Integrated Report 2023
  • GRI 204-1
  • GRI 414-1
  • GRI 308-1

The basic raw materials used by the Capital Group include primary aluminium, aluminium scrap as well as semi-finished products based on aluminium (sheet aluminium and aluminium foil as well as billets made from aluminium and its alloys). In the production of flexible packaging, the Group also uses various types of plastic films and granulates (polyethylene, polypropylene), universal and grease-proof printing paper, paints, adhesives and binders.

The list of basic raw materials is supplemented with accessories and semi-products for the production of aluminium systems: fittings, weather strips, glazing, etc. Due to the necessity of maintaining high quality of production, the purchasing policy of the Capital Group is based on cooperation with selected suppliers who guarantee proper standards. At the same time, diversification of suppliers has been assumed in order to secure supplies and maintain their competitiveness.

Being aware of its impact on the environment, the Company has been trying, in the first place, to use the services of local or national suppliers. Unfortunately, due to the nature of the industry, it is possible only to a limited extent (aluminium scrap, paints, lacquers, thinners, granulate for plastic film production, and some accessories for systems production).

Owing to the absence or limited number of domestic suppliers of many raw and production materials, most of them are imported. The purchase of materials from domestic suppliers in 2023 reached about 27% (-2 p.p. y/y), the supplies from other European countries represented roughly 65% (+5 p.p. y/y), and from other continents approximately 8% (-3 p.p. y/y). In addition, due to Russia’s aggression against Ukraine and the support of this aggression by the Belarusian authorities, in 2022 the Capital Group suspended cooperation with contractors from these countries.

The Capital Group has introduced a process to oversee the environmental impact, occupational health and safety, as well as respect for human rights in the supply chain. Also binding is the Code of Conduct for the Suppliers of the Grupa KĘTY S.A. Capital Group, which specifies the major requirements for the suppliers of the Capital Group with regard to running ethical and fair activities, ensuring safe and hygienic working conditions, respecting human rights, assuming liability for the quality of products and for the natural environment.

The document covers aspects of importance to the Capital Group, including its commitments to suppliers as well as expectations towards them.

In 2023 Group criteria for the measure of Engagement of suppliers in the sustainable development of the Capital Group were adopted and a decision was made that in the 2021-2025 ESG strategy, the measure shall apply to the suppliers of materials which generate the total of 90% of the value of purchases by the Capital Group. In 2023 there were 169 such suppliers, which represents 90%, and in that number 153 shall follow the Code conditions.

In 2023, in order to prepare the organisation for reporting GHG emissions in Scope 3 in the subsequent year, questionnaires regarding carbon footprint were prepared. There were 262 questionnaires sent, and 141 returned (53% of the total number), and in that number 53 companies (38%) were able to determine the carbon footprint of their products. This means that the Company may have problems with reporting Scope 3 emissions in the coming reporting year.