Climate Change Data

Environmental Metrics

ESG Focus Areas

• Promoting the Wellness lifestyle in the community
• Personal Wellness solutions
• Global leader in Wellness
• Lifetime customer care
• Corporate Governance System
• Employee wellbeing
• Environmental wellbeing
• Responsible supply chain management

Environmental Achievements

• Energy consumption down compared to 2018
• 1,820.7 tons of CO2 avoided thanks to new warehouse for finished products manufactured at the Slovak site
• 51% of eligible machines (sustainable refurbished products) put back on the market
• 250 tons of CO2 avoided contributing to a reduction in environmental impact and the use of raw materials with reusable containers and a consequent reduction in packaging material

Social Achievements

• Launched a new global platform on company training offering a mix of e-learning, accessible to all staff
• Set up “Skills School” for the practical training of production line operators
• Wellness Week held across the Romagna region with over 300 events focusing on awareness of the Wellness Lifestyle

Governance Achievements

• Technogym's Corporate Governance system conforms to the Code of Self-Governance for Listed Companies published by Borsa Italiana S.p.A., and to national and international best practices.
• Implemented an Enterprise Risk Management (ERM) system
• No verified episodes of corruption in 2019

Climate Goals & Targets

Environmental Challenges

• Inadequate management of waste
• High generation and inadequate containment of greenhouse gas emissions
• Land, subsoil and water contamination caused by production operations
• Accidents at production sites
• Inadequate management of information systems and information security
• Inadequate collection, storage and processing of personal data
• Loss of key skills for implementing the strategy

Mitigation Strategies

• Implemented ISO 14001 Environmental Management System
• Implemented ISO 9001, ISO 14001, OHSAS 45001 and ISO 50001 certifications
• Transferred warehouse for finished products to improve logistics
• Installed air conditioning system at Technogym S.p.A.
• Implemented data protection measures according to Regulation EU 2016/679
• Implemented training and development programs

Supply Chain Management

Supplier Audits: 26 ESG audits conducted in 2019

Responsible Procurement

• Compliance with current environmental and social laws
• Compliance with REACH and RoHS standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, OHSAS 45001 (transitioned to ISO 45001 in 2018), ISO 50001, ISO 13485

Third-party Assurance: Price WaterhouseCoopers S.p.A.

UN Sustainable Development Goals

• Goal 3

Contributes to achieving Goal 3 “Health and Wellbeing”, with specific reference to Target 3.4.

Sustainable Products & Innovation

• Self-powered machines
• Refurbished products

Environmental Metrics

ESG Focus Areas

• Wellness Lifestyle For All
• Responsible Innovation and Design
• Wellness for the Community

Environmental Achievements

• Reduced CO2e emissions (Scope 1) by 3% compared to 2021 (2,704 tonnes in 2022)
• 50% of eligible machines put back on the market as sustainable refurbished products (compared to 30% in 2021)
• Packaging paper and cardboard from recycled and FSC/PEFC/FITOK certified sources

Social Achievements

• 15,565 hours of training provided to branches and distributors
• Around 35,000 training sessions delivered to trainers worldwide
• 79% permanent contracts at Technogym EE (compared to 77% in 2021)
• 21.6% women on the Operational Committee (compared to 20.4% in 2021)
• 19 ESG audits carried out in 2022 (compared to 14 in 2021)
• 23% of suppliers ISO 9001 certified (compared to 21% in 2021)

Governance Achievements

• Diversity Policy of the Board of Directors and the Board of Auditors approved in 2022
• Diversity & Inclusion Policy for all employees prepared in 2022 and approved in 2023
• Sustainability Policy approved in 2021
• Sustainability Operating plan updated in 2022

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions are mentioned but not quantified.
• Climate change risks are mentioned but not specifically detailed.

Mitigation Strategies

• Strengthened commitment to managing waste from chemical substances and preparations in 2021
• Ongoing monitoring and reduction projects for energy consumption
• Development of alternative sourcing strategies (implied by focus on local suppliers)

Supply Chain Management

Supplier Audits: 19 audits in 2022

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• REACH and RoHS compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 13485, ISO 27001

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

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible Consumption and Production)

Promoting wellness lifestyle, creating sustainable cities, and responsible packaging management

Sustainable Products & Innovation

• Self-powered machines
• Sustainable refurbished products

Awards & Recognition

• Ecol Design Award 2021

Environmental Metrics

ESG Focus Areas

• Wellness Lifestyle for All
• Responsible Innovation and Design
• Wellness for the Community
• Climate Change
• Diversity and Inclusion
• Responsible Business Approach

Environmental Achievements

• Reduced Scope 1 emissions to 2,639 tonnes of CO2e in 2023 (compared to 2,704 tonnes in 2022)
• 50% of eligible machines reconditioned (sustainable refurbished products)
• Packaging paper and cardboard from recycled and FSC/PEFC certified sources
• New LED lighting system installed, reducing greenhouse gas emissions by nearly 60%

Social Achievements

• Launched “Chi si muove, si ama!” campaign to promote physical activity among 40-60 age group
• 14,992 training hours provided to Headquarters, subsidiaries, and distributors
• Approx. 45,000 training sessions delivered to trainers worldwide
• Diversity Policy of the Board of Directors and the Board of Auditors approved in 2022
• Diversity & Inclusion policy for all employees approved in 2023
• Health and Safety Policy approved in 2023
• New Supplementary Company Agreement signed, focusing on parental and family leave, medical check-ups, and welfare

Governance Achievements

• Diversity Policy of the Board of Directors and the Board of Auditors approved in 2022
• 14 ESG audits carried out in 2023
• Updated 231 Model to include whistleblowing regulations and new offenses
• Revised Code of Ethics to include sustainability, diversity, and inclusion commitments

Climate Goals & Targets

Environmental Challenges

• Increased waste produced (+27% compared to 2022)
• Supply chain disruptions (implied due to macroeconomic situation in China)

Mitigation Strategies

• Ongoing monitoring and improvement efforts to reduce waste
• Structured ESG audit process on the supply chain to ensure consistency between the sustainable development strategies of its suppliers
• Initiatives to reduce energy consumption through the installation of LED lights and waste reduction activities
• Transferring the warehouse for finished products from Portobuffolè to Malý Krtíš to improve logistics and reduce transport emissions

Supply Chain Management

Supplier Audits: 14 in 2023

Responsible Procurement

• Supplier Code of Conduct
• Compliance with REACH and RoHS regulations
• ESG assessment of suppliers
• Use of recycled materials (aluminum, paper, cardboard)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 13485, ISO 27001

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

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)

Promoting wellness lifestyle, reducing environmental impact, and supporting local communities

Sustainable Products & Innovation

• Still Novo (refurbished products)
• Self-powered machines

Awards & Recognition

• EcoVadis Silver Medal
• Ecol design Award

Environmental Metrics

ESG Focus Areas

• Wellness Lifestyle
• Responsible Innovation and Design
• Wellness for the Community
• Environmental Management
• Occupational health and safety

Environmental Achievements

• Adopted an Environmental Management System certified according to ISO 14001 (since 2003 for Technogym S.p.A., since 2015 for Technogym EE, and also for Technogym UK).
• ISO 45001 certification (since 2018) for health and safety management system covering all Technogym S.p.A. sites, the Malý Krtíš (Slovakia) plant and the Technogym UK branch.

Social Achievements

• Launched 'Working 4 Wellness' (W4W) employee well-being program, including corporate wellness centers, restaurant service, and various employee benefits.
• Global partner of 'Exercise is Medicine' initiative for 14 years.
• Promotes 'Wellness Valley' project to improve the quality of life in the Romagna region.
• Average of 2,301 employees (69 managers, 1,606 office staff, 626 blue-collar workers).

Governance Achievements

• Established a Sustainability Policy with three key commitments by 2025.
• Prepared a Non-Financial Statement in accordance with Italian Legislative Decree 254/2016 and GRI Standards 2021 (limited assurance by PricewaterhouseCoopers S.p.A.).
• Will draft sustainability report in compliance with the Corporate Sustainability Reporting Directive (CSRD) starting from the end of 2024.

Climate Goals & Targets

Environmental Challenges

• Financial market volatility.
• Exchange rate risk due to international operations.
• Price risk from international material purchases.
• Risks related to supplier relations.
• Cybersecurity risks.
• Geopolitical tensions impacting supply chains and raw material prices (Ukraine conflict, Middle East conflicts).
• Potential restrictions on imports/exports and cash flow controls in international operations.

Mitigation Strategies

• Policies to monitor potential financial risks and adopt adequate mitigation measures.
• Internally developed Risk Score Rating system and credit insurance policies.
• Centralized treasury management to minimize liquidity risk.
• Foreign currency forward purchase agreements to hedge price risk.
• Long-term relationships with key suppliers.
• Supply chain assessment process involving on-site audits.
• Compliance with REACH and RoHS directives.
• Governance structure and cyber risk management model based on international standards.
• 24-hour Security Operation Center (SOC) service.
• Cybersecurity training for all Technogym S.p.A. staff.
• Geographically diverse operations and product diversification to mitigate market risk.
• Constant monitoring of developments in the conflict in Ukraine and resulting embargoes on the Russian market.

Supply Chain Management

Responsible Procurement

• Close collaboration with suppliers.
• Periodic performance checks and controls regarding compliance with environmental and social regulations.
• Structured supply chain assessment process involving on-site audits.
• Compliance with REACH and RoHS directives.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 27001, ISO 21001, ISO 13485

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

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)

Technogym's business model and initiatives contribute to these goals through promoting physical exercise, healthy lifestyles, and sustainable practices.