Cembre S p A : Non-financial statement 2022

LETTER TO STAKEHOLDERS 3

THE CORPORATE IDENTITY AND GROUP PROFILE 6

MAIN TYPES OF RISK 15

MATERIALITY ANALYSIS AND STAKEHOLDER ENGAGEMENT 18

MANAGEMENT OF ENVIRONMENTAL MATTERS 25

Risks and opportunities 25

The policies applied by the CEMBRE Group 26

Non-financial performance 28

MANAGEMENT OF SOCIAL AND STAFF-RELATED MATTERS 39

Risks and opportunities 39

The policies applied by the CEMBRE Group 39

Non-financial performance 44

HEALTH AND SAFETY MANAGEMENT 52

Risks and opportunities 52

The policies applied by the CEMBRE Group 52

Non-financial performance 54

MANAGEMENT OF THE FIGHT AGAINST CORRUPTION 55

Risks and opportunities 55

The policies applied by the CEMBRE Group 55

Non-financial performance (GRI 205-3) 56

SUPPLY CHAIN MANAGEMENT 57

Risks and opportunities 57

The policies applied by the CEMBRE Group 57

Non-financial performance (GRI 204-1) 58

MANAGEMENT OF LEGAL AND FISCAL MATTERS 61

Risks and opportunities 61

The policies applied by the CEMBRE Group 61

Non-financial performance 62

MANAGEMENT OF INNOVATIONS 64

Risks and opportunities 64

The policies applied by the CEMBRE Group 64

Non-financial performance 65

EUROPEAN TAXONOMY 67

Introduction 67

The aligned activities of the Cembre Group 67

Technical Evidence 71

Methodological aspects 75

METHODOLOGICAL NOTE 78

Letter to Stakeholders

2022 continued to be a difficult period in many respects: we are referring first and foremost to the conflict situation in Ukraine, the resulting increases in raw materials and energy, widespread price rises, and the complex situation of having to find many of our purchasing codes that still characterised the year.

Despite all this, the CEMBRE Group has continued to produce extremely positive results thanks to everyone's constant commitment. These results allow us to invest in people, facilities, equipment and product development.

CEMBRE confirms the theme of sustainability as an integral and fundamental part in the development of business life.

Attention to environmental impact both during the design of new products, in particular in relation to:

• - the characteristics of the materials and production processes used

• - the gradual migration from the more polluting traditional technology of endothermic powered tools to electric tools powered by batteries

and in the construction of new energy-efficient buildings (equipped with photovoltaic and geothermal systems) with a low impact on the environment and the land, is tangible evidence of our commitment.

We are convinced that operating in accordance with the values and principles of our Group Code of Conduct will allow us to create new and important opportunities for growth and ensure that we achieve ambitious goals by increasingly characterising our commitment to sustainability.

CEMBRE's commitment to sustainability is developed by consolidating an awareness of the importance of making a concrete commitment to combating climate change in order to mitigate its impact.

In 2022, this commitment was formalized and implemented in several projects that combine the three areas of sustainable development (people, environment and territory).

The main projects were related to sustainable mobility, energy efficiency, reduction of paper consumption, adoption of recyclable packaging, renewal of certifications and sustainable innovation.

Medium-term guidelines (four to five years) have been established for each project, along with investments, commitments and objectives shared with the various categories of stakeholders.

Sustainable mobility

CEMBRE has prepared a 4-year (2022 - 2025) sustainable mobility project within its Home-Work Journey Plan, within which specific activities have been identified and are monitored annually.

In particular, it should be noted that CEMBRE's commitment to supporting and encouraging sustainable mobility is fostering a gradual change in habits regarding systematic home-work journeys, increasing employees' financial savings and reducing the use of private vehicles, with consequent benefits in terms of traffic congestion and related ecological, environmental, health and social benefits.

With regard to the initiatives implemented to date in the field of sustainable mobility, CEMBRE confirms its continued commitment to promoting even broader interaction at a territorial level, where possible, with nearby companies, transport companies and local reference authorities. The goal is to increase the activities and services in favour of sustainable mobility and to develop a higher level of awareness with effects on improved liveability of the territory, greater wellbeing for all and concrete environmental protection.

Reducing Paper Consumption

With a view to digital transformation and sustainability, already in 2021 CEMBRE decided to adopt a digital platform to manage the meetings of the Board of Directors and the internal Board Committees.

The chosen tool has made it possible to eliminate paper and make document sharing more secure: in fact, documents are no longer transmitted via e-mail, but are made accessible in a protected manner through the platform, which is ISO 27001 certified; documents are also encrypted and marked with a personalized watermark.

In 2022, a process of evaluation of the different document flows of the Management System and archiving procedures began, with the aim of optimising processes and reducing paper consumption; for example, orders, which used to be printed on a single sheet, will be printed on both sides from 2022, effectively halving paper consumption for this process. Furthermore, where paper could not be eliminated altogether, a decision was made to use recycled or virgin paper with the FSC (Forest Stewardship Council) label.

Recyclable Packaging

Reducing the environmental impact generated by product packaging is one of the aspects CEMBRE is working on most closely.

Several initiatives have already been launched: among them the fact that almost all of the raw materials for making the boxes come from wood-paper supply chains certified according to the Forest Stewardship Council standard.

Energy efficiency enhancement

The responsible use of energy resources, aimed at reducing consumption and/or making it more efficient, is a determining factor for Cembre. To this end, it continues along the path begun in 2021 where plans have been made to replace 900 traditional lighting systems with LED technology solutions in all the warehouses of the Brescia headquarters by 2026.

The replacement of these lighting fixtures will result in lower CO2 emissions and in a reduction of lighting-related energy consumption by at least 40% compared to the current value.

In addition, as mentioned in the previous Declaration, CEMBRE expanded the photovoltaic plant at its Italian headquarters at the end of 2022, from about 200 KW to about 1,550 KW.

The new investment will result in an overall annual electricity production of about 2 GWh in total internal consumption, which is about 20% of the company's energy requirement.

Adjustment of certifications

CEMBRE believes in the importance of certifications of compliance with international standards for controlling environmental impacts deriving from the company's activities, the protection of health and safety in the workplace and the fight against corruption. In fact, after having completed the process of bringing its second production unit in England up to ISO 45001 certification in 2021, in 2022 CEMBRE embarked on the process of obtaining ISO 37001:2016 certification, implementing a Management System for the Prevention of Corruption in line with the provisions of this standard.

Sustainable innovation

Innovation for CEMBRE is aimed not only at developing products that are increasingly cutting-edge, i.e. capable of anticipating and responding to the new requirements that characterise its sector, but also products that reduce environmental impact.

For some years now, Cembre has been investing in innovation and the development of solutions that can favour the evolution of processes, making the production flow more efficient and effective, taking actions also with regard to the "Industry 4.0" paradigm, which has been the driving force behind the development of industrial solutions consistent with this commitment.

Significant recognition for CEMBRE's work was awarded by EcoVadis, a French company that is now the world's largest provider of corporate sustainability assessments, which gave CEMBRE a "Gold Sustainability rating", confirming its commitment to sustainability issues. The Sustainability Rating was awarded on the basis of four macro-themes: environment, labour practices and human rights, ethics and sustainable procurement.

In conclusion, the Cembre Group, comprising more than 830 people as at 12/31/2022, renews its commitment to sustainability with an increasingly strong and cohesive vision. We are convinced that together with our stakeholders we can continue to build a better future for the next generations.