Climate Change Data

Environmental Metrics

ESG Focus Areas

• Our people
• Responsible practices
• Environment
• Community involvement

Environmental Achievements

• Reduced total energy consumption by -3.8%
• Reduced total volume of water discharged by -16%
• Increased volume of wastewater analyses by +17%

Social Achievements

• Trust Index® of 71% (+3% compared with 2016)
• 90% of Camparistas believe the company is an excellent place to work
• Launched Campari Academy in several countries
• Implemented Smart Working guidelines
• Launched Welfare FAMILY program
• Raised over US$585,800 for charities during Negroni Week

Governance Achievements

• Implemented a whistleblowing service ('Campari Safe Line')
• Updated Supplier Code
• Aligned with GDPR regulations
• Completed a Self Risk Assessment (SRA) involving 100 Camparistas

Climate Goals & Targets

Environmental Challenges

• Potential instability in operating countries
• Dependence on consumer preference and spending
• Dependence on key customers
• Market competition
• Dependence on licenses
• Compliance with laws and regulations
• Tightening legislation in the beverage industry
• Product compliance and safety
• Environmental risks
• Environmental policy compliance
• Tax risks
• Cyber-security risks
• Exchange rate risks

Mitigation Strategies

• Constant monitoring of geopolitical environment
• Adapting sales strategies to anticipate market trends
• Monitoring key customer financial conditions
• Aggressive competitive strategies
• Code of Ethics and Business Conduct Guidelines
• Regular employee training
• Specific human rights policy
• Global antitrust compliance training
• Data Protection Officer (DPO) appointed
• Emergency plans and crisis management
• Compliance with regulations and standards
• Business continuity plans
• Global insurance policies
• Regular review of business strategy and tax policy
• Channel for reporting cyber attacks

Supply Chain Management

Supplier Audits: Approximately 400 production sites registered on Sedex

Responsible Procurement

• Supplier Code
• Sedex membership

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards

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

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Campari Group contributes to 11 of the 17 SDGs

Sustainable Products & Innovation

• Wild Turkey Longbranch
• SKYY Vodka Proudly American
• O’ndina Gin
• Averna Riserva Don Salvatore
• Campari Cask Tales

Awards & Recognition

• 'Logistics company of the year 2018'
• Campari Argentina named Great Place to Work 2018
• Campari Group earned Great Place to Work 2018-2019 certification in Italy

Environmental Metrics

ESG Focus Areas

• Inclusion, Equity & Diversity
• Responsible Drinking
• Environment (Energy, Water, Waste)

Environmental Achievements

• Not disclosed

Social Achievements

• Launched a new Inclusion, Equity & Diversity strategy
• Implemented responsible drinking educational sessions for 100% of employees
• Launched Employee Stock Ownership Plan (ESOP)

Governance Achievements

• Formalized sustainability commitments into a roadmap
• Established a Global Inclusion, Equity & Diversity Advisory Team
• Implemented a Global Strategy on Responsible Drinking

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impact on on-premise sales and Global Travel Retail
• Supply chain disruptions
• Malware attack compromising data

Mitigation Strategies

• Refocused brand-building investments on digital activations
• Developed alternative sourcing strategies for agave
• Implemented enhanced IT security measures

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code
• Co-investment agreements with agave farmers

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters impacting supply chains and customers

Transition Risks

• Increased taxation
• Supply chain volatility

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: EY Italy (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Campari Group contributes to 11 of the 17 UN SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Our People
• Responsible Practices
• Environment
• Community Involvement

Environmental Achievements

• Reduced greenhouse gas (GHG) emissions from direct operations by 27% compared to 2019.
• Reduced water usage by 37% compared to 2019.
• Reduced waste to landfill by 24% compared to 2020.

Social Achievements

• Launched the first Employee Stock Ownership Plan (ESOP) with 51.6% participation rate.
• Implemented a new global strategy to foster Diversity, Equity and Inclusion (DEI).
• 83% of Camparistas reported that this is a great place to work.

Governance Achievements

• No reports of bribery and corruption incidents.
• No reports of human rights violations.
• Updated Code on Commercial Communication with a focus on digital communication.

Climate Goals & Targets

Environmental Challenges

• Risks relating to the Campari Group’s dependence on consumer preferences and habits and propensity to spend.
• Risks relating to dependency on the sale of key products and the seasonality of certain Campari Group products.
• Risks relating to a decline in the social acceptability of Campari Group’s products or governmental policies against alcoholic beverages.
• Risks relating to adverse macroeconomic and business conditions and instability in the countries in which the Group operates.
• Risks relating to acquisitions.
• Risks relating to market competition and the consolidation of participants in the beverages industry.
• Risk of reputation and branding.
• Risks relating to the disruptions or termination of the Campari Group’s arrangements with the Group’s third-party manufacturers or distributors.
• Risks of pressure on prices and margins.
• Exchange-rate and other financial risks.
• Risk relating to an inability to attract and retain qualified personnel.
• Risk relating to unavailability and cost of materials.
• Risk related to climate change.
• Risk relating to disruption in information technology systems.
• Risk related to responsible supply chain.
• Tax risks and changes in fiscal regulations.
• Risk of failure to comply with laws and regulations.
• Risks relating to legislation on the beverage industry.
• Risk related to non-compliance with environmental regulations and policy.
• Risks relating to product compliance and safety.

Mitigation Strategies

• Leveraging a diversified portfolio of brands.
• Investing in products’ success and growth.
• Promoting responsible drinking.
• Constantly monitoring developments in the global geopolitical environment.
• Implementing integration plans and monitoring performance.
• Constantly investing in advertising and promotion initiatives.
• Implementing social media guidelines and an internal awareness initiative on social media security.
• Having licenses with several third-parties.
• Favourable sales mix by product and market/channel.
• Closely monitoring performance and key business drivers.
• Establishing talent reviews programmes, succession plans and retention plans.
• Keeping safety stocks available, making capital investments, and having contracts with multiple suppliers.
• Having emergency plans in place and continuously developing plans to deal with crises.
• Defining a cybersecurity roadmap and constantly executing additional controls and security audits.
• Implementing the Supplier Code and Sedex.
• Having a tax policy focused on compliance and proactive taxation.
• Having a Code of Ethics and Business Conduct Guidelines.
• Constantly monitoring changes in legislation.
• Having an environmental policy and a structure dedicated to environmental control.
• Conducting extensive quality controls.

Supply Chain Management

Responsible Procurement

• Supplier Code
• Sedex membership
• Co-investment model for agave.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Increased taxation

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, BRC/IFS/FSSC22000

Third-party Assurance: Ernst & Young S.p.A.

UN Sustainable Development Goals

• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through DEI strategy, renewable energy sourcing, responsible drinking initiatives, and GHG emission reduction targets.

Sustainable Products & Innovation

• The Notes Collection (non-alcoholic)

Awards & Recognition

• MSCI ESG rating upgrade from BBB to A.
• Camparino in World’s 50 Best Bars.
• Multiple awards for various brands.

Environmental Metrics

ESG Focus Areas

• Our People
• Responsible Practices
• The Environment
• Community Involvement

Environmental Achievements

• Reduced greenhouse gas emissions from direct operations by 4% compared to 2021 (existing plants only)
• Reduced injuries resulting in lost workdays by over 30% compared to 2021 (existing plants only)
• Reduced injury frequency rate by over 15% compared to 2021 (existing plants only)

Social Achievements

• Launched Campari University to strengthen Group positioning as a people development-driven organization
• 91% participation rate in the Camparista Survey
• 42% of new hires are women
• Injuries in the Group’s plants reduced by over 14% according to 79% of Camparistas
• Launched Bartender Hero, a global responsible serving training program in partnership with the International Bartender Association (IBA)

Governance Achievements

• No reports of bribery and corruption incidents in 2022
• No reports of human rights violations in 2022
• No critical concerns regarding internal controls communicated during the reporting period

Climate Goals & Targets

Environmental Challenges

• Persistent high inflation and disruptions in supply chains
• Heightened tensions and volatility in commodity and energy prices
• Emerging consumption trends
• Supply chain disruptions due to geopolitical tensions and increased inflation
• Risks relating to dependency on the sale of key products and the seasonality of certain Campari Group products
• Risks relating to a decline in the social acceptability of Campari Group’s products or governmental policies against alcoholic beverages
• Risks relating to acquisitions
• Risks relating to market competition and the consolidation of participants in the beverages industry
• Risk of reputation and branding
• Risks relating to the disruptions or termination of Campari Group’s arrangements with the Group’s third-party manufacturers or distributors
• Exchange-rate and other financial risks
• Risks of inflation and pressure on prices and margins
• Risk of inability to attract and retain qualified personnel
• Risks relating to unavailability and cost of materials
• Risk related to climate change and natural disasters
• Risk relating to disruption in information technology systems
• Risk relating to responsible supply chain and disruption in supply chain
• Risks of barriers to entry into new markets or development in already-guarded markets
• Human rights
• Corruption
• Tax risks and changes in fiscal regulations
• Risk of failure to comply with laws and regulations
• Data privacy and cyber security
• Risks relating to legislation on the beverage industry and the application of import duties
• Risk related to non-compliance with environmental regulations and policy
• Risk related to employees
• Risks relating to product compliance and safety

Mitigation Strategies

• Investments in products’ success and growth to increase brands value and the Group’s diversified portfolio of products and brands
• Initiatives to de-seasonalize the consumption moments of the main brands
• Constantly monitors regulatory changes, consumer trends at market level and promotes responsible drinking initiatives
• In-depth preliminary analyses supported by actual and prospective economic data to select acquisitions
• Constantly monitors the industry dynamics of mergers and acquisitions and the initiatives taken by competitors
• Social media guidelines and internal awareness initiative on social media security
• Signing of licensing agreements with various trusted third parties
• Closely monitors its performance and key business drivers by Region
• Continuously monitors its resource allocation and rising pricing opportunities
• Solid and collaborative relationships with the Group’s key suppliers
• Focus on accelerating investments to strengthen Campari Group brands and on the progressive containment of overhead costs
• Code of Ethics and Employees' and Human Rights Policy
• Talent reviews programmes, succession plans, and retention plans for key resources
• Safety stocks in key locations, capital investments to increase production capability, contracts with multiple suppliers
• Co-investment agreements with local agricultural producers to ensure an adequate supply of high-quality agave
• Reviewing procurement policies to maximize efficiency and collaboration with key suppliers
• Emergency plans and continuous development of plans to deal with crises
• Compliance with regulations and local and international standards, business continuity plans, back-up scenarios and global insurance policies
• Cybersecurity roadmap, additional controls and security audits
• Awareness campaigns to heighten employee awareness of cyber risks
• Supplier Code, Sedex membership, co-investment model to grow agave with local partners in Mexico
• Diversification of services and increased collaboration with strategic suppliers
• Manages relations with local communities in full respect of customs and traditions
• Specific policies (Employees' and Human Rights Policy, Code of Ethics, Business Conduct Lines, Supplier Code)
• Anti-Corruption Policy, Business Conduct Guidelines and ongoing training of employees
• 231 Model (Italy)
• Tax policy focused on compliance with applicable laws and regulations
• Transfer pricing policy based on the principle of at arm’s length transaction
• Regular review of business strategy and tax policy
• Code of Ethics, Business Conduct Guidelines and regular training of employees
• Specific policy on human rights
• New global anti-corruption and anti-bribery, as well as antitrust policies
• Environmental policy aimed at reducing environmental impacts
• Structure to control environmental pollution, waste, and water disposal
• Specific procedures to monitor safety in the workplace
• QHSE (Quality, Health, Safety & Environment) Policy
• Extensive quality controls and worldwide quality team
• Control procedures to ensure that products manufactured in Group plants are compliant and safe
• Insurance policies against product liability

Supply Chain Management

Responsible Procurement

• Supplier Code
• Sedex membership
• Global Procurement Policy
• Co-investment model for agave production

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (hurricanes)

Transition Risks

• Regulatory changes related to alcohol consumption
• Changes in consumer preferences related to health and wellness

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards

Certifications: ISO 14001, EMAS, ISO 50001, ISO 45001, BRC/IFS/FSSC22000

Third-party Assurance: Ernst&Young S.p.A. (limited assurance)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Initiatives related to diversity, equity and inclusion, renewable energy, responsible drinking, and emissions reduction contribute to these goals.

Sustainable Products & Innovation

• The Notes Collection (non-alcoholic expressions)

Awards & Recognition

• GEO Award
• ProShare Award
• Drinks International 2022 Brands Report awards for Appleton Estate
• 2022 San Francisco World Spirits Competition awards
• 2022 International Wine&Spirit Competition awards

Environmental Metrics

ESG Focus Areas

• Our People
• Responsible Practices
• Environment
• Community Involvement

Environmental Achievements

• Reduced greenhouse gas emissions intensity (kg of CO2/L) from direct operations by -47% compared to 2019
• Reduced GHG emissions intensity for total supply chain (kg of CO2/L) by -19% compared to 2019
• Used 93% renewable electricity across all its production sites worldwide
• Reduced water usage intensity by -54% (L/L) compared to 2019
• Reduced waste to landfill by -83% compared to 2022

Social Achievements

• Launched a new global culture activity, The Signature Mix, to explore and celebrate Campari Group culture.
• Launched a new onboarding experience for new Camparistas.
• Implemented one of the industry’s top workplace equity analysis platforms to address pay fairness and equal opportunities.
• Developed a new comprehensive Parental Leave policy.
• Expanded the range of Leadership and Management Development solutions available to Camparistas.

Governance Achievements

• Launched its first ESG share buyback program in 2021, followed by a second in 2022.
• Entered into a 3-year bilateral loan linked to the achievement of KPIs related to GHG emission intensity reduction and water usage intensity reduction in October 2022.
• Launched a sustainability-linked facility for a total amount of €800 million in 2023.
• Published new global policies dedicated to anti-corruption and anti-bribery, as well as antitrust in 2023.

Climate Goals & Targets

Environmental Challenges

• Elevated inflation rates and heightened tensions and volatility in commodity and energy prices.
• Shifts in consumption trends and escalating challenges posed by climate change.
• Social and political attention on alcohol abuse.
• Unfavorable economic situation in certain markets.
• Geopolitical uncertainty.

Mitigation Strategies

• Investing in ambitious sustainable strategic initiatives.
• Boosting organisation agility.
• Leveraging a diversified portfolio of brands.
• Monitoring macroeconomic scenario and consumer trends.
• Promoting responsible drinking initiatives.
• Developing initiatives to de-seasonalise consumption.
• Monitoring regulatory changes.
• Investing in products’ success and growth.
• Developing emergency plans, business continuity assessments, and backup scenarios.
• Establishing global insurance policies.
• Decarbonising production activities and the overall value chain.
• Managing water demand.
• Adopting a circular approach within production sites.
• Implementing new compliance controls through data analytics.
• Implementing a global stock count program.
• Implementing data analytics and process mining initiatives.

Supply Chain Management

Responsible Procurement

• Supplier Code
• Sedex membership
• Co-investment model with agave farmers
• Global Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, EMAS, ISO 50001, BRC/IFS/FSSC22000, ISO 45001

Third-party Assurance: Ernst&Young S.p.A. (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)

Initiatives contribute to these goals through renewable energy adoption, responsible sourcing, emissions reduction, gender equity programs, and employee well-being programs.

Sustainable Products & Innovation

• The Notes Collection (non-alcoholic expressions)

Awards & Recognition

• CDP 'A-' score for Climate Change