1.7 MATERIALITY ANALYSIS

In order to identify the Group’s priorities for action, the issues on which further disclosure is required and the stakeholder engagement activities that require improvement, in 2017 Maire Tecnimont introduced a materiality analysis, based on the guidelines of the most commonly-used international standards such as the Global Reporting Initiative (GRI) and the principles of the Communication on Progress (COP) of the UN Global Compact.

The objective of the analysis is to identify the key topics for Maire Tecnimont and its stakeholders, which can act as management levers to create long term value to support the Group’s strategy.

The materiality analysis process is divided into three main phases:

THREE PHASES IDENTIFICATION OF RELEVANT TOPICS

Topics that are potentially significant for our stakeholders and the Maire Tecnimont Group are identified by analyzing internal sources (existing disclosures, internal policies and procedures) and external sources (reviews of standard setters’ publications and peer/ competitor benchmarks).

ASSESSMENT OF RELEVANT TOPICS

Meetings with Maire Tecnimont Group representatives and external stakeholders to assess the importance of each aspect of the topic list identified in the previous phase. Aggregation of the evaluation results provided by each Group representative. Development of the materiality matrix.

VALIDATION AND REVIEW

Validation of the materiality matrix and topics identified by the Control Risk and Sustainability Committee. Annually, at the start of the reporting period, a review of the topics and of the materiality analysis is held.

The result of the materiality analysis is summarized in the materiality matrix, which contains the following information:

The horizontal axis shows the relevance of topics according to

the Group. The right part of the matrix shows the issues for which a high level of impact in the coming years is foreseen in terms of the capacity of Maire Tecnimont to create long-term value.

The vertical axis indicates the priority that stakeholders attribute to the various issues.

The upper part of the matrix includes the issues which are more relevant to stakeholders in terms of the influence that each of them has on their decision-making;

Below are the topics that changed in the 2020 materiality analysis compared to 2019:

“GHG emissions” and “Energy efficiency” have been merged into one topic, “Climate change”

“Grievance mechanisms” and “Ethics & compliance” have been merged into one topic: “Ethics & Compliance”

“Local Economic Development”, “Local Communities” and “Client Relations” were merged into one topic: “Local economic development/In-Country-Value”

“Waste management” and “water management” have been merged into one topic: “Water and waste management”

“Employment” and “Industrial Relations” have been merged into one topic: “Employment”

5

IMPORTANCE FOR STAKEHOLDERS

1 5

CLIMATE CHANGE HUMAN RIGHTS

HEALTH AND SAFETY OF EMPLOYEES AND CONTRACTORS

ANTI-CORRUPTION

INNOVATION AND DIGITALIZATION

WATER AND WASTE MANAGEMENT

LOCAL ECONOMIC DEVELOPMENT

DIVERSITY & INCLUSION CIRCULAR ECONOMY

ETHICS AND COMPLIANCE RESPONSIBLE SUPPLY CHAIN

ECONOMIC DEVELOPMENT

HUMAN CAPITAL DEVELOPMENT

EMPLOYMENT

CATEGORY

IMPORTANCE FOR THE GROUP

Economic Social Environmental Cross themes

The topics emerging from the analysis reflect our corporate vision and represent the pillars of our sustainability strategy.

In particular, note that most of the topics, primarily “climate change”, “people safety”, “digital innovation” and “local content”, are placed around the diagonal from left to right, demonstrating

how the Maire Tecnimont Group’s internal view is aligned with the priorities reported by our stake-

holders. Finally, note that some topics including “climate change” and “diversity” have grown in importance, for both the Group and our stakeholders; this is thanks

also to the engagement, training and awareness-raising activities we have put in place in recent

years. This Report provides information on all these issues, including the information required under Legislative Decree 254/16 on non-financial aspects10 .

10 For the correlation of these topics with those set out in Legislative Decree 254/2016, please refer to the “Correlation table to Legislative Decree 254/2016” in the section “Methodology, Principles, Reporting Criteria” on page 121.

In the process followed for the 2020 materiality analysis, the potentially significant topics and categories of stakeholder under assessment were reviewed, following the guidelines of the leading sustainability reporting standards. In particular, the relevant topics were assessed with the involvement of 44 senior group managers and a representative group of employees, at a workshop attended by around one hundred people logging on from four continents. The participants were asked to vote on the Maire Tecnimont Group’s topics and also discussed the risks, opportunities and actions with respect to the core topics for the Group: climate change and energy transition, safeguarding people, the value of diversity, ethics and integrity, social responsibility and innovation.

Several representative groups of key categories of external stakeholders were also actively involved through a structured survey in order to assess and prioritize the top-

ics. Specifically, the following external stakeholders were asked to contribute to the materiality analysis: investors, financiers, clients, suppliers and associations with the aim of taking note of the changes to the sustainability scenario in which we operate, in particular the post-COVID scenario, the energy transition and the new ESG agenda.

The main issues emerging during the year from the stakeholder engagement process led to a review of the topics found to be material. Of these, the priorities were:

health and safety of employees and contractors;

ethics and compliance;

human rights;

innovation and digitalization;

climate change and the circular economy (new material topic); local economic development;

digital innovation.

The new 2020 materiality matrix was approved by the Sustainability Committee, which is chaired by the CEO and composed of the Maire Tecnimont Group’s top management; it was then validated by the Control Risk and Sustainability Committee and finally illustrated to the Board of Directors. The is-

sues that emerged from the materiality analysis formed the basis for the definition of the new Maire Tecnimont Sustainability Plan,

which is an integral part of the Group’s 2021-2025 Business Plan, and for the definition of the targets assigned to management.