Climate Change Data

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Ethics, Business Integrity and Compliance
• Economic and Financial Results and Creation of Value
• Sustainable Management of the Supply Chain
• Human Rights
• Employee Management and Development and Talent Management
• Company Welfare Systems
• Occupational Health and Safety
• Diversity, Inclusion and Non-discrimination
• Direct Environmental Impacts
• Research and Development
• Customer Satisfaction, Customer Relation Management
• Responsibility, Quality and Safety of the Supplied Products

Environmental Achievements

• Saved 422 GJ (57 tons of CO2) through various programs and initiatives to reduce consumption and/or improve efficiency.
• ISO 14001 certification obtained for the production plants of Lainate and Avezzano.

Social Achievements

• 99.3% of the total workforce consisted of employees with permanent contracts.
• 17 internship opportunities/school-work alternation projects were offered.
• Approximately 10,967 hours of training provided in 2019 (average of 11 hours per employee).
• 30% of total workforce are women.

Governance Achievements

• Adopted an Anti-Corruption Code, a Code of Business Conduct, and a Supplier Code of Conduct at the Group level.
• Updated Organisational, Management and Control Model pursuant to Italian Legislative Decree 231/2001 (version no. 12).

Climate Goals & Targets

Environmental Challenges

• Potential effects of the coronavirus pandemic on financial statements, environmental, and social aspects.
• Potential delays in production planning and scheduling due to temporary closures of companies in the Group’s value chain.

Mitigation Strategies

• Constant monitoring of the situation.
• Remote smart working procedures where possible.
• Donation of Euro 0.5 million to research institutes and Civil Protection to combat the coronavirus.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• SAES Group Supplier Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Significant meteorological events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (in accordance - Core)

Certifications: ISO 9001 (5 companies), ISO 14001 (2 production sites), IATF 16949 (Lainate and Avezzano plants), ISO 13485 (Memry Corp. plants)

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-sustainable food packaging

Awards & Recognition

• German Innovation Award (2012)

Environmental Metrics

ESG Focus Areas

• Business Ethics and Compliance
• Creating Shared Value
• Human Capital Management and Employee Development
• Employee Well-being
• Diversity & Inclusion
• Occupational Health and Safety
• Product Safety and Quality and Customer Satisfaction
• Data Security and Cybersecurity
• Responsible Management of the Supply Chain
• Management of Energy Consumption, CO2 Emissions and Climate Change
• Waste and Water Resource Management
• Product Sustainability and Circular Economy

Environmental Achievements

• 100% of the electricity purchased by the Group's Italian companies comes from renewable sources
• 53 t CO2 saved at Lainate and Avezzano sites and Spectra-Mat, Inc. thanks to relamping
• 36% of the waste produced by the Group intended for recycling or other recovery operations (63% at the Lainate site)

Social Achievements

• Continued process of creating a culture of Diversity & Inclusion through initiatives to raise awareness on issues related to non-discrimination and equal opportunities
• 99.7% of the total workforce consisted of employees with permanent contracts
• Approximately 9,777 hours of training in 2022 (8 hours per capita)

Governance Achievements

• Group's Corporate Governance system is in line with the recommendations contained in the new Corporate Governance Code
• Adoption of an Anti-Corruption Code, a Code of Business Conduct and a Supplier Code of Conduct at the Group level
• No critical issues were reported to the Board of Directors during 2022 regarding whistleblowing

Climate Goals & Targets

Environmental Challenges

• Russia-Ukraine conflict's indirect effects on energy and supply chains, leading to increased costs and delays in component supply
• Potential impact of climate change consequences on the SAES Group's production sites and value chain
• Increasing attention paid to energy transition and environmental protection issues, potentially affecting markets and requiring changes in production processes

Mitigation Strategies

• Cautious suspension of all commercial activities towards Russia
• Better inventory management and geographical diversification of supplies
• Specific business continuity procedures established to cover production sites and processes most exposed to catastrophic events
• Diversification of product and customer portfolio and supply sources
• Implementation of energy saving projects and periodic review of price lists

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and exacerbation of weather events causing damage to production sites

Transition Risks

• Regulatory developments in the automotive sector affecting the speed of transition from combustion engines to hybrid and electric engines

Opportunities

• Opportunities in sustainable packaging

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, IATF 16949, ISO 13485

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

Sustainable Products & Innovation

• Recyclable or compostable flexible packaging solutions
• Products with high barrier properties in a very limited thickness

Environmental Metrics

ESG Focus Areas

• Business Ethics and Compliance
• Creation of Shared Value
• Sustainable Management of the Supply Chain
• Enhancement, Involvement and Development of Human Capital
• Occupational Health and Safety
• Diversity and Inclusion
• Safety and Quality of Products
• Data Security and Cybersecurity
• Management of Energy Consumption and Emissions
• Water Resource Management
• Waste Management
• Product Sustainability and Circular Economy
• Customer Satisfaction

Environmental Achievements

• Reduced total energy consumption by 18% compared to 2022 (like-for-like basis).
• Reduced natural gas consumption by 22% compared to 2022.
• Reduced electricity consumption by 15% compared to 2022.
• Saved 1,977 GJ (equal to 174 tons of CO2) through relamping interventions.
• 100% of electricity purchased by Italian companies came from renewable sources.
• Emissions related to methane combustion of all Italian Group companies offset as of October 2023.
• 37% of waste produced by the Group is destined for recycling or other recovery operations (63% at the Lainate site).
• SAES Coated Films produces and promotes recyclable or compostable flexible packaging solutions.

Social Achievements

• Launched RedZone by SAES, supporting innovative start-ups.
• Implemented Agile Work program.
• Organized flu vaccination campaign.
• Offered 1 internship/school-work alternation project opportunity.
• 99.5% of the total workforce had permanent contracts.
• Provided 7,258 hours of training with a per capita average of about 11 hours.
• 92% of employees received regular appraisals of their performance and career advancement possibilities.

Governance Achievements

• Updated the Organisational, Management and Control Model (pursuant to Italian Legislative Decree 231/01).
• Updated the Code of Ethics.
• Updated the Whistleblowing procedure.
• Integrated ESG objectives into the Remuneration Policy for 2024.
• Board of Directors consisted of 10 members, six men and four women.

Climate Goals & Targets

Environmental Challenges

• Increased frequency and exacerbation of weather events.
• Potential impacts of climate change on the supply chain.
• Regulatory developments in the automotive sector.
• Non-compliance with occupational health and safety regulations at SAES Coated Films (Fire Prevention Certificate).
• Exceeding of legal limits with regard to chloride levels in wastewater at SAES Coated Films.
• Indirect involvement in a data breach involving a subcontractor.

Mitigation Strategies

• Established specific business continuity procedures.
• Pursued a strategy of diversification of its product and customer portfolio and supply sources.
• Implemented actions to strengthen the technological infrastructure and overall increase the security and resilience of information systems.
• Upgrading of the fire-fighting system at SAES Coated Films.
• Further wastewater analyses conducted at SAES Coated Films, finding no critical issues.
• Implemented actions to address the root cause of ethanol emissions at SAES Coated Films (installing an abatement plant).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and exacerbation of weather events

Transition Risks

• Regulatory developments in the automotive sector

Opportunities

• Developments of the High Vacuum Division
• Opportunities in the packaging sector

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001 (Lainate and Avezzano plants)

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

Sustainable Products & Innovation

• B!Pod (for end consumers)
• Recyclable or compostable flexible packaging solutions