In 2025, we reduced total market based emissions by 20% compared to the 2022 base year. 2025 was a year of disciplined progress in a challenging environment. Continued geopolitical uncertainty and subdued consumer sentiment in Europe and North America tested our markets, but Faerch responded with focus - optimising our portfolio, strengthening our operations, and advancing our sustainability commitments. The packaging landscape continues to evolve rapidly. Regulatory developments such as the Packaging & Packaging Waste Regulation (PPWR) combined with the implementation of Extended Producer Responsibility (EPR) schemes, and changing consumer patterns, present several opportunities but also challenges. At Faerch we remain committed to our science-based targets and we are on track to reach the near-term goal of a 50% reduction by 2030. In 2025, we reduced total market based emissions by 20% compared to the 2022 base year. We achieved significant permanent reductions through renewable energy initiatives with three new Power Purchase Agreements (PPAs) in the UK, Poland, and Hungary, leading to a 29% reduction in scope 2 market based emissions compared to the previous year. While many recyclers across Europe faced significant market pressure in 2025, Faerch’s integrated recycling facility, Cirrec, continued to demonstrate stable output and quality performance and we steadily increased levels of truly circular content in our products. We stay committed to offering our customers and the end consumers industry leading circular solutions. As an integrated recycler and converter, we deliver consistent quality and supply of our recycled CIRPET+™ content and protect customers from market volatility while supporting their decarbonisation journeys and sustainability focused marketing efforts. In 2025, we had the emission factor for our CIRPET+™ material independently validated, which confirmed that the material delivers significantly lower greenhouse gas emissions than average virgin PET, and average bottle-derived recyclate. This provides our customers with the transparency and confidence they need to make informed choices about their packaging. Our product portfolio continues to evolve and in 2025 94% of our products were designed for recycling. This includes among others our continued phasing out of multi- material APET structures in favour of mono- material PET solutions that protect the quality of post-consumer waste streams. We also launched the RecycleDuo™ platform enabling paper-decorated packaging with high demonstrated separation efficiency. And we introduced a built-in absorber tray design, eliminating the need for separate absorbent pads. These innovations reflect our belief that recyclability must be engineered in from the start, not added as an afterthought. Internally, we made tangible progress toward becoming one unified company. We standardised People & Culture processes, and launched our revised strategy, Ignite Our Potential, with clear priorities around customers, operational excellence, impacting the world around us and working as one team with shared values. The foundation is solid. The direction is clear. I am grateful to our teams, customers, and partners for their continued commitment as we pursue this journey together. Pernille Lind Olsen Chief Executive Officer Faerch Sustainability Report 2025 7
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