Traceability

Disclosure 103-1

During recent years, as a result of an increased awareness of the importance of each production stage with regard to quality, health, safety and conformity to current laws and regulations, a key element of the RadiciGroup sustainability strategy has become the ability to precisely trace the different steps and sources in material procurement and processing.

The increasing popularity of circular economy models has made traceability even more relevant, as it allows to:

assess the quality, quantity and type of resources to use in the production chain, taking as a time reference the expected durability of the product,

identify the best solutions from the viewpoint of technical, environmental and economic performance and create value added for customers,

attest that the management and treatment of resources (e.g., materials with recycled content and waste) are in conformity with laws and regulations.

With regard to the traceability of Group products:

total traceability of virgin materials and internally handled post-industrial recycled scraps and rejects. RadiciGroup acquires the raw materials and polymers from large companies of international repute, which are able to provide detailed information on the materials supplied,

total traceability of post-consumer recycled materials purchased on the market. In fact, GRS certification or certification to applicable ISO standards for goods delivered by RadiciGroup or Oeko-tex® certification require total traceability. In addition to conformity to the requirements of the above schemes, laboratory tests are carried out on incoming materials for qualification and identification of their chemical composition with a view to processability, health and safety, every step of the production chain at each production site is managed by process management software, which monitors and coordinates the various procurement chains, planning, production and logistics, as well as documentation and reporting for each process. Thus, for each lot of materials, it is always possible to find detailed information concerning the raw material, the production line and the various processes, together with data on packaging and shipping,

products that move among Group companies for processing purposes also have a sizeable traceability history, precisely because of the system used, which contributes to improving the efficiency and quality of production and processing.