Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 85% reduction in paper consumption for promotional materials
• Energy efficiency systems installed at 88 brand sales outlets resulting in a 24% reduction in consumption
• Launched a specific site in September 2020 for digital flyers, enabling savings in paper and transport
• Started pallet recovery for reuse

Social Achievements

• Implementation of the “FUTURE” smart-working project for more flexible working
• Company Academy for new store managers and affiliated entrepreneurs
• Performance evaluation extended to 83% of company personnel
• Awarded a one-off bonus of €500 to employees
• Special insurance cover in case of Coronavirus infection
• Reimbursement of flu vaccine costs for employees
• Launched the No Cyberbullying project (#Cuoriconnessi) in 2016
• Donated over 2,000 smartphones to people suffering from Covid-19

Governance Achievements

• Established a Sustainability Committee within the Board of Directors
• Adapted Articles of Association to current legislation on gender equality
• Defined a business model valuing customers and omnichannel opportunities

Climate Goals & Targets

Environmental Challenges

• Environmental risks related to WEEE disposal
• Product liability risks
• Cybersecurity risks and data breaches
• Difficulties in finding resources with specific IT and digital skills
• Loss of key resources
• Occupational accidents and illnesses
• Corruption risks
• Supply chain risks related to political, economic, and social instability in supplier countries
• Supply chain risks related to environmental and human rights violations

Mitigation Strategies

• Specific operating manual for WEEE management
• Master contract with suppliers with early termination clause
• Supplier audits
• Code of Ethics promoting waste management and consumer safety
• Control systems to monitor physical and IT access, data center, and email
• Disaster Recovery Plan
• Adaptation to GDPR
• Individual performance assessment system
• Managerial and professional training courses
• Whistleblowing system
• Organisation, Management and Control Model (Model 231)
• Anti-corruption Policy
• Code of Ethics outlining principles for supplier relations
• Product qualification and certification processes

Supply Chain Management

Responsible Procurement

• Selection criteria based on quality, costs, services, integrity, reputation, and professionalism
• Supplier commitment to child labor protection and worker rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 13

Unieuro's initiatives contribute to these SDGs through employee well-being, training, gender equality, energy efficiency, economic growth, sustainable cities, and climate action.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Saved 2.6 GWh of energy thanks to point-of-sale efficiency measures
• Purchased 58% of electricity from renewable sources (vs. 0% in 2020/21)
• Recycled 65% of pallets (vs. 19% in 2020/21)
• Reduced paper consumption by 47%

Social Achievements

• Launched new e-commerce site and app, improving customer experience
• Gradual adoption of electronic price tags in shops, reducing paper consumption
• Developed employee climate survey to monitor satisfaction and engagement
• Renewed smart working project for central functions employees
• Continued growth of #Cuoriconnessi project against cyberbullying (1.45 million contacts in 2021/22)

Governance Achievements

• Established Sustainability Committee within the Board of Directors (2020)
• Created Sustainability Department and internal Sustainability Committee (2021)
• Improved materiality analysis process
• Prepared first Sustainability Plan (2022-2026)

Climate Goals & Targets

Environmental Challenges

• Environmental risks related to waste disposal (WEEE)
• Risks of product liability actions due to product defects or non-compliance with safety standards
• Risks related to cyberattacks and data breaches
• Difficulties in finding resources with specific IT and digital skills
• Loss of key resources
• Risks of corruption in relationships with authorities and suppliers

Mitigation Strategies

• Specific operating manual for WEEE disposal
• Supplier audits and alternative sourcing strategies
• Specific control systems to monitor physical and IT access, data center, and email
• Disaster Recovery Plan
• Adaptation to GDPR
• Specific Anti-corruption Policy, Code of Ethics, and whistleblowing system
• Managerial and professional training courses for employees

Supply Chain Management

Responsible Procurement

• Selection based on economic criteria (with plans to incorporate social and environmental aspects)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Several UN SDGs (11 out of 17)

Actions in the Sustainability Plan contribute to various SDGs.

Sustainable Products & Innovation

• Electroline, Joiahome, Teklio private label products

Awards & Recognition

• Key Award & Radio Key Award for advertising campaign
• Awards from the Association of Italian Art Directors

Environmental Metrics

ESG Focus Areas

• Sustainable Innovation
• Community
• Talent
• Creating Effective ESG Governance

Environmental Achievements

• Developing a greenhouse gas measurement system to work out a progressive reduction process
• Optimising in-store energy consumption by implementing increasingly smart lighting and air-conditioning solutions
• Buying certified power from renewable sources
• Initiatives to keep pallets and reuse them and introduction of recycled plastic pallets
• Progressive reduction of plastics in the packaging of Electroline and Teklio private-label products

Social Achievements

• Upgrading the fight against cyberbullying in partnership with the State Police
• Developing specific initiatives for elderly people, to help them use technology
• Partnership with the hospital Istituto Oncologico Romagnolo in the promotion of a healthy lifestyle among young people
• Formalising the Company’s commitment to champion respect for diversity and to support inclusion
• Implementing a management system that promotes and protects gender equality
• Promoting engagement and community-building actions with the company’s people to share sustainable practices within the Company and collect feedback on how to improve its operational effectiveness
• Providing training programmes in Sustainability to the members of the corporate Academy who are going to work as store managers
• Development of awareness-raising and training programmes in Sustainability for all of the Company’s staff
• Measuring the employees’ satisfaction through yearly employee climate surveys (Employee NPS)

Governance Achievements

• Configuration, assessment and approval of a new plan for upgrading Unieuro’s IT security to protect the operation and data of the Company’s systems
• Development and implementation of a corporate policy to formalise principles, targets and commitments and make the ESG themes truly pervasive in the everyday life of the Group
• Being rated by a certification body to certify the soundness of the journey that Unieuro has undertaken, in environmental, social and governance matters
• Fine-tuning the ESG metrics of the managers’ and employees’ remuneration and incentive schemes
• Implementation of a financial and non-financial risk mapping, assessment and continuous monitoring system, with an integrated, proactive approach
• Upgrading non-financial reporting in the light of the current and long-term developments in the EU Taxonomy Regulation
• Progressive integration of non-financial reporting at management and accounting levels, by taking proactive measures, even ahead of the applicable regulations

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Assessing new product suppliers based on social and environmental criteria, not just economic ones
• Implementing an assessment procedure, based on Unieuro’s Sustainability criteria across the value chain

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change and energy efficiency
• Sustainable supply chain
• Customer-centricity and innovation
• Diversity and equal opportunity
• Respect for human rights and worker protection
• Business ethics and integrity
• Company welfare
• Employee and contractor health and safety
• Staff training and career development
• Support for local communities
• Safety of products on the market
• Transparency of product information and offers to customers
• Protection of consumer privacy and cyber security
• Stakeholder dialogue
• Waste management
• Sustainable packaging
• Sustainable products and services
• Distribution, logistics and mobility management

Environmental Achievements

• 100% of electricity purchased from certified renewable sources
• 39% reduction in direct Scope 1 emissions at stores with energy-efficiency measures
• 19% reduction in total hazardous waste generated
• 19.6% decrease in WEEE waste compared to the 2022/23 financial year
• Avoided production of 109,513 tonnes of CO2eq due to WEEE recycling
• Saved 18,416,032 kWh of energy due to WEEE recycling
• Recycled 15,891 tonnes of material from WEEE
• Installation of photovoltaic plant at Muratella Colleferro (3 MW)

Social Achievements

• Launched a new Leadership Model to promote personal and professional development
• Transitioned HR department from service-oriented to collaborative partner role
• Launched UniVersus project to monitor employee satisfaction (eNPS)
• Implemented smart working agreements for headquarters staff
• Became a member of the “Valore D” association for diversity and inclusion benchmarking
• #Cuoriconnessi project reached 1.99 million contacts
• Donated emergency devices to Forlì municipality after May 2023 floods
• Supported employees and consumers in flood-affected areas

Governance Achievements

• Strengthened and updated Enterprise Risk Management (ERM) process to include ESG risks
• Defined specific guidelines for accounting treatment of ESG topics
• Updated Whistleblowing Policy and created a dedicated section on the company website
• Implemented a new organisational structure to improve workplace safety measures

Climate Goals & Targets

Environmental Challenges

• Slowdown in the consumer electronics market
• Reduced demand for certain product categories
• Increased cost of living
• Fluctuations in energy prices
• Reliance on non-renewable energy sources
• Risks associated with extreme weather events
• Difficulties in finding resources with specific skills
• Loss of key resources
• Inadequate staff training
• Potential risks linked to the intensification of extreme weather events
• Risks linked to practices that are incorrect or do not comply with the practices and behaviours contractually defined by external partners
• Risk that a significant hike in energy prices substantially raises store management costs
• Risk of improper management of office and store waste
• Risk of reduced sales owing to the limited supply of environmentally sustainable products
• Risk of developing a Sustainability Plan that does not align with stakeholder expectations
• Risk linked to potential communications that do not align with the organisation’s strategy
• Risk of not meeting stakeholders’ expectations through the adoption of planned actions
• Risk of attraction and retention activities losing effectiveness
• Risk linked to a failure to consider ESG criteria when evaluating suppliers
• Risk linked to non-compliance with health and safety regulations
• Risk that the lack of energy optimisation at points of sale results in increased management costs
• Risk that an ineffective strategy for replacing key resources creates a skills gap
• Risk that the leakage of inside and/or relevant information results in reputational damage
• Risk linked to potential future legal action taken against the Company
• Risk of workplace discrimination
• Risk of an ineffective governance model
• Risk of an inflexible organisational structure
• Risk that the pursuit of new projects may be difficult
• Risk that incomplete reporting does not accurately convey the adoption of ESG-related activities
• Risk that limited access to financial resources may create tension
• Risks arising from a failure to meet the requirements required by laws and regulations
• Risk of being subjected to sanctions following unfair commercial practices
• Risk of non-compliance with internal regulations
• Risk linked to potential sanctions and reputational damage due to non-compliance with changes to laws and regulations
• Risks associated with the typical activities of domestic appliance and consumer electronic goods manufacturing companies
• Risks of human rights violations along the supply chain
• Risks of product liability actions
• Risks linked to hacker attacks and the cloning of credit cards or customers’ personal data
• Risks that personal data of customers or individuals with whom the Company has dealings may be damaged
• Risks of failure to adapt to new laws and regulations

Mitigation Strategies

• Developed a new Strategic Plan titled “Beyond Omni-Journey”
• Assigned a critical role to “Responsible Innovation”
• Developed a Leadership Model to accompany and facilitate the transformation process
• Developed a series of communication initiatives to raise awareness of the new corporate strategy pillars
• Acquired Covercare Group to strengthen sustainability profile
• Continued Project Green for energy efficiency improvements at points of sale
• Measured the entire carbon footprint (Scopes 1, 2, and 3)
• Initiatives to decrease consumption (pallet reuse, reduced paper usage)
• Updated stakeholder map and leveraged benchmarking activities
• Launched a Change Management programme to transform the role of the HR Department
• Became a member of the “Valore D” association
• Drafted a Policy to protect victims of gender-based violence
• Consolidated the Internal Communication department
• Implemented a three-year sustainability training programme
• Initiated an analysis exercise to assess the sustainability profiles of certain suppliers
• Thoroughly updated ERM (Enterprise Risk Management) to integrate sustainability
• Defined specific guidelines to ensure the accurate accounting treatment of ESG topics
• Started initial functional analyses to verify the primary areas of focus and identify any gaps in the process for CSRD compliance
• Adopted an Organisation, Management and Control Model pursuant to Legislative Decree No. 231/2001
• Adopted a Whistleblowing Policy
• Updated its Enterprise Risk Management process to include ESG risks
• Implemented a specific operating manual for WEEE disposal
• Introduced a dedicated collection service for hazardous waste
• Created a team e-mail address for stores to report inefficiencies
• Introduced energy-efficiency measures (BMSs, LED lighting, high-efficiency air conditioning)
• Purchased electricity certified as “green” (100% in FY 2023/24)
• Installed electric vehicle charging stations at direct stores
• Updated Policies and Procedures to mitigate data security risks
• Implemented OneTrust software to handle data protection requests
• Continued privacy training programme
• Strengthened IT infrastructure for better security
• Created an escalation procedure for handling consumer complaints concerning legal warranties
• Implemented additional controls to effectively handle complaints and disputes
• Introduced a procedure for evaluating new product suppliers that includes sustainability aspects
• Used a large number of transport operators to mitigate risks
• Conducted monthly monitoring of the fiscal-payroll-contribution regularity of transport operators

Supply Chain Management

Responsible Procurement

• Evaluation of new product suppliers including sustainability aspects
• Compliance with principles of transparency, fairness and honesty
• Suppliers undertake to prevent child labour, protect workers’ rights and ensure a safe working environment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter legislation and regulations related to climate change
• Changes in customer purchasing habits

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14064

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