5.2 ECONOMIC DEVELOPMENT

We are convinced that the best way to add value locally and improve our contribution in terms of responsibility as a corporate citizen is through the projects we implement around the world. We let our business speak for itself: in 2020, Maire Tecnimont

generated an Economic Value

of €2,621 million.

14.8%

81.1%

OPERATING COSTS €2,106 mn

Procurement of materials, components, facilities and services.

EMPLOYEE WAGES AND BENEFITS €384 mn

0.01%

COMMUNITY INVESTMENTS46

€0.642 mn

0.8%

PAYMENTS TO PUBLIC AUTHORITIES €21 mn

€2,594 mn

ECONOMIC VALUE DISTRIBUTED

The Economic Value retained in 2020 amounts to €27 million.

Developing high-level skills and expertise, investing in people, focusing on innovation and the pursuit of top level results are the keys to sound long-term development.

To improve governance and transparency towards local communities, This mainly follows the progress made on major projects in the Middle East, Russia, Europe and America.

The Economic Value of €2,594 million is distributed across the following items:

a Country-by-Country Report (CbC Report) is prepared annually. This is a collection of data on turnover, profits and taxes aggregated with reference to the jurisdictions in which the Maire Tecnimont Group does business, and is part of the mandatory information disclosure required by the Italian tax authorities. For more information on the overall tax contribution in the main countries where the Maire Tecnimont Group operates, please refer to the Sustainability Performance section.

The differences between the value of accrued income taxes and those actually paid are mainly due to temporary misalignments between the date of accounting reporting and the date of payment to the Treasury required by tax regulations.

3.16%

PAYMENTS TO PROVIDERS OF CAPITAL €82 mn

5.3 LOCAL COMMUNITIES AND

LOCAL ECONOMIC DEVELOPMENT

Maire Tecnimont plays a significant role in its sector and contributes substantially to the economic development of the countries in

which it operates. The Group considers the socio-economic and employment impact that the business generates as an integral part of its strategy and is committed to creating long-term value for all its stakeholders, particularly at local level, by identifying common objectives and agreeing on specific initiatives, in line with the 2030 Agenda for the United Nations Sustainable Development Goals.

Given our activities, engagement with local stakeholders requires a comprehensive approach to sustainability. Furthermore, the variety of projects undertaken and the differences between countries in which they are executed demands that a distinctive local approach be developed.

FOCUS ON ICV

The E&C sector is a major source of economic growth for many developing countries where we operate, yet historically the opportunities for local companies and the local workforce to participate in this sector have been limited.

The programme launched by Maire Tecnimont aims to address the development of the local workforce, the local procurement of goods and services and the improvement of the business environment to support the socio-economic development of the countries where we operate. Keeping in mind the increasingly demanding In-Country-Value (ICV) requirements of each country and combining the Group’s regional approach with an integrated business plan, Maire Tecnimont wants to continue on the path already taken in terms of ICV in 2019, additionally focusing, in 2020, on priority areas, to enable the creation of a competitive advantage for the Group and the entire supply chain in the face of global challenges related to ICV issues. To enable the sustainable growth of the Group and its supply chain, Maire

Tecnimont launched a new initiative in 2020 that aims to support SMEs in their growth with an adhoc Growth Programme leveraging Maire Tecnimont experience

and know-how. In parallel, the project also aims to review the engagement model and approach to strategic suppliers by leveraging the Group’s regional footprint. To strengthen and drive change, new ICV-related governance measures have been put in place to ensure Group-wide support on ICV issues.

GROWTH PROGRAMME – MAIRE TECNIMONT UP

For Maire Tecnimont, value generation increasingly involves the entire supply chain, made up of more than 5,000 Italian and foreign companies.

The Group has always been committed to ensuring the growth and flexibility of its supply chain, one of the key factors for competitiveness on foreign markets and a result of the technological excellence of the many Italian and foreign SMEs that contribute to Maire Tecnimont projects. In the initial phase, the Maire Tecnimont Group supported its Italian suppliers, those that were strategic in terms of technological content and growth potential. The programme in-

cludes activities to facilitate access to credit, support internationalization processes and strengthen training to fos-

ter sustainable innovation. In particular, the growth and development plan for Italian suppliers developed by Maire Tecnimont (“Maire Tecnimont UP - In support of SMEs”) includes coaching and training activities in areas such as co-engineering, product and process innovation, project management, credit management, digitalization and the finalization of strategic partnerships on foreign markets. In relation to the focus on Italy, Maire Tecnimont’s Italian supplier base will be analysed and categorized to identify the suppliers defined as ‘champions’ on the basis of their operational and strategic/ sustainability dimensions.