Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Implemented heat recovery plant at Lonato steel mill, recovering 1,268 MWh of thermal energy from steel mill fumes.
• Green Stone Wall project reusing steel mill slag in concrete production.
• Dirty Box project collecting oil-stained garments for environmentally compliant treatment.

Social Achievements

• Renewed collaboration with Lombardy Regional Government for the European Workplace Health Promotion (WHP) project.
• Established WELFer, a flexible welfare platform for employees.
• Continued Feralpi Bootcamp initiative for professional training of young people.

Governance Achievements

• Annual sustainability reporting implemented.
• Antitrust compliance program continued, with successful appeal of fines.
• Sustainability Committee met six times in 2017.

Climate Goals & Targets

Environmental Challenges

• Difficulty finding manual workers in Germany due to demographic trends and migration.
• Increased energy consumption due to increased production.
• Lack of market absorption for slag (Green Stone by-product).

Mitigation Strategies

• Initiatives to introduce young people to factory work in Germany.
• Ongoing efforts to improve process efficiency and reduce specific energy consumption.
• Research projects to find alternative uses for steel mill slag.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier selection based on reliability, quality, compliance with delivery times, and legislative/environmental compliance. Feralpi Code of Ethics provided to all suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016)

Certifications: UNI EN ISO 14001, EMAS, ISO 50001, UNI EN ISO 9001:2015, OHSAS 18001

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

UN Sustainable Development Goals

• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Feralpi's initiatives contribute to these goals through energy efficiency, waste reduction, community engagement, and sustainable product development.

Sustainable Products & Innovation

• Green Stone, various energy-efficient technologies.

Awards & Recognition

• Workplace Health Promotion (WHP) certificates, Confindustria quality mark, Industria Felix award, recognition for energy efficiency and environmental safeguarding measures from Klimaschutz-Unternehmen.

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Social Responsibility
• Innovation
• Climate Change
• Occupational Health and Safety
• Gender Equality
• Community Engagement

Environmental Achievements

• Reduced total direct and indirect greenhouse gas emissions by 2.8% despite increased production volumes.
• 18.8% reduction in total waste production despite increased production.
• Heat recovery at Acciaierie di Calvisano to optimize sturgeon breeding tank temperatures.
• Construction of an energy recovery plant with steam generation at Feralpi Stahl.
• Steelworks fume heat recovery in Lonato and construction of a district heating network.
• Recovery of spent refractories from casting ladles, reducing lime use in smelting.

Social Achievements

• Increased number of Group personnel by 2.5%.
• 96.3% of Feralpi personnel had a permanent contract.
• Two new supplementary agreements signed at Acciaierie di Calvisano and Presider.
• Launched the e-Farmer project to develop new graduates' expertise.
• Employee turnover rate of 10.9%.
• Approximately 30,700 training hours provided, nearly 20 hours per capita.
• Increased female personnel by 23.1%.

Governance Achievements

• Implemented a Group Data Controller to ensure GDPR compliance.
• Adopted a data protection policy.
• Implemented the compliance antitrust programme to train personnel.
• Produced an Anti-trust Manual.
• Lazio Regional Court upheld appeals, annulling fines for alleged price-fixing agreements.

Climate Goals & Targets

Environmental Challenges

• Availability of suitable workforce, both in terms of numbers and professional qualifications.
• Risk of losing skills due to senior or specialist personnel leaving.
• Safety at work in the steel industry.
• Sourcing workers in local employment markets (Italy and Germany).
• Competition for qualified personnel in Germany.

Mitigation Strategies

• Investment in specialist training.
• Investment in human resources and welfare policies.
• Use of new automated technologies.
• Initiatives to involve students, partnerships with local job centers, and integration of refugees.
• Structured policy including initiatives with local job centers and non-profit organizations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier selection criteria based on reliability, quality, delivery timescales, and compliance with tax, environmental, and health & safety legislation. All suppliers must be familiar with the Feralpi Code of Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: UNI EN ISO 9001:2015, UNI EN ISO 14001:2015, OHSAS 18001, EMAS, ISO 50001

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

UN Sustainable Development Goals

• Goal 9
• Goal 11
• Goal 12
• Goal 13

Feralpi's initiatives contribute to these goals through quality products for infrastructure, process innovation, circular economy model, harmonious integration of premises, clean energy, community engagement, and strategies to contain energy consumption.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EMAS Italia 2018 prize for best multimedia environmental communication
• Klimaschutz Unternehmen award in Saxony
• The Industry Felix Award - Edition 2018 Competitive Lombardy

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 3% compared to 2018
• Reduced indirect emissions from electricity by 4% (location-based method) compared to 2018
• Increased hazardous waste recovery by 4 percentage points, from 76% in 2018 to 80% in 2019
• Recovered approximately 70,000 tonnes of asbestos at Ecoeternit

Social Achievements

• Launched WELFer, a flexible benefits system for employees
• Participated in the All-In project for social inclusion and multiculturalism
• Implemented the Sider+ project to increase the number of candidates for hire
• Conducted a workplace health and safety awareness campaign

Governance Achievements

• Implemented a new Governance Model on July 1, 2019
• Voluntarily joined the Corporate Governance Code for non-listed companies
• Adopted a specific procedure for handling reports of offenses and irregularities

Climate Goals & Targets

Environmental Challenges

• Weakness in the global steel industry in 2019, intensified by the COVID-19 pandemic
• Overcapacity in the steel industry
• Slowdown in downstream markets (particularly the automotive industry)
• Increased cost of raw materials
• Intensification of geopolitical tensions and Brexit
• Difficulties in sourcing labor in Riesa, Germany
• Need for advanced technical/specialist skills due to Industry 4.0

Mitigation Strategies

• Adopted a new Governance Model to improve competitiveness
• Invested in identifying internal synergies and orientating business units towards a wider range of products and services
• Upgraded existing plants and introduced new plants with higher innovation and reliability
• Invested in research and development, including Industry 4.0 strategies
• Secured a sustainability-linked loan from Bnl Gruppo Bnp Paribas to reduce greenhouse gas emissions
• Implemented digital awareness strategy to reduce the digital divide
• Developed various training programs to develop internal skills

Supply Chain Management

Supplier Audits: Over 350 Italian scrap suppliers completed sustainability questionnaires

Responsible Procurement

• Code of Ethics
• Sustainability questionnaires for key suppliers
• TENP platform for assessing scrap suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: UNI EN ISO 14001, EMAS, UNI EN ISO 9001, OHSAS 18001, ISO 50001

Third-party Assurance:

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Initiatives contribute to these goals through various environmental, social, and governance programs

Awards & Recognition

• Best Circular-Economy Performer award from Confindustria