Sustainability Agenda

Sustainability as an opportunity

As environmental awareness increases, demand for more energy-efficient and environmentally sustainable glass solutions is growing. Glaston views the promotion of sustainable development as a business opportunity, and as a frontrunner in our industry we are involved in creating industry standards and practices in relation to sustainability, such as for energy efficiency and safety.

In glass industry sustainability issues, there is an emphasis on the energy efficiency of glass manufacturing and further processing. Glass production processes are energy-intensive and the industry’s key goal is to further reduce its energy consumption as one means of reducing the industry’s carbon dioxide emissions.

In this, the energy efficiency of buildings plays a key role in transitioning to a clean and carbon-neutral economy. For example, 75% of the EU’s building stock is energy inefficient*), and heating and cooling of buildings account for half of final energy consumption in the EU. Therefore, improving the insulation of buildings is of great importance.

Of Glaston’s customer segments, the architectural and construction segment is the biggest. New standards, measures promoting carbon neutrality in Europe, and stricter legislation are supporting the use and development of more environmentally aware and energy-efficient solutions. At the same time, development of local control of construction with regard to safety and quality regulations is evident in many of Glaston’s market areas.

Glass will play a key role in achieving the energy efficiency targets for buildings in both new and renovation construction. The technologies developed by Glaston enable the production of more energy-efficient glass structures, and Glaston offers its customers a wide range of products and services that enable them to manufacture more energy-efficient windows and insulating glass units.

As environmental awareness grows, demand for solar energy and smart glass is growing. In addition to solar panels and cells, new applications of the future may include solar panels integrated into façades or windows to provide energy for buildings. In smart glass applications, windows that react to fluctuations in light or temperature, for example, improve the energy performance of buildings.

*) Source: Directive of the European Parliament and the Council on energy efficiency, 2021.

Energy efficiency of buildings in Europe

The goal of the Renovation Wave Strategy, published by the European Commission in 2020, is to at least double the number of renovations over the next decade and to ensure that they lead to better energy and resource efficiency. The goal applies to around 35 million buildings.
The project will be a significant driver of growth for Glaston’s business, as coated double and triple insulating energy-saving glass produced with Glaston’s technologies are key solutions in energy saving for windows and glass façades.
The glass processing industry has actively developed types of glass that can be used effectively to reduce the need for heating and cooling and thereby change the energy consumption of buildings.

Managing sustainability

One of the focus areas of Glaston’s strategy is sustainability. To demonstrate this, the strategy has set four targets addressing sustainability. The work towards the set sustainability targets is steered by a roadmap, approved by the copmpany’s Executive Leadership Team and the Board of Directors, which includes a plan and a timetable of measures.

The Sustainability Policy describes the principles and priorities related to the management and leadership of the Group’s sustainability and defines the responsibilities for different functions. The policy can be downloaded here.

Strategic sustainability targets

In Glaston’s strategy, Group-wide strategic targets promoting sustainability have been set for the medium term (3-5 years):

Safety target measured as zero lost time accidents (accident frequency, LTIFR)
Employee engagement rate over 75 (out of 100)
Customer satisfaction score (Net Promoter Score, NPS) over 40
Glaston’s CO2 emissions from own operations (Scope 1+2) 50.4% down from 2022 level and value chain (Scope 3) CO2 emission down by 58.1% per sqare meter of sold machine processing capacity by FY2032 compared to the FY2022 base year (emission intensity)

*)In February 2024, Glaston adjusted the timeframe for reaching the strategic targets from 2025 to the medium term (3-5 years)

TOPIC	INDICATOR	TARGET	OUTCOME 2024	OUTCOME 2023	TIMETABLE*)
Own workforce	Accident frequency (LTIFR), # of accidents/million hours worked	Accident frequency zero	5.7	6.3	Continuous
Own workforce	Reports of workplace harassment	No harassment cases	Two cases reported	Three cases reported	Continuous
Own workforce	Employee engagement rate	Engagement rate >75 (of 100)	76	70	2025
Environment	CO2 emissions in own operations	Reduce absolute scope 1 and 2 GHG emissions by 50.4% by 2032, compared to the 2022 base year	1,539 tCO2e	1,238 tCO2e	2032
Environment	Emissions in value chain	Reduce the scope 3 GHG emission by 58.1% per square meter of sold machine processing capacity by FY2032, compared to the FY2022 base year (emission intensity)	0.00017 tCO2e/m2	0.00036 tCO2e/m2	2032
Customer satisfaction	Industry’s best customer experience	Customer satisfaction score (NPS) >40	64	62	2025

Material topics

As part of the company’s preparations for the entry into force of the sustainability reporting standards, Glaston carried out a double materiality assessment (DMA) between spring 2023 and fall 2024. The materiality assessment examined the most material sustainability topics with regard to the company’s strategy, business model, impacts, risks and opportunities.

Based on the assessment, Glaston’s material environmental topics are climate change mitigation, energy and climate change adaptation. The material social topics are the company’s own workforce and consumers and end-users through creating safety for the users of buildings.

Sustainable development goals

Glaston supports the United Nations Sustainable Development Goals (SDGs), which will guide the sustainable development actions of member states, companies and other organizations up to 2030. We have identified seven goals that also emerge from our own strategy and are most relevant to us. These provide a broader frame of reference for our work and support the achievement of these goals in our own activities.

Reporting on sustainability performance

Glaston’s Annual Review contains the Board of Directors’ Review including the Sustainability Statement, the Financial Statements, the Corporate Governance Statement and the Remuneration Report.

The content of the Sustainability Statement has been prepared based on the Corporate Sustainability Reporting Directive (CSRD) and in accordance with the sustainability reporting standards (ESRS). The Sustainability Statement can be found in the Annual Review on page 47.

During 2019-2024, Glaston has reported on selected sustainability indicators according to the EU Non-Financial reporting Directive (NFRD).

Glaston reported financial figures according to the EU’s taxonomy regulation for the first time in 2021.

Sustainability recognitions
As part of Glaston’s commitment to sustainable and responsible business practices, Glaston is a participant of the UN Global Compact (UNGC). Glaston is committed to the UNGC’s Ten Principles on human rights, labor, environment and anti-corruption. In 2024, Glaston reported on the company’s sustainability performance in line with the UNGC’s Communication of Progress process.

Glaston is certified as a Nasdaq ESG Transparency Partner. This certification is given to companies that exhibit transparency to their investors concerning Environmental, Social, and Governance (ESG) matters.

Sustainability at Glaston