Vrancart S A : 2020 Sustainability Report availability

SUSTAINABILITY REPORT

VRANCART GROUP

2020

Contents
1. General Manager's message...............................................................	1
2. "VRANCART" Group of Companies .........................................................	2
2.1 About us ............................................................................................	2
Location...............................................................................................	3
Form of organisation, size of the organisation ...................................	4
Markets served ...................................................................................	6
Information related to the employees and other workers.................	6
The supply chain .................................................................................	7
2.2 Strategy and objectives.....................................................................	8
Values, principles, standards and behavioural rules ..........................	8
Adherence to external initiatives, membership in associations.......	10
2.3 Ethics, integrity and anti-corruption principles ..............................	11
2.5 The governance structure...............................................................	12
3. About the report ...................................................................................	14
3.1 Purpose, limits and other relevant aspects ....................................	14
Purpose of the report .......................................................................	14
Entities included in the consolidated financial statements ..............	15
Reporting period, reporting cycle .....................................................	15
Points of contact for questions related to the report, assertions
related to the reporting according to GRI.........................................	15
3.2 Definition of the report contents....................................................	16
Definition of the contents and scope................................................	16
Stakeholders' involvement ...............................................................	16

List of material subjects ....................................................................	17
4. Our economic activity ...........................................................................	19
4.1 Economic performance...................................................................	19
Direct, generated, distributed economic value ................................	19
Financial assistance from the Government ......................................	19
5. Environmental protection.....................................................................	20
5.1 Materials used.................................................................................	20
5.2	Recyclable raw materials used........................................................	21
5.3 Energy consumption .......................................................................	22
5.4 Direct greenhouse gas emissions....................................................	23
5.5 Waste management........................................................................	24
5.6	Environmental incidents, nonconformities.....................................	26
6. Social aspects ........................................................................................	27
6.1	Employees: turnover.......................................................................	27
6.2 Diversity at the level of governance structures and among the
employees.............................................................................................	29
6.3 Wage ratio women/men.................................................................	31
6.4 Occupational health and security ...................................................	32
6.5	Human rights, aspects related to discrimination............................	32
6.6	Consumers' health and security......................................................	33
6.7	Community relations: donations, sponsorships .............................	34
6.8	Compliance with the legal provisions in the social and economic
field .......................................................................................................	34

1. General Manager's message

Dear readers,

It is my pleasure to present the Sustainability Report of Vrancart Group, where you will identify our vision on a sustainable business and the main accomplishments in this field in 2020.

With an experience of over 40 years in its field of activity, Vrancart Group has managed to make itself known on the Romanian market as one of the most important paper and cardboard producers. Being a business with a long tradition, long-term thinking is a strategic objective for us. Therefore, sustainability has always been one of our major concerns.

The mission assumed by Vrancart Group is that of being the most important recycler of cellulose fibre-based materials in Romania. Customers' satisfaction, honesty towards our partners, professionalism, our care for our employees and shareholders, work - place safety, environmental impact reduction and the responsible use of resources are the principles that guide our activity. These objectives are realistic and have medium and long-term consequences in the communities where we carry out our activity.

Our view of sustainability is not a mere approach imposed by the legislation, but it is a constant concern. Our care for nature proven by recycling materials from all over Romania is a responsibility that we take pride in and that we successfully meet. We are confident that through our contribution to environmental protection, we will leave a cleaner healthier country to the generations to come.

Ionel-Marian CIUCIOI

Chairman of the Board of Directors, General Manager

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2. "VRANCART" Group of Companies

In 2020, Vrancart Group is formed by the company Vrancart S.A. and its branches Rom Paper S.R.L., Vrancart Recycling S.R.L. and Ecorep Group S.A.

As of December 31st, 2019, Vrancart S.A. holds:

• 100 % of Rom Paper S.R.L.
• 100 % of Vrancart Recycling S.R.L.
• 99.60% of Ecorep Group S.A.

2.1 About us

102-1,102-2

Originally known under the name "Combinatul de Celuloza si Hartie Vrancea", founded in 1977, Vrancart S.A. became a joint-stock trade company starting from 1992, being established in accordance with Law no. 15/1990.

Over the years, Vrancart has managed to become one of the most important producers of corrugated cardboard, paperboard and tissue papers on the Romanian market, with over 40 years of activity in this field.

The main object of activity of Vrancart S.A. is represented by the production and trading of the following types of products:

single-wall,	corrugated	paperboards	paper	tissue	paper
double-wall,	cardboard	in various
strips	papers in	core
double-	packaging	assortments
for the	various	tubes
double wall	(boxes) in
	produc	assortme
corrugated	various
	tion of	nts
carboard	sizes, die-cut
	core
with B, C,	and printed
	tubes
B+C, E+C
flutes,
corrugated
cardboard
with micro-
flutes

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Out of the desire to develop and to secure a place in the top producers in the market segment in which Vrancart operates, the company's management decided to expand the group, so that in the last 4 years acquisitions of shares and assets of bankrupt companies were made.

In order to align with the Group's strategic directions, in 2020 Vrancart established 2 more branches: Vrancart Recycling with 100% ownership,

of services regarding the implementation of the obligations regarding the extended liability of the producer for the environmental targets. The company is at the beginning of its activity.

The product range provided by Rom Paper S.R.L. was diversified and constantly evolved, being adapted to customers' needs. The acquisition of the factory in Brasov represented a strategic move aimed at expanding the product portfolio and at increasing the degree of coverage of the distribution channels.

Vrancart

Recycling

• established in 2020

•private company with Romanian capital

• treatment and disposal of non- hazardous waste

Ecorep Group	Rom Paper
• established in 2020	• established in 2002
• private company	• private company
with Romanian	with Romanian
capital	capital
• business support	•production of
service activities	tablecloths, folded
	towels, toilet paper,
	professional rollers,
	cosmetic towels and
	boxed towels)

Location

102-3,102-4

The company is headquartered in Adjud, str. Ecaterina Teodoroiu no. 17, Vrancea county, together with the 2 newly established branches. Rom Paper is located in Brasov.

and Ecorep Group SA with 99.6% ownership percentage. At the end of 2020, the company acquired the tissue paper production line from Petrocart SA, an insolvency company.

Vrancart Recycling was founded in 2020, in August, and is a private company with Romanian capital, with sole partner. The main activity of this branch is the treatment and disposal of non-hazardous waste. The company is at the beginning of its activity and received at the end of the year the agreement for accessing a state aid.

Ecorep Group was founded in 2020, in November, and is a private company with Romanian capital. The main activity of this subsidiary is the provision

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