ORGANIZATIONAL STRUCTURE

The organizational structure is made up of Corporate or Staff Managements, which operate transversally within the Company (Brand & Integration, Finance & Digitization, Human Resources & Organization, Quality, Sustainability & Lean Development) and Business Departments (Sales & Marketing, Industrial, Research & Product Development, Aftermarket & Services) which are respectively responsible for defining commercial and marketing actions at a global level, coordinating industrial activities such as Engineering, Purchasing, Production, Logistics, defining and directing new product development processes and finally Aftermarket management.

The governance structure was strengthened with the introduction of an Internal Audit function, assigned the task of more efficiently assessing the adequacy and effectiveness of the internal control system and further calibrating the actions for the model's improvement.

EXTERNAL INITIATIVES, MEMBERSHIP IN ASSOCIATIONS

Since December 2021, the Company has adhered to the United Nations Global Compact initiative and is committed to disseminating and applying the Ten Principles in the areas of human rights, labor standards, environmental protection, and anti-corruption.

Launched in 2000, the United Nations Global Compact is the world's largest strategic corporate citizenship initiative. It is followed by more than 18 thousand companies in 160 countries around the world, creating a new reality of global cooperation.

Among the initiatives organized to apply this commitment in practice, in 2022 Comer Industries participated in the Climate Ambition Accelerator program sponsored by the Global Compact. The program provides companies with the knowledge and skills needed to accelerate the science-based definition of initiatives and targets to contain the temperature rise to within 1.5°C in the medium term, moving them toward the net zero target by 2050.

Comer Industries adheres to the EcoVadis platform for the evaluation of its sustainability performance. EcoVadis is a global service active in more than 160 countries and with more than 85 thousand companies evaluated. In keeping with the principles of transparency, the Company shares evaluation results and improvement actions with stakeholders.

In 2022 EcoVadis updated its assessment of Comer Industries' sustainability performance in the dimensions of environment, labor and human rights, ethics, and sustainable procurement, awarding it a silver rating corresponding to a ranking in the top 25% of companies in the same sector evaluated worldwide.

Participation in the Global Compact and the related initiatives implemented in 2022 represent only the most recent step along a path toward reducing greenhouse gas emissions and protecting the environment that Comer Industries has been pursuing since 2015, with its adherence to the Carbon Disclosure Project (CDP) framework.

The project involves questionnaires that provide businesses, local authorities, governments, and investors with a comprehensive system of environmental measurement and reporting. There are currently more than 10 thousand companies, cities, states, and regions participating in CDP surveys on Climate Change, Water, Forests programs with the ultimate goal of building a global economic system that is attentive to environmental sustainability.

In 2022 the Company participated in the Climate Change program, receiving a grade of C on an A-D scale, in line with the industry average. In addition to constituting and underscoring the commitment and assumption of responsibility in combating climate change, the climate disclosure is being progressively aligned with the TCFD Recommendations (see the section Environment | Climate change and emissions management).