Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed Energy Data Management platform in October 2020, aiming for 5-7% energy consumption savings.
• Launched a project to develop fully aluminum “I Caffè d’Italia” capsules to reduce CO2 emissions.
• Initiated R&D for a 100% recyclable flexible pack for Perfetto Moka.

Social Achievements

• Launched the “Take Care Of” project to support Store Managers’ well-being and integration.
• Developed the “Academia 2.0” sales manual and training program for improved customer experience and sales performance.
• Improved Net Promoter Score (NPS) to 63.9% from 60.9% in 2019.

Governance Achievements

• Adopted a new Organizational and Management Model (Modello 231) in October 2020.
• Updated the Code of Ethics in October 2020.
• No cases of corruption reported in 2019-2020.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted sales and operations, leading to a 10.4% decrease in revenue.
• Supply chain disruptions due to the pandemic.
• Reduced profitability due to the pandemic.

Mitigation Strategies

• Implemented cost reduction measures, including social safety nets and reduced general costs.
• Negotiated rent discounts with landlords.
• Strengthened actions on net operating working capital.
• Improved supplier structure and payment terms.
• Requested suspension of interest payments and covenant application.

Supply Chain Management

Supplier Audits: 551

Responsible Procurement

• Code of Ethics
• Supplier certifications (IATF 16949:2016, ISO 9001:2015, ISO 14001:2015, Rainforest Alliance, Utz, Fairtrade)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (in accordance – Core)

Certifications: IATF 16949:2016 (aluminum suppliers), UNI EN ISO 9001:2015 (aluminum suppliers), UNI EN ISO 14001:2015 (aluminum suppliers), BIOAGRICERT (coffee roasting plant)

Third-party Assurance: BDO Italia

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fully aluminum capsules
• Recyclable packaging

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 7% compared to the previous year.
• Reduced aluminum consumption by 14.4% compared to the previous year.
• Launched Gioia Responsible espresso machine, made with 50% recycled plastic and 100% FSC-certified recycled paper packaging.
• Developed a new capsule configuration with compostable filter paper.

Social Achievements

• Implemented a Performance Management project for office staff and foreign sales branches.
• Launched the BE PEOPLE project focused on employee well-being and work-life balance.
• Achieved SA8000 certification.
• Maintained a high employee retention rate after parental leave.

Governance Achievements

• Increased Board of Directors to 9 members.
• Implemented a whistleblowing channel.
• Adopted a Code of Ethics and a 231 Organizational Model.

Climate Goals & Targets

Environmental Challenges

• Increased costs of raw materials and energy.
• Supply chain disruptions.
• The war in Ukraine.
• Inflation.

Mitigation Strategies

• Implemented cost-saving measures.
• Developed alternative sourcing strategies.
• Focused on efficiency improvements.
• Strengthened relationships with key suppliers.

Supply Chain Management

Supplier Audits: 50 suppliers audited, 394 inspection activities in 2022; 75% of supplier audits included assessment of SA8000 compliance factors.

Responsible Procurement

• Code of Ethics; supplier sustainability requirements; BRC Global Standard for Food Safety; IATF 16949:2016; UNI EN ISO 9001:2015; UNI EN ISO 14001:2015; Rainforest Alliance, Utz and Fairtrade certifications for coffee suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: UNI EN ISO 9001:2015, SA8000:2014, FSSC 22000

Third-party Assurance: BDO Italia

Sustainable Products & Innovation

• Gioia Responsible espresso machine
• New capsule configuration with compostable filter paper

Awards & Recognition

• Special Star for the Copy award for Perfetto Moka commercial; Eletto Prodotto dell'Anno 2022 award for Perfetto Moka.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Well-being
• Diversity, Equity, and Inclusion
• Supply Chain Sustainability
• Human Rights
• Customer Responsibility
• Waste Management
• Data Privacy

Environmental Achievements

• Reduced energy consumption by 18.5% compared to 2022.
• Reduced direct emissions (Scope 1) by 17.4% compared to 2022.
• Reduced indirect emissions (Scope 2, location-based) by 22.3% compared to 2022.
• Reduced indirect emissions (Scope 2, market-based) by 20% compared to 2022.
• Introduced a plastic-free coffee capsule, reducing annual plastic waste by approximately 40 tons and filter paper by 10 tons.
• Eliminated secondary packaging for Moka Express coffee makers, reducing cardboard waste by approximately 55 tons annually.
• Obtained ISO 14001 certification for environmental management.

Social Achievements

• Launched the Bialetti Performance Appraisal project to evaluate employee performance and professional development.
• Implemented the Genius Bialetti program for retail staff training and development.
• Launched the “For You” project, a digital training program for retail staff focused on engagement and well-being.
• Implemented IN-Forma Store project for retail staff training.
• Obtained ISO 45001 certification for occupational health and safety management systems.
• Implemented a new anti-corruption training program for all board members.

Governance Achievements

• Established a new ESG Committee to oversee sustainability initiatives.
• Revised the Group's Code of Ethics.
• Updated the Organization, Management, and Control Model (Model 231) to comply with new regulations.
• Established a whistleblowing channel to report suspected crimes or irregularities.

Climate Goals & Targets

Environmental Challenges

• Difficulty attracting talent and increased employee turnover due to inadequate compensation and benefits.
• Increased CO2 emissions due to increased plant operations.
• Potential human rights violations along the value chain due to lack of controls and prevention.
• Potential increase in workplace accidents and occupational illnesses due to lack of procedures and training.
• Social and environmental damage caused by suppliers who do not respect human rights or environmental protection.
• Potential decrease in product quality and customer dissatisfaction due to failure to understand customer needs.
• Increased waste generation and inadequate waste management practices.
• Potential decrease in data security and customer satisfaction due to inadequate cybersecurity.
• Potential increase in water consumption due to lack of efficient water management policies.
• Potential sudden and lasting drop in share value due to negative economic and financial performance.
• Potential decrease in stakeholder trust and reputation due to illegal activities, anti-competitiveness, and lack of ESG integration.
• Potential increase in recruiting costs due to lack of qualified workforce within the communities where the Group operates.
• Potential decrease in sales and increased costs due to inability to anticipate and capture new product and eco-design trends.
• Potential worsening of results and corporate reputation due to strikes and disputes due to non-compliance with human rights regulations along the value chain.
• Potential increase in insurance costs and damage to the Group's reputation due to workplace accidents.
• Potential loss of key personnel with negative consequences for productivity and business results due to inadequate recruitment, training, development, and employee well-being plans.
• Potential damage to reputation and loss of competitiveness in the labor market due to the presence of a non-inclusive work environment.

Mitigation Strategies

• Implemented policies and procedures for human resource management, including training and development programs.
• Implemented a new energy data management system to monitor and optimize energy consumption.
• Implemented periodic verification systems to monitor respect for human rights.
• Implemented policies and procedures for occupational health and safety, including the adoption of a Risk Assessment Document (DVR).
• Integrated ESG criteria into the Group's procurement decisions and conducted supplier audits.
• Implemented a quality management system (QMS) in accordance with ISO 9001 standards.
• Implemented a data protection model and privacy policy.
• Implemented water efficiency policies and best practices.
• Implemented measures to improve economic and financial performance.
• Integrated ESG aspects into the company's strategy and implemented a compliance program.
• Supported local community development through investments and initiatives.
• Collaborated with experts and invested in research to find new efficient production methods.
• Implemented measures to address human rights risks along the value chain.
• Implemented safety protocols and training programs to reduce workplace accidents.

Supply Chain Management

Supplier Audits: 116 suppliers evaluated according to social criteria in 2023.

Responsible Procurement

• Code of Ethics
• Supplier self-assessment questionnaires
• Supplier audits
• Integration of ESG criteria in procurement decisions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging production facilities.

Transition Risks

• Increased costs for raw materials due to climate change.

Opportunities

• Reduced operating costs and increased access to financing through energy efficiency initiatives.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 9001, FSSC 22000

Third-party Assurance: Crowe Bompani S.p.A.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Bialetti's initiatives contribute to these goals through energy efficiency, waste reduction, sustainable product development, ethical supply chain practices, and community engagement.

Sustainable Products & Innovation

• Plastic-free coffee capsules
• Gioia Responsible espresso machine with recycled plastics.

Awards & Recognition

• Best Brand in the Homeware Sector (4 consecutive years)