Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Economic Performance
• Human Resources
• Customer Satisfaction
• Supplier Relations
• Community Engagement

Environmental Achievements

• Obtained ISO 14001:2004 certification on May 31, 2013 for Environmental Management Systems.
• New Technical Centre designed to minimize primary energy consumption and reduce it by 60%.
• Solar panel plant at New Technical Centre produced 229,608 kWh, approximately 10% of total energy consumed.

Social Achievements

• Launched "Working, Innovating and Growing in the Landi Group" managerial development project.
• Established "Landi Renzo Corporate University" for research, technological innovation, and managerial skills development.
• 96% of employment contracts are for an indefinite period.

Governance Achievements

• Subscribed to the Corporate Governance Code by the Corporate Governance Committee of Listed Companies.
• Established internal committees (Remuneration, Control & Risks, Transactions with Related Parties).

Climate Goals & Targets

Environmental Challenges

• Weak economic recovery in Western Europe and political instability in other regions negatively impacted economic results.
• Drop in aftermarket demand due to lower consumer spending.

Mitigation Strategies

• Established two corporate partnerships in India and Uzbekistan.
• Acquired 70% of Emmegas S.r.l. and completed acquisition of Safe S.p.A.'s compressor business branch.
• Continued focus on technological innovation in environmental sustainability solutions.

Supply Chain Management

Responsible Procurement

• Assessment of economic, organizational, and social policies regarding safety and environmental sustainability during supplier selection.
• Use of evaluation questionnaires including social and environmental issues.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and alternative fuels.

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001:2004 (Landi Renzo S.p.A.), ISO 9001 (Landi Renzo Italian Network), OHSAS 18001:2007 (Landi Renzo S.p.A. and Lovato Gas S.p.A.)

Third-party Assurance: KPMG S.p.A. (limited assurance)

Sustainable Products & Innovation

• LPG and methane gas systems
• Dual Fuel technology

Awards & Recognition

• Finalist of the European Business Awards (EBA)

Environmental Metrics

ESG Focus Areas

• Sustainable mobility
• Environmental protection
• Social responsibility

Environmental Achievements

• Major primary energy savings obtained thanks to photovoltaic systems installed on the roofs of the corporate building, producing 377,581 kWh in 12 months reducing CO2 emissions into the atmosphere by 162,359 tons.

Social Achievements

• Launched Gas Specialist project to promote the professionalism and experience of Landi Renzo fitters and create a network of highly specialised workshops.
• 116 training days organized in 2016 involving 642 technical fitters for a total of 15,666 hours. Employee satisfaction rating of 3.70 on a scale from 1 to 4.

Governance Achievements

• Appointed Cristiano Musi as General Manager and future CEO to set up a restructuring plan to re-launch the Group.
• Published the 2015 Sustainability Report to strengthen dialogue with stakeholders.

Climate Goals & Targets

Environmental Challenges

• Significant decline in revenue compared with the previous year, resulting in a loss of Euro 26,004 thousand and a decline in the Net Financial Position to Euro 75,716 thousand.
• Difficult market conditions, particularly in America and the after-market channel.
• Reduction in the overall workforce of 65 persons (-7.7%) compared to the end of the previous year.

Mitigation Strategies

• Launched a financial structure optimization project with Mediobanca as financial advisor.
• Defined an agreement with the banking sector to reschedule debt and repayment installments.
• Controlling shareholders committed to making a total contribution of Euro 8,866,500.00 for a future capital increase.
• Share capital increase of Euro 15,000,000.00 planned by 31 December 2018.
• Amendments to bond regulations submitted to Bondholders, including rescheduling repayment and a temporary reduction of the interest rate.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• LPG pressure reducers in the version for turbo engines
• Auto-calibration software system
• Landi Renzo App
• Emulation software system on direct injection engines
• More performing electronic exchange models for the gas control system

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Health and Safety at the workplace
• Product quality, reliability and safety
• Offer of eco-efficient products
• Segment leadership
• Customer Satisfaction

Environmental Achievements

• Approximately 227 thousand tonnes of CO2 saved in a year by using methane systems and 67 thousand tonnes of CO2 with LPG fuel systems.
• Increased electricity production from photovoltaic systems due to favorable weather conditions.

Social Achievements

• Launched employee well-being program with medical insurance plan and employee support portal.
• Established incentive scheme to involve and motivate individuals and recognize the achievement of shared objectives.

Governance Achievements

• Updated Governance Model in accordance with Legislative Decree 231/2001 to include corporate liability for environmental crimes and anti-corruption provisions.
• Established a Remuneration Committee to formulate proposals for the Board of Directors on remuneration for the Managing Director and other directors.

Climate Goals & Targets

Environmental Challenges

• Complex market situation leading to redundancy schemes.
• Risks linked to employees engaged in production activities (mechanical and chemical risks, manual handling of loads).
• Risks related to personnel management (restructuring activities, transparency in candidate identification, skills assessments).
• Environmental risks (emissions into the atmosphere, wastewater, consumption of resources, sound and electromagnetic pollution).

Mitigation Strategies

• Implemented redundancy schemes (short-working and lay-offs) to achieve cost reduction targets.
• Adopted health and safety policy and management system (HSMS) in accordance with OHSAS 18001:2007.
• Focused on relations with employees and trade unions to reduce risk to employees involved in restructuring activities.
• Implemented actions to contain environmental risks (e.g., using technologically-advanced vehicles, video-conferencing).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier assessment and qualification process, monitoring performance levels, ISO 9001 certification required for OEM goods.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 9001, ISO/TS 16949, IATF 16949 (some companies), OHSAS 18001 (some companies)

Third-party Assurance: PricewaterhouseCoopers S.p.A. (limited review)

Sustainable Products & Innovation

• CNG and LPG systems, dual fuel technology, LNG systems.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (specific figures not clearly stated, but a decrease is mentioned in relation to electricity consumption due to smart working during the COVID-19 pandemic)
• Increased renewable energy production from solar power systems at Via Nobel and Via dell’Industria sites

Social Achievements

• Launched employee well-being program including additional COVID-19 insurance coverage for Italian employees
• Continued investment in employee training (5,473 hours in 2020)

Governance Achievements

• Updated the Organizational, Management and Control Model (231 Model) to include recent legislative changes
• Maintained ISO 14001 and ISO 45001 certifications

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, training, and supplier audits
• Collapse of the recycled paper and cardboard market
• Risks related to employee health and safety, personnel management, environmental protection, corruption, human rights, and supply chain

Mitigation Strategies

• Implemented COVID-19 safety protocols, including smart working arrangements
• Continued commitment to waste sorting and recycling despite market challenges
• Implemented OHSMS (Occupational Health and Safety Management System) and policies to address health and safety risks
• Established whistleblowing process to address corruption risks
• Implemented controls throughout the supply chain to mitigate risks

Supply Chain Management

Supplier Audits: 2 audits conducted in 2020

Responsible Procurement

• Supplier selection based on quality, financial soundness, and reputation
• ISO 9001 certification required for most suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and hydrogen technologies

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers S.p.A. (Limited assurance)

UN Sustainable Development Goals

• SDG 11 (Sustainable cities and communities)
• SDG 13 (Climate action)

Company's mission and business contribute to these goals through eco-sustainable mobility solutions

Sustainable Products & Innovation

• LPG and CNG conversion systems
• Hydrogen fuel systems

Awards & Recognition

• EcoVadis Gold Medal for sustainability

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Hydrogen
• Renewable Natural Gas (RNG)
• Sustainable Mobility

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Competition from local LPG/CNG/RNG/LNG kits development
• Increasing penetration of EV in the passenger segment
• Vulnerability to geopolitical situations in specific markets
• Client concentration risk in the Green Transportation division

Mitigation Strategies

• Strategic acquisitions (Metatron and Idro Meccanica) to expand into high-growth segments (mid/heavy-duty vehicles and hydrogen)
• Capital increase to strengthen financial structure
• Focus on improving profitability through cost cutting and price increases
• Strengthening partnerships with OEMs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Growth in hydrogen and renewable natural gas markets

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

The company's focus on hydrogen and renewable natural gas contributes to these goals.

Sustainable Products & Innovation

• Hydrogen components and systems for mid/heavy-duty vehicles
• Compressors for CNG/RNG and hydrogen

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Sustainable Mobility
• Human Rights
• Supply Chain Responsibility

Environmental Achievements

• Reduced HFC emissions drastically due to improved air conditioning maintenance.
• Increased recycling of waste materials.
• Implemented energy efficiency measures, including solar power systems.

Social Achievements

• Launched employee well-being program including smart working policies and team building activities.
• Improved training programs with a focus on managerial and safety training.
• Co-opted Annalisa Stupenengo as Chief Executive Officer, demonstrating commitment to gender diversity.

Climate Goals & Targets

Environmental Challenges

• Unfavorable sales mix in Green Transportation segment.
• Reduction in Clean Tech Solutions segment volumes.
• Geopolitical tensions impacting markets (especially Eastern Europe and Latin America).
• Increased inflation and interest rates.
• Supply chain disruptions due to raw material shortages.
• Climate change risks (physical and transition).

Mitigation Strategies

• Renegotiated sales prices with main OEM customer.
• Developed alternative sourcing strategies.
• Implemented financial optimization project including capital strengthening.
• Developed a new 2024-2028 business plan.
• Strengthened management structure.
• Increased insurance cover for product liability.
• Climate Risk Self-Assessment conducted.

Supply Chain Management

Supplier Audits: 2 audits in 2023

Responsible Procurement

• Supplier rating and monitoring process.
• Requirement for ISO 9001 certification (or audit for non-certified suppliers).
• Inclusion of ethical, social, and environmental considerations in supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations.

Transition Risks

• Regulatory changes
• Market shifts towards electric vehicles.

Opportunities

• Development of energy-efficient products and hydrogen solutions.

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001:2015, ISO 45001:2018, IATF 16949

Third-party Assurance: PricewaterhouseCoopers S.p.A. (Limited Assurance)

UN Sustainable Development Goals

• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

The Group's mission and business contribute to sustainable mobility and climate action.

Sustainable Products & Innovation

• New electronic platforms for direct and indirect injection systems.
• 100% hydrogen compression systems.
• Hydrogen fuel systems using latest generation mechatronic pressure regulators.

Awards & Recognition

• BFWE Innovation Award
• Best Innovative Project at the Piacenza Hydrogen Expo

Environmental Metrics

ESG Focus Areas

• Climate change

Climate Goals & Targets

Environmental Challenges

• Delays in certain projects relating to hydrogen business products.
• Slowdown in the receipt of orders in the early months of the half-year period, especially in the North America area.
• Increased incidence of fixed costs and direct costs that cannot be cut in the Clean Tech Solutions segment.
• Russia-Ukraine conflict (indirect impacts on gas and energy costs, raw material procurement).
• Israel-Hamas conflict (indirect impacts on supply chain, increased transport costs).

Mitigation Strategies

• Negotiations with the banking sector to redefine medium/long-term loan agreements.
• Financial optimization project (capitalization through share capital increase, debt rescheduling).
• Policies undertaken by the management to optimize inventories.
• New agreements with strategic suppliers.
• Recourse factoring assignments.
• Early repayment of temporary investments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

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

Sustainable Products & Innovation

• Systems and components for gas, biomethane and hydrogen.
• New systems for the OEM - Mid & Heavy Duty channel.
• New hydrogen and biomethane products for the Clean Tech Solutions segment.