Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Products
• Processes

Environmental Achievements

• Reduced emissions in 2021 by 18% (2.3 kgCO2/unit produced vs. 2.8 in 2020)
• 51% of electricity consumed is produced from renewable sources
• 436 tons of CO₂ not emitted thanks to energy self-produced from renewable sources
• 88% waste recovered through reuse, recycling and composting

Social Achievements

• Launched “Your voice: to make a difference” employee engagement survey, showing a slight increase in engagement.
• Implemented Diversity and Inclusion initiative to promote equal opportunity and address gender diversity.
• 373 job openings published on LinkedIn, with over 40% of new hires supported by the platform.
• Provided 21.7 hours of training per employee (total 224,309 hours)

Governance Achievements

• Updated stakeholder mapping, identifying 10 categories of stakeholders.
• Updated the “Organizational, Management and Control Model” in accordance with Legislative Decree 231/2001.
• 9,826 employees received anti-corruption training (8,519 training hours).

Climate Goals & Targets

Environmental Challenges

• Supply chain bottlenecks due to difficulties finding parts, higher purchasing and transportation costs.
• Covid-19 pandemic impacting training and operations.
• Difficulty finding materials for technical assistance centers.

Mitigation Strategies

• Implemented safety measures (PPE, temperature checks, social distancing) to protect employee health and ensure business continuity.
• Adapted business model to address material shortages and maintain business continuity.
• Shifted to remote working where possible.
• Redesigned WeMake training program for a digital format.
• Invested in expanding the Group’s biggest repair center in Germany.

Supply Chain Management

Supplier Audits: 100% of new suppliers of finished products subject to social and environmental audits in 2021.

Responsible Procurement

• Code of Ethics; Code of Conduct; SA 8000 standard for social and environmental audits; environmental management system in line with ISO 14001 standard.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Evolution of regulatory contexts on environmental matters; risks related to climate change; risks related to inappropriate energy management practices.

Opportunities

• Energy efficiency improvements; development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (In accordance - Core)

Certifications: ISO 9001 (European and foreign production sites), ISO 14001 (Mignagola, Eversys, Cluj, Salonta plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products with recycled and compostable packaging; products with reduced plastic content; energy-efficient products; products designed for durability and repairability.

Awards & Recognition

• Various awards received for product design and innovation (listed in report).

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Completed life cycle assessment (LCA) of three products a year in advance of target.
• Adopted Eco-Design Guidelines for ten products, meeting the 2023 target.
• Achieved 100% renewable energy electricity use two years ahead of schedule.
• Obtained ISO 45001 certification for one plant in China.
• Launched a health and safety awareness campaign with a manifesto and accident prevention program.

Social Achievements

• Launched a DEI (Diversity, Equity, and Inclusion) program focused on women in management and reducing the gender pay gap.
• Launched the Sustainability Learning Journey, including a speech by Nobel Prize winner Prof. Joseph Stiglitz.
• Increased average training hours per employee from 23 in 2022 to 24.3 in 2023.

Governance Achievements

• Revised and updated the Sustainability Plan, incorporating it into the Medium-Term Plan 2024-2026.
• Participated in the Italian Green New Deal and sponsored two PhDs in Sustainable Design.

Climate Goals & Targets

Environmental Challenges

• Weakness in the first half of the year due to transitory and one-off factors.
• Exit from the portable air conditioning market in the US.
• Destocking by retail distributors.
• Unfavorable weather conditions.
• Strong competition.
• Global market conditions.
• Supply chain difficulties.
• Changes in consumer preferences.
• Challenges associated with technological innovation.
• Macroeconomic trends (inflation, interest rates, geopolitical instability).

Mitigation Strategies

• Rigorous cost control.
• Constant brand development.
• Careful investment strategy.
• Good working capital management.
• Investments in advertising and promotional initiatives.
• Implementation of the global Customer Fulfillment Excellence program.
• Evolved procurement strategies with suppliers.
• Investments in increasing production capacity in Romania and China.
• Automation and digitalization of European plants.
• Digitalization of the supply chain.
• Diversification of suppliers.
• Centralization of activities at corporate headquarters.
• Hedging policies to mitigate currency and interest rate risks.

Supply Chain Management

Supplier Audits: 49 audits in 2023 (44% coverage)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Guidelines
• Social Accountability Code of Conduct (SCOC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001:2015 (environmental management systems), ISO 9001 (product quality management system), ISO 22000 (food safety management model, Mignagola and Cluj plants), ISO 45001 (workplace health and safety management, Sierre, Dongguan, OnShiu plants)

Sustainable Products & Innovation

• Energy-efficient portable air conditioners (R32 refrigerant)
• Fully automatic coffee machines (energy class A)
• Products made with recycled materials
• Products designed for ease of disassembly and repair

Awards & Recognition

• Red Dot prize (Braun products)