Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduction in water withdrawal (2020 vs 2018) by 62%
• 97% of total waste produced directed to recovery operations
• Installation of a 200 kWp photovoltaic plant at SRT Fano and a 361 kWp photovoltaic plant at Overail Aprilia

Social Achievements

• Obtained SA 8000 certification in March 2020
• Published a Social Accountability Policy
• Active participation in social projects with Caritas of Rome and Community of Sant'Egidio

Governance Achievements

• Obtained ISO 37001 certification in June 2020
• Published an Anti-Corruption Policy
• Adherence to the Corporate Governance Code of Borsa Italiana

Climate Goals & Targets

Environmental Challenges

• Revenue concentration (78.1% from RFI in 2018-2020)
• Risks related to compliance with public procurement regulations
• COVID-19 impacts on organization and operations

Mitigation Strategies

• Diversification of customers, products, and operating countries
• Adoption of company procedures to comply with public procurement regulations
• Implementation of risk assessment, remote working, and anti-contagion protocols

Supply Chain Management

Supplier Audits: 763 suppliers qualified in 2020 (39% of total suppliers)

Responsible Procurement

• Supplier Qualification procedure
• General Purchasing Conditions
• Suppliers’ Code of Conduct
• Due Diligence for critical suppliers

Climate-Related Risks & Opportunities

Opportunities

• Sustainable mobility opportunities linked to EU Green Deal policies

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 37001, SA 8000, ECM

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13

Salcef's activities contribute to these SDGs through sustainable mobility infrastructure development, renewable energy use, responsible resource management, and employee well-being initiatives.

Awards & Recognition

• One gold and four silver medals from EcoVadis

Environmental Metrics

ESG Focus Areas

• Sustainable Mobility
• Occupational Health and Safety
• Environmental Protection
• Supply Chain Responsibility
• Governance and Compliance

Environmental Achievements

• Consumption of electricity from renewable sources more than doubled to account for 16% of overall requirements.
• SRT S.r.l. was ISO 14001-certified in July 2021.
• Significant decrease in injury metrics, with improvements in both the frequency rate and the severity rate.

Social Achievements

• 12% increase in Salcef Group’s workforce, to 1,409 people, including the onboarding of 115 under 30s (23% of total new hires) and an increase in the female component.
• Launched “Cantiere Sicuro” (Safe Sites) training programme, involving some 200 group employees.
• More than 40,000 training hours were provided in 2021, including 50% dedicated to health and safety, with a 31% increase in hours per capita.

Governance Achievements

• Adoption of the Salcef Group integrated policy.
• Ramping up of audits of both management systems and at work sites.
• Progress on the organisation of the group’s ERM system.
• Implementation of the MBO system for key management personnel.

Climate Goals & Targets

Environmental Challenges

• Concentration of revenue with a few customers (RFI accounting for more than 70% of consolidated revenue).
• Risks arising from changes to the Italian and global macroeconomic context.
• Risks related to compliance with legislation governing public contracts.
• Risks related to Covid-19 infection.
• Risks related to compliance with environmental regulations.

Mitigation Strategies

• Increase the diversification of customers, products offered and the countries in which the group has a footprint.
• Constant monitoring of the Italian and international macroeconomic context.
• Adoption of group procedures incorporating all legislative and regulatory requirements of Italian law governing public tenders.
• Definition of specific protocols to ensure business continuity.
• Adoption of the ISO 14001 environmental management system.

Supply Chain Management

Supplier Audits: 2,347 suppliers vetted in 2021; 34% subject to qualification (85% of total supply chain value).

Responsible Procurement

• Supplier qualification procedure.
• General purchase conditions.
• Suppliers’ code of conduct.
• Regulation governing Salcef Group’s supplier qualification system.
• Due diligence on critical suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Business interruption risks due to natural disasters.

Transition Risks

• Legislative and regulatory risks.
• Procurement risks for raw materials/energy.
• Technological risks.
• Market risks.
• Reputational risks.

Opportunities

• Legislative development.
• Market and technological development.

Reporting Standards

Frameworks Used: GRI Standards (core option)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 37001:2016, SA 8000:2014, ISO 50001:2018, ISO 39001:2016

Third-party Assurance: KPMG S.p.A. (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Salcef's activities contribute to these goals through sustainable transport, responsible resource management, decent work, infrastructure development, reduced inequalities, sustainable cities, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• New rolling stock with Stage IIIB and Stage V engines.
• Photovoltaic plants at Overail and SRT facilities.

Awards & Recognition

• EcoVadis platinum and gold medals.
• MSCI BBB rating.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Cut its CO2 emissions intensity rate by 18%
• 42% increase in consumption of electrical energy from renewable sources (23% of the total)

Social Achievements

• Increased the proportion of new hires in the under 30 years of age bracket to 39% (compared to 23% in 2021)
• Improved occupational safety record, with the consolidated injury rate down 37% on 2021
• Restructuring of the new headquarters in Rome, a state-of-the-art green building

Governance Achievements

• Two policies on diversity and inclusion and human rights were drafted

Climate Goals & Targets

Environmental Challenges

• Inflation and the mix of projects entering operations affected our margins
• Higher direct operating costs, such as fuel and raw materials

Mitigation Strategies

• Strategies based on the close monitoring of market trends, the expansion of the supply chain, and tailoring contracts to include clauses to mitigate these risks (i.e., raw materials price escalation)
• Installing photovoltaic plants to reduce reliance on external electricity supplies

Supply Chain Management

Supplier Audits: 35% of suppliers were subject to qualification in 2022

Responsible Procurement

• Supplier code of conduct
• Regulation governing Salcef Group’s supplier qualification system

Climate-Related Risks & Opportunities

Physical Risks

• Business continuity risks – acute risks

Transition Risks

• Legislative and regulatory risks
• Procurement risks for raw materials/energy
• Technological risks
• Reputational risks

Opportunities

• Legislative development
• Market and technological development

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2021, TCFD

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001, ISO 9001:2015, ISO 50001:2018, SA 8000:2014, ISO 30415

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 8
• SDG 10
• SDG 16

Salcef’s commitment to SDGs that have direct economic and social impacts, such as SDG 8 (Decent work and economic growth) and SDG 10 (Reduced inequalities) reflect the conditions promoting the achievement of objectives linked to the business model and reference sector.

Sustainable Products & Innovation

• FAST System
• VULCAN SERIES RAIL GRINDERS

Awards & Recognition

• Five platinum medals and one gold medal from EcoVadis
• A rating from MSCI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Occupational Health and Safety
• Supply Chain Management

Environmental Achievements

• Reduced energy intensity by 8%
• Reduced Scope 1 and Scope 2 emissions intensity by 10%
• Received a "B" score in its first participation in the CDP Climate Change questionnaire
• 11% increase in consumption of electrical energy from renewable sources (23% of the total)

Social Achievements

• Headcount exceeded 2,000 for the first time, with 19% outside Italy
• 110% increase in women in non-construction/manufacturing activities (41% of total vs. 28% in 2022)
• 91% increase in Health and Safety training hours
• UNI/PDR 125:2022 certification for gender equality
• Established an internal sustainability committee

Governance Achievements

• 26% increase in audits carried out
• Inclusion of environmental and DE&I KPIs in the STI and LETI remuneration of the Chairperson, CEO and key management personnel

Climate Goals & Targets

Environmental Challenges

• Global inflationary trends impacting profit margins
• Supply chain disruptions
• Legal proceedings under Legislative decree no. 231/2001

Mitigation Strategies

• Cost efficiency measures
• Regulatory amendments introducing price adjustment mechanisms for public tenders
• Strategies based on close monitoring of market trends, expansion of the supply chain, and tailoring contracts to include clauses mitigating risks
• Development of alternative sourcing strategies
• Voluntary additional tax payments and self-imposed sanctions

Supply Chain Management

Supplier Audits: 4,424 suppliers assessed in 2023, 37% subject to qualification

Responsible Procurement

• Supplier code of conduct
• Regulation governing Salcef Group’s supplier qualification system
• Due diligence on critical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Business continuity risks (acute risks)
• Interruptions to infrastructure operation

Transition Risks

• Legislative and regulatory risks
• Procurement risks for raw materials/energy
• Technological risks
• Reputational risks

Opportunities

• Legislative development
• Market and technological development

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 37001:2016, SA 8000:2014, UNI/PDR 125:2022

Third-party Assurance: KPMG S.p.A. (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 8
• SDG 10

Salcef's commitment to sustainable mobility, responsible resource management, climate action, decent work, reduced inequalities, and infrastructure development.

Sustainable Products & Innovation

• FAST slab laying system
• Colmar electric locotractors

Awards & Recognition

• Five platinum medals, one gold medal, and one silver medal from EcoVadis