Use of resources and Circular Economy

[E5-1] 

In the dual materiality assessment, issues related to ruse of resources and the circular economy were identified – these are raw materials, technical materials used in the production process, products, packaging and generated waste.

Production processes are based on the use of natural raw materials. The Group strives to protect natural resources by complying with and implementing environmental and quality requirements and creating appropriate employee attitudes.

Therefore, the Group’s policy in this area concentrates on reducing the consumption of primary raw materials, which is pulled off by continuous improvement of recipes and optimisation of production processes. The policy addresses the specific needs of affected stakeholders, such as minimizing waste in the environment.

The Śnieżka Group does not have a dedicated Circular Economy policy. The current Quality, Environment and Health and Safety Policy refers to elements related to the circular economy.

The undertaking uses raw materials and auxiliary materials in production obtained only from qualified suppliers (positively assessed in the assessment process). In line with the Sustainable Development Strategy, Śnieżka also aims to use sustainable packaging, i.e. packaging containing recycled raw materials. By keeping materials in the economic cycle for longer (resulting from the concept of a circular economy), Śnieżka limits its negative impact on the environment. In terms of departure from primary resources, including the relative increase in the use of secondary resources, the policy assumes includes these aspects only in the scope of sourcing packaging with a specific recyclate content.

[E5-2]

The implementation of the action plan does not require significant operating expanses (OpEx) or capital expenditure (CapEx).

Actions towards circular economy continued in 2024 and are planned to be pursued in the short (up to one year) and medium (up to 5 years) horizon. No expected results have been defined, but the Group supports waste separation targets through its supplier assessment system. The target of including recyclate in packaging is directly dependent on the implementation of these activities.

Actions are taken in Śnieżka SA and Śnieżka ToC. The action plan includes the involvement of raw material and packaging suppliers and the interests of stakeholders.  Policies, activities and action plans do not define geographical scope.

In this context, interviews were conducted with stakeholders of all the Group companies, identifying potentially affected communities, locations and the nature of the impacts. Actions have been taken primarily to implement a circular economy for packaging (also through the Group’s involvement in the Polish Plastics Pact, of which it has been a member since 2023). No need for remediation actions was identified.

[E5-3] 

Śnieżka strives to reduce the level of waste generated. In the Sustainable Development Strategy, it defined targets related to the area of ​​the circular economy in terms of the use of sustainable packaging and waste management for Śnieżka SA and Śnieżka ToC. The first and second targets are absolute, measurable and result-oriented and correspond to the recycling level in the waste hierarchy. The third target is relative, measurable and result-oriented and corresponds to the prevention level in the waste hierarchy.

The targets were achieved in 2023 and 2024, but we continue to be guided by them in our operations and strive to maintain the level achieved and, if possible, exceed it.

The targets currently being implemented support the reduction of actual negative impacts from own operations. However, they do not include the increase in material reuse, design for circularity and other issues related to the sustainable extraction and use of resources. These targets refer to Śnieżka SA and Śnieżka ToC. No significant assumptions were made.  Targets are set based on regulations and reporting values ​​(waste) and supplier specifications (packaging). Neither scientific evidence nor stakeholders were taken into account in setting the targets.

The Group did not set targets related to use of resources, yet the targets are partly linked to the circular economy of waste and were initially consulted on as part of the Polish Plastics Pact.

FFiL Śnieżka SA will review current processes, including the flow of raw materials and materials, and the volumes of waste generated at individual stages of production processes. Based on the analysis, targets will be set that will enable a gradual transformation towards a circular economy.

At this stage, Śnieżka SA’s targets do not directly relate to resource inflows and outflows, including the inflows and outflows of waste, products and materials. However, the undertaking intends to implement targets in the future that will consider these aspects.

The existing targets do not correspond directly to waste management in the upstream value chain. The Group focuses on purchasing raw materials in packaging that allows for their appropriate sorting, in accordance with applicable regulations. The targets were set without the use of scenarios. They were established based on the general direction of European legislation indicating the need for transformation towards a circular economy and are of a voluntary nature.

[E5-4] 

Significant resource inflows are understood as product packaging, including transport one, and raw materials for production, including water. The following oils were considered biological raw materials: linseed and sunflower. Measurements were direct, no significant assumptions were made. The data have not been subject to any auditing other than as part of the mandatory assurance report. The Group did not adopt performance indicators for the metrics presented.

All data was determined based on invoices and suppliers’ specifications.

[E5-5]

The Group manufactures decorative products such as paints, varnishes and enamels which, apart from their decorative value, also feature preservative and protective properties for the coated surface. The nature of the products manufactured makes it impossible to recycle, disassemble, repair or reuse them, however, in accordance with the principles of circular economy, the Śnieżka Group makes every effort to ensure that the usability of the products is as long as possible, and that the products themselves are optimised in terms of performance and resistant to abrasion.

Recyclable materials

The data on the weight of manufactured products and packaging used come from internal systems. Shelf life was determined by comparing information on the expiration date of our own products with the market information. The data on recyclability are presented based on knowledge about the recycling system in Poland and, above all, on the characteristics of the materials.

Waste in the Śnieżka Group

The Śnieżka Group divides waste generated by its operations into two main groups: industrial and municipal waste. The most significant waste stream related to production activities is industrial waste classified in group 08 01 – waste from the production, preparation, trade, use and disposal of paints and varnishes, the vast majority of which are washings. In addition, packaging waste is also generated, sorted by type of material, i.e. paper, glass, metals and plastics. As for the municipal waste, it is divided into five fractions: plastics and metals, paper, glass, biodegradable waste and mixed waste.

[E5-6]

The Śnieżka Group takes advantage of the possibility to omit the disclosure of information on the anticipated financial impacts resulting from material risks and opportunities related to use of resources and circular economy in accordance with Appendix C to Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023, due to the fact that it is preparing a report in accordance with the ESRB requirements for the first time.