reported reach also decreases. Additionally, the previous year included the community service program at educational institutions, which significantly expanded the impact by involving students and communities, each of whom shared the message with more than forty people.
The change in the number of people reached is due to an adjustment in the reporting methodology. Currently, the indicator considers only those who
With the suspension of this initiative, the total number of people reached naturally decreased.
Cantidad de personas sensibilizadas
personas
11,415
12000 10000
9,000
10,588
10,321
8000 6000 4000
4,395
2000 0
1,269 720 2019
2020
2021
2022
año
2023
2024
2025
RECYCLABLE MATERIAL COLLECTION POINTS
13 Puntos permanentes
Shopping centers
Recicla 503 has 13 permanent collection points for recyclable materials in El Salvador, located at the following sites: Walmart: Santa Elena, Escalón, Constitución, Soyapango, San Miguel y Santa Ana Despensa de Don Juan: La Cima, Escalón Norte, Antiguo Cuscatlán, Holanda y Jardines de Merliot Shopping centers: Plaza Merliot y Soma Plaza Ternova Packaging Sustainability Report 2025 | 49
ENVIRONMENTAL SYSTEM
Environmental education and strategic partnerships The ECO RUN Project The ECO RUN, organized jointly with the European Union, is an environmentally focused race that promotes ecological awareness, civic engagement, and collaboration among businesses, volunteers, and the community. In
2025
300
10
20
runners
partner companies
volunteers
establishing itself as a platform that mobilizes people around sustainability. The event strengthened the positioning of the participating organizations and promoted key messages about recycling and environmental protection.
Francisco Morazán School Recycling Station In 2025, a recycling station was implemented at the Francisco Morazán School, directly benefiting 780 students through hands-on waste separation and management activities. The initiative also had an indirect impact on more than 3,000 people, including families and teachers, promoting environmental education and sustainable habits in the community.
El Majahual Beach Cleanup Recicla 503 participated in a beach cleanup event jointly with Fundación N1CO and the support of students from the Escuela Superior de Economía y Negocios (School of Economics and Business, ESEN). The event combined environmental volunteering and education, including a talk titled “Circular Economy,” to promote waste prevention, reuse, and recycling. With the participation of more than 200 students, the event had a direct impact on waste reduction and strengthened the environmental commitment of young leaders.
Municipality of San Salvador Este A training partnership was established with the Municipality of San Salvador Este, coordinated with its Inclusion Department, to promote recycling and proper waste management from a sustainability and social inclusion perspective. The initiative positioned recycling not only as an environmental action, but also as a practice that contributes to more orderly, safe, and accessible urban environments, improving the quality of life of people with disabilities and integrating accessibility criteria into municipal management. Ternova Packaging Sustainability Report 2025 | 50
ENVIRONMENTAL SYSTEM > CRÉDITOS PLÁSTICOS
Donations and Institutional Support: Partnerships that Make a Real Difference Throughout 2025, Recicla 503 continued to support environmental and social projects by making 21 product donations—including recycling stations and kits—to the following organizations: • • • • •
FUNDEMAS El Salvador Zoological Foundation (FUNZEL) Initiative for the Americas Fund—El Salvador (IAFES) Fondo Solidario para la Salud—FOSALUD (Solidarity Fund for Health) Naturaleza Foundation Nestlé
• • • • •
Bimbo Ministry of Foreign Affairs Recitodo N1CO Foundation Union of Waste Pickers of El Salvador (UDP de Recolectores de El Salvador)
These donations supported environmental education initiatives and cleanup efforts in various ecosystems across the country, including beaches and bodies of water such as Lake Ilopango, the beaches of El Majahual, El Zonte, Toluca, Los Almendros, and the San Diego estuary, among others, thereby strengthening environmental protection and community participation.
Ternova Packaging Sustainability Report 2025 | 51
ENVIRONMENTAL SYSTEM
Sustainable Water Management Ternova Packaging recognizes that water is a limited resource and one that is essential for sustainable development. While the nature of the plastics industry allows for relatively low water consumption, it is crucial to actively participate in its conservation—both to minimize the impact on aquifers and to ensure the smooth operation of daily activities for all employees. Notable among the specific measures implemented
are the regular environmental audits, conducted as part of the Environmental Management process, aimed at verifying the absence of leaks or waste, as well as the ongoing strengthening of the environmental management system and raising awareness among on-site staff. Through GEMBA sessions led by department heads, the operational team was educated on the efficient use of resources and the importance of preserving them.
El Salvador 9000 8500
metros cúbicos
A major challenge was identifying a leak at the Merliot 1 Plant in 2024, which led to high consumption that year. This incident spurred a continuous improvement project focused on monitoring water consumption at the plants in El Salvador, which included the purchase and installation of eight meters at strategic points throughout the operation. This investment strengthens the control system and will provide greater visibility into operational water consumption going forward, facilitating the early detection of deviations and fostering more preventive and efficient management. The organization closed out 2025 with unprecedented levels of water efficiency, achieving a significant reduction in total water consumption. These actions reinforce Ternova Packaging’s contribution to SDG 6, Target 6.4: Water-use efficiency.
8000 7500 7000 6500 6000 5500 Q1
Q2
Q3
Q1
Q4
Q2
Q3
Q4
Q1
Q2
2024
2023
Q3
Q4
2025
Año/Trimestre
Vietnam Water Consumption at the Ternova Vietnam Plant
6
m3/ton de producción
At Ternova Vietnam, the year 2024 was established as the baseline for water resource management. Through actions implemented in production processes, the company achieved a 36% reduction in water consumption during production and a 38% decrease in wastewater generation. These results demonstrate the effectiveness of operational optimization measures and reinforce the company’s commitment to efficient water use, contributing to more responsible and sustainable water management.
5 4 3 2 1 0 Consumo de Agua
Agua residual
(m3/ton de producción)
(m3/ton producida)
Baseline 2024
4.92
3.94
2025
3.125
2.5
Baseline 2024
2025
Año
Leading the way in water purity is more than a job; it is my dedication to a sustainable future. As this family-owned business expands, we remain rooted in our values, treating every client like family and every project as a personal mission to provide the world’s most essential resource. Mrs. Lê, HSE Coordinator Ternova Packaging Sustainability Report 2025 | 52
SOCIAL IMPACT
SOCIAL IMPACT
Compliance Checklist Artículo 1:
Todos nacemos libres e iguales
Artículo 2:
Ser libre de discriminación
Artículo 3:
Derecho a la vida
Artículo 4:
Ser libre de la esclavitud
Artículo 5:
Ser libre de la tortura
Artículo 6:
Derecho a ser reconocido como persona ante la ley
Artículo 7:
Derecho a la igualdad ante la ley
Artículo 12:
Derecho a la privacidad
Artículo 18:
Libertad de religión o de coincidencia
Artículo 19:
Libertad de opinión y expresión
Artículo 20:
Libertad de reunión y asociación
Artículo 22:
Derecho a la Seguridad Social
Artículo 23:
Derecho al trabajo
Artículo 24:
Derecho al descanso y al tiempo libre
Artículo 28:
Derecho a un mundo libre y justo
Artículo 29:
Deberes respecto a la comunidad
Artículo 30:
Los derechos son inalienables
Documentos de respaldo Código de ética Documento principal de conducta y valores corporativos.
Código ETI Ética y transparencia en la cadena de suministro.
Política de diversidad, inclusión y equidad
Reglamento interno de trabajo
Procedimiento de reclutamiento y selección
Política de compensación
Guardianes de la cultura
Ternova Packaging Sustainability Report 2025 | 54
SOCIAL IMPACT
Caring for life is part of who we are. That’s why safety isn’t something abstract—it’s personal. Luis Fernando Argueta, Occupational Safety Lead
Workplace Safety In 2025, the company prioritized occupational risk prevention by implementing specific measures focused on critical tasks, safe procedures, and awareness-raising initiatives. These measures strengthened self-care, operational discipline, and a culture of prevention among work teams.
Foster a culture where prevention is a natural part of work, anticipating risks before they materialize and promoting safe decisions in every task and process.
The company's commitment is clear: to ensure that every employee returns home safe, every day. To this end, the following objectives are being pursued:
Continuously train and raise awareness among employees, leaders, and contractors so they can identify risks, follow safe procedures, and take preventive action.
Encourage open communication and the timely reporting of unsafe conditions, unsafe acts, and near-miss incidents as key tools for continuous improvement.
The company believes that every preventive measure counts and that safety is built on closeness, trust, and shared responsibility. In 2026, the Ternova Group will continue to strengthen its safety culture with a human-centered approach, integrating the seven pillars of its culture—leadership, identity, role design, career management, compensation, community, and performance—into its productive plants and distribution centers, convinced that protecting all employees is the foundation for building sustainable, responsible, and future-ready organizations.
Ternova Packaging Sustainability Report 2025 | 55
SOCIAL IMPACT
ACCIDENT RATE OF 1.69, WITH AN INCREASE IN ACCIDENTS IN LOCATIONS WHERE NONE OCCURRED IN 2024
ZERO WORK-RELATED ACCIDENT AT AFFILIATES FACILITIES
1.69
0
1,700
98%
EMPLOYEES PARTICIPATED IN PREVENTIVE TRAINING
REDUCTION IN IDENTIFIED RISK FACTORS
PROGRAM COMPREHENSIVE INSURANCE PLAN
For its part, Ternova Vietnam also promotes a culture of prevention throughout its operations. Two workplace accidents were reported during the year, underscoring the importance of continuing to strengthen preventive measures. Systematic activities were implemented: Risk assessments Weekly KYT (Hazard Awareness Training) meetings Safety Week Internal training on the Manufacturing Restricted Substances List (MRSL) and chemical management External training in first aid and electrical safety Occupational health and safety group sessions Emergency drills These initiatives aim to anticipate risks, enhance staff skills, and foster a safe and resilient work environment.
Ternova Packaging Sustainability Report 2025 | 56
SOCIAL IMPACT
Total Health Ternova Packaging contributes to sustainable development by providing safe and healthy jobs, ensuring that its employees are protected from risks associated with their activities and the work environment. The company ensures access to timely and effective healthcare services and promotes healthy lifestyles that foster overall well-being and proper adaptation to the workplace. These actions align with several Sustainable Development Goals, including SDG 3: Good Health and Well-being, by promoting physical and mental health; SDG 5: Gender Equality, by ensuring equitable and discrimination-free working conditions;
SDG 8: Decent Work and Economic Growth (Target 8.8), by ensuring safe work environments; and SDG 10: Reduced Inequalities, by facilitating equitable access to opportunities and services within the organization. Likewise, internal and external partnerships that enhance health and safety management are strengthened, contributing to SDG 17: Partnerships for the Goals. This contributes to the creation of a work environment that prioritizes well-being, equity, and long-term sustainability.
Occupational Health Ternova Packaging promotes safe and healthy working conditions. To this end, the following health and safety assessments are conducted annually: • Thermal stress • Noise • Particulate matter • Air quality and volatile organic compounds • Lighting • Psychosocial risks
Such assessments help detect risks in the workplace and ensure they are either removed or managed. The health of workers exposed to occupational hazards is also monitored, and records are kept to compare their results year over year, thereby maximizing prevention efforts. In 2025, the following tests were conducted:
OCCUPATIONAL HEARING TESTS
1,406
representing 98.74% of the workforce exposed to noise. Only 1.6% of workers showed hearing changes greater than those expected for their age.
These tests were conducted on a group of 110 employees, of whom only KIDNEY AND 5% showed abnormalities, LIVER TESTS primarily related to their FOR WORKERS dietary habits and other EXPOSED TO lifestyle factors. SOLVENTS
110
SPIROMETRY TESTS
153
were performed on a population exposed to particulate matter and solvents: 94% of the results were normal, and 4.5% showed a mild obstructive pattern, primarily due to allergic conditions.
A total of 94 employees were evaluated; 84% showed no abnormalities, 7% had mild impairment due to an underlKIDNEY TESTS FOR ying condition, and only 2% were at risk of kidney damage. These tests WORKERS help reassign employees to suitable EXPOSED areas, reducing the risk of irreversible TO HEAT kidney damage.
94
Ternova Packaging Sustainability Report 2025 | 57
SOCIAL IMPACT
Medical and Dental Care The company provides access to timely and effective healthcare services through a partnership between Termoencogibles and the Salvadoran Social Security Institute (ISSS). This partnership enables:
1
2
Stable employment opportunities
Access to social security for all employees and their immediate families
3 Access to the company clinic, where the following services were provided:
4,106
1,884
6,936
1,972
1,500
251
medical consultations
dental consultations
prescriptions filled
laboratory tests
diagnostic tests
referrals to various medical specialties
4
5
6
Flu Vaccination Campaign through partnerships with the Ministry of Health and the ISSS: 669 doses administered.
Program to cover the cost of eyeglasses and dental prosthetics through strategic partnerships with optical stores and specialized laboratories.
Partnerships with blood banks to conduct donation campaigns, as well as screening tests for more than 660 employees per year.
7 74% of employees use the company’s health clinic (1,262 people). The on-site health clinic provides access to health services for all employees, regardless of their job position.
Other Health Campaigns for Working Women Ternova Packaging offers services and benefits specifically designed for female employees. In 2025, the following activities were conducted: • • •
Pap smear campaign Breast exam campaign Family planning assistance
Ternova Packaging Sustainability Report 2025 | 58
SOCIAL IMPACT
Total Productive Maintenance (TPM): A Culture of Excellence with a Human-Centered Approach
In 2022, Ternova Packaging embarked on a cultural transformation toward operational excellence by implementing the Total Productive Maintenance (TPM) program. More than just a methodology to achieve efficiency, the TPM reinforces the company’s identity as a family-owned company, promoting commitment, shared responsibility, and continuous improvement as the pillars for generating long-term sustainable value.
From a Business to Human perspective, the program places people at the heart of the operation, fostering safe, collaborative, and excellence-driven work environments. With the goal of achieving the “four zeros”—zero accidents, zero breakdowns, zero defects, and zero minor stoppages—the TPM integrates productivity and well-being, fostering an organizational culture that combines industrial performance with human commitment.
# DE PERSONAS EN PROGRAMA TPM (2022 - 2027)
#
DE PERSONAS
600 500
331
400 300 200 100
491
431
371
119 57
0.00
2022
2023
2024
2025
2026
2027
As of the end of 2025, there were 371 people enrolled in the TPM program across various business units. By 2027, the number of trained employees is projected to increase by 24%, in accordance with the plan that is currently being implemented.
The Prevention System is an approach within the TPM aimed at anticipating failures, defects, and risks before they occur through autonomous maintenance, root cause analysis, and continuous improvement. Its objective is to ensure safe, reliable, and efficient operations, minimizing accidents, downtime, and productivity losses. This system is monitored using a tag-based tracking system that records (i) the number of accident risks identified in a timely manner, (ii) risks that may lead to equipment failure, and (iii) skills transferred to the operator.
# TAG CLOSURE EFFECTIVENESS RATE (%) 98%
95%
95% 93%
2022
2023
2024
2025
Ternova Packaging Sustainability Report 2025 | 59
SOCIAL IMPACT
Talent Management and the Ability to Transform
Working to create a better work environment means working for the people. I am proud to contribute to a family-owned company that believes in relationships built on trust and respect. Arely Jovel, Head of Talent Management
Staff Turnover In 2025, the annual turnover rate stood at 21.3%, which equates to 282 voluntary separations (77%) and 105 involuntary separations (23%). This result, in line with projections, reflects strategic talent mobility management that ensures operational continuity while bringing on board profiles aligned with the
company’s culture and long-term vision. Analysis of these indicators strengthens decision-making regarding development, leadership, and well-being, and drives actions aimed at improving retention and consolidating an attractive value proposition for all employees.
AÑO
2020
2021
2022
2023
2024
2025
GLOBAL TURNOVER
15.10 %
13.02 %
14.70 %
20.86 %
24.53 %
21.30 %
TOTAL SEPARATIONS
279
261
237
372
441
387
VOLUNTARY TURNOVER
157 (56%)
192 (74%)
195 (82)
286 (77%)
325 (74%)
282 (73%)
INVOLUNTARY TURNOVER
122 (44%)
69 (26%)
42 (18%)
86 (23%)
86 (26%)
105 (27%)
Organizational Climate Organizational climate surveys have become an essential tool, as they provide a clear and structured understanding of the employees’ experience. The results from this year reflect outstanding performance and reaffirm our commitment to continuous improvement and to building a sustainable culture, where human talent is at the heart of the Group’s strategy. La nota de clima global aumentó 6 pp con respecto a la nota 2024.
HISTÓRICO DE RESULTADOS 96%
98%
99%
98%
86%
86%
83%
82%
88%
2021
2022
2023
2024
2025
90%
92%
91%
82%
83%
2018
2020
CLIMA
PARTICIPACIÓN
Ternova Packaging Sustainability Report 2025 | 60
SOCIAL IMPACT
Plans and Commitment to Culture in 2025 Each year, cultural engagement plans are developed for operational staff, focusing on the following topics:
RECOGNITION
DEVELOPMENT
LEADERSHIP
WORKPLACE CULTURE AND SAFETY PLAN
These plans reflect Ternova’s commitment to its people and to the culture that defines the company. Each initiative is specifically tailored to the needs of each business unit and plant, ensuring that every employee finds real opportunities to grow, lead, and be recognized. More than just initiatives, these are experiences that strengthen our identity and drive the creation of an environment where talent flourishes, innovation thrives, and the organization’s values become the driving force that connects everyone to a sustainable future full of possibilities.
Corporate Plans Leadership Academy for Supervisors
Leadership Academy for Senior Coordinators, Managers, and Directors
Institutional Recognition Program
Diversity and Inclusion: Culture, Retention, and Talent Acquisition
The company launches initiatives every year to strengthen the organizational culture and create environments and experiences that foster the holistic growth of employees and align them with the corporate strategy. In 2025, based on an analysis of internal indicators, key actions were defined and implemented to enhance leadership, recognize performance, and develop critical skills across all business units. These actions foster an inspiring work environment where human talent is the central focus and Ternova Group’s values are embodied in every interaction, ensuring the sustainability of its culture and long-term success. At Ternova Vietnam, continuous skills development is
also promoted as part of the long-term vision and efforts to strengthen internal talent. Throughout the year, strategic training programs focused on digital transformation, operational excellence, and leadership were promoted, including courses such as Artificial Intelligence for Everyone, AI Strategy for Business Leaders, Lean Black Belt, Lean Six Sigma, Project Management, Risk Management, Power BI, Effective Negotiation and Communication, and training in professional learning and development. These initiatives strengthen technical and leadership capabilities, increase organizational efficiency, and prepare teams to face the challenges of an increasingly dynamic and competitive business environment. Ternova Packaging Sustainability Report 2025 | 61
SOCIAL IMPACT
Guardians of Culture At Ternova Packaging, employee input is essential to strengthening the organizational culture and ensuring safe, efficient, and inclusive work environments. Through employee committees—known as “Guardians of Culture” and present at all five plants and two distribution
Infrastructure
centers—the company fosters spaces for dialogue and action that address employees’ real needs. In 2025, 42 sessions were held (three per year in each of the 14 committees), addressing requests in key categories such as the following:
General Services
Benefits
Communication/ information on relevant topics
Workplace Safety
Work tools and machinery
Asset Security
Thanks to this collaborative effort, 65% of requests were resolved, 20% are currently being processed, and only 15% were not approved for valid reasons. This response rate reflects the Group’s commitment to continuous improvement and the creation of work environments that prioritize well-being, safety, and productivity. The social approach focuses on the development of individuals and their communities, promoting equality, respect for human rights, and fair working conditions. These efforts have been recognized by various institutions, reaffirming that the Group’s culture is a strategic differentiator both within and outside the organization.
Ternova Packaging Sustainability Report 2025 | 62
SOCIAL IMPACT
Sistema ambiental Women in Leadership Positions At Ternova Packaging, diversity is a driver of innovation and sustainability. For this reason, the company promotes gender equality and women’s empowerment as part of its commitment to human rights and the Sustainable Development Goals, particularly SDG 5: Gender Equality and SDG 8: Decent Work and Economic Growth. For Ternova Packaging, the presence of women in leadership positions, in both administrative and strategic areas, reflects the conviction that an inclusive environment strengthens organizational culture and creates value for everyone. These leaders, with strategic vision and transformative capacity, inspire teams, drive innovation, and pave the way toward a more equitable company.
This commitment to equity also extends to operations. In 2025, progress was made in appointing women to key positions in production, maintenance, warehousing, and distribution—areas that had historically been staffed exclusively by men. This inclusion not only breaks down barriers but also strengthens diversity at all levels, as it brings new perspectives, skills, and leadership to processes critical to the company. Through these actions, Ternova Packaging reaffirms that equal opportunity is a fundamental pillar of sustainability and shared growth.
Women in Leadership Positions 140
50%
45%
120
40%
100
35% 30%
80
25%
60
20% 15%
40
10%
20
5%
0
2019
2020
2021
2022
WOMEN
2023
2024
2025
0
%
Their example serves as a source of inspiration for future generations and reaffirms that talent knows no bounds when opportunities are created.
Percentage of women in operational positions 30% 25%
25%
20% 15%
19%
21%
16%
10% 5% 0%
2022
2023
2024
2025
Ternova Packaging Sustainability Report 2025 | 63
SOCIAL IMPACT
Commitment to Inclusion and Well-Being
My commitment stems from the belief that human diversity drives innovation and sustainability, and in this family-owned company, I find the opportunity to open doors and turn differences into talent, knowing that opportunities change lives. Every day, I contribute by promoting the inclusion of diverse talent, strengthening our culture with a human touch, and recognizing each person’s potential. From my role, I can confirm that sustainability begins, grows, and endures thanks to people. José Balmore Diversity and Inclusion Lead
Employees with Disabilities This approach goes beyond hiring: the organization actively works to retain talent with disabilities, ensuring stability and growth through reasonable accommodative measures, wellness programs, and development opportunities. In addition, the company actively promotes the recruitment of diverse talents, believing that inclusion is a cornerstone of innovation and sustainability. This commitment is complemented by opportunities for active listening to address employees’ needs, ongoing monitoring of their work experience, and productivity measurement under a win-win model that benefits employees, the company, and society
NUMBER OF EMPLOYEES WITH DISABILITIES #
100
88
90 80
76
70
63
60 50 40 30
26
23
2018
2019
20
29
31
2021
2022
19
10 0
8 AÑO 2017
2020
2023
2024
2025
alike. In this way, the company builds an environment that not only promotes equity but also generates shared value and long-term sustainability.
Ternova Packaging Sustainability Report 2025 | 64
IMPACTO SOCIAL
Benefits
The Ternova Group firmly believes that the well-being of its employees is the foundation for building a sustainable, people-oriented, and responsible organization. The main initiatives implemented are designed to enhance employees’ quality of life, sense of belonging, and commitment.
Life Insurance
Health Insurance
Despensa familiar
This benefit is provided to all employees from their first day on the job, regardless of their area or position. In 2025, the program continued to provide coverage for 1,831 employees, ensuring financial support in the event of unforeseen circumstances.
Health insurance provides coverage for medical expenses for employees and their families based on their job category. This benefit applies to managers, supervisors, team leaders, and sales staff. In 2025, the program covered 167 insured individuals.
The Grocery Store is available to all employees, allowing them to purchase essential items at discounted prices—lower than they would pay on the open market—with the option to buy on credit. The company has grocery stores located in Plan de la Laguna and Merliot, which offer a wide variety of products, including those from the Termoencogibles brand. In 2025, an average of 1,000 employees per month took advantage of this benefit.
Use of Breastfeeding Rooms
“Tú Línea Amiga” Psychological Helpline
Employee Transportation
As part of its commitment to mental health and emotional well-being, the company maintains an active psychological support hotline through the “Tu Línea Amiga” (Your Friendly Helpline) program, in partnership with the Pro-Education Foundation of El Salvador (FUNPRES).
The company offers a subsidized transportation service that covers various municipalities in the western and central regions of the country, ensuring the safe and timely transportation of employees.
The company has four breastfeeding rooms that comply with the guidelines of the “Nacer con Cariño” (Birth with Love) Law and provide private, safe, and suitable spaces for expressing breast milk. Employees who use these rooms are allotted one hour of work time per day for their use and may choose the time that best suits their needs. All rooms are certified by the Ministry of Health. In 2025, eight employees benefited from this program.
This benefit provides confidential access to psychological therapy, with the first 15 sessions at no cost. During 2025, 274 psychological counseling sessions were reported.
In 2025, 13 routes remained active, benefiting 1,100 employees each month.
Gifts for Newborns
Pre-Maternity Leave
Soccer Tournament
In 2025, the company presented 58 gifts to employees as a token of support and solidarity during this significant life stage, thereby strengthening family well-being and a sense of belonging.
As part of the Ternova Group's commitment to the well-being of its female employees, the company offers two weeks of paid leave prior to the maternity leave period. This allows the expectant mother to prepare emotionally and physically for the birth of her child. In 2025, nine female employees took advantage of this benefit.
One of the recreational activities for employees is the soccer tournament, which runs from February through November and involves approximately 400 employees playing on different teams. The company provides the necessary facilities for soccer matches.
Company Celebrations
VIP Club: Partnerships
As part of its commitment to valuing human talent and fostering a positive organizational culture, the company regularly organizes various celebrations aimed at recognizing its employees and creating opportunities for connection and team building.
With the aim of contributing to employees’ financial well-being, the company offers a partnership program (VIP Club) that provides access to exclusive discounts through the employee ID card.
Monthly celebrations are held to commemorate the birthdays of operational and administrative employees. On average, the birthdays of 60 operational employees and 20 administrative employees are celebrated each month. Additionally, birthday celebrants are publicly congratulated on informational screens and via company emails.
Additionally, as part of its initiatives to support employees, the company periodically organizes clothing and footwear fairs, where they can purchase items at discounted prices, with the option of payment plans through payroll deductions.
The company also commemorates significant dates such as International Women’s Day, Mother’s Day, Father’s Day, and the company’s anniversary through activities designed to foster a positive work environment. During each of these events, employees received gifts as a gesture of appreciation from the company.
Vehicle inspection fairs are also held, giving employees the opportunity to have their vehicles inspected for free as a preventive measure, thereby contributing to road safety and the proper maintenance of their vehicles.
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SOCIAL IMPACT
Corporate Citizenship Ternova Group's corporate citizenship reflects its commitment to social welfare, environmental protection, and health through initiatives that actively involve its employees, strategic partners, and communities. Through donations, volunteering, and charitable campaigns, the Group contributes to strengthening the social fabric and promoting the country's sustainable development.
DONATIONS AND SUPPORT FOR SOCIAL AND ENVIRONMENTAL INITIATIVES Throughout 2025, various donations were made to support environmental, cultural, social, and community projects, helping to strengthen organizations that work to improve the well-being of different sectors of the population.
DONATION TO THE FUNDACIÓN NATURALEZA (NATURE FOUNDATION) As part of the Ternova Group’s environmental commitment, support was provided to this foundation through climate action initiatives aimed at strengthening nurseries with native species, reforestation efforts, and forest enrichment. This donation enabled the production and planting of 1,500 plants, as well as the annual monitoring of the treated areas, contributing to ecosystem restoration and climate change mitigation.
OTHER DONATIONS Mercedarian Friars
MARTE Museum
Hogar Padre Vito Guarato
Support was provided for social assistance programs focused on food distribution and care for vulnerable populations.
This donation contributed to the promotion of culture and access to art as part of social and educational development.
This institution, dedicated to caring for children, youth, and adults with multiple disabilities, received support to help improve their care and well-being.
Love Links Foundation
COEXPORT
Community Social Movement
This donation was aimed at supporting social welfare programs and community outreach.
This contribution supported initiatives aimed at strengthening the productive and social sectors.
This donation supported community initiatives focused on social development and civic engagement.
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SOCIAL IMPACT
ENVIRONMENTAL VOLUNTEERING
VOLUNTEERING AT TERNOVA VIETNAM
Cleanup of the Sapo River with the Nature Foundation Como parte de las acciones de voluntariado ambiental, varios colaboradores de Ternova participaron en una jornada de limpieza en el río Sapo, desarrollada en alianza con la Fundación Naturaleza. La actividad incluyó labores de limpieza del entorno natural y un componente educativo, donde los participantes conocieron el funcionamiento de viveros, así como el trabajo realizado en la Estación Biológica Río Sapo. La jornada contó con la participación de 17 colaboradores, lo que fortaleció la conciencia ambiental, el trabajo en equipo y el compromiso con la conservación de los ecosistemas naturales del país.
Ternova Vietnam strengthened its commitment to the environment through volunteer initiatives that encourage its employees to actively participate in caring for the environment. This year, the company organized two environmental volunteer activities aimed at raising awareness, fostering shared responsibility, and making a positive contribution to the communities where it operates. The activities carried out were the following: • Reforestation in Son La province. • Trash cleanup with the Tien Du youth group.
HEALTH VOLUNTEERING
Blood Drive In 2025, Ternova Packaging held six blood drives, with employees generously taking part in this important effort for corporate social responsibility and aiding the healthcare sector.
Results
600 donors 166 women 494 men
These drives indirectly benefited 1,980 people
and supported seven healthcare institutions:
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Rosales National Hospital Benjamín Bloom Pediatric Hospital The Red Cross El Salvador Hospital
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San Juan de Dios Hospital in Santa Ana Women’s National Hospital ISSS Medical-Surgical Hospital
These campaigns helped strengthen blood banks and contributed to the timely care of patients at various hospitals across the country.
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SOCIAL IMPACT
Message from the Chair of the Sustainability Committee Dear readers: This Sustainability Report reflects not only our 2025 results, but also the living history of a legacy that spans generations. Being part of the second generation of a family business means honoring the hard work and vision of those who started this journey, while also taking on the responsibility of guiding its evolution into the future. Every step we take is shaped by the lessons we’ve inherited and by the conviction that our history is a driving force behind sustainable growth. Sustainability has become the driving force that transforms business and shapes our decisions. We do not view it as an isolated goal, but rather as a deep, long-term commitment, where the company’s prosperity only makes sense if it goes hand in hand with the well-being of people and the environment around us. This approach allows us to look ahead with the certainty that every action we take today helps build the future we want to share. The Business to Human model strengthens this perspective by emphasizing that every decision, innovation, or project ultimately impacts individuals and communities—who should always remain as the center of our efforts. We are convinced that true business success is measured by the ability to generate human, social, and environmental value, and to leave a positive legacy that extends beyond our operations. Thus, we move forward with the certainty that sustainability, legacy, and humanity are the pillars guiding the Ternova Group toward a responsible and prosperous future.
With gratitude and optimism for the future, Hugo Eduardo Tona
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Acknowledgments We extend our sincere appreciation to all the leaders and teams whose efforts contributed to the development of this Sustainability Report. Their commitment, transparency, and willingness to share information and insights have been essential to producing a document that honestly reflects our progress, challenges, and opportunities. In a family-owned conglomerate like the Ternova Group, this effort is the result of collaborative work and a shared conviction that sustainability is built day by day, in every area and through every decision.
PACKAGING
SUSTAINABILITY REPORT