WATER MANAGEMENT

The Company defined water resource management as a material aspect of its sustainable development, as well as being of particular relevance to the future of communities and the protection of the planet. With this in mind, the Company aims to limit the withdrawal of water resources for production processes through projects to reduce demand and reuse, minimizing the environmental impact in the area.

At the various plants, water is used for civil, fire-fighting and production purposes. In the latter case, painting and machining processes are the activities for which the most water is used. In line with previous years, all production sites monitor water supply index trends on a monthly basis regardless of plant size and local water availability.

The goal is to conserve water, considering that some of the production units are located in areas with very high water stress 27 (greater than 80%): Matera, Italy; Bangalore, India; and Sohland, Germany. Moreover, the German Lohmar site borders a protected nature area.

Bangalore, Karnataka

27 - Water stress refers to the ability or inability to meet the water demand, both from humans and from ecosystems as a whole. Water stress can refer to the availability, quality or accessibility of water. The World Resources Institute's Aqueduct Water Risk Atlas (wri.org/aqueduct) was used as a tool to assess water stress areas.

At the Group's sites, water is supplied almost entirely by aqueduct (93%), while use of wells is very low (7%). 28 The entire amount of water classified as other types of water is collected at the Indian plant.

K - Monitoring and data collection of water withdrawals from the Indian plant have been active since September 2020. The plant draws its water from the well on the production site.

L - The reporting scope was expanded with the branch of Comer Industries do Brasil Ltda. No data available for water use at the Comer Industries UK Ltd site.

With regard to water discharges, almost all discharges are to the sewers connected to the sites. Only a very small proportion of the wastewater is destined for surface water bodies. Specifically, water discharges are of a civil nature and are released into the destination basin in compliance with the parameters defined by specific local legislation. Water from the production process is collected in specific containers such as underground tanks and managed as waste in compliance with current regulations and processed at the site through the use of specific treatment plants.

The strong focus on reasonable and sustainable use of water resources is also expressed through the definition of impacts in relation to contamination risk. In order to guarantee the control and minimization of impacts, in the Company management system, special procedures and relative instructions were published and adopted that define the correct management of the resource in relation to the production context.

28 - At the Monguelfo and Lohmar plants there is an additional use of water from wells amounting to 726

Ml solely for cooling the production machines, without any consumption or contamination. Specifically, at the Monguelfo plant the water flows through a continuous, closed circuit that consists of drawing water from the well and then returning it once it has traveled through the plant.