Victoria : ESG Report 2024

Environmental, Social and Governance Report 2024

www.victoriaplc.com

stock code: VCP

Environmental, Social and

Governance Report

OVERVIEW INCLUDING OUR APPROACH TO ESG

Victoria champions sustainable practices, prioritising waste reduction, operational efficiency, and the well-being of our workforce as fundamental pillars of our success as a Group.

Our commitment to sustainable operational improvements has been instrumental in driving the growth and advancement of our business.

During FY2024, we have continued to refine our approach to Environmental, Social, and Governance (ESG) matters, and this period marks the first of

our Task Force on Climate-Related Financial Disclosures. Our key ESG topics remain consistent with those of the previous period and within this report we detail our ongoing efforts and progress in these areas.

We are continuously developing our ESG strategy to ensure sustainability issues are effectively managed, data collection is streamlined, and progress reporting is cohesive throughout the entire Group.

Victoria remains focused on effectively mitigating the ESG risks we face while remaining aligned with the Group's broader business strategy. This alignment is crucial for achieving the success necessary for our continued prosperity.

LEADING THE WAY WITH ELECTRIC TRUCKS

A significant step for our Alliance subsidiary saw us take delivery of our first fully electric trucks in January 2024. With these vehicles in the fleet, we are now collecting over 1200 rolls of carpet per week produced at our manufacturing facility in Wales and delivering them to our Distribution Centre in Worcester carbon free.

The potential to introduce electric trucks into our fleet is something we have been monitoring for several years and we settled on a model we considered the right fit for us, a highly flexible truck for local and regional transportation, with a low level of noise and one that can be used in zero emission zones and areas where diesel trucks are not permitted.

This development enables us to study the suitability of electric trucks for deployment across the rest of our network. Additional fully electric trucks have already been ordered and we will continue to review the opportunity for wider deployment as cell technology and the national charging infrastructure develops further.

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Victoria PLC Environmental, Social and Governance Report 2024

Stock Code: VCP

OUR SIGNIFICANT ESG TOPICS

Below is a table that outlines what we consider to be the key ESG topics relevant to each aspect of our operations, along with their respective priorities.

These topics were first disclosed in 2022 and are the result of collaborative efforts with a leading ESG consultancy to identify our ESG risks, mitigation activities, and opportunities. This comprehensive review involved extensive stakeholder interviews and

thorough research into our sector and the regions in which we operate. The findings, which highlight factors impacting Victoria specifically and the flooring industry more broadly, were integral to a management assessment that determined these topics and their associated priorities.

These ESG topics and their priorities are re-evaluated periodically, with no change noted in the current period.

The prioritisation of specific topics across the Group depends on the

nature of their operations (for example, the priorities related to soft flooring manufacturing may differ significantly from those related to ceramic tile manufacturing). Therefore, certain topics may hold a higher or lower priority for different parts of the Group.

Operational Area

	Soft Flooring	Ceramic Tile	Distribution /
ESG Topic	Manufacturing	Manufacturing	Logistics
	Environmental
Energy management	•	•	•
Carbon Emissions	•	•	•
Waste and Water management	•	•	-
Product lifecycle	•	•	-
Chemicals Management	•	•	-
	Social
Attracting, Developing and Retaining Talent	•	•	•
Diversity & Inclusion	•	•	•
Health Safety and Wellbeing	•	•	•
Responsible Sourcing	•	•	•
Human Rights and Modern Slavery	•	•	•
	Governance
Reporting, Disclosure and Transparency	•	•	•

Victoria ESG Topic Priority

• Low Priority • Medium Priority • High Priority

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Environmental, Social and

Governance Report

ENVIRONMENT

Managing our energy usage & our carbon emissions

We review our Greenhouse Gas (GHG) footprint through the Streamlined Energy and Carbon Reporting (SECR) process. This data enables us to identify the areas of our business which produce the most emissions and to take significant, direct action to reduce our energy usage and carbon emissions.

Streamlined Energy and Carbon Reporting

The section below presents the energy usage and associated carbon dioxide emissions for Victoria's global operations. This section has been prepared in compliance to the SECR Framework as implemented in the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

GHG Emission		UK & Europe	UK & Europe
(1st April 2023 to 31st March 2024)	Units	soft flooring	Ceramics Tiles	Australia	North America	Total
Emissions from combustion of gas (Scope 1)	tCO2e	19,473	170,885	2,627	185	193,171
Emissions from combustion of fuel for transport
purposes (Scope 1)	tCO2e	11,745	2,695	356	3,027	17,823
Emissions from purchased electricity (Scope 2)	tCO2e	32,563	30,941	5,101	189	68,794
Emissions from business travel in rental cars or
employee-owned vehicles where company is
responsible for purchasing the fuel (Scope 3)	tCO2e	36	11	-	181	228
Total Gross emissions	tCO2e	63,817	204,532	8,084	3,583	280,016
Energy consumption used to calculate above
emissions	kWh	273,436,694	1,033,559,721	22,645,836	15,643,133	1,345,285,384
Total Gas Usage	kWh	106,453,065	934,160,536	14,265,909	866,122	1,055,745,633
Total Electricity Usage	kWh	117,256,016	88,516,751	6,821,424	596,207	213,190,399
Total Transport Usage	kWh	49,727,613	10,882,433	1,558,503	14,180,804	76,349,353

Within the UK, the total Gross emissions for the year were 23,411 tCO2e (previous year 24,292 tCO2e) and total associated energy consumption was 111,717,254 kWh (previous year 116,649,642 kWh).

The total Global Gross emissions for the year were 280,016 tCO2e (previous year 314,521 tCO2e) and total associated energy consumption was 1,345,285,384 kWh (previous year 1,557,324,718 kWh), representing a decrease in the current period.

The intensity ratios have been calculated for the four reporting divisions. These have been calculated from sales volumes for each division and include all energy usage and emissions stated within the above emissions figures and the methodology.

Emissions		UK & Europe	UK & Europe
(1st April 2023 to 31st March 2024)	Units	soft flooring	Ceramics Tiles	Australia	North America	Total
Intensity Ratios	tCO2e/ 1000m2	0.461	4.352	0.364	0.505	1.304
Previous year intensity ratio*	tCO2e/ 1000m2	0.433	4.472	0.405	0.196	1.367

* Previous year intensity ratio restated to be comparable with current year.

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Victoria PLC Environmental, Social and Governance Report 2024

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Methodology

Victoria have followed the 2019 HM Government Environmental Reporting Guidelines and report in alignment with relevant aspects of the GHG Protocol. Emissions factors used are tonnes of CO2 equivalent and data has been calculated using the 2023 UK Government's Conversion Factors for Company Reporting,

for all UK electricity and global fuels data. The Australian Government National Greenhouse Accounts Factors, International Energy Agency, Association of Issuing Bodies and the Environmental Protection Agency have been used for all remaining geographical electricity conversion factors for location-based reporting.

Scope 1 emissions relate to on-site gas usage and emissions from Company owned and long-term lease vehicles.

Scope 2 emissions relate to on-site imported electricity usage and CO2e emissions calculated are associated to generation only and do not include Scope 3 Transmission and Distribution losses.

The Scope 3 emissions relate to grey fleet. A grey fleet vehicle is one owned and driven by an employee for business purposes. This also includes fuel use for any vehicles which have been rented short term, for an employee to travel for business purposes. We do not currently include other Scope 3 emissions including, but not limited to, those associated with purchased goods and services, the upstream emissions of the fuel and electricity we consume or employee commuting.

Where there is a Combined Heat and Power (Cogeneration) plant operated on site, the emissions reported have been incorporated and calculated from the natural gas input.

The primary source for energy consumption data is supplier consumption data, metering data with some limited estimated data. Most of the transport usage has been calculated from records of litres used. The remainder of the transport data has been taken from mileage records, some of which have been estimated where records did not exist. Estimated data makes up less than 5% of reported emissions.

The usage and emissions presented align with monthly supplier invoices and are calculated and presented for 1st April 2023 to 31st March 2024.

The emissions reporting includes all of Victoria's sites globally, this reflects the activities and financial information presented within the financial reporting. There has been no de-minimis applied and all Victoria companies with a physical presence have been included.

Energy management and carbon emissions

Continuing volatility in global energy prices has underscored the importance of our ongoing strategy to invest in sustainable, eco-friendly, and reliable energy solutions. The diverse nature of the Group allows us to achieve

this in various ways, with the most common being the installation of solar photovoltaic (PV) panels at several locations. Historically, several Group entities have benefited from this technology, and at certain sites, we sell the surplus renewable energy we produce back to the national grid during periods of low energy demand.

We recognise that, while ensuring the energy we consume is renewable wherever possible is important,

it is equally vital to reduce our overall consumption. Several of our subsidiaries procure additional energy from renewable providers, and we seek opportunities to reduce energy usage

across the Group through various projects, often initiated by closely monitoring our gas and electricity usage via sub-metering.

At our ceramic tile facilities across Europe, we continue to harness the heat generated from our spray dryers, using co-generation plants to convert this heat into electricity. This approach reduces our environmental impact and contributes to a more sustainable energy consumption model.

The ongoing transformation of our Balta acquisition has also reduced our environmental footprint. The closure of the Avelgem facility and the consolidation of our logistical activities for Rugs into a single facility in Sint-Baafs-Vijve have eliminated intercompany transportation between two sites. Further efficiency gains include replacing the turbo compressors in Sint-Baafs-Vijve with variable speed compressors from the closed Avelgem site, significantly reducing energy usage. The turbo compressors removed have been installed in the yarn extrusion plant of our Turkish facility, where their specifications better match the requirements, further reducing the electricity consumption at our Usak site. Additionally, an exercise to determine the optimum pressure in that facility's weaving and finishing departments led to the installation of separate compressors, further reducing emissions. This subsidiary has also continued to reduce emissions through targeted investments, for example

an ongoing LED lighting replacement programme.

Our carpet manufacturing operation in Newport, Wales, has benefited for several years from a nearby wind turbine providing up to 40% of our electricity needs. While this continues, we are exploring how we can go further. Feasibility studies into installing

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Environmental, Social and Governance Report

solar panels on the roof are underway, with early feedback suggesting this could provide an additional 15% of our electricity needs at this site. A new electricity supply agreement also ensures that 100% of the electricity is sourced from renewables.

Our other carpet manufacturing site in Dewsbury, West Yorkshire, has also made several improvements to enhance efficiency and reduce energy consumption and carbon emissions compared to a no-action scenario. These include upgrading the heat effectiveness of the panels used on the backing line, allowing us to lower the temperature. The factory lighting is now motion-sensitive, further reducing energy demands. Finally, a shift change has reduced the number of start/ stop occurrences on the backing line, significantly improving efficiency.

In the UK, Interfloor, one of our underlay manufacturing businesses, continues to reap the benefits of its solar panel installation, generating over 400 megawatt-hours (MWh) in this period. We have also achieved efficiencies in our waste gas treatment, resulting in an estimated saving equivalent to over 100MW of gas. These efficiencies have contributed to a reduction in energy inputs both overall and per roll produced.

This year, the Victoria Grass Group has taken steps to reduce the carbon emissions arising from the manufacturing process through the development of an innovative new polyurethane coating for its products. This method not only eliminates water usage but also requires approximately 70% less gas to produce.

In Australia, solar panel installations continue to partially power our subsidiary Dunlop Flooring. This subsidiary also optimises its supply chain by using more efficient sea routes rather than road and rail, where lead

times permit. We also continue to use our delivery trucks to pick up recyclable materials from our customers on return journeys to our facilities. This optimisation of our logistics chain reduces the total number of journeys required, thereby further reducing emissions.

Further reductions in carbon emissions are being achieved through the Group's use of electric vehicles. At Balta, we encourage employees to choose either fully electric or hybrid options for new or replacement company cars. This is complemented by the installation of 30 charging stations

at this subsidiary's Belgian locations. At the Usak site in Turkey, we have replaced five LPG forklifts with electric models and shifted our logistics model to intermodal transport, i.e. the use of multiple modes of transportation and reduced the reliance on direct road, significantly reducing the number of truck shipments.

A similar strategy at our carpet manufacturing plant in Wales has resulted in over 50% of our forklift truck fleet now being electric. Elsewhere in the UK, Interfloor has also achieved CO2 emission savings with a modernised vehicle fleet.

Logistics

The transportation of our products contributes to our environmental impact. The fuel consumption of our truck fleet, essential for logistics, poses a substantial cost and generates a significant portion of the greenhouse gas emissions produced by our Group. Addressing this aspect is crucial in our efforts to reduce our environmental footprint.

For our UK carpet operations, the distribution vehicles were already compliant with the latest Euro 6 standard, and we previously outlined that we continue to monitor available

technology solutions, such as the potential use of electric trucks. Our new distribution centre was built to accommodate this need, featuring 125kW of electric vehicle charging infrastructure and 32 charge points. Additionally, all forklift trucks within the warehouse are already exclusively battery-powered.

We've already detailed that our UK subsidiary responsible for the logistical movements of our carpets, Alliance, has now followed through on this commitment and is an early adopter of fully electric Heavy Goods Vehicles (HGVs) with additional models awaiting delivery. This change means approximately a quarter of the deliveries between our carpet manufacturing plant in Wales and our distribution centre in Worcester are zero emissions at the tailpipe. To achieve further energy savings, both with these vehicles and the rest of the fleet, we are also conducting fuel management and driver style training. We expect this training to contribute to at least a 5% efficiency gain.

In North America, our Cali subsidiary has focused on logistical improvements to enhance efficiency and reduce carbon emissions. By carefully tracking less-than-truckload (LTL) versus full truckload (FTL) freight and increasing the proportion of FTL shipments this subsidiary has seen improvements in the calendar year 2024 compared

to 2023.

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Victoria PLC Environmental, Social and Governance Report 2024

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Waste and Water Management

We have consistently maintained a conscientious approach to utilising raw materials, striving to minimise waste in our manufacturing operations and optimise resource utilisation. All businesses have a responsibility to carefully manage resources to mitigate their impact on the environment. Embracing the principle of "doing more with less" not only enables

us to achieve improved financial performance and deliver value to our customers but also generates increasing returns for our shareholders. By aligning our sustainability efforts with sound business practices, we can create a positive impact on both the environment and our stakeholders.

At our carpet manufacturing plant in Wales, we estimate that 95% of our site waste (including cardboard, paper, yarn, and other raw materials) is being managed, segregated, and recycled. Our other UK carpet manufacturer,

in West Yorkshire has focused on expanding the range of waste products that get recycled and reduced the waste created as a result of providing customers samples of our products by producing these as part of a production run rather than against a specific roll, achieving significant savings.

Processes at our newest UK distribution centre that significantly reduce our use of water, with harvested rainwater used in the toilets and for washing our trucks, continue.

One of our UK underlay manufacturers, Interfloor, recycles 100% of process water, with 90% of waste being either recycled or used as Refuse Derived Fuel (RDF).

The Victoria Grass Group has continued to make progress and has achieved ISCC PLUS certification for our use of recycled content in Schramm yarn and backing powder.

Our ceramics operation prioritises waste and water management. As an example, at our Turkish subsidiary Graniser wastewater is treated through two processes, with the internal treatment feeding the polishing section, i.e. the part of the production process where the surface of the tiles is polished to achieve a desired finish, operating on a zero- discharge principle. Treated water is used throughout the factory, with any excess shared with the local Organised Industrial Zone.

Efforts at Victoria Carpets Australia to improve waste management have continued this year. Waste yarn that might otherwise be lost is being recovered, separated, and prepared for recycling networks. This initiative significantly reduces waste, as does another project using soft wool waste in packaging and acoustic materials. The team also significantly reduced water usage through a new boiler system and process changes in the dyehouse, reducing the amount of water needed for each kilogram of yarn produced and we developed a process with a local company to recycle our waste polypropylene into products for the agricultural and landscaping industries.

Product lifecycle

To address the challenges in this area we are committed to continually evaluating our range to explore opportunities for developing products with greater circularity, i.e.-those that minimise reliance on virgin resources and are designed with end-of-life considerations in mind. This can be achieved by producing items with a diverse material composition that are easier to separate during recycling or by creating products made from a single material.

Our Balta subsidiary benefits from a 'Pureloop' installation for recycling polypropylene waste and intermediate products. All mono polypropylene material (from weaving, tufting, tape extrusion, etc.) is recycled in-house and used in our staple fibre and tape extrusion processes. Additionally, we have started recycling all waste from our Turkish extrusion plant using our Pureloop installation in Belgium and have made investments to enable the extrusion of recycled polyester yarn.

Within the UK carpet industry, there are limited options for consumers to recycle synthetic carpets. While we produce durable, high-quality products intended for long-term use, our synthetic carpets and artificial grass products consist of complex material mixes, posing recycling challenges. Although we also offer carpets made from natural fibres, consumer demand for synthetic carpets remains strong, making them the predominant choice in our production.

To combat the lack of accessibility in carpet recycling in the UK, we are committed to driving progress in this area and continue to maintain our membership of Carpet Recycling UK. This association collaborates with manufacturers, distributors, contractors, retailers, fitters and the waste sector to divert carpet waste from landfills. Through this we are working to recycle carpet into fibre- reinforced concrete and we are also exploring other opportunities to divert waste from landfill, such as converting the latex used in our carpet bonding process into fertiliser.

At the core of our underlay production is a recycling operation. Our manufacturing sites repurpose polyurethane foam waste from various industries, such as vehicle seats, soft furnishings, and mattresses, into long-

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Environmental, Social and Governance Report

lasting products for our customers. In addition to foam waste, we are exploring opportunities to incorporate other recycled components, such as carpet waste.

In the current year Interfloor has continued to expand their Renu range (98% recycled and 100% recyclable) with two additional products. This range, and all others that Interfloor offers, are covered by Environmental Product Declarations (EPDs).

At Victoria Carpets Australia, we have a range of Solution Dyed Nylon (SDN) products that utilise recycled waste.

Our Australian subsidiaries also have initiatives supporting the lifecycle of our products, including a take-back scheme to recover used underlay and recycle it into new products.

Another of our Australian subsidiaries, Dunlop, recycles approximately 100 tonnes of used underlay per year, and 100% of our product can be recycled. Additionally, their underlays are made up of 90% recycled materials, and we continue to offer a sustainable bio-based underlay using renewable source sugar cane, with a commitment to plant one tree for every ten rolls

of underlay sold. This range is complemented with biodegradable bags, and the point of sale displays for this product are entirely recyclable and contain no plastic.

Our artificial grass business, the Victoria Grass Group, focuses on developing products with longer lifespans and participates in take- back schemes in Belgium and the Netherlands, aiming to collect all the cutting waste during installation and the end-of-life product. This year through a partnership with another entity focused on recycling end-of-life artificial turf they have developed a yarn and secondary backing containing end-of-life materials, with the end product being made up of more than 40% end-of-life polymer. Further product development

is underway to allow the use of these fibres in our sports and landscape products, with the intention to launch more products during 2024.

The ceramic tile business within our company manufactures a product that is easily recyclable and can be repurposed to create new ceramic and aggregate products. Through collaborations with local suppliers and recyclers, our ceramic tile manufacturing businesses harness the potential of recycled bricks, tiles, and glass to create specific ceramic tile products. Moreover, owing to the inherent reusability of our ceramics, once they reach the end of their life cycle, they can be transformed into new tiles through re-grinding. This process eliminates the need to dispose of waste in landfills and supports our sustainability efforts.

Our ceramic tile manufacturing business in Italy continues to use a technique it developed to produce the glaze for certain tile products using the fine glass from waste TV screens. The process cleans the TV screens and recycles the glass, transforming it into a glass powder that can be mixed with other components to make the substratum and glaze for certain tiles.

We continue to push further. Our Turkish ceramics entity, Graniser, aims to adopt the cradle-to-grave method for the raw material extraction process and having established the criteria for the entire process, including up to the packaging of the final product, they will shortly be applying for formal accreditation of this process.

Chemicals management

We recognise the importance of responsible chemical management and strive to protect the natural environment while ensuring the health and safety of our colleagues. We use a range of chemicals tailored to meet the unique needs of our products and businesses and over the years we have

made significant efforts to eliminate the use of harmful chemicals from our manufacturing processes.

Our manufacturing businesses prioritise the safe and responsible handling of chemicals through Control of Substances Hazardous to Health (COSHH) Task Risk Assessments conducted for relevant production processes. These assessments provide detailed information on the chemicals used, potential hazards, and the measures implemented to mitigate any associated risks. Each chemical is assigned a risk score ranging from 'Very Low' to 'Extreme' based on

its specific application. Many of our assessments indicate a 'Low' or 'Very Low' risk level, with only a limited number categorised as 'Medium' risk.

Our businesses adhere to robust Health, Safety, and Environmental protection policies and guidelines that cover the handling of chemicals on our sites. These outline packaging, labelling, storage, and disposal requirements for the chemicals

we use, as well as the necessary Personal Protective Equipment (PPE) for our colleagues. Regular training on chemical handling and usage is provided to all relevant employees as a mandatory requirement for their roles and procedures are in place to promptly address any spills or contact incidents involving chemicals. Our sites are equipped with hand and eye wash stations, as well as specialised clean-up equipment to effectively contain and manage any spills. Additionally, designated emergency response officers are present at our sites to handle any incidents that may occur. Furthermore, our manufacturing businesses engage third-party specialists to conduct annual discharge surveys, ensuring that there are no unintentional discharges into local watercourses.

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COLLABORATING CROSS GROUP TO ACHIEVE PRODUCT CIRCULARITY

In a great example of group synergies, two of our subsidiaries, Balta and the Victoria Grass Group, have collaborated to enhance the circularity of our products.

Our Balta subsidiary is now producing masterbatch, the mixture used to colour and modify the properties of the polymer fibres used in our carpets, at our Sint-Baafs-Vijve facility for the Victoria Grass Group, who are in turn using it in the extrusion process of our artificial grass.

Surplus from the Grass Group's tufting production is then returned to Balta, who are then recycling it in their Pureloop system, creating PP and PE granulates. These granulates are then returned and used in the production of new artificial grass by the Victoria Grass Group.

Embracing product circularity in this way reduces waste and lowers the demand for virgin materials helping to minimise the carbon footprint associated with our manufacturing. This sustainable approach helps to create a closed-loop system where products and materials are repurposed and helps us to mitigate our environmental impact.

Where applicable, our subsidiaries also check the EU's REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) statements of our supplier base to ensure product compliance.

Examples of how we appropriately manage chemicals are found throughout the group. At Victoria Carpets Australia we had already ceased the application of chemical- based topical treatments on our Solution Dyed Nylon (SDN) carpets. We are now going further and are working with the relevant industry body to achieve a higher rating within the Environmental Classification Scheme (ECS).

SOCIAL

Victoria aims to create an excellent workplace environment that positively impacts local communities.

Attracting, Developing, and Retaining Talent

Our continued success hinges on our capacity to attract, retain, and nurture top talent throughout our organisation, providing them with the necessary resources to advance their careers within Victoria. We prioritise fostering a diverse and inclusive workforce, ensuring a multitude of career pathways are available. Our commitment to employee development can be seen across the group and

is illustrated through structured training programmes offered internally, complemented by the recruitment of exceptional individuals from outside our organisation.

To cultivate fresh perspectives and drive innovative product development, it is imperative that we invest in emerging talent and explore novel approaches to work.

Throughout the year, we have made several improvements to enhance employee well-being. At Balta, the modernisation programme detailed in the last report has continued with the renovation of our Sint-Baafs-Vijve head offices.

Our ongoing commitment to developing talent at our manufacturing plant in Wales will see the development of robust succession plans during 2024 and at our plant in West Yorkshire we have been running specific training courses for our supervisors and managers, with further training available to the wider workforce where there is a desire from the employee.

Our Australian subsidiary Dunlop is proud to partner with a non-profit organisation, The Sacred Heart Mission, providing opportunities for staff to volunteer in support of their mission to feed the homeless and disadvantaged.

Our UK carpet logistics subsidiary, Alliance, has run a pilot programme for apprenticeships and has supported school students looking to gain work experience.

Employee diversity and inclusion

Victoria is dedicated to upholding the principles of equality and fairness in employment opportunities. We strive to cultivate a diverse workforce and foster an inclusive environment across our entire organisation. Our goal is to create an atmosphere where every individual can thrive, realise their potential, and actively contribute to our business objectives, irrespective of their age, gender, ethnicity, or background.

To support our commitment to diversity and inclusion, we have established policies that outline our approach and provide guidelines for promoting equality. Additionally, wherever

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possible, we offer family-friendly working practices that accommodate the needs of our employees and periodically review gender pay gaps within our various businesses before developing strategies and initiatives to address those gaps.

Ultimately, our aim is to foster a culture where our employees feel empowered to bring their unique perspectives, experiences, and backgrounds to their workplace. By embracing diversity, we can collectively achieve exceptional performance and drive our growth as an organisation.

Health, safety, and well-being

The well-being and safety of our workforce lies at the core of our Group's culture. We are committed not only to preventing injuries and accidents among our employees but also to providing them with the necessary support to maintain their physical and mental well-being, while promoting a healthy work-life balance.

We operate with a "Safety First" mindset, which aims to significantly improve our performance in Lost Time Incidents (LTI) and Reporting of Injuries, Diseases, and Dangerous Occurrences Regulations (RIDDOR). We actively encourage all colleagues to report any incidents or near misses, as this enables us to drive further enhancements in workplace safety.

Across our Group, major manufacturing sites adhere to ISO accreditation

and uphold the highest standards of health and safety. Each major site is supported by a dedicated Safety Manager who oversees the implementation of safety protocols. We actively involve our employees in the development of risk assessments for our operations, and through process

improvements, increased training and development initiatives, and strong management focus, we seek to consistently achieve advancements in colleague safety within the workplace.

While a limited number of hazardous substances are utilised in our manufacturing processes, we have stringent procedures in place to govern their transportation, storage, and careful usage. The Group continues to work on reducing the consumption of these substances and exploring safer alternatives, as mentioned in the Chemicals Management section of this report.

Our employees are the invaluable foundation of our organisation, and we continuously seek ways to support them in their work at Victoria. We recognise and appreciate their contributions not only through fair compensation but also by prioritising their health and well-being. Examples of this commitment can be found throughout the business, such as walk-around audits and planned task observations, as well as regular local briefings to ensure our commitment to health and safety is paramount.

Specific examples include the continued safety campaign at Balta where we have again seen a reduction in the accident frequency. Safety training is delivered through a variety of methods, including practical training, external service providers, and innovative safety awareness training for shift leaders using virtual reality technology. Initiatives such as these contributed to 335 days without an accident at our Usak facility, setting a new record for the team there.

At our carpet manufacturing plant in Wales, the Health & Safety team have reviewed and ensured that

Standard Operating Procedures (SOPs) are implemented in all areas. This subsidiary has complemented this with an external occupational health company carrying out health surveillance throughout the business to assess employee needs and requirements and made healthcare plans available for the employees.

At our manufacturing facility in West Yorkshire, monthly Health & Safety meetings take place with a committee of representatives. Additionally, 'themes of the month' are used to focus employee attention on different safety aspects throughout the year. This location also partnered with another of our subsidiaries, Westex, to put on a free pantomime for the local community, open to all employees and their families. Like other sites, it has refurbished and upgraded some of the common areas used by employees, such as the canteen.

At Interfloor, toolbox talks have been rolled out covering 28 topics, manual handling training has been conducted with over 200 employees, and specialist chemical safety training has been provided to over 130 employees.

Our Australian entities employ similar practices, such as safety committees and 'toolbox talks'. Victoria Carpets Australia continues to partner with the Black Dog Institute, a foundation dedicated to developing strategies and programmes for people and their families dealing with mental health issues, raising funds with the help of our employees. Additionally, the Employee Assistance Programme, which provides confidential assistance to employees and their families across a range of personal and domestic situations, continues to operate.

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Victoria PLC Environmental, Social and Governance Report 2024

Stock Code: VCP