Brunello Cucinelli S p A : Consolidated Non-Financial Disclosure 2023

2023 CONSOLIDATED NON-FINANCIAL STATEMENT



CONTENTS

I

2023 CONSOLIDATED NON-FINANCIAL STATEMENT



II

2023 CONSOLIDATED NON-FINANCIAL STATEMENT



III

2023 CONSOLIDATED NON-FINANCIAL STATEMENT Letter from the Chairman

LETTER FROM THE CHAIRMAN

We report the heartfelt words that Chairman Brunello Cucinelli published at the end of November as a reflection on artificial intelligence.

Fruitful and harmonious: artificial intelligence by our side

For almost a year now, many have been experimenting with the best-known tools of generative artificial intel- ligence. In the beginning, perhaps, it was more out of curiosity than anything else; then, in the light of the first results, the imagination began to fly, in search of the most suitable use in private life and work.

Nowadays, time and again we receive e-mails written in a very refined, polished manner, from people, partners, or contacts who for years had written to us very simple, sometimes straightforward, and not always memorable messages, without any charming words. These recent letters, however, read artificial, untrue, and we can tell that they have not been written by human hand and soul, but rather by artificial intelligence. And disappointment arises out of those apparently so human comments, thanks, compliments and statements that had initially opened our hearts and brought us spiritually closer to the sender: it is not our friend's or colleague's hand that has written such winged and moving words, but that of a technological product, generated by a very rich linguistic model, which is very powerful and extraordinary, but emotionless and unaware of why and to whom it is writing.

To guess what is happening and what may happen is not so easy, and to refrain from hasty judgement is perhaps unrealistic. What we do know is that we believe in human inventiveness and in the innovations that have accompanied the evolution of our societies. However, as is always the case when we are faced with such disruptive inventions that could potentially change the way human relationships are born, established and pursued, we start to reflect on what is more or less right to do, that is, how to use such innovations in line with our features of social, creative and free human beings, of people who could never conceive of replacing human beings with machines.

Generative artificial intelligence is a contemporary invention that most likely has a period of great development and deployment ahead of it. As in other areas of technology, we will find ourselves using it more and more frequently in carrying out our daily business, perhaps making repetitive tasks less burdensome and using the time saved for what is closest to our ancient humanity, namely creativity, fun, and - why not? - that little bit of madness that comes from our dreams.

It is a fact that generative artificial intelligence makes it easier to process, summarise and analyse complex or extensive data, and that it makes their understanding easier, thus better directing our future actions. We will be able to translate, correct, receive suggestions and even complete charts, writings, work. It will be very useful for drafting formal communications, business letters, administrative comments, statistical analyses, and the kind of communications that we might call "not driven by sentiment". However, it is difficult to think that a tool like this, a sort of robot that we will never see crying or moved before a sunset, a personal assistant always available and capable, can replace us for what comes from our heart: it is feeling, emotion, intimacy, friendship that guides our pen.

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2023 CONSOLIDATED NON-FINANCIAL STATEMENT Letter from the Chairman

Balance is everything. The frieze of the Apollo temple at Delphi reads: "Nothing in excess". It is one of the most extraordinary ethical virtues of the great people that were the ancient Greeks. And Hegel thought that quantity determines quality, as if to say that when we go beyond the harmony of things, their very useful nature changes: if we know how to use artificial intelligence with the balance it deserves, we will have unimaginable benefits, but we should not overdo it.

I am reminded of language, for example. According to a research by the distinguished linguist Tullio De Mauro, in 1976 grammar school children had a vocabulary of 1,500 words; according to the same survey, repeated twenty years later, that vocabulary had dwindled to 640, and today, perhaps, when thinking of mobile phones and short messages, it has decreased even further. And what might happen if we entrust AI with the task of choosing words? Perhaps, with a weakened ability to generate words, the act of thinking itself might suffer, a cornerstone of hu- manity.

Going back to the topic, when drafting a letter using AI, it would appear perhaps amiable to add something like "written together with artificial intelligence", some sort of elegant and sincere statement showing respect for our recipients and the ethics of our actions, a humane way of giving due value to our work and thought. One of our writings could, for example, end like this:

"... May Creation always light our path.

Yours,

Brunello

Written together with AI"

Brunello Cucinelli

Chairman of the Board of Directors

V

2023 CONSOLIDATED NON-FINANCIAL STATEMENT Foreword

FOREWORD

This document is the seventh edition of the Consolidated Non-Financial Statement 1 (hereinafter also "NFS") of the company Brunello Cucinelli S.p.A. (hereinafter also "Company", "Issuer", "Business", "Casa di Moda").

The NFS is drawn up in accordance with the provisions of Articles 3 and 4 of Italian Legislative Decree no. 254/2016 (hereinafter "Decree") implementing Directive 2014/95/EU (so-called "Barnier Directive"), as amend- ed, which regulates the reporting of non-financial information by large and public interest organisations in order to ensure a transparent and comprehensive understanding of the company's activities, performance, results, the main risks generated or suffered (and the resulting management methods and opportunities), and the impact produced thereby with respect to environmental, social and personnel issues, respect for human rights and the fight against active and passive corruption, considered relevant in view of the company's operations and characteristics.

The content of the NFS relates to the period between 1 January 2023 and 31 December 2023. A comparison with data from the previous two-year period (2021-2022) is also provided. Specific indications are included in the text if it is not possible to ensure sufficient comparability of certain data with previous years.

Pursuant to Article 2, paragraph 2 of the Decree, in the case of public interest entities that are parent companies of a large group, such as the group headed by the Company (hereinafter also the "Brunello Cucinelli Group" or the "Group"), the NFS must be prepared on a consolidated basis. Further information regarding the reporting scope of this NFS is provided in the Addendum (see Methodological note section).

According to the provisions of article 5(3) of the Decree, although this NFS is distinct from the "Management Report" and the Issuer's Financial Statement Documentation as of 31 December 2023, it is to be supplementary to these documents.

The NFS has been drawn up in accordance with the GRI Standards of the Global Reporting Initiative and is aligned with the most recent version available to date2: Option "In accordance with". Further details regarding the specific information reported on environmental, social, economic and governance matters are provided in the Addendum (see Methodological note section).

The document also shows the direct and indirect contribution made by the Group to the achievement of the UN's Agenda 2030 for Sustainable Development and the related Sustainable Development Goals (SDGs)3, through it activities, the establishment of short, medium and long term objectives and the implementation of initiatives and actions to support them. The priority SDGs for the Group have been identified based on the strategy and projects of

1 The Consolidated Non-Financial Statement is published in the section: Archive - "Non-Financial Disclosure" of the Issuer's website at: http://investor.brunel- locucinelli.com/en.

• GRI Universal Standards 2021 and GRI Topic Specific Standards 2016 and subsequent versions.

3 On 25 September 2015, the 193 Member States of the United Nations unanimously approved the 2030 Agenda for Sustainable Development and its 17 Sus- tainable Development Goals (SDGs), divided into 169 targets to be achieved by 2030. Italy played a pivotal role in the negotiations and made concrete com- mitments to pursue international objectives. Given the scale of the challenge, every actor - public and private - is called upon to act within their own sphere of influence and action.

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2023 CONSOLIDATED NON-FINANCIAL STATEMENT Foreword

Brunello Cucinelli, as well as the SDG Industry Matrix4 ("Consumer Goods" sector) and GRI Standards5, which are covered within the NFS.

In accordance with GRI Standard 1 - Foundation, in terms of its content and quality, the NFS has been drawn up by taking into account the key concepts of impact, material topics, due diligence and stakeholder interest. The report is also guided by the following fundamental principles, detailed below in the Methodological note (see Addendum):

• accuracy;
• balance;
• clarity;
• comparability;
• completeness;
• sustainability context;
• timeliness;
• verifiability.

It is also specified that, with reference to the materiality analysis process, this document confirms the results of the impact materiality analysis with an analysis of the potential so-called "financial materiality"6 implications (see The topics that drive our commitment and Addendum).

This NFS has undergone a limited examination, according to the International Standard on Assurance Engagement (ISAE 3000 Revised), carried out by the independent auditors PricewaterhouseCoopers S.p.A.

Finally, the 2023 NFS reports the findings of the analysis conducted by the Company with respect to Article 8 of Regulation EU 2020/852 of 18 June 2020 (EU Taxonomy) and Delegated Regulations 2021/2178 and 2021/2139. The outcome is reported in the Addendum, together with a description of the methodological definition process.

In accordance with the regulatory interpretations in force, the limited assurance does not cover the information and data relating to the EU Taxonomy or the requirement of article 8 of EU Regulation 2020/852.

Guide to reading the document

The document has been drawn up, based on the same organisational structure as the 2022 NFS, to ensure maximum consistency with the Group's philosophical and value-based approach.

In fact, the contents page of the document is intended to give an immediate demonstration of the importance the Casa di Moda gives to sustainability, explaining the forms in which Human Sustainability is ensured.

1. The SDG Index Matrix was developed by the UN Global Compact in collaboration with KPMG.
2. The analysis was carried out on the basis of the document entitled "Linking the SDGs and the GRI Standards" (2022 edition), published by the United Nations Global Compact, in order to accurately relate the SDGs, and the related targets, to the selected GRI Standards for NFS reporting purposes.
3. The limited examination carried out by the independent auditors of the text of the 2023 Non-Financial Statement refers to Legislative Decree 254/16 and the
   GRI standard and the related conclusions do not extend to any information derived from the so-called "financial materiality".

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2023 CONSOLIDATED NON-FINANCIAL STATEMENT Foreword

The title of each of the six chapters is takes up one of the precepts expressed in the Decalogue "Our Enduring Ideals of Life and Work"7, which inspires the management of all the Company's activities on a daily basis.

Each chapter represents a connection between the individual Human Sustainability concept, the precepts of the Decalogue and the material themes assigned to it.

In particular, the introductory chapter Humanistic Capitalism and Human Sustainability delves into the foundations and key principles underlying the Brunello Cucinelli business model, giving the reader a key to understanding the detailed strategic choices and activities of the Group reported in the subsequent sections.

This is followed by six chapters dedicated to reporting on the Group's performance with reference to the material topics covered by the report, each attributable to one of the forms of Human Sustainability.

This dimension of the document is further highlighted by the inclusion of the following works of art at the beginning of each chapter:

• Environmental sustainability - Stories of St. Francis: the sermon to the birds, Giotto, 1266-1336,Assisi, Scala Archives;
• Economic sustainability - The Allegory of Good Government - detail (Prudence), Ambrogio Lorenzetti, c. 1285-1348,Siena, Scala Archives;
• Cultural sustainability - Man Holding a Book, Parmigianino, c. 1529, Vienna, Alamy Stock Photo;
• Spiritual sustainability - Dante and Beatrice hover beside the Heaven of the Sun, Giovanni di Paolo (attrib- uted), mid-15thcentury, CC BY;
• Moral sustainability - Payment of the tribute money - detail (group of Christ with the apostles), Masaccio, 1401-1428,Florence, Scala Archives.
• Technological sustainability - Leonardo da Vinci, James Passelwhite, 1835.

Also included at the beginning of the chapter is a reference to the GRI Standards covered, and where relevant to the SDGs the Group may contribute directly or indirectly to.

Finally, the link to the Ten Principles of the UN Global Compact is also included.

The structure of the document is summarised in the figure below.

7 In Figure 1, this aspect is indicated in italics.

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