Tubacex S A : 2023 Non financial statement

NON-FINANCIAL INFORMATION STATEMENT

2023

Statement from the Chairman and CEO 1 Organizational Profile

	1.1.	Group Presentation and Companies
	1.2.	Corporate Governance
	1.3.	Purpose, ESG Ambition, Mission, Vision and Values
	1.4.	Membership of Associations
2	1.5.	TUBACEX Key Figures
Our Environment
2.1.	Factors and Trends
3	Our Strategy
3.1.	Business Strategy
4	Risk Management
5	Sustainability
5.1.	Sustainability Strategy
5.2.	Materiality Assessment
	5.3.	Moving towards neutrality and fostering business circularity
		5.3.1.	Environment
		5.3.2.	Supply Chain
	5.4.	Contributing to the development of innovative solutions for the energy transition
		5.4.1.	Customers
	5.5.	Taking care of our people and the immediate environment
		5.5.1.	People
		5.5.2.	Human Rights
		5.5.3.	Society
	5.6.	Doing the right thing and encouraging transparency
		5.6.1.	Ethics and Integrity
		5.6.2. Fighting Bribery and Corruption
6	5.7.	Contribution to the 2030 Agenda
Fiscal Information
7	Taxonomy
Annex I: Recalculated Indicators
Annex II: Reference table of Law 11/2018 on Non-Financial Information

requirements and Global Reporting Initiative contents (GRI indicators)

This Sustainability Report is part of the TUBACEX management report. It includes information related to en- vironmental, people, social, human rights, anti-bribery and corruption issues according to the results obtained in its materiality assessment and sustainability strategy. It deals with priority matters in relation to ESG, which sets forth basic action principles and corporate commitments.

The report complies with the requirements laid down in Act 11/2018 of December 28, as regards the disclosure of non-financial information. Likewise, pursuant to the above Act, the information provided in this report is subject to external audit. [GRI Disclosure 2-5]

On the other hand, it includes all significant impact from the reporting period, establishing priorities regarding material information based on the main references for the preparation of sustainability reports. These include the GRI (Global Reporting Initiative) standard, which is the most widely used internationally for this type of reporting, as well as the EFRAG (European Financial Reporting Advisory Group) guidelines. Likewise, the supervisory publications of the Non-Financial Reporting Statements disclosed by ESMA (European Securities and Markets Authority) and the CNMV (National Securities Market Commission) are also taken into account.

This non-financial information statement covers the period from January 1st to December 31st, 2023. The information relating to 2022 is presented for comparison purposes with that of 2023. It includes the entire Group, unless otherwise specified for certain indicators where the specific scope will be explained.

Statement from

the Chairman and CEO

[GRI Disclosure 2-22]

We address you today within the framework of the presentation of our sustainability report in a year that has undoubtedly marked a before and after in the history of TUBACEX. This period has been characterized by a notable acceleration in our history, exceeding the recovery expectations we had set and moving forward in the fulfillment of the objectives of our strategic plan, particularly with regard to our sustainability performance.

The start of this year was driven by a dynamic energy market, both in terms of investment and visibility, which has confirmed our company's forecasts, thus consolidating the recovery of our results in all key indicators. This performance reinforces our positioning as a key player in the current energy transition scenario, a commitment of which we are proud and that undoubtedly defines us as an organization.

In line with our commitment to sustainability, we have continued to position ourselves as a sector benchmark, particularly through the significant growth of our Low Carbon unit. Through it, we have been developing innovative value proposals for new low-emission energy sources, such as hydrogen, as well as carbon capture and storage solutions. These initiatives reflect our firm commitment to decarbonization and sustainable growth, at a time when the world is calling for specific and decisive action to protect our planet.

The transformation of the power generation and mobility markets and the urgency of climate change policies have reinforced our determination to lead from the front, implementing our NT2 (New TUBACEX in the Next Transition) strategic plan. This strategic plan not only reflects our ambition to contribute to human progress through advanced industrial products and services, but also positions us as a key partner for our customers on their path to emissions neutrality, especially in key sectors, such as power generation and mobility.

This Sustainability Report is proof of our journey, our evolution and our commitment not only to the environment, but also to our people and communities. It is a declaration of our ambition to lead in the era of sustainability, to be a company that looks ahead without forgetting its roots and its responsibility to the present. Together, not only are we anticipating the future, but we are also building it.

Francisco Javier García, Chairman

Jesús Esmorís, CEO

1 ORGANIZATIONAL PROFILE

	Organizational Profile
	Group Presentation and
	Companies
1.1
[GRI Disclosure 2-1, GRI Disclosure 2-2, GRI Disclosure 2-6]

TUBACEX is the world leader in the design, manufacture and installation of sophisticated industrial products and high value-added services for the power generation and mobility sectors. TUBACEX delivers value to its customers thanks to its global presence, with production plants and service centers in Spain, Austria, Italy, USA, India, Thailand, Saudi Arabia, Dubai, Norway, Canada, Singapore, Guyana and Kazakhstan. Its sustainability and environmental policies are endorsed by leading ESG certification bodies, such as Science Based Targets (SBT) commitments to the reduction of emissions, and S&P sustainability standards. TUBACEX is a listed company on the Spanish Stock Market since 1970 as part of the Ibex Small Caps index.

It has 24 manufacturing plants in Spain, Austria, Italy, USA, India, Thailand, Saudi Arabia, Dubai, Norway, Canada, Singapore, Guyana and Kazakhstan; with 14 service centers worldwide and a global commercial presence.

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Companies that form part of the Tubacex Group

MANUFACTURE

SERVICE

Bars, billets

Seamless stainless

Fittings and special

Stainless steel

Value-added operations

Stock and service

and ingots

steel tubes up to 72"

parts up to 72"

machined parts

and services: design/

simulation, ceramic coating,

TUBACEX

INDIA

For detailed information on the companies included, please see the Annex to the 2023 Consolidated Financial Statements.

For further information,

See the website: www.tubacex.com

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1.2

1.2.1

Organizational Profile

Corporate

Governance

[GRI Disclosure 2-9]

Board of Directors

Composition of the Board of Directors at 31st December 2023

Maider

Francisco Javier

Manuel

Jesús

Cuadra

García

Moreu

Esmoris

Secretary

Chairman

Deputy Chairman

CEO

NON-MEMBER

NDEPENDENT

NDEPENDENT

EXECUTIVE

Isabel		Gema		Nuria	Iván	Antonio Mª	Jorge	José	Gracia
López		Navarro		López de	Martén	Pradera	Sendagorta	Toribio	López
				Guereñu					González
PROPRIETARY DIRECTORS				INDEPENDENT DIRECTORS

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1.2.1.1	Sustainability and Good
Governance Committee

[GRI Disclosure 2-12, GRI Disclosure 2-14]

Sustainability and Good Governance Committee

[GRI Disclosure 2-12, GRI Disclosure 2-14]

With the aim of strengthening the TUBACEX Governance structure, and in line with existing recommendations and good practices, the TUBACEX Board of Directors approved the setting up of a new Sustainability and Good Governance Committee in 2021. This Committee's functions are set out in the "Regulations of the Sustainability and Good Governance Committee", approved by the Board of Directors at its meeting held on 16th December 2021. In this respect, the following basic duties have been identified:

1. Foster the Company's ESG policies in order to steer them towards the creation of value through sustainable conduct.
2. Guarantee that the Group's Strategic Plan integrates and develops the ESG policies.
3. Understand, oversee and assess relations with the different stakeholders.
4. Guarantee that ESG risks are properly integrated in the Group's risk management and control models.
5. Determine the guidelines, criteria and general principles that must prevail in the content of Non-Financial Information, as well as any other equivalent reporting system.
6. Work with the Tubacex Foundation in the identification of the elements of the Group's Strategy that may be implemented through specific ESG projects, so that it becomes an instrument of the sustainability policy.
7. Foster the Group's fulfillment of the 17 Sustainable Development Goals approved by the UN ("SDG").

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At the date of issue of this report, the composition of this committee was:

POSITION

Chairwoman

Board Member

NAME

Ms. López de Guereñu

Mr. Martén

Ms. López Paños

Ms. López Granados

TYPE

External Independent

External Independent

External Proprietary

External Independent

1.2.1.2 Audit and Compliance Committee

As with the rest of the committees,the Board of Directors approved its own regulations for the Audit and Compliance Committee, which had until then been governed by the Regulations of the Board of Directors. These regulations incorporated all the responsibilities attributed to this delegated body by the Capital Companies Act and the good practices of listed companies and

the recommendations of the Good Governance Code of Listed Companies approved in the 2020 financial year. In this context, it is worth highlighting that the Audit and Compliance Committee assumes the function of overseeing the process of preparing and presenting not only financial information, but also non-financial information, as well as overseeing non-financial risks.

At the date of issue of this report, the composition of this committee was:

POSITION		NAME		TYPE

Chairwoman

Board Member

Sra. López Granados

Ms. López de Guereñu

Mr. Toribio

Mr. Moreu

External Independent

External Independent

External Independent

External Independent

1.2.1.3 Appointments and Remunerations Committee

[GRI Disclosure 2-10]

In line with the above, the Board of Directors approved the new Regulation for the Appointments and Remunerations Committee, including the content set out in the Corporations Act and in the CNMV Technical Guide.

By doing so, the Committee adopts the best practices in this area, reinforcing the role this Committee plays both before the Board and the executive team, for which it establishes its appointment, remuneration and termination policies. Similarly, it maintains a key role in the handling of conflicts of interest.

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