Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Decrease in energy consumption despite the addition of Prima Power Russia to the reporting perimeter.
• Transition from CO2 to laser fiber machines, resulting in waste reduction, elimination of gas use, and greater production efficiency.
• Upgrade of paneling, bending, and punching machines from hydraulic to servo-electric technology, leading to lower energy consumption, elimination of hydraulic oils, and reduced heat and noise production.

Social Achievements

• 16 fixed-term contracts upgraded to permanent contracts.
• High employee satisfaction (88%), exceeding the benchmark of 82%.
• Initiatives to improve corporate climate, including exploring smart working and carpooling.

Governance Achievements

• Updated Group Code of Ethics to reflect the company's growth and complexity.
• Implementation of an Enterprise Risk Management (ERM) model.
• Compliance with the Borsa Italiana Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• High employee turnover (11.4% in 2019).
• Spin-off of the OSAI brand and relocation of German headquarters impacting turnover.
• Managing risks associated with socio-political changes, protectionist policies, product defects, and legal controversies.

Mitigation Strategies

• Investing in training and development to retain key personnel.
• Implementing a performance management system to improve employee engagement.
• Adopting an Enterprise Risk Management (ERM) model to identify, assess, and mitigate risks.

Supply Chain Management

Supplier Audits: 60 supplier inspection visits

Responsible Procurement

• Selection criteria based on objective competitiveness, quality, and safety; adherence to the company's Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (damage to factories/warehouses)

Transition Risks

• Changes to security and technology regulations/laws

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (2016 version)

Certifications: ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers SpA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Laser fiber machines, servo-electric technology for paneling, bending, and punching machines, Convergent Photonics laser sources and diodes.

Awards & Recognition

• Included in the Index Future Respect 2019 by ConsumerLab.it

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Human Rights
• Anti-Corruption

Environmental Achievements

• Reduction in energy consumption due to the pandemic and green policies (specific figures in GJ provided in the report)
• Transition from CO2 to fiber laser machines, resulting in waste reduction, lower CO2 production, and improved energy efficiency
• Shift from hydraulic to servo-electric technology in panel, bending, and punching machines, leading to lower energy consumption, elimination of hazardous waste, and improved working conditions

Social Achievements

• Launched a digital platform for remote customer interaction, "Prima@Home", enabling virtual webinars and demonstrations
• Implemented agile working (smart working) to support employees during the pandemic
• Provided on-site serological testing for employees who requested COVID tests
• Continued investment in modern and energy-efficient production sites in China, Finland, and the US

Governance Achievements

• Updated Group Code of Ethics in 2018 to reflect the company's growth and complexity
• Implemented an Enterprise Risk Management (ERM) model to manage business risks
• Applied diversity criteria and gender quotas in the composition of the Board of Directors and Board of Statutory Auditors

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted economic performance and required adaptation
• Supply chain disruptions due to the pandemic
• Reduction in turnover due to the global crisis caused by the pandemic

Mitigation Strategies

• Implemented measures to guarantee worker health and safety and business continuity
• Obtained new lines of credit to increase liquidity
• Secured a five-year loan from Cassa Depositi e Prestiti (CDP) to finance investments in R&D and digitization
• Implemented remote working (smart working) and travel restrictions
• Launched "Prima@Home" digital platform for remote customer interaction

Supply Chain Management

Supplier Audits: 25% (2020)

Responsible Procurement

• Selection criteria based on quality, price, and ability to supply
• Requirement for suppliers to adhere to the company's Code of Ethics
• Inclusion of human rights considerations in supplier selection process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016 version and subsequent updates)

Certifications: ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers SpA

Sustainable Products & Innovation

• Fiber laser machines
• Servo-electric technology in sheet metal processing machines

Environmental Metrics

ESG Focus Areas

• Climate change
• Inclusive growth
• Digitalisation of processes and technological innovation
• Redefinition of value chains

Environmental Achievements

• Relocation of Collegno production plant to new premises designed with cutting-edge energy features, using solar thermal and geothermal systems for energy efficiency.
• Transition from CO2 to laser fibre machines resulting in waste reduction, greater production efficiency, lower cooling capacity, elimination of hydraulic oils, and lower heat and noise production.
• Increased adoption of heating types using renewable sources such as biomass.

Social Achievements

• Implementation of flexible working measures to improve work-life balance.
• Creation of internship opportunities and training in schools.
• Updated whistleblowing procedure.
• Improved contractual provisions in some locations (health and accident insurance, leave, advance payment of staff-leaving indemnities, part-time contracts, annual productivity bonuses, etc.).

Governance Achievements

• Updated whistleblowing policy aligned with ISO 37002 and EU Directive 2019/1937.
• Adoption of a “Policy for managing dialogue with shareholders and other PRIMA INDUSTRIE stakeholders”.

Climate Goals & Targets

Environmental Challenges

• Supply difficulties and reductions in supply capacity due to the fragility of globalisation during the pandemic.
• Inflationary pressure on raw materials and components.
• Instability in supply chains.

Mitigation Strategies

• Rethinking over-globalisation by reappraising the local dimension of the business.
• Working with like-minded suppliers.
• Setting up working groups at top management level to monitor the situation and define immediate action to mitigate the impact of inflationary pressure and supply chain instability.

Supply Chain Management

Supplier Audits: 65% of supplier audits in 2021 addressed new qualifications and approvals

Responsible Procurement

• Objective assessment of key information, comparison of alternatives, consideration of internal and final customer needs; focus on safety, quality, and reliability; respect for the Group’s Code of Ethics and Human Rights Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (2016, version)

Certifications: ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers SpA (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Laser fibre machines; servo-electric technology; Additive Manufacturing solutions; green lasers.

Awards & Recognition

• Not disclosed