ESG - Environmental

Environmental management at Grifols

A cross-cutting and comprehensive approach

Gestión de los grupos de interés de Grifols

	Eco-efficiency	Integration of environmentally sustainable criteria into the design of new projects, products and services, and review of existing ones. The R&D departments of ISO 14001-certified companies and Grifols’ engineering departments with oversight for engineering projects explore the most eco-efficient alternatives in new products and projects, and review of existing ones. Application of Grifols’ “Guidelines for the Design of Containers and Packaging with Environmental Criteria”.
	Prevention	Routine review of preventive measures to mitigate the possible impact of environmental risks. Periodic emergency drills at certified production plants to simulate emergency response to environment-related incidents. Specific employee training.
	Legislative compliance	Implementation of legislative monitoring systems and regular compliance audits in certified companies.
	Proactivity: short- and long-term action plans	Six environmental commitments for Grifols 2030 Agenda. Commitment to net zero emissions by 2050 (scopes 1 and 2). Commitment with SBTi signed in 2023* for the 2024 approval of targets with 2030 deadlines. 2023-2026 Corporate Environmental Program.
	Environmental communication and awareness	Boost communication channels with main stakeholders. Internal and external communication procedures. In 2023, more than 2,400 hours were allocated to training, education and awareness-raising activities on environmental management and preservation. This included environmental training for the entire workforce on waste management, water use, electricity use and other issues.

More information and details at Science Based Targets Initiative (SBTi)

A continually evolving internal regulatory system

Grifols endeavors to implement best practices to fulfill its commitments and address the needs of a changing environmental landscape, including the ongoing review of environmental and energy regulations.

Environmental certifications

Grifols has an ISO 14001-certified Environment Management System for its main production companies to identify and comply with all applicable environmental legislation; recognize the environmental impacts of its processes and products; implement preventive and corrective measures; and establish objectives to boost its environmental performance.

This comprehensive system includes the Corporate Environment Manual, which offers an organization-wide framework for Grifols’ environmental management.

All certified companies and those in the process of certification have an environmental committee led by their respective senior management team. This committee is the most important decision-making body in terms of defining environmental guidelines and assuring the correct execution and maintenance of the Environment Management System, including the allocation of requisite human and economic resources.

By the end of 2023, 73% of Grifols’ total production was manufactured in ISO 14001-certified plants, and 70% of manufacturing employees worked in certified plants.

Grifols prioritizes the certification process of its manufacturing plants by starting with those with larger production output and progressively taking steps to certify those with smaller production volumes and/or a lesser environmental impact. All certified plants are audited by TÜV Rheinland, an independent certification body.

Grifols also ensures its buildings and facilities are designed with sustainability in mind.

In 2023, Grifols continued to work towards LEED (Leadership in Energy and Environmental Design) certification for its production facilities in Montreal, Canada. LEED is the world’s largest scale rating system for sustainable buildings.

In 2023, Grifols was awarded a A- rating by the Carbon Disclosure Project (CDP) Climate Change, regaining the score received in 2021. The world’s leading environmental reporting platform, the CDP annually assesses companies’ climate change corporate strategies and performance. Grifols participated in the CDP Water Report in 2023 in alignment with its commitment to transparency with its diverse stakeholders.

* Leadership in Energy Efficiency and Environmental Design
** Green Globes, certified by the Green Building Initiative
*** Zero Waste to Landfill awarded by Underwriters Laboratories (UL)

A global organization to manage environmental risks

As an organization with a vast global reach, Grifols spearheads broad-based efforts to control, prevent and manage environmental risks. All Grifols’ ISO 14001-certified facilities have robust management systems to minimize and mitigate environmental risks, including those derived from its operations (anthropogenic activity) and those produced by nature (natural), such as extreme weather and climate events.

Each facility has concrete self-protection plans that stipulate the necessary actions in the event of an environmental emergency and the teams responsible for their implementation.

Everyone involved in environmental risk management receives relevant training in accordance with Grifols’ continuous development strategy.

2023-2026 Corporate Environmental Program

Grifols’ 2023-2026 Corporate Environmental Program addresses three fundamental areas: climate change, circular economy and biodiversity, establishing specific objectives and initiatives for each.

Access to the 2023-2026 Corporate Environmental Program

More details on progress and compliance with environmental commitments related to the SDGs: “Sustainability and Human rights”.

Energy sources: responsible consumption

Natural gas

Greater eco-efficiency in a context of productive growth

Favorable impact of Biopharma

• Consumes 86% of all Grifols’ natural gas usage.
• The 35 M kWh increase in absolute gas consumption is due to increased production rates in the cogeneration plant and accounts for a 4% rise in relation to sales and a 4% fall in relation to production*.

Diagnostic consumption remains stable

• Diagnostic consumption levels remains stable in absolute value and relative to production and sales.

Variations at country level

• In Spain, the rise in consumption is mainly due to increased activity at the cogeneration facility and an increase in Biopharma’s production.
• U.S. up 6% mainly due to Biopharma plant, which increased production by 14%.
• In the rest of the world, there has been a slight increase in consumption due to production tests at both the Canadian and Irish facilities.

* In terms of consumption relative to production and sales, Biopharma includes the Plasma Procurement and Biopharma business units, which together would be comparable to the former Bioscience Division.

More details on natural gas consumption are included in the tables at the end of this chapter.

Electricity

Consumption is falling in a context of rising rates of production.

By 2030, 100% of the electricity consumed will come from renewable sources.

Positive impact of Biopharma

• Consumed 63% of all electrical energy used
• Total consumption fell by 1%
• Down 9.1% relative to sales*
• Up 16.6% relative to production*

Diagnostic reduced total consumption

• 5.9% decrease for the second consecutive year
• 5.8% increase relative to production and sales

Variations at country level

• Down 2.6% in the U.S.
• Up 2.3% in Spain and the rest of the world due to the increase in production

* In terms of consumption relative to production and sales, Biopharma includes the Plasma Procurement and Biopharma business units, which together would be comparable to the former Bioscience Division.

More details on electricity consumption, see the tables at the end of this chapter.

Renewable energies

A key area of emphasis

Increase in electricity consumption from renewable sources

In 2023, Grifols consumed a total of 152.6 million kWh of renewable electricity, representing 34.3% of total electricity consumption.

Spain consumed 20.7 million kWh of renewable electrical energy

Roughly 20.2 million kWh of renewable energy came from the Casa Valdés photovoltaic park, included in the 10-year Power Purchase Agreement (PPA) signed with RWE in 2021. In 2023, 453,471 kWh of photovoltaic energy was generated at Grifols’ own facilities for self-consumption in Barcelona and Murcia.

Grifols continues to pursue agreements to construct new photovoltaic park to increase the levels of renewable energy consumed in Spain and other European countries.

Driving renewable electricity consumption in the U.S. and Ireland

By region, 70% of the group’s electrical energy is consumed in the U.S., home to several of its industrial complexes and the majority of its plasma donation centers. More than 119.9 million kWh of electricity was consumed with guaranteed renewable energy (80 million kWh in 2022), and more than 11.5 million kWh in Ireland. The German sales offices consume the remaining 340,000 kWh of renewable energy from guaranteed sources.

Cogeneration

Enabling the production of electricity and heat for Biopharma

Biopharma’s Barcelona facilities are equipped with a 6.1 MW cogeneration plant, which generates electricity sold back to the grid, as well as producing useful heat for Grifols’ own facilities. This plant generated 40.6 million kWh of electricity in 2023, denoting a 47.2% increase over the previous year. The cogeneration plant was not yet fully operational in 2022. The useful heat recovered amounted to 30.4 million kWh.

More details on consumption from the cogeneration plant, see the tables at the end of this chapter.

Water cycle

Grifols rationalizes water consumption in a context of industrial growth.

Cost-saving measures are implemented in 73% of production facilities.

Grifols operates in regions where water conservation is essential. The company incorporates water-saving measures into the design of new facilities in addition to implementing solutions in existing facilities. These include the recovery of clean water from production processes for use in auxiliary processes, the installation of automated cleaning systems (CIP) to reduce the amount of water used to clean reactors and equipment, and reduced consumption in water treatment systems such as reverse osmosis.

*In terms of consumption relative to production and sales, Biopharma includes the Plasma Procurement & Biopharma business units Biopharma, which together would be comparable to the former Bioscience Division.

More details on water consumption are available in the tables at the end of this chapter

Wastewater and discharge management

Grifols adheres to all applicable national and local regulations and permits regarding the disposal and treatment of wastewater at its facilities. All wastewater is sent to local sewage systems where it is treated by municipal or regional facilities. Grifols’ industrial plants pre-treat the water to suitably purify it before its disposal, and all are located in areas where the local authorities monitor water discharge. Manufacturing plants with environmental management systems and/or certified companies have instructions on how to prevent, control and monitor the quality of wastewater. Commercial offices and warehouses discharge wastewater into the municipal sewage system.

In 2023, 2.4 million m³ of wastewater was discharged to public sewers. In U.S. plants, stormwater is conveyed to public waterways including the Los Angeles River, Neuse River and San Francisco Bay. Approximately 34% of water is consumed in auxiliary processes such as cooling towers or incorporated into the product, while 66% is discharged to the sewer.

In 2023, the Barcelona and Clayton (North Carolina) facilities treated 849,191 m³ of wastewater using biological systems prior to discharge, representing 35% of the total discharge. Projects are underway to expand these treatments at both plants and in 2023, the new Clayton and Barcelona wastewater plants came into operation.

In water-stressed areas, the distribution of discharges corresponds to water consumption, with no significant variations from previous years. Chemical oxygen demand (COD) is the most significant discharge parameter. This is defined as the amount of organic and inorganic matter susceptible to oxidation. In 2023, 2,168 tons of COD were discharged, most of which corresponded to Biopharma’s production facilities. In addition, 326 tons of suspended solids were discharged.

Grifols does not work with genetically modified organisms or with products capable of generating persistent organic compounds, and consequently, generates no discharge of this nature. The contribution of nitrogen or phosphorous to wastewater is insignificant since it comes mainly from sanitary and non-production-related discharges

More details of water consumption and discharges, see the tables at the end of this chapter

Biodiversity

Protecting biodiversity on Grifols-owned land through Grifols’ Wildlife programs is one of the company’s environmental priorities.

Grifols’ Wildlife programs are focused primarily on launching various initiatives in the Clayton (North Carolina) protected natural area. A collaboration agreement for the conservation of two river basins in Catalonia (Spain) is also still in force.

Under its Environment Management System, Grifols assesses potential environmental risks at its U.S. facilities (Clayton), particularly its impact on biodiversity.

Natural protected area in North Carolina

Grifols owns over 121 hectares of forest adjacent to its production facilities in Clayton, North Carolina. This is an ideal habitat for many aquatic and terrestrial species and is certified by the Wildlife at Work and Corporate Lands for Learning programs, both of which were launched by the Wildlife Habitat Council (WHC).

Conservation projects* carried out in 2023 include:

• Collaboration with local students to help maintain the birdhouses for native bird species, contributing to nesting, breeding and shelter.
• Continued protection of an extensive wooded area adjacent to Grifols’ facilities that had been earmarked for development, to preserve it as a habitat for wildlife and keep it as a recreational area for environmental education for the workforce. In 2023, bridges were installed to provide access for disabled users and the trails were cleaned and maintained. Grifols contributes to preserving forest-dependent fauna and plant diversity and eliminating invasive species in the area.
• Two “Year of the Trail” events were held in 2023, welcoming around 100 people to take part in trail hikes.

Management of prairie flora and fauna has continued, including the installation of birdhouses for local birds and bats and the removal of non-native plant species. This contributes to preserving dependent fauna, plant diversity in the area and eliminating invasive species.

• Improvement and maintenance of a pollinator garden for the development of five active hives. In 2023, additional native fauna was planted in the garden and 35 Grifols employees were trained in the care of bees and hives. This contributes to raise awareness and maintain diversity.

* Includes the main projects carried out for each of the programs.

Conservation and preservation of river systems in Spain

In 2023, Grifols renewed its collaboration agreement with the RIVUS Foundation, dedicated to research, education and volunteer projects to promote the conservation of natural areas, particularly the Besòs and Tordera river basins. Grifols supports the Foundation’s awareness programs in local schools in reflection of its environmental commitment and desire to give back to the community.

The projects launched in 2023 entailed environmental education, outreach and training for students and the general public. Some of the main highlights included:

Educating children on the importance of the river environment

The “Discover the river” program for the 2022-23 academic year included 15 activities, welcoming 5,432 students from 90 schools in 33 towns located on the Besòs and Tordera river basins.

Raising awareness of the importance of the Tordera river basin

The RIVUS Observatory’s Environmental Education, Communication and Training Program (PROECA) is aimed at educational centers, and includes programs to teach sampling methodologies to schoolchildren and other initiatives at the university level. In 2023, 600 people benefited from these offerings.

Sergi Mingote Academic Paper Award

This award is given in recognition of outstanding research work on water or river systems carried out by high school and vocational training students. To date, more than €2,000 have been awarded in prize money.

The importance of river basin restoration

“H2O Connecta: Environmental Education, Outreach and Training on Water and River Systems” is a project aimed at connecting the general public with knowledge of their local rivers. Over 350 people participated in conferences and workshops, guided tours and the traveling exhibition in 2023.

Protection and preservation of the “Grifols Centennial Forest”

In 2023, Grifols signed a sponsorship agreement with the Associació Sèlvans, which works to preserve natural forest heritage considered particularly unique and valuable, and occupy a minimum of 5% of the finest forest area in Catalunya, Spain. Grifols’ support will span 2023 and 2024 with three main objectives: preserve the “Grifols Centenary Forest” as a natural environment to promote people’s health and well-being; offer a home and refuge for extraordinary biodiversity; and model positive action in the face of the climate crisis.

The “Grifols Centennial Forest” is an area in danger of being designated for commercial logging and therefore in urgent need of protection. The 40-hectare forest is located in the Garrotxa Natural Volcanic Park about 100 kilometers from Grifols Barcelona facilities.

A preliminary custody agreement ensures its preservation for the time-being and opens up the possibility of a long-term conservation (minimum 25 years).

Grifols has developed several initiatives through this sponsorship to raise awareness on the need to preserve the natural environment. These include co-organizing Grifols 2023 World Environment Day; launching training programs, such as a country walk for employees and their families to foster greater knowledge of the natural environment and its biodiversity; and designing a forestry itinerary and adapting it to provide forest therapy, among others.

Tree sponsorship in Germany

Employees from Grifols’ donation centers in Germany commemorated World Environment Day by donating to the “Ecken Wecken” Foundation and participated in a tree sponsoring project near its headquarters in Leipzig. They also helped plant flowers around the trees, all in an aim to improve biodiversity.

Bee conservation in Ireland

In 2023, Grifols partnered with the Irish Bee Project to support environmental conservation and help protect biodiversity at its main site in Ireland. This collaboration targets the preservation of Ireland’s indigenous bees and pollinators for future generations. The project involved establishing a bee sanctuary at Grifols’ Dublin site, providing bees with a secure environment, featuring custom-built nests and appropriate plant life.

As pollinators, bees play an essential role in our ecosystem, contributing to the growth of trees, flowers and other plants, and foster the development of complex, interconnected ecosystems. This fosters a balanced ecosystem in which diverse species coexist.