Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Product Innovation and Eco-design
• Protection and Development of Human Capital
• Responsible Business Management
• Data Privacy and Security
• Consumer Health and Safety
• Sustainable Supply Chain Management
• Health and Safety

Environmental Achievements

• Reduced CO2 emissions by approximately 9,900 tonnes through the use of 100% market-based renewable energy at almost all Italian and Polish production sites.
• Further reduced environmental footprint by 399 tonnes through energy efficiency projects.
• 100% of the “Premix” range of motors certified to use a 30% methane/hydrogen blend.
• Achieved approximately 50% certification of the entire “Premix” range for 100% hydrogen use.

Social Achievements

• Increased percentage of women in the workforce from 39% in 2021 to 45% in 2022.
• Increased average training hours per employee from 16.8 to 20 hours.
• Defined and shared the first “Elica Group Supplier Code of Conduct” with suppliers.
• Achieved ISO 45001:2018 certification for the Mexican site in Querétaro.

Governance Achievements

• Adopted the Corporate Governance Code of January 2020.
• Established a monitoring process to analyze potential repercussions of the Russian-Ukrainian War on operating risks.
• Paid a dividend of approximately Euro 3.8 million.

Climate Goals & Targets

Environmental Challenges

• Rising energy and raw material prices due to the ongoing global health emergency and the Russian-Ukrainian War.
• Supply chain disruptions post-Covid.

Mitigation Strategies

• Adopted a monitoring process to analyze potential repercussions of the conflict on business and identify possible mitigation actions.
• Undertook supply chain relocation in Europe, focusing on raw material sourcing.
• Relocated some supplies linked to the shift of production lines from Italian to Polish plants.
• Implemented energy efficiency projects to mitigate rising energy costs.

Supply Chain Management

Supplier Audits: 118 suppliers assessed (approx. 44% of total)

Responsible Procurement

• Supplier Code of Conduct
• Periodic audits of suppliers
• Preference for suppliers with ISO certifications (9001, 14001, 45001, 50001, FSC, etc.)

Climate-Related Risks & Opportunities

Physical Risks

• Interruption of production due to extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives related to energy efficiency, renewable energy, sustainable packaging, employee training, and supply chain sustainability contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient products
• Products with “Brushless” motors
• Hydrogen-ready motors

Awards & Recognition

• Conai “Ecopack” Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular economy and waste management
• Growth and development of human capital
• Health and Safety
• Human rights
• Social Impacts
• Sustainable supply chain management
• Data privacy and security
• Combatting corruption
• Product innovation and eco-design

Environmental Achievements

• Achieved 100% use of green energy at all Italian plants.
• Reduced total emissions by over 600 tonnes of CO2.
• Completed the first greenhouse gas (GHG) emissions inventory following the ISO 14064-1 standard for the entire Group.
• Substantial reduction in the use of Expanded Polystyrene (EPS) packaging components, resulting in a significant decrease in emissions (approximately 150 tonnes of CO2).

Social Achievements

• Increased training hours per capita from 20 hours in 2022 to 39 hours in 2023.
• Extended ISO 45001:2018 certification to the Jelcz Laskovice plant in Poland.
• Improved outgoing employee turnover by 6.5 percentage points compared to 2022.
• Elica Americas received special certification (STPSEQ) for labor equality projects and an award from the Mexican Social Security Institute (IMSS).

Governance Achievements

• Adopted the Corporate Governance Code of January 2020.
• Regularly updates the 231 Organisational Model and Group’s Ethics Code.
• Adopted a new Group whistleblowing policy and dedicated internal procedure in implementation of Legislative Decree No. 24/2023.
• Adopted a new Group Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Persistent decline in demand due to economic slowdown, high cost of money, and geopolitical tensions.
• Weak market demand and reduced consumer purchasing power.
• Risk of human rights violations and poor working conditions at suppliers.
• Failure to attract and retain talent, particularly in Mexico and Poland.
• Corruption risks throughout the value chain.
• Cyber security risks and data breaches.

Mitigation Strategies

• Continued cost control and operational flexibility.
• Expansion of product offerings and distribution network.
• Strengthening of multi-sourcing in specific material categories.
• Monitoring potential consequences of the Russian-Ukrainian conflict.
• Implementation of specific induction and training programs.
• Conducting operational, financial, and compliance-related audits.
• Adoption of a new Group whistleblowing policy.
• Strengthening of IT infrastructure and security measures.

Supply Chain Management

Supplier Audits: ESG audits conducted during 2023; 240+ suppliers involved in ESG activities; 195 completed ESG Survey (73% response rate); 135 signed Code of Conduct (56%).

Responsible Procurement

• Elica Group Supplier Code of Conduct
• Monitoring of supplier certifications (ISO 9001, ISO 14001, ISO 45001, ISO 50001, FSC, etc.)
• Vendor Rating reports
• Improvement plans for suppliers
• Annual audit plan

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Initiatives to increase energy efficiency, reduce GHG emissions, and promote sustainable products contribute to these goals.

Sustainable Products & Innovation

• LHOV cooking system
• Products with “Brushless” motors
• Motors for hydrogen use
• High-efficiency heat pump motors

Awards & Recognition

• Award from the Mexican Social Security Institute (IMSS)