{"id":27781,"date":"2026-04-19T12:50:45","date_gmt":"2026-04-19T10:50:45","guid":{"rendered":"https:\/\/www.gonvarri.com\/?page_id=27781"},"modified":"2026-05-08T10:16:36","modified_gmt":"2026-05-08T08:16:36","slug":"memoria-sostenibilidad-capitulo-1","status":"publish","type":"page","link":"https:\/\/www.gonvarri.com\/en\/commitment-to-sustainability\/memoria-sostenibilidad-capitulo-1\/","title":{"rendered":"Report 2025 &#8211; Governance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"27781\" class=\"elementor elementor-27781\" data-elementor-post-type=\"page\">\n\t\t\t\t<div class=\"elementor-element elementor-element-262ee6b7 e-con-full e-flex e-con e-parent\" data-id=\"262ee6b7\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-7ab12042 e-con-full e-flex e-con e-child\" data-id=\"7ab12042\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3eed83d2 elementor-widget elementor-widget-text-editor\" data-id=\"3eed83d2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h5 style=\"text-align: center;\"><span style=\"color: #ffffff;\">SUSTAINABILITY REPORT 2025<\/span><\/h5>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-14207770 elementor-widget elementor-widget-text-editor\" data-id=\"14207770\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h1 style=\"text-align: center;\"><span style=\"color: #ffffff;\">Governance<\/span><\/h1>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c51ebea e-flex e-con-boxed e-con e-parent\" data-id=\"c51ebea\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-5570f38 e-con-full e-flex e-con e-child\" data-id=\"5570f38\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-381e847 elementor-widget elementor-widget-heading\" data-id=\"381e847\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">CORPORATE GOVERNANCE<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f76f1b3 elementor-widget elementor-widget-heading\" data-id=\"f76f1b3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Governance Structure and Composition<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-41148d1 elementor-widget elementor-widget-button\" data-id=\"41148d1\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 202-2 and 205-1)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ae8f25 elementor-widget elementor-widget-text-editor\" data-id=\"9ae8f25\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The governing bodies of the company are the General Meeting of Members and the Board of Directors, the highest body for governance, supervision, decision-making and control of Gonvarri Corporacion Financiera, S.L., hereinafter \u201cGonvarri Industries\u201d.<\/p><p class=\"p1\">The Articles of Association of Gonvarri Industries set out the functioning of the Board of Directors, and the requirements and deadlines established for convening the General Meeting.<\/p><p class=\"p1\">As at 31 December 2025, the Company\u2019s Board of Directors comprises:<\/p><ul><li class=\"p1\">Mr Juan Mar\u00eda Riberas Mera. Chairman since 2001.<\/li><li class=\"p1\">Mr Francisco Jos\u00e9 Riberas Mera. Secretary since 2008.<\/li><li class=\"p1\">Acek Desarrollo y Gesti\u00f3n Industrial, S.L., represented by Mr Juan Mar\u00eda Riberas Mera, Member<br \/>since 2008.<\/li><\/ul><p class=\"p1\">The Chairman, Mr Juan Mar\u00eda Riberas Mera, and the company, Acek Desarrollo y Gesti\u00f3n Industrial, S.L., represented by Mr Juan Mar\u00eda Riberas Mera, held the position of Joint Chief Executive Officers as at 31 December 2025, having been delegated each and every one of the powers attributed to the Board itself, except those that cannot be delegated by law or the Articles of Association.<\/p><p class=\"p1\">As for the members of the board, 100% are over 46 years of age. Furthermore, 100% are local nationals and all are men (405-1).<br \/>In line with sustainability objectives, the \u201cCarbon Neutral 2030\/50 Strategic Plan\u201d was approved in December 2020. To monitor and measure progress, a Carbon Neutral Committee was established, comprising: the CEO, the Sustainability Director, the Technical Director, the Strategy Director and the<br \/>Finance Director, alongside an operational team involving managers responsible for sustainability, finance, energy efficiency, procurement, customers, innovation and strategy. Furthermore, General Managers and Managers from the various divisions and factories will participate as guests in specific<br \/>sessions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ef7610 elementor-widget elementor-widget-heading\" data-id=\"5ef7610\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Appointment and selection of the highest governing body<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7a3a837 elementor-widget elementor-widget-button\" data-id=\"7a3a837\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-10, 2-11)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0173a24 elementor-widget elementor-widget-text-editor\" data-id=\"0173a24\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">Gonvarri Industries is a privately held company, whose Board of Directors comprises representatives of all the shareholders; consequently, there is no legal requirement to include representatives of other stakeholder groups, nor to take into account other aspects relating to diversity, minorities, etc.<br \/>The Board of Directors, in plenary session, takes the relevant decisions and delegates, where appropriate, the implementation of these. Furthermore, the Board of Directors may grant special powers of attorney to company employees to undertake specific aspects of operations previously approved by this body. It is ultimately responsible for the company\u2019s economic, environmental and social affairs.<br \/>To be appointed as a director, one need not be a shareholder; both natural and legal persons may be appointed. Furthermore, the Articles of Association set out the conditions under which the performance of these functions is prohibited.<\/p><p class=\"p1\">The power to appoint directors lies exclusively with the General Meeting, which represents the interests of all the company\u2019s members.<br \/>The Chair of the Board of Directors holds an executive position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-53a42c5 elementor-widget elementor-widget-heading\" data-id=\"53a42c5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Role of the highest governing body in the supervision and management of impacts<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d53fd90 elementor-widget elementor-widget-button\" data-id=\"d53fd90\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-12 and 2-13)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-82df8a0 elementor-widget elementor-widget-text-editor\" data-id=\"82df8a0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">Information and consultation mechanisms are carried out through the various departments that act as a link between the Board of Directors and the different stakeholders. In addition, the CEO holds biannual meetings with all corporate staff to discuss relevant aspects relating to the company\u2019s management and situation, and receives feedback from staff on these matters and on any issues of interest, engaging directly with all employees in Madrid and addressing their queries.<\/p><p class=\"p1\">The Board of Directors is responsible for approving and committing to compliance with the Code of Ethics, the Sustainability Policy, and compliance policies. Furthermore, it may expressly authorise company employees to undertake specific tasks in operations previously approved by this body.<br \/>In particular, in 2025 the following corporate compliance policies were reviewed and updated:<\/p><ul><li class=\"p1\">Equality, Diversity and Inclusion Policy<\/li><li class=\"p1\">Corporate Policy on Conflict Minerals<\/li><li class=\"p1\">Commercial Sanctions Policy<\/li><li class=\"p1\">Harassment Prevention Protocol<\/li><li class=\"p1\">Protocol on Relations with Public Authorities<\/li><li class=\"p1\">Logistics Protocol relating to due diligence activities<\/li><li class=\"p1\">Procedure for the Management of Social Initiatives, Donations and Sponsorships<\/li><\/ul><p class=\"p1\">In addition, within the scope of our Spanish facilities, the corresponding Equality Plans have been drawn up.<br \/>For the development and implementation of new projects, a thorough study is carried out in which all quantitative and qualitative aspects of the project are assessed and analysed, as well as the investments, financing and potential risks, by the various departments of the company and the Management<br \/>Committee, prior to their presentation and subsequent approval by the Board of Directors.<\/p><p class=\"p1\">All these actions and the potential risks arising from them are continuously analysed by the management and teams at Gonvarri Industries, enabling risks to be identified and the necessary corrective measures to be implemented quickly and efficiently. The Risk Management section describes the methodology for identifying and managing risks.<\/p><p class=\"p1\">With regard to reporting, in addition to the relevant economic, environmental and social matters in each case, as established in the Internal Audit Charter, the identified risks are reported at least once a year to the Chairman and the CEO, and through them to the Board of Directors.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-44cdbe2 elementor-widget elementor-widget-heading\" data-id=\"44cdbe2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Presentation of sustainability reports<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09bd179 elementor-widget elementor-widget-button\" data-id=\"09bd179\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-14)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fca42b6 elementor-widget elementor-widget-text-editor\" data-id=\"fca42b6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The Sustainability Report is coordinated by the Corporate Sustainability Department, which conducts a materiality analysis to identify the key issues for its stakeholders, which are then addressed throughout the report. The materiality analysis remains valid and will only need to be updated in the event of substantial changes to the company\u2019s activities.<\/p><p class=\"p1\">The Report undergoes a process of supervision and review by the various departments and is approved by the CEO. Furthermore, to ensure the reliability of the information, it is externally verified by an independent body.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-efa9343 elementor-widget elementor-widget-heading\" data-id=\"efa9343\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conflicts of interest<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5dd11c9 elementor-widget elementor-widget-button\" data-id=\"5dd11c9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-15)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cee1caf elementor-widget elementor-widget-text-editor\" data-id=\"cee1caf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">A shareholder may not exercise the voting rights attached to their shares where they find themselves in any of the situations of conflict of interest set out in Article 190 of Royal Legislative Decree 1\/2010 of 2 July, approving the Consolidated Text of the Capital Companies Act (102-25).<\/p><p class=\"p1\">Gonvarri Industries has a POL002-General Policy on Conflicts of Interest, applicable to the entire group, which supplements the provisions on this matter in the Code of Ethics and Conduct. The purpose of this Policy is to establish the basis for the procedures to be followed within the Group regarding the prevention or, where appropriate, the handling of conflicts of interest in which the Group\u2019s directors, managers, employees and collaborators may find themselves in their dealings with the Group, as well as with regard to conflicts that may arise with customers, suppliers and society in general, all in accordance with the provisions of corporate and regulatory legislation and Gonvarri Industries\u2019 corporate governance system.<br \/>The Group is committed to conducting its business in such a way that the commercial judgement and decision-making of its directors, board members, employees and managers are not, under any circumstances, influenced by their own unlawful personal interests.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b2d8e44 elementor-widget elementor-widget-heading\" data-id=\"b2d8e44\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Communication<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5dd0ee4 elementor-widget elementor-widget-button\" data-id=\"5dd0ee4\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-16)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-097f81c elementor-widget elementor-widget-text-editor\" data-id=\"097f81c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The General Meeting shall be convened by the directors and, where applicable, by the liquidators of the Company, within the first six months of each financial year, for the purpose of reviewing the management of the Company, approving, where applicable, the accounts for the previous financial year and deciding on the allocation of profits.<\/p><p class=\"p1\">The directors shall also convene the General Meeting if they deem it necessary and, in any event, when requested by one or more shareholders representing at least five per cent of the share capital. Where the management and representation of the Company is entrusted to a Board of Directors, the guidelines established for that purpose shall be followed.<\/p><p class=\"p1\">In 2025, the Board of Directors met four times. Notice of the meeting shall always be given in writing, addressed personally to each Director, at least five days prior to the date of the meeting.<br \/>The Board of Directors may appoint from among its members an Executive Committee or one or more Chief Executive Officers, determining the persons who are to hold such positions and the manner in which they are to act, and may delegate to them, in whole or in part, on a temporary or permanent basis, all powers that are not non-delegable under the law.<\/p><p class=\"p1\">All discussions and resolutions of the Board shall be recorded in a Minutes Book, the minutes of which shall be signed by the Chairman and the Secretary or by the Vice-Chairman and the Deputy Secretary, as the case may be.<br \/>With regard to the most relevant matters discussed, the annual accounts for the previous financial year were drawn up, and at all meetings, progress was monitored on projects, investments, budgets, sales and the market situation, as well as the strategic plan and the most important matters considered by each department.<\/p><p class=\"p1\">Furthermore, the heads of the various departments maintain constant and fluid communication with the company\u2019s CEO. Any significant concerns are immediately conveyed by the heads of the various departments to the CEO, who will then pass them on to the Board of Directors.<br \/>In particular, the legal, compliance and internal audit departments meet regularly with the Chairman and the CEO to report on all relevant compliance and risk matters that may affect the company, including environmental, social and governance issues.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b67401c elementor-widget elementor-widget-heading\" data-id=\"b67401c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Knowledge and assessment<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-76d98f9 elementor-widget elementor-widget-button\" data-id=\"76d98f9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-17 and 2-18)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8baacc9 elementor-widget elementor-widget-text-editor\" data-id=\"8baacc9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The performance of the Board of Directors is not assessed, as some of its members, through their shareholdings, are the owners of the company and represent all the shareholders. In this financial year, there have been no changes in membership or organisational practices.<br \/>The company integrates its economic, social and environmental responsibilities across its various departments, whose heads refer decisions to the CEO and, where appropriate, to the Board of Directors.<\/p><p class=\"p1\">Furthermore, they are kept constantly informed of economic, social and environmental issues through various internal communication mechanisms, such as: regular meetings with the directors of the various departments, the CEO\u2019s biannual meetings with staff, the preparation and approval of the Sustainability Report, and various communication channels such as the \u2018Leading the Change\u2019 intranet.<\/p><p class=\"p1\">In line with sustainability objectives, the \u201cCarbon Neutral Strategic Plan 2030\u201350\u201d was approved in December 2020. To monitor and measure progress, a Carbon Neutral Committee was established, which conducts monthly reviews to assess the degree of progress towards compliance and define the measures necessary to achieve the plan\u2019s objectives. Among others, the CEO and several members of the Management Committee sit on this committee. This item is also included on the agenda of the management committees.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c46b10 elementor-widget elementor-widget-heading\" data-id=\"7c46b10\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Remuneration policies and processes\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7c7ce11 elementor-widget elementor-widget-button\" data-id=\"7c7ce11\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Contents 2-19, 2-20 and 2-21)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e3be21 elementor-widget elementor-widget-text-editor\" data-id=\"0e3be21\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The remuneration of the Board of Directors shall consist of a fixed cash allowance to be determined at a General Meeting held at any time prior to the end of the financial year. This shall be compatible with any other professional or employment income to which the director may be entitled for any executive or advisory functions performed within the Company, and shall set out the rules governing its payment.<\/p><p class=\"p1\">In the event that the Governing Body takes the form of a Board of Directors, the Board shall determine the amount to be received by each member, based on their level of commitment to the management of the Company. If the Governing Body takes another form, it shall be for the General Meeting to decide whether, based on these parameters, the remuneration of each director shall be the same or shall vary.<\/p><p class=\"p1\">The remuneration of the Board of Directors and senior management is available in section \u201c(c) Compensation to key management personnel and directors\u201d of the Audit Report, Consolidated Financial Statements and Consolidated Management Report as at 31 December 2025. Stakeholders are not involved in the remuneration process.<\/p><p class=\"p1\">During the 2025 financial year, members of the Board of Directors received wages and salaries totalling \u20ac3,000 thousand (\u20ac3,000 thousand in 2024), of which \u20ac1,200 thousand relates to services provided by members of the Board of Directors. At the end of the financial year, the Group had not granted any loans or advances to members of the Board of Directors.<\/p><p class=\"p1\">The total remuneration paid in the 2025 financial year to senior management amounted to 2,114 thousand euros (1,288 thousand euros in 2024). There were no contributions to pension schemes or insurance premiums, as in the previous financial year.<br \/>Neither during the 2025 financial year nor during the previous year did the Company grant loans to senior management.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90a319c elementor-widget elementor-widget-heading\" data-id=\"90a319c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Balance Sheet 2025<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9fecaa0 elementor-widget elementor-widget-button\" data-id=\"9fecaa0\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Items 203-1 and 203-2)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c21b8d9 elementor-widget elementor-widget-heading\" data-id=\"c21b8d9\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Group performance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f2c04b5 elementor-widget elementor-widget-text-editor\" data-id=\"f2c04b5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The Gonvarri Industries Group (GI) closed the 2025 financial year by consolidating its ability to adapt in a demanding environment, in which increases in production, labour and logistics costs have continued, as well as a political and market context marked by high volatility. Despite this scenario, the Group has maintained the stability of its business and its key operational and financial indicators.<\/p><p class=\"p1\">In 2025, the Gonvarri Group launched its 2025\u20132027 Strategic Plan, which reinforces the Group\u2019s key priorities: the health and safety of people, digitalisation and innovation as drivers of competitiveness, and sustainability, a cornerstone of the corporate strategy. In this regard, the Group remains firmly committed to reducing emissions and decarbonisation, with targets set for 2030 and 2050.<\/p><p class=\"p1\">The Group currently has 56 production sites and a presence in 27 countries, enabling it to maintain a solid and diversified industrial position globally.<br \/>Overall, the results for the financial year are in line with those achieved in 2024, on a like-for-like basis, despite price adjustments in certain contracts within the automotive sector, particularly during the first half of the year. The level of activity has remained stable, with sales volume at around 5 million tonnes, similar to previous financial years.<\/p><p class=\"p1\">Thanks to the talent, commitment and performance of its teams, the Group has continued to adapt successfully to changes in the environment, achieving an EBITDA of \u20ac335 million, equivalent to 6.29% of sales, reflecting the strength of the business model.<\/p><ul><li class=\"p1\">By Division: virtually all have met expectations, with the Europe &amp; Americas and<br \/>Gonvauto Iberia divisions standing out for exceeding their budgets, driven by increased<br \/>activity in these sectors and the containment of production costs.<\/li><li class=\"p1\">By Market: the Automotive sector remains the Group\u2019s key focus, maintaining its<br \/>significance in 2025 sales, where it accounts for 69% of the total.<\/li><\/ul><p class=\"p1\">However, this percentage is lower than in previous periods, in line with the diversification strategy.<br \/>In 2025, global production of passenger cars reached 92.1 million units, an increase of approximately 3% year-on-year. In Europe, Germany and Spain remain the leading producers. Spain, ranked eighth globally alongside Brazil, produced 2.27 million vehicles, representing a 4.3% decline compared to 2024.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9486c94 elementor-widget elementor-widget-heading\" data-id=\"9486c94\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Financial results<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-872e79c elementor-widget elementor-widget-button\" data-id=\"872e79c\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 201-1, 415-1)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4847f6b elementor-widget elementor-widget-text-editor\" data-id=\"4847f6b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The Group has maintained constant vigilance over its financing levels, managing to reduce costs and secure appropriate repayment terms. The Group\u2019s Net Financial Debt (NFD) fell from \u20ac285 million in 2024 to \u20ac259 million in 2025.<br \/>The 2025 results mean that the NFD\/EBITDA ratio has remained below 1 for another year, standing at 0.77x; this reinforces and demonstrates that strict control over debt is maintained, and reflects the sound and healthy state of its balance sheet.<br \/>The Group\u2019s key consolidated financial figures are summarised in the attached table:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3d9d25e elementor-widget elementor-widget-image\" data-id=\"3d9d25e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"437\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Data-sustainibility-report-Gonvarri-1-768x437.webp\" class=\"attachment-medium_large size-medium_large wp-image-29301\" alt=\"\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Data-sustainibility-report-Gonvarri-1-768x437.webp 768w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Data-sustainibility-report-Gonvarri-1-300x171.webp 300w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Data-sustainibility-report-Gonvarri-1-1024x583.webp 1024w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Data-sustainibility-report-Gonvarri-1.webp 1050w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-881423f elementor-widget elementor-widget-text-editor\" data-id=\"881423f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The municipalities or regions in which Gonvarri operates received a total of \u20ac40,504,000 in corporate income tax, which contributes to improving the quality of life and services for local residents. The breakdown by country is summarised in the table below:<\/p><p><img decoding=\"async\" class=\"alignnone wp-image-29127 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Country-sustainibility-report-Gonvarri.webp\" alt=\"Country - sustainibility report - Gonvarri\" width=\"365\" height=\"752\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Country-sustainibility-report-Gonvarri.webp 365w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Country-sustainibility-report-Gonvarri-146x300.webp 146w\" sizes=\"(max-width: 365px) 100vw, 365px\" \/><\/p><p>Furthermore, the company has received financial aid and grants amounting to \u20ac2,232 thousand, distributed mainly between Gonvarri I. Centro de Servicios and Gonvarri MS R&amp;D.<br \/>With regard to other accounting obligations, the companies comprising the Gonvarri Group are, for the most part, required to produce annual audit reports on their individual financial statements due to the total volume of their assets, their turnover and the average number of employees.<\/p><p><br \/>Following approval by the relevant body, these reports are filed in the prescribed form and within the prescribed time limit with the Companies Register for each financial year, together with the certification of official books and the filing of annual accounts. Furthermore, the Group companies<br \/>are up to date with their payments to the General Treasury of the Social Security and their tax obligations.<br \/>Finally, as set out in the Code of Ethics and Conduct, it does not provide financial assistance to governments.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-536d61c elementor-widget elementor-widget-heading\" data-id=\"536d61c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Investments\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-74d1135 elementor-widget elementor-widget-text-editor\" data-id=\"74d1135\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p class=\"p1\">The 2025 financial year shows a net profit of \u20ac206,476 thousand and capital expenditure (CAPEX) of \u20ac116,411 thousand for the year.<br \/>In this regard, the acquisition of 100% of RECA is noteworthy, a transaction that enables the incorporation of new technological capabilities, the expansion of the Group\u2019s presence in strategic markets and the strengthening of business diversification. The investments are broken down by business unit and by country as follows:<\/p><p><img decoding=\"async\" class=\"alignnone wp-image-29130 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Investments-sustainibility-report-Gonvarri.webp\" alt=\"Investments - sustainibility report - Gonvarri\" width=\"587\" height=\"355\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Investments-sustainibility-report-Gonvarri.webp 587w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/Investments-sustainibility-report-Gonvarri-300x181.webp 300w\" sizes=\"(max-width: 587px) 100vw, 587px\" \/><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7335d6a e-flex e-con-boxed e-con e-parent\" data-id=\"7335d6a\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a586286 elementor-widget elementor-widget-heading\" data-id=\"a586286\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Sustainable financing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-519e7dd elementor-widget elementor-widget-button\" data-id=\"519e7dd\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 201-4)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e187796 elementor-widget elementor-widget-text-editor\" data-id=\"e187796\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>In recent years, the number of financial institutions incorporating ESG (Environmental, Social and Governance) criteria into their decision-making has been growing steadily.<br \/>In line with this trend, in the 2025 financial year Gonvarri Industries maintains five sustainable financing products based on indicators such as renewable energy purchased as a percentage of the total, trackers produced, or EcoVadis rating.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-997a6d0 elementor-widget elementor-widget-image\" data-id=\"997a6d0\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"372\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/financing-sustainibility-report-Gonvarri-1-768x372.webp\" class=\"attachment-medium_large size-medium_large wp-image-29303\" alt=\"\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/financing-sustainibility-report-Gonvarri-1-768x372.webp 768w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/financing-sustainibility-report-Gonvarri-1-300x145.webp 300w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/financing-sustainibility-report-Gonvarri-1.webp 813w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-900b267 elementor-widget elementor-widget-heading\" data-id=\"900b267\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Fiscal and management approach\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de13eb8 elementor-widget elementor-widget-button\" data-id=\"de13eb8\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 207-1)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec426e1 elementor-widget elementor-widget-text-editor\" data-id=\"ec426e1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Growing concern regarding the management of tax affairs by business groups, as well as the development of regulations by governments, is contributing to a growing trend towards transparency in tax information. Within this framework, it is essential to manage tax information\u2014both mandatory and voluntary\u2014and ensure that it complies with the standards required by the various stakeholders.<br \/>The Board of Directors, through its Chairman, Chief Executive Officer, its senior management and, in particular, through the tax department, promotes compliance with tax obligations and best practices.<\/p><p>Through its Chief Executive Officer, Executive Director and management teams, it is responsible for approving and updating the GI Group\u2019s Tax Risk Management Policy and all relevant operations that require it, It is also ultimately responsible to the shareholders for the existence, operation and supervision of the Group\u2019s Tax Risk Management System.<\/p><p>The principles and guidelines in the tax sphere are aligned with the Group\u2019s long-term development strategy, as well as with its mission, vision and ethical values, in accordance with which all professionals and entities forming part of the Group are firmly committed to advancing the continuous improvement of all areas whilst pursuing sustainable development.<\/p><p>Furthermore, in developing its Tax Strategy, the Group has taken into account the Organisation for Economic Co-operation and Development (OECD) guidelines for multinational enterprises on tax matters and its recommendations regarding cooperative tax compliance, as well as national and international best practices in tax governance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d30c66 elementor-widget elementor-widget-heading\" data-id=\"8d30c66\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Tax governance, control and risk management<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb15d7b elementor-widget elementor-widget-button\" data-id=\"bb15d7b\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 207-2, 207-3 and 207-4)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c441e52 elementor-widget elementor-widget-text-editor\" data-id=\"c441e52\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The Tax Strategy applies to all companies within the Group in which the parent company holds a majority stake, either directly or indirectly. In those Group companies where a majority stake is not held, but where the parent company exercises significant influence, the Group will promote principles and guidelines consistent with those set out in the Tax Strategy and will maintain appropriate communication channels to ensure adequate awareness of them.<\/p><p>Furthermore, this Strategy applies to all Group personnel in the performance of their duties and responsibilities, and in all professional contexts in which they represent the Group, meaning directors, managers, employees and associates, regardless of their position, responsibility or geographical location.<br \/>Furthermore, it covers the tax obligations to which the Group is subject in the various countries and territories in which it operates.<\/p><p>Within this framework, the Gonvarri Industries Group\u2019s Tax Policy aims to ensure compliance with applicable tax regulations and to ensure proper coordination of the policy followed by the Group\u2019s entities, all whilst avoiding tax risks and inefficiencies in the implementation of business decisions.<br \/>The Tax Strategy is reviewed annually and, should there be changes to the applicable regulations or circumstances warranting its review, this document will be updated accordingly to ensure that the Strategy fulfils its purpose. The Board of Directors shall be the body responsible for its approval and updating.<\/p><p>With regard to risk control and management, the GI Group\u2019s Corporate Tax Department, amongst others, is responsible for analysing legislative, case law and doctrinal developments in tax matters and for identifying, analysing and assessing tax risks; monitoring potential tax contingencies by country.<br \/>Furthermore, it collaborates with the Compliance Committee and the Internal Audit and Compliance Department, amongst others, in updating the Tax Risk Map. Updates are carried out annually or whenever significant changes so require. Significant risks are reported directly to those responsible, to establish mechanisms for monitoring, controlling and minimising these risks.<\/p><p>Employees and external staff may raise concerns or make reports through the designated reporting channels. With regard to actions to be taken in the event of potential litigation, requests, inspections, sanctions, unforeseen risks, etc., once these are detected, the process of communication and coordinated<br \/>risk management is initiated in accordance with the Code of Ethics and Conduct.<br \/>The Tax Strategy is available to all employees of the Gonvarri Industries Group via the corporate intranet and will be published on the <a href=\"https:\/\/www.gonvarri.com\/\">Gonvarri Industries Group website.<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f71862d elementor-widget elementor-widget-heading\" data-id=\"f71862d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Taxation vs Sustainability (ESG)\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bd8d128 elementor-widget elementor-widget-button\" data-id=\"bd8d128\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Content 207-4<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1eab3b elementor-widget elementor-widget-text-editor\" data-id=\"b1eab3b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Taxation aims to play a key role in achieving the Sustainable Development Goals (SDGs) of the 2030 Agenda, promoting the adoption of environmental, social and governance (ESG) principles in investments.<br \/>This was recently highlighted by the European Economic and Social Committee, which considers tax policies to be fundamental to meeting the SDGs, as they shape the economic environment in which investment, employment and innovation take place, whilst providing the government with revenue to finance public spending.<\/p><p>For this reason, Gonvarri Industries has a team of tax experts who, in collaboration with the legal, finance and compliance departments, amongst others, update the Group\u2019s plans and policies in line with current and future requirements in the countries where it operates.<br \/>Currently, the tax system already includes instruments that facilitate the achievement of the SDGs, notably those relating to governance, climate change, efficiency, innovation and diversity. Below, we summarise some examples:<\/p><p>\u25cf In line with the social initiatives undertaken by the Gonvarri Industries Group, tax incentives for non-profit organisations and patronage are particularly noteworthy.<\/p><ul><li>In line with the Gonvarri Industries Group\u2019s policies and mechanisms to combat fraud, money laundering and corruption, a key feature is the non-deductibility for Corporation Tax (CT) of expenses arising from actions contrary to the legal system (bribes and other similar conduct that could encourage corruption).<\/li><li>In line with the Group\u2019s Tax Strategy, and from the perspective of tax governance itself, the growing importance of good tax governance and so-called tax compliance for the management of tax risks is noteworthy.<\/li><li>In line with diversity and equality policies, the Corporation Tax (CT) deduction for creating jobs for workers with disabilities is highlighted.<\/li><li>In line with its innovation strategy and the minimisation of the environmental impact of the Gonvarri Industries Group\u2019s activities, tax incentives for R&amp;D&amp;I activities are noteworthy.<\/li><\/ul><p>We highlight two tax mechanisms that contribute directly to the achievement of Gonvarri Industries\u2019<br \/>\u201cCarbon Neutral 2030\/50 Plan\u201d:<\/p><ul><li>In the area of sustainable mobility, current personal income tax (PIT) regulations, which include measures to encourage the use of public transport and energy-efficient vehicles by employees, enable the design of environmentally sustainable remuneration schemes.<\/li><li>Significant tax reliefs to promote renewable energy and public transport schemes within the scope of local taxes (IBI, IAE and ICIO).<\/li><\/ul><p>Furthermore, significant progress and initiatives are expected in the tax sphere, such as the possible transformation of the tax system to align it with the SDGs, as well as the analysis of an optimal tax system that favours the internalisation of the environmental effects of economic activities, with two clear examples in which Gonvarri Industries is clearly positioned:<\/p><ul><li>In the fight against climate change, both in its negative approach (creation of new taxes) and in its positive approach (reduction of taxes and establishment of tax incentives). In this area, there are numerous opportunities if the measures adopted are well-defined, integrated into the tax system and coordinated with environmental policies in each country.<\/li><li>In the circular economy, as a key lever for achieving the SDGs, helping to preserve and improve natural capital, optimise resource use, and promote the efficiency of the system, by identifying and eliminating negative externalities (market failures).<\/li><\/ul><p>Gonvarri Industries is firmly convinced of the need for an international framework that incorporates environmental taxation reflecting the real needs of the current situation, with environmental taxes that provide a permanent incentive for more environmentally responsible behaviour, reducing the tax burden, and that encourage innovation through new, less polluting forms of production, transport and consumption, putting the \u2018polluter pays\u2019 principle into practice.<br \/>Well-defined environmental taxes, combined with an ambitious yet realistic action plan, can bring about effective change in the environment, contributing to the achievement of the SDGs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cdedf35 elementor-widget elementor-widget-heading\" data-id=\"cdedf35\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Compliance model<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b80ee4f elementor-widget elementor-widget-button\" data-id=\"b80ee4f\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-23, 2-24 and 3-3)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-be04608 elementor-widget elementor-widget-heading\" data-id=\"be04608\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Internal audit and compliance\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3b93f6a elementor-widget elementor-widget-text-editor\" data-id=\"3b93f6a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The \u201cCompliance Model\u201d aims to maintain the mechanisms for monitoring, measuring and controlling identified risks. As part of this project, the Compliance Committee was established in 2018 as a body delegated by the Board of Directors responsible for the application of this Model, its updating and the management of the Ethics Channel.<\/p><p>The Compliance Programme is led by the Internal Audit department, together with the Compliance Committee and the various departments within Gonvarri, to update and prepare the Internal Regulations applicable to the Model. The Internal Audit Charter defines the functions, powers, responsibilities and principles of operation of the Internal Audit and Compliance Department.<\/p><p>From the outset, an in-depth review was carried out of the Code of Ethics and Conduct, as well as policies on anti-corruption, risks, commercial sanctions and information sharing, all of which were approved by the Board of Directors.<br \/>Its implementation is being carried out in phases. It began in 2018 and was completed in 2019, encompassing the entire process of design and continuous improvement, dissemination, management, training and supervision.<\/p><p>During 2020, we entered into an ongoing process of identifying and managing regulatory compliance risks, as well as monitoring, updating and improving the Compliance Programme developed in 2018. New regulations relating to Human Resources management were approved, strengthening the controls associated with recruitment, training, payroll management, performance appraisal and the management of employee onboarding and offboarding.<\/p><p>During 2021, compliance efforts focused on delivering training activities to reinforce the values and behavioural guidelines set out in the Group\u2019s Code of Ethics and Conduct; work was carried out to ensure the effective implementation of the Model at each location, with an emphasis on integrating the<br \/>compliance framework into the management systems of the Group\u2019s various companies. In addition, work was carried out to update the Compliance Programme, and the content of some of the Policies was amended and updated; amongst other measures, the Protocol for the Prevention of Criminal Offences was issued and a new version of the Sustainability Policy was approved.<\/p><p>In 2024, the Internal Audit department carried out the supervision and control work set out in the annual plan and outlined in our internal policies, focusing its analyses on companies within the Americas &amp; Europe division, the GMS division and companies within the GMH Group. Work was also undertaken to establish action plans agreed with the management of each company to facilitate their monitoring and control. Furthermore, in 2024, numerous updates were made to the Group\u2019s internal regulations comprising the Compliance Model, alongside training and awareness-raising activities for employees through the issuance of monthly communications to staff across the Group.<\/p><p>During the 2025 financial year, the proposed objective of implementing the Compliance Model Supervision Plan was achieved. Efforts during the year also focused on carrying out initial assessments across the various business units and locations of the Hidria Group, as part of the process of integrating<br \/>the Compliance Model and associated policies within that scope.<\/p><p>In relation to 2025, numerous policies and protocols of the Model have been updated, notably the issuance of the new Corporate Policy on Equality, Diversity and Inclusion. Finally, training initiatives related to the prevention of harassment and a refresher on the Code of Ethics have been launched, extending these initiatives to new areas of the organisation.<\/p><p>Furthermore, in 2024, work was carried out on the creation of self-assessment questionnaires covering all areas within the scope of the compliance model. During 2025, these self-assessment questionnaires were completed in all areas where previous compliance audits had already been carried out, ensuring continuity in the assessment of adherence to the Model and the early identification of areas for improvement. All aspects and risks arising from any form of corruption are comprehensively addressed across the Gonvarri Group\u2019s offices, distribution centres and factories in accordance with the model and<br \/>the policies approved for this purpose.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-198a6fd elementor-widget elementor-widget-heading\" data-id=\"198a6fd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Code of Ethics and Ethics Channel\n\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-213b9b9 elementor-widget elementor-widget-button\" data-id=\"213b9b9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(102-16 and 102-17, 2-26 and 2-27)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-edb43ac elementor-widget elementor-widget-text-editor\" data-id=\"edb43ac\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The Code of Ethics and Conduct constitutes an explicit statement of the values, principles and guidelines of behaviour that all members of the Group must adopt in the performance of their professional duties, addressing issues such as relations with customers, employees, collaborators, suppliers and the<br \/>community, and strengthening the trust between the Group and third parties.<\/p><p>It is mandatory for the Group\u2019s employees, partners, managers and directors to be familiar with the full content of the Code, and in particular with the principles and rules of conduct set out therein. It is also mandatory for them to undertake training on this subject and to pass an examination on the principles and guidelines contained in the Code. The Board of Directors approved the new Code of Ethics and Conduct in September 2017.<\/p><p>Alongside the Code of Ethics, internal regulations are developed which detail and set out values and principles in each area of interest. These are updated and reported annually in successive sustainability reports.<br \/>The Compliance Committee, through the Ethics Channels, ensures that it receives and responds to any reports of misconduct, queries, concerns or malpractice, and applies the appropriate legal or disciplinary measures. Furthermore, it carries out an annual audit plan to verify proper dissemination and compliance.<\/p><p>The Ethics Channel is available to all employees, executives, directors and collaborators of the Gonvarri Group, as well as to other external stakeholders, such as customers, suppliers or the general public, with the aim of addressing queries regarding the application of the Code of Ethics and Conduct, as well as<br \/>reporting any potential irregularities that may constitute a breach of the Code.<\/p><p>The Ethics Channel Regulations, approved by the Board of Directors in January 2018, define the operating principles and terms of use on which the Ethics Channel is based, as well as the roles and responsibilities of each of the bodies involved in the management and processing of enquiries and reports. The<br \/>Compliance Committee is the body responsible for managing the channel; it establishes the protocols for analysing, investigating, concluding and communicating the results of complaints received. It reports periodically on its activities in managing the Ethics Channel\u2014including the number of enquiries and complaints received, complaints relating to serious situations, and the status of complaints\u2014to the Board of Directors and its members. It will also report on any relevant matters as they arise.<\/p><p>During 2024, the roll-out of the refresher training on the Code of Ethics and Conduct was completed, covering all English-speaking companies, and it is also available in five other languages to ensure a better understanding of the Group\u2019s ethical values and principles.<br \/>Furthermore, since mid-2024 and throughout 2025, work has been carried out to update the regulations relating to existing protocols for conducting investigations arising from the whistleblowing channel, and to align the procedures implemented with the new legislative framework governing whistleblowing channels.<\/p><p>In 2025, the international roll-out of the Code of Ethics refresher training was significantly expanded, with the training being launched in additional languages \u2013 Finnish, Swedish, Polish, Turkish, German, Romanian and Hungarian.<br \/>The external provider is responsible for providing and maintaining an accessible channel, ensuring the confidentiality of communications and their management, safeguarding and archiving data in accordance with current regulations, and acting as an intermediary between the user and the Compliance Committee, which guarantees confidentiality as a guiding principle.<\/p><p>There are various ways to access the ethics channel:<\/p><ul><li>Form via https:\/\/gonvarri.i2-ethics.com, also accessible via the Group\u2019s intranet, on the Group\u2019s website http:\/\/www.gonvarri.com and on the websites of the other companies within the Group.<\/li><li>Email to the address: ethicschannel@gonvarri.com<\/li><li>Post to: Internal Audit and Compliance, C\/Embajadores s\/n, 28053 Madrid.<\/li><li>Via WhatsApp, WeChat or by telephone on +34 679 98 19 22.<\/li><\/ul><p>\u00a0<\/p><p>It is also accessible via the Call Back option on the platform:<br \/><a href=\"https:\/\/gonvarri.i2ethics.com\" target=\"_blank\" rel=\"noopener\">https:\/\/gonvarri.i2ethics.com<\/a><\/p><p><br \/>Once the enquiry\/complaint has been submitted via the platform provided or any other available means, the user will receive an email from the external provider (i2ethics) containing information that will allow them to confirm that the submission has been sent to the channel and that the process has begun.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-929c482 elementor-widget elementor-widget-heading\" data-id=\"929c482\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Awareness and training<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-58cb68f elementor-widget elementor-widget-button\" data-id=\"58cb68f\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">(Content 2-25)<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d1735f2 elementor-widget elementor-widget-text-editor\" data-id=\"d1735f2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>In 2018, training on the Code of Ethics and the Ethics Channel began, as key components of the Compliance Model. To disseminate the Code and the Ethics Channel, an online course was developed, accessible via the intranet and the mobile app, incorporating videos, texts and assessment tests to aid understanding, with an estimated duration of between one and two hours. In addition, a significant training effort was undertaken throughout the year to disseminate the principles of the Code, which will continue in subsequent years.<\/p><p>As part of compliance policies, since 2021 various training sessions have been held on the management of conflicts of interest, the exchange of information with competitors, the handling of inside and confidential information, and the prevention of fraud and corruption in the Group\u2019s business processes.<\/p><p>In addition, training sessions were held on the retention and recording of documentation; dealings with public authorities or the management of donations and sponsorships; and protocols for loading and unloading goods (logistics protocol).<br \/>In the 2022 financial year, training sessions were held on certain Group policies within the compliance framework, such as Standard 0, which describes how the standards are structured; as well as general and in-depth training on various rules of the model applicable to the Group\u2019s procurement processes for goods and services, such as the \u201cThird-Party Management Policy\u201d and the \u201cExternal Consultant Engagement Policy\u201d, which are relevant to the execution of the selection and approval processes for the Group\u2019s partners.<\/p><p>In 2023, work was carried out to update the Group\u2019s internal regulations, relating primarily to the harassment prevention guide, the update of the Group\u2019s Logistics Protocol, and refresher training on the Code of Ethics and Conduct.<br \/>As part of the work to update the Compliance Model, a comprehensive review and improvement of various internal policies and protocols was carried out during the 2025 financial year, with the aim of ensuring their alignment with best practices, applicable regulatory requirements and the evolution of the<br \/>risks identified within the organisation.<\/p><p>The policies and protocols updated and communicated to the organisation include the following:<\/p><ul><li>Harassment Prevention Protocol, updated to bring it into line with new regulatory requirements regarding the prevention of and response to harassing behaviour.<\/li><li>Conflict Minerals Policy, revised to incorporate new regulatory obligations applicable to the supply chain and to strengthen due diligence criteria.<\/li><li>Commercial Sanctions Policy, updated to align it with legislative changes and international standards regarding economic sanctions.<\/li><li>Protocol on Relations with the Public Administration, amended to clarify and develop new controls over interactions with public officials and representatives, thereby enhancing transparency.<\/li><li>Procedure for the Management of Social Action, Donations and Sponsorships, updated to adjust and define approval workflows, ensuring consistent processes aligned with the Compliance Model.<\/li><li>Logistics Protocol, strengthened to improve controls associated with due diligence activities in material dispatch processes.<\/li><\/ul><p>Furthermore, during the financial year, the new Equality, Diversity and Inclusion Policy was issued, a document that reinforces the Group\u2019s commitment to an inclusive, respectful working environment based on genuine equal opportunities for all.<\/p><p>These updates have been disseminated to the various teams with the aim of reinforcing understanding and the correct application of the Compliance Model across all areas of the Group.<br \/>During the 2025 financial year, various internal communications were issued, including both recurring communications, such as the monthly bulletins on internal regulations, which include policy updates and specific reminders linked to certain periods, for example, the guidance on how to act when offered gifts, invitations and incentives during the Christmas campaign\u2014as well as special communications based on identified risks, notably warnings about \u2018CEO Fraud\u2019 (Business Email Compromise, BEC) and the dissemination of regulatory updates regarding \u2018Rare Earths\u2019.<\/p><p>With the aim of covering human rights training in the 2025 financial year, courses relating to the Code of Ethics and Conduct are being considered, delivered via the Academy platform, aimed at office staff, with 162 professionals taking part and 270 hours of training (4,532 professionals have completed the course since its launch, representing 60% of the workforce).<\/p><p>100% of staff receive training and\/or information on the Code of Ethics and Conduct (ethics policy).<br \/>The Harassment Prevention Guide, with 117 professionals taking part and 26.5 hours of training (more than 2,790 professionals have completed it since its launch, representing 36% of the workforce). In this regard, the company has set the following target: to provide training in harassment prevention to at least<br \/>60% of the workforce by 2030.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4841f08 elementor-widget elementor-widget-heading\" data-id=\"4841f08\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Complaints and ongoing litigation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e420fc2 elementor-widget elementor-widget-button\" data-id=\"e420fc2\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"#\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">2-25, 205-2, 205-3, 406-1, 408-1, 409-1, 206-1, 416-2, 418-1, 307-1, 419-1, 417-2 and 417-3<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8d9e54a elementor-widget elementor-widget-text-editor\" data-id=\"8d9e54a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Gonvarri Industries\u2019 Ethics Channel is open for use both internally by employees and by any interested third parties (suppliers, customers and others). It can be used to report irregular or improper situations that breach the Code of Ethics. The Ethics Channel is available in 18 different languages, making it<br \/>accessible to all potential users worldwide.<br \/>During the reporting period, 43 valid reports were received, of which 7 are pending resolution.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29155 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/current-sustainibility-report-Gonvarri.webp\" alt=\"current - sustainibility report - Gonvarri\" width=\"801\" height=\"239\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/current-sustainibility-report-Gonvarri.webp 801w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/current-sustainibility-report-Gonvarri-300x90.webp 300w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/current-sustainibility-report-Gonvarri-768x229.webp 768w\" sizes=\"(max-width: 801px) 100vw, 801px\" \/><\/p><p>Comparative table of complaints received over the last 3 years:<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29157 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/complaints-sustainibility-report-Gonvarri.webp\" alt=\"complaints - sustainibility report - Gonvarri\" width=\"658\" height=\"787\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/complaints-sustainibility-report-Gonvarri.webp 658w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/complaints-sustainibility-report-Gonvarri-251x300.webp 251w\" sizes=\"(max-width: 658px) 100vw, 658px\" \/><\/p><p>During the reporting period, there were 1,380 visits to the ethics portal and a total of 1,050 users. Comparative table for the last three years:<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29159 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/users-sustainibility-report-Gonvarri.webp\" alt=\"users - sustainibility report - Gonvarri\" width=\"650\" height=\"653\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/users-sustainibility-report-Gonvarri.webp 650w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/users-sustainibility-report-Gonvarri-300x300.webp 300w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/users-sustainibility-report-Gonvarri-150x150.webp 150w\" sizes=\"(max-width: 650px) 100vw, 650px\" \/><\/p><p>The web channel was the preferred method for whistleblowers, accounting for 61% of the total, followed by submissions via the Gonvarri intranet at 16%. The channel\u2019s uptime (SLA \u2013 Service Level Agreement) during 2025 was 100%.<\/p><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29161 size-full\" src=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/channel-sustainibility-report-Gonvarri.webp\" alt=\"channel - sustainibility report - Gonvarri\" width=\"731\" height=\"200\" srcset=\"https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/channel-sustainibility-report-Gonvarri.webp 731w, https:\/\/www.gonvarri.com\/wp-content\/uploads\/2026\/05\/channel-sustainibility-report-Gonvarri-300x82.webp 300w\" sizes=\"(max-width: 731px) 100vw, 731px\" \/><\/p><p>The complaints received were resolved with disciplinary measures of varying severity, depending on the seriousness of the facts established following the investigation.<br \/>With regard to other proceedings brought against the company, ongoing litigation and sanctions, during the reporting year there were none that had a significant financial impact on the Group, in relation to:<\/p><ul><li>Sensitive activities relating to human rights, forced labour and child labour, which have a significant impact on the company\u2019s various operations (408-1 and 409-1).<\/li><li>Unfair competition, monopolistic practices and anti-competitive behaviour (206-1).<\/li><li>Impacts on the health and safety of product and service categories (416-2).<\/li><li>Substantiated complaints regarding breaches of customer privacy and loss of customer data (418-1).<\/li><li>Non-compliance with social, environmental and economic laws and regulations (307-1 and 419- 1).<\/li><li>Non-compliance relating to information and labelling of products and services (417-2).<\/li><li>Non-compliance relating to marketing communications (417-3).<\/li><\/ul><p>During the financial year, and in compliance with the Corporate Privacy Policy, 43 enquiries relating to the Protection of Personal Data were handled. These requests came from 11 different companies and covered issues of varying nature and complexity, all of which were resolved satisfactorily.<br \/>Furthermore, a request to exercise rights by a data subject was processed, in accordance with current regulations.<\/p><p>During the same period, two security incidents involving personal data were recorded. Following analysis, it was determined that neither incident required notification to the relevant supervisory authority, as they did not meet the criteria required for such reporting.<br \/>At the end of the financial year, no significant complaints or fines were received relating to social, environmental, economic, labour practices and\/or human rights issues, exceeding \u20ac100,000 or which, by their nature, have a particular impact on the company.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3a2610c elementor-widget elementor-widget-heading\" data-id=\"3a2610c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Risks and opportunities<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec91ea1 elementor-widget elementor-widget-heading\" data-id=\"ec91ea1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">1. Risk management<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4477de9 elementor-widget elementor-widget-text-editor\" data-id=\"4477de9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Gonvarri Industries is subject to various risks inherent to its business arising from its commercial, financial and economic operations, as well as from the legal obligations it must comply with in the countries in which it operates.<br \/>To manage these risks of all kinds and nature, the group has mechanisms and systems for the detection, assessment and management of risks within its business processes and operations.<\/p><p>In 2016, the \u201cInternal Audit\u201d department was formally established with the aim of integrating the various risk detection, assessment and management mechanisms and processes already present across all the Group\u2019s business processes.<br \/>This management system provides reasonable assurance that all significant risks\u2014strategic, operational, financial and compliance risks\u2014are prevented, identified, assessed and subject to continuous monitoring.<\/p><p>With regard to risks relating to regulatory compliance and criminal matters, a \u201cCompliance Model\u201d has been developed with the aim of improving the monitoring, measurement and control mechanisms<br \/>associated with these risks.<br \/>Following a situation analysis, its design was initiated. The risks associated with Gonvarri Industries\u2019<br \/>activities were identified and assessed, and the controls required for their mitigation, as well as the<br \/>mechanisms for supervision and continuous improvement, were defined. These controls are of various<br \/>kinds and are set out in the Group\u2019s internal regulations.<br \/>Of particular note in this area is the \u201cCorporate Risk Control and Management Policy\u201d, which aims to<br \/>establish basic principles, as well as a framework for internal control and the management of risks of all<br \/>kinds faced by the Gonvarri Industries Group.<br \/>In accordance with the Policy, the Group has a formal, verifiable and traceable process for the<br \/>identification and assessment of risks at the level of each plant or location and at the corporate level. The<br \/>process is recurring and scalable and involves the relevant personnel from each area. Risks are reassessed<br \/>at least annually or whenever significant changes or circumstances require it.<br \/>Regarding the methodology, the calculation of Inherent Risk is based on impact and probability according<br \/>to the variables defined by type of analysis (Compliance, Operational Processes, IT, etc.) and the<br \/>dimensions assessed.<br \/>For these risks, controls\/control activities are defined and assessed based on their design and<br \/>effectiveness. To determine the design rating, a series of parameters are established depending on the<br \/>type of analysis, and effectiveness is assessed based on the sample reviewed during the control.<br \/>One of the functions of the Internal Audit and Compliance Department is to provide advice and<br \/>collaborate with the Management of the Gonvarri Industries Group in identifying risks, and, in<br \/>coordination with the entire organisation, to assist in establishing the necessary mechanisms and tools to<br \/>ensure adequate risk management aligned with the Group\u2019s strategic objectives.<br \/>In this regard, during the 2021\u20132022 period, the Group\u2019s Internal Audit department implemented a<br \/>\u2018Continuous Audit\u2019 system carried out remotely and managed through various tools:<br \/>\u25cf A system of predefined automatic alerts designed to identify risk events<br \/>\u25cf Dashboards developed by process with key indicators<br \/>The aim of remote continuous auditing is the efficient identification of incidents for early detection and<br \/>improvement of business processes. We focus on indicators that show a deviation or non-compliance with<br \/>the internal regulations applicable to the Gonvarri Industries Group.<br \/>The Continuous Audit system is a methodology based on the identification of incidents, analysis of causes<br \/>and the issuance of recommendations. The monitoring system itself allows for continuous tracking of<br \/>compliance with the recommendations issued.<br \/>The scope of the reviews carried out under the continuous audit system covers all companies within the<br \/>Gonvarri Industries Group that use the SAP system as their ERP system. The Group is currently designing<br \/>additional monitoring and control systems for those companies using other management systems.<br \/>To date, more than 600 requests have been made to the Group\u2019s various plants via the continuous audit<br \/>system. This work has triggered numerous actions and led to improvements in various business processes,<br \/>with a view to mitigating risks of various kinds, which have been analysed and monitored during the<br \/>reporting year.<br \/>SUSTAINABILITY REPORT 2025<br \/>102<br \/>In addition, review work continued throughout the year via the continuous audit system.<br \/>Plans were also established to connect existing tools to other databases and systems across the Group\u2019s<br \/>companies.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>SUSTAINABILITY REPORT 2025 Governance CORPORATE GOVERNANCE Governance Structure and Composition (Content 202-2 and 205-1) The governing bodies of the company are the General Meeting of Members and the Board of Directors, the highest body for governance, supervision, decision-making and control of Gonvarri Corporacion Financiera, S.L., hereinafter \u201cGonvarri Industries\u201d. The Articles of Association of Gonvarri Industries [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"parent":11819,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_canvas","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-27781","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/pages\/27781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/comments?post=27781"}],"version-history":[{"count":5,"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/pages\/27781\/revisions"}],"predecessor-version":[{"id":29342,"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/pages\/27781\/revisions\/29342"}],"up":[{"embeddable":true,"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/pages\/11819"}],"wp:attachment":[{"href":"https:\/\/www.gonvarri.com\/en\/wp-json\/wp\/v2\/media?parent=27781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}