Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 8%
• Reduced water consumption by 13.51%
• Reduced total waste by 14%

Social Achievements

• Launched "Mukki Bimbo" growth milk for children aged 1-3 years in collaboration with Meyer Children's Hospital.
• Maintained low employee turnover (1.72%).
• Supported numerous community initiatives in health, social, cultural, and sports areas.

Governance Achievements

• Adopted a Code of Ethics and an organizational, management, and control model in accordance with Legislative Decree 231/2001.
• Obtained certifications: UNI EN ISO 9001:2008, UNI EN ISO 22000:2005, BRC, IFS, UNI CEI EN ISO/IEC 17025:2005, BS OH SAS 18001:2007, UNI EN ISO 14001:2004, SA 8000:2008.

Climate Goals & Targets

Environmental Challenges

• Decreased milk consumption due to economic crisis.
• Increased raw material prices due to speculation and unfavorable weather conditions.
• Difficult negotiations with large-scale retailers due to economic crisis and new payment regulations.

Mitigation Strategies

• Focused on high-quality, locally sourced milk to build customer loyalty and product distinctiveness.
• Improved supply chain relationships.
• Implemented efficiency and cost-cutting measures.
• Launched new Tuscan products and specialized products.

Supply Chain Management

Supplier Audits: 100% of suppliers conform to food safety regulations.

Responsible Procurement

• Focus on local Tuscan milk suppliers.
• Strict quality controls throughout the supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Increased raw material costs due to unfavorable weather conditions.

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: UNI EN ISO 9001:2008, UNI EN ISO 22000:2005, BRC, IFS, UNI CEI EN ISO/IEC 17025:2005, BS OH SAS 18001:2007, UNI EN ISO 14001:2004, SA 8000:2008

Third-party Assurance: No third-party assurance

Sustainable Products & Innovation

• Mukki Bimbo milk
• Selezione Maremma milk
• 100% Tuscan egg line

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by -8.9%
• Completed the introduction of LED lamps for lighting in all production areas, reducing electricity consumption by 40%
• Implemented a wastewater treatment plant, reducing the pollutant load by approximately 60%

Social Achievements

• Launched the "Mukki va a scuola" project for elementary school classes in the province of Pistoia, focusing on environmental and nutritional themes.
• Maintained low accident rates (6 accidents in 2014)
• Continued support for the Meyer Children's Hospital Foundation and other social initiatives.
• Implemented a specific program for the selection and management of sponsorship requests.

Governance Achievements

• Adopted a Code of Ethics and an organizational, management, and control model in accordance with Legislative Decree 231/2001.
• Formalized adherence to the Protocol of Legality between the Ministry of the Interior and Confindustria.
• Developed and adopted a Protocol for Social Responsibility and a Charter of Commitments based on the principles of UNI EN ISO 26000.

Climate Goals & Targets

Environmental Challenges

• Decreased consumer demand for dairy products due to the economic crisis.
• Fluctuations in the price of raw milk due to speculation and international market trends.
• High pressure from promotional activities in the market.

Mitigation Strategies

• Implemented cost-cutting measures and efficiency improvements.
• Strengthened relationships with customers and the agricultural sector.
• Accelerated projects and investments.
• Developed new products and expanded into new markets (national and international).

Supply Chain Management

Supplier Audits: 100% of suppliers conform to food safety regulations.

Responsible Procurement

• Focus on local suppliers, particularly in Tuscany.
• Selection of suppliers based on food safety standards and ethical considerations.
• Adherence to the Protocol of Legality for supplier selection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1 level A (with some G4 updates)

Certifications: UNI EN ISO 9001:2008, UNI EN ISO 22000:2005, BRC, IFS, UNI CEI EN ISO/IEC 17025:2005, OHSAS 18001:2007, UNI EN ISO 14001:2004, SA 8000:2008, FSSC 22000

Third-party Assurance: DNV GL (for Social Accountability and some environmental aspects), KPMG S.p.A (for financial statements)

Sustainable Products & Innovation

• Yogurt made with Mugello milk.

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Climate-related risk
• Social Responsibilities

Governance Achievements

• Percentage of female directors 42.9% (3 out of 7)
• Percentage of independent directors 28.6% (2 out of 7)

Climate Goals & Targets

Environmental Challenges

• Difficulties in integrating Newlat dairy activities
• Potential rise of the milk price
• Limited free float
• Prolonged lockdowns depressing the Ho.re.ca distribution channel and changing consumer habits
• Partnership with Zerbinati not working, quality problems with salads

Mitigation Strategies

• Revamp of the Turin plant and new warehouse (completion in July)
• Agreement with Tuscan milk producers to stabilize fresh milk price

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Signed an agreement with Tuscan milk producers for the three-year period 2021-2023, establishing an agreement on the price of milk from the stable, consolidating the partnership between industry and agriculture and creating stability for all farms that supply CLI.

Governance Achievements

• Approved the latest version of the "Organisation, Management and Control Model" pursuant to Italian Legislative Decree no. 231/2001 on March 1, 2018.
• Appointed a Financial Reporting Officer on May 4, 2021.

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the price of raw material milk.
• High level of competitiveness in the food & beverage market.
• Increased competitiveness of companies that produce private label products.
• Increasing prevalence of online sales.
• Frequent promotional campaigns with significant discounts.
• Consolidation of existing operators in the mass distribution channel.
• Increase in costs of supplying goods and services, especially raw materials, packaging, and utilities.

Mitigation Strategies

• Entered into three-year agreements with suppliers in Mugello to allow for better financial and operational planning.
• Increased industrial efficiency and improved production capacity while reducing overheads.
• Developed unique products to face competition.
• Reviewed contracts with customers starting in 2022 to address increased raw material costs.
• Improved personnel costs as a result of some retirements.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Potential impacts on supply chain due to climate events affecting agriculture and livestock breeding.

Transition Risks

• Transition of business to a green economy.

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Waste management (circular economy)
• CO2 emissions reduction
• Supply chain management and human rights

Environmental Achievements

• Reduced CO2 emissions (specific figures not provided, but mentioned as a goal and ongoing effort)
• Improved waste and scrap management, favoring reuse and recycling

Social Achievements

• Initiatives to ensure a safe work environment for employees (aiming to reduce workplace injuries)
• Monitoring of supply chain practices to respect and protect human rights

Governance Achievements

• Implementation of an updated Organisational Model pursuant to Italian Legislative Decree no. 231/2001 (2022)
• No reports of non-compliant behavior or violations of the Code of Ethics received during the year

Climate Goals & Targets

Environmental Challenges

• Fluctuation in the price of raw material milk
• High level of competitiveness in the food & beverage market (private labels, online sales, promotions)
• Climate change (physical risks and transition risks)

Mitigation Strategies

• Three-year agreements with suppliers in Mugello for better planning
• Negotiating prices at best market conditions for purchases outside the main supply channel
• Increasing industrial efficiency and improving production capacity while reducing overheads
• Contingency procurement plans to mitigate climate change impacts on organic goods
• Credit insurance policies to mitigate credit risk

Supply Chain Management

Responsible Procurement

• Checking practices adopted in the management of the supply chain, aiming to respect and protect human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, water scarcity, high temperatures

Transition Risks

• Regulatory changes, market shifts