Sustainability Report 2023 - Laminazione Sottile Group

TO OUR PARTNERS 1

(GRI 2-22)

Massimo Moschini PRESIDENT AND CEO LAMINAZINE SOTTILE S.P.A.

On December 23rd, 2023, Laminazione Sottile turned 100. A prestigious and meaningful achievement, which testifies to our resilience and ability to innovate and evolve. This anniversary gives us the opportunity to reflect on our past, celebrate our successes and plan our future with enthusiasm and ambition.

In a rapidly changing world, we are aware of our responsibility towards a more sustainable future. We have invested in advanced technologies to reduce CO2 emissions and improve energy efficiency through the increasing use of renewable energy and the optimisation of every stage of our production process. Our goal is to continuously improve our environmental performance, and we have set challenging decarbonisation targets until we reach Net Zero: a promise made to our planet.

The commitment to Sustainability also has a social value for us: we support cultural initiatives as well as ones that are useful to the public, promoting projects to combat food waste and supporting local communities with donations of thousands of aluminium containers to public and social canteens. We collaborate with the scientific community, sponsoring conferences and sharing our know-how, promoting values of innovation and circulation of knowledge.

We believe that our role goes beyond just business: we want play a positive part in the communities in which we operate.

Innovation since 1923: it is an old claim of ours, but it has always been the heart of our strategy. Customer focus sees us committed to developing solutions that respond to the emerging needs of the market and our partners. We continue to invest in cutting-edge systems to guarantee high-quality products and excellent service: this dedication has allowed us to build lasting relationships and consolidate our position as a global player.

Investments do not only concern our infrastructure, but also our people. Training our employees is a key element to our success. In the third year of our Academy, we have refined personalised growth paths and on-the-job learning opportunities, as demonstrated by the almost 40,000 hours of training provided in 2023 by the Guido Moschini Academy. We want every employee to have the necessary tools to develop their potential and actively contribute to the growth of the Group.

Growth is synonymous with change: in 100 years, we have grown, we have evolved, and now we are ready for a new transformation process that will involve all the companies in the Group, with the aim of strengthening our identity and making us even more competitive. A job of redefining what we are and what we want to be, to improve the integration between the various companies and Divisions of the Group, consolidate our international role and face the future with perseverance and awareness.

This Sustainability Report offers a detailed overview of our commitment to improvement and our initiatives. Each page tells the story of a year of challenges, passion and professionalism.

Since 1923, Laminazione Sottile has represented quality, innovation and sustainability. We will continue to honour this legacy, mindful of all we have built together. We would like to thank all the people of the Laminazione Sottile Group, for their continuous support and for making this extraordinary journey possible.

2 THE GROUP IN NUMBERS

(GRI 2-6)

The Group in numbers

(GRI 2-6)

10 SITES 70

COUNTRIES WHERE THE GROUP EXPORTS

1,284 CORPORATE POPULATION

INCREASE IN PERSONNEL COMPARED TO THE PREVIOUS YEAR +2.8%

39,031 HOURS OF TRAINING PROVIDED SALES REVENUES

776,248,178

72,342,473

57%

PRODUCTION SITES WITH ISO 14001 CERTIFICATION 57%

PRODUCTION SITES WITH ISO 45001 CERTIFICATION

DECARBONISATION

Sustainability report 2023

3 THE GROUP BUSINESS

(GRI 2-6)

The companies of the Group

The Laminazione Sottile Group evolved from the company of the same name, founded in Naples in 1923 and specialising in the manufacture of semi-finished aluminium products. After an initial period that focused on the production of closures and tubes for toothpaste, a process of industrial development began, based on diversifying the product range and aiming at new markets, while simultaneously investing in human resources, machinery and technology.

In the 1960s, the plant was transferred to a 200,000 m2 site in the industrial zone of San Marco Evangelista (CE), which is still in operation today and produces aluminium rolls.

Production has grown year after year, and in 2016 it broke the threshold of 100,000 tonnes per year. The company is one of Europe's biggest manufacturers of rolled aluminium, with exports representing over 65% of total production. Since 1991, the company has been pursuing an expansion strategy through the creation and acquisition of other companies, integrating other production processes downstream and the distribution of products in specific geographical areas.

LAMINAZIONE SOTTILE S.P.A. (PARENT COMPANY)

Registered offices: S. Marco Evangelista (CE) - Italy

Established: 1923

Activity: Manufacture of aluminium coils and sheets and alloys for industrial applications

CONTITAL S.R.L.

Registered offices: Pignataro Maggiore (CE) - Italy

Established: 1991

Activity: Manufacture of containers, trays and plates in bare and lacquered aluminium; aluminium foil, clingfilm and baking paper; PET containers

ITALCOAT S.R.L.

Registered offices: Pignataro Maggiore (CE) - Italy

Established: 1993

Activity: Manufacture of lacquered aluminium coils and sheets for industrial applications

I2R PACKAGING SOLUTIONS LTD

Registered offices: Telford (Birmingham) - United Kingdom

Acquired: 2009

Activity: Production of bare and lacquered aluminium containers for food use

IPS INDUSTRIAL PACKAGING SOLUTION S.R.L.

Registered offices: Alessandria (AL) - Italy

Acquired: 2015

Activity: Manufacture of aluminium coils and sheets and alloys for industrial applications

CONTITAL TURKEY

Registered offices: Çerkezköy / TekirdağTurkey

Established: 2019

Activity: Production of aluminium containers and rolls for food use

I2R KOREA COMPANY LIMITED

Registered offices: Seoul - South Korea

Established: 2016

Activity: Distribution of aluminium containers for food use

PLLANA GMBH

Registered offices: Sachsenheim (Stuttgart) - Germany

Acquired: 2018

Activity: Distribution of bare and lacquered aluminium foil and sheets

I2R INC.

Registered offices: Richmond (Virginia)USA

Established: 2020

Activity: Distribution of aluminium containers for food use

I2R NORTH AMERICA INC.

Registered offices: Toronto (Ontario)Canada

Established: 2023

Activity: Production of bare and lacquered aluminium containers for food use

The Group

Laminazione Sottile S.p.A.

Aluminium rolls

Contital S.r.l.

Containers in aluminium and PET

Italcoat S.r.l.

Surface treatments and aluminium lacquering

I2R Packaging Solutions LTD

Extra-rigid aluminium containers

IPS - Industrial Packaging Solution S.r.l.

Aluminium for flexible packaging

I2R Korea Company LTD

Distribution

Pllana GMBH

Distribution

Distribution

SITES AND CERTIFICATIONS

In 2019, the Laminazione Sottile Group joined the ASI (Aluminium Stewardship Initiative) consortium, an international non-profit organisation which defines the environmental and social standards for aluminium production. In January 2021 it concluded the Performance Standard certification process for the Laminazione Sottile, Italcoat and IPS plants.

IPS

ISO 9001:2015; ISO 14001:2015; ISO 45001:2018;BRCGS AA; EMAS; ECOVADIS GOLD RATING; ASI PERFORMANCE STANDARD

PLLANA

ISO 9001:2015

I2R UK

BRCGS GRADE A

LAMINAZIONE SOTTILE

ISO 9001:2015; ISO 14001:2015; ISO 45001:2018; SA 8000:2014; EMAS; AEO-F; IATF 16949:2016; ECOVADIS GOLD RATING; ASI PERFORMANCE STANDARD; KASHERUT

ITALCOAT

ISO 9001:2015; ISO 14001:2015; ISO 45001:2018; EMAS; AEO-F; ECOVADIS GOLD RATING; ASI PERFORMANCE STANDARD; KASHERUT

BRCGS GRADE AA; ISO 9001:2015; ISO 14001:2015; ISO 45001:2018; EMAS; ECOVADIS SILVER RATING

CONTITAL TURKEY

BRCGS GRADE AA

Certification ASI

In 2021, the Laminazione Sottile, Italcoat and IPS plants obtained the ASI Performance Standard Certification. Issued by the Aluminium Stewardship Initiative Consortium, the Certification is specific to the aluminium supply chain and aligns with other certification schemes such as ISO 14001:2015, ISO 45001:2018 and SA 8000:2014. The ASI Performance Standard scheme applies a set of criteria to assess the Health and Safety, Environment, Social Responsibility, Governance and Sustainability aspects of the supply chain.

In particular, the Laminazione Sottile Group adopts a management system consistent with the requirements defined by the ASI, respecting the 11 cardinal principles of the Standard.

The management system is subjected to verification by a thirdparty certification body on an annual basis.

11 PRINCIPLES OF THE ASI STANDARD

„ Business Integrity

„ Policy and Management

„ Transparency

„ Sustainable management of materials

„ Greenhouse gas emissions

„ Emissions, discharges and waste

„ Water Management

„ Biodiversity

„ Human Rights

„ Workers’ Rights

„ Occupational health and safety

Ethical Certification SA 8000

Laminazione Sottile adopts and applies a corporate social responsibility system that aligns with the international standard SA 8000, which aims to certify certain aspects of corporate management in the field of corporate social responsibility, and shares this system with Group companies.

The system considers the following aspects:

„ respect for human rights

„ respect for employment rights

„ protection against child labour

„ the guarantee of a safe and hygienic working environment

The company monitors these topics constantly, ensuring continuous compliance with the policies and procedures adopted and providing specific training on the topic intended for all new hires.

In order to guarantee the ethical nature of the management system, the Social Performance Team (SPT) was established to implement and ensure the correct application of the SA 8000 standard.

Furthermore, in line with the provisions of the Group Code of Ethics, Laminazione Sottile has adopted the Social Responsibility Policy (SA8000) as further confirmation of the company's commitment to achieving the highest ethical standards and sustainable business development.

The management works to establish all the measures and provide the necessary resources to pursue these objectives and general principles, in line with the focus on continuous improvement in the company’s social performance.

The SA 8000 management system is audited by a third-party certification body every six months.

The two audits conducted in 2023 on the management system were concluded with a positive result.

(GRI 2-23)

Vision, mission and Corporate Values 3.1

VISION

A COMPANY SHAPED ON ALUMINIUM: INNOVATIVE AND RELIABLE, DYNAMIC AND SUSTAINABLE

MISSION

OUR MISSION IS TO GENERATE VALUE:

„ becoming a trusted partner to our customers and supporting their growth;

„ expressing a corporate culture based on responsibility, shared values, communication and results.

The Group's vision and mission are shared with all employees and collaborators when they join the company and are backed up by regular internal communication activities and initiatives that actively engage employees (working groups, sporting and music events). Through this approach, the guidelines on which the Group bases its future development become a collective heritage and an integral part of the company experience.

The Laminazione Sottile Group is founded on a set of values that characterise all of the companies belonging to the Group. The values guide corporate decisions and are a point of reference for all employees and collaborators.

Values: RESPECT FOR...

THE COMPANY

We pursue results with respect for collaborators, customers and suppliers, creating value and spreading the culture of work in the territory in which we operate.

THE ENVIRONMENT

We are committed to reducing the impact of our activities on the environment, optimising resources according to a model of sustainable growth.

PEOPLE

We take care of employees and their safety.

We value people who express passion in their work, ethics, integrity and fairness.

OUR HISTORY

We want to live up to our past, projecting our Group into the future, ensuring continuity and development while respecting tradition.

(GRI 2-6)

Activities, products, end-user sectors 3.2

The variety of possible uses of aluminium, combined with the diversification of products and end markets, is one of the strengths of the Group, which can thus adapt its business strategies in relation to the constant evolution of the market

The Group companies are structured into two Divisions:

ROLLING DIVISION

Production of laminates in bare and lacquered aluminium

CONTAINER DIVISION

Production of aluminium containers, tubs and rolls

In addition to these Divisions, the Group also operates three companies that manage the distribution of the manufactured products in specific geographical areas.

ROLLING DIVISION

The semi-finished products manufactured by Laminazione Sottile (bare aluminium), Italcoat and IPS (lacquered and printed aluminium) are aimed at a broad range of market applications.

The main sectors of application of rolled aluminium are:

RIGID PACKAGING

„ pharmaceutical closures

„ bottle closures (wine, mineral water, oil)

„ boxes and lids for food or cosmetic use

SEMI-RIGID PACKAGING

„ containers and trays

„ containers for candles

FLEXIBLE PACKAGING

„ bottle caps

„ chocolates

„ yoghurts and creams

„ mini cheeses

„ blisters and coldforms

LIGHT BULBS, NEON LIGHT CAPS

„ adhesive tapes

„ cables

„ multilayer pipes

„ honeycomb panels

„ light bulbs, neon tubes

„ insulating panels

CONTAINERS DIVISION

CONSTRUCTION/ INTERIOR DESIGN

„ roofs, panels, suspended ceilings, roof capping

„ roller shutters, shutters

„ raised floors

HVAC-R

„ fins for radiators, evaporators

„ heat exchangers

„ cooling panels

„ hoses

AEROSPACE

„ structural components

„ non-structural components

INDUSTRIAL APPLICATIONS

„ thermal and acoustic shields

„ coils

„ structural components

„ non-structural components

The primary market of the Containers Business Unit, which manufactures finished products, is the food sector. The companies operate in the B2B sector, with a limited range of products aimed at the B2C market.

Direct customers include:

„ food industries;

„ distributors;

„ Cash&Carry, wholesalers;

„ mass distribution (private label and Contital brand);

„ packers.

Certain products are aimed at other target markets such as the beauty and floriculture sectors.

Markets served and Group strategies 3.3

(GRI 2-6)

The Laminazione Sottile Group adopts the following strategic guidelines:

„ investing in the growth and internationalisation of its business, both in terms of internal product ranges and acquisitions;

„ promoting the use of aluminium, pursuing the idea that aluminium products are a winning choice. This is due both to the qualities of the metal itself and to its limited environmental impact, thanks to its infinite recyclability. Furthermore, the Group continues to research solutions using rolled aluminium to manufacture increasingly lightweight, high performance and aesthetically superior products;

„ respecting and protecting the environment through investments in technologies to reduce the environmental impact of its production activities through the reduction of emissions (including greenhouse gases) and water use, the use of renewable energy, energy recovery during combustion processes, and the reduction of solid waste directed to landfill;

„ promoting the well-being and enhancement of each employee through a policy aimed at training and developing skills both with on-the-job and classroom activities.

The main objectives include: focus on internationalisation and on promotionof the aluminium made by the companies of the Group. A product that combines quality and sustainability

4 THE STRUCTURE OF THE GROUP

(GRI 2-1, 401-1, 405-1, 418-1)

LAMINAZIONE SOTTILE

CONTITAL ITALCOAT

CONTITAL TURKEY IPS

I2R UK

INC.

I2R N. AMERICA

PLLANA

I2R

I2R KOREA

5 GOVERNANCE

(GRI 2-1, 2-7, 2-9, 205-1, 205-3, 206-1, 401-1, 405-1, 418-1)

BOARD OF STATUTORY AUDITORS

Legal, Compliance & Risk Management

BOARD OF DIRECTORS

Supply Chain

GLOBAL FUNCTIONS

Finance & IT

New Projects, Sustainability & Energy

Research & Development

SUPERVISORY BODY

INTERNAL AUDIT

HR, Organization & Communication

Commercial

HSE & Quality

Governance 5

(GRI 2-1, 2-7, 2-9, 205-1, 205-3, 206-1, 401-1, 405-1, 418-1)

The Laminazione Sottile Group adopts a traditional management and control model, whose main corporate bodies are the Shareholders’ Meeting, the Board of Directors and the Board of Statutory Auditors. Furthermore, the Meeting appoints an auditing company, with the function of legal auditing of the accounts.

The Board of Directors of the Parent Company Laminazione Sottile S.p.A. has the responsibility of defining and managing the strategic guidelines and issues related to sustainability, as well as ensuring the adequacy and effective functioning of the internal control and risk management system.

The Board of Directors approves the Sustainability Report, which represents the main document through which the Group describes its environmental and social impacts and identifies the relative risks and opportunities. The Board of Directors of Laminazione Sottile S.p.A. is also responsible for managing and coordinating the activities of the Group's investee companies and subsidiaries pursuant to art. 2497 et seq. of the Italian Civil Code and for monitoring their development.

CORPORATE APPOINTMENTSLAMINAZIONE SOTTILE SPA

BOARD OF DIRECTORS

Chair and CEO: M. Moschini

CEO: L. Moschini

CEO: P. Moschini

Board Directors: Ruffato P. Giulini T. E. Palermo G.

BOARD OF STATUTORY AUDITORS

Chair: F. Parisio

Standing auditors: Falini A. Tardini M.

Alternate auditors: Smith M. Verna S.

CSR INDICATORS

(GRI 2-7, 401-1, 405-1)

Composition of the administrative bodies of the Laminazione Sottile Group companies by gender and age group

The ordinary and extraordinary management of the company falls to the Board of Directors, which is responsible for defining and managing the strategic guidelines, the periodic verification of the adequacy and effective functioning of the risk management system, as well as the guidelines of the corporate sustainability strategy and the definition of objectives.

Italcoat

BoD: 5 members

Board of Statutory Auditors: 3 members

Ips

BoD: 5 members

Board of Statutory Auditors: 1 member

Pllana

Sole Administrator Advisory Board

Contital

BoD: 3 members

Board of Statutory Auditors: 3 members

Contital Turkey

BoD: 3 members

I2r Uk

BoD: 5 members

I2r Korea

BoD: 3 members

I2r Inc.

BoD: 3 members

I2r North America

BoD: 2 members

Organisational model 5.1

PURSUANT TO ITALIAN LEGISLATIVE DECREE 231/01, THE CODE OF ETHICS AND THE ANTI-CORRUPTION CODE (GRI

2-25, 205-1, 205-3, 206-1)

As far as the prevention of crime risks is concerned, pursuant to Legislative Decree 231/2001, the Italian companies of the Group adopt autonomous organisation, management and control models (so-called Models 231).

Model 231 takes the form of a document approved by the Board of Directors containing the set of general principles, rules of conduct and operational procedures, aimed at preventing the commission of offences and at guaranteeing ethical behaviour on the part of its employees and collaborators as well as all those who operate on behalf of each company, in compliance with the principles of legitimacy, fairness and transparency.

Model 231 (General Part) can be consulted on the company websites.

In order to guarantee effective and constant implementation of the organisation, management and control models, for each company and in compliance with art. 6 of Legislative Decree 231/01, the Supervisory Body has been appointed, equipped with autonomous powers of initiative and control, with the task of supervising the functioning and compliance with Model 231 and of ensuring its updating.

As at 31 December 2023, four Supervisory Bodies (SB) are operational within the Group structure, specifically at the companies Laminazione Sottile SpA, Italcoat Srl, Contital Srl and IPS Srl.

The SB is a collegial body made up of three members (external to the organisation), among whom the Chairman is appointed. The Supervisory Body is placed in a top position and in direct relationship with the Board of Directors, to which it reports annually on its work and, if necessary, on any violations of the Model.

The Supervisory Body meets the eligibility criteria established by the Legislative Decree 231/01 and specified in Model 231, i.e. autonomy and independence, professionalism, integrity and continuity of action.

The duties, powers and responsibilities of the Supervisory Body are defined by a specific regulation.

In carrying out its supervisory activity, the SB makes use of the help of various company functions, in particular the Compliance department and the Internal Audit, which during the year 2023 conducted checks on significant corporate processes and the main areas identified as “sensitive” within the Model.

The Models are based on the adoption of a Code of Ethics, which represents the principles, values and rules of conduct of the Companies of the Laminazione Sottile Group.

The Code of Ethics expresses the commitments and ethical responsibilities of the company in the context of the activity carried out with respect to customers and in the context of internal activities of the company with regard to all stakeholders including shareholders, business partners, employees, and collaborators.

The Code is therefore a set of principles that must be complied with by all of its recipients in order to ensure the proper functioning, competent management and image of the Laminazione Sottile Group.

The Code provides for anonymous and protected communication methods to report breaches of the rules and principles contained therein, which guarantee the secrecy of the identity of the whistle-blower and are addressed to the Supervisory Bodies of the Group companies.

The Code of Ethics can be consulted on the company websites, while a notice on the adoption and full acceptance of the Code is given to all new hires; regarding suppliers, in order to be admitted for inclusion on the Supplier Register, all suppliers must acknowledge and accept the Code.

With reference to corruption prevention programmes, it should be noted that this aspect is covered by the Model 231 of each Company, which includes among the sensitive crimes those relating to articles 24 and 25 of the Decree (corruption in relations with the Public Administration) and art. 25-ter (crimes relating to private corruption and incitement to corruption between private individuals).

To date, the Companies of the Laminazione Sottile Group have not deemed it necessary to adopt a specific anticorruption policy.

According to the assessments regularly conducted, 2023 has no cases, nor have they been reported, attributable to corruption or anti-competitive behaviour.

In order to prevent the occurrence of non-conformities or irregularities within the organisation and involve all stakeholders in an activity to combat illegality, through active and responsible participation, the LS Group has adopted a process of reception, analysis and processing of reports (including anonymous) regarding Group Companies sent by Third Parties or Group Persons.

The Whistleblowing Policy, which can be consulted on the company websites, indicates the active reporting channels and regulates the aforementioned process of managing reports of behaviour or conduct that may represent a violation of the Code of Ethics, company procedures and regulations as well as current regulations and laws (in compliance with the provisions introduced by Legislative Decree 24/2023).

The reporting management process (which is an integral part of Model 231) is entrusted to an external, autonomous person characterised by integrity and adequate skills, namely the Chairman of the Supervisory Body.

During 2023, the Models 231 of the Group companies were updated in order to adapt to the latest regulatory changes relating to the introduction of new predicate crimes and Legislative Decree 24 of 10 March 2023 (so-called “Whistleblowing Decree”).

Data security and protection 5.2

(GRI 418-1)

The Group pays very close attention to the management of personal data and sensitive information and to the implementation of suitable technical and organisational measures, not only to guarantee regulatory compliance but also to ensure the maximum level of security of the data and information processed and therefore, prevent and contain the damage of any cyber attacks in order to achieve business objectives.

Since 2018, the European Regulation on the protection of personal data (GDPR - General Data Protection Regulation) has been one of the points of reference for a renewed commitment to the protection of personal data and, therefore, one of the cornerstones of the approach adopted by the Laminazione Sottile Group.

In particular, the Group is constantly committed to ensuring the updating of the appointments of authorised parties, in various capacities, in data processing activities (Controller, internal and external managers, System Administrators, etc.) as well as the related policies and corporate procedures implemented regarding security and data protection.

It should be noted that in 2023 no “data breaches” or violations of the privacy of the subjects affected by the data processing (employees, collaborators, customers, suppliers, etc.) were detected or reported.

GDPR

GENERAL DATA PROTECTION REGULATION

During 2023, the IT Function launched a training programme to promote cyber security in the company.

6 ENVIRONMENTAL SUSTAINABILITY

(GRI 2-23, 2-27, 3-3, 201-4, 301-1, 301-2, 302-1, 302-3, 302-4, 303-1, 303-2, 303-3, 303-4, 303-5,305-2, 305-5, 305-7, 306-2, 306-3)

Impact and Objectives

(GRI 2-23, 2-27, 3-3, 201-4, 301-1, 301-2, 302-1, 302-3, 302-4, 303-1, 303-2, 3033, 303-4, 303-5,305-2, 305-5, 305-7, 306-2, 306-3) Annual variations 2023 values compared to 2022

For many years, the Laminazione Sottile Group has adopted an environmental impact policy based on an approach to manufacturing that integrates long-term environmental sustainability targets, mainly aimed at reducing atmospheric emissions, improving energy efficiency, reducing industrial water consumption and the relative effluents, and reducing the amount of waste produced and the quantity of ancillary materials used in the production process.

All of this has been made possible thanks to a substantial investment plan and continuous research into ever less impactful products, processes and technologies.

The “Integrated Policy for Quality, Safety and the Environment” clarifies, for each company, the strategy of the Laminazione Sottile Group, in terms of the values, vision and mission, and the commitment to adopt the principles of sustainable development, guaranteeing continuous improvements in environmental performance through the adoption of specific KPIs that precisely indicate the most effective areas for improvement. In particular, the Group aims to reduce the risks of pollution, polluting emissions and waste and to optimise resources.

The Laminazione Sottile Group is strongly committed to recovering scrap aluminium from industrial processes. The semi-finished products are supplied to customers that transform the material into finished products. The swarf is returned to the factory, where it is reused and transformed into rolled aluminium in a genuinely sustainable process that aligns perfectly with the principles of the circular economy.

The Group is also committed to maximising the reuse of production waste.

In 2023 no significant fines or sanctions were given to Group companies for non-compliance with environmental regulations.

Aluminium is 100% recyclable for an infinite number of times without losing any of its properties.

The possibility of recycling metal represents an important advantage for the environment as primary production (from mines) requires a considerable expenditure of energy (approximately 16 kWh/Kg.

instead, energy consumption is reduced by 95% due to the melting of recycled material (around 0.4 kWh/Kg).

Environmental Protection, energy efficiency and the rational use of resources are the main objectives of the Laminazione Sottile Group

The system of 6.1

Environmental Management

(ISO 14001 AND EMAS)

The Group companies are certified according to the UNI EN ISO 14001:2015 Standard, which emphasises resource optimisation, context analysis, stakeholder engagement, continuous improvements in performance and compliance with all applicable regulations.

Various three-yearly audits have been completed, confirming the achievement of all of the Group's sustainability objectives.

As part of its commitment to continuous improvement, the Group has voluntarily has adopted Regulation (EC) 1221/2009 (EMAS III) and has defined an environmental management programme that aligns with the Environmental Policy which is reviewed by Company Management and audited and approved once a year by a third-party certification body.

The implementation of this programme has triggered the development of a culture of Environmental Sustainability within Group companies and formalised the assumption of responsibility and the commitment to internal and external transparency. To date, various three-yearly audits have been completed, confirming that all of the targets defined in the various Environmental Declarations have been achieved and that the Laminazione Sottile Group complies with all applicable legislation.

Specific internal communication campaigns aimed at all company employees and collaborators aim to raise awareness of the certifications obtained and the importance of recycling and promote the adoption of effective waste separation practices.

Several three-yearly checks have been completed which confirmed full achievement of all the sustainability goals of the Group

6.2

Integrated authorisation Environmental (AIA)

Some plants of the Group, specifically Laminazione Sottile S.p.A., Italcoat S.r.l. and IPS S.r.l., are subject to issuing of the Integral Environmental Authorisation (AIA), i.e. the provision which focuses on the prevention and reduction of pollution deriving from the IPPC activities referred to in Annex VIII of Italian Legislative Decree 152/06 and subsequent amendments and which provides for measures aimed at avoiding or reducing emissions into the air, water and soil, including those relating to waste, to achieve a high level of environmental protection and to implement continuous monitoring.

The Authorisations were issued after a preliminary phase during which the following actions were carried out:

„ collection, sharing and analysis of information relating to the systems and production organisation

„ verification of compliance with all the environmental regulatory limits and the use of the best available technologies

„ identification of any actions aimed at continuous improvement

„ definition of a monitoring and control plan

In 2021, following the IEA review process, Laminazione Sottile was awarded a new authorisation decree which considered the various environmental improvement projects implemented, such as the installation of a new fume extraction system in the aluminium foundry which channels the emissions from all of the smelters into four abatement systems, optimising system performance and reducing pollutant emissions. At the same time, new systems were authorised to increase production capacity, some of which entered into operation in 2022.

The company Contital S.r.l., which does not fall under the scope of the IPPC directive, holds the Sole Environmental Permit (in Italian AUA) introduced under Italian Presidential Decree 59 of 2013 which amalgamates all existing environmental procedures set forth in industry regulations.

Biodiversity 6.3

If we think about the impact that human activities have on the environment, we cannot fail to mention the loss of biodiversity.

Change in land use, exploitation of natural resources, pollution and the introduction of alien species are just some of the causes that are leading to the loss of biodiversity and the destruction of our planet’s ecosystems.

Many of these environmental impacts are caused precisely by the activities of companies, which make use of the environmental resources at their disposal without paying the price for the damage caused.

The five main causes of biodiversity loss are: the change in land use;

• the intensive exploitation of natural resources;

• invasive species; pollution;

• climate change.

The operational risks caused by the damage to our natural heritage range from the increase in supply costs to the deterioration of products, from the inability to plan production to the loss of value of the land, not to mention the costs of intervention to restore damaged areas and ensure the survival of local communities.

The Laminazione Sottile Group has always been committed to respecting the environment and minimising its impacts on biodiversity. For years,

it has made its utmost commitment to adopting a production system that takes into account the proper use of natural resources and the protection of the territory.

Furthermore, it is aimed at promoting the implementation of management and production techniques that guarantee environmental protection and protect biodiversity, in line with the best available technologies.

Waste management 6.4

(GRI 301-1, 306-2, 306-3)

For many years the Laminazione Sottile Group has been committed to increasing its use of the best available technologies aimed at:

„ waste reduction

„ waste re-use

„ waste recovery

Waste management plays a major role in the definition of an effective environmental sustainability strategy. In this context, the Group has set itself the objective of preventing and reducing its environmental impact and pursuing the overall improvement of the “human-environment” system. The reduction of waste production and its dangerousness is a fundamental element of the integrated policy which promotes its recycling and recovery.

The complexity of the problems connected to waste management and the pursuit of objectives of continuous improvement of the economicenvironmental efficiency of the management cycles translate into a very wide differentiation of the technologies put in place.

The plants of the Laminazione Sottile Group produce special (industrial) waste and municipal solid waste. Municipal solid waste is collected and managed by the council. Industrial waste (such as foundry slag, dusts removed from foundry fumes, sludge deriving from the waste water treatment

process, depleted refractories, etc.) is delivered to specific external disposal companies, selected on the basis of reliability criteria and authorised according to the current legislation. At the same time, the Group implements strategies and actions aimed at minimising the portion destined for disposal and increasing that for recovery. Laminazione Sottile pays attention to the destination of waste, an aspect with a significant impact in terms of sustainability and circular economy: over 90% of the total waste produced is classified as nonhazardous.

Furthermore, over 90% of the waste is intended for recovery, while less than 10% is destined for disposal through suitable external disposal companies.

For municipal solid waste, the Group promotes effective waste separation practices through internal communication campaigns aimed at all those who work at its plants (employees, collaborators, thirdparty firms), in order to optimise waste collection and reduce the amount of mixed waste.

>90% WASTE PRODUCED FROM THE LAMINAZIONE SOTTILE GROUP IN 2023 RANKED AS "NON-HAZARDOUS"

BEST PRACTICES - EXAMPLES

NO-RINSE TREATMENT

The chemical surface treatment of rolled aluminium increases the adhesion of polymer films and improves resistance to corrosion.

Traditionally, surface treatments involve dipping the rolled aluminium in chemical baths at controlled temperatures and concentrations before rinsing with demineralised water. In these processes, the products must be rinsed to remove any excess chemicals deposited on the surface of the metal.

The water used to rinse the products is directed into a chemical-physical waste water treatment plant which generates sludge that must be disposed of as “special non-hazardous waste”.

Laminazione Sottile has invested in the design and development of no-rinse treatment plants. This process generates a significantly lower quantity of waste water and a lower volume of sludge.

Through the installation of a system with "No Rinse" technology, in 2023 a 50% reduction was achieved in the sludge produced compared to the reference year, avoiding the production of over 267 tonnes of sludge.

FILTER MEDIA DRYING PLANT

In order to pursue our constant commitment to environmental sustainability, we installed an innovative plant to dry the filter media used to treat the lubro-refrigerant fluids in cold rolling plants.

In 2023, this plant made it possible to reduce the production of spent foundry waste to be disposed of by 46%, for a total of 134 tonnes of waste less compared to the reference year

FOUNDRY WASTE

The goal to reduce the dust and waste generated by foundry slag and dross has been tackled by piloting the use of a waste cooling plant in order to improve the plant's environmental performance in line with the relative BAT-C for the non-ferrous metals sector. The cooling system treats all types of foundry waste through the indirect application of water followed by a sieving process to separate the aluminium from the waste oxides.

The system also guarantees a higher metal content of the treated waste, reducing the overall amount generated.

Combined with the more rigorous management of the slagging process, this new system:

1. reduces diffuse dust emissions generated during the transport, storage, handling and loading of waste onto vehicles

2. the reduction of disposed waste

3. The recovery of aluminium to be reintroduced into the production cycle

Energy resources 6.5

(GRI 302-1, 302-3, 302-4)

Considering the type of production and the size of the companies belonging to the Laminazione Sottile Group, electricity and natural gas consumption represents a major aspect of the Group's environmental impact, and consequently optimising the use of resources is an indispensable tool to achieving its sustainability targets. For this reason, for several years the Group has been implementing a series of actions aimed at monitoring energy performance and quantifying energy use and consumption. The analysis of the main performance indicators has made it possible to launch important projects aimed at optimising consumption per unit of product, both through management improvement and through system efficiency. Over the years the Group has succeeded in significantly reducing its energy intensity per tonne of product, as demonstrated by some of its major projects in this field:

„ The installation of a heat recovery system for flue gases emitted from furnaces, reducing the consumption of natural gas to heat process fluids and saving some 8,000,000 kWh, 700,000 standard cubic metres of natural gas and 1,500 tonnes of CO2 per year

„ The general installation of recuperative burners for all plate heating furnaces and foil heat treatment plants; in 2023, these systems enabled a reduction in natural gas consumption of about 1,700,000 standard cubic metres per year, reducing CO2 emissions by about 3,500 tonnes per year

„ The general installation of regenerative burners for all smelting furnaces, which in 2023 enabled a reduction in natural gas consumption of about 7,600,000 standard cubic metres per year and reduced CO2 emissions by approximately 15,500 tonnes per year

„ The installation of LED lights in the interior and exterior areas of the Group's Italian plants, saving approximately 950,000 kWh of electricity per year and reducing CO2 emissions by some 400 tonnes per year

„ The installation of photovoltaic systems with a total power of 4,300 kW, with a saving of approximately 4,000,000 kWh/year of self-consumed energy and approximately 2,100 tonnes per year of CO2

„ The installation of inverters on fan and pump motors enabled savings of around 2,400,000 kWh and 1,000 tonnes of CO2 per year

„ The installation of air handling units (AHU) to provide air conditioning in the electrical control rooms of the plants, saving some 2,700,000 kWh per year and enabling a reduction in around 1,100 tonnes of CO2 per year

„ The installation of incinerators for solvents produced by the finishing lines with RTO (Regenerative Thermal Oxidizer) technology which, along with the introduction of the CTR2, enabled average monthly natural gas consumption to be reduced by around 77,000 standard cubic metres, resulting in an annual saving of 850,000 Sm³ of natural gas and around 1,700 tonnes of CO2

„ The installation of a post-combustion fume heat recovery system that enabled savings of around 100,000 Sm³ of natural gas and some 200 tonnes of CO2

„ A new painting line has been launched featuring a system that reduces VOCs through the oxidation of solvents and, by recovering the heat produced, supports the oven at the same time and reduces the consumption of natural gas and the consequent CO2 emissions

„ A new rolling plant has been launched ,which will allow hot rolling to lower thicknesses than in the past. This will enable considerable savings due to the lower amount of energy required for hot rolling compared to cold rolling.

PHOTOVOLTAIC: SELF-CONSUMPTION 2023

ENERGY: FUTURE INVESTMENTS

The foundry department will be expanded with the addition of an innovative melting furnace dedicated to the recovery of waste: this will make it possible to reduce consumption by exploiting the calorific value of the pollutants present, while ensuring the complete elimination of harmful substances in the exhaust fumes.

PHOTOVOLTAIC: DEVELOPMENTS 2024

Installation of a further 750 kW of photovoltaic panels which will allow saving a further 870,000 kWh/year and consequently avoiding 400 tonnes of CO2

6.6

Water resources

(GRI 303-1, 303-2, 303-3, 303-4, 303-5)

The use of water resources is mainly linked to the cooling operations necessary for the various production activities and, to a lesser extent, for process water. All the companies in the Group use underground water drawn from owned wells duly authorised by provincial decrees. The total water extracted from the 4 Italian plants of the Laminazione Sottile Group in 2023 was 920,000 m3, with an increase in consumption of 146,000 m3 compared to the previous year.

Almost all of the cooling water used at the plants is recovered within a closed system and reused, while process water is also treated and reused. In this way, approximately 5,500,000 m3 of water were saved in 2023, in full compliance with the current IPPC legislation. Water used in cooling processes is recovered continuously thanks to a cooling tower system.

Consequently, the amount of water withdrawn from the wells is limited to the amount necessary for the reintegration of evaporation water and the minimum overflow level required to maintain the characteristics of the recirculating water.

5,500,000

M3 OF WATER SAVED IN 2023

For cooling processes, all of the Group's companies use groundwater withdrawn from the Group's wells. Water resources are recovered within a closed system and reused.

Emissions in the atmosphere 6.7

(GRI 305-2, 305-4, 305-7)

The management of atmospheric emissions is stringently monitored and subject to Italian and European legislation that requires the Group's companies to perform increasingly rigorous controls. Protecting the environment requires major investments which, over the years, have led the Laminazione Sottile Group to apply some of the leading emission-reducing solutions.

Over the years, the companies of the Group have achieved important results, as shown by the data from monitoring emissions into the atmosphere in terms of concentrations of pollutants, which are always far below the authorised legal limits. This has been made possible by the adoption of advanced technologies aimed at continuous improvement and maintaining plant efficiency through advanced maintenance programmes.

Moreover, for many years Laminazione Sottile has been committed to reducing greenhouse gas emissions (GHG): this commitment to improve our direct (Scope 1) emissions, which mainly derive from the combustion of natural gas, is pursued by improving our energy efficiency. In addition, the plant is part of the European Emission Trading System, which requires the company to obtain permits that cover the amount of CO2 released. This mechanism is a further incentive to reduce the direct impact of greenhouse gas emissions.

-50%

VOC emissions relating to cold rolling mill fume extraction systems have been reduced by 50% since 2014, thanks to careful optimisation of the abatement processes.

Source: www.ghgproocol.org

The impact of CO2 is calculated according to the most recognised international standard, as the sum of 3 contributions: Scope 1, 2 and 3.

Scope 1:

Moreover, for many years Laminazione Sottile has been committed to reducing greenhouse gas emissions (GHG): this commitment to improve our direct (Scope 1) emissions, which mainly derive from the combustion of natural gas, is pursued by improving our energy efficiency. In addition, the plant is part of the European Emission Trading System, which requires the company to obtain permits that cover the amount of CO2 released. This mechanism is a further incentive to reduce the direct impact of greenhouse gas emissions. In 2023, the Group decreased direct CO2emissions by 5,200 tonnes compared to the previous year (-8.3%).

Scope 2:

Indirect (Scope 2) emissions are largely attributable to electricity consumption from the grid. In addition to the energy efficiency of processes through targeted plant and procedural improvement projects, Laminazione Sottile is continuously increasing the share of energy produced from renewable sources, with the installation of photovoltaic production systems in various plants. In 2023, the Group decreased indirect CO2 emissions by 2500 tonnes compared to the previous year (-5.7%).

Scope 3:

Scope 3 emissions include all impacts external to the company, but directly linked to its activity. Although Laminazione Sottile is an energy-intensive company, and therefore the impact resulting from the consumption of electricity and natural gas in the production plants is significant, scope 3 emissions represent by far the most important impact.

This is mostly due to the production process of the primary aluminium that we use as raw material, which requires a large amount of energy and therefore, if not managed efficiently, substantially penalises the global impact of the activity.

In 2022, we calculated that by far the most impactful contribution to the Laminazione Sottile Group’s carbon footprint comes from the primary aluminium used and from 2023 we have deployed important resources to substantially improve this aspect.

There are 2 lines of action on which we are working:

1) Reduction of the impact of purchased primary aluminium

• Given that the large impact of Al is mainly due to electricity consumption in the production process, selecting suppliers who source energy from low-impact sources can reduce the carbon footprint by up to an order of magnitude

2) Reduction in the quantity of primary aluminium, increasing the % of recycled material

• Unlike other types of material with similar end applications such as paper and plastic, aluminium can be recycled infinitely, and the use of aluminium waste in the production process leads to a huge reduction in the impact of the product.

In 2023 Laminazione Sottile reduced the impact of the primary aluminium purchased by 5% and at the same time increased the purchase of scrap by 10%, reducing its organisation carbon footprint by 7%

But this is only the beginning.

The company will deploy important financial and organisational resources to achieve further goals, indicated below.

OUR PATH TO DECARBONISATION

AIRPURE AND ABATEMENT SYSTEMS

To reduce the emission of dust and acid substances originating from the melting processes, Laminazione Sottile has developed projects that convey all the emission points of the foundry department to abatement systems with bag filters and modern technology cyclones, able to capture and treat all flows, as well as to guarantee greater efficiency to the diffused emissions collection fans.

Furthermore, to reduce VOC emissions, the company turned to the world leader in the aluminium rolling sector, installing a German-made AIRPURE rolling fluid recovery system in its plant.

Rolling mills that use rolling fluid in large quantities emit large quantities of fluid which is dispersed with the exhaust air and which is therefore lost and no longer recovered in the fluid circulation system itself. The Airpure exhaust air distillation system is able to counteract this phenomenon by recovering almost all of the fluid.

The Airpure recovery system, which consists of two scrubbers, guarantees the following:

• complete separation of the vapours of the rolling fluid from the exhaust air stream, with maximum recovery of the fluid which is recovered and regenerated, thus obtaining a quality similar to that of the new fluid, and is therefore ready to re-enter directly into the rolling process;

• high level of purity of the exhaust air; longer life of rolling fluids thanks to vacuum treatment at low temperatures;

• containment of management costs and consumption through heat recovery during fluid washing.

Research and development

(GRI 201-4, 301-2)

As part of the research activity, in 2023 the companies of the Laminazione Sottile Group benefited from the "Research and Development Tax Credit" envisaged by Italian legislation as well as enjoying the benefits of hyper-depreciation for equipment acquired in Industry 4.0

The Research & Development department, which is centralised at Group level, is responsible for promoting product innovation and finding solutions to meet customers’ needs. The development of the projects is also performed in collaboration with external partners and is sometimes co-financed by regional (Regional tenders on competitiveness and innovation), national (MIMIT, tax credit) and European institutions.

The company has a laboratory with state-of-theart instrumentation, which allows very detailed analyses to be performed to support the study and creation of innovative materials and products.

R&D supports the specific production and process areas of the individual plants on various focuses:

„ Developing and increasing the procurement and use of scrap aluminium to develop projects aimed at different applications, reducing the use of primary aluminium and offering customers the option to transform their production waste into rolled or sheet aluminium, respecting the principles of the circular economy

„ Developing aluminium and coating systems for food use, focusing on recyclability and sustainability

„ Investing in LCA (Life Cycle Assessment) training, mapping each phase of the process in order to determine the environmental impact of the finished products and the various types of rolled aluminium

„ Promoting the central role of aluminium to support environmental sustainability

„ Supporting customers in the development of high performance products with a lower environmental impact.

„ Develop pre-treatment systems for laminate surfaces that reduce the use of dangerous substances. With this in mind, Laminazione Sottile has already eliminated chromic acid (CAS 7738-94-5) and all hexavalent chromium compounds included in the ECHA “Candidate list”.

The projects undertaken in 2022-2023 pursued various objectives aimed at sustainability:

„ Development of antimicrobial or photocatalytic coatings for the production of air purification systems, for the reduction of cleaning interventions and the related environmental impacts

„ Production of foil, containers and lids with 100% recycled post-industrial raw materials

„ Development of aluminium/coating systems for the HVAC-R sector, aimed at reducing water consumption or promoting energy recovery

„ Use of PVC-free technologies that reduce the dioxin production risk during the heat treatment of production waste.

„ Study and development of materials and related treatments to be used in the production of batteries for electric traction vehicles (battery-foil and pouch-foil)

The R&D department also coordinates the publication of scientific articles written in collaboration with various universities, as well as the participation in scientific or educational events. It also manages projects relating to internships and undergraduate and post-graduate theses in manufacturing or research fields.

The Research and Development Area coordinates the publication of scientific articles written in collaboration with various universities and participation in scientific or informative conferences.

It also manages projects for internships, degree and doctoral dissertations carried out in production or research areas: of these, 6 are those carried out in the 2022-23 academic year.

Among the publications of 2023, an article published by the journal Applied Sciences on the no-rinse and Crfree surface treatments of aluminium is of particular relevance, as well as and the article appearing in The International Journal of Life Cycle Assessment on the analysis of impact of the lamination process in the creation of food packaging.

Sustainability report 2023

7 HUMAN RESOURCES MANAGEMENT

(GRI 2-30, 3-3, 202-2, 401-1, 401-3, 404-1, 404-3)

7 Human resources

management

(GRI 2-30, 3-3, 202-2, 401-1, 401-3, 404-1, 404-3)

At the centre of the Group’s human capital are the selection process and the constant updating of Onboarding and Induction processes, improving the employee experience and engagement of new hires

Laminazione Sottile believes in the value of People who contribute to the company's growth every day with professionalism, passion, a sense of belonging and collaboration.

For this reason, during 2023, the Group continued to invest in processes and tools to promote the wellbeing of its people and to support the dissemination of sustainability values

The Group companies do not employ minors and we are committed to preventing all forms of forced labour and modern slavery, child labour and human trafficking.

We support our new employees with customised onboarding programmes, enhancing promising candidates and young people through individual development plans and programmes designed to enhance their potential and reflect their personal motivation.

We recognise merit through a Performance Management system that annually assesses the achievement of objectives and the behaviours implemented with respect to our Competence Model.

The development of technical and soft skills is further promoted through the continuous training provided by our Academy which, in just three years since its foundation, now boasts a skilled team of internal trainers as well as several important partnerships with schools and training institutions

We also take part in careers events with college students, undergraduates and graduates at various specialist technical colleges and universities. Moreover, we work with a number of business schools, proposing project work relevant to our business and welcoming the ideas and suggestions provided by the youngest participants.

2023 was a year full of new projects for the Human Resources Area, particularly for the Development and Digital Transformation area: the implementation of the Employee Central and the Organisational Chart, through SAP SuccessFactors, in companies in the United Kingdom and in North America, has laid the foundations to start global process harmonisation in 2024.

Furthermore, the Performance process has been revised and the Onboarding process has been digitalised, both now supported by the SAP SF management system.

As regards Onboarding, a standard and digital programme has been defined with the addition of ad hoc insertion paths, specific for each area of the Group, so as to encourage the inclusion of the new resource and the transversal knowledge of their area and of the contiguous ones.

2023 also saw the go live of the Employee Portal: the new digital platform of the Laminazione Sottile Group, which allows quick and centralised access to a series of resources and services made available to each employee. The Portal is constantly evolving and will be enriched over time with further services and useful content for employees, personalised according to the different company profiles.

Furthermore, the Employee Experience project, which spanned the entire year, played a significant role. The mission of the project was to offer the people of the Laminazione Sottile Group an excellence experience at every stage of their professional journey. For this reason, we set ourselves the objective of analysing and improving the 12 Human Resources processes throughout the year with a monthly focus on each of them. More precisely, the processes analysed were: Employer Branding, Selection, Onboarding, Training (provided through the internal Academy), Development and Career Plans, Personnel Relations, Administration and Payroll, Remuneration and Rewards, Company Welfare and, transversally, the Organisation and Internal Communication processes.

The project saw all the Group’s People as protagonists of the initiative: for each process, Focus Groups were activated, an online survey was activated, feedback was collected and improvement actions were developed to be implemented, with the subsequent return of results to the entire company population.

As regards Employer Branding, the Group managed a full calendar of events, which included participation in Career Day, Job Fair, Recruiting Day in which to provide important ideas on job orientation to young graduates/undergraduates and diploma holders, and at the same time enriching the value and the history of Laminazione Sottile.

At the same time, the foundations were laid for new projects in 2024.

„ Implementation of the tool to make viewing of the Group's organisational structure functional

„ Implementation of new global and digital processes (Performance, Learning)

„ Continuation of specific projects relating to the Employee Experience and consequent improvement of processes (welfare, development paths, organisation, equal opportunities)

Everything is aimed at improving the satisfaction of our people, who have always represented a strategic component in the pursuit of company objectives of growth and continuous improvement.

Persons

7.1 the group in numbers Laminazione sottile

(GRI 2-7, 202-2, 401-1)

The selection process has the task of constantly giving value the Group’s human capital in line with business needs and with the principles of fairness and equal opportunities. In this, the constant updating of the Onboarding process remains central, differentiated depending on the classification and area of expertise of the new hire, aimed at improving employee experience and engagement

Employees and contracted workers by plants and sites

Academic qualification

The data refer to employees of the Laminazione Sottile Group, excluding contracted workers. The data do not include the i2r UK, i2r Korea and i2r Inc personnel.

Company seniority

The data refer to employees of the Laminazione Sottile Group, excluding contracted workers.

Turnover

Absenteeism by gender

The data refers only to the Italian companies of the Laminazione Sottile Group

Territoriality by qualification and region of origin Employees

ORIGIN FROM THE SAME REGION AS THE HEADQUARTERS

ORIGIN FROM REGION DIFFERENT FROM THE HEADQUARTERS

I2R KOREA

I2R NORTH AMERICA

Equal gender opportunities 7.2

(GRI 401-3, 405-1, 406-1)

Incidence

Of the female component on group personnel

The Laminazione Sottile Group prohibits any type of discrimination against those who work for various reasons in the companies or who apply for job positions. In particular, forms of discrimination based on differences in gender, age, state of health, nationality or ethnic group, political or religious opinions are not tolerated.

The adoption of an Organisational Model pursuant to Italian Legislative Decree 231/2001 and of a confidential and anonymous reporting system represent - for all those who collaborate with the Group companies - a tool for communicating any offences and breaches to the dedicated Supervisory Body. In 2023, no cases of discrimination or harassment were recorded.

Over the years the Laminazione Sottile Group has also been increasing the number of women operating in the company, not only in clerical roles but also in those historically male-dominated technical fields.

In 2021 a project was launched to promote the recruitment of women to manual roles.

The option to take maternity or paternity leave is a key indicator, reducing the risk of parents not returning to work after the birth of a child. Both the rate of return after maternity/paternity leave, as well as the number of employees remaining in post a year after returning demonstrate that almost all employees who took parental leave both returned to work and remained in the workforce.

Use of parental leave and returns by gender 2022 2023

OF EMPLOYEES ARE ENTITLED TO PARENTAL LEAVE

7.3

Training

(GRI 404-1, 404-3)

The Guido Moschini Academy was founded in 2021 with the mission of developing the company's heritage of people and knowledge. Its objectives are to:

„ Develop the professional and people skills of Laminazione Sottile Group employees

„ Share the technical and manufacturing knowledge present within the Group

„ Optimise people’s ability to work together by promoting effective interaction and organisational procedures in line with the Company’s values.

Training programmes can be divided into two main development categories:

TECHNICAL SKILLS SOFT SKILLS

Our range of courses is constantly evolving and currently includes 140 classroom courses and 40 MOOCs (Massive Online Open Courses).

The physical headquarters of the Academy were inaugurated in 2022: in this way face-to-face training has been made even more effective, and an adequate location is available for organising or hosting events and conferences including of an international scope. The office is also intended to welcome university or secondary school students, on the occasion of training visits to the Laminazione Sottile plant. In particular, in 2023 the Academy hosted the Conference Day “Rolled Aluminium Products” of the Italian Association of Metallurgy (AIM) and the Seminari AIBO-FCE “Latest News in the Food Contact Supply Chain”.

2023 saw important growth for the Academy: transversal training courses were structured for our Operators (Production, Quality, HSE, HR, Quality Assurance, Continuous Improvement) and Leadership training programmes were defined for our Managers and the development of soft and technical skills for our Young Talents.

Training hours

NUMBER OF EMPLOYEES RECEIVING AN ASSESSMENT WITH THE NEW EHUREKA PERFORMANCE SYSTEM, BY GENDER

Laminazione Sottile Group

HOURS OF TRAINING BY GENDER- EMPLOYEES

Laminazione Sottile Group

HOURS OF TRAINING BY GENDER- EMPLOYEES

Laminazione Sottile Group

Sottile Group

7.4 Corporate welfare and

trade union relations

(GRI 2-30)

The Group believes that to improve production performance, the quality of work and products, workers must be involved as an active part in the processes, intervening, operating and expressing their opinions: the latter are considered of equal level, importance and dignity with respect to those expressed by the company managers. For this reason, together with the RSU, the creation of working groups was established aimed at improving the individual production areas, processes and technical-organisational systems. Furthermore, the Group is activating communication campaigns (workshops, focus groups, interactive seminars) to inform employees about innovation projects active in the company and about organisational changes (Circular no. 5/E/2018 art. 4 of the Revenue Agency) .

The Group undertakes to plan and activate, for the three-year period 2023-2025, 24 hours of training coinciding with the contractual working hours or in any case according to comparable methods: the training is aimed at guaranteeing and generating polyvalence and multi-functionality processes between workers and at increasing individual skills, both technical and cross-cutting. The courses can be activated according to the delivery methods established by Fondimpresa.

The companies of the Rolling division in the Campania region have signed an agreement with the RSU relating to the performance bonus for the year 2023. This agreement is aimed at significantly rewarding the achievement and exceeding of the objectives. On the basis of the provisions of law no.28/2015 and subsequent amendments, the worker may choose to use all or part of the amount of the individual performance bonus due in works and services with socially relevant purposes, paid directly or in the form of reimbursement of expenses or through additional contributions to the supplementary pension scheme and/or to the Supplementary Assistance Fund.

BREAKDOWN OF EMPLOYEES BY TRADE UNIONS

Hours worked

HOURS

OVERTIME HOURS STRIKE HOURS

INCIDENCE

ORDINARY HOURS

OVERTIME HOURS

STRIKE HOURS

HOURS

HOURS

HOURS

ORDINARY HOURS

OVERTIME HOURS

HOURS

I2R USA ORDINARY HOURS

ORDINARY HOURS

I2R NORTH AMERICA

OVERTIME HOURS

STRIKE HOURS ORDINARY/TOTAL

CONTITAL TURKEY

ORDINARY HOURS

OVERTIME HOURS

HOURS

Sustainability report 2023

8 OCCUPATIONAL HEALTH AND SAFETY

(GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10)

Occupational Health & Safety

(GRI 3-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10)

OCCUPATIONAL

HEALTH AND SAFETY MANAGEMENT SYSTEM

The Laminazione Sottile Group has voluntarily chosen to implement an Occupational Health and Safety Management System (SGSSL) as part of its commitment to continuous improvement and active employee involvement. This SGSSL has been certified by an independent third party, according to the UNI ISO 45001:2018 standard and is extended to all employees and non-employee workers who operate under the control of the organisation. In 2023, the Group companies successfully passed the surveillance audit. The responsibility for managing the SGSSL is entrusted to the Prevention and Protection Service, which is made up of a team of professionals. This team, in close collaboration with management, trade union representatives and workers, annually defines tangible and measurable objectives with the purpose of improving health and safety in the workplace. At the same time, the performance indicators necessary to effectively monitor progress in these areas are identified.

HAZARD IDENTIFICATION, RISK ASSESSMENT AND ACCIDENT INVESTIGATION

In compliance with regulatory requirements and following a logic based on the PDCA (Plan-Do-Check-Act) cycle, each company within the Laminazione Sottile Group analyses, measures and assesses the specific risks for each job, consequently developing preventive and protective measures. The results of these analyses, together with the corrective actions implemented and the improvement plans, are documented in the Risk Assessment Documents, in accordance with Italian Legislative Decree 81/08.

The management system also provides that, periodically and in response to relevant reports or events related to health and safety at work, an analysis of work activities and the identification of potential dangers are carried out. With the involvement of all stakeholders and the possible support of external experts, adequate preventive and protective measures are then defined, with the primary objective of eliminating dangers and reducing risks, in line with the objectives of the SGSSL. Particular attention is paid to the active participation of workers, who are involved in the continuous process of assessing and mitigating risks in the workplace. To identify potential sources of risk, managers are equipped with systems for detecting and analysing “Near misses”, “unsafe acts” and “unsafe conditions”. The analysis and

development of these reports involve dedicated teams, allowing the company to constantly integrate the risk assessment and develop new improvement actions. The progress of the action plans is assessed in monthly meetings attended by the main prevention players for each department.

To encourage the improvement of the safety culture at all company levels, the Laminazione Sottile Group organises periodic discussion sessions between the Plant Management, the Human Resources Management, the Prevention and Protection Service and the Workers’ Safety Representatives (RLS), in accordance with Italian Legislative Decree 81/08 and in the context of the SGSSL. During these sessions, results relating to health, safety and the environment (HSE) are shared, the trends of the monitored indicators are analysed and new objectives and actions defined to improve health and safety in the workplace are defined.

Particular attention is paid to the monitoring and analysis of accidents, in order to promptly identify and implement targeted interventions for the management and mitigation of risks. This monitoring occurs constantly through indices such as the Frequency Index (FI) and the Severity Index (IG). The Group considers temporary workers to be equal to employees in the analysis of accidents, recognising the importance of providing equal attention to each accident.

A particular focus is placed on the analysis of the root causes of accidents, which often derive from carelessness and imprudence. For this reason, the Group annually invests in education and training programmes to increase employee awareness and sensitivity regarding workplace safety.

The main risk factors identified by the analysis and inspection activities of the Prevention and Protection Service include: presence of handling means

• use of lifting equipment cast aluminium machining

• use of chemical substances for degreasing activities

During the reporting period, none of these risks caused serious injuries, thanks to the continuous attention and investments dedicated to health and safety by the Laminazione Sottile Group.

PDCA

PLAN-DO-CHECK-ACT CYCLE WITH WHICH THE PROCEDURES FOR RISK ASSESSMENT RELATING TO HEALTH AND SAFETY OF WORKERS WERE DEFINED

The main accident risk factors identified by the analysis and inspection activities of the Prevention and Protection Service include:

„ presence of handling means

„ use of lifting equipment

„ cast aluminium machining

„ the use of acidic substances for degreasing activities

Data referring to all employees and contracted workers

OF NEAR MISSES (any event that could have caused an injury or damage to health (illness) but did not)

OF FATALITIES

Accidents for companies of the group

Accidents by gender: MEN

Accidents by gender: WOMEN

As reported in the periodic reports of the Occupational Physicians, no cases of occupational diseases were recorded, which is the result of a series of progressively implemented structural and monitoring interventions.

Among the main actions implemented, we can highlight:

„ Revamping and periodic maintenance of systems to ensure a safe and healthy working environment.

„ Continuous research and implementation of less dangerous chemical substances with less impact on workers’ health.

„ Use of mechanical lifts and manipulators to reduce manual handling of loads and prevent strain injuries.

„ Periodic renewal of the fleet of moving vehicles and maintenance of the floors to reduce vibrations.

„ Regular monitoring of chemical substances present in the work environment and personnel sampling to monitor the substances inhaled by workers.

„ Periodic mapping of the noise level in the factories and installation of soundproofing structures where necessary.

„ Enhancement of systems for the collection and abatement of diffused emissions, thus contributing to improving the quality of the air in the workplace.

„ Investments in new systems, with a preference for highly performing prevention systems.

„ Continuous research and testing of systems and processes with reduced impact on health and safety.

As for non-employee workers whose work is under the control of the organisation, no notifications of occupational diseases have been reported, confirming the effectiveness of the preventive measures implemented also for this category of workers.

EMERGENCY MANAGEMENT

The Laminazione Sottile Group is particularly committed to ensuring the presence of adequate safeguards and adequately trained personnel to deal with and tackle various emergencies. To ensure a high level of operational readiness, numerous simulations and exercises are organised to test the effectiveness of emergency procedures and prepare personnel to deal with any type of eventuality.

In particular, the Group stands out for the presence of a significant number of employees specialised in various areas crucial to corporate security. Among these, there are First Aid workers, trained to provide immediate assistance in the event of injuries or illnesses, BLSD workers, trained to use the defibrillator in cardiac emergency situations, and fire workers, ready to intervene to prevent and manage fire emergencies. These professionals are constantly updated and trained to ensure quick and effective interventions, thus helping to maintain high safety standards within the company.

OCCUPATIONAL HEALTH SERVICES (GRI 403-3)

An Occupational Physician has been designated in all the Italian plants of the Group, in compliance with the requirements envisaged in art. 38 of Italian Legislative Decree 81/08. Annually, the physician draws up a health surveillance plan, which includes the planning of periodic and preventive medical checks for employees. The Group actively promotes participation in periodic medical checks, ensuring that they are carried out in the workplace and during working hours to maximise employee participation.

The Occupational Physician also contributes to the identification of sources of risk to the health and safety of workers during annual inspections in the workplace and during periodic meetings (in compliance with art. 35), actively participating in the drafting of the Risk Assessment Document. Furthermore, together with the physician, the anonymous and collective results are periodically analysed, assessing the progress and effectiveness of the health risk mitigation measures implemented over the years.

The Laminazione Sottile Group guarantees full respect for the confidentiality of personal information on the health of workers, delegating the management of data and documents relating to the health of employees exclusively to the appointed Occupational Physicians, in compliance with current regulations on privacy and the protection of personal data.

TRAINING OF WORKERS ON OCCUPATIONAL HEALTH AND SAFETY (GRI

403-5)

The Laminazione Sottile Group considers training and continuous development among the essential elements for the correct application of high safety standards.

In line with the OHSMS, a training programme is defined each year. The training activities are defined by the Prevention and Protection Service on the basis of the evidence resulting from the analysis of Near Miss communications. Therefore, these training activities do not only concern compulsory training (according to the provisions of Italian Legislative Decree 81/08 and the State-Regions Agreement 21/12/2011), but also that relating to operating procedures and instructions. Onthe-job training and education is a particular priority. The aim is to progressively increase workers’ skills to promote the more conscious and informed management of occupational health and safety risks.

Starting from 2021, the Group has set up the “Guido Moschini Academy”, which has made it possible to create a catalogue of 180 courses for almost 40,000 total hours of training provided in 2023, also promoting the dissemination of the values of prevention and protection.

PROMOTION OF WORKERS’ HEALTH

(GRI 403-6)

The Laminazione Sottile Group protects the health of its workers through various tools:

„ All employees may freely and independently access the services of the Metasalute supplementary healthcare fund for workers in the Metalworking industry.

„ An annual flu vaccination programme is held at the Group’s plants which is free to access and anonymous.

„ Following the COVID-19 emergency, to reduce the risk of contagion, the Group companies have redefined the structure of work with differentiated hours and attendance and implemented important technical and management prevention measures.

IN THE AREA OF SAFETY AND HEALTHCARE ALONE, IN 2023, MORE THAN 3,000 HOURS OF TRAINING WERE PROVIDED BY SPECIALISED PROFESSIONALS.

The absence of occupational diseases is linked to improvement and monitoring activities regarding:

ƒ Operation of systems

ƒ Noise reduction

ƒ Air quality

ƒ Chemicals used

ƒ Handling means

PREVENTION AND MITIGATION IMPACTS ON HEALTH AND SAFETY AT WORK DIRECTLY CONNECTED BY BUSINESS RELATIONSHIPS OF BUSINESS RELATIONS (GRI 403-7)

The Laminazione Sottile Group is committed to preventing and mitigating impacts on health and safety at work not only for its employees, but also for all non-employee workers who operate within its sphere of influence. In particular, the activities carried out by third parties at the Group’s workplaces are subject to monitoring through specific inspections conducted by the Prevention and Protection Service, aimed at identifying the risks present and any dangerous behaviours associated with such activities.

To promote a safe and aware working environment also among external suppliers, a sanctioning system has been introduced that promotes appropriate behaviour and attention to health and safety. This system aims to pursue inappropriate behaviour and encourage a culture of collaborative safety among suppliers operating at the Group’s factories.

Furthermore, the Group’s attention extends to nonemployee workers and their workplaces through an initial supplier qualification process and the execution of audits at their factories. During these audits, the management of environmental and safety aspects is explored in depth, ensuring that external suppliers also implement the best practices in terms of health and safety at work.

FUTURE OBJECTIVES FOR SAFETY AND HEALTH AT WORK

In envisioning its future, the Laminazione Sottile Group is committed to pursuing precise objectives to continue improving health and safety at work.

Among our main objectives, we intend to further reduce the incidence of accidents at work through the implementation of interventions based on risk analysis and the implementation of targeted preventive measures. This includes the integration of advanced technologies, such as real-time detection and monitoring systems, to prevent dangerous situations and improve emergency management. Furthermore, we aim to optimise safety management processes through the implementation of integrated management systems that incorporate aspects such as safety, health, environment and quality.

We also want to strengthen our partnerships with external suppliers, demanding high safety standards and ensuring regulatory compliance in their processes and activities.

We will continue to invest in training and awareness programmes to promote a safety culture based on industry best practices and knowledge sharing among our employees and partners.

Finally, we are committed to constantly monitoring performance through key performance indicators (KPIs) and regularly reviewing our policies and procedures to ensure that high standards of health and safety at work are maintained.

With these initiatives, we aim to consolidate high safety standards and ensure a safe, healthy and productive working environment for all our collaborators and stakeholders.

9 SUPPLY CHAIN MANAGEMENT AND PROCUREMENT POLICY

(GRI 2-6, 3-3, 204-1)

9 Supply chain management

(GRI 2-6, 3-3, 204-1)

The year 2023 saw constant reduction in demand in almost all supply markets, which led to a general contraction in purchase prices and a good availability of supply for many of product categories of our interest. This situation resulted in a reversal of trend compared to the previous two years, in which there had been a widespread rush to supply and progressively rising prices. The change favoured the achievement of good results in terms of cost reduction and improvement of the level of service from the supply chain.

The purchases of the Laminazione Sottile Group in 2023 totalled approximately 420 million Euro, distributed as follows:

SUPPLY CHAIN

Raw Material: Aluminium

The portion consisting of primary aluminium is purchased by international traders. An increasing share every year is supplied directly in the form of waste (secondary aluminium), in this case by both Italian and foreign traders.

Energy

They consist of Electricity and Natural Gas which are currently supplied directly by producers; in the past, traders were also used.

Services

This set includes services of any nature: technical services, qualified and nonqualified services, consultancy, supply of manpower, etc. These are mostly Italian and local suppliers.

Other Raw Materials

This category includes all the products that make up, together with aluminium, the finished product of the companies in our Group.

The main items in the category, in terms of volume and amount, are the paints purchased for Italcoat and IPS and the Master Alloys used in the Laminazione Sottile foundry. The former are supplied directly by both Italian and European producers, while approximately 50% of the latter are purchased by traders and the remaining 50% by European transformers. In both cases (i.e. both traders and processors), these in turn obtain their supplies largely from the markets of the Middle and Far East.

Consumables

Very heterogeneous category composed of one third of spare and maintenance components, intended for production plants and machinery, and the remaining part of production consumables (e.g. packaging, technical gases, fluids, filtration products, etc.).

60% of the components are supplied by Italian retailers and 40% by mainly Italian direct producers. Production consumables, however, are almost entirely purchased from direct producers, both Italian and foreign.

Transport

The transport service is 95% supplied for the delivery of the product to our customers all over the world, and is distributed between transport “by land” (63%) and “by sea” (37%). The suppliers are characterised by local transport companies for distribution in Italy and by shipping companies for foreign land and sea transport. In turn, the shipping companies make use of Italian and foreign transport companies to provide the service.

Suppliers and Geographic Distribution

Overall, around 1,400 suppliers were activated in 2023.

Compared to 2022, the total number of suppliers has therefore decreased by approximately 150 units, and the share of Italian suppliers has also decreased, while that of suppliers from Campania has seen an increase compared to the 26% of the previous year. We also point out that, compared to the previous

reporting period (year 2022), there have been no significant changes in the supply chain described above.

of which 28% in the Campania region (318) Total active suppliers 1.400

percentage of total value - 2023 data

PROJECTS

During 2023, Group Procurement was affected by some important organisational projects that will characterise the management methods of the function for the coming years. Below are the most significant ones.

The most important was undoubtedly represented by the final phase of the transition process from the previous management system to the SAP4/HANA ERP, to which we migrated on 1 January 2024. During 2023, all the preliminary activities for the transfer of data and processes were carried out, with related tests and user training.

This project was flanked by the development of the new ARIBA Supplier Portal which integrates with SAP and replicates the functions of the previous Supplier Register and the Orders and Contracts management module in a more advanced system. The new portal is part of a digital platform designed for the future activation of many other modules useful for managing business relationships with suppliers.

Furthermore, in 2023, with the support of a leading consultancy firm, an assessment was conducted on the organisational structure of the Group Purchasing function, aimed at identifying the needs for change in the function itself related to the evolutionary strategy underway for the entire Group. This activity resulted in the identification of the aspects to be modified/enhanced and the related implementation roadmap.

PRINCIPLES OF SUSTAINABLE

PROCUREMENT

The LS Group’s purchases are carried out in compliance with the following sustainable procurement principles:

„ promote a corporate culture based on the principles of integrity, honesty and transparency and comply with all international and national laws regarding ethical business practices;

„ carry out its activities and promote the purchase of goods and services in full respect of human and workers' rights, recognised by laws, conventions and declarations operating at national and international level;

„ condemn all forms of child labour, forced labour/ modern slavery and discrimination based on age, racial and ethnic origin, nationality, political and trade union opinions, religious beliefs, sexual orientation, gender identity and any other personal characteristics not relevant to the sphere of work;

„ enhancing people at every stage of the production chain, investing in the professional development of its human resources and attracting new talents, guaranteeing all employees and collaborators compliance with health and safety standards in the workplace;

„ ensure compliance with applicable environmental and occupational safety legislation, including international obligations on climate change and sustainable development such as reducing CO2 emissions and protecting biodiversity;

„ include sustainability criteria in the evaluation process of suppliers and contractors, giving priority (where possible) to Suppliers who have adopted ethical and sustainable practices within their organisation and also pursue them throughout their supply chain;

„ promote awareness of sustainability issues among supply chain partners and encourage them to pursue sustainable business practices;

„ contribute to the protection and preservation of the environment and ecosystems, through the development of strategies and initiatives aimed at minimising the environmental impacts associated with the performance of company activities. More specifically:

• purchase goods and services that reflect appropriate and recognised environmental specifications and standards in order to pursue continuous improvement of internal procurement practices;

• promote the reduction of consumption of materials such as paper and plastic, favouring the use of products that have a minimal impact on the environment both locally and globally (taking into account factors such as sustainability of production, transport, energy used, consumption of raw materials, waste production, recyclability, etc.);

• avoid the use of products that are potentially harmful to the environment when a less harmful alternative is available;

• monitor the efficiency in the use of energy and water resources, measuring and evaluating greenhouse gas emissions, in order to contribute to the reduction of environmental impacts;

• where possible, consume and purchase less by identifying, reducing and/or eliminating waste and wasteful practices in internal and external operations over which the Group has influence;

• recycle materials at the end of their life cycle, where this is possible and, where this is not possible, ensure disposal in the most environmentally correct and appropriate way.

SUPPLIER SELECTION AND MONITORING POLICIES

The suppliers we select are recognised as our business partners.

For this reason, they must share the Group’s focus on people, the planet and the integrity of business conduct.

To ensure we progress on our sustainability journey through continuous improvement, these key elements are integrated into our supplier performance and compliance management processes.

In particular, the selection of suppliers is based on the ability to satisfy our requirements and expectations and on compliance with the Sustainable Procurement Policy and the Code of Conduct for Laminazione Sottile Group Suppliers.

In the supplier selection phase, we collect the necessary information and documentation based on category-specific and other relevant requirements and perform a risk assessment by examining the possibility of violations of any of our standards or expectations.

We understand that improving procurement performance is an ongoing process and we recognise the contribution of our Suppliers in our journey to become more sustainable.

The procurement policies adopted by the Laminazione Sottile Group are characterised by:

ƒ Ethics

ƒ Environmental and social sustainability of suppliers

ƒ Territoriality

ƒ Continuity of supplies

(GRI 2-29)

Stakeholders 10

(GRI 2-29)

Stakeholders represent a wide range of interests: establishing and maintaining stable and lasting relationships, a crucial element for the creation of shared and long-term value

Continuous dialogue and active engagement are one way in which the Laminazione Sottile Group expresses its responsibility and commitment to the social context in which it operates. Stakeholders represent a broad range of different interests; as such, establishing and maintaining stable and long-lasting relations are a crucial element to the creation of shared, long-term value.

By understanding the specific needs and priorities of its stakeholders, Laminazione Sottile can pre-emptively manage potential issues and refine its actions to better respond to their interests. Promptly identifying stakeholders and establishing more effective channels of communication to constantly monitor their expectations, needs and opinions is the first step to establishing an effective engagement process. The Group has established dedicated departments to pursue a proactive approach to engagement with the parties with which it interacts, promoting dialogue and responding to the various needs. In fact, the Group believes that these engagement activities represent opportunities for mutual growth and enrichment.

The table on the opposite page shows the following categories of identified stakeholders and the respective communication methods/ expectations.

STAKEHOLDERS

COMMUNICATION EXPECTATIONS

Employees and collabotors

Code of Ethics; Continuous dialogue; Performance evaluation process; Internal communication; Training courses; Inductions for new hires

Information on company strategies and results; clarity of objectives and bonus/incentive system; sharing and involvement; improvement of the working environment and safety; integration into corporate life

Shareholders

Shareholders’ meeting

Presentation of the budget and the financial statements

Trade unions

Continuous dialogue; Meetings with trade union representatives

Engagement activities and information on relevant corporate topics

Customers

Code of Ethics; Seminars, training courses; Trade fairs, events; Website, social networks and newsletters; Product documentation

Suppliers

Local Communities

Ethical code; Supplier Code of Conduct, Supplier Portal; Qualification process; Periodic meetings for technical updates

Participation in cultural, sports and social events and projects; Website, social networks; Meetings with representatives of associations and of local organisations

Quality, safety, punctuality; high level of after-sales service

Collaborative relationship; compliance with the contractual conditions; continuity of supply

Support for or financing of initiatives; dialogue, transparency and collaboration; mutual development

Sustainability report 2023

Sustainability report 2022

11 ECONOMIC VALUE

GENERATED AND DISTRIBUTED

(GRI 3-3, 201-1)

11 Economic value generated and distributed

(GRI 3-3, 201-1)

21%

In 2022, the Economic Value generated by the Laminazione Sottile Group amounted to approximately 108 million Euro.

Generated economic value was distributed among the main stakeholders as follows:

„ EMPLOYEES: 74.8% as direct remuneration in the form of salaries and pension contributions;

„ LENDERS 1.2%;

„ SHAREHOLDERS 6.7% through distributed dividends;

„ PUBLIC ADMINISTRATION: 17.2% in payments on taxable income and social security contributions;

„ COMMUNITY: 0.1% in the form of donations and sponsorships. of the economic value generated was retained in the company. This reinvestment allows to support production development policies and employment growth

ECONOMIC VALUE GENERATED BY THE COMPANY

ECONOMIC VALUE DISTRIBUTED BY THE COMPANY

ECONOMIC VALUE RETAINED BY THE COMPANY

12 LOCAL COMMUNITIES

(GRI 2-23, 204-1, 413-1)

Local Communities 12

(GRI 2-23, 204-1, 413-1)

The Laminazione Sottile Group participates in and contributes to projects and activities with social and cultural aims and believes in supporting scientific research associations.

It directs its focus specifically to the local region in which its companies operate, with the aim promoting local development and consolidating a civil consciousness of cultural renewal.

The main initiatives in 2023 are described below.

SCIENTIFIC CONFERENCES

We have supported various scientific associations for the organisation of conferences and study days on the topic of reducing the environmental impact of production processes in the aluminium supply chain and on the safety of materials and objects in contact with food, also by making the headquarters of our Academy as a location for events.

SOUP KITCHENS

In Italy, as well as in Turkey and England, we responded to the requests of various social canteens managed by national and local associations and charitable bodies, donating thousands of aluminium containers to provide food assistance to people in economically disadvantaged situations or to support relief activities during the tragic earthquake that hit Turkey and Syria.

RESEARCH AND HEALTH CARE

The companies of the Group, both Italian and foreign, have supported various organisations and foundations.

In Italy, we have supported the AIRC Foundation as well as the Umberto Veronesi Foundation for research activities and for the dissemination of information on correct lifestyles to prevent oncological diseases.

In England, the i2r subsidiary organised internal events and participated in public fundraising events in support of Telford Crisis Support, which provides assistance to people in difficulty in Telford and Wrekins, and the Alzheimer’s Society, dedicated to raising funding for research on the disease and family assistance services, and Mind, specialised in providing personal assistance and legal support in the field of mental health.

COMUNITA’ SANT’EGIDIO

We supported this Community for the launch of their “Casa dell’Amicizia” in Naples, which promotes extracurricular and peace education activities dedicated to neighbourhood children, monitoring and intervention projects for lonely elderly people, food support for families in difficulty and preparing meals for homeless people.

FONDAZIONE MASSIMO LEONE

We believe in the Fondazione Massimo Leone project, which provides training courses for job placement dedicated to people in a state of social marginalisation. Supporting this initiative has made it possible to increase the training offer in the historic centre of Naples, in order to be able to offer professionalisation paths also to young people coming from specific at-risk backgrounds.

(GRI 2-28)

Associations 13

(GRI 2-28)

The Group companies are part of a network of national and international associations relevant to their activities. Through the membership of the parent company Laminazione Sottile, the Group is present in ANFIMA, in ASSOMET and in its subgroup CentroAl, specific for Italian aluminium producers. Furthermore, the Laminazione Sottile companies (Roller Group, Closure Group e Foil Recycling), Italcoat (Flexible Packaging Europe), Contital e i2r (Container Group). are members of the ’European Aluminium Foil Association (EAFA) Membership allows for coordination with other European companies to define common strategies in terms of market presence and promotion of the environmental sustainability of aluminium. Furthermore, IPS is affiliated to Confindustria Alessandria, i2r Packaging Solution Ltd is part of the Shropshire Chamber of Commerce. and Contital Turkey is a member of the Turkish Packaging Manufacturers Association (ASD Ambalaj Sanayicileri Derneği).

Since 2019, the Laminazione Sottile Group has joined the Consorzio ASI (Aluminium Stewardship Initiative), an international non-profit organisation that brings together producers, users and stakeholders in the aluminium supply chain in order to maximise the contribution of this sector to a sustainable society. The Group has also joined the Remade In Italy association, an organisation founded to support and enhance recycled products, owner of a certification scheme accredited in Italy for verifying the content of recycled material in a product (finished or semi-finished).

Laminazione Sottile is a member of the Istituto Italiano Imballaggio, the Italian Packaging Institute, to support and promote a packaging culture founded on technology and science, while Contital is an Ambassador of the Fondazione Carta Etica del Packaging, the Packaging Charter of Ethics Foundation, which aims to promote packaging as a tool of progress and civilisation that respects sustainable and ethical development. IPS is a member of Giflex, the Italian association of flexible packaging manufacturers, united producers that develop flexographic and rotogravure printed products in the food, pharmaceutical, chemical and other industrial sectors.

Regarding the Group's commitment to recycling aluminium, our Italian companies are members of the Consorzio CIAL, while the company i2r is a member of the British association Alupro: both consortia guarantee the recovery and effective recycling of postconsumer aluminium sourced from separated waste collection, with the mandate to exceed the recovery targets set at national and EU level.

ALUMINIUM STEWARDSHIP INITIATIVE

THE GROUP IS A MEMBER OF THE CONSORZIO ASI, WHOSE PURPOSE IS TO MAXIMISE THE CONTRIBUTION OF THE ALUMINIUM SUPPLY CHAIN FOR A SUSTAINABLE SOCIETY

14 DATA AND PERFORMANCE INDICATORS

ECONOMIC INDICATORS (GRI 2-2, 2-6)

(GRI 2-7)

Employees by company, by contractual category and gender

Italy

Overseas

Contracted workers by company, by contractual category and gender

Italy Overseas

Hiring

(GRI 401-1)

Employee training hours - 2023

(GRI 404-1)

ENVIRONMENTAL INDICATORS

(GRI 301-1, 301-2, 302-1, 305-2, 305-7, 306-2)

Materials Italian companies

PROCESS RAW MATERIALS

Aluminium 99.5%, scrap, master alloys, paints, inks, solvents, A-PET etc.

CHEMICALS

Chemical products to treat aluminium, industrial water and weld pools, to purify water for laboratory use

GREASE AND LUBRICANTS

Rolling fluid, lubricating oils and greases for maintenance, cold rolling additives, cutting oils for finished product lubrication, emulsifier oils

TECHNICAL GASES

Liquid nitrogen, Argon, Propane, Chlorine, Carbon Dioxide, Oxygen

Use of energy by source

Italian companies

Atmospheric emissions Rolling Division companies*

*The companies of the Container Division (Contital, Contital Turkey, i2r UK and i2r North America) produce negligible emissions

Waste Italian companies

15 METHODOLOGICAL NOTE

(GRI 2-3, 2-27)

The Laminazione Sottile company, since obtaining the SA8000 certification in 2015 and up to 2019, has drawn up the company Social Report every year.

Since 2019, the Laminazione Sottile Group has voluntarily published a Group Sustainability Report, on an annual basis, covering the 2023 financial year (1 January - 31 December) in this edition. The Report includes data from all the Group companies, both Italian and foreign. No non-compliance with Laws or Regulations occurred in the social and economic area.

All the information contained in this Sustainability Report refers, for each standard used, to the respective GRI Standards 2016 (some of them updated in 2021 and 2022) published in Italian on 23 January 2023. The list of GRI contents used can be found in the GRI standard correspondence table, par. 17.

The document is present in the Sustainability section of the company website www.laminazionesottile.com

For more information about the Sustainability Report, please contact marketing@laminazionesottile.com

DIVERSITY AND EQUAL OPPORTUNITIES