ENVIRONMENTAL MANAGEMENT

SASB RT-CH530a.1

Acknowledging the possible environmental impacts resulting from its operations, Grupo Lamosa has adopted a proactive approach to addressing these challenges, constantly seeking innovation and continuous improvement.

This year, the company defined five strategic sustainability goals, three of which are directly related to environmental performance and further detailed throughout this chapter. In this context, an action plan* has been developed with the expectation of reaching the defined targets by 2035**.

Grupo Lamosa operates in strict compliance with environmental regulations in all countries where it is present, meeting the requirements set by the different authorities on matters including greenhouse gas emissions, waste management, water use and air pollutant emissions, among others. The company has the internal capabilities to monitor applicable regulations, standards and laws, allowing it to anticipate potential changes or requirements.

As of the end of 2024, one of the Tile Business’s production plants had obtained Clean Industry Certification awarded by the Mexican Federal Office for Environmental Protection (PROFEPA), and another plant is currently in the process of certification, implementing the associated action plan.

* This action plan includes the participation of the Tiles, Adhesives, and Insulation and Lightweight Materials Businesses.
** For further information on the established sustainability goals, see Appendix 1.3 ESG Strategy.

JUAN RAMBLA
Quality and Environment BALDOCER

Obtaining ISO 50001 certification represents a significant milestone for BALDOCER, underscoring our commitment to energy efficiency and sustainability.

This certification validates our efforts to implement effective energy management systems, optimize resource use and reduce our environmental footprint.

Holding this certification strengthens our position as a responsible company that is mindful of its surroundings, aligning our operations with international best practices and reinforcing our competitiveness in the market.

This achievement marks a key step toward a more sustainable and efficient future.

CLIMATE ACTION
GRI 3-3; SASB RT-CH-110a.1, EM-CM-110a.2

The company has developed an action plan to decrease its CO₂ emissions, primarily in the Tile Business. The goal is to reduce Scope 1 and 2* emissions by 25%, using the year 2023 as a baseline. To achieve this, four main action lines have been established:

ACTION LINES DEFINED TO REDUCE SCOPES 1 AND 2 GHG EMISSIONS
No. Line of Action Action Focus
1 Energy management system Implement best energy efficiency practices, using as a reference successful cases such as Baldocer, whose two production plants in Spain are ISO 50001 certified.
2 Energy self-generation Increase the number of plants with photovoltaic panels for electricity self-generation. Currently, Grupo Lamosa self-generates electricity thanks to efforts in the Insulation and Lightweight Materials Business, as well as at Baldocer’s production plants in Spain. The goal is to scale this initiative in other locations.
3 Changes in production processes Reduce Scope 1 emissions in the production of ceramic and porcelain tiles. Grupo Lamosa continues reducing the thickness of its products in line with market trends. As a result, fuel consumption will decrease.
4 Use of clean/renewable energy sources Reduce Scope 1 emissions in the production of ceramic and porcelain tiles. Grupo Lamosa continues reducing the thickness of its products in line with market trends. As a result, fuel consumption will decrease.

* Scope 1 emissions are those generated from fuel consumption at Grupo Lamosa’s facilities. Scope 2 emissions refer to those resulting from the use of purchased electricity.

For further information on the established sustainability goals, see Appendix 1.3 ESG Strategy.

The company has a greenhouse gas emissions inventory aligned with the international GHG Protocol. This means that Grupo Lamosa ensures the traceability and reliability of fuel and electricity consumption across all its production plants.

For more information on energy consumption and emissions generated, refer to the environmental section in Appendix 1.7 Key ESG Indicators.

Grupo Lamosa has set the objective of reducing its Scope 1 and 2 emissions** by 25% by the year 2035.

** Emissions for the base year 2023 were 31.9 tons of CO₂e/thousand pesos. The goal is to reduce this figure to 23.9 tons of CO₂e/thousand pesos by 2035.

CIRCULARITY
2023: GRI 3-3, 303-1, 303-2, 306-1, 306-2; SASB RT-CH-140A.3, CG-BF-410A.1, CG-MR-410A.3

Grupo Lamosa’s approach to promoting circularity focuses on two fundamental pillars: waste management and efficient water use.

WASTE
GRI 306-1, 306-2; SASB CG-BF-410a.1

Most of the waste generated corresponds to the Tile Business, due to the raw and fired paste waste produced in some phases of the production process, which is reused by reintegrating it as a raw material.

Most of the waste generated corresponds to the Tile Business, due to the raw and fired paste waste produced in some phases of the production process, which is reused by reintegrating it as a raw material.

Hazardous waste is disposed of through a specialized third party, thus avoiding any type of negative environmental impact.

For more information on the amount of waste generated, refer to the environmental section in Appendix 1.7 Key ESG Indicators

* Target applicable to the Tiles, Adhesives, and Insulation and Lightweight Materials Businesses.

Grupo Lamosa has set the goal of maintaining the volume of waste reused in its production processes at 95% to the year 2035*.

WATER
GRI 303-1, 303-2; SASB RT-CH-140a.3

Grupo Lamosa recognizes that water is a vital natural resource for its operations. Its businesses source water from various supplies such as natural wells, water trucks and municipal networks, among others.

The main water-related impacts occur in the Tile Business. To reduce the volume extracted, a percentage of consumed water is reused in the grinding process. Additionally, the company aims to transition to dry production processes, both for red and porcelain ceramic pastes. Furthermore, Grupo Lamosa is exploring technologies to capture evaporated water.

Lastly, the possibility of implementing rainwater harvesting systems in certain locations is being evaluated, considering variables such as rainfall probability, water cost and areas of water stress, among others.

It is important to note that the water used in the company’s operations is treated under high-quality standards to ensure it is returned to the environment in the same condition in which it was extracted. During 2024, no water-related fines or sanctions were incurred.

For more information on the volume of water extracted, consumed and discharged, refer to the environmental section in Appendix 1.7 Key ESG Indicators.

** The water withdrawal intensity for the base year 2023 is 63.6 liters/thousand pesos. The aim is to reduce it to 31.8 liters/thousand pesos by 2035.

The target for 2035 is to reduce the amount of water extracted by 50%**.

MATERIALS

The Insulation and Lightweight Materials Business seeks to incorporate a percentage of recycled materials in its production of expanded polystyrene (EPS).

It is important to note that EPS products have a positive indirect impact on reducing greenhouse gas emissions since they possess insulating properties, which significantly reduce energy consumption in the buildings and facilities where they are used.

For more information on FANOSA’s contribution to promoting sustainable materials in the construction sector, see Appendix 1.4 Associations, Initiatives, Certifications and Awards.

The Insulation and Lightweight Materials Business boasts SEMARNAT (Mexican environmental agency) certification, recognizing its efforts to collect and recycle different materials.