Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 100% of electricity consumed comes from renewable sources.
• Continuous implementation of activities to improve energy efficiency and reduce CO2 emissions and other pollutants.

Social Achievements

• Implemented workstation safety measures and digitization of quality data.
• 92% of contracts are unlimited term and almost all employees (97%) work under full-time contracts.
• 19,996 hours of training provided to employees during the year.

Governance Achievements

• Integrated QHSE certification according to ISO 9001, ISO 14001 and ISO 45001.
• Introduction of a "platform" in project and workflow management.
• Proactively identifies possible corruption risks.

Climate Goals & Targets

Environmental Challenges

• Low availability of steel and semiconductor products caused supply chain disruptions and delays in component procurement.

Mitigation Strategies

• Containment actions and the development of alternative solutions to ensure business continuity in its plants, reducing production interruptions to a minimum.

Supply Chain Management

Responsible Procurement

• Continuous assessment of suppliers' environmental impacts and social compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• Goal 3
• Goal 8
• Goal 9
• Goal 15

Targets of Sustainability Plan contribute to achieving the SDGs.

Sustainable Products & Innovation

• Products that are more efficient and productive, safer and more comfortable, more environmentally friendly and easier to use

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Waste management
• Biodiversity
• Water consumption
• Circularity
• Human rights
• Occupational health and safety
• Consumer health and safety
• Economic impacts
• Product quality and innovation
• Responsible supply chain

Environmental Achievements

• Scope 1 emissions decreased slightly from 15,679 in 2022 to 15,608 tonnes of CO2 in 2023. Reduction in Scope 1 greenhouse gas emissions is mainly due to a 10% decrease in diesel consumption.
• SDF Italia purchased 100% of its total electricity consumption from renewable sources, allowing the company to reduce the environmental impact of its Italian sites and, together with the renewable electricity produced by photovoltaics at the Chinese site, allowed the Group to avoid the emission of 5,470 tonnes of CO2 in 2023.
• Total waste recovered of 15,892 tonnes, which corresponds to 99% of the 16,046 tonnes of waste produced by all plants during 2023.

Social Achievements

• Launched the L&P Scorecard in Treviglio, an evaluation process for all employees focusing on performance and leadership.
• In 2023, a total of 145 employees used parental leave, 83% of whom were men. All employees returned to work at the end of their leave, with a 100% return-to-work rate for all countries.
• Organized training courses on diversity and inclusion in Italy.

Governance Achievements

• In 2024 SDF S.p.A. changed its governance system, opting for a so-called traditional system, with a Board of Directors and Board of Statutory Auditors.
• SDF Italia has updated all contractual relations with collaborators and suppliers of goods and services operating on its behalf, supplementing the contracts to indicate the principles of ethics and diligence that must be observed in the performance of contractual services on its behalf.
• SDF Italia has implemented an integrated system based on ISO 9001, ISO 14001 and ISO 45001.

Climate Goals & Targets

Environmental Challenges

• The Russian-Ukrainian conflict, high levels of inflation and the implementation of restrictive monetary policies, which have caused significant uncertainties for the global economy.
• The fire that occurred in 2022 at the Chateaubernard plant.
• Water consumption slightly higher than in 2022 (180,491 m3 compared to 165,250 m3).

Mitigation Strategies

• Continuous industrial investments focused on improving the ergonomics and safety of workstations, increasing the reliability of products for end customers, and the progressive digitisation of processes.
• Reconstruction and renovation of the Chateaubernard plant.
• Implementation of energy efficiency and sustainability initiatives at the Lauingen plant (PV system, heat pump).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strategic priority to sourcing materials from local suppliers.
• Thorough ‘supplier qualification’ process including assessment of supplier’s ability to meet SDF requirements and commitment to sustainability.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, AEO

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed