Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Waste management
• R&D and innovation
• Health and safety
• Responsible supply chain
• Local economic development
• Local communities
• Human capital development
• Diversity
• Employment
• Customer relation
• Human rights
• Diversity
• Ethics and compliance
• Anti-corruption

Environmental Achievements

• Issued an ESG-linked Schuldchein loan aimed at supporting the Group’s investments in green technologies.
• Launched NextChem, a company dedicated to energy transition.
• Launched a multi-year reforestation program (Treedom).
• Implemented air emission estimation methodology accounting for Scope 3 Emissions.
• Launched Green Logistic Plan.
• Agreement with Eni for a technology that transforms non-recyclable waste into hydrogen and methanol.
• Cooperation with Saola Energy to license a technology for the production of Renewable Diesel.
• Pursuing 10+ new projects related to Circular Economy.

Social Achievements

• Launched a multi-year HSE awareness program (SAFETHINK Campaign).
• 100% Coverage of new supplier qualification based on ESG criteria.
• Launched multi-year strategic program of In-Country-Value (ICV).
• Launched a multi-channel educational platform available to all employees (MetAcademy).
• Launched Maire4PMI, a program targeted to Italian SMEs.
• Launched Diversity & inclusion Committee.

Governance Achievements

• Implemented BoD Diversity Policy.
• Launched training courses on Group Anticorruption Code in English.
• 15% of the goals assigned to the CEO and COO were linked to environmental sustainability.
• Long-term incentive plan with 10% of objectives associated to ESG targets.

Climate Goals & Targets

Environmental Challenges

• Risks related to non-compliance with ethical principles, laws, and regulations.
• Risks of fraud, illegal conduct, and corruption.
• Loss of key personnel and highly specialized professionals.
• Decrease in employee engagement and motivation.
• Lack of training and development opportunities.
• Non-compliance with laws on workers’ rights.
• Risks associated with technological development to maintain market share.
• Risks of know-how and intellectual property infringement.
• Financial risks associated with investment in R&D.
• Failure to support local content.
• Risks deriving from supplier non-compliance.
• Risks related to climate change (restrictive laws, client awareness, etc.).
• IT system vulnerabilities (cyberattacks, system failures, etc.).
• Risks related to epidemics and diseases.

Mitigation Strategies

• Implementation of the Group Code of Ethics and Organization, Management and Control Model.
• Issuing and adoption of Group Standard Procedures.
• Audits by the Internal Audit Department and Supervisory Body.
• Training programs on various topics.
• Communication of the Grievance mechanism.
• Corporate guidelines for Human Capital management.
• Processes related to employees’ skills and behaviors assessment.
• Development plans, rewarding and incentive processes, engagement surveys.
• Policies fostering work-life balance.
• Technical and economic resources allocated to R&D.
• Collaboration with universities and research centers.
• Updating and protection of intellectual property rights.
• Local content strategy.
• Supplier management policy.
• Policy regarding information and labeling of products and services.
• HSE Management System in line with ISO 14001 and OHSAS 18001.
• Detailed risk analysis.
• Intensive HSE training program.
• Policy regarding environmental compliance.
• IT security policies and measures (cloud infrastructure, multi-factor authentication, AI antifraud system, etc.).
• Cybersecurity training and awareness program.
• Integrated and centralized treasury payments.
• "Be adaptive" program to enable Agile working.

Supply Chain Management

Supplier Audits: 6 qualification audits performed; Social Audit program started in 2020.

Responsible Procurement

• Group Code of Ethics
• Supplier qualification process with ESG criteria
• E2Y procurement platform
• International Procurement Offices (IPOs)

Climate-Related Risks & Opportunities

Transition Risks

• Impact of more restrictive laws and regulations on energy efficiency and climate change.
• Impact of client awareness and sensitivity to climate change.

Opportunities

• New business opportunities in the growing low-carbon energy market.

Reporting Standards

Frameworks Used: GRI Standards 2016: Core option, UN Global Compact

Certifications: ISO 14001:2015, OHSAS 18001:2007, SA8000

Third-party Assurance: PricewaterhouseCoopers (limited assurance)

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)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Upcycled polymers from plastic waste (MyReplast)
• Renewable diesel (HVO)
• Circular hydrogen
• Methanol from waste

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Environmental Sustainability
• Health & Safety
• Diversity & Inclusion
• Human Capital Development
• Human Rights
• Responsible Supply Chain
• Local Economic Development
• Innovation and Digitalization
• Governance
• Ethics and Compliance
• Anti-corruption

Environmental Achievements

• Reduced greenhouse gas emissions intensity on construction sites compared to 2019 and 2020 (pre-Covid).
• 28,000 tons of plastic waste recycled in our plant, equivalent to over 35,000 tons of CO2 saved.
• Developed Green Circular District model.
• Launched Green Village project for emission reduction on construction sites.
• Launched EEE (Energy Efficiency Engineering) project.
• Developed ULTRA-LOW ENERGY DESIGN technology for Urea plants.
• Developed technologies for biofuels, RCF, and SAF.
• Developed low-emission hydrogen strategy (Electric Blue, Circular, and Green Hydrogen).

Social Achievements

• Launched Maire Tecnimont Flourishing Program for young talents.
• Maintained multi-site SA8000 certification.
• Implemented Stop & Coach Program to improve HSE awareness.
• Implemented Safethink HSE Awareness Program.
• Increased average training hours per employee to 23.8 hours.
• Women accounted for 21% of the total workforce.
• 95% average female/male salary ratio.

Governance Achievements

• Adopted Group Business Integrity Policy.
• Included ESG objectives in incentive systems for CEO, Managing Director, and top management (10% of objectives).

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (supply chain).
• Achieving carbon neutrality.
• Managing multicultural diversity in a global workforce.
• Maintaining competitiveness in technology and licensing.
• Ensuring responsible supply chain practices.
• Managing risks related to climate change, health and safety, human rights, and environmental compliance.
• Managing IT risks and cybersecurity threats.

Mitigation Strategies

• Established Met Zero Task Force to reduce carbon footprint.
• Developed action plans for sustainable mobility, equipment procurement, logistics, and packaging.
• Implemented Green Village project.
• Developed and implemented a multi-site management system for Health, Safety, and Environment (HSE) compliant with ISO 14001 and ISO 45001 standards.
• Implemented SA8000 management system.
• Developed and implemented a comprehensive IT security system.
• Implemented a comprehensive training program on HSE and Social Accountability.

Supply Chain Management

Supplier Audits: ~1,300 suppliers evaluated on ESG criteria

Responsible Procurement

• 100% of new qualifications based on ESG criteria.

Climate-Related Risks & Opportunities

Transition Risks

• Stricter regulations on energy efficiency and climate change.
• Shift to low-carbon products by clients.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI, UN Global Compact, TCFD (partially)

Certifications: ISO 14001, ISO 45001, SA 8000

Third-party Assurance: Bureau Veritas Italia

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Initiatives contribute to these goals through decarbonization, circular economy, and sustainable development.

Sustainable Products & Innovation

• MyReplast recycled polymers.
• Green ammonia.
• Biofuels.
• Circular hydrogen.

Awards & Recognition

• Sustainability Report Award from the University of Pavia.

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Environmental sustainability
• Health & Safety
• Diversity, Equity & Inclusion
• Human rights
• Human capital development
• Responsible supply chain
• Local economic development
• Business integrity
• Economic performance
• Innovation
• Digital transformation
• Governance

Environmental Achievements

• Approximately 26 thousand tonnes of plastic recycled in 2022, resulting in a total CO2 equivalent saving of almost 32 thousand tonnes (Bedizzole plastic upcycling plant).
• Development of a decarbonisation plan by the “MET Zero Task Force” with specific initiatives to reduce emissions both on site and in home offices.
• Development of a new service division for decarbonisation
• 21 commercial initiatives in the field of the “energy transition”

Social Achievements

• Launch of the Maire Tecnimont Floruishing Program - phase 2, supporting the growth of young people as part of succession planning
• Launch of the Challenging Mentoring Program, an innovative pathway for developing skills and professional experience from an intergenerational perspective, involving 50 more junior resources as mentees, with 50 managers as their mentors
• Implementation of a training campaign on DEI topics for all employees of the Group’s Italian companies, involving a total of 2,330 participants.

Governance Achievements

• Maire Tecnimont Group tax strategy approval
• Approval of the training plan on the Group’s Business Integrity Policy
• ESG-driven objectives primarily as part of the incentive systems for the CEO and Managing Director and senior management (MBO 2022 and LTI 2021-2023), accounting for 10% of the objectives
• Adoption of the Tax Control Framework

Climate Goals & Targets

Environmental Challenges

• Impact of stricter laws and regulations on energy efficiency and climate change, which may lead to increased operating costs and thus reduced investment in the sector
• Impact of client awareness and sensitivity to climate change and GHG emissions reduction, resulting in a shift to low-carbon products
• Impact of climate change mainly due to greenhouse gases leading to changes in temperature and seasonality in different geographical areas
• Loss of key personnel and/or highly specialised professionals; a decline in employee commitment and motivation; a lack of training and development opportunities; decreasing attractiveness as an employer in the labour market; non-compliance with laws concerning workers’ rights; lack of respect for diversity and equal opportunities

Mitigation Strategies

• Development of a decarbonisation plan by the “MET Zero Task Force” with specific initiatives to reduce emissions both on site and in home offices.
• Development of a new service division for decarbonisation
• Adoption and implementation of the Group Code of Ethics and of the Organisation, Management and Control Model pursuant to Legislative Decree 231/2001 (“231 Model”) and the Business Integrity Policy
• Adoption and implementation of Group standard procedures
• Execution of audits by the Internal Audit function and by the Supervisory Board pursuant to the Italian Legislative Decree 231/2001.

Supply Chain Management

Supplier Audits: Five social audits carried out on Maire Tecnimont Group suppliers aimed at promoting respect for human rights and labour in the supply chain

Responsible Procurement

• ESG screening of suppliers
• Social Audit on Key Suppliers
• In Country Value (ICV) project
• Sharing the principles of the Code of Ethics, requiring suppliers to commit to adopting best practices in terms of human rights and working conditions, occupational health and safety and environmental responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Impact of climate change mainly due to greenhouse gases leading to changes in temperature and seasonality in different geographical areas

Transition Risks

• Impact of stricter laws and regulations on energy efficiency and climate change, which may lead to increased operating costs and thus reduced investment in the sector
• Impact of client awareness and sensitivity to climate change and GHG emissions reduction, resulting in a shift to low-carbon products

Opportunities

• Development of “general environmental regulations” could generate new business opportunities for Maire Tecnimont, in the growing market for low-carbon products and services.

Reporting Standards

Frameworks Used: GRI, UN Global Compact, TCFD

Certifications: ISO 14001, ISO 45001, SA 8000:2014

Third-party Assurance: PwC

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)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Green ammonia
• Sustainable fertilisers
• Waste-to-chemicals technologies
• Renewable fuels and chemicals
• E-fuels and chemicals
• Mechanical upcycling of plastics
• Chemical recycling of thermoplastic polymers
• Biodegradable and compostable polymers

Awards & Recognition

• AA rating from MSCI
• Gold rating from EcoVadis
• Second place in the “Grandi Imprese” category of the first edition of the Unindustria “Salute e Sicurezza sul lavoro” Award

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Circular economy
• Natural resources management
• Health and safety of employees and contractors
• Human capital development
• Diversity, equity & inclusion
• Employment and wellbeing
• Human rights
• R&D, innovation and ecosystems
• Digital transformation
• Cybersecurity
• Responsible supply chain
• Local economic and social development
• Business integrity
• Economic performance and business stability

Environmental Achievements

• Reduced Scope 1-2 emissions by 11% vs 2022 and 26% vs 2018 baseline (18,143 tCO2)
• Reduced Scope 3 emission intensity on value added for selected clusters of goods and services by 5% vs 2022 (0.545 tCO2/k€)
• Approximately 22,000 tons of plastic recycled, saving 25,000 tons of CO2 equivalent
• Over 6,000 tCO2 emissions saved due to efficiency initiatives

Social Achievements

• Launched a new cybersecurity training campaign (approx. 23,000 training hours)
• Launched the second phase of the Diversity, Equity & Inclusion training campaign for foreign companies (approx. 7,300 training hours)
• Implemented the first wave of the Challenging Mentoring Programme (50 junior colleagues and 50 managers)
• Increased workforce by 24% compared to 2022 (7,978 employees)

Governance Achievements

• Increased ESG targets in management variable compensation from 10% to 20%
• Launched a major stakeholder engagement process
• Admitted to Transparency International Italia

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate-related risks (e.g., extreme weather)
• Transition risks (e.g., regulatory changes)
• Maintaining competitiveness in a rapidly changing market
• Managing risks associated with operations in multiple countries

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented a climate strategy aligned with TCFD recommendations
• Developed a decarbonisation plan with ambitious targets
• Invested in R&D and innovation
• Strengthened internal control and risk management systems

Supply Chain Management

Supplier Audits: 8 social audits carried out

Responsible Procurement

• ESG criteria for supplier qualification
• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter regulations on energy efficiency and climate change

Opportunities

• Growth in demand for low-carbon products and services

Reporting Standards

Frameworks Used: GRI, UN Global Compact, TCFD

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 29001, ISO 45001, SA 8000

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 13 (Climate action)
• SDG 8 (Decent work and economic growth)
• SDG 5 (Gender equality)
• SDG 12 (Responsible consumption and production)

Initiatives contribute to these goals through decarbonization efforts, sustainable technology development, responsible supply chain management, and promotion of diversity and inclusion.

Sustainable Products & Innovation

• Green ammonia
• Sustainable fertilizers
• Sustainable fuels and chemicals
• Sustainable polymers

Awards & Recognition

• Finalist in the Sustainability Report Awards of the University of Pavia
• Finalist in the World Sustainability Awards 2023

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 5% reduction in emissions intensity for specific clusters of goods and services
• 26% reduction on 2018 in CO2 emissions
• 11% reduction on 2022 in CO2 emissions
• over 6,000 tons of CO2 saved

Social Achievements

• Increased upskilling and reskilling training hours by 15% compared to 2023
• Implementation of a robust health management program for employees, especially those on international secondments to high-risk countries

Governance Achievements

• 20% ESG Objectives in MBO and LTI Plans
• Introduction of an integrated risk management model

Climate Goals & Targets

Environmental Challenges

• Potential delays in developing market-leading technological solutions for the energy transition
• Difficulties sourcing qualified labor due to a shortage of specific skills needed for the transition
• Increased costs and investments required to develop products and services due to the rapid rise in market demand for eco-friendly products and the increased volatility of raw material prices
• Challenges in meeting stakeholder expectations due to stricter climate change objectives
• Misinterpretation by external stakeholders of the role played by certain Group projects in relation to its publicized transition-enabling strategy
• Lack of adequate internal systems for processing reliable data to monitor and externally report on climate change performance
• Difficulty finding the necessary expertise to match MAIRE’s technological development ambitions and adopting an effective organizational model, thereby hindering the STS business’s development of low-emission technological solutions
• Increasing frequency of extreme weather events (e.g., rising temperatures) in historically less exposed areas, impacting operations and safety for specific projects

Mitigation Strategies

• Progressive investment strategy to introduce sustainable technological solutions as outlined in the business plan
• Robust governance, compliance, and contract management system to monitor, prevent, or proactively address potential issues
• Strength of the Group’s medium- and long-term strategy, which includes multi-directional investments focusing on both the efficiency and decarbonization of traditional processes and the development of new green and circular technologies and projects
• Sale of internally developed monitoring tools to third parties to track the Group’s performance in addressing climate change
• Acquisition of new skills through the recruitment of new external talent and/or training programs to develop the skills of the Group’s workforce
• Internal development of high-quality product and services that meet the Group’s needs and current and future market demands
• Research and development of disruptive and distinctive technologies
• Acquisition of pre-developed technologies through M&As
• Investments in recruiting and internal training programs focused on skills related to the ecological transition
• Investments in research centers to develop new technological solutions (e.g., Green Innovation District)
• Collaboration among peers on skill development projects (e.g., ROAD Project)
• Adoption of a centralized management system for research and development activities
• Adoption of physical safeguards, contractual clauses, and insurance coverage to mitigate the impacts of climate phenomena on proprietary structures and construction sites
• Alignment with the most up-to-date health and safety measures (e.g., those concerning rising temperatures) to protect workers’ health
• Timely technology development strategy to ensure the scalability of low-carbon solutions for the market
• In-house development of environmentally friendly technologies
• Robust governance and contract management system to monitor and proactively manage potential cost increases
• Diversified business strategy to guarantee the Group’s resilience against potential market disruptions
• Effective communication of climate change targets that align with market expectations to stakeholders
• Investment plan to position the Group as a strategic enabler of the energy transition
• Decarbonization projects for Oil & Gas plants where the Group operates

Supply Chain Management

Supplier Audits: 70% of annual spending on ESG-rated suppliers in 2023

Responsible Procurement

• Expand coverage of ESG-rated suppliers: special emphasis on sustainability issues during annual onboarding and qualification renewal campaigns (Final target 100%)

Climate-Related Risks & Opportunities

Physical Risks

• River flooding
• Coastal flooding
• Hurricanes/cyclones/tornadoes
• Hailstorms
• Landslides
• Wildfires
• Windstorms
• Water stress/drought
• Heatwaves
• Cold spells

Transition Risks

• Introduction of new/stricter regulations to combat climate change
• Possible delays in complying with legal requirements on the use of low-emission alternatives
• Lack of adequate internal systems for processing reliable data to monitor and externally report on climate change performance
• Difficulty finding the necessary expertise to match MAIRE’s technological development ambitions and adopting an effective organizational model
• Increasing frequency of extreme weather events
• Increased costs and investments required to develop products and services
• Challenges in meeting stakeholder expectations due to stricter climate change objectives
• Misinterpretation by external stakeholders of the role played by certain Group projects

Opportunities

• Regulatory push to promote the development and adoption of low-emission energy sources, services, and products
• Strategic partnerships with third parties aligned with the Group’s objectives/standards and regulatory requirements
• Sale of internally developed monitoring tools to third parties
• Acquisition of new skills
• Development of low-carbon and eco-friendly products/services
• Effective communication of climate change targets
• Positive image boost for the Group

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001