Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Responsible Product

Environmental Achievements

• Reduced Scope 1 and 2 emissions (from 894,862 t CO2e in 2021 to 938,245 t CO2e in 2022)
• Improved energy intensity index
• Reduced water intensity index
• More than 61% of waste generated is NON HAZARDOUS
• About 30% of the total waste generated is sent to recovery
• Committed to the Science Based Targets initiative in December 2022

Social Achievements

• Developed a D&I Policy and a Human Rights Policy
• Implemented several compensation mechanisms to attract and retain employees (LTIPlan, MBO plan, variable compensation)
• 9700+ hrs training delivered to employees
• 75% employees attended training course
• No fatal work accidents recorded
• Injury frequency rate at 1.25

Governance Achievements

• Approved a new Code of Ethics in December 2022
• Implemented a whistleblowing policy
• No confirmed incidents of corruption occurred in the last 3 years
• A new compliance training on the main risk areas is in progress since January 2023
• 30% of suppliers with spending higher than 100k€ have been assessed through EcoVadis in 2022

Climate Goals & Targets

Environmental Challenges

• The chemical industry is considered to be one large contributor to GHG emissions and a large energy consumer.

Mitigation Strategies

• Minimize the usage of primary resources, improving energy efficiency, internal recovery of energy streams and materials
• Invest in sustainable project technologies/assets/businesses
• Develop new products aiming to support the decarbonisation transition

Supply Chain Management

Supplier Audits: 30% of suppliers with spending higher than 100k€ assessed through EcoVadis in 2022

Responsible Procurement

• Specific ESG clauses introduced into contracts
• Supplier code of conduct approved by the Board

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs, Global Compact

Certifications: ISO 9001, HSMS (37% of plants)

Third-party Assurance: Third-party verified GHG inventory and CFP calculation program

Sustainable Products & Innovation

• Biodegradable products for MWF & industrial applications
• New dispersant products
• New automatic transmission fluids
• Italmatch polymers for EV lubricants
• Electrolytes for Li-ion Batteries
• Flame Retardants products for Tesla EV cars
• Biodegradable antiscalant for reverse-osmosis desalination applications
• Innovative antiscalant for geothermal applications in severe conditions

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Responsible Product

Environmental Achievements

• Achieved SBTi approval for emission reduction targets: 42% reduction in absolute value of scope 1 and 2 emissions and 26% reduction in absolute value of scope 3 emissions by 2030 from a 2021 base year.
• UK plant switched to green energy, avoiding emission of about 40t CO2e.
• Significant improvement in Ecovadis rating from Bronze to Silver (+15 points).

Social Achievements

• Decreased injury rate by 46% and days lost by over 79% compared to 2022.
• Implemented a reporting and “incident analysis” model to improve operating procedures.
• Provided 6,890 hours of training in 2023, with 63% of employees participating.

Governance Achievements

• Established an ESG Steering Committee.
• Implemented an ESG questionnaire for M&A transactions and ESG assessment for investments.
• Improved reporting practices and ESG ratings; maintained Italmatch’s ESG rating in the top quartile.

Climate Goals & Targets

Environmental Challenges

• Economic challenges impacting the business scenario.
• Supply chain disruptions due to extreme weather events.
• Changes in customer behavior demanding lower carbon footprint products.
• Varying international regulations on carbon pricing (carbon leakage).

Mitigation Strategies

• Multiple suppliers and supply chain diversification.
• Development of low PCF products and support for customers in their green transition.
• Plants delocalization in different countries.
• Emission reduction plans through enhanced efficiency of manufacturing processes and change in fuels.
• Focus R&D efforts in developing sustainable solutions.

Supply Chain Management

Supplier Audits: 146 suppliers with Ecovadis rating at the end of 2023 (54% of total value purchased).

Responsible Procurement

• Supplier Code of Conduct
• ESG clauses in supply contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, storms)
• Changes in the availability of natural raw materials
• Scarcity in water availability
• Rising mean temperatures

Transition Risks

• Regulatory changes on products
• Regulatory and societal pressure to achieve climate-neutral production
• Difference of international regulation on carbon pricing
• Changes in customer behavior requesting products with a low carbon footprint

Opportunities

• Decommissioning of oil wells
• Increased request of “greener” products
• Advent of electric vehicles
• Development of solutions for climate change adaptation

Reporting Standards

Frameworks Used: CSRD, GRI, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, CEFAS, NSF, RSPO, Cosmos

Third-party Assurance: Bureau Veritas (GHG inventory)

UN Sustainable Development Goals

• SDG 7

Around 48% of the Group's sales contribute to the achievement of SDG 7 (Affordable and Clean Energy) through products and additives that improve the efficiency of machinery.

Sustainable Products & Innovation

• Carboxy Methyl Inuline (CMI)
• Biodegradable phosphonates
• Biodegradable polymers
• Acrylamide-free flocculants
• Eco-inhibitors
• Halogen-free flame retardants
• Red phosphorus-based flame retardants for photovoltaic panels

Awards & Recognition

• Not disclosed