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Letter from the Chairman

We present the Sustainability Report of Gonvarri Industries for 2020, where I invite you to discover the key economic, social and environmental initiatives we use to provide an answer to current and future sustainability challenges.

Dear readers,

2020 will be sadly remembered for the unprecedented health crisis we have experienced due to the COVID-19 virus pandemic, declared by the World Health Organization in March 2020. Its enormous impact on people’s health, on the labor market, businesses, and the world economy have impacted and altered every forecast. Within such a complex framework, I would nevertheless like to present the Sustainability Report for 2020.

Firstly, I want to express my support for all those affected by the pandemic, with a special mention to our dear departed colleague from Gonvarri Colombia and to his loved ones in such difficult times.

At Gonvarri Industries we have suffered the impact intermittently in the different countries where we operate, being more prominent in the first half of the year, with a direct effect on sales and growth forecasts. A significant rebound in the automotive sector at the end of the year contributed to counteract such impact, with final results below the expected budget but achieving reasonable levels of sales.

This year, investments have been reduced and we have focused our efforts on maintaining and strengthening the existing business.

This pandemic has been especially harmful to the most vulnerable groups. The progress made since 2015 towards achieving Sustainable Development Goals (SDGs) have clearly been affected, since success depends largely on sustained economic growth and globalization, both of which have been shaken up by the crisis. This year, more than ever, we are renewing our commitment to the Global Compact, promoting compliance with the 10 Universal Principles and with Sustainable Development Goals.

We have intensified our commitment to Sustainability and the Sustainable Development Goals, working hard to minimize the effect of this crisis on the business, on workers, and on the environment, reinforcing our commitment to 4 main headings: climate change, health and safety, digitization, and social action.

Fighting climate change

For Gonvarri Industries, being a carbon-neutral company implies an important commitment in this struggle, adopting a series of actions to promote and help mitigate its impact.

In FY2020, after a period of analysis and deliberation, we defined a “Carbon Neutral Plan 2030/2050” setting a roadmap in line with current needs and trends and with the ultimate goal of “being carbon neutral by 2050 “.

At Gonvarri Industries we are committed to reducing and offsetting scope 1, CO2 emissions by 50%, and scope 2, emissions by 100%, by the year 2030.
To achieve the “Carbon Neutral 2050” target, we are working on different lines such as implementing renewable energy in factories, the purchase of energy from renewable sources (PPAs), energy efficiency, and investing in new technology, among others.

A “Governance Model” was established to meet the targets, one led by a Carbon Neutral Committee and an Operational Team, with which to measure and communicate how the project progresses.

Staff Health and Safety at Gonvarri Industries

Our priority is to protect the health of all company staff and their families, especially in the face of the COVID-19 pandemic.

For this reason, we have reorganized the way we work by designing action and communication protocols, which have been gradually adapted to the different governments’ flexibility measures so we can safely return to our workplaces. Among other measures, we are carrying out immunological tests, measuring temperatures, increasing cleaning and disinfection, dividing workspaces, limiting the use of common areas, making personnel entries and exits more flexible, restricting travel, and delivering safety equipment with a mandatory use of face masks.

Digitization

In 2020 we reinforced the company’s cultural change and its digital transformation through the “Digital WorkPlace” project.

Lockdown measures have significantly increased the use of technology among Gonvarri staff, which has allowed us to manage workloads and stay active via agile and safe communications between professionals in the different areas and countries where we operate.

Social action

This complex financial year also affected social action initiatives scheduled, since volunteer activities were limited to prioritize people’s safety.

However, we should also highlight positive aspects such as the rapid reaction of our companies to help those hardest hit by the pandemic, often putting our activity at the service of priority health and safety protocols to attend those affected.

At Gonvarri, we consider that this year it is especially necessary to reinforce our commitment to the most vulnerable groups. For this reason, we have maintained our support with financial and in-kind donations, supplying first aid and food to NGOs and foundations with which we have collaborated over time. In addition, through Addimen we have put our activity at the service of the pandemic, manufacturing and distributing oxygen bifurcators for hospitals, thus doubling the capacity of oxygen supply to patients in the same room.

Despite the difficult situation caused by the pandemic, 2020 was a special year in our commitment to road safety. Emotional Driving celebrated its 5th anniversary by presenting the book “5 years on the road” that outlines the main initiatives, collaborations and emotions: “Five years of work, awareness, motivation and emotions, recognition and smiles. Five years of road safety.”

We started 2021 with some uncertainty due to the evolution of markets and how the pandemic was progressing, but also with the hope that vaccines and the measures taken to prevent spreading will allow us all to move towards a safer and more sustainable future.

I do not want to miss the opportunity to thank all employees and collaborators for your work and commitment, especially those who have lost a loved one or who are struggling to overcome the disease and its consequences.

Letter from the CEO
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