Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic value creation and sustainable growth strategy
• Health, safety and worker protection
• Customer satisfaction, product quality and safety
• Waste management
• Sustainable supply chain
• Water management and protection
• Business & medical ethics
• Climate change and pollutant emissions
• Employee training and professional development
• Sustainable energy use
• Talent acquisition and retention
• Innovation, R&D and process development
• Sustainability of production processes and circular economy
• Digital transformation and technological innovation
• Respect for human rights
• Welfare, gender diversity and fair working conditions
• Support and development of local communities

Environmental Achievements

• Reduction of CO2 emissions (scope 1 & 2) by a slight amount compared to the previous year, despite production growth.
• Reduction of water consumption per tonne of product by around 17% compared to 2019.
• Stabilization of overall waste production despite turnover growth, resulting in a decrease in waste per unit of product.
• Implementation of a new trigeneration plant project for improved energy efficiency at the Lonigo site (planned for 2022-2023).

Social Achievements

• Hiring of 133 new employees in 2021.
• Consolidation of 18 fixed-term contracts into permanent positions.
• Extension of 95 fixed-term contracts.
• Placement of 19 interns.
• 9% increase in female personnel since 2019.
• Implementation of paid leave for employee caregiving (up to 40 hours/year).
• Extension of maternity support to the Termoli site.
• Introduction of an assessment tool for candidate screening and selection.
• Implementation of an onboarding process focused on training.

Governance Achievements

• Issuance of the first Sustainability-Linked Bond (SLB) with a total nominal value of EUR 350 million.
• Establishment of a new Internal Auditing department.
• Implementation of the 'Stop the Hack' cybersecurity program.
• Improvement in data protection compliance.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic and global climate policies.
• Increased costs for logistics and transport.
• Increased electricity prices.
• Continued pandemic situation.
• Asymmetrical accident prevention performance across plants.
• Increasing cyber risks and threats.
• Talent shortage.

Mitigation Strategies

• Increased qualification of new raw material sources (+150%) and performance verification (+50%).
• Implementation of flexible working policies.
• Monitoring of compliance with internal Covid-19 protocols.
• Targeted actions to improve accident prevention at Montecchio and Termoli sites.
• Investment in cybersecurity and implementation of new security measures.
• Preventive and retention actions, including organizational review, stress detection, motivational interviews, growth plans, job rotation, remuneration policy revision, and work-life balance improvements.

Supply Chain Management

Supplier Audits: 37 on-site audits in 2021

Responsible Procurement

• Supplier Portal (SRM)
• Performance evaluation plan (pre-audits, technical visits, quality audits, continuous monitoring)
• Use of Ecovadis® platform for sustainability assessment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: UNI EN ISO 9001:2015, UNI EN ISO 45001, UNI EN ISO 14001

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 12
• 13

The report details how FIS's activities contribute to these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Preserving Water Resources
• Improvement of Circularity and Internal Processes
• Development of Human Resources
• Local Community Development
• Sustainable Supply Chain
• Economic value creation and sustainable growth strategy
• Welfare, gender diversity and fair working conditions
• Training, professional development and employee retention

Environmental Achievements

• Achieved a 28% average PMI reduction across 14 of 20 projects in development.
• Increased recycled solvents by +95% (from 2022).
• Modernized the Lonigo incinerator, enabling more effective waste management and energy recovery.
• Implemented a new carbon filtration plant to significantly increase palladium recovery.

Social Achievements

• Launched the Welfare 4 You platform, providing employees with benefits and incentives.
• Implemented a new competency assessment model for the workforce.
• Launched Project Astra to identify high-potential employees for future leadership roles.
• Achieved a 73% increase in the number of female employees since 2016.

Governance Achievements

• Implemented policies on Gifts & Entertainment and Conflicts of Interest.
• Approved a new “Whistleblowing policy” with an independent reporting platform.
• Conducted anti-corruption training for 1,233 employees (around 60% of the workforce).

Climate Goals & Targets

Environmental Challenges

• Significant cost increases in all production inputs and procurement difficulties due to stresses in international raw material and commodity markets.
• Geopolitical tensions affecting supply chains.
• Increased frequency of AIFA inspections due to the complexity of production.

Mitigation Strategies

• Developed an APS (Advanced Planning & Scheduling) system to improve decision support in production and logistics.
• Implemented a ship tracking system to monitor shipments in real time and avoid stockpiling.
• Expanded the supplier base by more than 100 new vendors.
• Active and frequent cooperation with AIFA.

Supply Chain Management

Supplier Audits: Regular audits and site visits conducted four times per year.

Responsible Procurement

• Sustainability criteria for supplier selection/exclusion.
• Supplier Relationship Management (SRM) system.
• Ecovadis assessment for supplier sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 27001, ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers Italy (limited assurance)

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 12
• 13

FIS supports SDGs 3, 4, 5, 6, 7, 8, 9, 12, and 13, which are closer to our business and values and in line with the expectations of our stakeholders.

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs 3, 4, 5, 6, 7, 8, 9, 12, and 13)
• Human Rights
• Social Responsibility
• Environmental Responsibility
• Quality and Safety

Social Achievements

• Commitment to equal employment opportunities and preventing discrimination
• Fostering respectful working relationships

Governance Achievements

• Adoption of a Standard of Business Conduct
• Implementation of whistleblowing system
• Establishment of policies on conflict of interest, corruption, gifts, and political activities

Climate Goals & Targets

Environmental Challenges

• Potential negative impacts on people, communities, human rights, and the environment throughout the supply chain
• Maintaining compliance with international laws and regulations in various jurisdictions

Mitigation Strategies

• Implementation of due diligence measures, audits, and controls in the supply chain
• Consultation with the Legal Department to ensure compliance with applicable laws and regulations
• Establishment of reporting channels for suspected violations

Supply Chain Management

Responsible Procurement

• Verification of supplier quality and sustainability
• Prevention and mitigation of negative impacts on people, communities, human rights, and the environment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, ILO Core Conventions

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 12
• 13

The company's adherence to and support of these SDGs are considered closest to the company’s business and values, as well as being in line with stakeholder expectations.