Protecting the environment is a growing challenge and a priority for our company. Beyond initiatives deployed at the subsidiary level, our ambition lies in our proactive efforts to reduce the environmental footprint of all our activities and products.

 GOVERNANCE AND GROUP ENVIRONMENTAL POLICY

At the organizational level, our global EHS department, attached to the new Group Quality and Compliance department, demonstrates the Group’s desire to accelerate its approach to reducing its environmental footprint. One of these initiatives involves reframing scope and reporting methods, an indispensable precondition for gaining a global overview of exposure to environmental damage risks at the Group level. We have also committed to developing a training and awareness segment dedicated to environmental themes for both existing employees and for the new hires. External stakeholders were also involved in the effort, with the inclusion of environmental clauses in supplier assessment questionnaires. These initiatives, in conjunction with the rollout of audits throughout an expanded range of subsidiaries (Mexico, Taiwan, United States, Australia, New Zealand, Uruguay, Vietnam and Chile), demonstrate our desire for consistency in the deployment of a Group-driven strategy.

In the context of optimization of the resources we employ, we seek to control the consumption of energy, water and materials used in our manufacturing processes.

OUR KEY OBJECTIVES

Reduce energy consumption by 5% by 2025. Control water intake. Reduce the overall share of materials, including all packaging placed on the market.

OUR ACTION PLANS

Energy

For several years, we have been working to reduce energy consumption by carrying out equipment replacement actions for better efficiency, thermal insulation and air conditioning optimization. We have also established consumption indicators that are as close as possible to end users for better control of energy expenditures. At all of our industrial sites around the world, we strive to address energy consumption by using the Best available techniques (BATs) applicable to our activity, whether this is for choosing new equipment or through ongoing monitoring.

Examples of achievements in 2023.

France
In addition to the work carried out in 2021 and 2022 on all air conditioning and heating systems at the administrative offices for France industrial management and the roof insulation work, we also invested in a new, more energy-efficient furnace in 2023.

Vietnam
In 2023, an enhanced preventive maintenance plan was initiated for all air conditioning systems and energy-intensive equipment (pumps and engines in particular).

Mexico
In 2023, Mexico led a project to evaluate renewable energy production facility options.

South Africa
In 2023, our industrial site in South Africa fully exploited its new solar renewable energy production facilities, bringing the share of renewable energy versus its total electricity consumption to 30%. 

Reducing the energy intensity of our activities and our products is clearly a competitiveness lever, placing Virbac on a virtuous path, which will subsequently help reduce our overall CO2 emissions. Thus, at our sites in France (which represent more than 50% of the Group’s production), gas consumption decreased by 13% compared to 2022, thanks in particular to the replacement of a boiler with a modulating burner and a boiler stack economizer.

Water

We are also striving to lower water consumption at equivalent activity volumes by setting up recycling or production facilities for various BAT-compliant grades of water. The reduction in water consumption intensity at the French sites (which account for more than 50% of the Group’s production) reached 30% over the same period.

We integrate the environmental context of the areas in which we operate into our analyses. With the exception of the South African site, which is located in a water stress area according to the FAO (Food and agriculture organization) and the WRF (Water risk filter) criteria, no other Group production site is located in a water stress area identified as such.

France
In 2023, France experienced significant water stress. By applying government guidelines and stopping intramammary range production activities at Carros, we were able to stop the removal of well water, representing 30,000 m3 per year. 

South Africa
In 2023, our industrial site in South Africa carried out a preventive maintenance campaign on all its water networks, leading to the treatment of a large number of leaks and the reduction of consumption by 23%.

Raw materials and packaging

Again with a view to the sustainable use of resources, we are committed to fine-tuning our consumption of active ingredients, excipients and packaging items as much as possible in order to avoid product wastage or packaging proliferation.

With the help of our strategic suppliers, we have also given a new impetus to innovation that can reduce wrapping and packaging. This requires optimized supply management to limit warehousing and internal transfers. We are also progressing on optimizing flows and the speed of shipments. Finally, we launched a project to minimize waste at all stages of the industrial process.

Primary packaging that comes in contact with medicines is subject to strict pharmaceutical industry quality standards that limit the use of materials originating from recycling channels. However, a cross-functional think tank was put in place at the end of 2021 with the first concrete action being to take into account these concepts, in particular that of recyclability, as a criterion of choice in all current and future projects. 

For companion animal products that do not require a Marketing authorization (MA), we integrate eco-design principles as early in the creation process as possible. These same principles are implemented for secondary or tertiary packaging, from the research and development stage, in partnership with our suppliers.

In 2023, this mobilization allowed us to:

• launch several new products in Europe and the United States with recyclable and recycled plastic packaging for a hygiene product, among others; 
• launch a new food supplement in more than 28 countries (Europe and Asia), which incorporates ingredients from a sustainable culture (Krill meal with MSC label) and is presented in recyclable packaging, incorporating 25% recycled material.

Our other actions for the year focused on preparatory work aimed at:

• strengthening the presence of natural ingredients in our products for companion animals;
• raising awareness of the biodegradability of our hygiene and treatment shampoos;
• increasing the proportion of recycled or recyclable materials in the packaging of our products for companion animals.

OUR RESULTS

Performance indicators	2021	2022	2023
Gas consumed (MWh)	30,437	30,071	27,698
Electricity consumed (MWh)	44,732	53,819	51,329
Energy intensity	538	528	459
Water sampled by source (m3)	226,323	313,840	264,061
Volume of packaging released to market (in metric tons)	4,769	4,832	4,052

^{Energy intensity is the ratio between energy consumption (gas and electricity) and the value added in thousands of euros at the Group level (direct labor costs + indirect production costs).}

In 2023, our gas consumption was down (by 8%) compared to 2022, as was our electricity consumption (by 5%). Note that the 2022 electricity value has been adjusted to take into account self-consumed renewable energy (former value: 53,175 MWh), and is thus comparable to consumption in 2023.

Compared to activity, total energy consumption decreased by 13% (energy intensity factor). Like energy, water consumption at the Group level is down by 16%.

As part of our veterinary medicine manufacturing business, we use substances that present health, fire and/or explosion, emission and discharge risks during the various phases of development and marketing, from R&D and manufacturing to storage and shipping.

To limit these risks, which could cause harm to people, property and the environment, we comply with the safety measures prescribed by the laws and regulations in force, implement current Good manufacturing practices and Good laboratory practices and provide training to our employees. Our manufacturing sites and research and development facilities are also regularly inspected by regulatory authorities.

Due to the nature of our pharmaceutical manufacturing activity (especially confining technologies), we do not generate any visual, noise or olfactory pollution. Therefore, we are focusing on the real impacts of our activity, atmospheric emissions, effluents or hazardous waste resulting from our activities or products by increasingly investing in environmental compliance: taking into account EHS impacts in the management of industrial projects, improvements in the environmental performance of existing facilities, etc.

Furthermore, the Group’s environmental principles are adapted to countries according to different local regulations. Here again, the objective is to identify good practices at the subsidiary level to be consolidated within the Group context.

OUR KEY OBJECTIVES

Limit the volume of water discharged and its COD (Chemical oxygen demand) content. Reduce the total amount of waste generated by 5% by 2025.

OUR ACTION PLANS

Effluents

For effluents as well as other environmental releases, our goal is to facilitate across the Group the consolidation of the various local initiatives carried out locally and subject to specific regulatory frameworks, in particular on the optimization of the frequency at which our facilities are cleaned. In this sense, our vigilance translates into conservative guidelines. For example, many sites must recover and treat a large portion of manufacturing water discharges in accordance with related standards for hazardous waste. 

At the Carros site in France, following the work carried out in recent years on the effluent treatment plant, we have invested in a new system for regulating the pH of these effluents with CO₂ instead of acid, as well as in an effluent pretreatment system to reduce COD.

Hazardous waste

In addition to the constant search to control the volumes generated and improve collection for maximum treatment and recycling, we ensure traceability of all our hazardous waste up to the point of disposal: soiled packaging; laboratory, production, medicinal or infectious wastes; and chemical effluents (mostly incinerated and therefore thermally treated or recycled for solvent recovery).

Controlling waste volumes also begins at the research and development stage by considering treatment application methods so as to limit wastage and residues that could harm the environment (targeting/optimizing sprays, for example).

It should be noted that at the Carros site in France, we have signed a new hazardous waste management contract with a target of 80% recovery.

OUR RESULTS

Performance indicators	2021	2022	2023
COD (metric tons)	113	100	86
Volume of hazardous industrial waste (metric tons)	2,153	2,118	1,922
Volume of ordinary industrial waste (metric tons)	2,646	3,262	2,719
Intensity of ordinary and hazardous industrial waste	34	34	27

^{The intensity of industrial waste is the ratio between the waste generated (ordinary and hazardous) and the added value in thousands of euros at the Group level (direct labor costs + indirect production costs).}

The sharp decreases at the highest COD-generating sites, Carros in France and Guadalajara in Mexico, account for the decrease by 14%. This is due in part to the installation of a new water treatment plant at the historic Carros site in France.

In 2023, the total amount of waste generated decreases significantly by 9% for hazardous waste and by 17% for non-hazardous waste. Compared to activity, the decrease is even sharper, with a drop of 20%. 

The risks related to the effects of climate change encouraged us to contribute to the reduction in greenhouse gas emissions. In our company, the direct and indirect emissions of greenhouse gases (scopes 1 and 2, as defined in the greenhouse gas (GHG) protocol represent emissions linked to the consumption of various forms of energy (in this case, gas and electricity) at all industrial sites worldwide, as well as the greenhouse gas emissions related to refrigerants. Other indirect greenhouse gas emissions (scope 3, downstream) reflect emissions linked to the shipping of finished products from all sites to the end customer.

In 2023, we initiated a project to complete our carbon footprint assessment on indirect emissions (scope 3) using the GHG protocol method, and performed an initial data consolidation for 2022. The approach will be continued in 2024 on the 2023 annual data in order to refine the results and thus prepare the carbon footprint assessment for 2024. These elements will help structure the Group’s decarbonization trajectory.

OUR KEY OBJECTIVES

Reduce scopes 1 and 2 greenhouse gas emissions by 10% by 2025.

OUR ACTION PLANS

Scopes 1 & 2 greenhouse gas (GHG) emissions

Actions on direct and indirect emissions (industrial site consumption and GHGs related to refrigerant fluids):

• optimization of energy consumption: thermal insulation of installations, the energy recovery system on the wastewater treatment station for biological production units (Carros), solar boiler for industrial hot water (Mexico), generalization of plans to replace lighting with LED at almost all industrial sites;
• concerning emissions related to refrigerant gases: reinforcement of maintenance plans at industrial sites in Australia and Mexico, as well as a program to replace the most polluting fluids with fluids with low CO2 emissions.

Scope 3 greenhouse gas emissions

Actions on emissions resulting from the transport of finished products:

• the new calculation method implemented since 2018 has enabled us to increase the reliability of subsidiary data based on emissions coefficients given by the French environment and energy management agency (see www.bilans-ges.ademe.fr);
• shipping of finished products: destination grouping and limitation of air transport;
• transporting employees: inter-site shuttles, external shuttles, incentive policies to limit the carbon impact of company vehicles, carpooling, etc.

In addition to these initiatives, the Guadalajara site in Mexico continued its reforestation campaign in 2023, by more than 50 trees, thanks to the involvement of employees and their families. A similar initiative is underway in Vietnam.

OUR RESULTS

Performance indicators	2021	2022	2023
GHG scope 1 & 2 (metric tons of CO2 equivalent)	20,814	23,727	22,630
GHG scope 3 downstream (metric tons of CO2 equivalent)	11,093	10,228	8,303
GHG intensity scope 1, 2 & 3	229	215	181

^{The emission factors used for calculating emissions of the various scopes are from the French site of the French environment and energy management agency (Ademe) at https://bilans-ges.ademe.fr. The intensity of greenhouse gases is the ratio between the GHGs emitted (scopes 1, 2 and 3) and the added value in thousands of euros at the Group level (direct labor costs + indirect production costs).}

Our scope 1 and 2 greenhouse gas emissions fell by 5% in 2023 compared to 2022, and by 12% with respect to operations, for an intensity of 132, far below our target of 164. 

Our scope 3 emissions (downstream transport) decreased substantially (by 19%). This sharp decrease is mainly due to the reduction in air transport from sites in France. It should be noted that the 2022 values of the scope 3 GHGs were the subject of an error correction due to double counting of the Carros site data in 2022.

EUROPEAN GREEN TAXONOMY - ELIGIBILITY/ALIGNMENT

As a result of the sustainable finance action plan launched in 2018 by the European commission, European regulation 2020/852 of June 18, 2020, establishes a framework to promote “sustainable” investments in the European Union, called the “European green taxonomy.” In accordance with this regulation, starting with the fiscal year ended December 31, 2021, we are required to release the share of our taxonomy-eligible activity – revenue, capital expenditures (Capex) and operational expenditures (Opex) – on the first two environmental objectives related to climate change. 

For financial statements for the year ending December 31, 2022, the requirement has been extended and now calls for an analysis of the alignment for the climate objectives for the three financial indicators (revenue, Capex and Opex). To be considered sustainable, an activity must contribute substantially to one of the six environmental objectives listed below, not hinder the other five according to the Do no significant harm (DNSH) principle and comply with minimum safeguards. The taxonomy regulation is supplemented by two delegated acts: the first published in April 2021 specifying the technical environmental criteria for the first two objectives, the second published in July 2021 specifying the expected taxonomy reporting methods. 

For the accounts closed on December 31, 2023, the obligation was extended to include an analysis of the eligibility of the four complementary objectives: transition to a circular economy, prevention and reduction of pollution, sustainable use and protection of aquatic and marine resources, and protection and restoration of biodiversity and ecosystems.

The taxonomy’s six environmental objectives are:

• climate change mitigation (2021 eligibility/2022 alignment);
• climate change adaptation (2021 eligibility/2022 alignment);
• transition to a circular economy (2023 eligibility);
• pollution prevention and reduction (2023 eligibility);
• sustainable use and protection of aquatic and marine resources (2023 eligibility);
• biodiversity and ecosystem protection and restoration (2023 eligibility).

The eligibility analysis of the four additional objectives was conducted in accordance with the taxonomy regulation. It follows from this analysis that the Group is mainly concerned with the objective of preventing and reducing pollution, and as such must declare its share of revenue generated and Capex and Opex incurred in its medicine production.

The eligibility and alignment assessment was conducted on the basis of a detailed analysis of the Group’s activities, based on the processes, existing reporting systems and assumptions made with management and business experts in France and in our main subsidiaries. The following departments contributed to the reflection:

• Group Consolidation department for the financial data;
• Financial Affairs department of the subsidiaries in scope;
• facilities management, industrial management for buildings and maintenance;
• fleet managers and Group Regulatory department;
• Legal, Insurance and EHS departments for the assessment of climate DNSH;
• Compliance, HR, Legal and Tax departments for the analysis of minimum safeguards;
• CSR department.

The whole consists of a methodology whose significant elements – assumptions, interpretations, clarifications and methodological limitations – are described below. The Group will revise this method and the figures resulting in light of regulatory developments, in particular with the implementation of the Corporate sustainability reporting directive from 2024 onwards.

It should be noted that this work was carried out with the support of an external board, which assisted the Group in appropriating the concepts to be implemented, facilitating training/information sessions, and lastly, analyzing the criteria required to justify the alignment of activities.

DNSH criteria
All Do no significant harm criteria were assessed at the Virbac group level and locally by the subsidiaries. The Group did not evaluate the Do no significant harm criteria at the value chain level.

The DNSHs (circular economy, pollution, aquatic and marine resources, biodiversity and climate) were studied activity by activity to assess their alignment.

Climate change adaptation

The Group conducted a preliminary analysis of the exposure and vulnerability of its activities to physical climate risks, as defined in section II of appendix A of the European regulation. This analysis was conducted by management on the basis of the reports of our insurers on the prevention of natural and climatic risks at our industrial sites, and on the basis of internal knowledge at our main sites. In 2023, the Group enhanced this approach with simulations of global warming scenarios, based on the IPCC’s assumptions, which made it possible to map the risks identified and their degree of importance for our industrial sites worldwide. On this basis, we are now working to complete our action plans to limit the potential impact of these risks.

Minimum safeguards
In accordance with the guiding principles for minimum safeguards described in article 4 of the taxonomy regulation, economic activities that substantially contribute to one of the climate objectives and meet the relevant generic and specific DNSHs must also demonstrate compliance with the minimum safeguards. Compliance with the minimum safeguards was assessed at the Virbac group level only. In all our activities, we take into account the OECD guidelines for multinational enterprises and the UN guiding principles on business and human rights, including the principles and rights set out in the ILO declaration on fundamental principles and rights at work and the International bill of human rights.

The Group used the report on the minimum safeguards of the platform on sustainable finance to ensure compliance with the principles set forth in the preamble to the statement of non-financial performance, in the paragraph entitled “A corporate responsibility policy based on a strong ethical commitment,” starting on page 16, and in particular the body of measures put in place by the Group:

• the Virbac code of conduct and business partner charter, on page 17;
• the Human rights, in the Respect for human rights paragraph, on page 19;
• prevention of corruption, in the Prevention of corruption and influence peddling paragraph, on pages 17-18;
• responsible taxation, in the Responsible tax policy paragraph, page 20;
• fair competition, on page 17.

Taxonomy revenue

As defined by the regulation, an activity is deemed taxonomy-eligible if it is on the list of sectors covered by the climate change mitigation and adaptation objectives. The selection of covered sectors is based on two areas of consideration: sectors with high emission rates and sectors where economic activities have the potential to allow substantial reductions in GHG emissions in other sectors.

As a pharmaceutical group, Virbac does not belong to sectors with a high carbon impact, such as the energy, construction and transport sectors. Furthermore, as the products offered by the Group do not contribute to reducing the emissions of other sectors, the Group does not have activities that are taxonomy-eligible under the two climate objectives. 

In 2023, the analysis conducted on the four complementary objectives (transition to a circular economy, prevention and reduction of pollution, sustainable use and protection of aquatic and marine resources, and protection and restoration of biodiversity and ecosystems) leads to the conclusion that Virbac, like the pharmaceutical sector, is directly concerned with the objective of preventing and reducing pollution. 

The statistical classification of economic activity (NACE) codes that concern Virbac are as follows: C21.1 Manufacture of basic pharmaceutical products and C21.2 Manufacture of pharmaceutical preparations.

For this reason, Virbac declares the share of its revenue generated on its active ingredient manufacturing (PPC1.1 activity), as well as its medicine manufacturing (PPC 1.2 activity). To do this, management reviewed its entire net consolidated revenue and used as a basis the European definition of medicines as available on the European website: https://www.ema.europa.eu/en/glossary/medicinal-product.

In this case, the eligible revenue includes all manufacturing of medicines or related products. The consolidated net revenue of the animal nutrition, diagnostics, and hygiene ranges, and non-medicine care ranges is deemed ineligible. With regard to the scope, it should be noted that only the manufacturing carried out at our own industrial sites, or through subcontracting, was selected to assess the eligible share. Trade products (purchase/resale) were considered ineligible regardless of the nature of the product.

The Group will review this methodology and the resulting figures based on regulatory developments and FAQs from the first fiscal year of implementation.

For the 2023 financial year, the consolidated net revenue eligible for the pollution prevention and reduction objective amounts to €701 million, that is, 56% of the Group’s consolidated revenue.

	Proportion of turnover / Total turnover
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	0%	0%
CCA	0%	0%
WTR	NA	0%
CE	NA	0%
PPC	NA	56%
BIO	NA	0%

Capex taxonomy

As defined by article 8 (2) (b) of regulation (EU) 2020/852, the denominator of the Capex taxonomy corresponds to the acquisitions of tangible assets (IAS 16) and intangible assets (IAS 38), the acquisition of rights of use (in accordance with IFRS 16). In addition, assets acquired through business combinations (IFRS 3), excluding goodwill, are included in the lines of the table below, with the exception of Globion India, which entered the consolidation scope in the last quarter of 2023. It should be noted that the Virbac group has no investment processed according to Investment Property (IAS 40) and Agriculture (IAS 41) standards.

Eligibility analysis

Capex flows are derived from consolidated accounting data. They were analyzed transversally by the Finance teams of each subsidiary and local experts. The flows related to investments that are individually eligible under CCM 6.5, CCM 7.2 - 7.7 and WTR 1.1 activities are thus identified by the local teams on the basis of the guidelines communicated by the Group in accordance with the taxonomy regulation.
 
According to the updated taxonomy regulation, the Group extended its analysis to Capex category A (related to an eligible activity) under PPC 1.1 and PPC 1.2 activity, which made it possible to identify Capex related to the pharmaceutical active ingredient (PPC 1.1) and medicinal product (PPC 1.2) manufacturing activities.

A comprehensiveness analysis was conducted in the form of workshops to ensure that no other activities related to climate and environmental objectives were omitted within the scope of analysis.

Eligible Capex is mainly found in the list of the following Capex (the reference in parentheses corresponds to the classification by activity as defined by the taxonomy):

• transport by motorcycles, private cars and light utility vehicles (CCM/CCA 6.5);
• renovation of existing buildings (CCM/CCA 7.2, CE 3.2);
• installation, maintenance and repair of energy efficiency equipment (CCM/CCA 7.3);
• installation, maintenance and repair of charging stations for electric vehicles in buildings and parking spaces attached to buildings (CCM/CCA 7.4);
• installation, maintenance and repair of instruments and devices for the measurement, regulation and control of the energy performance of buildings (CCM/CCA 7.5);
• installation, maintenance and repair of renewable energy technologies (CCM/CCA 7.6);
• acquisition and ownership of buildings (CCM/CCA 7.7);
• data-based solutions for reducing GHG emissions (CCM/CCA 8.2);
• manufacture of pharmaceutical active ingredients (API) or active substances (PPC 1.1);
• manufacture of medicines (PPC 1.2);
• manufacturing, installation and associated services for leak-control technologies to reduce and prevent leaks in water supply systems (WTR 1.1).

In 2023, it should be noted that no Capex was identified for activities 7.4, 7.5, 7.6 and 8.2.

Eligibility analysis

An alignment analysis was conducted for both climate objectives. Capex flows related to CCM 6.5, CCM 7.2, CCM 7.3 and CCM 7.7 activities were analyzed with regard to the technical criteria for substantial contribution and DNSH by each subsidiary. The application of the criteria is intended to comply with the text of the taxonomy. However, it should be specified that Virbac management was required to interpret the texts as described below.

Substantial contribution criteria

• Climate change mitigation (CCM) 7.7: Virbac refers to the DEEPKI index for the top 15% energy performance of buildings on a national scale. 
• Climate change adaptation (CCA): climate risk analysis and adaptation roadmap are underway. Virbac believes that the substantial contribution criterion for climate change adaptation activities has not been met to date: “The economic activity has implemented physical and non-physical solutions substantially reducing the most significant physical climate risks that are important for this activity.” Therefore, not all Capex flows related to eligible investments for climate change adaptation activities are considered aligned.

Generic DNSH
Appendix A DNSH Climate change adaptation: an exposure analysis was conducted in collaboration with the Group’s risk management. Construction of a climatic risk analysis and an adaptation roadmap are underway to meet taxonomy reporting and CSRD requirements. Virbac believes that this analysis will be finalized by 2025. CCM activities are therefore considered aligned if other criteria are met, based on the principle that the adaptation DNSH (appendix A) will be satisfied by 2025.

Specific DNSH
Climate change mitigation - 6.5 DNSH pollution: the regulatory evolution affecting DNSH pollution for activity 6.5 requires Virbac to collect information (in this case, tire labels) too complex given the resources available to date in subsidiaries. As a result, it was agreed that no vehicle met the requirements of this DNSH, and therefore, no activity is aligned in 6.5.

Minimum safeguards
Virbac’s human rights policy will be made available by 2025. This charter will make it possible to cover the expectations of minimum human rights safeguards of the reporting taxonomy and will contribute to the preparation for compliance with the Corporate sustainability due diligence directive (CSDDD). 

In 2023, the Capex taxonomy denominator totaled €73.7 million.

In the 2023 financial year, total eligible Capex is up compared to 2022 due to our sustained investment policy. It amounts to €19.4 million, that is, 26% of the total. They mainly concern vehicle rentals (€2.2 million), renovations and acquisitions of buildings (€5.7 million), and Capex related to our medicine production activities (€11.4 million).

The aligned Capex amounts to €0.002 million, that is, 0.003% of the total Capex. They mainly concern equipment that helps reduce our energy consumption.

The analysis was carried out over the entire scope from the consolidated accounting data, for each asset category, thus avoiding the risks of double counting.

	Proportion of CapEx / Total CapEx
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	0,003%	12,7%
CCA	0%	12,7%
WTR	NA	0,1%
CE	NA	9,2%
PPC	NA	15,6%
BIO	NA	0%

Opex taxonomy

In 2023, the amount of the Opex denominator as defined by the taxonomy regulation amounts to €59.1 million, that is, 5.6% of the Group’s current operating expenses (that is, less than 10% of total Group operating expenses). In view of this insignificant amount, which relates to expenditures that do not constitute the core of our activity, the work carried out concludes that this indicator is not material for Virbac. In accordance with the regulation, the analysis of Opex eligibility has therefore not been carried out.

	Proportion of OpEx / Total OpEx
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	0%	0%
CCA	0%	0%
WTR	NA	0%
CE	NA	0%
PPC	NA	0%
BIO	NA	0%

Annex III - Model 1 - Nuclear energy and fossil gas activities

Activities related to nuclear energy
1.	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3.	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	NO
Fossil gas activities
4.	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	NO
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	NO
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	NO

^{Methodological note
This assessment was conducted on the basis of a detailed analysis of the Group’s activities, based on the processes, existing reporting systems and assumptions made with management. The whole consists of a methodology whose significant elements (assumptions, interpretations, clarifications and methodological limitations) are described above.}

^{Capex
In accordance with the definition in the appendix to article 8 of the delegated act, the Group’s eligible share of Capex within the meaning of the taxonomy is calculated by determining the ratio of the following financial aggregates:
– for the denominator: the sum of the increases in the gross value of intangible and tangible assets on the balance sheet and increases in the gross value of the right of use of long-term rental assets recognized under IFRS 16 (see notes A2, A4 and A5 in the consolidated accounts, on pages 178, 182 and 183 of the annual report). The analysis was carried out over the entire scope from the consolidated accounting data, for each asset category, thus avoiding the risks of double counting;
– for the numerator: the sum of Capex identified in the denominator as being linked to taxonomy-eligible activities according to the list described above.}

^{Opex
The value of Opex (operating expenditure) in the denominator was calculated in accordance with the definition in the appendix to article 8 of the delegated act. The total costs of external research and development studies, building renovation, short-term rental and maintenance and repair of the Group’s assets represented less than 10% of the total of the Group’s Opex as of December 31, 2023, which was not considered representative of its business model.}