Annual Sustainability Report 2022 : simplebooklet.com

CONTENT32333435Green PartnerCustomer relationshipSupply chain integrationInnovation and technologyAlliancesMessage from our CEOExecutive SummaryGreenPaper in numbersWe are GreenPaperGreenPaper GroupHistoryCommitmentOur cultureGreenPaper FamilyOur productsMarkets servedIntegrity in our businessCorporate governance0607080910111213150403StakeholdersCommitment to sustainability1617192022Sustainability StrategyOur roleSustainability modelMateriality242527282930Green PeopleOur driving forceDriving growthSafe and suitable workplaceWellness and healthcareCOVID-19Positive impacts on the community373839Green PlanetCircular economy promoterWater managementFight against climate change4142About this reportGRI indexAnnex 432Annual sustainability report 2022

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Bernardo Zambrano LobeiraGreenPaper CEODear friends:2022 was a year of great challenges and signiﬁcant lessons, where the strength of leadership and the ability to adapt to the new normal were key in meeting unprecedented demand for our products. These were months ﬁlled with uncertainty due to scarcity and high costs of raw materials, war affecting energy prices and the local water crisis, all of which are key inputs for our operation and business continuity. Faced with so many simultaneous and relevant events, we have gained valuable experience and reafﬁrmed our purpose as a company.These last few years have brought high-impact changes: the evolution of consumption dynamics and the growth in e-commerce shopping led to an increase in the use of packaging for consumer products, home delivery, increasing the use of paper and cardboard worldwide. Furthermore, green trends such as plastic substitution will bring greater demand and growth to our products. Certainly, great opportunities lie ahead.Today, we are consolidating and strengthening our organization at both the operational and strategic levels, which would not be possible without the commitment and leadership of the entire GreenPaper team. Every member has been key in optimizing our operations, increasing our market standing, and providing greater added value to our customers through quality products and high service orientation. All while honoring our commitment to our shareholders, the community, and environmental protection.For GreenPaper, sustainability has been at the core of our operation, in 2022 we undertook a process to reinforce and execute our sustainability model as one of the priority issues that will help us adapt our processes and behaviors to the planet needs. Likewise, the impact of climate change in the region, such as droughts or power outages caused by natural phenomena, has shown us that organizations must urgently and seriously prepare for future challenges.The commitment, cooperation, and teamwork that we have seen makes us excited about the future of GreenPaper. Undoubtedly, 2023 will bring many new challenges, along with several relevant projects which are part of our strategic plan. All this will allow us to lay the foundations to boost the company's long-term competitiveness.Please take a moment to review our ﬁrst sustainability report to learn about our purpose as an organization and our commitment to our stakeholders and the environment.Lastly, I would like take this opportunity to thank all our employees, business partners, shareholders and strategic allies for being part of this transformation; without your support, nothing would be possible. Likewise, I call on you to give your full support to achieve our goal of making GreenPaper a prosperous and sustainable company.MESSAGE FROM OUR CEOGRI 2-22, 201-2MESSAGE FROMOUR CEOWE AREGREENPAPERSUSTAINABILITYSTRATEGYGREEN PEOPLE GREEN PARTNER GREEN PLANET3Annual sustainability report 2022

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GREENPAPER FAMILYGRI 2-7, 2-8Average monthly staff turnover: 5.24%*All our staff have permanent and full-time employment95650744914911732OperationalACTIVE EMPLOYEESAdministrative807332475Over the years, GreenPaper has become stronger byexpanding its workforce, developing talent andleadership amongst our employees.Over the years, GreenPaper has become stronger byexpanding its workforce, developing talent andleadership amongst our employees.GRI 2-7GREEN PEOPLE GREEN PLANET10GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Thanks to productionand trading processesdeforestation is avoided,contributing with theequivalent of planting5.5 million treesannually in Mexico.OurProductsCARDBOARD KRAFT PAPERCORRUGATEDWe provide solutionsfrom 100%recycled paperClay coated kraft back - moisture resistanceand cooling capacityUsage example:Beverages carriersCold packaginClay Coated Kraft BackUsage example:Cereal and cookie boxesToy packaging3-ply white coated cardboardWhite Top LinerUsage example:Shipping packagingUncoated 3-ply cardboardClay Coated White Back (CCWB)Usage example:Shipping packagingLiner paperUsage example:Manufacture of packing boxesMedium paperUsage example: Corrugated box ﬂutingCorrugated sheetB, C ﬂute and double corrugatedWaxed sheet, waterproof, antistatic coating,threads and sesame tapeWhite and Kraft Box 4 colorsCRR printing, wrap around, trays, dividers and othersWaxed, waterproof, non-slip, threads and sesame tapeGRI 2-1, 2-6GREEN PEOPLE GREEN PLANET11GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Lawfulness CultureINTEGRITY IN OUR BUSINESSProcess ManualsWe implement process and procedure manuals based on international standards.Code of EthicsWe ensure the disclosure and understanding of the code of ethics.Regular AuditsAudits of processes and records vulnerable to corruption and ethics violations.Inquiry LineThrough an ethics committee, we solve doubts and situations related to the code of ethics.All the principles of integrity that guide GreenPaper's employees actions are framed by our code of ethics, which encompasses the employees's code of conduct and consequently, the company's. This code makes it possible for our business partners to have clear expectations of ethics, responsibility and integrity when working with GreenPaper.GRI 2-26, 3-3, 205-2GREEN PEOPLE GREEN PLANET13GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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INTEGRITY IN OUR BUSINESSLawfulness CultureWITHIN THE FRAMEWORK OF OURagainst any personcorporate valuesany behavior ofWE REJECTHARASSMENT AND ANY TYPE OF VIOLENCEWe are committed to ensuring that allfacilities, environments and spaces aresafe and free from discrimination.All complaints are handled according to consequence modeling, which includes penalties ranging from formal written warnings to immediate dismissal.We constantly strengthen our values and ethical codes through in-person training and communication.4Related to breachesof corporate values1Related to breaches of the code of ethics0VERIFIED:Related to discrimination5Total Complaintsreceived in 2022In order to eliminate and preventviolations of human rights and ethicalstandards, we have an anonymouscomplaint hotline.sistemadedenuncias@greenpaper.comWe receive your suggestions, complaintsor suspicions regarding ethical behavior.All complaints are conﬁdential.142-23, 205,2, 406-1GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Corporate governanceRESPONSIBLE GOVERNANCE TO MAXIMIZE GOALSResponsible managementis required to become acompany which endures bymeans of ethical practices,good management and asolid business plan.GENERAL MANAGEMENTResponsible for the development and implementationof business plans. Provides guidance for achieving company goals, strategies, policies, and objectivesMANAGEMENT TEAMResponsible for achieving objectives outlined by the GeneralManagement in environmental, social and economic mattersCONSULTING BOARDProvide advice and feedback onpolicy, management and performanceMembers independent of the organizationPRESIDENCYGreenPaper GroupHighest body in strategic decision-making**Presidency is not a senior executive of the company15GRI 2-9, 2-11, 2-12, 2-13GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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STAKEHOLDERSValue creationOur employees are the core of the company. Our priorities are their well-being and safety, developing opportunities and fostering their growth.The quality and development of sustainable products are part of our daily drive to meet customers' needs, thereby encouraging responsible consumption and environmental protection.We are focused on creating value every day, which is why our shareholders are key to achieving our goals so that together we may have a positive impact on societyand industry.We are committed to promoting the development and empowerment of the communities in which we operate.Our suppliers are an important component of our operations therefore, establishing partnerships that align with our commitment and ethics allows us to maximize the creation of shared value.• We provide learning and growth opportunities• We develop valuable experience for our employees• We promote cooperation and a sense of purpose• We respond quickly with expected quality• Communication and personalized customer service• We contribute to sustainability goals with sustainable products.• We increase revenue and brand value• We optimize the use of assets• We bolster control over company and background risks• We spread a culture of circular economy• We provide mechanisms for self-employment• We manage our social and environmental impacts• We foster the integration of sustainable supply chains• We encourage communication and the transfer of technology among value chain members.Why are they relevant to GreenPaper?STAKEHOLDERSHow do we create value?EMPLOYEES CUSTOMERS SHAREHOLDERS SUPPLIERS COMMUNITYOur stakeholders are the core of our value chain: customers, partners, shareholders, communities, and suppliers. We interact in the present while working together to change the future. Therefore, collaboration is an essential part of our sustainability model.16GRI 2-29GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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We are committed to being leaders in our business model through sustainability as we strive to set the bar in both domestic and international industries, producing papers that promote a circular economy and our customers integration into the development and quality processes.A CLEANER,FAIRER AND MORE PROSPEROUS WORLDOur role in achieving itWe collect and recycle paperand cardboard for paperproductionWe produce packaging paper from 100% recycled ﬁberPaper conversion toproduce corrugated sheetsand boxes for packagingCircularEconomy19GRI 2-22GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Our role is to protect what mattersGREEN PEOPLEGREEN PLANETGREEN PARTNERCULTURESafety andWell-beingSocialResponsibilityClimateChangeWaterManagementSustainableSupplyAlliancesInnovationand TechnologyTalentManagementCircularEconomyThe sustainability model aims to strengthen our corporate culture consisting of values, ethics, human rights, and sustainability.Our three pillars are focus on our commitment to people, creating value for our partners and environmental protection.SUSTAINABILITY MODEL20GRI 2-22GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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SUSTAINABILITY MODELOur role for a cleaner, fairer and more prosperous worldCulture is the foundation of our strategy. We build a sustainable corporate culture in terms of values, ethics, human rights, and sustainability. Furthermore, we bet on fostering creativity and concern to meet the challenges we face as a company and society in a united and interdisciplinary manner.CultureGreen PeopleEmployees are the central pillar of our organization, which is why we work to guarantee them safe environments and opportunities for learning and professional growth. In addition, we aim to strengthen the communities we operate in, looking to develop talent and local socioeconomic development to have a positive impact on people's lives.Security andWell-beingSocialResponsibilityTalentManagementGreen PartnerDeveloping and integrating the value chain enables us to promote innovation and strengthen business relationships. We collaborate with the value chain, customers, and various relevant stakeholders, which enhance the competitiveness of our products and increase their added value.SustainableSupplyAlliancesInnovationand TechnologyGreen PlanetThe essence of our business is sustainability and we have a ﬁrm commitment to environmental protection and preservation of the planet, which is why we prioritize reducing our environmental impacts streamlining the use of natural resources. Additionally, we also promote emission controls and the circular economy.ClimateChangeWaterManagementCircularEyconomy21GRI 2-22GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Based on our sustainability-oriented business model, we carriedout a materiality analysis to identify the areas with the greatest environmental, social, and corporate governance impact on the business, for the stakeholders and the needs in the region we operate in.We thereby incorporate those priority material issues into strategic planning, identifying the main impacts of mitigating present and future risks to create short-term and long-term value.MATERIALITY010203Prioritizationof material issues taking into account the internal perspective and the involvement of stakeholdersIdentiﬁcationof priority issues within the sector and the organizationValidationof results to determine priority material issuesMateriality deﬁnition methodThe Matrix displays the main material issues based on their importance for GreenPaper and our stakeholders. For the2022 materiality analysis*, different forms of consultation were used:*The materiality will later be updated to integrate more stakeholders.STAKEHOLDERS IMPACTIMPACT ON ORGANIZATIONAL STRATEGY3.54.54.54101312911143158657121.2.3.4.5.6.7.8.9.10.11.12.13.14.15.Operating efﬁciencyWater managementPower efﬁciencyWaste managementOccupational health and safetyTalent attraction and retentionWorkers developmentLabor practicesSocial licenseESG cultureCustomer relationshipsCulture of ethicsSupply chain managementProduct design and managementResearch, development and innovationMaterial Issues List:SUPPLIERSSurveysEMPLOYEESSurveys and focusgroupsCUSTOMERSSurveysGRI 3-1, GRI 3-2GREEN PEOPLE GREEN PLANET22GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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EMPLOYEES ARE OURDRIVING FORCEOur XTI model focuses on well-being, satisfaction, and helping employees achieve their goals.Contribute to the stability andpatrimony of the employees so they can achieve their goals.Generate a sense of satisfaction to achieve a balance between life,family and work, thereby driving progress.Strengthen the pride of belonging to GreenPaper by understanding the communityand environment.Foster the achievementof career goals, fully drivingdevelopment so that our employees reach their goals.GREEN PEOPLE GREEN PLANETGRI 404-324GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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At GreenPaper, we strive to keep our employees updated and aligned with local and global trends. We are committed to personal and professional growth encouraging the development of innovative projects within the organization.To achieve this goal, we have outlined an employee development model with a three-pronged approach which serves as the foundation for comprehensive training and performance management.Talent managementDRIVING GROWTHLeadership and managementbehaviorsSkills required to performtheir dutiesCulture alignment with thecompany's attitudes,values and knowledgeIDENTITY KNOWLEDGE COMPETENCEEMPLOYEESEVALUATEDYEAR2022TOTALPerformance Management359 262 97*Employees who received a performance evaluation.25GREEN PEOPLE GREEN PLANETGRI 404-3GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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DRIVING GROWTHOur employees have a personal development plan.ComprehensiveTraining 202218,661HOURSOPERATIONAL ADMINISTRATIVEIn-persontraining9,322 86910,1914,188 2,0936,281VirtualUniversity919 1,2702,189Averagetraining hours25 1843GreenPaper University: Aims to be the mechanism for supporting all our employees to build skills and competencies from the moment they join our organization. The system employs remote and in-person teaching as needed.Leaders Academy: A special program taught by specialists focused on fully developing leadership potential for our employees. In 2022, 16 administrative leaders and 12 operational leaders took part in the program.Training ProgramsTalent management26GRIGREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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SAFE AND APPROPRIATE WORKPLACESafety and well-beingHealth and safety beneﬁts programs for all employees:• Health insurance• Pension and retirement fund• Life insurance• Alliance with local medical networks for urgent careProviding our employees with the chance to fully develop themselves with GreenPaper, along with the tools and opportunities to safeguard their health and physical well-being is crucial for GreenPaper. To ensure that all employees have a safe and decent workplace, the Health and Safety team is committed, in accordance with applicable labor laws in identifying and preventing risks in our manufacturing process.2,818,344 WORKING HOURSAll accidents are analyzed to minimize risk of incidences in the future through:Full care, without exception:• Immediate care provided by internal medical staff• Assessment of injuries so as to begin treatment• Transfer to hospital if necessary• Alliance with local medical networks to provide employees with urgent careTraining I Communication I InfraestructureFACILITY ACCIDENTS050QUANTITY0.000.350.00RATE*3 Burns1 Low back pain1 Entrapment injuryTYPEMajor Injuries(not including deaths)Minor InjuriesDeathsACCIDENT*Rates were calculated per 200,000 hours worked.27GREEN PEOPLE GREEN PLANETGRI 3-3, 403-1, 403-3,403-8, 403-10GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Good health is an essential attribute for the availability, physical and emotional well-being of our employees, we want them tohave a good quality of life by supporting their health care, which is why we invest in:During 2022 we started pilotprograms to extend beneﬁts to employees.We seek to support emotional health forday-to-day peace of mind.We´ve invested in ﬁrst response medicalservices in out facilities.• Tent to any illness and/or accident• Preventive medicine• Nutritional counseling• Qualiﬁed and professional medical staff (doctors, nurses and nutritionist)Medical ServiceDepartment• Psychological counseling with a qualiﬁed doctor• Legal advice with certiﬁed lawyers• Emotional and/or legal supportEmotionalSupport ServicesFor Free:• General medical consultation• Medicines• Basic laboratory testsPreferential price:• Specialty medical consultationsMedicalInsuranceParental Leavein 202243 7 50WELLNESS AND HEALTH CARESafety and well-being28GRI 401-3, 403-3, 403-6GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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COVID-19Safety and well-beingAdditionally, in collaboration with the municipal government of San Nicolás de los Garza, we successfully administered the booster vaccine to 136 employees who did not previously had the chance to get it.Actions taken in facilities to prevent infection:Application of free and periodicdiagnostic testsImplementation of remote workoptions and ﬂexible schedulesEncouraged and helpedemployees to get vaccinatedUse of face masks,cleaning and disinfectionIn 2022, COVID-19 remained a core issue in our healthand business continuity strategy. Based on our experiences in 2021, national and international information on protocol management to prevent the spread of the virus, we made decisions to speed up and streamline the process for preventing and managing infections.In 2022, COVID-19 remained a core issue in our healthand business continuity strategy. Based on our experiences in 2021, national and international information on protocol management to prevent the spread of the virus, we made decisions to speed up and streamline the process for preventing and managing infections.29GRI 403-3, 403-6GREEN PLANETGREEN PEOPLE GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Social developmentActions within the company:• Cardboard recycling campaign inside the facilities focused on employees, resulting in the collection and recycling of 12 tons in 2022.• In partnership with Agua y Drenaje de Monterrey, our staff were made aware of the importance of being careful with water, and were given advice on its responsible use within a context of scarcity.• Collaboration with the Blooders.org Association to promote the culture of blood donation.Actions outside the company:• We give talks to local schools about the importance of recycling paper and cardboard.• Ricardo Flores Magón Elementary School: We helped set up a paper and cardboard collection center, where the students managed to gather 2 tons of material, which was purchased and paid in kind for the school.• Rubén Darío School: Together with the help of parents and volunteers, we painted and carried out maintenance on the school.POSITIVE IMPACTSON THE COMMUNITY We promote initiatives to share knowledge on preserving the environment and promoting the circular economy. We work with the communities we operate in by implementing actions focused on creating shared value, spreading collaboration and social responsibility that maximizes the positive impact beyond the walls of our facilities.We promote initiatives to share knowledge on preserving the environment and promoting the circular economy. We work with the communities we operate in by implementing actions focused on creating shared value, spreading collaboration and social responsibility that maximizes the positive impact beyond the walls of our facilities.GRI 3-3GREEN PLANETGREEN PEOPLE30GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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RELATIONSHIP WITH CUSTOMERS AS ADRIVING FORCE FOR CHANGERelationship with customersA key part of our value chain is our customers, for whom we provide top-quality cardboard and paper packaging made from 100% recycled materials. In order to continue establishing mechanisms to mitigate the environmental impacts of our products and ﬁnd areas for material innovation, it is essential for us to build long-term relationships with our customers.Therefore, we look to work hand in hand with customers and end users in the value chain. We aim to achieve innovative solutions and strategic alliances to mitigate the impact of our products on the environment and understand our customer's concerns regarding sustainability.VALUECHAINDISTRIBUTIONCOLLECTIONPARTNERSCARDBOARDUSERSPAPERPAPER AND CARDBOARDWASTERECYCLING32GRI 3-3GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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INDUSTRIAL SUPPLY CHAIN INTEGRATIONSustainable supplyNote: We are currently developing an internal supplier certiﬁcation plan, taking into account the social, environmental, and ethical aspects of 2023.Of our suppliers have been informed ofour code of ethics100%Of our spending is onlocally-based suppliers.60%OTHER INPUTSChemical Inks OthersWe collaborate with suppliers and customers to maximize our efforts through cooperation, identiﬁcation and control of social, environmental, and economic impacts on all those involved.There is a constant ﬂow of communication with each of our customers through the established channels to ensure a relationship based on product supply within the framework of actions that comply with our ethical standards.At GreenFiber, we purchase and collect waste paper and cardboard from specialized companies and from anyone who comes to our recycling center.RECYCLED FIBER INPUTSNational andinternational suppliers+100PaperTons of paper andcardboard recovered312,580Cardboard33GRI 3-3, 2-6, 3-3, 203-1,308-1, 414-1GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Innovation and technology EFFORTS TO BE A PIONEER IN THEADOPTION OF NEW TECHNOLOGIESTransition of our ERP to the Cloud:This technological update project hasallowed us to ensure the quality, security, and privacy of data in our main systems, promoting remote work processes.New Technologiesand digitizationIncrease in capacity and energy efﬁciency:Increase in capacity and energy efﬁciency: Investment of more than $2M USD in the acquisition of emission-free power contracts, increasing our energy efﬁciency.Increase in operational efﬁciency and production. Investment of more than $35M USD to develop the reliability of our machinery and expand its production capacity.Water Treatment:Investment of more than $1M USD insustainable water management, as wellas the installation of a treatment plant toenable the recycling and recovery ofwater.Efﬁciency and SustainabilityThrough more sustainable processes and products, we can satisfy our customers growing requirements in terms of sustainability, keeping GreenPaper within a competitive context. We adhere to new initiatives that promote the development of alternative products to products to plastic, representing an opportunity for us to reach new markets.In 2022, we allocated resources to adopt technologies that allowed an increase in our productive capacity, allowing us to make progress in the installation of systems that allow us to improve to improve our operations, energy efﬁciency and digitalization of our services.34GRI 3-3GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Likewise, we have established strategic alliances with certiﬁed suppliers for professional operation based on the safety and technical legal principles of co-generation power plants and water treatment plants.Establishing a relationship with strategic partners such as business organizations, industry chambers, suppliers, customersand other companies enhances our capabilities and makes it easier for us to address issues we consider a priority. Some strategic partners are:CertiﬁcationsCOLLABORATION AS THE BASIS OF OUR SUCCESSAlliancesPAPELRECICLADOPORUNMUNDOMEJOR.® GRI 2-28ACERCA DEGREENPAPERESTRATEGIA DESOSTENIBILIDADGREEN PEOPLE GREE PARTNER GREEN PLANETGREEN PEOPLE GREEN PLANET35GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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OUR ROLE AS A DRIVING FORCEFOR CIRCULAR ECONOMYFor GreenPaper, waste management not only helps improve process efﬁciency and reduce our resource consumption, but also as part of our commitment as a sustainable organization. By recycling paper and cardboard with proper waste management, we avoid its transfer to landﬁlls where the decomposition process would emit more greenhouse gases.All the waste generated is delivered to various suppliers accredited by the corresponding health authorities whoare responsible for managing its recycling, incineration or ﬁnal disposal.PRODUCESUPPLIESRECYCLE RECOVERFIX RE-USEUSELESS WASTEAside from the recyclability of paper, we also use various raw materials that generateother types of waste with different characteristics:In 2022:INDICATOR TONSHazardous wastegenerated75Special handlingwaste generated29,329Recycled paper312,580Special handling waste mainly consists of impurities from cardboard bales, general waste, wood, tires, and biological sludge.Hazardous waste mainly consists of expired chemicals, oil, and cloth soaked in oil, fat, and paint.Fiber consists of paper and cardboard from cardboard boxes, packaging, dead ﬁle, and post-consumer cardboard.37GRI 3-3, 301-1, 301-2,306-2, 306-3GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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WATER MANAGEMENT Water is one of the most important natural resources on the planet, crucial for the existence of life and essential for industrial manufacturing processes. In the production of paper and cardboard, water is needed to form the emulsion that will shape the ﬁnal product.The northern region of the country has been hit by drought, affecting millions of residents and productionactivities, seriously affecting water supply. For GreenPaper, investing in the efﬁcient use of water, as wellas looking after its quality and availability is crucial.1. Water produced in Agua y Drenaje de Monterrey sewage treatment plants.2. It complies with particular discharge conditions, according to the corresponding regulations.Non-polluting²Discharged waterMechanical and chemical methods are used toremove debris and suspended particles fromthe water.Primary TreatmentMicroorganisms eliminate biodegradable organic matter.Secondary TreatmentReusing water in the process is made possible by cleaning speciﬁc contaminants from the water.Tertiary Treatment902,026649,178Recirculating waterTakes into consideration a10% loss due to evaporation697,314853,8901,551,204Well waterTreated wastewater¹TOTAL WATERINPUT IN 2022WATER (m³)38GRI 303-1, 303-3, 303-5GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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FIGHT AGAINST CLIMATE CHANGEWe are constantly improving the infrastructure we use for self-supply and energy consumption, this encourages us to increase our performance in terms of energy efﬁciency, improving our contribution to the ﬁght against climate change. For years, GreenPaper has sought to have an energy supply that generates fewer emissions into the atmosphere.We have current contracts to source clean energy from a wind farm and an efﬁcient cogeneration plant on site.Thermal powerElectric powergeneratedHot gas outletCFEWaterNatural gasfuel59%18%Wind Power23%CogenerationElectricgeneratorSteamgeneratorCondenserSteamAir InletTurbine gasexhaustCold waterColdgas outletHot waterGas TurbineSteam TurbineNatural GasPhotovoltaic powerSolar panels1%39GRI 305-1, 305-2GREEN PEOPLE GREEN PLANETGREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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Our commitment is to reduce our negative impact on the atmosphere by improving energy efﬁciency in our production processes. We focus efforts on modernizing machinery, having an efﬁcient operation, promoting a culture of sustainability to reduce fossil fuel energy consumption.FIGHT AGAINSTCLIMATE CHANGE*All emission data has been calculated using factors from the national authority. The reported emissions comply with the parameters speciﬁed by the relevant authorities.2022Greenhouse Gas Emissions(tons of CO2eq)2021150,23812,685162,923144,74711,657156,404Scope IScope IITOTAL EMISSIONSFuels (megajoules) 202179,152,054260,05635,346144,712202276,343,300257,69030,950126,756Natural gasLP gasGasolineDiesel40GREEN PEOPLE GREEN PLANETGRI 302-1, 302-4GREEN PARTNERMESSAGE FROMOUR CEOWE AREGREENPAPERAnnual sustainability report 2022SUSTAINABILITYSTRATEGY

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GRI IndexContent and/or page3Material topics227 GRI content index 428 GRI content index declaration 412-1 Corporate details 62-2Included entities62-3 Reporting period, frequency and point of contact 412-6Activities, value chain and otherbusiness relationships112-7 Employees 102-22Sustainable development strategy statement32-28 Association membership 352-29 Approach to stakeholder engagement 16201-2Financial impacts and other risks and opportunitiesdue to climate change3202-1Ratio of the standard entry level salary by gender against thelocal minimum wageSalaries are calculated using local wage scalelgreater than the minimum wage204-1Local supplier expenditure ratio33301-1 Materials used by weight or volume 37301-2 Recycled supplies 37302-1 Power consumption within the organization 40302-2Power consumption outside the organization40303-1 Water withdrawal by source 38303-3 Recycled and reused water 38303-5Water consumption38305-1 Direct GHG emissions (scope 1) 40305-2Indirect GHG emissions when generating power (scope 2)40MaterialsPowerWaterEconomic PerformanceEmissionsDescriptionGeneral ContentFundamentals for 2021Content and/or pageDescription306-1Waste generation and signiﬁcant waste-related impacts 37306-3Generated waste37308-1New suppliers that have passed evaluation and selectionﬁlters in accordance with environmental criteria33401-1 New employee recruitment and staff rotation 10401-2Beneﬁts for full-time employees that are not given to part-time or temporary employeesAll employees work full-time 401-3 Parental leave50 employees applied for permission and allreturned after completion.403-3 Occupational health services 27403-6Promoting worker health27403-9 Work-related injuries 27403-10Occupational illnesses and diseases27404-1 Average annual training hours per employee 26404-3Percentage of employees receiving regular performance andcareer development reviews25406-1Cases of discrimination and corrective actions taken14414-1New suppliers that have passed selection ﬁlters according tosocial criteria33418-1Substantiated complaints regarding breaches of customerprivacy and loss of customer dataNoneEfﬂuents and WasteSupplier Environmental AssessmentEmploymentOccupational Health and SafetyTraining and TeachingNon DiscriminationSocial Evaluation of SuppliersCustomer Privacy42Annual sustainability report 2022

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We align our sustainability model with the sustainable development goals of the 2030 United Nations Agenda:Target 4.4 : By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent work and entrepreneurship.Target 6.3 : By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally.Target 6.4 : By 2030, substantially increase water-use efﬁciency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity, and substantially reduce the number of people suffering from water scarcity.2030 AGENDA ALIGNMENTTarget 7.2 : By 2030, increase substantially the share of renewable energy in the global energy mix.Target 7.3 : By 2030, double the global rate of improvement in energy efﬁciency.Target 8.3 : Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro, smalland medium-sized enterprises, including through access to ﬁnancial services.Target 8.5 : By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.Target 8.8 : Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.ANNEXES43Annual sustainability report 2022

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Target 10.2 : By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.Target 10.3 : Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard.Target 9.5 : Enhance scientiﬁc research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.Target 12.2 : By 2030, achieve sustainable management and efﬁcient use ofnatural resources.Target 12.5 : By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.Target 12.7 : Promote public procurement practices that are sustainable, in accordance with national policies and priorities.Target 12.8 : By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.Target 13.1 : Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.Target 13.2 : Integrate climate change measures into national policies, strategies and planning.2030 AGENDA ALIGNMENTANNEXES44Annual sustainability report 2022

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