The role of the administrative, management and supervisory bodies

Organisation of the administrative, management and supervisory bodies

Corticeira Amorim's Board of Directors, which includes the Chief Sustainability Officer (CSO), is responsible for promoting ESG (Environmental, Social & Governance) topics in the business, and approving the strategic objectives and initiatives and priority actions.

The Corticeira Amorim's Executive Committee of the Board of Directors (ECBD) is responsible for overseeing sustainability issues and the integration of ESG issues into the business. The ECBD meets at least twice a year to analyse the approach to ESG issues, target setting, performance and reporting.

The Board of Directors has set up the E.S.G. Committee (ESGC), a permanent specialised internal committee, which is responsible for providing advice, monitoring, supervision and strategic guidance to Corticeira Amorim in the field of corporate governance, ethics and environmental and social pillars. The committee's attributions have been established in the respective Regulations. The ESGC is chaired by an independent non-executive member of the Board of Directors and is mainly composed of members of the Company's corporate bodies, including the CSO, and includes the Head of Corporate Sustainability (HCS) as a permanent guest.

The management of ESG issues is led by the CSO and coordinated by the HCS, together with the other support divisions, including Human Resources, Procurement and Energy, Shipping Logistics, Compliance, Tax, Risk Management, Information Technology and Systems, Consolidation and Reporting, Sustainability and Corporate Governance. These support divisions work together to ensure ESG activities are aligned and effective throughout the Company. Each Business Unit (BU) has a sustainability officer who reports directly to the BU's Chief Executive Officer (CEO), who is responsible for implementing initiatives and actions, monitoring and reporting on performance.

The Board of Directors has delegated powers to a ECBD for the management of business conduct issues. It also assigns specific competences, including monitoring and advising on these issues, to two specialised internal committees: the Risk Committee and the ESGC. These committees have specialised knowledge of business conduct issues and take part in ongoing training, ensuring their ability to deal with emerging challenges in this area. In this way, they play a crucial role in promoting responsible business conduct.

Governance structure

Board of Directors:

• Chairman: António Rios de Amorim
• Vice-President: Luisa Alexandra Ramos Amorim
• Members: Cristina Rios de Amorim, Nuno Filipe Vilela Barroca de Oliveira, Fernando José de Araújo dos Santos Almeida, Juan Ginesta Viñas, José Pereira Alves, João Nuno de Sottomayor Pinto de Castello Branco, Maria Cristina Galhardo Vilão, António Manuel Mónica Lopes de Seabra, Helena Sofia Silva Borges Salgado Fonseca Cerveira Pinto

Audit Committee:

• Chairman: José Pereira Alves
• Members: Maria Cristina Galhardo Vilão, António Manuel Mónica Lopes de Seabra, Helena Sofia Silva Borges Salgado Fonseca Cerveira Pinto
• Note: The Board of Directors has an Audit Committee composed exclusively of independent members.

Appointments, Evaluation and Remuneration Committee:

• Chairwoman: Maria Cristina Galhardo Vilão
• Members: Álvaro José da Silva, Rui Fernando Viana Pinto
• Note: The Appointments, Evaluation and Remuneration Committee was nominated by the General Meeting, pursuant to Article 399(1) of the Portuguese Companies Act and Article 19(4) of the Company's Articles of Association.

Impacts, risks and opportunities management

At the level of the Board of Directors and the ECBD, the main objective consists of an integrated vision of the factors considered critical, due to their profitability and/or impact, associated risks and opportunities, for the sustained creation of value for the Company and the shareholder. The Board of Directors is responsible for defining the risk strategy and policies, as well as the parameters for assessing the risk considered acceptable, with the support of the Risk Committee and the supervision of the Audit Committee (AUC).

Corticeira Amorim has an integrated multidisciplinary system aimed at identifying, assessing, prioritising, treating and monitoring impacts, risks and opportunities. This internal control system covers risk management, Compliance and internal auditing, and includes effective procedures for detecting and preventing irregularities. The system is continually improved, as a result of an internal analysis involving the Board of Directors, namely its ECBD, the Risk Committee and the various support areas, such as Risk Management, Compliance and Organisational Development, Strategic Planning and Sustainability, while support is also received from specialised external consultants when necessary.

Corticeira Amorim presents an integrated flow of governance of the risk management process, based on the concept of Lines of Defence:

• First line of defence: daily risk management and control activities
• Second line of defence: standardisation and monitoring of the main risks and the internal control system
• Third line of defence: supervision, inspection and assessment of the effectiveness of internal control

In the first line of defence, in operational terms, each BU has its own person responsible for monitoring the aspects considered critical, who reports directly to the CEO of the respective BU. Each BU is responsible for identifying, monitoring and updating the risks associated with its processes and businesses, as well as proposing control or mitigation measures for the risks identified.

In the second line of defence, Compliance is responsible for guaranteeing and controlling compliance with the regulations and restrictions defined by the Company. The Risk Committee is a permanent specialised internal committee, of an informative and consultative nature, appointed by the Board of Directors, composed mainly of members of the governing bodies and chaired by an independent, non-executive director, responsible for advising the Board of Directors on the follow-up and monitoring of Corticeira Amorim's risk and opportunity management activities.

In the third line of defence, the Internal Audit support division plays a crucial role in supervising and evaluating the effectiveness of the controls implemented, as well as planning and carrying out risk-based audits and performing tests to assess effective management and risk prevention.

Risk Committee competencies

The Risk Committee has the following competencies:

• Advise the Board of Directors on Corticeira Amorim's risk policy and, within that framework, on the appetite for general, current and future risks
• Evaluate and monitor the main risks inherent to Corticeira Amorim's activity, as well as the level of exposure to risk and its potential development
• Inform the AUC of the risks to which Corticeira Amorim is subject and the effectiveness of the respective mitigation plans, promoting the recommendations and reports requested by the Board of Directors and/or the AUC
• Assist the Board of Directors in supervising the execution of the risk strategy
• Discuss and issue the opinions and recommendations to the Board of Directors that it deems appropriate on risk strategies at the aggregate level and by risk type
• Propose the creation of mechanisms to ensure the implementation of processes, which promote compliance with the approved risk policies
• Review risk policies and procedures on an annual basis and report the results of this review to the Board of Directors
• Prepare an Annual Risk Management Report for the Board of Directors and the AUC

Approval of strategic objectives, initiatives and priority actions

The Board of Directors is responsible for approving the strategic objectives, strategic initiatives and priority actions, and the ECBD is responsible for implementing and monitoring them. The alignment of the entire Organisation is enhanced using the balanced scorecard methodology. The implementation of the initiatives and actions needed to fulfil the objectives defined in the short, medium and long term, as well as the monitoring and regular reporting of performance, are the responsibility of the teams in each BU, and they are also responsible for identifying and proposing actions to fulfil the objectives and targets defined, as well as identifying and proposing new challenges.

Governance structure for sustainability:

• Top management approval: Board of Directors
• Monitoring and implementation by top management: Executive Committee
• Proposal of strategic priorities and consolidation of sustainability indicators: Sustainability support area with the collaboration of other support areas
• Implementation of initiatives and actions, monitoring and internal reporting: Teams responsible for implementing sustainable development practices in each BU

Composition and diversity of the Board of Directors

In the current mandate (2024-2026), the Board of Directors consists of 11 members: five members are independent, representing 45.5% of the total members and 71.4% of the total non-executive members.

The Board of Directors delegated the Company's executive management to a ECBD composed of four members. The Board of Directors believes that this delegation of powers is in the Company's best interests, namely speeding up decision-making.

Corticeira Amorim believes that diversity criteria, which seek to combine and integrate the specific and different attributes of each person in the Company, are effectively a catalyst for innovation and a driver for attracting talent, making a decisive contribution to enriching the Organisation and promoting more flexible, creative and high-performance work environments.

The Board of Directors is composed of 36.4% people of the under-represented gender (women) and the AUC, composed of four independent members, has an equal composition.

Sustainability expertise and training

Taking into account the training, experience and effective regular monitoring of sustainability topics by the Board of Directors, a practice adopted since the Organisation began its public sustainability reporting (first issued in 2006), as well as the regular training provided to all current directors, Corticeira Amorim considers that the Board of Directors has the appropriate knowledge and competencies to oversee sustainability matters.

The specialised knowledge and/or relevant experience in sustainability topics of the following members should be highlighted:

• Cristina Rios de Amorim who, since 2021, has held the position of Chief Sustainable Officer and is a member of Corticeira Amorim's E.S.G. Committee; she has also been a member of the Board of Directors of the Business Council for Sustainable Development (BCSD) Portugal since 2016

• João Nuno de SottoMayor Pinto de Castello Branco who, from 2019 to March 2022, served as Chairman of the Board of the Business Council for Sustainable Development Portugal (BCSD) and was a member of the Executive Committee of the World Business Council for Sustainable Development (WBCSD) from 2019 to March 2022

• Helena Sofia Silva Borges Salgado Fonseca Cerveira Pinto, who completed the Corporate Governance certificate from INSEAD in 2019

Training provided to Board members

With regard to the training provided by Corticeira Amorim to all current members of the Board of Directors in recent years in these matters, the following should be highlighted:

• 2024: Corporate Sustainability Reporting Directive - Readiness check; Double Materiality - a transformative concept; ESG Indexes and Surveys; Criminal and administrative liability associated with Occupational Safety

• 2023: Challenges and opportunities related to ESG topics: CSRD, ESRS, climate risks and double materiality, value chain and sustainability due diligence, biodiversity; Cybersecurity

• 2022: Corticeira Amorim's Code of Business Ethics and Professional Conduct; Anti-Corruption Compliance Programme - implications of Decree-Law No. 109-E/2021, of 9 December, which creates the national anti-corruption mechanism and establishes the general regime for the prevention of corruption; Whistleblowing Procedure - implications of Law No. 93/2021, of 20 December, which establishes the general regime for the protection of whistleblowers

Workers' representation on the Board of Directors

For the current term of office (2024-2026), the Board of Directors does not include a workers' representative.

However, the Organisation values and promotes open dialogue and the collection of the concerns and aspirations of its workers. In each of the companies, meetings are held every six months between the management of each BU and the workers' representatives (workers' committees or trade union committees). At these meetings, issues related to the Company's activity are debated, Company management information is given and questions or topics concerning needs, facts or opinions that the representatives consider important to convey are presented by the workers' representatives.

Preparation and approval of sustainability reporting

The Board of Directors is responsible for preparing and submitting to the General Shareholders' Meeting the Consolidated Annual Report, including the Consolidated Sustainability Statement. The General Shareholders' Meeting analyses and approves these documents, including the Consolidated Sustainability Report, which are approved provided they receive a majority of favourable votes from the shareholders present or represented at the General Meeting.

Integration of sustainability-related performance in incentive schemes

Roles covered

Under the terms of the Remuneration Policy for the three-year period 2024-2026, as approved at the General Meeting of 22 April 2024, on the proposal of the Appointments, Assessment and Remuneration Committee (AERC), the remuneration of the executive members of the Board of Directors consists of a fixed remuneration plus a variable remuneration consisting of an annual variable remuneration and a three-year variable remuneration.

Purpose and governance

The award of the variable component of the remuneration is aimed at creating a competitive remuneration framework and implementing an incentive scheme that ensures the alignment of the interests of executive directors with the interests of the Company and its stakeholders, within a perspective of medium and long-term economic, social and environmental sustainability. The actual amount of the variable remuneration will always depend on the assessment to be carried out annually by the AERC (composed entirely of independent members) on the performance of the members of the Board of Directors.

Sustainability KPIs and weighting

The award of 20% of each of these variable remunerations (annual and three-year) is dependent on the achievement of the Sustainability Index | ESG criteria and targets established by Corticeira Amorim.

Annual variable remuneration (2024)

For 2024, the following KPIs were established:

• Percentage of green energy (electricity consumed from renewable or controlled or certified sources)
• Gender equality
• Energy efficiency
• Training
• Positive evolution of productivity

Award rules: If the achievement of targets is equal to or greater than 100%, the 20% will be awarded; if the achievement of targets is less than 100% but still equal to or greater than 80%, only half of this 20% will be awarded; if the achievement of targets is less than 80%, there will be no access to this 20% of the variable remuneration.

Three-year variable remuneration (2024-2026)

For the three-year period, thirteen objectives were defined, including:

• Variation in the water use intensity
• Increase in energy efficiency
• Percentage of energy consumed from controlled renewable sources
• Percentage of the weight of consumption of virgin non-renewable materials
• Rate of recovery of waste (not cork)
• Accidents at work
• Workers' access to training
• Women in management positions
• Women workers
• Participation in meetings of governing bodies and specialised committees
• Participation in training programmes
• Establishment and operation of specialised committees on risk and ESG issues
• Digital transition

Award rules: The same thresholds apply as for annual variable remuneration (100%, 80%, below 80%), with the average percentage achieved in the three years of the reference period being relevant.

Climate and water-related KPIs

Of the five annual KPIs defined by Corticeira Amorim for 2024, two are directly related to climate (percentage of green energy and energy efficiency) and therefore the percentage of annual variable remuneration associated with climate is 8%.

Of the thirteen objectives defined for the three-year variable remuneration, two, with a weight of 14%, are directly related to climate (energy efficiency and energy consumed from controlled renewable sources), so the percentage of the three-year variable remuneration associated with climate is 2.8%.

As far as water management is concerned, one of the thirteen objectives of the three-year remuneration, with a weight of 7%, is directly related to this topic (water use intensity), corresponding to a percentage of 1.4%.

Performance measurement

For the purposes of climate-related variable remuneration, performance in relation to energy efficiency and energy consumed from renewable sources is measured in kilowatt-hours (kWh) and in GHG and is compared with the targets set for the relevant period in section 3.3.1 Targets related to climate change mitigation and adaptation. Similarly, the performance relating to water use intensity is compared with the target for the relevant period in section 5.3.1 Targets related to water and marine resources.

2023 Performance and 2024 payout (Annual variable remuneration)

Consolidated Net Profit criterion

Sustainability | ESG - Short-Term Goals

It is therefore verified that the compliance level reached 100% in relation to the Consolidated Net Profit criterion, resulting in the determination of this remuneration component at 0.4% of the Consolidated Net Profit for the 2023 financial year. Since the criterion of annual positive progression in Training (employee access to training) was not met, the compliance level for the Short-Term Sustainability | ESG Objectives reached 80%, leading to the determination of this remuneration component at 0.05% of the Consolidated Net Profit.

Payment structure

The annual variable remuneration is paid in four instalments: the first 25% is to be paid by 31 July 2024 and the remaining 75% deferred for a period of three years, to be paid in three annual instalments, subject to the Company's positive performance during that period. The first such instalment will be paid on 31 July 2025, the second on 31 July 2026 and the final instalment on 31 July 2027.

Actual payouts in 2024

Annual variable remuneration calculated in 2024 (relative to performance in 2023):

• António Rios de Amorim (Chairperson): 236,876 euros, with 59,219 euros being paid in 2024
• Cristina Rios de Amorim (CFO): 140,628 euros, with 35,157 euros being paid in 2024
• Nuno Filipe Vilela Barroca de Oliveira (REM&DO): 111,652 euros, with 27,913 euros being paid in 2024
• Fernando José de Araújo dos Santos Almeida (Member): 88,492 euros, with 22,123 euros being paid in 2024

Payment in 2024 of 25% (second instalment) of the Variable Annual Remuneration calculated in 2023 (relating to the 2022 financial year):

• António Rios de Amorim (Chairperson): 48,362 euros
• Cristina Rios de Amorim (CFO): 32,445 euros
• Nuno Filipe Vilela Barroca de Oliveira (REM&DO): 25,896 euros
• Fernando José de Araújo dos Santos Almeida (Member): 22,116 euros

Multi-year variable remuneration (2022-2024)

Application of the 2022-2024 Remuneration Policy, combined with the transitional provision set out in paragraph 8 of the 2024-2026 Remuneration Policy, which establishes the applicable performance criteria for determining the variable multi-year remuneration to be awarded in 2024 (relating to performance in 2022 and 2023), applied proportionally for the 2022-2023 period:

Strategy, business model and value chain

Mission, vision and values

By promoting the cyclical extraction of cork without damaging the trees, Corticeira Amorim contributes to the viability of cork oak forests, providing numerous economic, environmental and social benefits. The Company's mission, vision and values reflect its belief in the uniqueness of cork as a natural material, its ambition for the future and its commitment to sustainable development. The Company's mission is simple: to combine knowledge, technology and innovation with this age-old material and promote an activity with a sustainable balance, generating added value for all stakeholders and the planet. These guidelines direct the strategic priorities for sustainable development, which incorporate economic, environmental and social concerns and define a clear roadmap for making strategic, operational and investment decisions, both now and in the future.

Business model

The business model implemented is founded on an integrated and vertical process that uses circular economy principles in order to minimise waste created. Key to operations, cork is obtained from a network of producers with whom the Organisation establishes medium- and long-term partnerships, promoting good forest management practices and thereby maximising the ecosystem services of the cork oak forests, namely the continuous production of good quality cork.

Description of products/services and key markets

Corticeira Amorim, whose origins date back to 1870, stands out as one of the most innovative and entrepreneurial multinationals of Portuguese origin and a world leader in cork processing, having recognised the vast potential of this 100% natural raw material early on and positioning cork as a material of choice in an increasingly open, informed and prosperous society. Operating under the motto "not just one market, not just one customer, not just one currency, not just one product", Corticeira Amorim has continuously expanded its portfolio, entering new markets and developing innovative products.

With a strong commitment to sustainability, which manifests itself in the development of value-added, nature-based solutions, the Company serves challenging and technological industries, including the aerospace, automotive, construction, sports, energy, interior design, and wine and spirits sectors. Under the management of the fourth generation of the Amorim family, which preserves values such as pride, ambition, initiative, sobriety and attitude, the Company invests significant sums in research, development and innovation (R&D+I) every year, including an investment in R&D+I of 10.2 million euros this year.

Business Units and significant groups of products/services

In 2024, Corticeira Amorim decided to implement a new organisational model, with the creation of the Amorim Cork Solutions Business Unit, which, on 1 January 2025, will include all "non-cork" operations. In formal terms, this organisation involved the merger by incorporation of the companies Amorim Cork Flooring, S.A. and Amorim Cork Insulation, S.A. (incorporated companies) in Amorim Cork Composites, S.A. (the acquiring company), to be renamed Amorim Cork Solutions, S.A. These BUs develop a wide portfolio of products for different markets and applications. In 2024, Corticeira Amorim recorded consolidated sales of 939.1 million euros, broken down as shown in the table below:

*Sales of the BU (includes inter BU transactions)

Significant markets and geographies

Corticeira Amorim has a global presence with several operations in 26 countries, spread across five continents. These include not only activities such as agroforestry management and industrial and raw material preparation activities, but also product distribution and strategic joint ventures. In addition, the Organisation has an extensive network of market agents, which plays a crucial role in extending its global reach. The Company's shares are listed on Euronext Lisbon.

In 2024, Corticeira Amorim reached approximately 27 thousand clients and 93.7% of sales outside Portugal, to more than 100 countries.

Key figures:

• €939.1 M consolidated sales
• 26 countries where it operates
• 3 agroforestry units
• 47 production units (PU)
• 56 distribution units (DU)
• 8 joint ventures
• 27,412 clients
• 3,011 suppliers
• 4,849 workers

Number of employees by geography

Detailed employee breakdown by geography is not provided in the SBM-1 disclosure, though it notes the Organisation has 4,849 workers across its operations in 26 countries.

Sustainability-related goals embedded in the business model

The definition of Corticeira Amorim's strategic sustainability priorities is developed by the Sustainability support area, with the collaboration of other support areas, and involves a materiality assessment that takes into account the Company's mission, vision and values, the evolution of the business, material impacts, risks and opportunities, as well as sustainability trends and benchmarks, changes in legislation, external commitments and internal policies, alignment with the Sustainable Development Goals (SDGs) and the needs and expectations of stakeholders.

Sustainable by nature Programme

In 2018, Corticeira Amorim aligned its objectives with the Sustainable Development Goals and laid the foundations for the Sustainable by nature programme, which establishes the ambition to be achieved by 2030. Acting ethically, transparently and responsibly, in favour of competitiveness and the creation of sustainable value for all stakeholders and the planet, is the motto of this Programme, revised in 2024, which is based on three fundamental pillars:

• Promote the environmental features of the products and the cork oak forest
• Promote well-being and equal opportunities for all
• Promote R&D+I and leverage economic performance

Currently, ten major objectives have been defined to guide the actions of the entire Organisation, focusing on:

• Climate change
• Biodiversity and ecosystems
• Circular economy
• Labour relations, employment and DEI
• Talent management
• Safety, health and well-being
• Value chain
• Customers and end-consumers
• Community/Society

The Sustainable by nature programme defines qualitative objectives and targets applied to the whole Organisation. It also sets quantitative targets, aligned with the Company's strategic cycles, applied to a selection of companies considered representative of Corticeira Amorim's sustainability footprint for each target.

Corticeira Amorim regularly monitors the actions set out in the sustainability programme, which includes performance indicators and control procedures that guarantee, with comparable levels of rigour and integrity, the reporting of priorities and progress in these matters.

Value chain description

Upstream value chain

Supply chain and transport and logistics:

The main raw material used in Corticeira Amorim's activities is cork – a renewable and biodegradable material, both 100% natural and recyclable, which is extracted without deforestation – and cork products account for around 83% of total revenue. In addition, it also uses other natural resources, namely wood, water and energy, as well as other subsidiary materials such as chemical products and plastics.

In 2024, Corticeira Amorim made purchases of cork and non-cork materials from 3,011 direct suppliers around the world; around 70% of the value of these purchases was in Portugal.

The Organisation considers it essential to have a stable chain of suppliers of raw materials, namely cork and transport services, which guarantees good sustainability practices, both at the point of origin and in the operating processes.

Cork raw material:

With regard to the raw material cork, the preparation and implementation of the Company's multi-annual procurement policy is the responsibility of the Amorim Florestal BU, ensuring the optimisation of the flow of all types of raw cork materials used in the other BUs for the production of their respective products and applications.

Cork is primarily purchased in the Mediterranean basin, in particular: Portugal, Spain, France, Italy, Morocco, Tunisia and Algeria, involving a large number of suppliers with whom the Organisation maintains medium-long term partnerships. It is also in these regions that Corticeira Amorim's processing operations are mainly located, thus promoting social and economic development in these areas. The geographical distribution of purchases, by purchase value, is as follows: 97.1% in Portugal and Spain, 2.6% in North Africa and 0.3% in other locations.

Non-cork products:

The management of suppliers and purchases of all non-cork products, services, contractors and transport is the responsibility of the cross-cutting support areas (Procurement & Energy and Shipping Logistics). From a global perspective, management focuses on the pursuit of excellence in the goods purchased and services provided, in line with the Organisation's strategic objectives, with the aim of progressively adding more value in terms of sustainability, while maintaining commitment, credibility, integrity (ethics) in the course of the Company's activities.

Own operations

Corticeira Amorim is the world's largest cork processing group and develops its business activity based on the bioeconomy, seeking to have a business activity that has a positive impact on ecosystems throughout the value chain. Among the most important benefits for the planet are: working to preserve cork oak forests and ecosystem services, developing eco-efficient processes to reduce the impact of operations, applying circular economy practices and offering nature-based products that help mitigate climate change. In addition to its production and distribution activities, Corticeira Amorim also carries out other activities which do not generate revenue but which have an impact in terms of sustainability, such as forestry management, the production of heat/cold from bioenergy, the renewal of water withdrawal, treatment and supply systems, the installation, maintenance and repair of energy-efficient equipment and the acquisition and renovation of buildings.

Downstream value chain

Corticeira Amorim works closely with customers to understand their needs, offer customised solutions, optimise processes, reduce waste and improve efficiency. This is done through a variety of communication channels, including dialogue, partnerships, education/awareness actions, support for initiatives, responding to surveys, among others.

Key inputs

Primary raw materials:

• Cork (accounts for around 83% of total revenue)
• Wood
• Water
• Energy
• Chemical products
• Plastics

Suppliers:

• 3,011 direct suppliers worldwide
• 70% of purchase value in Portugal
• Cork suppliers primarily in Mediterranean basin (97.1% in Portugal and Spain, 2.6% in North Africa, 0.3% other)

Key outputs

Products:

• Cork stoppers (5,304,400,000 stoppers sold/year)
• Floor & wall coverings (10,000,000 m2 installed capacity/year)
• Cork composites (199,000 blocks and cylinders produced/year)
• Cork insulation (60,000 m3 installed capacity/year)

Customers:

• Approximately 27,412 clients
• Sales to more than 100 countries
• 93.7% of sales outside Portugal

Interests and views of stakeholders

Identified key stakeholder groups

Corticeira Amorim has identified eight main groups of stakeholders:

• Shareholders and investors
• Customers
• Workers
• Official and governmental entities
• Suppliers
• Media
• Non-governmental organisations (NGOs) and the community
• Partners and civil society

Stakeholder engagement processes

Since 2009, Corticeira Amorim has been carrying out regular consultation and ongoing engagement processes with stakeholders, promoting their participation and integrating the results of the engagement processes, namely their concerns and expectations, into the definition of its sustainability strategy and materiality review. This procedure, which is also part of the due diligence process, informs the administrative, management and supervisory bodies, provides an understanding of external developments and the expectations of the market and other stakeholders, as well as anticipating new opportunities and risks, which is fundamental for validating and identifying strategic priorities.

In 2024, during the double materiality assessment process, a comprehensive stakeholder consultation was carried out. This is a crucial step in the double materiality assessment and, consequently, in defining the Company's sustainability strategy. As part of this process, relevant internal and external stakeholders were consulted through surveys and interviews.

Internal consultation:

The internal consultation process involved a total of 180 of the organisation's workers (33 via interview and 147 via questionnaire). A total of 20 internal consultation interviews were carried out, involving 33 topical experts/experts from different support areas: Human Resources; Shipping Logistics; Investor Relations; Compliance, Sustainability, Risk Management; Procurement and Energy; managers and teams in the areas of environment, health and safety, agroforestry and BU markets.

The process of internal consultation through interviews identified environmental issues such as climate change, the use of resources, pollution, water, biodiversity and ecosystems, and waste and the circular economy. The social pillar highlighted issues such as working conditions, relationships with customers and engagement with communities. At the governance level, the consulted stakeholders highlighted the importance of corporate culture and the relationship with suppliers.

External consultation:

The engagement with stakeholders included:

Communication channels and engagement frequency

Corticeira Amorim provides a wide range of communication channels for bilateral dialogue with different stakeholders:

Shareholders and investors:

• General Shareholders' Meeting
• Meetings with investors and analysts
• Periodic disclosure of evolution of the business activity
• Annual Report & Accounts
• Sustainability Report
• Regular meetings and contacts
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures
• Response to enquiries

Clients:

• Sustainability Report
• Environmental education/awareness actions
• Support for initiatives/projects
• Satisfaction surveys
• Participation in trade fairs and industry events
• Awareness and technical support programmes
• R&D+I collaboration protocols
• Publication of technical articles
• Working groups
• Regular meetings and contacts
• Various seminars and workshops
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures
• Response to enquiries

Workers:

• Sustainability Report
• Initiatives to defend cork oak forests
• Environmental education/awareness actions
• Support for initiatives/projects
• Satisfaction surveys
• Information panels at the premises
• Procedures and policies
• Intranet
• Performance management systems
• Various seminars and workshops
• In-house thematic and awareness-raising initiatives
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures
• Periodic team meetings
• Linkpeople (Human Resources ERP)

Official and governmental bodies:

• Periodic disclosure of evolution of the business activity
• Annual Report & Accounts
• Sustainability Report
• Initiatives to defend cork oak forests
• Participation in trade fairs and industry events
• R&D+I collaboration protocols
• Publication of technical articles
• Support for initiatives/projects
• Satisfaction surveys
• Awareness and technical support programmes
• Working groups
• Regular meetings and contacts
• General and sectoral meetings
• Various seminars and workshops
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures

Suppliers:

• Annual Report & Accounts
• Sustainability Report
• Environmental education/awareness actions
• Support for initiatives/projects
• Selection and evaluation of suppliers
• Participation in trade fairs and industry events
• Awareness and technical support programmes
• R&D+I collaboration protocols
• Publication of technical articles
• Working groups
• Regular meetings and contacts
• Various seminars and workshops
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures

Media:

• Periodic disclosure of evolution of the business activity
• Annual Report & Accounts
• Sustainability Report
• Support for initiatives/projects
• Participation in trade fairs and industry events
• Publication of technical articles
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures

NGOs and community:

• Periodic disclosure of evolution of the business activity
• Annual Report & Accounts
• Sustainability Report
• Initiatives to defend cork oak forests and the environment
• Environmental education/awareness actions
• Community engagement initiatives
• Support for initiatives/projects
• R&D+I collaboration protocols
• Working groups
• Regular meetings and contacts
• General and sectoral meetings
• Various seminars and workshops
• In-house thematic and awareness-raising initiatives
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures

Partners and civil society:

• Sustainability Report
• Initiatives to defend cork oak forests and the environment
• Environmental education/awareness actions
• Community engagement initiatives
• Support for initiatives/projects
• Participation in trade fairs and industry events
• R&D+I collaboration protocols
• Publication of technical articles
• Working groups
• Regular meetings and contacts
• General and sectoral meetings
• Various seminars and workshops
• Responses to external requests
• Visits to the cork oak forests and to Corticeira Amorim
• Website
• Social networks
• Newsletter and press releases
• Information brochures

Key concerns and views raised by stakeholders

The Company is committed to creating a working environment where workers are respected and valued and where they can develop their potential. The Company respects Human Rights and endeavours to incorporate the interests and points of view of workers in all its strategic decisions. In addition to the consultation carried out as part of the double materiality assessment, the Organisation regularly consults workers to gauge their concerns and opinions and uses this information to make decisions, improve its policies and practices and define appropriate actions, metrics and targets.

The Organisation also considers it very important to take into account the points of view of the workers in the value chain, the affected communities and the customers and end-consumers. To this end, it has a set of processes for dialogue with its stakeholders, including regular consultations.

Corticeira Amorim works closely with its customers to understand their needs, offer customised solutions, optimise processes, reduce waste and improve efficiency. This is done through a variety of communication channels, including dialogue, partnerships, education/awareness actions, support for initiatives, responding to surveys, among others.

Integration of stakeholder views into strategy and business model

Engagement with stakeholders is important for the Company, as understanding their concerns and expectations is fundamental for assessing and identifying strategic priorities. The Organisation carries out regular consultation processes and promotes bilateral dialogue through various communication channels to provide stakeholders with information to monitor the Organisation's approach and performance in relation to the actions, targets and metrics defined to mitigate the material impacts that affect them or could potentially affect them.

The results of stakeholder engagement are integrated into:

• The definition of its sustainability strategy and materiality review
• The double materiality assessment process
• Decision-making processes
• Improvement of policies and practices
• Definition of appropriate actions, metrics and targets

The Organisation regularly monitors stakeholder reach and effectiveness, seeking feedback and carrying out periodic updates to ensure clarity, accessibility and relevance.

Distinction between affected stakeholders and users of sustainability information

The Company recognises different categories of stakeholders:

Affected stakeholders:

• Own workforce (workers)
• Workers in the value chain
• Affected communities
• Customers and end-users/consumers

Users of sustainability information:

• Shareholders and investors
• Financial analysts
• Lenders (implicitly through financial disclosures)

The Organisation provides information to stakeholders who are or could potentially be affected by the activities of its companies. The aim is for stakeholders to be able to monitor the Organisation's approach and performance in relation to the actions, targets and metrics defined to mitigate the material impacts that affect them or could potentially affect them.

Dissemination of and access to policies is facilitated through the corporate intranet and the official website, promoting transparency and the involvement of workers and external stakeholders.

Description of the process to identify and assess material impacts, risks and opportunities

Overview

Double materiality is a concept that guides the identification of sustainability topics or information that should be included in the Consolidated Sustainability Statement. This concept seeks to identify significant actual or potential impacts on society and the environment in the short, medium or long term associated with an organisation's operations and its upstream and downstream value chain. The assessment also encompasses all sustainability risks and opportunities that could negatively or positively affect the development, performance and/or position of the Organisation in the short, medium or long term and, as such, increase or decrease its corporate value.

As a centrepiece in the preparation of this Consolidated Sustainability Statement in accordance with the ESRS, Corticeira Amorim carried out a double materiality assessment in October 2024. The project was led by the Sustainability transversal area, namely the CSO and the HCS, with the support of an independent external consultancy firm. It involved a core multidisciplinary team and, throughout the different phases, the participation of functional experts and topical experts from the different support areas and the BUs.

Scope of the double materiality assessment

The double materiality assessment comprised the identification and evaluation of material impacts, risks and opportunities related to ESG issues, taking into account not only Corticeira Amorim's own operations, but also its entire upstream and downstream value chain. To identify the IRO within own operations, all the Organisation's BUs and companies were considered, across all the geographies where they operate. For a comprehensive analysis of the value chain, the process considered the identification of potential impacts, risks and opportunities throughout all activities, from the extraction and transformation of raw materials to the recycling activities of the products marketed by the Organisation in a cradle-to-grave approach.

Step-by-step methodology

Corticeira Amorim's double materiality assessment process was divided into five phases:

1. Preparation and identification of potential ESG material topics and sub-topics

Based on the scope of the double materiality assessment and the stakeholders identified, topical experts and functional experts within the Organisation were identified to participate in the double materiality assessment process. The experts were identified on the basis of their experience in the respective area of sustainability or on the basis of their involvement in the overall management of the Organisation. The double materiality assessment methodology was defined to ensure compliance with the ESRS, as well as to maintain consistency with Corticeira Amorim's overall risk management process.

In this first phase of the process, a preliminary list of potentially material ESG topics was compiled, taking into account:

• Corticeira Amorim's previous materiality assessment
• Document analysis
• Analysis of global and sector trends and mega-trends
• Relevant sector documents and standards
• Benchmark analysis
• Initial meetings with identified functional experts and topical experts

2. Identification of impacts, risks and opportunities

Based on the potential material topics identified for Corticeira Amorim's business model, a long list of potential ESG IRO was compiled in accordance with the guidelines included in the ESRS. This identification also took into account the interests of stakeholders captured through the engagement process. The IRO identified were classified according to:

• Their time horizon
• Whether they were actual or potential
• Their location and origin in the value chain
• With regard to their negative impact on human rights

3. Impact and financial materiality assessment

The impacts, risks and opportunities identified were assessed by the topical experts on the basis of defined parameters. Prior to the assessment phase, the topical experts and functional experts took part in training on the double materiality methodology, carried out by the consultancy supporting the process, and each was assigned different topics for their assessment based on their area of specialisation. The topical experts assessed the impacts, risks and opportunities and were supported by the core project team throughout the process. They assessed the impacts quantitatively, considering the scales defined, and qualitatively, providing the reasoning behind their assessment. The topical experts also assessed the risks and opportunities taking into account the previously defined and agreed scales. After the initial evaluation, the core project team reviewed the evaluation, focussing on consistency and overall coherence, taking into account the consolidation of results.

4. Validation of preliminary results

After the assessment by the topical experts, the functional experts were asked to review and, if relevant, provide information on the preliminary results derived from the double materiality assessment. The functional experts were identified by the project team according to their expertise in the respective sustainability issue, their involvement related to the sustainability issue being assessed, or their more transversal view of the business compared to the topical experts involved in the assessment phase. The core project team reviewed and integrated the functional experts' comments and the preliminary results of the double materiality assessment at subtopic level, which were presented to the ECBD, the AUC and the Risk Commission for validation and calibration.

5. Approval of the double materiality assessment

After validation by the ECBD, the AUC and the Risk Committee, the results were presented to the Board of Directors for final approval. The Board of Directors was also presented with:

• Benchmarking data
• A comparison of material topics and the main changes compared to Corticeira Amorim's previous materiality
• The entire double materiality assessment process from benchmarking to IRO assessment
• The list of topical experts and functional experts who were involved

After identifying the material impacts, risks and opportunities, it was possible to identify the mandatory disclosure requirements in accordance with the ESRS.

Inputs to the assessment

Sector benchmarks and guidance:

• ESRS disclosure requirements and guidelines
• Explanatory guidelines published by the European Financial Reporting Advisory Group (EFRAG)
• SASB sector standards (Containers & Packaging, Building Products & Furnishings, Alcoholic Beverages and Forestry Management)
• Rating providers such as S&P Global (Containers & Packaging, Building Materials and Paper & Forest Products) and MSCI (Metal, Glass & Plastic Containers, Building Products and Forest Products)

Benchmark analysis:

• 46 peers from Corticeira Amorim's various areas of activity, divided into Competitors, Partners and Customers
• Analysis of material topics mentioned in sustainability reports and publicly available ESG information

Previous materiality:

• Corticeira Amorim's previous materiality assessment

Internal and external stakeholders:

• Functional experts and topical experts from different support areas and BUs
• Stakeholder consultation and engagement processes
• Document analysis

Characterisation of the value chain

Mapping the value chain was a fundamental step in the double materiality assessment. The process of mapping the value chain began with defining the organisational boundaries. The value chain was classified into three categories: upstream, own operations and downstream. The next steps involved:

• Mapping Corticeira Amorim's activities, including all the companies in the perimeter to be considered
• Identifying the main activities and players in the value chain
• Analysing dependencies
• Identifying potential sustainability issues in the different locations in the value chain and potentially affected stakeholders

This served as a basis for identifying potential impacts, risks and opportunities and provided guidance on potential critical points or stakeholders to consider and involve in the double materiality assessment process.

Scoring criteria for impact materiality

The topical experts assessed the impacts quantitatively, considering the scales defined, and qualitatively, providing the reasoning behind their assessment.

For negative impacts, the following criteria were considered:

• Scale: the severity of the impact
• Scope: the extent of the impact (how widespread it is)
• Irremediable character: whether the impact can be remedied

For positive impacts:

• Scale: the magnitude of the positive effect
• Scope: the extent of the positive impact

Likelihood: For potential impacts (both positive and negative), the likelihood of occurrence was also assessed.

Scoring criteria for financial materiality

The topical experts assessed risks and opportunities taking into account the previously defined and agreed scales:

• Magnitude of potential financial effects: The size of the financial impact
• Likelihood of occurrence: The probability that the risk or opportunity will materialize

Risks and opportunities were classified according to their time horizon, whether they were actual or potential, and their location and origin in the value chain.

Threshold for materiality

The impacts, risks and opportunities considered material were all those that had a score greater than or equal to 8 in impact materiality or a score greater than or equal to 3 in financial materiality.

Frequency / when last reviewed

The double materiality assessment was carried out in October 2024. This is the first ESRS-compliant double materiality assessment.

The double materiality assessment will be revisited at least once a year, with a view to preparing the annual sustainability statements, and the Board of Directors will again have to decide on the adequacy of the assessment in relation to the Company's organisational and operational structure.

If a potential new impact, risk or opportunity is identified, it will be analysed and worked on in working groups to assess its relevance. If relevant, the working groups meet with the person in charge of the area and those responsible for the respective BU to monitor and define a set of initiatives, actions, metrics and targets. These are then presented to the ECBD, which validates the materiality of the topic and the suitability of the proposed initiatives, actions, metrics and targets. If the ECBD considers the topic relevant and the initiatives, actions, targets and metrics pertinent, this will be assessed by the ESGC and then presented to the Board of Directors.

Use of value chain mapping in the process

Value chain mapping was a fundamental step in the double materiality assessment, as it provided an understanding of Corticeira Amorim's context, activities and business relations. This knowledge is also fundamental for sustainability reporting, since the result of mapping the value chain has made it possible to identify and classify potential impacts, risks and opportunities according to their location upstream, within the Organisation's own operations, or downstream.

The value chain was classified into three categories: upstream, own operations and downstream. The mapping involved:

• Mapping Corticeira Amorim's activities, including all the companies in the perimeter to be considered
• Identifying the main activities and players in the value chain
• Analysing dependencies
• Identifying potential sustainability issues in the different locations in the value chain and potentially affected stakeholders

For material impacts, risks and opportunities associated with the Company through its direct and indirect business relationships, information about them can be included, allowing stakeholders to have a comprehensive understanding of the sustainability topics related to Corticeira Amorim's activities.

Decision-making process and governance

To ensure that the results of the double materiality assessment were substantiated and that the assessment was based on an informed opinion, justifiable and, where possible, verifiable through internal and external data, three groups were involved in the assessment process:

1. Core project team: Members of the corporate sustainability team, including the HCS, and the head of the cross-cutting area of Risk Management

2. Topical experts: Identified on the basis of their specialised knowledge in their respective fields. They took part in the double materiality assessment individually or in groups, assessing impacts, risks and opportunities based on defined parameters.

3. Functional experts: Identified based on their experience of the topic and perspective of sustainability issues within business activities. They were asked to analyse the previous assessment made by the topical experts and provide their input.

Validation and approval process:

• The results were first analysed and validated by the ECBD
• After preliminary validation, the results were sent to the ESGC, the AUC and the Risk Committee for their comments and general assessment
• The results were communicated to the Board of Directors for validation and final approval
• These were taken into account when defining the new 2025-2027 strategic cycle

Additional information on specific assessments

Climate-related impacts, risks and opportunities

Corticeira Amorim identified its climate-related impacts, risks and opportunities within the double materiality assessment. Internal experts, who are responsible within the Organisation for climate-related topics, including GHG emissions, have identified and assessed impacts, risks and opportunities. These experts have access to GHG emissions data and are part of the process of defining actions and targets for reducing emissions. In addition, the management bodies analysed the identified and assessed climate-related impacts, risks and opportunities in terms of their relevance and consistency with the Organisation's short-, medium- and long-term strategies and ambitions.

Physical climate risk assessment:

Corticeira Amorim carried out a physical climate risk assessment in the context of the double materiality assessment and in line with the TCFD recommendations. The study was conducted across the various geographies where Corticeira Amorim operates and took into account all of Corticeira Amorim's activities. The assessment also included the identification of physical risks in the geographies where the world's main cork producers are located.

In order to assess Corticeira Amorim's exposure to climate risks, a range of chronic risks (such as temperature variations, heat stress, temperature variability, permafrost thawing, changing wind patterns, changing precipitation patterns and types, hydrological variability, ocean acidification, saline intrusion, sea level rise, water stress, coastal erosion, soil degradation, soil erosion, and solifluction) and acute risks (such as heatwaves, cold wave/frost, wildfires, cyclones, hurricanes, typhoons, storms, tornadoes, droughts, heavy precipitation, floods, glacial lake outburst, avalanches, landslide, subsidence, and earthquakes) were initially considered.

The risks related to forest fires, river flooding, urban flooding, earthquakes, water shortages, extreme heat, coastal flooding, landslides, tsunamis, volcanoes and cyclones were analysed in more depth using the ThinkHazard! tool.

The analysis continued with four main indicators: water stress, drought, extreme heat and forest fire. Using the online Aqueduct Water Atlas tools for the water stress and drought indicators, and ThinkHazard! for the extreme heat and forest fire indicators, two climate scenarios were considered: the 1.5 °C scenario and a high temperature scenario (corresponding to the IPCC's RCP 8.5 scenario), analysed in the medium and long term.

Transition risk assessment:

The analysis of transition risks took into account market, regulatory, reputational and technological risks. The identification of risks and opportunities in relation to climate change and transition risks was part of the process of identifying impacts, risks and opportunities in the double materiality assessment.

Pollution-related impacts, risks and opportunities

The identification of pollution-related impacts, risks and opportunities was part of the double materiality assessment. Topical experts on pollution were involved in the process of identifying and assessing pollution-related impacts, risks and opportunities. Their involvement has been fundamental as they have access to information and monitor the activities and processes likely to cause pollution across the Organisation's various companies. The identification of potential impacts related to pollution considered all Corticeira Amorim companies whose processes and activities cause or are likely to cause air, water or soil pollution.

Water and marine resources-related impacts, risks and opportunities

During the double materiality process, the impacts, risks and opportunities related to water and marine resources were assessed. To this end, the various topical experts responsible for monitoring the actions, metrics and targets related to the topic were involved.

Corticeira Amorim permanently monitors the risk of water stress in all the locations where it withdraws water. As a result of the latest assessment, 97.9% of its withdrawals are in areas of high or extreme water stress. This analysis was also integrated into the mapping of water and marine resources-related impacts, risks and opportunities.

Biodiversity and ecosystem-related impacts, risks and opportunities

The double materiality assessment involved assessing biodiversity and ecosystems-related impacts, risks and opportunities. The study focussed on agroforestry, raw material preparation and industrial activities in the various geographies where Corticeira Amorim operates.

The potential impacts of Corticeira Amorim's activities on Biodiversity were analysed using the IBAT tool, which integrates various classification systems into its database, such as the Natura 2000 Network and National Designation Zones.

In the process of identifying and classifying biodiversity-related impacts, and supported by the analysis of potential impacts on biodiversity, Corticeira Amorim identified and assessed the dependencies on biodiversity in its own operations and in the value chain. Corticeira Amorim's activities have been identified in sensitive areas from the point of view of biodiversity, with emphasis on the part of the agroforestry operation at Herdade da Baliza and a small part of Herdade da Baliza located in Natura 2000 protected areas, where mitigation measures have been implemented.

This analysis did not consider physical, transition or systemic risks and opportunities. Corticeira Amorim undertakes to carry out this analysis again in the future, including physical risks and opportunities, transition risks or systemic risks, in the identification of biodiversity-related impacts, risks and opportunities.

Resources use and circular economy-related impacts, risks and opportunities

The identification of impacts, risks and opportunities in relation to the use of resources and the circular economy was part of the double materiality assessment. To this end, the various topical experts in the field were involved in the process of identifying and evaluating IRO. The heads of the business areas that play a key role in managing resources and promoting the circular economy were also involved.

Business conduct-related impacts, risks and opportunities

The double materiality assessment also involved the identification of impacts, risks and opportunities related to Corticeira Amorim's business conduct. Topical experts, with specific knowledge of the Company's business conduct, were responsible for evaluating these topics based on the evaluation criteria presented. As the impacts, risks and opportunities of business conduct originate in Corticeira Amorim's operations and affect the value chain, the general process of double materiality assessment was sufficient for this assessment.

Sources of estimates and outcome uncertainty

In identifying and assessing impacts, risks and opportunities, the experience of topical experts and functional experts was essential. In the identification, evaluation and validation stages, internal stakeholders were encouraged to include relevant internal qualitative information and quantitative data sources. In addition, the cross-cutting area of Risk Management provided relevant data on potential risks and opportunities, taking into account the Organisation's overall risk management process.

Potential sustainability topics and subtopics were identified for the whole of Corticeira Amorim (consolidated), following a top-down approach, through available ESG-related information, with a focus on the sector.

Transition plan for climate change mitigation

Overview

Climate change is one of the strategic pillars of the Sustainable by nature programme and is also one of the most important issues for Corticeira Amorim's stakeholders. The Company is committed to the fight against climate change and believes that all companies have an important role to play in the transition to a sustainable, carbon-neutral economy.

The Company's aim is to reduce the environmental impact of its operations by adopting renewable, affordable and efficient solutions. To achieve this goal, the Company implements policies and actions aimed at reducing GHG emissions, increasing the use of renewable energies and improving energy efficiency. International guidelines, aligned with national and international public policy goals as well as relevant EU frameworks, including the European Union's goals for climate neutrality by 2050, formalised in the European Green Deal and associated regulations such as the EU Taxonomy, guide the Company's priorities. These guidelines define a clear roadmap for making strategic, operational and investment decisions, both now and in the future, in relation to the climate transition, especially considering the 1.5 °C global warming limit scenario. The Company's objectives thus represent an opportunity and a responsibility to align its strategy and business model with global decarbonisation efforts.

To achieve its objectives, as part of the Sustainable by nature programme, Corticeira Amorim has created a Transition Plan for climate change mitigation (Transition Plan) with quantitative targets. This plan focuses on decarbonisation through energy efficiency, the use of renewable energies and sustainable procurement. The targets include increasing energy efficiency, ensuring that a significant proportion of the energy consumed is renewable and reducing Scope 1 and 2 emissions by at least 2.5% per year until 2030, in line with the well below 2 ⁰C scenario. The Transition Plan currently does not include quantitative targets for scope 3, although a series of initiatives are considered to reduce Scope 3 emissions and set science-based targets over the next three years.

Scope

The Transition Plan applies to the sustainability perimeter of the Company. Information on the companies that form part of the sustainability targets perimeter is available in section 1.3.1 Strategy, business model and value chain.

Target year(s) for net zero / carbon neutral

The document does not explicitly specify a net zero or carbon neutrality target year. Portugal has set itself the target of becoming carbon neutral by 2050, which appears to guide Corticeira Amorim's approach, but the Company has not formally committed to a specific net zero target year in this disclosure.

Scope 1, 2, 3 reduction milestones

Scope 1 and 2:

• Target: Reduce Scope 1 and 2 emissions by at least 2.5% per year until 2030
• Alignment: In line with the well below 2 ⁰C scenario
• Baseline year: Not explicitly stated for the 2.5% annual reduction target

2021-2024 Plan Results:

• Baseline year: 2020
• Target for 2024: Controlled renewable energy ≥66.7%; Energy efficiency increase of 8.0% (2% per year for 4 years)
• Achieved 2024: Controlled renewable energy 69.4% (vs 66.3% in 2020); Energy efficiency +14.9% (vs 0% in 2020)

Scope 3:

• The Transition Plan currently does not include quantitative targets for scope 3
• Corticeira Amorim is working on an emissions reduction programme, with the aim of setting science-based targets over the next three years
• Scope 3 emissions represent 85.5% of the Organisation's total GHG emissions

Alignment with 1.5°C / SBTi validation status

• The Company's Scope 1 and 2 target is aligned with the well below 2 ⁰C scenario
• The Company plans to subscribe to science-based targets during the 2025-2027 strategic cycle, reinforcing its ambition to align its goals with the best scientific bases
• SBTi validation status: Not yet validated; commitment to set SBTi targets within the next three years

Key levers / decarbonization pillars

The Transition Plan is underpinned by three main decarbonisation levers:

1. Energy efficiency and the use of renewable energy sources

Corticeira Amorim has been actively implementing various projects and measures under the following axes, applicable to the sustainability perimeter targets:

• Consistently and continuously improving energy efficiency by 2% per year (energy efficiency project)
• Increasing the share of renewable sources in electricity consumption to 100% by 2030 (photovoltaic project)
• Use of renewable energy sources as the main source of energy, gradually eliminating fossil energy sources and guaranteeing controlled renewable energy consumption above 66.7% (renewable energy project - biomass)

Energy efficiency project: In 2024, around 45 energy efficiency measures were implemented, resulting from an investment of around €1.2 million, which achieved:

• 3.3% energy efficiency
• Around 53,800 MWh of energy saved
• Approximately 2,954 tCO₂eq avoided

Measures were divided into:

• Compressed air (19 measures)
• Thermal (14 measures)
• Process (6 measures)
• Motors (5 measures)
• Lighting (1 measure)

Photovoltaic project: Corticeira Amorim completed the installation of 44,500 solar panels on the roofs of its 18 industrial units across Portugal in 2024. This project represents an investment of more than €11 million, developed between 2021 and 2024, resulting in around 24 MWp of installed capacity. The energy generated will be used for self-consumption, ensuring that 20% of electricity comes from renewable sources, controlled by the Company.

Renewable energy project - biomass: In 2024, €2.3 million were disbursed in this project, mainly in establishments in Portugal, spread over 14 measures, which resulted in 2,700 tCO₂eq avoided. Various initiatives include: (i) optimising the yield of cork dust for burning; (ii) converting boilers to burn other biomass (olive stones, almond shells or pellets); (iii) acquiring new, more efficient boilers; and (iv) optimising the thermal energy distribution network.

2. Sustainable procurement

Corticeira Amorim plans to:

• Replace carbon-intensive raw materials with more sustainable alternatives
• Implement a sustainable packaging and logistics project to reduce the impact of GHG emissions associated with its value chain (sustainable packaging project)
• Select suppliers in accordance with GHG emission reduction targets and plans, encouraging them to adopt more sustainable practices

Scope 3 emissions reduction programme: For categories 1 and 4 (purchase of goods and services and upstream transport and distribution), Corticeira Amorim has defined three lines of intervention:

1. Reduction: replacing carbon-intensive raw materials with more sustainable alternatives and taking action regarding packaging and logistics
2. Measurement: increasing the coverage of organisational boundaries in carbon footprint calculation, improving methodologies, and increasing the percentage of emissions calculated from data obtained directly from suppliers
3. Suppliers: selecting suppliers in accordance with their GHG emission reduction targets and plans and encouraging them to adopt more sustainable practices

3. Forestry interventions and ecosystem services

Good management and the promotion of ecosystem services are fundamental to carbon sequestration. Through the Forestry Intervention Project and good forest management practices, Corticeira Amorim contributes to:

• Sequestration and storage of CO₂ resulting from good management practices in cork oak forests
• Preservation and restoration of key ecosystems for carbon sequestration
• Afforestation, reforestation and densification activities

CapEx / investment commitments

Climate change mitigation investments (2024):

• Total climate-related CAPEX and OPEX: €5.6 million
• Energy efficiency measures: €1.2 million
• Photovoltaic project (2021-2024 total): >€11 million
• Biomass/renewable energy project: €2.3 million (2024)

Sustainable finance:

• Green Bonds (2020): €40 million total issued
  • €3.5 million allocated to renewable energy and waste conversion category (biomass equipment)
• Green commercial paper emissions programme (2021-2026): €11.6 million for purchase of photovoltaic panels
• Sustainability-linked commercial paper programmes:
  • €20 million (2021-2024)
  • €25 million (2024-2027)
  • €30 million (2024-2029)
  • Financing Company activity, including objectives of increasing renewable energies and energy efficiency

Forestry investments:

• Investment in forestry properties: €56.9 million
• Green Bonds allocation to environmentally sustainable management of living natural resources: €6.1 million
• Green Commercial Paper programmes (2022-2027 and 2022-2029): €20 million + €35 million for Forestry Intervention Project

EU Taxonomy alignment:

Locked-in emissions and stranded asset analysis

Given the nature of the business model and the assets impacted by the transition strategy, there are no material locked-in GHG emissions that could compromise the objectives and targets for reducing greenhouse gas emissions set by the Organisation.

The limited existence of emission-intensive assets (locked-in emissions) reinforces Corticeira Amorim's ability to maintain carbon neutrality. The business model is based on low-carbon assets and processes, as well as a portfolio of products with a low-carbon footprint.

Use of carbon credits / removals

The Organisation identified the potential use of carbon credits:

Carbon credit opportunities:

• High-carbon sequestration potential of cork oak forests
• Possible trading of carbon credits associated with Corticeira Amorim's own operations and those of its suppliers
• Access to capital and new market segments through carbon credit trading (identified as a material opportunity)

Carbon credit projects:

• Cork oak plantations carried out between 2020 and 2023 on properties managed by Amorim AgroFlorestal have been included in a project to emit carbon credits
• Estimated contribution: approximately 500,000 carbon credits over a 100-year period
• Creation of a model that allows scale gains in the sale of carbon credits to small forest producers

Offsetting potential:

• In order to meet the carbon neutrality targets set for 2050, additional measures may be needed to offset the remaining GHG emissions, namely the purchase of carbon credits, which could increase costs for the Organisation

Governance and supervision

The Transition Plan has been approved by the ECBD (Executive Committee of the Board of Directors) and is integrated and aligned with the Company's global strategy and financial planning, ensuring that the strategy and business models are compatible with the transition to a sustainable economy. This plan is regularly reviewed to ensure that it is adapted to changes in the market and the Company's needs. The effectiveness of the plan is assessed on an ongoing basis, comparing the KPI with the targets set in the Sustainable by nature programme.

Partnerships and commitments

Corticeira Amorim participates in:

• UN Global Compact
• Porto Climate Pact
• Porto Protocol
• 50 Sustainability & Climate Leaders project

These reinforce its commitment to the United Nations 2030 Agenda.

Future prospects

Corticeira Amorim is implementing its Transition Plan for climate change in line with its 2030 commitment and ambition. In 2025, it will continue the actions already underway. The review of the double materiality assessment identified new material impacts, risks and opportunities related to climate change. These will be incorporated into the new 2025-2027 strategic cycle, where they will be analysed and, if relevant, actions will be proposed, also taking into account the increase in the sustainability perimeter which, as of 2024, equals the financial perimeter. The Company also plans to subscribe to science-based targets during the 2025-2027 strategic cycle, reinforcing its ambition to align its goals with the best scientific bases.

Policies related to climate change mitigation and adaptation

Corticeira Amorim has adopted a comprehensive set of policies governing climate change mitigation and adaptation:

General Sustainability Policy

Scope: All employees of all the Organisation's companies; also applicable to the value chain insofar as all entities that have an economic, institutional or social relationship with the Organisation are required to respect or adhere to the principles

Key content and principles:

• Integrate sustainability into the decision-making process
• Manage material risks and opportunities associated with the Organisation's activities
• Identify, assess and manage actual or potential material impacts to avoid, minimise and remedy any negative impacts on employees, workers throughout the value chain, communities, consumers and end-users and other stakeholders, as well as the environment
• Conduct business according to principles of trust, transparency and ethics, encouraging communication channels to inform, involve and maintain an ongoing dialogue with stakeholders

Governance: Approved by the Board of Directors, previously assessed by the ECBD (Executive Committee of the Board of Directors) and the ESGC (Environmental, Social and Governance Committee). The CSO (Chief Sustainability Officer) is responsible for enforcing the policy, and the Sustainability transversal support area monitors implementation. BUs are responsible for implementation within the scope of their activities.

Alignment with international standards: Universal Declaration of Human Rights, fundamental conventions of the International Labour Organisation, OECD Guiding Principles for Multinational Enterprises, the 10 principles of the United Nations Global Compact, BCSD Portugal Charter of Principles, Act4nature Portugal, and the SDGs

Public availability: Available on Corticeira Amorim's corporate website in Portuguese and English at https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring: The CSO is responsible for enforcing the policy. Working groups meet at least quarterly to monitor performance in relation to defined metrics and targets. These groups report to the ECBD at least twice a year. At least twice a year, progress of actions and fulfilment of targets are reported to the Board of Directors.

Energy, Environment and Biodiversity Policy

Scope: All employees of all the Organisation's companies; also applicable to the value chain insofar as all entities that have an economic, institutional or social relationship with the Organisation are required to respect or adhere to the principles

Key content and principles:

• Apply environmental and rational energy use criteria in all planning and decision-making work on issues that may have an impact on the environment
• Implement the necessary tools to avoid pollution and reduce energy consumption, focusing on cleaner energy sources and greener technologies
• Make rational use of resources, minimising water, paper and energy consumption, reducing waste and emissions, favouring recycling and looking for ecologically correct solutions
• Promote good environmental practices among suppliers and customers, encouraging responsible consumption
• Reduce the amount of raw materials used, limiting packaging and favouring recycled and/or recyclable materials and "sustainable" raw materials (e.g. from sustainably managed forests)
• Contribute to the research, development and promotion of environmentally friendly and energy-efficient technologies that seek carbon neutrality
• Act proactively in discussing policies and proposing measures for the protection of forests and ecosystem services, in particular the cork oak, the preservation of cork oak forests, the promotion of the cork sector, the certification of forest management systems and the remuneration of ecosystem services in cork oak forests
• Care for and respect the environment and protect biodiversity during the day-to-day performance of operations
• All the Organisation's policies must take into consideration the transition to a more sustainable economy, allocating available resources to maximise efficient use with the objective of decarbonising production activities, seeking to minimise risks to the climate and to human health and biodiversity

Governance: Approved by the Board of Directors, previously assessed by the ECBD and the ESGC. The CSO is responsible for enforcing the policy, and the Sustainability transversal support area monitors implementation. BUs are responsible for implementation within the scope of their activities.

Alignment with international standards: Universal Declaration of Human Rights, fundamental conventions of the International Labour Organisation, OECD Guiding Principles for Multinational Enterprises, the 10 principles of the United Nations Global Compact, BCSD Portugal Charter of Principles, Act4nature Portugal, and the SDGs

Public availability: Available on Corticeira Amorim's corporate website in Portuguese and English at https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring: The CSO is responsible for enforcing the policy. Working groups meet at least quarterly to monitor performance in relation to defined metrics and targets. These groups report to the ECBD at least twice a year. At least twice a year, progress of actions and fulfilment of targets are reported to the Board of Directors.

Stakeholder engagement in policy development

In defining these policies, Corticeira Amorim takes into account the views, interests, needs and rights of stakeholders potentially affected by its activities through regular consultations with workers (including those in the value chain), communities, consumers and end-users, customers, suppliers and shareholders. The Organisation carries out regular consultation processes and promotes bilateral dialogue through various communication channels.

Policy dissemination and training

The Company provides training to all employees, particularly in the Code of Business Ethics and Professional Conduct. Corticeira Amorim communicates policy updates in a timely manner and promotes their dissemination and adoption throughout the Organisation. The Organisation regularly monitors reach and effectiveness, seeking feedback and carrying out periodic updates to ensure clarity, accessibility and relevance. Dissemination is facilitated through the corporate intranet and the official website.

Actions and resources in relation to climate change policies

Corticeira Amorim integrates climate change mitigation and adaptation into its management model through various working groups that identify initiatives and engage with external stakeholders to reduce environmental impact and achieve the Sustainable by nature programme objectives. The actions are underpinned by the strategic objective of reducing environmental impact by adopting renewable, accessible and efficient solutions, with decarbonisation driven by three main levers: energy efficiency, renewable energy sources, and sustainable procurement.

Energy Efficiency Project

Scope: Own operations

Time horizon: Ongoing to 2030 (target: 2% annual improvement)

Resources allocated:

• Financial: €1.2 million invested in 2024
• 45 energy efficiency measures implemented in 2024

Expected outcomes:

• 3.3% energy efficiency achieved in 2024
• 53,800 MWh energy saved
• 2,954 tCO₂eq avoided

Actions by category:

• Compressed air (19 measures): Auditing and correcting compressed air leaks; installing flow meters and suction guillotines
• Thermal (14 measures): Installing modulating valves to reduce steam pressure; auditing and correcting steam trap leaks; retrofitting boilers and installing steam flow meters
• Process (6 measures): Optimising operation of steamers and other equipment; studying alternatives for transporting chips
• Motors (5 measures): Replacement of old motors with more efficient models (IE2 to IE4); reducing fan speed
• Lighting (1 measure): Switching off unnecessary lighting

Link to targets: Contributes to 2% annual energy efficiency improvement target and 2030 goal of 20% improvement vs 2020 baseline

Energy Efficiency Forum

Scope: Own operations

Resources allocated:

• Non-financial: 33 workers participated in 38th forum in 2024
• Annual or biannual meetings of energy managers

Purpose: Monitor consumption of energy resources, maintain involvement, forecast needs, present scenarios, motivate and control development and performance of actions

Photovoltaic Project

Scope: Own operations

Time horizon: Ongoing to 2030 (target: 100% renewable electricity)

Resources allocated:

• Financial: €11.6 million green commercial paper programme (2021-2026) for photovoltaic panel purchase

Expected outcomes:

• 20.6 MWh energy consumed from photovoltaic panels in 2024 (11.8% of total electricity)
• Planned: additional 1MWp installation in 2025

Link to targets: Contributes to 100% renewable electricity target by 2030 and maintaining controlled renewable energy above 66.7%

Energy Communities

Scope: Own operations (Portugal)

Resources allocated:

• Non-financial: Partnership with Greenvolt Group to create and manage six Energy Communities in Portugal

Expected outcomes:

• Share energy from 18 Self-Consumption Production Units to 23
• Optimise annual surplus of around 5 GWh

Renewable Energy Project - Biomass

Scope: Own operations

Time horizon: Ongoing

Resources allocated:

• Financial: €2.3 million disbursed in 2024 (mainly in Portugal)
• 14 measures implemented

Expected outcomes:

• 2,700 tCO₂eq avoided in 2024

Actions:

• Optimising yield of cork dust for burning
• Converting boilers to burn other biomass (olive stones, almond shells or pellets)
• Acquiring new, more efficient boilers
• Optimising thermal energy distribution network

Funding source: €3.5 million from Green Bonds (2020) allocated to renewable energy and waste conversion category for refinancing maintenance and modernisation of biomass energy production equipment

Scope 3 Emissions Reduction Programme

Scope: Value chain (upstream and downstream)

Time horizon: Three years to set science-based targets

Strategic axes:

Category 1 & 4: Purchase of goods and services / Transport and upstream distribution

Three intervention lines:

1. Reduction:

   • Replacing carbon-intensive raw materials with more sustainable alternatives
   • Sustainable packaging and logistics project to reduce environmental impact
   • Example: Replaced cargo to Scotland from land to sea transport (50% cost reduction and 50% CO₂ reduction)

2. Measurement:

   • Increase coverage of organisational boundaries in carbon footprint calculation
   • Improve calculation methodologies
   • Increase percentage of emissions calculated from supplier/partner data
   • Projects: Data Hub, carbon footprint calculation internalisation at Amorim Cork and Amorim Cork Composites (Sima Pro licence acquisition, own tool with KPMG support)

3. Suppliers:

   • Select suppliers according to GHG emission reduction targets and plans
   • Encourage adoption of more sustainable practices

Category 2: Capital goods & Category 3: Fuel and energy-related activities

Initiatives: Energy efficiency project, renewable energy project (biomass), photovoltaic project

Category 5: Waste generated in operations

Expected outcomes: 81.6% of industrial waste valorised or diverted from disposal in 2024

Approach: Waste management hierarchy - prevention, reuse, recycling, recovery and disposal

Category 6: Business travel

Actions:

• Video-conferencing rooms set up in each BU (2019)
• Limiting air travel to strictly necessary
• Encouraging train travel when possible

Expected outcomes: 50% reduction in air travel emissions between 2019 and 2024 (from 1,277 tCO₂eq to 722 tCO₂eq)

Link to targets: Aligned with >50% reduction target vs 2019 for 2020-2030 plan

Category 7: Employee commuting

Actions:

• Installation of electric charging stations at establishments with largest number of workers
• Making electric or plug-in vehicles available in Company fleet

Category 9: Downstream and upstream transport and distribution

Actions:

• Maritime transport as preferred means
• Optimise transport flows and packaging to maximise product per unit and reduce weight
• Develop information systems to improve transport impact calculation

Sustainable Packaging Project

Scope: Value chain

Expected outcomes (2030 target): 67 tCO₂eq reduction through progressive elimination, replacement or modification of product and packaging

Climate Change Adaptation

Scope: Downstream (enabling activity)

Actions:

• Offering wide portfolio of products for energy efficiency in buildings:
  • Covering materials, insulation and composite agglomerates
  • Cork stoppers
  • Products accounted for 83.4% of consolidated sales in 2024

Expected outcomes:

• Thermal and acoustic insulation solutions reduce energy consumption
• Cork stoppers: each tonne of cork produced can sequester up to 73 tonnes of CO₂
• Low-energy packaging product that extends shelf life and reduces waste

Forestry Intervention Project

Scope: Upstream value chain

Time horizon: Since 2013, ongoing

Resources allocated:

• Non-financial: Direct management of 8,181 hectares (Herdade da Baliza, Herdade da Venda Nova, Herdade de Rio Frio)
• Medium to long-term partnership relationships with cork suppliers
• Higher price paid for certified cork

Purpose: Preserve cork oaks and cork oak forest ecosystems; guarantee sustainability of cork sector; maintain ecosystem services (cork supply, climate regulation, fire prevention, hydrological regulation, soil protection)

Actions:

• Programmes promoting resistance to droughts, pests and diseases
• Increase survival rate
• R&D actions and new forestry practices
• FSC® certification at Herdade de Rio Frio (2024)
• Afforestation, reforestation and densification activities
• Participation in research projects on cork and cork oak forests
• Annual planting initiatives

Expected outcomes: Promote carbon sequestration, preserve ecosystem services, reduce business model risks

Water Efficiency and Forest Management

Scope: Own operations and upstream value chain

Actions:

• Research projects on water infiltration and groundwater replenishment
• Efficient irrigation techniques
• Application of mulching materials (organic/inorganic)
• Forest Management Plans following FSC® principles

Expected outcomes: Preserve groundwater reserves, regulate hydrological cycle, ensure water quality and availability

Total Resources Allocated (2024)

Total climate change-related expenditure: €5.6 million (CAPEX and OPEX)

Activities covered: Production of heat/cold from bioenergy (CCM 4.24), transport by motorbikes/cars/light commercial vehicles (CCM 6.5), renovation of existing buildings (CCM 7.2), installation/maintenance/repair of energy efficient equipment (CCM 7.3), charging stations for electric vehicles (CCM 7.4), instruments for measuring building energy performance (CCM 7.5), renewable energy technologies (CCM 7.6), acquisition and ownership of buildings (CCM 7.7), data processing and hosting (CCM 8.1), data-driven solutions for GHG reductions (CCM 8.2), close to market R&D&I (CCM 9.1)

Sustainable Finance

Resources allocated:

• €40 million Green Bonds (2020): €3.5 million allocated to renewable energy and waste conversion
• €11.6 million green commercial paper (2021-2026): photovoltaic panels
• Sustainability-linked commercial paper:
  • €20 million (2021-2024)
  • €25 million (2024-2027)
  • €30 million (2024-2029)

Monitoring and Governance

Non-financial resources:

• Internal multidisciplinary working groups meeting quarterly
• Reporting to ECBD at least twice yearly
• Board of Directors oversight at least twice yearly

Targets related to climate change mitigation and adaptation

Quantitative Targets (2025-2030)

Corticeira Amorim has established quantitative targets applicable to the sustainability targets perimeter (a selection of representative companies), aligned with strategic cycles and with ambition to 2030:

Climate Change Targets Table

Target scope: Sustainability targets perimeter (selection of representative companies)

Target type:

• Carbon footprint: Absolute reduction target
• Renewable electricity: Percentage target
• Energy efficiency: Cumulative improvement target (intensity-based)

Alignment: Well below 2°C scenario for Scopes 1 and 2 (at least 2.5% reduction per year until 2030)

GHG Emissions Reduction Targets with Mitigation Actions (2024-2030)

Note: Targets assume organic growth neutralized by technological factors (energy efficiency and transition).

Qualitative Targets for 2030

Applicable to entire sustainability perimeter:

• Increase the use of renewable energy
• Improve energy efficiency
• Reduce negative environmental impact

Transition Plan Strategic Axes

Energy efficiency:

• Consistently and continuously improve energy efficiency by 2% per year
• Target: 20% cumulative improvement 2020-2030 (potentially brought forward to 2027)

Renewable energy:

• Increase share of renewable sources in electricity consumption to 100% by 2030
• Use renewable energy sources as main source, gradually eliminating fossil fuels
• Guarantee controlled renewable energy consumption above 66.7%

Sustainable procurement:

• Science-based targets planned over next three years for Scope 3
• Replace carbon-intensive raw materials with sustainable alternatives
• Implement sustainable packaging and logistics project
• Select suppliers according to GHG emission reduction targets

Progress to Date (2024)

Energy consumption: 538,600 MWh total

• 79.1% from renewable sources (63.4% controlled)
• Energy efficiency: 53,800 MWh saved through ~45 measures
• ~2,954 tCO₂eq avoided from efficiency measures

Renewable energy projects:

• 44,500 solar panels installed across 18 industrial units in Portugal
• 24 MWp installed capacity
• 20.6 MWh consumed from photovoltaic in 2024 (11.8% of total electricity)
• Investment: >€11 million (2021-2024)

Biomass project:

• €2.3 million disbursed in 2024
• 14 measures implemented
• 2,700 tCO₂eq avoided

External Validation

Science-based targets: Company plans to subscribe to science-based targets during 2025-2027 strategic cycle.

Current status: Not yet SBTi-validated. Targets aligned with well below 2°C scenario for Scopes 1 and 2.

Water-Related Climate Adaptation Target

Target: 40% reduction in water use intensity by 2030 (compared to 2020)

2025-2027 target: 4.5% reduction to 650 m³/€M (bringing forward 2030 ambition to 2027)

Energy consumption and mix

Corticeira Amorim consumed 538,635 MWh of total energy in 2024. The company's activities fall under NACE sections A (Agriculture, Forestry and Fishing) and C (Manufacturing Industries), categorised as high climate impact activities.

Energy consumption by source (2024)

Controlled renewable energy

Of the total renewable energy, 63.4% (or 341,949 MWh) was renewable energy controlled by the Company (biomass and photovoltaic electricity). Controlled renewable energy represented 69.4% of total energy consumption in 2024, exceeding the company's target of ≥66.7%.

Cork dust, an endogenous biomass from the production process, accounted for 46.2% of total energy consumed.

Electricity consumption associated with renewable energy contractual instruments (Guarantee of Origin Certificates) totalled 629 MWh (0.1% of total electricity purchased). Around 11.7% of total electricity consumed was self-produced renewable electricity.

Energy intensity

Energy intensity (total energy consumption per net revenue from high climate impact activities): 2,065 MWh per million euros of net revenue (2024).

Methodology notes

Conversion factors used:

• Natural gas: 37.9 GJ/1000 m³
• Propane gas: 46.65 GJ/t
• Diesel: 42.8 GJ/t
• Diesel (stationary): 42.8 GJ/t
• Petrol: 44.5 GJ/t
• Cork dust: 15.696 GJ/t
• Other biomass: 11.6 GJ/t
• Electricity: 0.0036 GJ/kWh

Direct measurements were used where possible. When not feasible, calculations were based on specific available data. Conversion from GJ to MWh: divide GJ value by 3.6.

Energy intensity calculated using total energy consumption (538,635 MWh) over total revenue of 939.1 million euros (as disclosed in Note 7, Segment Reporting, consolidated financial statements).

Gross Scopes 1, 2, 3 and Total GHG emissions

Corticeira Amorim reports its GHG emissions inventory for 2024 in accordance with the GHG Protocol Corporate Accounting and Reporting Standard. The reporting covers the consolidated sustainability perimeter, which as of 2024 equals the financial perimeter (130 companies). Comparative information for prior years is not included due to the perimeter increase in 2024.

Scope 1: Gross direct GHG emissions

Sub-breakdown (where possible):

• Stationary combustion: Included (boilers, thermal energy production from natural gas, LPG, fuel oil)
• Mobile combustion: Included (company fleet, machinery)
• Process emissions: Not separately disclosed
• Fugitive emissions: Included (refrigerants, air conditioning systems)

Methodology notes:

• Scope 1 includes direct emissions from combustion of fossil fuels (natural gas, LPG, diesel, gasoline, fuel oil), refrigerant gas leakage, and biomass combustion.
• Biogenic CO₂ from biomass combustion is reported separately (see below).
• GHG Protocol Corporate Standard applied.
• Emission factors from national inventories and IPCC guidelines.

Scope 2: Gross indirect GHG emissions from purchased energy

Methodology notes:

• Scope 2 location-based calculated using national grid emission factors for each country where Corticeira Amorim operates.
• Market-based approach not separately reported; the company primarily uses location-based figures.
• Purchased electricity is the main source of Scope 2 emissions.
• In 2024, 20% of electricity consumption came from self-produced photovoltaic sources.

Scope 3: Gross indirect GHG emissions from value chain

Scope 3 emissions are reported for selected categories. The company is working to expand coverage and improve data quality.

Methodology notes:

• Scope 3 calculation follows GHG Protocol Scope 3 Standard.
• Categories 1, 2, 3, 4, 5, 6, 7, 9, 12 are included.
• Category 1 (purchased goods) is the largest contributor, particularly cork raw material and non-cork materials.
• Category 4 (upstream transport) and Category 9 (downstream transport) are material.
• Data sources: a mix of supplier-specific data, spend-based estimates, and activity-based calculations using published emission factors.
• The company notes that Scope 3 involves a greater degree of estimation and uncertainty due to value chain data limitations.
• The company plans to set science-based targets for Scope 3 over the next three years.

Total GHG emissions

Scope 3 represents 85.5% of total GHG emissions (excluding biogenic CO₂).

GHG intensity

Calculation:

• Total GHG emissions (Scopes 1+2+3): 205,670 tCO₂eq
• Consolidated sales (net revenue): 939.1 million €
• Intensity: 205,670 / 939.1 = 219.0 tCO₂eq / M€

Biogenic CO₂ emissions (reported separately from Scope 1)

Methodology notes:

• Corticeira Amorim uses cork powder (an endogenous by-product) as biomass fuel for thermal energy production.
• Biogenic CO₂ from biomass combustion is reported separately and not included in Scope 1 totals, following GHG Protocol guidance.
• Biomass represents approximately 63% of total energy consumption (thermal + electrical).

Regulated emissions

Corticeira Amorim does not currently participate in the EU Emissions Trading System (ETS). No regulated emissions under EU ETS are reported.

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Perimeter and baseline notes:

• The 2024 report expands the sustainability perimeter from 33 companies (2023) to 130 companies, equal to the consolidated financial perimeter.
• In 2023, the 33 companies represented 72.5% of consolidated sales, 74.7% of employees, and 73.7% of production units.
• Due to the perimeter expansion, comparative data for prior years (2023, 2022, etc.) is not provided for GHG emissions.
• The company used the ESRS phase-in provision to omit comparative information in the first year of reporting under the expanded perimeter.
• Baseline year for climate targets: 2020 (for the sustainability targets perimeter, a subset of companies).
• The company plans to recalculate baseline and prior periods to enable effective year-on-year performance tracking.

Verification:

• The GHG emissions data has been subject to limited assurance by ERNST & YOUNG AUDIT & ASSOCIADOS – SROC, S.A.

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Use of phase-in exemption

For the first year of reporting, Corticeira Amorim used phase-in provisions applicable to all entities under ESRS, particularly with regard to disclosures about the expected financial effects of material risks under disclosure requirement E1-9.

Physical risks - anticipated financial effects

Water stress and production interruptions

With regard to raw material preparation and industrial activities, some units are located in water-stressed areas. Around 97.9% of water withdrawals occur in areas at high or extreme risk of water stress. In scenarios of high temperatures, the scarcity or unavailability of water can lead to production interruptions, affecting the Organisation's operating costs. The potential inability to access the water resource can trigger potential financial effects due to the interruption or reduction in production capacity.

Adaptation investments and operating costs

High temperature scenarios could result in the need for investments and increased operating costs to promote the adaptation of activities to climate change, namely to adapt to chronic and acute physical risks related to temperature (such as heat stress, temperature variations and heat waves) and water resources (such as changing precipitation patterns, water stress and drought). This includes renovation of water withdrawal, treatment and supply systems, along with the renovation of water withdrawal, treatment and distribution infrastructure.

Impact on cork raw material supply

Climate-related physical risks can have an impact on cork oak forests, affecting the availability and quality of cork raw material. Extreme weather events (droughts, fires, floods, pests and diseases) and changing climatic conditions can reduce the productivity of cork oak forests, representing a risk to Corticeira Amorim's cash flows.

Transition risks - anticipated financial effects

Legal and compliance risks

Potential non-compliance with transitional legal requirements related to climate change, emissions above the emission limit values (ELVs), or contractual agreements can lead to legal proceedings and fines, and has been identified as a potential medium and long-term risk.

Carbon offset costs

In order to meet the carbon neutrality targets set for 2050, additional measures may be needed to offset the remaining GHG emissions, namely the purchase of carbon credits, which could increase costs for the Organisation.

Technological investment requirements

The climate transition may require Corticeira Amorim to invest heavily in low-carbon, low-emission technologies, namely in the electrification of its processes and activities, the self-production of renewable energy, the phase-out of fossil fuels and the replacement of hypercarbon industrial processes with lower-carbon processes and technologies. High technological investments, asset devaluation or stranded assets due to the investment required to align them with the carbon neutrality objectives may represent a financial risk for Corticeira Amorim.

Energy market uncertainty

Uncertainty in the energy market could result in higher prices in the medium and long term, triggering financial effects due to the increase in operating costs for Corticeira Amorim's activities.

Market risks from competing products

Legislative restrictions on the incorporation of carbon-intensive products and on carbon-intensive sectors such as aluminium and plastics, namely by restricting the use of derivative products, applying and increasing taxes (e.g: CBAM) may increase the operating and raw material costs of competing products and segments, affecting their competitiveness in the market and jeopardising access to new markets and Corticeira Amorim's growth and revenues.

Climate-related opportunities - anticipated financial effects

Carbon credits from cork oak plantations

The cork oak plantations carried out between 2020 and 2023 on the properties managed by Amorim AgroFlorestal have been included in a project to emit carbon credits, and it is estimated that over a 100-year period they could contribute to the emission of approximately 500,000 carbon credits.

Cork oak forests have a high potential for carbon sequestration. The intervention policies and actions carried out by Corticeira Amorim on forestry properties, namely new plantations/densifications, recovery of degraded areas and recovery of cork oak stands that are below their productive potential, constitute a potential asset that could be considered for the issue of carbon credits, which could be traded or used to offset emissions.

The creation of a model that allows scale gains in the sale of carbon credits to small forest producers strengthens the partners' economy, promoting the resilience of the supply chain and Corticeira Amorim's business model, generating additional revenue.

Reputational opportunities and market positioning

Corticeira Amorim's positioning and the various projects it has been developing in the context of mitigating its environmental impacts, namely GHG emissions, but also in preserving and contributing to the promotion of ecosystem services, namely cork oak forests, as well as offering a portfolio of products with low CO₂ emissions, which contribute to the reduction of emissions associated with the life cycle of products and services (substitution of carbon-intensive products by products with low CO₂ emissions), was identified as a reputational opportunity that could be reflected in the opening up of new market segments and an increase in demand for Corticeira Amorim's products.

Access to green financing

The Organisation identified as an opportunity the increase in financial performance through access to dedicated financial instruments, namely green financing, with a lower cost of capital, and attracting investors due to lower exposure to transition risks.

Supply chain resilience

The greater resilience of the sector's supply chains compared to the supply chains of competing products from sector segments that are less adapted to climate change, such as aluminium, plastics and cement, among others, due to better adaptation and less exposure to climate-related physical and transition risks, is an opportunity for the sector and the business model.

Strategic stock levels of cork make it possible to manage variations in production due to climatic factors, constituting a strategic advantage and a financial opportunity.

Policies related to pollution

Corticeira Amorim has implemented policies to minimize the impact of its emissions and prevent pollution.

Energy, Environment and Biodiversity Policy

Key content and principles:

• Commitment to implementing the necessary tools to prevent pollution and reduce energy consumption
• Focus on cleaner energy sources and more environmentally friendly technologies
• Control of significant environmental aspects, contributing to the prevention of pollution
• Proactive action in identifying, evaluating and implementing appropriate preventive measures to minimise the specific environmental impacts of each activity
• Use of the best available practices and technologies whenever technically and economically feasible
• Control of emissions from different emission sources
• Alignment of procedures to prevent, mitigate and remedy pollution
• Avoid incidents and emergency situations, and control and limit their impact on people and the environment

Scope: Applies to all of the Organisation's companies. For detailed information on the scope, see section 3.2.1 Policies related to climate change mitigation and adaptation.

Governance and oversight: For information on policy governance and oversight, see section 3.2.1 Policies related to climate change mitigation and adaptation.

Alignment with international standards: The policies adopted by Corticeira Amorim are in line with the main relevant international frameworks. For more information on aligning policies with international standards, see section 3.2.1 Policies related to climate change mitigation and adaptation.

Implementation and monitoring:

• Environmental management system certified in accordance with ISO 14001, currently covering around 21.3% of units, guaranteeing legal and regulatory compliance and alignment with best environmental management practices in terms of pollution
• Units without external certifications follow an internal management system
• Management systems are audited, internally and externally, in accordance with defined schedules
• Annual audit by an external organisation to check legal compliance
• All systems have underlying performance improvement policies and objectives, supported by an activity plan
• Evaluation mechanisms and indicators defined for each system
• Principles and practices of the environmental management system are extended to other production units without external certification

Public availability: Not disclosed.

Actions and resources related to pollution

General pollution management approach

Corticeira Amorim has appropriate management systems in place to meet legal requirements, internal regulations and established policies on emissions to air and water, implementing measures to mitigate the specific impacts of each BU, namely through:

• Compliance with all legal requirements
• Investment in cleaner and more efficient technologies
• Optimising the production processes
• Implementing environmental control measures
• Audits for pollution control, in particular to detect failures in systems and processes
• Regular noise measurements and active measures to reduce noise, such as cladding of machines and engines
• Controls of gaseous emissions from chimneys and specific measures to avoid dust or particulate emissions, such as the application of filters
• Cross-sectional treatment of industrial wastewater in its own wastewater treatment plant, prior to discharge into a municipal sewer
• Training for workers and third parties on best practices to prevent the occurrence of spillages, making spill containment kits available
• Response procedures in place for emergencies and installation or maintenance of pollution prevention devices (such as containment basins, among other measures)

Biomass boilers – energy optimisation

Action: Preventive maintenance plans and optimization of biomass boilers

Scope: Own operations

Activities: Conservation and repair, safety improvements, optimisation and monitoring, and adaptation for the use of other biomasses. Preventive maintenance plans ensure correct operation and safe and controlled combustion reaction.

Outcomes: Contributed to increasing efficiency and reducing air emissions

Retrofit project for thermal fluid boiler furnace

Action: Furnace retrofit project at Amorim Cork BU industrial unit in Portugal

Scope: Own operations (Portugal)

Resources allocated: €1.3 million investment

Activities:

• Integrating a new biomass firing furnace
• Preparing the boiler for future firing of other types of biomass
• Repairing the casing
• Adding a new gas passage cleaning system
• Installing a new economiser
• Fitting a particle retention system, including cyclone separators and a bag filter

Outcomes:

• 69% reduction in emissions
• 30% increase in boiler efficiency

Wastewater treatment

Action: Industrial effluent treatment process across all applicable industrial units

Scope: Own operations

Activities:

• Removal of impurities generated in manufacture through primary, secondary or tertiary treatment
• Analytical checks on volumes and parameters of discharges
• Monitoring the receiving environment in accordance with wastewater discharge licences
• Continuous investment in optimising wastewater treatment plants
• Application of best available techniques and compliance with emission limit values

2024 activities:

• Maintenance and repair work on wastewater collection and treatment systems
• Changes to processes to reduce pollution load
• Replacement of chemical products with alternatives that reduce pollution load of industrial effluents

Monitoring campaigns

Action: Regular monitoring of polluting emissions

Scope: Own operations

Activities:

• Monitoring polluting emissions of gases or particles into the atmosphere using methods based on existing standards
• Actions carried out by certified, independent laboratories
• Results communicated to competent authorities in accordance with regulations

Timeline: Ongoing during 2024, planned monitoring campaigns applied

Purchase of a press for the IWWTP

Action: Acquisition of press for industrial wastewater treatment plant (IWWTP) at Amorim Cork BU

Scope: Own operations

Timeline: 2024

Activities: Replacing existing dehydration unit (band filter) and increasing daily operating time

Expected outcomes:

• Increase efficiency of process sludge extraction
• Lower water use
• Less downtime for maintenance
• Optimise and make more efficient use of the press

Resources allocated to pollution management

Total investment (2024): €419,500 in various measures

Specific investments:

• Upgrades to water effluent treatment system at Herdade de Rio Frio
• Activities associated with construction, extension and operation of water withdrawal, treatment and supply systems (CCM 5.1.)
• Renewal of water withdrawal, treatment and supply systems (CCM 5.2.)
• Construction, extension and operation of water withdrawal and treatment systems (CCM 5.3.)
• Renewal of wastewater collection and treatment systems (CCM 5.4.)

Note on resource allocation: The Company is strengthening its information systems, with the aim of isolating the resources used to respond to actions related to relevant issues.

Link to targets

The double materiality assessment identified water and air pollution as a new material issue for Corticeira Amorim. The Sustainable by nature programme and the 2021-2024 strategic cycle did not provide for targets and metrics for these topics. Corticeira Amorim will re-evaluate the policies and the definition of targets and, if relevant, these will be incorporated into the new 2025-2027 strategic cycle.

Targets related to pollution

The double materiality assessment identified water and air pollution as a new material issue for Corticeira Amorim. The Sustainable by nature programme and the 2021-2024 strategic cycle did not provide for targets and metrics for these topics.

Corticeira Amorim will re-evaluate the policies and the definition of targets and, if relevant, these will be incorporated into the new 2025-2027 strategic cycle, which is now beginning, also taking into account the increase in the sustainability perimeter which, as of 2024, equals the financial perimeter.

Status: No quantified pollution-related targets are currently established. The company explicitly states in section 4.3.1 that targets for air and water pollution were not included in the 2021-2024 strategic cycle and will be reassessed for potential incorporation into the 2025-2027 strategic cycle.

Pollution of air, water and soil

Emissions to air

Corticeira Amorim companies monitor their gaseous emissions through accredited external organisations, in accordance with the applicable legal requirements. The frequency of this monitoring is defined according to the characteristics of the effluent being analysed, and can take place annually, twice a year, every three years or every five years.

In 2024, PTS emissions amounted to 221 t, NOx emissions totalled 163 t and VOCs reached 64 t.

Emissions to air

Accounting principles

The total annual quantity emitted of each pollutant (kg/year) is calculated according to the Pollutant Release and Transfer Register (PRTR) methodology. The pollutant concentrations measured in the monitoring campaigns (kg/m³) are multiplied by the annual flow (m³/year), thus obtaining the total annual quantity emitted of each pollutant (kg/year).

Emissions to water

The 2021-2024 strategic plan did not include metrics related to emissions to water. Taking into account the new impacts, risks and opportunities identified as a result of the double materiality assessment, the Organisation will reflect on the need to define targets and metrics on this topic during the 2025-2027 strategic cycle that is now beginning.

Context on emissions sources

Corticeira Amorim's air emissions result mainly from burning biomass in fuel boilers to generate energy. Emissions include carbon dioxide (CO₂), total suspended particles (TSP), nitrogen oxides (NOx) and volatile organic compounds (VOCs), and are not associated with emissions of odorous gases.

Emissions to water result from industrial activities and processes essentially related to boiling cork and washing stoppers. These processes generate industrial effluents that are predominantly organic in nature, and the treatment of these effluents is essentially focused on removing total suspended solids and controlling phenols and chemical oxygen demand (COD). Most of the existing IWWTPs are of the physical-chemical type, guaranteeing the quality of the treated effluent. In addition, 25% of these facilities also have complementary biological treatments.

During the year 2024 there were no relevant changes related to the sources of emissions of pollutants into the air and water.

Anticipated financial effects from pollution-related impacts, risks and opportunities

Phase-in exemption

For the first year of reporting, some phase-in provisions applicable to all entities under ESRS were used, particularly with regard to disclosures about the expected financial effects of material risks under disclosure requirements SBM-3, E1-9, E2-6, E3-5, E4-6 and E5-6.

Policies related to water and marine resources

Corticeira Amorim is committed to the responsible management of water resources through a series of policies and practices aimed at identifying, assessing, managing and/or remediating the impacts, risks and material opportunities related to these resources.

Energy, Environment and Biodiversity Policy

Key content and principles:

The policy formalises the Organisation's commitment to:

• Adopting practices for the rational use of resources, including minimising water use
• Special focus on minimising water use in areas with high or extreme risk of water stress
• Reducing pollution resulting from activities, including water pollution

The Company's water management approach is based on three pillars:

• Reducing consumption: Reducing water use and improving efficiency
• Treatment: Reducing water pollution through continuous investment in wastewater treatment plants, guaranteeing application of best practices in reducing pollutant load and complying with legal requirements in wastewater discharge licences
• Hydrological regulation: Conserving water resources through projects to restore and protect aquatic ecosystems

Scope:

• Applies to all the Organisation's companies
• Promotes sustainable water use, prioritising long-term protection of available water reserves
• Encourages reduction of water withdrawal and consumption, especially in geographical areas subject to high or extreme risk of water stress
• Encourages reduction of wastewater discharges
• External entities with economic, institutional or social relationships with the Organisation are required to respect or adhere to these principles

Governance and oversight:

Referred to section 3.2.1 Policies related to climate change mitigation and adaptation (specific details not included in these excerpts)

Alignment with international standards:

• Policies are aligned with main relevant international frameworks
• The Organisation has adopted some of the best practices of ISO Standard 46001 - Water Efficiency Management Systems across all companies
• Detailed alignment information referred to section 3.2.1 Policies related to climate change mitigation and adaptation

Best practices and tools:

• Creation and monitoring of performance indicators for main water consumers
• Listing of variables that influence water use by process, especially in areas of intensive consumption
• Analysis of water stress zones using the Aqueduct Water Risk Atlas tool (https://www.wri.org/) to identify areas most at risk of water scarcity

Public availability:

• Policies are made available on Corticeira Amorim's corporate website in Portuguese and English
• The Company provides training to all employees, particularly in the Code of Business Ethics and Professional Conduct
• Policy updates are communicated in a timely manner

Stakeholder engagement:

Open and continuous dialogue sessions are held to understand stakeholder concerns, expectations and perceptions on sustainability issues, particularly regarding use of water resources. Details on how stakeholder views are integrated referred to section 3.2.1.

Monitoring:

• Analytical checks on volumes and parameters of discharges
• Monitoring of recipient environment
• Performance indicators for main water consumers
• Water stress analysis using Aqueduct Water Risk Atlas tool

Actions and resources related to water

Corticeira Amorim implements a comprehensive approach to analyzing activities that have an impact on water resources, considering applicable laws and regulations, international standards and guidelines, and best practices in the sector. The organization works to mitigate negative impacts, boost positive impacts and reduce its exposure to risks related to impacts and dependence on water resources.

Overall approach based on three pillars

• Reduction of consumption
• Treatment
• Hydrological regulation

These pillars are supported by the zero-water waste programme.

Key Actions

Zero water waste programme

Scope: Own operations in Portugal

Time horizon: 2021-2024 cycle

Action details:

• Established plan for the 2021-2024 cycle to reinforce action concerning the use of water resources
• Goal: Reduce water use intensity by 1% per year by 2024 in operations in Portugal
• Working group set up in 2021 bringing together those responsible for different Business Units on a quarterly basis to discuss measures to reduce water use and share good practices

Links to policy/target: Supports commitment to rational use of water and achievement of goals outlined in the Sustainable by nature programme

Water audit and methodology development

Scope: All facilities in Portugal

Time horizon: Started in 2021

Action details:

• Audit of all facilities in Portugal to gauge a common methodology for determining water use
• List drawn up with several actions based on best practices among the Business Units
• Adoption of good practices from ISO 46001 - Water Efficiency Management Systems, including:
  • Creation and monitoring of performance indicators for main water consumers
  • Listing variables that influence water use per process, especially in intensive consumption areas

Water reuse project

Scope: Amorim Florestal Business Unit

Action details:

• Launch of water reuse project

Management and monitoring activities

Scope: Own operations

Action details:

• Various activities aimed at reducing consumption, mainly focused on management and monitoring
• Monitoring of impacts of water withdrawal, consumption, treatment and effluent discharge
• Water stress analysis using Aqueduct Water Risk Atlas tool to identify areas most at risk of water scarcity and develop more efficient management measures
• Identification and mitigation of risks of environmental degradation linked to preservation of water quality and prevention of water stress incorporated into Environmental Management System

Water footprint assessment

Scope: Upstream and downstream value chain

Action details:

• Full life cycle analyses of products to assess direct and indirect water footprint associated with operations and products
• Products analysed currently account for 24.4% of consolidated sales

Industrial wastewater treatment

Scope: Industrial facilities with wastewater from processes

Action details:

• Collection and treatment of wastewater in own Industrial Wastewater Treatment Plants (IWWTPs) before discharging into municipal sewer
• Performance linked to pollution prevention

Resources allocated

Non-financial resources:

• Working group established in 2021, meeting quarterly with representatives from different Business Units
• Dedicated responsible persons from each Business Unit participating in water efficiency discussions

No specific financial resources (capex/opex amounts) are quantified in the disclosed excerpts.

Targets related to water

2030 Target

Target metric: Increase efficiency in water use

Target year: 2030

Scope: Sustainability targets perimeter (as defined in section 1.3.1)

Type: Qualitative target

Strategic alignment: Aligned with SDG 6 - Clean water and sanitation and the 'Promote the environmental characteristics of cork oak products and forests' strategic pillar

2021-2024 Strategic Cycle Target

Target metric: Water use intensity reduction

Target value: 1% annual reduction

Baseline year: 2020

Target year: 2024

Scope: Sustainability targets perimeter

Type: Intensity-based

Progress to date (2024): 37.8% improvement in water use efficiency compared to baseline year 2020, surpassing the objectives set for the strategic cycle

Future developments

During the 2025-2027 strategic cycle, Corticeira Amorim will reflect on the need to extend the perimeter of the targets and define new targets and metrics, based on the double materiality assessment carried out in 2024 and the increased perimeter to equal the financial statements perimeter.

Water consumption

Total water consumption and intensity

Total water consumption in 2024 was 600,900 m³, corresponding to a water use intensity of 639.9 m³ per million euros of sales. Water consumption for Corticeira Amorim's activities comes from areas with a material water risk, since the vast majority of water withdrawals are located in areas with a high or extreme risk of water stress.

Water withdrawal by source

Water withdrawal totalled 764,700 m³. Most of the water withdrawn by Corticeira Amorim is underground (92.3%), with the remainder (7.7%) coming from other sources, namely the public network.

Water recycled and reused

Through the water reuse project, around 12,700 m³ of water was reused in 2024, representing approximately 7.8% of Corticeira Amorim's total industrial effluent from its business activity.

Water discharge

A total of 163,300 m³ of water was discharged in 2024. Of this:

• 114,500 m³ were treated at Corticeira Amorim's industrial wastewater treatment plant (IWWTP) before being discharged into the municipal sewer system
• 12,700 m³ were reused internally
• 36,100 m³ went to other destinations, namely being recycled and used in other processes

Water consumption in water-stressed areas

Approximately 97.9% of Corticeira Amorim's water withdrawals occur in areas of high or extreme water stress (based on the Aqueduct Water Risk Atlas tool).

Around 27.2% of the water was returned to the environment and approximately 72.8% was consumed – integrated into the product or used to produce steam.

Multi-year comparison (water use intensity)

The sustainability targets perimeter (not all operations) shows the following trend:

Methodology notes:

• Water use intensity is calculated by water consumption in cubic metres (m³) against total revenue of 939.1 million euros
• All volumetric quantities were measured using duly calibrated and certified flowmeters in accordance with legal metrology requirements
• Water stress areas identified using the Aqueduct Water Risk Atlas tool (https://www.wri.org/)
• The total amount of water withdrawn includes public network supply, groundwater withdrawals and other sources such as surface water
• Water recycled/reused refers to water treated in wastewater treatment plants that can be reused in industrial processes or for other purposes (e.g. irrigation)

Anticipated financial effects from material water and marine resources-related impacts, risks and opportunities

Phase-in exemption applied

For the first year of reporting, some phase-in provisions applicable to all entities under ESRS were used, particularly with regard to disclosures about the expected financial effects of material risks under disclosure requirements SBM-3, E1-9, E2-6, E3-5, E4-6 and E5-6.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Integration of biodiversity in corporate strategy and business model

As the world's largest cork transformation group, Corticeira Amorim has significantly contributed to the overall business, market, economy, innovation and sustainability of the entire cork industry. Cork processing companies are a driving force in creating economic interest among forest owners in maintaining the exploitation of cork oak forests. In turn, the cyclical extraction of cork, without damaging the trees, contributes to the viability of this ecosystem, providing numerous economic, environmental and social benefits.

Preserving cork oak forests and ecosystem services by increasing knowledge, mobilising resources and proposing measures is Corticeira Amorim's objective under the Biodiversity and Ecosystems pillar of the Sustainable by nature programme.

Biodiversity targets

The targets applicable to the whole Organisation are as follows:

• Strengthen efforts to protect and safeguard cultural and natural heritage
• Promote the implementation of sustainable forest management and mobilise resources
• Integrate the values of ecosystems and biodiversity

These targets, in line with the relevant goals and objectives of local, national and global public policies related to biodiversity and ecosystems, as well as taking into account relevant international frameworks such as the Kunning-Montreal Global Biodiversity Framework and the European Union (EU) Biodiversity Strategy for 2030, guide the strategic priorities for sustainable development.

Transition plan

Corticeira Amorim has defined a Transition Plan and Consideration of Biodiversity and Ecosystems in Strategy and Business Model (Biodiversity Transition Plan), as part of the assessment of the resilience of its strategy and business model in relation to biodiversity and ecosystems. It is focused on certain priority axes to ensure the response to natural risks arising from the dependence on biodiversity and ecosystems.

Decarbonisation and energy efficiency

Climate change is a factor that has a significant direct impact on ecosystems and the loss of biodiversity. Accordingly, GHG emissions resulting from activities along the value chain have a negative impact on climate change.

Corticeira Amorim, by implementing the decarbonisation and energy efficiency actions set out in its Climate Change Mitigation Transition Plan, expects to reduce emissions of its scope 1 and 2 operations by at least 2.5% per year, in line with the scenario well below 2 °C. Corticeira Amorim is also focused on reducing scope 3 emissions and is working on an emissions reduction programme, with the aim of setting science-based targets over the next three years. The Organisation directly contributes, through this objective, to reducing the impact of climate change on biodiversity and ecosystems, promoting their resilience in the medium and long-term.

Preservation of cork oak forests and ecosystem services

Good management and the promotion of ecosystem services are fundamental to the provision of the raw material cork and consequently to the promotion of the resilience of the business model.

Awareness of the urgent need for intervention in cork oak forests led Corticeira Amorim to develop the forestry intervention project, which aims to preserve cork oaks and cork oak forest ecosystems through programmes that promote their resistance to droughts, pests and diseases and to increase their survival rate. It also led it to invest directly in agroforestry properties in order to develop, among other things, R&D actions and the application of new forestry practices, so that in the future it may induce certain behaviour among forestry producers, creating a more resilient and optimised system in its economic, environmental and social drivers. The area under direct management by Corticeira Amorim is 8,181 hectares: Herdade da Baliza, Herdade da Venda Nova and Herdade de Rio Frio.

Cork oak forests play a crucial role in climate regulation, fire prevention, hydrological regulation and soil protection, thanks to their multifunctional characteristics and broad biodiversity. Corticeira Amorim's good forest management practices and preservation, conservation and restoration activities on its properties have a positive impact on ecosystem services and biodiversity, reducing the risks to the business model in the areas under its direct management. In addition, the Organisation also carries out afforestation, reforestation and densification activities, promoting the potential for carbon sequestration in these ecosystems.

In addition to the activities it carries out on the properties under its direct management, the work it does with the value chain is also important. Since Corticeira Amorim does not own significant areas of forest, it works closely with forestry producers to certify forestry management and the quality of the cork and to verify that ethical and sustainability principles are being followed. To this end, the Company establishes medium to long-term partnership relationships with cork suppliers and encourages the certification of good forest management practices, namely by paying a higher price for certified cork.

It is also involved in other reforestation activities through its planting projects, which include the Green Cork project, the Suber Protected Villages project and annual planting.

Corticeira Amorim also participates in various research projects on cork and cork oak forests, contributing to the advancement of knowledge and the implementation of innovative practices that benefit biodiversity and ecosystems. These initiatives allow Corticeira Amorim to explore new areas of research, develop technologies and methods that can improve the resilience and sustainability of cork oak forests and promote sustainable forest management. In addition, participation in research projects helps the Company to identify plants that are better adapted to climate change, pests and diseases, to implement new planted areas and to increase the density of existing forests using innovative processes and technologies. The Company also shares knowledge and offers technical support to forestry producers, promoting a collaborative and integrated approach to natural resource management and thereby making its business model more resilient.

Water efficiency and regulation of the hydrological cycle

Good management practices for cork oak forests upstream in the value chain and also in Corticeira Amorim's forest management activities make a material contribution to the preservation of groundwater, the regulation of the hydrological cycle and the quality and availability of fresh water.

In order to promote the resilience of its business model, Corticeira Amorim carries out a series of annual actions to promote water efficiency and has defined specific objectives for its raw material preparation, industrial and distribution activities. It also promotes KPI monitoring. The Organisation reduces its water withdrawal needs through these initiatives, thus reducing pressure on ecosystems, especially in its activities located in water-risk zones.

High temperature climate scenarios increase the risk of water scarcity for Corticeira Amorim's properties in the medium and long-term, located in areas of high and extreme water risk, as identified in the double materiality assessment. Aware of the importance of water in production, Corticeira Amorim invests in research projects to understand how cork oak forests contribute to water infiltration in the soil and groundwater replenishment. The Company develops new techniques for efficient irrigation and the application of materials to the soil, whether organic or inorganic (mulching). These experimental techniques increase knowledge about cork oak cultivation and can be shared with forest managers and owners, promoting the resilience of the supply chain.

Forest Management Plan

Forest Management Plans (FMPs) guarantee the sustainable management of forests, promoting the conservation of biodiversity and the maintenance of ecosystem services, such as the provision of cork. These plans include management practices aimed at preserving natural habitats, fire prevention, hydrological regulation and soil protection. By adopting these practices, Corticeira Amorim mitigates the risks linked to climate change and other environmental factors, thereby enhancing the resilience of its business model in the areas under its management.

At Herdade de Rio Frio, the FMP follows the principles and criteria of the FSC®. This plan aims to conserve soil and water, promote [text cut off in excerpt]

Financial resources

Corticeira Amorim has made significant investments and obtained targeted funding, to support the implementation of the actions set out in the Biodiversity Transition Plan. To finance the investment in forestry properties, which totalled €56.9 million, the Company used sustainable finance instruments as its main source of funding.

In 2020, Corticeira Amorim issued the cork industry's first Green Bonds under the Green Bond Framework, in what was an important milestone in its sustainability strategy. Of the total amount of €40M in bonds issued, €6.1M is allocated to the category of environmentally sustainable management of living natural resources and land use, with a view to refinancing the acquisition, planting, maintenance and management of cork oak forests using new forestry farming models based on irrigation at the installation.

The €20M Green Commercial Paper Emissions programme, contracted for the 2022-2027 period, and the €35M Green Commercial Paper Emissions programme, contracted for the 2022-2029 period, are intended to finance and/or refinance projects related to increasing the area occupied by cork oaks (Quercus suber L.) and improving existing areas, as part of the implementation of the ongoing Forestry Intervention Project. These projects should include actions such as land acquisition, new plantations, increased tree planting density, research and development, maintenance, rehabilitation, restoration and management, partly using new forestry models.

Governance and supervision of the Transition Plan

The Biodiversity Transition Plan has been approved by the ECBD and is integrated and aligned with the Company's overall strategy and financial planning, ensuring that the strategy and business models are compatible with the transition to a sustainable economy. This plan is constantly reviewed to ensure that it is adapted to changes in the market and the Company's needs. The effectiveness of the plan is assessed on an ongoing basis, comparing the KPI with the targets set in the Sustainable by nature programme.

Corticeira Amorim participates in ForestWISE - Collaborative Laboratory for Integrated Forest and Fire Management, ANPC - National Association of Rural Owners, Game Management and [text cut off in excerpt]

Geographic and value chain scope

The area under direct management by Corticeira Amorim is 8,181 hectares: Herdade da Baliza, Herdade da Venda Nova and Herdade de Rio Frio.

Since Corticeira Amorim does not own significant areas of forest, it works closely with forestry producers in the value chain to certify forestry management and the quality of the cork and to verify that ethical and sustainability principles are being followed.

Use of frameworks

The identification of issues related to biodiversity and ecosystems took into account the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD), namely the LEAP approach (locate, estimate, assess and prepare).

The targets are in line with relevant international frameworks such as the Kunning-Montreal Global Biodiversity Framework and the European Union (EU) Biodiversity Strategy for 2030.

Linkage to nature-related risk assessment

Corticeira Amorim, through the double materiality assessment, has identified material impacts, risks and opportunities related to biodiversity and ecosystems, both in the Organisation's own operations and in the value chain. Identifying them allows us to understand and identify strategic axes for continuing to strengthen the resilience of the business model.

The potential impacts of Corticeira Amorim's activities on Biodiversity were analysed using the IBAT tool, which integrates various classification systems into its database, such as the Natura 2000 Network and National Designation Zones.

The study focused more on agroforestry, raw material preparation and industrial activities throughout the various geographies in which Corticeira Amorim operates, given the relevance to the subject of the analysis. The study concluded that none of Corticeira Amorim's raw material preparation and industrial activities take place in classified areas. The Herdade de Rio Frio agroforestry operation intersects the Natura 2000 network in a small strip at its northern end (15.33 ha, approximately 0.3% of the total area), in the Tagus Estuary Special Area of Conservation (ZEC) (PTCON0009). In addition, at Herdade da Baliza, the Tejo Internacional, Erges e Pônsul Special Protection Area (PTZPE0042) covers 51.4% of the property and 52.6% is within the Tejo Internacional Natural Park.

Corticeira Amorim undertakes to carry out this analysis again in the future, including physical risks and opportunities, transition risks or systemic risks, in the identification of biodiversity-related impacts, risks and opportunities.

Material impacts, risks and opportunities

Material impacts, risks and opportunities related to the subtopics of factors with a direct impact on biodiversity loss were identified within the scope of biodiversity and ecosystems, as a result of the double materiality assessment process. These are, namely, the contribution to climate change through increased GHG sequestration, impacts on the status of species, namely associated with preserving and increasing the population of cork oaks, impacts on the extent and status of ecosystems, and impacts and dependencies on ecosystem services.

Policies related to biodiversity and ecosystems

Corticeira Amorim has adopted policies that address biodiversity and ecosystems, reflecting the company's commitment to the conservation of cork oak forests and the Mediterranean basin ecosystem.

Energy, Environment and Biodiversity Policy

Policy name: Energy, Environment and Biodiversity Policy

Key content / principles:

• Apply environmental and rational energy use criteria in all planning and decision-making work on issues that may have an impact on the environment
• Implement the necessary tools to avoid pollution and reduce energy consumption, focusing on cleaner energy sources and greener technologies
• Make rational use of resources, minimising water, paper and energy consumption, reducing waste and emissions, favouring recycling and looking for ecologically correct solutions
• Promote good environmental practices among suppliers and customers, encouraging responsible consumption; reduce the amount of raw materials used, limiting packaging and favouring recycled and/or recyclable materials and "sustainable" raw materials (e.g. from sustainably managed forests)
• Act proactively in the discussion of policies and proposing measures for the protection of forests and ecosystem services, in particular the cork oak, the preservation of the cork oak forest, the promotion of the cork sector, the certification of forest management systems and the remuneration of cork oak forest ecosystem services
• Caring for and respecting the environment and protecting biodiversity during the day-to-day performance of its operations
• All the Organisation's policies must take into consideration the transition to a more sustainable economy, allocating available resources to maximise efficient use with the objective of decarbonising production activities, seeking to minimise risks to the climate and to human health and biodiversity
• Promote internal and external environmental awareness-raising activities

Scope: Applies to all the Organisation's companies. All the Organisation's suppliers and business partners are required to respect or adhere to the principles set out therein.

Governance and oversight: The Board of Directors is responsible for approving the Energy, Environment and Biodiversity Policy and their successive revisions, previously assessed by the ECBD (Executive Committee for Business Development) and the ESGC (ESG Committee). The CSO (Chief Sustainability Officer) is responsible for enforcing the policy, and the Sustainability transversal support area is responsible for monitoring implementation. The BUs (Business Units) are responsible for implementing the Policy within the scope of their activities.

Public availability: Available at https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Alignment with international standards: The policy reflects principles in line with the Universal Declaration of Human Rights, the fundamental conventions of the International Labour Organisation, the OECD Guiding Principles for Multinational Enterprises, the 10 principles of the United Nations Global Compact, the BCSD Portugal Charter of Principles, Act4nature Portugal and the SDGs.

Monitoring implementation: The CSO is responsible for enforcing the policy, and the Sustainability transversal support area is responsible for monitoring implementation. The BUs are responsible for implementing the Policy within the scope of their activities. The management systems are audited, internally and externally, in accordance with the defined schedule. There is also an annual audit by an external organisation to check legal compliance.

General Sustainability Policy

Policy name: General Sustainability Policy

Key content / principles:

• Integrate sustainability into the decision-making process
• Manage material risks and opportunities associated with the Organisation's activities, as well as identify, assess and manage actual or potential material impacts, in order to avoid, minimise and remedy any negative impacts on employees, workers throughout the value chain, communities, consumers and end-users and other stakeholders, as well as the environment
• Conduct business according to principles of trust, transparency and ethics, encouraging communication channels to inform, involve and maintain an ongoing dialogue with stakeholders

Scope: Applies to all of the Organisation's companies.

Governance and oversight: The Board of Directors is responsible for approving the General Sustainability Policy and successive revisions, previously assessed by the ECBD and the ESGC. The CSO is responsible for enforcing the policy, and the Sustainability transversal support area is responsible for monitoring implementation.

Public availability: Available at https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Alignment with international standards: The policy establishes principles in line with the Universal Declaration of Human Rights, the fundamental conventions of the International Labour Organisation, the OECD Guiding Principles for Multinational Enterprises, the 10 principles of the United Nations Global Compact, the BCSD Portugal Charter of Principles, Act4nature Portugal and the SDGs.

Forest Management Plan

Policy name: Forest Management Plan

The Forest Management Plan is referenced in the impact, risk and opportunity tables related to biodiversity and ecosystems, but detailed content is not disclosed in the excerpts provided.

Commitment to Act4nature Portugal

As part of its commitment to biodiversity and nature conservation, Corticeira Amorim joined Act4nature Portugal, a business initiative promoted by BCSD Portugal, in which member companies make common and individual commitments to the conservation of biodiversity and ecosystem services.

2030 Objectives (Sustainable by nature programme)

The Energy, Environment and Biodiversity Policy defines two objectives aimed at biodiversity and ecosystems:

• Preserve the cork oak forest and ecosystem services by increasing knowledge, mobilising resources and proposing measures
• Promote cork solutions and develop the cork oak forests, as guarantors of an ecosystem that offers a range of benefits, including climate regulation, fire prevention, hydrological regulation, soil protection and the maintenance of habitats and biodiversity

Actions and resources related to biodiversity

Overview

Corticeira Amorim integrates biodiversity conservation into its management model and implements various actions annually to promote positive impacts, particularly to maintain and increase areas of cork oak forests. The Organisation promotes FSC® certification and maintains medium to long-term partnerships with cork suppliers. Actions are grounded in four pillars:

• Increased knowledge about the environmental impact of cork products and associated ecosystems
• Affirmation of cork-based solutions and development of cork oak forests as guarantors of the ecosystem
• Promotion of internal and external awareness initiatives
• Proactive approach to policy discussion and measures for cork oak tree protection, forest preservation, and forest management system certification

Action framework structure

Actions are organized across three axes:

• Fundamental forestry R&D (Investigation): Advanced technologies, monitoring, sustainable forestry practices, environmental education
• Applied forestry R&D (Intervention): Implementation of research findings
• Forestry management (Induction): Sharing knowledge and technical support with forest producers

Scope: The activities cover the Company's operations (own operations - OO) but are intended to share results with the supply chain (value chain - VC) once validity is confirmed.

Time horizons: Initiatives are planned for 2025-2027 strategic cycle and 2030 ambition, with property management plans covering 20-year horizons.

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Key Actions - Fundamental forestry R&D (Investigation)

1. Water balance project

• Description: Assessment of water balance in Portugal's cork oak forests to understand water infiltration into soil and groundwater replenishment
• Scope: Own operations (properties under management)
• Time horizon: 2024 (preliminary results), continuing in 2025
• Status: Preliminary results positive
• Expected outcomes: Understanding contribution to water infiltration and groundwater replenishment; development of efficient irrigation techniques and soil application materials (organic/inorganic mulching)
• Link to strategy: Promotes resilience of business model in water-risk zones; addresses water scarcity risks in high-temperature scenarios

2. Research and development programmes

• Description: Various R&D projects on cork and cork oak forests to explore new research areas, develop technologies and methods to improve resilience and sustainability
• Scope: Own operations with knowledge sharing to value chain
• Time horizon: Ongoing, medium to long-term
• Expected outcomes:
  • Identify plants/genotypes better adapted to climate change, pests and diseases
  • Implement new planted areas
  • Increase density of existing forests using innovative processes and technologies
  • Research into new cork oak production methods
  • Strengthening ecosystem services, particularly quality cork production
• Link to policy: Supports cork oak improvement programme

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Key Actions - Applied forestry R&D (Intervention)

3. Forestry intervention project

• Description: Preservation of cork oaks and cork oak forest ecosystems through programmes promoting resistance to droughts, pests and diseases and increasing survival rate
• Scope: Own operations on properties under direct management
• Time horizon: Since 2011, ongoing
• Expected outcomes: More resilient and optimised system in economic, environmental and social drivers

4. Direct property management

• Description: Forest management activities on properties under direct management
• Scope: Own operations - 8,181 hectares (Herdade da Baliza, Herdade da Venda Nova, Herdade de Rio Frio)
• Time horizon: Ongoing
• Progress to date: Since 2011:
  • 3,151 hectares targeted with management actions aimed at cork oak
  • 1,595 hectares planted with approximately 590,300 cork oaks
• Expected outcomes: Positive impact on ecosystem services and biodiversity; reduced risks to business model; afforestation, reforestation and densification promoting carbon sequestration potential

5. Afforestation and reforestation activities

Green Cork project

• Description: Cork stopper collection programme to fund native tree reforestation
• Scope: Value chain engagement (community, schools, social institutions)
• Time horizon: Since 2006, ongoing
• Progress 2024:
  • Approximately 356 organisations involved (social welfare institutions and schools)
  • 90,000 pupils and students
  • 38 tonnes of cork stoppers collected
  • 113,500 trees planted through "Floresta Comum" (Common Forest) project
• Cumulative: More than 1.69 million native trees planted since 2006
• Expected outcomes: Native tree reforestation including cork oak; environmental awareness

Planting projects on managed properties

• Description: Cork oak densification and new plantations
• Scope: Own operations
• Time horizon: 2020-2030
• Target: Plant one million cork oaks on properties under management
• Progress: 590,300 cork oaks planted since 2011

Suber Protected Villages project

• Description: Reforestation initiative
• Scope: Partnership/external
• Time horizon: Ongoing

6. Forest Management Plans (FMPs)

• Description: 20-year plans ensuring sustainable forest management, biodiversity conservation, ecosystem services maintenance; follow FSC® principles and criteria at Herdade de Rio Frio
• Scope: Own operations (properties under management)
• Time horizon: 20-year planning cycles, revised every 5 years
• Three overall objectives:
  • Habitat improvement (e.g. conversion of fast-growing species areas to cork oak)
  • Safeguarding and conservation of cork oak forests (e.g. cork oak densification)
  • Financial sustainability (e.g. valuation of ecosystem services, climate regulation, cork supply)
• Activities: Regular phytosanitary monitoring, mitigating measures against pests/diseases, fire prevention following Municipal Forest Fire Defence Plans
• Expected outcomes: Preserve natural habitats, fire prevention, hydrological regulation, soil protection; mitigate climate change risks; enhance business model resilience
• Link to policy: Forest Management Plan, FSC® certification

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Key Actions - Forestry management (Induction)

7. FSC® forest certification promotion

• Description: Encourage certification of good forest management practices in value chain
• Scope: Value chain (upstream suppliers)
• Time horizon: Ongoing, medium to long-term partnerships
• Mechanism: Pay higher price for certified cork
• Expected outcomes: Promotion of biodiversity and ecosystem services; positive impact identified through valorisation of raw materials from suppliers with forestry certification
• Link to policy: Energy, Environment and Biodiversity Policy

8. Technical training and support for forestry producers

• Description: Training and technical support for forest owners to promote best management practices and investment in conservation
• Scope: Value chain (upstream)
• Time horizon: Short, medium and long-term
• Current activity: Managing plantations and providing technical support on 130 ha of woodland under monitoring
• Expected outcomes:
  • Preservation and increase of cork oak population, profitability and resilience
  • Encourage best management practices
  • Promote conservation of cork oak forests and ecosystem services
  • Increase resistance to droughts, pests and diseases
  • Higher survival rates
• Link to policy: Collaborative approach to natural resource management; building business model resilience

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Decarbonisation and energy efficiency actions

9. Climate Change Mitigation Transition Plan implementation

• Description: Decarbonisation and energy efficiency actions
• Scope: Own operations (Scope 1 and 2) and value chain (Scope 3)
• Time horizon: Ongoing, aligned with well below 2°C scenario
• Targets:
  • Reduce Scope 1 and 2 emissions by at least 2.5% per year
  • Working on Scope 3 emissions reduction programme
  • Aim to set science-based targets over next three years
• Expected outcomes: Reduce impact of climate change on biodiversity and ecosystems; promote ecosystem resilience in medium and long-term
• Link to policy: Transition plan; contribution to reducing biodiversity loss caused by climate change

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Water efficiency actions

10. Water efficiency programme

• Description: Series of annual actions to promote water efficiency; specific objectives for raw material preparation, industrial and distribution activities; KPI monitoring
• Scope: Own operations, particularly activities in water-risk zones
• Time horizon: Ongoing annual actions
• Expected outcomes: Reduce water withdrawal needs; reduce pressure on ecosystems in water-risk zones
• Link to policy: Addresses dependency on water as natural resource in high water-stress areas

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Awareness and education initiatives

11. Cork Magazine (Revista de Cortiça)

• Description: Quarterly publication for over 40 years disseminating knowledge about cork oak, cork oak forests, cork, technological developments, new products, sustainability credentials
• Scope: External stakeholders, value chain
• Time horizon: Since 1984, ongoing
• Progress: Estimated three million copies distributed over four decades
• Expected outcomes: Increased awareness and knowledge about cork ecosystems and products

12. Art and culture initiatives (2024)

Multiple projects to raise profile of cork and strengthen leadership position:

• Building Centre conference (London): Conference on sustainable construction paradigm
• Leonor Antunes installation: 1,399 m² Cork Essence floating cork floor at Calouste Gulbenkian Foundation Modern Art Centre
• Material Matters (London Design Festival 2024): "Spirit of Place" installation with five cork columns
• National Autistic Society Garden: Co-designed garden using expanded cork, creating sensory-comfortable space
• Building restoration support: Donations and material supply for churches and local museums

Scope: External stakeholders, communities, customers Time horizon: 2024, ongoing strategy Expected outcomes: Position cork prominently in world architecture and design; promote incorporation in sustainable construction; raise awareness of cork versatility and sustainability Link to strategy: Aligned with strategic objectives on ecosystems/biodiversity, customers/end-consumers, community/society

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Additional initiatives

13. Act4nature Portugal commitment

• Description: Business initiative for biodiversity conservation; ten common commitments plus individual SMART commitments
• Scope: Own operations and value chain influence
• Time horizon: Ongoing
• Expected outcomes: Strengthened commitment to biodiversity and ecosystem services conservation
• Link to policy: Act4nature Portugal principles

14. Compliance and monitoring

• Description: Compliance with EU EIA Directive (Directive 2011/92/EU) via Portuguese Decree-Law no. 152-B/2017; mitigation measures in Natura 2000 protected areas (portions of Herdade da Baliza and Herdade de Rio Frio)
• Scope: Own operations
• Time horizon: Ongoing
• Expected outcomes: Ensure environmental protection; implement required mitigation measures

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Financial resources allocated

Green finance instruments

Corticeira Amorim has made significant investments and obtained targeted funding to support Biodiversity Transition Plan implementation:

Investment in forestry properties

• Total investment: €56.9 million
• Main funding source: Sustainable finance instruments

Green Bond (2020)

• Amount: €40 million
• Type: First Green Bond in cork industry, private subscription, without guarantees
• Term: 5 years
• Interest: Fixed rate every six months
• Repayment: Staggered (25% at end of 4th year, 75% at maturity)
• Allocated to biodiversity: €6.1 million to "environmentally sustainable management of living natural resources" category
• Status: First instalment (€10M) repaid 3 December 2024; second operation (€20M) matured 3 August 2024
• Purpose: Under Green Bond Framework

Green Commercial Paper Programme 1 (2021)

• Amount: €11.6 million
• Date: 17 December 2021
• Maturity: 22 December 2026
• Purpose: Finance investment in photovoltaic panels across Business Units

Green Commercial Paper Programme 2 (2022)

• Amount: €35 million
• Maturity: 26 November 2029
• Framework: Corticeira Amorim Green Finance Framework – November 2022
• Purpose: Refinance acquisition of Herdade de Rio Frio, S.A.; acquisition of 1,855 hectares land; finance investment in new cork oak plantations (Intervention Project Corticeira Amorim Forestry)

Green Commercial Paper Programme 3 (2022)

• Amount: €20 million
• Maturity: 20 June 2027
• Framework: Corticeira Amorim Green Finance Framework – November 2022
• Purpose: Same as Programme 2

Sustainability-Linked Commercial Paper Programmes (2024)

• Number of programmes: 2
• Total amount: €55 million
• Maturities: 3 and 5 years
• Framework: Corticeira Amorim Sustainability-Linked Financing Framework - May 2024
• Mechanism: Interest rate influenced by achievement of objectives

Non-financial resources

Partnerships

• Medium to long-term partnerships with cork suppliers
• Forest Stewardship Council (FSC®) certification partnerships
• Research partnerships with forestry-related partners
• Act4nature Portugal (BCSD Portugal initiative)
• Green Cork programme (community, schools, social institutions)
• Various R&D project collaborations

Dedicated business unit

• Amorim Florestal Business Unit: Autonomous unit with professional and independent executive management for centralised procurement, storage and preparation management
• Team: Specialised team exclusively focused on raw materials
• Functions: Manage raw materials from multi-national perspective; promote forest certification; improve technical quality; enter R&D partnerships; develop forest R&D projects on genetics and pest/disease control; recycling actions

Human resources

• Technical support team providing monitoring for 130 ha of woodland
• Training programmes for employees on biodiversity and sustainability
• Technical training teams for forestry producers

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Expected outcomes and KPIs

Quantified targets and outcomes

• Planting ambition: One million cork oaks on properties under management (2020-2030)
• Progress to 2024: 590,300 cork oaks planted since 2011
• Area planted: 1,595 hectares since 2011
• Area under management actions: 3,151 hectares since 2011
• Total area under direct management: 8,181 hectares
• Green Cork cumulative: 1.69 million native trees planted since 2006
• Green Cork 2024: 113,500 trees planted, 38 tonnes cork stoppers collected
• FSC® certified forest management at Rio Frio
• Climate target: Reduce Scope 1 and 2 emissions by at least 2.5% per year

Qualitative outcomes

• Increased cork oak population
• Enhanced climate resilience of cork oak through R&D
• Preservation of cork oak forests and ecosystem services (carbon sequestration, climate regulation, fire prevention, hydrological regulation, soil protection, biodiversity)
• Reduced soil degradation
• Improved water infiltration and groundwater replenishment
• Increased profitability and availability of future cork raw materials
• Enhanced business model resilience
• Attraction of investors and access to ESG funds
• Promotion of biodiversity through FSC® certified supply chain

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Links to policies and targets

• Transition plan (section 6.1.1)
• Energy, Environment and Biodiversity Policy
• Forest Management Plan
• Policies, actions, targets and metrics related to biodiversity and ecosystems (sections 6.2 and 6.3)
• FSC® principles and criteria
• Act4nature Portugal commitments (ten common + individual SMART commitments)
• Green Bond Framework
• Green Finance Framework – November 2022
• Sustainability-Linked Financing Framework - May 2024
• Purchasing Policy
• Suppliers' Code of Ethics and Conduct
• Code of Business Ethics and Professional Conduct

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Mitigation hierarchy approach

Corticeira Amorim integrates nature-based solutions and follows the biodiversity mitigation hierarchy:

1. Avoid: First priority to avoid negative impacts on biodiversity and ecosystems
2. Minimise: If avoidance not possible, actions aimed at minimising impacts
3. Restore/Rehabilitate: If necessary, actions to restore/rehabilitate ecosystems where impacts occurred

Note: Until 2024, the Organisation has not incorporated biodiversity offsets for any assets or operations.

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Monitoring and compliance

• Regular phytosanitary status monitoring of forest stands
• Mitigating measures against pests and diseases
• Fire prevention actions following Municipal Forest Fire Defence Plans
• Five-yearly revision of Forest Management Plans
• Compliance with EU EIA Directive and Portuguese national legislation
• Mitigation measures implemented in Natura 2000 protected areas
• KPI monitoring for water efficiency and other environmental metrics

Targets related to biodiversity and ecosystems

Corticeira Amorim has established biodiversity and ecosystems targets under its "Sustainable by nature" programme, aligned with the 2030 Agenda for Sustainable Development (SDGs 11, 12, and 15), the Kunning-Montreal Global Biodiversity Framework, and the EU Biodiversity Strategy for 2030.

2030 Goal

Preserve the cork oak forest and ecosystem services by increasing knowledge, mobilising resources and proposing initiatives

2030 Targets

The Programme sets qualitative targets for 2030, applicable to the entire perimeter:

• Strengthen efforts to protect and safeguard cultural and natural heritage
• Promote the implementation of sustainable forest management and mobilise resources
• Integrate the values of ecosystems and biodiversity

Scope and Perimeter

• Targets currently apply to the sustainability targets perimeter (a subset of the financial perimeter)
• The company states: "Based on the double materiality assessment carried out in 2024 and the increase in the perimeter of the Consolidated Sustainability Statement to equal the perimeter of the financial statements, during the 2025-2027 strategic cycle Corticeira Amorim will reflect on the need to extend the perimeter of the targets and define new targets and metrics."

Resources Allocated

• During 2024: 921,900 euros allocated to management of impacts, risks and opportunities related to climate change (CAPEX and/or OPEX for Forest Management activity - CCM 1.3)

Note: The company sets quantitative targets aligned with strategic cycles (usually three years) with an ambition for 2030, but specific quantified targets, baseline years, and baseline values are not disclosed in the excerpts provided.

Impact metrics related to biodiversity and ecosystems change

Forest estates under management

Corticeira Amorim is responsible for managing a total area of 8,181 hectares across three agroforestry properties: Herdade da Venda Nova, Herdade da Baliza and Herdade de Rio Frio.

Forestry Intervention Project

Accumulated values at the end of the period

From 2021 to 2024, the total area of intervened forest properties under management was 3,151 ha, of which 1,595 ha corresponded to plantations or densification, for a total of 590,000 cork oaks planted from 2021 to 2024.

Biodiversity sensitive zones

Corticeira Amorim has identified two sites located in biodiversity sensitive zones:

Herdade de Rio Frio: Intersects the Natura 2000 Network in a small area of 15.3 hectares (approximately 0.3% of the total estate area of 5,105 hectares). The estate has an FSC® certified area of 4,348 hectares, with 724 hectares densified in the last two years.

Herdade da Baliza: The Tejo Internacional, Erges e Pônsul Special Protection Area (PTZPE0042) covers 51.4% of the property and 52.6% is within the Tejo Internacional Natural Park. Total estate area is 2,799 hectares.

Herdade da Venda Nova: 277 hectares total area. No protected area overlap mentioned.

Brief property descriptions

• Herdade de Rio Frio (HRF): Located in Setúbal district, total area approximately 5,105 hectares. Predominantly forested with cork oak forests. A small strip at its northern end (15.33 ha) intersects the Tagus Estuary Special Area of Conservation (ZEC) (PTCON0009).

• Herdade da Baliza: 2,799 hectares in Castelo Branco district. Forestry vocation, dominated by eucalyptus being converted into cork oak forest.

• Herdade da Venda Nova: 277 hectares in Setúbal district. Areas of cork oak plantations around five years old.

Accounting principles

Intervened forest properties under management refer to areas where specific maintenance and conservation actions have been carried out, validated by entities specialised in forest management and sustainability.

Planted/added forest properties under management include areas where new plantations or tree densifications have been carried out, validated by specialised external bodies.

Planted cork oaks refer to the number of cork oaks planted in specific areas during a given period, validated by external organisations.

Assessment scope

The study focused on agroforestry, raw material preparation and industrial activities throughout the various geographies in which Corticeira Amorim operates. The study concluded that none of Corticeira Amorim's raw material preparation and industrial activities take place in classified areas. Only the agroforestry operations intersect with protected areas as detailed above.

Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities

Phase-in exemption

For the first year of reporting, some phase-in provisions applicable to all entities under ESRS were used, particularly with regard to disclosures about the expected financial effects of material risks under disclosure requirements SBM-3, E1-9, E2-6, E3-5, E4-6 and E5-6.

Policies related to resource use and circular economy

Corticeira Amorim has adopted policies that address resource use and circular economy practices.

Energy, Environment and Biodiversity Policy

Key content and principles:

• Promotes good environmental practices among suppliers and customers
• Encourages responsible consumption and the circular economy
• Focuses on reducing waste
• Reduces the amount of raw materials used
• Limits packaging and favours recycled and/or recyclable materials
• Promotes sustainable raw materials, such as those from sustainably managed forests
• Integrates sustainable practices into product development, including:
  • Choice of materials with lower environmental impact
  • Reuse of by-products in the production process
  • Manufacture of durable products that can be reused, recycled and/or composted

Lines of action:

• Integrated production process that reuses all by-products associated with cork processing
• Reducing the generation of non-cork waste and promoting its recovery
• Extending the life of materials through industrial symbioses
• Recycling of cork products at the end of their life-cycle

Scope:

• Applies to all the Organisation's companies
• All the Organisation's clients, business partners and suppliers are expressly required to respect and/or adhere to the principles set out therein

Governance and oversight:

• The company refers to section 3.2.1 Policies related to climate change mitigation and adaptation for information on policy governance and oversight

Alignment with international standards:

• The policies adopted by Corticeira Amorim are in line with the main relevant international frameworks (detailed information is cross-referenced to section 3.2.1 Policies related to climate change mitigation and adaptation)

General Sustainability Policy

Key content and principles:

• Establishes commitment to apply circular economy principles
• Focuses on reducing waste
• Promotes prolonging the life of materials
• Promotes the regeneration of natural systems
• Developed to prevent, mitigate and remediate actual and potential impacts
• Addresses risks and exploits opportunities from the use of non-renewable resources, the circular economy and waste

Scope:

• Applies to all the Organisation's companies
• All the Organisation's clients, business partners and suppliers are expressly required to respect and/or adhere to the principles set out therein

Governance and oversight:

• The company refers to section 3.2.1 Policies related to climate change mitigation and adaptation for information on policy governance and oversight

Alignment with international standards:

• The policies adopted by Corticeira Amorim are in line with the main relevant international frameworks (detailed information is cross-referenced to section 3.2.1 Policies related to climate change mitigation and adaptation)

Actions and resources related to circular economy

1. Continuous improvement in materials cataloguing and waste efficiency

What it does:

• Continuous analysis of internal processes and waste to identify opportunities to improve efficiency and reduce waste
• Reclassification of materials (biomass, packaging, raw materials and other materials) across all BUs to align criteria and conversion factors

Scope: Own operations
Time horizon: Ongoing in 2024, continued in 2025
Resources: IT, purchasing and pivot areas of the BUs
Expected outcomes: Increase quality and reliability of data, ensure general alignment across BUs

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2. Circular economy project

What it does:

• Develop new technologies for processing cork unsuitable for the stopper industry and other industrial by-products (industrial symbioses)
• Produce wider range of composite cork in combinations, thicknesses, densities and widths not previously used
• Example: MAC020 Heavy Mass Layer combining cork with thermoplastics for mobility applications (cars, buses, caravans)

Scope: Own operations and downstream (products placed on market)
Time horizon: Ongoing; MAC020 launched 2024
Resources: Not quantified
Expected outcomes:

• Extend supply of circular economy products to market
• Help reduce pollution and reuse materials that would otherwise be waste
• 8.1% of total materials consumed in 2024 were recycled materials

Links to targets: Aligns with 2030 ambition to apply circular economy principles by reducing waste, prolonging life of materials and regenerating natural systems

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3. Increase efficiency project

What it does:
Intervene at different stages of production process for cork stoppers, flooring, cladding and insulation products to better use raw materials and reduce waste generation

Key initiatives:

• "Recupera" - classification of waste by homogeneous properties
• "Recork" - reuse of cork composite by-products created in flooring production
• "Recupera Wise" - waste recovery initiative
• Granule reduction initiative - 72% reduction in specific consumption of granules in moulding process at Amorim Cork BU through compression rate reductions and steam valve adjustments

Scope: Own operations
Time horizon: Started 2021, ongoing through 2024
Resources allocated:

• Total investment: €825,800 (for Recupera, Recork, Recupera Wise)

Expected outcomes / achieved results:

• 233 tonnes of waste recovered in 2024 from Recupera/Recork/Recupera Wise initiatives
• 3,660 tonnes accumulated recovery since 2021
• 647 tonnes of waste valorised in 2024 from granule reduction initiative
• Total 2024: 1,942 tonnes of materials recovered across all project actions

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4. 100% PVC-free flooring project

What it does:

• Launch of Wicanders Wise brand, 100% PVC-free
• Replace ranges using PVC with new products based on digital printing technology
• Digital printing directly onto cork replicates lifelike quality and texture of wood or stone visuals

Scope: Own operations and downstream (products)
Time horizon: Launched 2024
Resources allocated:

• Investment: €7 million to acquire new digital printing line

Expected outcomes: Eliminate PVC from flooring product ranges

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5. Sustainable packaging project

What it does:

• Promote good environmental practices among suppliers and customers
• Encourage responsible consumption and circular economy
• Actions include reducing waste, reducing weight of materials used, limiting packaging
• Favour recycled and renewable materials that are recyclable or compostable at end of life

Scope: Own operations and value chain (suppliers and customers)
Time horizon: 2024 ongoing; target 2030
Resources: Not quantified
Expected outcomes:

• Target: 0% virgin non-renewable packaging materials by 2030 in operations in Portugal
• Current status (2024): 63.4% of packaging materials are biological materials

Links to targets: Part of 2030 sustainable packaging goal

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6. Cork recycling project

What it does:

• Strategic importance of circularity since 1963
• Collaborate with programmes for selective collection of cork stoppers for recycling
• Transform collected stoppers into granules for new products
• Receive cork stoppers and other end-of-life cork at three industrial units licensed in Portugal for cork recycling
• After transformation into granules, material incorporated into 'non-stopper' products

Scope: Own operations and downstream (collection from end consumers)
Time horizon: Ongoing; pioneered since 1963
Resources: Three licensed industrial units in Portugal for cork recycling

Initiatives by geography:

• Green Cork (Portugal):

  • Started 2008 in partnership with Quercus and other partners
  • By 2024: ~8.4 million cork stoppers collected, ~113,500 native trees planted
  • Campaigns: "Green Cork Schools/Social Welfare Organisations (IPSS)/Scouts", "Cork by Cork, We Sow Collection", "Wines that go well with the environment", "Corks that leave a mark"

• Ecobouchon (France):

  • World champion in selective collection of cork
  • ~50.3 million stoppers collected and recycled in 2024
  • Supports associations: Agir Cancer Gironde, NICOLAS, France Cancer, Bouchons Bonheur, Handi'Chiens

• Cork Collective (USA):

  • Launched 2024
  • Partnership with Rockwell Group and Bluewell & Southern Glazer's Wine & Spirits
  • Collect used cork stoppers from restaurants and hotels in New York City
  • Transform cork into solutions for playgrounds and other applications within local communities
  • Plan to extend to other US states

• Other initiatives:

  • "Etico" (Italy)
  • "Recork" (North America)
  • "Cork Life" (South Africa)
  • "Cork2Cork" (Belgium, Germany, Holland, Spain, France, Italy) in partnership with NH Hotels

Expected outcomes / achieved results:

• 2024: Equivalent to 270.8 million stoppers collected and incorporated into production
• Material used for non-stopper products
• 1,219 tonnes of cork collected and recycled in 2024 (equivalent to 1.30 tonnes recycled cork per million euros sold or 5.1% of cork stoppers produced by Corticeira Amorim)

Links to targets: Promotes closure of life cycle and reduces dependence on virgin resources

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7. Waste management improvements

Continuous improvement in cataloguing of industrial waste:

• Introduction of new LER codes for waste management operations
• Aimed at receiving more waste for recycling
• Correct classification essential for recycling and reuse

Review of hazardous waste separation procedure at Lamas waste yard (2024):

• More detailed identification of waste type with new LER codes
• Training for waste management operators to correctly identify and separate hazardous waste
• Monitoring teams in factories to produce less waste

Scope: Own operations (Amorim Cork BU, Lamas industrial unit)
Time horizon: 2024 ongoing
Resources: Training for waste management operators
Expected outcomes:

• More efficient waste management
• Increase recycling through correct classification
• Reduce waste production
• Current status: 81.6% of non-cork waste valorised (diverted from disposal)

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8. Life cycle assessments (LCAs)

What it does:

• Carry out studies to assess environmental impacts and carbon footprints of main products
• Focus on different stages of life cycle (cradle-to-gate and/or cradle-to-grave)
• Include forestry activities, cork preparation, forest transport, production, finishing, packaging, soil use
• Provide quantifiable data to 27,400 national and international clients on how to reduce carbon footprint of their products

Examples:

• Naturity® cork stoppers LCA (2024): Carried out by PwC; confirms negative carbon footprint; outperforms artificial alternatives in 5 of 7 main environmental indicators
• Navicork FD01 LCA (2024): By ITECONS; confirms negative carbon footprint for marine decking solution; -0.97 kg CO₂ eq./m² for 6mm thickness, -0.69 kg CO₂ eq./m² for 8mm

Scope: Products across value chain (cradle-to-gate and cradle-to-grave)
Time horizon: Ongoing; studies released 2024
Resources: External organizations (PwC, ITECONS)
Expected outcomes:

• Studies covering products accounting for 69.4% of Corticeira Amorim's consolidated sales in 2024
• Highlight unique advantages of cork compared to other forest products
• Attest that Corticeira Amorim engages in activities with positive impact on climate regulation
• 69.1% of Corticeira Amorim's 2024 sales corresponded to technically recyclable products

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9. Raw material management and circularity strategy

What it does:
Centralised management of purchasing, storage and preparation in Amorim Florestal BU enables:

• Specialised team exclusively focused on raw materials
• Make most of synergies and integrate all raw materials (cork) manufactured by other BUs
• Multinational management of raw materials
• Strengthen presence in cork-producing countries
• Promote forest certification and improve technical quality of products
• Develop R&D forest projects on cork oak genetics and to fight pests and diseases
• Carry out recycling actions which increase circularity and make cork available for non-stopper applications
• Ensure optimal mix of raw materials to meet market demand
• Ensure long-term supply stability of cork
• Propose multi-annual purchasing policy to Board of Directors

Scope: Own operations and upstream (suppliers, forestry)
Time horizon: Ongoing strategic approach
Resources: Amorim Florestal BU with autonomous professional and independent executive management
Expected outcomes:

• 100% of cork used (no cork waste)
• Reduce exposure to raw material scarcity risks
• Promote resilience of business model

Links to policy: Raw Material Policy managed by Amorim Florestal BU

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Future prospects

In 2025, Corticeira Amorim will follow up on actions already underway. New material impacts, risks and opportunities related to circular economy identified from review of double materiality assessment will be incorporated into new 2025-2027 strategic cycle, with analysis of actions and increase in sustainability perimeter to equal financial perimeter.

Targets related to circular economy

The company discloses qualitative targets for 2030 under the "Sustainable by nature" programme related to circular economy:

2030 Goal

Apply circular economy principles by reducing waste, prolonging the life of materials and regenerating natural systems.

2030 Targets (qualitative)

• Improve the efficiency of global resources, thereby achieving sustainable management
• Manage the use of chemical products in an environmentally sound manner
• Substantially reduce waste by reducing, recycling and reusing materials

Scope

• Applicable to the entire perimeter of sustainability targets (see section 1.3.1 Strategy, business model and value chain)
• Aligned with SDGs No. 8 (Decent work and economic growth) and No. 12 (Responsible consumption and production)

Future actions

Based on the double materiality assessment carried out in 2024 and the increase in the perimeter of the Consolidated Sustainability Statement to equal the perimeter of the financial statements, during the 2025-2027 strategic cycle Corticeira Amorim will reflect on the need to extend the perimeter of the targets and define new targets and metrics.

Note

The Sustainable by nature programme sets quantitative targets for the sustainability targets perimeter, aligned with the Company's strategic cycles (usually three years) and with an ambition for 2030. However, specific quantitative values, baseline years, and baseline values are not disclosed in the provided excerpts.

ESRS E5-4: Resource Inflows

Overview

In 2024, Corticeira Amorim consumed a range of materials including raw materials, subsidiary materials and packaging materials, with cork, wood, paper, plastics and chemical products being the primary inputs. The main raw material is cork, which is harvested without deforestation, ensuring all raw material is used efficiently with no cork waste in the production process.

The Organisation consumed 76.1% virgin renewable materials, 8.1% recycled materials, and 15.8% virgin non-renewable materials. By actively collecting, sorting and recycling materials, the Company helps ensure that the value of renewable and recycled materials is prioritised, directing these materials towards higher-value applications.

Total Material Consumption by Type

Material Split by Technical and Biological Classification

Percentage Breakdown

Context and Methodology

Biological materials (76.1%): Includes cork, wood, paper and cardboard. Many of these raw materials are certified by FSC® or PEFC, or receive other checks and due diligence. Cork is harvested without deforestation and no cork is wasted in the production process.

Virgin non-renewable materials (15.8%): Includes chemical products and plastics. Chemical products are assessed before purchase and use, ensuring legal, health and safety, environmental protection, product safety, eco-labelling and circularity requirements are met. Corticeira Amorim works to replace hazardous chemical products and collaborates with suppliers to find alternative products.

Recycled materials (8.1%): Includes recycled cork, paper or cardboard, wood and/or recycled plastics.

Accounting Principles

Materials were quantified through direct measurements such as weighing or counting, with conversion assumptions made to standardise units based on historical data or supplier information. Information on materials has been recognised and measured on an aggregate basis and includes primary and secondary materials (including packaging).

• Virgin renewable materials are those used for the first time and come from resources that are rapidly replenished by ecological cycles or agricultural processes
• Virgin non-renewable materials are used for the first time and do not come from rapidly replenished resources
• Recycled materials have undergone a recovery operation whereby constituent materials have been reprocessed into products, materials or substances
• Biological materials are considered sustainable as all suppliers comply with the Suppliers' Code of Ethics and Conduct

Resource outflows

Packaging and virgin materials

Packaging containing plastic and other virgin non-renewable raw materials has been identified as a material impact. The Organisation has set a target to achieve a 15% reduction in the weight of virgin non-renewable packaging materials (baseline 2024) by 2027.

Circular economy and recyclability

Contribution to the circular economy through the commercialisation of products with a high recyclability rate has been identified as a positive impact.

The Company places renewable, recyclable and low-energy packaging products (stoppers) on the market. 100% of cork is valorised in industrial processes, with cork stoppers and other end-of-life cork applications received for treatment and grinding, after which the material returns to the production process and is incorporated into 'non-stopper' products.

Cork's natural characteristics – renewable, recyclable and biodegradable – position it as an excellent alternative to high-impact materials.

Flooring and insulation products

Amorim Cork Insulation offers ranges of insulation products that are 100% natural, recyclable, reusable and long-lasting. 100% of flooring and wall coverings are certified for indoor air quality and contribute towards sustainable construction certifications (LEED/BREEAM).

End-of-life and collection

Risk associated with the lack of an efficient collection flow for end-of-life cork stoppers has been identified. The Company supports cork stopper collection initiatives, including the Green Cork programme launched in 2008 for selective collection and recycling, and the Cork Collective project in New York.

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Phase-in exemption

For the first year of reporting, some phase-in provisions applicable to all entities under ESRS were used, particularly with regard to disclosures about the expected financial effects of material risks under disclosure requirements SBM-3, E1-9, E2-6, E3-5, E4-6 and E5-6.

Waste

Waste management approach

Production of non-recyclable waste has been identified as a negative material impact. Risk of reputational damage due to changes in societal perception with regard to the Company's waste production has also been identified.

The Organisation has set objectives under the Sustainable by nature programme for circular economy, including:

• Substantially reduce waste by reducing, recycling and reusing materials
• Target: ≥ 90% waste recovery rate (non-cork) per year (2021-24 Plan, baseline 2020)
• 2030 ambition: 100% use of cork

Cork valorisation

Contribution to waste reduction through the valorisation of 100% of the cork used in industrial processes. In the industrial units licensed in the Portuguese territory for recycling materials, Corticeira Amorim receives cork stoppers and other end-of-life cork applications, as well as by-products from other industries (materials that result from industrial symbiosis), for treatment and grinding. After being transformed into granules, the material returns to the production process and is incorporated into 'non-stopper' products.

Material recovery activity

Activity CCM 5.9 - Material recovery from non-hazardous waste is identified as a Taxonomy-eligible and aligned activity. The activity is considered to contribute to climate change mitigation and meets the technical screening criteria.

No quantitative waste generation data (total tonnes, hazardous vs non-hazardous split, or waste treatment breakdowns) is disclosed in the excerpts provided.

Policies related to own workforce

Corticeira Amorim has formalized and implemented a set of internal regulations that include the Organization's principles and commitments relating to its own workforce. These policies apply to all workers of any company that are part of the Organization.

Human Rights Policy

Key content and principles:

• Respect for human rights as a fundamental principle
• Against arbitrary detention, torture or execution
• In favor of human dignity, non-discrimination, equal rights, security and well-being, education, personal and professional development
• Freedom of conscience, religion, organization, association, opinion and expression
• Ensures all workers receive a fair salary, work in safe and healthy conditions, and have opportunity to develop professionally
• Commitment to promoting and respecting values of Human Rights and Labour Rights, both internally and among stakeholders

Scope:

• All Corticeira Amorim workers
• All entities that have an economic, institutional or social relationship with the Organization
• Clients, business partners and suppliers are expressly required to respect and/or adhere to the principles

Governance and supervision:

• Board of Directors approves the policy and successive revisions
• Previously assessed by the ECBD and the ESGC
• CEO is responsible for enforcing the policy
• Human Resources transversal support area responsible for monitoring implementation
• Business Units responsible for implementing the policy within their activities

Alignment with international standards:

• Principles of the Universal Declaration of Human Rights
• ILO Fundamental Conventions
• OECD Guiding Principles for Multinational Enterprises
• United Nations Guiding Principles on Business and Human Rights
• 10 principles of the United Nations Global Compact

Public availability:

• Available on Corticeira Amorim's corporate website in Portuguese and English
• https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring:

• Human Resources transversal support area monitors implementation
• Regular consultations with workers through climate surveys
• Action plans defined and implemented based on survey results
• Training provided to all employees on the Code of Business Ethics and Professional Conduct

Human Resources Policy

Key content and principles:

• Commitment to creating quality jobs in an environment committed to professional training and development
• Encouraging innovation and development through inclusion and diversity of gender, age, cultures, beliefs and nationalities
• Equal rights and conditions for all
• Contractual relations must be recognized and defined in accordance with applicable legislation and collective labour regulation instruments
• Organization may not avoid or circumvent legal obligations
• Commitment to ensuring fair remuneration in accordance with collective labour regulation instruments and applicable legislation
• Not to reduce remuneration except in cases provided for in the Labour Code or collective labour regulation instrument
• Working time and remuneration comply with ILO international rules on working hours
• Promotion of social dialogue through regular information and consultation with workers and their representatives
• Commitment to balancing work at the Company with personal and family lives
• All workers may associate with legal representatives, including trade unions
• Workers' representatives are not discriminated against
• Exercise of association, unionisation, collective bargaining and strike rights may not be illicitly restricted
• Guarantee health and safety conditions in the workplace
• Ensure activities do not harm health and safety of workers, subcontractors, neighboring populations or users of products
• Ensure safe and healthy working environment, adopting appropriate measures to prevent risks and accidents at work
• Comply with regulations on prevention of occupational risks
• Preventive approach to health and safety with regular training
• Priority to safety, health and well-being of workers
• Directing labour policies and procedures towards respecting principle of equality between men and women
• Preventing discrimination and differential treatment based on gender origin

Scope:

• All Corticeira Amorim workers
• All entities that have an economic, institutional or social relationship with the Organization

Governance and supervision:

• Board of Directors approves the policy and successive revisions
• CEO is responsible for enforcing the policy
• Human Resources transversal support area responsible for monitoring implementation
• Business Units responsible for implementing the policy within their activities

Alignment with international standards:

• Principles of the Universal Declaration of Human Rights
• ILO Fundamental Conventions
• OECD Guiding Principles for Multinational Enterprises
• United Nations Guiding Principles on Business and Human Rights
• 10 principles of the United Nations Global Compact

Public availability:

• Available on Corticeira Amorim's corporate website in Portuguese and English
• https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring:

• Human Resources transversal support area monitors implementation
• Regular consultations with workers through climate surveys

Code of Business Ethics and Professional Conduct

Key content and principles:

• Defines appropriate behavior with regard to ethical, social and environmental conduct
• Training provided to all workers during 2021-2024 strategic cycle
• E-learning programme developed for workers
• All new workers must undergo training as part of onboarding programme
• Workers receive full and complete version attached to employment contract

Scope:

• All Corticeira Amorim workers
• All stakeholders have access via website

Governance and supervision:

• Board of Directors approves the Code

Alignment with international standards:

• Principles of Universal Declaration of Human Rights of 1948
• Fundamental Conventions of the International Labour Organisation
• OECD Guiding Principles for Multinational Enterprises
• United Nations Guiding Principles on Business and Human Rights
• 10 principles of United Nations Global Compact

Public availability:

• Available and accessible to all stakeholders on Corticeira Amorim's website
• https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring:

• Since 2022, more than 12.6 thousand hours of training given on this Code
• Training includes final test with minimum score of 80% required
• Summary brochure provided to those who completed training

Diversity Policy

Key content and principles:

• Commitment to inclusion and diversity
• Plan for Equality, Diversity and Inclusion aimed at training, events, promoting inclusion and creating partnerships
• Partnerships established with associations linked to insertion of persons with disabilities (e.g., CRPG)
• Participation in inclusive recruitment events
• Training programme on the subject for Human Resources, Sustainability and Communication teams

Scope:

• All Corticeira Amorim workers

Public availability:

• Available at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Privacy Policy

Key content and principles:

• Cybersecurity measures that guarantee protection of workers' information

Scope:

• All Corticeira Amorim workers

Public availability:

• Available at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Purchasing Policy

Key content and principles:

• Defines set of objectives to be followed to evaluate and select new suppliers
• Based on economic, social, ethical and environmental criteria
• Guarantees mitigation of potential impacts on supply chain workers

Scope:

• All purchasing activities
• Suppliers of goods and services

Suppliers' Code of Ethics and Conduct

Key content and principles:

• Reflects Organization's culture
• Defines appropriate behavior regarding ethical, social and environmental conduct expected from suppliers
• Expectations regarding treatment of workers in value chain
• Suppliers must not use child labour, forced labour, or violate human rights
• Must guarantee health and safety conditions, work-life balance, right to privacy
• Must respect workers' rights to form associations and join trade unions

Scope:

• All suppliers of goods and services to Corticeira Amorim

Governance and supervision:

• Board of Directors approves the Code

Alignment with international standards:

• Internationally recognised human rights
• Basic labour rights

Public availability:

• Available at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Fiscal Policy

Key content and principles:

• Maintains procedures for prevention and detection of illegal practices in financial and accounting matters
• Including money laundering or financing of terrorism
• Pledges to implement good tax and social security practices
• Considers any form of fraud to be reprehensible

Public availability:

• Available at: https://www.amorim.com/en/investors/corporate-governance/governance-model/

Taking action on material impacts on own workforce

Overview

Corticeira Amorim takes actions to prevent and mitigate negative impacts, provide positive impacts on its workers, and monitor actions to reduce material risks and capitalise on identified opportunities. Implementation of initiatives is supported and coordinated by Health and Safety structures and Human Resources departments, which monitor indicators monthly. Consolidated data is reported to ECBD and the Board of Directors at least twice yearly.

Key departments involved include Human Resources, Occupational Health and Safety, Sustainability, Compliance, Corporate Governance and Communication. Resources applied include investment in ongoing training, awareness-raising campaigns, diversity and inclusion projects, improvements to working conditions, and health and safety management systems.

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Working Conditions

Job security and working hours

Corticeira Amorim contributes to long-term financial security by offering open-ended contracts and guaranteed working hours. These practices promote individual well-being and stability of the economic fabric and social development in regions where the Company operates. The Company provides financial protection in the event of illness, unemployment or retirement.

Scope: Own operations
Time horizon: Long-term
Expected outcomes: Worker financial security, reduced turnover

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Social Dialogue

Corticeira Amorim is committed to promoting social dialogue with workers through various channels including meetings, seminars, workshops, information sessions. A social climate survey is conducted every two years. OHS questionnaires are also used to listen to workers.

Key mechanisms:

• Works commissions and trade unions (all workers can join without exception)
• HR Business Partners assigned to each worker in Portugal
• Occupational Health and Safety Committees (including worker representatives)
• Quarterly meetings on business indicators with middle and senior managers
• Quick meetings at start of working hours in productive areas
• Weekly meetings in other areas

Scope: Own operations (Portugal, Morocco, Tunisia)
Time horizon: Ongoing
Expected outcomes: Integration of worker needs into decision-making, increased productivity, reduced turnover and absenteeism

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Adequate Wages and Benefits

Wages comply with legislation and applicable collective bargaining instruments (whichever benefits workers most) plus all ILO international rules on working time. Workers receive:

• Annual bonus linked to productivity
• Set of perks and benefits encouraging work-life balance
• Complementary benefits meeting needs of workers and their families

Scope: Own operations
Time horizon: Short, medium and long-term
Expected outcomes: Positive impact on economic and private situation of workers, retention

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Occupational Health and Safety

Extensive programme to promote safe and secure working environments:

Safety culture training (2024):

• 928 hours of training for managers and middle managers
• More than 100 people involved

Cork Go programme:

• 8 hours of initial training for all workers at operations start
• Covers Human Resources and Ethics (Code of Business Ethics including SA8000), SGI and Cork+
• OHS module increased to 2 hours

Cork Safety Lab:

• Paradigm shift from traditional classroom training to DOJO SST
• Interactive space visually and dynamically representing theoretical concepts
• Bridges gap between training and real work context
• Aims to increase effectiveness through concept retention and autonomous application

Scope: Own operations (Portugal)
Time horizon: Ongoing
Resources: 928 hours of manager/middle manager training in 2024
Expected outcomes: Reduction in work-related accidents (30% reduction achieved 2020-2024), improved safety culture

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Equality, Diversity and Inclusion Programme

Comprehensive programme addressing gender equality and inclusion of persons with disabilities.

Key actions (2024):

• Enhancing training on diversity, equity and inclusion for all workers, focusing on unconscious biases and inclusive behaviour
• Regular follow-up meetings with Company leaders to monitor progress
• Reviewing recruitment and selection policies to remove barriers to women joining
• Analysis methodology for gender pay gaps initiated
• New training on unconscious bias developed to prevent occurrence in recruitment
• Thematic campaigns: diversity weeks, "Tolerance Day", "8 Days and 8 Stories", "Integrity is Everyone's Responsibility. Don't be silent"
• Clear objective of hiring women for positions where gender is under-represented (without compromising merit)
• Partnerships with associations for inclusion of persons with disabilities: CRPG (Gaia Professional Rehabilitation Centre)
• Participation in inclusive recruitment events
• Training programme on inclusion for HR, Sustainability and Communication teams

Scope: Own operations (Portugal, with ambition to extend)
Time horizon: 2021-2030
Expected outcomes:

• One-third women in total workforce and management positions
• Zero discrimination
• More equal and inclusive work contexts
• Increased representation of women (achieved: from 24.1% in 2020 to 28.2% in 2024 total; from 22.4% to 26.1% in management)
• Evolution in ratios for inclusion of persons with disabilities
• Systematic debate on diversity and inclusion

Resources: Dedicated HR, Sustainability and Communication teams; partnerships with external associations

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Talent Attraction and Retention

Investment in attracting talent, especially for cork oak forest management, cork extraction and highly qualified roles.

Key initiatives (2024):

Employer branding:

• Intensified institutional presence at Job Fairs and Career Days alongside relevant educational institutions

Curricular and professional internship programmes:

• Collaborations and protocols with universities and higher education institutions
• Cork Potential and Cork Talent programmes
• Each company has internship programmes for young people

Reskilling and upskilling:

• Focus on industrial operations maintenance and support
• Aimed at upgrading skills for technological developments

Young@Cork programme:

• 170 young Corticeira Amorim managers consulted
• Action plans regarding role of young people, improving internal communication and leadership, business/process improvements, ESG strategy success

Scope: Own operations
Time horizon: Ongoing
Resources: Partnerships with educational institutions; dedicated programmes
Expected outcomes: Long-term relationships, reduced turnover, attraction of differentiating skills

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Training and Skills Development

Corticeira Amorim promotes worker motivation, involvement, participation and accountability through training and qualification processes.

Approach:

• In-house training programmes
• Performance evaluation systems
• Incentive, recognition and compensation systems

Scope: Own operations
Time horizon: Ongoing
Expected outcomes: Safeguarding and promotion of skills and know-how, increased engagement, higher productivity, higher product quality, reduced non-conformity costs

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Privacy and Data Protection

Cybersecurity measures and strict GDPR compliance to protect personal information of workers.

Scope: Own operations
Time horizon: Ongoing
Expected outcomes: Protection of workers' personal data privacy

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Whistleblowing and Remediation

Internal reporting procedure for preventing and detecting improper/illicit behaviour, corruption and bribery.

Channels:

• Reports to senior managers (verbal or written)
• Internal irregularities reporting channel in 4 languages (Portuguese, English, Spanish, French) at https://corticeiraamorim.integrityline.com
• Audit and Compliance Unit (AUC) receives and analyses communications

Process:

• AUC assesses and decides on irregularities
• Informs Board of Directors and external entities if justified
• Action plans requested when non-conformities identified
• Multidisciplinary working groups define mitigation and remediation measures
• Progress reported to ECBD

Awareness actions:

• Information in onboarding processes
• Training sessions on corporate regulations
• Internal media (intranet, emails, newsletters, posters)

Scope: Own operations and value chain
Time horizon: Ongoing
Expected outcomes: Prevention and detection of negative impacts, effective remediation

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Code of Business Ethics and Professional Conduct Training

Multimedia e-learning training programme for all workers.

Programme details:

• Individual training (computer or mobile phone)
• Final test requiring minimum 80% score
• Summary brochure upon completion
• Full Code attached to employment contract
• Available on Corticeira Amorim website

Scope: Own operations
Time horizon: 2022-2024 cycle completed; new cycle 2025-2027
Resources: 12.6 thousand hours of training since 2022
Expected outcomes: All workers aware of and committed to Code principles

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Future Prospects (2025-2027)

Corticeira Amorim will:

• Follow up on actions already underway
• Strengthen human rights due diligence plan
• Develop environmental due diligence
• Incorporate new material impacts, risks and opportunities from double materiality assessment review
• Extend sustainability perimeter to equal financial perimeter (as of 2024)
• Assess suitability of actions, targets and metrics
• Define new targets and metrics if relevant

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Resources Note

The Company is reinforcing information systems to isolate resources used for actions related to relevant issues. This will allow more efficient and transparent management of allocated resources. Progress will be reported in coming years. Current resources include investment in training, awareness campaigns, diversity/inclusion projects, working conditions improvements, and health and safety management systems, along with dedicated personnel from HR, OHS, Sustainability, Compliance, Corporate Governance and Communication departments.

Targets related to own workforce

Corticeira Amorim's Sustainable by nature programme establishes targets related to own workforce, particularly in the areas of safety, health and well-being, training and skills development, and diversity and gender equality.

Target-setting process

Targets are defined in multidisciplinary working groups coordinated by the Human Resources transversal support area, working with people in charge of areas and respective companies. These are presented to management bodies for approval and aligned with the Organisation's strategic cycles (usually three years) with an ambition for 2030.

The targets are applicable to the sustainability targets perimeter and take into account dialogue processes with workers or their legitimate representatives through meetings held on average twice a year.

Safety, Health and Well-Being

2030 Goal: Ensure the safety, health and physical and psychological well-being of all workers, and promote appropriate work environments.

2030 Targets (qualitative):

• Promote safe and secure work environments for all workers
• Provide access to essential quality health services
• Reduce the number of work-related accidents

Scope: Sustainability targets perimeter (companies within the Sustainable by nature programme)

Alignment: SDG 3 (Ensure access to quality health and promote well-being for all at all ages) and SDG 8 (Promote inclusive and sustainable economic growth, full and productive employment and decent work for all)

Additional target areas mentioned

The Sustainable by nature programme also establishes objectives, targets and metrics in:

• Training and skills development
• Diversity and gender equality

Note: The company states that quantitative targets are set for the sustainability targets perimeter, aligned with strategic cycles (usually three years) and with an ambition for 2030. However, specific quantified target values are not disclosed in the provided excerpts. During the 2025-2027 strategic cycle, the company will reflect on extending the perimeter of targets and define new targets and metrics based on the 2024 double materiality assessment.

Characteristics of the undertaking's employees

Total headcount

At the end of 2024, the Organisation had 4,485 employees (1,330 women and 3,155 men). As mentioned in Note 28 (Personnel costs) of the notes to the consolidated financial statements, the total number of employees and non-employees at the end of 2024 was 4,849 (1,453 women and 3,396 men).

Employees by gender

*In the context of Corticeira Amorim, the category "other" and/or "not reported" is not applicable.

Employees by geography

Corticeira Amorim has 69.6% of its workers located in Portugal, with no other geography accounting for more than 10% of the total number of workers.

Employees by type of contract, broken down by gender

*In the context of Corticeira Amorim, the category "other" and/or "not reported" is not applicable.

92.8% of employees have permanent employment contracts, of which 29.7% are women and 70.3% men.

Employees by type of contract, broken down by region

Rate of new hires and exits

Accounting principles: The figures disclosed for the number of people in Corticeira Amorim's own workforce who are employees refer to the end of the reporting period. To calculate the exit rate (turnover rate), the total number of employees leaving (voluntary and involuntary) was divided by the total number of employees. To calculate the rate of new hires, the total number of new employees was considered against the total number of employees.

Workers by age

In terms of age, the majority of workers belong to the 30-50 age group (52.2%), followed by the >50 age group (32.3%) and the under-30 age group (15.5%).

Accounting principles: In order to count the number of workers by age, the ages on the last day of the reporting period were taken into account, including all employees and non-employees in the following age groups: <30 years, 30 to 50 years and >50 years.

Characteristics of non-employees in the undertaking's own workforce

Number of non-employees in own workforce

On 31 December 2024, Corticeira Amorim had 364 workers in its own workforce who were not employees. Of these:

• 123 were women
• 241 were men

Breakdown by type

Non-employees in Corticeira Amorim's workforce include:

• Temporary workers: Labour hired on a temporary basis to deal with significant and generally shorter-term variations in companies' production activity (used to cope with more abrupt movements in terms of the pace of production)
• Self-employed workers: Workers who provide services or work linked to functional specialities (legal, medicine, nursing) and who do not represent a full-time occupation

Note: Self-employed workers are not material in number and only form part of the Company's own workforce in sporadic situations. They were therefore not taken into account in the collection and dissemination of data.

Methodology

Accounting principles: All the information presented is based on real data obtained directly from Corticeira Amorim's systems. The figures disclosed for the number of people in Corticeira Amorim's own workforce who are non-employees refer to the end of the reporting period and provide information about that time without taking into account fluctuations during the reporting period. However, the number of non-employees can fluctuate throughout the year due to seasonal events linked essentially to industrial activity.

Scope of coverage

The information provided on Corticeira Amorim's approach to employment, as well as on the scope and nature of the impacts arising from its employment practices, covers both employees and non-employees.

Collective bargaining coverage and social dialogue

Coverage of collective bargaining agreements

Collective bargaining agreements cover 81.2% of employees and form part of the regulation of working conditions for employees, which include, among other aspects, working hours, remuneration, access to training and career progression.

In Portugal, 100% of employees are covered by collective bargaining agreements. In other countries, 38.2% are covered by collective bargaining agreements.

Workers' association membership

The total percentage of employees who are members of workers' associations is 15.9%.

In Portugal, 11.9% of employees are part of workers' associations. In other countries, 25.2% are part of workers' associations.

Geographic scope

Corticeira Amorim has no companies with more than 50 workers inside or outside Europe that represent more than 10% of the total number of workers.

European Works Council

Corticeira Amorim has no agreement with its workers for representation by a European Works Council (EWC), a Societas Europaea Works Council (SE) or a Societas Cooperativa Europaea Works Council (SCE).

Coverage by geography and employee area (2024)

Note: Apart from Portugal, there are no countries with more than 50 workers who represent 10% of all employees.

Methodology

Collective bargaining coverage: Total percentage of employees covered by collective bargaining agreements considers those who have a collective bargaining agreement, in total or by country, divided by the total number of employees, in total or by country.

Workers' association membership: The percentage of employees covered by employee representatives considers the total percentage of employees covered by employee representatives, in total or by country, divided by the total number of employees, in total or by country.

Diversity metrics

Gender diversity in management positions

Corticeira Amorim has 608 workers in managerial positions as of 2024, of which 26.3% are women and 73.7% are men. Management positions include all those belonging to the professional categories: administrators, directors, heads of department and team leaders. This definition includes workers one and two levels below the administrative and management bodies, as well as team leaders.

Women in management positions - Multi-year comparison:

2025-2027 Plan:

2030 Ambition:

Board of Directors composition

In the current term (2024-2026), the Board of Directors consists of a Chairperson, a Vice-Chairperson and nine Members, totalling 11 incumbent members (four women and seven men).

The Executive Committee is composed of four members (one woman and three men).

Age band distribution of workforce

The majority of workers belong to the 30-50 age group (52.2%), followed by the >50 age group (32.3%) and the under-30 age group (15.5%).

Workers by age (2024):

The percentage of workers under the age of 30 has increased in recent years, which has allowed the average age of workers to stabilise and the population to rejuvenate.

Employees by gender and contract type

As of 2024, Corticeira Amorim has 4,485 employees. 70.3% are men and 29.7% are women. 92.8% have permanent employment contracts.

Employees by type of contract (2024):

Employees by type of contract, broken down by region (2024):

Methodology notes

Information is based on real data obtained directly from Corticeira Amorim's systems. Age data considers ages on the last day of the reporting period. The figures for employees and non-employees refer to the end of the reporting period. In terms of age, the majority of employees belong to the 30-50 age group (50.1%), followed by the >50 age group (32.0%) and the under-30 age group (18.0%).

Adequate wages

Assessment and conclusion

In 2024, Corticeira Amorim carried out an evaluation of the wages earned by all its employees in order to assess the adequacy of their wages.

On the basis of the evaluation criteria defined and the methodology adopted, Corticeira Amorim concluded that all its employees receive an adequate wage in accordance with the applicable benchmarks.

Methodology and benchmark

The methodology for assessing the appropriateness of wages took into account the ESRS guidelines, particularly with regard to the decision tree for defining the adequate reference wage used for comparison with the minimum wage.

For workers in the European Economic Area (EEA):

• The appropriate wage used for comparison purposes took into account the minimum wage set in accordance with Directive (EU) 2022/2041 of the European Parliament and of the Council on adequate minimum wages in the European Union
• The definition of the adequate wage for comparison took into account the minimum wage applicable by law or, if applicable, collective bargaining in each country

For workers outside the EEA:

The minimum wage used for comparison purposes took into account, in order of priority:

1. The wage level established in any international, national or sub-national legislation in force, official standards or collective agreements, based on an assessment of the wage level necessary for a decent standard of living
2. Any national or sub-national minimum wage established by legislation or collective bargaining
3. In cases of countries or regions where none of these legal instruments have been identified, a benchmark analysis taking into account proxies, with similar costs of living and incomes

Coverage

• 100% of employees were assessed
• 100% of employees were found to receive adequate wages according to the applicable benchmarks
• Coverage: approximately 70.1% of workers in Portugal, with global coverage across all geographies

Policy commitments

The Company commits to:

• Complying with international rules established by the ILO
• Following legislation in force and applicable collective labour regulation instruments
• Following the one that best protects its workers
• Taking a proactive stance and monitoring collective bargaining negotiations through the Portuguese Cork Association (APCOR)

Complementary benefits

The practice of paying adequate wages is combined with a policy of complementary benefits, including:

• Corporate health insurance
• Accident supplements
• Support loans for various needs
• Various perks and benefits to support work-life balance

Note on sector wages

The minimum wage paid in the cork sector in Portugal is substantially higher than the minimum wage in Portugal (around 10% higher).

The Company uses job qualification tools to ensure greater objectivity and conducts annual salary analyses to determine the levels of internal equity within the Organisation.

Social protection

Coverage overview

Corticeira Amorim's employees are covered by the social protection systems in force in the countries where the companies are located. These cover a significant part of the situations in which there may be a loss of remuneration, namely due to:

• Illness
• Family leave (including parental leave)
• Unemployment
• Work accidents and acquired disability
• Retirement/pensioner age

The range of benefits offered by the Company supplements these public systems, especially in cases where such systems may not be as robust. Of particular note is the health insurance, accident supplement and the possibility of occasional loans to support employees in situations of need that are provided to employees in Portugal, where Corticeira Amorim has around 70.1% of its workers.

Social security contributions

In 2024, the Company contributed €29.8 million to local social security schemes.

Country-specific provisions

Portugal (covering around 2/3 of the population):

• Parental leave: Covers both mothers and fathers, partly compulsory and partly optional

  • Mothers: up to 30 days off before giving birth
  • Shared parental leave after birth: 180 days (vs 150 days for one parent alone)
  • Father's paternity leave: 25 working days, taken twice (15 days + 10 days)
  • Family leave: up to 30 days off
  • Remote working available when accompanying a child under age 10, where job allows

• Sick leave: In some situations of short-term illness, the Company doctor can grant two days' sick leave without a deduction in salary. In the event of accidents at work for which the worker is not responsible, a supplement is paid to ensure that there is no loss in net pay.

Supplementary benefits (Portugal)

Key benefits complementing social protection:

• Corporate health insurance (with option to include direct household members)
• Medical consultations twice a week at larger units/headquarters
• Accident supplement
• Specific loans to support in situations of various needs
• Flu vaccination campaign (annual)
• Access to clinical analysis laboratories and pharmacies

Methodology

The percentage of employees covered by social protection considers the total number of employees covered, divided by the total number of employees. The head count considers the total number of employees covered by social protection systems, through public schemes or benefits offered by the company, against loss of income due to: illness, unemployment, employment injury and acquired disability, parental leave, and retirement.

The list of countries where at least one employee is not covered by social protection systems is published (specific list not provided in excerpts).

Persons with disabilities

Corticeira Amorim is committed to inclusion and diversity in the workplace, offering opportunities for persons with disabilities, including those with a disability of more than 60%, in accordance with national legislation in Portugal (where Corticeira Amorim has around 70.1% of its workers). The Company believes that inclusion is an ongoing journey and is committed to working to create a work environment where everyone feels they belong, are valued and engaged.

Workers with declared disabilities

Year: 2024

Methodology

In order to count the number of workers with declared disabilities, disabilities of more than 60% were taken into account. All workers were included, both employee and non-employee, broken down by gender. The percentages were calculated by dividing the number of workers with declared disabilities by the total number of workers, keeping the numerator and denominator consistent.

Partnerships and initiatives

Under the Plan for Equality, Diversity and Inclusion, partnerships and protocols have been established with associations linked to the insertion of persons with disabilities in the job market, such as the Gaia Professional Rehabilitation Centre (CRPG), and participation in inclusive recruitment events.

Training and skills development metrics

Workers with regular performance and career development reviews

Corticeira Amorim has implemented a performance management system that encompasses management by objectives, performance assessment and development of skills (professional development plans). It is a management tool with proven track records in promoting individual and organisational performance in companies. It covers all the Organisation's upper and middle management.

The Company has also been implementing a system with similar dimensions and specific to operational functions, which covers direct and indirect industrial operators and also the administrative population.

These programmes began in 2022 and mainly cover companies located in Portugal, although other locations have also adopted the same programmes. The overall indicator shows that 62.6% of workers are covered by this system. In Portugal, this percentage reached 76.7%.

Workers with regular performance and career development reviews (2024)

Accounting principles: The percentage of workers who have taken part in regular performance and career development appraisals considers the total number of workers who have taken part in development appraisals divided by the total number of workers, broken down by gender (men and women). The data is obtained from Corticeira Amorim's information systems and takes into account all workers (employees and non-employees).

Training hours

In 2024, the number of hours of training given to workers (employees and non-employees) totalled 107,800 hours. The number of hours of training per worker totalled 22.2 hours. Technical and on-the-job training accounted for the majority of training hours, with 54.3% of the total. Training in occupational health and safety and well-being was also significant, accounting for 25% of training hours. In addition, the training covered areas such as behaviour, compliance, ethics and corruption, the environment and biodiversity, diversity, equity and inclusion, human rights and working practices, reflecting the growing importance of these issues in the Company's day-to-day operations.

Average training hours per employee by gender and professional category (2024)

Accounting principles: The average number of training hours per worker includes the total number of training hours recorded on 31 December 2024. The figure is reported as an average per person and is calculated by dividing the total number of training hours by the total number of workers, broken down by gender and professional category. The data is obtained from Corticeira Amorim's information systems and includes all workers, both employees and non-employees.

Total investment in training

Not disclosed in the excerpts provided.

Health and safety metrics

Coverage by health and safety management system

2024

*Includes Family Audit, Investors in People, ISO 45001 and SA 8000

Note: In 2024, 57.0% of workers (employees and non-employees) were covered by certified safety management systems. External certification according to ISO 45001 and SA 8000 is implemented in 36% of production units.

Work-related injuries and fatalities

2024

Work-related ill health

2024

Days lost and absenteeism

2024

Methodology notes

Rates are calculated per 1,000,000 hours worked in accordance with ILO Code of Practice:

• Accident frequency index = Number of recordable work-related accidents / Hours worked × 1,000,000
• Work-related diseases frequency index = Number of work-related ill health / Hours worked × 1,000,000
• High-consequence frequency rate = Number of high-consequence accidents / Hours worked × 1,000,000
• Severity index = Number of days lost / Hours worked × 1,000,000
• Absenteeism rate = Days of absence / Potential days worked

Days lost are counted from the day following the accident until the worker returns to work, considering working days only. Public holidays are excluded from potential days worked.

Work-life balance metrics

Employees entitled to and taking family-related leave

All Corticeira Amorim workers in Portugal (which covers around 2/3 of the population) are entitled to family-related leave, guaranteed by current legislation. The rate of employees entitled to family-related leave at Corticeira Amorim is 100%.

In 2024, of all employees, 3.5% of women and 2.8% of men took leave for family reasons.

Employees that took family-related leave (2024)

Family-related leave provisions in Portugal

Parental leave:

• Mothers are entitled to up to 30 days off before giving birth
• After birth, parents can opt for shared parental leave:
  • Individual leave: 150 days
  • Shared leave: 180 days (30 days longer)
• Fathers are entitled to 25 working days of paternity leave (taken in two periods: 15 days + 10 days)
• Up to 30 days off for family leave
• The Company accepts absences to provide urgent family assistance
• Remote working can be used when accompanying a son or daughter under age 10, when job allows

Return-to-work and other benefits:

• The Company fully respects parental leave and time off for medical appointments during pregnancy
• Flexible and adaptable working hours are granted in situations of illness or unforeseen family circumstances
• Support for education of workers and workers' children, including school subsidies, merit scholarships (currently more than 30 per year), and gifts of toys for workers' children
• Access to company canteens for direct family members of workers
• Health insurance that allows inclusion of direct household members under favourable conditions

Methodology notes

Family-related leave includes maternity leave, paternity leave, parental leave, and carers' leave that is available under national law or collective agreements. Employees entitled to family-related leave are those covered by regulations, organisational policies, agreements, contracts or collective bargaining agreements that contain family-related leave entitlements. The percentage of employees that took family-related leave was calculated by dividing the number of employees (by gender) that took family-related leave during the reporting period by the total number of employees. The disclosure corresponds to employees in all geographies where Corticeira Amorim has employees.

Compensation metrics

Pay gap

In 2024, Corticeira Amorim maintained its commitment to transparency and fair pay, monitoring key metrics within the scope of its remuneration practices. A gender pay gap of 10.1% was recorded. With the change in the sustainability disclosure perimeter, the figures presented for 2024 are not comparable with the previous ones. However, as a result of ongoing efforts to implement equality policies and promote an inclusive and fair working environment, Corticeira Amorim had seen improvements in recent years in the pay ratio between women and men, with respect to the base salary, as well as in the overall remuneration ratio between women and men, with reference to all salary components.

Despite this positive overall evolution, the detailed analysis by functional group still shows regressions that are due to a differentiated level of hiring by professional group, the scope of different profiles in the same functional area and the fact that the groups encompass a set of employees from different countries, with different average salary levels. These groups are also not homogeneous in the composition of the roles/genders represented, which could lead to some bias.

Gender pay gap by professional category and geography (2024):

Remuneration ratio

With regard to equity in annual total remuneration, the ratio of the annual total remuneration of the highest paid employee to the median annual total remuneration of all employees was 29.9.

Methodology

To calculate the gender pay ratio by country, the average difference in gross annual remuneration between men and women included in the total number of employees was divided by the average gross annual remuneration of men employees.

To calculate the annual total remuneration ratio, the average remuneration (sum of all men and women remuneration) minus the CEO's remuneration was considered, divided by the total number of men and women employees minus the CEO's remuneration.

The disclosure corresponds to employees in all geographies where Corticeira Amorim has employees and is sourced from information systems.

Incidents, complaints and severe human rights impacts

Incidents of discrimination and harassment

According to GRI 406-1 disclosure reference, incidents of discrimination and corrective actions taken are reported in section 8 ESRS S1 – Own workforce / 8.1 Strategy / 8.1.1 Material impacts, risks and opportunities and their interaction with strategy and business model.

The excerpts provided reference the disclosure location but do not contain the specific quantitative data for:

• Number of incidents of discrimination, including harassment
• Corrective actions taken
• Number of complaints filed through grievance mechanisms
• Number of severe human rights impacts
• Status of complaints (open/resolved/under investigation)
• Total amount of fines, penalties or compensation related to incidents

Policies related to value chain workers

Corticeira Amorim's principles and commitments towards workers in the value chain are formalised in three main policies:

Human Resources Policy

Key content:

• Formalises general commitments and objectives regarding human rights and labour rights
• Covers job security, working hours, adequate wages, social dialogue, collective bargaining, work-life balance
• Addresses occupational safety and health, training and skills development
• Prohibits violence and harassment in the workplace
• Addresses human rights issues including child labour, forced labour and privacy

Scope:

• Applies to all Corticeira Amorim workers and all entities that have an economic, institutional or social relationship with the Organisation
• All clients, business partners and suppliers are expressly required to respect and/or adhere to the principles set out therein

Human Rights Policy

Key content:

• Formalises general commitments and objectives regarding human rights and labour rights
• Covers job security, working hours, adequate wages, social dialogue, collective bargaining, work-life balance
• Addresses occupational safety and health, training and skills development
• Prohibits violence and harassment in the workplace
• Addresses human rights issues including child labour, forced labour and privacy

Scope:

• Applies to all Corticeira Amorim workers and all entities that have an economic, institutional or social relationship with the Organisation
• All clients, business partners and suppliers are expressly required to respect and/or adhere to the principles set out therein

Suppliers' Code of Ethics and Conduct

Key content:

• Defines appropriate behaviour in terms of ethical, social and environmental conduct expected from suppliers of goods and services
• Requires suppliers to adhere to and comply with internationally recognised human rights
• Prohibits any violation of human rights within suppliers' industrial and/or commercial operations
• Requires suppliers to treat workers with dignity and respect, rejecting discriminatory behaviour
• Prohibits physical or psychological punishment, harassment of any kind or abuse of power
• Requires respect for workers' basic labour rights
• Prohibits child labour (minors under age 16)
• Prohibits forced or compulsory labour
• Requires respect for workers' labour rights established by law or collective regulation
• Requires guarantee of health and safety conditions, work-life balance, and right to privacy
• Requires respect for workers' rights to form associations and join trade unions
• Requires avoidance of situations of excessive dependence

Scope:

• Applies to all suppliers of goods and services to Corticeira Amorim
• Covers workers in the supplier's operations

Links to international standards:

• References internationally recognised human rights (specific standards not detailed)

Monitoring and implementation:

• Corticeira Amorim undertakes to exercise careful control over its suppliers, subcontractors and service providers
• If the Organisation detects use of forced labour, child labour or any violation of human rights, it will take appropriate measures to review contract terms or terminate the contract
• The Organisation favours contracting suppliers that adhere to the Code and may terminate relationships with suppliers that do not comply with internationally recognised human rights
• The Company carries out engagement processes and audits of its suppliers
• No human and labour rights violations have been identified to date
• The Company is committed to strengthening its due diligence processes in terms of the value chain during the strategic cycle starting in 2025

Taking action on material impacts on value chain workers

Material impacts identified

Potential negative material impacts on workers in the value chain were identified:

• Potential practice of unregulated working hours
• Exposure to occupational health and safety risks
• Potential negative impact on physical and psychological well-being due to incidents of violence and harassment in the workplace
• Potential existence of child labour and forced labour in the value chain
• Potential violation of workers' personal information

Key actions

1. Supplier selection criteria

Scope: Value chain (upstream suppliers)

Description: Selection of suppliers based on criteria beyond technical and economic aspects, preferably selecting those sharing Corticeira Amorim's principles and commitments in ESG matters, particularly those stipulated in the Suppliers' Code of Ethics and Conduct.

Specific activities:

• Requirement of supporting documents: All suppliers required to submit documents proving compliance with environmental, social, legal and qualification standards. Cork suppliers must comply with International Code of Cork Stopper Practices (ICPR) and have FSC® forest certification. Non-cork products include pre-qualification, qualification and assessment of suppliers

• Workers' health and safety: Fostering safe and healthy working environment, promoting adequate health and safety conditions in accordance with current regulations. Measures to prevent negative impacts on workers in the value chain, especially in subcontracting, by ensuring adequate training

• Annual and/or multi-annual training plan: Available to workers in the purchasing area, covering Code of Ethics and Professional Conduct, Anti-corruption Code of Conduct and Suppliers' Code of Ethics and Conduct

Expected outcomes: Suppliers comply with applicable legal and regulatory standards, as well as international standards such as ISO 45001 and ILO conventions. Ensure safe working environments, promoting prevention of occupational risks, minimisation of accidents and physical and mental well-being of workers.

Supplier requirements:

• Provision of adequate personal protective equipment (PPE)
• Implementation of ongoing occupational safety training programmes
• Provision of basic conditions (access to drinking water and clean sanitary facilities)
• Mandatory documentation before start of activities: work accident and civil liability insurance, social security payslips, fitness for work forms, risk assessments or safety procedures
• For foreign workers: specific documents proving legal labour status

2. Supplier audits

Scope: Value chain (upstream suppliers)

Description: Verification of compliance with information provided by suppliers through regular audits, carried out by internal teams or independent external entities, and continual analysis of reports and documentation supplied by suppliers.

Process: After each audit, suppliers' performance measured to assess qualification criteria and detect non-conformities. When non-conformities identified, action plan requested. Depending on criticality, follow-up audits and verification of mitigation measures carried out. May collaborate with supplier to resolve non-conformities or find alternatives if no significant progress.

Responsible parties: Procurement and Energy support area (non-cork supply chain) and Amorim Florestal BU (cork supply chain), together with BU purchasing managers, monitor progress of audits and assess effectiveness of process.

Effectiveness: In 2024, no suppliers replaced as result of supplier pre-qualification, qualification and evaluation process. No serious human rights issues or incidents identified or reported.

Resources allocated to management of material impacts

Human resources: Main support areas involved include:

• Human Resources
• Sustainability
• Procurement and Energy
• Shipping Logistics
• Compliance
• Legal
• Corporate Governance
• Communication

These areas work together with different departments of BUs to ensure compliance with strategy.

Financial resources (qualitative): Investment in:

• Internal and external audits of suppliers
• Training programmes for purchasing teams and suppliers, especially those who work on Company's premises
• Various awareness-raising actions on labour rights and sustainable practices
• Information systems

Note on quantification: Company is strengthening information systems to isolate resources used to respond to actions related to relevant topics. This will allow more efficient and transparent management of resources allocated to these initiatives. Company will report on progress in coming years.

Future prospects

Time horizon: 2025 onwards

In 2025, follow-up on actions underway. Review of double materiality assessment identified new material impacts, risks and opportunities, which will be incorporated into new 2025-2027 strategic cycle. If relevant, actions, targets and metrics will be proposed, also taking into account increase in sustainability perimeter, which as of 2024 equals financial perimeter.

Link to targets

Sustainable by nature programme: Aims to eradicate forced labour and child labour by 2030 (qualitative target). Aligned with SDG 8 - Promote inclusive and sustainable economic growth, full and productive employment and decent work for all.

Target performance: During reporting period, no cases of forced labour or child labour detected and/or reported in value chain. Company will continue to monitor and report annually on progress.

Targets related to value chain workers

The Sustainable by nature programme sets targets applicable to the entire sustainability perimeter, aligned with the 2030 agenda for sustainable development, in particular with SDG 8 - Promote inclusive and sustainable economic growth, full and productive employment and decent work for all.

Qualitative Target

Additional Information

The programme defines qualitative targets for 2030. However, the programme did not include quantitative targets and metrics for this topic. Corticeira Amorim will re-evaluate the policies and the definition of quantitative and metric targets and, if relevant, they will be incorporated into the new 2025-2027 strategic cycle, which is now beginning, also taking into account the increase in the sustainability perimeter which, as of 2024, equals the financial perimeter.

Policies related to affected communities

Corticeira Amorim has adopted policies to address impacts on affected communities, with the main policy being the Community/Society Policy and supporting principles in the Code of Ethics and Professional Conduct.

Community/Society Policy

Key objectives and commitments:

• Be part of a value chain that generates income in the places where it is established, respecting the local culture and communities and providing high quality products and a deep commitment to economic, social and environmental sustainability
• Minimise the negative impact that its activities have or may have on the communities where they are carried out, demonstrating openness and honesty, respecting local cultures and traditions, and supporting and promoting initiatives in relation to institutions, populations and local communities in general
• Repay community support by contributing to the progress, economic development and well-being of communities, encouraging small and medium-sized enterprises (SMEs) and future local entrepreneurs to achieve sustainable results and thus boost national entrepreneurship
• Be sensitive to the needs of local communities, listening and seeking to respond to their concerns, in an inclusive manner, and ensuring that, within the Organisation's operations, everyone is heard, in order to understand how to minimise any possible negative impacts
• Promote internal and external awareness-raising initiatives

Scope:

• Applies globally to all companies and to all employees of any BU that is part of the Organisation
• All entities that have an economic, institutional or social relationship with the Organisation are expressly required to respect the principles set out therein

Public availability:

• Available at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/
• Available on the corporate website in Portuguese and English
• Also disseminated through the corporate intranet

Implementation and monitoring:

• The Company provides training for all workers
• Corticeira Amorim communicates policy updates in a timely manner and promotes their dissemination and adoption throughout the Organisation
• The Organisation regularly monitors policy reach and effectiveness, seeking feedback and carrying out periodic updates to ensure clarity, accessibility and relevance

Code of Ethics and Professional Conduct

Key content:

• Establishes the Organisation's commitment to acting with integrity and responsibility in the communities where it operates
• Promotes a transparent and respectful approach, while seeking to foster constructive relations with institutions, populations and communities
• Ensures that community concerns are heard and responded to responsibly
• Consolidates ethical and sustainable practices in relations with the various stakeholders

Purpose:

• These policies are adopted to prevent, mitigate and remedy potential negative impacts on local communities

Training:

• The Company provides training for all workers, in particular in the Code of Business Ethics and Professional Conduct

Alignment with international standards:

• The policies adopted by Corticeira Amorim are in line with those recommended by the main relevant international frameworks (reference made to section 8.2.1 for detailed alignment information)

Governance:

• Reference made to section 8.2.1 Policies related to own workforce for governance and supervision information
• Community liaison working groups are responsible for ensuring dialogue takes place and reporting to the ECBD on progress and results

Taking action on material impacts on affected communities

As a result of the double materiality assessment process, real positive impacts were identified related to local community development and engaging in open dialogues with local communities, ensuring the right to freedom of expression as a civil right of the community.

The Organisation works continuously to generate positive impacts in the local communities where it operates, with the ambition of promoting economic growth in a sustainable and inclusive way. The Community/Society Policy values the return of Community support, with the aim of contributing to the progress and economic development of local communities, stimulating entrepreneurship and the sustainable growth of SMEs, thus fostering the creation of local value.

Strategic Pillars and Actions

Corticeira Amorim reinvests part of its profits in the countries where it operates, prioritising programmes that generate positive long-term benefits. These programmes implement the following pillars:

• Promote social balance, supporting the well-being, respect for human rights and social inclusion of the people and communities where it operates
• Support culture and knowledge, promoting the values of biodiversity and the circular economy through cultural and educational initiatives
• Strengthen socio-economic impact by disseminating value, knowledge and innovation in the cork sector to society

Community Engagement Initiatives

For NGOs and community stakeholders, the company implements:

• Environmental education/awareness actions
• Initiatives to defend cork oak forests and the environment
• Community engagement initiatives
• Support for initiatives/projects
• R&D+I collaboration protocols
• Working groups
• Regular meetings and contacts
• Various seminars and workshops
• In-house thematic and awareness-raising initiatives
• Visits to the cork oak forests and to Corticeira Amorim

Scope: Own operations and value chain (engagement activities span both)

Governance and Monitoring

The community liaison working group is responsible for implementing its own initiatives and actions with the local community, as well as monitoring the implementation of patronage or partnership actions. This working group is responsible for monitoring and reporting internally on progress with the actions. The ECBD (Executive Committee for Business Development) is responsible for monitoring and following up on the impact of the actions defined.

Resources Allocated

Non-financial resources:

• Community liaison working group (dedicated team)
• ECBD oversight and monitoring

Financial resources: Not quantified in the disclosure. The company states it "reinvests part of its profits in the countries where it operates" but does not provide specific amounts.

Expected Outcomes

No specific KPIs or quantified targets disclosed for community impact actions. The objective is to leverage economic growth in a sustainable and inclusive manner, guaranteeing efficient production and decent work for all.

Targets related to affected communities

Corticeira Amorim's Sustainable by nature programme defines qualitative targets for 2030, applicable to the entire sustainability perimeter:

Development of the local community

Strategic objective: Leveraging economic growth in a sustainable and inclusive way, guaranteeing efficient production and decent work for all

2030 Targets (qualitative):

• Sustain economic growth
• Strengthen the global partnership for sustainable development

Alignment: SDG 8 (Decent work and economic growth) and SDG 17 (Partnerships for the goals)

Scope: Entire sustainability perimeter

Programme status

The company explicitly states: "However, the programme did not set quantitative targets for this topic."

Corticeira Amorim will re-evaluate the policies and the definition of quantitative and metric targets and, if relevant, they will be incorporated into the new 2025-2027 strategic cycle. The new strategic cycle will also account for the increase in the sustainability perimeter which, as of 2024, equals the financial perimeter.

Policies related to consumers and end-users

Corticeira Amorim addresses consumer and end-user related matters through several policies, with the Consumer Safety Policy serving as the primary policy for this disclosure requirement.

Consumer Safety Policy

Key content and principles:

• Ensure the provision of services or the sale of products in strict compliance with applicable internal procedures and legal and statutory rules, including those relating to product liability
• Provide complete, relevant, truthful and accurate information in accessible language and adapted to needs, responding to requests, questions and complaints within reasonable deadlines
• Continuously improve the performance, quality and safety of its products and services, endeavouring to meet and exceed the needs and expectations of clients and/or consumers and end-users
• Manage information with the aim of ensuring the protection of its integrity and the confidentiality of the affairs of its clients and/or consumers and end-users, undertaking not to disclose personal information without their prior consent, except in cases of legal obligation or in fulfilment of legal or administrative resolutions

Scope:

• Applies to all employees of any Business Unit that is part of the Organisation
• All entities that have an economic, institutional or social relationship with the Organisation are expressly required to respect the principles set out therein

Alignment with international standards:

The policy is in line with:

• Universal Declaration of Human Rights
• Fundamental conventions of the International Labour Organisation
• OECD Guiding Principles for Multinational Enterprises
• 10 principles of the United Nations Global Compact
• BCSD Portugal Charter of Principles
• Act4Nature Portugal
• SDGs

Public availability:

• Available on Corticeira Amorim's corporate website in Portuguese and English at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/
• Also available through the corporate intranet

Stakeholder engagement:

Corticeira Amorim takes into account the views, interests, needs and rights of stakeholders potentially affected by its activities when defining its policies.

Implementation monitoring:

• Training provided for all workers
• Policy updates communicated in a timely manner
• Regular monitoring of policy reach and effectiveness
• Feedback sought and periodic updates carried out to ensure clarity, accessibility and relevance

Supporting Policies

The following policies also address impacts, risks and opportunities related to consumers and end-users:

Diversity Policy:

• Safeguards accessibility and non-discrimination in access to the Company's products
• Ensures equal and equitable access regardless of ethnic origin, sexual orientation, gender, age or any other personal characteristic

Code of Ethics and Professional Conduct:

• Safeguards accessibility and non-discrimination in access to the Company's products
• Training provided for all workers

Privacy Policy:

• Guarantees privacy rights
• Contributes to the security of personal data of all stakeholders

Cybersecurity Policy:

• Adopts best cybersecurity practices
• Addresses emerging risks of cyberattacks
• Contributes to the security of personal data of all stakeholders

Taking action on material impacts on consumers

Overview

Corticeira Amorim takes action to mitigate actual or potential negative impacts, as well as to maximise any positive impacts on customers and/or consumers and end-users. The Company maintains a robust and dynamic Integrated Management System (IMS), which is continually reviewed and improved to ensure operational excellence. This management system is subject to regular reviews by internal and external organisations.

The communication and marketing teams, customer service teams and commercial areas of the BUs are responsible for assessing the effectiveness of the actions defined, the evolution of the metrics and the fulfilment of the targets that they report to the ECBD of the respective BUs.

Key Actions

Audits and certifications

What it does: Maintain certifications in terms of quality and safety of products, namely ISO 9001 and ISO 22000, among others. Products are subjected to voluntary or compulsory tests and audits to guarantee high standards of quality and safety.

Scope: Own operations

Time horizon: Ongoing (2024 continuation)

Link to policy: Consumer Safety Policy; addresses potential negative impacts on personal safety of consumers and/or end-users

Customer engagement programmes

What it does: Customer engagement projects including bi-annual consultations, customer satisfaction surveys, customer service teams, meetings and presentations customised to customer needs, monthly customer evaluations, personalised customer events

Scope: Own operations and downstream value chain

Time horizon: Ongoing

Link to policy/impact: Addresses feedback channels and freedom of expression impacts; Consumer Safety Policy commitment to respond to requests, questions and complaints

Customer Satisfaction Survey (Amorim Cork Composites)

What it does: Survey covering five dimensions: Communication; Commercial Management; Product; Service; and Company and Brand. Covers all stages of procurement journey. Results analysed using net promoter score methodology by sector. Teams propose actions, complemented by pivot team to create annual action plan.

Scope: Own operations (Portugal and USA customers)

Time horizon: 2024 implementation; annual action plan with monthly steering meetings

Expected outcomes/KPIs: 31% response rate achieved; net promoter score of 35% indicates good proportion of satisfied and loyal customers with room for improvement

What it links to: Addresses positive impact on feedback channels and improved products opportunity through customer feedback analysis

Think Customer Programme

What it does: Programme involving 37 areas where teams analyse results of internal interlocutors' perceptions collected through net promoter score survey and implement action plans to improve service levels

Scope: Own operations

Time horizon: Ongoing (continued in 2024)

Resources allocated: 26 workshops (3 hours long), more than 170 participants, totalling more than 500 hours in classroom

Link to policy: Consumer Safety Policy commitment to continuously improve performance, quality and safety; addresses customer service and feedback

Information and communication provision

What it does: Provide all relevant information about products on website and other communication tools, including studies and reports. For technical applications requiring specific certifications, communicate through certificates and reports from external organisations and/or laboratory tests and studies

Scope: Own operations and downstream value chain

Time horizon: Ongoing

Link to policy/impact: Consumer Safety Policy commitment to provide complete, relevant, truthful and accurate information; addresses positive impact and opportunity related to providing clear and transparent information

Cybersecurity practices

What it does: Set of cybersecurity practices to guarantee protection of customer and/or consumer data and end-users, preventing possible attacks aimed at exfiltrating data including personal data

Scope: Own operations

Time horizon: Ongoing

Link to policy: Privacy Policy and Cybersecurity Policy; addresses positive impact on data privacy protection and risk of data breaches

Resources allocated to management of material impacts

The management of material impacts related to consumers and end-users involves various departments and initiatives. The main departments involved include:

• Communication, Sustainability and Compliance support areas
• BU's Marketing, Customer Support, Sales and Quality departments

These areas work together to ensure that the Company's products and services meet consumer expectations and minimise negative impacts.

Note: No specific financial resources (capex/opex amounts) are quantified for S4-4 actions.

Targets related to consumers

The Sustainable by nature programme and the 2021-2024 strategic plan did not provide for quantitative targets relating to consumers and end-users. As such, it did not include any metrics for monitoring the Organisation's performance in this area.

The Organisation will reflect on the need to define targets and metrics relating to end consumers during the 2025-2027 strategic cycle that is now beginning.

The Company considers it important to gather information and data to assess current practices and their effectiveness to ensure that future targets and metrics are effectively aligned with the needs and expectations of consumers and end-users.

Business conduct policies and corporate culture

Corticeira Amorim has established several policies and codes governing business conduct, ethics, and corporate culture. These policies apply globally across all Business Units and are aligned with international standards including the UN Guiding Principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises, ILO Fundamental Conventions, and the UN Global Compact.

Code of Business Ethics and Professional Conduct

Scope: Applies to all workers of any company that are part of the Organisation, as well as all entities that have an economic, institutional or social relationship with the Organisation (clients, business partners, suppliers).

Key content: Establishes the Organisation's commitment to acting with integrity and responsibility, covering:

• Ethical business conduct and environmental and social responsibility
• Human rights and labour rights
• Working conditions and remuneration
• Free employment and eradication of child and forced labour
• Prohibition of harassment at work
• Protection of health, hygiene and safety
• Freedom of association and collective bargaining
• Equal treatment, diversity, inclusion and non-discrimination
• Fair competition and respect for competition legislation
• Anti-corruption and bribery prevention
• Tax compliance and good practices
• Relationships with communities

Governance: Approved by the Board of Directors. The Chief Executive Officer (CEO) is responsible for enforcing the policy. Monitored by the Executive Committee for Business Development (ECBD) and ESG Committee (ESGC).

Training: E-learning programme developed to train all employees. Since 2022, more than 12,600 hours of training have been provided. New workers must undergo this training as part of onboarding. All workers receive a full version of the Code attached to their employment contract.

Public availability: Available on Corticeira Amorim's corporate website in Portuguese and English at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

International standards: Aligned with the Universal Declaration of Human Rights, ILO Fundamental Conventions, OECD Guiding Principles for Multinational Enterprises, United Nations Guiding Principles on Business and Human Rights, and the 10 principles of the United Nations Global Compact.

Monitoring: Annual compliance verification audit carried out. No cases of non-compliance or violation were noted during the reporting period.

Anti-Corruption Code of Conduct

Scope: Applies globally to all companies and employees of any Business Unit that is part of the Organisation.

Key content: Defines and regulates behaviours and measures to be adopted by Corticeira Amorim and its stakeholders to prevent corruption and related infractions. Works in conjunction with the Corruption Risk Prevention and Management Programme (RPP).

Governance: The Audit and Internal Control Committee (AUC) receives and analyses communications and reports irregularities to the Board of Directors.

Training: Specific training was given in 2024 to new workers as part of the e-learning programme on the Code of Business Ethics and Professional Conduct.

Public availability: Available on the corporate website.

Monitoring: The RPP analyses and classifies potential risks of corruption associated with each entity and area, systematically implementing prevention measures and corrective measures to reduce probability of occurrence and impact.

Suppliers' Code of Ethics and Conduct

Scope: Applies to all suppliers of goods and services to Corticeira Amorim.

Key content: Defines appropriate behaviour in terms of ethical, social and environmental conduct expected from suppliers, including:

• Respect for internationally recognised human rights
• Prohibition of child labour (minors under 16) and forced labour
• Respect for workers' labour rights established by law or collective regulation
• Guarantee of health and safety conditions
• Work-life balance
• Right to privacy
• Rights to form associations and join trade unions
• Non-discrimination
• Environmental protection and sustainable practices
• Commitment not to violate privacy or lose customer data

Governance: Monitored through the Procurement and Energy support area, together with Business Units.

Public availability: Available on the corporate website at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Monitoring: Regular assessments of suppliers based on defined criteria, audits and other engagement activities. In 2024, no serious human rights issues or incidents were identified.

Purchasing Policy

Key content: Defines a set of objectives that must be followed to evaluate and select new suppliers based on economic, social, ethical and environmental criteria. Includes pre-qualification, qualification and assessment processes for suppliers.

Scope: Applies to all purchasing activities across the Organisation.

Monitoring: Suppliers must formalise commitments regarding privacy, prohibition of child and forced labour, and non-discrimination.

Human Rights Policy

Scope: Applies to all workers and extends to stakeholders in the value chain.

Key content: Establishes commitment to promoting and respecting Human Rights and Labour Rights, both internally and among stakeholders.

Governance: Approved by the Board of Directors.

Public availability: Available on the corporate website at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

International standards: Aligned with the Universal Declaration of Human Rights, ILO Fundamental Conventions, OECD Guidelines, UN Guiding Principles on Business and Human Rights, and UN Global Compact.

Monitoring: In 2024, Corticeira Amorim strengthened its practices by creating a due diligence programme in accordance with the UN Guiding Principles. A Respect for Human Rights Monitoring Report is published, available at: https://www.amorim.com/en/investors/corporate-governance/corporate-regulation-and-policies/

Privacy Policy

Key content: Ensures protection and privacy of workers' personal data in accordance with the General Data Protection Regulation (GDPR) and other applicable regulations. Attached to the Company's internal procedures.

Scope: Applies to all workers and stakeholders.

Fiscal Policy

Key content: Commits to maintaining procedures for prevention and detection of illegal practices in financial and accounting matters, including money laundering or financing of terrorism. Pledges to implement good tax and social security practices.

Public availability: Tax Policy and tax approach available at: https://www.amorim.com/en/investors/corporate-governance/governance-model/

Diversity Policy

Key content: Promotes diversity and inclusion, safeguarding accessibility and non-discrimination.

Public availability: Available on the corporate website.

Whistleblowing and Reporting Channels

Corticeira Amorim provides multiple channels for reporting irregularities:

• Online platform: https://corticeiraamorim.integrityline.com/frontpage
• Contact form: https://www.amorim.com/en/contacts/
• Email: supervision@amorim.com
• Post to the AUC and/or Compliance Officer
• In-person meetings

Protection: Ensures confidentiality, anonymity and non-retaliation in accordance with GDPR and Directive (EU) 2019/1937. Legal protections established for whistleblowers.

Monitoring: In 2024, eight irregularity reports were received through these channels (three related to social aspects, three to environmental aspects, and two to other topics). All communications were analysed by the AUC, which reports to the Board of Directors and external entities if justified.

Corporate Culture and Integration

Sustainability-related performance in incentive schemes: Under the Remuneration Policy for 2024-2026, 20% of variable remuneration (annual and three-year) for executive directors depends on achievement of Sustainability Index/ESG criteria and targets, including:

• Percentage of green energy (renewable electricity)
• Gender equality
• Energy efficiency
• Training
• Positive evolution of productivity
• Water use intensity

Training and awareness: Multiple programmes delivered in 2024:

• Training sessions for Board of Directors and Audit Committee on sustainability topics including CSRD, ESRS, climate risks, double materiality, value chain due diligence
• Training on Code of Business Ethics and Professional Conduct (12,600+ hours since 2022)
• Training on anti-corruption and whistleblowing procedures

Policy Accessibility and Communication

All policies are made available on Corticeira Amorim's corporate website in Portuguese and English. The Organisation provides training to all employees, particularly on the Code of Business Ethics and Professional Conduct. Policy updates are communicated in a timely manner through:

• Corporate intranet
• Emails and newsletters
• Posters in social and high-traffic areas
• Official website

The Organisation regularly monitors reach and effectiveness of policies, seeking feedback and carrying out periodic updates to ensure clarity, accessibility and relevance.

Prevention and detection of corruption and bribery

Corticeira Amorim absolutely rejects all and any unethical or dishonest conduct or behaviour, in particular fraud, corruption, money laundering or financing of criminal or terrorist organisations, and has a position of zero tolerance in relation to any act or omission that could, even potentially, lead to situations of conflict of interest, undue advantage, inducement or permeability. The Company aims to promote free competition and loyalty in the market.

Plan for the Prevention of Risks of Corruption and Related Offences (PPR)

Key content / principles:

• Identifies, analyses and classifies potential risks of corruption or related offences associated with business activity for each entity and business and support areas
• Systematises preventive measures for these risks
• Defines corrective actions that help reduce the likelihood of occurrence and impact of identified risks and situations
• Subject to constant monitoring and periodic review

Public availability:

• The PPR and periodic evaluation and implementation reports are publicised on Corticeira Amorim's intranet and corporate website

Governance:

• Corticeira Amorim has a designated person responsible for ensuring regulatory compliance
• The Audit Committee (AUC) receives and analyses all suspicions or complaints made through reporting channels
• The Audit Committee is an independent supervisory body that, in cases where investigation confirms effective misconduct, determines appropriate measures to be taken
• The Audit Committee issues a report on its inspections

Code of Business Ethics and Professional Conduct

Key content / principles:

• Addresses corruption and bribery issues
• Materialises the principles by which the Company governs its business activity

Training:

• In the 2022-2024 period, 100% of functions at risk received training on the Code of Ethics and Conduct, which covers corruption and bribery
• In 2024, 3,267 hours of training were delivered, including for members of administrative, management, and supervisory bodies, as well as roles with higher exposure to corruption and bribery risks

Suppliers' Code of Ethics and Conduct

Scope:

• Applies to suppliers in the value chain
• The Organisation invites suppliers and service providers to adhere to the same principles

Anti-corruption Code of Conduct

Key content / principles:

• Part of the integrated system that defines and regulates behaviours and measures to be adopted by Corticeira Amorim and its stakeholders

Links to international standards:

• In line with the United Nations Convention against Corruption

Additional anti-corruption measures

Roles most exposed to risk:

• The Organisation considers that the roles most exposed to the risk of corruption and bribery are those involved in negotiations, purchases, sales and relations with external partners
• Corticeira Amorim ensures specific training for these roles through appropriate regulatory compliance programmes

Whistleblowing:

• Whistleblowing channels in accordance with GDPR and Directive (EU) 2019/1937
• Ensures confidentiality, anonymity and non-retaliation
• Any cases of suspected or detected corruption and bribery can be reported through the whistleblowing channels

Training on anti-corruption:

• In 2022, all members of the Board of Directors and UAC received specialised training on corruption and bribery, including: Corticeira Amorim's Code of Business Ethics and Professional Conduct; Anti-Corruption Compliance Programme - implications of Decree-Law no. 109-E/2021; and whistleblowing Procedure - implications of Law no. 93/2021

Links to international standards:

• The integrated system is in line with the United Nations Convention against Corruption
• The Code of Business Ethics and Professional Conduct is aligned with the OECD Guidelines for Multinational Enterprises and the 10 principles of the United Nations Global Compact

Results:

• In 2024, there were no confirmed cases of corruption or bribery within the Company or in the value chain where its employees are directly involved
• The Company did not pay any fines or penalties for breaches of anti-corruption and anti-bribery laws

Incidents of corruption or bribery

Confirmed incidents

In 2024, there were no confirmed cases of corruption or bribery within the Organisation or in the value chain where its employees are directly involved.

Convictions and fines

No convictions or fines were imposed for breaches of anti-corruption and anti-bribery laws in 2024. The Company did not pay any fines or penalties for violations of anti-corruption and anti-bribery laws during the reporting period.

Disciplinary actions

No information disclosed on employees dismissed or disciplined due to corruption or bribery.

Contracts terminated

No information disclosed on contracts with business partners terminated or not renewed due to corruption or bribery.

Investigation procedures and speak-up mechanisms

Corticeira Amorim has implemented comprehensive whistleblowing procedures in accordance with Law 93/2021 of 20 December, which transposed Directive (EU) 2019/1937 on the protection of whistleblowers. The Company provides multiple reporting channels:

• Internal whistleblowing channel available online at https://corticeiraamorim.integrityline.com/ in four languages (Portuguese, English, Spanish, and French)
• Email to supervision@amorim.com
• Postal mail marked "Confidential" addressed to the Audit Committee and Company Compliance Officer
• In-person meetings by prior request
• Contact form available on the corporate website

In 2024, eight reports of irregularities were received through the whistleblowing channel. Of these, three were related to social aspects, three to environmental aspects and two to other topics. No reports of irregularities related to corruption were received.

All reports are received and analysed by Corticeira Amorim's Audit Committee (AUC), an independent supervisory body. The internal communication procedure begins within seven days of receipt, with notification to the whistleblower. Within three months of receiving a report, the responsible personnel inform the whistleblower of planned or taken measures.

The Company guarantees confidentiality, anonymity and protection against retaliation for whistleblowers, in accordance with legal requirements. The whistleblowing platform implemented in 2024 allows for anonymous reports, including anonymous verbal reports, while enhancing automation in report processing.

Prevention and detection measures

Corticeira Amorim has adopted a "zero tolerance" policy towards corruption and bribery. The Company has developed and implemented:

• A Risk Prevention Plan (RPP) for corruption and related offences
• Code of Business Ethics and Professional Conduct
• Anti-corruption Code of Conduct
• Suppliers' Code of Ethics and Conduct
• Internal training programme on anti-corruption
• Designated person responsible for ensuring regulatory compliance

The RPP identifies, analyses and classifies potential risks of corruption or related offences for each entity and business area, systematising preventive measures and corrective actions.

Training

In the 2022-2024 period, 100% of functions at risk received training on the Code of Ethics and Conduct, which covers corruption and bribery. In 2024, specialised training continued for senior management and positions most vulnerable to corruption and bribery risks, totalling 3,267 hours of training, including for members of administrative, management and supervisory bodies.

Political influence and lobbying activities

Political engagement approach

Corticeira Amorim presents itself as a non-partisan and non-political organisation.

Corticeira Amorim companies actively participate in national and international initiatives and associations in the geographical regions where they operate. Many of the Company's representatives take part in these initiatives in order to maximise their impact. Corticeira Amorim's stakeholder representation activities address a variety of important topics, and the Company maintains clear positions on these issues. These positions are outlined in relation to the material impacts, risks and opportunities identified.

Ethical standards and guidelines

The members of Corticeira Amorim's management and supervisory bodies do not hold comparable positions in the Public Administration (including regulators), nor did they in the two years prior to their appointment.

According to the Rules of procedure of the Board of Directors, members must:

• Punctually inform the Chairperson of any facts that may constitute or give rise to a conflict between their interests and the interests of Corticeira Amorim
• Promptly inform the Chairperson of any and all circumstances, changes and/or transactions that may in any way create doubt as to a potential conflict or that, in general, may conflict with their duties towards Corticeira Amorim
• In the event of a conflict of interest, the member of the Board of Directors in question may not interfere in the respective decision-making process, without prejudice to the duty to provide any information and clarifications requested

Potential conflicts of interest are assessed when checking requirements for appointment. The Audit Committee informs the Board of Directors or the Appointment Committee of situations that potentially generate conflicts of interest, and supports assessing situations including:

• Whether the person concerned or a person with whom he/she has a close personal relationship simultaneously holds a management position or a first line reporting position in Corticeira Amorim, Group companies or competing entities
• Significant business relationships in the last three years with Corticeira Amorim, Group companies or competing entities
• Roles of high political influence held by the person concerned or a person with whom he/she has a close personal relationship

Trade association memberships and contributions

In 2024, the value of the contributions to national and international associations totalled around €695,900 for the financial perimeter.

Further information on the national and international associations in which Corticeira Amorim participates can be found at: https://www.amorim.com/en/sustainability/governance/voluntary-commitments/.

Political contributions

Corticeira Amorim does not make political contributions as it presents itself as a non-partisan and non-political organisation.

Lobbying expenditure

No specific lobbying expenditure is disclosed separately from trade association memberships.

Payment practices

Corticeira Amorim's standard payment terms are 70.2 days, but other terms can be agreed as part of contract negotiations. In some cases, Corticeira Amorim contracts confirming arrangements that allow suppliers to anticipate payments. There is an operation in which confirming conditions are added to ESG performance, encouraging improved practices in this area. Corticeira Amorim is committed to preventing late payments to suppliers, especially when it comes to small companies.

As of 31 December 2024, there were three lawsuits pending for late payment due to non-compliance with established agreements by suppliers.

Accounting principles

Standard payment days: standard payment days to suppliers are calculated as the value of accounts payable, divided by the sum of transport costs, other operating costs and other external costs, multiplied by 365.

Ongoing lawsuits for late payments (no.): number of court cases at the end of the year aimed at resolving a dispute between a supplier and Corticeira Amorim, directly related to late payment or non-payment by Corticeira Amorim to the supplier.

Key metrics