Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate neutrality
• positive impact products
• high level of employee engagement
• integration of sustainability in our business plan

Environmental Achievements

• Reduced Scope 1 and Scope 2 climate-altering emissions by 6.39% compared to 2022 and is committed to reducing them by 10% in 2024

Social Achievements

• Launched a “Sustainability Lab” to discuss and implement new sustainability projects, and a “Train the Trainer” programme to accelerate internal training on climate change and its consequent environmental and social impacts.
• Completed the initial phase of the Sustainability Ambassadors' Journey

Governance Achievements

• Defined Remuneration Policy, including a parameter linked to the reduction of emissions (Scope 1 and Scope 2), in addition to parameters linked to accident ratios.

Climate Goals & Targets

Environmental Challenges

• Market stagnation of heat pump exchangers
• Supply chain disruptions
• High volumes of finished product inventories
• Persistent uncertainties related to the incentives system
• Geopolitical tensions
• High interest rates
• Increase in key raw material prices
• Shrinking industrial production
• Climate change impacts on mining activities
• Risks related to net financial debt
• Exchange rate fluctuations
• Concentration of sales
• Possible procurement difficulties and relations with suppliers
• Consequences of business interruptions
• Interest rate trends
• Socio-political risks connected to the Group’s operations at global level, including in emerging countries
• Cyber risks
• Climate change

Mitigation Strategies

• Cost restraints initiatives
• Monitors availability of raw materials and price trends
• Identifies alternatives to strategic suppliers
• Contracts to hedge the risk of fluctuations in the price of raw materials
• Monitors respect for financial covenants
• Maintains significant available financial liquidity
• Short-term credit lines
• Derivative financial instruments to hedge exchange rate risk
• Diversifies sales
• Permanent assessment model of supplier reliability
• Checks on the economic assessment of suppliers
• Assessment of services provided by suppliers
• Assessment of possible supply solutions from alternative suppliers
• Investments to ensure back-up production lines
• Loss of profit and all risk insurance policies
• Derivative contracts (Interest Rate Swaps) to hedge interest rate risk
• Monitors the situation in various countries
• Guidelines aimed at regulating relations with its Russian subsidiaries
• Verification procedures regarding the possibility of exporting products to Russia
• Verification procedures regarding Ultimate Beneficial Owners
• Further procedures for risk mitigation
• Cyber risk insurance policy
• Monitors compliance with sustainability plan objectives
• All risk insurance policies

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Damage from climate events

Transition Risks

• Regulatory changes
• Technological developments
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: CSRD

Sustainable Products & Innovation

• Heat pumps
• Products based on natural refrigerants